Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Braskem SA |
Entity Central Index Key | 0001071438 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Ex Transition Period | false |
Common shares | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | 451,668,652 |
Earnings per share - preferred shares class "A" | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | 345,010,622 |
Earnings per share - preferred shares class "B" | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | 578,330 |
Balance sheet
Balance sheet - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | R$ 3775093 | R$ 6701864 |
Financial investments | 2,302,672 | 1,190,483 |
Trade accounts receivable | 3,281,196 | 1,634,137 |
Inventories | 6,640,049 | 5,238,014 |
Taxes recoverable | 982,629 | 826,015 |
Dividends and interest on capital | 10,859 | 14,986 |
Prepaid expenses | 134,337 | 101,747 |
Derivatives operations | 3,793 | 8,387 |
Other receivables | 288,391 | 180,915 |
Total current assets | 17,419,019 | 15,896,548 |
Non-current assets held for sale | 359,704 | |
Total Current assets | 17,419,019 | 16,256,252 |
Non-current assets | ||
Financial investments | 10,336 | |
Trade accounts receivable | 37,496 | 70,236 |
Advances to suppliers | 46,464 | 61,533 |
Taxes recoverable | 987,236 | 1,088,353 |
Deferred income tax and social contribution | 1,165,726 | 1,653,115 |
Judicial deposits | 289,737 | 233,320 |
Insurance claims | 39,802 | 50,653 |
Derivatives operations | 32,666 | 29,308 |
Other receivables | 112,997 | 140,971 |
Investments in subsidiaries and jointly-controlled investments | 101,258 | 92,313 |
Property, plant and equipment | 29,761,610 | 29,336,710 |
Intangible assets | 2,727,497 | 2,809,087 |
Total Non-current assets | 35,312,825 | 35,565,599 |
Total assets | 52,731,844 | 51,821,851 |
Current liabilities | ||
Trade payables | 5,058,796 | 6,545,136 |
Borrowings | 1,184,781 | 2,594,463 |
Current | 9,691,450 | 10,437,791 |
Debentures | 27,183 | |
Derivatives operations | 6,875 | 29,042 |
Payroll and related charges | 630,517 | 562,455 |
Taxes payable | 894,769 | 624,080 |
Dividends | 3,850 | 3,083 |
Advances from customers | 353,222 | 203,216 |
Leniency agreement | 257,347 | 1,354,492 |
Sundry provisions | 178,676 | 112,891 |
Other payables | 276,957 | 476,262 |
Total Current liabilities | 18,564,423 | 22,942,911 |
Non-current liabilities held for sale | 95,396 | |
Total Current liabilities and Non-current liabilities held for sale | 18,564,423 | 23,038,307 |
Non-current liabilities | ||
Trade payables | 201,686 | |
Non-current | 22,176,640 | 20,736,604 |
Debentures | 286,141 | |
Derivatives operations | 861,302 | |
Taxes payable | 52,802 | 24,097 |
Loan to non-controlling shareholders of Braskem Idesa | 1,756,600 | 1,620,519 |
Deferred income tax and social contribution | 1,005,493 | 510,523 |
Post-employment benefits | 193,775 | 162,136 |
Advances from customers | 162,955 | |
Contingencies | 1,092,645 | 985,237 |
Leniency agreement | 1,747,243 | 1,498,738 |
Sundry provisions | 234,996 | 206,245 |
Other payables | 148,286 | 92,792 |
Total Non-current liabilities | 28,694,621 | 27,062,834 |
Shareholders' equity | ||
Capital | 8,043,222 | 8,043,222 |
Capital reserves | 232,430 | 232,430 |
Revenue reserves | 3,945,898 | 834,616 |
Additional paid in capital | (488,388) | |
Other comprehensive income | (5,165,492) | (6,321,859) |
Treasury shares | (49,819) | (49,819) |
Accumulated losses | (217,550) | |
Total attributable to the Company's shareholders | 6,300,301 | 2,738,590 |
Non-controlling interest in subsidiaries | (827,501) | (1,017,880) |
Total Shareholders' equity | 5,472,800 | 1,720,710 |
Total liabilities and shareholders' equity | R$ 52731844 | R$ 51821851 |
Statement of operations
Statement of operations - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Net sales revenue | R$ 49260594 | R$ 47663988 | R$ 46879989 |
Cost of products sold | (36,177,408) | (34,985,569) | (36,697,842) |
Gross Profit | 13,083,186 | 12,678,419 | 10,182,147 |
Income (expenses) | |||
Selling and distribution | (1,459,608) | (1,403,673) | (1,077,308) |
General and administrative | (1,434,272) | (1,285,613) | (1,095,403) |
Research and development | (167,456) | (162,010) | (169,635) |
Results from equity investments | 39,956 | 30,078 | 2,219 |
Other income (expenses), net | (854,880) | (3,905,954) | (952,300) |
Total Income (expenses) | 9,206,926 | 5,951,247 | 6,889,720 |
Financial results | |||
Financial expenses | (3,747,217) | (3,570,962) | (3,163,402) |
Financial income | 603,630 | 690,122 | 584,933 |
Exchange rate variations, net | (798,762) | (3,210,417) | 102,910 |
Total | (3,942,349) | (6,091,257) | (2,475,559) |
Profit (loss) before income tax and social contribution | 5,264,577 | (140,010) | 4,414,161 |
Current and deferred income tax and social contribution | (1,357,682) | (616,046) | (1,660,354) |
Profit (loss) for the year of continued operations | 3,906,895 | (756,056) | 2,753,807 |
Discontinued operations results | |||
Profit (loss) from discontinued operations | 13,499 | 40,760 | 16,827 |
IR and CSL - current and deferred | (4,623) | (13,901) | (10,445) |
Total Discontinued operations results | 8,876 | 26,859 | 6,382 |
Profit (loss) for the year | 3,915,771 | (729,197) | 2,760,189 |
Attributable to: | |||
Company's shareholders | 3,865,440 | (411,472) | 3,001,720 |
Non-controlling interest in subsidiaries | 50,331 | (317,725) | (241,531) |
Profit (loss) for the year | R$ 3915771 | R$ 729197 | R$ 2760189 |
Statement of comprehensive inco
Statement of comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Line Items [Line Items] | |||
Profit (loss) for the year | R$ 3915771 | R$ 729197 | R$ 2760189 |
Items that will be reclassified subsequently to profit or loss | |||
Fair value of cash flow hedge | 605,204 | 215,510 | (621,991) |
Income tax and social contribution | (203,186) | (75,333) | 206,315 |
Fair value of cash flow hedge from jointly-controlled | 3,534 | (3,309) | 2,295 |
Net Items that will be reclassified subsequently to profit or loss | 405,552 | 136,868 | (413,381) |
Exchange variation of foreign sales hedge | (397,045) | 4,121,849 | (8,437,079) |
Sales Hedge - transfer to profit or loss | 1,022,830 | 1,297,910 | |
Income tax and social contribution on exchange variation | (212,767) | (1,842,718) | 2,868,607 |
Exchange variation of foreign sales hedge - Braskem Idesa | 472,717 | (1,995,065) | (1,589,544) |
Sales Hedge - transfer to profit or loss - Braskem Idesa | 163,696 | 59,834 | |
Income tax on exchange variation - Braskem Idesa | (190,924) | 581,304 | 476,518 |
Exchange variation of foreign sales hedge, net of taxes | 858,507 | 2,223,114 | (6,681,498) |
Foreign subsidiaries currency translation adjustment | (602) | 339,296 | 653,349 |
Total | 1,263,457 | 2,699,278 | (6,441,530) |
Items that will not be reclassified to profit or loss | |||
Defined benefit plan actuarial loss, net of taxes | (5,750) | (4,119) | (849) |
Post-employment plans - Health plan, net of taxes | (2,904) | (8,280) | |
Total | (8,654) | (4,119) | (9,129) |
Total comprehensive income for the year | 5,170,574 | 1,965,962 | (3,690,470) |
Attributable to: | |||
Company's shareholders | 5,049,617 | 2,355,580 | (3,087,616) |
Non-controlling interest in subsidiaries | 120,957 | (389,618) | (602,854) |
Total comprehensive income (loss) for the year | R$ 5170574 | R$ 1965962 | R$ 3690470 |
Earnings Per Share Common | |||
Basic and diluted | |||
Profit (loss) per share attributable to the shareholders of the Company of continued operations at the end of the year (R$) | R$ 4.8479 | R$ 0.5511 | R$ 3.7651 |
Profit per share attributable to the shareholders of the Company of discontinued operations at the end of the year (R$) | 0.0112 | 0.0338 | 0.0081 |
Profit (loss) per share attributable to the shareholders of the Company at the end of the year (R$) | 4.8590 | (0.5173) | 3.7732 |
Earnings per share - preferred shares class "A" | |||
Basic and diluted | |||
Profit (loss) per share attributable to the shareholders of the Company of continued operations at the end of the year (R$) | 4.8479 | (0.5511) | 3.7651 |
Profit per share attributable to the shareholders of the Company of discontinued operations at the end of the year (R$) | 0.0112 | 0.0338 | 0.0080 |
Profit (loss) per share attributable to the shareholders of the Company at the end of the year (R$) | 4.8590 | R$ 0.5173 | 3.7731 |
Earnings per share - preferred shares class "B" | |||
Basic and diluted | |||
Profit (loss) per share attributable to the shareholders of the Company of continued operations at the end of the year (R$) | 0.6069 | 0.6065 | |
Profit (loss) per share attributable to the shareholders of the Company at the end of the year (R$) | R$ 0.6069 | R$ 0.6065 |
Statement of changes in equity
Statement of changes in equity - BRL (R$) R$ in Thousands | Total | Capital | Capital reserves | Legal reserve | Tax incentive | Retention of profits | Additional dividends proposed | Additional paid in capital | Other comprehensive income | Treasury shares | Retained earnings (losses) | Total Braskem shareholders' interest | Non-controlling interest in subsidiaries |
Balance at Dec. 31, 2014 | R$ 5597058 | R$ 8043222 | R$ 232430 | R$ 71542 | R$ 394121 | R$ 270517 | R$ 2943172 | R$ 48892 | R$ 278177 | R$ 5741591 | R$ 144533 | ||
Comprehensive income for the year: | |||||||||||||
Profit for the year | 2,760,189 | 3,001,720 | 3,001,720 | (241,531) | |||||||||
Exchange variation of foreign sales hedge, net of taxes | (6,681,498) | (6,403,241) | (6,403,241) | (278,257) | |||||||||
Fair value of cash flow hedge, net of taxes | (413,381) | (395,729) | (395,729) | (17,652) | |||||||||
Foreign subsidiaries currency translation adjustment | 653,349 | ||||||||||||
Foreign currency translation adjustment | 653,349 | 718,763 | 718,763 | (65,414) | |||||||||
Total Comprehensive income for the year: | (3,681,341) | (6,080,207) | 3,001,720 | (3,078,487) | (602,854) | ||||||||
Equity valuation adjustments | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (27,236) | 27,236 | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (966) | 966 | |||||||||||
Actuarial loss with post-employment benefits, net of taxes | (849) | (849) | (849) | ||||||||||
Post-employment plans - Health plan, net of taxes | (8,280) | (8,280) | (8,280) | ||||||||||
Net Equity valuation adjustments | (9,129) | (37,331) | 28,202 | (9,129) | |||||||||
Contributions and distributions to shareholders: | |||||||||||||
Capital increase | 62,502 | 62,502 | |||||||||||
Repurchase of treasury shares | (927) | (927) | (927) | ||||||||||
Prescribed dividends | 479 | 479 | 479 | ||||||||||
Additional dividends approved by the General Meeting | (270,517) | (270,517) | (270,517) | ||||||||||
Legal reserve | 158,450 | (158,450) | |||||||||||
Additional dividends proposed | (752,636) | 247,364 | (1,000,000) | (752,636) | |||||||||
Retained earnings | 2,010,542 | (2,010,542) | |||||||||||
Total Contributions and distributions to shareholders: | (961,099) | 158,450 | 2,010,542 | (23,153) | (927) | (3,168,513) | (1,023,601) | 62,502 | |||||
Balance at Dec. 31, 2015 | 945,489 | 8,043,222 | 232,430 | 229,992 | 2,404,663 | 247,364 | (9,060,710) | (49,819) | (416,768) | 1,630,374 | (684,885) | ||
Comprehensive income for the year: | |||||||||||||
Loss for the year | (729,197) | (411,472) | (411,472) | (317,725) | |||||||||
Exchange variation of foreign sales hedge, net of taxes | 2,223,114 | 2,561,596 | 2,561,596 | (338,482) | |||||||||
Fair value of cash flow hedge, net of taxes | 136,868 | 145,878 | 145,878 | (9,010) | |||||||||
Foreign subsidiaries currency translation adjustment | 339,296 | 63,697 | 63,697 | 275,599 | |||||||||
Total Comprehensive income for the year: | 1,970,081 | 2,771,171 | (411,472) | 2,359,699 | (389,618) | ||||||||
Equity valuation adjustments | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (27,236) | 27,236 | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (965) | 965 | |||||||||||
Actuarial loss with post-employment benefits, net of taxes | (4,119) | (4,119) | (4,119) | ||||||||||
Net Equity valuation adjustments | (4,119) | (32,320) | 28,201 | (4,119) | |||||||||
Contributions and distributions to shareholders: | |||||||||||||
Absorption of losses and adjustments | (800,039) | 800,039 | |||||||||||
Capital increase | 56,623 | 56,623 | |||||||||||
Additional dividends approved by the General Meeting | (247,364) | (247,364) | (247,364) | ||||||||||
Interim dividends approved by Board of Directors | (1,000,000) | (1,000,000) | (1,000,000) | ||||||||||
Total Contributions and distributions to shareholders: | (1,190,741) | (1,800,039) | (247,364) | 800,039 | (1,247,364) | 56,623 | |||||||
Balance at Dec. 31, 2016 | 1,720,710 | 8,043,222 | 232,430 | 229,992 | 604,624 | (6,321,859) | (49,819) | 2,738,590 | (1,017,880) | ||||
Comprehensive income for the year: | |||||||||||||
Profit for the year | 3,915,771 | 3,865,440 | 3,865,440 | 50,331 | |||||||||
Exchange variation of foreign sales hedge, net of taxes | 858,507 | 747,135 | 747,135 | 111,372 | |||||||||
Fair value of cash flow hedge, net of taxes | 405,552 | 394,251 | 394,251 | 11,301 | |||||||||
Foreign currency translation adjustment | (602) | 51,445 | 51,445 | (52,047) | |||||||||
Foreign subsidiaries currency translation adjustment | (602) | ||||||||||||
Total Comprehensive income for the year: | 5,179,228 | 1,192,831 | 3,865,440 | 5,058,271 | 120,957 | ||||||||
Equity valuation adjustments | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (26,847) | 26,847 | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (963) | 963 | |||||||||||
Actuarial gains post-employment benefits of subsidiaries , net of taxes | (5,750) | (5,750) | (5,750) | ||||||||||
Post-employment benefits - health plan, net of taxes | (2,904) | (2,904) | (2,904) | ||||||||||
Actuarial loss with post-employment benefits, net of taxes | (5,750) | ||||||||||||
Net Equity valuation adjustments | (8,654) | (36,464) | 27,810 | (8,654) | |||||||||
Contributions and distributions to shareholders: | |||||||||||||
Prescribed dividends | 482 | 482 | 482 | ||||||||||
Tax incentive reserve | R$ 71745 | (71,745) | |||||||||||
Prepaid dividends | (1,000,000) | (1,000,000) | (1,000,000) | ||||||||||
Legal reserve | (204,150) | 204,150 | (204,150) | ||||||||||
Additional dividends proposed | (1,500,000) | 1,500,000 | (1,500,000) | ||||||||||
Retained earnings | (1,335,387) | 1,335,387 | (1,335,387) | ||||||||||
Goodwill on the acquisition of a subsidiary under common control | (488,388) | R$ 488388 | (488,388) | ||||||||||
Non-controlling interest in subsidiaries | 69,422 | 69,422 | |||||||||||
Total Contributions and distributions to shareholders: | (1,418,484) | 204,150 | 71,745 | 1,335,387 | 1,500,000 | (488,388) | (4,110,800) | (1,487,906) | 69,422 | ||||
Balance at Dec. 31, 2017 | R$ 5472800 | R$ 8043222 | R$ 232430 | R$ 434142 | R$ 71745 | R$ 1940011 | R$ 1500000 | R$ 488388 | R$ 5165492 | R$ 49819 | R$ 217550 | R$ 6300301 | R$ 827501 |
Statement of cash flows
Statement of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows [abstract] | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | R$ 5264577 | R$ 99250 | R$ 4430988 |
Adjustments for reconciliation of profit (loss) | |||
Depreciation, amortization and depletion | 2,928,855 | 2,683,100 | 2,125,796 |
Results from equity investments | (39,956) | (30,078) | (2,219) |
Interest and monetary and exchange variations, net | 3,697,714 | 3,026,008 | 3,182,577 |
Gain from divestment in subsidiary | (276,816) | ||
Leniency agreement | 375,476 | 2,853,230 | |
Reversal of provisions | (223,340) | ||
Provision for losses and write-offs of long-lived assets | 213,184 | 41,016 | 130,758 |
Total Adjustments for reconciliation of profit | 11,939,694 | 8,474,026 | 9,867,900 |
Changes in operating working capital | |||
Financial investments | (953,228) | (649,535) | (144,955) |
Trade accounts receivable | (1,598,392) | 1,007,875 | (342,616) |
Inventories | (1,351,028) | 862,338 | (501,734) |
Taxes recoverable | 469,293 | 1,058,104 | 841,908 |
Prepaid expenses | (30,521) | 64,029 | (66,701) |
Other receivables | 25,802 | 353,981 | (10,174) |
Trade payables | (1,642,649) | (4,254,575) | (1,518,288) |
Taxes payable | (215,514) | (292,131) | 220,226 |
Advances from customers | (13,512) | 216,850 | (37,356) |
Leniency agreement | (1,343,803) | ||
Sundry provisions | 194,596 | 558,231 | 153,690 |
Other payables | 55,541 | 38,464 | 734,351 |
Cash from operations | 5,536,279 | 7,437,657 | 9,196,251 |
Interest paid | (2,154,053) | (1,826,942) | (1,872,229) |
Income tax and social contribution paid | (920,606) | (1,152,847) | (232,302) |
Net cash generated by operating activities | 2,461,620 | 4,457,868 | 7,091,720 |
Proceeds from the sale of fixed assets | 39,660 | 564 | 1,282 |
Proceeds from the sale of fixed assets | 450,000 | ||
Acquisitions to property, plant and equipment | (608,181) | ||
Acquisitions of intangible assets | (2,273,197) | (2,586,511) | (3,337,925) |
Premium in the dollar put option | (14,683) | (4,856) | |
Held-for-maturity financial investments | 38,353 | 2,441 | |
Net cash used in investing activities | (2,406,401) | (2,552,450) | (3,334,202) |
Short-term and long-term debt - Obtained | 8,492,341 | 4,107,626 | 5,481,546 |
Short-term and long-term debt - Payments | (8,779,091) | (4,901,593) | (6,087,217) |
Derivative transactions - payments | (810,279) | ||
Braskem Idesa borrowings - Obtained | 187,959 | 503,921 | 1,501,939 |
Braskem Idesa borrowings - Payments | (1,080,502) | (469,282) | (510,715) |
Dividends paid | (998,893) | (1,997,984) | (482,117) |
Repurchase of treasury shares | (927) | ||
Net cash used in financing activities | (2,988,465) | (2,757,312) | (97,491) |
Exchange variation on cash of foreign subsidiaries | 6,475 | 586,642 | (508,036) |
Increase (decrease) in cash and cash equivalents | (2,926,771) | (265,252) | 3,151,991 |
Represented by | |||
Cash and cash equivalents at the beginning for the year | 6,701,864 | 7,043,262 | 3,891,271 |
Cash and cash equivalents at the end for the year | 3,775,093 | 6,701,864 | 7,043,262 |
Increase (decrease) in cash and cash equivalents | R$ 2926771 | R$ 265252 | R$ 3151991 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2017 | |
Operations [Abstract] | |
Operations | 1. Operations Braskem S.A. is a public company headquartered in the city of Camaçari, Bahia (“BA”), which jointly with its subsidiaries (hereinafter “Braskem” or “Company”), operates 41 industrial units, 29 of which in the Brazilian states of Alagoas (“AL”), Bahia (“BA”), Rio de Janeiro (“RJ”), Rio Grande do Sul (“RS”) and São Paulo (“SP”), six are located in the United States, four in Mexico and two are located in Germany. These units produce thermoplastic resins - polyethylene (“PE”), polypropylene (“PP”) and polyvinyl chloride (“PVC”), as well as basic petrochemicals. Braskem is also engaged in the manufacture, trading, import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, as well as the provision of industrial services and the production, supply and sale of electric energy for its own use and use by other companies. Braskem also invests in other companies, either as a partner or as shareholder. The Company is controlled by Odebrecht S.A. (“Odebrecht”), which directly and indirectly holds interests of 50.11% and 38.32% in its voting and total capital, respectively. (a) Significant corporate and operating events impacting these financial statements (i) In January 2017, Braskem's new line to produce ultra-high molecular weight polyethylene (UHMWPE), known commercially as UTEC®, started operations. Located in La Porte, Texas, the plant complements the production capacity of the existing line in Brazil at the Camaçari Petrochemical Complex. (ii) On January 27, 2017, the Board of Directors of the Company authorized the execution of a purchase agreement with Odebrecht Utilities S.A. (“Odebrecht Utilities”), through which Braskem undertook to purchase all shares held by the seller in Cetrel S.A. (“Cetrel”), which represent 63.66% of its voting capital, for the aggregate amount of R$610 million. Cetrel is an environmental services company that launched its operations in 1978, together with the companies that set up operations in the Camaçari Petrochemical Complex. With over 100 clients, or around 70% of the Camaçari Complex, Cetrel is responsible for treating and disposing of industrial wastewater and solid waste, environmental monitoring and supplying water for industrial use to Braskem's plants in Camaçari. Cetrel plays an important role in managing the environmental processes of the Camaçari Petrochemical Complex, and its acquisition ensures the security and reliability of the complex's industrial operations. On September 29, 2017, a Shareholders' Meeting of Braskem approved the consummation of the acquisition and, on October 2, 2017, the acquisition of 1,269,290 shares issued by Cetrel was concluded with payment of the agreed upon amount of R$610 million, on which date control of Cetrel was transferred to Braskem. The Company's accounting policy choice for acquisition of companies under common control is the predecessor accounting. The impact from the difference between the consideration given and the aggregate book value of the assets and liabilities of the acquired entity, in the amount of R$488,388, was recognized in “Equity”, under “Additional paid in capital”. On October 16, 2017, during an extraordinary meeting of the Board of Directors of Cetrel, Braskem elected the new executive board and, on October 25, 2017, the extraordinary shareholders meeting elected the new members of the Board of Directors and Audit Board. The net assets at the acquisition date are composed of the following main items: Balance (i) Current and non-current assets Cash and cash equivalents 1,819 Financial investments 35,186 Trade accounts receivable 55,055 Inventories 8,152 Deferred income tax and social contribution 106,760 Property, plant and equipment 287,905 Intangible assets 52,556 Other assets 25,852 573,285 Current and non-current liabilities Trade payables 16,019 Borrowings 18,485 Debentures 317,960 Other liabilities 29,787 382,251 Net assets (assets (-) liabilities) 191,034 The following table summarizes the consideration paid to Odebrecht Utilities on the acquisition date and book value of the net assets acquired: Balance (i) Consideration Acquisition of 1,269,290 shares (63.66% of the capital) 610,000 (A) Total consideration transferred 610,000 % of participation 100.00% 63.66% (B) Cetrel's shareholders' equity on September 30. 2017 191,034 121,612 Result (A) - (B) (ii) 488,388 (i) Amounts based on September 30 balances, reflecting the transaction occurring on October, 2017. (ii) Difference between the consideration given and the aggregate book value of the assets and liabilities of the acquired entity. (iii) On June 2, 2017, the Board of Directors approved the construction of a new polypropylene production unit in La Porte, Texas, United States. The total investment is up to approximately US$675 million for 450 kta in production capacity. The conclusion of the construction of this project and the start of its operations is expected in 2020. (iv) On January 9, 2017, the Board of Directors approved the sale of the subsidiaries Quantiq Distribuidora Ltda (“Quantiq”) and IAQG Armazéns Gerais Ltda (“IQAG”) in the amount of R$550 million, and on April 3, 2017 the transfer of control to the buyer company was concluded (Note 5). (b) Net Working Capital On December 31, 2017, in compliance with IAS 1 - Presentation of Financial Statements, the subsidiary Braskem Idesa reclassified to current liabilities R$8,907,733 of Project finance obligations whose original maturities are long term, since certain contractual obligations (covenants) as of December 31, 2017 were in default (Note 16). Consequently, the net working capital became negative R$1,145,404. It should be noted that Braskem Idesa has been settling its debt service in accordance with the original maturity schedule, none of the creditors has requested the immediate reimbursement of such obligations and, without the above reclassification, net working capital would positive at R$7,762,329. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies The principal accounting policies applied consistently in the preparation of these financial statements are described in the notes of the items on which they have impacts. 2.1 Basis of preparation and presentation of the financial statements The financial statements have been prepared under the historical cost convention and were adjusted, when necessary, to reflect the fair value of assets and liabilities. These consolidated financial statements are not equivalent to the statutory financial statements of the Company as issued under the requirements of the Brazilian jurisdiction. As the date of authorization for issue of these consolidated financial statements is different from the date when the consolidated financial statements were issued in Brazil, there are differences due to adjusting events after the reporting period, under IAS 10 - Events after the Reporting Period and a revision for a correction of immaterial error. The statutory financial statements (parent company and consolidated) for the year ended December 31, 2017 were authorized for issue on March 27, 2018, in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (“IFRS”), filed in the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - “CVM”) on March 28, 2018. The reconciliation between the statutory and these financial statements are presented below: December 31, Decription Caption in the statement of operations 2017 Profit for the year to the statutory financial statements 4,133,321 Additional disbursement the Leniency Agreement (note 23.3.a) Other income (expenses), net (375,476) Reversal of provision (note 35.r) Cost of products sold 223,340 Deferred income tax and social contribution Current and deferred income tax and social contribution (65,414) Profit for the year in these financial statements (filed in SEC) 3,915,771 Consequently, in the balance sheet there was a reduction in trade payables in current liabilities of R$223,340, an increase in the provision for leniency agreement in non-current liabilities of R$375,476, an increase in deferred income tax and social contribution in non-current liabilities of R$65,414 and a decrease in shareholders´ equity of R$ 217,550. The following paragraphs correspond to revisions in the balance sheet as of December 31, 2017 for the correction of errors. In Management´s assessment, these reclassifications do not represent a material misstatement and were recorded in these financial statements for better comparability and presentation of the amounts, as follow: At the year ended December 31, 2017, for the foreign subsidiaries, the Company offset the advance on income taxes and VAT recoverable with the related provisions in these financial statements, in the amount of R$366,435. Accordingly, the captions Taxes recoverable and Taxes payable presented in the financial statements filed at CVM in the amounts of R$1,349,064 and R$1,261,204, respectively, have been revised and presented in these financial statements in the amounts of R$982,629 and R$894,769. At the year ended December 31, 2017, the Company offset the advances to suppliers with trade payables in the amount of R$206,874. Accordingly, the captions Inventories and Trade payables presented in the financial statements filed at CVM in the amounts of R$6,846,923 and R$5,265,670, respectively, have been revised and presented in these financial statements in the amounts of R$6,640,049 and R$5,058,796. The preparation of financial statements requires the use of certain estimates. It also requires Management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. Issue of these financial statements was authorized by the Executive Board on October 7, 2019. 2.1.1 Consolidated financial statements The consolidated financial statements were prepared and presented in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). All relevant information pertaining exclusively to these financial statements is presented herein and corresponds to the information used by the Management of the Company. (a) Consolidation The consolidated financial statements comprise the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2017 2016 2015 Direct and Indirect subsidiaries Alclor Química de Alagoas Ltda ("Alclor") (i) Brazil 100.00 100.00 Braskem America Finance Company ("Braskem America Finance") EUA 100.00 100.00 100.00 Braskem America, Inc. (“Braskem America”) EUA 100.00 100.00 100.00 Braskem Argentina S.A. (“Braskem Argentina”) Argentina 100.00 100.00 100.00 Braskem International GmbH ("Braskem Austria") (ii) Austria 100.00 100.00 100.00 Braskem Austria Finance GmbH ("Braskem Austria Finance") (iii) Austria 100.00 100.00 Braskem Europe GmbH ("Braskem Alemanha") Germany 100.00 100.00 100.00 Braskem Finance Limited (“Braskem Finance”) Cayman Islands 100.00 100.00 100.00 Braskem Idesa S.A.P.I. ("Braskem Idesa") Mexico 75.00 75.00 75.00 Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") Mexico 75.00 75.00 75.00 Braskem Incorporated Limited ("Braskem Inc") Cayman Islands 100.00 100.00 100.00 Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") Mexico 100.00 100.00 100.00 Braskem Mexico, S. de RL de CV ("Braskem México") Mexico 100.00 100.00 100.00 Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") Mexico 100.00 100.00 100.00 Braskem Netherlands B.V. ("Braskem Holanda") Netherlands 100.00 100.00 100.00 Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) Netherlands 100.00 100.00 100.00 Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) Netherlands 100.00 100.00 100.00 Braskem Petroquímica Chile Ltda. (“Braskem Chile”) Chile 100.00 100.00 100.00 Braskem Petroquímica Ltda. ("Braskem Petroquímica") (iv) Brazil 100.00 100.00 Quantiq (v) Brazil 100.00 IQAG (v) Brazil 100.00 Cetrel (vi) Brazil 63.66 Distribuidora de Água Camaçari S.A. ("DAC") (vii) Brazil 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) (viii) Brazil 100.00 100.00 Fundo de Investimento Caixa Júpiter Multimercado Brazil 100.00 100.00 100.00 (i) Merged into the subsidiary Braskem Petroquímica in April 2016. (ii) Terminated in June 2018. (iii) Terminated in January 2016. (iv) Merged into the Braskem in December 2017. (v) Sold in April 2017 (Note 5). (vi) Acquired on October 2, 2017. (vii) Wholly-owned subsidiary of Cetrel. (viii) Contract terminated in 2016. 2.2 Foreign currency translation (a) Functional and presentation currency The functional and presentation currency of the Company is the real. (b) Functional currency other than the Brazilian real Certain subsidiaries have a different functional currency from that of the Braskem S.A., as follows: Functional currency Subsidiaries Braskem Alemanha, Braskem Austria e Braskem Austria Finance Euro Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso The other subsidiaries adopt the Brazilian real as functional currency. (c) Exchange variation effects The main effects from exchange variation on the Company's transactions that impacted these financial statements are shown below: End of year rate at December 31 Average rate Variation 2017 2016 Variation 2017 2016 2015 2017 - 2016 2016 - 2015 U.S. dollar - Brazilizan real 3.3080 3.2591 1.50% 3.1925 3.4833 3.3387 -0.0835 4.33% U.S. dollar - Mexican peso 19.6890 20.6352 -4.59% 18.9142 18.6987 15.8846 0.0115 17.72% U.S. dollar - Euro 0.8464 0.9479 -10.71% 0.8871 0.9041 0.9019 -0.0189 0.24% 2.3 New or revised pronouncements that are not yet effective Several new standards will be effective for fiscal years beginning after January 1, 2018. The Company did not early adopt these changes while preparing its financial statements. (a) Adoption of “IFRS 9 - Financial Instruments”, and “IFRS 15 - Revenue from Contracts with Customers” The Company is obliged to adopt “IFRS 9 - Financial Instruments” and “IFRS 15 - Revenue from Contracts with Customers” starting from January 1, 2018. The Company has already assessed the impact of the initial application of IFRS 9 (Note 2.3(a.1)) and IFRS 15 (Note 2.3(a.2)) on its consolidated financial statements. The total adjustment (net of taxes) on the opening balance of the shareholders' equity under “Retained earnings” of the Company on January 1, 2018, is a reduction of R$9,989. The component relating to the estimated adjustment is the change in the methodology for calculating impairment pursuant and in the classification and measurement of the financial assets, according to IFRS 9. As presented on December 31, 2017 Adjustments estimated at the adoption of IFRS 9 Adjusted opening balance estimated on January 1, 2018 Accumulated losses (217,550) (9,989) (227,539) Non-controlling (827,501) (827,501) (1,045,051) (9,989) (1,055,040) (a.1) IFRS 9 - Financial Instruments IFRS 9 - Financial Instruments establishes requirements for recognition and measurement of financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 - Financial Instruments: Recognition and Measurement. (a.1.i) Classification - Financial Assets IFRS 9 has a new approach for the classification and measurement of financial assets, that reflects the business model in which assets are managed and its cash flow characteristics. IFRS 9 has three main classification categories for financial assets: measured at amortized cost (“AC”), at fair value through other comprehensive income (“FVTOCI”) and at fair value through profit and loss (“FVTPL”). The standard IAS 39 classifications of held-to-maturity, loans and receivables and available-for-sale. IFRS 9 requires the classification of financial assets based on business model of the equity for managing their financial assets. Pursuant to IFRS 9, derivatives in contracts where the host is a financial asset under the standard's scope are never separated. Instead, the hybrid financial instrument is assessed in its entirety for classification. Based on its assessment, the Company did not have a significant impact on the accounting of its financial investments resulted from new requirements of IFRS 9. However, because some trade receivables are sold to financial institutions and derecognized before the maturity date (Note 8), the Company classified part of its trade accounts receivables that can be sold at fair value under FVTOCI. The effect of this new classification on January 1, 2018 is R$601. The following table and corresponding notes explain the original measurement categories, in accordance with IAS 39 and the new categories of measurement in accordance with IFRS 9, for each class of financial asset on January 1, 2018. The effect from the adoption of IFRS 9 on the accounting balance of financial assets as of January 1, 2018 is related to the following: (i) New impairment calculation methodology (ii) Calculation of the fair value for receivables that, in accordance with the Company's Business Model, may be sold before their maturities. Classification by category Book value IAS 39 IFRS 9 IAS 39 IFRS 9 Cash and cash equivalents Cash and banks Loans and receivables Amortized cost 1,428,766 1,428,766 Financial investments in Brazil Loans and receivables Fair value through profit or loss 1,706,784 1,706,784 Financial investments abroad Held-for-trading Fair value through profit or loss 639,543 639,543 3,775,093 3,775,093 Financial investments LFT's and LF's Held-for-trading Fair value through profit or loss 1,816,889 1,816,889 Time deposit investments Loans and receivables Amortized cost 440,616 440,616 Time deposit investments Held-for-trading Fair value through profit or loss 15,764 15,764 Other Held-for-trading Fair value through profit or loss 39,739 39,739 2,313,008 2,313,008 Trade accounts receivable Loans and receivables Amortized cost 3,244,851 3,235,463 Trade accounts receivable Loans and receivables Fair value through other comprehensive income 73,841 73,240 Derivatives Financial assets measured at fair value Fair value through profit or loss 74,378 74,378 (a.1.ii) Impairment - Financial and Contractual Assets IFRS 9 replaced the “incurred loss” model of IAS 39 for a prospective model of "expected credit losses." This requires a relevant judgment regarding the way in which changes in economic factors affect the expected credit losses, which are determined based on weighted probabilities. The new expected losses model will apply to financial assets measured at AC or FVTPL, excluding investments in equity instruments and contractual assets. According to IFRS 9, provisions for expected losses are measured using one of the following bases: The 12-month expected credit losses, i.e. (expected credit losses from possible default events within 12 months after the reporting date, and whose credit risk does not increase significantly since initial recognition); and The full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). The measurement of these credit losses applies when the credit risk of a financial asset at the reporting date has increased significantly since initial recognition. The Company's assessment indicated that the adoption of the expected credit loss model as required by IFRS 9 on January 1, 2018, in a reduction of R$9,388, net of taxes. The Company expected credit losses, according to IFRS 9, are determined based on the following stages: Stage 1 - when the securities are still performing at this stage, expected credit losses are calculated based on the actual experience of credit loss (write-off) over the last five years, segregating customers in accordance with their Operating Risk. Stage 2 - when there is deterioration in the credit risk of the customer since the initial recognition; at this stage, the Company considers as deterioration of credit risk any credits that were renegotiated and that must be collected in court, regardless of their maturity. Stage 3 - includes financial assets that have objective evidence of impairment; the trigger for evidence of impairment is an unprecedented delay of more than 90 days. (a.1.iii) Hedge Accounting While applying IFRS 9, the Company can, as an accounting policy, choose to continue applying the hedge accounting requirements of the IAS 39, instead of the new IFRS 9 requirements. The Company chose to apply the new requirements of IFRS 9. IFRS 9 requires the Company to ensure that hedge accounting relationships are aligned with the Company's risk management objectives and strategies, and that a more qualitative and prospective approach is applied to assess hedge effectiveness. IFRS 9 also introduces new requirements for rebalancing hedge relations and prohibits the voluntary discontinuation of hedge accounting. Upon adopting IFRS 9, the Company elected to account for changes to fair value of forward points separately, as hedge cost. Thus, as of January 1, 2018, these changes are recognized in other comprehensive income (loss) and accrued in a hedge cost reserve as a separate component in equity and subsequently accounted in the same way as cumulative gains or losses in the cash flow hedge reserve. The types of hedge accounting relations presently designated by the Company meet IFRS 9 and are aligned with the organization's risk management objective and strategy. (a.1.iv) Transition The changes in accounting policies stemming from the adoption of IFRS 9 will be applied prospectively, including: Allowed exemption to not restate comparative information from prior periods due to changes in classification and measurement financial instruments, including expected credit losses. New requirements for hedge accounting. The following assessments must be made based on facts and circumstances in place on the adoption date: o Determination of business model in which the financial asset is held. o Designation and revoking of prior designations of specific financial assets and liabilities measured at FVTPL. (a.2) IFRS 15 - Revenue from Contracts with Customers IFRS 15 introduces a comprehensive framework to determine if and when revenue must be recognized, and by how much the revenue is measured. IFRS 15 replaces the standards IAS 18 - Revenue. (a.2.i) Sales The Company assessed that in its sales may have two distinct performance obligations between the Company and its customers, which are: Delivery the sold product - the performance obligation ends when the ownership of the good is transferred to the client. For the Company, there is no difference between IAS 18 - Revenue and IFRS 15 related to the revenue recognition date associated with this performance obligation. Contracting freight to the deliver goods - the performance obligation of the Company to contract freight to deliver the goods sold ends when the service is completed. For this performance obligation, considering that the Company acts as the principal of the operation and the effect of the difference in the moment of recognition of the portion of revenue allocated to the freight does not significantly affect the result of the year, such revenue will not be presented separately in the Company's financial statements. (a.2.ii) Variable compensation (rebates and discounts) The Company adopts the practice of contracting, with certain client bonuses for achieving sales targets. For clients which the Company expects will meet such targets and accordingly will receive a bonus are accrued the amounts due on a monthly basis. This provision, which until December 31, 2017, is recognized as a deduction from sales revenue, will be disclosed from January 1, 2018, as a deductible amount direct over gross revenue (Note 27). The Company considers commercial discounts included on client invoices as part of the fair value of the revenue recognized, according to the established accounting standard applicable until December 31, 2017 (IAS 18). Therefore, the commercial discounts included on client invoices will not have any changes as a result of the adoption or measurement of its accounting recognition in accordance with IFRS 15. (a.2.iii) Disclosures IFRS 15 requires new disclosures that, according to the differences, identified and presented above, does not have significant changes in relation to current Company's disclosures. (a.2.iv) Transition The Company adopted IFRS 15 using the cumulative effect method, with initial application of the standard on the initial date (that is January 1, 2018). As a result, the Company will not apply the requirements of IFRS 15 to the comparative period reported. Apart from the aforementioned reporting changes for rebates for the achievement of revenue targets, the Company does not have any change in the timing and measurement of its revenue. (b) Adoption of “IFRS 16 - Leases” and “IFRIC 23 - Uncertainty on Income Tax Treatment” (b.1) IFRS 16 - Leases The Company is obliged to adopt “IFRS 16 - Leases” starting from January 1, 2019. This pronouncement replaces previous standards on leases, including IAS 17 - Leases and the corresponding interpretations, such as IFRIC 4, SIC 15 and SIC 27. The standard introduces a single and standardized model for the accounting of leases in the balance sheet of the lessees, in which it recognizes a right-of-use asset representing the right to use the lease asset and a lease liability that represents the obligation to pay the lease are recognized. Exemptions from recognition will be allowed for low-value and short-term contracts. In addition, the expenses related to these leases are no longer linear operating lease expense, going in accordance with IFRS 16 to be a cost of depreciation of use rights assets and interest expense on lease obligations. The definition of leasing includes all contracts that entitle the use and control of an identifiable asset, including lease contracts and, potentially, some components of service agreements. The variable elements of the payments related to leases (e.g., a machinery and/or equipment rental contract with part of the payments based on the asset's productivity) are not considered in the calculation of the liability, and are recorded as operating expenses. The Company will make the transition using the modified retrospective approach, i.e., it will apply the requirements of the commercial lease standard to all existing agreements on the initial adoption date, i.e. January 1, 2019. Therefore, information and balances will not be restated for comparison purposes. The new accounting standard provides practical expedients whose election is optional. The Company intends to adopt the following accounting policies during the transition: · Not to revaluate whether the contract is or contains any lease on the initial adoption date. Instead, will apply IAS 17 to agreements that have been previously identified as leases, using IAS 17 and IFRIC 4; · Opt not to separate non-lease components from lease components, considering them, therefore, as a single lease component; · Not to record contracts with terms above 12 months, that at the transition date, will end within 12 months as from the initial adoption date; · Not to record low-value agreements (R$30 for the company in Brazil or US$10 for foreign subsidiares), in accordance with the policy defined by the Management. · Exclude the initial costs with measuring the asset from the right of use on the initial adoption date; · Use hindsight, such as determining the term of the lease, if the contract contains options to postpone or terminate the lease, among others; and · Apply a single discount rate to the lease portfolio with reasonably similar characteristics (such as leases with similar remaining lease terms, for a similar class of underlying asset in a similar economic environment and similar financing currencies - “portfolios”). In this context, the Company expects the initial adoption of IFRS 16 to affect its financial statements and internal processes. The most significant impacts are related to: (1) recognition of new assets of right-of-use assets and lease liabilities in the balance sheet; (2) the disclosure of new significant information on lease activities. The Company does not expect significant changes in lease activities in the period between the publication of these financial statements and the date of initial adoption. The effects expected as of January 1, 2019 are as follows: Recognition of additional liabilities estimated between R$1,700,000 and R$1,900,000, as corresponding entries to the recognition of right-of-use assets. The amounts reflect the present value of the remaining minimum payments of the rent of existing operating leases; The agreements that are exempt from recognition because they are short term and/or low value amount to an annual operating expense of approximately R$85,000. Such recognition has no impact on the Company's results. Furthermore, as of the reporting date of these Financial Statements, the Company is developing processes and controls to meet the new requirements. (b.2) IFRIC 23 - Uncertainty on Income Tax Treatment The new interpretation, that Company is obliged to adopt starting from January 1, 2019, establishes requirements for recognition and measurement in situations where the Company has determined, during the process of calculating taxes on net income (income tax and social contribution), the use of tax treatments that could be construed as uncertain and, therefore, could be questioned by the tax authorities. The management is assessing the impacts of this interpretation. 2.4 Change in accounting policy and restatement of the statement of operations Change in accounting policy (a) The Management of Braskem decided to change, in the statement of cash flows, the presentation of interest paid, which previously was presented under the group referred to as “cash used in investment activities.” These expenses are now recorded under the item “interest paid.” This change enables: (i) the direct identification of the total amount paid as interest; and (ii) greater accuracy in determining the net cash from operations. The amounts reclassified in the period ended December 31, 2016 and 2015 were R$288,424 and R$786,063, respectively. (b) In 2017, the Company changed the classification of provision for profit sharing to standardize such classification among all companies, whether or not productive, and because it deemed the current classification more appropriate, since this provision does not present recurring elements or, even when recurring, the amounts differ from year to year. In the fiscal year ended December 31, 2016 and 2015, the amounts related to this item were reclassified from “costs of goods sold” (2016 - R$163,056, 2015 - R$165,522), “selling and distribution expenses” (2016 - R$7,155, 2015 - R$5,848) and “general and administrative expenses” (2016 - R$191,586, 2015 - R$185,067) to the item “other income (expenses), net” (Note 29). Restatement of the Statement of Operations (a) The amounts corresponding to the Statement of Operations for the year 2016 and 2015 are restated in compliance with IAS 8 - Accounting policies, changes in accounting estimates and errors for better comparability and presentation of the amounts. The Company is presenting the amount of "Costs of idle industrial plants" for the year 2016 and 2015, reclassified from "Other income (expenses), net". The amounts reclassified in the period ended December 31, 2016 and 2015 were R$208,006 and R$135,341, respectively. |
Application of critical estimat
Application of critical estimates and judgments | 12 Months Ended |
Dec. 31, 2017 | |
Application of critical estimates and judgments [Abstract] | |
Application of critical estimates and judgments | 3. Application of critical estimates and judgments Critical estimates and judgments are those that require the most difficult, subjective or complex judgments by management, usually as a result of the need to make estimates that affect issues that are inherently uncertain. Estimates and judgments are continually reassessed and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results can differ from planned results due to differences in the variables, assumptions or conditions used in making estimates. The Company makes a series of other estimates that are presented in the respective notes, such as allowance for doubtful accounts and provision for repairing environmental damage. In order to provide an understanding of the way the Company forms its judgments on future events, the variables and assumptions used in critical estimates are presented below: 3.1 Deferred income tax (“IR”) and social contribution (“CSL”) The recognition and the amount of deferred taxes assets depend on the generation of future taxable income, which requires the use of an estimate related to the Company's future performance. These estimates are included in the business plan, which is annually prepared by the Executive Board and submitted to the Board of Directors for approval. This plan uses as main variables projections for the price of the products manufactured by the Company, price of inputs, growth of gross domestic product of each country where the Company operates, exchange variation, interest rate, inflation rate and fluctuations in the supply and demand of inputs and finished products. These projections are carried out on the basis of specialized external consultancies and based on the Company's. Information on deferred income tax and social contribution is presented in Note 21(c). 3.2 Fair value of derivative and non-derivative financial instruments The Company evaluates the derivative financial instruments at their fair value and the main sources of information are the stock exchanges, commodities and futures markets, disclosures of the Central Bank of Brazil and quotation services like Bloomberg and Reuters. Nevertheless, the volatility of the foreign exchange and interest rate markets in Brazil has been causing significant changes in future rates and interest rates over short periods of time, leading to significant changes in the market value of swaps and other financial instruments. The fair values of non-derivative, quoted financial instruments are based on current bid prices. If the market for a financial asset and for unlisted securities is not active, the Company establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models that make maximum use of market inputs and rely as little as possible on information provided by the Company's Management. Information on derivative and non-derivative financial instruments is presented in Note 19. 3.3 Useful life of assets The Company recognizes the depreciation and depletion of its long-lived assets based on their useful life estimated by independent appraisers and approved by the Company's technicians taking into consideration the experience of these professionals in the management of Braskem's plants. The useful lives initially established by independent appraisers are normally reviewed at the end of every year by the Company's technicians in order to check whether they need to be changed. This review may take place during the year in case of possible non-recurring events. The main factors that are taken into consideration in the definition of the useful life of the assets that compose the Company's industrial plants are the information of manufacturers of machinery and equipment, level of the plants' operations, quality of preventive and corrective maintenance and the prospects of technological obsolescence of assets. The Company's management also decided that (i) depreciation should cover all assets value because when the equipment and installations are no longer operational, they are sold by amounts that are immaterial; and (ii) land is not depreciated because it has an indefinite useful life. The useful lives applied to the assets determined the following average (%) depreciation and depletion rates: 2017 2016 Buildings and improvements 3.36 3.49 Machinery, equipment and installations 8.34 9.34 Mines and wells 8.84 8.83 Furniture and fixtures 10.13 10.36 IT equipment 20.09 20.53 Lab equipment 9.56 9.65 Security equipment 9.77 9.78 Vehicles 17.51 22.72 Other 18.17 18.97 Information on property, plant and equipment is presented in Note 13. 3.4 Impairment test and analysis (a) Tangible and intangible assets with defined useful lives On the reporting date of each of its financial statements, the Company conducts an analysis to determine the existence of any indication that the book balance of long-lived tangible assets and intangible assets with defined useful lives may not be recoverable. This analysis is conducted to assess the existence of scenarios that could adversely affect its cash flow and, consequently, its ability to recover the investment in such assets. These scenarios arise from issues of a macroeconomic, legal, competitive or technological nature. Some significant and notable aspects considered by the Company in this analysis include: (i) the possibility of an oversupply of products manufactured by the Company or of a significant reduction in demand due to adverse economic factors; (ii) the prospects of material fluctuations in the prices of products and inputs; (iii) the likelihood of the development of new technologies or raw materials that could materially reduce production costs and consequently impact sales prices, ultimately leading to the full or partial obsolescence of the industrial facilities of the Company; and (iv) changes in the general regulatory environment that make the production process of Braskem infeasible or that significantly impact the sale of its products. For this analysis, the Company maintains an in-house team with a more strategic vision of the business and also remains in permanent contact with a team of external consultants. If the aforementioned variables indicate any material risk to cash flows, the Management of Braskem conducts impairment tests in accordance with Note 3.4(b). The Company's assets are grouped initially under operating Segments, based on product lines and production site location. Within each Segment, assets are grouped into Cash-Generating Units (“CGU”), based solely on the production site location (country and, for Basic Petrochemicals, region in Brazil). Based on these concepts, the assets are grouped as follows: Reportable operating segments: Chemicals: · CGU Chemical Bahia: represented by assets of the chemical plants located in the state of Bahia; · CGU Chemical South: represented by assets of the chemical plants located in the state of Rio Grande do Sul; · CGU Chemical Southeast: represented by assets of the chemical plants located in the states of Rio de Janeiro and São Paulo; Polyolefins: · CGU Polyethylene: represented by assets of the PE plants located in Brazil; · CGU Polypropylene: represented by assets of the PP plants located in Brazil; · CGU Renewables: represented by the assets of the Green PE plant located in Brazil; Vinyls: · CGU Vinyls: represented by assets of PVC and chloride soda plants located in Brazil; United States and Europe: · CGU Polypropylene USA: represented by assets of PP plants located in the United States; · CGU Polypropylene Europe: represented by assets of PP plants located in Germany; Mexico: · Represented by the assets of the ethylene and PE plants located in Mexico. (b) Intangible assets with indefinite useful lives The balances of goodwill from future profitability arising from business combinations are tested for impairment once a year. These tests are based on the projected cash generation for a five-year period, which are extracted from the business plan of the Company and cited in Note 3.1. In addition to the projected cash flow for the period from 2018 to 2022, perpetuity is also calculated based on the long-term vision and excluding real growth. Cash flows and perpetuity are adjusted to present value at a discount rate based on the Weighted Average Cost of Capital (“WACC”). The goodwill allocated to the Polyolefins operating segment (Note 14 (a)) was generated in a business combination that resulted in the simultaneous acquisition of polypropylene and polyethylene plants. The main raw materials of these plants were already supplied by the Company, which allowed for the obtainment of significant synergies in the operation. These synergies were one of the main drivers of that acquisition. Accordingly, the Company's management tested this goodwill for impairment in the ambit of their operating segment since the benefits of the synergies are associated with all units acquired. The remaining existing goodwill is allocated to the Chemical Sul CGU and to the Vinyls operating segment (Note 14(a)). Goodwill from future profitability are presented in Note 14. Said note also presents the results of impairment tests. 3.5 Contingencies Existing contingent liabilities and provisions are mainly related to discussions in the judicial and administrative spheres arising from primarily labor, pension, civil and tax lawsuits and administrative procedures. The Management of Braskem, based on the opinion of its external legal advisors, classifies these proceedings in terms of probability of loss as follows: Probable loss - these are proceedings for which there is a higher probability of loss than of a favorable outcome, i.e., the probability of loss exceeds 50%. For these proceedings, the Company recognizes a provision that is determined as follows: (i) labor claims - the amount of the provision corresponds to the amount to be disbursed as estimated by the Company's legal counsels; (ii) tax claims - the amount of the provision corresponds to the value of the matter plus charges corresponding to the variation in the Selic rate; and (iii) other claims - the amount of the provision corresponds to the value of the matter. Possible loss - these are proceedings for which the possibility of loss is greater than remote and less than probable. The loss may occur, however, the elements available are not sufficient or clear to allow for a conclusion on whether the trend is for a loss or a gain. In percentage terms, the probability of loss is between 25% and 50%. For these claims, except for the cases arising from business combinations, the Company does not recognize a provision and mentions the most significant ones in a note (Note 23.2) to the financial statements. In business combination transactions, in accordance with the provision in IFRS 3, the Company records the fair value of the claims based on the assessment of loss. The amount of the provision corresponds to the value of the matter, plus charges corresponding to the variation in the Selic rate, multiplied by the probability of loss, as determined by our external counsels. The Company's management believes that the estimates related to the outcome of the proceedings and the possibility of future disbursement may change in view of the following: (i) higher courts may decide in a similar case involving another company, adopting a final interpretation of the matter and, consequently, advancing the termination of the of a proceeding involving the Company, without any disbursement or without implying the need of any financial settlement of the proceeding; and (ii) programs encouraging the payment of the debts implemented in Brazil at the Federal and State levels, in favorable conditions that may lead to a disbursement that is lower than the one that is recognized in the provision or lower than the value of the matter. The Company's contingencies are presented in Note 23. 3.6 Hedge accounting The Company designated non-derivative financial liabilities in foreign currency to hedge the future cash flows generated by its exports. This decision was based on two important concepts and judgments: (i) the performance of exports according to its business plan (Note 3.2), which are inherent to the market and business where it operates, and (ii) the ability of the Company to refinance its liabilities in U.S. dollar, since the priority financing in U.S. dollar is part of the Company's guidelines and strategy and the maintenance of a minimum level of net liabilities in U.S. dollar is envisaged in the Financial Policy of the Company. The subsidiary Braskem Idesa designated all of the financing it obtained for the construction of its industrial plant to protect part of its sales to be made in the same currency as said financing, the U.S. dollar. The sales estimate is included in the project that was presented to the banks/lenders, which, due to the consistency of the projection, granted Braskem Idesa a financing line shall be paid exclusively using the cash generated by these sales. All the commercial considerations of the project were based on market studies conducted by expert consulting firms during the feasibility-analysis phase. All hedge transactions conducted by the Company are in compliance with the accounting procedures and practices adopted by Braskem, and effectiveness tests are conducted for each transaction every quarter, which prove the effectiveness of its hedge strategy. The Company determined that hedged items will be characterized by the first sales in U.S. dollars in each quarter until the amount designated for each period is reached (Note 19). The liabilities designated for hedge will be aligned with the hedging maturity schedule and the Company's financial strategy. According to the Financial Policy, the Company may contract derivatives (swaps, NDFs, options, etc.) to hedge against any undesired fluctuations in currencies and rates. These derivatives may be designated for hedge accounting based on the judgment of Management and when such designation is expected to significantly improve the demonstration of the compensatory effect on the fluctuations in the items protected by the hedge. The Company currently has derivatives designated for cash flow hedge accounting for (i) Libor hedge at Braskem Idesa and (ii) hedge of Braskem dollar put and call options (Note 19.3). |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2017 | |
Risk management [Abstract] | |
Risk management | 4. Risk management Braskem is exposed to market risks arising from variations in commodity prices, foreign exchange rates and interest rates, credit risks of its counterparties in cash equivalents, financial investments and trade accounts receivable, and liquidity risks to meet its obligations from financial liabilities. Braskem adopts procedures for managing market and credit risks that are in conformity with its Financial Policy approved by the Board of Directors in March, 2017. The purpose of risk management is to protect the Company's cash flows and reduce the threats to the financing of its operating working capital and investment programs. 4.1 Market risks Braskem prepares a sensitivity analysis for foreign exchange rate and interest rate risks to which it is exposed, which is presented in Note 19.6. (a) Exposure to commodity risks Most of the Braskem's feedstocks (naphtha, ethane, propane and propylene) and main products (PE, PP and PVC) are commodities quoted on international markets. A series of factors determine the dynamics of these quotes which directly impacts the result and cash generation of Braskem. Nevertheless, the Company understands that this risk is inherent in the petrochemical business and, therefore, in general does not seek financial instruments to hedge against commodities price fluctuations. (b) Exposure to foreign exchange risk Considering the dynamics of the international petrochemicals market, where most of the time prices are linked to international references in denominated dollars, even Braskem's sales in Brazil are strongly correlated to the US currency. Thus, maintaining a portion of the cost in reais (fixed expenses with personnel, freight and energy, among others) tends to generate a passive net exposure to the local currency. Therefore, in order to partially mitigate long-term foreign exchange risk, as from September 2016, the Company began to contract financial derivatives to form a Long-Term Foreign Exchange Hedge Program. The main mitigation of this program is the purchase and sale of US dollar options, protecting the expected flows for a period of up to 24 months, as described in more detail in Note 19.3. In addition to the Hedge Program, to balance the composition between assets and liabilities in US dollars, Braskem's Financial Policy establishes that the Company should always maintain a percentage of at least 70% of the net debt denominated in US dollars. If appropriate, the company may maintain a percentage higher than 70%, provided that it is conditioned to a sensitivity analysis on the main financial indicators and the proof of the existence of no significant risk in the deterioration of these indicators. On December 31, 2017, Braskem prepared a sensitivity analysis for its exposure to fluctuation in the U.S. dollar, as informed in Note 19.6. (c) Exposure to interest rate risk Braskem is exposed to the risk that a variation in floating interest rates causes an increase in its financial expense due to payments of future interest. Debt denominated in foreign currency subject to floating rates is mainly subject to fluctuations in Libor. Debt denominated in local currency is mainly subject to the variation in the Long-Term Interest Rate (“TJLP”) and in the Interbank Certificate of Deposit (“CDI”) rate. In 2016 and 2017, Braskem held swap contracts (Note 19.3.1) in which it: receives the pre-contractual rate and pays the CDI overnight rate; and receives Libor and pays a fixed rate. On December 31, 2017, Braskem prepared a sensitivity analysis for the exposure to the floating interest rates Libor, CDI and TJLP, as informed in Notes 19.6(c.1) and (c.2). 4.2 Exposure to credit risk The transactions that subject Braskem to the concentration of credit risks are mainly in current accounts with banks, financial investments and trade accounts receivable in which Braskem is exposed to the risk of the financial institution or customer involved. In order to manage this risk, Braskem maintains bank current accounts and financial investments with major financial institutions, weighting concentrations in accordance with the credit rating and the daily prices observed in the Credit Default Swap market for the institutions, as well as netting contracts that minimize the total credit risk arising from the many financial transactions entered into by the parties. On December 31, 2017, approximately 17.4% of the amounts recorded as “Cash and cash equivalents” (Note 6) were allocated to financial institutions that had clearance agreements with the Company. The obligations under these agreements are accounted for under “Borrowings” (Note 16). The effective netting of these amounts is possible only in the event of default by one of the parties. With respect to the credit risk of customers, Braskem protects itself by performing a rigorous analysis before granting credit and obtaining secured and unsecured guarantees when considered necessary, including credit insurance. The maximum exposure to credit risk of non-derivative financial instruments on the reporting date is the sum of their carrying amounts less any provisions for impairment losses. On December 31, 2017, the balance of trade accounts receivable was net of allowance for doubtful accounts (Note 8). 4.3 Liquidity risk Braskem has a calculation methodology to determine minimum cash “vision month” (horizon of 30 days) and minimum cash “vision year” (horizon of up to 12 months) for the purpose of, respectively: (i) ensuring the liquidity needed to comply with obligations of the following month; and (ii) ensuring that the Company maintains liquidity during potential crises. The amounts for determination of the minimum cash “vision year” are calculated mainly based on the projected operating cash generation, less short-term debts and working capital needs. The amounts for determination of the minimum cash "vision month" consider the projection of operational cash disbursement, service of debts and contributions in projects, as well as the expected disbursement for derivatives with maturity in the period, among other items. The Company, in a conservative manner, uses as the minimum cash in its financial policy the highest value between these two references. Braskem has two revolving credit lines for the purpose of managing liquidity risks, which may be used without restrictions to improve the Company's credit quality or in the event of deterioration in the macroeconomic scenario, in the amounts of: (i) US$750 million until December 2019; and (ii) US$500 million until September 2019. These credit facilities enable Braskem to reduce the amount of cash it holds. As of December 31, 2017, none of these credit lines had been used. The table below shows Braskem's financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 23.3). These amounts are calculated from undiscounted cash flows and may not be reconciled with the balance sheet. The Braskem Idesa's borrowings presents the original long-term maturities, excluding the reclassification to current liabilities arising from the breach of contractual obligations (Note 16). Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 5,119,937 259,737 5,379,674 Borrowings 1,256,574 3,963,839 6,708,910 24,520,093 36,449,416 Debentures 28,569 83,520 133,206 180,001 425,296 Braskem Idesa borrowings 820,282 1,832,863 2,250,575 7,616,260 12,519,980 Derivatives 6,875 6,875 Loan to non-controlling shareholder of Braskem Idesa 1,756,600 1,756,600 Leniency agreement (Note 23.3) 257,347 325,299 1,007,348 743,902 2,333,896 At December 31, 2017 7,489,584 6,465,258 10,100,039 34,816,856 58,871,737 4.4 Capital management The ideal capital structure, according to Braskem's Management, considers the balance between own capital and the sum of all payables less the amount of cash and cash equivalents and financial investments. This composition meets the Company's objectives of perpetuity and of offering an adequate return to shareholders and other stakeholders. This structure also permits borrowing costs to remain at adequate levels to maximize shareholder remuneration. Due to the impact of the U.S. dollar on the Company's operations, the Management of Braskem believes that the own capital used for capital management purposes should be measured in this currency and on a historical basis. Moreover, the Company may temporarily maintain a capital structure that is different from this ideal. This occurs, for example, during periods of growth, when the Company may finance a large portion of its projects through borrowings, provided that this option maximizes return for shareholders once the financed projects start operating. In order to adjust and maintain the capital structure, the Management of Braskem may also consider the sale of non-strategic assets, the issue of new shares or even adjustments to dividend payments. |
