Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | BRASKEM SA |
Entity Central Index Key | 0001071438 |
Document Type | 20-F |
Entity Incorporation, State or Country Code | D5 |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Title of 12(b) Security | Preferred Shares, Class A, without par value per share, each represented by American Depositary Shares |
Trading Symbol | BAK |
Entity a Well-known Seasoned Issuer | Yes |
Entity a Voluntary Filer | No |
Entity Reporting Status Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 451,668,652 |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
Statement of financial position
Statement of financial position - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | R$ 6803880 | R$ 5547637 |
Financial investments | 1,687,504 | 2,357,613 |
Trade accounts receivable | 2,285,750 | 3,075,218 |
Inventories | 7,625,084 | 8,486,577 |
Taxes recoverable | 1,238,011 | 423,188 |
Income tax and social contribution | 439,933 | 423,900 |
Dividends and interest on capital | 3,074 | 890 |
Prepaid expenses | 115,096 | 239,500 |
Derivatives | 4,712 | 27,714 |
Judicial deposits | 2,571,683 | |
Other receivables | 614,827 | 451,578 |
Current assets | 23,389,554 | 21,033,815 |
Non-current assets | ||
Financial investments | 9,708 | 9,998 |
Trade accounts receivable | 20,901 | 17,785 |
Inventories | 16,325 | 31,394 |
Taxes recoverable | 2,257,718 | 1,332,791 |
Income tax and social contribution | 239,847 | 241,788 |
Deferred income tax and social contribution | 2,662,596 | 1,104,158 |
Judicial deposits | 1,508,880 | 169,536 |
Insurance claims | 83,167 | 63,054 |
Derivatives | 17,877 | 46,664 |
Other receivables | 175,698 | 189,724 |
Investments | 63,843 | 65,954 |
Property, plant and equipment | 32,315,181 | 31,759,890 |
Intangible assets | 2,762,088 | 2,740,982 |
Right of use of assets | 2,605,654 | |
Non-current assets | 44,739,483 | 37,773,718 |
Total assets | 68,129,037 | 58,807,533 |
Current liabilities | ||
Trade payables | 9,116,989 | 8,341,252 |
Borrowings | 774,924 | 737,436 |
Braskem Idesa borrowings | 744,408 | 10,504,592 |
Debenture | 46,666 | 27,732 |
Derivatives | 49,251 | 70,305 |
Payroll and related charges | 623,723 | 645,396 |
Taxes payable | 322,886 | 432,005 |
Income tax and social contribution | 34,856 | 69,268 |
Dividends | 6,502 | 672,395 |
Advances from customers | 355,764 | 153,264 |
Leniency agreement | 362,719 | 288,123 |
Sundry provisions | 203,134 | 191,536 |
Other payables | 930,638 | 623,007 |
Provision - geological event in Alagoas | 1,450,476 | |
Other financial liabilities | 516,933 | |
Lease | 676,291 | 9,767 |
Current liabilities | 16,216,160 | 22,766,078 |
Non-current liabilities | ||
Trade payables | 3,837 | 37,252 |
Borrowings | 28,242,052 | 24,160,720 |
Braskem Idesa borrowings | 9,237,318 | |
Debenture | 227,901 | 266,777 |
Derivatives | 169,513 | 161,694 |
Taxes payable | 129,353 | 85,904 |
Loan to non-controlling shareholders of Braskem Idesa | 2,395,887 | 2,183,830 |
Deferred income tax and social contribution | 273,036 | 381,582 |
Post-employment benefits | 389,075 | 206,373 |
Contingencies | 1,151,524 | 965,317 |
Leniency agreement | 1,379,549 | 1,554,395 |
Sundry provisions | 302,072 | 233,006 |
Provision - geological event in Alagoas | 1,932,591 | |
Other payables | 133,858 | 59,145 |
Lease | 2,000,605 | 90,790 |
Non-current liabilities | 47,968,171 | 30,386,785 |
Shareholders' equity | ||
Capital | 8,043,222 | 8,043,222 |
Capital reserve | 232,472 | 232,430 |
Revenue reserves | 1,905,255 | 4,673,220 |
Additional paid in capital | (488,388) | (488,388) |
Other comprehensive income | (4,757,539) | (5,623,020) |
Treasury shares | (49,724) | (49,819) |
Accumulated losses | (256,575) | |
Total attributable to the Company's shareholders | 4,885,298 | 6,531,070 |
Non-controlling interest in subsidiaries | (940,592) | (876,400) |
Shareholders' equity | 3,944,706 | 5,654,670 |
Total liabilities and shareholders' equity | R$ 68129037 | R$ 58807533 |
Statement of profit or loss
Statement of profit or loss - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
IncomeStatementLineItems [Line Items] | |||
Net revenue | R$ 52323525 | R$ 57999866 | R$ 49260594 |
Cost of products sold | (45,879,118) | (46,576,657) | (36,177,408) |
Gross profit | 6,444,407 | 11,423,209 | 13,083,186 |
Income (expenses) | |||
Selling and distribution | (1,783,455) | (1,689,179) | (1,446,153) |
(Loss) reversals for impairment of trade accounts receivable | (7,069) | 87,008 | (13,455) |
General and administrative | (2,224,180) | (1,793,185) | (1,434,272) |
Research and development | (247,730) | (219,256) | (167,456) |
Results from equity investments | 10,218 | (888) | 39,956 |
Other income | 2,408,434 | 1,027,222 | 314,934 |
Other expenses | (4,446,942) | (554,713) | (1,169,814) |
Profit before net financial income (expense) and taxes | 153,683 | 8,280,218 | 9,206,926 |
Financial results | |||
Financial expenses | (3,882,785) | (3,007,551) | (3,747,217) |
Financial income | 850,554 | 589,052 | 603,630 |
Exchange rate variations, net | (1,724,520) | (2,256,983) | (798,762) |
Finance income (cost) | (4,756,751) | (4,675,482) | (3,942,349) |
(Loss) profit before income tax and social contribution | (4,603,068) | 3,604,736 | 5,264,577 |
Current and deferred income tax and social contribution | 1,962,670 | (736,551) | (1,357,682) |
(Loss) profit for the year of continued operations | (2,640,398) | 2,868,185 | 3,906,895 |
Discontinued operations results | |||
Profit from discontinued operations | 13,499 | ||
Current and deferred income tax and social contribution | (4,623) | ||
Profit from discontinued operations | 8,876 | ||
(Loss) profit for the year | (2,640,398) | 2,868,185 | 3,915,771 |
Attributable to: | |||
Company's shareholders | (2,540,995) | 2,827,650 | 3,865,440 |
Non-controlling interest in subsidiaries | (99,403) | 40,535 | 50,331 |
(Loss) profit for the year | R$ 2640398 | R$ 2868185 | R$ 3915771 |
(Loss) earnings per share - basic and diluted - R$ | |||
Common | R$ 3.1922 | R$ 3.5543 | R$ 4.8479 |
Class A Preferred Shares [Member] | |||
(Loss) earnings per share - basic and diluted - R$ | |||
Common | (3.1922) | 3.5543 | 4.8479 |
Class B Preferred Shares [Member] | |||
(Loss) earnings per share - basic and diluted - R$ | |||
Common | R$ 3.1922 | R$ 0.5910 | R$ 0.6069 |
Statement of comprehensive inco
Statement of comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
(Loss) profit for the year of continued operations | R$ 2640398 | R$ 2868185 | R$ 3915771 |
Items that will be reclassified subsequently to profit or loss | |||
Fair value of cash flow hedge | 55,274 | (151,718) | 605,204 |
Income tax and social contribution - cash flow hedge | (19,805) | 54,481 | (203,186) |
Fair value of cash flow hedge from jointly-controlled | (978) | (2,329) | 3,534 |
Cash flow hedges,net of tax | 34,491 | (99,566) | 405,552 |
Exchange variation of foreign sales hedge | (856,068) | (3,145,857) | (397,045) |
Sales Hedge - transfer to profit or loss | 1,385,121 | 1,022,782 | 1,022,830 |
Income tax and social contribution on exchange variation | (179,878) | 721,845 | (212,767) |
Exchange variation of foreign sales hedge - Braskem Idesa | 464,806 | 16,681 | 472,717 |
Sales Hedge - transfer to profit or loss - Braskem Idesa | 267,146 | 236,570 | 163,696 |
Income tax on exchange variation - Braskem Idesa | (219,586) | (75,975) | (190,924) |
Sales hedges,net of tax | 861,541 | (1,223,954) | 858,507 |
Foreign subsidiaries currency translation adjustment | 136,722 | 801,223 | (602) |
Total | 1,032,754 | (522,297) | 1,263,457 |
Items that will not be reclassified to profit or loss | |||
Defined benefit plan actuarial loss, net of taxes | (24,597) | (1,289) | (5,750) |
Post-employment plans - Health plan, net of taxes | (85,031) | (280) | (2,904) |
Long term incentive plan, net of taxes | 13,921 | 6,406 | |
Loss on investments | (84) | (65) | |
Total | (95,791) | 4,772 | (8,654) |
Total comprehensive income for the year | (1,703,435) | 2,350,660 | 5,170,574 |
Attributable to: | |||
Company's shareholders | (1,644,368) | 2,398,250 | 5,049,617 |
Non-controlling interest in subsidiaries | (59,067) | (47,590) | 120,957 |
Total comprehensive income for the year | R$ 1703435 | R$ 2350660 | R$ 5170574 |
Statement of changes in equity
Statement of changes in equity - BRL (R$) R$ in Thousands | Capital [Member] | Capital Reserve [Member] | Legal Reserve [Member] | Tax Incentive [Member] | Retention Of Profits [Member] | Additional Dividends Proposed [Member] | Additional Paid In Capital [Member] | Other Comprehensive Income [Member] | Treasury Shares [Member] | Retained Earnings [Member] | Braskem Shareholders' Interest [Member] | Non-controlling Interests in Subsidiaries [Member] | Total |
Beginning balance at Dec. 31, 2016 | R$ 8043222 | R$ 232430 | R$ 229992 | R$ 604624 | R$ 6321859 | R$ 49819 | R$ 2738590 | R$ 1017880 | R$ 1720710 | ||||
Comprehensive income for the year: | |||||||||||||
(Loss) profit for the year | R$ 3865440 | 3,865,440 | 50,331 | 3,915,771 | |||||||||
Exchange variation of foreign sales hedge, net of taxes | 747,135 | 747,135 | 111,372 | 858,507 | |||||||||
Fair value of cash flow hedge, net of taxes | 394,251 | 394,251 | 11,301 | 405,552 | |||||||||
Foreign subsidiaries currency translation adjustment | 51,445 | 51,445 | (52,047) | (602) | |||||||||
Comprehensive income (loss) for the year | 1,192,831 | 3,865,440 | 5,058,271 | 120,957 | 5,179,228 | ||||||||
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 (loss) 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) | ||||||||||
Equity valuation adjustments | (36,464) | 27,810 | (8,654) | (8,654) | |||||||||
Contributions and distributions to shareholders: | |||||||||||||
Lapsed 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) | |||||||||||
Additional dividends proposed | R$ 1500000 | (1,500,000) | |||||||||||
Retained earnings | 1,335,387 | (1,335,387) | |||||||||||
Goodwill on the acquisition of a subsidiary under common control | R$ 488388 | (488,388) | (488,388) | ||||||||||
Non-controlling interest in subsidiaries | 69,422 | 69,422 | |||||||||||
Contributions and distributions to shareholders | 204,150 | 71,745 | 1,335,387 | 1,500,000 | (488,388) | (4,110,800) | (1,487,906) | 69,422 | (1,418,484) | ||||
Ending balance at Dec. 31, 2017 | 8,043,222 | 232,430 | 434,142 | 71,745 | 1,940,011 | 1,500,000 | (488,388) | (5,165,492) | (49,819) | (217,550) | 6,300,301 | (827,501) | 5,472,800 |
Comprehensive income for the year: | |||||||||||||
(Loss) profit for the year | 2,827,650 | 2,827,650 | 40,535 | 2,868,185 | |||||||||
Exchange variation of foreign sales hedge, net of taxes | (1,268,273) | (1,268,273) | 44,319 | (1,223,954) | |||||||||
Fair value of cash flow hedge, net of taxes | (112,241) | (112,241) | 12,675 | (99,566) | |||||||||
Foreign subsidiaries currency translation adjustment | 946,342 | 946,342 | (145,119) | 801,223 | |||||||||
Comprehensive income (loss) for the year | (434,172) | 2,827,650 | 2,393,478 | (47,590) | 2,345,888 | ||||||||
Equity valuation adjustments: | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (26,717) | 26,717 | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (962) | 962 | |||||||||||
Actuarial gains (loss) post-employment benefits of subsidiaries , net of taxes | (1,289) | (1,289) | (1,289) | ||||||||||
Post-employment benefits - health plan, net of taxes | (280) | (280) | (280) | ||||||||||
Long term incentive plan, net of taxes | 6,406 | 6,406 | 133 | 6,539 | |||||||||
Fair value adjustments of trade accounts receivable | (449) | (449) | (449) | ||||||||||
Equity valuation adjustments | (23,291) | 27,679 | 4,388 | 133 | 4,521 | ||||||||
Contributions and distributions to shareholders: | |||||||||||||
Prescribed dividends | 460 | 460 | 460 | ||||||||||
Additional dividends approved in the board meeting | (1,500,000) | (73) | (1,500,073) | (1,396) | (1,501,469) | ||||||||
Reversal of fiscal incentive | (130) | 130 | |||||||||||
Tax incentive reserve | 81,863 | (81,863) | |||||||||||
Legal reserve | 143,334 | (143,334) | |||||||||||
Mandatory minimum dividends | (667,419) | (667,419) | (667,419) | ||||||||||
Additional dividends proposed | 2,002,255 | (2,002,255) | |||||||||||
Loss on investments | (65) | (65) | 65 | ||||||||||
Sale of investments | (111) | (111) | |||||||||||
Contributions and distributions to shareholders | 143,334 | 81,733 | 502,255 | (65) | (2,894,354) | (2,167,097) | (1,442) | (2,168,539) | |||||
Ending balance at Dec. 31, 2018 | 8,043,222 | 232,430 | 577,476 | 153,478 | 1,940,011 | 2,002,255 | (488,388) | (5,623,020) | (49,819) | (256,575) | 6,531,070 | (876,400) | 5,654,670 |
Comprehensive income for the year: | |||||||||||||
(Loss) profit for the year | (2,540,995) | (2,540,995) | (99,403) | (2,640,398) | |||||||||
Exchange variation of foreign sales hedge, net of taxes | 733,449 | 733,449 | 128,092 | 861,541 | |||||||||
Fair value of cash flow hedge, net of taxes | 38,919 | 38,919 | (4,428) | 34,491 | |||||||||
Foreign subsidiaries currency translation adjustment | 220,228 | 220,228 | (83,506) | 136,722 | |||||||||
Comprehensive income (loss) for the year | 992,596 | (2,540,995) | (1,548,399) | (59,245) | (1,607,644) | ||||||||
Equity valuation adjustments: | |||||||||||||
Realization of additional property, plant and equipment price-level restatement, net of taxes | (26,717) | 26,717 | |||||||||||
Realization of deemed cost of jointly-controlled investment, net of taxes | (883) | 883 | |||||||||||
Actuarial gains (loss) post-employment benefits of subsidiaries , net of taxes | (109,492) | (109,492) | (136) | (24,597) | |||||||||
Post-employment benefits - health plan, net of taxes | (85,031) | ||||||||||||
Long term incentive plan, net of taxes | 13,573 | 13,573 | 348 | 13,921 | |||||||||
Fair value adjustments of trade accounts receivable | 15 | 15 | 15 | ||||||||||
Exchange variation in hyperinflationary economy, net of taxes | (3,561) | (3,561) | (3,561) | ||||||||||
Equity valuation adjustments | (127,065) | 27,600 | (99,465) | 212 | (99,253) | ||||||||
Contributions and distributions to shareholders: | |||||||||||||
Absorption of losses | (2,767,965) | 2,767,965 | |||||||||||
Prescribed dividends | 2,005 | 2,005 | 2,005 | ||||||||||
Incentive long term plan payments with treasury shares | 95 | 95 | 95 | ||||||||||
Retention of profits - non-approval of additonal dividends | 2,002,255 | (2,002,255) | |||||||||||
Additional dividends of subsidiary | (5,125) | (5,125) | |||||||||||
Loss on interest in subsidiary | (50) | (50) | (34) | (84) | |||||||||
Gain on transfer of shares in custody long term incentive plan | 42 | 42 | 42 | ||||||||||
Contributions and distributions to shareholders | 42 | (765,710) | R$ 2002255 | (50) | 95 | R$ 2769970 | 2,092 | (5,159) | (3,067) | ||||
Ending balance at Dec. 31, 2019 | R$ 8043222 | R$ 232472 | R$ 577476 | R$ 153478 | R$ 1174301 | R$ 488388 | R$ 4757539 | R$ 49724 | R$ 4885298 | R$ 940592 | R$ 3944706 |
Statement of cash flows
Statement of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | |||
(Loss) profit before income tax and social contribution | R$ 4603068 | R$ 3604736 | R$ 5264577 |
Adjustments for reconciliation of profit | |||
Depreciation, amortization and depletion | 3,632,265 | 2,990,577 | 2,928,855 |
Results from equity investments | (10,218) | 888 | (39,956) |
Interest foreign exchange gain/losses | 4,145,110 | 6,013,944 | 3,697,714 |
Gain from divestment in subsidiary | (276,816) | ||
Reversal of provisions | 320,439 | 23,725 | (223,340) |
Provisions - Leniency agreement | 375,476 | ||
Provision - geological event in Alagoas | 3,383,067 | ||
PIS and COFINS credits - exclusion of ICMS from the calculation basis | (1,904,206) | (519,830) | |
Loss (reversals) for impairment of financial assets | 7,069 | (87,008) | 13,455 |
Provision for losses and write-offs of long-lived assets | 225,204 | 72,470 | 213,184 |
Adjustments for reconciliation of profit | 5,195,662 | 12,099,502 | 11,953,149 |
Changes in operating working capital | |||
Judicial deposits - other financial assets | (3,680,460) | ||
Financial investments | 797,445 | 98,349 | (953,228) |
Trade accounts receivable | 895,046 | 223,418 | (1,611,847) |
Inventories | 867,817 | (1,537,290) | (1,351,028) |
Taxes recoverable | 1,195,427 | 1,022,242 | 469,293 |
Prepaid expenses | 202,732 | (105,163) | (30,521) |
Other receivables | (273,665) | (248,988) | 25,802 |
Trade payables | 282,445 | 1,343,375 | (1,642,649) |
Taxes payable | (569,793) | (977,248) | (215,514) |
Advances from customers | 197,965 | (199,958) | (13,512) |
Leniency agreement | (341,605) | (330,006) | (1,343,803) |
Sundry provisions | (215,548) | (116,458) | 194,596 |
Other payables | 362,203 | 833,227 | 55,541 |
Cash generated (used) from operations | 4,915,671 | 12,105,002 | 5,536,279 |
Interest paid | (2,238,445) | (1,916,801) | (2,154,053) |
Income tax and social contribution paid | (411,951) | (937,831) | (920,606) |
Net cash generated by operating activities | 2,265,275 | 9,250,370 | 2,461,620 |
Proceeds from the sale of fixed and intangible assets | 12,590 | 95,133 | 39,660 |
Proceeds from the sale of investments | 81,000 | 450,000 | |
Funds received in the investments' capital reduction | 2,254 | ||
Dividends received | 3,513 | 41,791 | |
Additions to investments in subsidiaries | (608,181) | ||
Acquisitions to property, plant and equipment and intangible assets | (2,682,522) | (2,706,328) | (2,273,197) |
Premium in the dollar put option | (2,167) | (14,683) | |
Net cash used in investing activities | (2,666,419) | (2,488,317) | (2,406,401) |
Short-term and Long-term debt | |||
Acquired | 20,586,103 | 4,301,626 | 8,492,341 |
Payments | (17,425,409) | (6,592,197) | (8,779,091) |
Derivative transactions | |||
Payments | (810,279) | ||
Braskem Idesa borrowings | |||
Acquired | 3,497,622 | 187,959 | |
Payments | (4,398,453) | (812,929) | (1,080,502) |
Lease | (454,190) | ||
Dividends paid | (668,904) | (1,499,900) | (998,893) |
Other financial liabilities | 499,999 | ||
Net cash generated (used) in financing activities | 1,636,768 | (4,603,400) | (2,988,465) |
Exchange variation on cash of foreign subsidiaries | 20,619 | (386,109) | 6,475 |
Increase (decrease) in cash and cash equivalents | 1,256,243 | 1,772,544 | (2,926,771) |
Cash and cash equivalents at the beginning of the year | 5,547,637 | 3,775,093 | 6,701,864 |
Cash and cash equivalents at the end of the year | 6,803,880 | 5,547,637 | 3,775,093 |
Increase (decrease) in cash and cash equivalents | R$ 1256243 | R$ 1772544 | R$ 2926771 |
1 Operations
1 Operations | 12 Months Ended |
Dec. 31, 2019 | |
Operations | |
Operations | 1 Operations Braskem S.A. is a public corporation headquartered in Camaçari, Bahia (“BA”), which, jointly with its subsidiaries (hereinafter referred to as “Braskem” or “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. The Company has 36 industrial plants in Brazil, the United States, Germany and Mexico. The units produce thermoplastic resins, namely polyethylene (“PE”) and polypropylene (“PP”), polyvinyl chloride (“PVC”), as well as basic petrochemicals. Braskem also is engaged in the manufacture, sale, 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 equity method investees or associates. |
2 Accounting policies
2 Accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
Accounting policies | 2 Accounting policies Except for the changes that occurred with the adoption of the new standards (Note 2.5), the accounting practices were applied consistently in the preparation of these consolidated financial statements and are described in the respective notes. 2.1 Basis of preparation and presentation of the consolidated financial statements The consolidated financial statements have been prepared under the historical cost convention and were adjusted, when required, to reflect the fair value of assets and liabilities. The consolidated financial statements presented in this 20-F are not equivalent to the statutory financial statements of the Company as issued under the requirements of the Brazilian jurisdiction. 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 and non adjusting events after the reporting period, under IAS 10 – Events after the Reporting Period. The statutory financial statements (parent company and consolidated) for the year ended December 31, 2019 were authorized for issue on April 3, 2020, in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (“IFRS”), filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – “CVM”) on April 3, 2020. 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 financial statements are disclosed in Note 3. The issue of these consolidated financial statements was authorized by the Executive Board on June 12, 2020. 2.1.1 Consolidated financial statements The consolidated financial statements were prepared and presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). (a) Consolidation The consolidated financial statements comprises the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2019 2018 2017 Direct and Indirect subsidiaries BM Insurance Company Limited ("BM Insurance") (i) Bermuda 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 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 International GmbH ("Braskem Austria") (ii) Austria 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 Cetrel S.A. ("Cetrel") Brazil 63.70 63.66 63.66 Distribuidora de Água Camaçari S.A. ("DAC") Brazil 63.70 63.66 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") Brazil 100.00 100.00 100.00 Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") (iii) Brazil 100.00 100.00 (i) Created in October 2018. (ii) Terminated in June 2018. (iii) Multi-asset fund created in December 2018. 2.2 Functional and foreign currency (a) Functional and presentation currency The functional currency of the Company is the real. The presentation currency is also real, unless otherwise stated. All amounts have been rounded to the nearest thousand, unless otherwise indicated. (b) Functional currency other than the Brazilian real Transactions in foreign currencies are translated into the respective functional currency of the Braskem’s entities at the exchange rates on the transaction dates. Monetary assets and liabilities denominated and measured in foreign currency on the reporting date are re-translated into the functional currency at the exchange rate on said date. Non-monetary assets and liabilities measured at fair value in foreign currency are re-translated into the functional currency at the exchange rate on the date on which the fair value was determined. Non-monetary items that are measured based on the historical cost in foreign currencies are translated at the exchange rate on the date of the transaction. The differences in foreign currencies resulting from conversion are generally recognized in the profit or loss. Assets and liabilities from foreign operations are translated into Brazilian real at the exchange rates determined on the reporting date. Revenues and expenses from foreign operations are translated into Brazilian real at the exchange rates determined on the transaction dates. Differences in foreign currencies generated by translation into the reporting currency are recognized in other comprehensive income and accrued in asset valuation adjustments in equity. The results and financial position of an entity whose functional currency is not the currency of a hyperinflationary economy must be translated into the reporting currency. The assets and liabilities for each balance sheet reported (including the comparative balance sheets) must be translated using the closing quote of the exchange rate on the respective reporting dates, and the income and expenses for each comprehensive statement of operations or statement of operations reported (including comparative statements) must be translated using the exchange rates in effect on the transaction dates. All exchange variation gains and losses must be recognized in other comprehensive income. The subsidiaries with a functional currency different from that of the Braskem S.A. are listed below: Functional currency Subsidiaries Braskem Alemanha Euro BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso Braskem Argentina Argentinean peso Braskem Chile Chilenean peso (c) Exchange variation effects The effects from exchange variation on the Company’s transactions are mainly due to the variations in the following currencies: End of period rate at December 31 Average rate Variation 2019 2018 Variation 2019 2018 2017 2019-2018 2018-2017 U.S. dollar - Brazilizan real 4.0307 3.8748 4.02% 3.9461 3.6558 3.1925 7.94% 14.51% Euro - Brazilizan real 4.5305 4.4390 2.06% 4.4159 4.3094 3.6089 2.47% 19.41% Mexican peso - Brazilizan real 0.2134 0.1972 8.22% 0.2049 0.1901 0.1694 7.80% 12.24% U.S. dollar - Mexican peso 18.8858 19.6655 -3.96% 19.2568 19.2363 18.9142 0.11% 1.70% U.S. dollar - Euro 0.8926 0.8729 2.26% 0.8930 0.8471 0.8871 5.42% -4.50% (d) Hyperinflationary economy In July 2018, the International Accounting Standards Board (IASB) issued a report updating the list of countries with hyperinflationary economies in which Argentina was included. IAS 29 - Financial Reporting in Hyperinflationary Economies) details the procedures that must be carried out at Braskem Argentina after such change in scenario. According to IAS 21 – Effects of changes in foreign exchange rates and conversion of financial statements, the conversion procedure for a balance sheet from a hyperinflationary economy differs from the procedures for a non-inflationary economy. For converting the balance sheet of Braskem Argentina, assets, liabilities, equity, income and expenses (including comparative balances) must be translated into the reporting currency using the closing quote of the exchange rate on the reporting date. 2.3 Consolidation 2.3.1 Business combinations Business combinations are recognized using the acquisition method when control is transferred to the Company. The consideration transferred generally is measured at fair value, as also is the identifiable net assets acquired. Any goodwill arising from the transaction is tested annually for impairment loss. Gains on bargain purchase are immediately recognized in the profit or loss. Transaction costs are recognized into the result as incurred, except any costs associated with issuances of debt or equity instruments. Any contingent consideration payable is measured at its fair value on the acquisition date. If the contingent consideration is classified as an equity instruments, it is not remeasured and the settlement is recognized in equity. Other contingent considerations are remeasured at fair value on each reporting date and subsequent changes to fair value are recognized in the income statement for the fiscal year. 2.3.2 Subsidiaries The Company controls an entity when it is exposed to, or entitled to, the variable returns originating from its involvement with the entity and has the capacity to affect such returns by exercising its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements as from the date the Company obtains control until the date of the loss of control. 2.3.3 Investments in entities with accounting treatment using the equity method The Company’s investments in entities with accounting treatment using the equity method consist of their interests in associated companies. Associated companies are those over which the Company, directly or indirectly, holds significant influence, but not control or joint control, over the financial and operational policies. Such investments are initially recognized at cost, which includes the expenses with the transaction. After initial recognition, the financial statements include the Company’s interest in the net profit or loss for the fiscal year and other comprehensive income in the investee until the date on which the significant influence or joint control ceases to exist. 2.3.4 Transactions eliminated in consolidation Intragroup balances and transactions and any unrealized revenues or expenses arising from intragroup transactions are eliminated. Unrealized gains originating from transactions with investees recorded using the equity method are eliminated against the investment proportionately to the Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment loss. 2.4 Employee benefits 2.4.1 Short-term benefits for employees The obligations of short-term benefits for employees are recognized as personnel expenses as the corresponding service is rendered. The liability is recognized at the amount of the expected payment if the Company has a legal or constructive obligation to pay the amount due to services rendered by an employee in the past and the obligation can be reliably estimated. 2.4.2 Share-based payment agreement The fair value at the issue date of share-based payments granted to employees is recognized as personnel expenses, with a corresponding increase in shareholders' equity, during the period the employees acquire the full right to the award. The amount recognized as an expense is adjusted to reflect the number of awards for which there is an expectation that the service and performance requirements will be fulfilled, so that the final amount recognized as an expense is based on the number of awards that effectively fulfill the service and performance conditions on the vesting date. For share-based payment awards with non-vesting conditions, the fair value at the grant date of the share-based awards is measured to reflect such conditions and no further adjustments are made for the differences between the expected and actual results. The fair value of the amount payable to employees related to rights on stock price appreciation, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities during the period in which the employees acquire the full right to the payment. The liabilities are remeasured on each reporting date and on the settlement date, based on the fair value of the rights to stock price appreciation. Any changes in the fair value of the liability are recognized in the income statement as personnel expenses. 2.4.3 Defined benefit plan The Company’s net obligation for defined benefit plans is calculated for each of the plans based on the estimated amount of future benefit that employees will receive in return for services rendered in the current and prior periods. Such amount is discounted to its present value and is reported net of the fair value of any of the plan’s assets. The calculation of the obligation of the defined benefit plan is made annually by a qualified accountant using the projected unit credit method. When calculations results in a potential asset for the Company, the asset to be recognized is limited to the present value of economic benefits available as future plan reimbursements or as a reduction in future contributions to the plan. To calculate the present value of economic benefits, any applicable minimum cost requirements are taken into account. Remeasurements of net obligation, which include: actuarial gains and losses, return on plan assets (excluding interest) and the effects of the asset cap (if any, excluding interest), are immediately recognized in other comprehensive income. 2.5 Changes in key accounting policies (a) IFRS 16 – Leases For its transition, the Company adopted the modified retrospective approach, i.e., it applied the requirements of the lease standard to all existing agreements on the initial adoption date, i.e. January 1, 2019. Therefore, information and balances were not restated for comparison purposes. After the date of the first-time application, on January 1, 2019, leases were recognized as a right-of-use asset and a corresponding liability on the date on which the leased asset becomes available to the Company. For each right-of-use asset measured, an equivalent liability was recorded.The payment is recorded as a reduction of the lease liability. The financial cost of the lease liability is recorded in the profit and loss during the enforceable term of the lease, applying a constant interest rate on the remaining balance of the liability. The right-of-use asset is depreciated using the straight-line method considering the shortest period between the useful life of the asset and the enforceable term of the lease. Definition of a Lease Previously, the Company determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 Determinig whether an Arrengement contains a Lease As a lessee To determine the enforceable term of the lease, the management considers all facts and circumstances that create an economic incentive for exercising the option of extension or create economic disincentives for not exercising the option of early termination. When adopting IFRS 16, the Company recognized its lease liabilities in relation to the lease agreements previously classified as “operating leases” under IAS 17. Up to the financial statements for 2018, the payments of these leases, net of any incentives received from the lessor, were recognized as profit or loss during the lease period. For leases previously classified as “financial leases” the Company recognized the lease asset and liability considering the amount immediately prior to the date of first-time adoption. On the date of adoption, the assets and liabilities from lease agreements were measured at their present value, considering the outstanding payments of each agreement, discounting by the Company´s incremental borrowing rate on January 1, 2019. The weighted average incremental rate applied upon first-time adoption was 5.58% p.a.. The lease liability considers the net present value of the following lease payments: · Fixed payments discounting any incentive received; · Variable payments based on rates or indexes; · Expected payables to the lessor referring to the guaranteed residual amount; · Exercise price of a purchase option, if it is reasonably certain that lessee will exercise such option; and · Payment of fines for termination of the lease if the contractual terms provide for lessee’s exercise option. Commitments of operating leases as of December 31, 2018 3,257,982 Lease liability recognized on January 1, 2019 Lease commitments discounted at the incremental rate on the date of initial application 2,177,138 (Plus) Financial leases as of December 31, 2018 100,557 (Minus): short-term leases recognized immediately in profit or loss (103,929) (Minus): low value contracts recognized immediately in profit or loss (1,071) (Plus): Extension options reasonably certain to be exercised 119,770 Total 2,292,465 The right-of-use assets were measured by the amount of the lease liabilities, adjusted by any amount of advanced payments and provisions for lease payments related to the lease recognized on January 1, 2019.There were no onerous leases that required adjustment to the right-of-use assets on the date of first-time adoption. Upon first-time adoption, the Company used the following practical expedients permitted under IFRS 16: · Not to reevaluate whether the contract is or contains any lease on the initial adoption date. Instead, applied the standard to agreements that were previously identified as leases; · Opt not to separate non-lease components from lease components, considering them, therefore, as a single lease component; · Not to record contracts, that on the date of the initial adoption date, will end within 12 months; as long as the Company is not reasonably certain to exercise the purchase option at the end of the contract; · Not to record low-value agreements (R$30 for companies in Brazil and US$10 for foreign subsidiaries), in accordance with the policy defined by Management; · Excluded the direct initial costs from measuring the right of use asset on the initial adoption date; · Used hindsight, such as determining the term of the lease, if the contract contains options to postpone or terminate the lease, among others; and · Applied 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”). Leases classified as finance leases under IAS 17 The Company leases some equipments classified as finance leases under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at 1 January 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date. (b) IFRIC 23 – Uncertainty on Income Tax Treatment The new interpretation establishes requirements for recognition and measurement in situations where the Company has defined, 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 tax authorities. The Company concluded the analyses of the application of this standard and did not identify any impacts on the consolidated financial statements. 2.6 New or revised pronouncements not yet in effective New standards and amendments of standards come into force in annual periods starting after January 1, 2020 and their early adoption is permitted. The Company did not early adopt the following new standards and intepretations for preparing these consolidated financial statements: - Changes to references to the conceptual structure of IFRS; - Definition of business (changes to IFRS 13); - Definition of materiality (amendments to IAS 1 and IAS 8); - IFRS 17 – Insurance agreements. The amended standards and interpretations are not expected to produce a significant impact on the consolidated financial statements. 2.7 Change in the presentation of provision, expense method by function In the year ended December 31, 2019, the Company changed the classification of the profit sharing expenses in order to report the effects of this expense by function for better presentation of the consolidated financial statements. The Company has reclassified the prior year financial statements to conform to the current year presentation. In the year ended December 31, 2018, the amounts related to this item were reclassified from “Other expenses” (R$375,360) to “cost of goods sold” (R$145,437, “selling and distribution expenses” (R$50,306), “general and administrative expenses” (R$160,182) and research and development (R$19,435). For the year ended December 31, 2017 the effect of the reclassification was not material. |
3 Application of critical estim
3 Application of critical estimates and judgments | 12 Months Ended |
Dec. 31, 2019 | |
Application Of Critical Estimates And Judgments | |
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. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized prospectively. 3.1 Judgments Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements include the following: (a) Note 14.b – Leasing: 3.2 Uncertainties about assumptions and estimates Information about assumptions and estimation uncertainties at December 31, 2019 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next year are as follows: 3.2.1 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 the 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. In evaluating the plan, the Company uses its historical performance, strategic planning and market projections produced by specialized third party consulting firms, which are reviewed and supplemented based on Management´s experience. Information on deferred income tax and social contribution is presented in Note 22(c). 3.2.2 Useful life of assets The Company recognizes the depreciation, amortization and depletion of its tangible and intangible assets with estimated useful life approved by the Company’s technicians with experience in the management of Braskem’s plants. The useful lives of assets are reviewed at the end of every year by the Company’s technicians in order to check whether they need to be changed. 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, the sales amount is close to the residual value; 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, amortization and depletion rates: 2019 2018 Buildings and improvements 3.42 3.42 Machinery, equipment and installations 8.01 8.04 Mines and wells 8.70 8.84 Furniture and fixtures 10.00 10.03 IT equipment 20.04 20.13 Lab equipment 9.45 9.53 Security equipment 9.45 9.72 Vehicles 16.90 17.83 Other 18.23 18.82 Information on property, plant and equipment is presented in Note 12. 3.2.3 Impairment test and analysis (a) Tangible and intangible assets with definite useful lives Annually, or whenever there is any indication that the value of the asset could be impaire, the Company conducts an analysis to determine the existence of any indication that the book balance of tangible and intangible assets with definite 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 strategic vision of the business. If the aforementioned variables indicate any material risk to cash flows, the Management of Braskem conducts impairment tests in accordance with Note 3.2.3(b). For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs (“Cash Generating Units”). The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. The fair value less costs of disposal is estimated using discounted cash flows and discount rate in an orderly transaction between market participants at the measurement date under current market conditions, less incremental costs directly attributable to the disposal. Impairment loss is recognized in profit or loss if the book value of the asset or CGU exceeds its recoverable value. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (or group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (or group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. When identifying whether cash inflows from an asset (or group of assets) are largely independent of cash inflows from other assets (or groups of assets), the Company considers several factors, such as: product lines, individual locations and the way Management monitors and makes decisions about the continuity of the entity's operations. At December 31, 2019, assets are grouped according to the following CGUs: Brazil: · CGU Northeastern petrochemical complex (NE): represented by assets of the ethylene, PE plants located in the Northeast region; · CGU Vinyls: represented by assets of PVC and chlorine soda plants located in Brazil; · CGU Southern petrochemical complex (South): represented by assets of the ethylene, propylene, PE and PP plants, located in the South region; · CGU Rio de Janeiro petrochemical complex (RJ): represented by assets of the ethylene, propylene, PE and PP plants, located in Rio de Janeiro state; · CGU São Paulo petrochemical complex (SP): represented by assets of the ethylene and PE plants, located in the cities of Santo André and Cubatão; · CGU Paulínia: represented by assets of the PP plant; · CGU ABC, greater São Paulo region: represented by assets of the PP plant. United States and Europe: · CGUs Polypropylene USA: there are 5 PP plants located in the United States, the assets of each plant represent a UGC; · CGUs Polypropylene Europe: there are 2 PP plants located in Germany, each plan represents a UGC. Mexico: · CGU 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 arising from business combinations are tested for impairment once a year. Goodwill from business combination is allocated to the CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. These tests are based on the projected cash flow in each CGU or groups of CGUs, which are extracted from the business plan of the Company for a five-year period, mentioned in Note 3.2.1, and the Management plan for a period greater than 5 years to reflect industry cycle patterns, in a total projection period of 10 years. 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”). Goodwill and results of impairment tests are presented in Note 13(a) and (b). 3.2.4 Provisions and contingencies Provisions are recorded when there is a present obligation (legal or constructive) as a result of a past event, and it is more likely than not that an outflow of resources will be required to settle the obligation. Contingent liabilities are mainly related to discussions in the judicial and administrative spheres arising from primarily labor, corporate claims, civil and tax lawsuits. The Management of Braskem, based on its assessment and of its external legal advisors, classifies these proceedings in terms of probability of loss as follows: (i) Probable loss – these are proceedings for which there is a higher probability of loss than of a favorable outcome; (ii) Possible loss - these are proceedings for which the possibility of loss is greater than remote and lesser than probable. For these claims, the Company does not recognize a provision and discloses the most significant matters in Note 24.2. The provision for labor, corporate claims, civil and tax lawsuits correspond to the value of the claims plus charges by the estimated value of probable losses. On the acquisition date in business combination operations, in accordance with IFRS 3, a contingent liability is recorded when it represents a present obligation. 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 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 24. 3.2.5 Provision of expenses – Geological event in Alagoas The provision arises from actions and security measures based on studies and dealings with the competent authorities as of the Term of Agreement to Support the Realocation of People in Risk Areas (“Term”), disclosed in Note 26.1 (i). The actions for closure and monitoring wells and support the evacuation of residents of the protection area involve various estimates in determining the future expenses for implementation of these measures. Therefore, factors such as the time taken to execute the action plans, results of future studies experts, changes in the structure of the wells, the outcome of ongoing legal actions, among others, may result in a material impact on the amount of the provision. 3.2.6 Derivative and non-derivative financial instruments (a) 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 20. (b) Hedge accounting The Company designated non-derivate 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, 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 from financial institutions 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 should 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, reviewed and approved by Management of the Company. 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 for the Braskem S.A. and the subsidiary Braskem Idesa will be characterized by the first sales in U.S. dollars in each quarter until the amount designated for each period is reached (Note 20.4(a.i) and 20.4(a.ii), respectively). 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 the volatility of the foreign exchange and interest 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, as reported in Note 20.3. |
4 Risk management