Available-for-sale assets and d
Available-for-sale assets and discontinued operations | 12 Months Ended |
Dec. 31, 2017 | |
Available-for-sale assets and discontinued operations [Abstract] | |
Available-for-sale assets and discontinued operations | 5. Available-for-sale assets and discontinued operations During the second half of 2016, the Management of the Company approved the sale plan of the subsidiaries Quantiq Distribuidora Ltda. and IQAG Armazens Gerais Ltda. to the company GTM do Brasil Comércio de Produtos Químicos Ltda. On January 9, 2017, the Board of Directors approved the sale in the amount of R$550 million, was signed on the following day, and in January the operation was approved by Brazil's antitrust agency CADE ( Conselho Administrativo de Defesa Econômica ). The transfer of control to the buyer company was concluded on April 3, 2017. On the same date, Braskem received R$450 million. The remaining R$100 million will be received within 12 months, subject to adjustments typical to operations of this nature. The capital gain from the operation was R$276,816 (Total income of R$550,000 (-) net assets of R$273,184), recorded in the second quarter of 2017. Assets and liabilities classified as available-for-sale and profit and loss from discontinued operations until the date of transfer of control are shown below: (a) Balance sheet Assets and liabilities classified as held for sale Mar/2017 Dec/2016 Assets Cash and cash equivalents 40,216 76,146 Trade accounts receivable 119,076 65,626 Inventories 82,815 84,296 Taxes recoverable 46,858 45,859 Property, plant and equipment 61,591 61,037 Intangible assets 6,729 6,665 Other assets 17,932 20,075 Total assets 375,217 359,704 Liabilities Trade payables 75,852 62,692 Payroll and related charges 7,099 11,170 Dividends 6,371 6,371 Taxes payable 9,668 7,064 Other payables 3,043 8,099 Total liabilities 102,033 95,396 Net assets (Assets (-) Liabilities) 273,184 264,308 (b) Statement of operations Result with discontinued operations Mar/2017 Dec/2016 Dec/2015 Net sales revenue 212,238 830,754 874,702 Cost of products sold and services provided (176,957) (674,619) (702,696) Gross profit 35,281 156,135 172,006 Income (expenses) Selling and distribution (10,164) (45,938) (38,856) General and administrative (12,067) (77,258) (59,327) Other income (expenses), net (1,298) (608) (25,029) Operating profit 11,752 32,331 48,794 Financial results 1,747 8,429 (31,967) Profit before income tax and social contribution 13,499 40,760 16,827 Current and deferred income tax and social contribution (4,623) (13,901) (10,445) Result with discontinued operations 8,876 26,859 6,382 (c) Cash flow 2016 2015 Profit before income tax and social contribution 40,760 16,827 Adjustments for reconciliation of profit Depreciation, amortization and depletion 5,428 5,639 Interest and monetary and exchange variations, net (867) 17,090 Other 93 61 45,414 39,617 Changes in operating working capital 41,642 (18,720) Cash from operations 87,056 20,897 Acquisitions to property, plant and equipment (5,491) (8,749) Other 214 Net cash used in investing activities (5,491) (8,535) Short-term and long-term debt Obtained 44,254 Payments (57,543) (2,121) Related parties Obtained 26,469 24,553 Payments (35,094) (24,646) Dividends paid (6,029) (2,380) Net cash provided (used) by financing activities (72,197) 39,660 Increase in cash and cash equivalents 9,368 52,022 Represented by Cash and cash equivalents at the beginning for the year 66,778 14,756 Cash and cash equivalents at the end for the year 76,146 66,778 Increase in cash and cash equivalents 9,368 52,022 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents [Abstract] | |
Cash and cash equivalents | 6. Cash and cash equivalents 2017 2016 Cash and banks (i) 1,428,766 2,178,611 Cash equivalents: Domestic market 1,706,784 2,914,685 Foreign market (i) 639,543 1,608,568 Total 3,775,093 6,701,864 (i) On December 31, 2017, it includes cash and banks of R$247,285 (R$172,430 on December 31, 2016) and cash equivalents of R$47,400 (R$29,169 on December 31, 2016) of the subsidiary Braskem Idesa, available for use exclusively in its project. This item includes cash, bank deposits and highly liquid financial investments available for redemption within three months. These assets are convertible into a known cash amount and are subject to insignificant risk of change in value. Cash equivalents in Brazil are mainly represented by fixed-income instruments and time deposits held by the FIM Jupiter fund. Cash equivalents abroad mainly comprise fixed-income instruments issued by first-class financial institutions (time deposit) with high market liquidity. |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2017 | |
Financial investments [Abstract] | |
Financial investments | 7. Financial investments 2017 2016 Loans and receivables Time deposit investments (i) 440,616 434,015 Held-for-trading Time deposit investments 15,764 Letras financeiras do tesouro - LFT´s and Letras Financeiras - LF´s (ii) 1,816,889 755,712 Other 39,739 756 Total 2,313,008 1,190,483 Current assets 2,302,672 1,190,483 Non-current assets 10,336 Total 2,313,008 1,190,483 (i) This investment was given as guarantee to cover Braskem's obligation related to the constitution of a reserve account for the project finance of the subsidiary Braskem Idesa. The guarantee was withdrawn in April 2018 and this amount will become fully available. (ii) Government bonds held for trade refer to Brazilian floating-rate government bonds (“LFTs”) issued by the Brazilian federal government and floating-rate bonds (“LFs”) issued by financial institutions. These bonds have maturity above three months, immediate liquidity and expected realization in the short term. |
Trade accounts receivable
Trade accounts receivable | 12 Months Ended |
Dec. 31, 2017 | |
Trade accounts receivable [Abstract] | |
Trade accounts receivable | 8. Trade accounts receivable The Company's billing period is generally 30 days; therefore, the amount of the trade accounts receivable corresponds to their fair value. The Company realizes part of its trade accounts receivable through the sale of trade notes to funds and financial institutions that acquire receivables. These operations are not entitled to recourse and with substantial transfer of receivables risks and benefits, for which reason the trade notes are written-off at the moment of the operation. 2017 2016 Costumers Domestic market 1,459,623 869,306 Foreign market 2,209,094 1,215,626 Allowance for doubtful accounts (350,025) (380,559) Total 3,318,692 1,704,373 Current assets 3,281,196 1,634,137 Non-current assets 37,496 70,236 Total 3,318,692 1,704,373 The breakdown of trade accounts receivable by maturity is as follows: 2017 2016 Accounts receivables not past due 2,886,546 1,668,063 Past due securities: Up to 90 days 567,590 173,125 91 to 180 days 3,673 15,325 As of 180 days 210,908 228,419 3,668,717 2,084,932 Allowance for doubtful accounts (350,025) (380,559) Total customers portfolio 3,318,692 1,704,373 The changes in the allowance for doubtful accounts are presented below: 2017 2016 Balance of provision at the beginning of the year (380,559) (327,974) Provision in the year 18,573 (102,065) Write-offs 22,878 38,499 Addition through merger of Cetrel (10,917) Transfers (of) to non-current assets held for sale 10,981 Balance of provision at the end of the year (350,025) (380,559) The methodology adopted by the Company for recognizing the provision for impairment is based on the history of losses and considers the sum of (i) 100% of the amount of receivables past due for over 180 days; (ii) 50% of the amount of receivables past due between 90 and 180 days; (iii) 100% of the amount of receivables under judicial collection (iv) all the receivables from the first renegotiation maturing within more than 24 months; and (v) 100% of the receivables arising from a second renegotiation with customers. Receivables from subsidiaries are not considered in this calculation. This methodology is revised on an annual basis by the Management of the Company. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | 9. Inventories 2017 2016 Finished goods 4,255,114 3,444,898 Raw materials, production inputs and packaging 1,715,757 1,407,399 Maintenance materials 365,803 312,167 Advances to suppliers 275,169 103,267 Imports in transit and other 74,670 31,816 Total 6,686,513 5,299,547 In current assets 6,640,049 5,238,014 In non-current assets 46,464 61,533 Total 6,686,513 5,299,547 Inventories of finished products are stated at average cost of purchase or production or the estimated price of sale or acquisition, excluding taxes, whichever is lower The value of finished products includes raw materials, ancillary and maintenance materials used, depreciation of industrial facilities, expenses with Company's and third-party personnel involved in industrial production and maintenance, and logistics expenses with the transfer of these products from the plants to the sale terminals. In the fiscal years ended December 31, 2017 and December 31, 2016, finished goods presented a value below their net realizable value, which means there is no need to accrue a provision. For this estimate, the Company considers the sale price projected for the period during which it expects to sell the product. This period is determined based on the historical data for the turnover of the respective inventory. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2017 | |
Related parties [Abstract] | |
Related parties | 10. Related parties Balance sheet for associated companies, jointly-controlled investment and related companies 2017 2016 Odebrecht and Petrobras and Odebrecht and Petrobras and Balance sheet subsidiaries subsidiaries Other Total subsidiaries subsidiaries Other Total Assets Current Trade accounts receivable 7,634 45,184 60,502 113,320 5,634 33,843 28,390 67,867 Inventories 250,904 (i) 118 251,022 5,434 5,434 Dividends and interest on capital 10,859 10,859 14,986 14,986 Other 50 50 Total assets 258,538 45,302 71,361 375,201 5,684 39,277 43,376 88,337 Liabilities Current Trade payables 21,530 149,058 700 171,288 77,461 904,090 1,226 982,777 Other receivables 2,338 562 7,591 10,491 Total liabilities 23,868 149,620 8,291 181,779 77,461 904,090 1,226 982,777 (i) Note 10(b.i and b.ii) Transactions between associated companies, jointly-controlled investment and related companies 2017 2016 2015 Odebrecht and Petrobras and Odebrecht and Petrobras and Odebrecht and Petrobras and subsidiaries subsidiaries Other Total subsidiaries subsidiaries Other Total subsidiaries subsidiaries Other Total Transactions Sales of products 27,467 1,810,789 629,302 2,467,558 49,051 2,023,815 562,709 2,635,575 64,093 1,620,335 475,836 2,160,264 Purchases of raw materials, finished goods services and utilities 742,161 12,795,819 5,664 13,543,644 1,564,103 (ii) 12,291,190 56,170 13,911,463 3,692,625 (ii) 12,488,618 108,688 16,289,931 Financial income (expenses) 2,056 (39,433) (37,377) (21) 6,452 6,431 6,723 6,723 General and administrative expenses Post-employment benefits plan ("EPE") Odebrecht Previdência Privada ("Odeprev") 36,725 36,725 41,845 41,845 44,466 44,466 Acquisition of subsidiary 610,000 1(a.ii) 610,000 (i) 10(a.i) and (a.ii); (ii) Includes expenses with the Braskem Idesa project, in the amount of R$734,263 related to the fiscal year ended December 31, 2016 and R$3,177,121 related to the fiscal year ended December 31, 2015. (a) New and/or renewed agreements with related companies As provided for in the Company's bylaws, the Board of Directors has the exclusive power to decide on any contract with related parties but those related to the purchase of raw materials that exceed R$5,000 per operation or R$15,000 altogether per year. This provision encompasses contracts between the Company and its subsidiaries and (i) any of its common shareholders and (ii) directors of the Company or subsidiary or its respective related parties. Pursuant to Federal Law 6,404/76, officers and directors are prohibited from: (i) performing any acts of liberality with the use of the Company's assets and in its detriment; (ii) intervening in any operations in which these officers and directors have a conflict of interest with the Company or in resolutions in which they participate; and (iii) receiving, based on their position, any type of personal advantage from third parties, directly or indirectly, without an authorization under the Bylaws or by the shareholders' meeting. As part of the control to identify related parties, the officers and directors of Braskem are asked, on an annual basis, if they or their direct family members have any kind of relevant interaction, in an amount equal to or greater than R$5,000 per operation, or in an aggregate amount greater than R$15,000, with companies that transact with Braskem and its subsidiaries, per fiscal year. Such interaction may be in the form of holding an equity interest or participating in the management of the company. For the fiscal years 2017 and 2016, the companies that were informed by the managers are considered in this note if they met the aforementioned criteria. The related parties that have significant relationship with the Company are as follows: Odebrecht and its direct and indirect subsidiaries: · Agro Energia Santa Luzia S.A. (“USL”) · Brenco Companhia Brasileira de Energia Renovável. (“Brenco”) · Construtora Norberto Odebrecht S.A. (“CNO”). · Odebrecht Agroindustrial Participações S.A. (“ODB Agro Par”) · Rio Claro Agroindustrial S.A. · Usina Conquista do Pontal S.A. (“UCP”) · Santo Antônio Energia S.A. (“SAESA”) Petrobras and its direct and indirect subsidiaries: · Petrobras: shareholder of Braskem. · Petrobras Distribuidora (“BR Distribuidora”). · Refinaria Alberto Pasqualini (“REFAP”). Joint ventures of Braskem: · Refinaria de Petróleo Riograndense S.A. (“RPR”). In the fiscal years ended December 31, 2017 and December 31, 2016, the following transactions were carried out with related companies, all with normal market terms and conditions, by the Company: · Odebrecht and its subsidiaries: (i) In March 2017, the Company entered into an agreement for supply of hydrous ethanol with UCP and USL. Ethanol is the feedstock consumed by Braskem to produce green ethylene. The agreement is guaranteed by ODB Agro Par and Rio Claro. The agreement also provides for a commercial discount and other flexibilities in the process of Braskem's acquisition of the product. It also includes an advance of R$150,000, to be restated at market rates. The advance is guaranteed by a pledge of the sugarcane crop, its products and subproducts at net market value in an amount greater than the value of the advance, with the pledged asset insured through a policy contracted from a premium insurer and with a provision for subrogation. The agreement is valid through April 30, 2018 and the balance as of December 31, 2017 was R$50,904. In December 2017, the Company entered into an amendment that changed the billing for raw material acquisitions to future delivery, so as to bring forward the billing of the volume of the goods delivered between January and March 2018. The amendment determines that the price practiced at time of delivery is the lesser of the ceiling established in the amendment and the reference established in the original contract. (ii) In December 2017, an agreement was entered into with USL, UCP, ODB Agro Par and Brenco, with the purpose of ensuring the supply of hydrous ethanol volumes, which included a commercial discount on the supply and established contractual flexibilities for acquisition. The contract includes an advance of R$200,000, which is guaranteed by a pledge of the sugarcane crop, its products and sub-products at a net market value greater than the amount of the advance, with the pledged asset insured by a policy contracted from a premium insurer and with a provision for subrogation, with duration through April 30, 2019. (iii) In December 2017, the Company signed an industrial maintenance services agreement with CNO that encompassed boilers and the welding of tubing and static equipment, as well as operational and maintenance services on cargo machinery to be performed at the Braskem Units located in Rio Grande do Sul. The agreement has an estimated maximum amount of R$120,000 and is valid through December 1, 2021. (iv) In August 2016, a power purchase agreement was executed with SAESA to supply Braskem's industrial units. The agreement has an estimated maximum value of R$517,000 and is valid for 13 years as from January 1, 2017. · Petrobras and its subsidiaries: (i) On December 23, 2015, Braskem and Petrobras entered into an agreement for the annual purchase of 7 million tons of petrochemical naphtha for five years. This agreement includes commercial renegotiation rights for both parties as of the third year, in case of changes in certain market conditions. The established price is 102.1% of ARA international benchmark, which is the average price of inputs in the European ports of Amsterdam, Rotterdam and Antwerp). (ii) As from January 2017, Braskem maintains agreements for the sale of gasoline to Petrobras Distribuidora S.A., which is renewed on a monthly basis. Sales in the year amount to R$995,602. (iii) In November 2016, the Company entered into an agreement with Petrobras for the purchase of 108,000 tons of polymer-grade propylene through REFAP, with duration of 5 years. · Braskem joint venture: (i) In 2017, sales of gasoil to RPR amounted to R$44,698. The product is used as feedstock in the diesel production process. (ii) Since January 2017, Braskem has maintained monthly negotiations for the sale of gasoline to RPR. Sales in the period amounted to R$323,949. (b) Key management personnel Income statement transactions 2017 2016 2015 Remuneration Short-term benefits 60,303 44,277 46,562 Post-employment benefit 664 515 272 Total 60,967 44,792 46,834 |
Taxes recoverable
Taxes recoverable | 12 Months Ended |
Dec. 31, 2017 | |
Taxes recoverable [Abstract] | |
Taxes recoverable | 11. Taxes recoverable 2017 2016 2015 Adjusted Brazil IPI 18,226 38,909 23,996 Value-added tax on sales and services (ICMS) - normal operations (a) 483,248 495,339 403,842 ICMS - credits from PP&E 140,904 125,145 121,954 Social integration program (PIS) and social contribution on revenue 22,389 32,823 69,431 PIS and COFINS - credits from PP&E 223,297 253,503 230,030 Income tax and social contribution (IR and CSL) (b) 691,697 605,058 958,567 REINTEGRA program (c) 102,166 53,129 274,654 Federal supervenience (d) 140,537 155,533 173,436 Other 4,322 1,046 14,281 Foreign subsidiaries Value-added tax ("IVA") 92,119 132,152 277,751 Income tax (IR) 46,939 19,103 80,600 Other 4,021 2,628 1,559 Total 1,969,865 1,914,368 2,630,101 Current assets 982,629 826,015 1,312,341 Non-current assets 987,236 1,088,353 1,317,760 Total 1,969,865 1,914,368 2,630,101 (a) ICMS - normal operations Accumulated ICMS credits over the past few years arises mainly from domestic sales subject to deferred taxation and export sales. The Management of the Company has been prioritizing a series of actions to maximize the use of these credits and currently does not expect losses on the realization of cumulative balances. (b) IR and CSL Accumulated IR and CSL arises from prepayments of these taxes and retentions on income from financial investments over the past few years. The realization of these credits occurs in two ways: (i) offset of overdue or falling due liabilities related to taxes levied by the Federal Revenue Service; or (ii) cash reimbursement. Diverse tax refund claims were already filed with Brazil's Federal Revenue Service. (c) REINTEGRA Program The REINTEGRA program aims to refund to exporters the federal taxes levied on the production chain for goods sold abroad. The amount to be refunded is equivalent to the following percentages of all export revenue, in accordance with Federal Law 13,043/14 and Executive Order 8,543/15: (i) 3%, between October 1, 2014 and February 28, 2016; (ii) 1%, between March 1, 2016 and November 30, 2016; (iii) 0.1% between December 1, 2016 and December 31, 2017; (iv) 2% between January 1, 2017 and December 31, 2017; (v) 2% between January 1, 2018 and May 31, 2018; and (vi) 0.1% as of June 1, 2018. Such credits may be realized in two ways: (i) by offsetting own debits overdue or undue related to taxes levied by the Federal Revenue Service; or (ii) by a cash reimbursement. In the fiscal year ended December 31, 2017, the Company recognized credits in the amount of R$178,716 (R$8,694 in 2016) and offset the amount of R$138,531 (R$230,220 in 2016). In the Statement of Operations, credits were recognized in the item “Cost of Products Sold.” (d) Federal supervenience This item includes credits arising from legal discussions regarding the legality and constitutionality of various taxes and contributions in which the Company has already obtained a favorable ruling or has unquestionable precedents in its favor. These amounts will be realized after the use of other credits described above in this Note. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | 12. Investments (a) Information on investments Interest in total Net profit (loss) and voting for the year Equity capital (%) - 2017 2017 2016 2015 2017 2016 Jointly-controlled investment RPR 33.20 106,109 86,682 24,784 201,038 175,896 Odebrecht Comercializadora de Energia S.A. ("OCE") 20.00 (543) (5,720) 10,490 5,178 5,721 Associates Borealis 20.00 17,752 10,538 (3,914) 166,630 162,629 (b) Changes in investments Dividends Provision Equity Balance at and interest Effect for losses/ valuation Balance at Dec/2016 Incorporations on equity of results other adjustments Dec/2017 Associates Borealis 32,526 (3,793) 4,592 33,325 32,526 (3,793) 4,592 33,325 Jointly-controlled investments OCE 1,145 (109) 1,036 RPR 58,404 (30,960) 35,230 4,078 66,752 Other 238 28 (121) 145 59,787 28 (30,960) 35,121 (121) 4,078 67,933 Total 92,313 28 (34,753) 39,713 (121) 4,078 101,258 (c) Impact on the consolidation of Braskem Idesa In compliance with IFRS 12, the Company is presenting the financial statements of the subsidiary in which the non-controlling shareholder holds interest, with material effects on the Company's consolidated statements. Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated (i) Eliminations Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 Assets Curent Cash and cash equivalents 3,480,407 6,500,265 294,686 201,600 3,775,093 6,701,865 Financial investments 2,302,672 1,190,483 2,302,672 1,190,483 Trade accounts receivable 2,809,034 1,455,893 620,531 247,465 (148,369) (69,221) 3,281,196 1,634,137 Inventories 6,293,324 4,862,571 346,725 375,443 6,640,049 5,238,014 Taxes recoverable 919,600 710,982 63,029 115,033 982,629 826,015 Other receivables 392,750 278,865 44,630 27,169 437,380 306,034 16,197,787 14,999,059 1,369,601 966,710 (148,369) (69,221) 17,419,019 15,896,548 Non-current assets held for sale 359,704 359,704 16,197,787 15,358,763 1,369,601 966,710 (148,369) (69,221) 17,419,019 16,256,252 Non-current Taxes recoverable 987,184 1,088,304 52 49 987,236 1,088,353 Deferred tax 129,469 189,613 1,036,257 1,463,502 1,165,726 1,653,115 Related parties 5,051,706 4,690,672 (ii) (5,051,706) (4,690,672) Other receivables 637,549 648,511 33,207 29,823 670,756 678,334 Property, plant and equipment 19,180,263 18,814,175 11,228,346 11,171,400 (iii) (646,999) (648,865) 29,761,610 29,336,710 Intangible 2,575,567 2,667,708 151,930 141,379 2,727,497 2,809,087 28,561,738 28,098,983 12,449,792 12,806,153 (5,698,705) (5,339,537) 35,312,825 35,565,599 Total assets 44,759,525 43,457,746 13,819,393 13,772,863 (5,847,074) (5,408,758) 52,731,844 51,821,851 Liabilities and shareholders' equity Current Trade payables 5,047,293 6,335,452 159,872 278,905 (148,369) (69,221) 5,058,796 6,545,136 Borrowings 1,184,781 2,594,463 1,184,781 2,594,463 Debentures 27,183 27,183 Braskem Idesa Borrowings 9,691,450 10,437,791 9,691,450 10,437,791 Payroll and related charges 609,883 540,405 20,634 22,050 630,517 562,455 Taxes payable 881,702 611,231 13,067 12,849 894,769 624,080 Other payables 1,019,346 2,053,031 57,581 125,955 1,076,927 2,178,986 8,770,188 12,134,582 9,942,604 10,877,550 (148,369) (69,221) 18,564,423 22,942,911 Non-current liabilities held for sale 95,396 95,396 8,770,188 12,229,978 9,942,604 10,877,550 (148,369) (69,221) 18,564,423 23,038,307 Non-current Loan agreements 22,176,640 20,736,604 22,176,640 20,736,604 Braskem Idesa Borrowings 286,141 286,141 Accounts payable to related parties 5,065,971 4,698,881 (ii) (5,065,971) (4,698,881) Non-controlling loan in Braskem Idesa (v) 1,756,600 1,620,519 1,756,600 1,620,519 Provision for losses on subsidiaries 2,689,769 3,053,637 (iv) (2,689,769) (3,053,637) Other payables 4,467,398 4,698,937 7,842 6,774 4,475,240 4,705,711 29,619,948 28,489,178 6,830,413 6,326,174 (7,755,740) (7,752,518) 28,694,621 27,062,834 Shareholders' equity Attributable to the Company's shareholders 6,300,300 2,738,590 (2,953,624) (3,430,861) 2,953,625 3,430,861 6,300,301 2,738,590 Non-controlling interest in Braskem Idesa 69,089 (896,590) (1,017,880) (827,501) (1,017,880) 6,369,389 2,738,590 (2,953,624) (3,430,861) 2,057,035 2,412,981 5,472,800 1,720,710 Total liabilities and shareholders' equity 44,759,525 43,457,746 13,819,393 13,772,863 (5,847,074) (5,408,758) 52,731,844 51,821,851 (i) Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Serviços. (ii) Loan from Braskem Holanda as part of shareholders' contribution to the Braskem Idesa project. (iii) Adjustment corresponding to the capitalization of a portion of financial charges of the abovementioned loan. (iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. (v) Loan owed to the non-controlling shareholder as part of shareholders' contribution to the project. Statement of operations Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 Adjusted Adjusted Adjusted Net sales revenue 46,207,109 46,343,171 3,656,801 1,495,018 (603,316) (174,201) 49,260,594 47,663,988 Cost of products sold (34,675,494) (34,040,770) (2,125,031) (1,109,020) 623,117 164,221 (36,177,408) (34,985,569) 11,531,615 12,302,401 1,531,770 385,998 19,801 (9,980) 13,083,186 12,678,419 Income (expenses) Selling and distribution (1,287,817) (1,286,558) (171,791) (117,115) (1,459,608) (1,403,673) General and administrative (1,336,072) (1,201,489) (122,043) (123,855) 23,843 39,731 (1,434,272) (1,285,613) Research and development (167,456) (162,010) (167,456) (162,010) Results from equity investments 191,949 (923,096) (151,993) 953,174 39,956 30,078 Other income (expenses), net (887,185) (3,913,567) 32,305 7,613 (854,880) (3,905,954) 8,045,034 4,815,681 1,270,241 152,641 (108,349) 982,925 9,206,926 5,951,247 Financial results Financial expenses (3,044,668) (3,054,334) (973,952) (688,868) 271,403 172,240 (3,747,217) (3,570,962) Financial income 850,367 955,423 24,666 3,193 (271,403) (268,494) 603,630 690,122 Exchange rate variations, net (936,804) (2,115,993) 132,186 (1,094,424) 5,856 (798,762) (3,210,417) (3,131,105) (4,214,904) (817,100) (1,780,099) 5,856 (96,254) (3,942,349) (6,091,257) Profit (loss) before income tax and social contribution 4,913,929 600,777 453,141 (1,627,458) (102,493) 886,671 5,264,577 (140,010) IR and CSL - current and deferred (1,057,699) (1,039,107) (299,983) 423,061 (1,357,682) (616,046) (1,057,699) (1,039,107) (299,983) 423,061 (1,357,682) (616,046) Profit (loss) for the year of continued operations 3,856,230 (438,330) 153,158 (1,204,397) (102,493) 886,671 3,906,895 (756,056) Discontinued operations results Profit (loss) from discontinued operations 13,499 40,760 13,499 40,760 IR and CSL - current and deferred (4,623) (13,901) (4,623) (13,901) 8,876 26,859 8,876 26,859 Profit (loss) for the year 3,865,106 (411,471) 153,158 (1,204,397) (102,493) 886,671 3,915,771 (729,197) Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 Adjusted Profit (loss) before income tax and social contribution and 4,913,929 641,537 453,141 (1,627,458) (102,493) 886,671 5,264,577 (99,250) Adjustments for reconciliation of profit (loss) Depreciation, amortization and depletion 2,230,466 2,381,160 742,033 331,691 (43,644) (29,751) 2,928,855 2,683,100 Results from equity investments (191,949) 923,096 151,993 (953,174) (39,956) (30,078) Interest and monetary and exchange variations, net 2,900,745 1,851,033 802,825 1,229,219 (5,856) (54,244) 3,697,714 3,026,008 Gain on sale of investment in subsidiary (276,816) (276,816) Leniency agreement 375,476 2,853,230 375,476 2,853,230 Reversal of provisions (223,340) (223,340) Provision for losses and write-offs of long-lived assets 212,759 40,530 425 486 213,184 41,016 9,941,270 8,690,586 1,998,424 (66,062) (150,498) 11,939,694 8,474,026 Changes in operating working capital Financial investments (953,228) (649,535) (953,228) (649,535) Trade accounts receivable (1,304,474) 1,083,117 (373,066) (126,617) 79,148 51,375 (1,598,392) 1,007,875 Inventories (1,387,696) 966,974 36,668 (104,636) (1,351,028) 862,338 Taxes recoverable 415,923 976,770 53,370 81,334 469,293 1,058,104 Prepaid expenses (21,732) 64,029 (8,789) (30,521) 64,029 Other receivables 34,500 332,673 (8,698) 21,308 25,802 353,981 Trade payables (1,444,468) (4,052,705) (119,033) (150,495) (79,148) (51,375) (1,642,649) (4,254,575) Taxes payable (132,697) (674,466) (82,817) 382,335 (215,514) (292,131) Advances from customers (3,089) 207,020 (10,423) 9,830 (13,512) 216,850 Leniency agreement (1,343,803) (1,343,803) Other payables 124,050 430,714 126,087 165,981 250,137 596,695 Cash from operations 3,924,556 7,375,177 1,611,723 212,978 (150,498) 5,536,279 7,437,657 Interest paid (1,648,971) (1,611,718) (505,082) (215,224) (2,154,053) (1,826,942) Income tax and social contribution paid (919,236) (1,152,847) (1,370) (920,606) (1,152,847) Net cash generated by operating activities 1,356,349 4,610,612 1,105,271 (2,246) (150,498) 2,461,620 4,457,868 Proceeds from the sale of fixed assets 450,000 450,000 Acquisitions to property, plant and equipment (608,181) (608,181) Acquisitions of intangible assets (2,185,567) (1,844,510) (87,630) (892,499) 150,498 (2,273,197) (2,586,511) Other 24,977 34,061 24,977 34,061 Net cash used in investing activities (2,318,771) (1,810,449) (87,630) (892,499) 150,498 (2,406,401) (2,552,450) Short-term and long-term debt Obtained 8,492,341 4,107,626 8,492,341 4,107,626 Payments (8,779,091) (4,901,593) (8,779,091) (4,901,593) Derivative transactions - payments (810,279) (810,279) Braskem Idesa borrowings Obtained 187,959 503,921 187,959 503,921 Payments (1,080,502) (469,282) (1,080,502) (469,282) Related parties Obtained loans (payment of loans ) 20,637 (882,158) (20,637) 882,158 Dividends paid (998,893) (1,997,984) (998,893) (1,997,984) Net provided (used) in financing activities (2,075,285) (3,674,109) (913,180) 916,797 (2,988,465) (2,757,312) Exchange variation on cash of foreign subsidiaries 17,849 541,734 (11,374) 44,908 6,475 586,642 Increase (decrease) in cash and cash equivalents (3,019,858) (332,212) 93,087 66,960 (2,926,771) (265,252) Represented by Cash and cash equivalents at the beginning for the year 6,500,265 6,908,623 201,599 134,639 6,701,864 7,043,262 Cash and cash equivalents at the end for the year 3,480,407 6,576,411 294,686 201,599 3,775,093 6,778,010 Increase (decrease) in cash and cash equivalents (3,019,858) (332,212) 93,087 66,960 (2,926,771) (265,252) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment | 13. Property, plant and equipment (a) Change Land Buildings and Improvements Machinery, Equipment and Facilities Projects and Stoppage in Progress (i) Other Total Cost 471,655 5,530,714 36,804,409 3,495,965 1,404,759 47,707,502 Accumulated depreciation/depletion (1,111,642) (16,595,497) (663,653) (18,370,792) Balance as of December 31, 2016 471,655 4,419,072 20,208,912 3,495,965 741,106 29,336,710 Acquisitions 149,018 2,090,157 6,066 2,245,241 Additions for acquisition of subsidiary 14,937 122,846 63,081 46,833 92,052 339,749 Capitalized financial charges 130,272 130,272 Foreign currency translation adjustment 5,600 168,554 387,757 56,425 4,877 623,213 Transfers by concluded projects (ii) 29,703 145,622 2,216,704 (2,539,041) 147,012 Other, net of depreciation/depletion (21,249) (5,149) (166,585) (5,946) (12,342) (211,271) Depreciation / depletion (280,448) (2,275,788) (146,068) (2,702,304) Net book value 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Accumulated depreciation/depletion (1,487,762) (18,627,943) (922,389) (21,038,094) Balance as of December 31, 2017 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 (i) On December 31, 2017, the main amounts recorded under this item corresponded to expenses with scheduled maintenance shutdowns in Brazil and at overseas plants that are either in the preparation phase or ongoing (R$578,920), capitalized financial charges (R$174,333), inventories of spare parts (R$441,262), strategic projects in Brazil (R$436,460), which include the processing of ethane at UNIB BA and the strategic projects of Braskem America (R$552,727), such as the construction of the new unit of polypropylene production in the United States (Note 1(a.iii)). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. (ii) Related mainly to expenses incurred by the Braskem, which were transferred to “Machinery, equipment and facilities” (R$1,592,844). The machinery, equipment and facilities of the Company require inspections, replacement of components and maintenance in regular intervals. The Company makes shutdowns in regular intervals that vary from two to six years to perform these activities. These shutdowns can involve the plant as a whole, a part of it, or even relevant pieces of equipment, such as industrial boilers, turbines and tanks. Shutdowns that take place every six years, for example, are usually made for the maintenance of industrial plants as a whole. Expenses with each scheduled shutdown are included in property, plant and equipment items that were the subject matter of the stoppage and are fully depreciated until the beginning of the following related stoppage. The expenditures with personnel, the consumption of small materials, maintenance and the related services from third parties are recorded, when incurred, as production costs. Property, plant and equipment items are depreciated on a straight-line basis. Projects in progress are not depreciated. Depreciation begins when the assets are available for use. Based on the analysis cited in Note 3.4(a), the Management of Braskem believes that the plants will operate at their full capacity, or close to it, within the projected period, therefore impairment tests of these assets were not necessary. The prices of products manufactured by the Company are quoted in international markets, in the short or medium term, and adjust to the prices of raw materials to preserve the historical margins of the business. In 2017, the financial charges were capitalized in the amount of R$130,272 (R$367,780 in 2016). The average rate of these charges in the year was 7.78% p.a. (8.12% p.a. in 2016). (b) Property, plant and equipment by country 2017 2016 Brazil 16,665,988 16,939,745 Mexico 10,581,347 10,522,536 United States of America 2,275,987 1,668,399 Germany 229,328 205,650 Other 8,960 380 29,761,610 29,336,710 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets [Abstract] | |
Intangible assets | 14. Intangible assets Goodwill based on Customers expected future Brands Software and Suppliers profitability and Patents licenses Agreements Total Cost 3,187,722 339,512 566,673 772,888 4,866,795 Accumulated amortization (1,128,848) (110,880) (364,336) (453,644) (2,057,708) Balance as of December 31, 2016 2,058,874 228,632 202,337 319,244 2,809,087 Acquisitions 340 27,319 297 27,956 Additions through acquisition on subsidiary 1,316 402 1,718 Foreign currency translation adjustment 8,357 4,759 (932) 12,184 Other, net of amortization 1,107 (124) 983 Amortization (8,349) (43,467) (72,615) (124,431) Net book value 2,058,874 230,087 192,140 246,396 2,727,497 Cost 3,187,722 349,316 607,528 772,253 4,916,819 Accumulated amortization (1,128,848) (119,229) (415,388) (525,857) (2,189,322) Balance as of December 31, 2017 2,058,874 230,087 192,140 246,396 2,727,497 Average annual rates of amortization 5.89% 11.91% 6.00% The Company adopts the following accounting practice for each class of intangible assets: (a) Goodwill based on future profitability The existing goodwill was determined in accordance with the criteria established by the accounting practices adopted in Brazil before the adoption of the IASB pronouncements and represent the excess of the amount paid over the amount of equity of the acquired companies. Such goodwill was systematically amortized until December 2008. As from 2009, it has been subject to annual impairment tests. In October 2017, Braskem conducted an impairment test of the goodwill using the value in use method (discounted cash flow) and did not identify any loss, as shown in the table below: Book value Allocated Cash flow (with goodwill and goodwill (CF) work capital) (i) CF/Book value CGU and operating segments CGU - UNIB - South 926,854 11,970,190 2,912,030 4.1 Operating segment - Polyolefins 939,667 26,654,836 7,766,269 3.4 Operating segment - Vinyls 192,353 5,091,859 2,895,428 1.8 (i) The carrying amount includes, in addition to goodwill, long-lived assets and working capital from each operating segment. The assumptions adopted to determine the discounted cash flow are described in Note 3.4(b). The WACC used was 12.33% p.a. The inflation rate considered for perpetuity was 4.1%. Given the potential impact on cash flows of the “discount rate” and “perpetuity”, Braskem conducted a sensitivity analysis based on changes in these variables, with cash flows shown in the table below: +0.5% on -0.5% on discount rate perpetuity CGU and operating segments CGU - UNIB - South 11,327,443 11,485,194 Operating segment - Polyolefins 25,042,032 25,405,611 Operating segment - Vinyls 4,808,622 4,877,875 The main assumptions used for projecting cash flows are related to the projection of macroeconomic indicators, international prices, global and local demand in the countries where Braskem has operational production plants. Macroeconomic indicators are provided by a widely recognized consulting firm and include items such as: exchange, inflation and interest rates, among others. Prices for key petrochemical products are obtained from projections made by an international consulting firm. However, final prices take into consideration meetings of specific internal committees and the knowledge of the Company's experts in preparing the benchmarks for each market. In most cases, for the projected period, the internally projected prices were more conservative than those originally projected by the international consulting firm. Similar to for prices, global demand also is contracted from a specific consulting firm and, in the markets where the Company operates more directly, they consider additional variables for the composition of local demand. In the Vinyls segment, whose main product is PVC, the projected cash flow exceeded the book value of assets by 76%. The main variables impacting this business are related to fluctuations in the exchange rate, international spreads (especially those related to the prices of naphtha, PVC and Caustic Soda) and Brazilian demand. Effective deviations of these important variables from the Company's projections could lead to cash flows being lower than the value of the assets. (b) Intangible assets with defined useful lives (b.1) Trademarks and patents The technologies acquired from third parties, including those acquired through business combination, are recorded at the cost of acquisition and/or fair value and other directly attributed costs, net of accumulated amortization and provision for impairment, when applicable. Technologies that have defined useful lives and are amortized using the straight-line method based on the term of the purchase agreement (between 10 and 20 years). Expenditures with research and development are accounted for in profit and loss as they are incurred. (b.2) Contractual customer and supplier relationships Contractual customer and supplier relationships arising from a business combination were recognized at fair value at the respective acquisition dates. These contractual customer and supplier relationships have a finite useful life and are amortized using the straight-line method over the term of the respective purchase or sale agreement (between 14 and 28 years). (b.3) Software All software booked has defined useful life estimated between 3 and 10 years and is amortized using the straight-line method. Costs associated with maintaining computer software programs are recognized in profit and loss as incurred. (c) Intangible assets by country 2017 2016 Brazil 2,502,231 2,526,371 Mexico 151,930 141,379 United States of America 47,357 115,355 Germany 25,948 25,956 Other 31 26 2,727,497 2,809,087 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings [Abstract] | |
Borrowings | 15. Borrowings (a) Borrowings Annual financial charges 2017 2016 Foreign currency Bonds Note 15 (b) 20,082,588 14,216,539 Advances on exchange contracts US dollar exchange variation + 3.52% 362,779 Export prepayment Note 15 (d) 781,573 777,801 BNDES Exchange variation + interest between 6.82 and 6.98 201,147 Export credit notes Exchange variation + interest between 7.30 and 7.87 679,895 1,173,127 Working capital US dollar exchange variation + 1.88% above Libor 883,181 1,644,487 Transactions costs (285,657) (199,570) 22,141,580 18,176,310 Current liabilities 985,639 1,128,524 Non-current liabilities 21,155,941 17,047,786 Total 22,141,580 18,176,310 Local currency Export credit notes 8.00 381,632 Export credit notes 105.00 and 108.00 of CDI (i) 508,146 1,717,262 BNDES TJLP + interest between 0.00 and 2.62 31,347 1,527,765 BNDES SELIC + 2.32 22,039 602,648 BNDES Interest between 3.50 and 7.00 132,020 288,486 BNB/ FINEP/ FUNDES/FINISA/FINAME 6.17% 486,227 580,647 FINAME TJLP + interest between 1.90 and 6.00 2,293 1,850 Fundo de Desenvolvimento do Nordeste (FDNE) 6.5% 42,045 46,991 Other CDI + 0.04% 655 19,321 Transactions costs (4,931) (11,845) 1,219,841 5,154,757 Current liabilities 199,142 1,465,939 Non-current liabilities 1,020,699 3,688,818 Total 1,219,841 5,154,757 Foreign currency and local currency Current liabilities 1,184,781 2,594,463 Non-current liabilities 22,176,640 20,736,604 Total 23,361,421 23,331,067 (i) The Company enters into swap transactions to offset the variation in the Interbank Certificate of Deposit (CDI) rate (Note 19.3.1 (a.ii)). (b) Bonds Issue amount Interest Issue date US$ Maturity (% per year) 2017 2016 September-2006 275,000 January-2017 8.00 188,325 June-2008 500,000 June-2018 7.25 440,274 433,766 May-2010 400,000 May-2020 7.00 159,341 156,985 May-2010 350,000 May-2020 7.00 1,169,732 1,152,440 October-2010 450,000 no maturity date 7.38 1,514,826 1,492,434 April-2011 750,000 April-2021 5.75 2,502,351 2,465,361 July-2011 500,000 July-2041 7.13 1,705,722 1,680,507 February-2012 250,000 April-2021 5.75 836,907 824,535 February-2012 250,000 no maturity date 7.38 841,570 829,130 May-2012 500,000 May-2022 5.38 1,668,323 1,643,662 July-2012 250,000 July-2041 7.13 852,861 840,254 February-2014 (i) 500,000 February-2024 6.45 1,697,859 1,672,760 May-2014 (ii) 250,000 February-2024 6.45 848,929 836,380 October-2017 (iii) 500,000 January-2023 3.50 1,667,025 October-2017 (iv) 1,250,000 January-2028 4.50 4,176,868 Total 6,975,000 20,082,588 14,216,539 (i) Effective interest rate including transaction costs is 7.78% p.a. (ii) Effective interest rate including transaction costs is 7.31% p.a. (iii) Effective interest rate including transaction costs is 3.64% p.a. (iv) Effective interest rate including transaction costs is 4.65% p.a. On October 4, 2017, Braskem issued US$1,750 million in Bonds (R$5,480 million), comprising US$500 million (R$1,566 million) due in January 2023 with interest of 3.5% p.a. and US$1,250 million (R$3,914 million) due in January 2028 with interest of 4.5% p.a. The issue due in 2023 was priced at 99.058% of face value, which represents a yield of 3.7% p.a., and the issue due in 2028 was priced at 98.995% of face value, which represents a yield of 4.625% p.a. The transaction costs associated with the issuance of the Bonds in the amount of US $ 26 million were initially recorded as a reduction of liabilities so that the debt amortization during the term of the contract is by its effective interest rate. The proceeds from the issues were used to prepay other liabilities, to fund investments and for general purposes of the Company. (c) Prepayment of borrowings With the proceeds from the issues of October 4, 2017, informed in item (b) above, Braskem prepaid borrowings, as follows: Borrowings Annual financial charges (%) Prepayments Foreign currency Advances on exchange contracts US dollar exchange variation + 3.52% 638,193 Export prepayment US dollar exchange variation + semiannual Libor + 2.60% 215,145 Export credit notes US dollar exchange variation + interest between 7.30 and 8.10 507,866 Working capital US dollar exchange variation + 1.74% above Libor 516,101 1,877,305 Current liabilities 1,170,061 Non-current liabilities 707,244 Total 1,877,305 Local currency Export credit notes 8.00 Export credit notes 105.00 e 112.50 of CDI 1,028,333 BNDES TJLP + interest between 0.00 and 3.58 1,735,186 Other CDI + 0.04 11,305 2,774,824 Current liabilities 139,796 Non-current liabilities 2,635,028 Total 2,774,824 Foreign currency and local currency Current liabilities 1,309,858 Non-current liabilities 3,342,271 Total 4,652,129 (d) Export pre-payment Initial amount of the transaction Issue date (US$ thousand) Maturity Charges (% per year) 2017 2016 January-2013 200,000 November-2022 US dollar exchange variation + semiannual Libor + 1.10 331,701 391,923 May-2016 50,000 May-2017 US dollar exchange variation + quarterly Libor + 3.25 163,564 December-2016 68,000 November-2019 US dollar exchange variation + quarterly Libor + 2.60 222,314 September-2017 135,000 March-2017 US dollar exchange variation + quarterly Libor + 1.61 449,872 Total 453,000 781,573 777,801 (e) Payment schedule The maturity profile of the long-term amounts is as follows: 2017 2016 2018 2,379,757 2019 1,245,895 3,310,384 2020 2,199,869 2,442,493 2021 3,655,465 3,667,632 2022 1,801,844 1,745,936 2023 1,709,587 13,772 2024 2,539,216 2,461,086 2025 45,994 3,839 2026 44,239 1,391 2027 17,586 2028 and thereafter 8,916,945 4,710,314 Total 22,176,640 20,736,604 (f) Guarantees Braskem gave collateral for part of its borrowings as follows: Total Total Loans Maturity debt 2017 guaranteed Guarantees BNB December-2022 113,759 113,759 Mortgage of plants, pledge of machinery and equipment BNB August-2024 187,794 187,794 Bank surety BNDES December-2021 185,406 185,406 Mortgage of plants, land and property, pledge of machinery and equipment FUNDES June-2020 79,882 79,882 Mortgage of plants, land and property, pledge of machinery and equipment FINEP July-2024 89,614 89,614 Bank surety FINEP December-2019 6,806 6,806 Bank surety, pledge of equipment and current account lockout (restricted fund). FINAME February-2022 4,175 4,175 Pledge of equipment FINISA December-2023 6,490 6,490 Bank surety OTHER July-2021 654 654 Pledge of equipment Total 674,580 674,580 |
Braskem Idesa Financing
Braskem Idesa Financing | 12 Months Ended |
Dec. 31, 2017 | |
Braskem Idesa Financing [Abstract] | |
Braskem Idesa Financing | 16. Braskem Idesa Financing Initial value of operation Identification US$ Maturity Charges (% per year) 2017 2016 Project finance (i) Project finance I 700,000 February-2027 Us dollar exchange variation + quarterly Libor + 3.25 2,179,981 2,274,754 Project finance II 189,996 February-2027 Us dollar exchange variation + 6.17 621,140 663,856 Project finance III 600,000 February-2029 Us dollar exchange variation + 4.33 1,827,811 1,911,857 Project finance IV 680,004 February-2029 Us dollar exchange variation + quarterly Libor + 3.88 2,032,093 2,111,234 Project finance V 400,000 February-2029 Us dollar exchange variation + quarterly Libor + 4.65 1,221,997 1,276,449 Project finance VI 89,994 February-2029 Us dollar exchange variation + quarterly Libor + 2.73 273,887 286,480 Project finance VII 533,095 February-2029 Us dollar exchange variation + quarterly Libor + 4.64 1,627,479 1,701,229 Transactions costs (92,938) (104,157) Total 3,193,089 9,691,450 10,121,702 Other borrowings VAT borrowings (ii) November-2029 2.00% above TIIE (*) 13,500 Borrowings for working capital December-2017 Us dollar exchange variation + quarterly Libor + 2.30 302,589 316,089 9,691,450 10,437,791 Current liabilities 9,691,450 10,437,791 Total 9,691,450 10,437,791 (*) TIIE - “Tasa de Interés Interbancaria de Equilibrio” - basic interest rate in Mexico, similar to the CDI overnight rate in Brazil. (i) Financing facility without recourse and with recourse limited to shareholders. (ii) Financing obtained in Mexican peso and paid exclusively through the refund of IVA, settled in January 2017. In line with the Company's Financial Policy, the investment in the construction of the plant in Braskem Idesa is being financed under the Project finance mode, whereby the construction loan must be paid exclusively with the cash generated by the Braskem Idesa itself and shareholders must provide limited guarantees. Thus, this financing has the usual guarantees of this type of operation such as assets, receivables, cash generation and other rights from Braskem Idesa. Project Finance includes restrictive contractual clauses (covenants), customary in contracts of this nature. At the reporting date as of December 31, 2017, the company was in unremedied breach with regard to part of non-pecuniary obligations provided for in the contracts. As a result, the entire balance of non-current liabilities, in the amount of R$8,907,733, was reclassified to current liabilities, in accordance with IAS 1 (Presentation of Financial Statements). In accordance with the aforementioned accounting standards, reclassification is required in situations in which the breach of certain contractual obligations unilateraly entitles creditors to request the prepayment of obligations in the short term. In this context, note that none of the creditors requested said prepayment of obligations and that Braskem Idesa has been settling its debt service obligations in accordance with its original maturity schedule. Furthermore, Braskem Idesa has been negotiating approval of such breaches with its creditors in order to reclassify the entire amount reclassified from current liabilities back to non-current liabilities. The following amortization schedule presents the original long-term maturities, excluding the reclassification to current liabilities arising from the aforementioned breach of contractual obligations. 2017 2016 2018 709,793 2019 748,071 736,885 2020 877,450 864,149 2021 1,002,270 986,914 2022 835,009 822,235 2023 1,105,295 1,088,155 2024 1,195,682 1,177,017 2025 1,195,096 1,176,346 2026 1,052,156 1,035,586 2027 474,438 466,270 2028 and thereafter 422,266 428,336 Total 8,907,733 9,491,686 |
Debentures
Debentures | 12 Months Ended |
Dec. 31, 2017 | |
Debentures [Abstract] | |
Debentures | 17. Debentures The balances of debentures come from the acquisition of Cetrel, acquired in October 2017 (Note 1(a.ii)). Issue date Series Maturity Annual financial charges (%) 2017 March-2013 Single March-2025 IPCA + 6% 216,968 September-2013 Single September-2025 126,5% of CDI 96,356 313,324 Current liabilities 27,183 Non-current liabilities 286,141 Total 313,324 (a) Payment schedule 2017 2019 26,629 2020 43,674 2021 49,326 2022 49,326 2023 49,326 2024 49,326 2025 18,534 Total 286,141 (b) Guarantees The Company entered into agreements for the fiduciary assignment of receivables, with the maintenance of collection accounts in order to meet the debt service equivalent for up to three months of future installments, in accordance with the respective assignment agreements. |
Changes in borrowings, debentur
Changes in borrowings, debentures and Braskem Idesa borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Changes in borrowings, debentures and Braskem Idesa borrowings [Abstract] | |
Changes in borrowings, debentures and Braskem Idesa borrowings | 18. Changes in borrowings, debentures and Braskem Idesa borrowings Balance at Addition by Interest, changes Conversion of Balance at December 31, acquisition of Payments monetary and debts of subsidiaries December 31, 2016 subsidiary Obtained Principal Interest paid foreign exchange, net abroad Transferences 2017 Borrowings Current 2,594,463 6,749 2,077,350 (8,767,003) (1,648,971) 1,459,513 8,834 5,453,846 1,184,781 Non-current 20,736,604 11,736 6,414,991 258,501 208,654 (5,453,846) 22,176,640 Total 23,331,067 18,485 8,492,341 (8,767,003) (1,648,971) 1,718,014 217,488 23,361,421 Debentures Current 27,017 (12,088) 5,307 6,947 27,183 Non-current 290,943 2,145 (6,947) 286,141 Total 317,960 (12,088) 7,452 313,324 Total borrowings and debentures Current 2,594,463 33,766 2,077,350 (8,779,091) (1,648,971) 1,464,820 8,834 5,460,793 1,211,964 Non-current 20,736,604 302,679 6,414,991 260,646 208,654 (5,460,793) 22,462,781 Total 23,331,067 336,445 8,492,341 (8,779,091) (1,648,971) 1,725,466 217,488 23,674,745 Braskem Idesa financing Current 10,437,791 187,959 (1,080,502) (505,082) 17,882 633,402 9,691,450 Total 10,437,791 187,959 (1,080,502) (505,082) 17,882 633,402 9,691,450 Total geral Current 13,032,254 33,766 2,265,309 (9,859,593) (2,154,053) 1,482,702 642,236 5,460,793 10,903,414 Non-current 20,736,604 302,679 6,414,991 260,646 208,654 (5,460,793) 22,462,781 Total 33,768,858 336,445 8,680,300 (9,859,593) (2,154,053) 1,743,348 850,890 33,366,195 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial instruments [Abstract] | |
Financial instruments | 19. Financial instruments 19.1 Fair Value (a) Fair value calculation The fair value of financial assets and liabilities is estimated as the amount for which a financial instrument could be exchanged in an arm's length transaction and not in a forced sale or settlement. The following methods and assumptions were used to estimate the fair value: (i) Held-for-trading and available-for-sale financial assets are measured in accordance with the fair value hierarchy (Level 1 and Level 2), with inputs used in the measurement processes obtained from sources that reflect the most recent observable market prices. (ii) Trade accounts receivable and trade payables correspond mostly to their respective carrying amounts due to the short-term maturity of these instruments. When purchase or sale prices include material financial charges, deferred is calculated. (iii) The fair value of borrowings is estimated by discounting future contractual cash flows at the market interest rate, which is available to Braskem in similar financial instruments. (iv) The fair value of bonds is based on prices negotiated in financial markets, plus the respective carrying amount of interests. The fair values of the remaining assets and liabilities correspond to their carrying amount. (b) Fair value hierarchy The Company adopts IFRS 7 to measure the fair value of financial instruments recorded in the balance sheet; this requires disclosure in accordance with the following fair value measurement hierarchy: Level 1 - fair value obtained through prices quoted (without adjustments) in active markets for identical assets or liabilities, such as the stock exchange; and Level 2 - fair value obtained from financial models using directly observable market data, such as discounted cash flow, when the instrument is a forward purchase/sale or a swap contract, or such as the Black-Scholes model, when the instrument has the characteristics of an option. To measure the credit risk of the parties involved in derivative instruments, Braskem uses CVA (Credit Valuation Adjustment) or DVA (Debt Valuation Adjustment) models, applied flow by flow on the mark-to-market value of each instrument. The Company adopts the ratings of the other parties for positive flows and its own rating for negative flows, both available in the market and disclosed by renowned rating agencies, as a necessary assumption to define the probability of default. 19.2 Non-derivative financial instruments and leniency agreement (Note 23.3) Fair value Book value Fair value Note Classification by category hierarchy 2017 2016 2017 2016 Cash and cash equivalents 6 Cash and banks 1,428,766 2,178,611 1,428,766 2,178,611 Financial investments in Brazil Loans and receivables 1,706,784 2,914,685 1,706,784 2,914,685 Financial investments abroad Held-for-trading Level 2 639,543 1,608,568 639,543 1,608,568 3,775,093 6,701,864 3,775,093 6,701,864 Financial investments 7 Letras financeiras do tesouro - LFT Held-for-trading Level 2 1,816,889 755,712 1,816,889 755,712 Time deposit investments Loans and receivables Level 2 440,616 434,015 440,616 434,015 Other Held-for-trading Level 2 39,739 756 39,739 756 2,297,244 1,190,483 2,297,244 1,190,483 Trade accounts receivable 8 Loans and receivables 3,318,692 1,704,373 3,318,692 1,704,373 Trade payables Other financial liabilities 5,058,796 6,746,822 5,058,796 6,746,822 Borrowings 15 Other financial liabilities Foreign currency - Bond Level 1 20,082,588 14,216,539 21,230,567 12,509,981 Foreign currency - other borrowings Level 2 2,344,649 4,159,341 2,228,608 4,020,769 Local currency Level 2 1,224,772 5,166,602 1,039,873 3,991,892 23,652,009 23,542,482 24,499,048 20,522,642 Braskem Idesa borrowings 16 Other financial liabilities Level 2 9,784,388 10,541,948 8,675,711 9,322,409 Debentures 17 Other financial liabilities Level 2 313,324 313,324 Loan ton non-controlling Other financial liabilities 1,756,600 1,620,519 1,756,600 1,620,519 Leniency agreement 23.3 2,004,590 2,853,230 2,004,590 2,853,230 Other payables (BNDESPAR) Other financial liabilities 176,846 176,846 19.3 Derivative financial instruments designated for hedge accounting 19.3.1 Changes Net Net Operation characteristics (Asset)/ (Asset)/ Fair value Principal exposure Accumulated Liability Change in Financial Liability Identification Note hierarchy Derivatives OCI (equity) 2016 fair value settlement 2017 Hedge accounting transactions 0 Dollar put and call options 19.3.1 (a.i) Level 2 (4,184) 391 (3,793) Exchange swap 19.3.1 (a.ii) Level 2 CDI Dollar+Interests 857,099 (46,820) (810,279) Interest rate swaps 0 Level 2 Libor Fixed rates 281,496 (266) 3,394 (28,919) (25,791) 281,496 852,649 (43,035) (839,198) (29,584) Derivatives operations Current assets (8,387) (3,793) Non-current assets (29,308) (32,666) Current liabilities 29,042 6,875 Non-current liabilities 861,302 852,649 (29,584) The counterparties in these contracts are constantly monitored based on the analysis of their respective ratings and Credit Default Swaps - CDS. Braskem has many bilateral risk mitigators in its derivative contracts, such as the possibility of depositing or requesting deposits of a guarantee margin from the counterparties it deems convenient. Derivative financial instruments designated for hedge accounting are presented in the balance sheet at their fair value in an asset or liability account depending on whether the fair value represents a positive or a negative balance to Braskem, respectively, and are necessarily classified as "held-for-trading". All hedge financial instruments held at December 31, 2017 were contracted on Over the Counter - OTC markets with large financial counterparties under global derivative contracts in Brazil or abroad and their fair values are classified as Level 2. Braskem's Financial Policy provides for the active management and continued protection against undesired fluctuations in currencies and rates arising from its operations and financial items, with the possibility of contracting derivative instruments (swaps, NDFs, options, etc.). The other market risks are addressed on a case-by-case basis for each transaction. In general, Braskem assesses the need for hedging in the analysis of prospective transactions and seeks to customize the hedge and keeps it in place for the same period of the hedged transaction. Braskem may elect derivatives for the application of hedge accounting in accordance with IAS 39-32 and IFRS 7. The hedge designation is not mandatory. In general, Braskem will elect to designate financial instruments as hedges when the application is expected to provide a significant improvement in the presentation of the offsetting effect on the changes in the hedged items. The effective portion of the changes in the fair value of hedge derivatives and of the exchange variation of financial liabilities designated and qualified as sales flow hedge is recognized in equity, under “Other comprehensive income”. These amounts are transferred to profit and loss for the periods in which the hedged item affects the financial results. The ineffective portion is recognized immediately in profit and loss as “Financial result.” When a hedge instrument matures or is sold or when it no longer meets the criteria for hedge accounting, it is prospectively discontinued and any cumulative gain or loss in equity remains in equity and is recognized in financial result when the hedged item or transaction affects profit and loss. If the hedged item or transaction is settled in advance, discontinued or is not expected to occur, the cumulative gain or loss in equity is immediately transferred to financial result. (a) Hedge accounting transactions (a.i) Dollar put option In September 2016, Braskem launched a recurring currency hedge program to mitigate the exposure of its cash flows to liabilities denominated in Brazilian real and not pegged to the U.S. dollar (e.g., electricity, payroll, etc.). With the sole purpose of protecting its cash flow, the program adopts two strategies using derivative instruments: (i) purchase of put options (“puts”) and (ii) purchase of put options associated with the sale of call options (“collars”). Both alternatives protect Braskem in the event of appreciation in the local currency, with the difference being that the collar strategy can also result in losses for the Company if the USD/BRL exchange rate surpasses the strike price of the call options. However, any losses always are offset by gains in competitiveness from the reduction in costs denominated in BRL when translated into USD. On December 31, 2017, Braskem held a total notional amount of put options of US$1.4 billion, with an average strike price of 2.96 R$/US$. Simultaneously, the Company also held a total notional amount of call options of US$926 million, with an average strike price of R$/US$4.32. The operations have a maximum term of 18 months. Such operations were designed for the hedge accounting of cash flows as from January 1, 2017. Dollar put options were recognized initially at fair value and measured subsequently at their fair value at the end of each period. Any gain or loss related to the effective portion of dollar options (intrinsic value) is recognized as other comprehensive income or loss under shareholders' equity. Any gain or loss related to the ineffective portion and the extrinsic value of the option are immediately recognized in the financial result. (a.ii) Exchange rate swap linked to NCEs Identification Maturity Hedge Fair value Nominal value Financial charges for year 2017 2016 Swap NCE I to III 400,000 Exchange variation + 6,15% August-2019 438,201 Swap NCE IV to VII 450,000 Exchange variation + 4,93% to 7,90% April-2019 418,898 Total 850,000 857,099 Derivatives operations Current assets (4,203) Non-Current liabilities 861,302 Total 857,099 Swap operations to offset fluctuations in the CDI overnight rate, which are designated for hedge accounting. At the end of October 2017, with the collection of new debts and in line with the Company's long-term strategy, Braskem chose to pre-pay the debt with the Caixa Econômica Federal (hedged item), as well as liquidate the derivatives that were contracted to pass the debt from BRL to USD (hedge instrument). Accordingly, the hedge accounting operation had to be discontinued in advance with the payment, in the amount of R$810,279 and the entire amount, which was recorded under Shareholders' Equity as "Other comprehensive income" ("OCI") was taken to the financial result in the amount of R$475,872. 19.4 Non-derivative financial liabilities designated to hedge accounting (a.i) Future exports in U.S. dollars On May 1, 2013, Braskem S.A. designated non-derivative financial instrument liabilities, denominated in U.S. dollars, as hedge for the flow of its highly probable future exports. Thus, the impact of exchange rates on future cash flows in dollars derived from these exports is offset by the foreign exchange variation on the designated liabilities, partly eliminating the volatility of results. The exchange rate on the date of the designation was Therefore, on December 31, 2017, exports that were designated not yet realized and not discontinued are shown below: Total nominal value US$ 2019 733,980 2020 724,000 2021 716,000 2022 719,000 2023 718,371 2024 688,854 2028 1,250,000 5,550,205 The Company considers these exports in the selected period (2018/2028) as highly probable, based on the following factors: In recent years, Braskem S.A. exported an average US$3.6 billion per year, which represents around 3 to 4 times the annual exports of the hedged exports. Hedged exports represent between 20% and 30% of the export flows planned by the Company. The exports of the Company are not sporadic or occasional, but constitute an integral part of its strategy and of the petrochemical business, in which competition is global. The following table shows the changes in financial instruments designated for this hedge in the period: US$ Hedge 2016 discontinued Designations 2017 Designated balance 5,301,099 1,000,894 1,250,000 5,550,205 On December 31, 2017, the maturities of financial liabilities designated, within the scope of the consolidated balance sheet, were as follows: Total nominal value US$ 2019 733,980 2020 724,000 2021 716,000 2022 719,000 2023 718,372 2024 688,853 2028 1,250,000 5,550,205 In order to maintain consistency between the Company results and the consolidated results, the Company selected the hedge instruments with subsidiaries abroad observing the existence of guarantees arising from their operations with third parties. As a result, non-derivative financial liabilities in which the foreign subsidiary acted as an intermediary of the Company in the operations were selected, which effectively maintained the essence of the transactions. Trade payables, especially naphtha, were also considered in the transaction. To ensure the continuity of the hedging relationship, the Company plans to refinance and/or substitute these hedge instruments to adjust them to the schedule and value of the hedged exports. The rollover or replacement of the hedge instrument are provided for in IAS 39. This explains the fact that liabilities designated for hedge are not necessarily equivalent to the exports designated in the year. Considering the cash generation in recent quarters, the Management of the Company believed it was appropriate to advance the payment of dollar-denominated obligations, including liabilities designated for this hedge. As a result of the decision, the amount of US$787,893 was discontinued prospectively. Exchange variation on the discontinued amount, which is recorded under Shareholders' Equity as “Other comprehensive income” will be taken to net financial income (expenses) as of January 2018, as the hedged exports are realized. Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value Hedge descontinued - First quarter 2018 189,325 2.0017 3.3082 247,353 Hedge descontinued - Second quarter 2018 208,405 2.0017 3.2769 265,758 Hedge descontinued - Third quarter 2018 193,190 2.0017 3.3080 252,364 Hedge descontinued - Fourth quarter 2018 196,973 2.0017 3.3080 257,306 787,893 1,022,781 The following table provides the balances of exchange variation recognized in the Company's net financial income (expenses) due to the realization of exports designated for this hedge in the 12-month period ended December 31, 2017: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value First quarter 201,277 2.0017 3.2400 249,241 Second quarter 208,135 2.0017 3.2015 249,720 Third quarter 207,273 2.0017 3.3302 275,362 Fourth quarter 213,000 2.0017 3.1684 248,507 829,685 1,022,830 The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” of this hedge are as follows: Exchange Net variation IR and CSL effect At December 31, 2016 (7,439,927) 2,529,575 (4,910,352) Exchange variation recorded in the period on OCI / IR and CSL (397,045) 134,995 (262,050) Exchange variation transferred to profit or loss / IR and CSL 1,022,830 (347,762) 675,068 At December 31, 2017 (6,814,142) 2,316,808 (4,497,334) The realizations expected for 2018 will occur through the payments of financial instruments in conformity with exports made, and the exchange variation recorded in “Other comprehensive income” will be written off to the financial results. For all quarters of the year, realizations will be realized at the discounted cash flow rates. The quarterly schedule of hedged exports in 2018 follows: Total nominal value US$ First quarter 189,325 Second quarter 208,405 Third quarter 193,190 Fourth quarter 196,973 787,893 (a.ii) Liabilities related to the Project Finance of future sales in U.S. dollar On October 1, 2014, the subsidiary Braskem Idesa designated its liabilities in the amount of R$2,878,936 related to Project Finance, denominated in U.S. dollar, as hedge instruments to protect highly probably future sales flows. Due to the disbursements by the project's financiers in 2015, Braskem Idesa designated new amounts in April and September 2015, of US$290,545 and US$23,608, respectively, for hedge accounting. Therefore, the impact of exchange variation on future flows of sales in U.S. dollar derived from these sales in dollar will be offset by the exchange variation on the designated liabilities, partially eliminating the volatility in the results of the subsidiary. The Management of Braskem Idesa believes these future sales are highly probable, based on the following: In Mexico, domestic sales can be made in U.S. dollar. In 2016, the company began to operate and sell products, including sales in U.S. dollar in the domestic and international markets. The hedged flow corresponds to less than 18% of the planned revenue flow of the project over the designated period. The current amount of sales already meets the volume of designated hedge, which confirms the highly probably nature of the designated cash flow. The financing was obtained through a Project Finance structure and will be repaid exclusively through the cash generation of the project (Note 16). Therefore, the existence of the debit is directly associated with the highly probable nature of the future sales in U.S. dollar. As of December 31, 2017, designated and unrealized sales were as follows: Nominal value US$ 2018 221,790 2019 229,270 2020 266,690 2021 303,392 2022 253,204 2023 333,093 2024 359,559 2025 357,903 2026 309,240 2027 152,103 2028 124,654 2029 31,164 2,942,062 The following table shows the changes in financial instruments designated for this hedge in the period: US$ Sales in Hedge 2016 the year discontinued 2017 Designated balance 3,113,173 (183,252) 325 2,930,246 In 2017, the maturities of designated financial liabilities were distributed as follows: Nominal value US$ 2018 221,390 2019 228,850 2020 266,187 2021 302,816 2022 252,723 2023 332,458 2024 358,873 2025 357,221 2026 308,650 2027 150,419 2028 124,347 2029 26,312 2,930,246 The following table provides the balance of exchange variation of the discontinued amount net of realization already occurred in the period ended December 31, 2017 (US$325), which is recorded in Braskem Idesa's shareholders' equity under “Other comprehensive income” and will be transferred to financial income (expenses) according to the schedule of future hedged sales as they occur: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value Hedge descontinued 11,816 13.4541 17.9915 53,614 9,013 53,614 9,013 The following table provides the balances of exchange variation recognized in Braskem Idesa's financial income (expenses) due to the realization of sales designated for this hedge in the 12-month period ended December 31, 2017: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value First quarter 29,174 13.6649 20.6059 202,497 30,917 Second quarter 47,896 13.6560 18.8998 251,157 42,992 Third quarter 52,293 13.6536 17.8492 219,401 38,919 Fourth quarter 53,889 13.6537 19.1186 294,498 50,868 183,252 967,553 163,696 The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” are as follows: Exchange Net variation IR effect At December 31, 2016 (4,182,052) 1,255,350 (2,926,702) Exchange variation recorded in the period on OCI / IR 472,717 (141,815) 330,902 Exchange variation transferred to profit or loss / IR 163,696 (49,109) 114,587 At December 31, 2017 (3,545,639) 1,064,426 (2,481,213) The tests of effectiveness of the operations were carried out as provided for in IFRS 9 and all operations were effective to reduce the dispersion of revenue coming with the designated hedge exports, when assessed in Reais. The realizations expected for 2018 will occur in accordance with the payments under the project finance, and the exchange variation recorded in “Other comprehensive income” will be written off to the financial results. Below is the quarterly schedule of hedged sales in U.S. dollars in 2018: Nominal value US$ First quarter 53,889 Second quarter 55,137 Third quarter 56,382 Fourth quarter 56,382 221,790 19.5 Credit quality of financial assets (a) Trade accounts receivable Virtually none of Braskem's clients have risk ratings assigned by credit rating agencies. For this reason, Braskem developed its own credit rating system for all accounts receivable from clients in Brazil and abroad. On December 31, 2017, the credit ratings for the domestic market were as follows: (%) 2017 2016 1 Minimum risk 18.84 8.92 2 Low risk 50.84 39.98 3 Moderate risk 13.33 30.51 4 High risk 13.40 16.48 5 Very high risk (i) 3.59 4.11 (i) Most clients in this group are inactive and the respective accounts are in the process of collection actions in the courts. Clients in this group that are still active buy from Braskem and pay in advance. Default indicators : Last 12 months Domestic market Export market December 31, 2017 0.08% 0.19% December 31, 2016 0.18% 0.04% December 31, 2015 0.39% 0.70% This calculation considers the amount of accounts receivables overdue more than 5 days for the domestic market and 30 days for the international market, divided by consolidated gross revenue in the last 12 months. (b) Other financial assets In order to determine the credit ratings of counterparties of financial assets classified under cash and cash equivalents, held for trading and borrowings and receivables, Braskem uses the risk rating of agencies Standard & Poor's, Moody's and Fitch Ratings, within the limits established in its financial policy approved by the Board of Directors. 2017 2016 Financial assets with risk assessment AAA 3,569,392 3,871,105 AA+ 27,094 241,359 AA 8,047 5,370 AA- 209,389 654,232 A+ 1,465,107 2,426,078 A 349,823 364,198 A- 209,175 BBB+ 453,367 116,987 6,082,219 7,888,504 Financial assets without risk assessment Other financial assets with no risk assessment (i) 5,882 3,843 5,882 3,843 Total 6,088,101 7,892,347 (i) Investments approved by the Management of the Company, in accordance with the financial policy. 19.6 Sensitivity analysis Financial instruments, including derivatives, may be subject to changes in their fair value as a result of the variation in commodity prices, foreign exchange rates, interest rates, shares and share indexes, price indexes and other variables. The sensitivity of the derivative and non-derivative financial instruments to these variables are presented below: (a) Selection of risks On December 31, 2017, the main risks that can affect the value of Braskem's financial instruments are: · Brazilian real/U.S. dollar exchange rate; · Mexican peso/Brazilian real exchange rate; · U.S. dollar/Euro exchange rate; · Libor floating interest rate; · Selic interest rate; · CDI interest rate; and · TJLP interest rate. For the purposes of the risk sensitivity analysis, Braskem presents the exposures to currencies as if they were independent, that is, without reflecting in the exposure to a foreign exchange rate the risks of the variation in other foreign exchange rates that could be directly influenced by it. (b) Value at risk The value at risk of the derivatives held by Braskem which is defined as the loss that could result in one month as from December 31, 2017, with a probability of 5%, and under normal market conditions, was estimated by the Company at US$9,800 for put options and call options (Note 19.3.1 (a.i)) and US$10,464 for the swap of Libor related to Braskem Idesa project. (c) Selection of scenarios (c.1) Probable scenario The Focus Market Readout published by the Central Bank of Brazil on was used to create the probable scenario for the U.S. dollar/Brazilian real exchange rate, the Selic interest rate and the CDI interest rate, based on December 29, 2017. According to the Market Readout, at the end of 2017, the U.S. dollar will appreciate by 0.97% against the year-end PTAX exchange rate on December 29, 2017, while the Selic rate will reach 6.75% p.a. The Selic rate is used as benchmark for sensitivity analysis of the CDI rate. The probable scenario for the TJLP is a decrease of 0.25% from the current rate of 6.75%, i.e., considering the same pace of decrease in the Selic basic interest rate. The Market Readout does not publish forecasts for the Libor interest rate. Therefore, to determine the probable scenario, Braskem considered a 25% and 50% increase on current market levels. (c.2) Possible and extreme adverse scenario The sensitivity values in the table below are the changes in the value of the financial instruments in each scenario. Gain (losses) Possible adverse Extreme adverse Instrument / Sensitivity Probable (25%) (50%) Brazilian real/U.S. dollar exchange rate Bonds (191,889) (4,959,133) (9,918,266) Working capital / other (12,358) (319,367) (638,734) Export credit notes (6,577) (169,974) (339,948) Braskem Idesa borrowings (93,750) (2,422,863) (4,845,725) Export prepayments (3,209) (82,925) (165,850) Dollar put and call options (4,117) (176,990) (844,927) Financial investments abroad 18,405 475,644 951,287 Selic interest rate BNDES 277 (1,999) (4,101) Libor floating interest rate Working capital / structured operations (3,265) (16,325) (32,650) Export prepayments (1,643) (8,216) (16,433) Swaps 12,615 38,103 96,667 Braskem Idesa borrowings (76,187) (380,933) (761,865) CDI interest rate Swaps NCE 12,208 (27,340) (61,117) Debentures 25,657 (277) (15,308) Financial investments in local currency (9,138) 63,988 128,016 IPCA interest rate Debentures (33,625) (20,015) (40,873) TJLP interest rate Other government agents 14 (95) (192) BNDES 210 (1,443) (2,929) Brazilian real/Euro exchange rate Working capital / other 2,126 (13,896) (27,792) |