4 Risk management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of risk management strategy related to hedge accounting [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, which is periodically reviewed by the Board of Directors. 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 20.6(c.2). (a) Exposure to commodity risks Most of 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 Braskem’s results and cash generation. Nevertheless, the Company believes such risk is inherent to the petrochemical business and, therefore, in general, it does not seek financial instruments to hedge against commodity price fluctuations. (b) Exposure to foreign exchange risk Considering the dynamics of the international petrochemical market, where prices are mostly pegged to international dollar-denominated references, even Braskem’s sales in Brazil are strongly correlated to the U.S. currency. Therefore, with the goal of partially mitigating the long-term exchange risk, as of September 2016, the Company started to contract financial derivatives to compose a Long-Term Foreign Exchange Hedge Program. The Program mainly aims to mitigate dollar call and put option contracts, hedging expected flows over a 24-month horizon, as described in greater detail in Note 20.3. In addition to the Hedge Program, to balance the composition between dollar-denominated assets and liabilities, Braskem’s Financial Policy requires the Company to maintain a percentage of at least 70% of the dollar-denominated portion of net debt. If convenient, the company may maintain a percentage of more than 70%, although subject to a sensitivity analysis of key financial indicators and proof of the inexistence of significant risk of deterioration of these indicators. On December 31, 2019, Braskem prepared a sensitivity analysis for its exposure to the fluctuation in the U.S. dollar, as disclosed in Note 20.6. (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 Interbank Certificate of Deposit (“CDI”) rate. In 2019, Braskem held swap contracts (Note 20.3.1) in which it receives Libor and pays a fixed rate. On December 31, 2019, Braskem prepared a sensitivity analysis for the exposure to the floating interest rates Libor, CDI, IPCA, TJLP and Selic, as disclosed in Notes 20.6(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 bank checking accounts, 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, 2019, 45.9% of the amounts recorded as “Cash and cash equivalents” (Note 5) and “Financial Investments” (Note 6) were allocated to financial institutions that had offset 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, 2019, the balance of trade accounts receivable was net of allowance for doubtful accounts (Note 7). 4.3 Liquidity risk Braskem has a calculation methodology to determine a minimum cash “monthly vision” (30-day horizon) and a minimum cash “yearly vision” (up to 12-month horizon) 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 to determine the minimum cash “yearly vision” are calculated mainly based on the projected operating cash generation, less short-term debts and working capital needs. The amounts used for determining the minimum cash “monthly vision” consider the projected operating cash disbursement, debt service and contributions to projects, as well as the planned disbursement for derivatives maturing in the period, among other items. The Company uses as minimum cash in its financial policy the greater of these two references. In May 2018, the Company, in keeping with its commitment to maintain its financial liquidity, contracted an international revolving credit facility in the amount of US$1 billion, which expires in 2023. This line may be used without restrictions to improve the Company’s credit quality or in the event of deterioration in the macroeconomic scenario. As of December 31, 2019, this new credit line had not been used. As per note 39(b), the credit line was withdrawal on April 1 st The table below shows Braskem’s financial liabilities by maturity, including the amounts due under the Leniency Agreement (Note 25). These amounts are gross and undiscounted and include contractual interest payments, therefore may not be reconciled with the balance sheet. Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 9,194,081 3,837 9,197,918 Borrowings 857,768 2,277,351 7,198,320 40,087,917 50,421,356 Debentures 51,348 126,754 143,307 28,703 350,112 Braskem Idesa borrowings 806,378 1,743,252 2,351,076 9,504,803 14,405,509 Derivatives 49,251 76,791 92,287 435 218,764 Loan to non-controlling shareholder of Braskem Idesa 2,395,887 2,395,887 Other financial liabilities 534,456 534,456 Leniency agreement (Note 25) 363,720 376,294 1,043,168 175,058 1,958,240 Lease 665,164 565,824 1,174,827 710,044 3,115,859 At December 31, 2019 12,522,166 5,170,103 12,002,985 52,902,847 82,598,101 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. As is the case of liquidity, capital is not managed at the Parent Company level, but only at the level of the consolidated entities, with the exception of the liquidity and capital of Braskem Idesa, whose specific management is concentrated at the Braskem Idesa level. |
5 Cash and cash equivalents
5 Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 5 Cash and cash equivalents 2019 2018 Cash Domestic market 13,495 47,735 Foreign market (i) 2,289,736 2,181,229 Cash equivalents: Domestic market 1,963,185 1,754,561 Foreign market (i) 2,537,464 1,564,112 Total 6,803,880 5,547,637 (i) On December 31, 2019, it includes cash of R$598,591 and R$418,644 of cash equivalents (R$963,357 on December 31, 2018) of the subsidiary Braskem Idesa, which cannot be used by the other subsidiaries of the Company. This item includes cash, bank deposits and highly liquid financial investments available for redemption within three months from the date of purchase. 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 funds FIM Jupiter and FIM Netuno. Cash equivalents abroad mainly comprise fixed–income instruments (time deposit). |
6 Financial investments
6 Financial investments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Investments | |
Financial investments | 6 Financial investments 2019 2018 Amortized cost Time deposit investments 38,759 49,630 Fair value through profit or loss LFT´s and LF´s (i) 1,588,426 2,247,272 Restricted funds investments (ii) 9,708 9,998 Other 60,319 60,711 Total 1,697,212 2,367,611 Current assets 1,687,504 2,357,613 Non-current assets 9,708 9,998 Total 1,697,212 2,367,611 (i) These 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 original maturity above three months, immediate liquidity in the secondary market and Management expects their realization in the short term. (ii) Restricted funds represent bank deposits with yields of approximately 100% of the Interbank Deposit Rate (“CDI”), and their use is related to the fulfillment of the contractual obligations of the debentures. |
7 Trade accounts receivable
7 Trade accounts receivable | 12 Months Ended |
Dec. 31, 2019 | |
Trade Accounts Receivable | |
Trade accounts receivable | 7 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 the risks and benefits over the receivables are substantially transferred, for which reason the trade notes are derecognized. At December 31, 2019, total amount of the operation was R$ 2.0 billion. Note 2019 2018 Customers Domestic market Third parties 1,049,412 1,402,638 Related parties 9 8,814 22,806 1,058,226 1,425,444 Foreign market Third parties 1,477,748 1,901,184 1,477,748 1,901,184 Allowance for doubtful accounts (i) (229,323) (233,625) Total 2,306,651 3,093,003 Current assets 2,285,750 3,075,218 Non-current assets 20,901 17,785 Total 2,306,651 3,093,003 (i) Company’s expected credit losses are determined based on the following stages: Stage 1 – when the securities are still performing in 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; in 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. The following table shows the Company’s expected credit loss for each stage: Estimated loss Trade accounts receivable Allowance for Stage 1 Operation risk 1 Minimum risk 1,635,553 Operation risk 2 Minimum risk 337,044 Operation risk 3 0.24% 201,126 485 Operation risk 4 0.57% 126,250 720 Operation risk 5 100% 1,778 1,778 2,301,751 2,983 Stage 2 1st Renegotiation lower than 24 months 24% or 100% 6,631 1,717 2nd Renegotiation greater than 24 months 91% or 100% 1,558 1,558 Legal 100% 170,698 170,698 178,887 173,973 Stage 3 Between 90 and 180 days 50% or 100% 6,126 3,157 Above 180 days 100% 49,210 49,210 55,336 52,367 Total 2,535,974 229,323 The changes in the allowance for doubtful accounts are presented below: 2019 2018 Balance of provision at the beginning of the year (233,625) (350,025) Provision in the year (59,885) (24,604) Reversal in the year 45,501 124,579 Write-offs 18,686 16,425 Balance of provision at the end of the year (229,323) (233,625) The breakdown of trade accounts receivable by maturity is as follows: 2019 2018 Accounts receivables not past due 2,001,326 2,616,104 Past due securities: Up to 90 days 318,852 492,265 91 to 180 days 15,368 10,941 As of 180 days 200,428 207,318 2,535,974 3,326,628 Allowance for doubtful accounts (229,323) (233,625) Total customers portfolio 2,306,651 3,093,003 |
8 Inventories
8 Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Inventories Abstract | |
Inventories | 8 Inventories 2019 2018 Finished goods 4,634,192 5,542,220 Raw materials, production inputs and packaging 1,665,797 1,578,523 Maintenance materials 608,693 465,684 Advances to suppliers 68,382 93,445 Imports in transit 664,345 838,099 Total 7,641,409 8,517,971 Current assets 7,625,084 8,486,577 Non-current assets 16,325 31,394 Total 7,641,409 8,517,971 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. Finished goods are measured at the lower of cost and net realizable value and, when necessary, a provision is recorded. For this estimate, the Company considers the sale price, reduced by all costs of sale, projected for the period during which it expects to sell the product. This period is determined based on historical data for turnover of the respective inventory. The effect of the provision for inventories in 2019 and 2018 is shown below: 2019 2018 Additions (72,672) (23,674) Reversals 10,636 14,721 Total (62,036) (8,953) |
9 Related parties
9 Related parties | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Related parties | 9 Related parties Balances at December 31, 2019 Balances at December 31, 2018 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and Balance sheet and associates subsidiaries Other Total and associates subsidiaries Other Total Assets Current Trade accounts receivable 4,257 4,557 8,814 20,119 2,687 22,806 Inventories 17,242 17,242 8,665 30,193 38,858 Dividends and interest on capital 3,074 3,074 890 890 Total assets 21,499 7,631 29,130 8,665 50,312 3,577 62,554 Liabilities Current Trade payables 12,402 133,759 9,819 155,980 16,851 160,324 177,175 Payable notes 58 58 Other payables 1,420 136 1,556 2,841 484 3,325 Non-current Loan to non-controlling shareholders of Braskem Idesa 2,395,887 2,395,887 2,183,830 2,183,830 Total liabilities 12,460 135,179 2,405,842 2,553,481 19,692 160,808 2,183,830 2,364,330 Twelve-month period ended December 31, 2019 Twelve-month period ended December 31, 2018 Twelve-month period ended December 31, 2017 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and subsidiaries Petrobras and and associates subsidiaries Other Total and associates subsidiaries Other Total and associates subsidiaries Other Total Transactions Sales of products 665,417 588,785 1,254,202 1,225,443 736,192 1,961,635 27,467 1,810,789 629,302 2,467,558 Purchases of raw materials, finished goods services and utilities 293,501 12,584,453 10,738 12,888,692 460,480 15,540,144 3,800 16,004,424 742,161 12,795,819 5,664 13,543,644 Financial income (expenses), net (96) (5) (10,967) (11,068) (49) (106,516) (106,565) 2,056 (39,433) (37,377) Other income (expenses) (34,873) (34,873) 4,214 4,214 General and administrative expenses Post-employment benefits plan ("EPE") Private pension ("Vexty", new name of Odeprev) 49,867 49,867 48,514 48,514 36,725 36,725 Acquisiton of subsidiary 610,000 610,000 (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 that exceed R$20,000 per transaction or R$60,000 collectively per year. This is valid for contracts between Braskem and its subsidiaries and: (i) direct or indirect subsidiaries of Braskem in whose capital an interest is held by the controlling shareholder, by any direct or indirect subsidiaries thereof or by Key Personnel of such entities; (ii) associates of Braskem and subsidiaries of such entities; and (iii) joint ventures in which Braskem participates and any subsidiaries thereof. 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 its control to identify related parties, Key Personnel annually inform whether they, or their close relatives, hold full or shared control of any company. All companies that conducted transactions with Braskem and its subsidiaries are provided in this Note. The related parties that have significant relationship with the Company are as follows: Odebrecht and its direct and indirect subsidiaries: · Atvos Agroindustrial S.A. (“Atvos”) · Agro Energia Santa Luzia S.A. (“USL”) · Odebrecht Engenharia & Construção S.A. (“OEC”). · Usina Conquista do Pontal S.A. (“UCP”) Petrobras and its direct and indirect subsidiaries: · Petróleo Brasileiro S.A. (“Petrobras”) · Petrobras Distribuidora (“BR Distribuidora”). Joint ventures of Braskem: · Refinaria de Petróleo Riograndense S.A (“RPR”). Associate of Braskem: · Borealis Brasil S.A (“Borealis”). Non-controlling shareholders of Braskem Idesa: · Etileno XXI, S.A. de CV. · Grupo Idesa, S.A. de CV. During 2019 and 2018, the main transactions between the Company and related parties under normal market terms and conditions, are as follows: · Odebrecht and its subsidiaries: (i) In May 2018, Braskem entered into an agreement for caustic soda movement and storage services with Liquiport Vila Velha S.A., a wholly owned subsidiary of Odebrecht Transport S.A. The agreement has an estimated maximum value of R$93,000 and is valid for 10 years. In August 2019, the company Odebrecht Transport S.A. sold Liquiport to the company Terminal Portuário de Espírito Santo. The payments made during the year to the date of sale amounted to R$5,633 (R$5,844 in 2018). (ii) In January 2019, the Company signed an amendment to the agreement entered into in December 2017 with Agro Energia Santa Luzia S.A. - USL, Usina Conquista do Pontal S. A. - UCP, Atvos Agroindustrial S. A. and Brenco Companhia Brasileira de Energia Renovável, for the purchase of feedstock for future delivery between January and March 2019. This amendment involved an advance of R$100,413, which, on December 31, 2019, did not record any balance. · Petrobras and its subsidiaries: (i) Since December 2015, the Company has maintained an agreement with Petrobras for the annual supply of up to 7 million tons of petrochemical naphtha, which has a duration of five years. (ii) Since December 2000, Braskem has maintained feedstock supply agreements for ethane and propane with Petrobras. These agreements have different expiration dates, between May 2021 and April 2028, with prices based on international references to ensure the competitiveness of the feedstock. If renewed, the same terms and conditions currently in force will be maintained. (iii) Braskem maintains agreements for the sale of gasoline to Petrobras Distribuidora S.A., which is renewed on a monthly basis. Sales in 2019 amounted to R$1,011,839 (R$1,122,417 in 2018). (iv) In July 2019, Braskem entered into a natural gas purchase agreement with CDGN LOGÍSTICA S.A., whose effective term is five years and maximum value is estimated at R$210,000. (v) In December 2019, an amendment to the natural gas purchase agreement was signed with Companhia de Gás da Bahia (“Bahiagás”). The term of the agreement is from January to December 2020 and the amended agreement amount is R$820,000. · Braskem joint venture: (i) In 2019, sales of gasoil to RPR amounted to R$37,873. The product is used as feedstock in the diesel production process (R$127,342 in 2018). (ii) Sales of gasoline to RPR ae negotiated monthly. In 2019, these sales amounted to R$257,295 (R$440,801 in 2018). · Non-controlling shareholders of Braskem Idesa Loan payable, maturing December 2029 and 7% p.a., to the non-controlling shareholder. These proceeds were used by Braskem Idesa to fund its construction project. (b) Key management personnel Statement of profit or loss transactions 2019 2018 2017 Remuneration Short-term benefits 70,366 60,922 60,303 Post-employment benefit 1,104 989 664 Long term incentive plan 14,724 4,404 Total 86,194 66,315 60,967 |
10 Taxes recoverable
10 Taxes recoverable | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Recoverable | |
Taxes recoverable | 10 Taxes recoverable 2019 2018 Parent Company and subsidiaries in Brazil IPI 477 9,050 Value-added tax on sales and services (ICMS) - normal operations (a) 255,945 427,331 ICMS - credits from PP&E 166,824 170,998 Social integration program (PIS) and social contribution on revenue 45,604 482 PIS and COFINS - credits from PP&E 316,973 255,739 REINTEGRA program (b) 19,848 20,615 Federal tax credits (c) 2,459,293 688,111 Other 5,434 2,852 Foreign subsidiaries Value-added tax ("IVA") 217,630 173,051 Other 7,701 7,750 Total 3,495,729 1,755,979 Current assets 1,238,011 423,188 Non-current assets 2,257,718 1,332,791 Total 3,495,729 1,755,979 (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) 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, 2015; (ii) 1%, between March 1, 2015 and November 30, 2015; (iii) 0.1% between December 1, 2015 and December 31, 2016; (iv) 2% between January 1, 2017 and May 31, 2018; and (v) 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. At the year ended December 31, 2019, the Company recorded credits in the amount of R$9,157 (R$69,055 in 2018) and offset the amount of R$9,532 (R$144,957 in 2018). In the Statement of Operations, credits were recognized in the item “Cost of Products Sold.” (c) Recovery of Federal Tax Credits The main tax credit refers to the exclusion of ICMS tax from the PIS/COFINS tax base. During 2019, a lawsuit of Braskem S.A. and lawsuits of acquired companies were certified as final and unappealable, the oldest period retroactive to 1991. The effects of these decisions were assessed by the Company and, during 2019, a total of R$2,048,782 was recognized related to PIS and COFINS taxes, of which R$1,904,206 was recorded under “Other operating income (expenses)” and R$207,582 under “Financial income.” The balance on December 31, 2019 is R$2,350,817 (current assets of R$783,199 and non current assets of R$1,567,618). The Company has lawsuits related to other acquired companies discussing the same tax matter, for which there was no final judgment yet. The oldest period of these lawsuits retroactive to February 1999, the calculations to estimate the tax credit have not been finalized. |
11 Investments
11 Investments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of associates [abstract] | |
Investments | 11 Investments (a) Information on investments Interest in total and Net profit (loss) voting capital (%) for the year Equity Direct and indirect 2019 2018 2017 2019 2018 Jointly-controlled investment RPR (i) 33.20 29,687 6,358 106,109 93,025 99,672 Odebrecht Comercializadora de Energia S.A. ("OCE") (ii) (48) (543) Associate Borealis (iii) 20.00 17,622 (2,900) 17,752 164,086 163,884 (i) RPR – its main activities are the refine, processing and sale and import of oil, its byproducts and correlated products. (ii) Terminated in June 2018. (iii) Borealis – its main activities are the production and commercialization of petrochemical byproducts and correlated products. (b) Changes in investments Dividends Equity Balance at and interest Equity in results valuation Balance at 2018 on equity of investees adjustments Other 2019 Domestic associate Borealis 32,776 (3,002) 3,042 32,816 RPR 33,094 (4,295) 9,857 (7,769) 30,887 Other 84 - 56 140 65,954 (7,297) 12,899 (7,769) 56 63,843 (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, and the material effects on the Company’s consolidated statements. Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated (i) Eliminations Consolidated 2019 2018 2019 2018 2019 2018 2019 2018 Assets Curent Cash and cash equivalents 5,786,645 4,584,280 1,017,235 963,357 6,803,880 5,547,637 Financial investments 1,687,504 2,357,613 1,687,504 2,357,613 Trade accounts receivable 1,973,414 2,574,791 331,838 627,879 (19,502) (127,452) 2,285,750 3,075,218 Inventories 7,028,641 7,907,429 596,443 579,148 7,625,084 8,486,577 Taxes recoverable 1,084,055 313,499 153,956 109,689 1,238,011 423,188 Income tax and social contribution 439,933 423,900 439,933 423,900 Derivatives 4,712 6,714 21,000 4,712 27,714 Judicial deposits 2,571,683 2,571,683 Other receivables 393,593 372,846 339,404 319,122 732,997 691,968 20,970,180 18,541,072 2,438,876 2,620,195 (19,502) (127,452) 23,389,554 21,033,815 Non-current Taxes recoverable 2,257,652 1,332,730 66 61 2,257,718 1,332,791 Income tax and social contribution 239,847 241,788 239,847 241,788 Deferred tax 1,713,837 114,000 948,759 990,158 2,662,596 1,104,158 Related parties 6,729,486 6,137,206 (ii) (6,729,486) (6,137,206) Derivatives 17,877 46,664 17,877 46,664 Judicial deposits 1,508,880 169,536 1,508,880 169,536 Other receivables 369,137 377,356 505 553 369,642 377,909 Property, plant and equipment 20,488,870 20,102,981 12,537,615 12,365,063 (iii) (711,304) (708,154) 32,315,181 31,759,890 Intangible 2,568,347 2,562,722 193,741 178,260 2,762,088 2,740,982 Right of use of assets 2,309,506 296,148 2,605,654 38,203,439 31,038,319 13,976,834 13,580,759 (7,440,790) (6,845,360) 44,739,483 37,773,718 Total assets 59,173,619 49,579,391 16,415,710 16,200,954 (7,460,292) (6,972,812) 68,129,037 58,807,533 Liabilities and shareholders' equity Current Trade payables 8,903,168 8,099,755 233,323 368,949 (19,502) (127,452) 9,116,989 8,341,252 Borrowings 774,924 737,436 774,924 737,436 Debentures 46,666 27,732 46,666 27,732 Braskem Idesa Borrowings 744,408 10,504,592 744,408 10,504,592 Payroll and related charges 598,147 617,079 25,576 28,317 623,723 645,396 Taxes payable 306,453 419,204 16,433 12,801 322,886 432,005 Income tax and social contribution 34,856 69,268 34,856 69,268 Lease 619,217 9,767 57,074 676,291 9,767 Provision - geological event in Alagoas 1,450,476 1,450,476 Other financial liabilities 516,933 516,933 Other payables 1,798,865 1,922,781 109,143 75,849 1,908,008 1,998,630 15,049,705 11,903,022 1,185,957 10,990,508 (19,502) (127,452) 16,216,160 22,766,078 Non-current Loan agreements 28,242,052 24,160,720 28,242,052 24,160,720 Braskem Idesa Borrowings 9,237,318 9,237,318 Debentures 227,901 266,777 227,901 266,777 Accounts payable to related parties 6,714,236 6,147,768 (ii) (6,714,236) (6,147,768) Loan to non-controlling shareholders of Braskem Idesa (v) 2,395,887 2,183,830 2,395,887 2,183,830 Deferred income tax and social contribution 273,036 381,582 273,036 381,582 Provision for losses on subsidiaries 3,082,173 2,871,819 (iv) (3,082,173) (2,871,819) Lease 1,767,314 90,790 233,291 2,000,605 90,790 Provision - geological event in Alagoas 1,932,591 1,932,591 Other payables 3,625,695 3,292,738 33,086 10,348 3,658,781 3,303,086 39,150,762 31,064,426 18,613,818 8,341,946 (9,796,409) (9,019,587) 47,968,171 30,386,785 Shareholders' equity Attributable to the Company's shareholders 4,886,089 6,531,070 (3,384,065) (3,131,500) 3,383,274 3,131,500 4,885,298 6,531,070 Non-controlling interest in subsidiaries 87,063 80,873 (1,027,655) (957,273) (940,592) (876,400) 4,973,152 6,611,943 (3,384,065) (3,131,500) 2,355,619 2,174,227 3,944,706 5,654,670 Total liabilities and shareholders' equity 59,173,619 49,579,391 16,415,710 16,200,954 (7,460,292) (6,972,812) 68,129,037 58,807,533 (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 payable, maturing December 2029 and 7% p.a., to the non-controlling shareholder. These proceeds were used by Braskem Idesa to fund its construction project. Statement of profit or loss Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Restated Restated Net revenue 49,961,286 54,851,243 46,207,109 3,050,420 3,766,371 3,656,801 (688,181) (617,748) (603,316) 52,323,525 57,999,866 49,260,594 Cost of products sold (44,111,980) (44,928,721) (34,675,494) (2,509,060) (2,314,998) (2,125,031) 741,922 667,062 623,117 (45,879,118) (46,576,657) (36,177,408) 5,849,306 9,922,522 11,531,615 541,360 1,451,373 1,531,770 53,741 49,314 19,801 6,444,407 11,423,209 13,083,186 Income (expenses) Selling and