Taxes payable
Taxes payable | 12 Months Ended |
Dec. 31, 2017 | |
Taxes payable [Abstract] | |
Taxes payable | 20. Taxes payable 2017 2016 Brazil IPI 60,917 59,323 IR and CSL 405,567 222,680 ICMS 257,720 182,034 PIS and COFINS 82,140 59,105 Other 52,926 62,743 Other countries IR 66,059 46,670 Value-added tax 22,242 15,622 Total 947,571 648,177 Current liabilities 894,769 624,080 Non-current liabilities 52,802 24,097 Total 947,571 648,177 (a) Special Tax Compliance Program (“PERT”) In October 2017, Braskem adhered to PERT, a federal government tax installment/amnesty program implemented through Decree MP 783, of May 31, 2017, indicating the payment of tax and social security liabilities in the aggregate amount of R$111,735. The amount was reduced by R$12,895 due to discounts granted under the program. This amount will be settled by (i) R$67,953 were offset using tax credits from income tax losses and social contribution tax loss carryforwards, (ii) R$21,854 paid in cash, in October 2017, and (iii) R$9,033 were paid in cash, in January 2018. |
Income tax ("IR") and social co
Income tax ("IR") and social contribution ("CSL") | 12 Months Ended |
Dec. 31, 2017 | |
Income tax ("IR") and social contribution ("CSL") [Abstract] | |
Income tax ("IR") and social contribution ("CSL") | 21. Income tax (“IR”) and social contribution (“CSL”) 21.1 Reconciliation of the effects of income tax and social contribution on profit and loss 2017 2016 2015 Adjusted Income (loss) before IR and CSL and after discontinued operations 5,264,577 (140,010) 4,414,161 IR and CSL at the rate of 34% (1,789,956) 47,603 (1,500,815) Permanent adjustments to the IR and CSL calculation basis IR and CSL on equity in results of investees 2,201 10,227 755 IR and CSL accrued in previous years (46,460) (7,686) Deferred tax losses and negative base 39,092 (10,253) Tax benefits (Sudene and PAT) 87,186 Difference of rate applicable to each country (i) 250,130 81,638 Fine in leniency agreement (117,140) (692,299) Other permanent adjustments 170,805 (16,755) (142,355) Effect of IR and CSL on results of operations (1,357,682) (616,046) (1,660,354) Breakdown of IR and CSL: Current IR and CSL (869,493) (898,845) (391,968) Deferred IR and CSL (488,189) 282,799 (1,268,386) Total (1,357,682) (616,046) (1,660,354) (i) Includes the impact from the difference between IR/CSL tax rate in Brazil (34%) used for the preparation of this note and the tax rates in countries where the subsidiaries abroad are located, as follows: Official rate - % Headquarters (Country) 2017 Braskem Alemanha Germany 31.18 Braskem America e Braskem America Finance (i) USA 35.00 Braskem Argentina Argentina 35.00 Braskem Austria e Braskem Austria Finance Austria 25.00 Braskem Petroquímica Chile Chile 25.50 Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc Netherlands 25.00 Braskem Idesa, Braskem Idesa Serviços, Braskem México Braskem México Serviços and Braskem México Proyectos Mexico 30.00 (i) In 2018 the rate will change from 35% to 21%. The effective rate is 25.8% (440.0% in 2016). This effective rate for the fiscal year ended December 31, 2016 is related to the provision accrued for payment of the leniency agreement and consequent adjustments to the bases of IR and CSL. Excluding this provision from the calculation, the effective rate would be 36.90%. 21.2 Deferred income tax and social contribution The income tax (“IR”) and social contribution (“CSL”) recorded in the year are determined on the current and deferred tax basis. These taxes are calculated on the basis of the tax laws enacted at the balance sheet date in the countries where the Company operates and are recognized in the statement of operations, except to the extent they relate to items directly recorded in equity. (a) Breakdown of deferred IR and CSL Assets As of December 31, 2016 Impact on the P&L Impact on the equity Cetrel consolidated As of December 31, 2017 Tax losses (IR) and negative base (CSL) 2,420,376 (590,037) 48,470 1,878,809 Goodwill amortized 4,624 (708) 55,419 59,335 Exchange variations 464,947 (76,654) 388,293 Temporary adjustments 717,868 (564,239) (7,946) 9,857 155,540 Business combination 191,250 (7,465) 183,785 3,799,065 (1,239,103) (7,946) 113,746 2,665,762 Liabilities Amortization of goodwill based on future profitability 767,277 (54,404) 712,873 Tax depreciation 867,922 92,280 960,202 Temporary adjustments 316,991 (85,169) 231,822 Business combination 198,381 (197,079) 8,362 9,664 Additional indexation PP&E 118,202 (51,130) 67,072 Hedge accounting (606,877) 606,877 Deferred on health plans 15,269 (15,269) Amortization of fair value adjustments on 263,808 255,815 519,623 Other 123,892 (119,619) 4,273 2,656,473 (750,914) 591,608 8,362 2,505,529 Net 1,142,592 (488,189) (599,554) 105,384 160,233 Presentation in the balance sheet: Non-current assets 1,653,115 1,165,726 (-) Non-current liabilities 510,523 1,005,493 (b) Offset for the purpose of presentation in the balance sheet (consolidated) 2017 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 1,491,423 (1,491,423) Braskem Argentina Argentina 3,398 3,398 Braskem Alemanha Germany 19,353 19,353 Braskem Chile Chile 251 (251) Braskem Idesa Mexico 1,036,257 1,036,257 Braskem México Serviços Mexico 1,334 1,334 Cetrel Brazil 29,268 (7,454) 21,814 DAC Brazil 84,478 (908) 83,570 2,665,762 (1,500,036) 1,165,726 Liabilities Braskem S.A Brazil 2,272,775 (1,491,423) 781,352 Braskem America USA 223,635 223,635 Braskem Chile Chile 757 (251) 506 Cetrel Brazil 7,454 (7,454) DAC Brazil 908 (908) 2,505,529 (1,500,036) 1,005,493 2016 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 2,106,303 (2,063,844) 42,459 Braskem Argentina Argentina 6,745 6,745 Braskem Alemanha Germany 36,932 36,932 Braskem Chile Chile 135 (135) Braskem Idesa Mexico 1,463,502 1,463,502 Braskem México Serviços Mexico 1,994 1,994 Braskem Petroquímica Brazil 81,971 (81,971) Braskem Petroquímica and Braskem Qpar - business combination effects Brazil 101,483 101,483 3,799,065 (2,145,950) 1,653,115 Liabilities Braskem S.A Brazil 2,063,844 (2,063,844) Braskem America USA 305,289 305,289 Braskem Chile Chile 1,404 (135) 1,269 Braskem Petroquímica Brazil 162,241 (81,971) 80,270 Braskem Petroquímica - efeitos da combinação de negócios Brazil 123,695 123,695 2,656,473 (2,145,950) 510,523 (c) Realization of deferred income tax and social contribution Realization Balance at 2023 Assets Note December 31, 2017 2018 2019 2020 2021 2022 thereafter Tax losses (IR) and negative base (CSL) (i) 1,878,809 18,357 95,276 115,361 287,416 471,379 891,020 Goodwill amortized 59,335 20,053 17,604 15,156 4,062 364 2,096 Exchange variations (ii) 388,293 32,663 19,598 336,032 Temporary adjustments (iii) 155,540 80,548 (51,918) 29,931 12,294 11,762 72,923 Business combination (iv) 183,785 38,775 38,775 38,775 33,731 33,729 Total assets 2,665,762 190,396 99,737 218,821 337,503 517,234 1,302,071 Liabilities Amortization of goodwill based on future profitability (v) 712,873 712,873 Tax depreciation (vi) 960,202 960,202 Temporary differences (vii) 231,822 78,653 23,452 29,227 12,005 11,485 77,000 Business combination (viii) 9,664 34 34 34 34 34 9,494 Additional indexation PP&E (ix) 67,072 5,366 5,366 5,366 5,366 5,366 40,242 Amortization of fair value adjustments on 519,623 41,570 41,570 41,570 41,570 41,570 311,773 Other 4,273 4,273 Total liabilities 2,505,529 125,623 70,422 76,197 58,975 58,455 2,115,857 Net 160,233 64,773 29,315 142,624 278,528 458,779 (813,786) Basis for constitution and realization: (i) In Brazil and Germany, the use of tax losses has limits in relation to the amount of taxable income for the year. In Brazil, this limit is 30%, whereas in Germany is 60%. (ii) In Brazil, the Company opted to tax exchange variation of assets and liabilities denominated in foreign currency under the cash method. Thus, this variation will be realized as assets and liabilities are received/paid. For accounting purposes, exchange variation is recognized under the accrual basis, which results in deferred IR and CSL. (iii) Accounting expenses not yet deductible for calculating income tax and social contribution, whose recognition for tax purposes occurs in subsequent periods. (iv) Refers to: tax-related goodwill, and contingencies recognized from business combinations. Tax realization of goodwill will occur upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. (v) Goodwill for the future profitability of the merged companies not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or any other reason. (vi) For calculation of IR and CSL, assets are depreciated at rates higher than those used for accounting purposes. As tax depreciation is exhausted, these deferred IR and CSL start to be realized. (vii) Revenues whose taxation will occur in subsequent periods. (viii) Fair value adjustments on property, plant and equipment and intangible assets identified in business combinations, whose tax realization is based on the depreciation and amortization of these assets. (ix) Additional adjustment of property, plant and equipment, whose tax realization is based on the depreciation of assets. Considering the limitations to the use of tax losses in Brazil and Germany and the known impacts on the position of deferred taxes, the Company estimates that it will be necessary to generate taxable income of around R$665,076 in the following years to realize its deferred tax assets registered on December 31, 2017. Annually, the Company revises its projection of taxable income based on its Business Plan (Note 3.1). If this projection indicates that the taxable income will not be sufficient to absorb the deferred taxes, the amount corresponding to portion of the asset that will not be recovered is written off. |
Sundry provisions
Sundry provisions | 12 Months Ended |
Dec. 31, 2017 | |
Sundry provisions [Abstract] | |
Sundry provisions | 22. Sundry provisions Note 2017 2016 Provision for customers rebates (a) 87,913 41,475 Provision for recovery of environmental damages (b) 300,249 254,040 Other 25,510 23,621 Total 413,672 319,136 Current liabilities 178,676 112,891 Non-current liabilities 234,996 206,245 Total 413,672 319,136 (a) Client discounts, rebates Some sales agreements of Braskem provide for a rebate, in products, should some sales volumes be achieved within the year, six-month period or three-month period, depending on the agreement. The bonus is recognized monthly in a provision, assuming that the minimum contractual amount will be achieved. As it is recognized based on contracts, the provision is not subject to significant uncertainties with respect to their amount or settlement. (b) Recovery of environmental damages Braskem has a provision for future expenses for the recovery of environmental damages in some of its industrial plants. The amount provisioned corresponds to the best and most conservative estimate of the expenses required to repair the damages. (c) Changes in provisions Recovery of environmental Bonus damage Other Total December 31, 2016 41,475 254,040 23,621 319,136 Additions, inflation adjustments and exchange variation, net 116,085 102,480 5,744 224,309 Write-offs through usage and payments (69,647) (56,271) (3,855) (129,773) December 31, 2017 87,913 300,249 25,510 413,672 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Contingencies [Abstract] | |
Contingencies | 23. Contingencies Braskem is a defendant in lawsuits and administrative proceedings arising from the normal course of its business. These claims are of a tax, labor and social security, civil and corporate nature. Proceedings assessed as having a probable chance of loss are provisioned for, as described in Note 3.5. Proceedings assessed as having a possible chance of loss are not provisioned for, except in relevant cases involving business combinations. Any changes in the court's understanding of the position could cause future impacts on the financial statements of the Company due to such proceedings. 23.1 Claims with probable chance of loss and claims arising from business combinations with possible loss 2017 2016 Labor claims (a) 255,938 207,827 Tax claims (b) Normal operations IR and CSL 17,313 11,462 PIS and COFINS (ii) 155,681 204,516 ICMS (iv) 76,342 39,604 Other tax claims 8,985 19,586 258,321 275,168 Business Combination IR and CSL 50,051 45,656 PIS and COFINS (iii) 56,135 51,052 ICMS - interstate purchases (i) 263,538 239,450 369,724 336,158 Corporate claims (c) 135,779 105,175 Civil claims and other 72,883 60,909 1,092,645 985,237 (a) Labor claims The provision on December 31, 2017 is related to 599 labor claims, including occupational health and security cases (632 in 2016). The Company's legal advisors estimate that the term for the termination of these types of claims in Brazil exceeds five years. The estimates related to the outcome of proceedings and the possibility of future disbursement may change in view of new decisions in higher courts. (b) Tax claims On December 31, 2017, the main claims are the following: (i) ICMS - interstate purchases In 2009, the merged company Braskem Qpar was assessed by the Finance Department of the State of São Paulo for the payment, at the administrative level, of ICMS in view of allegedly committing the following violations: · Undue use of ICMS tax credits (i) in the amount of R$53,478, in the periods from February 2004 to August 2005, November 2005 to February 2006, and September 2006 to January 2008, due to the recording of credits indicated on the invoices for the sale of “acrylonitrile,” issued by Acrinor Acrilonitrila do Nordeste S/A; (ii) in the amount of R$1,581, in the period from December 2004 to August 2005, arising from the undue recording of credits on invoices for the sale of methyl acrylate, issued by Proquigel Química S/A; and (iii) in the amount of R$3,105, in the period from August 2004 to November 2005, arising from the undue recording of credits in invoices for the sale of methyl methacrylate, issued by Proquigel Química S/A, since the products were to be exported, and therefore were exempt from payment of ICMS tax; · The fine for the abovementioned tax offense corresponds to 100% of the principal value recorded, as per Article 527, item II, sub-item “j” jointly with paragraphs 1 and 10 of RICMS/SP; · Fine of 30% on the amount of R$480,389, which corresponds to the sum of the amounts declared in the tax documents for which the shipping of goods was not confirmed by tax authorities, based on the provisions of Article 527, item IV, sub-item “b” jointly with paragraphs 1 and 10 of RICMS/SP; and · Fine due to lack of presentation of tax documents requested, as per Article 527, item IV, sub-item “j” jointly with paragraphs 8 and 10 of RICMS/SP. Discussions in the administrative sphere were ended in 2016, with the Company proposing lawsuits. Due to the favorable injunctions granted to the Company, (i) in one of the claims, the São Paulo Treasury Department rectified the amount of the debt to apply interest for late payment and inflation adjustment limited to the SELIC basic interest rate, which resulted in the debit being reduced by 20%, and (ii) in the other claim, the tax liability was suspended. On December 31, 2017, the balance of these provisions was R$263,538. The Company's external advisors have assessed that the disputes related to the highlighted matters have a probable likelihood of loss and estimate the conclusion of administrative proceedings in 2020. A performance bond was offered as a guarantee for these claims. (ii) Non-cumulative PIS and COFINS taxes The Company is charged amounts arising from the compensation of Non-Cumulative PIS and COFINS tax credits that were not approved by the Federal Revenue Service in Offsetting Statements (“DCOMPs”), with credits in amounts that exceeded those declared in the respective Statement of Calculation of Social Contributions (“DACONs”). In October 2017, through the federal tax amnesty program (PERT), the items related to non-acceptance of the credits were settled, due to the following reasons: (i) differences between the amounts reported in the DACONs and those in the electronic files of tax invoices; (ii) amounts not recorded in the interim balance sheets, acquisitions not taxed for contributions, recording of a credit on a portion of IPI, failure to submit tax documents; and (iii) nonpayment of amounts stated as due in tax documents. Said amounts were provisioned for. On December 31, 2017, the balance of this provision was R$153,639. The Company's external legal advisors, after considering the precedents on the matters at the Administrative Council of Tax Appeals (“CARF”), assessed that the disputes related to such matters have a probable likelihood of loss and estimated the conclusion of administrative procedures in 2020. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (iii) PIS and COFINS taxes The Company is assessed for the payment of these taxes in many claims, such as: · Insufficient payment of COFINS for the period from March 1999 to December 2000, from February 2001 to March 2002, from May to July 2002 and September 2002 due to alleged calculation errors, and non-compliance with the widening the tax calculation base and increasing the contribution rate envisaged in Law 9,718/98; · Offset of the COFINS dues relating to September and October 1999 using the credit resulting from the addition of 1% to the COFINS rate; · Rejection of the offset of PIS and COFINS dues relating to the period from February to April 2002 using the PIS credits under Decree-Laws 2,445 and 2,449, calculated between June 1990 and October 1995, under the argument that the time period for using said credits had expired; and · Alleged non-taxation of revenue from foreign exchange variations, determined as a result of successive reductions in the capital of the associated company. On December 31, 2017, the balance of this provision was R$56,135. The Company's external advisors assessed that the disputes related to the highlighted matters have a probable likelihood of loss and estimated the conclusion of administrative proceedings in 2020. Guarantees were offered for these claims in the form of bank guarantee and finished products manufactured by the subsidiary Braskem Petroquímica, which, together, cover the amount of court claims. The Company's management estimates that these cases should be terminated by 2020. (iv) ICMS - Decree 38,394/2000 In 2017, the Company received a tax deficiency notice from the Tax Authority of the State of Alagoas, for the administrative collection of ICMS tax that allegedly was paid below the amount due, in the period from August 2012 to April 2016, in accordance with Article 9 of Decree 38.394/2000. On December 31, 2017, the balance of this provision was R$43,774. The Company's external legal advisors, considering the behavior of the administrative bodies judging the case, assessed that the disputes related to the highlighted matters have a probable likelihood of loss and estimated the conclusion of administrative proceedings in 2021. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (c) Corporate claims On December 31, 2017, the main claim is related to an ordinary collection claim combined with a request for damages for losses, requesting the payment of dividends and a share bonus arising from the class "A" preferred shares of the dissolved company Salgema Indústrias Químicas S.A . Once the claim was granted, the amount effectively owed by Braskem began to be calculated. During this phase, the judge recognized that dividends and bonus related to fiscal years prior to 1987 had become time-barred and were no longer owed by Braskem. However, the Alagoas State Court of Appeals reviewed the decision and considered that amounts prior to such period also were owed. Against the decision, Braskem filed a Special Appeal with the Superior Court of Justice (STJ), which was partially granted, so that the possibility that the statute of limitation will be recognized in a procedure of liquidation of the award will be submitted to the STJ. During fiscal year 2017, Braskem recognized a provision of R$56,171 and there is no guarantee related to this claim. (d) Changes of claims with probable chance of loss Corporate Civil claism Labor claims Tax claims claims and other Total December 31, 2016 207,827 611,326 105,175 60,909 985,237 Additions, inflation adjustments and exchange variation, net 164,962 177,314 169,683 20,257 532,216 Write-offs through usage and payments (115,497) (130,596) (170,432) (8,283) (424,808) December 31, 2017 257,292 658,044 104,426 72,883 1,092,645 23.2 Claims with possible chance of loss The balance of contingent liabilities as of December 31, 2017 and 2016 is as follows: Consolidated 2017 2016 Tax claims 6,048,462 6,307,214 Labor claims 812,400 580,623 Civil claims 693,188 494,965 Social security tax claims 91,824 122,941 Other lawsuits 285,944 43,356 Total 7,931,818 7,549,099 (a) Civil (i) Excess weight Public-Interest Civil Action filed by the Federal Prosecution Office in Brasilia, with the objective of holding the company liable for damages caused to federal roads by trucks carrying excess weight. The action claims damages to the country for material damages and collective pain and suffering, in the amount of R$61 million, on December 31, 2017. The action was denied in the lower court. The case was classified as having a possible chance of loss, in light of the precedents in the Regional Federal Appellate Court of the 1 st (ii) Caustic soda transportation The Company is the defendant in civil lawsuits filed by the owner of a former distributor of caustic soda and by the shipping company that provided services to this former distributor, which, at December 31, 2017, totaled R$86 million. The claimants seek indemnity for damages related to the alleged non-performance of the distribution agreement by the Company. Management's evaluation, supported by the opinion of its external legal advisors who are responsible for the cases, is that the lawsuits will possibly be dismissed within a period of 8 years. No judicial deposit or other form of guarantee was accrued for these lawsuits. (iii) Resale of solvents In January 2017, the Company became defendant in a civil lawsuit filed by former reseller of solvents, claiming alleged breach of a tacit distribution agreement. On December 31, 2017, the damages claimed in the lawsuit amounted to R$164 million. Based on the opinion of external legal counsel accompanying the case, the Management believes that the lawsuit has a possible risk of loss within an eight-year period. No judicial deposit or other form of security was made for these suits. (b) Tax (i) PIS and COFINS: taxation of tax losses and reductions in debits in connection with the installment payment program under MP 470/09 The Company was assessed for not recording as taxable the amounts of the credits from tax losses and social contribution tax loss carryforwards used to settle tax debits paid in installments under Provisional Presidential Decree 470/09. In the specific case of PIS and COFINS taxes, the assessment also includes the reductions applied to fines and interest arising from the adoption of the installment payment plan. Said tax credits and reductions of debits were not taxed, given the understanding of the Company that they did not represent taxable income. On December 31, 2017, the inflation-adjusted amount of taxes recorded and tax effects of disallowances of income tax losses and social contribution tax loss carryforwards through said tax deficiency notices is R$842 million. The Company's external legal advisors estimate that the administrative proceeding should be concluded by 2019. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (ii) IR and CSL - Charges with goodwill amortization The Company was served by the Federal Revenue Service for deducting amortization charges, from 2007 to 2013, relating to goodwill originated from acquisitions of shareholding interests in 2002. In that year, several business groups divested their petrochemical assets, which were consolidated to enable the consequent foundation of Braskem. On December 31, 2017, the restated value of the taxes recorded in said tax deficiency notices amounted to R$1.2 billion. The assessment of loss in these claims is based on the following: (i) the equity interests were acquired with effective payment, business purpose and the participation of independent parties; and (ii) the real economic nature of the transactions that resulted in the recording of interest and exchange variation expenses. The Company's external legal advisors estimate that the administrative proceeding should be concluded by 2022. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed. (iii) Non-cumulative PIS and COFINS taxes The Company received a deficiency notice from the Brazilian Federal Revenue Service due to the use of non-cumulative PIS and COFINS tax credits in the acquisition of certain goods and services consumed in its production process. The matters whose chance of loss is deemed as possible are mainly related to the following: (i) effluent treatment services; (ii) charges on transmission of electricity; (iii) freight for storage of finished products; (iv) extemporaneous credits from acquisitions of property, plant and equipment; and (v) fixed asset. These matters have already been contested at the administrative level and comprise the period from 2006 to 2014. On December 31, 2017, the restated value of these notices was R$1.2 billion. The Company's external legal advisors estimate that: (i) the administrative proceedings should be concluded by 2022; and (ii) in the event of an adverse ruling for the Company, which is not expected, these contingencies could be settled for up to 50% of the amounts in dispute. These estimates are based on the probability of loss of the Company's defense thesis, based on previous administrative and court precedents. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (iv) Income Tax (IR) and Social Contribution (CSL) - Unlimited offsetting The Company received a tax deficiency notice claiming , in December, 2009, December, 2013 and in March, 2017 by the methodology used to offset tax losses and tax loss carryforwards that failed to observe the limit of 30% of the Taxable Profit and Social Contribution calculation base when offsetting such liabilities with Income Tax and Social Contribution liabilities in merger operations, respectively, in November, 2007, September 2008 and August 2013. On December 31, 2017, the restated value of the taxes recorded amounted to R$348 million. The Company's external legal advisors estimate that the administrative proceedings should be concluded by 2020 and for the year 2027 for the only one that is in judicial discussion. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level and the only one being disputed in court has had its payment suspended by a preliminary injunction. (v) ICMS The Company is involved in many ICMS collection claims drawn up in the States of São Paulo, Rio de Janeiro, Rio Grande do Sul, Bahia and Alagoas. On December 31, 2017, the adjusted amounts of these claims total R$470 million and the claims include the following matters: · ICMS credit on the acquisition of assets that are considered by the Revenue Services as being of use and consumption. The Revenue Service understands that the asset has to be a physically integral part of the final product to give rise to a credit. Most of the inputs questioned do not physically compose the final product. However, the Judicial branch has a precedent that says that the input must be an integral part of the product or be consumed in the production process. · ICMS credit arising from the acquisition of assets to be used in property, plant and equipment, which is considered by the Revenue Services as not being related to the production activity, such as laboratory equipment, material for the construction of warehouses, security equipment, etc. · internal transfer of finished products for an amount lower than the production cost; · omission of the entry or shipment of goods based on physical count of inventories; · lack of evidence that the Company exported goods so that the shipment of the goods is presumably taxed for the domestic market; · non-payment of ICMS on the sale of products subject to tax substitution and credit from acquisitions of products subject to tax substitution; · fines for the failure to register invoices; · nonpayment of ICMS tax on charges related to the use of the electricity transmission system in operations conducted in the Free Market (ACL) of the Electric Power Trading Chamber (CCEE).); and · the use of a calculation base of ICMS less than that provided for the legislation in internal transfers of goods inside Alagoas State territory of Dichlorethane related to the period from January 2013 to May 2016, which is not subjected to tax deferment. The Company's legal advisors estimate that: (i) these judicial proceedings are expected to be terminated in 2023, and (ii) in the event of an unfavorable decision to the Company, which is not expected, these contingencies could be settled for up to 50% of the amounts in dispute. This estimate is based on the probability of loss of the Company's defense theory taking into consideration the case law at the administrative and judicial levels. The Company offered assets for pledge in the amount of R$60 million, supporting exclusively the amounts involved in the lawsuits. (vi) IOF The Company is a party to claims for the collection of IOF tax debits in administrative proceedings and lawsuits, which claim: (i) non-payment of IOF on operations relating to Advances for Future Capital Increase (AFAC) and checking accounts conducted by the merged companies Quattor Participações S.A. and Quattor Química S.A., which were considered loans by tax authorities; and (ii) requirement to pay IOF/credit on international fund transfers between the Company and CPN Incorporated through a checking account contract and single cash management related to the period from May 2002 to April 2004. The current value of these notices on December 31, 2017, was R$175 million. The Company's external legal advisors estimate that the claims in the judicial sphere will be concluded by 2022. The Company offered a guarantee of R$61 million, which supports the amount involved exclusively in the claims. (vii) PIS and COFINS sundry The Company is involved in collection actions related to PIS and COFINS assessments in the administrative and judicial courts, which discuss the alleged undue offsetting of credits arising from other administrative proceedings and lawsuits, including: (i) Income Tax prepayments; (ii) FINSOCIAL; (iii) tax on net income (ILL); (iv) PIS-Decrees; and (v) the COFINS tax arising from the undue payment or payment in excess. On December 31, 2017, the adjusted amounts involved of these assessments total R$134 million. The Company's external legal advisors estimate that: (i) these judicial proceedings are expected to be terminated in 2022; and (ii) in the event of an unfavorable decision to the Company, which is not expected, these contingencies could be settled for up to 50% of the amounts in dispute. This estimate is based on the probability of loss of the Company's defense theory taking into consideration the case law at the administrative and judicial levels. The Company offered assets in guarantee, in the amount of R$134 million, that cover the entire amount of the claims. (viii) IRRF, IR and CSL - Commission expenses In December, 2017, the Company received a tax deficiency notice from the Federal Revenue Service arising from: (i) the disallowance of commission expenses paid by Braskem S/A in 2011; (ii) the disallowance of commission expenses paid by Braskem Inc. in 2013 and 2014; (iii) lack of payment of withholding income tax (IRRF) on the payments referred to in the previous item; and (iv) the disallowance of advertising expenses incurred in 2013. On December 31, 2017, the restated amount of taxes and tax effects from disallowances of income tax losses and social contribution tax loss carryforwards through said tax deficiency notice is R$116 million. The assessment of success in this claim is based on the following: (i) the expenses incurred in 2011 already are subject to the statute of limitations. Furthermore, the tax credit recognized by the Tax Authority considered the sum of the disallowances disputed in other administrative proceedings that are pending a final decision, which do not belong in the claim in question; (ii) the expenses incurred by Braskem INC already were paid by the Company itself, which led only to the reduction of its tax loss backlog, without the need to pay additional taxes; (iii) the IRRF claimed by the Tax Authority aims to reach a taxpayer located abroad, which as such is not subject to Brazilian tax law; and (iv) the disallowed advertising expenses are related to the Company's business activities. The Company's external legal advisors estimate that the administrative proceeding should be concluded in 2022. There are no judicial deposits or any other type of guarantee for this procedure, since it is still being discussed at the administrative level. (ix) IRPJ and CSLL - Exchange variation on naphtha imports In December 2017, the Company received a tax deficiency notice related to the disallowance of exchange variation expenses between the due date of commercial invoices and the effective payment of obligations related to naphtha imports. The Company disallowed expenses in calendar year 2012, since they were considered unnecessary, which caused adjustments in the tax loss and in social contribution tax loss carryforwards. On December 31, 2017, the restated value of this deficiency notice amounted to R$104 million. The Company's external legal advisors estimate that the administrative proceeding should be concluded in 2022. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (x) Isolated fine - failure to ratify DCOMPS In December 2016, the Company was notified of isolated fines corresponding to 50% of non-cumulative COFINS tax credits - Exports, which were offset with federal taxes and not approved by the Federal Revenue Service. The matter is assessed as having a possible chance of loss due to favorable court precedents on the matter. On December 31, 2017, the restated value of these deficiency notices amounted to R$95 million. The Company's external legal counsels estimate that the conclusion in the administrative level will occur in 2020. No deposit or other form of security was accrued for most of these claims, as they are still being discussed administratively. (c) Corporate The Company currently is subject to the liquidation of an award related to an lawsuit filed in 1988, which sentenced Polialden Petroquímica S.A., merged into Braskem, to pay its non-controlling preferred shareholders the distribution of the remaining profits of the company. The purpose of the liquidation is to determine the value of the award calculated in accordance with the sentence, which will occur through an arbitration procedure, as determined by the court, and was appealed against by the judgment winner, which is pending trial. The procedure is awaiting the beginning of the expert analysis. Based on the understanding of the Company's external legal advisors, as of December 31, 2017, the registered amount is R$13 million while the possible likelihood of loss is R$161 million. (d) Other lawsuits (i) Social Security Contributions - Withholding of 11% The Company was assessed by the Federal Revenue Service for allegedly withholding social security at the rate of 11% on the gross amount of invoices, bills or trade notes related to services executed through assigned labor, in the period from February 1999 to June 2002, amounting to R$51 million, on December 31, 2017. The Company's legal advisors, in view of prior decisions by the Administrative Council of Tax Appeals (CARF) and the evidence provided by the Company, assess as possible the chances of loss at the administrative level. The conclusion is supported, among other things, by the following: (i) the time-barring of a portion of the debits; (ii) the mismatch between the service provided and the tax substitution system under Article 31 of Federal Law 8,212/1991; (iii) the lack of the requirements to characterize assignment of labor, and other matters that would have to be evidenced through a tax diligence. The Company's external legal advisors estimate that the administrative proceeding should be concluded in 2019. There are no deposits or other forms of guarantees for the processes under discussion in the administrative proceedings and the Company offered a guarantee in the form of a performance bond in the amount of R$3.6 million supporting exclusively the amount involved in the lawsuit. 23.3 Global Settlement with authorities (a) Global Settlement with authorities In the context of the allegations of undue payments in connection with Operation Car Wash in Brazil, we have engaged experts in internal investigations to conduct an independent investigation into such allegations (“Investigation”) and report their findings. The Company has cooperated and continues to cooperate with authorities in various jurisdictions, including the U.S. Department of Justice (DoJ), the U.S. Securities and Exchange Commission (SEC), the Federal Prosecution Office of Brazil (MPF) and the Office of the Attorney General in Switzerland (OAG). In December, 2016, the Company entered into a Leniency Agreement with the Federal Prosecution Office (“MPF Agreement”) and with the authorities in the United States and Switzerland (“Global Settlement”), in the approximate amount of US$957 million (approximately R$3.1 billion at the time), which were approved as follows: 1. In Brazil, the Agreement was approved by the 5 th th 2. The agreement with the U.S. Department of Justice (“DoJ”) was confirmed by a U.S. court ruling on January 26, 2017. 3. The agreement with the Securities and Exchange Commission (“SEC”) was confirmed on February 28, 2017. 4. The agreement with Swiss authorities did not depend on authorization to produce its effects. On December 21, 2016, the OAG concluded its investigations and issued an order to close the case based on the Company's collaboration. The MPF agreed to allocate most of the amounts received under the MPF Agreement to reparation of the victims of the wrongdoings, including other authorities and government agencies, and to coordinate with these third parties with which Braskem can begin negotiations related to the facts described in the Global Settlement, with the goal of avoiding duplicate payment of reparations. In this respect, as per the notice to the market dated July 10, 2018 and the material fact notice dated May 27, 2019, the Company engaged in a cooperation and negotiation process with the Ministry of Transparency, the Office of the Federal Controller General (“CGU”) and the Office of the General Counsel for the Federal Government (“AGU”), which culminated in the signing of a leniency agreement with said authorities on May 31, 2019 (“CGU/AGU Agreement”). The CGU/AGU Agreement addresses the same facts that are the subject of the Global Settlement entered into in December 2016 and provides for an additional disbursement of approximately R$410 million (net effect of present value recorded at December 31, 2017 is R$ 375 million) due to the calculations and parameters adopted by CGU/AGU. In response to a request by the Company and the MPF, the Federal Courts ratified the allocation of funds under the MPF Agreement to the payment of the CGU/AGU Agreement, with the outstanding installments restated by the variation of the SELIC basic interest rate as of the execution of the CGU/AGU Agreement. The additional disbursement of approximately R$410 million will be paid in two annual installments at the end of the payment schedule of the MPF Agreement, in 2024 and 2025. The CGU/AGU Agreement jointly with the Global Settlement are referred to as the “Agreements.” Until December 31, 2017 of the aggregate amount of the Global Settlement, the Company already has paid approximately US$418 million (R$1.4 billion), as follows: 1. US$94,894 (R$296,591) to the DoJ, paid on February 8, 2017; 2. US$65,000 (R$206,460) to the SEC, paid on April 27, 2017; 3. CHF30,240 (R$104,307) to the Swiss Office of the Attorney General, paid on June 27, 2017; 4. R$736,445 to the MPF, paid on July 6, 2017. On December 31, 2017 the amount to be paid was approximately R$2.0 billion, adjusted by present value. Subsequently to December 31, 2017 the Company has already paid the following amounts: R$267,985 to the MPF, related to the first of six annual installments due by 2023, paid on January 30, 2018; CHF16,065 (R$62,021) to the Swiss Office of the Attorney General, related to the first of four annual installments due by 2021, paid on June 28, 2018; R$278,034 to the MPF, related to the second of six annual installments due by 2023, paid on January 30, 2019; and CHF16,065 (R$58,034) to the Swiss Office of the Attorney General, related to the second of four annual installments due by 2021, paid on June 27, 2019. The outstanding amount on the date of issuance of these financial statements, of approximately R$1.6 billion, will be paid as follows: 1. CHF32,130 to the Swiss Office of the Attorney General, in two annual installments of CHF16,065 due on June 30 of each year as from 2020; 2. Approximately R$1.1 billion as a result of the MPF Agreement and the CGU/AGU Agreement in four equal, annual and successive installments adjusted by the SELIC, due on January 30 of each year as from 2020. To guarantee payment of the installments coming due, Braskem gave as collateral assets from its property, plant and equipment corresponding to one annual installment; 3. R$409,876 as a result of the CGU/AGU Agreements, adjusted by the SELIC, the first installment of R$284,665 due on January 30, 2024 and the second installment of R$125,211 due on January 30, 2025. The Agreements do not exempt Braskem from liability before third parties with legitimate interests that seek damages in connection with the facts covered by the Agreements, including other authorities seeking to apply new monetary sanctions or fines or to launch new investigations into the Company. Therefore, it is not possible to ensure that the aggregate amount agreed upon will be sufficient to ensure full reparation to all victims. The Company will continue to cooperate with the authorities with which it signed the Agreements and to implement improvements to its compliance practices and its efforts to combat corruption. Braskem is still subject to external monitorship for a period of three years as from 2017, during which period the monitors will verify compliance with the Global Settlement, as well as the efficacy of the controls, policies and internal procedures of the Company in mitigating the risk of any violations of anticorruption law. The monitorship period could end earlier or be extended for another year, at the discretion of the authorities, depending on the progress made by Braskem in its compliance with the Global Settlement. The monitors could recommend changes to policies and procedures that the Company must adopt, unless they are excessively burdensome or ill- advised. In such cases, the Company may propose alternat |
Benefits offered to team member
Benefits offered to team members | 12 Months Ended |
Dec. 31, 2017 | |
Benefits offered to team members [Abstract] | |
Benefits offered to team members | 24. Benefits offered to team members 24.1 Short-term benefits 2017 2016 2015 Health care 140,553 139,412 126,545 Private pension 67,008 61,593 60,476 Transport 58,825 55,223 50,935 Feeding 30,916 28,874 27,755 Training 18,285 20,589 19,101 Other 16,173 13,237 18,789 331,760 318,928 303,601 24.2 Post-employment benefits 24.2.1 Retirement plans - defined benefit plans and health plants Braskem America The subsidiary Braskem America is the sponsor of Novamont, which is a defined benefit plan of the employees of the plant located in the State of West Virginia. At December 31, 2017, the plan has 39 active participants and 166 assisted participants (40 active participants and 164 assisted participants in 2016). The contributions by Braskem America in the year amount to R$4,069 (R$3,569 in 2016). The participants made no contributions in 2017 and 2016. Braskem Alemanha and Braskem Holanda The subsidiaries Braskem Alemanha and Braskem Netherlands are the sponsor of the defined benefit plans of its employees. At December 31, 2017, the plan has 133 active participants (128 in 2016) and no contributions were made by Braskem Alemanha and Braskem Holanda in 2017 and 2016. The participants made no contributions in 2017 and 2016. Health plan According to Brazilian laws, the type of health plan offered by the Company, named contributory plan, ensures to the participant who retires or is dismissed without cause the right to remain in the plan with the same assistance coverage conditions they had during the employment term, provided they assume the full payment of the plan (company's part + participant's part). This right is granted as follows: The participant who was dismissed without cause has the right to remain in the health plan for more 1/3 (one-third) of the plan contribution period, considering the minimum six-month period and the maximum twenty-four-month period. The participant who retires and contributes to the plan due to employment relationship over at least ten (10) years has the right to remain in the health plan for undetermined period. Should the participant have contributed for less than 10 years, they will have the right to remain ad a beneficiary for one (1) more year for each contribution year. In addition to the right granted to the former participants who retired or were dismissed without cause, the Brazilian laws also establish rules for the amount charged by the plan based on beneficiaries' age bracket. One of these rules define that the amount charged for the highest age bracket may not be six (6) times larger than the amount charged for the lowest age bracket. Thus, the amount charged from the lowest age bracket plans comprises a “subsidy” for highest age bracket plans. This subsidy is also supported by contributions from the Company. In other words, the amount charged from the participants included in the highest age brackets is not enough to cover their expenses. For these plans, the Company actuarially measured its obligations for future subsidies, and arrived at the following results: (i) Amounts in balance sheet 2017 2016 Defined benefit Novamont Braskem America 18,140 20,285 Braskem Alemanha and Holanda 92,402 69,952 110,542 90,237 Health care Bradesco saúde 83,233 71,899 193,775 162,136 Benefit obligations (156,957) (129,617) Health care (83,233) (71,899) Total obligations (240,190) (201,516) Fair value of plan assets 46,415 39,380 Funded status of the plan (193,775) (162,136) Consolidated net balance (non-current liabilities) (193,775) (162,136) (ii) Change in obligations 2017 2016 Balance at beginning of year 201,516 216,632 Health care 11,334 2,203 Current service cost 5,058 4,576 Interest cost 4,139 3,983 Benefits paid (3,399) (3,156) Actuarial losses (gain) 9,661 3,590 Exchange variation 11,881 (26,312) Balance at the end of the year 240,190 201,516 (iii) Change in fair value plan assets 2017 2016 Balance at beginning of year 39,380 46,395 Actual return on plan assets 5,115 221 Employer contributions 4,069 3,569 Benefits paid (2,915) (3,087) Exchange variation 766 (7,718) Balance at the end of the year 46,415 39,380 (iv) Amounts recognized in profit and loss 2017 2016 Health care 11,334 2,203 Current service cost 5,058 4,576 Interest cost 4,139 3,983 Expected return on plan assets (28) (31) Actuarial losses 6,069 2,472 26,572 13,203 (v) Actuarial assumptions (%) 2017 2016 2015 Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 5.45 3.70 2.00 2.00 4.18 4.35 2.00 n/a 7.22 4.60 3.75 n/a Inflation rate 4.50 n/a n/a n/a 6.00 n/a 2.00 n/a 6.50 n/a 2.00 n/a Expected return on plan assets n/a n/a n/a n/a n/a n/a n/a n/a n/a 7.50 n/a n/a Rate of increase in future salary levels n/a n/a 2.50 2.50 n/a n/a 3.00 n/a n/a n/a 3.00 n/a Rate of increase in future pension plan n/a n/a 1.75 1.75 n/a n/a 1.75 n/a n/a n/a n/a n/a Aging factor 2.50 n/a n/a n/a 2.50 n/a n/a n/a 2.50 n/a n/a n/a Medical inflation 3.50 n/a n/a n/a 3.50 n/a n/a n/a 3.50 n/a n/a n/a Duration 18.84 n/a n/a n/a 29.24 n/a n/a n/a 35.55 n/a n/a n/a (vi) Hierarchy of fair value assets On December 31, 2017, the balance of the fair value of assets is represented by the assets of the Novamont defined benefit plan, which has a level-1 fair value hierarchy. (vii) Sensitivity analysis Impact on the defined benefit obligation Premise change Premise increase Premise reduction Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 1.0% 1.0% 0.5% 0.5% 9,025 7,045 9,480 452 (11,019) (8,630) (10,582) (500) Real medical inflation 1.0% n/a n/a n/a 11,923 n/a n/a n/a (7,946) n/a n/a n/a Rate of increase in future salary levels n/a n/a 0.5% 0.5% n/a n/a 4,522 255 n/a n/a (4,259) (243) Rate of increase in future pension plan n/a n/a 0.25% 0.25% n/a n/a 2,709 126 n/a n/a (2,629) (123) Life expectancy n/a n/a 1 year 1 year n/a n/a 2,217 122 n/a n/a (2,314) (127) Mortality rate n/a 10.0% n/a n/a n/a 1,889 n/a n/a n/a (2,072) n/a n/a Health insurance - Impact on cost of services and interests costs Premise change Premise increase Premise reduction Cost of Iterests Cost of Iterests Cost of Iterests services costs services costs services costs Discount rate 1.0% 1.0% 177 145 (221) (138) Real medical inflation 1.0% 1.0% 245 1,216 (151) (810) 24.2.2 Retirement plan - defined contribution The Company and the subsidiaries in Brazil sponsor a defined contribution plan for its employees managed by ODEPREV, a private pension plan entity. ODEPREV offers its participants, which are employees of the sponsoring companies, an optional defined contribution plan in which monthly and additional participant contributions and monthly and annual sponsor contributions are made to individual pension savings accounts. For this plan, the sponsors pay contributions to private pension plan on contractual or voluntary bases. As soon as the contributions are paid, the sponsors do not have any further obligations related to additional payments. At December 31, 2017, the number of active participants in ODEPREV totals 5,280 (5,147 in 2016). The contributions made by the sponsors in the year amount to R$38,332 (R$30,500 in 2016) and the contributions made by the participants amounted to R$60,038 (R$52,741 in 2016). |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | 25. Equity (a) Capital On December 31, 2017, the Company's subscribed and paid up capital stock amounted to R$8,043,222 and comprised 797,257,604 shares with no par value, distributed as follows: Preferred Preferred Common shares shares shares % class A % class B % Total % Odebrecht 226,334,623 50.11 79,182,498 22.95 305,517,121 38.32 Petrobras 212,426,952 47.03 75,761,739 21.96 288,188,691 36.15 ADR (i) 56,088,424 16.26 56,088,424 7.04 Other 12,907,077 2.86 132,743,203 38.48 578,330 100.00 146,228,610 18.34 Total 451,668,652 100.00 343,775,864 99.65 578,330 100.00 796,022,846 99.85 Treasury shares 1,234,758 0.35 1,234,758 0.15 Total 451,668,652 100.00 345,010,622 100.00 578,330 100.00 797,257,604 100.00 (i) American Depositary Receipts traded on the New York Stock Exchange (USA); (b) Capital reserves This reserve includes part of the shares issued in Subsidiary's several capital increases. This reserve can be used to absorb losses, to redeem, reimburse or purchase shares, and to incorporate into the capital stock. (c) Legal reserve Under Brazilian Corporation Law, companies must transfer 5% of net profit for the year to a legal reserve until this reserve is equivalent to 20% of the paid-up capital. The legal reserve can be used for capital increase or absorption of losses. (d) Share rights Preferred shares carry no voting rights but they ensure priority, non-cumulative annual dividend of 6% of their unit value, according to profits available for distribution. The unit value of the shares is obtained through the division of capital by the total number of outstanding shares. Only class “A” preferred shares will have the same claim on the remaining profit as common shares and will be entitled to dividends only after the priority dividend is paid to preferred shareholders. Only class “A” preferred shares also have the same claim as common shares on the distribution of shares resulting from capitalization of other reserves. Only class “A” preferred shares can be converted into common shares upon resolution of majority voting shareholders present at a General Meeting. Class “B” preferred shares can be converted into class “A” preferred shares at any time, at the ratio of two class “B” preferred shares for one class “A” preferred share, upon a simple written request to the Company, provided that the non-transferability period provided for in specific legislation that allowed for the issue and payment of such shares with tax incentive funds has elapsed. In August 2016, 15,288 class “B” preferred shares were converted into 7,644 class “A” preferred shares, and in December 2015, a total of 200 class “B” preferred shares were converted into 100 class “A” preferred shares. In the event of liquidation of the Company, class “A” and “B” preferred shares will have priority in the reimbursement of capital. Shareholders are entitled to receive a mandatory minimum dividend of 25% on profit for the year, adjusted under Federal Law 6,404/76. (e) Profit allocation and payment of dividends Under the Company's bylaws, profit for the year, adjusted according to Federal Law 6,404/76, is appropriated as follows: (i) 5% to a legal reserve; (ii) 25% to pay for mandatory, non-cumulative dividends, provided that the legal and statutory advantages of the Class “A” and “B” preferred shares are observed. When the amount of the priority dividend paid to class “A” and “B” preferred shares is equal to or higher than 25% of profit for the year calculated under Article 202 of Federal Law 6,404/76, it is the full payment of the mandatory dividend. Any surplus remaining after the payment of the priority dividend will be used to: pay dividends to common shareholders up to the limit of the priority dividends of preferred shares; and if there still is any surplus, distribute additional dividends to common shareholders and class “A” preferred shareholders so that the same amount of dividends is paid for each common share or class “A” preferred share. (e.1) Profit allocation and dividends proposed In a meeting held on November 28, 2017, the Board of Directors approved the prepayment of dividends in the amount of R$1,000,000, which was made on December 12, 2017. The amount was sufficient to meet the minimum mandatory dividends for fiscal year 2017. 2017 Net income for the year of Company's shareholders 4,082,990 Amounts recorded directly to retained earnings Legal reserves distribution (204,150) Tax incentive reserve distribution (71,745) Realization of additional property, plant and equipment 27,810 Prescribed dividends 482 3,835,387 Destinations: Total proposed dividends, paid in advance in December 2017 (i) (1,000,000) Additional dividends proposed (ii) (1,500,000) Portion allocated to unrealized profit reserves (iii) (1,335,387) (3,835,387) Composition of the total proposed dividends Minimum dividends - 25% adjusted net income (958,847) Additional proposed dividends (41,153) Total dividends paid in December 2017 (1,000,000) Additional dividends proposed (1,500,000) Total dividends (2,500,000) (i) Per-share dividend of R$1.25671835741 per common and class “A” preferred share and R$0.60624979930 per class “B” preferred share. (ii) Such dividends will be submitted to shareholders for approval at a Shareholders' Meeting. (iii) The retained earnings reserve was accrued based on the capital budget, in accordance with Article 196 of Federal Law 6,404/76, to be allocated to future investments. Such retention will be subject to approval by shareholders convened in a Shareholders' Meeting. (e.2) Dividend payment from previous years The Annual Shareholders' Meeting held on April 6, 2016 approved the declaration of dividends related to fiscal year 2015 in the amount of R$ 1,000,000, the payment of which commenced on April 15, 2016, of which R$567,620 was paid to holders of common shares and R$432,020 and R$360 to holders of class A and class B preferred shares, respectively. This payment fully settles the dividend for the class "B" preferred shares, which was calculated in accordance with the Bylaws. On September 27, 2016, the Board of Directors' Meeting approved the payment of interim dividends for fiscal year 2016, in the amount of R$1,000,000, which was paid as of October 11, 2016. The Company paid R$567,819 to common shareholders and R$432,181 to class A preferred shareholders. (f) Other comprehensive income Attributed to shareholders' interest Deemed cost Defined Foreign and additional benefit Foreign currency Gain (loss) Total indexation plans actuarial sales Fair value translation on interest Braskem Non-controlling on PP&E Gain (loss) hedge of hedge adjustment in subsidiary shareholders' interest in (i) (ii) (iii) (iii) (iv) (v) interest subsidiaries Total On December 31, 2014 263,106 (30,103) (3,263,732) (289,667) 386,628 (9,404) (2,943,172) (115,385) (3,058,557) Additional indexation Realization by depreciation or write-off assets (41,268) (41,268) (41,268) Income tax and social contribution 14,032 14,032 14,032 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,462) (1,462) (1,462) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate (9,629,237) (9,629,237) (397,386) (10,026,623) Income tax and social contribution 3,225,996 3,225,996 119,129 3,345,125 Fair value of Cash flow hedge Change in fair value (524,682) (524,682) (24,791) (549,473) Transfer to result (72,518) (72,518) (72,518) Income tax and social contribution 199,176 199,176 7,139 206,315 Fair value of cash flow hedge from jointly-controlled 2,295 2,295 2,295 Actuarial loss with post-employment benefits, net of taxes (9,129) (9,129) (9,129) Foreign currency translation adjustment 718,763 718,763 (65,414) 653,349 On December 31, 2015 234,904 (39,232) (9,666,973) (685,396) 1,105,391 (9,404) (9,060,710) (476,708) (9,537,418) Additional indexation Realization by depreciation or write-off assets (41,268) (41,268) (41,268) Income tax and social contribution 14,032 14,032 14,032 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,461) (1,461) (1,461) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate 2,625,551 2,625,551 (498,767) 2,126,784 Transfer to result 1,342,785 1,342,785 14,959 1,357,744 Income tax and social contribution (1,406,740) (1,406,740) 145,326 (1,261,414) Fair value of Cash flow hedge Change in fair value 247,815 247,815 (736) 247,079 Transfer to result (19,434) (19,434) (12,135) (31,569) Income tax and social contribution (79,194) (79,194) 3,861 (75,333) Fair value of cash flow hedge from jointly-controlled (3,309) (3,309) (3,309) Actuarial loss with post-employment benefits, net of taxes (4,119) (4,119) (4,119) Foreign currency translation adjustment 63,697 63,697 275,599 339,296 On December 31, 2016 206,703 (43,351) (7,105,377) (539,518) 1,169,088 (9,404) (6,321,859) (548,601) (6,870,460) Additional indexation Realization by depreciation or write-off assets (40,678) (40,678) (40,678) Income tax and social contribution 13,831 13,831 13,831 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,459) (1,459) (1,459) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate (42,507) (42,507) 118,179 75,672 Transfer to result 1,145,602 1,145,602 40,924 1,186,526 Income tax and social contribution (355,960) (355,960) (47,731) (403,691) Fair value of Cash flow hedge Change in fair value 876,636 876,636 6,513 883,149 Transfer to result (287,576) (287,576) 9,632 (277,944) Income tax and social contribution (198,343) (198,343) (4,844) (203,187) Fair value of cash flow hedge from jointly-controlled 3,534 3,534 3,534 Actuarial loss with post-employment benefits, net of taxes (8,654) (8,654) (8,654) Foreign currency translation adjustment 51,445 51,445 (52,047) (602) On December 31, 2017 178,893 (52,005) (6,358,242) (145,267) 1,220,533 (9,404) (5,165,492) (477,975) (5,643,467) (i) Transfer to retained earnings as the asset is depreciated or written-off/sold. (ii) Transfer to retained earnings when the extinction of the plan. (iii) Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. (iv) Transfer to the income statement when write-off of subsidiary abroad. (v) Transfer to the income statement when divestment or transfer of control of subsidiary. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [Abstract] | |