distribution (1,582,794) (1,495,507) (1,274,362) (200,661) (193,672) (171,791) (1,783,455) (1,689,179) (1,446,153) (Loss) reversals for impairment (4,772) 87,008 (13,455) (2,297) (7,069) 87,008 (13,455) General and administrative (2,082,002) (1,669,277) (1,336,072) (141,269) (123,576) (122,043) (909) (332) 23,843 (2,224,180) (1,793,185) (1,434,272) Research and development (247,730) (219,256) (167,456) (247,730) (219,256) (167,456) Results from equity investments (326,427) 76,821 191,949 336,645 (77,709) (151,993) 10,218 (888) 39,956 Other income 2,102,684 656,725 282,629 305,750 370,497 32,305 2,408,434 1,027,222 314,934 Other expenses (4,466,450) (502,795) (1,169,814) 19,508 (51,918) (4,446,942) (554,713) (1,169,814) (758,185) 6,856,241 8,045,034 522,391 1,452,704 1,270,241 389,477 (28,727) (108,349) 153,683 8,280,218 9,206,926 Financial results Financial expenses (3,009,471) (2,227,544) (3,044,668) (1,205,412) (1,090,019) (973,952) 332,098 310,012 271,403 (3,882,785) (3,007,551) (3,747,217) Financial income 1,135,118 867,185 850,367 47,534 31,879 24,666 (332,098) (310,012) (271,403) 850,554 589,052 603,630 Exchange rate variations, net (1,768,850) (2,014,205) (936,804) 75,610 (232,064) 132,186 (31,280) (10,714) 5,856 (1,724,520) (2,256,983) (798,762) (3,643,203) (3,374,564) (3,131,105) (1,082,268) (1,290,204) (817,100) (31,280) (10,714) 5,856 (4,756,751) (4,675,482) (3,942,349) Profit (loss) before income tax and social contribution (4,401,388) 3,481,677 4,913,929 (559,877) 162,500 453,141 358,197 (39,441) (102,493) (4,603,068) 3,604,736 5,264,577 IR and CSL - current and deferred 1,873,207 (639,394) (1,057,699) 89,463 (97,157) (299,983) 1,962,670 (736,551) (1,357,682) 1,873,207 (639,394) (1,057,699) 89,463 (97,157) (299,983) 1,962,670 (736,551) (1,357,682) Profit (loss)for the year (2,528,181) 2,842,283 3,856,230 (470,414) 65,343 153,158 358,197 (39,441) (102,493) (2,640,398) 2,868,185 3,906,895 Discontinued operations results Profit (loss) from discontinued operations 13,499 13,499 IR and CSL - current and deferred (4,623) (4,623) 8,876 8,876 Profit (loss) for the year (2,528,181) 2,842,283 3,865,106 (470,414) 65,343 153,158 358,197 (39,441) (102,493) (2,640,398) 2,868,185 3,915,771 Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Profit (loss) before income tax and social contribution (4,401,388) 3,481,677 4,913,929 (559,877) 162,500 453,141 358,197 (39,441) (102,493) (4,603,068) 3,604,736 5,264,577 Adjustments for reconciliation of profit (loss) Depreciation, amortization and depletion 2,732,181 2,228,978 2,230,466 952,916 810,581 742,033 (52,832) (48,982) (43,644) 3,632,265 2,990,577 2,928,855 Results from equity investments 326,427 (76,821) (191,949) (336,645) 77,709 151,993 (10,218) 888 (39,956) Interest and monetary and exchange variations, net 3,050,987 4,658,342 2,900,745 1,062,843 1,344,888 802,825 31,280 10,714 (5,856) 4,145,110 6,013,944 3,697,714 Gain from divestment in subsidiary (276,816) (276,816) Reversal of provisions 320,439 23,725 (223,340) 320,439 23,725 (223,340) Provisions - Leniency agreement 375,476 375,476 Provision - geological event in Alagoas 3,383,067 3,383,067 PIS and COFINS credits - exclusion of ICMS from the calculation basis (1,904,206) (519,830) (1,904,206) (519,830) Loss (reversals) for impairment of trade accounts receivable 7,069 (87,008) 13,455 7,069 (87,008) 13,455 Provision for losses and write-offs of long-lived assets 224,825 69,270 212,759 379 3,200 425 225,204 72,470 213,184 3,739,401 9,778,333 9,954,725 1,456,261 2,321,169 1,998,424 5,195,662 12,099,502 11,953,149 Changes in operating working capital Other financial assets (3,680,460) (3,680,460) Financial investments 797,445 98,349 (953,228) 797,445 98,349 (953,228) Trade accounts receivable 677,176 251,683 (1,317,929) 325,820 (7,348) (373,066) (107,950) (20,917) 79,148 895,046 223,418 (1,611,847) Inventories 825,236 (1,337,618) (1,387,696) 42,581 (199,672) 36,668 867,817 (1,537,290) (1,351,028) Taxes recoverable 1,216,225 1,068,637 415,923 (20,798) (46,395) 53,370 1,195,427 1,022,242 469,293 Prepaid expenses 85,549 (67,051) (21,732) 117,183 (38,112) (8,789) 202,732 (105,163) (30,521) Other receivables (242,727) (12,596) 34,500 (30,938) (236,392) (8,698) (273,665) (248,988) 25,802 Trade payables 330,633 1,113,381 (1,444,468) (156,138) 209,077 (119,033) 107,950 20,917 (79,148) 282,445 1,343,375 (1,642,649) Taxes payable (485,309) (828,222) (132,697) (84,484) (149,026) (82,817) (569,793) (977,248) (215,514) Advances from customers 176,189 (218,623) (3,089) 21,776 18,665 (10,423) 197,965 (199,958) (13,512) Leniency agreement (341,605) (330,006) (1,343,803) (341,605) (330,006) (1,343,803) Sundry provisions (226,519) (116,458) 194,596 10,971 (215,548) (116,458) 194,596 Other payables 348,916 415,468 (70,546) 13,287 417,759 126,087 362,203 833,227 55,541 Cash generated (used) from operations 3,220,150 9,815,277 3,924,556 1,695,521 2,289,725 1,611,723 4,915,671 12,105,002 5,536,279 Interest paid (1,576,526) (1,328,420) (1,648,971) (661,919) (588,381) (505,082) (2,238,445) (1,916,801) (2,154,053) Income tax and social contribution paid (403,614) (937,557) (919,236) (8,337) (274) (1,370) (411,951) (937,831) (920,606) Net cash generated (used) by operating activities 1,240,010 7,549,300 1,356,349 1,025,265 1,701,070 1,105,271 2,265,275 9,250,370 2,461,620 Proceeds from the sale of fixed assets and intangible assets 12,590 95,133 39,660 12,590 95,133 39,660 Proceeds from the sale of investments 81,000 450,000 81,000 450,000 Funds received in the investments' capital reduction 2,254 2,254 Dividends received 3,513 41,791 3,513 41,791 Additions to investments in subsidiaries (608,181) (608,181) Acquisitions to property, plant and equipment and intangible assets (2,578,558) (2,635,906) (2,185,567) (103,964) (70,422) (87,630) (2,682,522) (2,706,328) (2,273,197) Other investments (2,167) (14,683) (2,167) (14,683) Net cash used in investing activities (2,562,455) (2,417,895) (2,318,771) (103,964) (70,422) (87,630) (2,666,419) (2,488,317) (2,406,401) Short-term and long-term debt Acquired 20,586,103 4,301,626 8,492,341 20,586,103 4,301,626 8,492,341 Payments (17,425,409) (6,592,197) (8,779,091) (17,425,409) (6,592,197) (8,779,091) Derivative transactions Payments (810,279) (810,279) Braskem Idesa borrowings Acquired 3,497,622 187,959 3,497,622 187,959 Payments (4,398,453) (812,929) (1,080,502) (4,398,453) (812,929) (1,080,502) Related parties Acquired loans (payment of loans ) 72,880 20,637 (72,880) (20,637) Lease (407,320) (46,870) (454,190) Dividends paid (668,904) (1,499,900) (998,893) (668,904) (1,499,900) (998,893) Other financial liabilities 499,999 499,999 Cash generated (used) in financing activities 2,584,469 (3,717,591) (2,075,285) (947,701) (885,809) (913,180) 1,636,768 (4,603,400) (2,988,465) Exchange variation on cash of foreign subsidiaries (59,659) (309,941) 17,849 80,278 (76,168) (11,374) 20,619 (386,109) 6,475 Increase in cash and cash equivalents 1,202,365 1,103,873 (3,019,858) 53,878 668,671 93,087 1,256,243 1,772,544 (2,926,771) Represented by Cash and cash equivalents at the beginning for the year 4,584,280 3,480,407 6,500,265 963,357 294,686 201,599 5,547,637 3,775,093 6,701,864 Cash and cash equivalents at the end for the year 5,786,645 4,584,280 3,480,407 1,017,235 963,357 294,686 6,803,880 5,547,637 3,775,093 Increase in cash and cash equivalents 1,202,365 1,103,873 (3,019,858) 53,878 668,671 93,087 1,256,243 1,772,544 (2,926,771) |
12 Property, plant and equipmen
12 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 12 Property, plant and equipment (a) Change Land Buildings and Improvements Machinery, Equipment and Facilities Projects and Stoppage in Progress (i) Other Total Balance as of December 31, 2017 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost - previously disclosed 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Cost - reclassification 68,902 (70,296) 1,038,042 186,606 (92,650) 1,130,604 Cost - reclassified 569,548 5,987,963 40,249,084 3,461,271 1,662,442 51,930,308 Accumulated depreciation/depletion - previously disclosed (1,487,762) (18,627,943) (922,389) (21,038,094) Accumulated depreciation/depletion - reclassification (88,244) (964,517) (77,843) (1,130,604) Accumulated depreciation/depletion - reclassified (1,576,006) (19,592,460) (1,000,232) (22,168,698) Balance as of January 1, 2018 569,548 4,411,957 20,656,624 3,461,271 662,210 29,761,610 Acquisitions 372 201,492 2,439,286 13,199 2,654,349 Capitalized financial charges 178,055 178,055 Foreign currency translation adjustment 32,751 593,228 1,433,855 137,551 30,411 2,227,796 Cost 32,751 674,720 1,727,164 137,551 52,242 2,624,428 Depreciation, amortization and depletion (81,492) (293,309) (21,831) (396,632) Transfers by concluded projects 16,477 1,022,560 (1,106,975) 67,938 Transfers to intangible (2,922) (1,539) (4,461) Disposals (2,009) (40,503) (3,873) (1,675) (48,060) Cost (2,983) (175,562) (3,873) (9,475) (191,893) Depreciation, amortization and depletion 974 135,059 7,800 143,833 Depreciation, amortization and depletion (370,035) (2,487,820) (151,544) (3,009,399) Net book value 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 Cost 602,299 6,676,549 43,024,738 5,102,393 1,784,807 57,190,786 Accumulated depreciation, amortization and depletion (2,026,559) (22,238,530) (1,165,807) (25,430,896) Balance as of December 31, 2018 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 Acquisitions 1,280 61,213 2,658,070 3,701 2,724,264 Capitalized financial charges 198,201 198,201 Foreign currency translation adjustment 11,508 289,118 675,400 105,701 3,536 1,085,263 Cost 11,508 366,939 860,672 105,701 10,109 1,354,929 Depreciation, amortization and depletion (77,821) (185,272) (6,573) (269,666) Transfers by concluded projects 21,382 884,606 (993,024) 87,036 Transfers to inventory (47,696) (2,866) (50,562) Transfers to intangible (6,433) (6,433) Cost (6,433) (6,433) Disposals (634) (223,514) (7,739) (3,659) (235,546) Cost (1,178) (392,033) (7,739) (31,264) (432,214) Depreciation, amortization and depletion 544 168,519 27,605 196,668 Depreciation, amortization and depletion (388,869) (2,534,637) (138,395) (3,061,901) Transfers to right of use of assets (97,995) (97,995) Cost (125,497) (125,497) Amortization 27,502 27,502 Net book value 11,508 (77,723) (1,136,932) 1,763,008 473,224 32,315,181 Cost 613,807 7,064,972 44,439,196 7,009,473 1,726,026 60,853,474 Accumulated depreciation, amortization and depletion (2,492,705) (24,789,920) (1,255,668) (28,538,293) Balance as of December 31, 2019 613,807 4,572,267 19,649,276 7,009,473 470,358 32,315,181 (i) On December 31, 2019, 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$1,400,667), capitalized financial charges (R$419,244), inventories of spare parts (R$430,418), strategic projects ongoing in Brazil (R$98,879) and in Braskem America (R$2,611,034). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. 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 only 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 3.2.3(a), the Management of Braskem believes that the plants will operate at their full capacity, or close to it, within the projected period, therefore additional 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. Financial charges are capitalized on the balance of ongoing projects, of Braskem and its subsidiaries, using: (i) the average rate of the financings; and (ii) the exchange variation portion that corresponds to any positive difference between the average rate of financing in the domestic market and the rate cited in item (i). In 2019, charges amounting to R$198,201 (R$178,055 in 2018) were capitalized. The average rate of these charges in the year was 6.47% p.a. (8.78% p.a. in 2018). In compliance with IFRS 7.43, at December 31, 2019, acquisition of property, plant and equipment with payment installments is R$ 103,315. (b) Property, plant and equipment by country 2019 2018 Brazil 15,682,081 16,278,608 Mexico 11,826,309 11,656,910 United States of America 4,545,974 3,539,495 Germany 258,291 273,987 Other 2,526 10,890 32,315,181 31,759,890 |
13 Intangible assets
13 Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Intangible assets | 13 Intangible assets Customers Brands Software and Suppliers Goodwill and Patents licenses Agreements Total Balance as of December 31, 2017 2,058,874 230,087 192,140 246,396 2,727,497 Cost - previously disclosed 3,187,722 349,316 607,528 772,253 4,916,819 Cost - reclassification (44) 58,515 117,743 121,861 298,075 Cost - reclassified 3,187,678 407,831 725,271 894,114 5,214,894 Accumulated amortization - previously disclosed (1,128,848) (119,229) (415,388) (525,857) (2,189,322) Accumulated amortization - reclassification 44 (61,252) (108,644) (128,223) (298,075) Accumulated amortization - reclassified (1,128,804) (180,481) (524,032) (654,080) (2,487,397) Balance as of January 1, 2018 2,058,874 227,350 201,239 240,034 2,727,497 Acquisitions 51,707 272 51,979 Foreign currency translation adjustment 23,966 10,037 (185) 33,818 Cost 27,021 21,053 94,351 142,425 Amortization (3,055) (11,016) (94,536) (108,607) Transfers by projects and stoppage in progress 2,532 1,929 4,461 Disposals (1,003) (1,003) Cost (596,557) (596,557) Amortization 595,554 595,554 Amortization (7,551) (30,780) (37,439) (75,770) Net book value 2,058,874 246,297 234,132 201,679 2,740,982 Cost 3,187,678 437,384 799,960 392,180 4,817,202 Accumulated amortization (1,128,804) (191,087) (565,828) (190,501) (2,076,220) Balance as of December 31, 2018 2,058,874 246,297 234,132 201,679 2,740,982 Acquisitions 112 61,414 61,526 Foreign currency translation adjustment 12,957 2,704 15,661 Cost 13,919 6,356 20,275 Amortization (962) (3,652) (4,614) Transfers from property, plant and equipment 6,433 6,433 Other Cost (4) (4) Amortization 4 4 Amortization (7,751) (32,747) (22,016) (62,514) Net book value 2,058,874 251,615 271,936 179,663 2,762,088 Cost 3,187,678 451,415 874,159 392,180 4,905,432 Accumulated amortization (1,128,804) (199,800) (602,223) (212,517) (2,143,344) Balance as of December 31, 2019 2,058,874 251,615 271,936 179,663 2,762,088 Average annual rates of amortization 4.96% 12.40% 6.00% The Company adopts the following accounting practice for each class of intangible assets: (a) Goodwill 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 companies acquired. Such goodwill was amortized until December 2008. As from 2009, it has been subject to annual impairment tests. On December 31, 2019, the Company tested the balances of goodwill shown in the table below for impairment: Goodwill CGU Southern petrochemical complex 1,390,741 Northeastern petrochemical complex 475,780 Vinyls unity 192,353 The determination of value in use involves judgements and assumptions to determine the discounted cash flow as described in Note 3.2.3(b). The WACC used was 10.69% p.a. The inflation rate considered for perpetuity was 3.5%. The recoverable amount is based on the fair value less cost of disposal, future capital expenditure and its associated costs, based on the discounted cash flow consistent with a market participant perspective, less incremental costs directly attributable to the disposal. The main assumptions consider a post-tax discount rate under current market conditions and an average growth rate of 2% p.a. Given the potential impact on cash flows of the “discount rate” and “perpetuity”, the Company conducted a sensitivity analysis based on changes in these variables considering +0.5% on discount rate and -0.5% on perpetuity. Based on the analyses conducted by Management, there was no need to record impairment losses for the balances of these assets in the year ended December 31, 2019. The main assumptions used for projecting cash flows are related to the projection of macroeconomic indicators, international prices and 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 produced by specialized third party consulting firm, which are reviewed and supplemented based on Management´s experience. Also, 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 have gone through a new revision compared to those originally projected by the specialized third party 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. (b) Intangible assets with definite 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 definite 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 are accounted for in profit or loss as they are incurred, and development expenses are capitalized when projects are viable. (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 definite 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 definite useful life estimated between 5 and 10 years and is amortized using the straight-line method. Costs associated with maintaining computer software programs are recognized in profit or loss as incurred. (c) Intangible assets by country 2019 2018 Brazil 2,521,941 2,510,503 Mexico 193,741 178,261 United States of America 24,313 26,791 Germany 22,077 25,373 Other 16 54 2,762,088 2,740,982 |
14 Right-of-use assets and Leas
14 Right-of-use assets and Lease Liability | 12 Months Ended |
Dec. 31, 2019 | |
Right-of-use Assets And Lease Liability | |
Right-of-use assets and Lease Liability | 14 Right-of-use assets and Lease Liability (a) Right-of-use assets The Company leases various offices, railars, vessels, pieces of equipment and vehicles. Such leases are negotiated individually and are subject to various terms and conditions. The right-of-use asset is measured at the cost composed of: · Amount initially measured of the lease liabilities; · Any payment made up to the start of the lease, deducting any incentive received; · Any initial direct cost; and · Renovation costs. Changes in right-of-use assets in 2019: Transfer of Initial Adoption Foreign currency 2018 fixed assets 01/01/2019 Addition Depreciation Disposal translation adjustment 2019 Buildings and constructions 207,524 153,771 (27,759) (122,488) 1,122 212,170 Computer equipment and goods 2,726 4,932 6,179 (1,446) 132 12,523 Machinery and equipment 7,956 526,318 344,928 (136,615) 661 743,248 Ships 906,495 150,670 (191,778) 865,387 Rail cars 87,313 633,492 103,169 (132,728) 54,794 746,040 Vehicles 35,479 1,073 (10,493) 227 26,286 Total 97,995 2,314,240 759,790 (500,819) (122,488) 56,936 2,605,654 The expense for the short-term leases recognized in the 12-month period ended December 31, 2019 was R$103,929. The expense related to low-value leases recognized in the 12-month period ended December 31, 2019 was R$1,070. To optimize lease costs during the lease term, the Company must provide guaranteed residual amounts for the leased asset. For certain lease agreements for freight cars, which were classified until December 31, 2018 as financial leases, the Company guaranteed any difference between the flow of contractual payments and the fair value of these assets upon the end of the enforceable term, limited to R$50,622 (US$12,559) as of December 31, 2019 and R$48,664 (US$12,559) as of December 31, 2018. (b) Lease Liability The lease payments are deducted using the interest rate of the agreement. If this rate cannot be determined, the Company’s incremental borrowing rate, which corresponds to the rate the Company would pay to take out any loan with similar term and guarantee, for obtaining a similar asset in a similar economic environment and conditions. Extension Options Some leases contains extension options exercisable by the Company. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses at lease commencement date whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. Changes in lease liability 2019 Balance at December 31, 2018 100,557 Initial adoption IFRS 16 2,191,908 Balance at January 01, 2019 2,292,465 Acquired 911,619 Disposals (122,488) Interests and monetary and exchange variations, net 121,061 Currancy translation adjustments 56,805 Payments (454,190) Interest paid (128,376) Balance at December 31, 2019 2,676,896 Current liability 676,291 Non-current liability 2,000,605 Total 2,676,896 Payment Schedule 2019 2021 484,956 2022 421,163 2023 316,218 2024 293,363 2025 177,118 2026 thereafter 307,787 Total 2,000,605 (c) Non-cash investing and financing activity transactions: Net effect of additions/acquired and disposals of leasing that not affect the cash flow in 2019, in compliance with IFRS 16, is R$ 580,055. |
15 Trade account payables
15 Trade account payables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Trade account payables | 15 Trade account payables Note 2019 2018 Trade payables: Domestic market Third parties 1,081,076 1,374,379 Related parties 9 155,980 177,175 1,237,056 1,551,554 Foreign market Third parties (i) 7,964,536 6,934,598 Present value adjustment - foreign market (ii) (80,766) (107,648) 9,120,826 8,378,504 Current liabilities 9,116,989 8,341,252 Non-current liabilities 3,837 37,252 9,120,826 8,378,504 (i) Considers R$6.5 billion (R$5.6 billion in 2018) in raw material purchases due in up to 360 days for which the Company provides letters of credit issued by financial institutions that indicate the suppliers as beneficiaries. (ii) The rate for calculating the Present Value Adjustment applied to the external market payments with terms equal to or longer than 90 day is calculated based on the average rate for lengthening the term of trade payables. |
16 Borrowings
16 Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Borrowings | 16 Borrowings (a) Borrowings (i) Annual financial charges 2019 2018 Foreign currency Bonds Note 16 (b) 24,583,325 21,930,575 Export prepayment Note 16 (c) 863,293 810,542 Working capital Argentine Peso exchange variation 48 Investments Note 16 (d) 751,376 620,160 Other Note 16 (e) 1,952,667 1,147,397 Transactions costs (499,194) (346,921) 27,651,467 24,161,801 Current liabilities 676,831 610,922 Non-current liabilities 26,974,636 23,550,879 Total 27,651,467 24,161,801 Local currency Export credit notes 100.00 of CDI + 0.70 405,642 406,258 Commercial notes 100.00 of CDI + 0.85 554,307 BNDES 4.00 19,998 52,081 BNDES IPCA + 6.04 270,520 BNB/ FINEP/ FUNDES/FINISA/FINAME 6.01 78,776 239,969 FINAME TLP + 6.00 324 555 BNB-FNE (Fundo Constitucional de Financiamentos do Nordeste) IPCA + interest between 2.39 and 2.78 5,582 Fundo de Desenvolvimento do Nordeste (FDNE) 6.50 32,152 37,099 Other 19.14 237 426 Transactions costs (2,029) (33) 1,365,509 736,355 Current liabilities 98,093 126,514 Non-current liabilities 1,267,416 609,841 Total 1,365,509 736,355 Foreign currency and local currency Current liabilities 774,924 737,436 Non-current liabilities 28,242,052 24,160,720 Total 29,016,976 24,898,156 (i) At December 31, 2109, the Company complied with all covenants. (b) Bonds Issue amount Interest Issue date US$ Maturity (% per year) 2019 2018 May-2010 (i) 400,000 May-2020 7.00 81,434 May-2010 (i) 350,000 May-2020 7.00 1,370,156 October-2010 450,000 no maturity date 7.38 1,025,428 985,767 April-2011 (i) 750,000 April-2021 5.75 2,676,195 July-2011 500,000 July-2041 7.13 2,078,372 1,997,984 February-2012 (i) 250,000 April-2021 5.75 980,304 February-2012 250,000 no maturity date 7.38 1,025,428 985,767 May-2012 (ii) 500,000 May-2022 5.38 1,175,799 1,954,177 July-2012 250,000 July-2041 7.13 1,039,186 998,992 February-2014 500,000 February-2024 6.45 2,068,790 1,988,773 May-2014 250,000 February-2024 6.45 1,034,395 994,387 October-2017 (iii) 500,000 January-2023 3.50 847,715 1,969,609 October-2017 1,250,000 January-2028 4.50 5,145,440 4,947,030 November-2019 (iv) 1,500,000 January-2030 4.50 6,090,640 November-2019 (v) 750,000 January-2050 5.88 3,052,132 Total 8,450,000 24,583,325 21,930,575 (i) Prepaid. (ii) Partially prepaid (US$210,735). (iii) Partially prepaid (US$293,105). (iv) The effective interest rate including transaction costs is 4.70% p.a. (v) The effective interest rate including transaction costs is 5.95% p.a. The Company and its subsidiaries may, from time to time, acquire in the secondary market bonds issued by the Company and/or its subsidiaries (c) Export pre-payment Initial amount of the transaction Issue date (US$ thousand) Maturity Charges (% per year) 2019 2018 January-2013 (i) 200,000 November-2022 US dollar exchange variation + semiannual Libor + 1.10 311,082 September-2017 135,000 March-2027 US dollar exchange variation + semiannual Libor + 1.61 457,712 499,460 October-2019 100,000 October-2024 US dollar exchange variation + semiannual Libor + 1.75 405,581 Total 435,000 863,293 810,542 (i) Prepaid in November 2019. (d) Capital raised for construction of new plant in United States The subsidiary Braskem America contracted a credit facility in the amount of up to US$225 million (R$ 900 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 La Porte, Texas. The funds will be released in accordance with the progress of the project’s construction and the total amount funded is expected to be disbursed by December 30, 2020. Initial amount of the transaction Issue date (US$) Maturity Charges (% per year) 2019 2018 July-2018 (i) 179,398 December-2028 Us dollar exchange variation + semianual Libor + 0.65 751,376 620,160 Total 179,398 751,376 620,160 (i) US$130,650 released in July 2018, US$13,677 in September 2018, US$13,823 in December 2018, US$7,688 in March 2019, US$6,231 in June 2019, US$4,549 in September 2019 and US$2,780 in December 2019. (e) Others Initial amount of the transaction Identification Issue date (US$) Maturity Charges (% per year) 2019 2018 SACE (i) November-2018 295,125 November-2028 Us dollar exchange variation + semianual Libor + 0.90 1,073,526 1,147,397 SACE (i) December-2019 150,000 December-2029 Us dollar exchange variation + semianual Libor + 0.90 605,448 MONFORTE (ii) April-2019 72,345 April-2026 Us dollar exchange variation + semianual Libor + 1.00 273,693 Total 517,470 1,952,667 1,147,397 (i) Credit facility contracted by the subsidiary Braskem Netherlands B.V. with guarantee from SACE Covered Facility Agreement, an Italian export credit agency. (ii) Credit facility contracted by Braskem S.A. with a term of 7 years. To consummate this facility, certain assets of the Company’s plants were pledged to the financial institution in amount higher than financing. (f) Payment schedule The maturity profile of the long-term amounts is as follows: 2019 2018 2020 1,748,531 2021 380,324 3,933,857 2022 1,549,976 2,256,444 2023 1,416,730 2,355,549 2024 4,418,409 3,336,032 2025 369,725 234,270 2026 350,320 234,296 2027 297,382 205,157 2028 5,314,976 5,028,265 2029 71,326 2030 and thereafter 14,072,884 4,828,319 Total 28,242,052 24,160,720 (g) Guarantees Braskem gave collateral for part of its borrowings as follows: Total Total Loans Maturity debt 2019 guaranteed Guarantees BNB March-2023 24,542 24,542 Bank surety BNDES January-2021 19,998 19,998 Mortgage of plants, land and property, pledge of machinery and equipment FUNDES June-2020 15,976 15,976 Mortgage of plants, land and property, pledge of machinery and equipment FINEP July-2024 33,783 33,783 Bank surety FINAME April-2021 324 324 Pledge of equipment FINISA December-2023 4,475 4,475 Bank surety BNB-FNE December-2027 5,582 5,582 Bank surety and pledge of reserve liquidity fund. Other July-2021 237 237 Pledge of equipment Total 104,917 104,917 Braskem S.A. has fully and unconditionally guaranteed the debt securities issued by Braskem Finance, Braskem America Finance and Braskem Netherlands Finance B.V. 100-percent-owned subsidiaries of Braskem. There are no significant restrictions on the ability of Braskem to obtain funds from these subsidiaries. |
17 Braskem Idesa Financing
17 Braskem Idesa Financing | 12 Months Ended |
Dec. 31, 2019 | |
Braskem Idesa Financing | |
Braskem Idesa Financing | 17 Braskem Idesa financing Principal amount US$ Identification Maturity Charges (% per year) 2019 2018 Project finance Project finance I 700,000 February-2027 US dollar exchange variation + quarterly Libor + 3.25 (i) 2,149,002 2,335,825 Project finance II 210,000 February-2027 US dollar exchange variation + 6.17 608,260 657,689 Project finance III 600,000 February-2029 US dollar exchange variation + 4.33 (ii) 1,849,896 1,983,113 Project finance IV 660,000 February-2029 US dollar exchange variation + quarterly Libor + 3.88 (iii) 2,078,545 2,225,042 Project finance V 400,000 February-2029 US dollar exchange variation + quarterly Libor + 4.65 (iv) 1,326,901 Project finance VI 89,994 February-2029 US dollar exchange variation + quarterly Libor + 2.73 (iv) 297,158 Project finance VII 533,095 February-2029 US dollar exchange variation + quarterly Libor + 4.64 (iv) 1,768,389 Total under current liabilities 3,193,089 6,685,703 10,594,117 Bond 900,000 November-2029 US dollar exchange variation + 7.45 3,640,381 Transactions costs (344,358) (89,525) Total 9,981,726 10,504,592 Current liabilities 744,408 10,504,592 Non-current liabilities 9,237,318 Total 9,981,726 10,504,592 (i) Partial prepayment of US$10,344. (ii) Partial prepayment of US$8,866. (iii) Partial prepayment of US$12,856. (iv) Prepaid. On December 2, 2019, Braskem Idesa issued US$900 million in bonds (R$3,796 million) with maturity in November 2029 and interest rate of 7.45% p.a. The issue was priced at 99.65% of face value, which represents a yield of 7.5% p.a. The transaction costs associated with the bond issue, in the amount of approximately US$71 million (R$299 million) were registered initially as a reduction in liabilities, so the debt is amortized over the term of the agreement by its effective interest rate (8.24% p.a.). The proceeds from the issue were used to fully settle or to partially prepay of installments of the Project Finance debt contracted for the capital expenditures in the Braskem Idesa petrochemical complex. In line with the Company’s Financial Policy, the investment in the Braskem Idesa petrochemical complex was financed under a Project Finance model, under which the construction loan is paid exclusively using the cash generated by the company itself and the shareholders provide limited guarantees. This financing includes the guarantees typical to Project Finance transactions, such as assets, receivables, cash generation and other rights of Braskem Idesa. The financing also contains various other covenants typical to contracts of this kind. On the reporting date of the consolidated financial statements as of December 31, 2018, certain non-monetary obligations established in the contracts remained unfulfilled. As a result, the Company continued to classify to current liabilities the entire balance of the loan, in the amount of R$9,554,476, in compliance 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 entitles creditors to request from Braskem Idesa 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 their original maturity schedule. On October 9, 2019, a Waivers & Consent package was approved by the Intercreditor Agend on behalf of the Lenders, thus extending the dates for achieving the Guaranteed Physical Completion Date from November 30, 2016 to December 31, 2020 and the Guaranteed Financial Completion Date from December 31, 2016 to December 31, 2020. The approval of the Waivers & Consent package allows Braskem Idesa to reclassify the Senior Debt from current to non-current liabilities according to the original maturity. The following amortization schedule presents the original long-term maturities on December 31, 2019. In 2018, part of the debt was presented in current liabilities, with early maturities arising from the aforementioned breach of contractual obligations: 2019 2018 2020 1,016,916 2021 800,752 1,161,108 2022 699,090 968,519 2023 892,568 1,280,154 2024 978,479 1,385,087 2025 883,333 1,381,192 2026 743,566 1,194,964 2027 329,718 582,393 2028 257,117 482,038 2029 and thereafter 3,652,695 102,105 Total 9,237,318 9,554,476 |
18 Debentures
18 Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debentures | |
Debentures | 18 Debentures Issue date Issuer Series Maturity Annual financial charges (%) 2019 2018 March-2013 DAC Single March-2025 IPCA + 6% 202,992 210,506 September-2013 Cetrel Single September-2025 126.5% of CDI 71,575 84,003 274,567 294,509 Current liabilities 46,666 27,732 Non-current liabilities 227,901 266,777 Total 274,567 294,509 (a) Payment schedule The maturity profile of the long-term debentures is as follows: 2019 2018 2020 44,811 2021 52,078 50,722 2022 52,100 50,745 2023 52,125 50,769 2024 52,153 50,796 2025 19,445 18,934 Total 227,901 266,777 (b) Guarantees The issuers entered into agreements for the fiduciary sale of credit rights, in which attached accounts are maintained to cover debt service for the three months of the installments coming due, under the terms of the instruments of assignment. |
19 Reconciliation of financing
19 Reconciliation of financing activities in statement of cash flow | 12 Months Ended |
Dec. 31, 2019 | |
Reconciliation Of Financing Activities In Statement Of Cash Flow | |
Reconciliation of financing activities in statement of cash flow | 19 Reconciliation of borrowing activities in the statement of cash flow Current and non-current Borrowings, debentures and Braskem Idesa financing Total borrowings Braskem Idesa Other financial Borrowings Debentures and debentures financing Lease Dividends liabilities Balance at December 31, 2018 24,898,156 294,509 25,192,665 10,504,592 100,557 672,395 Acquired 20,586,103 20,586,103 3,497,622 499,999 Payments (17,402,284) (23,125) (17,425,409) (4,398,453) (454,190) (668,904) Cash used in financing activities 3,183,819 (23,125) 3,160,694 (900,831) (454,190) (668,904) 499,999 Other changes Interest paid (1,440,754) (22,488) (1,463,242) (646,827) (128,376) Interest and monetary and exchange variations, net 2,292,120 25,671 2,317,791 203,450 121,061 16,934 Initial adoption on January 1, 2019 2,191,908 Acquired 911,619 Disposal (122,488) Currency translation adjustments 83,635 83,635 821,342 56,805 Additional dividends of subsidiary 5,125 Prescribed dividends (2,009) Other (105) 935,001 3,183 938,184 377,965 3,030,529 3,011 16,934 Balance at December 31, 2019 29,016,976 274,567 29,291,543 9,981,726 2,676,896 6,502 516,933 |
20 Financial instruments
20 Financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 20 Financial instruments (a) Recognition and initial measurement The Company adopted IFRS 9 - Financial Instruments to replace IAS 39 - Financial Instruments: Recognition and Measurement on January 1, 2018. The changes made to the Company's accounting policies are described below, as well as their impacts on the consolidated financial statements. (b) Classification and subsequent measurement Financial Assets On initial recognition, a financial asset is classified as measured at: amortised cost; fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or fair value through profit or loss (FVTPL). The standard eliminates the following categories that exist under IAS 39: held to maturity, held for trading, loans and receivables and available for sale. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: (i) It is held within a business model whose objective is to hold assets to collect contractual cash flows; and (ii) Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: ( i) Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. Financial assets – Subsequent measurement and gains and losses For subsequent measurement purposes, financial assets are classified into four categories: (i) Financial assets at amortized cost (debt instruments); (ii) Financial assets at fair value through other comprehensive income with reclassification of accumulated gains and losses (debt instruments); (iii) Financial assets designated at fair value through other comprehensive income, without reclassification of gains and losses accumulated at the time of derecognition (equity instruments); and (iv) Financial assets at fair value through profit or loss. Financial liabilities - Classification, subsequent measurement and gains and losses Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. (c) Derecognition Financial Asset The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Company enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial Liabilities The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. (d) Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. (e) Deratives financial instruments and hedge accounting The Company holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in profit or loss. The Company designates certain derivatives as hedging instruments to hedge the variability in cash flows associated with highly probable forecast transactions arising from changes in foreign exchange rates and interest rates and certain derivatives and non-derivative financial liabilities as hedges of foreign exchange risk on a net investment in a foreign operation. At inception of designated hedging relationships, the Company documents the risk management objective and strategy for undertaking the hedge. The Company also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. Cash flow hedge When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in OCI and accumulated in the hedging reserve. The effective portion of changes in the fair value of the derivative that is recognised in OCI is limited to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in the hedging reserve remains in equity until, for a hedge of a transaction resulting in the recognition of a non-financial item, it is included in the non-financial item’s cost on its initial recognition or, for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future cash flows affect profit or loss. If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in the hedging reserve and the cost of hedging reserve are immediately reclassified to profit or loss. 20.1 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) Financial assets classified as fair value through profit and loss or as fair value through other comprehensive income 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, mostly classified as amortized cost, corresponds to their respective carrying amounts due to the short-term maturity of these instruments. When purchase or sale prices include material financial charges, the securities are adjusted to their present value. (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. 20.2 Non-derivative financial instruments and other liabilities Fair value Book value Fair value Note Classification by category hierarchy 2019 2018 2019 2018 Cash and cash equivalents 5 Cash and banks Amortized cost 2,303,231 2,228,964 2,303,231 2,228,964 Financial investments in Brazil Fair value through profit or loss Level 2 1,963,185 1,754,561 1,963,185 1,754,561 Financial investments abroad Fair value through profit or loss Level 2 2,537,464 1,564,112 2,537,464 1,564,112 6,803,880 5,547,637 6,803,880 5,547,637 Financial investments 6 LFT´s and LF´s Fair value through profit or loss Level 2 1,588,426 2,247,272 1,588,426 2,247,272 Time deposit investments Amortized cost Level 2 38,759 49,630 38,759 49,630 Other Fair value through profit or loss Level 2 70,027 70,709 70,027 70,709 1,697,212 2,367,611 1,697,212 2,367,611 Trade accounts receivable 7 Amortized cost 2,246,248 3,045,463 2,246,248 3,045,463 Trade accounts receivable 7 Fair value through profit or loss Level 2 60,403 47,540 60,403 47,540 Trade payables 15 Amortized cost 9,120,826 8,378,504 9,120,826 8,378,504 Borrowings 16 Amortized cost Foreign currency - Bond Level 1 24,583,325 21,930,575 25,790,532 22,028,040 Foreign currency - other borrowings Level 2 3,567,336 2,578,147 3,218,410 2,277,069 Local currency Level 2 1,367,538 736,388 1,075,803 598,926 29,518,199 25,245,110 30,084,745 24,904,035 Braskem Idesa borrowings 17 Amortized cost Project Finance Level 2 6,685,703 10,594,117 6,116,434 9,367,878 Bond Level 1 3,640,381 3,892,878 - 10,326,084 10,594,117 10,009,312 9,367,878 Debentures 18 Amortized cost Level 2 274,567 294,509 293,282 239,976 Loan to non-controlling 9 Amortized cost 2,395,887 2,183,830 2,395,887 2,183,830 Leniency agreement 25 Amortized cost 1,742,268 1,842,518 1,742,268 1,842,518 Provision - geological event in Alagoas 26 Amortized cost 3,383,067 3,383,067 Other financial liabilities 28 Amortized cost 516,933 516,933 20.3 Derivative financial instruments 20.3.1 Changes Net Net Operation characteristics (Asset)/ (Asset)/ Fair value Principal exposure Accumulated Liability Change in Financial Liability Identification Note hierarchy Derivatives OCI (equity) 2018 fair value settlement 2019 Non-hedge accounting transactions Exchange swap Level 2 Argentine peso Dollar 517 172 (393) 296 NCE swap Level 2 Real Dollar 5,231 14,484 5,889 25,604 5,748 14,656 5,496 25,900 Hedge accounting transactions Dollar put option (a.i) Level 2 Real Dollar 2,297 36,139 (38,437) (2,298) Dollar swap (a.ii) Level 2 Real Dollar+Fixed rates (38,620) 183,398 (64,133) (80,645) 38,620 Interest rate swaps (a.iii) Level 2 Libor Fixed rates (234,372) (67,664) 77,998 16,373 26,707 Dollar swap CDI (a.ii) Level 2 Real Dollar+Fixed rates (107,246) 107,246 107,246 (377,941) 151,873 82,674 (64,272) 170,275 Derivatives Current assets (27,714) (4,712) Non-current assets (46,664) (17,877) Current liabilities 70,305 49,251 Non-current liabilities 161,694 169,513 157,621 196,175 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, and are necessarily classified as "fair value through profit and loss". All hedge financial instruments held at December 31, 2019 were contracted on Over the Counter - OTC markets with large financial counterparties under global derivative contracts in Brazil or abroad. 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 IFRS 9. 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 call and put option On December 31, 2019, Braskem held a total notional amount of put options of R$1.9 billion, with an average strike price of 3.55 R$/US$. Simultaneously, the Company also held a total notional amount of call options of R$1.4 billion, with an average strike price of R$/US$4.88. The operations have a maximum term of 24 months. Dollar-denominated future sales in Brazilian real were designated for hedge accounting, with the months of revenue recognition always coinciding with the months of the options. (a.ii) Dollar Swap In 2018, the Company contracted foreign exchange derivative operations (“swaps”) in the aggregate amount of R$1.3 billion, with annual maturities over the following 5 years starting January 2019. The amount payable in January 2020 will be subject to the variation in the IPCA index. The remaining maturities are subject to the variation in the CDI. These operations were designated to cash flow hedge accounting, where the hedging instruments are foreign exchange derivatives and the hedged objects are highly probable future revenues in the domestic market subject to fluctuations in Brazilian real/U.S. dollar price. Accordingly, the mark-to-market adjustment of the effective portion of the hedge will be recognized under shareholders equity in the line “Other comprehensive income” and will be recognized in the financial result only upon the maturity of each installment. (a.iii) Hedge operation by the subsidiary Braskem Idesa related to Project Finance Interest rate swap linked to Libor Identification Nominal value Hedge Maturity Fair value, net US$ (interest rate per year) 2019 2018 Swap Libor I to VI 761,153 1.9825% Aug-2025 26,707 (67,664) Total 761,153 26,707 (67,664) Derivatives Current assets (21,000) Non-Current assets (46,664) Current liabilities 5,768 Non-Current liabilities 20,939 Total 26,707 (67,664) Braskem Idesa contracted swap operations with the purpose of offsetting part of the Libor variation arising from the financings mentioned in Note 16. This hedge operation shares the same guarantees with the Project Finance. 20.4 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 · February 2, 2019: Designation of US$0.2 billion of future sales with maturity in 2025 (hedged exchange rate of US$1: R$3.6694). · May 2, 2019: Designation of US$0.2 billion of future sales with maturity in 2025 (hedged exchange rate of US$1: R$3.9650). · November 1, 2019: Discontinuation of hedge accounting of U$$1.6 billion of flows between 2021 and 2023 (discontinuation rate of US$1: R$3.9786). · November 1, 2019: Designation of US$1.8 billion of future sales with maturity between 2030 and 2032 (hedged exchange rate of US$1: R$3.9786). Therefore, on December 31, 2019, exports that were designated not yet realized and not discontinued are shown below: Total nominal value US$ 2020 724,000 2021 336,000 2023 200,000 2024 688,854 2025 400,000 2028 1,250,000 2030 800,000 2031 800,000 2032 200,000 5,398,854 The following table shows the changes in financial instruments designated for this hedge in the year: US$ Hedge 2018 discontinued Designations 2019 Designated balance 5,550,205 (2,351,351) 2,200,00 5,398,854 The Company considers these exports in the selected period (2020/2032) as highly probable, based on the following factors: · In recent years, Braskem S.A. exported an average US$3.1 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. On December 31, 2019, the maturities of financial liabilities designated, within the scope of the consolidated balance sheet, were as follows: Total nominal value US$ 2020 724,000 2021 336,000 2023 200,000 2024 688,854 2025 400,000 2028 1,250,000 2030 800,000 2031 800,000 2032 200,000 5,398,854 The following table provides the balance of discontinued hedge accounting in the year ended December 31, 2019 (US$1,617,371), which is recorded in Braskem Idesa’s shareholders’ equity under “Other comprehensive income” and will be transferred to financial income (expenses) in accordance with the schedule of future hedged sales: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value Hedge descontinued - Fourth quarter 2019 1,617,371 2.0017 3.9786 3,197,381 1,617,371 3,197,381 To ensure the continuity of the hedging relationship, the Company plans to refinance and/or replace 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 IFRS 9. This explains the fact that liabilities designated for hedge are not necessarily equivalent to the exports designated in the year. 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, 2019: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value First quarter 150,000 2.0017 3.7448 261,465 Second quarter 183,495 2.0017 3.9043 349,118 Third quarter 183,495 2.0017 3.7734 325,098 Fourth quarter 216,990 2.0017 4.0729 449,430 733,980 1,385,111 The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” of this hedge are as follows: Exchange Income tax and Net variation social contribution effect At December 31, 2018 (8,937,217) 3,038,653 (5,898,564) Exchange variation recorded in the period on OCI / Income tax and social contribution (856,068) 291,063 (565,005) Exchange variation transferred to profit or loss / Income tax and social contribution 1,385,121 (470,941) 914,180 At December 31, 2019 (8,408,164) 2,858,775 (5,549,389) The realization expected for 2020 will occur through the payments of financial instruments in conformity with exports made, and the exchange variation recorded in “Other comprehensive income” will be recycled to the financial results. For all quarters of the year, realization will be made at the discounted cash flow rates. The quarterly schedule of hedged exports in the next quarter of 2020 follows: Total nominal value US$ First quarter 181,000 Second quarter 181,000 Third quarter 181,000 Fourth quarter 181,000 724,000 (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 lenders 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 35% 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 17). 