Earnings per share | 26. Earnings per share Basic and diluted earnings (loss) per share is calculated by means of the division of adjusted profit for the year attributable to the Company's common and preferred shareholders by the weighted average number of these shares held by shareholders, excluding those held in treasury and following the rules for the distribution of dividends provided for in the Company's bylaws, as described in Note 25(e), particularly in relation to the limited rights enjoyed by class “B” preferred shares. In view of these limited rights, this class of share does not participate in losses. In this case, the diluted result takes into account the conversion of two class "B" preferred shares into one class “A” preferred share, as provided for in the bylaws of the Company. Class A preferred shares participate in dividends with common shares after the mandatory dividends has been attributed in accordance with the formula provided for in the Company's bylaws, as described in Note 25(d) and there is no highest limit for their participation. Diluted and basic earnings (losses) per share are equal when there is profit in the year, since Braskem has not issued convertible financial instruments. As required by IAS 33, the table below show the reconciliation of profit (loss) for the period adjusted to the amounts used to calculate basic and diluted earnings (loss) per share. Basic and diluted 2017 2016 2015 Profit (loss) for the year attributed to Company's shareholders of continued operations 3,856,564 (442,430) 2,995,338 Distribution of dividends attributable to priority: Preferred shares class "A" 208,416 208,409 Preferred shares class "B" 351 360 208,767 208,769 Distribution of 6% of unit value of common shares 273,827 273,824 Distribution of plus income, by class: Common shares 1,915,805 1,426,771 Preferred shares class "A" 1,458,165 1,085,974 3,373,970 2,512,745 Reconciliation of income available for distribution, by class (numerator): Common shares 2,189,632 (251,222) 1,700,595 Preferred shares class "A" 1,666,581 (191,208) 1,294,383 Preferred shares class "B" 351 360 3,856,564 (442,430) 2,995,338 Weighted average number of shares, by class (denominator): Common shares 451,668,652 451,668,652 451,668,652 Preferred shares class "A" 343,775,864 343,771,165 343,783,562 Preferred shares class "B" 578,330 593,618 796,022,846 795,439,817 796,045,832 Profit (loss) per share (in R$) Common shares 4.8479 (0.5562) 3.7651 Preferred shares class "A" 4.8479 (0.5562) 3.7651 Preferred shares class "B" 0.6069 0.6065 2016 2015 Preferred shares Class "A" Preferred shares Class "A" Outstanding Weighted Outstanding Weighted shares average shares average Amount at beginning of year 343,768,220 343,768,220 343,848,120 343,848,120 Repurchase of treasury shares (80,000) (64,658) Conversion of preferred shares class "B" to "A" 7,644 2,945 100 100 Amount at the end of the year 343,775,864 343,771,165 343,768,220 343,783,562 |
Net sales revenues
Net sales revenues | 12 Months Ended |
Dec. 31, 2017 | |
Net sales revenues [Abstract] | |
Net sales revenues | 27. Net sales revenues 2017 2016 2015 Sales revenue Domestic market 34,983,265 32,293,042 30,366,378 Foreign market 23,297,304 23,084,703 23,159,820 58,280,569 55,377,745 53,526,198 Sales and services deductions Taxes Domestic market (8,663,707) (7,316,325) (6,214,041) Foreign market (33,798) (102,831) (122,776) Costumers rebates Domestic market (35,538) (25,400) (12,900) Foreign market (60,990) (23,820) (16,552) Sales returns Domestic market (125,153) (168,625) (167,515) Foreign market (100,789) (76,756) (112,425) (9,019,975) (7,713,757) (6,646,209) Net sales and services revenue 49,260,594 47,663,988 46,879,989 Sales revenues represent the fair value of the amount received or receivable from the sale of products and services during the normal course of the Company's activities. Revenues from sales of products are recognized when (i) the amount of sales can be reliably measured and the Company does not have control over the products sold; (ii) it is probable that the Company will received the economic benefits; and (iii) all legal titles, risks and benefits of product ownership are fully transferred to the client. The Company does not make sales with continued management involvement. Most of Braskem's sales are made to industrial customers and, in a lower volume, to resellers. The moment when the legal right, as well as the risks and benefits, are substantially transferred to the client is determined as follows: (i) for contracts under which the Company is responsible for the freight and insurance, the legal right and the risks and benefits are transferred to the client as soon as the goods are delivered at the destination established in the contract; (ii) for agreements under which the freight and insurance are a responsibility of the client, risks and benefits are transferred as soon as the products are delivered to the client's carrier; and (iii) for contracts under which product delivery involves the use of pipelines, especially basic petrochemicals, the risks and benefits are transferred immediately after the Company's official markers, which is the point of delivery of the products and transfer of their ownership. The cost of freight services related to sales, transfers to storage facilities and finished product transfers between Braskem establishments are included in cost of sales. (a) Net sales revenue by country 2017 2016 2015 Brazil 26,147,559 24,640,077 23,729,106 United States 8,539,972 7,965,209 9,601,157 Argentina 1,336,440 1,244,267 1,339,775 United Kingdom 202,830 589,725 2,438,148 Germany 1,192,287 1,198,760 1,239,286 Mexico 3,408,385 2,075,695 967,829 Italy 604,546 667,265 561,347 Netherlands 333,134 262,289 622,436 Singapore 542,866 1,101,156 1,017,128 Switzerland 415,729 227,504 334,422 Colombia 340,396 369,359 278,304 Spain 282,854 342,154 391,097 Chile 554,237 522,796 503,650 Peru 493,654 397,186 351,097 Uruguay 122,251 122,783 327,533 Japan 126,956 1,631,564 904,903 Poland 231,716 252,508 199,115 Paraguay 174,783 185,432 170,834 France 166,314 236,727 268,239 Bolivia 163,862 211,382 194,865 Canada 235,612 242,492 184,752 South Korea 339,430 254,512 74,567 Other 3,304,781 2,923,146 1,180,399 49,260,594 47,663,988 46,879,989 (b) Net sales revenue by product 2017 2016 2015 PE/PP 33,105,714 30,790,364 28,226,087 Ethylene, Propylene 3,351,805 2,906,796 2,999,090 Naphtha, condensate and crude oil 135,165 2,582,257 4,587,944 Benzene, toluene and xylene 2,683,406 2,411,031 2,538,993 PVC/Caustic Soda/EDC 3,066,879 3,016,390 2,780,075 ETBE/Gasoline 2,433,360 2,058,952 1,722,391 Butadiene 1,819,387 1,315,892 1,000,376 Cumene 578,482 501,958 583,608 Solvents 401,455 379,745 431,264 Other 1,684,941 1,700,603 2,010,161 49,260,594 47,663,988 46,879,989 (c) Main clients In 2017 and 2016, the Company does not have any revenue arising from transactions with only one client that is equal to or higher than 10% of its total net revenue. In 2017, the most significant revenue from a single client amounts to approximately 2.9% of total net revenues of the Company and refers to the chemical segment |
Tax incentives
Tax incentives | 12 Months Ended |
Dec. 31, 2017 | |
Tax incentives [Abstract] | |
Tax incentives | 28. Tax incentives (a) Income Tax Since 2015, the Company obtained grant in lawsuits claiming the reduction of 75% of IR on income from the following industrial units: (i) PVC and Chlor-Alkali ( Cloro Soda ), established in the state of Alagoas; and (ii) basic petrochemicals unit, PE (2), PVC and Chlor-Alkali units, all established in the city of Camaçari (BA). The third PE plant built in Camaçari received a report allowing the granting of the tax incentives issued by the Northeast Development Agency (SUDENE) in 2017. The term of enjoyment is 10 years and in 2017 a benefit of R$71,745 was calculated. (b) PRODESIN - ICMS The Company has ICMS tax incentives granted by the state of Alagoas, through the state of Alagoas Integrated Development Program - PRODESIN, which are aimed at implementing and expanding a plant in that state. This incentive is considered an offsetting entry to sales taxes (Note 27). In 2017, the amount was R$95,704 (R$78,824 in 2016). |
Other income (expenses), net
Other income (expenses), net | 12 Months Ended |
Dec. 31, 2017 | |
Other income (expenses), net [Abstract] | |
Other income (expenses), net | 29. Other income (expenses), net Note 2017 2016 2015 Adjusted Adjusted Participation of members in profits and results (i) (399,828) (361,796) (356,437) Expenses from fixed assets (205,929) (53,774) (174,488) Allowance for judicial and labor claims (119,919) (169,973) (105,644) Capital gain - sale of Quantiq 5 276,816 Recovery of environmental damages (102,466) (182,600) (65,791) Leniency agreement 23.3 (375,476) (2,860,402) Other 71,922 (277,409) (249,940) (854,880) (3,905,954) (952,300) (i) In the fiscal year ended December 31, 2016 and 2015, the amounts related to this item were reclassified from “costs of goods sold” (2016 - R$163,055, 2015 - R$165,522), “selling and distribution expenses” (2016 - R$7,155, 2015 - R$5,848) and “general and administrative expenses” (2016 - R$191,586, 2015 - R$185,067) (Note 2.4(b)). |
Financial results
Financial results | 12 Months Ended |
Dec. 31, 2017 | |
Financial results [Abstract] | |
Financial results | 30. Financial results 2017 2016 2015 Adjusted Financial income Interest income 512,051 646,727 528,788 Other 91,579 43,395 56,145 603,630 690,122 584,933 Financial expenses Interest expenses (2,219,503) (2,447,481) (2,094,280) Monetary variations on fiscal debts (191,101) (249,578) (152,409) Discounts granted (137,389) (108,606) (130,564) Loans transaction costs - amortization (64,771) (56,020) (64,406) Adjustment to present value - appropriation (284,992) (507,744) (517,739) Other (849,461) (201,533) (204,004) (3,747,217) (3,570,962) (3,163,402) Exchange rate variations, net On financial assets 216,381 (1,139,676) 1,102,744 On financial liabilities (1,015,143) (2,070,741) (999,834) (798,762) (3,210,417) 102,910 Total (3,942,349) (6,091,257) (2,475,559) 2017 2016 2015 Adjusted Interest income Held for sale 209,327 331,811 124,767 Loans and receivables 270,909 273,355 261,034 Held-to-maturity 50,526 480,236 605,166 436,327 Other assets not classifiable 31,815 41,561 92,461 Total 512,051 646,727 528,788 |
Expenses by nature and function
Expenses by nature and function | 12 Months Ended |
Dec. 31, 2017 | |
Expenses by nature and function [Abstract] | |
Expenses by nature and function | 31. Expenses by nature and function Note 2017 2016 2015 Adjusted Adjusted Classification by nature: Raw materials other inputs (29,364,996) (28,197,875) (30,600,855) Personnel expenses (2,173,640) (2,576,107) (2,466,890) Outsourced services (2,120,001) (2,135,412) (1,580,827) Depreciation, amortization and depletion (2,928,855) (2,677,672) (2,120,157) Freights (2,058,574) (1,918,973) (1,856,194) Costs of idle industrial plants Note 2.4(c) (67,593) (60,944) (67,423) Other income (expenses), net (1,379,965) (4,175,836) (1,300,142) Total (40,093,624) (41,742,819) (39,992,488) Classification by function: Cost of products sold (36,177,408) (34,985,569) (36,697,842) Selling and distribution (1,459,608) (1,403,673) (1,077,308) General and administrative (1,434,272) (1,285,613) (1,095,403) Research and development (167,456) (162,010) (169,635) Other income (expenses), net (854,880) (3,905,954) (952,300) Total (40,093,624) (41,742,819) (39,992,488) |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment information [Abstract] | |
Segment information | 32. Segment information As of December 31, 2017, Braskem's organizational structure was formed by the following segments: Chemicals: comprises the activities related to the production of ethylene, propylene butadiene, toluene, xylene, cumene and benzene, as well as gasoline, diesel and LPG (Liquefied Petroleum Gas), and other petroleum derivatives and the supply of electric energy, steam, compressed air and other inputs to second-generation producers located in the Camaçari, Triunfo, São Paulo and Rio de Janeiro petrochemical complexes. Polyolefins: comprises the activities related to the production of PE and PP in Brazil. Vinyls: comprises the activities related to the production of PVC, caustic soda and chloride in Brazil. United States and Europe: operations related to PP production in the United States and Europe, through the subsidiaries Braskem America and Braskem Alemanha, respectively. Mexico: comprises the activities relation to the production of PE in Mexico, through the subsidiary Braskem Idesa. (a) Presentation, measurement and conciliation of results Information by segment is generated in accounting records, which are reflected in the consolidated financial statements. The eliminations stated in the operating segment information, when compared with the consolidated balances, are represented by transfers of inputs between segments that are measured as arm's length sales. The operating segments are stated based on the results of operations, which does not include financial results, and current and deferred income tax and social contribution expenses. The Company does not disclose assets by segment since this information is not presented to its chief decision maker. (b) Results by segment 2017 Operating expenses Net Cost of Selling, general Results from Other sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals (i) 25,179,288 (20,478,914) 4,700,374 (773,396) (197,275) 3,729,703 Polyolefins 19,650,398 (15,432,179) 4,218,219 (1,321,575) (177,518) 2,719,126 Vinyls 3,066,879 (2,572,774) 494,105 (162,989) (163,374) 167,742 USA and Europe 9,854,496 (7,419,261) 2,435,235 (582,672) (21,279) 1,831,284 Mexico 3,600,820 (2,097,471) 1,503,349 (283,318) 27,914 1,247,945 Total 61,351,881 (48,000,599) 13,351,282 (3,123,950) (531,532) 9,695,800 Other segments 83,720 (65,743) 17,977 (13,391) (2,430) 2,156 Corporate unit (61,384) 39,956 (320,918) (ii) (342,346) Braskem consolidated before 61,435,601 (48,066,342) 13,369,259 (3,198,725) 39,956 (854,880) 9,355,610 Eliminations and reclassifications (12,175,007) 11,888,934 (286,073) 137,389 (148,684) Total 49,260,594 (36,177,408) 13,083,186 (3,061,336) 39,956 (854,880) 9,206,926 Adjusted 2016 Operating expenses Net Cost of Selling, general Results from Other sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals (i) 25,062,602 (20,248,175) 4,814,427 (680,083) (409,920) 3,724,425 Polyolefins 20,307,367 (15,980,935) 4,326,432 (1,284,665) (199,098) 2,842,670 Vinyls 3,016,390 (2,815,184) 201,206 (236,771) (71,880) (107,444) USA and Europe 8,896,071 (6,080,722) 2,815,349 (497,810) (71,000) 2,246,540 Mexico 1,586,927 (1,152,047) 434,880 (231,795) (4,805) 198,282 Total 58,869,357 (46,277,063) 12,592,294 (2,931,124) (756,703) 8,904,473 Other segments 12,202 (14,760) (2,558) (1,876) (20,864) (25,298) Corporate unit (33,582) 30,078 (3,128,387) (iii) (3,131,893) Braskem consolidated before 58,881,559 (46,291,823) 12,589,736 (2,966,582) 30,078 (3,905,954) 5,747,282 Eliminations and reclassifications (11,217,571) 11,306,254 88,683 115,286 203,965 Total 47,663,988 (34,985,569) 12,678,419 (2,851,296) 30,078 (3,905,954) 5,951,247 Adjusted 2015 Operating expenses Net Cost of Selling, general Results from Other sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals (i) 24,269,768 (20,086,768) 4,183,000 (644,598) (158,797) 3,379,604 Polyolefins 19,986,174 (15,420,138) 4,566,036 (1,206,374) (189,988) 3,169,674 Vinyls 2,780,075 (2,393,660) 386,415 (220,139) (53,918) 112,358 USA and Europe 8,239,913 (6,920,464) 1,319,449 (392,319) (55,089) 872,040 Mexico 472,002 (486,832) (14,830) (88,249) 3,817 (99,262) Total 55,747,932 (45,307,862) 10,440,070 (2,551,679) (453,975) 7,434,414 Other segments 159,510 (150,213) 9,297 (6,467) (73,879) (71,049) Corporate unit 103,604 2,219 (357,165) (251,340) Braskem consolidated before 55,907,442 (45,458,075) 10,449,367 (2,454,542) 2,219 (885,019) 7,112,025 Eliminations and reclassifications (9,027,453) 8,760,233 (267,220) 112,196 (67,281) (222,305) Total 46,879,989 (36,697,842) 10,182,147 (2,342,346) 2,219 (952,300) 6,889,720 (i) The Basic Petrochemicals Segment changed its name to the Chemicals Segment, seeking to adopt nomenclature more closely aligned with the segment's markets. (ii) Includes gain from sale of the former “Chemical distribution” segment in the amount of R$276,816 (Note 5). (iii) Inclusion of the provision for the Leniency Agreement in the amount of R$2,860,402 (Note 29). (c) Long-lived assets by segment 2017 2016 Reporting segments Chemicals 11,136,125 11,417,669 Polyolefins 5,072,162 5,162,075 Vinyls 2,433,882 2,621,376 USA and Europe 2,587,302 2,015,492 Mexico 10,733,277 10,607,951 Total 31,962,748 31,824,563 Other segments 526,359 321,234 Total 32,489,107 32,145,797 |
Insurance coverage
Insurance coverage | 12 Months Ended |
Dec. 31, 2017 | |
Insurance coverage [Abstract] | |
Insurance coverage | 33. Insurance coverage Braskem carries insurance policies to cover the domestic and international operations of its plants, as detailed below, in addition to other insurance policies, which include general civil liability, the civil liability of directors and offices, domestic and international charter operations, charter's liability, etc. The company believes its Insurance Program is consistent with the standards adopted by petrochemical companies operating globally. The All Risks Program provides coverage for material damages and consequent loss of profit of all Braskem plants through an “All Risks” program. The program is divided into three different policies that ensure coverage of the operations in Brazil, Mexico and the USA/Germany. These policies are valid through April 2020. The following table presents additional information on the policies in force. Each has maximum indemnity limits (“MIL”) per event to cover possible claims in view of the nature of the Company's activities and benchmarks, as well estimated maximum loss studies prepared by external advisors. Maximum indemnity limit Amount insured Maturity US$ million US$ million Units in Brazil April 10, 2020 3,375 26,406 Units in United States and Germany April 10, 2020 500 2,037 Units in Mexico April 10, 2020 2,936 6,068 Total 34,511 The risk assumptions adopted are not part of the audit scope and, therefore, were not subject to review by our independent accountants. These policies provide coverage for material losses arising from accidents related to fire, explosion and machinery breakdown, etc., and consequential loss of profit, with maximum indemnity periods ranging from 12 to 33 months, depending on the plant and/or coverage. Braskem also carries an insurance policy against general civil liability that covers damages caused to third parties from its operations and products, including any losses caused by sudden pollution. The Company's new projects are covered by specific Engineering Risk policies and/or construction and assembly clauses included in the Operational Risks policies. |
Information related to guarante
Information related to guaranteed securities issued by subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Information related to guaranteed securities issued by subsidiaries [Abstract] | |
Information related to guaranteed securities issued by subsidiaries | 34. Information related to guaranteed securities issued by subsidiaries Braskem S.A. has fully and unconditionally guaranteed the debit securities issued by Braskem Finance, Braskem America Finance and Braskem Holanda Finance 100-percent-owned subsidiaries of Braskem. There are no significant restrictions on the ability of Braskem to obtain funds from these subsidiaries. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent events [Abstract] | |
Subsequent events | 35. Subsequent events (a) On March 21, 2018, the Extraordinary Shareholders' Meeting approved the long-term share-based incentive plan (“ILP Plan”) which aims to align the interests of its participants with those of the Company's shareholders and to encourage participants' retention at the Company by offering eligible participants an opportunity to receive restricted shares in the Company by voluntarily investing own funds and holding such shares through the end of the three-year vesting period. (i) On March 28, 2018, the Board of Directors approved the “ILP Program 2018” in accordance with the terms and conditions of the ILP Plan, which includes the list of eligible persons, the deadline for acquiring own shares by participants and the number of restricted shares to be delivered to participants as matching contribution for each own share acquired. The maximum number of shares the Company expects to deliver to the participants of the ILP Program 2018, after the vesting period and subject to compliance with all necessary requirements, is 727,688 shares. The program's grant date is April 6, 2018. (ii) On March 13, 2019, the Board of Directors approved the “ILP Program 2019” in accordance with the terms and conditions of the ILP Plan, which includes the list of eligible persons, the deadline for acquiring own shares by participants and the number of restricted shares to be delivered to participants as matching contribution for each own share acquired. The maximum number of shares the Company expects to deliver to the participants of the ILP Program 2019, after the vesting period and subject to compliance with all necessary requirements, is 573,345 shares. (b) In April 2018, the Company received the amount of R$81,000 monetarily corrected related to the outstanding balance of the R$100,000 provided for in the sale made of the subsidiaries Quantiq and IQAG (Note 5). The difference between the restated amount provided for and the amount received was recognized in the second quarter of 2018 in the line “Other income (expenses), net,” in the amount of R$19,558, resulting from the adjustment envisaged in the agreement. (c) On April 30, 2018, the Annual Shareholders' Meeting approved the payment of additional dividends considering the net income for fiscal year 2017, in the amount of R$1,500,000, paid as from May 10, 2018. (d) In April 2018, the time deposit investments given as guarantee to cover Braskem's obligation related to the constitution of a reserve account for the project finance of subsidiary Braskem Idesa was withdrawn and the amount of R$476,919 became fully available. (e) On May 11, 2018, Braskem S.A., in line with its commitment to maintaining financial liquidity, contracted from a syndicate of global banks, an international revolving credit facility of US$1,000,000, maturing in 2023. The two facilities held by the Company until then in the amounts of US$750 million with expiration in December 2019 and of R$500 million with expiration in September 2019 were cancelled. (f) On May 30, 2018, the subsidiary Braskem America contracted a credit facility in the amount of up to US$225 million that is secured by Euler Hermes, a German export credit agency, which will be used to finance a portion of the investment in the new PP plant located in Houston, Texas, United States. The funds will be tapped in accordance with the progress of the project's construction and the total amount is expected to be disbursed by December 30, 2020. To date, US$172 million has been disbursed. (g) In July 2018, the Company was served a notice by the State of Alagoas claiming that it allegedly used an ICMS tax base lower than that envisaged in legislation for internal transfers to another unit in the State of Alagoas of DCE (dichloroethane), between January 2013 and May 2016, which is a product that is not subject to deferral in such transactions. The restated value of this tax assessment notice amounted approximately to R$175 million. The Company's external legal advisors estimate that the administrative proceedings should be concluded in 2022. No judicial deposit or other form of security was accrued for this proceeding, as it is currently still in its administrative stage. (h) During 2018 and 2019, Braskem prepaid borrowings, as follows: Annual financial charges (%) Prepayments Foreign currency Bonds 7.38 825,720 Export credit notes US dollar exchange variation + interest between 7.30 and 7.87 612,810 Working capital US dollar exchange variation + 1.88% above Libor 865,890 2,304,420 Local currency BNDES TJLP + interest between 0.00 and 2.62 29,330 BNDES SELIC + 2.32 21,065 BNDES Interest between 3.50 and 4.00 32,839 BNB/FINEP 5.84 138,230 Export credit notes 105.00% of CDI 435,000 Export credit notes 108.00% of CDI 66,667 723,131 3,027,551 (i) In November 2018, the subsidiary Braskem Netherlands B.V. secured a financing facility of US$295 million guaranteed by SACE Covered Facility Agreement, the Italian export credit agency, with maturity in November 2028 and charges Us dollar exchange variation + semianual Libor + 0.90% per year. (j) In March 2017, the Federal Supreme Court (“STF”) decided, in connection with the Extraordinary Appeal indicated by STF itself as the leading case of this discussion, that ICMS tax should not be included in the calculation base of PIS/COFINS. Despite the filing of a motion for clarification by the Federal Government requesting the prospective effects of the decision, the STF itself and all Regional Federal Appellate Courts in Brazil have applied the decision of the lead case indiscriminately. On December 31, 2018, the Extraordinary Appeal of the Federal Government, filed in a lawsuit brought by Braskem S/A itself, was ruled moot, therefore increasing the legal certainty of the Company for recognizing its right. In this scenario, Braskem recognized on December 31, 2018 a tax credit in the amount of R$519,830 related to PIS and COFINS for the period from March 2017 to November 2018, of which R$265,438 was recorded under “Net sales revenue”, R$235,919 under “Other operating income (expenses)” and R$18,473 under “Financial income.” In 2019 the courts issued a final and unappealable decisions on the lawsuit brought by Braskem S.A. and of merged companies, which determines the exclusion of ICMS tax from the calculation base of PIS/COFINS taxes and the earliest period of the tax credit of these lawsuits is retroactive to the year 1991. The effects of these decisions are being determined by the Company, and, in the first semester of 2019 was recognized the amount of R$2,038,938 related to PIS and COFINS tax liability surpluses, of which R$1,850,965 was recorded under “Other operating income (expenses)” and R$187,973 under “Financial income.” (k) On January 30, 2019, Braskem received the first installment of R$266 million related to the onlending transaction with the BNDES in the aggregate amount of R$476 million at an interest rate of 11.57% p.a. and with maturity on January 15, 2031, which was taken out on December 26, 2018. The Company will receive the remaining amounts by the end of fiscal year 2019. (l) In April 2019, the public-interest civil action was filed by the Alagoas State Prosecution Office and the Alagoas State Public Defender's Office seeking the freezing of Braskem's assets to ensure the payment of any environmental and collective damages the Company may be ordered to pay due to its past mining activities in the city of Maceió. The plaintiffs requested a provisional remedy to freeze Braskem's assets in the amount of R$6.7 billion. The court's preliminary decision ordered the freezing of R$100 million in Braskem's bank accounts, which already has been carried out. After both parties filed Interlocutory Appeals, the Alagoas State Court of Appeals granted only the appeal filed by the State Prosecution Office, ordering the suspension of the distribution of dividends to shareholders, under penalty of freezing R$2.7 billion. The decision was revised by a Suspension of Injunction and Order, through a decision of the presiding judge of the Superior Court of Justice (STJ), which authorized the decision involving the distribution of dividends conditioned to Braskem effectively issuing an insurance guarantee. On June 26, 2019, the Alagoas State Prosecution Office and the Alagoas State Public Defender's Office amended the action to change the boundaries of the claim, which involved excluding the alleged environmental damages and reducing the request for immediate freeze of assets to R$3.7 billion, which would correspond to the sum of the pecuniary damages caused to the residents of the districts affected by the geological event. Immediately thereafter, the presiding judge of the Alagoas State Court of Appeals issued, during a courthouse vacation, a decision ordering the freezing of R$3.7 billion. On August 9, 2019, the decision of the presiding judge of the STJ lifted the freezing of cash, conditioned upon the effective presentation of a new insurance guarantee in the same amount by Braskem to the court. The Company continues to collaborate with the authorities to identify the causes, with the support of independent experts, and is committed to implementing solutions. (m) As per the notice dated July 25, 2019, Braskem was informed of the Public-Interest Civil Action filed against it by the Labor Public Prosecutor of the State of Alagoas ("MPT-AL"), with an injunction to freeze the amount of R$2.5 billion to guarantee payment of any pecuniary damages to workers affected by the geological phenomenon observed in Maceió. In said action, MPT-AL further claims the compensation of workers for pain and suffering. The Company informs that it has taken all applicable measures within the legal periods and will keep the market informed of any material developments in the matter. (n) As per the notice dated August 19, 2019, Braskem was informed that, in connection with the geological events in the State of Alagoas, it has taken cognizance of the filing of a Public-Interest Civil Action by the Federal Prosecution Office ("MPF") against the Company and other plaintiffs, with the following main claims for interlocutory relief: (i) the accrual of an own private fund in the initial amount of R$3.075 billion for the execution of social and environmental programs and of emergency measures, and the maintenance in said fund of working capital in the amount of R$2 billion or, after the financial schedule is approved, an amount equivalent to 100% of the expenses projected for the subsequent 12-month period; (ii) the presentation of guarantees in the amount of R$20.5 billion; (iii) a prohibition on the encumbrance or divestment of any of the Company's fixed assets and on the distribution of profits, whether in dividends, interest on equity or any other form; (iv) a court-ordered freeze of any profits not distributed; and (v) a suspension on financing from BNDES (state-owned bank) and government incentives, as well as acceleration of existing debts with BNDES. So far, there is no decision about the injunction requested. The Company informs that it has taken all applicable measures within the legal periods and will keep the market informed of any relevant developments in this matter. (o) Since the Company was not able to file Form 20-F, for the year ended December 31, 2017, until the date granted by SEC and no further extensions have been granted pursuant to Section 802.01E of the NYSE Listed Company Manual, on May 13, 2019, the New York Stock Exchange suspended trading of the Registrant's American Depositary Shares and had initiated delisting procedures. The Company appealed the decision, which is scheduled by the NYSE for October 17, 2019. (p) As per the Material Fact notice dated June 4, 2019, Braskem was informed by Odebrecht of its decision taken jointly with LyondellBasell to terminate negotiations for a potential transaction involving the transfer to LyondellBasell of the entire interest held by Odebrecht in the capital of Braskem. Those negotiations were started on June 15, 2018. (q) As per the Material Fact notice dated June 18, 2019, Braskem was informed that in view of the court-supervised reorganization filed by Odebrecht S.A. and other companies of the Odebrecht Group, including the controlling shareholder of the Company, OSP Investimentos S.A., the Company was informed that there has been no change whatsoever in the controlling interest held in Braskem, with the totality of the common and preferred shares in the Company held by OSP Investimentos S.A. in fiduciary assignment agreement to the creditors of Odebrecht. The Company further informs that it has no relevant amounts receivable from Odebrecht and that the court-supervised reorganization does not trigger the early termination of any of its liabilities. (r) In 2019, the Company reversed the provision for a controversial portion of the 2015 and 2016 CDE (energy development account) quota based on two consumer-friendly injunctions issued in 2018 and 2019 in the amount of R$223,340. (s) On October 3, 2019, the Extraordinary General Meeting approved (i) the payment of mandatory dividend in the amount of R$667 million, to be paid until December 31, 2019; (ii) the capital budget for the fiscal year of 2019; and (iii) withheld by the Company, the remaining amount of the net profit of 2018, of R$2,002 million, pursuant to article 196 of the Brazilian Corporation Law. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies (Policies) [Abstract] | |
Basis of preparation and presentation of the financial statements | 2.1 Basis of preparation and presentation of the financial statements The financial statements have been prepared under the historical cost convention and were adjusted, when necessary, to reflect the fair value of assets and liabilities. These consolidated financial statements are not equivalent to the statutory financial statements of the Company as issued under the requirements of the Brazilian jurisdiction. As the date of authorization for issue of these consolidated financial statements is different from the date when the consolidated financial statements were issued in Brazil, there are differences due to adjusting events after the reporting period, under IAS 10 - Events after the Reporting Period and a revision for a correction of immaterial error. The statutory financial statements (parent company and consolidated) for the year ended December 31, 2017 were authorized for issue on March 27, 2018, in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (“IFRS”), filed in the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - “CVM”) on March 28, 2018. The reconciliation between the statutory and these financial statements are presented below: December 31, Decription Caption in the statement of operations 2017 Profit for the year to the statutory financial statements 4,133,321 Additional disbursement the Leniency Agreement (note 23.3.a) Other income (expenses), net (375,476) Reversal of provision (note 35.r) Cost of products sold 223,340 Deferred income tax and social contribution Current and deferred income tax and social contribution (65,414) Profit for the year in these financial statements (filed in SEC) 3,915,771 Consequently, in the balance sheet there was a reduction in trade payables in current liabilities of R$223,340, an increase in the provision for leniency agreement in non-current liabilities of R$375,476, an increase in deferred income tax and social contribution in non-current liabilities of R$65,414 and a decrease in shareholders´ equity of R$ 217,550. The following paragraphs correspond to revisions in the balance sheet as of December 31, 2017 for the correction of errors. In Management´s assessment, these reclassifications do not represent a material misstatement and were recorded in these financial statements for better comparability and presentation of the amounts, as follow: At the year ended December 31, 2017, for the foreign subsidiaries, the Company offset the advance on income taxes and VAT recoverable with the related provisions in these financial statements, in the amount of R$366,435. Accordingly, the captions Taxes recoverable and Taxes payable presented in the financial statements filed at CVM in the amounts of R$1,349,064 and R$1,261,204, respectively, have been revised and presented in these financial statements in the amounts of R$982,629 and R$894,769. At the year ended December 31, 2017, the Company offset the advances to suppliers with trade payables in the amount of R$206,874. Accordingly, the captions Inventories and Trade payables presented in the financial statements filed at CVM in the amounts of R$6,846,923 and R$5,265,670, respectively, have been revised and presented in these financial statements in the amounts of R$6,640,049 and R$5,058,796. The preparation of financial statements requires the use of certain estimates. It also requires Management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. Issue of these financial statements was authorized by the Executive Board on October 7, 2019. 2.1.1 Consolidated financial statements The consolidated financial statements were prepared and presented in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). All relevant information pertaining exclusively to these financial statements is presented herein and corresponds to the information used by the Management of the Company. (a) Consolidation The consolidated financial statements comprise the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2017 2016 2015 Direct and Indirect subsidiaries Alclor Química de Alagoas Ltda ("Alclor") (i) Brazil 100.00 100.00 Braskem America Finance Company ("Braskem America Finance") EUA 100.00 100.00 100.00 Braskem America, Inc. (“Braskem America”) EUA 100.00 100.00 100.00 Braskem Argentina S.A. (“Braskem Argentina”) Argentina 100.00 100.00 100.00 Braskem International GmbH ("Braskem Austria") (ii) Austria 100.00 100.00 100.00 Braskem Austria Finance GmbH ("Braskem Austria Finance") (iii) Austria 100.00 100.00 Braskem Europe GmbH ("Braskem Alemanha") Germany 100.00 100.00 100.00 Braskem Finance Limited (“Braskem Finance”) Cayman Islands 100.00 100.00 100.00 Braskem Idesa S.A.P.I. ("Braskem Idesa") Mexico 75.00 75.00 75.00 Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") Mexico 75.00 75.00 75.00 Braskem Incorporated Limited ("Braskem Inc") Cayman Islands 100.00 100.00 100.00 Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") Mexico 100.00 100.00 100.00 Braskem Mexico, S. de RL de CV ("Braskem México") Mexico 100.00 100.00 100.00 Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") Mexico 100.00 100.00 100.00 Braskem Netherlands B.V. ("Braskem Holanda") Netherlands 100.00 100.00 100.00 Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) Netherlands 100.00 100.00 100.00 Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) Netherlands 100.00 100.00 100.00 Braskem Petroquímica Chile Ltda. (“Braskem Chile”) Chile 100.00 100.00 100.00 Braskem Petroquímica Ltda. ("Braskem Petroquímica") (iv) Brazil 100.00 100.00 Quantiq (v) Brazil 100.00 IQAG (v) Brazil 100.00 Cetrel (vi) Brazil 63.66 Distribuidora de Água Camaçari S.A. ("DAC") (vii) Brazil 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) (viii) Brazil 100.00 100.00 Fundo de Investimento Caixa Júpiter Multimercado Brazil 100.00 100.00 100.00 (i) Merged into the subsidiary Braskem Petroquímica in April 2016. (ii) Terminated in June 2018. (iii) Terminated in January 2016. (iv) Merged into the Braskem in December 2017. (v) Sold in April 2017 (Note 5). (vi) Acquired on October 2, 2017. (vii) Wholly-owned subsidiary of Cetrel. (viii) Contract terminated in 2016. |
Foreign currency translation | 2.2 Foreign currency translation (a) Functional and presentation currency The functional and presentation currency of the Company is the real. (b) Functional currency other than the Brazilian real Certain subsidiaries have a different functional currency from that of the Braskem S.A., as follows: Functional currency Subsidiaries Braskem Alemanha, Braskem Austria e Braskem Austria Finance Euro Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso The other subsidiaries adopt the Brazilian real as functional currency. (c) Exchange variation effects The main effects from exchange variation on the Company's transactions that impacted these financial statements are shown below: End of year rate at December 31 Average rate Variation 2017 2016 Variation 2017 2016 2015 2017 - 2016 2016 - 2015 U.S. dollar - Brazilizan real 3.3080 3.2591 1.50% 3.1925 3.4833 3.3387 -0.0835 4.33% U.S. dollar - Mexican peso 19.6890 20.6352 -4.59% 18.9142 18.6987 15.8846 0.0115 17.72% U.S. dollar - Euro 0.8464 0.9479 -10.71% 0.8871 0.9041 0.9019 -0.0189 0.24% |
New or revised pronouncements that are not yet effective | 2.3 New or revised pronouncements that are not yet effective Several new standards will be effective for fiscal years beginning after January 1, 2018. The Company did not early adopt these changes while preparing its financial statements. (a) Adoption of “IFRS 9 - Financial Instruments”, and “IFRS 15 - Revenue from Contracts with Customers” The Company is obliged to adopt “IFRS 9 - Financial Instruments” and “IFRS 15 - Revenue from Contracts with Customers” starting from January 1, 2018. The Company has already assessed the impact of the initial application of IFRS 9 (Note 2.3(a.1)) and IFRS 15 (Note 2.3(a.2)) on its consolidated financial statements. The total adjustment (net of taxes) on the opening balance of the shareholders' equity under “Retained earnings” of the Company on January 1, 2018, is a reduction of R$9,989. The component relating to the estimated adjustment is the change in the methodology for calculating impairment pursuant and in the classification and measurement of the financial assets, according to IFRS 9. As presented on December 31, 2017 Adjustments estimated at the adoption of IFRS 9 Adjusted opening balance estimated on January 1, 2018 Accumulated losses (217,550) (9,989) (227,539) Non-controlling (827,501) (827,501) (1,045,051) (9,989) (1,055,040) (a.1) IFRS 9 - Financial Instruments IFRS 9 - Financial Instruments establishes requirements for recognition and measurement of financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 - Financial Instruments: Recognition and Measurement. (a.1.i) Classification - Financial Assets IFRS 9 has a new approach for the classification and measurement of financial assets, that reflects the business model in which assets are managed and its cash flow characteristics. IFRS 9 has three main classification categories for financial assets: measured at amortized cost (“AC”), at fair value through other comprehensive income (“FVTOCI”) and at fair value through profit and loss (“FVTPL”). The standard IAS 39 classifications of held-to-maturity, loans and receivables and available-for-sale. IFRS 9 requires the classification of financial assets based on business model of the equity for managing their financial assets. Pursuant to IFRS 9, derivatives in contracts where the host is a financial asset under the standard's scope are never separated. Instead, the hybrid financial instrument is assessed in its entirety for classification. Based on its assessment, the Company did not have a significant impact on the accounting of its financial investments resulted from new requirements of IFRS 9. However, because some trade receivables are sold to financial institutions and derecognized before the maturity date (Note 8), the Company classified part of its trade accounts receivables that can be sold at fair value under FVTOCI. The effect of this new classification on January 1, 2018 is R$601. The following table and corresponding notes explain the original measurement categories, in accordance with IAS 39 and the new categories of measurement in accordance with IFRS 9, for each class of financial asset on January 1, 2018. The effect from the adoption of IFRS 9 on the accounting balance of financial assets as of January 1, 2018 is related to the following: (i) New impairment calculation methodology (ii) Calculation of the fair value for receivables that, in accordance with the Company's Business Model, may be sold before their maturities. Classification by category Book value IAS 39 IFRS 9 IAS 39 IFRS 9 Cash and cash equivalents Cash and banks Loans and receivables Amortized cost 1,428,766 1,428,766 Financial investments in Brazil Loans and receivables Fair value through profit or loss 1,706,784 1,706,784 Financial investments abroad Held-for-trading Fair value through profit or loss 639,543 639,543 3,775,093 3,775,093 Financial investments LFT's and LF's Held-for-trading Fair value through profit or loss 1,816,889 1,816,889 Time deposit investments Loans and receivables Amortized cost 440,616 440,616 Time deposit investments Held-for-trading Fair value through profit or loss 15,764 15,764 Other Held-for-trading Fair value through profit or loss 39,739 39,739 2,313,008 2,313,008 Trade accounts receivable Loans and receivables Amortized cost 3,244,851 3,235,463 Trade accounts receivable Loans and receivables Fair value through other comprehensive income 73,841 73,240 Derivatives Financial assets measured at fair value Fair value through profit or loss 74,378 74,378 (a.1.ii) Impairment - Financial and Contractual Assets IFRS 9 replaced the “incurred loss” model of IAS 39 for a prospective model of "expected credit losses." This requires a relevant judgment regarding the way in which changes in economic factors affect the expected credit losses, which are determined based on weighted probabilities. The new expected losses model will apply to financial assets measured at AC or FVTPL, excluding investments in equity instruments and contractual assets. According to IFRS 9, provisions for expected losses are measured using one of the following bases: The 12-month expected credit losses, i.e. (expected credit losses from possible default events within 12 months after the reporting date, and whose credit risk does not increase significantly since initial recognition); and The full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). The measurement of these credit losses applies when the credit risk of a financial asset at the reporting date has increased significantly since initial recognition. The Company's assessment indicated that the adoption of the expected credit loss model as required by IFRS 9 on January 1, 2018, in a reduction of R$9,388, net of taxes. The Company expected credit losses, according to IFRS 9, are determined based on the following stages: Stage 1 - when the securities are still performing at this stage, expected credit losses are calculated based on the actual experience of credit loss (write-off) over the last five years, segregating customers in accordance with their Operating Risk. Stage 2 - when there is deterioration in the credit risk of the customer since the initial recognition; at this stage, the Company considers as deterioration of credit risk any credits that were renegotiated and that must be collected in court, regardless of their maturity. Stage 3 - includes financial assets that have objective evidence of impairment; the trigger for evidence of impairment is an unprecedented delay of more than 90 days. (a.1.iii) Hedge Accounting While applying IFRS 9, the Company can, as an accounting policy, choose to continue applying the hedge accounting requirements of the IAS 39, instead of the new IFRS 9 requirements. The Company chose to apply the new requirements of IFRS 9. IFRS 9 requires the Company to ensure that hedge accounting relationships are aligned with the Company's risk management objectives and strategies, and that a more qualitative and prospective approach is applied to assess hedge effectiveness. IFRS 9 also introduces new requirements for rebalancing hedge relations and prohibits the voluntary discontinuation of hedge accounting. Upon adopting IFRS 9, the Company elected to account for changes to fair value of forward points separately, as hedge cost. Thus, as of January 1, 2018, these changes are recognized in other comprehensive income (loss) and accrued in a hedge cost reserve as a separate component in equity and subsequently accounted in the same way as cumulative gains or losses in the cash flow hedge reserve. The types of hedge accounting relations presently designated by the Company meet IFRS 9 and are aligned with the organization's risk management objective and strategy. (a.1.iv) Transition The changes in accounting policies stemming from the adoption of IFRS 9 will be applied prospectively, including: Allowed exemption to not restate comparative information from prior periods due to changes in classification and measurement financial instruments, including expected credit losses. New requirements for hedge accounting. The following assessments must be made based on facts and circumstances in place on the adoption date: o Determination of business model in which the financial asset is held. o Designation and revoking of prior designations of specific financial assets and liabilities measured at FVTPL. (a.2) IFRS 15 - Revenue from Contracts with Customers IFRS 15 introduces a comprehensive framework to determine if and when revenue must be recognized, and by how much the revenue is measured. IFRS 15 replaces the standards IAS 18 - Revenue. (a.2.i) Sales The Company assessed that in its sales may have two distinct performance obligations between the Company and its customers, which are: Delivery the sold product - the performance obligation ends when the ownership of the good is transferred to the client. For the Company, there is no difference between IAS 18 - Revenue and IFRS 15 related to the revenue recognition date associated with this performance obligation. Contracting freight to the deliver goods - the performance obligation of the Company to contract freight to deliver the goods sold ends when the service is completed. For this performance obligation, considering that the Company acts as the principal of the operation and the effect of the difference in the moment of recognition of the portion of revenue allocated to the freight does not significantly affect the result of the year, such revenue will not be presented separately in the Company's financial statements. (a.2.ii) Variable compensation (rebates and discounts) The Company adopts the practice of contracting, with certain client bonuses for achieving sales targets. For clients which the Company expects will meet such targets and accordingly will receive a bonus are accrued the amounts due on a monthly basis. This provision, which until December 31, 2017, is recognized as a deduction from sales revenue, will be disclosed from January 1, 2018, as a deductible amount direct over gross revenue (Note 27). The Company considers commercial discounts included on client invoices as part of the fair value of the revenue recognized, according to the established accounting standard applicable until December 31, 2017 (IAS 18). Therefore, the commercial discounts included on client invoices will not have any changes as a result of the adoption or measurement of its accounting recognition in accordance with IFRS 15. (a.2.iii) Disclosures IFRS 15 requires new disclosures that, according to the differences, identified and presented above, does not have significant changes in relation to current Company's disclosures. (a.2.iv) Transition The Company adopted IFRS 15 using the cumulative effect method, with initial application of the standard on the initial date (that is January 1, 2018). As a result, the Company will not apply the requirements of IFRS 15 to the comparative period reported. Apart from the aforementioned reporting changes for rebates for the achievement of revenue targets, the Company does not have any change in the timing and measurement of its revenue. (b) Adoption of “IFRS 16 - Leases” and “IFRIC 23 - Uncertainty on Income Tax Treatment” (b.1) IFRS 16 - Leases The Company is obliged to adopt “IFRS 16 - Leases” starting from January 1, 2019. This pronouncement replaces previous standards on leases, including IAS 17 - Leases and the corresponding interpretations, such as IFRIC 4, SIC 15 and SIC 27. The standard introduces a single and standardized model for the accounting of leases in the balance sheet of the lessees, in which it recognizes a right-of-use asset representing the right to use the lease asset and a lease liability that represents the obligation to pay the lease are recognized. Exemptions from recognition will be allowed for low-value and short-term contracts. In addition, the expenses related to these leases are no longer linear operating lease expense, going in accordance with IFRS 16 to be a cost of depreciation of use rights assets and interest expense on lease obligations. The definition of leasing includes all contracts that entitle the use and control of an identifiable asset, including lease contracts and, potentially, some components of service agreements. The variable elements of the payments related to leases (e.g., a machinery and/or equipment rental contract with part of the payments based on the asset's productivity) are not considered in the calculation of the liability, and are recorded as operating expenses. The Company will make the transition using the modified retrospective approach, i.e., it will apply the requirements of the commercial lease standard to all existing agreements on the initial adoption date, i.e. January 1, 2019. Therefore, information and balances will not be restated for comparison purposes. The new accounting standard provides practical expedients whose election is optional. The Company intends to adopt the following accounting policies during the transition: · Not to revaluate whether the contract is or contains any lease on the initial adoption date. Instead, will apply IAS 17 to agreements that have been previously identified as leases, using IAS 17 and IFRIC 4; · Opt not to separate non-lease components from lease components, considering them, therefore, as a single lease component; · Not to record contracts with terms above 12 months, that at the transition date, will end within 12 months as from the initial adoption date; · Not to record low-value agreements (R$30 for the company in Brazil or US$10 for foreign subsidiares), in accordance with the policy defined by the Management. · Exclude the initial costs with measuring the asset from the right of use on the initial adoption date; · Use hindsight, such as determining the term of the lease, if the contract contains options to postpone or terminate the lease, among others; and · Apply a single discount rate to the lease portfolio with reasonably similar characteristics (such as leases with similar remaining lease terms, for a similar class of underlying asset in a similar economic environment and similar financing currencies - “portfolios”). In this context, the Company expects the initial adoption of IFRS 16 to affect its financial statements and internal processes. The most significant impacts are related to: (1) recognition of new assets of right-of-use assets and lease liabilities in the balance sheet; (2) the disclosure of new significant information on lease activities. The Company does not expect significant changes in lease activities in the period between the publication of these financial statements and the date of initial adoption. The effects expected as of January 1, 2019 are as follows: Recognition of additional liabilities estimated between R$1,700,000 and R$1,900,000, as corresponding entries to the recognition of right-of-use assets. The amounts reflect the present value of the remaining minimum payments of the rent of existing operating leases; The agreements that are exempt from recognition because they are short term and/or low value amount to an annual operating expense of approximately R$85,000. Such recognition has no impact on the Company's results. Furthermore, as of the reporting date of these Financial Statements, the Company is developing processes and controls to meet the new requirements. (b.2) IFRIC 23 - Uncertainty on Income Tax Treatment The new interpretation, that Company is obliged to adopt starting from January 1, 2019, establishes requirements for recognition and measurement in situations where the Company has determined, during the process of calculating taxes on net income (income tax and social contribution), the use of tax treatments that could be construed as uncertain and, therefore, could be questioned by the tax authorities. The management is assessing the impacts of this interpretation. |
Change in accounting policy and restatement of the statement of operations | 2.4 Change in accounting policy and restatement of the statement of operations Change in accounting policy (a) The Management of Braskem decided to change, in the statement of cash flows, the presentation of interest paid, which previously was presented under the group referred to as “cash used in investment activities.” These expenses are now recorded under the item “interest paid.” This change enables: (i) the direct identification of the total amount paid as interest; and (ii) greater accuracy in determining the net cash from operations. The amounts reclassified in the period ended December 31, 2016 and 2015 were R$288,424 and R$786,063, respectively. (b) In 2017, the Company changed the classification of provision for profit sharing to standardize such classification among all companies, whether or not productive, and because it deemed the current classification more appropriate, since this provision does not present recurring elements or, even when recurring, the amounts differ from year to year. In the fiscal year ended December 31, 2016 and 2015, the amounts related to this item were reclassified from “costs of goods sold” (2016 - R$163,056, 2015 - R$165,522), “selling and distribution expenses” (2016 - R$7,155, 2015 - R$5,848) and “general and administrative expenses” (2016 - R$191,586, 2015 - R$185,067) to the item “other income (expenses), net” (Note 29). Restatement of the Statement of Operations (a) The amounts corresponding to the Statement of Operations for the year 2016 and 2015 are restated in compliance with IAS 8 - Accounting policies, changes in accounting estimates and errors for better comparability and presentation of the amounts. The Company is presenting the amount of "Costs of idle industrial plants" for the year 2016 and 2015, reclassified from "Other income (expenses), net". The amounts reclassified in the period ended December 31, 2016 and 2015 were R$208,006 and R$135,341, respectively. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operations (Tables) [Abstract] | |
Summary of Main Assets Acquired and Liabilities Assumed | The net assets at the acquisition date are composed of the following main items: Balance (i) Current and non-current assets Cash and cash equivalents 1,819 Financial investments 35,186 Trade accounts receivable 55,055 Inventories 8,152 Deferred income tax and social contribution 106,760 Property, plant and equipment 287,905 Intangible assets 52,556 Other assets 25,852 573,285 Current and non-current liabilities Trade payables 16,019 Borrowings 18,485 Debentures 317,960 Other liabilities 29,787 382,251 Net assets (assets (-) liabilities) 191,034 |
Summary of Reconciliation of Changes in Goodwill | The following table summarizes the consideration paid to Odebrecht Utilities on the acquisition date and book value of the net assets acquired: Balance (i) Consideration Acquisition of 1,269,290 shares (63.66% of the capital) 610,000 (A) Total consideration transferred 610,000 % of participation 100.00% 63.66% (B) Cetrel's shareholders' equity on September 30. 2017 191,034 121,612 Result (A) - (B) (ii) 488,388 (i) Amounts based on September 30 balances, reflecting the transaction occurring on October, 2017. (ii) Difference between the consideration given and the aggregate book value of the assets and liabilities of the acquired entity. (iii) On June 2, 2017, the Board of Directors approved the construction of a new polypropylene production unit in La Porte, Texas, United States. The total investment is up to approximately US$675 million for 450 kta in production capacity. The conclusion of the construction of this project and the start of its operations is expected in 2020. (iv) On January 9, 2017, the Board of Directors approved the sale of the subsidiaries Quantiq Distribuidora Ltda (“Quantiq”) and IAQG Armazéns Gerais Ltda (“IQAG”) in the amount of R$550 million, and on April 3, 2017 the transfer of control to the buyer company was concluded (Note 5). |
Summary of significant accoun_2
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies (Tables) [Abstract] | |
Reconciliation between the statutory and these financial statements | The reconciliation between the statutory and these financial statements are presented below: December 31, Decription Caption in the statement of operations 2017 Profit for the year to the statutory financial statements 4,133,321 Additional disbursement the Leniency Agreement (note 23.3.a) Other income (expenses), net (375,476) Reversal of provision (note 35.r) Cost of products sold 223,340 Deferred income tax and social contribution Current and deferred income tax and social contribution (65,414) Profit for the year in these financial statements (filed in SEC) 3,915,771 |
Schedule of restated financial statements of Braskem S.A. and following entities | The consolidated financial statements comprise the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2017 2016 2015 Direct and Indirect subsidiaries Alclor Química de Alagoas Ltda ("Alclor") (i) Brazil 100.00 100.00 Braskem America Finance Company ("Braskem America Finance") EUA 100.00 100.00 100.00 Braskem America, Inc. (“Braskem America”) EUA 100.00 100.00 100.00 Braskem Argentina S.A. (“Braskem Argentina”) Argentina 100.00 100.00 100.00 Braskem International GmbH ("Braskem Austria") (ii) Austria 100.00 100.00 100.00 Braskem Austria Finance GmbH ("Braskem Austria Finance") (iii) Austria 100.00 100.00 Braskem Europe GmbH ("Braskem Alemanha") Germany 100.00 100.00 100.00 Braskem Finance Limited (“Braskem Finance”) Cayman Islands 100.00 100.00 100.00 Braskem Idesa S.A.P.I. ("Braskem Idesa") Mexico 75.00 75.00 75.00 Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") Mexico 75.00 75.00 75.00 Braskem Incorporated Limited ("Braskem Inc") Cayman Islands 100.00 100.00 100.00 Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") Mexico 100.00 100.00 100.00 Braskem Mexico, S. de RL de CV ("Braskem México") Mexico 100.00 100.00 100.00 Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") Mexico 100.00 100.00 100.00 Braskem Netherlands B.V. ("Braskem Holanda") Netherlands 100.00 100.00 100.00 Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) Netherlands 100.00 100.00 100.00 Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) Netherlands 100.00 100.00 100.00 Braskem Petroquímica Chile Ltda. (“Braskem Chile”) Chile 100.00 100.00 100.00 Braskem Petroquímica Ltda. ("Braskem Petroquímica") (iv) Brazil 100.00 100.00 Quantiq (v) Brazil 100.00 IQAG (v) Brazil 100.00 Cetrel (vi) Brazil 63.66 Distribuidora de Água Camaçari S.A. ("DAC") (vii) Brazil 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Multimercado Crédito Privado Sol (“FIM Sol”) (viii) Brazil 100.00 100.00 Fundo de Investimento Caixa Júpiter Multimercado Brazil 100.00 100.00 100.00 (i) Merged into the subsidiary Braskem Petroquímica in April 2016. (ii) Terminated in June 2018. (iii) Terminated in January 2016. (iv) Merged into the Braskem in December 2017. (v) Sold in April 2017 (Note 5). (vi) Acquired on October 2, 2017. (vii) Wholly-owned subsidiary of Cetrel. (viii) Contract terminated in 2016. |
Schedule of subsidiaries have functional currency from Braskem S.A. | Certain subsidiaries have a different functional currency from that of the Braskem S.A., as follows: Functional currency Subsidiaries Braskem Alemanha, Braskem Austria e Braskem Austria Finance Euro Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem México Sofom U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso |
Schedule of Exchange variation effects | The main effects from exchange variation on the Company's transactions that impacted these financial statements are shown below: End of year rate at December 31 Average rate Variation 2017 2016 Variation 2017 2016 2015 2017 - 2016 2016 - 2015 U.S. dollar - Brazilizan real 3.3080 3.2591 1.50% 3.1925 3.4833 3.3387 -0.0835 4.33% U.S. dollar - Mexican peso 19.6890 20.6352 -4.59% 18.9142 18.6987 15.8846 0.0115 17.72% U.S. dollar - Euro 0.8464 0.9479 -10.71% 0.8871 0.9041 0.9019 -0.0189 0.24% |
Schedule of adjustment (net of taxes) on the opening balance of the shareholders' equity under “Retained earnings” | The total adjustment (net of taxes) on the opening balance of the shareholders' equity under “Retained earnings” of the Company on January 1, 2018, is a reduction of R$9,989. The component relating to the estimated adjustment is the change in the methodology for calculating impairment pursuant and in the classification and measurement of the financial assets, according to IFRS 9. As presented on December 31, 2017 Adjustments estimated at the adoption of IFRS 9 Adjusted opening balance estimated on January 1, 2018 Accumulated losses (217,550) (9,989) (227,539) Non-controlling (827,501) (827,501) (1,045,051) (9,989) (1,055,040) |
Effect from the adoption of IFRS 9 | (ii) Calculation of the fair value for receivables that, in accordance with the Company's Business Model, may be sold before their maturities. Classification by category Book value IAS 39 IFRS 9 IAS 39 IFRS 9 Cash and cash equivalents Cash and banks Loans and receivables Amortized cost 1,428,766 1,428,766 Financial investments in Brazil Loans and receivables Fair value through profit or loss 1,706,784 1,706,784 Financial investments abroad Held-for-trading Fair value through profit or loss 639,543 639,543 3,775,093 3,775,093 Financial investments LFT's and LF's Held-for-trading Fair value through profit or loss 1,816,889 1,816,889 Time deposit investments Loans and receivables Amortized cost 440,616 440,616 Time deposit investments Held-for-trading Fair value through profit or loss 15,764 15,764 Other Held-for-trading Fair value through profit or loss 39,739 39,739 2,313,008 2,313,008 Trade accounts receivable Loans and receivables Amortized cost 3,244,851 3,235,463 Trade accounts receivable Loans and receivables Fair value through other comprehensive income 73,841 73,240 Derivatives Financial assets measured at fair value Fair value through profit or loss 74,378 74,378 |
Application of critical estim_2
Application of critical estimates and judgments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Application of critical estimates and judgments (Tables) [Abstract] | |
Schedule of useful lives applied to the assets determined average depreciation and depletion rates | The useful lives applied to the assets determined the following average (%) depreciation and depletion rates: 2017 2016 Buildings and improvements 3.36 3.49 Machinery, equipment and installations 8.34 9.34 Mines and wells 8.84 8.83 Furniture and fixtures 10.13 10.36 IT equipment 20.09 20.53 Lab equipment 9.56 9.65 Security equipment 9.77 9.78 Vehicles 17.51 22.72 Other 18.17 18.97 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risk management (Tables) [Abstract] | |
Schedule of financial liabilities by maturity calculated from undiscounted cash flows | The table below shows Braskem's financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 23.3). These amounts are calculated from undiscounted cash flows and may not be reconciled with the balance sheet. The Braskem Idesa's borrowings presents the original long-term maturities, excluding the reclassification to current liabilities arising from the breach of contractual obligations (Note 16). Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 5,119,937 259,737 5,379,674 Borrowings 1,256,574 3,963,839 6,708,910 24,520,093 36,449,416 Debentures 28,569 83,520 133,206 180,001 425,296 Braskem Idesa borrowings 820,282 1,832,863 2,250,575 7,616,260 12,519,980 Derivatives 6,875 6,875 Loan to non-controlling shareholder of Braskem Idesa 1,756,600 1,756,600 Leniency agreement (Note 23.3) 257,347 325,299 1,007,348 743,902 2,333,896 At December 31, 2017 7,489,584 6,465,258 10,100,039 34,816,856 58,871,737 |
Available-for-sale assets and_2
Available-for-sale assets and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Available-for-sale assets and discontinued operations (Tables) [Abstract] | |
Balance sheet from discontinued operations | (a) Balance sheet Assets and liabilities classified as held for sale Mar/2017 Dec/2016 Assets Cash and cash equivalents 40,216 76,146 Trade accounts receivable 119,076 65,626 Inventories 82,815 84,296 Taxes recoverable 46,858 45,859 Property, plant and equipment 61,591 61,037 Intangible assets 6,729 6,665 Other assets 17,932 20,075 Total assets 375,217 359,704 Liabilities Trade payables 75,852 62,692 Payroll and related charges 7,099 11,170 Dividends 6,371 6,371 Taxes payable 9,668 7,064 Other payables 3,043 8,099 Total liabilities 102,033 95,396 Net assets (Assets (-) Liabilities) 273,184 264,308 (b) Statement of operations |
Statement of operations from discontinued operations | Result with discontinued operations Mar/2017 Dec/2016 Dec/2015 Net sales revenue 212,238 830,754 874,702 Cost of products sold and services provided (176,957) (674,619) (702,696) Gross profit 35,281 156,135 172,006 Income (expenses) Selling and distribution (10,164) (45,938) (38,856) General and administrative (12,067) (77,258) (59,327) Other income (expenses), net (1,298) (608) (25,029) Operating profit 11,752 32,331 48,794 Financial results 1,747 8,429 (31,967) Profit before income tax and social contribution 13,499 40,760 16,827 Current and deferred income tax and social contribution (4,623) (13,901) (10,445) Result with discontinued operations 8,876 26,859 6,382 |
Cash flow from discontinued operations | (c) Cash flow 2016 2015 Profit before income tax and social contribution 40,760 16,827 Adjustments for reconciliation of profit Depreciation, amortization and depletion 5,428 5,639 Interest and monetary and exchange variations, net (867) 17,090 Other 93 61 45,414 39,617 Changes in operating working capital 41,642 (18,720) Cash from operations 87,056 20,897 Acquisitions to property, plant and equipment (5,491) (8,749) Other 214 Net cash used in investing activities (5,491) (8,535) Short-term and long-term debt Obtained 44,254 Payments (57,543) (2,121) Related parties Obtained 26,469 24,553 Payments (35,094) (24,646) Dividends paid (6,029) (2,380) Net cash provided (used) by financing activities (72,197) 39,660 Increase in cash and cash equivalents 9,368 52,022 Represented by Cash and cash equivalents at the beginning for the year 66,778 14,756 Cash and cash equivalents at the end for the year 76,146 66,778 Increase in cash and cash equivalents 9,368 52,022 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents (Tables) [Abstract] | |
Cash and cash equivalents | 6. Cash and cash equivalents 2017 2016 Cash and banks (i) 1,428,766 2,178,611 Cash equivalents: Domestic market 1,706,784 2,914,685 Foreign market (i) 639,543 1,608,568 Total 3,775,093 6,701,864 (i) On December 31, 2017, it includes cash and banks of R$247,285 (R$172,430 on December 31, 2016) and cash equivalents of R$47,400 (R$29,169 on December 31, 2016) of the subsidiary Braskem Idesa, available for use exclusively in its project. |
Financial investments (Tables)
Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial investments (Tables) [Abstract] | |