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, 2019, designated and unrealized sales were as follows: Nominal value US$ 2020 179,982 2021 208,901 2022 183,300 2023 230,967 2024 251,869 2025 227,716 2026 192,592 2027 89,963 2028 71,898 2029 15,219 2030 225,000 2031 225,000 2032 225,000 2033 225,000 2,552,407 The following table shows the changes in financial instruments designated for this hedge in the year: US$ Discontinued Realization of the New 2018 hedge discontinued hedge designations 2019 Designated balance 2,708,856 (1,056,869) 420 900,000 2,552,407 In 2019, the designated financial liabilities to hedge future sales were distributed as follows: Nominal value US$ 2020 179,982 2021 208,901 2022 183,300 2023 230,967 2024 251,869 2025 227,716 2026 192,592 2027 89,963 2028 71,898 2029 15,219 2030 225,000 2031 225,000 2032 225,000 2033 225,000 2,552,407 The following table provides the amounts of hedge accounting discontinued in the year ended December 31, 2019 (US$838,596), 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 discontinued in May-2016 10,996 13.4541 17.9915 49,893 10,647 Hedge discontinued in Dec-2019 795,533 13.6663 19.6113 4,729,441 1,009,263 Hedge discontinued in Dec-2019 32,066 13.4541 19.3247 188,247 40,172 838,595 4,967,581 1,060,082 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 year ended December 31, 2019: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value First quarter 56,383 13.6544 19.2153 313,540 60,811 Second quarter 56,383 13.6544 19.0768 305,731 63,995 Third quarter 57,629 13.6547 19.6178 343,647 70,181 Fourth quarter 58,875 13.6549 19.3564 335,676 72,159 229,270 1,298,594 267,146 The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” are as follows: Exchange Net variation Income tax effect At December 31, 2018 (3,292,388) 988,451 (2,303,937) Exchange variation recorded in the period on OCI / Income tax 464,806 (139,442) 325,364 Exchange variation transferred to profit or loss / Income tax 267,146 (80,144) 187,002 At December 31, 2019 (2,560,436) 768,865 (1,791,571) Effectiveness tests were conducted as set forth in IFRS 9 and all operations were deemed effective in reducing the dispersion of revenue from sales designated for hedge, when evaluated in Pesos. The realization expected for 2020 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 2020: Nominal value US$ First quarter 61,369 Second quarter 65,612 Third quarter 69,855 Fourth quarter 69,855 266,691 20.5 Credit quality of financial assets (a) Trade accounts receivable Virtually none of Company’s clients have risk ratings assigned by credit rating agencies. For this reason, the Company developed its own credit rating system for all accounts receivable from clients in Brazil and abroad. On December 31, 2019 and 2018, considering the stages 1, 2 and 3 of expected credit losses, the percentage of trade accounts receivable by risk ratings was as follows: (%) 2019 2018 1 Minimal Risk 74.23 67.50 2 Low Risk 14.89 18.60 3 Medium Risk 7.82 7.61 4 High Risk 1.06 5.02 5 Very High Risk (i) 1.99 1.27 (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 External market market December 31, 2019 0.05% 0.17% December 31, 2018 0.08% 0.45% December 31, 2017 0.08% 0.19% This calculation considers the amount of accounts receivable overdue more than 30 days, 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, and financial investments, the Company 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. 2019 2018 Financial assets with risk assessment AAA 5,475,075 4,294,100 AA+ 109,933 1,175,098 AA 79,136 AA- 1,458,424 1,076 A+ 159,848 1,103,647 A 121,132 165,899 A- 1,171,746 169,580 BBB+ 917,541 BB+ 252 BB- 29 8,496,158 7,906,358 Financial assets without risk assessment Other financial assets with no risk assessment (i) 4,934 8,890 4,934 8,890 Total 8,501,092 7,915,248 (i) Investments approved by the Management of the Company, in accordance with the financial policy. 20.6 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, 2019, the main risks that can affect the value of Company’s financial instruments are: · U.S. dollar/Brazilian real exchange rate; · Mexican peso/Brazilian real exchange rate; · Euro/Brazilian real exchange rate; · U.S. dollar/Euro exchange rate; · Libor floating interest rate; · Selic interest rate; · CDI interest rate; · TJLP interest rate; and · IPCA interest rate. For the purposes of the risk sensitivity analysis, the Company 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 the Company which is defined as the loss that could result in one month as from December 31, 2019, with a probability of 5%, and under normal market conditions, was estimated by the Company at US$15,885 for put options and call options (Note 20.3.1 (a.i)), US$4,456 for the swap of Libor related to Braskem Idesa project, US$32,646 for Dollar swap (Note 20.3.1(a.ii)) and US$8,226 for NCE swap. (c) Selection of scenarios (c.1) Probable scenario The Focus The probable scenario for the TJLP is remaining at the current level of 5.09%. Since the Market Readout survey does not include consensus forecasts for the Libor rate, the average projection of the U.S. Federal Reserve for the Federal Funds rate was used, published in December 2019, plus the historical difference between such rate and Libor. For adverse scenarios, increases of 25% and 50% from current market levels were adopted. (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 (345,206) (7,055,927) (14,111,853) Braskem Idesa borrowings (81,773) (1,671,426) (3,342,851) Export prepayments (10,559) (215,823) (431,647) Investments (9,190) (187,844) (375,688) SACE (20,536) (419,744) (839,487) Dollar put option (9,931) (478,958) (1,685,285) Dollar swap (4,033) (82,372) (164,742) Swap NCE (5,271) (107,743) (215,486) Dollar swap x CDI (16,809) (345,832) (691,949) Financial investments abroad (45,323) (926,395) (1,852,791) Libor floating interest rate Export prepayments (7,625) (38,124) (76,248) Swaps (5,730) 37,283 73,854 Braskem Idesa borrowings (89,189) (445,944) (891,887) CDI interest rate Export credit notes 12,982 (20,906) (41,331) Debentures 5,778 (6,495) (13,154) Financial investments in local currency 41,830 83,679 IPCA interest rate Debentures 11,644 (18,569) (37,943) TLP interest rate FINAME (4) (7) Selic interest rate Leniency agreement (53,042) (106,946) |
21 Taxes payable
21 Taxes payable | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Payable | |
Taxes payable | 21 Taxes payable 2019 2018 Brazil IPI 58,945 64,672 ICMS 184,728 239,126 PIS and COFINS 150,664 145,090 Other 37,857 36,454 Other countries Value-added tax 11,933 7,482 Other 8,112 25,085 Total 452,239 517,909 Current liabilities 322,886 432,005 Non-current liabilities 129,353 85,904 Total 452,239 517,909 |
22 Income tax (''IR'') and soci
22 Income tax (''IR'') and social contribution (''CSL'') | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Ir And Social Contribution | |
Income tax (''IR'') and social contribution (''CSL'') | 22 Income tax (“IR”) and social contribution (“CSL”) (a) Reconciliation of the effects of income tax and social contribution on profit and loss 2019 2018 2017 Income (loss) before IR and CSL (4,603,068) 3,604,736 5,264,577 IR and CSL at the rate of 34% 1,565,043 (1,225,610) (1,789,956) Permanent adjustments to the IR and CSL calculation basis IR and CSL on equity in results of investees 3,469 (302) 2,201 Thin capitalization (221,337) Deferred tax losses and negative base 39,092 Tax benefits (Sudene and PAT) 87,186 Difference of rate applicable to each country (i) 293,647 468,129 250,130 Fine in leniency agreement (25,390) (117,140) Other permanent adjustments 347,238 21,232 170,805 Effect of IR and CSL on results of operations 1,962,670 (736,551) (1,357,682) Breakdown of IR and CSL: Current IR and CSL expense Current year (251,641) (512,951) (869,493) Changes in estimates related to prior years 22,696 3,177 (228,945) (509,774) (869,493) Deferred IR and CSL expense Origination and reversal of temporary differences 2,062,501 (369,546) (488,189) Tax losses (IR) and negative base (CSL) 129,114 142,769 2,191,615 (226,777) (488,189) Total 1,962,670 (736,551) (1,357,682) Effective rate 42.6% 20.4% 25.8% (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) 2019 Braskem Alemanha Germany 31.18 Braskem America e Braskem America Finance USA 21.00 Braskem Argentina Argentina 30.00 Braskem Chile Chile 27.00 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 (b) Deferred income tax and social contribution Deferred income 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. (b.i) Changes in balances of deferred tax assets and liabilities Assets As of December Impact on the Impact on the As of December Impact on the Other Other As of December Tax losses (IR) and negative base (CSL) 1,878,809 142,769 2,021,578 129,114 2,150,692 Goodwill amortized 59,335 (20,053) 39,282 (17,605) 21,677 Exchange variations 388,293 (348,334) 39,959 1,092,392 1,132,351 Temporary adjustments (i) 155,540 646,630 802,170 1,555,097 2,357,267 Business combination 183,785 (24,213) 159,572 (74,033) 85,539 Tax credits 176,290 176,290 110,080 (236,537) 49,833 Other 62,288 62,288 2,665,762 573,089 3,238,851 2,857,333 (236,537) 5,859,647 Liabilities Amortization of goodwill based on future profitability 712,873 10,463 723,336 (651) 722,685 Tax depreciation 960,202 49,710 1,009,912 893,115 1,903,027 Exchange variations Temporary adjustments 231,822 44,878 276,700 155,887 432,587 Business combination 9,664 (8,362) 1,302 1,302 Present value adjustment and amortized cost 67,072 (9,905) 57,167 (45,891) 11,276 Hedge accounting 700,351 (700,351) (419,269) 419,269 Amortization of fair value adjustments on 519,623 (75,548) 444,075 (50,302) 393,773 Long term incentive plan - LTI (2,072) 2,072 (5,843) 5,843 Health care 43,734 (43,734) Other 4,273 90,351 (90,841) 3,783 94,938 (93,284) 5,437 2,505,529 799,866 (789,120) 2,516,275 665,718 288,094 3,470,087 Net 160,233 (226,777) 789,120 722,576 2,191,615 (288,094) (236,537) 2,389,560 Presentation in the balance sheet: Non-current assets 1,165,726 1,104,158 2,662,596 (-) Non-current liabilities 1,005,493 381,582 273,036 (i) Temporary adjustments refers to the provision for geological events in Alagoas, contingencies, impairment of assets, among other provisions. (b.ii) Offset for the purpose of presentation in the balance sheet 2019 Headquarters IR and CSL (Country) Tax calculation Offsetting Balance Assets Braskem S.A. Brazil 3,679,547 (2,072,130) 1,607,417 Braskem Argentina Argentina 1,010 1,010 Braskem Alemanha Germany 28,176 28,176 Braskem Chile Chile 162 (162) - Braskem Idesa Mexico 2,056,723 (1,117,641) 939,082 Braskem México Serviços Mexico 9,677 9,677 Cetrel Brazil 24,313 (5,846) 18,467 DAC Brazil 60,039 (1,272) 58,767 5,859,647 (3,197,051) 2,662,596 Liabilities Braskem S.A Brazil 2,072,130 (2,072,130) Braskem America USA 271,285 271,285 Braskem Chile Chile 1,913 (162) 1,751 Braskem Idesa Mexico 1,117,641 (1,117,641) Cetrel Brazil 5,846 (5,846) DAC Brazil 1,272 (1,272) 3,470,087 (3,197,051) 273,036 2018 Headquarters IR and CSL (Country) Tax calculation Offsetting Balance Assets Braskem S.A. Brazil 2,126,658 (2,126,658) Braskem Argentina Argentina 11,337 11,337 Braskem Alemanha Germany 11,251 11,251 Braskem Chile Chile 308 (268) 40 Braskem Idesa Mexico 980,762 980,762 Braskem México Serviços Mexico 9,409 9,409 Cetrel Brazil 26,478 (6,645) 19,833 DAC Brazil 72,648 (1,122) 71,526 3,238,851 (2,134,693) 1,104,158 Liabilities Braskem S.A Brazil 2,239,727 (2,126,658) 113,069 Braskem America USA 268,513 268,513 Braskem Chile Chile 268 (268) Cetrel Brazil 6,645 (6,645) DAC Brazil 1,122 (1,122) 2,516,275 (2,134,693) 381,582 (c) Realization of deferred income tax and social contribution Balance at Realization December 31, 2025 2028 Assets Note 2019 2020 2021 2022 2023 2024 to 2027 thereafter Tax losses (IR) and negative base (CSL) (i) 2,150,692 166,865 287,200 200,515 219,314 449,772 818,425 8,601 Goodwill amortized 21,677 2,223 2,223 2,223 2,223 2,223 2,224 8,338 Exchange variations (ii) 1,132,351 107,843 107,843 107,843 107,843 166,325 387,626 147,028 Temporary adjustments (iii) 2,357,267 536,934 660,491 113,454 66,930 495,380 484,078 Business combination (iv) 85,539 28,510 28,510 28,510 9 Tax credits (v) 49,833 35,746 14,087 Other 62,288 62,288 5,859,647 878,121 1,100,354 452,545 396,310 1,113,700 1,692,353 226,264 Liabilities Amortization of goodwill based on future profitability (vi) 722,685 722,685 Tax depreciation (vii) 1,911,214 135,128 135,128 135,128 135,128 135,128 135,128 1,100,446 Business combination (ix) 1,302 1,302 Present value adjustment and amortized cost (x) 11,276 6,959 4,317 Amortization of fair value adjustments on the assets from the acquisiton of Braskem Qpar 393,773 44,825 44,825 44,825 44,825 44,825 44,825 124,823 Other 5,437 5,437 3,470,087 283,581 303,184 200,379 192,003 269,141 267,106 1,954,693 Net 2,389,560 594,540 797,170 252,166 204,307 844,559 1,425,247 (1,728,429) Basis for constitution and realization: (i) In Brazil, the use of tax losses is limited to 30% of the taxable profit for the year; however, the balance does not expire. Meanwhile, in Mexico there is no limit on the amount that can be used in the year; however, the tax losses expire in 10 years. The realization of Tax Losses consider the taxable profit expected by the company over a 10-year horizon. (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 the recognition of 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. For 2019, the provisioning of expenses with contingencies and damages in Alagoas produced a material impact. (iv) Refers to: tax-related goodwill and contingencies recognized from business combinations. Tax realization of goodwill occurs upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. (v) Tax credits arising from the balance of tax paid on profit abroad and the worker’s food program. (vi) Goodwill for the future profitability of the merged companies is not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or upon divestment. (vii) 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. (viii) Provisions whose taxation will occur in subsequent periods. (ix) 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. (x) Additional adjustment, upon adoption of Law 11,638/07, of property, plant and equipment, whose tax realization is based on the depreciation of assets, as well as adjustment to present value of assets and liabilities overdue more than 89 days. Annually, the Company revises its projection of taxable income based on its Business Plan (Note 3.2.1). If this projection indicates that the taxable income will not be sufficient to absorb the deferred taxes, the amount corresponding to portion of the deferred tax that will not be recovered is written off. |
23 Sundry provisions
23 Sundry provisions | 12 Months Ended |
Dec. 31, 2019 | |
Sundry Provisions | |
Sundry provisions | 23 Sundry provisions 2019 2018 Provision for customers rebates 84,110 88,026 Provision for environmental damages 365,155 307,546 Other 55,941 28,970 Total 505,206 424,542 Current liabilities 203,134 191,536 Non-current liabilities 302,072 233,006 Total 505,206 424,542 (a) Client bonus Some sales agreements of Braskem provide for a rebate, in products, should certain 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) Provision for environmental damages Braskem has a provision for environmental damages in some of its industrial plants. The amount provisioned corresponds to the best estimate of the expenses required to repair the damages. (c) Changes in provisions Recovery of environmental Bonus damage Other Total December 31, 2017 87,913 300,249 25,510 413,672 Additions, inflation adjustments and exchange variation, net 104,431 89,395 8,593 202,419 Write-offs through usage and payments (104,318) (82,098) (5,133) (191,549) December 31, 2018 88,026 307,546 28,970 424,542 Additions, inflation adjustments and exchange variation, net 74,299 144,617 34,194 253,110 Write-offs through usage and payments (78,215) (87,008) (7,223) (172,446) December 31, 2019 84,110 365,155 55,941 505,206 |
24 Contingencies
24 Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Contingencies Abstract | |
Contingencies | 24 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 3.2.4. Proceedings assessed as having a possible chance of loss are not provisioned for. In addition, Braskem also is a plaintiff to several lawsuits. In these cases, the Company discloses the contingent asset when the receipt of economic benefits is probable, see note 10.c. However, when the realization of the benefit is virtually certain, the related asset no longer constitutes a contingent asset, and as such amount is recognized. Any changes in the court’s understanding of the position could cause future impacts on the consolidated financial statements of the Company due to such proceedings. 24.1 Claims with probable chance of loss and contingent liabilities arising from business combinations 2019 2018 Labor claims (a) 315,437 177,751 Tax claims (b) Normal operations IR and CSL 22,284 20,717 PIS and COFINS (i) 196,356 156,796 ICMS 70,645 64,468 Other tax claims 18,475 23,237 307,760 265,218 Business Combination IR and CSL 3,581 1,500 PIS and COFINS (ii) 63,291 59,739 ICMS - interstate purchases (iii) 297,456 280,622 364,328 341,861 Corporate claims (c) 118,485 111,049 Civil claims and other 45,514 69,438 1,151,524 965,317 (a) Labor claims The provision on December 31, 2019 is related to 604 labor claims, including occupational health and security cases (477 in 2018). The Management of Braskem, based on its assessment and of its external 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, 2019, the main claims are the following: (i) Non-cumulative PIS and COFINS 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 of Brazil (“RFB”), mainly related to the following topics: · Offsetting Statements (“DCOMPs”), with credits in amounts that exceeded those declared in the respective Statement of Calculation of Social Contributions (“DACONs”); · freight expenses: not associated with sales operations and/or operations without proven association and contracted in the country, but concerning imported products; · credits arising from the acquisition of property, plant and equipment mostly related to acquired companies, whose documentation was not found; · taxation of taxable revenues incorrectly classified as tax exempt, subject to zero tax rate or not taxed. On December 31, 2019, the balance of this provision was R$193,139 (R$154,673 in 2018). The Management of Braskem, based on its assessment and of its 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 2022. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (ii) 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, 2019, the balance of this provision was R$63,291 (R$59,739 in 2018). The Management of Braskem, based on its assessment and of its external legal advisors, assessed that the disputes related to the highlighted matters have a likelihood of loss greater than 50%, estimated the conclusion of administrative proceedings in 2023 and of court decisions in 2030. Guarantees were offered for these claims in the form of bank guarantee and finished products, which, together, cover the amount of court claims. (iii) 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 in the amount of 30% on R$480,389, which corresponds to the sum of the amounts indicated in tax documents whose outflow of goods was not identified by the tax authority, entered 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 under a specific deficiency notice, 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 2015, 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 debt being reduced by 20% and (ii) in the other claim, the tax liability was suspended. On December 31, 2019, the balance of this provision was R$297,456 (R$280,622 in 2018). The Management of Braskem, based on its assessment and of its external legal advisors, have assessed that the disputes related to the highlighted matters have a likelihood of loss greater than 50% and estimated the conclusion of legal proceedings in 2025. These lawsuits are secured by a guarantee insurance. (c) Corporate claims On December 31, 2019, 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 claims were granted, the amount effectively owed by Braskem began to be calculated. During this phase, the judge recognized that dividends and bonus related to the years prior to 1987 had become time-barred. However, the Alagoas State Court of Appeals reviewed the decision and considered that amounts related to such period also were owed by Braskem. 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. In April 2019, the case was distributed and held by the Judge-Rapporteur under advisement. On December 31, 2019, Braskem recognized a provision of R$64,305. (d) Changes in claims with probable chance of loss Corporate Civil claims Labor claims Tax claims claims and other Total December 31, 2017 250,075 632,177 135,779 74,614 1,092,645 Additions, inflation adjustments and exchange variation 80,685 77,236 8,676 5,001 171,598 Payments (70,553) (40,768) (31,680) (173) (143,174) Reversals (82,456) (61,566) (1,726) (10,004) (155,752) December 31, 2018 177,751 607,079 111,049 69,438 965,317 Additions, inflation adjustments and exchange variation 322,102 98,618 7,436 11,465 439,621 Payments (83,189) (6,348) (3,918) (93,455) Reversals (101,227) (27,261) (31,471) (159,959) December 31, 2019 315,437 672,088 118,485 45,514 1,151,524 24.2 Claims with possible chance of loss Note 2019 2018 Civil claims - Alagoas 26 33,973,320 Civil claims - Other (a) 769,126 691,636 Tax claims (b) 6,199,283 7,125,071 Labor claims 642,229 860,061 Other lawsuits (c) 546,743 643,982 Total 42,130,701 9,320,750 (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, involving the amount of R$61.2 million. The action seeks to indemnify the country for collective pecuniary damages and pain and suffering. A decision was rendered in the principal case denying all claims made by the Federal Prosecution Office (MPF). Against such decision, the MPF filed a civil appeal, which was dismissed by majority of the Fifth Panel of the Regional Federal Appellate Court – 1 st Region. Therefore, under Article 942 of the Brazilian Code of Civil Procedure, the record was referred to the 5 th Extended Panel, which also, by majority vote, dismissed the MPF’s appeal and upheld the decision. The MPF filed special appeal, which was dismissed. Against such decision, the MPF filed interlocutory appeal in special appeal, which was received by the STJ and registered as AREsp 1614987/DF. Since November 18, 2019, the case has been held by the Chief Justice of the STJ under advisement. (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, 2019, totaled R$65.8 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, 2019, the damages claimed in the lawsuit amounted to R$204.6 million. The Management of Braskem, based on its assessment and of its external legal advisors, 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. (iv) Hashimoto Public-Interest Civil Action The Public-Interest Civil Action was filed in June 2018 by the São Paulo State Public Prosecutor’s Office against the Company and other firms that operate in the Capuava Petrochemical Complex, claiming the reparation and/or remediation of environmental damages supposedly arising from the emission of pollutants into the air, as well as the joint judgement of companies that comprise said complex seeking environmental moral damages in the inflation-adjusted amount of R$126.5 million. The term for filing an answer has not yet begun, which will happen only after all defendants have been summoned. Based on the opinion of the external legal counsel handling the case, the Management believes that the lawsuit possibly will be dismissed within a period of eight years. No judicial deposit or other form of security was accrued for the case. (v) Recourse action of insurer Action for indemnity filed by the insurer of a client of the Company. The insurer seeks, in recourse, reimbursement for the amount paid to the client under the insurance agreement entered into with the client, whose amount adjusted as of December 31, 2019 is R$77.7 million. According to the Insurer, the losses sustained by the client, reimbursed by the insurer, allegedly were caused by products supplied by Braskem outside of specifications. The Management believes, supported by the opinion of external legal counsels responsible for handling the cases, that the lawsuits possibly will be dismissed within a period of up to eight years. No judicial deposit or any other type of guarantee has been made for this case. (b) Tax (i) PIS, COFINS, IR and CSL: 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. In November 2018, the tax-deficiency notice related to IRPJ/CSL was fully denied in a final and unappealable decision issued by CARF. In August 2019, part of the notification related to PIS/COFINS taxes was denied in a final and unappealable decision issued by CARF. On December 31, 2019, the updated value of the assessment amounted R$883 million. The Management of Braskem, based on its assessment and of its external legal advisors, estimates that the administrative proceeding should be concluded by 2020. There are no deposits or any other type of guarantee for this procedure, since it is still being discussed at the administrative level. (ii) IR and CSL – Charges with goodwill amortization The Company was served by the RFB 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. In May 2018 and November 2019, two of the proceedings was deemed partially invalid in a final and unappealable decision issued by CARF, which reduced liabilities by R$403 million. On December 31, 2019, the updated value of the tax deficiency notices amounted to R$1 billion. The assessment of possible 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 Management of Braskem, based on its assessment and of its external legal advisors, estimates 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 at the administrative level. (iii) Non-cumulative PIS and COFINS taxes The Company received a deficiency notice from the RFB 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 various acquisitions; and (v) property, plant and equipment. These matters have already been contested at the administrative level and comprise the period from 2006 to 2016. On December 31, 2019, the amount under discussion of these notices is R$1.2 million. The Management of Braskem, based on its assessment and of its external legal advisors, estimates that: (i) the administrative proceedings should be concluded by 2024, while the lawsuits should be concluded by 2030; 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 is no deposit or any other type of guarantee for proceedings that are still pending in the administrative instance, and the only lawsuit is secured by a guarantee insurance in the amount of R$30 million. (iv) Income Tax (IR) and Social Contribution (CSL) – Unlimited offsetting In December 2009, December 2013 and March 2017, the Company received tax deficiency notices claiming that 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 Corporate Income Tax and Social Contribution liabilities in merger operations, respectively, in November 2017, September 2008 and August 2013. In April 2019, one of the notices was dismissed in full by a final and unappealable decision issued by CARF, which resulted in a reduction of this contingency by R$407 million. On December 31, 2019, the updated value of the remainingtax deficiency notices amounted to R$348 million. The Company’s external legal advisors estimate that the administrative proceedings should be concluded by 2020. The only proceeding currently under litigation is expected to be concluded in 2027. 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, confirmed by a court decision. (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, Pernambuco and Alagoas. On December 31, 2019, the adjusted amounts of these claims total R$740 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 · usage of ICMS tax base below the level 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 payment represents 30% of the total contingency. The Management of Braskem, based on its assessment and of its external legal advisors, estimates 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 guarantee insurance in the amount of R$148 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, 2019, was R$167 million. The Company offered a guarantee of R$59 million. The Company’s external legal advisors estimate that the claims in the judicial sphere will be concluded by 2024. (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 – Federal Laws 2,445 and 2,449; and (v) the COFINS tax arising from the undue payment or payment in excess. On December 31, 2019, the adjusted amounts involved of these assessments total R$148 million. The Management of Braskem, based on its assessment and of its external legal advisors, estimates that: (i) these judicial proceedings are expected to be terminated in 2024; and (ii) in the event of an unfavorable decision to the Company, 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, that cover the amount exclusively involved in the claim. (viii) IRRF, IR and CSL – Commission expenses In December 2017, the Company received a tax deficiency notice from the RFB arising from: (i) the disallowance of commission expenses paid by Braskem 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, 2019, 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$133 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) IR and CSL – 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, 2019, the restated value of this deficiency notice amounted to R$103 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 2016 through 2019, the Company received notifications of individual fines imposed due to the use of credits from: i) non-cumulative PIS/COFINS taxes; ii) negative balances of IRPJ/CSLL taxes; iii) REINTEGRA credits; and iv) other credits, for offsets not approved by the Brazilian Federal Revenue. The matter is assessed as having a possible chance of loss due to favorable court precedents on the matter. On December 31, 2019, the restated value of these deficiency notices amounted to R$289 million. The Company’s external legal counsels estimate that the conclusion in the administrative level will occur in 2024. No deposit or other form of security was accrued for most of these claims, as they are still being discussed administratively. (xi) IRPJ/CSLL – Negative Balance – Offset The Company claims, at the administrative level, that RFB denies offsets seeking to settle federal taxes with credits arising from negative balance of IRPJ and CSLL. On December 31, 2019, the restated value of the taxes whose offset was not approved amounted to R$196 million. The Company’s external legal advisors estimate that the administrative proceeding should be concluded by 2024. There are no deposits or any other type of guarantee for this proceeding, since it is still being disputed at the administrative level. (xii) IPI and II – Customs difference In October 2002, the merged company Ipiranga Petroquímica received a tax-deficiency notice from RFB for contracting two different companies, one to provide parts and technology and the other to provide specialized labor for technical support, on the occasion of the construction of an industrial plant in Rio Grande do Sul, which, according to RFB, was allegedly conducted only to reduce the price of parts and technology used and, consequently, decrease the IPI and II payable. After the administrative proceeding was concluded with an unfavorable decision for the Company, the case was filed in the courts. On December 31, 2019, the restated value of the tax credit under discussion recorded amounted to R$82 million. The Company’s external legal advisors estimate that the lawsuit should be concluded by 2030. The Company offered to the Court a guarantee insurance that secures the entire amount in dispute. (xiii) PIS and COFINS – DCide-Fuels Tax Offset The Company is a party to lawsuits claiming PIS and COFINS tax liabilities arising from their offset using Cide-Fuels tax credits, as authorized under Federal Law 10,336/2001. On December 31, 2019, the adjusted value of these cases was R$144 million. The Company’s legal advisors estimate that these lawsuits will be concluded by 2030. The Company offered property in guarantee of all liabilities related to this matter. (xiv) Exports – Customs Fine – Fraudulent Interposition – IRPJ/CSLL – Income Not Reported In November 2018, the Company received a tax deficiency notice claiming corporate income tax (IRPJ) and social contribution on profits (CSLL) on products exported by Braskem Qpar S/A to Braskem Incorporated Limited, which resold such products abroad. The Federal Revenue Service understands that Braskem Incorporated Limited failed to report revenue when it made sales to clients abroad in an amount above that recorded in its accounting records. This allegedly unreported revenue was attributed directly to the Company, as the successor by merger of Braskem Qpar. Subsequently, based on this premise of income not reported, the tax authorities issued a second tax deficiency notice to impose a fine arising from the interposition of exports. On December 31, 2019, the adjusted value of these deficiency notices was R$75 million. The external legal advisors of the Company estimate that the administrative proceedings should be concluded by 2023. No deposit or other type of guarantee for these proceedings have been made, since they are still pending in the administrative instance. (c) Corporate The Company currently is subject to a settlement of judgment related to a 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 liquidation aims to assess the amount of the award, as determined by the court. The plaintiffs filed interlocutory appeal, which has not yet been tried, given the decision ordering an expert examination. The parties are currently awaiting the expert examination in the principal lawsuit. The Management of Braskem, based on its assessment and of its external legal advisors, the amount of provision on December 31, 2019 is R$15,345 million. The amount in dispute with a possible likelihood of loss is R$186 million. (d) Other lawsuits (i) Social Security Contributions – Withholding of 11% The Company was assessed by the RFB 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 approximately R$53 million, on December 31, 2019. This loss is deemed as possible in the administrative court, in view of prior decisions by the Administrative Council of Tax Appeals (CARF) and the evidence provided by the Company. The Company’s external legal advisors estimate that the administrative proceeding should be concluded still in 2020. (ii) Social security – hazardous agents The Company is a party to other administrative proceedings and lawsuits, which claim: (i) payments related to tax-deficiency notices for additional contribution for Occupational Accident Risk (“RAT”) to fund the special retirement plan due to the alleged exposure of workers to hazardous agents; as well as financial penalty for not disclosing it in GFIP (from April 1999 to February 2006); and (ii) the claim in a tax foreclosure, of said additional payment for RAT (periods from November 2000 to January 2001 and from November 2001 to June 2002). The total approximate amount involved in these proceedings, as of December 31, 2019, is R$47 million. The external legal advisors of the Company estimate that these administrative proceedings should be concluded by 2022, and the only lawsuit should be concluded by 2027. No deposit or any other type of guarantee for the proceedings still pending in the administrative instance have been made, and the only lawsuit is secured by a guarantee insurance in the amount of R$3.7 million. |
25 Leniency agreement
25 Leniency agreement | 12 Months Ended |
Dec. 31, 2019 | |
Leniency Agreement | |
Leniency agreement | 25 Leniency agreement Global Settlement with authorities In the context of allegations of undue payments in connection with Operation Car Wash in Brazil, the Company hired external experts in investigation to conduct an independent investigation into such allegations (“Investigation”) and to report their findings. The Company cooperated and continues to cooperate with government authorities from various jurisdictions, including the Department of Justice of the United States (DoJ), the Securities and Exchange Commission of the United States (SEC), the Federal Prosecution Office (MPF) and the Swiss Office of the Attorney General (OAG). In December 2016, the Company entered into Leniency Agreements with the Federal Prosecution Office (“MPF Agreement”) and with U.S. and Swiss authorities (“Global Settlement”), in the approximate amount of US$957 million (approximately R$3.1 billion, at the time), which were officially ratified as follows: 1. In Brazil, the MPF Agreement was ratified 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 (“Plea Agreement”). 3. The agreement with the Securities and Exchange Commission (“SEC”) was confirmed on February 28, 2017. 4. The agreement with the Swiss authorities did not require ratification to produce effects; on December 21, 2016, the OAG concluded its investigations and issued an order to conclude the case based on the Company’s collaboration. Of the aggregate amount of the Global Settlement, the Company already has paid approximately R$2.2 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; 5. R$267,985 to the MPF, related to the first of six annual installments due by 2023, paid on January 30, 2018; 6. 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; 7. R$278,034 to the MPF, related to the second of six annual installments payable until 2023, paid on January 30, 2019; and 8. CHF16,065 (R$58,034) to the Swiss Office of the Attorney General, related to the second of four annual installments payable until 2021, paid on June 27, 2019. 9. R$257,256 paid on January 30, 2020 to the Federal Government corresponding to the annual installment of the leniency agreements entered into with the MPF and with the CGU and AGU, as described above. In this sense, as informed to the market on July 10, 2018 and as per the material fact notice on May 27, 2019, the Company engaged in a process of cooperation and negotiation with the Ministry of Transparency and the Office Of The Federal Controller General (“CGU”) and the Office of the Attorney General (“AGU”), which culminated in the execution of the leniency agreement with such authorities on May 31, 2019 (“CGU/AGU Agreement” and, jointly with the Global Settlement, “Agreements”). 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 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. The outstanding installments of the MPF Agreement will benefit from CGU/AGU Agreement and will now be restated by the variation in 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 AGU, CGU and MPF agreed to allocate most of the amounts received under the Agreements to the reparation of victims of the wrongdoings, including other public authorities and agencies, and to adopt monitoring measures of such third parties with which Braskem comes to start negotiations in connection with the matters under the Agreements, seeking to avoid the duplication of compensation. The amount of outstanding installments, after the CGU/AGU Agreement, discounting the installment paid on January 30, 2020, is approximately R$1.5 billion and will be paid as follows: 1. CHF32,130 (R$ 133,428) to the Swiss Office of the Attorney General, corresponding to four outstanding annual installments of CHF16,065 (R$ 66,714) due on June 30 of each year as from 2020; 2. Approximately R$900 million under the MPF Agreement and CGU/AGU Agreement, in three annual, equal and successive installments adjusted by the variation in the SELIC rate , payable on January 30 of each year as from 2021. To guarantee payment of the installments of these installments coming due, Braskem gave as collateral assets from its property, plant and equipment corresponding to one annual installment; and 3. R$409,876 under the CGU/AGU Agreement, adjusted by the variation in the SELIC rate as from the execution date of such agreement, with the first installment of R$284,665 payable on January 30, 2024 and the second, of R$125,211, payable on January 30, 2025. The Company also began negotiations with the Bahia State Prosecution Office, which also adhered to the MPF Agreement. The Company also began negotiations with the Rio Grande do Sul State Prosecution Office, which also adhered to the MPF Agreement. No additional payment is expected to be made by the Company to both offices. The Company concluded the process of adherence of authorities to the MPF Agreement. It will continue to collaborate with the competent authorities, while observing the confidentiality requirement established in said agreements. The Agreements do not exempt the company from other third parties, with legitimate interest, seeking indemnity for damages caused by the facts covered by the Agreements, including other authorities that seek to impose new pecuniary sanctions or fines or initiate new investigations into the Company. Therefore, even if the Company does not anticipate the need for any additional payment, it cannot guarantee that the total amount agreed will be sufficient for full reparation of all victims. The Company will continue to cooperate with the competent public authorities, while improving its compliance and anti-corruption practices. In March 2020, based on the certification report issued by the independent monitors, the MPF confirmed the end of the monitorship, the effectiveness of the Company’s compliance program and the fulfillment of the obligations under the MPF Agreement. Subsequently, on May 13, 2020, the DoJ and the SEC confirmed the conclusion of the monitorship established under the agreements signed on December 21, 2016 (“Agreements”) with said authorities. As per the Material Fact notice disclosed by the Company at the time, “the decision of the DoJ and SEC was based on a final report by the independent monitors that attested to the implementation, by the Company, of all the recommendations for structuring and executing its compliance program and that found said program in compliance with the standards established in the Agreements. The Company is in compliance with all of its obligations under the Agreements. |
26 Geological phenomenon - Alag
26 Geological phenomenon - Alagoas | 12 Months Ended |
Dec. 31, 2019 | |
Geological Phenomenon - Alagoas | |
Geological phenomenon - Alagoas | 26 Geological phenomenon - Alagoas The Company operated, unti May 2019, salt mining wells located in the city of Maceió, state of Alagoas, with the purpose of supplying raw material to its chlor-alkali and dichloroethane plant. Right after a geological phenomenon in the region in March 2018, the Company started studies through independent specialist institutions to identify the causes of the geological phenomenon and measures to be taken. In May 2019, the Brazilian Geological Service (CRPM) issued a report on the phenomenon claiming its causes were related to Braskem’s salt mining operations. This geological phenomenon of unknown causes is being investigated, which requires a series of studies. Given the soil instability in the districts of Pinheiro, Mutange, Bebedouro and Bom Parto and the risk for residents in the region, on May 9, 2019, Braskem decided to suspend its salt mining activities and the operation of its chlor-alkali and dichloroethane plant. With support from independent institutions and nationally and internationally renowned specialists, the Company conducted and has been conducting studies focusing on (i) identifying the causes of the geological phenomenon; and (ii) analyzing the situation of the wells. The studies have been shared with the National Mining Agency (ANM), with which the Company has been maintaining constant dialogue. On November 14, 2019, Braskem presented to the ANM measures for definitively shutting down its salt mining activities in Maceió, with the closure of its wells, and proposed the creation of a protective area surrounding certain wells as a precautionary measure to ensure public safety. These measures are based on a study conducted by the Institute of Geomechanics of Leipzig (IFG), in Germany, an international reference in the geomechanics of salt wells, and are being adopted in coordination with the Brazilian Civil Defense and other authorities. On December 31, 2019, based on its assessment and on that of its external legal advisors, and considering the existing information, the dialogue with authorities and the best estimate of expenses with the various safety measures for residents, the Company recorded a provision of R$3,383.067, of which R$1,450.476 is under current liabilities and R$1,932,591 is under non-current liabilities. Due to the inherent change in the assumptions related to the provisions arising from new facts and circumstances, execution time and extent of the action plans, the findings of future studies conducted by experts and the outcome of pending lawsuits, the provision may be adjusted over time to reflect new developments. The aggregate amount of this provision could vary in accordance with the current phase of ongoing negotiations with the authorities for reaching a potential environmental agreement involving especially a solution for stabilizing the salt wells located in the region affected by the geological phenomena. For Braskem, the goal of a potential agreement is to afford greater legal security for its plan involving the actions being studied, with the suspension and/or termination of the processes currently in place for this material. The potential agreement is still highly uncertain and subject to the conclusion of ongoing negotiations and to approval by the Company and the competent Authorities. Therefore, the provisions recognized in these consolidated financial statements do not include the result of this potential agreement, since it is not possible to reliably estimate the amount or to ensure that the ongoing negotiations will be successful. The estimate of the economic impact of the potential agreement will depend on (i) any agreement on the environmental recovery plan and a detailed assessment of the estimates of the amounts to be disbursed, (ii) an analysis of the detailed scope of this plan to determine its correspondence to the initiatives and amounts for which provisions already have been accrued; and (iii) the moment of the execution of the plan and expenditures, which will impact the present value of obligations. All accounting impacts, if any, will be recognized in the period in which such agreement is executed. The main factors of the provision result from: a. Support for relocating and compensation for the residents of the Risk Areas, under the Agreement entered into with the State Prosecution Office (MPE), the State Public Defender’s Office (DPE), the Federal Prosecution Office (MPF) and the Federal Public Defender’s Office (DPU), see details of the Agreement entered into in item (i) below, as well as of the Protection Area, which was demarcated based on the extension of the radius of the wells with anomalies that were identified using sonar. The provision in the amount of R$1,687,700 encompasses expenses with actions such as: · Reallocation, rent allowance, household goods transportation and furniture storage; · Negotiation of individual settlements for compensation of the residents affected. b. Actions for closing and monitoring the salt wells: based on the findings of sonars and geomechanics studies, Braskem has planned stabilization and monitoring actions for all 35 existing salt mining wells: · For four of them, the recommendation is that they be filled with solid material, a process that should take three years; · For the other 31 wells, the recommended actions are conventional closure, confirmation of the status of natural filling and monitoring; · For 15 wells, including the four to be filled with solid material, the recommendation is that a protection area be created in the surrounding area and that they be monitored. The total expenses estimated for implementation of these measures in the 35 wells is R$1,011,695, calculated based on the existing techniques and possible solutions for the current conditions of the wells, which could change in the future based on new studies and natural alterations in the structure of the wells over time; c. Other measures not covered by the Agreement are (i) actions related to the Technical Cooperation Agreements entered into with the Civil Defense; (ii) agreement with the Labor Prosecution Office (MPT) in the amount of R$40 million (note 26.1 (ii)); (iii) matters classified as a present obligation for the Company, even if not yet formalized; and (iv) expenses with engaging external advisors and experts to conduct studies for understanding the geological phenomenon and supporting the execution of the actions recommended by the studies. The expenses estimated and included in the accounting provision related to these additional measures amount to R$683,672 and are subject to changes as the studies and actions in the region advance. Under the terms of the Agreement, after the transfer of ownership of the properties, the Company undertakes to hire a third party specialized in private surveillance for the care and safety of the area and to adopt necessary measures to prevent proliferation of vectors of diseases to people and animals. The definition of the necessary measures for the recovery of areas potentially impacted by salt mining activities depends on diagnosis of the area and further discussion between the Company and the competent authorities (including ANM). All obligations assumed under the Agreement do not constitute the recognition of culpability or liability by the Company for the relocation of the people from the risk areas. Braskem will continue to collaborate with the authorities, with the support of independent experts, to identify the causes of the geological events and the implementation of actions to ensure the safety of the communities in the affected districts. The Company is negotiating with its insurers the coverage of its insurance policies. These negotiations are in the early stages. Therefore, the payment of compensation will depend on an assessment of the insurance coverage under these policies. Given the uncertainties regarding the matter, no payment of compensation was recognized in the consolidated financial statements of the Company. 