Financial investments | 7. Financial investments 2017 2016 Loans and receivables Time deposit investments (i) 440,616 434,015 Held-for-trading Time deposit investments 15,764 Letras financeiras do tesouro - LFT´s and Letras Financeiras - LF´s (ii) 1,816,889 755,712 Other 39,739 756 Total 2,313,008 1,190,483 Current assets 2,302,672 1,190,483 Non-current assets 10,336 Total 2,313,008 1,190,483 (i) This investment was given as guarantee to cover Braskem's obligation related to the constitution of a reserve account for the project finance of the subsidiary Braskem Idesa. The guarantee was withdrawn in April 2018 and this amount will become fully available. (ii) Government bonds held for trade refer to Brazilian floating-rate government bonds (“LFTs”) issued by the Brazilian federal government and floating-rate bonds (“LFs”) issued by financial institutions. These bonds have maturity above three months, immediate liquidity and expected realization in the short term. |
Trade accounts receivable (Tabl
Trade accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade accounts receivable (Tables) [Abstract] | |
Schedule of summary of trade accounts receivable | The Company's billing period is generally 30 days; therefore, the amount of the trade accounts receivable corresponds to their fair value. The Company realizes part of its trade accounts receivable through the sale of trade notes to funds and financial institutions that acquire receivables. These operations are not entitled to recourse and with substantial transfer of receivables risks and benefits, for which reason the trade notes are written-off at the moment of the operation. 2017 2016 Costumers Domestic market 1,459,623 869,306 Foreign market 2,209,094 1,215,626 Allowance for doubtful accounts (350,025) (380,559) Total 3,318,692 1,704,373 Current assets 3,281,196 1,634,137 Non-current assets 37,496 70,236 Total 3,318,692 1,704,373 |
Schedule of breakdown of trade accounts receivable by maturity | The breakdown of trade accounts receivable by maturity is as follows: 2017 2016 Accounts receivables not past due 2,886,546 1,668,063 Past due securities: Up to 90 days 567,590 173,125 91 to 180 days 3,673 15,325 As of 180 days 210,908 228,419 3,668,717 2,084,932 Allowance for doubtful accounts (350,025) (380,559) Total customers portfolio 3,318,692 1,704,373 |
Schedule of changes in balance of allowance for doubtful accounts | The changes in the allowance for doubtful accounts are presented below: 2017 2016 Balance of provision at the beginning of the year (380,559) (327,974) Provision in the year 18,573 (102,065) Write-offs 22,878 38,499 Addition through merger of Cetrel (10,917) Transfers (of) to non-current assets held for sale 10,981 Balance of provision at the end of the year (350,025) (380,559) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories (Tables) [Abstract] | |
Schedule of summary of inventories | 9. Inventories 2017 2016 Finished goods 4,255,114 3,444,898 Raw materials, production inputs and packaging 1,715,757 1,407,399 Maintenance materials 365,803 312,167 Advances to suppliers 275,169 103,267 Imports in transit and other 74,670 31,816 Total 6,686,513 5,299,547 In current assets 6,640,049 5,238,014 In non-current assets 46,464 61,533 Total 6,686,513 5,299,547 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related parties (Tables) [Abstract] | |
Schedule of Balance sheet for associated companies, jointly-controlled investment and related companies | 10. Related parties Balance sheet for associated companies, jointly-controlled investment and related companies 2017 2016 Odebrecht and Petrobras and Odebrecht and Petrobras and Balance sheet subsidiaries subsidiaries Other Total subsidiaries subsidiaries Other Total Assets Current Trade accounts receivable 7,634 45,184 60,502 113,320 5,634 33,843 28,390 67,867 Inventories 250,904 (i) 118 251,022 5,434 5,434 Dividends and interest on capital 10,859 10,859 14,986 14,986 Other 50 50 Total assets 258,538 45,302 71,361 375,201 5,684 39,277 43,376 88,337 Liabilities Current Trade payables 21,530 149,058 700 171,288 77,461 904,090 1,226 982,777 Other receivables 2,338 562 7,591 10,491 Total liabilities 23,868 149,620 8,291 181,779 77,461 904,090 1,226 982,777 (i) Note 10(b.i and b.ii) |
Schedule of Transactions between associated companies, jointly-controlled investment and related companies | Transactions between associated companies, jointly-controlled investment and related companies 2017 2016 2015 Odebrecht and Petrobras and Odebrecht and Petrobras and Odebrecht and Petrobras and subsidiaries subsidiaries Other Total subsidiaries subsidiaries Other Total subsidiaries subsidiaries Other Total Transactions Sales of products 27,467 1,810,789 629,302 2,467,558 49,051 2,023,815 562,709 2,635,575 64,093 1,620,335 475,836 2,160,264 Purchases of raw materials, finished goods services and utilities 742,161 12,795,819 5,664 13,543,644 1,564,103 (ii) 12,291,190 56,170 13,911,463 3,692,625 (ii) 12,488,618 108,688 16,289,931 Financial income (expenses) 2,056 (39,433) (37,377) (21) 6,452 6,431 6,723 6,723 General and administrative expenses Post-employment benefits plan ("EPE") Odebrecht Previdência Privada ("Odeprev") 36,725 36,725 41,845 41,845 44,466 44,466 Acquisition of subsidiary 610,000 1(a.ii) 610,000 (i) 10(a.i) and (a.ii); (ii) Includes expenses with the Braskem Idesa project, in the amount of R$734,263 related to the fiscal year ended December 31, 2016 and R$3,177,121 related to the fiscal year ended December 31, 2015. |
Schedule of Key management personnel | (b) Key management personnel Income statement transactions 2017 2016 2015 Remuneration Short-term benefits 60,303 44,277 46,562 Post-employment benefit 664 515 272 Total 60,967 44,792 46,834 |
Taxes recoverable (Tables)
Taxes recoverable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxes recoverable (Tables) [Abstract] | |
Schedule of summary of taxes recoverable | 11. Taxes recoverable 2017 2016 2015 Adjusted Brazil IPI 18,226 38,909 23,996 Value-added tax on sales and services (ICMS) - normal operations (a) 483,248 495,339 403,842 ICMS - credits from PP&E 140,904 125,145 121,954 Social integration program (PIS) and social contribution on revenue 22,389 32,823 69,431 PIS and COFINS - credits from PP&E 223,297 253,503 230,030 Income tax and social contribution (IR and CSL) (b) 691,697 605,058 958,567 REINTEGRA program (c) 102,166 53,129 274,654 Federal supervenience (d) 140,537 155,533 173,436 Other 4,322 1,046 14,281 Foreign subsidiaries Value-added tax ("IVA") 92,119 132,152 277,751 Income tax (IR) 46,939 19,103 80,600 Other 4,021 2,628 1,559 Total 1,969,865 1,914,368 2,630,101 Current assets 982,629 826,015 1,312,341 Non-current assets 987,236 1,088,353 1,317,760 Total 1,969,865 1,914,368 2,630,101 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments (Tables) [Abstract] | |
Schedule of information on investments | (a) Information on investments Interest in total Net profit (loss) and voting for the year Equity capital (%) - 2017 2017 2016 2015 2017 2016 Jointly-controlled investment RPR 33.20 106,109 86,682 24,784 201,038 175,896 Odebrecht Comercializadora de Energia S.A. ("OCE") 20.00 (543) (5,720) 10,490 5,178 5,721 Associates Borealis 20.00 17,752 10,538 (3,914) 166,630 162,629 (b) Changes in investments |
Schedule of changes in investments | Dividends Provision Equity Balance at and interest Effect for losses/ valuation Balance at Dec/2016 Incorporations on equity of results other adjustments Dec/2017 Associates Borealis 32,526 (3,793) 4,592 33,325 32,526 (3,793) 4,592 33,325 Jointly-controlled investments OCE 1,145 (109) 1,036 RPR 58,404 (30,960) 35,230 4,078 66,752 Other 238 28 (121) 145 59,787 28 (30,960) 35,121 (121) 4,078 67,933 Total 92,313 28 (34,753) 39,713 (121) 4,078 101,258 |
Schedule of information from partially owned subsidiary - Balance sheet | In compliance with IFRS 12, the Company is presenting the financial statements of the subsidiary in which the non-controlling shareholder holds interest, with material effects on the Company's consolidated statements. Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated (i) Eliminations Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 Assets Curent Cash and cash equivalents 3,480,407 6,500,265 294,686 201,600 3,775,093 6,701,865 Financial investments 2,302,672 1,190,483 2,302,672 1,190,483 Trade accounts receivable 2,809,034 1,455,893 620,531 247,465 (148,369) (69,221) 3,281,196 1,634,137 Inventories 6,293,324 4,862,571 346,725 375,443 6,640,049 5,238,014 Taxes recoverable 919,600 710,982 63,029 115,033 982,629 826,015 Other receivables 392,750 278,865 44,630 27,169 437,380 306,034 16,197,787 14,999,059 1,369,601 966,710 (148,369) (69,221) 17,419,019 15,896,548 Non-current assets held for sale 359,704 359,704 16,197,787 15,358,763 1,369,601 966,710 (148,369) (69,221) 17,419,019 16,256,252 Non-current Taxes recoverable 987,184 1,088,304 52 49 987,236 1,088,353 Deferred tax 129,469 189,613 1,036,257 1,463,502 1,165,726 1,653,115 Related parties 5,051,706 4,690,672 (ii) (5,051,706) (4,690,672) Other receivables 637,549 648,511 33,207 29,823 670,756 678,334 Property, plant and equipment 19,180,263 18,814,175 11,228,346 11,171,400 (iii) (646,999) (648,865) 29,761,610 29,336,710 Intangible 2,575,567 2,667,708 151,930 141,379 2,727,497 2,809,087 28,561,738 28,098,983 12,449,792 12,806,153 (5,698,705) (5,339,537) 35,312,825 35,565,599 Total assets 44,759,525 43,457,746 13,819,393 13,772,863 (5,847,074) (5,408,758) 52,731,844 51,821,851 Liabilities and shareholders' equity Current Trade payables 5,047,293 6,335,452 159,872 278,905 (148,369) (69,221) 5,058,796 6,545,136 Borrowings 1,184,781 2,594,463 1,184,781 2,594,463 Debentures 27,183 27,183 Braskem Idesa Borrowings 9,691,450 10,437,791 9,691,450 10,437,791 Payroll and related charges 609,883 540,405 20,634 22,050 630,517 562,455 Taxes payable 881,702 611,231 13,067 12,849 894,769 624,080 Other payables 1,019,346 2,053,031 57,581 125,955 1,076,927 2,178,986 8,770,188 12,134,582 9,942,604 10,877,550 (148,369) (69,221) 18,564,423 22,942,911 Non-current liabilities held for sale 95,396 95,396 8,770,188 12,229,978 9,942,604 10,877,550 (148,369) (69,221) 18,564,423 23,038,307 Non-current Loan agreements 22,176,640 20,736,604 22,176,640 20,736,604 Braskem Idesa Borrowings 286,141 286,141 Accounts payable to related parties 5,065,971 4,698,881 (ii) (5,065,971) (4,698,881) Non-controlling loan in Braskem Idesa (v) 1,756,600 1,620,519 1,756,600 1,620,519 Provision for losses on subsidiaries 2,689,769 3,053,637 (iv) (2,689,769) (3,053,637) Other payables 4,467,398 4,698,937 7,842 6,774 4,475,240 4,705,711 29,619,948 28,489,178 6,830,413 6,326,174 (7,755,740) (7,752,518) 28,694,621 27,062,834 Shareholders' equity Attributable to the Company's shareholders 6,300,300 2,738,590 (2,953,624) (3,430,861) 2,953,625 3,430,861 6,300,301 2,738,590 Non-controlling interest in Braskem Idesa 69,089 (896,590) (1,017,880) (827,501) (1,017,880) 6,369,389 2,738,590 (2,953,624) (3,430,861) 2,057,035 2,412,981 5,472,800 1,720,710 Total liabilities and shareholders' equity 44,759,525 43,457,746 13,819,393 13,772,863 (5,847,074) (5,408,758) 52,731,844 51,821,851 (i) Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Serviços. (ii) Loan from Braskem Holanda as part of shareholders' contribution to the Braskem Idesa project. (iii) Adjustment corresponding to the capitalization of a portion of financial charges of the abovementioned loan. (iv) Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. (v) Loan owed to the non-controlling shareholder as part of shareholders' contribution to the project. |
Schedule of information from partially owned subsidiary - Statement of operations | Statement of operations Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 Adjusted Adjusted Adjusted Net sales revenue 46,207,109 46,343,171 3,656,801 1,495,018 (603,316) (174,201) 49,260,594 47,663,988 Cost of products sold (34,675,494) (34,040,770) (2,125,031) (1,109,020) 623,117 164,221 (36,177,408) (34,985,569) 11,531,615 12,302,401 1,531,770 385,998 19,801 (9,980) 13,083,186 12,678,419 Income (expenses) Selling and distribution (1,287,817) (1,286,558) (171,791) (117,115) (1,459,608) (1,403,673) General and administrative (1,336,072) (1,201,489) (122,043) (123,855) 23,843 39,731 (1,434,272) (1,285,613) Research and development (167,456) (162,010) (167,456) (162,010) Results from equity investments 191,949 (923,096) (151,993) 953,174 39,956 30,078 Other income (expenses), net (887,185) (3,913,567) 32,305 7,613 (854,880) (3,905,954) 8,045,034 4,815,681 1,270,241 152,641 (108,349) 982,925 9,206,926 5,951,247 Financial results Financial expenses (3,044,668) (3,054,334) (973,952) (688,868) 271,403 172,240 (3,747,217) (3,570,962) Financial income 850,367 955,423 24,666 3,193 (271,403) (268,494) 603,630 690,122 Exchange rate variations, net (936,804) (2,115,993) 132,186 (1,094,424) 5,856 (798,762) (3,210,417) (3,131,105) (4,214,904) (817,100) (1,780,099) 5,856 (96,254) (3,942,349) (6,091,257) Profit (loss) before income tax and social contribution 4,913,929 600,777 453,141 (1,627,458) (102,493) 886,671 5,264,577 (140,010) IR and CSL - current and deferred (1,057,699) (1,039,107) (299,983) 423,061 (1,357,682) (616,046) (1,057,699) (1,039,107) (299,983) 423,061 (1,357,682) (616,046) Profit (loss) for the year of continued operations 3,856,230 (438,330) 153,158 (1,204,397) (102,493) 886,671 3,906,895 (756,056) Discontinued operations results Profit (loss) from discontinued operations 13,499 40,760 13,499 40,760 IR and CSL - current and deferred (4,623) (13,901) (4,623) (13,901) 8,876 26,859 8,876 26,859 Profit (loss) for the year 3,865,106 (411,471) 153,158 (1,204,397) (102,493) 886,671 3,915,771 (729,197) |
Schedule of information from partially owned subsidiary - Statement of cash flows | Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2017 2016 2017 2016 2017 2016 2017 2016 Adjusted Profit (loss) before income tax and social contribution and 4,913,929 641,537 453,141 (1,627,458) (102,493) 886,671 5,264,577 (99,250) Adjustments for reconciliation of profit (loss) Depreciation, amortization and depletion 2,230,466 2,381,160 742,033 331,691 (43,644) (29,751) 2,928,855 2,683,100 Results from equity investments (191,949) 923,096 151,993 (953,174) (39,956) (30,078) Interest and monetary and exchange variations, net 2,900,745 1,851,033 802,825 1,229,219 (5,856) (54,244) 3,697,714 3,026,008 Gain on sale of investment in subsidiary (276,816) (276,816) Leniency agreement 375,476 2,853,230 375,476 2,853,230 Reversal of provisions (223,340) (223,340) Provision for losses and write-offs of long-lived assets 212,759 40,530 425 486 213,184 41,016 9,941,270 8,690,586 1,998,424 (66,062) (150,498) 11,939,694 8,474,026 Changes in operating working capital Financial investments (953,228) (649,535) (953,228) (649,535) Trade accounts receivable (1,304,474) 1,083,117 (373,066) (126,617) 79,148 51,375 (1,598,392) 1,007,875 Inventories (1,387,696) 966,974 36,668 (104,636) (1,351,028) 862,338 Taxes recoverable 415,923 976,770 53,370 81,334 469,293 1,058,104 Prepaid expenses (21,732) 64,029 (8,789) (30,521) 64,029 Other receivables 34,500 332,673 (8,698) 21,308 25,802 353,981 Trade payables (1,444,468) (4,052,705) (119,033) (150,495) (79,148) (51,375) (1,642,649) (4,254,575) Taxes payable (132,697) (674,466) (82,817) 382,335 (215,514) (292,131) Advances from customers (3,089) 207,020 (10,423) 9,830 (13,512) 216,850 Leniency agreement (1,343,803) (1,343,803) Other payables 124,050 430,714 126,087 165,981 250,137 596,695 Cash from operations 3,924,556 7,375,177 1,611,723 212,978 (150,498) 5,536,279 7,437,657 Interest paid (1,648,971) (1,611,718) (505,082) (215,224) (2,154,053) (1,826,942) Income tax and social contribution paid (919,236) (1,152,847) (1,370) (920,606) (1,152,847) Net cash generated by operating activities 1,356,349 4,610,612 1,105,271 (2,246) (150,498) 2,461,620 4,457,868 Proceeds from the sale of fixed assets 450,000 450,000 Acquisitions to property, plant and equipment (608,181) (608,181) Acquisitions of intangible assets (2,185,567) (1,844,510) (87,630) (892,499) 150,498 (2,273,197) (2,586,511) Other 24,977 34,061 24,977 34,061 Net cash used in investing activities (2,318,771) (1,810,449) (87,630) (892,499) 150,498 (2,406,401) (2,552,450) Short-term and long-term debt Obtained 8,492,341 4,107,626 8,492,341 4,107,626 Payments (8,779,091) (4,901,593) (8,779,091) (4,901,593) Derivative transactions - payments (810,279) (810,279) Braskem Idesa borrowings Obtained 187,959 503,921 187,959 503,921 Payments (1,080,502) (469,282) (1,080,502) (469,282) Related parties Obtained loans (payment of loans ) 20,637 (882,158) (20,637) 882,158 Dividends paid (998,893) (1,997,984) (998,893) (1,997,984) Net provided (used) in financing activities (2,075,285) (3,674,109) (913,180) 916,797 (2,988,465) (2,757,312) Exchange variation on cash of foreign subsidiaries 17,849 541,734 (11,374) 44,908 6,475 586,642 Increase (decrease) in cash and cash equivalents (3,019,858) (332,212) 93,087 66,960 (2,926,771) (265,252) Represented by Cash and cash equivalents at the beginning for the year 6,500,265 6,908,623 201,599 134,639 6,701,864 7,043,262 Cash and cash equivalents at the end for the year 3,480,407 6,576,411 294,686 201,599 3,775,093 6,778,010 Increase (decrease) in cash and cash equivalents (3,019,858) (332,212) 93,087 66,960 (2,926,771) (265,252) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment (Tables) [Abstract] | |
Schedule of property, plant and equipment | (a) Change Land Buildings and Improvements Machinery, Equipment and Facilities Projects and Stoppage in Progress (i) Other Total Cost 471,655 5,530,714 36,804,409 3,495,965 1,404,759 47,707,502 Accumulated depreciation/depletion (1,111,642) (16,595,497) (663,653) (18,370,792) Balance as of December 31, 2016 471,655 4,419,072 20,208,912 3,495,965 741,106 29,336,710 Acquisitions 149,018 2,090,157 6,066 2,245,241 Additions for acquisition of subsidiary 14,937 122,846 63,081 46,833 92,052 339,749 Capitalized financial charges 130,272 130,272 Foreign currency translation adjustment 5,600 168,554 387,757 56,425 4,877 623,213 Transfers by concluded projects (ii) 29,703 145,622 2,216,704 (2,539,041) 147,012 Other, net of depreciation/depletion (21,249) (5,149) (166,585) (5,946) (12,342) (211,271) Depreciation / depletion (280,448) (2,275,788) (146,068) (2,702,304) Net book value 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Accumulated depreciation/depletion (1,487,762) (18,627,943) (922,389) (21,038,094) Balance as of December 31, 2017 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 (i) On December 31, 2017, the main amounts recorded under this item corresponded to expenses with scheduled maintenance shutdowns in Brazil and at overseas plants that are either in the preparation phase or ongoing (R$578,920), capitalized financial charges (R$174,333), inventories of spare parts (R$441,262), strategic projects in Brazil (R$436,460), which include the processing of ethane at UNIB BA and the strategic projects of Braskem America (R$552,727), such as the construction of the new unit of polypropylene production in the United States (Note 1(a.iii)). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. (ii) Related mainly to expenses incurred by the Braskem, which were transferred to “Machinery, equipment and facilities” (R$1,592,844). |
Schedule of property, plant and equipment by country | (b) Property, plant and equipment by country 2017 2016 Brazil 16,665,988 16,939,745 Mexico 10,581,347 10,522,536 United States of America 2,275,987 1,668,399 Germany 229,328 205,650 Other 8,960 380 29,761,610 29,336,710 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets (Tables) [Abstract] | |
Schedule of intangible assets | 14. Intangible assets Goodwill based on Customers expected future Brands Software and Suppliers profitability and Patents licenses Agreements Total Cost 3,187,722 339,512 566,673 772,888 4,866,795 Accumulated amortization (1,128,848) (110,880) (364,336) (453,644) (2,057,708) Balance as of December 31, 2016 2,058,874 228,632 202,337 319,244 2,809,087 Acquisitions 340 27,319 297 27,956 Additions through acquisition on subsidiary 1,316 402 1,718 Foreign currency translation adjustment 8,357 4,759 (932) 12,184 Other, net of amortization 1,107 (124) 983 Amortization (8,349) (43,467) (72,615) (124,431) Net book value 2,058,874 230,087 192,140 246,396 2,727,497 Cost 3,187,722 349,316 607,528 772,253 4,916,819 Accumulated amortization (1,128,848) (119,229) (415,388) (525,857) (2,189,322) Balance as of December 31, 2017 2,058,874 230,087 192,140 246,396 2,727,497 Average annual rates of amortization 5.89% 11.91% 6.00% |
Schedule of impairment test of the goodwill using the value in use method (discounted cash flow) | The existing goodwill was determined in accordance with the criteria established by the accounting practices adopted in Brazil before the adoption of the IASB pronouncements and represent the excess of the amount paid over the amount of equity of the acquired companies. Such goodwill was systematically amortized until December 2008. As from 2009, it has been subject to annual impairment tests. In October 2017, Braskem conducted an impairment test of the goodwill using the value in use method (discounted cash flow) and did not identify any loss, as shown in the table below: Book value Allocated Cash flow (with goodwill and goodwill (CF) work capital) (i) CF/Book value CGU and operating segments CGU - UNIB - South 926,854 11,970,190 2,912,030 4.1 Operating segment - Polyolefins 939,667 26,654,836 7,766,269 3.4 Operating segment - Vinyls 192,353 5,091,859 2,895,428 1.8 (i) The carrying amount includes, in addition to goodwill, long-lived assets and working capital from each operating segment. |
Schedule of sensitivity analysis based on changes in these variables | Given the potential impact on cash flows of the “discount rate” and “perpetuity”, Braskem conducted a sensitivity analysis based on changes in these variables, with cash flows shown in the table below: +0.5% on -0.5% on discount rate perpetuity CGU and operating segments CGU - UNIB - South 11,327,443 11,485,194 Operating segment - Polyolefins 25,042,032 25,405,611 Operating segment - Vinyls 4,808,622 4,877,875 |
Schedule of intangible assets by country | (c) Intangible assets by country 2017 2016 Brazil 2,502,231 2,526,371 Mexico 151,930 141,379 United States of America 47,357 115,355 Germany 25,948 25,956 Other 31 26 2,727,497 2,809,087 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings (Tables) [Abstract] | |
Schedule of Borrowings | (a) Borrowings Annual financial charges 2017 2016 Foreign currency Bonds Note 15 (b) 20,082,588 14,216,539 Advances on exchange contracts US dollar exchange variation + 3.52% 362,779 Export prepayment Note 15 (d) 781,573 777,801 BNDES Exchange variation + interest between 6.82 and 6.98 201,147 Export credit notes Exchange variation + interest between 7.30 and 7.87 679,895 1,173,127 Working capital US dollar exchange variation + 1.88% above Libor 883,181 1,644,487 Transactions costs (285,657) (199,570) 22,141,580 18,176,310 Current liabilities 985,639 1,128,524 Non-current liabilities 21,155,941 17,047,786 Total 22,141,580 18,176,310 Local currency Export credit notes 8.00 381,632 Export credit notes 105.00 and 108.00 of CDI (i) 508,146 1,717,262 BNDES TJLP + interest between 0.00 and 2.62 31,347 1,527,765 BNDES SELIC + 2.32 22,039 602,648 BNDES Interest between 3.50 and 7.00 132,020 288,486 BNB/ FINEP/ FUNDES/FINISA/FINAME 6.17% 486,227 580,647 FINAME TJLP + interest between 1.90 and 6.00 2,293 1,850 Fundo de Desenvolvimento do Nordeste (FDNE) 6.5% 42,045 46,991 Other CDI + 0.04% 655 19,321 Transactions costs (4,931) (11,845) 1,219,841 5,154,757 Current liabilities 199,142 1,465,939 Non-current liabilities 1,020,699 3,688,818 Total 1,219,841 5,154,757 Foreign currency and local currency Current liabilities 1,184,781 2,594,463 Non-current liabilities 22,176,640 20,736,604 Total 23,361,421 23,331,067 (i) The Company enters into swap transactions to offset the variation in the Interbank Certificate of Deposit (CDI) rate (Note 19.3.1 (a.ii)). |
Schedule of Bonds | (b) Bonds Issue amount Interest Issue date US$ Maturity (% per year) 2017 2016 September-2006 275,000 January-2017 8.00 188,325 June-2008 500,000 June-2018 7.25 440,274 433,766 May-2010 400,000 May-2020 7.00 159,341 156,985 May-2010 350,000 May-2020 7.00 1,169,732 1,152,440 October-2010 450,000 no maturity date 7.38 1,514,826 1,492,434 April-2011 750,000 April-2021 5.75 2,502,351 2,465,361 July-2011 500,000 July-2041 7.13 1,705,722 1,680,507 February-2012 250,000 April-2021 5.75 836,907 824,535 February-2012 250,000 no maturity date 7.38 841,570 829,130 May-2012 500,000 May-2022 5.38 1,668,323 1,643,662 July-2012 250,000 July-2041 7.13 852,861 840,254 February-2014 (i) 500,000 February-2024 6.45 1,697,859 1,672,760 May-2014 (ii) 250,000 February-2024 6.45 848,929 836,380 October-2017 (iii) 500,000 January-2023 3.50 1,667,025 October-2017 (iv) 1,250,000 January-2028 4.50 4,176,868 Total 6,975,000 20,082,588 14,216,539 (i) Effective interest rate including transaction costs is 7.78% p.a. (ii) Effective interest rate including transaction costs is 7.31% p.a. (iii) Effective interest rate including transaction costs is 3.64% p.a. (iv) Effective interest rate including transaction costs is 4.65% p.a. |
Schedule of Prepayment of borrowings | Borrowings Annual financial charges (%) Prepayments Foreign currency Advances on exchange contracts US dollar exchange variation + 3.52% 638,193 Export prepayment US dollar exchange variation + semiannual Libor + 2.60% 215,145 Export credit notes US dollar exchange variation + interest between 7.30 and 8.10 507,866 Working capital US dollar exchange variation + 1.74% above Libor 516,101 1,877,305 Current liabilities 1,170,061 Non-current liabilities 707,244 Total 1,877,305 Local currency Export credit notes 8.00 Export credit notes 105.00 e 112.50 of CDI 1,028,333 BNDES TJLP + interest between 0.00 and 3.58 1,735,186 Other CDI + 0.04 11,305 2,774,824 Current liabilities 139,796 Non-current liabilities 2,635,028 Total 2,774,824 Foreign currency and local currency Current liabilities 1,309,858 Non-current liabilities 3,342,271 Total 4,652,129 |
Schedule of Export prepayments | (d) Export pre-payment Initial amount of the transaction Issue date (US$ thousand) Maturity Charges (% per year) 2017 2016 January-2013 200,000 November-2022 US dollar exchange variation + semiannual Libor + 1.10 331,701 391,923 May-2016 50,000 May-2017 US dollar exchange variation + quarterly Libor + 3.25 163,564 December-2016 68,000 November-2019 US dollar exchange variation + quarterly Libor + 2.60 222,314 September-2017 135,000 March-2017 US dollar exchange variation + quarterly Libor + 1.61 449,872 Total 453,000 781,573 777,801 |
Schedule of Payment schedule | The maturity profile of the long-term amounts is as follows: 2017 2016 2018 2,379,757 2019 1,245,895 3,310,384 2020 2,199,869 2,442,493 2021 3,655,465 3,667,632 2022 1,801,844 1,745,936 2023 1,709,587 13,772 2024 2,539,216 2,461,086 2025 45,994 3,839 2026 44,239 1,391 2027 17,586 2028 and thereafter 8,916,945 4,710,314 Total 22,176,640 20,736,604 |
Schedule of Guarantees | Braskem gave collateral for part of its borrowings as follows: Total Total Loans Maturity debt 2017 guaranteed Guarantees BNB December-2022 113,759 113,759 Mortgage of plants, pledge of machinery and equipment BNB August-2024 187,794 187,794 Bank surety BNDES December-2021 185,406 185,406 Mortgage of plants, land and property, pledge of machinery and equipment FUNDES June-2020 79,882 79,882 Mortgage of plants, land and property, pledge of machinery and equipment FINEP July-2024 89,614 89,614 Bank surety FINEP December-2019 6,806 6,806 Bank surety, pledge of equipment and current account lockout (restricted fund). FINAME February-2022 4,175 4,175 Pledge of equipment FINISA December-2023 6,490 6,490 Bank surety OTHER July-2021 654 654 Pledge of equipment Total 674,580 674,580 |
Braskem Idesa Financing (Tables
Braskem Idesa Financing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Braskem Idesa Financing (Tables) [Abstract] | |
Schedule of Braskem Idesa Financing | 16. Braskem Idesa Financing Initial value of operation Identification US$ Maturity Charges (% per year) 2017 2016 Project finance (i) Project finance I 700,000 February-2027 Us dollar exchange variation + quarterly Libor + 3.25 2,179,981 2,274,754 Project finance II 189,996 February-2027 Us dollar exchange variation + 6.17 621,140 663,856 Project finance III 600,000 February-2029 Us dollar exchange variation + 4.33 1,827,811 1,911,857 Project finance IV 680,004 February-2029 Us dollar exchange variation + quarterly Libor + 3.88 2,032,093 2,111,234 Project finance V 400,000 February-2029 Us dollar exchange variation + quarterly Libor + 4.65 1,221,997 1,276,449 Project finance VI 89,994 February-2029 Us dollar exchange variation + quarterly Libor + 2.73 273,887 286,480 Project finance VII 533,095 February-2029 Us dollar exchange variation + quarterly Libor + 4.64 1,627,479 1,701,229 Transactions costs (92,938) (104,157) Total 3,193,089 9,691,450 10,121,702 Other borrowings VAT borrowings (ii) November-2029 2.00% above TIIE (*) 13,500 Borrowings for working capital December-2017 Us dollar exchange variation + quarterly Libor + 2.30 302,589 316,089 9,691,450 10,437,791 Current liabilities 9,691,450 10,437,791 Total 9,691,450 10,437,791 (*) TIIE - “Tasa de Interés Interbancaria de Equilibrio” - basic interest rate in Mexico, similar to the CDI overnight rate in Brazil. |
Schedule of amortization presents the original long-term maturities | The following amortization schedule presents the original long-term maturities, excluding the reclassification to current liabilities arising from the aforementioned breach of contractual obligations. 2017 2016 2018 709,793 2019 748,071 736,885 2020 877,450 864,149 2021 1,002,270 986,914 2022 835,009 822,235 2023 1,105,295 1,088,155 2024 1,195,682 1,177,017 2025 1,195,096 1,176,346 2026 1,052,156 1,035,586 2027 474,438 466,270 2028 and thereafter 422,266 428,336 Total 8,907,733 9,491,686 |
Debentures (Tables)
Debentures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debentures (Tables) [Abstract] | |
Schedule of balances of debentures | The balances of debentures come from the acquisition of Cetrel, acquired in October 2017 (Note 1(a.ii)). Issue date Series Maturity Annual financial charges (%) 2017 March-2013 Single March-2025 IPCA + 6% 216,968 September-2013 Single September-2025 126,5% of CDI 96,356 313,324 Current liabilities 27,183 Non-current liabilities 286,141 Total 313,324 |
Payment schedule of debentures from the acquisition of Cetrel | (a) Payment schedule 2017 2019 26,629 2020 43,674 2021 49,326 2022 49,326 2023 49,326 2024 49,326 2025 18,534 Total 286,141 (b) Guarantees |
Changes in borrowings, debent_2
Changes in borrowings, debentures and Braskem Idesa borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Changes in borrowings, debentures and Braskem Idesa borrowings (Tables) [Abstract] | |
Schedule of Changes in borrowings, debentures and Braskem Idesa borrowings | 18. Changes in borrowings, debentures and Braskem Idesa borrowings Balance at Addition by Interest, changes Conversion of Balance at December 31, acquisition of Payments monetary and debts of subsidiaries December 31, 2016 subsidiary Obtained Principal Interest paid foreign exchange, net abroad Transferences 2017 Borrowings Current 2,594,463 6,749 2,077,350 (8,767,003) (1,648,971) 1,459,513 8,834 5,453,846 1,184,781 Non-current 20,736,604 11,736 6,414,991 258,501 208,654 (5,453,846) 22,176,640 Total 23,331,067 18,485 8,492,341 (8,767,003) (1,648,971) 1,718,014 217,488 23,361,421 Debentures Current 27,017 (12,088) 5,307 6,947 27,183 Non-current 290,943 2,145 (6,947) 286,141 Total 317,960 (12,088) 7,452 313,324 Total borrowings and debentures Current 2,594,463 33,766 2,077,350 (8,779,091) (1,648,971) 1,464,820 8,834 5,460,793 1,211,964 Non-current 20,736,604 302,679 6,414,991 260,646 208,654 (5,460,793) 22,462,781 Total 23,331,067 336,445 8,492,341 (8,779,091) (1,648,971) 1,725,466 217,488 23,674,745 Braskem Idesa financing Current 10,437,791 187,959 (1,080,502) (505,082) 17,882 633,402 9,691,450 Total 10,437,791 187,959 (1,080,502) (505,082) 17,882 633,402 9,691,450 Total geral Current 13,032,254 33,766 2,265,309 (9,859,593) (2,154,053) 1,482,702 642,236 5,460,793 10,903,414 Non-current 20,736,604 302,679 6,414,991 260,646 208,654 (5,460,793) 22,462,781 Total 33,768,858 336,445 8,680,300 (9,859,593) (2,154,053) 1,743,348 850,890 33,366,195 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial instruments (Tables) [Abstract] | |
Schedule of Non-derivative financial instruments | 19.2 Non-derivative financial instruments and leniency agreement (Note 23.3) Fair value Book value Fair value Note Classification by category hierarchy 2017 2016 2017 2016 Cash and cash equivalents 6 Cash and banks 1,428,766 2,178,611 1,428,766 2,178,611 Financial investments in Brazil Loans and receivables 1,706,784 2,914,685 1,706,784 2,914,685 Financial investments abroad Held-for-trading Level 2 639,543 1,608,568 639,543 1,608,568 3,775,093 6,701,864 3,775,093 6,701,864 Financial investments 7 Letras financeiras do tesouro - LFT Held-for-trading Level 2 1,816,889 755,712 1,816,889 755,712 Time deposit investments Loans and receivables Level 2 440,616 434,015 440,616 434,015 Other Held-for-trading Level 2 39,739 756 39,739 756 2,297,244 1,190,483 2,297,244 1,190,483 Trade accounts receivable 8 Loans and receivables 3,318,692 1,704,373 3,318,692 1,704,373 Trade payables Other financial liabilities 5,058,796 6,746,822 5,058,796 6,746,822 Borrowings 15 Other financial liabilities Foreign currency - Bond Level 1 20,082,588 14,216,539 21,230,567 12,509,981 Foreign currency - other borrowings Level 2 2,344,649 4,159,341 2,228,608 4,020,769 Local currency Level 2 1,224,772 5,166,602 1,039,873 3,991,892 23,652,009 23,542,482 24,499,048 20,522,642 Braskem Idesa borrowings 16 Other financial liabilities Level 2 9,784,388 10,541,948 8,675,711 9,322,409 Debentures 17 Other financial liabilities Level 2 313,324 313,324 Loan ton non-controlling Other financial liabilities 1,756,600 1,620,519 1,756,600 1,620,519 Leniency agreement 23.3 2,004,590 2,853,230 2,004,590 2,853,230 Other payables (BNDESPAR) Other financial liabilities 176,846 176,846 |
Schedule of Financial hedge instruments designated and not designated for hedge accounting | 19.3.1 Changes Net Net Operation characteristics (Asset)/ (Asset)/ Fair value Principal exposure Accumulated Liability Change in Financial Liability Identification Note hierarchy Derivatives OCI (equity) 2016 fair value settlement 2017 Hedge accounting transactions 0 Dollar put and call options 19.3.1 (a.i) Level 2 (4,184) 391 (3,793) Exchange swap 19.3.1 (a.ii) Level 2 CDI Dollar+Interests 857,099 (46,820) (810,279) Interest rate swaps 0 Level 2 Libor Fixed rates 281,496 (266) 3,394 (28,919) (25,791) 281,496 852,649 (43,035) (839,198) (29,584) Derivatives operations Current assets (8,387) (3,793) Non-current assets (29,308) (32,666) Current liabilities 29,042 6,875 Non-current liabilities 861,302 852,649 (29,584) |
Schedule of Exchange rate swap linked to NCEs | (a.ii) Exchange rate swap linked to NCEs Identification Maturity Hedge Fair value Nominal value Financial charges for year 2017 2016 Swap NCE I to III 400,000 Exchange variation + 6,15% August-2019 438,201 Swap NCE IV to VII 450,000 Exchange variation + 4,93% to 7,90% April-2019 418,898 Total 850,000 857,099 Derivatives operations Current assets (4,203) Non-Current liabilities 861,302 Total 857,099 |
Schedule of Future exports in U.S. dollars | Therefore, on December 31, 2017, exports that were designated not yet realized and not discontinued are shown below: Total nominal value US$ 2019 733,980 2020 724,000 2021 716,000 2022 719,000 2023 718,371 2024 688,854 2028 1,250,000 5,550,205 |
The following table shows the changes in financial instruments designated for this hedge | The following table shows the changes in financial instruments designated for this hedge in the period: US$ Hedge 2016 discontinued Designations 2017 Designated balance 5,301,099 1,000,894 1,250,000 5,550,205 |
Schedule of maturities of financial liabilities designated | On December 31, 2017, the maturities of financial liabilities designated, within the scope of the consolidated balance sheet, were as follows: Total nominal value US$ 2019 733,980 2020 724,000 2021 716,000 2022 719,000 2023 718,372 2024 688,853 2028 1,250,000 5,550,205 |
Exchange variation on the discontinued amount, which is recorded under Shareholders' Equity as “Other comprehensive income” will be taken to net financial income (expenses) | Considering the cash generation in recent quarters, the Management of the Company believed it was appropriate to advance the payment of dollar-denominated obligations, including liabilities designated for this hedge. As a result of the decision, the amount of US$787,893 was discontinued prospectively. Exchange variation on the discontinued amount, which is recorded under Shareholders' Equity as “Other comprehensive income” will be taken to net financial income (expenses) as of January 2018, as the hedged exports are realized. Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value Hedge descontinued - First quarter 2018 189,325 2.0017 3.3082 247,353 Hedge descontinued - Second quarter 2018 208,405 2.0017 3.2769 265,758 Hedge descontinued - Third quarter 2018 193,190 2.0017 3.3080 252,364 Hedge descontinued - Fourth quarter 2018 196,973 2.0017 3.3080 257,306 787,893 1,022,781 |
The following table provides the balances of exchange variation recognized in the Company's net financial income (expenses) due to the realization of exports designated for this hedge | The following table provides the balances of exchange variation recognized in the Company's net financial income (expenses) due to the realization of exports designated for this hedge in the 12-month period ended December 31, 2017: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value First quarter 201,277 2.0017 3.2400 249,241 Second quarter 208,135 2.0017 3.2015 249,720 Third quarter 207,273 2.0017 3.3302 275,362 Fourth quarter 213,000 2.0017 3.1684 248,507 829,685 1,022,830 |
Schedule of changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” of this hedge | The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” of this hedge are as follows: Exchange Net variation IR and CSL effect At December 31, 2016 (7,439,927) 2,529,575 (4,910,352) Exchange variation recorded in the period on OCI / IR and CSL (397,045) 134,995 (262,050) Exchange variation transferred to profit or loss / IR and CSL 1,022,830 (347,762) 675,068 At December 31, 2017 (6,814,142) 2,316,808 (4,497,334) |
The quarterly schedule of hedged exports | The realizations expected for 2018 will occur through the payments of financial instruments in conformity with exports made, and the exchange variation recorded in “Other comprehensive income” will be written off to the financial results. For all quarters of the year, realizations will be realized at the discounted cash flow rates. The quarterly schedule of hedged exports in 2018 follows: Total nominal value US$ First quarter 189,325 Second quarter 208,405 Third quarter 193,190 Fourth quarter 196,973 787,893 |
Schedule of hedged sales and the maturities of financial liabilities | As of December 31, 2017, designated and unrealized sales were as follows: Nominal value US$ 2018 221,790 2019 229,270 2020 266,690 2021 303,392 2022 253,204 2023 333,093 2024 359,559 2025 357,903 2026 309,240 2027 152,103 2028 124,654 2029 31,164 2,942,062 |
The following table shows the changes in financial instruments designated for this hedge in the year | The following table shows the changes in financial instruments designated for this hedge in the period: US$ Sales in Hedge 2016 the year discontinued 2017 Designated balance 3,113,173 (183,252) 325 2,930,246 |
Schedule of maturities of designated financial liabilities | In 2017, the maturities of designated financial liabilities were distributed as follows: Nominal value US$ 2018 221,390 2019 228,850 2020 266,187 2021 302,816 2022 252,723 2023 332,458 2024 358,873 2025 357,221 2026 308,650 2027 150,419 2028 124,347 2029 26,312 2,930,246 |
The following table provides the balance of exchange variation of the discontinued amount net of realization already occurred in the year, which is recorded in Braskem Idesa's shareholders' equity | The following table provides the balance of exchange variation of the discontinued amount net of realization already occurred in the period ended December 31, 2017 (US$325), which is recorded in Braskem Idesa's shareholders' equity under “Other comprehensive income” and will be transferred to financial income (expenses) according to the schedule of future hedged sales as they occur: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value Hedge descontinued 11,816 13.4541 17.9915 53,614 9,013 53,614 9,013 |
The following table provides the balances of exchange variation recognized in Braskem Idesa's financial income (expenses) | The following table provides the balances of exchange variation recognized in Braskem Idesa's financial income (expenses) due to the realization of sales designated for this hedge in the 12-month period ended December 31, 2017: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value First quarter 29,174 13.6649 20.6059 202,497 30,917 Second quarter 47,896 13.6560 18.8998 251,157 42,992 Third quarter 52,293 13.6536 17.8492 219,401 38,919 Fourth quarter 53,889 13.6537 19.1186 294,498 50,868 183,252 967,553 163,696 |
Schedule of changes in foreign exchange variation and Income Tax and Social Contribution | The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” are as follows: Exchange Net variation IR effect At December 31, 2016 (4,182,052) 1,255,350 (2,926,702) Exchange variation recorded in the period on OCI / IR 472,717 (141,815) 330,902 Exchange variation transferred to profit or loss / IR 163,696 (49,109) 114,587 At December 31, 2017 (3,545,639) 1,064,426 (2,481,213) |
Schedule of quarterly schedule of hedged exports | The realizations expected for 2018 will occur in accordance with the payments under the project finance, and the exchange variation recorded in “Other comprehensive income” will be written off to the financial results. Below is the quarterly schedule of hedged sales in U.S. dollars in 2018: Nominal value US$ First quarter 53,889 Second quarter 55,137 Third quarter 56,382 Fourth quarter 56,382 221,790 |
Schedule of credit ratings for the domestic market | On December 31, 2017, the credit ratings for the domestic market were as follows: (%) 2017 2016 1 Minimum risk 18.84 8.92 2 Low risk 50.84 39.98 3 Moderate risk 13.33 30.51 4 High risk 13.40 16.48 5 Very high risk (i) 3.59 4.11 (i) Most clients in this group are inactive and the respective accounts are in the process of collection actions in the courts. Clients in this group that are still active buy from Braskem and pay in advance. |
Schedule of Default indicators for the years ended | Default indicators : Last 12 months Domestic market Export market December 31, 2017 0.08% 0.19% December 31, 2016 0.18% 0.04% December 31, 2015 0.39% 0.70% |
Schedule of Braskem's Financial Policy | In order to determine the credit ratings of counterparties of financial assets classified under cash and cash equivalents, held for trading and borrowings and receivables, Braskem uses the risk rating of agencies Standard & Poor's, Moody's and Fitch Ratings, within the limits established in its financial policy approved by the Board of Directors. 2017 2016 Financial assets with risk assessment AAA 3,569,392 3,871,105 AA+ 27,094 241,359 AA 8,047 5,370 AA- 209,389 654,232 A+ 1,465,107 2,426,078 A 349,823 364,198 A- 209,175 BBB+ 453,367 116,987 6,082,219 7,888,504 Financial assets without risk assessment Other financial assets with no risk assessment (i) 5,882 3,843 5,882 3,843 Total 6,088,101 7,892,347 (i) Investments approved by the Management of the Company, in accordance with the financial policy. |
Schedule of Possible and extreme adverse scenarios | The sensitivity values in the table below are the changes in the value of the financial instruments in each scenario. Gain (losses) Possible adverse Extreme adverse Instrument / Sensitivity Probable (25%) (50%) Brazilian real/U.S. dollar exchange rate Bonds (191,889) (4,959,133) (9,918,266) Working capital / other (12,358) (319,367) (638,734) Export credit notes (6,577) (169,974) (339,948) Braskem Idesa borrowings (93,750) (2,422,863) (4,845,725) Export prepayments (3,209) (82,925) (165,850) Dollar put and call options (4,117) (176,990) (844,927) Financial investments abroad 18,405 475,644 951,287 Selic interest rate BNDES 277 (1,999) (4,101) Libor floating interest rate Working capital / structured operations (3,265) (16,325) (32,650) Export prepayments (1,643) (8,216) (16,433) Swaps 12,615 38,103 96,667 Braskem Idesa borrowings (76,187) (380,933) (761,865) CDI interest rate Swaps NCE 12,208 (27,340) (61,117) Debentures 25,657 (277) (15,308) Financial investments in local currency (9,138) 63,988 128,016 IPCA interest rate Debentures (33,625) (20,015) (40,873) TJLP interest rate Other government agents 14 (95) (192) BNDES 210 (1,443) (2,929) Brazilian real/Euro exchange rate Working capital / other 2,126 (13,896) (27,792) |
Taxes payable (Tables)
Taxes payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxes payable (Tables) [Abstract] | |
Schedule of summary of taxes payable | 20. Taxes payable 2017 2016 Brazil IPI 60,917 59,323 IR and CSL 405,567 222,680 ICMS 257,720 182,034 PIS and COFINS 82,140 59,105 Other 52,926 62,743 Other countries IR 66,059 46,670 Value-added tax 22,242 15,622 Total 947,571 648,177 Current liabilities 894,769 624,080 Non-current liabilities 52,802 24,097 Total 947,571 648,177 |
Income tax ("IR") and social _2
Income tax ("IR") and social contribution ("CSL") (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income tax ("IR") and social contribution ("CSL") (Tables) [Abstract] | |
Reconciliation of the effects of income tax and social contribution on profit or loss | 21.1 Reconciliation of the effects of income tax and social contribution on profit and loss 2017 2016 2015 Adjusted Income (loss) before IR and CSL and after discontinued operations 5,264,577 (140,010) 4,414,161 IR and CSL at the rate of 34% (1,789,956) 47,603 (1,500,815) Permanent adjustments to the IR and CSL calculation basis IR and CSL on equity in results of investees 2,201 10,227 755 IR and CSL accrued in previous years (46,460) (7,686) Deferred tax losses and negative base 39,092 (10,253) Tax benefits (Sudene and PAT) 87,186 Difference of rate applicable to each country (i) 250,130 81,638 Fine in leniency agreement (117,140) (692,299) Other permanent adjustments 170,805 (16,755) (142,355) Effect of IR and CSL on results of operations (1,357,682) (616,046) (1,660,354) Breakdown of IR and CSL: Current IR and CSL (869,493) (898,845) (391,968) Deferred IR and CSL (488,189) 282,799 (1,268,386) Total (1,357,682) (616,046) (1,660,354) (i) Includes the impact from the difference between IR/CSL tax rate in Brazil (34%) used for the preparation of this note and the tax rates in countries where the subsidiaries abroad are located, as follows: |
Schedule of changes in IR/CSL tax rate | Official rate - % Headquarters (Country) 2017 Braskem Alemanha Germany 31.18 Braskem America e Braskem America Finance (i) USA 35.00 Braskem Argentina Argentina 35.00 Braskem Austria e Braskem Austria Finance Austria 25.00 Braskem Petroquímica Chile Chile 25.50 Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc Netherlands 25.00 Braskem Idesa, Braskem Idesa Serviços, Braskem México Braskem México Serviços and Braskem México Proyectos Mexico 30.00 (i) In 2018 the rate will change from 35% to 21%. |
Breakdown of deferred IR and CSL | (a) Breakdown of deferred IR and CSL Assets As of December 31, 2016 Impact on the P&L Impact on the equity Cetrel consolidated As of December 31, 2017 Tax losses (IR) and negative base (CSL) 2,420,376 (590,037) 48,470 1,878,809 Goodwill amortized 4,624 (708) 55,419 59,335 Exchange variations 464,947 (76,654) 388,293 Temporary adjustments 717,868 (564,239) (7,946) 9,857 155,540 Business combination 191,250 (7,465) 183,785 3,799,065 (1,239,103) (7,946) 113,746 2,665,762 Liabilities Amortization of goodwill based on future profitability 767,277 (54,404) 712,873 Tax depreciation 867,922 92,280 960,202 Temporary adjustments 316,991 (85,169) 231,822 Business combination 198,381 (197,079) 8,362 9,664 Additional indexation PP&E 118,202 (51,130) 67,072 Hedge accounting (606,877) 606,877 Deferred on health plans 15,269 (15,269) Amortization of fair value adjustments on 263,808 255,815 519,623 Other 123,892 (119,619) 4,273 2,656,473 (750,914) 591,608 8,362 2,505,529 Net 1,142,592 (488,189) (599,554) 105,384 160,233 Presentation in the balance sheet: Non-current assets 1,653,115 1,165,726 (-) Non-current liabilities 510,523 1,005,493 (b) Offset for the purpose of presentation in the balance sheet (consolidated) |
Offset for the purpose of presentation in the balance sheet (consolidated) | 2017 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 1,491,423 (1,491,423) Braskem Argentina Argentina 3,398 3,398 Braskem Alemanha Germany 19,353 19,353 Braskem Chile Chile 251 (251) Braskem Idesa Mexico 1,036,257 1,036,257 Braskem México Serviços Mexico 1,334 1,334 Cetrel Brazil 29,268 (7,454) 21,814 DAC Brazil 84,478 (908) 83,570 2,665,762 (1,500,036) 1,165,726 Liabilities Braskem S.A Brazil 2,272,775 (1,491,423) 781,352 Braskem America USA 223,635 223,635 Braskem Chile Chile 757 (251) 506 Cetrel Brazil 7,454 (7,454) DAC Brazil 908 (908) 2,505,529 (1,500,036) 1,005,493 2016 Headquarters IR and CSL (Country) Tax calculation Compensation Balance Assets Braskem S.A. Brazil 2,106,303 (2,063,844) 42,459 Braskem Argentina Argentina 6,745 6,745 Braskem Alemanha Germany 36,932 36,932 Braskem Chile Chile 135 (135) Braskem Idesa Mexico 1,463,502 1,463,502 Braskem México Serviços Mexico 1,994 1,994 Braskem Petroquímica Brazil 81,971 (81,971) Braskem Petroquímica and Braskem Qpar - business combination effects Brazil 101,483 101,483 3,799,065 (2,145,950) 1,653,115 Liabilities Braskem S.A Brazil 2,063,844 (2,063,844) Braskem America USA 305,289 305,289 Braskem Chile Chile 1,404 (135) 1,269 Braskem Petroquímica Brazil 162,241 (81,971) 80,270 Braskem Petroquímica - efeitos da combinação de negócios Brazil 123,695 123,695 2,656,473 (2,145,950) 510,523 |
Realization of deferred income tax and social contribution | (c) Realization of deferred income tax and social contribution Realization Balance at 2023 Assets Note December 31, 2017 2018 2019 2020 2021 2022 thereafter Tax losses (IR) and negative base (CSL) (i) 1,878,809 18,357 95,276 115,361 287,416 471,379 891,020 Goodwill amortized 59,335 20,053 17,604 15,156 4,062 364 2,096 Exchange variations (ii) 388,293 32,663 19,598 336,032 Temporary adjustments (iii) 155,540 80,548 (51,918) 29,931 12,294 11,762 72,923 Business combination (iv) 183,785 38,775 38,775 38,775 33,731 33,729 Total assets 2,665,762 190,396 99,737 218,821 337,503 517,234 1,302,071 Liabilities Amortization of goodwill based on future profitability (v) 712,873 712,873 Tax depreciation (vi) 960,202 960,202 Temporary differences (vii) 231,822 78,653 23,452 29,227 12,005 11,485 77,000 Business combination (viii) 9,664 34 34 34 34 34 9,494 Additional indexation PP&E (ix) 67,072 5,366 5,366 5,366 5,366 5,366 40,242 Amortization of fair value adjustments on 519,623 41,570 41,570 41,570 41,570 41,570 311,773 Other 4,273 4,273 Total liabilities 2,505,529 125,623 70,422 76,197 58,975 58,455 2,115,857 Net 160,233 64,773 29,315 142,624 278,528 458,779 (813,786) |
Sundry provisions (Tables)
Sundry provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Sundry provisions (Tables) [Abstract] | |
Schedule of summary of sundry provisions | 22. Sundry provisions Note 2017 2016 Provision for customers rebates (a) 87,913 41,475 Provision for recovery of environmental damages (b) 300,249 254,040 Other 25,510 23,621 Total 413,672 319,136 Current liabilities 178,676 112,891 Non-current liabilities 234,996 206,245 Total 413,672 319,136 |
Schedule of changes in provisions | (c) Changes in provisions Recovery of environmental Bonus damage Other Total December 31, 2016 41,475 254,040 23,621 319,136 Additions, inflation adjustments and exchange variation, net 116,085 102,480 5,744 224,309 Write-offs through usage and payments (69,647) (56,271) (3,855) (129,773) December 31, 2017 87,913 300,249 25,510 413,672 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contingencies (Tables) [Abstract] | |
Claims with probable chance of loss and arising from business combinations | 23.1 Claims with probable chance of loss and claims arising from business combinations with possible loss 2017 2016 Labor claims (a) 255,938 207,827 Tax claims (b) Normal operations IR and CSL 17,313 11,462 PIS and COFINS (ii) 155,681 204,516 ICMS (iv) 76,342 39,604 Other tax claims 8,985 19,586 258,321 275,168 Business Combination IR and CSL 50,051 45,656 PIS and COFINS (iii) 56,135 51,052 ICMS - interstate purchases (i) 263,538 239,450 369,724 336,158 Corporate claims (c) 135,779 105,175 Civil claims and other 72,883 60,909 1,092,645 985,237 |
Changes of claims with probable chance of loss | (d) Changes of claims with probable chance of loss Corporate Civil claism Labor claims Tax claims claims and other Total December 31, 2016 207,827 611,326 105,175 60,909 985,237 Additions, inflation adjustments and exchange variation, net 164,962 177,314 169,683 20,257 532,216 Write-offs through usage and payments (115,497) (130,596) (170,432) (8,283) (424,808) December 31, 2017 257,292 658,044 104,426 72,883 1,092,645 |
Schedule of balance of contingent liabilities | The balance of contingent liabilities as of December 31, 2017 and 2016 is as follows: Consolidated 2017 2016 Tax claims 6,048,462 6,307,214 Labor claims 812,400 580,623 Civil claims 693,188 494,965 Social security tax claims 91,824 122,941 Other lawsuits 285,944 43,356 Total 7,931,818 7,549,099 |
Benefits offered to team memb_2
Benefits offered to team members (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Benefits offered to team members (Tables) [Abstract] | |
Schedule of short-term benefits | 24.1 Short-term benefits 2017 2016 2015 Health care 140,553 139,412 126,545 Private pension 67,008 61,593 60,476 Transport 58,825 55,223 50,935 Feeding 30,916 28,874 27,755 Training 18,285 20,589 19,101 Other 16,173 13,237 18,789 331,760 318,928 303,601 |
Schedule of net defined benefit liability (asset) | (i) Amounts in balance sheet 2017 2016 Defined benefit Novamont Braskem America 18,140 20,285 Braskem Alemanha and Holanda 92,402 69,952 110,542 90,237 Health care Bradesco saúde 83,233 71,899 193,775 162,136 Benefit obligations (156,957) (129,617) Health care (83,233) (71,899) Total obligations (240,190) (201,516) Fair value of plan assets 46,415 39,380 Funded status of the plan (193,775) (162,136) Consolidated net balance (non-current liabilities) (193,775) (162,136) |
Schedule of Change in obligations | (ii) Change in obligations 2017 2016 Balance at beginning of year 201,516 216,632 Health care 11,334 2,203 Current service cost 5,058 4,576 Interest cost 4,139 3,983 Benefits paid (3,399) (3,156) Actuarial losses (gain) 9,661 3,590 Exchange variation 11,881 (26,312) Balance at the end of the year 240,190 201,516 |
Schedule of Change in fair value plan assets | (iii) Change in fair value plan assets 2017 2016 Balance at beginning of year 39,380 46,395 Actual return on plan assets 5,115 221 Employer contributions 4,069 3,569 Benefits paid (2,915) (3,087) Exchange variation 766 (7,718) Balance at the end of the year 46,415 39,380 |
Schedule of Amounts recognized in profit or loss | (iv) Amounts recognized in profit and loss 2017 2016 Health care 11,334 2,203 Current service cost 5,058 4,576 Interest cost 4,139 3,983 Expected return on plan assets (28) (31) Actuarial losses 6,069 2,472 26,572 13,203 |
Schedule of Actuarial assumptions | (v) Actuarial assumptions (%) 2017 2016 2015 Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 5.45 3.70 2.00 2.00 4.18 4.35 2.00 n/a 7.22 4.60 3.75 n/a Inflation rate 4.50 n/a n/a n/a 6.00 n/a 2.00 n/a 6.50 n/a 2.00 n/a Expected return on plan assets n/a n/a n/a n/a n/a n/a n/a n/a n/a 7.50 n/a n/a Rate of increase in future salary levels n/a n/a 2.50 2.50 n/a n/a 3.00 n/a n/a n/a 3.00 n/a Rate of increase in future pension plan n/a n/a 1.75 1.75 n/a n/a 1.75 n/a n/a n/a n/a n/a Aging factor 2.50 n/a n/a n/a 2.50 n/a n/a n/a 2.50 n/a n/a n/a Medical inflation 3.50 n/a n/a n/a 3.50 n/a n/a n/a 3.50 n/a n/a n/a Duration 18.84 n/a n/a n/a 29.24 n/a n/a n/a 35.55 n/a n/a n/a |
Schedule of Sensitivity analysis | (vii) Sensitivity analysis Impact on the defined benefit obligation Premise change Premise increase Premise reduction Health United Health United Health United insurance States Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 1.0% 1.0% 0.5% 0.5% 9,025 7,045 9,480 452 (11,019) (8,630) (10,582) (500) Real medical inflation 1.0% n/a n/a n/a 11,923 n/a n/a n/a (7,946) n/a n/a n/a Rate of increase in future salary levels n/a n/a 0.5% 0.5% n/a n/a 4,522 255 n/a n/a (4,259) (243) Rate of increase in future pension plan n/a n/a 0.25% 0.25% n/a n/a 2,709 126 n/a n/a (2,629) (123) Life expectancy n/a n/a 1 year 1 year n/a n/a 2,217 122 n/a n/a (2,314) (127) Mortality rate n/a 10.0% n/a n/a n/a 1,889 n/a n/a n/a (2,072) n/a n/a |
Schedule of Impact on cost of services and interests | Health insurance - Impact on cost of services and interests costs Premise change Premise increase Premise reduction Cost of Iterests Cost of Iterests Cost of Iterests services costs services costs services costs Discount rate 1.0% 1.0% 177 145 (221) (138) Real medical inflation 1.0% 1.0% 245 1,216 (151) (810) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity (Tables) [Abstract] | |
Capital | On December 31, 2017, the Company's subscribed and paid up capital stock amounted to R$8,043,222 and comprised 797,257,604 shares with no par value, distributed as follows: Preferred Preferred Common shares shares shares % class A % class B % Total % Odebrecht 226,334,623 50.11 79,182,498 22.95 305,517,121 38.32 Petrobras 212,426,952 47.03 75,761,739 21.96 288,188,691 36.15 ADR (i) 56,088,424 16.26 56,088,424 7.04 Other 12,907,077 2.86 132,743,203 38.48 578,330 100.00 146,228,610 18.34 Total 451,668,652 100.00 343,775,864 99.65 578,330 100.00 796,022,846 99.85 Treasury shares 1,234,758 0.35 1,234,758 0.15 Total 451,668,652 100.00 345,010,622 100.00 578,330 100.00 797,257,604 100.00 (i) American Depositary Receipts traded on the New York Stock Exchange (USA); |
Profit or loss for the year | In a meeting held on November 28, 2017, the Board of Directors approved the prepayment of dividends in the amount of R$1,000,000, which was made on December 12, 2017. The amount was sufficient to meet the minimum mandatory dividends for fiscal year 2017. 2017 Net income for the year of Company's shareholders 4,082,990 Amounts recorded directly to retained earnings Legal reserves distribution (204,150) Tax incentive reserve distribution (71,745) Realization of additional property, plant and equipment 27,810 Prescribed dividends 482 3,835,387 Destinations: Total proposed dividends, paid in advance in December 2017 (i) (1,000,000) Additional dividends proposed (ii) (1,500,000) Portion allocated to unrealized profit reserves (iii) (1,335,387) (3,835,387) Composition of the total proposed dividends Minimum dividends - 25% adjusted net income (958,847) Additional proposed dividends (41,153) Total dividends paid in December 2017 (1,000,000) Additional dividends proposed (1,500,000) Total dividends (2,500,000) (i) Per-share dividend of R$1.25671835741 per common and class “A” preferred share and R$0.60624979930 per class “B” preferred share. (ii) Such dividends will be submitted to shareholders for approval at a Shareholders' Meeting. (iii) The retained earnings reserve was accrued based on the capital budget, in accordance with Article 196 of Federal Law 6,404/76, to be allocated to future investments. Such retention will be subject to approval by shareholders convened in a Shareholders' Meeting. |
Other comprehensive income | (f) Other comprehensive income Attributed to shareholders' interest Deemed cost Defined Foreign and additional benefit Foreign currency Gain (loss) Total indexation plans actuarial sales Fair value translation on interest Braskem Non-controlling on PP&E Gain (loss) hedge of hedge adjustment in subsidiary shareholders' interest in (i) (ii) (iii) (iii) (iv) (v) interest subsidiaries Total On December 31, 2014 263,106 (30,103) (3,263,732) (289,667) 386,628 (9,404) (2,943,172) (115,385) (3,058,557) Additional indexation Realization by depreciation or write-off assets (41,268) (41,268) (41,268) Income tax and social contribution 14,032 14,032 14,032 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,462) (1,462) (1,462) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate (9,629,237) (9,629,237) (397,386) (10,026,623) Income tax and social contribution 3,225,996 3,225,996 119,129 3,345,125 Fair value of Cash flow hedge Change in fair value (524,682) (524,682) (24,791) (549,473) Transfer to result (72,518) (72,518) (72,518) Income tax and social contribution 199,176 199,176 7,139 206,315 Fair value of cash flow hedge from jointly-controlled 2,295 2,295 2,295 Actuarial loss with post-employment benefits, net of taxes (9,129) (9,129) (9,129) Foreign currency translation adjustment 718,763 718,763 (65,414) 653,349 On December 31, 2015 234,904 (39,232) (9,666,973) (685,396) 1,105,391 (9,404) (9,060,710) (476,708) (9,537,418) Additional indexation Realization by depreciation or write-off assets (41,268) (41,268) (41,268) Income tax and social contribution 14,032 14,032 14,032 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,461) (1,461) (1,461) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate 2,625,551 2,625,551 (498,767) 2,126,784 Transfer to result 1,342,785 1,342,785 14,959 1,357,744 Income tax and social contribution (1,406,740) (1,406,740) 145,326 (1,261,414) Fair value of Cash flow hedge Change in fair value 247,815 247,815 (736) 247,079 Transfer to result (19,434) (19,434) (12,135) (31,569) Income tax and social contribution (79,194) (79,194) 3,861 (75,333) Fair value of cash flow hedge from jointly-controlled (3,309) (3,309) (3,309) Actuarial loss with post-employment benefits, net of taxes (4,119) (4,119) (4,119) Foreign currency translation adjustment 63,697 63,697 275,599 339,296 On December 31, 2016 206,703 (43,351) (7,105,377) (539,518) 1,169,088 (9,404) (6,321,859) (548,601) (6,870,460) Additional indexation Realization by depreciation or write-off assets (40,678) (40,678) (40,678) Income tax and social contribution 13,831 13,831 13,831 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,459) (1,459) (1,459) Income tax and social contribution 496 496 496 Foreign sales hedge Exchange rate (42,507) (42,507) 118,179 75,672 Transfer to result 1,145,602 1,145,602 40,924 1,186,526 Income tax and social contribution (355,960) (355,960) (47,731) (403,691) Fair value of Cash flow hedge Change in fair value 876,636 876,636 6,513 883,149 Transfer to result (287,576) (287,576) 9,632 (277,944) Income tax and social contribution (198,343) (198,343) (4,844) (203,187) Fair value of cash flow hedge from jointly-controlled 3,534 3,534 3,534 Actuarial loss with post-employment benefits, net of taxes (8,654) (8,654) (8,654) Foreign currency translation adjustment 51,445 51,445 (52,047) (602) On December 31, 2017 178,893 (52,005) (6,358,242) (145,267) 1,220,533 (9,404) (5,165,492) (477,975) (5,643,467) (i) Transfer to retained earnings as the asset is depreciated or written-off/sold. (ii) Transfer to retained earnings when the extinction of the plan. (iii) Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. (iv) Transfer to the income statement when write-off of subsidiary abroad. (v) Transfer to the income statement when divestment or transfer of control of subsidiary. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share (Tables) [Abstract] | |
Schedule of reconciliation of profit (loss) for period adjusted to amounts used to calculate basic and diluted earnings (loss) per share | As required by IAS 33, the table below show the reconciliation of profit (loss) for the period adjusted to the amounts used to calculate basic and diluted earnings (loss) per share. Basic and diluted 2017 2016 2015 Profit (loss) for the year attributed to Company's shareholders of continued operations 3,856,564 (442,430) 2,995,338 Distribution of dividends attributable to priority: Preferred shares class "A" 208,416 208,409 Preferred shares class "B" 351 360 208,767 208,769 Distribution of 6% of unit value of common shares 273,827 273,824 Distribution of plus income, by class: Common shares 1,915,805 1,426,771 Preferred shares class "A" 1,458,165 1,085,974 3,373,970 2,512,745 Reconciliation of income available for distribution, by class (numerator): Common shares 2,189,632 (251,222) 1,700,595 Preferred shares class "A" 1,666,581 (191,208) 1,294,383 Preferred shares class "B" 351 360 3,856,564 (442,430) 2,995,338 Weighted average number of shares, by class (denominator): Common shares 451,668,652 451,668,652 451,668,652 Preferred shares class "A" 343,775,864 343,771,165 343,783,562 Preferred shares class "B" 578,330 593,618 796,022,846 795,439,817 796,045,832 Profit (loss) per share (in R$) Common shares 4.8479 (0.5562) 3.7651 Preferred shares class "A" 4.8479 (0.5562) 3.7651 Preferred shares class "B" 0.6069 0.6065 |
Schedule of calculation of weighted average of outstanding shares | 2016 2015 Preferred shares Class "A" Preferred shares Class "A" Outstanding Weighted Outstanding Weighted shares average shares average Amount at beginning of year 343,768,220 343,768,220 343,848,120 343,848,120 Repurchase of treasury shares (80,000) (64,658) Conversion of preferred shares class "B" to "A" 7,644 2,945 100 100 Amount at the end of the year 343,775,864 343,771,165 343,768,220 343,783,562 |
Net sales revenues (Tables)
Net sales revenues (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net sales revenues (Tables) [Abstract] | |
Schedule of summary of net sales revenues | 27. Net sales revenues 2017 2016 2015 Sales revenue Domestic market 34,983,265 32,293,042 30,366,378 Foreign market 23,297,304 23,084,703 23,159,820 58,280,569 55,377,745 53,526,198 Sales and services deductions Taxes Domestic market (8,663,707) (7,316,325) (6,214,041) Foreign market (33,798) (102,831) (122,776) Costumers rebates Domestic market (35,538) (25,400) (12,900) Foreign market (60,990) (23,820) (16,552) Sales returns Domestic market (125,153) (168,625) (167,515) Foreign market (100,789) (76,756) (112,425) (9,019,975) (7,713,757) (6,646,209) Net sales and services revenue 49,260,594 47,663,988 46,879,989 |
Schedule of net sales revenue by country | (a) Net sales revenue by country 2017 2016 2015 Brazil 26,147,559 24,640,077 23,729,106 United States 8,539,972 7,965,209 9,601,157 Argentina 1,336,440 1,244,267 1,339,775 United Kingdom 202,830 589,725 2,438,148 Germany 1,192,287 1,198,760 1,239,286 Mexico 3,408,385 2,075,695 967,829 Italy 604,546 667,265 561,347 Netherlands 333,134 262,289 622,436 Singapore 542,866 1,101,156 1,017,128 Switzerland 415,729 227,504 334,422 Colombia 340,396 369,359 278,304 Spain 282,854 342,154 391,097 Chile 554,237 522,796 503,650 Peru 493,654 397,186 351,097 Uruguay 122,251 122,783 327,533 Japan 126,956 1,631,564 904,903 Poland 231,716 252,508 199,115 Paraguay 174,783 185,432 170,834 France 166,314 236,727 268,239 Bolivia 163,862 211,382 194,865 Canada 235,612 242,492 184,752 South Korea 339,430 254,512 74,567 Other 3,304,781 2,923,146 1,180,399 49,260,594 47,663,988 46,879,989 (b) Net sales revenue by product |
Schedule of net sales revenue by product | 2017 2016 2015 PE/PP 33,105,714 30,790,364 28,226,087 Ethylene, Propylene 3,351,805 2,906,796 2,999,090 Naphtha, condensate and crude oil 135,165 2,582,257 4,587,944 Benzene, toluene and xylene 2,683,406 2,411,031 2,538,993 PVC/Caustic Soda/EDC 3,066,879 3,016,390 2,780,075 ETBE/Gasoline 2,433,360 2,058,952 1,722,391 Butadiene 1,819,387 1,315,892 1,000,376 Cumene 578,482 501,958 583,608 Solvents 401,455 379,745 431,264 Other 1,684,941 1,700,603 2,010,161 49,260,594 47,663,988 46,879,989 |
Other income (expenses), net (T
Other income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other income (expenses), net (Tables) [Abstract] | |
Schedule of other operating income (expenses), net | 29. Other income (expenses), net Note 2017 2016 2015 Adjusted Adjusted Participation of members in profits and results (i) (399,828) (361,796) (356,437) Expenses from fixed assets (205,929) (53,774) (174,488) Allowance for judicial and labor claims (119,919) (169,973) (105,644) Capital gain - sale of Quantiq 5 276,816 Recovery of environmental damages (102,466) (182,600) (65,791) Leniency agreement 23.3 (375,476) (2,860,402) Other 71,922 (277,409) (249,940) (854,880) (3,905,954) (952,300) (i) In the fiscal year ended December 31, 2016 and 2015, the amounts related to this item were reclassified from “costs of goods sold” (2016 - R$163,055, 2015 - R$165,522), “selling and distribution expenses” (2016 - R$7,155, 2015 - R$5,848) and “general and administrative expenses” (2016 - R$191,586, 2015 - R$185,067) (Note 2.4(b)). |
Financial results (Tables)
Financial results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial results (Tables) [Abstract] | |
Schedule of financial results | 30. Financial results 2017 2016 2015 Adjusted Financial income Interest income 512,051 646,727 528,788 Other 91,579 43,395 56,145 603,630 690,122 584,933 Financial expenses Interest expenses (2,219,503) (2,447,481) (2,094,280) Monetary variations on fiscal debts (191,101) (249,578) (152,409) Discounts granted (137,389) (108,606) (130,564) Loans transaction costs - amortization (64,771) (56,020) (64,406) Adjustment to present value - appropriation (284,992) (507,744) (517,739) Other (849,461) (201,533) (204,004) (3,747,217) (3,570,962) (3,163,402) Exchange rate variations, net On financial assets 216,381 (1,139,676) 1,102,744 On financial liabilities (1,015,143) (2,070,741) (999,834) (798,762) (3,210,417) 102,910 Total (3,942,349) (6,091,257) (2,475,559) |
Schedule of Interest income | 2017 2016 2015 Adjusted Interest income Held for sale 209,327 331,811 124,767 Loans and receivables 270,909 273,355 261,034 Held-to-maturity 50,526 480,236 605,166 436,327 Other assets not classifiable 31,815 41,561 92,461 Total 512,051 646,727 528,788 |
Expenses by nature and functi_2
Expenses by nature and function (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Expenses by nature and function (Tables) [Abstract] | |
Schedule of expenses by nature | 31. Expenses by nature and function Note 2017 2016 2015 Adjusted Adjusted Classification by nature: Raw materials other inputs (29,364,996) (28,197,875) (30,600,855) Personnel expenses (2,173,640) (2,576,107) (2,466,890) Outsourced services (2,120,001) (2,135,412) (1,580,827) Depreciation, amortization and depletion (2,928,855) (2,677,672) (2,120,157) Freights (2,058,574) (1,918,973) (1,856,194) Costs of idle industrial plants Note 2.4(c) (67,593) (60,944) (67,423) Other income (expenses), net (1,379,965) (4,175,836) (1,300,142) Total (40,093,624) (41,742,819) (39,992,488) Classification by function: Cost of products sold (36,177,408) (34,985,569) (36,697,842) Selling and distribution (1,459,608) (1,403,673) (1,077,308) General and administrative (1,434,272) (1,285,613) (1,095,403) Research and development (167,456) (162,010) (169,635) Other income (expenses), net (854,880) (3,905,954) (952,300) Total (40,093,624) (41,742,819) (39,992,488) |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment information (Tables) [Abstract] | |
Schedule of results of operations by segment | (b) Results by segment 2017 Operating expenses Net Cost of Selling, general Results from Other sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals (i) 25,179,288 (20,478,914) 4,700,374 (773,396) (197,275) 3,729,703 Polyolefins 19,650,398 (15,432,179) 4,218,219 (1,321,575) (177,518) 2,719,126 Vinyls 3,066,879 (2,572,774) 494,105 (162,989) (163,374) 167,742 USA and Europe 9,854,496 (7,419,261) 2,435,235 (582,672) (21,279) 1,831,284 Mexico 3,600,820 (2,097,471) 1,503,349 (283,318) 27,914 1,247,945 Total 61,351,881 (48,000,599) 13,351,282 (3,123,950) (531,532) 9,695,800 Other segments 83,720 (65,743) 17,977 (13,391) (2,430) 2,156 Corporate unit (61,384) 39,956 (320,918) (ii) (342,346) Braskem consolidated before 61,435,601 (48,066,342) 13,369,259 (3,198,725) 39,956 (854,880) 9,355,610 Eliminations and reclassifications (12,175,007) 11,888,934 (286,073) 137,389 (148,684) Total 49,260,594 (36,177,408) 13,083,186 (3,061,336) 39,956 (854,880) 9,206,926 Adjusted 2016 Operating expenses Net Cost of Selling, general Results from Other sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals (i) 25,062,602 (20,248,175) 4,814,427 (680,083) (409,920) 3,724,425 Polyolefins 20,307,367 (15,980,935) 4,326,432 (1,284,665) (199,098) 2,842,670 Vinyls 3,016,390 (2,815,184) 201,206 (236,771) (71,880) (107,444) USA and Europe 8,896,071 (6,080,722) 2,815,349 (497,810) (71,000) 2,246,540 Mexico 1,586,927 (1,152,047) 434,880 (231,795) (4,805) 198,282 Total 58,869,357 (46,277,063) 12,592,294 (2,931,124) (756,703) 8,904,473 Other segments 12,202 (14,760) (2,558) (1,876) (20,864) (25,298) Corporate unit (33,582) 30,078 (3,128,387) (iii) (3,131,893) Braskem consolidated before 58,881,559 (46,291,823) 12,589,736 (2,966,582) 30,078 (3,905,954) 5,747,282 Eliminations and reclassifications (11,217,571) 11,306,254 88,683 115,286 203,965 Total 47,663,988 (34,985,569) 12,678,419 (2,851,296) 30,078 (3,905,954) 5,951,247 Adjusted 2015 Operating expenses Net Cost of Selling, general Results from Other sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net profit (loss) Reporting segments Chemicals (i) 24,269,768 (20,086,768) 4,183,000 (644,598) (158,797) 3,379,604 Polyolefins 19,986,174 (15,420,138) 4,566,036 (1,206,374) (189,988) 3,169,674 Vinyls 2,780,075 (2,393,660) 386,415 (220,139) (53,918) 112,358 USA and Europe 8,239,913 (6,920,464) 1,319,449 (392,319) (55,089) 872,040 Mexico 472,002 (486,832) (14,830) (88,249) 3,817 (99,262) Total 55,747,932 (45,307,862) 10,440,070 (2,551,679) (453,975) 7,434,414 Other segments 159,510 (150,213) 9,297 (6,467) (73,879) (71,049) Corporate unit 103,604 2,219 (357,165) (251,340) Braskem consolidated before 55,907,442 (45,458,075) 10,449,367 (2,454,542) 2,219 (885,019) 7,112,025 Eliminations and reclassifications (9,027,453) 8,760,233 (267,220) 112,196 (67,281) (222,305) Total 46,879,989 (36,697,842) 10,182,147 (2,342,346) 2,219 (952,300) 6,889,720 (i) The Basic Petrochemicals Segment changed its name to the Chemicals Segment, seeking to adopt nomenclature more closely aligned with the segment's markets. (ii) Includes gain from sale of the former “Chemical distribution” segment in the amount of R$276,816 (Note 5). (iii) Inclusion of the provision for the Leniency Agreement in the amount of R$2,860,402 (Note 29). |
Schedule of long-lived assets by segment | (c) Long-lived assets by segment 2017 2016 Reporting segments Chemicals 11,136,125 11,417,669 Polyolefins 5,072,162 5,162,075 Vinyls 2,433,882 2,621,376 USA and Europe 2,587,302 2,015,492 Mexico 10,733,277 10,607,951 Total 31,962,748 31,824,563 Other segments 526,359 321,234 Total 32,489,107 32,145,797 |
Insurance coverage (Tables)
Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance coverage (Tables) [Abstract] | |
Schedule of insurance policy information | The following table presents additional information on the policies in force. Each has maximum indemnity limits (“MIL”) per event to cover possible claims in view of the nature of the Company's activities and benchmarks, as well estimated maximum loss studies prepared by external advisors. Maximum indemnity limit Amount insured Maturity US$ million US$ million Units in Brazil April 10, 2020 3,375 26,406 Units in United States and Germany April 10, 2020 500 2,037 Units in Mexico April 10, 2020 2,936 6,068 Total 34,511 |
Subsequent events (Tables)
Subsequent events (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent events (Tables) [Abstract] | |
Schedule of Braskem prepaid borrowings | (h) During 2018 and 2019, Braskem prepaid borrowings, as follows: Annual financial charges (%) Prepayments Foreign currency Bonds 7.38 825,720 Export credit notes US dollar exchange variation + interest between 7.30 and 7.87 612,810 Working capital US dollar exchange variation + 1.88% above Libor 865,890 2,304,420 Local currency BNDES TJLP + interest between 0.00 and 2.62 29,330 BNDES SELIC + 2.32 21,065 BNDES Interest between 3.50 and 4.00 32,839 BNB/FINEP 5.84 138,230 Export credit notes 105.00% of CDI 435,000 Export credit notes 108.00% of CDI 66,667 723,131 3,027,551 (i) In November 2018, the subsidiary Braskem Netherlands B.V. secured a financing facility of US$295 million guaranteed by SACE Covered Facility Agreement, the Italian export credit agency, with maturity in November 2028 and charges Us dollar exchange variation + semianual Libor + 0.90% per year. |
Operations (Details 1)
Operations (Details 1) - Cetrel R$ in Thousands | Sep. 30, 2017BRL (R$) |
Current and non-current assets | |
Cash and cash equivalents | R$ 1819 |
Financial investments | 35,186 |
Trade accounts receivable | 55,055 |
Inventories | 8,152 |
Deferred income tax and social contribution | 106,760 |
Property, plant and equipment | 287,905 |
Intangible assets | 52,556 |
Other assets | 25,852 |
Total Assets | 573,285 |
Current and non-current liabilities | |
Trade payables | 16,019 |
Borrowings | 18,485 |
Debentures | 317,960 |
Other liabilities | 29,787 |
Total Liabilities | 382,251 |
Net assets (assets (-) liabilities) | R$ 191034 |
Operations (Details 2)
Operations (Details 2) R$ in Thousands | Sep. 30, 2017BRL (R$) |
Consideration | |
Acquisition of 1,269,290 shares (63.66% of the capital) | R$ 610000 |
(A) Total consideration transferred | R$ 610000 |
% of participation | 63.66% |
(B) Cetrel's shareholders' equity on September 30. 2017 | R$ 121612 |
Result (A) - (B) | R$ 488388 |
Total | |
Consideration | |
% of participation | 100.00% |
(B) Cetrel's shareholders' equity on September 30. 2017 | R$ 191034 |
Operations (Details Text)
Operations (Details Text) - BRL (R$) shares in Thousands, R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Jan. 09, 2017 | Dec. 31, 2016 | ||
Operations (Details Text) | |||||
Acquisition | R$ 610000 | ||||
Number of shares issued | 1,269,290 | ||||
Book value of the assets and liabilities of the acquired | 488,388 | ||||
Total investment | R$ 101258 | R$ 675000 | R$ 92313 | ||
Sale of subsidiaries | R$ 550000 | ||||
Current liabilities | R$ 18564423 | R$ 22942911 | |||
Odebrecht and subsidiaries | |||||
Operations (Details Text) | |||||
Percentage of voting interest in subsidiary | 50.11% | ||||
Percentage of ownership interest | 38.32% | ||||
Cetrel | |||||
Operations (Details Text) | |||||
Percentage of voting interest in subsidiary | [1] | 63.66% | |||
subsidiary customer acquisition | 70.00% | ||||
Braskem Idesa | |||||
Operations (Details Text) | |||||
Current liabilities | R$ 8907733 | ||||
Increase (decrease) in working capital | 1,145,404 | ||||
Net working capital | R$ 7762329 | ||||
[1] | Acquired on October 2, 2017. |
Summary of significant accoun_3
Summary of significant accounting policies (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Decription | |
Profit for the year to the statutory financial statements (filed in CVM) | R$ 4133321 |
Profit for the year in these financial statements (filed in SEC) | 3,915,771 |
Additional disbursement the Leniency Agreement (note 23.3.a) | |
Caption in the statement of operations | |
Other income (expenses), net | (375,476) |
Reversal of provision (note 35.r) | |
Caption in the statement of operations | |
Cost of products sold | 223,340 |
Deferred income tax and social contribution | |
Caption in the statement of operations | |
Current and deferred income tax and social contribution | R$ 65414 |
Summary of significant accoun_4
Summary of significant accounting policies (Details 2) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Alclor Química de Alagoas Ltda ("Alclor") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [1] | Brazil | Brazil | |
Voting interest | [1] | 100.00% | 100.00% | |
Braskem America Finance Company ("Braskem America Finance") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | EUA | EUA | EUA | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem America, Inc. ("Braskem America") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | EUA | EUA | EUA | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Argentina S.A. ("Braskem Argentina") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Argentina | Argentina | Argentina | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem International GmbH ("Braskem Austria") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [2] | Austria | Austria | Austria |
Voting interest | [2] | 100.00% | 100.00% | 100.00% |
Braskem Austria Finance GmbH ("Braskem Austria Finance") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [3] | Austria | Austria | |
Voting interest | [3] | 100.00% | 100.00% | |
Braskem Europe GmbH ("Braskem Alemanha") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Germany | Germany | Germany | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Finance Limited ("Braskem Finance") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Cayman Islands | Cayman Islands | Cayman Islands | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Idesa S.A.P.I. ("Braskem Idesa") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Mexico | Mexico | Mexico | |
Voting interest | 75.00% | 75.00% | 75.00% | |
Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Mexico | Mexico | Mexico | |
Voting interest | 75.00% | 75.00% | 75.00% | |
Braskem Incorporated Limited ("Braskem Inc") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Cayman Islands | Cayman Islands | Cayman Islands | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Mexico | Mexico | Mexico | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Mexico, S. de RL de CV ("Braskem México") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Mexico | Mexico | Mexico | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Mexico | Mexico | Mexico | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Netherlands B.V. ("Braskem Holanda") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Netherlands | Netherlands | Netherlands | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Netherlands Finance B.V. ("Braskem Holanda Finance") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Netherlands | Netherlands | Netherlands | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Netherlands Inc. B.V. ("Braskem Holanda Inc") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Netherlands | Netherlands | Netherlands | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Petroquímica Chile Ltda. ("Braskem Chile") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Chile | Chile | Chile | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Braskem Petroquímica Ltda. ("Braskem Petroquímica") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [4] | Brazil | Brazil | |
Voting interest | [4] | 100.00% | 100.00% | |
Quantiq | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [5] | Brazil | ||
Voting interest | [5] | 100.00% | ||
IQAG | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [5] | Brazil | ||
Voting interest | [5] | 100.00% | ||
Cetrel | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [6] | Brazil | ||
Voting interest | [6] | 63.66% | ||
Distribuidora de Água Camaçari S.A. ("DAC") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [7] | Brazil | ||
Voting interest | [7] | 63.66% | ||
Lantana Trading Co. Inc. ("Lantana") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Bahamas | Bahamas | Bahamas | |
Voting interest | 100.00% | 100.00% | 100.00% | |
Fundo de Investimento Multimercado Crédito Privado Sol ("FIM Sol") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | [8] | Brazil | Brazil | |
Voting interest | [8] | 100.00% | 100.00% | |
Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") | ||||
Direct and Indirect subsidiaries | ||||
Headquarters | Brazil | Brazil | Brazil | |
Voting interest | 100.00% | 100.00% | 100.00% | |
[1] | Merged into the subsidiary Braskem Petroquimica in April 2016. | |||
[2] | In the process of dissolution. | |||
[3] | Dissolved in January 2016. | |||
[4] | Merged into the Braskem in December 2017. | |||
[5] | Sold in April 2017 (Note 5). | |||
[6] | Acquired on October 2, 2017. | |||
[7] | Wholly-owned subsidiary of Cetrel. | |||
[8] | Contract terminated in 2016. |
Summary of significant accoun_5
Summary of significant accounting policies (Details 3) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. dollar - Brazilizan real | |||
Exchange variation effects | |||
End of period exchange rate | 3.3080 | 3.2591 | |
Average exchange rate | 3.1925 | 3.4833 | 3.3387 |
Average exchange rate - Variation | (0.0835) | ||
End of period variation rate | 1.50% | ||
Average variation rate | 4.33% | ||
U.S. dollar - Mexican peso | |||
Exchange variation effects | |||
End of period exchange rate | 19.689 | 20.6352 | |
Average exchange rate | 18.9142 | 18.6987 | 15.8846 |
Average exchange rate - Variation | 0.0115 | ||
End of period variation rate | (4.59%) | ||
Average variation rate | 17.72% | ||
U.S. dollar - Euro | |||
Exchange variation effects | |||
End of period exchange rate | 0.8464 | 0.9479 | |
Average exchange rate | 0.8871 | 0.9041 | 0.9019 |
Average exchange rate - Variation | (0.0189) | ||
End of period variation rate | (10.71%) | ||
Average variation rate | 0.24% |
Summary of significant accoun_6
Summary of significant accounting policies (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Estimated adjustment is the change in the methodology for calculating impairment pursuant to IFRS 9 | ||
Accumulated losses | R$ 217550 | |
Non-controlling interest in Braskem Idesa | (827,501) | R$ 1017880 |
Total | (1,045,051) | |
Adjustments estimated at the adoption of IFRS 9 | ||
Estimated adjustment is the change in the methodology for calculating impairment pursuant to IFRS 9 | ||
Accumulated losses | (9,989) | |
Total | (9,989) | |
Adjusted opening balance estimated on January 1, 2018 | ||
Estimated adjustment is the change in the methodology for calculating impairment pursuant to IFRS 9 | ||
Accumulated losses | (227,539) | |
Non-controlling interest in Braskem Idesa | (827,501) | |
Total | R$ 1055040 |
Summary of significant accoun_7
Summary of significant accounting policies (Details 5) R$ in Thousands | Dec. 31, 2017BRL (R$) |
IAS 39 | Cash and banks | |
Disclosure of financial assets | |
Assets at amortized cost | R$ 1428766 |
IAS 39 | Financial investments in Brazil | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 1,706,784 |
IAS 39 | Financial investments abroad | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 639,543 |
IAS 39 | Cash and cash equivalents | |
Disclosure of financial assets | |
Assets at fair value through other comprehensive income | 3,775,093 |
IAS 39 | LFT's and LF's | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 1,816,889 |
IAS 39 | Time deposit investments | |
Disclosure of financial assets | |
Assets at amortized cost | 440,616 |
IAS 39 | Time deposit investments | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 15,764 |
IAS 39 | Other | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 39,739 |
IAS 39 | Financial investments | |
Disclosure of financial assets | |
Book value financial assets | 2,313,008 |
IAS 39 | Trade accounts receivable | |
Disclosure of financial assets | |
Assets at amortized cost | 3,244,851 |
IAS 39 | Trade accounts receivable | |
Disclosure of financial assets | |
Assets at fair value through other comprehensive income | 73,841 |
IAS 39 | Derivatives | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 74,378 |
IFRS 9 | Cash and banks | |
Disclosure of financial assets | |
Assets at amortized cost | 1,428,766 |
IFRS 9 | Financial investments in Brazil | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 1,706,784 |
IFRS 9 | Financial investments abroad | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 639,543 |
IFRS 9 | Cash and cash equivalents | |
Disclosure of financial assets | |
Assets at fair value through other comprehensive income | 3,775,093 |
IFRS 9 | LFT's and LF's | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 1,816,889 |
IFRS 9 | Time deposit investments | |
Disclosure of financial assets | |
Assets at amortized cost | 440,616 |
IFRS 9 | Time deposit investments | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 15,764 |
IFRS 9 | Other | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | 39,739 |
IFRS 9 | Financial investments | |
Disclosure of financial assets | |
Book value financial assets | 2,313,008 |
IFRS 9 | Trade accounts receivable | |
Disclosure of financial assets | |
Assets at amortized cost | 3,235,463 |
IFRS 9 | Trade accounts receivable | |
Disclosure of financial assets | |
Assets at fair value through other comprehensive income | 73,240 |
IFRS 9 | Derivatives | |
Disclosure of financial assets | |
Assets at fair value through profit or loss | R$ 74378 |
Summary of significant accoun_8
Summary of significant accounting policies (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of significant accounting policies (Details Text) | |||
Provisions for discounts on customer receivables | R$ 601 | ||
Estimated credit losses were calculated based on the actual experience of credit loss (write offs) | five years | ||
Agreements that are exempt from recognition because they are short term, operating expense | R$ 85000 | ||
Interest paid | R$ 288424 | R$ 786063 | |
Costs of goods sold | 163,056 | 165,522 | |
Selling and distribution expenses | 7,155 | 5,848 | |
General and administrative expenses | 191,586 | 185,067 | |
Other income (expenses), net | R$ 208006 | R$ 135341 | |
Minimum estimate | |||
Summary of significant accounting policies (Details Text) | |||
Recognition of additional liabilities estimated | 1,700,000 | ||
Maximum estimate | |||
Summary of significant accounting policies (Details Text) | |||
Recognition of additional liabilities estimated | 1,900,000 | ||
Adjustments estimated at the adoption of IFRS 9 | |||
Summary of significant accounting policies (Details Text) | |||
Retained earnings | 9,989 | ||
Reduction in consolidated shareholders' equity, net of taxes | R$ 9388 |
Application of critical estim_3
Application of critical estimates and judgments (Details 1) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Buildings and Improvements | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 3.36% | 3.49% |
Machinery, equipment and facilities | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 8.34% | 9.34% |
Mines and wells | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 8.84% | 8.83% |
Furniture and fixtures | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 10.13% | 10.36% |
IT equipment | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 20.09% | 20.53% |
Lab equipment | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 9.56% | 9.65% |
Security equipment | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 9.77% | 9.78% |
Vehicles | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 17.51% | 22.72% |
Other | ||
Depreciation and depletion rates | ||
Average depreciation and depletion rates | 18.17% | 18.97% |
Application of critical estim_4
Application of critical estimates and judgments (Details Text) | 12 Months Ended |
Dec. 31, 2017 | |
Application of critical estimates and judgments (Details Text) | |
Intangible assets with indefinite useful lives | five-year |
Bottom of range | |
Application of critical estimates and judgments (Details Text) | |
Probability of loss | 25.00% |
Top of range | |
Application of critical estimates and judgments (Details Text) | |
Probability of loss | 50.00% |
Risk management (Details 1)
Risk management (Details 1) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Braskem's financial liabilities by maturity | |
Debentures | R$ 286141 |
Liquidity risk | |
Braskem's financial liabilities by maturity | |
Trade payables | 5,379,674 |
Borrowings | 36,449,416 |
Debentures | 425,296 |
Braskem Idesa borrowings | 12,519,980 |
Derivatives | 6,875 |
Loan to non-controlling shareholder of Braskem Idesa | 1,756,600 |
Leniency agreement (Note 23.3) | 2,333,896 |
At December 31, 2017 | 58,871,737 |
Until one year | Liquidity risk | |
Braskem's financial liabilities by maturity | |
Trade payables | 5,119,937 |
Borrowings | 1,256,574 |
Debentures | 28,569 |
Braskem Idesa borrowings | 820,282 |
Derivatives | 6,875 |
Leniency agreement (Note 23.3) | 257,347 |
At December 31, 2017 | 7,489,584 |
Between one and two years | Liquidity risk | |
Braskem's financial liabilities by maturity | |
Trade payables | 259,737 |
Borrowings | 3,963,839 |
Debentures | 83,520 |
Braskem Idesa borrowings | 1,832,863 |
Leniency agreement (Note 23.3) | 325,299 |
At December 31, 2017 | 6,465,258 |
Between two and five years | Liquidity risk | |
Braskem's financial liabilities by maturity | |
Borrowings | 6,708,910 |
Debentures | 133,206 |
Braskem Idesa borrowings | 2,250,575 |
Leniency agreement (Note 23.3) | 1,007,348 |
At December 31, 2017 | 10,100,039 |
More than five years | Liquidity risk | |
Braskem's financial liabilities by maturity | |
Borrowings | 24,520,093 |
Debentures | 180,001 |
Braskem Idesa borrowings | 7,616,260 |
Loan to non-controlling shareholder of Braskem Idesa | 1,756,600 |
Leniency agreement (Note 23.3) | 743,902 |
At December 31, 2017 | R$ 34816856 |
Risk management (Details Text)
Risk management (Details Text) | 12 Months Ended |
Dec. 31, 2017 | |
Risk Management Details Text [Abstract] | |
Percentage of debt denominated in US dollars | 70.00% |
Percentage, Cash and cash equivalents | 17.40% |
Description of hedging instruments used to hedge risk exposures and how they are used | Braskem has two revolving credit lines for the purpose of managing liquidity risks, which may be used without restrictions to improve the Company’s credit quality or in the event of deterioration in the macroeconomic scenario, in the amounts of: (i) US$750 million until December 2019; and (ii) US$500 million until September 2019 |
Available-for-sale assets and_3
Available-for-sale assets and discontinued operations (Details 1) - BRL (R$) R$ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets Classified As Held For Sale [Abstract] | ||
Cash and cash equivalents | R$ 40216 | R$ 76146 |
Trade accounts receivable | 119,076 | 65,626 |
Inventories | 82,815 | 84,296 |
Taxes recoverable | 46,858 | 45,859 |
Property, plant and equipment | 61,591 | 61,037 |
Intangible assets | 6,729 | 6,665 |
Other assets | 17,932 | 20,075 |
Total Non-current assets | 375,217 | 359,704 |
Liabilities classified as held for sale | ||
Trade payables | 75,852 | 62,692 |
Payroll and related charges | 7,099 | 11,170 |
Dividends | 6,371 | 6,371 |
Taxes payable | 9,668 | 7,064 |
Other payables | 3,043 | 8,099 |
Total Non-current liabilities | 102,033 | 95,396 |
Net assets (Assets (-) Liabilities) | R$ 273184 | R$ 264308 |
Available-for-sale assets and_4
Available-for-sale assets and discontinued operations (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Result With Discontinued Operations [Abstract] | |||
Net sales revenue | R$ 212238 | R$ 830754 | R$ 874702 |
Cost of products sold and services provided | (176,957) | (674,619) | (702,696) |
Gross profit | 35,281 | 156,135 | 172,006 |
Income (expenses) | |||
Selling and distribution | (10,164) | (45,938) | (38,856) |
General and administrative | (12,067) | (77,258) | (59,327) |
Other income (expenses), net | (1,298) | (608) | (25,029) |
Operating profit | 11,752 | 32,331 | 48,794 |
Financial results | 1,747 | 8,429 | (31,967) |
Profit before income tax and social contribution | 13,499 | 40,760 | 16,827 |
Current and deferred income tax and social contribution | (4,623) | (13,901) | (10,445) |
Result with discontinued operations | R$ 8876 | R$ 26859 | R$ 6382 |
Available-for-sale assets and_5
Available-for-sale assets and discontinued operations (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Discontinued Operations [Abstract] | ||
Profit before income tax and social contribution | R$ 40760 | R$ 16827 |
Adjustments for reconciliation of profit | ||
Depreciation, amortization and depletion | 5,428 | 5,639 |
Interest and monetary and exchange variations, net | (867) | 17,090 |
Other | 93 | 61 |
Total Adjustments for reconciliation of profit | 45,414 | 39,617 |
Changes in operating working capital | 41,642 | (18,720) |
Cash from operations | 87,056 | 20,897 |
Acquisitions to property, plant and equipment | (5,491) | (8,749) |
Other | 214 | |
Net cash used in investing activities | (5,491) | (8,535) |
Short-term and long-term debt | ||
Short-term and long-term debt - Obtained | 44,254 | |
Short-term and long-term debt - Payments | (57,543) | (2,121) |
Related parties | ||
Braskem Idesa borrowings - Obtained | 26,469 | 24,553 |
Braskem Idesa borrowings - Payments | (35,094) | (24,646) |
Dividends paid | (6,029) | (2,380) |
Net cash provided (used) by financing activities | (72,197) | 39,660 |
Increase in cash and cash equivalents | 9,368 | 52,022 |
Represented by | ||
Cash and cash equivalents at the beginning of the year | 66,778 | 14,756 |
Cash and cash equivalents at the end of the year | 76,146 | 66,778 |
Increase in cash and cash equivalents | R$ 9368 | R$ 52022 |
Available-for-sale assets and_6
Available-for-sale assets and discontinued operations (Details Text) - BRL (R$) R$ in Thousands | Apr. 03, 2018 | Dec. 31, 2017 | Apr. 03, 2017 | Jan. 09, 2017 |
Availableforsale Assets And Discontinued Operations Details Text [Abstract] | ||||
Sale of subsidiary | R$ 100000 | R$ 450000 | R$ 550000 | |
Sale of subsidiary, capital gain | R$ 276816 | |||
Sale of subsidiary, Total income | 550,000 | |||
Sale of subsidiary, net assets | R$ 273184 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and cash equivalents | |||||
Cash and banks | [1] | R$ 1428766 | R$ 2178611 | ||
Cash equivalents: | |||||
Total | 3,775,093 | 6,701,864 | R$ 7043262 | R$ 3891271 | |
Domestic market | |||||
Cash equivalents: | |||||
Total | 1,706,784 | 2,914,685 | |||
Foreign market | |||||
Cash equivalents: | |||||
Total | [1] | R$ 639543 | R$ 1608568 | ||
[1] | On December 31, 2017, it includes cash and banks of R$247,285 (R$172,430 on December 31, 2016) and cash equivalents of R$47,400 (R$29,169 on December 31, 2016) of the subsidiary Braskem Idesa, available for use exclusively in its project. |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and cash equivalents | |||
Cash and banks | [1] | R$ 1428766 | R$ 2178611 |
Braskem Idesa | |||
Cash and cash equivalents | |||
Cash and banks | 247,285 | 172,430 | |
Cash equivalents | R$ 47400 | R$ 29169 | |
[1] | On December 31, 2017, it includes cash and banks of R$247,285 (R$172,430 on December 31, 2016) and cash equivalents of R$47,400 (R$29,169 on December 31, 2016) of the subsidiary Braskem Idesa, available for use exclusively in its project. |
Financial investments (Details
Financial investments (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans And Receivables [Abstract] | |||
Time deposit investments | [1] | R$ 440616 | R$ 434015 |
Held-for-trading | |||
Time deposit investments | 15,764 | ||
Letras financeiras do tesouro - LFT's and Letras Financeiras - LF's | [2] | 1,816,889 | 755,712 |
Other | 39,739 | 756 | |
Total | 2,313,008 | 1,190,483 | |
Current assets | 2,302,672 | 1,190,483 | |
Non-current assets | 10,336 | ||
Total | R$ 2313008 | R$ 1190483 | |
[1] | This investment was given as guarantee to cover Braskem's obligation related to the constitution of a reserve account for the project finance of the subsidiary Braskem Idesa. The guarantee was withdrawn in April 2018 and this amount will become fully available. | ||
[2] | Government bonds held for trade refer to Brazilian floating-rate government bonds ('LFTs') issued by the Brazilian federal government and floating-rate bonds ('LFs') issued by financial institutions. These bonds have maturity above three months, immediate liquidity and expected realization in the short term. |
Trade accounts receivable (Deta
Trade accounts receivable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Costumers [Abstract] | |||
Domestic market | R$ 1459623 | R$ 869306 | |
Foreign market | 2,209,094 | 1,215,626 | |
Allowance for doubtful accounts | (350,025) | (380,559) | R$ 327974 |
Total customers portfolio | 3,318,692 | 1,704,373 | |
Current assets | 3,281,196 | 1,634,137 | |
Non-current assets | 37,496 | 70,236 | |
Total | R$ 3318692 | R$ 1704373 |
Trade accounts receivable (De_2
Trade accounts receivable (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Trade accounts receivable by maturity | |||
Trade accounts receivable | R$ 3668717 | R$ 2084932 | |
Allowance for doubtful accounts | (350,025) | (380,559) | R$ 327974 |
Total customers portfolio | 3,318,692 | 1,704,373 | |
Accounts receivables not past due | |||
Trade accounts receivable by maturity | |||
Trade accounts receivable | 2,886,546 | 1,668,063 | |
Past due securities | Up to 90 days | |||
Trade accounts receivable by maturity | |||
Trade accounts receivable | 567,590 | 173,125 | |
Past due securities | 91 to 180 days | |||
Trade accounts receivable by maturity | |||
Trade accounts receivable | 3,673 | 15,325 | |
Past due securities | As of 180 days | |||
Trade accounts receivable by maturity | |||
Trade accounts receivable | R$ 210908 | R$ 228419 |
Trade accounts receivable (De_3
Trade accounts receivable (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes In The Allowance For Doubtful Accounts [Abstract] | ||
Balance of provision at the beginning of the year | R$ 380559 | R$ 327974 |
Provision in the year | 18,573 | (102,065) |
Write-offs | 22,878 | 38,499 |
Addition through merger of Cetrel | (10,917) | |
Transfers (of) to non-current assets held for sale | 10,981 | |
Balance of provision at the end of the year | R$ 350025 | R$ 380559 |
Trade accounts receivable (De_4
Trade accounts receivable (Details Text) | 12 Months Ended |
Dec. 31, 2017 | |
Amount of receivables past due for over 180 days | |
Trade accounts receivable (Details Text) | |
Provision for impairment is based on the history of losses | 100.00% |
Amount of receivables past due between 90 and 180 days | |
Trade accounts receivable (Details Text) | |
Provision for impairment is based on the history of losses | 50.00% |
Amount of receivables under judicial collection | |
Trade accounts receivable (Details Text) | |
Provision for impairment is based on the history of losses | 100.00% |
Receivables arising from a second renegotiation with customers | |
Trade accounts receivable (Details Text) | |
Provision for impairment is based on the history of losses | 100.00% |
Inventories (Details 1)
Inventories (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Finished goods | R$ 4255114 | R$ 3444898 |
Raw materials, production inputs and packaging | 1,715,757 | 1,407,399 |
Maintenance materials | 365,803 | 312,167 |
Advances to suppliers | 275,169 | 103,267 |
Imports in transit and other | 74,670 | 31,816 |
Total | 6,686,513 | 5,299,547 |
In current assets | 6,640,049 | 5,238,014 |
In non-current assets | 46,464 | 61,533 |
Total | R$ 6686513 | R$ 5299547 |
Related parties (Details 1)
Related parties (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Trade accounts receivable | R$ 3281196 | R$ 1634137 |
Inventories | 6,640,049 | 5,238,014 |
Dividends and interest on capital | 10,859 | 14,986 |
Other | 288,391 | 180,915 |
Total assets | 52,731,844 | 51,821,851 |
Current liabilities | ||
Trade payables | 5,058,796 | 6,545,136 |
Other payables | 276,957 | 476,262 |
Odebrecht and subsidiaries | ||
Current assets | ||
Trade accounts receivable | 7,634 | 5,634 |
Inventories | 250,904 | |
Other | 50 | |
Total assets | 258,538 | 5,684 |
Current liabilities | ||
Trade payables | 21,530 | 77,461 |
Other payables | 2,338 | |
Total liabilities | 23,868 | 77,461 |
Petrobras and subsidiaries | ||
Current assets | ||
Trade accounts receivable | 45,184 | 33,843 |
Inventories | 118 | 5,434 |
Total assets | 45,302 | 39,277 |
Current liabilities | ||
Trade payables | 149,058 | 904,090 |
Other payables | 562 | |
Total liabilities | 149,620 | 904,090 |
Other | ||
Current assets | ||
Trade accounts receivable | 60,502 | 28,390 |
Dividends and interest on capital | 10,859 | 14,986 |
Total assets | 71,361 | 43,376 |
Current liabilities | ||
Trade payables | 700 | 1,226 |
Other payables | 7,591 | |
Total liabilities | 8,291 | 1,226 |
Total | ||
Current assets | ||
Trade accounts receivable | 113,320 | 67,867 |
Inventories | 251,022 | 5,434 |
Dividends and interest on capital | 10,859 | 14,986 |
Other | 50 | |
Total assets | 375,201 | 88,337 |
Current liabilities | ||
Trade payables | 171,288 | 982,777 |
Other payables | 10,491 | |
Total liabilities | R$ 181779 | R$ 982777 |
Related parties (Details 2)
Related parties (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transactions | |||
Financial income (expenses) | R$ 3942349 | R$ 6091257 | R$ 2475559 |
Odebrecht and subsidiaries | |||
Transactions | |||
Sales of products | 27,467 | 49,051 | 64,093 |
Purchases of raw materials, finished goods services and utilities | 742,161 | 1,564,103 | 3,692,625 |
Financial income (expenses) | 2,056 | (21) | |
General and administrative expenses | |||
Acquisition of subsidiary | 610,000 | ||
Petrobras and subsidiaries | |||
Transactions | |||
Sales of products | 1,810,789 | 2,023,815 | 1,620,335 |
Purchases of raw materials, finished goods services and utilities | 12,795,819 | 12,291,190 | 12,488,618 |
Financial income (expenses) | (39,433) | 6,452 | 6,723 |
Other | |||
Transactions | |||
Sales of products | 629,302 | 562,709 | 475,836 |
Purchases of raw materials, finished goods services and utilities | 5,664 | 56,170 | 108,688 |
General and administrative expenses | |||
Odebrecht Previdência Privada ("Odeprev") | 36,725 | 41,845 | 44,466 |
Total | |||
Transactions | |||
Sales of products | 2,467,558 | 2,635,575 | 2,160,264 |
Purchases of raw materials, finished goods services and utilities | 13,543,644 | 13,911,463 | 16,289,931 |
Financial income (expenses) | (37,377) | 6,431 | 6,723 |
General and administrative expenses | |||
Odebrecht Previdência Privada ("Odeprev") | 36,725 | R$ 41845 | R$ 44466 |
Acquisition of subsidiary | R$ 610000 |
Related parties (Details 3)
Related parties (Details 3) - Key management personnel of entity or parent - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Remuneration | |||
Short-term benefits | R$ 60303 | R$ 44277 | R$ 46562 |
Post-employment benefit | 664 | 515 | 272 |
Total | R$ 60967 | R$ 44792 | R$ 46834 |
Related parties (Details Text)
Related parties (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | |
Related parties (Details Text) | ||||
Description of related parties contract | As provided for in the Company’s bylaws, the Board of Directors has the exclusive power to decide on any contract with related parties but those related to the purchase of raw materials that exceed R$5,000 per operation or R$15,000 altogether per year. | |||
Odebrecht and subsidiaries | Braskem Idesa project | ||||
Related parties (Details Text) | ||||
Expenses for construction | R$ 734263 | R$ 3177121 | ||
Odebrecht and its subsidiaries | UCP and USL | ||||
Related parties (Details Text) | ||||
Advance payment on the acquisition of products | R$ 50904 | R$ 150000 | ||
Odebrecht and its subsidiaries | USL, UCP, ODB Agro Par and Brenco | ||||
Related parties (Details Text) | ||||
Amount of agreement | 200,000 | |||
Odebrecht and its subsidiaries | CNO | ||||
Related parties (Details Text) | ||||
Maintenance services | 120,000 | |||
Odebrecht and its subsidiaries | SAESA | ||||
Related parties (Details Text) | ||||
Power purchase agreement | R$ 517000 | |||
Term of agreement | 13 years | |||
Petrobras and its subsidiaries | ||||
Related parties (Details Text) | ||||
Description of related parties contract | On December 23, 2015, Braskem and Petrobras entered into an agreement for the annual purchase of 7 million tons of petrochemical naphtha for five years. This agreement includes commercial renegotiation rights for both parties as of the third year, in case of changes in certain market conditions. The established price is 102.1% of ARA international benchmark, which is the average price of inputs in the European ports of Amsterdam, Rotterdam and Antwerp) | |||
Petrobras and its subsidiaries | Petrobras Distribuidora S.A. | ||||
Related parties (Details Text) | ||||
Sale of gasoline | R$ 995602 | |||
Petrobras and its subsidiaries | REFAP | ||||
Related parties (Details Text) | ||||
Description of related parties contract | In November 2016, the Company entered into an agreement with Petrobras for the purchase of 108,000 tons of polymer-grade propylene through REFAP, with duration of 5 years | |||
Braskem joint venture | RPR | ||||
Related parties (Details Text) | ||||
Sale of gasoline | R$ 44698 | |||
Sale of gasoil | R$ 323949 |
Taxes recoverable (Details 1)
Taxes recoverable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Taxes Recoverable Brazil [Abstract] | |||
IPI | R$ 18226 | R$ 38909 | R$ 23996 |
Value-added tax on sales and services (ICMS) - normal operations | 483,248 | 495,339 | 403,842 |
ICMS - credits from PP&E | 140,904 | 125,145 | 121,954 |
Social integration program (PIS) and social contribution on revenue (COFINS) - normal operations | 22,389 | 32,823 | 69,431 |
PIS and COFINS - credits from PP&E | 223,297 | 253,503 | 230,030 |
Income tax and social contribution (IR and CSL) | 691,697 | 605,058 | 958,567 |
REINTEGRA program | 102,166 | 53,129 | 274,654 |
Federal supervenience | 140,537 | 155,533 | 173,436 |
Other | 4,322 | 1,046 | 14,281 |
Foreign subsidiaries | |||
Value-added tax ("IVA") | 92,119 | 132,152 | 277,751 |
Income tax (IR) | 46,939 | 19,103 | 80,600 |
Other | 4,021 | 2,628 | 1,559 |
Total | 1,969,865 | 1,914,368 | 2,630,101 |
Current assets | 982,629 | 826,015 | 1,312,341 |
Non-current assets | 987,236 | 1,088,353 | 1,317,760 |
Total | R$ 1969865 | R$ 1914368 | R$ 2630101 |
Taxes recoverable (Details Text
Taxes recoverable (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes recoverable (Details Text) | ||
Recognized credits on federal taxes | R$ 178716 | R$ 8694 |
Offset of federal taxes | R$ 138531 | R$ 230220 |
(i) between October 1, 2014 and February 28, 2016 | ||
Taxes recoverable (Details Text) | ||
REINTEGRA Program - Percentage of tax refunds to exporters | 3.00% | |
(ii) between March 1, 2016 and November 30, 2016 | ||
Taxes recoverable (Details Text) | ||
REINTEGRA Program - Percentage of tax refunds to exporters | 1.00% | |
(iii) between December 1, 2016 and December 31, 2017 | ||
Taxes recoverable (Details Text) | ||
REINTEGRA Program - Percentage of tax refunds to exporters | 0.10% | |
(iv) between January 1, 2017 and December 31, 2017 | ||
Taxes recoverable (Details Text) | ||
REINTEGRA Program - Percentage of tax refunds to exporters | 2.00% | |
(v) between January 1, 2018 and December 31, 2018 | ||
Taxes recoverable (Details Text) | ||
REINTEGRA Program - Percentage of tax refunds to exporters | 2.00% |
Investments (Details 1)
Investments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Information on investments | ||||
Net profit (loss) for the year | R$ 3915771 | R$ 729197 | R$ 2760189 | |
Equity | 5,472,800 | 1,720,710 | 945,489 | R$ 5597058 |
Borealis | ||||
Information on investments | ||||
Net profit (loss) for the year | 17,752 | 10,538 | (3,914) | |
Equity | R$ 166630 | 162,629 | ||
Interest in total and voting capital (%) | 20.00% | |||
RPR | ||||
Information on investments | ||||
Net profit (loss) for the year | R$ 106109 | 86,682 | 24,784 | |
Equity | R$ 201038 | 175,896 | ||
Interest in total and voting capital (%) | 33.20% | |||
Odebrecht Comercializadora de Energia S.A. ("OCE") | ||||
Information on investments | ||||
Net profit (loss) for the year | R$ 543 | (5,720) | R$ 10490 | |
Equity | R$ 5178 | R$ 5721 | ||
Interest in total and voting capital (%) | 20.00% |
Investments (Details 2)
Investments (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Changes in investments | |
Balance at Dec/2016 | R$ 92313 |
Incorporations | 28 |
Dividends and interest on equity | (34,753) |
Effect of results | 39,713 |
Provision for losses/other | (121) |
Equity valuation adjustments | 4,078 |
Balance at Dec/2017 | 101,258 |
Odebrecht Comercializadora de Energia S.A. ("OCE") | |
Changes in investments | |
Balance at Dec/2016 | 1,145 |
Effect of results | (109) |
Balance at Dec/2017 | 1,036 |
RPR | |
Changes in investments | |
Balance at Dec/2016 | 58,404 |
Dividends and interest on equity | (30,960) |
Effect of results | 35,230 |
Equity valuation adjustments | 4,078 |
Balance at Dec/2017 | 66,752 |
Other | |
Changes in investments | |
Balance at Dec/2016 | 238 |
Incorporations | 28 |
Provision for losses/other | (121) |
Balance at Dec/2017 | 145 |
Total Jointly-controlled investments | |
Changes in investments | |
Balance at Dec/2016 | 59,787 |
Incorporations | 28 |
Dividends and interest on equity | (30,960) |
Effect of results | 35,121 |
Provision for losses/other | (121) |
Equity valuation adjustments | 4,078 |
Balance at Dec/2017 | 67,933 |
Borealis | |
Changes in investments | |
Balance at Dec/2016 | 32,526 |
Dividends and interest on equity | (3,793) |
Effect of results | 4,592 |
Balance at Dec/2017 | 33,325 |
Total Associates | |
Changes in investments | |
Balance at Dec/2016 | 32,526 |
Dividends and interest on equity | (3,793) |
Effect of results | 4,592 |
Balance at Dec/2017 | R$ 33325 |
Investments (Details 3)
Investments (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||||
Cash and cash equivalents | R$ 3775093 | R$ 6701864 | R$ 7043262 | R$ 3891271 |
Financial investments | 2,302,672 | 1,190,483 | ||
Trade accounts receivable | 3,281,196 | 1,634,137 | ||
Inventories | 6,640,049 | 5,238,014 | ||
Taxes recoverable | 982,629 | 826,015 | 1,312,341 | |
Other receivables | 437,380 | 306,035 | ||
Total current assets | 17,419,019 | 15,896,548 | ||
Non-current assets held for sale | 359,704 | |||
Total Current assets and Non-current assets held for sale | 17,419,019 | 16,256,252 | ||
Non-current assets | ||||
Taxes recoverable | 987,236 | 1,088,353 | 1,317,760 | |
Non-current assets | 1,165,726 | 1,653,115 | ||
Other receivables | 670,756 | 678,334 | ||
Property, plant and equipment | 29,761,610 | 29,336,710 | ||
Intangible | 2,727,497 | 2,809,087 | ||
Total Non-current assets | 35,312,825 | 35,565,599 | ||
Total assets | 52,731,844 | 51,821,851 | ||
Current liabilities | ||||
Trade payables | 5,058,796 | 6,545,136 | ||
Borrowings | 1,184,781 | 2,594,463 | ||
Debentures | 27,183 | |||
Current | 9,691,450 | 10,437,791 | ||
Payroll and related charges | 630,517 | 562,455 | ||
Taxes payable | 894,769 | 624,080 | ||
Other payables | 1,076,927 | 2,178,986 | ||
Total Current liabilities | 18,564,423 | 22,942,911 | ||
Non-current liabilities held for sale | 95,396 | |||
Total Current liabilities and Non-current liabilities held for sale | 18,564,423 | 23,038,307 | ||
Non-current liabilities | ||||
Loan agreements | 22,176,640 | 20,736,604 | ||
Braskem Idesa Borrowings | 286,141 | |||
Non-controlling loan in Braskem Idesa | 1,756,600 | 1,620,519 | ||
Non-current liabilities | 234,996 | 206,245 | ||
Other payables | 4,475,240 | 4,705,711 | ||
Total Non-current liabilities | 28,694,621 | 27,062,834 | ||
Shareholders' equity | ||||
Attributable to the Company's shareholders | 6,300,301 | 2,738,590 | ||
Non-controlling interest in Braskem Idesa | (827,501) | (1,017,880) | ||
Total Shareholders' equity | 5,472,800 | 1,720,710 | 945,489 | R$ 5597058 |
Total liabilities and shareholders' equity | 52,731,844 | 51,821,851 | ||
Consolidated Braskem without the effect of Braskem Idesa consolidated | ||||
Current assets | ||||
Cash and cash equivalents | 3,480,407 | 6,500,265 | 6,908,623 | |
Financial investments | 2,302,672 | 1,190,483 | ||
Trade accounts receivable | 2,809,034 | 1,455,893 | ||
Inventories | 6,293,324 | 4,862,571 | ||
Taxes recoverable | 919,600 | 710,982 | ||
Other receivables | 392,750 | 278,865 | ||
Total current assets | 16,197,787 | 14,999,059 | ||
Non-current assets held for sale | 359,704 | |||
Total Current assets and Non-current assets held for sale | 16,197,787 | 15,358,763 | ||
Non-current assets | ||||
Taxes recoverable | 987,184 | 1,088,304 | ||
Non-current assets | 129,469 | 189,613 | ||
Related parties | 5,051,706 | 4,690,672 | ||
Other receivables | 637,549 | 648,511 | ||
Property, plant and equipment | 19,180,263 | 18,814,175 | ||
Intangible | 2,575,567 | 2,667,708 | ||
Total Non-current assets | 28,561,738 | 28,098,983 | ||
Total assets | 44,759,525 | 43,457,746 | ||
Current liabilities | ||||
Trade payables | 5,047,293 | 6,335,452 | ||
Borrowings | 1,184,781 | 2,594,463 | ||
Debentures | 27,183 | |||
Payroll and related charges | 609,883 | 540,405 | ||
Taxes payable | 881,702 | 611,231 | ||
Other payables | 1,019,346 | 2,053,031 | ||
Total Current liabilities | 8,770,188 | 12,134,582 | ||
Non-current liabilities held for sale | 95,396 | |||
Total Current liabilities and Non-current liabilities held for sale | 8,770,188 | 12,229,978 | ||
Non-current liabilities | ||||
Loan agreements | 22,176,640 | 20,736,604 | ||
Braskem Idesa Borrowings | 286,141 | |||
Non-current liabilities | 2,689,769 | 3,053,637 | ||
Other payables | 4,467,398 | 4,698,937 | ||
Total Non-current liabilities | 29,619,948 | 28,489,178 | ||
Shareholders' equity | ||||
Attributable to the Company's shareholders | 6,300,300 | 2,738,590 | ||
Non-controlling interest in Braskem Idesa | 69,089 | |||
Total Shareholders' equity | 6,369,389 | 2,738,590 | ||
Total liabilities and shareholders' equity | 44,759,525 | 43,457,746 | ||
Braskem Idesa consolidated | ||||
Current assets | ||||
Cash and cash equivalents | 294,686 | 201,600 | R$ 134639 | |
Trade accounts receivable | 620,531 | 247,465 | ||
Inventories | 346,725 | 375,443 | ||
Taxes recoverable | 63,029 | 115,033 | ||
Other receivables | 44,630 | 27,169 | ||
Total current assets | 1,369,601 | 966,710 | ||
Total Current assets and Non-current assets held for sale | 1,369,601 | 966,710 | ||
Non-current assets | ||||
Taxes recoverable | 52 | 49 | ||
Non-current assets | 1,036,257 | 1,463,502 | ||
Other receivables | 33,207 | 29,823 | ||
Property, plant and equipment | 11,228,346 | 11,171,400 | ||
Intangible | 151,930 | 141,379 | ||
Total Non-current assets | 12,449,792 | 12,806,153 | ||
Total assets | 13,819,393 | 13,772,863 | ||
Current liabilities | ||||
Trade payables | 159,872 | 278,905 | ||
Current | 9,691,450 | 10,437,791 | ||
Payroll and related charges | 20,634 | 22,050 | ||
Taxes payable | 13,067 | 12,849 | ||
Other payables | 57,581 | 125,955 | ||
Total Current liabilities | 9,942,604 | 10,877,550 | ||
Total Current liabilities and Non-current liabilities held for sale | 9,942,604 | 10,877,550 | ||
Non-current liabilities | ||||
Accounts payable to related parties | 5,065,971 | 4,698,881 | ||
Non-controlling loan in Braskem Idesa | 1,756,600 | 1,620,519 | ||
Other payables | 7,842 | 6,774 | ||
Total Non-current liabilities | 6,830,413 | 6,326,174 | ||
Shareholders' equity | ||||
Attributable to the Company's shareholders | (2,953,624) | (3,430,861) | ||
Total Shareholders' equity | (2,953,624) | (3,430,861) | ||
Total liabilities and shareholders' equity | 13,819,393 | 13,772,863 | ||
Eliminations | ||||
Current assets | ||||
Trade accounts receivable | (148,369) | (69,221) | ||
Total current assets | (148,369) | (69,221) | ||
Total Current assets and Non-current assets held for sale | (148,369) | (69,221) | ||
Non-current assets | ||||
Related parties | (5,051,706) | (4,690,672) | ||
Property, plant and equipment | (646,999) | (648,865) | ||
Total Non-current assets | (5,698,705) | (5,339,537) | ||
Total assets | (5,847,074) | (5,408,758) | ||
Current liabilities | ||||
Trade payables | (148,369) | (69,221) | ||
Total Current liabilities | (148,369) | (69,221) | ||
Total Current liabilities and Non-current liabilities held for sale | (148,369) | (69,221) | ||
Non-current liabilities | ||||
Accounts payable to related parties | (5,065,971) | (4,698,881) | ||
Non-current liabilities | (2,689,769) | (3,053,637) | ||
Total Non-current liabilities | (7,755,740) | (7,752,518) | ||
Shareholders' equity | ||||
Attributable to the Company's shareholders | 2,953,625 | 3,430,861 | ||
Non-controlling interest in Braskem Idesa | (896,590) | (1,017,880) | ||
Total Shareholders' equity | 2,057,035 | 2,412,981 | ||
Total liabilities and shareholders' equity | R$ 5847074 | R$ 5408758 |
Investments (Details 4)
Investments (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of operations | |||
Net sales revenue | R$ 49260594 | R$ 47663988 | R$ 46879989 |
Cost of products sold | (36,177,408) | (34,985,569) | (36,697,842) |
Gross Profit | 13,083,186 | 12,678,419 | 10,182,147 |
Income (expenses) | |||
Selling and distribution | (1,459,608) | (1,403,673) | (1,077,308) |
General and administrative | (1,434,272) | (1,285,613) | (1,095,403) |
Research and development | (167,456) | (162,010) | (169,635) |
Results from equity investments | 39,956 | 30,078 | 2,219 |
Other income (expenses), net | (854,880) | (3,905,954) | (952,300) |
Total Income (expenses) | 9,206,926 | 5,951,247 | 6,889,720 |
Financial results | |||
Financial expenses | (3,747,217) | (3,570,962) | (3,163,402) |
Financial income | 603,630 | 690,122 | 584,933 |
Exchange rate variations, net | (798,762) | (3,210,417) | 102,910 |
Total | (3,942,349) | (6,091,257) | (2,475,559) |
Profit (loss) before income tax and social contribution | 5,264,577 | (140,010) | 4,414,161 |
IR and CSL - current and deferred | (1,357,682) | (616,046) | |
Total | (1,357,682) | (616,046) | (1,660,354) |
Profit (loss) for the year of continued operations | 3,906,895 | (756,056) | 2,753,807 |
Discontinued operations results | |||
Profit (loss) from discontinued operations | 13,499 | 40,760 | 16,827 |
IR and CSL - current and deferred | (4,623) | (13,901) | (10,445) |
Total Discontinued operations results | 8,876 | 26,859 | 6,382 |
Profit (loss) for the year | 3,915,771 | (729,197) | R$ 2760189 |
Consolidated Braskem without the effect of Braskem Idesa consolidated | |||
Statement of operations | |||
Net sales revenue | 46,207,109 | 46,343,171 | |
Cost of products sold | (34,675,494) | (34,040,770) | |
Gross Profit | 11,531,615 | 12,302,401 | |
Income (expenses) | |||
Selling and distribution | (1,287,817) | (1,286,558) | |
General and administrative | (1,336,072) | (1,201,489) | |
Research and development | (167,456) | (162,010) | |
Results from equity investments | 191,949 | (923,096) | |
Other income (expenses), net | (887,185) | (3,913,567) | |
Total Income (expenses) | 8,045,034 | 4,815,681 | |
Financial results | |||
Financial expenses | (3,044,668) | (3,054,334) | |
Financial income | 850,367 | 955,423 | |
Exchange rate variations, net | (936,804) | (2,115,993) | |
Total | (3,131,105) | (4,214,904) | |
Profit (loss) before income tax and social contribution | 4,913,929 | 600,777 | |
IR and CSL - current and deferred | (1,057,699) | (1,039,107) | |
Total | (1,057,699) | (1,039,107) | |
Profit (loss) for the year of continued operations | 3,856,230 | (438,330) | |
Discontinued operations results | |||
Profit (loss) from discontinued operations | 13,499 | 40,760 | |
IR and CSL - current and deferred | (4,623) | (13,901) | |
Total Discontinued operations results | 8,876 | 26,859 | |
Profit (loss) for the year | 3,865,106 | (411,471) | |
Braskem Idesa consolidated | |||
Statement of operations | |||
Net sales revenue | 3,656,801 | 1,495,018 | |
Cost of products sold | (2,125,031) | (1,109,020) | |
Gross Profit | 1,531,770 | 385,998 | |
Income (expenses) | |||
Selling and distribution | (171,791) | (117,115) | |
General and administrative | (122,043) | (123,855) | |
Other income (expenses), net | 32,305 | 7,613 | |
Total Income (expenses) | 1,270,241 | 152,641 | |
Financial results | |||
Financial expenses | (973,952) | (688,868) | |
Financial income | 24,666 | 3,193 | |
Exchange rate variations, net | 132,186 | (1,094,424) | |
Total | (817,100) | (1,780,099) | |
Profit (loss) before income tax and social contribution | 453,141 | (1,627,458) | |
IR and CSL - current and deferred | (299,983) | 423,061 | |
Total | (299,983) | 423,061 | |
Profit (loss) for the year of continued operations | 153,158 | (1,204,397) | |
Discontinued operations results | |||
Profit (loss) for the year | 153,158 | (1,204,397) | |
Eliminations | |||
Statement of operations | |||
Net sales revenue | (603,316) | (174,201) | |
Cost of products sold | 623,117 | 164,221 | |
Gross Profit | 19,801 | (9,980) | |
Income (expenses) | |||
General and administrative | 23,843 | 39,731 | |
Results from equity investments | (151,993) | 953,174 | |
Total Income (expenses) | (108,349) | 982,925 | |
Financial results | |||
Financial expenses | 271,403 | 172,240 | |
Financial income | (271,403) | (268,494) | |
Exchange rate variations, net | 5,856 | ||
Total | 5,856 | (96,254) | |
Profit (loss) before income tax and social contribution | (102,493) | 886,671 | |
Profit (loss) for the year of continued operations | (102,493) | 886,671 | |
Discontinued operations results | |||
Profit (loss) for the year | R$ 102493 | R$ 886671 |
Investments (Details 5)
Investments (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | R$ 5264577 | R$ 99250 | R$ 4430988 |
Adjustments for reconciliation of profit (loss) | |||
Depreciation, amortization and depletion | 2,928,855 | 2,683,100 | 2,125,796 |
Results from equity investments | (39,956) | (30,078) | (2,219) |
Interest and monetary and exchange variations, net | 3,697,714 | 3,026,008 | 3,182,577 |
Gain on sale of investment in subsidiary | (276,816) | ||
Leniency agreement | 375,476 | 2,853,230 | |
Reversal of provisions | (223,340) | ||
Provision for losses and write-offs of long-lived assets | 213,184 | 41,016 | 130,758 |
Total Adjustments for reconciliation of profit | 11,939,694 | 8,474,026 | 9,867,900 |
Changes in operating working capital | |||
Financial investments | (953,228) | (649,535) | (144,955) |
Trade accounts receivable | (1,598,392) | 1,007,875 | (342,616) |
Inventories | (1,351,028) | 862,338 | (501,734) |
Taxes recoverable | 469,293 | 1,058,104 | 841,908 |
Prepaid expenses | (30,521) | 64,029 | (66,701) |
Other receivables | 25,802 | 353,981 | (10,174) |
Trade payables | (1,642,649) | (4,254,575) | (1,518,288) |
Taxes payable | (215,514) | (292,131) | 220,226 |
Advances from customers | (13,512) | 216,850 | (37,356) |
Leniency agreement | (1,343,803) | ||
Other payables | 250,137 | 596,695 | |
Cash from operations | 5,536,279 | 7,437,657 | 9,196,251 |
Interest paid | (2,154,053) | (1,826,942) | (1,872,229) |
Income tax and social contribution paid | (920,606) | (1,152,847) | (232,302) |
Net cash generated by operating activities | 2,461,620 | 4,457,868 | 7,091,720 |
Proceeds from the sale of fixed assets | 450,000 | ||
Acquisitions to property, plant and equipment | (608,181) | ||
Acquisitions of intangible assets | (2,273,197) | (2,586,511) | (3,337,925) |
Other | 24,977 | 34,061 | |
Net cash used in investing activities | (2,406,401) | (2,552,450) | (3,334,202) |
Short-term and long-term debt - Obtained | 8,492,341 | 4,107,626 | 5,481,546 |
Short-term and long-term debt - Payments | (8,779,091) | (4,901,593) | (6,087,217) |
Derivative transactions - payments | (810,279) | ||
Braskem Idesa borrowings - Obtained | 187,959 | 503,921 | 1,501,939 |
Braskem Idesa borrowings - Payments | (1,080,502) | (469,282) | (510,715) |
Related parties | |||
Dividends paid | (998,893) | (1,997,984) | (482,117) |
Net provided (used) in financing activities | (2,988,465) | (2,757,312) | (97,491) |
Exchange variation on cash of foreign subsidiaries | 6,475 | 586,642 | (508,036) |
Increase (decrease) in cash and cash equivalents | (2,926,771) | (265,252) | 3,151,991 |
Represented by | |||
Cash and cash equivalents at the beginning for the year | 6,701,864 | 7,043,262 | 3,891,271 |
Cash and cash equivalents at the end for the year | 3,775,093 | 6,701,864 | 7,043,262 |
Increase (decrease) in cash and cash equivalents | (2,926,771) | (265,252) | 3,151,991 |
Consolidated Braskem without the effect of Braskem Idesa consolidated | |||
Statement of cash flows | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | 4,913,929 | 641,537 | |
Adjustments for reconciliation of profit (loss) | |||
Depreciation, amortization and depletion | 2,230,466 | 2,381,160 | |
Results from equity investments | (191,949) | 923,096 | |
Interest and monetary and exchange variations, net | 2,900,745 | 1,851,033 | |
Gain on sale of investment in subsidiary | (276,816) | ||
Leniency agreement | 375,476 | 2,853,230 | |
Reversal of provisions | (223,340) | ||
Provision for losses and write-offs of long-lived assets | 212,759 | 40,530 | |
Total Adjustments for reconciliation of profit | 9,941,270 | 8,690,586 | |
Changes in operating working capital | |||
Financial investments | (953,228) | (649,535) | |
Trade accounts receivable | (1,304,474) | 1,083,117 | |
Inventories | (1,387,696) | 966,974 | |
Taxes recoverable | 415,923 | 976,770 | |
Prepaid expenses | (21,732) | 64,029 | |
Other receivables | 34,500 | 332,673 | |
Trade payables | (1,444,468) | (4,052,705) | |
Taxes payable | (132,697) | (674,466) | |
Advances from customers | (3,089) | 207,020 | |
Leniency agreement | (1,343,803) | ||
Other payables | 124,050 | 430,714 | |
Cash from operations | 3,924,556 | 7,375,177 | |
Interest paid | (1,648,971) | (1,611,718) | |
Income tax and social contribution paid | (919,236) | (1,152,847) | |
Net cash generated by operating activities | 1,356,349 | 4,610,612 | |
Proceeds from the sale of fixed assets | 450,000 | ||
Acquisitions to property, plant and equipment | (608,181) | ||
Acquisitions of intangible assets | (2,185,567) | (1,844,510) | |
Other | 24,977 | 34,061 | |
Net cash used in investing activities | (2,318,771) | (1,810,449) | |
Short-term and long-term debt - Obtained | 8,492,341 | 4,107,626 | |
Short-term and long-term debt - Payments | (8,779,091) | (4,901,593) | |
Derivative transactions - payments | (810,279) | ||
Related parties | |||
Obtained loans (payment of loans ) | 20,637 | (882,158) | |
Dividends paid | (998,893) | (1,997,984) | |
Net provided (used) in financing activities | (2,075,285) | (3,674,109) | |
Exchange variation on cash of foreign subsidiaries | 17,849 | 541,734 | |
Increase (decrease) in cash and cash equivalents | (3,019,858) | (332,212) | |
Represented by | |||
Cash and cash equivalents at the beginning for the year | 6,500,265 | 6,908,623 | |
Cash and cash equivalents at the end for the year | 3,480,407 | 6,500,265 | 6,908,623 |
Increase (decrease) in cash and cash equivalents | (3,019,858) | (332,212) | |
Braskem Idesa consolidated | |||
Statement of cash flows | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | 453,141 | (1,627,458) | |
Adjustments for reconciliation of profit (loss) | |||
Depreciation, amortization and depletion | 742,033 | 331,691 | |
Interest and monetary and exchange variations, net | 802,825 | 1,229,219 | |
Provision for losses and write-offs of long-lived assets | 425 | 486 | |
Total Adjustments for reconciliation of profit | 1,998,424 | (66,062) | |
Changes in operating working capital | |||
Trade accounts receivable | (373,066) | (126,617) | |
Inventories | 36,668 | (104,636) | |
Taxes recoverable | 53,370 | 81,334 | |
Prepaid expenses | (8,789) | ||
Other receivables | (8,698) | 21,308 | |
Trade payables | (119,033) | (150,495) | |
Taxes payable | (82,817) | 382,335 | |
Advances from customers | (10,423) | 9,830 | |
Other payables | 126,087 | 165,981 | |
Cash from operations | 1,611,723 | 212,978 | |
Interest paid | (505,082) | (215,224) | |
Income tax and social contribution paid | (1,370) | ||
Net cash generated by operating activities | 1,105,271 | (2,246) | |
Acquisitions of intangible assets | (87,630) | (892,499) | |
Net cash used in investing activities | (87,630) | (892,499) | |
Braskem Idesa borrowings - Obtained | 187,959 | 503,921 | |
Braskem Idesa borrowings - Payments | (1,080,502) | (469,282) | |
Related parties | |||
Obtained loans (payment of loans ) | (20,637) | 882,158 | |
Net provided (used) in financing activities | (913,180) | 916,797 | |
Exchange variation on cash of foreign subsidiaries | (11,374) | 44,908 | |
Increase (decrease) in cash and cash equivalents | 93,087 | 66,960 | |
Represented by | |||
Cash and cash equivalents at the beginning for the year | 201,600 | 134,639 | |
Cash and cash equivalents at the end for the year | 294,686 | 201,600 | R$ 134639 |
Increase (decrease) in cash and cash equivalents | 93,087 | 66,960 | |
Eliminations | |||
Statement of cash flows | |||
Profit (loss) before income tax and social contribution and for the result with discontinued operations | (102,493) | 886,671 | |
Adjustments for reconciliation of profit (loss) | |||
Depreciation, amortization and depletion | (43,644) | (29,751) | |
Results from equity investments | 151,993 | (953,174) | |
Interest and monetary and exchange variations, net | (5,856) | (54,244) | |
Total Adjustments for reconciliation of profit | 0 | (150,498) | |
Changes in operating working capital | |||
Trade accounts receivable | 79,148 | 51,375 | |
Trade payables | R$ 79148 | (51,375) | |
Cash from operations | (150,498) | ||
Net cash generated by operating activities | (150,498) | ||
Acquisitions of intangible assets | 150,498 | ||
Net cash used in investing activities | R$ 150498 |
Property, plant and equipment_2
Property, plant and equipment (Details 1) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017BRL (R$) | ||
Changes in property, plant and equipment | ||
Balance as of beginning | R$ 29336710 | |
Acquisitions | 2,245,241 | |
Additions for acquisition of subsidiary | 339,749 | |
Capitalized financial charges | 130,272 | |
Foreign currency translation adjustment | 623,213 | |
Other, net of depreciation/depletion | (211,271) | |
Depreciation / depletion | (2,702,304) | |
Net book value | 29,761,610 | |
Balance at | 29,761,610 | |
Cost | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 47,707,502 | |
Balance at | 50,799,704 | |
Accumulated amortization | ||
Changes in property, plant and equipment | ||
Balance as of beginning | (18,370,792) | |
Balance at | (21,038,094) | |
Land | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 471,655 | |
Additions for acquisition of subsidiary | 14,937 | |
Foreign currency translation adjustment | 5,600 | |
Transfers by concluded projects | 29,703 | [1] |
Other, net of depreciation/depletion | (21,249) | |
Net book value | 500,646 | |
Balance at | 500,646 | |
Land | Cost | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 471,655 | |
Balance at | 500,646 | |
Buildings and Improvements | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 4,419,072 | |
Additions for acquisition of subsidiary | 122,846 | |
Foreign currency translation adjustment | 168,554 | |
Transfers by concluded projects | 145,622 | [1] |
Other, net of depreciation/depletion | (5,149) | |
Depreciation / depletion | (280,448) | |
Net book value | 4,570,497 | |
Balance at | 4,570,497 | |
Buildings and Improvements | Cost | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 5,530,714 | |
Balance at | 6,058,259 | |
Buildings and Improvements | Accumulated amortization | ||
Changes in property, plant and equipment | ||
Balance as of beginning | (1,111,642) | |
Balance at | (1,487,762) | |
Machinery, equipment and facilities | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 20,208,912 | |
Acquisitions | 149,018 | |
Additions for acquisition of subsidiary | 63,081 | |
Foreign currency translation adjustment | 387,757 | |
Transfers by concluded projects | 2,216,704 | [1] |
Other, net of depreciation/depletion | (166,585) | |
Depreciation / depletion | (2,275,788) | |
Net book value | 20,583,099 | |
Balance at | 20,583,099 | |
Machinery, equipment and facilities | Cost | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 36,804,409 | |
Balance at | 39,211,042 | |
Machinery, equipment and facilities | Accumulated amortization | ||
Changes in property, plant and equipment | ||
Balance as of beginning | (16,595,497) | |
Balance at | (18,627,943) | |
Projects and Stoppage in Progress | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 3,495,965 | [2] |
Acquisitions | 2,090,157 | [2] |
Additions for acquisition of subsidiary | 46,833 | [2] |
Capitalized financial charges | 130,272 | [2] |
Foreign currency translation adjustment | 56,425 | [2] |
Transfers by concluded projects | (2,539,041) | [1],[2] |
Other, net of depreciation/depletion | (5,946) | [2] |
Net book value | 3,274,665 | [2] |
Balance at | 3,274,665 | [2] |
Projects and Stoppage in Progress | Cost | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 3,495,965 | [2] |
Balance at | 3,274,665 | [2] |
Other | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 741,106 | |
Acquisitions | 6,066 | |
Additions for acquisition of subsidiary | 92,052 | |
Foreign currency translation adjustment | 4,877 | |
Transfers by concluded projects | 147,012 | [1] |
Other, net of depreciation/depletion | (12,342) | |
Depreciation / depletion | (146,068) | |
Net book value | 832,703 | |
Balance at | 832,703 | |
Other | Cost | ||
Changes in property, plant and equipment | ||
Balance as of beginning | 1,404,759 | |
Balance at | 1,755,092 | |
Other | Accumulated amortization | ||
Changes in property, plant and equipment | ||
Balance as of beginning | (663,653) | |
Balance at | R$ 922389 | |
[1] | Related mainly to expenses incurred by the Braskem, which were transferred to 'Machinery, equipment and facilities' (R$1,592,844). | |
[2] | On December 31, 2017, the main amounts recorded under this item corresponded to expenses with scheduled maintenance shutdowns in Brazil and at overseas plants that are either in the preparation phase or ongoing (R$578,920), capitalized financial charges (R$174,333), inventories of spare parts (R$441,262), strategic projects in Brazil (R$436,460), which include the processing of ethane at UNIB BA and the strategic projects of Braskem America (R$552,727), such as the construction of the new unit of polypropylene production in the United States (Note 1(a.iii)). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. |
Property, plant and equipment_3
Property, plant and equipment (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, plant and equipment by country | ||
Property, plant and equipment | R$ 29761610 | R$ 29336710 |
Brazil | ||
Property, plant and equipment by country | ||
Property, plant and equipment | 16,665,988 | 16,939,745 |
Mexico | ||
Property, plant and equipment by country | ||
Property, plant and equipment | 10,581,347 | 10,522,536 |
United States of America | ||
Property, plant and equipment by country | ||
Property, plant and equipment | 2,275,987 | 1,668,399 |
Germany | ||
Property, plant and equipment by country | ||
Property, plant and equipment | 229,328 | 205,650 |
Other | ||
Property, plant and equipment by country | ||
Property, plant and equipment | R$ 8960 | R$ 380 |
Property, plant and equipment_4
Property, plant and equipment (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, plant and equipment (Details Text) | ||
Shutdown maintenance in preparation or in progress expenses | R$ 578920 | |
Charges amounting were capitalized | R$ 130272 | R$ 367780 |
Average rate of charges | 7.78% | 8.12% |
Capitalized financial charges | ||
Property, plant and equipment (Details Text) | ||
Shutdown maintenance in preparation or in progress expenses | R$ 174333 | |
Inventories of spare parts | ||
Property, plant and equipment (Details Text) | ||
Shutdown maintenance in preparation or in progress expenses | (441,262) | |
Strategic projects in Brazil | ||
Property, plant and equipment (Details Text) | ||
Shutdown maintenance in preparation or in progress expenses | (436,460) | |
Strategic projects of Braskem America | ||
Property, plant and equipment (Details Text) | ||
Shutdown maintenance in preparation or in progress expenses | (552,727) | |
Machinery, equipment and facilities | ||
Property, plant and equipment (Details Text) | ||
Expenditures recognised in course of its construction | R$ 1592844 |
Intangible assets (Details 1)
Intangible assets (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Changes in intangible assets | |
Beginning balance | R$ 2809087 |
Acquisitions | 27,956 |
Additions through acquisition on subsidiary | 1,718 |
Foreign currency translation adjustment | 12,184 |
Other, net of amortization | 983 |
Amortization | (124,431) |
Net book value | 2,727,497 |
Ending balance | 2,727,497 |
Cost | |
Changes in intangible assets | |
Beginning balance | 4,866,795 |
Ending balance | 4,916,819 |
Accumulated amortization | |
Changes in intangible assets | |
Beginning balance | (2,057,708) |
Ending balance | (2,189,322) |
Goodwill based on expected future profitability | |
Changes in intangible assets | |
Beginning balance | 2,058,874 |
Net book value | 2,058,874 |
Ending balance | 2,058,874 |
Goodwill based on expected future profitability | Cost | |
Changes in intangible assets | |
Beginning balance | 3,187,722 |
Ending balance | 3,187,722 |
Goodwill based on expected future profitability | Accumulated amortization | |
Changes in intangible assets | |
Beginning balance | (1,128,848) |
Ending balance | (1,128,848) |
Brands and Patents | |
Changes in intangible assets | |
Beginning balance | 228,632 |
Acquisitions | 340 |
Foreign currency translation adjustment | 8,357 |
Other, net of amortization | 1,107 |
Amortization | (8,349) |
Net book value | 230,087 |
Ending balance | R$ 230087 |
Average annual rates of amortization | 5.89% |
Brands and Patents | Cost | |
Changes in intangible assets | |
Beginning balance | R$ 339512 |
Ending balance | 349,316 |
Brands and Patents | Accumulated amortization | |
Changes in intangible assets | |
Beginning balance | (110,880) |
Ending balance | (119,229) |
Software licenses | |
Changes in intangible assets | |
Beginning balance | 202,337 |
Acquisitions | 27,319 |
Additions through acquisition on subsidiary | 1,316 |
Foreign currency translation adjustment | 4,759 |
Other, net of amortization | (124) |
Amortization | (43,467) |
Net book value | 192,140 |
Ending balance | R$ 192140 |
Average annual rates of amortization | 11.91% |
Software licenses | Cost | |
Changes in intangible assets | |
Beginning balance | R$ 566673 |
Ending balance | 607,528 |
Software licenses | Accumulated amortization | |
Changes in intangible assets | |
Beginning balance | (364,336) |
Ending balance | (415,388) |
Customers and Suppliers Agreements | |
Changes in intangible assets | |
Beginning balance | 319,244 |
Acquisitions | 297 |
Additions through acquisition on subsidiary | 402 |
Foreign currency translation adjustment | (932) |
Amortization | (72,615) |
Net book value | 246,396 |
Ending balance | R$ 246396 |
Average annual rates of amortization | 6.00% |
Customers and Suppliers Agreements | Cost | |
Changes in intangible assets | |
Beginning balance | R$ 772888 |
Ending balance | 772,253 |
Customers and Suppliers Agreements | Accumulated amortization | |
Changes in intangible assets | |
Beginning balance | (453,644) |
Ending balance | R$ 525857 |
Intangible assets (Details 2)
Intangible assets (Details 2) R$ / shares in Units, R$ in Thousands | Dec. 31, 2017BRL (R$)R$ / shares |
CGU - UNIB - South | |
CGU and operating segments | |
Allocated goodwill | R$ 926854 |
Cash flow (CF) | 11,970,190 |
Book value (with goodwill and work capital) | R$ 2912030 |
CF/Book value | R$ / shares | R$ 4.1 |
Operating segment - Polyolefins | |
CGU and operating segments | |
Allocated goodwill | R$ 939667 |
Cash flow (CF) | 26,654,836 |
Book value (with goodwill and work capital) | R$ 7766269 |
CF/Book value | R$ / shares | R$ 3.4 |
Operating segment - Vinyls | |
CGU and operating segments | |
Allocated goodwill | R$ 192353 |
Cash flow (CF) | 5,091,859 |
Book value (with goodwill and work capital) | R$ 2895428 |
CF/Book value | R$ / shares | R$ 1.8 |
Intangible assets (Details 3)
Intangible assets (Details 3) R$ in Thousands | Dec. 31, 2017BRL (R$) |
CGU - UNIB - South | |
CGU and operating segments | |
+0.5% on discount rate | R$ 11327443 |
-0.5% on perpetuity | 11,485,194 |
Operating segment - Polyolefins | |
CGU and operating segments | |
+0.5% on discount rate | 25,042,032 |
-0.5% on perpetuity | 25,405,611 |
Operating segment - Vinyls | |
CGU and operating segments | |
+0.5% on discount rate | 4,808,622 |
-0.5% on perpetuity | R$ 4877875 |
Intangible assets (Details 4)
Intangible assets (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible assets by country | ||
Intangible assets | R$ 2727497 | R$ 2809087 |
Brazil | ||
Intangible assets by country | ||
Intangible assets | 2,502,231 | 2,526,371 |
Mexico | ||
Intangible assets by country | ||
Intangible assets | 151,930 | 141,379 |
United States of America | ||
Intangible assets by country | ||
Intangible assets | 47,357 | 115,355 |
Germany | ||
Intangible assets by country | ||
Intangible assets | 25,948 | 25,956 |
Other | ||
Intangible assets by country | ||
Intangible assets | R$ 31 | R$ 26 |
Intangible assets (Details Text
Intangible assets (Details Text) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets (Details Text) | |
Discount rate applied to cash flow projections | 12.33% |
Inflation rate considered | 4.10% |
Vinyls segment, exceeded the book value of assets | |
Intangible assets (Details Text) | |
Discount rate applied to cash flow projections | 76.00% |
Technologies | |
Intangible assets (Details Text) | |
Useful lives or amortisation rates | 10 and 20 years |
Customers and Suppliers Agreements | |
Intangible assets (Details Text) | |
Useful lives or amortisation rates | 14 and 28 years |
Software licenses | |
Intangible assets (Details Text) | |
Useful lives or amortisation rates | 3 and 10 years |
Borrowings (Details 1)
Borrowings (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Foreign currency and local currency | |||
Total borrowings | R$ 23361421 | R$ 23331067 | |
Current liabilities | 1,184,781 | 2,594,463 | |
Non-current liabilities | 22,176,640 | 20,736,604 | |
Foreign currency | |||
Foreign currency and local currency | |||
Total borrowings | 22,141,580 | 18,176,310 | |
Current liabilities | 985,639 | 1,128,524 | |
Non-current liabilities | 21,155,941 | 17,047,786 | |
Transactions costs | (285,657) | (199,570) | |
Foreign currency | Bonds | |||
Foreign currency and local currency | |||
Total borrowings | R$ 20082588 | 14,216,539 | |
Annual financial charges | Note 15 (b) | ||
Foreign currency | Advances on exchange contracts | |||
Foreign currency and local currency | |||
Total borrowings | 362,779 | ||
Annual financial charges | US dollar exchange variation + 3.52% | ||
Foreign currency | Export prepayment | |||
Foreign currency and local currency | |||
Total borrowings | R$ 781573 | 777,801 | |
Annual financial charges | Note 15 (d) | ||
Foreign currency | BNDES | |||
Foreign currency and local currency | |||
Total borrowings | 201,147 | ||
Annual financial charges | Exchange variation + interest between 6.82 and 6.98 | ||
Foreign currency | Export credit notes | |||
Foreign currency and local currency | |||
Total borrowings | R$ 679895 | 1,173,127 | |
Annual financial charges | Exchange variation + interest between 7.30 and 7.87 | ||
Foreign currency | Working capital | |||
Foreign currency and local currency | |||
Total borrowings | R$ 883181 | 1,644,487 | |
Annual financial charges | US dollar exchange variation + 1.88% above Libor | ||
Local currency | |||
Foreign currency and local currency | |||
Total borrowings | R$ 1219841 | 5,154,757 | |
Current liabilities | 199,142 | 1,465,939 | |
Non-current liabilities | 1,020,699 | 3,688,818 | |
Transactions costs | R$ 4931 | (11,845) | |
Local currency | Export credit notes | |||
Foreign currency and local currency | |||
Total borrowings | 381,632 | ||
Annual financial charges | 8.00 | ||
Local currency | Export credit notes | |||
Foreign currency and local currency | |||
Total borrowings | [1] | R$ 508146 | 1,717,262 |
Annual financial charges | 105.00 and 108.00 of CDI | ||
Local currency | BNDES | |||
Foreign currency and local currency | |||
Total borrowings | R$ 31347 | 1,527,765 | |
Annual financial charges | TJLP + interest between 0.00 and 2.62 | ||
Local currency | BNDES | |||
Foreign currency and local currency | |||
Total borrowings | R$ 22039 | 602,648 | |
Annual financial charges | SELIC + 2.32 | ||
Local currency | BNDES | |||
Foreign currency and local currency | |||
Total borrowings | R$ 132020 | 288,486 | |
Annual financial charges | Interest between 3.50 and 7.00 | ||
Local currency | BNB/ FINEP/ FUNDES/FINISA/FINAME | |||
Foreign currency and local currency | |||
Total borrowings | R$ 486227 | 580,647 | |
Annual financial charges | 6.17 | ||
Local currency | FINAME | |||
Foreign currency and local currency | |||
Total borrowings | R$ 2293 | 1,850 | |
Annual financial charges | TJLP + interest between 1.90 and 6.00 | ||
Local currency | Fundo de Desenvolvimento do Nordeste (FDNE) | |||
Foreign currency and local currency | |||
Total borrowings | R$ 42045 | 46,991 | |
Annual financial charges | 6.5 | ||
Local currency | Other | |||
Foreign currency and local currency | |||
Total borrowings | R$ 655 | R$ 19321 | |
Annual financial charges | CDI + 0.04% | ||
[1] | The Company enters into swap transactions to offset the variation in the Interbank Certificate of Deposit (CDI) rate (Note 19.3.1 (a.ii)). |
Borrowings (Details 2)
Borrowings (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Bonds | |||
Borrowings | R$ 23361421 | R$ 23331067 | |
Foreign currency | |||
Bonds | |||
Borrowings | R$ 22141580 | 18,176,310 | |
Foreign currency | Bonds 1 | |||
Bonds | |||
Issue date | September-2006 | ||
Issue amount US$ | R$ 275000 | ||
Maturity | January-2017 | ||
Interest (% per year) | 8.00% | ||
Borrowings | 188,325 | ||
Foreign currency | Bonds 2 | |||
Bonds | |||
Issue date | June-2008 | ||
Issue amount US$ | R$ 500000 | ||
Maturity | June-2018 | ||
Interest (% per year) | 7.25% | ||
Borrowings | R$ 440274 | 433,766 | |
Foreign currency | Bonds 3 | |||
Bonds | |||
Issue date | May-2010 | ||
Issue amount US$ | R$ 400000 | ||
Maturity | May-2020 | ||
Interest (% per year) | 7.00% | ||
Borrowings | R$ 159341 | 156,985 | |
Foreign currency | Bonds 4 | |||
Bonds | |||
Issue date | May-2010 | ||
Issue amount US$ | R$ 350000 | ||
Maturity | May-2020 | ||
Interest (% per year) | 7.00% | ||
Borrowings | R$ 1169732 | 1,152,440 | |
Foreign currency | Bonds 5 | |||
Bonds | |||
Issue date | October-2010 | ||
Issue amount US$ | R$ 450000 | ||
Maturity | no maturity date | ||
Interest (% per year) | 7.38% | ||
Borrowings | R$ 1514826 | 1,492,434 | |
Foreign currency | Bonds 6 | |||
Bonds | |||
Issue date | April-2011 | ||
Issue amount US$ | R$ 750000 | ||
Maturity | April-2021 | ||
Interest (% per year) | 5.75% | ||
Borrowings | R$ 2502351 | 2,465,361 | |
Foreign currency | Bonds 7 | |||
Bonds | |||
Issue date | July-2011 | ||
Issue amount US$ | R$ 500000 | ||
Maturity | July-2041 | ||
Interest (% per year) | 7.13% | ||
Borrowings | R$ 1705722 | 1,680,507 | |
Foreign currency | Bonds 8 | |||
Bonds | |||
Issue date | February-2012 | ||
Issue amount US$ | R$ 250000 | ||
Maturity | April-2021 | ||
Interest (% per year) | 5.75% | ||
Borrowings | R$ 836907 | 824,535 | |
Foreign currency | Bonds 9 | |||
Bonds | |||
Issue date | February-2012 | ||
Issue amount US$ | R$ 250000 | ||
Maturity | no maturity date | ||
Interest (% per year) | 7.38% | ||
Borrowings | R$ 841570 | 829,130 | |
Foreign currency | Bonds 10 | |||
Bonds | |||
Issue date | May-2012 | ||
Issue amount US$ | R$ 500000 | ||
Maturity | May-2022 | ||
Interest (% per year) | 5.38% | ||
Borrowings | R$ 1668323 | 1,643,662 | |
Foreign currency | Bonds 11 | |||
Bonds | |||
Issue date | July-2012 | ||
Issue amount US$ | R$ 250000 | ||
Maturity | July-2041 | ||
Interest (% per year) | 7.13% | ||
Borrowings | R$ 852861 | 840,254 | |
Foreign currency | Bonds 12 | |||
Bonds | |||
Issue date | February-2014 | ||
Issue amount US$ | [1] | R$ 500000 | |
Maturity | February-2024 | ||
Interest (% per year) | 6.45% | ||
Borrowings | R$ 1697859 | 1,672,760 | |
Foreign currency | Bonds 13 | |||
Bonds | |||
Issue date | May-2014 | ||
Issue amount US$ | [2] | R$ 250000 | |
Maturity | February-2024 | ||
Interest (% per year) | 6.45% | ||
Borrowings | R$ 848929 | 836,380 | |
Foreign currency | Bonds 14 | |||
Bonds | |||
Issue date | October-2017 | ||
Issue amount US$ | [3] | R$ 500000 | |
Maturity | January-2023 | ||
Interest (% per year) | 3.50% | ||
Borrowings | R$ 1667025 | ||
Foreign currency | Bonds 15 | |||
Bonds | |||
Issue date | October-2017 | ||
Issue amount US$ | [4] | R$ 1250000 | |
Maturity | January-2028 | ||
Interest (% per year) | 4.50% | ||
Borrowings | R$ 4176868 | ||
Foreign currency | Bonds | |||
Bonds | |||
Issue amount US$ | 6,975,000 | ||
Borrowings | R$ 20082588 | R$ 14216539 | |
[1] | Effective interest rate including transaction costs is 7.78% p.a. | ||
[2] | Effective interest rate including transaction costs is 7.31% p.a. | ||
[3] | Effective interest rate including transaction costs is 3.64% p.a. | ||
[4] | Effective interest rate including transaction costs is 4.65% p.a. |
Borrowings (Details 3)
Borrowings (Details 3) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Foreign currency | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 1877305 |
Current liabilities | 1,170,061 |
Non-current liabilities | 707,244 |
Foreign currency | Advances on exchange contracts | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 638193 |
Annual financial charges (%) | US dollar exchange variation + 3.52% |
Foreign currency | Export prepayment | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 215145 |
Annual financial charges (%) | US dollar exchange variation + semiannual Libor + 2.60% |
Foreign currency | Export credit notes | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 507866 |
Annual financial charges (%) | US dollar exchange variation + interest between 7.30 and 8.10 |
Foreign currency | Working capital | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 516101 |
Annual financial charges (%) | US dollar exchange variation + 1.74% above Libor |
Local currency | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 2774824 |
Current liabilities | 139,796 |
Non-current liabilities | R$ 2635028 |
Local currency | Export credit notes | |
Foreign currency and local currency | |
Annual financial charges (%) | 8.00 |
Local currency | Export credit notes | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 1028333 |
Annual financial charges (%) | 105.00 e 112.50 of CDI |
Local currency | BNDES | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 1735186 |
Annual financial charges (%) | TJLP + interest between 0.00 and 3.58 |
Local currency | Other | |
Foreign currency and local currency | |
Prepayment of borrowings | R$ 11305 |
Annual financial charges (%) | CDI + 0.04 |
Borrowings (Details 4)
Borrowings (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Export pre-payment | ||
Borrowings | R$ 23361421 | R$ 23331067 |
Foreign currency | ||
Export pre-payment | ||
Borrowings | R$ 22141580 | 18,176,310 |
Foreign currency | Export prepayment 1 | ||
Export pre-payment | ||
Issue date | January-2013 | |
Notional | R$ 200000 | |
Maturity | November-2022 | |
Charges (% per year) | US dollar exchange variation + semiannual Libor + 1.10 | |
Borrowings | R$ 331701 | 391,923 |
Foreign currency | Export prepayment 2 | ||
Export pre-payment | ||
Issue date | May-2016 | |
Notional | R$ 50000 | |
Maturity | May-2017 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 3.25 | |
Borrowings | 163,564 | |
Foreign currency | Export prepayment 3 | ||
Export pre-payment | ||
Issue date | December-2016 | |
Notional | R$ 68000 | |
Maturity | November-2019 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 2.60 | |
Borrowings | 222,314 | |
Foreign currency | Export prepayment 4 | ||
Export pre-payment | ||
Issue date | September-2017 | |
Notional | R$ 135000 | |
Maturity | March-2017 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 1.61 | |
Borrowings | R$ 449872 | |
Foreign currency | Export prepayment | ||
Export pre-payment | ||
Notional | R$ 135000 | |
Charges (% per year) | Note 15 (d) | |
Borrowings | R$ 781573 | R$ 777801 |
Borrowings (Details 5)
Borrowings (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payment schedule | ||
Non-current | R$ 22176640 | R$ 20736604 |
2018 | ||
Payment schedule | ||
Non-current | 2,379,757 | |
2019 | ||
Payment schedule | ||
Non-current | 1,245,895 | 3,310,384 |
2020 | ||
Payment schedule | ||
Non-current | 2,199,869 | 2,442,493 |
2021 | ||
Payment schedule | ||
Non-current | 3,655,465 | 3,667,632 |
2022 | ||
Payment schedule | ||
Non-current | 1,801,844 | 1,745,936 |
2023 | ||
Payment schedule | ||
Non-current | 1,709,587 | 13,772 |
2024 | ||
Payment schedule | ||
Non-current | 2,539,216 | 2,461,086 |
2025 | ||
Payment schedule | ||
Non-current | 45,994 | 3,839 |
2026 | ||
Payment schedule | ||
Non-current | 44,239 | 1,391 |
2027 | ||
Payment schedule | ||
Non-current | 17,586 | |
2028 and thereafter | ||
Payment schedule | ||
Non-current | R$ 8916945 | R$ 4710314 |
Borrowings (Details 6)
Borrowings (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Guarantees | |
Total debt 2017 | R$ 674580 |
Total guaranteed | R$ 674580 |
BNB | |
Guarantees | |
Maturity | December-2022 |
Total debt 2017 | R$ 113759 |
Total guaranteed | R$ 113759 |
Guarantees | Mortgage of plants, pledge of machinery and equipment |
BNB | |
Guarantees | |
Maturity | August-2024 |
Total debt 2017 | R$ 187794 |
Total guaranteed | R$ 187794 |
Guarantees | Bank surety |
BNDES | |
Guarantees | |
Maturity | December-2021 |
Total debt 2017 | R$ 185406 |
Total guaranteed | R$ 185406 |
Guarantees | Mortgage of plants, land and property, pledge of machinery and equipment |
FUNDES | |
Guarantees | |
Maturity | June-2020 |
Total debt 2017 | R$ 79882 |
Total guaranteed | R$ 79882 |
Guarantees | Mortgage of plants, land and property, pledge of machinery and equipment |
FINEP | |
Guarantees | |
Maturity | July-2024 |
Total debt 2017 | R$ 89614 |
Total guaranteed | R$ 89614 |
Guarantees | Bank surety |
FINEP | |
Guarantees | |
Maturity | December-2019 |
Total debt 2017 | R$ 6806 |
Total guaranteed | R$ 6806 |
Guarantees | Bank surety, pledge of equipment and current account lockout (restricted fund) |
FINAME | |
Guarantees | |
Maturity | February-2022 |
Total debt 2017 | R$ 4175 |
Total guaranteed | R$ 4175 |
Guarantees | Pledge of equipment |
FINISA | |
Guarantees | |
Maturity | December-2023 |
Total debt 2017 | R$ 6490 |
Total guaranteed | R$ 6490 |
Guarantees | Bank surety |
OTHER | |
Guarantees | |
Maturity | July-2021 |
Total debt 2017 | R$ 654 |
Total guaranteed | R$ 654 |
Guarantees | Pledge of equipment |
Borrowings (Details Text)
Borrowings (Details Text) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Oct. 04, 2017 | |
USD | ||
Borrowings (Details Text) | ||
Transaction costs associated with the issuance of the Bonds | R$ 26 | |
Bonds issued | ||
Borrowings (Details Text) | ||
Bonds issued | R$ 5480 | |
Bonds issued | USD | ||
Borrowings (Details Text) | ||
Bonds issued | 1,750 | |
Bonds issued | ||
Borrowings (Details Text) | ||
Bonds issued | R$ 1566 | |
Bonds issued, interest rate basis | 3.50% | |
Bonds issued | USD | ||
Borrowings (Details Text) | ||
Bonds issued | R$ 500 | |
Bonds issued | ||
Borrowings (Details Text) | ||
Bonds issued | R$ 3914 | |
Bonds issued, interest rate basis | 4.50% | |
Bonds issued | USD | ||
Borrowings (Details Text) | ||
Bonds issued | R$ 1250 | |
Issue price (2023) | ||
Borrowings (Details Text) | ||
Bonds issued, interest rate basis | 99.058% | |
Issue price (2023) | Represents the year | ||
Borrowings (Details Text) | ||
Bonds issued, interest rate basis | 3.70% | |
Issue price (2028) | ||
Borrowings (Details Text) | ||
Bonds issued, interest rate basis | 98.995% | |
Issue price (2028) | Represents the year | ||
Borrowings (Details Text) | ||
Bonds issued, interest rate basis | 4.625% | |
Transaction costs (i) | ||
Borrowings (Details Text) | ||
Effective interest rate including transaction costs | 7.78% | |
Transaction costs (ii) | ||
Borrowings (Details Text) | ||
Effective interest rate including transaction costs | 7.31% | |
Transaction costs (iii) | ||
Borrowings (Details Text) | ||
Effective interest rate including transaction costs | 3.64% | |
Transaction costs (iv) | ||
Borrowings (Details Text) | ||
Effective interest rate including transaction costs | 4.65% |
Braskem Idesa Financing (Detail
Braskem Idesa Financing (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 3193089 | ||
Total | 9,691,450 | R$ 10121702 | |
Other borrowings | 316,089 | ||
Current liabilities | 9,691,450 | 10,437,791 | |
Current | 9,691,450 | 10,437,791 | |
Transactions costs | (92,938) | (104,157) | |
Project finance I | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 700000 | ||
Maturity | [1] | February-2027 | |
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 3.25 | ||
Project finance before transactions cost | R$ 2179981 | 2,274,754 | |
Project finance II | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 189996 | ||
Maturity | [1] | February-2027 | |
Charges (% per year) | Us dollar exchange variation + 6.17 | ||
Project finance before transactions cost | R$ 621140 | 663,856 | |
Project finance III | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 600000 | ||
Maturity | [1] | February-2029 | |
Charges (% per year) | Us dollar exchange variation + 4.33 | ||
Project finance before transactions cost | R$ 1827811 | 1,911,857 | |
Project finance IV | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 680004 | ||
Maturity | [1] | February-2029 | |
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 3.88 | ||
Project finance before transactions cost | R$ 2032093 | 2,111,234 | |
Project finance V | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 400000 | ||
Maturity | [1] | February-2029 | |
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 4.65 | ||
Project finance before transactions cost | R$ 1221997 | 1,276,449 | |
Project finance VI | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 89994 | ||
Maturity | [1] | February-2029 | |
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 2.73 | ||
Project finance before transactions cost | R$ 273887 | 286,480 | |
Project finance VII | |||
Braskem Idesa financing | |||
Initial value of operation US$ | R$ 533095 | ||
Maturity | [1] | February-2029 | |
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 4.64 | ||
Project finance before transactions cost | R$ 1627479 | 1,701,229 | |
VAT borrowings | |||
Braskem Idesa financing | |||
Maturity | [2] | November-2029 | |
Charges (% per year) | [3] | 2.00% above TIIE (*) | |
Other borrowings | 13,500 | ||
Borrowings for working capital | |||
Braskem Idesa financing | |||
Maturity | December-2017 | ||
Charges (% per year) | Us dollar exchange variation + quarterly Libor + 2.30 | ||
Other borrowings | R$ 302589 | ||
[1] | Financing facility without recourse and with recourse limited to shareholders. | ||
[2] | Financing obtained in Mexican peso and paid exclusively through the refund of IVA, settled in January 2017. | ||
[3] | TIIE - 'Tasa de Interes Interbancaria de Equilibrio' - basic interest rate in Mexico, similar to the CDI overnight rate in Brazil. |
Braskem Idesa Financing (Deta_2
Braskem Idesa Financing (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Original long-term maturities | ||
Braskem Idesa Financing | R$ 8907733 | R$ 9491686 |
2018 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 709,793 | |
2019 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 748,071 | 736,885 |
2020 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 877,450 | 864,149 |
2021 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 1,002,270 | 986,914 |
2022 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 835,009 | 822,235 |
2023 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 1,105,295 | 1,088,155 |
2024 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 1,195,682 | 1,177,017 |
2025 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 1,195,096 | 1,176,346 |
2026 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 1,052,156 | 1,035,586 |
2027 | ||
Original long-term maturities | ||
Braskem Idesa Financing | 474,438 | 466,270 |
2028 and thereafter | ||
Original long-term maturities | ||
Braskem Idesa Financing | R$ 422266 | R$ 428336 |
Braskem Idesa Financing (Deta_3
Braskem Idesa Financing (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Braskem Idesa Financing (Details Text) | ||
Current liabilities | R$ 18564423 | R$ 22942911 |
Braskem Idesa | ||
Braskem Idesa Financing (Details Text) | ||
Current liabilities | R$ 8907733 |
Debentures (Details 1)
Debentures (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Debentures | |
Total | R$ 313324 |
Current | 27,183 |
Non-current | R$ 286141 |
Series - Single | |
Debentures | |
Issue date | March-2013 |
Maturity | March-2025 |
Annual financial charges (%) | IPCA + 6% |
Total | R$ 216968 |
Series - Single | |
Debentures | |
Issue date | September-2013 |
Maturity | March-2025 |
Annual financial charges (%) | 126,5% of CDI |
Total | R$ 96356 |
Debentures (Details 2)
Debentures (Details 2) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Payment schedule | |
Non-current | R$ 286141 |
2019 | |
Payment schedule | |
Non-current | 26,629 |
2020 | |
Payment schedule | |
Non-current | 43,674 |
2021 | |
Payment schedule | |
Non-current | 49,326 |
2022 | |
Payment schedule | |
Non-current | 49,326 |
2023 | |
Payment schedule | |
Non-current | 49,326 |
2024 | |
Payment schedule | |
Non-current | 49,326 |
2025 | |
Payment schedule | |
Non-current | R$ 18534 |
Changes in borrowings, debent_3
Changes in borrowings, debentures and Braskem Idesa borrowings (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Borrowings | ||
Current | R$ 1184781 | R$ 2594463 |
Non-current | 22,176,640 | 20,736,604 |
Total | 23,361,421 | 23,331,067 |
Debentures | ||
Current | 27,183 | |
Non-current | 286,141 | |
Total | 313,324 | |
Total borrowings and debentures | ||
Current | 1,211,964 | 2,594,463 |
Non-current | 22,462,781 | 20,736,604 |
Total | 23,674,745 | 23,331,067 |
Braskem Idesa financing | ||
Current | 9,691,450 | 10,437,791 |
Total | 9,691,450 | 10,437,791 |
Total geral | ||
Current | 10,903,414 | 13,032,254 |
Non-current | 22,462,781 | 20,736,604 |
Total | 33,366,195 | R$ 33768858 |
Addition by acquisition of subsidiary | ||
Borrowings | ||
Current | 6,749 | |
Non-current | 11,736 | |
Total | 18,485 | |
Debentures | ||
Current | 27,017 | |
Non-current | 290,943 | |
Total | 317,960 | |
Total borrowings and debentures | ||
Current | 33,766 | |
Non-current | 302,679 | |
Total | 336,445 | |
Total geral | ||
Current | 33,766 | |
Non-current | 302,679 | |
Total | 336,445 | |
Obtained | ||
Borrowings | ||
Current | 2,077,350 | |
Non-current | 6,414,991 | |
Total | 8,492,341 | |
Total borrowings and debentures | ||
Current | 2,077,350 | |
Non-current | 6,414,991 | |
Total | 8,492,341 | |
Braskem Idesa financing | ||
Current | 187,959 | |
Total | 187,959 | |
Total geral | ||
Current | 2,265,309 | |
Non-current | 6,414,991 | |
Total | 8,680,300 | |
Payments - Principal | ||
Borrowings | ||
Current | (8,767,003) | |
Total | (8,767,003) | |
Debentures | ||
Current | (12,088) | |
Total | (12,088) | |
Total borrowings and debentures | ||
Current | (8,779,091) | |
Total | (8,779,091) | |
Braskem Idesa financing | ||
Current | (1,080,502) | |
Total | (1,080,502) | |
Total geral | ||
Current | (9,859,593) | |
Total | (9,859,593) | |
Payments - Interest paid | ||
Borrowings | ||
Current | (1,648,971) | |
Total | (1,648,971) | |
Total borrowings and debentures | ||
Current | (1,648,971) | |
Total | (1,648,971) | |
Braskem Idesa financing | ||
Current | (505,082) | |
Total | (505,082) | |
Total geral | ||
Current | (2,154,053) | |
Total | (2,154,053) | |
Interest, changes monetary and foreign exchange, net | ||
Borrowings | ||
Current | 1,459,513 | |
Non-current | 258,501 | |
Total | 1,718,014 | |
Debentures | ||
Current | 5,307 | |
Non-current | 2,145 | |
Total | 7,452 | |
Total borrowings and debentures | ||
Current | 1,464,820 | |
Non-current | 260,646 | |
Total | 1,725,466 | |
Braskem Idesa financing | ||
Current | 17,882 | |
Total | 17,882 | |
Total geral | ||
Current | 1,482,702 | |
Non-current | 260,646 | |
Total | 1,743,348 | |
Conversion of debts of subsidiaries abroad | ||
Borrowings | ||
Current | 8,834 | |
Non-current | 208,654 | |
Total | 217,488 | |
Total borrowings and debentures | ||
Current | 8,834 | |
Non-current | 208,654 | |
Total | 217,488 | |
Braskem Idesa financing | ||
Current | 633,402 | |
Total | 633,402 | |
Total geral | ||
Current | 642,236 | |
Non-current | 208,654 | |
Total | 850,890 | |
Transferences | ||
Borrowings | ||
Current | 5,453,846 | |
Non-current | (5,453,846) | |
Debentures | ||
Current | 6,947 | |
Non-current | (6,947) | |
Total borrowings and debentures | ||
Current | 5,460,793 | |
Non-current | (5,460,793) | |
Total geral | ||
Current | 5,460,793 | |
Non-current | R$ 5460793 |
Financial instruments (Details
Financial instruments (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | R$ 3775093 | R$ 6701864 |
Fair value financial assets | 3,775,093 | 6,701,864 |
Cash and cash equivalents | Cash and banks | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 1,428,766 | 2,178,611 |
Fair value financial assets | 1,428,766 | 2,178,611 |
Cash and cash equivalents | Financial investments in Brazil | Loans and receivables | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 1,706,784 | 2,914,685 |
Fair value financial assets | 1,706,784 | 2,914,685 |
Cash and cash equivalents | Financial investments abroad | Held-for-trading | Level 2 | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 639,543 | 1,608,568 |
Fair value financial assets | 639,543 | 1,608,568 |
Financial investments | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 2,297,244 | 1,190,483 |
Fair value financial assets | 2,297,244 | 1,190,483 |
Financial investments | Loans and receivables | Level 2 | Time deposit investments | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 440,616 | 434,015 |
Fair value financial assets | 440,616 | 434,015 |
Financial investments | Held-for-trading | Level 2 | Letras financeiras do tesouro - LFT | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 1,816,889 | 755,712 |
Fair value financial assets | 1,816,889 | 755,712 |
Financial investments | Held-for-trading | Level 2 | Other | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 39,739 | 756 |
Fair value financial assets | 39,739 | 756 |
Trade accounts receivable | Loans and receivables | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial assets | 3,318,692 | 1,704,373 |
Fair value financial assets | 3,318,692 | 1,704,373 |
Trade payables | Other financial liabilities | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 5,058,796 | 6,746,822 |
Fair value financial liabilities | 5,058,796 | 6,746,822 |
Borrowings | Other financial liabilities | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 23,652,009 | 23,542,482 |
Fair value financial liabilities | 24,499,048 | 20,522,642 |
Borrowings | Other financial liabilities | Level 2 | Foreign currency - other borrowings | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 2,344,649 | 4,159,341 |
Fair value financial liabilities | 2,228,608 | 4,020,769 |
Borrowings | Other financial liabilities | Level 2 | Local currency | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 1,224,772 | 5,166,602 |
Fair value financial liabilities | 1,039,873 | 3,991,892 |
Borrowings | Other financial liabilities | Level 1 | Foreign currency - Bond | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 20,082,588 | 14,216,539 |
Fair value financial liabilities | 21,230,567 | 12,509,981 |
Braskem Idesa borrowings | Other financial liabilities | Level 2 | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 9,784,388 | 10,541,948 |
Fair value financial liabilities | 8,675,711 | 9,322,409 |
Debentures | Other financial liabilities | Level 2 | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 313,324 | |
Fair value financial liabilities | 313,324 | |
Loan ton non-controlling shareholder of Braskem Idesa | Other financial liabilities | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 1,756,600 | 1,620,519 |
Fair value financial liabilities | 1,756,600 | 1,620,519 |
Leniency agreement | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 2,004,590 | 2,853,230 |
Fair value financial liabilities | R$ 2004590 | 2,853,230 |
Other payables (BNDESPAR) | Other financial liabilities | ||
Non-derivative financial instruments and leniency agreement | ||
Book value financial liabilities | 176,846 | |
Fair value financial liabilities | R$ 176846 |
Financial instruments (Detail_2
Financial instruments (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in derivative financial instruments designated for hedge accounting | ||
Accumulated OCI (equity) | R$ 5165492 | R$ 6321859 |
Derivatives | Braskem has two revolving credit lines for the purpose of managing liquidity risks, which may be used without restrictions to improve the Company’s credit quality or in the event of deterioration in the macroeconomic scenario, in the amounts of: (i) US$750 million until December 2019; and (ii) US$500 million until September 2019 | |
Derivatives operations | ||
Current assets | R$ 3793 | 8,387 |
Non-current assets | 32,666 | 29,308 |
Current liabilities | 6,875 | 29,042 |
Non-Current liabilities | 861,302 | |
Designated as Hedging Instrument | ||
Changes in derivative financial instruments designated for hedge accounting | ||
Accumulated OCI (equity) | 281,496 | |
Balance at beginning | 852,649 | |
Change in fair value | (43,035) | |
Financial settlement | (839,198) | |
Balance at end | (29,584) | |
Derivatives operations | ||
Current assets | (3,793) | (8,387) |
Non-current assets | (32,666) | (29,308) |
Current liabilities | 6,875 | 29,042 |
Non-Current liabilities | 861,302 | |
Derivative financial assets liabilities | (29,584) | R$ 852649 |
Designated as Hedging Instrument | Dollar put and call options | Level 2 | ||
Changes in derivative financial instruments designated for hedge accounting | ||
Balance at beginning | (4,184) | |
Change in fair value | 391 | |
Balance at end | (3,793) | |
Designated as Hedging Instrument | Exchange swap | Level 2 | ||
Changes in derivative financial instruments designated for hedge accounting | ||
Balance at beginning | 857,099 | |
Change in fair value | (46,820) | |
Financial settlement | (810,279) | |
Balance at end | R$ 0 | |
Principal exposure | CDI | |
Derivatives | Dollar+Interests | |
Designated as Hedging Instrument | Interest rate swaps | Level 2 | ||
Changes in derivative financial instruments designated for hedge accounting | ||
Accumulated OCI (equity) | R$ 281496 | |
Balance at beginning | (266) | |
Change in fair value | 3,394 | |
Financial settlement | (28,919) | |
Balance at end | R$ 25791 | |
Principal exposure | Libor | |
Derivatives | Fixed rates |
Financial instruments (Detail_3
Financial instruments (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Exchange rate swap linked to NCEs | ||
Nominal value | R$ 850000 | |
Fair value | R$ 857099 | |
Derivatives operations | ||
Current assets | (4,203) | |
Non-Current liabilities | 861,302 | |
Total | 857,099 | |
Swap NCE I to III | ||
Exchange rate swap linked to NCEs | ||
Nominal value | R$ 400000 | |
Hedge Financial charges for year | Exchange variation + 6,15% | |
Maturity | August-2019 | |
Fair value | 438,201 | |
Swap NCE IV to VII | ||
Exchange rate swap linked to NCEs | ||
Nominal value | R$ 450000 | |
Hedge Financial charges for year | Exchange variation + 4,93% to 7,90% | |
Maturity | April-2019 | |
Fair value | R$ 418898 |
Financial instruments (Detail_4
Financial instruments (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Future exports in U.S. dollars | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Future exports in U.S. dollars | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | USD | 2019 | ||
Future exports in U.S. dollars | ||
Nominal value | 733,980 | |
Non-derivative financial liabilities designated to hedge accounting | USD | 2020 | ||
Future exports in U.S. dollars | ||
Nominal value | 724,000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | 2021 | ||
Future exports in U.S. dollars | ||
Nominal value | 716,000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | 2022 | ||
Future exports in U.S. dollars | ||
Nominal value | 719,000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | 2023 | ||
Future exports in U.S. dollars | ||
Nominal value | 718,371 | |
Non-derivative financial liabilities designated to hedge accounting | USD | 2024 | ||
Future exports in U.S. dollars | ||
Nominal value | 688,854 | |
Non-derivative financial liabilities designated to hedge accounting | USD | 2028 | ||
Future exports in U.S. dollars | ||
Nominal value | R$ 1250000 |
Financial instruments (Detail_5
Financial instruments (Details 5) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Designated balance | |
End of balance | R$ 850000 |
Non-derivative financial liabilities designated to hedge accounting | USD | |
Designated balance | |
Beginning of balance | 5,301,099 |
Hedge discontinued | 1,000,894 |
Designations | 1,250,000 |
End of balance | R$ 5550205 |
Financial instruments (Detail_6
Financial instruments (Details 6) - Non-derivative financial liabilities designated to hedge accounting - USD R$ in Thousands | Dec. 31, 2017BRL (R$) |
Maturities of financial liabilities designated | |
Total nominal value US$ | R$ 5550205 |
2019 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | 733,980 |
2020 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | 724,000 |
2021 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | 716,000 |
2022 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | 719,000 |
2023 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | 718,372 |
2024 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | 688,853 |
2028 | |
Maturities of financial liabilities designated | |
Total nominal value US$ | R$ 1250000 |
Financial instruments (Detail_7
Financial instruments (Details 7) R$ in Thousands | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) |
Hedge descontinued | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Hedge descontinued | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - First quarter 2018 | USD | ||
Hedge descontinued | ||
Nominal value | R$ 189325 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.3082 | |
Gross nominal value | R$ 247353 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - Second quarter 2018 | USD | ||
Hedge descontinued | ||
Nominal value | R$ 208405 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.2769 | |
Gross nominal value | R$ 265758 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - Third quarter 2018 | USD | ||
Hedge descontinued | ||
Nominal value | R$ 193190 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.3080 | |
Gross nominal value | R$ 252364 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - Fourth quarter 2018 | USD | ||
Hedge descontinued | ||
Nominal value | R$ 196973 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.3080 | |
Gross nominal value | R$ 257306 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - 2018 | USD | ||
Hedge descontinued | ||
Nominal value | 787,893 | |
Gross nominal value | R$ 1022781 |
Financial instruments (Detail_8
Financial instruments (Details 8) R$ in Thousands | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) |
Exchange variation recognized | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Exchange variation recognized | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | First quarter | USD | ||
Exchange variation recognized | ||
Nominal value | R$ 201277 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.2400 | |
Gross nominal value | R$ 249241 | |
Non-derivative financial liabilities designated to hedge accounting | Second quarter | USD | ||
Exchange variation recognized | ||
Nominal value | R$ 208135 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.2015 | |
Gross nominal value | R$ 249720 | |
Non-derivative financial liabilities designated to hedge accounting | Third quarter | USD | ||
Exchange variation recognized | ||
Nominal value | R$ 207273 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.3302 | |
Gross nominal value | R$ 275362 | |
Non-derivative financial liabilities designated to hedge accounting | Fourth quarter | USD | ||
Exchange variation recognized | ||
Nominal value | R$ 213000 | |
Conversion rate at Inception R$/US$ | 2.0017 | |
Closing rate R$/US$ | 3.1684 | |
Gross nominal value | R$ 248507 | |
Non-derivative financial liabilities designated to hedge accounting | 2017 | USD | ||
Exchange variation recognized | ||
Nominal value | 829,685 | |
Gross nominal value | R$ 1022830 |
Financial instruments (Detail_9
Financial instruments (Details 9) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in foreign exchange variation and Income Tax and Social Contribution | |||
Beginning of balance | R$ 7439927 | ||
Exchange variation recorded in the period on OCI / IR and CSL | (397,045) | R$ 4121849 | R$ 8437079 |
Exchange variation transferred to profit or loss / IR and CSL | 1,022,830 | 1,297,910 | |
End of balance | (6,814,142) | (7,439,927) | |
IR and CSL | |||
Changes in foreign exchange variation and Income Tax and Social Contribution | |||
Beginning of balance | 2,529,575 | ||
Exchange variation recorded in the period on OCI / IR and CSL | 134,995 | ||
Exchange variation transferred to profit or loss / IR and CSL | (347,762) | ||
End of balance | 2,316,808 | 2,529,575 | |
Net effect | |||
Changes in foreign exchange variation and Income Tax and Social Contribution | |||
Beginning of balance | (4,910,352) | ||
Exchange variation recorded in the period on OCI / IR and CSL | (262,050) | ||
Exchange variation transferred to profit or loss / IR and CSL | 675,068 | ||
End of balance | R$ 4497334 | R$ 4910352 |
Financial instruments (Detai_10
Financial instruments (Details 10) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly schedule of hedged exports | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Quarterly schedule of hedged exports | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - First quarter 2018 | USD | ||
Quarterly schedule of hedged exports | ||
Nominal value | 189,325 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - Second quarter 2018 | USD | ||
Quarterly schedule of hedged exports | ||
Nominal value | 208,405 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - Third quarter 2018 | USD | ||
Quarterly schedule of hedged exports | ||
Nominal value | 193,190 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - Fourth quarter 2018 | USD | ||
Quarterly schedule of hedged exports | ||
Nominal value | 196,973 | |
Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - 2018 | USD | ||
Quarterly schedule of hedged exports | ||
Nominal value | R$ 787893 |
Financial instruments (Detai_11
Financial instruments (Details 11) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | Designated and unrealized sales | USD | 2018 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 221,790 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 2,930,246 | R$ 3113173 |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 2,942,062 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2018 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 221,790 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2019 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 229,270 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2020 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 266,690 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2021 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 303,392 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2022 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 253,204 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2023 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 333,093 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2024 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 359,559 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2025 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 357,903 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2026 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 309,240 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2027 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 152,103 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2028 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | 124,654 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | Designated and unrealized sales | USD | 2029 | ||
Liabilities related to the Project Finance of future sales in U.S. dollar | ||
Nominal value | R$ 31164 |
Financial instruments (Detai_12
Financial instruments (Details 12) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Designated balance | |
End of balance | R$ 850000 |
Non-derivative financial liabilities designated to hedge accounting | USD | |
Designated balance | |
Beginning of balance | 5,301,099 |
Hedge discontinued | 1,000,894 |
End of balance | 5,550,205 |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | |
Designated balance | |
Beginning of balance | 3,113,173 |
Sales in the year | (183,252) |
Hedge discontinued | 325 |
End of balance | R$ 2930246 |
Financial instruments (Detai_13
Financial instruments (Details 13) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Maturities of designated financial liabilities | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Maturities of designated financial liabilities | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | ||
Maturities of designated financial liabilities | ||
Nominal value | 2,930,246 | R$ 3113173 |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2018 | ||
Maturities of designated financial liabilities | ||
Nominal value | 221,390 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2019 | ||
Maturities of designated financial liabilities | ||
Nominal value | 228,850 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2020 | ||
Maturities of designated financial liabilities | ||
Nominal value | 266,187 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2021 | ||
Maturities of designated financial liabilities | ||
Nominal value | 302,816 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2022 | ||
Maturities of designated financial liabilities | ||
Nominal value | 252,723 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2023 | ||
Maturities of designated financial liabilities | ||
Nominal value | 332,458 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2024 | ||
Maturities of designated financial liabilities | ||
Nominal value | 358,873 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2025 | ||
Maturities of designated financial liabilities | ||
Nominal value | 357,221 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2026 | ||
Maturities of designated financial liabilities | ||
Nominal value | 308,650 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2027 | ||
Maturities of designated financial liabilities | ||
Nominal value | 150,419 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2028 | ||
Maturities of designated financial liabilities | ||
Nominal value | 124,347 | |
Non-derivative financial liabilities designated to hedge accounting | Project Finance | USD | 2029 | ||
Maturities of designated financial liabilities | ||
Nominal value | R$ 26312 |
Financial instruments (Detai_14
Financial instruments (Details 14) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Exchange variation discontinued | |
Nominal value | R$ 850000 |
Braskem Idesa | Financial income (expenses) according to the schedule of future hedged sales | USD | |
Exchange variation discontinued | |
Gross nominal value | 9,013 |
Braskem Idesa | Financial income (expenses) according to the schedule of future hedged sales | MXN | |
Exchange variation discontinued | |
Nominal value | R$ 53614 |
Braskem Idesa | Financial income (expenses) according to the schedule of future hedged sales | Hedge descontinued | |
Exchange variation discontinued | |
Conversion rate at Inception MXN/US$ | 13.4541 |
Closing rate MXN/US$ | 17.9915 |
Braskem Idesa | Financial income (expenses) according to the schedule of future hedged sales | Hedge descontinued | USD | |
Exchange variation discontinued | |
Nominal value | R$ 11816 |
Gross nominal value | 9,013 |
Braskem Idesa | Financial income (expenses) according to the schedule of future hedged sales | Hedge descontinued | MXN | |
Exchange variation discontinued | |
Nominal value | R$ 53614 |
Financial instruments (Detai_15
Financial instruments (Details 15) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Exchange variation | |
Nominal value | R$ 850000 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | |
Exchange variation | |
Gross nominal value | 163,696 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | USD | |
Exchange variation | |
Nominal value | 183,252 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | MXN | |
Exchange variation | |
Nominal value | 967,553 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | First quarter | |
Exchange variation | |
Gross nominal value | R$ 30917 |
Conversion rate at Inception MXN/US$ | 13.6649 |
Closing rate MXN/US$ | 20.6059 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | First quarter | USD | |
Exchange variation | |
Nominal value | R$ 29174 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | First quarter | MXN | |
Exchange variation | |
Nominal value | 202,497 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Second quarter | |
Exchange variation | |
Gross nominal value | R$ 42992 |
Conversion rate at Inception MXN/US$ | 13.6560 |
Closing rate MXN/US$ | 18.8998 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Second quarter | USD | |
Exchange variation | |
Nominal value | R$ 47896 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Second quarter | MXN | |
Exchange variation | |
Nominal value | 251,157 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Third quarter | |
Exchange variation | |
Gross nominal value | R$ 38919 |
Conversion rate at Inception MXN/US$ | 13.6536 |
Closing rate MXN/US$ | 17.8492 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Third quarter | USD | |
Exchange variation | |
Nominal value | R$ 52293 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Third quarter | MXN | |
Exchange variation | |
Nominal value | 219,401 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Fourth quarter | |
Exchange variation | |
Gross nominal value | R$ 50868 |
Conversion rate at Inception MXN/US$ | 13.6537 |
Closing rate MXN/US$ | 19.1186 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Fourth quarter | USD | |
Exchange variation | |
Nominal value | R$ 53889 |
Braskem Idesa | Financial income (expenses) due to the realization of sales designated for hedge | Fourth quarter | MXN | |
Exchange variation | |
Nominal value | R$ 294498 |
Financial instruments (Detai_16
Financial instruments (Details 16) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in foreign exchange variation and Income Tax and Social Contribution | |||
Beginning of balance | R$ 4182052 | ||
Exchange variation recorded in the period on OCI / IR | 472,717 | R$ 1995065 | R$ 1589544 |
Exchange variation transferred to profit or loss / IR | 163,696 | 59,834 | |
End of balance | (3,545,639) | (4,182,052) | |
IR | |||
Changes in foreign exchange variation and Income Tax and Social Contribution | |||
Beginning of balance | 1,255,350 | ||
Exchange variation recorded in the period on OCI / IR | (141,815) | ||
Exchange variation transferred to profit or loss / IR | (49,109) | ||
End of balance | 1,064,426 | 1,255,350 | |
Net effect | |||
Changes in foreign exchange variation and Income Tax and Social Contribution | |||
Beginning of balance | (2,926,702) | ||
Exchange variation recorded in the period on OCI / IR | 330,902 | ||
Exchange variation transferred to profit or loss / IR | 114,587 | ||
End of balance | R$ 2481213 | R$ 2926702 |
Financial instruments (Detai_17
Financial instruments (Details 17) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly schedule of hedged sales | ||
Nominal value | R$ 850000 | |
Non-derivative financial liabilities designated to hedge accounting | USD | ||
Quarterly schedule of hedged sales | ||
Nominal value | 5,550,205 | R$ 5301099 |
Non-derivative financial liabilities designated to hedge accounting | Designated and unrealized sales | 2018 | USD | ||
Quarterly schedule of hedged sales | ||
Nominal value | 221,790 | |
Non-derivative financial liabilities designated to hedge accounting | Designated and unrealized sales | 2018 | USD | First quarter | ||
Quarterly schedule of hedged sales | ||
Nominal value | 53,889 | |
Non-derivative financial liabilities designated to hedge accounting | Designated and unrealized sales | 2018 | USD | Second quarter | ||
Quarterly schedule of hedged sales | ||
Nominal value | 55,137 | |
Non-derivative financial liabilities designated to hedge accounting | Designated and unrealized sales | 2018 | USD | Third quarter | ||
Quarterly schedule of hedged sales | ||
Nominal value | 56,382 | |
Non-derivative financial liabilities designated to hedge accounting | Designated and unrealized sales | 2018 | USD | Fourth quarter | ||
Quarterly schedule of hedged sales | ||
Nominal value | R$ 56382 |
Financial instruments (Detai_18
Financial instruments (Details 18) - Trade accounts receivable - Domestic Market | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic Market | |||
Minimum risk | 18.84% | 8.92% | |
Low risk | 50.84% | 39.98% | |
Moderate risk | 13.33% | 30.51% | |
High risk | 13.40% | 16.48% | |
Very high risk | [1] | 3.59% | 4.11% |
[1] | Most clients in this group are inactive and the respective accounts are in the process of collection actions in the courts. Clients in this group that are still active buy from Braskem and pay in advance. |
Financial instruments (Detai_19
Financial instruments (Details 19) - Trade accounts receivable | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic Market | |||
Last 12 months | |||
Default indicators | 0.08% | 0.18% | 0.39% |
Export market | |||
Last 12 months | |||
Default indicators | 0.19% | 0.04% | 0.70% |
Financial instruments (Detai_20
Financial instruments (Details 20) - Other financial assets - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets | |||
Financial assets | R$ 6088101 | R$ 7892347 | |
Risk assessment | |||
Financial assets | |||
Financial assets | 6,082,219 | 7,888,504 | |
Risk assessment | AAA | |||
Financial assets | |||
Financial assets | 3,569,392 | 3,871,105 | |
Risk assessment | AA+ | |||
Financial assets | |||
Financial assets | 27,094 | 241,359 | |
Risk assessment | AA | |||
Financial assets | |||
Financial assets | 8,047 | 5,370 | |
Risk assessment | AA- | |||
Financial assets | |||
Financial assets | 209,389 | 654,232 | |
Risk assessment | A+ | |||
Financial assets | |||
Financial assets | 1,465,107 | 2,426,078 | |
Risk assessment | A | |||
Financial assets | |||
Financial assets | 349,823 | 364,198 | |
Risk assessment | A- | |||
Financial assets | |||
Financial assets | 209,175 | ||
Risk assessment | BBB+ | |||
Financial assets | |||
Financial assets | 453,367 | 116,987 | |
Without Risk Assessment | |||
Financial assets | |||
Financial assets | 5,882 | 3,843 | |
Without Risk Assessment | Other financial assets with no risk assessment | |||
Financial assets | |||
Financial assets | [1] | R$ 5882 | R$ 3843 |
[1] | Investments approved by the Management of the Company, in accordance with the financial policy. |
Financial instruments (Detai_21
Financial instruments (Details 21) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Probable | Brazilian real/U.S. dollar exchange rate | Bonds | |
Instrument / Sensitivity | |
Financial assets | R$ 191889 |
Probable | Brazilian real/U.S. dollar exchange rate | Working capital / other | |
Instrument / Sensitivity | |
Financial assets | (12,358) |
Probable | Brazilian real/U.S. dollar exchange rate | Export credit notes | |
Instrument / Sensitivity | |
Financial assets | (6,577) |
Probable | Brazilian real/U.S. dollar exchange rate | Braskem Idesa borrowings | |
Instrument / Sensitivity | |
Financial assets | (93,750) |
Probable | Brazilian real/U.S. dollar exchange rate | Export prepayments | |
Instrument / Sensitivity | |
Financial assets | (3,209) |
Probable | Brazilian real/U.S. dollar exchange rate | Dollar put and call options | |
Instrument / Sensitivity | |
Financial assets | (4,117) |
Probable | Brazilian real/U.S. dollar exchange rate | Financial investments abroad | |
Instrument / Sensitivity | |
Financial assets | 18,405 |
Probable | Selic interest rate | BNDES | |
Instrument / Sensitivity | |
Financial assets | 277 |
Probable | Libor floating interest rate | Braskem Idesa borrowings | |
Instrument / Sensitivity | |
Financial assets | (76,187) |
Probable | Libor floating interest rate | Export prepayments | |
Instrument / Sensitivity | |
Financial assets | (1,643) |
Probable | Libor floating interest rate | Working capital / structured operations | |
Instrument / Sensitivity | |
Financial assets | (3,265) |
Probable | Libor floating interest rate | Swaps | |
Instrument / Sensitivity | |
Financial assets | 12,615 |
Probable | CDI interest rate | Swaps NCE | |
Instrument / Sensitivity | |
Financial assets | 12,208 |
Probable | CDI interest rate | Debentures | |
Instrument / Sensitivity | |
Financial assets | 25,657 |
Probable | CDI interest rate | Financial investments in local currency | |
Instrument / Sensitivity | |
Financial assets | (9,138) |
Probable | IPCA interest rate | Debentures | |
Instrument / Sensitivity | |
Financial assets | (33,625) |
Probable | TJLP interest rate | BNDES | |
Instrument / Sensitivity | |
Financial assets | 210 |
Probable | TJLP interest rate | Other government agents | |
Instrument / Sensitivity | |
Financial assets | 14 |
Probable | Brazilian real/Euro exchange rate | Working capital / other | |
Instrument / Sensitivity | |
Financial assets | 2,126 |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Bonds | |
Instrument / Sensitivity | |
Financial assets | (4,959,133) |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Working capital / other | |
Instrument / Sensitivity | |
Financial assets | (319,367) |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Export credit notes | |
Instrument / Sensitivity | |
Financial assets | (169,974) |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Braskem Idesa borrowings | |
Instrument / Sensitivity | |
Financial assets | (2,422,863) |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Export prepayments | |
Instrument / Sensitivity | |
Financial assets | (82,925) |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Dollar put and call options | |
Instrument / Sensitivity | |
Financial assets | (176,990) |
Possible adverse -25% | Brazilian real/U.S. dollar exchange rate | Financial investments abroad | |
Instrument / Sensitivity | |
Financial assets | 475,644 |
Possible adverse -25% | Selic interest rate | BNDES | |
Instrument / Sensitivity | |
Financial assets | (1,999) |
Possible adverse -25% | Libor floating interest rate | Braskem Idesa borrowings | |
Instrument / Sensitivity | |
Financial assets | (380,933) |
Possible adverse -25% | Libor floating interest rate | Export prepayments | |
Instrument / Sensitivity | |
Financial assets | (8,216) |
Possible adverse -25% | Libor floating interest rate | Working capital / structured operations | |
Instrument / Sensitivity | |
Financial assets | (16,325) |
Possible adverse -25% | Libor floating interest rate | Swaps | |
Instrument / Sensitivity | |
Financial assets | 38,103 |
Possible adverse -25% | CDI interest rate | Swaps NCE | |
Instrument / Sensitivity | |
Financial assets | (27,340) |
Possible adverse -25% | CDI interest rate | Debentures | |
Instrument / Sensitivity | |
Financial assets | (277) |
Possible adverse -25% | CDI interest rate | Financial investments in local currency | |
Instrument / Sensitivity | |
Financial assets | 63,988 |
Possible adverse -25% | IPCA interest rate | Debentures | |
Instrument / Sensitivity | |
Financial assets | (20,015) |
Possible adverse -25% | TJLP interest rate | BNDES | |
Instrument / Sensitivity | |
Financial assets | (1,443) |
Possible adverse -25% | TJLP interest rate | Other government agents | |
Instrument / Sensitivity | |
Financial assets | (95) |
Possible adverse -25% | Brazilian real/Euro exchange rate | Working capital / other | |
Instrument / Sensitivity | |
Financial assets | (13,896) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Bonds | |
Instrument / Sensitivity | |
Financial assets | (9,918,266) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Working capital / other | |
Instrument / Sensitivity | |
Financial assets | (638,734) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Export credit notes | |
Instrument / Sensitivity | |
Financial assets | (339,948) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Braskem Idesa borrowings | |
Instrument / Sensitivity | |
Financial assets | (4,845,725) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Export prepayments | |
Instrument / Sensitivity | |
Financial assets | (165,850) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Dollar put and call options | |
Instrument / Sensitivity | |
Financial assets | (844,927) |
Extreme adverse - 50% | Brazilian real/U.S. dollar exchange rate | Financial investments abroad | |
Instrument / Sensitivity | |
Financial assets | 951,287 |
Extreme adverse - 50% | Selic interest rate | BNDES | |
Instrument / Sensitivity | |
Financial assets | (4,101) |
Extreme adverse - 50% | Libor floating interest rate | Braskem Idesa borrowings | |
Instrument / Sensitivity | |
Financial assets | (761,865) |
Extreme adverse - 50% | Libor floating interest rate | Export prepayments | |
Instrument / Sensitivity | |
Financial assets | (16,433) |
Extreme adverse - 50% | Libor floating interest rate | Working capital / structured operations | |
Instrument / Sensitivity | |
Financial assets | (32,650) |
Extreme adverse - 50% | Libor floating interest rate | Swaps | |
Instrument / Sensitivity | |
Financial assets | 96,667 |
Extreme adverse - 50% | CDI interest rate | Swaps NCE | |
Instrument / Sensitivity | |
Financial assets | (61,117) |
Extreme adverse - 50% | CDI interest rate | Debentures | |
Instrument / Sensitivity | |
Financial assets | (15,308) |
Extreme adverse - 50% | CDI interest rate | Financial investments in local currency | |
Instrument / Sensitivity | |
Financial assets | 128,016 |
Extreme adverse - 50% | IPCA interest rate | Debentures | |
Instrument / Sensitivity | |
Financial assets | (40,873) |
Extreme adverse - 50% | TJLP interest rate | BNDES | |
Instrument / Sensitivity | |
Financial assets | (2,929) |
Extreme adverse - 50% | TJLP interest rate | Other government agents | |
Instrument / Sensitivity | |
Financial assets | (192) |
Extreme adverse - 50% | Brazilian real/Euro exchange rate | Working capital / other | |
Instrument / Sensitivity | |
Financial assets | R$ 27792 |
Financial instruments (Detai_22
Financial instruments (Details Text) R$ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2017BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) | Dec. 31, 2015BRL (R$) | Oct. 10, 2017 | Sep. 30, 2015BRL (R$) | Apr. 30, 2015BRL (R$) | Oct. 01, 2014BRL (R$) | May 01, 2013 | |
Financial instruments (Details Text) | |||||||||
Hedge accounting operation has to be discontinued in advance with the payment | R$ 810279 | ||||||||
Financial result | R$ 475872 | ||||||||
Exchange rate on the date of the designation US$1 | 3.1688 | 2.0017 | |||||||
Hedged exports, export flows planned | 20% and 30% | ||||||||
Nominal value | R$ 850000 | ||||||||
Other comprehensive income | R$ 5179228 | R$ 1970081 | R$ 3681341 | ||||||
Value at risk of the derivatives held | 5.00% | ||||||||
Probable scenario of increase in market levels | 25% and 50% increase | ||||||||
Braskem Idesa | |||||||||
Financial instruments (Details Text) | |||||||||
Liabilities designated as hedge instruments | R$ 2878936 | ||||||||
USD | |||||||||
Financial instruments (Details Text) | |||||||||
Average export | R$ 3600000 | ||||||||
USD | Braskem Idesa | |||||||||
Financial instruments (Details Text) | |||||||||
Liabilities designated as hedge instruments | R$ 23608 | R$ 290545 | |||||||
Other comprehensive income | (325) | ||||||||
USD | Non-derivative financial liabilities designated to hedge accounting | |||||||||
Financial instruments (Details Text) | |||||||||
Nominal value | 5,550,205 | R$ 5301099 | |||||||
USD | Non-derivative financial liabilities designated to hedge accounting | Hedge descontinued - 2018 | |||||||||
Financial instruments (Details Text) | |||||||||
Nominal value | 787,893 | ||||||||
Put options | USD | |||||||||
Financial instruments (Details Text) | |||||||||
Notional | R$ 1400000 | ||||||||
Average strike price R$/US$ | 2.96 R$/US$. | ||||||||
Put options | USD | Braskem Idesa | |||||||||
Financial instruments (Details Text) | |||||||||
Value at risk | R$ 9800 | ||||||||
Call options | USD | |||||||||
Financial instruments (Details Text) | |||||||||
Notional | R$ 926000 | ||||||||
Average strike price R$/US$ | 4.32 R$/US$ | ||||||||
Call options | USD | Braskem Idesa | |||||||||
Financial instruments (Details Text) | |||||||||
Value at risk | R$ 10464 |
Taxes payable (Details 1)
Taxes payable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Brazil [Abstract] | ||
IPI | R$ 60917 | R$ 59323 |
IR and CSL | 405,567 | 222,680 |
ICMS | 257,720 | 182,034 |
PIS and COFINS | 82,140 | 59,105 |
Other | 52,926 | 62,743 |
Other countries | ||
IR | 66,059 | 46,670 |
Value-added tax | 22,242 | 15,622 |
Total | 947,571 | 648,177 |
Current liabilities | 894,769 | 624,080 |
Non-current liabilities | 52,802 | 24,097 |
Total | R$ 947571 | R$ 648177 |
Taxes payable (Details Text)
Taxes payable (Details Text) - Special Tax Compliance Program (“PERT”) - BRL (R$) R$ in Thousands | Jan. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | May 31, 2017 |
Taxes payable (Details Text) | ||||
Payment of tax and social security liabilities | R$ 111735 | |||
Discounts given in tax and social security liabilities | R$ 12895 | |||
Offset using tax credits from income tax losses and social contribution tax loss carryforwards | R$ 67953 | |||
Paid in cash, tax and social security liabilities | R$ 9033 | R$ 21854 |
Income tax ("IR") and social _3
Income tax ("IR") and social contribution ("CSL") (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax IR And Social Contribution CSL [Abstract] | |||
Income (loss) before IR and CSL and after discontinued operations | R$ 5264577 | R$ 140010 | R$ 4414161 |
IR and CSL at the rate of 34% | (1,789,956) | 47,603 | (1,500,815) |
Permanent adjustments to the IR and CSL calculation basis | |||
IR and CSL on equity in results of investees | 2,201 | 10,227 | 755 |
IR and CSL accrued in previous years | (46,460) | (7,686) | |
Deferred tax losses and negative base | 39,092 | (10,253) | |
Tax benefits (Sudene and PAT) | 87,186 | ||
Difference of rate applicable to each country | 250,130 | 81,638 | |
Fine in leniency agreement | (117,140) | (692,299) | |
Other permanent adjustments | 170,805 | (16,755) | (142,355) |
Effect of IR and CSL on results of operations | (1,357,682) | (616,046) | (1,660,354) |
Breakdown of IR and CSL: | |||
Current IR and CSL | (869,493) | (898,845) | (391,968) |
Deferred IR and CSL | (488,189) | 282,799 | (1,268,386) |
Total | R$ 1357682 | R$ 616046 | R$ 1660354 |
Income tax ("IR") and social _4
Income tax ("IR") and social contribution ("CSL") (Details 2) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Headquarters (Country) and Official rate - % | |||
Tax rates | 35.00% | ||
Braskem Alemanha | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | Germany | Germany | |
Tax rates | 31.18% | ||
Braskem America e Braskem America Finance | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | [1] | USA | |
Tax rates | [1] | 35.00% | |
Braskem Argentina | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | Argentina | Argentina | |
Tax rates | 35.00% | ||
Braskem Austria e Braskem Austria Finance | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | Austria | ||
Tax rates | 25.00% | ||
Braskem Petroquímica Chile | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | Chile | ||
Tax rates | 25.50% | ||
Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | Netherlands | ||
Tax rates | 25.00% | ||
Braskem Idesa, Braskem Idesa Serviços, Braskem México Braskem México Serviços and Braskem México Proyectos | |||
Headquarters (Country) and Official rate - % | |||
Headquarters | Mexico | ||
Tax rates | 30.00% | ||
[1] | In 2018 the rate will change from 35% to 21%. |
Income tax ("IR") and social _5
Income tax ("IR") and social contribution ("CSL") (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Breakdown of deferred IR and CSL | |||
Ending balance | R$ 160233 | ||
Presentation in the balance sheet: | |||
Non-current assets | 1,165,726 | R$ 1653115 | |
(-) Non-current liabilities | 1,005,493 | R$ 510523 | |
Tax losses (IR) and negative base (CSL) | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 2,420,376 | ||
Impact on the P&L | (590,037) | ||
Cetrel consolidated | 48,470 | ||
Ending balance | [1] | 1,878,809 | |
Goodwill amortized | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 4,624 | ||
Impact on the P&L | (708) | ||
Cetrel consolidated | 55,419 | ||
Ending balance | 59,335 | ||
Exchange variations | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 464,947 | ||
Impact on the P&L | (76,654) | ||
Ending balance | [2] | 388,293 | |
Temporary adjustments | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 717,868 | ||
Impact on the P&L | (564,239) | ||
Impact on the equity | (7,946) | ||
Cetrel consolidated | 9,857 | ||
Ending balance | [3] | 155,540 | |
Business combination | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 191,250 | ||
Impact on the P&L | (7,465) | ||
Ending balance | [4] | 183,785 | |
Assets | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 3,799,065 | ||
Impact on the P&L | (1,239,103) | ||
Impact on the equity | (7,946) | ||
Cetrel consolidated | 113,746 | ||
Ending balance | 2,665,762 | ||
Amortization of goodwill based on future profitability | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 767,277 | ||
Impact on the P&L | (54,404) | ||
Ending balance | [5] | 712,873 | |
Tax depreciation | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 867,922 | ||
Impact on the P&L | 92,280 | ||
Ending balance | [6] | 960,202 | |
Temporary adjustments | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 316,991 | ||
Impact on the P&L | (85,169) | ||
Ending balance | [7] | 231,822 | |
Business combination | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 198,381 | ||
Impact on the P&L | (197,079) | ||
Cetrel consolidated | 8,362 | ||
Ending balance | [8] | 9,664 | |
Additional indexation PP&E | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 118,202 | ||
Impact on the P&L | (51,130) | ||
Ending balance | [9] | 67,072 | |
Hedge accounting | |||
Breakdown of deferred IR and CSL | |||
Impact on the P&L | (606,877) | ||
Impact on the equity | 606,877 | ||
Deferred on health plans | |||
Breakdown of deferred IR and CSL | |||
Impact on the P&L | 15,269 | ||
Impact on the equity | (15,269) | ||
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 263,808 | ||
Impact on the P&L | 255,815 | ||
Ending balance | 519,623 | ||
Other | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 123,892 | ||
Impact on the P&L | (119,619) | ||
Ending balance | 4,273 | ||
Liabilities | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 2,656,473 | ||
Impact on the P&L | (750,914) | ||
Impact on the equity | 591,608 | ||
Cetrel consolidated | 8,362 | ||
Ending balance | 2,505,529 | ||
Net assets and liabilities | |||
Breakdown of deferred IR and CSL | |||
Beginning balance | 1,142,592 | ||
Impact on the P&L | (488,189) | ||
Impact on the equity | (599,554) | ||
Cetrel consolidated | 105,384 | ||
Ending balance | R$ 160233 | ||
[1] | In Brazil and Germany, the use of tax losses has limits in relation to the amount of taxable income for the year. In Brazil, this limit is 30%, whereas in Germany is 60%. | ||
[2] | In Brazil, the Company opted to tax exchange variation of assets and liabilities denominated in foreign currency under the cash method. Thus, this variation will be realized as assets and liabilities are received/paid. For accounting purposes, exchange variation is recognized under the accrual basis, which results in deferred IR and CSL. | ||
[3] | Accounting expenses not yet deductible for calculating income tax and social contribution, whose recognition for tax purposes occurs in subsequent periods. | ||
[4] | Refers to: tax-related goodwill, and contingencies recognized from business combinations. Tax realization of goodwill will occur upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. | ||
[5] | Goodwill for the future profitability of the merged companies not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or any other reason. | ||
[6] | For calculation of IR and CSL, assets are depreciated at rates higher than those used for accounting purposes. As tax depreciation is exhausted, these deferred IR and CSL start to be realized. | ||
[7] | Revenues whose taxation will occur in subsequent periods. | ||
[8] | Fair value adjustments on property, plant and equipment and intangible assets identified in business combinations, whose tax realization is based on the depreciation and amortization of these assets. | ||
[9] | Additional adjustment of property, plant and equipment, whose tax realization is based on the depreciation of assets. |
Income tax ("IR") and social _6
Income tax ("IR") and social contribution ("CSL") (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | ||
Deferred income tax and social contribution | R$ 1165726 | R$ 1653115 |
Liabilities | ||
Deferred income tax and social contribution | R$ 1005493 | R$ 510523 |
Braskem S.A. | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Brazil | Brazil |
Assets | ||
Deferred income tax and social contribution | R$ 42459 | |
Liabilities | ||
Deferred income tax and social contribution | R$ 781352 | |
Braskem Argentina | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Argentina | Argentina |
Assets | ||
Deferred income tax and social contribution | R$ 3398 | R$ 6745 |
Braskem Alemanha | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Germany | Germany |
Assets | ||
Deferred income tax and social contribution | R$ 19353 | R$ 36932 |
Braskem Chile | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Chile | Chile |
Liabilities | ||
Deferred income tax and social contribution | R$ 506 | R$ 1269 |
Braskem America | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | USA | USA |
Liabilities | ||
Deferred income tax and social contribution | R$ 223635 | R$ 305289 |
Braskem Idesa | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Mexico | Mexico |
Assets | ||
Deferred income tax and social contribution | R$ 1036257 | R$ 1463502 |
Braskem México Serviços | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Mexico | Mexico |
Assets | ||
Deferred income tax and social contribution | R$ 1334 | R$ 1994 |
Cetrel | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Brazil | |
Assets | ||
Deferred income tax and social contribution | R$ 21814 | |
DAC | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Brazil | |
Assets | ||
Deferred income tax and social contribution | R$ 83570 | |
Braskem Petroquímica | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Brazil | |
Liabilities | ||
Deferred income tax and social contribution | R$ 80270 | |
Braskem Petroquímica and Braskem Qpar - business combination effects | ||
Offset for the purpose of presentation in the balance sheet (consolidated) | ||
Headquarters | Brazil | |
Assets | ||
Deferred income tax and social contribution | R$ 101483 | |
Liabilities | ||
Deferred income tax and social contribution | 123,695 | |
IR and CSL Tax calculation | ||
Assets | ||
Deferred income tax and social contribution | 2,665,762 | 3,799,065 |
Liabilities | ||
Deferred income tax and social contribution | 2,505,529 | 2,656,473 |
IR and CSL Tax calculation | Braskem S.A. | ||
Assets | ||
Deferred income tax and social contribution | 1,491,423 | 2,106,303 |
Liabilities | ||
Deferred income tax and social contribution | 2,272,775 | 2,063,844 |
IR and CSL Tax calculation | Braskem Argentina | ||
Assets | ||
Deferred income tax and social contribution | 3,398 | 6,745 |
IR and CSL Tax calculation | Braskem Alemanha | ||
Assets | ||
Deferred income tax and social contribution | 19,353 | 36,932 |
IR and CSL Tax calculation | Braskem Chile | ||
Assets | ||
Deferred income tax and social contribution | 251 | 135 |
Liabilities | ||
Deferred income tax and social contribution | 757 | 1,404 |
IR and CSL Tax calculation | Braskem America | ||
Liabilities | ||
Deferred income tax and social contribution | 223,635 | 305,289 |
IR and CSL Tax calculation | Braskem Idesa | ||
Assets | ||
Deferred income tax and social contribution | 1,036,257 | 1,463,502 |
IR and CSL Tax calculation | Braskem México Serviços | ||
Assets | ||
Deferred income tax and social contribution | 1,334 | 1,994 |
IR and CSL Tax calculation | Cetrel | ||
Assets | ||
Deferred income tax and social contribution | 29,268 | |
Liabilities | ||
Deferred income tax and social contribution | 7,454 | |
IR and CSL Tax calculation | DAC | ||
Assets | ||
Deferred income tax and social contribution | 84,478 | |
Liabilities | ||
Deferred income tax and social contribution | 908 | |
IR and CSL Tax calculation | Braskem Petroquímica | ||
Assets | ||
Deferred income tax and social contribution | 81,971 | |
Liabilities | ||
Deferred income tax and social contribution | 162,241 | |
IR and CSL Tax calculation | Braskem Petroquímica and Braskem Qpar - business combination effects | ||
Assets | ||
Deferred income tax and social contribution | 101,483 | |
Liabilities | ||
Deferred income tax and social contribution | 123,695 | |
IR and CSL Compensation | ||
Assets | ||
Deferred income tax and social contribution | (1,500,036) | (2,145,950) |
Liabilities | ||
Deferred income tax and social contribution | (1,500,036) | (2,145,950) |
IR and CSL Compensation | Braskem S.A. | ||
Assets | ||
Deferred income tax and social contribution | (1,491,423) | (2,063,844) |
Liabilities | ||
Deferred income tax and social contribution | (1,491,423) | (2,063,844) |
IR and CSL Compensation | Braskem Chile | ||
Assets | ||
Deferred income tax and social contribution | (251) | (135) |
Liabilities | ||
Deferred income tax and social contribution | (251) | (135) |
IR and CSL Compensation | Cetrel | ||
Assets | ||
Deferred income tax and social contribution | (7,454) | |
Liabilities | ||
Deferred income tax and social contribution | (7,454) | |
IR and CSL Compensation | DAC | ||
Assets | ||
Deferred income tax and social contribution | (908) | |
Liabilities | ||
Deferred income tax and social contribution | R$ 908 | |
IR and CSL Compensation | Braskem Petroquímica | ||
Assets | ||
Deferred income tax and social contribution | (81,971) | |
Liabilities | ||
Deferred income tax and social contribution | R$ 81971 |
Income tax ("IR") and social _7
Income tax ("IR") and social contribution ("CSL") (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Realization of deferred income tax and social contribution | ||||
Net | R$ 160233 | |||
Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | 1,878,809 | [1] | R$ 2420376 | |
Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 59,335 | 4,624 | ||
Exchange variations | ||||
Realization of deferred income tax and social contribution | ||||
Net | 388,293 | [2] | 464,947 | |
Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | 155,540 | [3] | 717,868 | |
Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | 183,785 | [4] | 191,250 | |
Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 2,665,762 | 3,799,065 | ||
Amortization of goodwill based on future profitability | ||||
Realization of deferred income tax and social contribution | ||||
Net | 712,873 | [5] | 767,277 | |
Tax depreciation | ||||
Realization of deferred income tax and social contribution | ||||
Net | 960,202 | [6] | 867,922 | |
Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | 231,822 | [7] | 316,991 | |
Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | 9,664 | [8] | 198,381 | |
Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | 67,072 | [9] | 118,202 | |
Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 519,623 | 263,808 | ||
Other | ||||
Realization of deferred income tax and social contribution | ||||
Net | 4,273 | 123,892 | ||
Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | 2,505,529 | R$ 2656473 | ||
2018 | ||||
Realization of deferred income tax and social contribution | ||||
Net | 64,773 | |||
2018 | Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | [1] | 18,357 | ||
2018 | Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 20,053 | |||
2018 | Exchange variations | ||||
Realization of deferred income tax and social contribution | ||||
Net | [2] | 32,663 | ||
2018 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [3] | 80,548 | ||
2018 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [4] | 38,775 | ||
2018 | Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 190,396 | |||
2018 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [7] | 78,653 | ||
2018 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [8] | 34 | ||
2018 | Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | [9] | 5,366 | ||
2018 | Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 41,570 | |||
2018 | Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | 125,623 | |||
2019 | ||||
Realization of deferred income tax and social contribution | ||||
Net | 29,315 | |||
2019 | Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | [1] | 95,276 | ||
2019 | Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 17,604 | |||
2019 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [3] | (51,918) | ||
2019 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [4] | 38,775 | ||
2019 | Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 99,737 | |||
2019 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [7] | 23,452 | ||
2019 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [8] | 34 | ||
2019 | Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | [9] | 5,366 | ||
2019 | Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 41,570 | |||
2019 | Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | 70,422 | |||
2020 | ||||
Realization of deferred income tax and social contribution | ||||
Net | 142,624 | |||
2020 | Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | [1] | 115,361 | ||
2020 | Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 15,156 | |||
2020 | Exchange variations | ||||
Realization of deferred income tax and social contribution | ||||
Net | [2] | 19,598 | ||
2020 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [3] | 29,931 | ||
2020 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [4] | 38,775 | ||
2020 | Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 218,821 | |||
2020 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [7] | 29,227 | ||
2020 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [8] | 34 | ||
2020 | Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | [9] | 5,366 | ||
2020 | Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 41,570 | |||
2020 | Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | 76,197 | |||
2021 | ||||
Realization of deferred income tax and social contribution | ||||
Net | 278,528 | |||
2021 | Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | [1] | 287,416 | ||
2021 | Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 4,062 | |||
2021 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [3] | 12,294 | ||
2021 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [4] | 33,731 | ||
2021 | Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 337,503 | |||
2021 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [7] | 12,005 | ||
2021 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [8] | 34 | ||
2021 | Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | [9] | 5,366 | ||
2021 | Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 41,570 | |||
2021 | Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | 58,975 | |||
2022 | ||||
Realization of deferred income tax and social contribution | ||||
Net | 458,779 | |||
2022 | Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | [1] | 471,379 | ||
2022 | Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 364 | |||
2022 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [3] | 11,762 | ||
2022 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [4] | 33,729 | ||
2022 | Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 517,234 | |||
2022 | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [7] | 11,485 | ||
2022 | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [8] | 34 | ||
2022 | Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | [9] | 5,366 | ||
2022 | Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 41,570 | |||
2022 | Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | 58,455 | |||
2023 thereafter | ||||
Realization of deferred income tax and social contribution | ||||
Net | (813,786) | |||
2023 thereafter | Tax losses (IR) and negative base (CSL) | ||||
Realization of deferred income tax and social contribution | ||||
Net | [1] | 891,020 | ||
2023 thereafter | Goodwill amortized | ||||
Realization of deferred income tax and social contribution | ||||
Net | 2,096 | |||
2023 thereafter | Exchange variations | ||||
Realization of deferred income tax and social contribution | ||||
Net | [2] | 336,032 | ||
2023 thereafter | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [3] | 72,923 | ||
2023 thereafter | Assets | ||||
Realization of deferred income tax and social contribution | ||||
Net | 1,302,071 | |||
2023 thereafter | Amortization of goodwill based on future profitability | ||||
Realization of deferred income tax and social contribution | ||||
Net | [5] | 712,873 | ||
2023 thereafter | Tax depreciation | ||||
Realization of deferred income tax and social contribution | ||||
Net | [6] | 960,202 | ||
2023 thereafter | Temporary adjustments | ||||
Realization of deferred income tax and social contribution | ||||
Net | [7] | 77,000 | ||
2023 thereafter | Business combination | ||||
Realization of deferred income tax and social contribution | ||||
Net | [8] | 9,494 | ||
2023 thereafter | Additional indexation PP&E | ||||
Realization of deferred income tax and social contribution | ||||
Net | [9] | 40,242 | ||
2023 thereafter | Amortization of fair value adjustments on the assets from the acquisiton of Quattor | ||||
Realization of deferred income tax and social contribution | ||||
Net | 311,773 | |||
2023 thereafter | Other | ||||
Realization of deferred income tax and social contribution | ||||
Net | 4,273 | |||
2023 thereafter | Liabilities | ||||
Realization of deferred income tax and social contribution | ||||
Net | R$ 2115857 | |||
[1] | In Brazil and Germany, the use of tax losses has limits in relation to the amount of taxable income for the year. In Brazil, this limit is 30%, whereas in Germany is 60%. | |||
[2] | In Brazil, the Company opted to tax exchange variation of assets and liabilities denominated in foreign currency under the cash method. Thus, this variation will be realized as assets and liabilities are received/paid. For accounting purposes, exchange variation is recognized under the accrual basis, which results in deferred IR and CSL. | |||
[3] | Accounting expenses not yet deductible for calculating income tax and social contribution, whose recognition for tax purposes occurs in subsequent periods. | |||
[4] | Refers to: tax-related goodwill, and contingencies recognized from business combinations. Tax realization of goodwill will occur upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. | |||
[5] | Goodwill for the future profitability of the merged companies not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or any other reason. | |||
[6] | For calculation of IR and CSL, assets are depreciated at rates higher than those used for accounting purposes. As tax depreciation is exhausted, these deferred IR and CSL start to be realized. | |||
[7] | Revenues whose taxation will occur in subsequent periods. | |||
[8] | Fair value adjustments on property, plant and equipment and intangible assets identified in business combinations, whose tax realization is based on the depreciation and amortization of these assets. | |||
[9] | Additional adjustment of property, plant and equipment, whose tax realization is based on the depreciation of assets. |
Income tax ("IR") and social _8
Income tax ("IR") and social contribution ("CSL") (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax ("IR") and social contribution ("CSL") (Details Text) | ||
Tax rates | 35.00% | |
Effective rate | 16.80% | 440.00% |
Effective tax rate | 36.90% | |
Generate taxable income | R$ 665076 | |
Brazil | ||
Income tax ("IR") and social contribution ("CSL") (Details Text) | ||
Tax rates | 34.00% | |
Tax rate losses | 30.00% | |
Germany | ||
Income tax ("IR") and social contribution ("CSL") (Details Text) | ||
Tax rate losses | 60.00% | |
2018 | ||
Income tax ("IR") and social contribution ("CSL") (Details Text) | ||
Tax rates | 21.00% |
Sundry provisions (Details 1)
Sundry provisions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Sundry provisions | ||
Total provisions | R$ 413672 | R$ 319136 |
Current liabilities | 178,676 | 112,891 |
Non-current liabilities | 234,996 | 206,245 |
Provision for customers rebates | ||
Sundry provisions | ||
Total provisions | 87,913 | 41,475 |
Provision for recovery of environmental damages | ||
Sundry provisions | ||
Total provisions | 300,249 | 254,040 |
Other | ||
Sundry provisions | ||
Total provisions | R$ 25510 | R$ 23621 |
Sundry provisions (Details 2)
Sundry provisions (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Changes in provisions | |
Beginning balance | R$ 319136 |
Additions, inflation adjustments and exchange variation, net | 224,309 |
Write-offs through usage and payments | (129,773) |
Ending balance | 413,672 |
Provision for customers rebates | |
Changes in provisions | |
Beginning balance | 41,475 |
Additions, inflation adjustments and exchange variation, net | 116,085 |
Write-offs through usage and payments | (69,647) |
Ending balance | 87,913 |
Provision for recovery of environmental damages | |
Changes in provisions | |
Beginning balance | 254,040 |
Additions, inflation adjustments and exchange variation, net | 102,480 |
Write-offs through usage and payments | (56,271) |
Ending balance | 300,249 |
Other | |
Changes in provisions | |
Beginning balance | 23,621 |
Additions, inflation adjustments and exchange variation, net | 5,744 |
Write-offs through usage and payments | (3,855) |
Ending balance | R$ 25510 |
Contingencies (Details 1)
Contingencies (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Claims with probable chance of loss and arising from business combinations | ||
Total | R$ 1092645 | R$ 985237 |
Labor claims | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 255,938 | 207,827 |
Tax | Normal operations | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 258,321 | 275,168 |
Tax | Normal operations | IR and CSL | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 17,313 | 11,462 |
Tax | Normal operations | PIS and COFINS | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 155,681 | 204,516 |
Tax | Normal operations | ICMS | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 76,342 | 39,604 |
Tax | Normal operations | Other tax claims | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 8,985 | 19,586 |
Business Combination | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 369,724 | 336,158 |
Business Combination | IR and CSL | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 50,051 | 45,656 |
Business Combination | PIS and COFINS | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 56,135 | 51,052 |
Business Combination | ICMS - interstate purchases | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 263,538 | 239,450 |
Corporate claims | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | 135,779 | 105,175 |
Civil claims and other | ||
Claims with probable chance of loss and arising from business combinations | ||
Total | R$ 72883 | R$ 60909 |
Contingencies (Details 2)
Contingencies (Details 2) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Changes of claims with probable chance of loss | |
Beginning balance | R$ 985237 |
Additions, inflation adjustments and exchange variation, net | 532,216 |
Write-offs through usage and payments | (424,808) |
Ending balance | 1,092,645 |
Labor claims | |
Changes of claims with probable chance of loss | |
Beginning balance | 207,827 |
Additions, inflation adjustments and exchange variation, net | 164,962 |
Write-offs through usage and payments | (115,497) |
Ending balance | 257,292 |
Tax | |
Changes of claims with probable chance of loss | |
Beginning balance | 611,326 |
Additions, inflation adjustments and exchange variation, net | 177,314 |
Write-offs through usage and payments | (130,596) |
Ending balance | 658,044 |
Corporate claims | |
Changes of claims with probable chance of loss | |
Beginning balance | 105,175 |
Additions, inflation adjustments and exchange variation, net | 169,683 |
Write-offs through usage and payments | (170,432) |
Ending balance | 104,426 |
Civil claims and other | |
Changes of claims with probable chance of loss | |
Beginning balance | 60,909 |
Additions, inflation adjustments and exchange variation, net | 20,257 |
Write-offs through usage and payments | (8,283) |
Ending balance | R$ 72883 |
Contingencies (Details 3)
Contingencies (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Claims with possible chance of loss | ||
Total | R$ 7931818 | R$ 7549099 |
Tax | ||
Claims with possible chance of loss | ||
Total | 6,048,462 | 6,307,214 |
Labor claims | ||
Claims with possible chance of loss | ||
Total | 812,400 | 580,623 |
Civil claims | ||
Claims with possible chance of loss | ||
Total | 693,188 | 494,965 |
Social security tax claims | ||
Claims with possible chance of loss | ||
Total | 91,824 | 122,941 |
Other lawsuits | ||
Claims with possible chance of loss | ||
Total | R$ 285944 | R$ 43356 |
Contingencies (Details Text)
Contingencies (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2024 | Dec. 31, 2020 | Jun. 27, 2019 | Jan. 30, 2019 | Jun. 28, 2018 | Jan. 30, 2018 | Dec. 31, 2017 | Oct. 02, 2017 | Jul. 06, 2017 | Jun. 27, 2017 | Apr. 27, 2017 | Feb. 08, 2017 | Dec. 31, 2016 | Dec. 31, 2009 |
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | R$ 7931818 | R$ 7549099 | ||||||||||||
Approximate value in Reais (R$) | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | 410,000 | |||||||||||||
U.S. Department of Justice (“DoJ”) | Approximate value in Reais (R$) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Agreement (Agreement) Total | 3,100,000 | |||||||||||||
Net effect of present value recorded | Approximate value in Reais (R$) | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | 375,000 | |||||||||||||
Aggregate amount of the Global Settlement | Approximate value in Reais (R$) | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | 1,400,000 | |||||||||||||
USD | Global Settlement | U.S. Department of Justice (“DoJ”) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 94894 | |||||||||||||
USD | Global Settlement | Federal Prosecution Office of Brazil (MPF) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 65000 | |||||||||||||
USD | U.S. Department of Justice (“DoJ”) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Agreement (Agreement) Total | 957,000 | |||||||||||||
USD | Aggregate amount of the Global Settlement | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | 418,000 | |||||||||||||
USD | Class action | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 10000 | |||||||||||||
BRL | Global Settlement | U.S. Department of Justice (“DoJ”) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 296591 | |||||||||||||
BRL | Global Settlement | Federal Prosecution Office of Brazil (MPF) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 736445 | R$ 206460 | ||||||||||||
BRL | Global Settlement | Attorney General in Switzerland (OAG) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 104307 | |||||||||||||
BRL | Amount to be paid, adjusted | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | 2,000,000 | |||||||||||||
BRL | Amount to be paid, adjusted | Global Settlement | Federal Prosecution Office of Brazil (MPF) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 278034 | R$ 267985 | ||||||||||||
BRL | Amount to be paid, adjusted | Global Settlement | Attorney General in Switzerland (OAG) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 58034 | R$ 62021 | ||||||||||||
BRL | Outstanding amount on the date of issuance of these financial statements | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | 1,600,000 | |||||||||||||
BRL | Outstanding amount on the date of issuance of these financial statements | Global Settlement | Federal Prosecution Office of Brazil (MPF) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 409876 | R$ 1100000 | ||||||||||||
BRL | Class action | Global Settlement | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 31680 | |||||||||||||
CHF | Global Settlement | Attorney General in Switzerland (OAG) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 30240 | |||||||||||||
CHF | Amount to be paid, adjusted | Global Settlement | Attorney General in Switzerland (OAG) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Leniency Settlements paymentos, Global settlement | R$ 16065 | R$ 16065 | ||||||||||||
Tax | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 6,048,462 | 6,307,214 | ||||||||||||
Tax | PIS and COFINS: taxation of tax losses and reductions in debits in connection with the installment payment program under MP 470/09 | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 842,000 | |||||||||||||
Tax | IR and CSL – Charges with goodwill amortization | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 1,200,000 | |||||||||||||
Tax | Non-cumulative PIS and COFINS taxes | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 1,200,000 | |||||||||||||
Tax | Income Tax (IR) and Social Contribution (CSL) – Unlimited offsetting | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 348,000 | |||||||||||||
Tax | ICMS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 470,000 | |||||||||||||
Assets offered as collateral | 60,000 | |||||||||||||
Tax | IOF | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 175,000 | |||||||||||||
Claims offered as collateral | 61,000 | |||||||||||||
Tax | PIS and COFINS sundry | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 134,000 | |||||||||||||
Assets offered as collateral | 134,000 | |||||||||||||
Tax | IRRF, IR and CSL – Commission expenses | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 116,000 | |||||||||||||
Tax | IRPJ and CSLL – Exchange variation on naphtha imports | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 104,000 | |||||||||||||
Tax | Isolated fine – failure to ratify DCOMPS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 95,000 | |||||||||||||
Tax | Income Tax and Social Contribution – Reduction of tax losses and social contribution tax loss carryforwards | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 53,000 | |||||||||||||
Tax | Non-cumulative PIS and COFINS taxes | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Provisions for fine for tax offense | 153,639 | |||||||||||||
Tax | PIS and COFINS taxes | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Provisions for fine for tax offense | 56,135 | |||||||||||||
Tax | ICMS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Provisions for fine for tax offense | 263,538 | |||||||||||||
Tax | ICMS – Decree 38,394/2000 | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Provisions for fine for tax offense | 43,774 | |||||||||||||
Corporate claims | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Unsecured provision for corporate claims | 56,171 | |||||||||||||
Civil claims | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 693,188 | 494,965 | ||||||||||||
Civil claims | Excess weight | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 61,000 | |||||||||||||
Civil claims | Caustic soda transportation | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 86,000 | |||||||||||||
Civil claims | Resale of solvents | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 164,000 | |||||||||||||
Corporate | Current value | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Payment of non-controlling preferred shareholders the distribution of the remaining profits | 13,000 | |||||||||||||
Corporate | Possible likelihood of loss | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Payment of non-controlling preferred shareholders the distribution of the remaining profits | 161,000 | |||||||||||||
Other lawsuits | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 285,944 | R$ 43356 | ||||||||||||
Other lawsuits | Social Security Contributions – Withholding of 11% | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 29,000 | |||||||||||||
Other lawsuits | Social security – hazardous agents | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims offered as collateral | 3,600 | |||||||||||||
Other lawsuits | Social security – hazardous agents | Payment of a premium for Labor Accident Risk (“RAT”) | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | 324,000 | |||||||||||||
Other lawsuits | Social security – hazardous agents | Other actions in administrative proceedings and lawsuits | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Claims with possible chance of loss | R$ 37800 | |||||||||||||
Braskem Qpar | Tax | ICMS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Fine for tax offense | R$ 480389 | |||||||||||||
Braskem Qpar | Tax | February 2004 to August 2005, November 2005 to February 2006, and September 2006 to January 2008 | ICMS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Estimated amounts at risk in main tax and social security lawsuits | 53,478 | |||||||||||||
Braskem Qpar | Tax | December 2004 to August 2005 | ICMS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Estimated amounts at risk in main tax and social security lawsuits | 1,581 | |||||||||||||
Braskem Qpar | Tax | August 2004 to November 2005 | ICMS | ||||||||||||||
Contingencies (Details Text) | ||||||||||||||
Estimated amounts at risk in main tax and social security lawsuits | R$ 3105 |
Benefits offered to team memb_3
Benefits offered to team members (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shortterm Benefits [Abstract] | |||
Health care | R$ 140553 | R$ 139412 | R$ 126545 |
Private pension | 67,008 | 61,593 | 60,476 |
Transport | 58,825 | 55,223 | 50,935 |
Feeding | 30,916 | 28,874 | 27,755 |
Training | 18,285 | 20,589 | 19,101 |
Other | 16,173 | 13,237 | 18,789 |
Short term employee benefits expense | R$ 331760 | R$ 318928 | R$ 303601 |
Benefits offered to team memb_4
Benefits offered to team members (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Amounts in balance sheet | |||
Consolidated net balance (non-current liabilities) | R$ 193775 | R$ 162136 | |
Net defined benefit liability (asset) | (193,775) | (162,136) | |
Present value of defined benefit obligation | |||
Amounts in balance sheet | |||
Net defined benefit liability (asset) | (156,957) | (129,617) | |
Total obligations | |||
Amounts in balance sheet | |||
Net defined benefit liability (asset) | (240,190) | (201,516) | R$ 216632 |
Fair value of plan assets | |||
Amounts in balance sheet | |||
Net defined benefit liability (asset) | 46,415 | 39,380 | R$ 46395 |
Defined benefit | |||
Amounts in balance sheet | |||
Consolidated net balance (non-current liabilities) | 110,542 | 90,237 | |
Defined benefit | Novamont Braskem America | |||
Amounts in balance sheet | |||
Consolidated net balance (non-current liabilities) | 18,140 | 20,285 | |
Defined benefit | Braskem Alemanha and Holanda | |||
Amounts in balance sheet | |||
Consolidated net balance (non-current liabilities) | 92,402 | 69,952 | |
Health care | |||
Amounts in balance sheet | |||
Consolidated net balance (non-current liabilities) | 83,233 | 71,899 | |
Net defined benefit liability (asset) | (83,233) | (71,899) | |
Funded status of the plan | |||
Amounts in balance sheet | |||
Net defined benefit liability (asset) | R$ 193775 | R$ 162136 |
Benefits offered to team memb_5
Benefits offered to team members (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in obligations | ||
Balance at beginning of year | R$ 162136 | |
Current service cost | 5,058 | R$ 4576 |
Interest cost | 4,139 | 3,983 |
Balance at the end of the year | 193,775 | 162,136 |
Total obligations | ||
Change in obligations | ||
Balance at beginning of year | 201,516 | 216,632 |
Health care | 11,334 | 2,203 |
Current service cost | 5,058 | 4,576 |
Interest cost | 4,139 | 3,983 |
Benefits paid | (3,399) | (3,156) |
Actuarial losses (gain) | 9,661 | 3,590 |
Exchange variation | 11,881 | (26,312) |
Balance at the end of the year | R$ 240190 | R$ 201516 |
Benefits offered to team memb_6
Benefits offered to team members (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in fair value plan assets | ||
Balance at beginning of year | R$ 162136 | |
Balance at the end of the year | (193,775) | R$ 162136 |
Fair value of plan assets | ||
Change in fair value plan assets | ||
Balance at beginning of year | 39,380 | 46,395 |
Actual return on plan assets | 5,115 | 221 |
Employer contributions | 4,069 | 3,569 |
Benefits paid | (2,915) | (3,087) |
Exchange variation | 766 | (7,718) |
Balance at the end of the year | R$ 46415 | R$ 39380 |
Benefits offered to team memb_7
Benefits offered to team members (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts Recognized In Profit Or Loss [Abstract] | ||
Health care | R$ 11334 | R$ 2203 |
Current service cost | 5,058 | 4,576 |
Interest cost | 4,139 | 3,983 |
Expected return on plan assets | (28) | (31) |
Actuarial losses | 6,069 | 2,472 |
Total | R$ 26572 | R$ 13203 |
Benefits offered to team memb_8
Benefits offered to team members (Details 6) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
United States | Discount rate | |||
Actuarial assumptions | |||
Actuarial assumptions | 3.70% | 4.35% | 4.60% |
United States | Expected return on plan assets | |||
Actuarial assumptions | |||
Actuarial assumptions | 7.50% | ||
Germany | Discount rate | |||
Actuarial assumptions | |||
Actuarial assumptions | 2.00% | 2.00% | 3.75% |
Germany | Inflation rate | |||
Actuarial assumptions | |||
Actuarial assumptions | 2.00% | 2.00% | |
Germany | Rate of increase in future salary levels | |||
Actuarial assumptions | |||
Actuarial assumptions | 2.50% | 3.00% | 3.00% |
Netherlands | Discount rate | |||
Actuarial assumptions | |||
Actuarial assumptions | 2.00% | ||
Netherlands | Rate of increase in future salary levels | |||
Actuarial assumptions | |||
Actuarial assumptions | 2.50% | ||
Netherlands | Rate of increase in future pension plan | |||
Actuarial assumptions | |||
Actuarial assumptions | 1.75% | 1.75% | |
Health insurance | Discount rate | |||
Actuarial assumptions | |||
Actuarial assumptions | 5.45% | 4.18% | 7.22% |
Health insurance | Inflation rate | |||
Actuarial assumptions | |||
Actuarial assumptions | 4.50% | 6.00% | 6.50% |
Health insurance | Rate of increase in future pension plan | |||
Actuarial assumptions | |||
Actuarial assumptions | 1.75% | ||
Health insurance | Aging factor | |||
Actuarial assumptions | |||
Actuarial assumptions | 2.50% | 2.50% | 2.50% |
Health insurance | Medical inflation | |||
Actuarial assumptions | |||
Actuarial assumptions | 3.50% | 3.50% | 3.50% |
Health insurance | Duration | |||
Actuarial assumptions | |||
Actuarial assumptions | 18.84% | 29.24% | 35.55% |
Benefits offered to team memb_9
Benefits offered to team members (Details 7) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Discount rate | United States | |||
Impact on the defined benefit obligation | |||
Premise change | 3.70% | 4.35% | 4.60% |
Discount rate | Germany | |||
Impact on the defined benefit obligation | |||
Premise change | 2.00% | 2.00% | 3.75% |
Discount rate | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 2.00% | ||
Discount rate | Health insurance | |||
Impact on the defined benefit obligation | |||
Premise change | 5.45% | 4.18% | 7.22% |
Discount rate | Sensitivity analysis | United States | |||
Impact on the defined benefit obligation | |||
Premise change | 1.00% | ||
Premise increase | R$ 7045 | ||
Premise reduction | R$ 8630 | ||
Discount rate | Sensitivity analysis | Germany | |||
Impact on the defined benefit obligation | |||
Premise change | 0.50% | ||
Premise increase | R$ 9480 | ||
Premise reduction | R$ 10582 | ||
Discount rate | Sensitivity analysis | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 0.50% | ||
Premise increase | R$ 452 | ||
Premise reduction | R$ 500 | ||
Discount rate | Sensitivity analysis | Health insurance | |||
Impact on the defined benefit obligation | |||
Premise change | 1.00% | ||
Premise increase | R$ 9025 | ||
Premise reduction | R$ 11019 | ||
Medical inflation | Health insurance | |||
Impact on the defined benefit obligation | |||
Premise change | 3.50% | 3.50% | 3.50% |
Medical inflation | Sensitivity analysis | Health insurance | |||
Impact on the defined benefit obligation | |||
Premise change | 1.00% | ||
Premise increase | R$ 11923 | ||
Premise reduction | R$ 7946 | ||
Rate of increase in future salary levels | Germany | |||
Impact on the defined benefit obligation | |||
Premise change | 2.50% | 3.00% | 3.00% |
Rate of increase in future salary levels | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 2.50% | ||
Rate of increase in future salary levels | Sensitivity analysis | Germany | |||
Impact on the defined benefit obligation | |||
Premise change | 0.50% | ||
Premise increase | R$ 4522 | ||
Premise reduction | R$ 4259 | ||
Rate of increase in future salary levels | Sensitivity analysis | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 0.50% | ||
Premise increase | R$ 255 | ||
Premise reduction | R$ 243 | ||
Rate of increase in future pension plan | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 1.75% | 1.75% | |
Rate of increase in future pension plan | Health insurance | |||
Impact on the defined benefit obligation | |||
Premise change | 1.75% | ||
Rate of increase in future pension plan | Sensitivity analysis | Germany | |||
Impact on the defined benefit obligation | |||
Premise change | 0.25% | ||
Premise increase | R$ 2709 | ||
Premise reduction | R$ 2629 | ||
Rate of increase in future pension plan | Sensitivity analysis | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 0.25% | ||
Premise increase | R$ 126 | ||
Premise reduction | R$ 123 | ||
Life expectancy | Sensitivity analysis | Germany | |||
Impact on the defined benefit obligation | |||
Premise change | 1.00% | ||
Premise increase | R$ 2217 | ||
Premise reduction | R$ 2314 | ||
Life expectancy | Sensitivity analysis | Netherlands | |||
Impact on the defined benefit obligation | |||
Premise change | 1.00% | ||
Premise increase | R$ 122 | ||
Premise reduction | R$ 127 | ||
Mortality rate | Sensitivity analysis | United States | |||
Impact on the defined benefit obligation | |||
Premise change | 10.00% | ||
Premise increase | R$ 1889 | ||
Premise reduction | R$ 2072 |
Benefits offered to team mem_10
Benefits offered to team members (Details 8) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Discount rate | |
Health insurance - Impact on cost of services and interests costs | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 177 |
Premise increase, interest costs | 145 |
Premise reduction, cost of services | (221) |
Premise reduction, interest costs | R$ 138 |
Medical inflation | |
Health insurance - Impact on cost of services and interests costs | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 245 |
Premise increase, interest costs | 1,216 |
Premise reduction, cost of services | (151) |
Premise reduction, interest costs | R$ 810 |
Benefits offered to team mem_11
Benefits offered to team members (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Benefits offered to team members (Details Text) | ||
Contributions made by sponsors | R$ 38332 | R$ 30500 |
Contributions made by the participants | 60,038 | 52,741 |
Braskem America | ||
Benefits offered to team members (Details Text) | ||
Contributions made by sponsors | R$ 4069 | R$ 3569 |
Equity (Details 1)
Equity (Details 1) shares in Thousands | Dec. 31, 2017shares | |
Capital | ||
Shares outstanding | 797,257,604 | |
Percentage of outstanding shares | 100.00% | |
Treasury shares | ||
Capital | ||
Shares outstanding | 1,234,758 | |
Percentage of outstanding shares | 0.15% | |
Odebrecht | ||
Capital | ||
Shares outstanding | 305,517,121 | |
Percentage of outstanding shares | 38.32% | |
Petrobras | ||
Capital | ||
Shares outstanding | 288,188,691 | |
Percentage of outstanding shares | 36.15% | |
ADR | ||
Capital | ||
Shares outstanding | 56,088,424 | [1] |
Percentage of outstanding shares | 7.04% | [1] |
Other | ||
Capital | ||
Shares outstanding | 146,228,610 | |
Percentage of outstanding shares | 18.34% | |
Total | ||
Capital | ||
Shares outstanding | 796,022,846 | |
Percentage of outstanding shares | 99.85% | |
Common shares | ||
Capital | ||
Shares outstanding | 451,668,652 | |
Percentage of outstanding shares | 100.00% | |
Common shares | Odebrecht | ||
Capital | ||
Shares outstanding | 226,334,623 | |
Percentage of outstanding shares | 50.11% | |
Common shares | Petrobras | ||
Capital | ||
Shares outstanding | 212,426,952 | |
Percentage of outstanding shares | 47.03% | |
Common shares | Other | ||
Capital | ||
Shares outstanding | 12,907,077 | |
Percentage of outstanding shares | 2.86% | |
Common shares | Total | ||
Capital | ||
Shares outstanding | 451,668,652 | |
Percentage of outstanding shares | 100.00% | |
Preferred shares class "A" | ||
Capital | ||
Shares outstanding | 345,010,622 | |
Percentage of outstanding shares | 100.00% | |
Preferred shares class "A" | Treasury shares | ||
Capital | ||
Shares outstanding | 1,234,758 | |
Percentage of outstanding shares | 0.35% | |
Preferred shares class "A" | Odebrecht | ||
Capital | ||
Shares outstanding | 79,182,498 | |
Percentage of outstanding shares | 22.95% | |
Preferred shares class "A" | Petrobras | ||
Capital | ||
Shares outstanding | 75,761,739 | |
Percentage of outstanding shares | 21.96% | |
Preferred shares class "A" | ADR | ||
Capital | ||
Shares outstanding | 56,088,424 | [1] |
Percentage of outstanding shares | 16.26% | [1] |
Preferred shares class "A" | Other | ||
Capital | ||
Shares outstanding | 132,743,203 | |
Percentage of outstanding shares | 38.48% | |
Preferred shares class "A" | Total | ||
Capital | ||
Shares outstanding | 343,775,864 | |
Percentage of outstanding shares | 99.65% | |
Preferred shares class "B" | ||
Capital | ||
Shares outstanding | 578,330 | |
Percentage of outstanding shares | 100.00% | |
Preferred shares class "B" | Other | ||
Capital | ||
Shares outstanding | 578,330 | |
Percentage of outstanding shares | 100.00% | |
Preferred shares class "B" | Total | ||
Capital | ||
Shares outstanding | 578,330 | |
Percentage of outstanding shares | 100.00% | |
[1] | American Depositary Receipts traded on the New York Stock Exchange (USA); |
Equity (Details 2)
Equity (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Profit Or Loss For The Year [Abstract] | ||
Net income for the year of Company's shareholders | R$ 4082990 | |
Amounts recorded directly to retained earnings | ||
Legal reserves distribution | (204,150) | |
Tax incentive reserve distribution | (71,745) | |
Realization of additional property, plant and equipment | 27,810 | |
Prescribed dividends | 482 | R$ 479 |
Profit (loss) after legal reserves distribution | 3,835,387 | |
Destinations: | ||
Total proposed dividends, paid in advance in December 2017 | (1,000,000) | |
Additional dividends proposed | (1,500,000) | (752,636) |
Portion allocated to unrealized profit reserves | (1,335,387) | |
Net earning from destinations | (3,835,387) | |
Composition of the total proposed dividends | ||
Minimum dividends - 25% adjusted net income | (958,847) | |
Additional proposed dividends | (41,153) | |
Total dividends paid in December 2017 | (1,000,000) | |
Additional dividends proposed | (1,500,000) | R$ 752636 |
Total dividends | R$ 2500000 |
Equity (Details 3)
Equity (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other comprehensive income - Equity | ||||
Balance at | R$ 5643467 | R$ 6870460 | R$ 9537418 | R$ 3058557 |
Additional indexation | ||||
Realization by depreciation or write-off assets | (40,678) | (41,268) | (41,268) | |
Income tax and social contribution | 13,831 | 14,032 | 14,032 | |
Deemed cost of jointly-controlled investment | ||||
Realization by depreciation or write-off assets | (1,459) | (1,461) | (1,462) | |
Income tax and social contribution | 496 | 496 | 496 | |
Foreign sales hedge | ||||
Exchange rate | 75,672 | 2,126,784 | (10,026,623) | |
Transfer to result | 1,186,526 | 1,357,744 | ||
Income tax and social contribution | (403,691) | (1,261,414) | 3,345,125 | |
Fair value of Cash flow hedge | ||||
Change in fair value | 883,149 | 247,079 | (549,473) | |
Transfer to result | (277,944) | (31,569) | (72,518) | |
Income tax and social contribution | (203,187) | (75,333) | 206,315 | |
Fair value of cash flow hedge from jointly-controlled | 3,534 | (3,309) | 2,295 | |
Actuarial loss with post-employment benefits, net of taxes | (8,654) | (4,119) | (9,129) | |
Foreign currency translation adjustment | (602) | 339,296 | 653,349 | |
Deemed cost and additional indexation on PP&E | ||||
Other comprehensive income - Equity | ||||
Balance at | 178,893 | 206,703 | 234,904 | 263,106 |
Additional indexation | ||||
Realization by depreciation or write-off assets | (40,678) | (41,268) | (41,268) | |
Income tax and social contribution | 13,831 | 14,032 | 14,032 | |
Deemed cost of jointly-controlled investment | ||||
Realization by depreciation or write-off assets | (1,459) | (1,461) | (1,462) | |
Income tax and social contribution | 496 | 496 | 496 | |
Defined benefit plans actuarial Gain (loss) | ||||
Other comprehensive income - Equity | ||||
Balance at | (52,005) | (43,351) | (39,232) | (30,103) |
Fair value of Cash flow hedge | ||||
Actuarial loss with post-employment benefits, net of taxes | (8,654) | (4,119) | (9,129) | |
Foreign sales hedge | ||||
Other comprehensive income - Equity | ||||
Balance at | (6,358,242) | (7,105,377) | (9,666,973) | (3,263,732) |
Foreign sales hedge | ||||
Exchange rate | (42,507) | 2,625,551 | (9,629,237) | |
Transfer to result | 1,145,602 | 1,342,785 | ||
Income tax and social contribution | (355,960) | 3,225,996 | 3,225,996 | |
Fair value of hedge | ||||
Other comprehensive income - Equity | ||||
Balance at | (145,267) | (539,518) | (685,396) | (289,667) |
Fair value of Cash flow hedge | ||||
Change in fair value | 876,636 | 247,815 | (524,682) | |
Transfer to result | (287,576) | (19,434) | (72,518) | |
Income tax and social contribution | (198,343) | (79,194) | 199,176 | |
Fair value of cash flow hedge from jointly-controlled | 3,534 | (3,309) | 2,295 | |
Foreign currency translation adjustment | ||||
Other comprehensive income - Equity | ||||
Balance at | 1,220,533 | 1,169,088 | 1,105,391 | 386,628 |
Fair value of Cash flow hedge | ||||
Foreign currency translation adjustment | 51,445 | 63,697 | 718,763 | |
Gain (loss) on interest in subsidiary | ||||
Other comprehensive income - Equity | ||||
Balance at | (9,404) | (9,404) | (9,404) | (9,404) |
Total Braskem shareholders' interest | ||||
Other comprehensive income - Equity | ||||
Balance at | (5,165,492) | (6,321,859) | (9,060,710) | (2,943,172) |
Additional indexation | ||||
Realization by depreciation or write-off assets | (40,678) | (41,268) | (41,268) | |
Income tax and social contribution | 13,831 | 14,032 | 14,032 | |
Deemed cost of jointly-controlled investment | ||||
Realization by depreciation or write-off assets | (1,459) | (1,461) | (1,462) | |
Income tax and social contribution | 496 | 496 | 496 | |
Foreign sales hedge | ||||
Exchange rate | (42,507) | 2,625,551 | (9,629,237) | |
Transfer to result | 1,145,602 | 1,342,785 | ||
Income tax and social contribution | (355,960) | (1,406,740) | 3,225,996 | |
Fair value of Cash flow hedge | ||||
Change in fair value | 876,636 | 247,815 | (524,682) | |
Transfer to result | (287,576) | (19,434) | (72,518) | |
Income tax and social contribution | (198,343) | (79,194) | 199,176 | |
Fair value of cash flow hedge from jointly-controlled | 3,534 | (3,309) | 2,295 | |
Actuarial loss with post-employment benefits, net of taxes | (8,654) | (4,119) | (9,129) | |
Foreign currency translation adjustment | 51,445 | 63,697 | 718,763 | |
Non-controlling interest in subsidiaries | ||||
Other comprehensive income - Equity | ||||
Balance at | (477,975) | (548,601) | (476,708) | R$ 115385 |
Foreign sales hedge | ||||
Exchange rate | 118,179 | (498,767) | (397,386) | |
Transfer to result | 40,924 | 14,959 | ||
Income tax and social contribution | (47,731) | 145,326 | 119,129 | |
Fair value of Cash flow hedge | ||||
Change in fair value | 6,513 | (736) | (24,791) | |
Transfer to result | 9,632 | (12,135) | ||
Income tax and social contribution | (4,844) | 3,861 | 7,139 | |
Foreign currency translation adjustment | R$ 52047 | R$ 275599 | R$ 65414 |
Equity (Details Text)
Equity (Details Text) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity (Details Text) | |||
Capital | R$ 8043222 | R$ 8043222 | |
Shares outstanding | 797,257,604 | ||
Prepayment of dividends | R$ 1000000 | ||
Dividends Paid | R$ 1000000 | ||
Preferred shares class "A" | |||
Equity (Details Text) | |||
Shares outstanding | 345,010,622 | ||
Dividend per unit | R$ 1.25671835741 | ||
Dividends Paid | 432,181 | 432,020 | |
Preferred shares class "B" | |||
Equity (Details Text) | |||
Shares outstanding | 578,330 | ||
Dividend per unit | R$ 0.60624979930 | ||
Dividends Paid | 360 | ||
Common shares | |||
Equity (Details Text) | |||
Shares outstanding | 451,668,652 | ||
Dividends Paid | R$ 567819 | R$ 567620 |
Earnings per share (Details 1)
Earnings per share (Details 1) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share | |||
Profit (loss) for the year attributed to Company's shareholders of continued operations | R$ 3856564 | R$ 442430 | R$ 2995338 |
Distribution of dividends attributable to priority | 208,767 | 208,769 | |
Distribution of 6% of unit value of common shares | 273,827 | 273,824 | |
Distribution of plus income, by class | 3,373,970 | 2,512,745 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 3856564 | R$ 442430 | R$ 2995338 |
Weighted average number of shares, by class (denominator) | 796,022,846 | 795,439,817 | 796,045,832 |
Preferred shares class "A" | |||
Earnings per share | |||
Distribution of dividends attributable to priority | R$ 208416 | R$ 208409 | |
Distribution of plus income, by class | 1,458,165 | 1,085,974 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 1666581 | R$ 191208 | R$ 1294383 |
Weighted average number of shares, by class (denominator) | 343,775,864 | 343,771,165 | 343,783,562 |
Profit (loss) per share (in R$) | R$ 4.8479 | R$ 0.5562 | R$ 3.7651 |
Preferred shares class "B" | |||
Earnings per share | |||
Distribution of dividends attributable to priority | R$ 351 | R$ 360 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 351 | R$ 360 | |
Weighted average number of shares, by class (denominator) | 578,330 | 593,618 | |
Profit (loss) per share (in R$) | R$ 0.6069 | R$ 0.6065 | |
Common shares | |||
Earnings per share | |||
Distribution of plus income, by class | R$ 1915805 | R$ 1426771 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 2189632 | R$ 251222 | R$ 1700595 |
Weighted average number of shares, by class (denominator) | 451,668,652 | 451,668,652 | 451,668,652 |
Profit (loss) per share (in R$) | R$ 4.8479 | R$ 0.5562 | R$ 3.7651 |
Earnings per share (Details 2)
Earnings per share (Details 2) - Preferred shares class "A" - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Outstanding shares | ||
Earnings per share | ||
Amount at beginning of year | 343,768,220 | 343,848,120 |
Repurchase of treasury shares | (80,000) | |
Conversion of preferred shares class "B" to "A" | 7,644 | 100 |
Amount at the end of the year | 343,775,864 | 343,768,220 |
Weighted average | ||
Earnings per share | ||
Amount at beginning of year | 343,783,562 | 343,848,120 |
Repurchase of treasury shares | (64,658) | |
Conversion of preferred shares class "B" to "A" | 2,945 | 100 |
Amount at the end of the year | 343,771,165 | 343,783,562 |
Net sales revenues (Details 1)
Net sales revenues (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenue [Abstract] | |||
Domestic market | R$ 34983265 | R$ 32293042 | R$ 30366378 |
Foreign market | 23,297,304 | 23,084,703 | 23,159,820 |
Total sales revenue | 58,280,569 | 55,377,745 | 53,526,198 |
Taxes | |||
Domestic market | (8,663,707) | (7,316,325) | (6,214,041) |
Foreign market | (33,798) | (102,831) | (122,776) |
Costumers rebates | |||
Domestic market | (35,538) | (25,400) | (12,900) |
Foreign market | (60,990) | (23,820) | (16,552) |
Sales returns | |||
Domestic market | (125,153) | (168,625) | (167,515) |
Foreign market | (100,789) | (76,756) | (112,425) |
Total sales and services deductions | (9,019,975) | (7,713,757) | (6,646,209) |
Net sales and services revenue | R$ 49260594 | R$ 47663988 | R$ 46879989 |
Net sales revenues (Details 2)
Net sales revenues (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales revenue by country | |||
Net sales revenue | R$ 49260594 | R$ 47663988 | R$ 46879989 |
Brazil | |||
Net sales revenue by country | |||
Net sales revenue | 26,147,559 | 24,640,077 | 23,729,106 |
United States | |||
Net sales revenue by country | |||
Net sales revenue | 8,539,972 | 7,965,209 | 9,601,157 |
Argentina | |||
Net sales revenue by country | |||
Net sales revenue | 1,336,440 | 1,244,267 | 1,339,775 |
United Kingdom | |||
Net sales revenue by country | |||
Net sales revenue | 202,830 | 589,725 | 2,438,148 |
Germany | |||
Net sales revenue by country | |||
Net sales revenue | 1,192,287 | 1,198,760 | 1,239,286 |
Mexico | |||
Net sales revenue by country | |||
Net sales revenue | 3,408,385 | 2,075,695 | 967,829 |
Italy | |||
Net sales revenue by country | |||
Net sales revenue | 604,546 | 667,265 | 561,347 |
Netherlands | |||
Net sales revenue by country | |||
Net sales revenue | 333,134 | 262,289 | 622,436 |
Singapore | |||
Net sales revenue by country | |||
Net sales revenue | 542,866 | 1,101,156 | 1,017,128 |
Switzerland | |||
Net sales revenue by country | |||
Net sales revenue | 415,729 | 227,504 | 334,422 |
Colombia | |||
Net sales revenue by country | |||
Net sales revenue | 340,396 | 369,359 | 278,304 |
Spain | |||
Net sales revenue by country | |||
Net sales revenue | 282,854 | 342,154 | 391,097 |
Chile | |||
Net sales revenue by country | |||
Net sales revenue | 554,237 | 522,796 | 503,650 |
Peru | |||
Net sales revenue by country | |||
Net sales revenue | 493,654 | 397,186 | 351,097 |
Uruguay | |||
Net sales revenue by country | |||
Net sales revenue | 122,251 | 122,783 | 327,533 |
Japan | |||
Net sales revenue by country | |||
Net sales revenue | 126,956 | 1,631,564 | 904,903 |
Poland | |||
Net sales revenue by country | |||
Net sales revenue | 231,716 | 252,508 | 199,115 |
Paraguay | |||
Net sales revenue by country | |||
Net sales revenue | 174,783 | 185,432 | 170,834 |
France | |||
Net sales revenue by country | |||
Net sales revenue | 166,314 | 236,727 | 268,239 |
Bolivia | |||
Net sales revenue by country | |||
Net sales revenue | 163,862 | 211,382 | 194,865 |
Canada | |||
Net sales revenue by country | |||
Net sales revenue | 235,612 | 242,492 | 184,752 |
South Korea | |||
Net sales revenue by country | |||
Net sales revenue | 339,430 | 254,512 | 74,567 |
Other | |||
Net sales revenue by country | |||
Net sales revenue | R$ 3304781 | R$ 2923146 | R$ 1180399 |
Net sales revenues (Details 3)
Net sales revenues (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales revenue by product | |||
Net sales revenue | R$ 49260594 | R$ 47663988 | R$ 46879989 |
PE/PP | |||
Net sales revenue by product | |||
Net sales revenue | 33,105,714 | 30,790,364 | 28,226,087 |
Ethylene, Propylene | |||
Net sales revenue by product | |||
Net sales revenue | 3,351,805 | 2,906,796 | 2,999,090 |
Naphtha, condensate and crude oil | |||
Net sales revenue by product | |||
Net sales revenue | 135,165 | 2,582,257 | 4,587,944 |
Benzene, toluene and xylene | |||
Net sales revenue by product | |||
Net sales revenue | 2,683,406 | 2,411,031 | 2,538,993 |
PVC/Caustic Soda/EDC | |||
Net sales revenue by product | |||
Net sales revenue | 3,066,879 | 3,016,390 | 2,780,075 |
ETBE/Gasoline | |||
Net sales revenue by product | |||
Net sales revenue | 2,433,360 | 2,058,952 | 1,722,391 |
Butadiene | |||
Net sales revenue by product | |||
Net sales revenue | 1,819,387 | 1,315,892 | 1,000,376 |
Cumene | |||
Net sales revenue by product | |||
Net sales revenue | 578,482 | 501,958 | 583,608 |
Solvents | |||
Net sales revenue by product | |||
Net sales revenue | 401,455 | 379,745 | 431,264 |
Other | |||
Net sales revenue by product | |||
Net sales revenue | R$ 1684941 | R$ 1700603 | R$ 2010161 |
Net sales revenues (Details Tex
Net sales revenues (Details Text) | Dec. 31, 2017 | Dec. 31, 2016 |
Net Sales Revenues Details Text [Abstract] | ||
Revenue arising from transactions with only client | 10.00% | 10.00% |
Significant revenue from a single client amounts | 2.90% |
Tax incentives (Details Text)
Tax incentives (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Incentives Details Text [Abstract] | |||
Obtained grant in lawsuits claiming the reduction of IR on income | 75.00% | ||
Granting of the tax incentives issued | R$ 71745 | ||
Offsetting of sales tax | R$ 95704 | R$ 78824 |
Other income (expenses), net (D
Other income (expenses), net (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other income (expenses), net [Abstract] | |||
Participation of members in profits and results | R$ 399828 | R$ 361796 | R$ 356437 |
Expenses from fixed assets | (205,929) | (53,774) | (174,488) |
Allowance for judicial and labor claims | (119,919) | (169,973) | (105,644) |
Capital gain - sale of Quantiq | 276,816 | ||
Recovery of environmental damages | (102,466) | (182,600) | (65,791) |
Leniency agreement | (375,476) | (2,860,402) | |
Other | 71,922 | (277,409) | (249,940) |
Total | R$ 854880 | R$ 3905954 | R$ 952300 |
Other income (expenses), net _2
Other income (expenses), net (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income Expenses Net Details Text [Abstract] | ||
Costs of goods sold | R$ 163055 | R$ 165522 |
Selling and distribution expenses | 7,155 | 5,848 |
General and administrative expenses | R$ 191586 | R$ 185067 |
Financial results (Details 1)
Financial results (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial Income [Abstract] | |||
Interest income | R$ 512051 | R$ 646727 | R$ 528788 |
Other | 91,579 | 43,395 | 56,145 |
Financial income | 603,630 | 690,122 | 584,933 |
Financial expenses | |||
Interest expenses | (2,219,503) | (2,447,481) | (2,094,280) |
Monetary variations on fiscal debts | (191,101) | (249,578) | (152,409) |
Discounts granted | (137,389) | (108,606) | (130,564) |
Loans transaction costs - amortization | (64,771) | (56,020) | (64,406) |
Adjustment to present value - appropriation | (284,992) | (507,744) | (517,739) |
Other | (849,461) | (201,533) | (204,004) |
Financial expenses | (3,747,217) | (3,570,962) | (3,163,402) |
Exchange rate variations, net | |||
On financial assets | 216,381 | (1,139,676) | 1,102,744 |
On financial liabilities | (1,015,143) | (2,070,741) | (999,834) |
Exchange rate variations, net | (798,762) | (3,210,417) | 102,910 |
Total | R$ 3942349 | R$ 6091257 | R$ 2475559 |
Financial results (Details 2)
Financial results (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income [Abstract] | |||
Held for sale | R$ 209327 | R$ 331811 | R$ 124767 |
Loans and receivables | 270,909 | 273,355 | 261,034 |
Held-to-maturity | 50,526 | ||
Gross total | 480,236 | 605,166 | 436,327 |
Other assets not classifiable | 31,815 | 41,561 | 92,461 |
Total | R$ 512051 | R$ 646727 | R$ 528788 |
Expenses by nature and functi_3
Expenses by nature and function (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classification By Nature [Abstract] | |||
Raw materials other inputs | R$ 29364996 | R$ 28197875 | R$ 30600855 |
Personnel expenses | (2,173,640) | (2,576,107) | (2,466,890) |
Outsourced services | (2,120,001) | (2,135,412) | (1,580,827) |
Depreciation, amortization and depletion | (2,928,855) | (2,677,672) | (2,120,157) |
Freights | (2,058,574) | (1,918,973) | (1,856,194) |
Costs of idle industrial plants | (67,593) | (60,944) | (67,423) |
Other income (expenses), net | (1,379,965) | (4,175,836) | (1,300,142) |
Total | (40,093,624) | (41,742,819) | (39,992,488) |
Classification by function: | |||
Cost of products sold | (36,177,408) | (34,985,569) | (36,697,842) |
Selling and distribution | (1,459,608) | (1,403,673) | (1,077,308) |
General and administrative | (1,434,272) | (1,285,613) | (1,095,403) |
Research and development | (167,456) | (162,010) | (169,635) |
Other income (expenses), net | (854,880) | (3,905,954) | (952,300) |
Total | R$ 40093624 | R$ 41742819 | R$ 39992488 |
Segment information (Details 1)
Segment information (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Results by segment | |||
Net sales revenue | R$ 49260594 | R$ 47663988 | R$ 46879989 |
Cost of products sold | (36,177,408) | (34,985,569) | (36,697,842) |
Gross profit | 13,083,186 | 12,678,419 | 10,182,147 |
Selling, general and distribuition expenses | (3,061,336) | (2,851,296) | (2,342,346) |
Results from equity investments | 39,956 | 30,078 | 2,219 |
Other income (expenses), net | (854,880) | (3,905,954) | (952,300) |
Operating profit (loss) | 9,206,926 | 5,951,247 | 6,889,720 |
Reporting segments | |||
Results by segment | |||
Net sales revenue | 61,351,881 | 58,869,357 | 55,747,932 |
Cost of products sold | (48,000,599) | (46,277,063) | (45,307,862) |
Gross profit | 13,351,282 | 12,592,294 | 10,440,070 |
Selling, general and distribuition expenses | (3,123,950) | (2,931,124) | (2,551,679) |
Other income (expenses), net | (531,532) | (756,703) | (453,975) |
Operating profit (loss) | 9,695,800 | 8,904,473 | 7,434,414 |
Reporting segments | Chemicals | |||
Results by segment | |||
Net sales revenue | 25,179,288 | 25,062,602 | 24,269,768 |
Cost of products sold | (20,478,914) | (20,248,175) | (20,086,768) |
Gross profit | 4,700,374 | 4,814,427 | 4,183,000 |
Selling, general and distribuition expenses | (773,396) | (680,083) | (644,598) |
Other income (expenses), net | (197,275) | (409,920) | (158,797) |
Operating profit (loss) | 3,729,703 | 3,724,425 | 3,379,604 |
Reporting segments | Polyolefins | |||
Results by segment | |||
Net sales revenue | 19,650,398 | 20,307,367 | 19,986,174 |
Cost of products sold | (15,432,179) | (15,980,935) | (15,420,138) |
Gross profit | 4,218,219 | 4,326,432 | 4,566,036 |
Selling, general and distribuition expenses | (1,321,575) | (1,284,665) | (1,206,374) |
Other income (expenses), net | (177,518) | (199,098) | (189,988) |
Operating profit (loss) | 2,719,126 | 2,842,670 | 3,169,674 |
Reporting segments | Vinyls | |||
Results by segment | |||
Net sales revenue | 3,066,879 | 3,016,390 | 2,780,075 |
Cost of products sold | (2,572,774) | (2,815,184) | (2,393,660) |
Gross profit | 494,105 | 201,206 | 386,415 |
Selling, general and distribuition expenses | (162,989) | (236,771) | (220,139) |
Other income (expenses), net | (163,374) | (71,880) | (53,918) |
Operating profit (loss) | 167,742 | (107,444) | 112,358 |
Reporting segments | USA and Europe | |||
Results by segment | |||
Net sales revenue | 9,854,496 | 8,896,071 | 8,239,913 |
Cost of products sold | (7,419,261) | (6,080,722) | (6,920,464) |
Gross profit | 2,435,235 | 2,815,349 | 1,319,449 |
Selling, general and distribuition expenses | (582,672) | (497,810) | (392,319) |
Other income (expenses), net | (21,279) | (71,000) | (55,089) |
Operating profit (loss) | 1,831,284 | 2,246,540 | 872,040 |
Reporting segments | Mexico | |||
Results by segment | |||
Net sales revenue | 3,600,820 | 1,586,927 | 472,002 |
Cost of products sold | (2,097,471) | (1,152,047) | (486,832) |
Gross profit | 1,503,349 | 434,880 | (14,830) |
Selling, general and distribuition expenses | (283,318) | (231,795) | (88,249) |
Other income (expenses), net | 27,914 | (4,805) | 3,817 |
Operating profit (loss) | 1,247,945 | 198,282 | (99,262) |
Other segments | |||
Results by segment | |||
Net sales revenue | 83,720 | 12,202 | 159,510 |
Cost of products sold | (65,743) | (14,760) | (150,213) |
Gross profit | 17,977 | (2,558) | 9,297 |
Selling, general and distribuition expenses | (13,391) | (1,876) | (6,467) |
Other income (expenses), net | (2,430) | (20,864) | (73,879) |
Operating profit (loss) | 2,156 | (25,298) | (71,049) |
Corporate unit | |||
Results by segment | |||
Selling, general and distribuition expenses | (61,384) | (33,582) | 103,604 |
Results from equity investments | 39,956 | 30,078 | 2,219 |
Other income (expenses), net | (320,918) | (3,128,387) | (357,165) |
Operating profit (loss) | (342,346) | (3,131,893) | (251,340) |
Before eliminations and reclassifications | |||
Results by segment | |||
Net sales revenue | 61,435,601 | 58,881,559 | 55,907,442 |
Cost of products sold | (48,066,342) | (46,291,823) | (45,458,075) |
Gross profit | 13,369,259 | 12,589,736 | 10,449,367 |
Selling, general and distribuition expenses | (3,198,725) | (2,966,582) | (2,454,542) |
Results from equity investments | 39,956 | 30,078 | 2,219 |
Other income (expenses), net | (854,880) | (3,905,954) | (885,019) |
Operating profit (loss) | 9,355,610 | 5,747,282 | 7,112,025 |
Eliminations and reclassifications | |||
Results by segment | |||
Net sales revenue | (12,175,007) | (11,217,571) | (9,027,453) |
Cost of products sold | 11,888,934 | 11,306,254 | 8,760,233 |
Gross profit | (286,073) | 88,683 | (267,220) |
Selling, general and distribuition expenses | 137,389 | 115,286 | 112,196 |
Other income (expenses), net | (67,281) | ||
Operating profit (loss) | R$ 148684 | R$ 203965 | R$ 222305 |
Segment information (Details 2)
Segment information (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Long-lived assets by segment | ||
Total | R$ 32489107 | R$ 32145797 |
Reporting segments | ||
Long-lived assets by segment | ||
Total | 31,962,748 | 31,824,563 |
Reporting segments | Chemicals | ||
Long-lived assets by segment | ||
Total | 11,136,125 | 11,417,669 |
Reporting segments | Polyolefins | ||
Long-lived assets by segment | ||
Total | 5,072,162 | 5,162,075 |
Reporting segments | Vinyls | ||
Long-lived assets by segment | ||
Total | 2,433,882 | 2,621,376 |
Reporting segments | USA and Europe | ||
Long-lived assets by segment | ||
Total | 2,587,302 | 2,015,492 |
Reporting segments | Mexico | ||
Long-lived assets by segment | ||
Total | 10,733,277 | 10,607,951 |
Other segments | ||
Long-lived assets by segment | ||
Total | R$ 526359 | R$ 321234 |
Segment information (Details Te
Segment information (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Information Details Text [Abstract] | ||
Sale of subsidiary, capital gain | R$ 276816 | |
Leniency agreement | R$ 375476 | R$ 2860402 |
Insurance coverage (Details 1)
Insurance coverage (Details 1) R$ in Millions | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
USD | |
Insurance coverage | |
Amount insured | R$ 34511 |
Units in Brazil | |
Insurance coverage | |
Maturity | Apr. 10, 2020 |
Units in Brazil | USD | |
Insurance coverage | |
Maximum indemnity limit | R$ 3375 |
Amount insured | R$ 26406 |
Units in United States and Germany | |
Insurance coverage | |
Maturity | Apr. 10, 2020 |
Units in United States and Germany | USD | |
Insurance coverage | |
Maximum indemnity limit | R$ 500 |
Amount insured | R$ 2037 |
Units in Mexico | |
Insurance coverage | |
Maturity | Apr. 10, 2020 |
Units in Mexico | USD | |
Insurance coverage | |
Maximum indemnity limit | R$ 2936 |
Amount insured | R$ 6068 |
Information related to guaran_2
Information related to guaranteed securities issued by subsidiaries (Details Text) | 12 Months Ended |
Dec. 31, 2017 | |
Information Related To Guaranteed Securities Issued By Subsidiaries Details Text [Abstract] | |
Debit securities issued | 100-percent |
Subsequent events (Details 1)
Subsequent events (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 3027551 |
Foreign currency | |
Foreign currency and local currency | |
Braskem prepaid borrowings | 2,304,420 |
Foreign currency | Bonds | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 825720 |
Annual financial charges (%) | 7.38 |
Foreign currency | Export credit notes | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 612810 |
Annual financial charges (%) | US dollar exchange variation + interest between 7.30 and 7.87 |
Foreign currency | Working capital | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 865890 |
Annual financial charges (%) | US dollar exchange variation + 1.88% above Libor |
Local currency | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 723131 |
Local currency | BNDES | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 29330 |
Annual financial charges (%) | TJLP + interest between 0.00 and 2.62 |
Local currency | BNDES | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 21065 |
Annual financial charges (%) | SELIC + 2.32 |
Local currency | BNDES | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 32839 |
Annual financial charges (%) | Interest between 3.50 and 4.00 |
Local currency | BNB/FINEP | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 138230 |
Annual financial charges (%) | 5.84 |
Local currency | Export credit notes | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 435000 |
Annual financial charges (%) | 105.00% of CDI |
Local currency | Export credit notes | |
Foreign currency and local currency | |
Braskem prepaid borrowings | R$ 66667 |
Annual financial charges (%) | 108.00% of CDI |
Subsequent events (Details Text
Subsequent events (Details Text) - BRL (R$) shares in Thousands, R$ in Thousands | May 11, 2018 | Apr. 30, 2018 | Mar. 21, 2018 | Dec. 31, 2017 |
Subsequent events (Details Text) | ||||
Shares outstanding | 797,257,604 | |||
Non-adjusting Events After Reporting Period | ||||
Subsequent events (Details Text) | ||||
Payment of additional dividends | R$ 1500000 | |||
Non-adjusting Events After Reporting Period | USD | ||||
Subsequent events (Details Text) | ||||
International revolving credit facility | R$ 1000000 | |||
Non-adjusting Events After Reporting Period | Long-term share-based incentive plan (“ILP Plan”) | ||||
Subsequent events (Details Text) | ||||
Shares outstanding | 573,345 |