26.1 Lawsuits pending In the context of this event, the following lawsuits were filed against the Company: (i) Public-Interest Civil Action (ACP) filed by the Alagoas State Prosecution Office (MPE) and the Alagoas State Public Defender’s Office (DPE) – Reparation for residents This action sought a preliminary injunction for the freezing of R$3.7 billion and the award of damages for losses caused to the residents of the districts of Pinheiro, Mutange and Bebedouro, which was estimated by Plaintiffs at R$7.1 billion. On January 3, 2020, the court ratified the Agreement to Support the Relocation of People in Risk Areas (“Agreement”), entered into by Braskem and the State Prosecution Office (“MPE”), the State Public Defender’s Office (“DPE”), the Federal Prosecution Office (“MPF”) and the Federal Public Defender’s Office (“DPU”). The Agreement was ratified by the Federal Judge of the 3 rd (i) Unfreezing of R$3.7 billion (*) previously frozen from the cash balance of Braskem in the context of the Public-Interest Civil Action, (ii) Substitution of the guarantee insurance already offered by the Company to the Court, in the amount of approximately R$6.4 billion, by two guarantee insurance in the aggregate amount of approximately R$3 billion, of which R$2 billion is to secure the Public-Interest Civil Action filed by the DPE and MPE and R$1 billion is to secure the Public-Interest Civil Action filed by the MPF; (iii) Elimination of the risk of another freezing of accounts in connection with the Public-Interest Civil Action; (iv) Dismissal of the action in part with regard to the residents of the area envisaged in the Agreement who opt to enter into individual settlements with the Company to receive financial compensation for relocating from the area. (*) The unfreezing took place in January 2020. On December 31, 2019, the updated amount is presented in the caption judicial deposits in current assets in the amount of R$2,571,683 and in non-current assets in the amount of R$1,174,424 corresponding to the long-term portion of the payment schedule. The Agreement aims to regulate cooperative actions for the relocation of residents from the risk areas and for ensuring their safety without any recognition of fault or causal connection between the geological phenomenon and the activities of the Company. The Agreement area encompasses approximately 4,500 real properties and 17,000 residents, who will be benefited by the Financial Compensation and Support for Relocation Program (“Program”) previously implemented by Braskem only for residents affected by the implementation of the protection area. The Program provides for relocation allowance, rent allowance, household goods transportation, costs with real estate agency, furniture storage costs and assistance from psychologists and social workers. A Residents Center was created with a structure dedicated exclusively to serving and supporting the residents of the districts located in the risk area. Three Technical Cooperation Agreements were entered into with the Municipal Government of Maceió and the Civil Defense with the aim of establishing a mutual cooperation between the parties for activities to mitigate risks and to ensure public safety. The agreements encompass the execution of studies to understand the phenomenon (high-resolution seismic survey, analysis and seismic survey of the lake, airborne gravimetry, etc.), structure of the monitoring network in the districts and region of the salt wells, installation of a meteorological station, donation of equipment to the Municipal Civil Defense, among other things. To implement the actions envisaged in the Agreement, the Company undertook to maintain R$1.7 billion in a checking account, with minimum working capital of R$100 million, whose transactions will be verified by an external audit company. (ii) Public-Interest Civil Action filed by the Alagoas State Labor Prosecution Office (MPT-AL) – Reparation for workers Public-Interest Civil Action with a preliminary injunction to freeze a total of R$2.5 billion to guarantee any indemnification for material damages to workers affected by the geological phenomenon. In said lawsuit, the MPT-AL also claims indemnification of the workers for moral damages of R$1 billion and other obligations in the amount of R$125 million, totaling the value of R$3.6 billion. On October 10, 2019, the tenured judge of the lawsuit denied the injunction sought by the MPT-AL. On February 14, 2020, the Company entered into an agreement with the Labor Prosecution Office (MPT) in the amount of R$40 million for implementation of the Program for Recovery of Business and Promotion of Educational Activities for residents and workers from the districts affected by the geological phenomenon. The program consists of support for the construction of daycare centers and schools and for administering professional training programs, as well as support for the Civil Defense to hire skilled professionals to continue monitoring the risk areas in the districts affected. With the agreement, the MPT agreed to end the public-interest civil action, releasing Braskem from all claims after the Company makes a judicial deposit of R$40 million, which will be done within 10 business days as from ratification of the agreement by the judge, what occurred on March 3, 2020. (iii) Public-Interest Civil Action filed by the Alagoas State Federal Prosecution Office (MPF-AL) – Social-environmental reparation Public-Interest Civil Action against Braskem and other defendants seeking approximately R$28.7 billion for social, environmental and property damages, as well as various other corrective and environmental compliance measures, safety plans and the suspension of the Company’s government benefits. In the preliminary injunction phase, the following main claims were made: (i) the accrual of an own private fund in the initial amount of R$3.1 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$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; (iv) a court-ordered freeze of any profits not distributed as of the date hereof; and (v) a suspension of financing with the Brazilian Development Bank (BNDES) and of government incentives, as well as on the prepayment of financial transactions with the BNDES. In January 2020, the judge of the 3 rd The Management, supported by the opinion of the external legal advisors, classifies the probability of loss in this case as possible. (iv) Action for Damages – Pinheiro District Property Action for Damages filed by Construtora H. Lobo (under court-supervised reorganization), a Contractor that claimed it suffered damages and loss of profits due to an agreement to purchase from Braskem a property in the District of Pinheiro. Said agreement was terminated by Braskem due to lack of payment by the Contractor. Nevertheless, the Contractor claims that Braskem omitted information on the existence of structural problems in the deactivated salt mining wells located on said property. The plaintiff is claiming damages of R$141 million. The Management, supported by the opinion of the external legal advisors, classifies the probability of loss in this case as possible. 26.2 Other expenses Due to the shutting down of its salt mining activities, the Company written-off the property, plant and equipment related to the wells in the amount of R$35,078. 26.3 Industrial activity Since the shutdown of its salt mining activities, the Company has been working to adapt its chlor-alkali plant to operate with solid salt to be acquired in the domestic market and/or imported from other regions. The Company expects to resume its industrial activities during the first half of 2020. |
27 Benefits offered to team mem
27 Benefits offered to team members | 12 Months Ended |
Dec. 31, 2019 | |
Benefits Offered To Team Members | |
Benefits offered to team members | 27 Benefits offered to team members 27.1. Short-term benefits 2019 2018 2017 Health care 181,466 162,338 140,553 Private pension 90,687 84,525 67,008 Transport 67,761 64,714 58,825 Feeding 35,677 33,537 30,916 Life insurance 7,997 5,964 Training 26,261 27,463 18,285 Other 12,164 12,307 16,173 422,013 390,848 331,760 Long-term incentive plan (“ILP Plan”) On March 21, 2018, the Extraordinary Shareholders' Meeting approved the 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. On March 13, 2019, the Board of Directors approved a new program, the “ILP Plan 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 approximately 573,000 shares. The program’s grant date is March 19, 2019. The shares to be delivered by the Company to participants of the ILP Program 2018 are those currently held in treasury or acquired through repurchase programs, and in the event said shares cannot be delivered, the Company will pay participants in cash the amount corresponding to the shares, based on the quote on the stock exchange on the second business day immediately prior to the respective payment date. The fair value of the Company’s matching contribution is calculated in accordance with the origin of the agreement. For eligible persons of the Braskem S.A., the fair value is based on the quoted price of the class “A” preferred shares (R$53.75). For eligible persons of subsidiaries abroad, the fair value is based on the quoted price of the American Depository Receipts - ADR (US$14.80) at December 31, 2019. The fair value, net of taxes, recorded on equity at December 31, 2019, is R$13,573 (R$6,406 at December 31, 2018). 27.2. Post-employment benefits 27.2.1. Retirement plans and health plans For each of the below plans, the Company engaged a specialized company to prepare an actuarial report for measuring its future obligations. The assumptions adopted comply in full with IAS 19. (a) 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. On December 31, 2019, the plan had 38 active participants and 171 assisted participants (38 active participants and 172 assisted participants in 2018). Braskem America, due to the current financing level of the pension plan, was not required to contribute during 2019. Therefore, there were no contributions in 2019 (R$20,544 in 2018). During 2019 and 2018, there were no contributions from participants. (b) Braskem Alemanha (“Germany”) The subsidiary Braskem Alemanha is the sponsor of the defined benefit plans and defined contribution plans of its employees. At December 31, 2019, the plan has 158 participants (152 in 2018) and no contributions were made by Braskem Alemanha in 2019 and 2018. The participants made no contributions in 2019 and 2018. (c) Braskem Holanda (“Netherlands”) The subsidiary Braskem Holanda is the sponsor of the defined contribution plans of its employees. At December 31, 2019, the plan has 8 participants (6 in 2018) and no contributions were made by Braskem Holanda in 2019 and 2018. The participants made no contributions in 2019 and 2018. (d) Braskem Idesa The subsidiary Braskem Idesa is the sponsor of defined benefit plan for its team members. On December 31, 2019, the plan was composed of 823 active participants (821 in 2018). The contributions Braskem Idesa made in the year amounted to R$2,056 (R$2,343 in 2018). During 2019 and 2018, there were no contributions from participants. (e) 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). (i) Amounts in balance sheet 2019 2018 Defined benefit Novamont Braskem America 80,593 68,904 Braskem Idesa 11,408 Braskem Alemanha and Netherlands 153,564 114,705 245,565 183,609 Health care Bradesco saúde 224,852 90,679 Total obligations 470,417 274,288 Fair value of plan assets Novamont Braskem America (79,784) (66,073) Braskem Alemanha (1,558) (1,842) (81,342) (67,915) Consolidated net balance (non-current liabilities) 389,075 206,373 (ii) Change in obligations 2019 2018 2017 Balance at beginning of year 274,366 240,190 201,516 Health care 5,817 7,446 11,334 Current service cost 8,233 5,842 5,058 Interest cost 14,796 4,906 4,139 Benefits paid (4,677) (3,845) (3,399) Change plan 4,948 1,391 Actuarial losses (gain) 161,250 (3,713) 9,661 Exchange variation 5,684 22,149 11,881 Balance at the end of the year 470,417 274,366 240,190 (iii) Change in fair value plan assets 2019 2018 2017 Balance at beginning of year 67,993 46,415 39,380 Actual return on plan assets 14,329 (3,200) 5,115 Employer contributions 285 20,544 4,069 Benefits paid (3,966) (3,712) (2,915) Exchange variation 2,701 7,868 766 Balance at the end of the year 81,342 67,915 46,415 (iv) Amounts recognized in profit and loss 2019 2018 2017 Health care 5,817 7,446 11,334 Current service cost 8,233 5,842 5,058 Interest cost 14,796 4,906 4,139 Actuarial losses 2,077 6,041 28,846 20,271 26,572 Actuarial assumptions (%) 2019 2018 2017 Health United Health United Health United insurance States Mexico Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 3.60 3.35 7.25 2.00 2.00 5.03 4.45 2.00 2.00 5.45 3.70 2.00 2.00 Inflation rate 4.00 n/a 4.00 2.00 2.00 4.50 n/a 2.00 2.00 4.50 n/a n/a 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 n/a n/a n/a n/a Rate of increase in future salary levels n/a n/a 5.00 3.00 3.00 n/a n/a 3.00 3.00 n/a n/a 2.50 2.50 Rate of increase in future pension plan n/a n/a n/a 1.75 1.75 n/a n/a 1.75 1.75 n/a n/a 1.75 1.75 Aging factor 2.50 n/a 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 n/a 3.50 n/a n/a n/a 3.50 n/a n/a n/a Duration 15.32 n/a n/a n/a n/a 19.66 n/a n/a n/a 18.84 n/a n/a n/a (v) Fair value of assets hierarchy On December 31, 2019, 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. (vi) Sensitivity analysis Impact on the defined benefit obligation Premise change Premise increase Premise reduction Health United Health United Health United insurance States Mexico Germany Netherlands insurance States Mexico Germany Netherlands insurance States Mexico Germany Netherlands Discount rate 1.0% 1.0% 1.0% 0.5% 0.5% 27,923 8,999 1,040 15,037 766 (34,866) (11,012) (1,246) (16,701) (852) Real medical inflation n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Rate of increase in future salary levels n/a n/a n/a 0.5% 0.5% n/a n/a n/a 9,033 460 n/a n/a n/a (8,519) (434) Rate of increase in future pension plan 1% n/a n/a 0.25% 0.25% (5,559) n/a n/a 4,452 227 5,559 n/a n/a (4,320) (220) Life expectancy 1% n/a n/a 1 year 1 year 42,480 n/a n/a 3,819 195 (33,494) n/a n/a (3,986) (203) Mortality rate n/a 10% n/a n/a n/a n/a 2,554 n/a n/a n/a n/a (2,814) n/a 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% 739 157 (967) (41) Life expectancy 1.0% 1.0% 614 3,290 (511) (2,594) Rate of increase in future pension plan 1.0% 1.0% 116 430 (116) (430) 27.2.2. Retirement plan - defined contribution The Braskem S.A. and the subsidiaries in Brazil sponsor a defined contribution plan for its team members managed by Vexty, a private pension plan entity. Vexty 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, 2019, the number of active participants in Vexty totals 5,550 (5,725 in 2018) and the contributions made by the sponsors in the year amount to R$49,866 (R$50,610 in 2018) and the contributions made by the participants amounted to R$72,970 (R$69,058 in 2018). |
28 Other financial liabilities
28 Other financial liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Financial Liabilities | |
Other financial liabilities | 28 Other financial liabilities The Company received, in June 2019, R$499,999 from the assignment of an agreement for the supply of ethylene to a client. The product must be supplied from January to December 2020, and such supply is considered “highly probable” given the ongoing relationship with the client in terms of volumes higher than the supply flow of such agreement. The Company is not responsible for the solvency of the client. The assignment of this agreement has no recourse or co-obligation for the Company, which is not responsible for repaying to the assignee, a financial agent, the amount received for the assignment if it complies with its obligation to supply ethylene. |
29 Equity
29 Equity | 12 Months Ended |
Dec. 31, 2019 | |
Changes in equity [abstract] | |
Equity | 29 Equity (a) Capital On December 31, 2019, the Company's subscribed and paid up capital stock amounted to R$8,043,222 and comprised 797,218,554 shares with no par value, distributed as follows: Amount of shares 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 38.33 Petrobras 212,426,952 47.03 75,761,739 21.96 288,188,691 36.15 ADR (i) 33,984,766 9.85 33,984,766 4.26 Alaska 21,898,500 6.35 21,898,500 2.75 Other 12,907,077 2.86 132,995,570 38.53 500,230 100.00 146,402,877 18.36 Total 451,668,652 100.00 343,823,073 99.64 500,230 100.00 795,991,955 99.85 Treasury shares 1,226,599 0.36 1,226,599 0.15 Total 451,668,652 100.00 345,049,672 100.00 500,230 100.00 797,218,554 100.00 (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) Profit reserve (i) 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. (ii) Profit retention Under Brazilian Corporation Law, portions of the net income of the year not allocated for distribution to the shareholders or other reserve accounts must be allocated to the income retention account. At the end of the year 2019, the Company used R$2,767,965 of the balance of this reserve to absorb the adjusted loss in the period of 2019. On December 31, 2019, the balance of this reserve was R$1,174,301. (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. As common shares, only class “A” preferred shares will have the same claim on the remaining profit that exceed the minimum mandatory dividend of 6% 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. 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 the period, 8,159 treasury shares were delivered as payment for the LTI Program for employees who left the Company. (e) Profit allocation and dividends proposed to fiscal year 2018 On October 3, 2019, the Annual Shareholders Meeting approved (i) the payment of the minimum mandatory dividends regarding the net profit assessed for the year 2018, in the amount of R$667,419, paid on December 30, 2019; (ii) the capital budget for 2019; and (iii) the retention of R$2,002,255, under Article 196 of Brazilian Corporation Law. (f) Other comprehensive income Attributed to shareholders' interest Deemed cost Fair value Defined Foreign and additional adjustments of Gain (loss) Foreign benefit currency Total indexation of trade accounts on interest sales Fair value plans actuarial translation Braskem Non-controlling PP&E receivable in subsidiary hedge of hedge Gain (loss) adjustment shareholders' interest in (ii) (iii) (i) (iv) (iv) (v) (vi) interest Braskem Idesa Total On December 31, 2016 206,703 (9,404) (7,105,377) (539,518) (43,351) 1,169,088 (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) Goodwill on the acquisition of a subsidiary under common control - Foreign currency translation adjustment 51,445 51,445 (52,047) (602) On December 31, 2017 178,893 (9,404) (6,358,242) (145,267) (52,005) 1,220,533 (5,165,492) (477,975) (5,643,467) Additional indexation Realization by depreciation or write-off assets (40,481) (40,481) (40,481) Income tax and social contribution 13,764 13,764 13,764 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,458) (1,458) (1,458) Income tax and social contribution 496 496 496 Fair value adjustments Accounts receivable (449) (449) (449) Foreign sales hedge Exchange rate (3,133,346) (3,133,346) 4,170 (3,129,176) Transfer to result 1,200,209 1,200,209 59,143 1,259,352 Income tax and social contribution 664,864 664,864 (18,994) 645,870 Fair value of Cash flow hedge Change in fair value (196,790) (196,790) 7,722 (189,068) Transfer to result 26,964 26,964 10,386 37,350 Income tax and social contribution 59,914 59,914 (5,433) 54,481 Fair value of cash flow hedge from jointly-controlled (RPR) (2,329) (2,329) (2,329) Actuarial loss with post-employment benefits, net of taxes (1,569) (1,569) (1,569) ILP PLan fair value Change in fair value 9,297 9,297 133 9,430 Income tax and social contribution (2,891) (2,891) (2,891) Foreign currency translation adjustment 946,342 946,342 (145,119) 801,223 (Loss) gain from investments (65) (65) 65 On December 31, 2018 151,214 5,957 (9,469) (7,626,515) (257,508) (53,574) 2,166,875 (5,623,020) (565,902) (6,188,922) Attributed to shareholders' interest Deemed cost Fair value Defined Foreign and additional adjustments of Gain (loss) Foreign benefit currency Total indexation of trade accounts on interest sales Fair value plans actuarial translation Braskem Non-controlling PP&E receivable in subsidiary hedge of hedge Gain (loss) adjustment shareholders' interest in (ii) (iii) (i) (iv) (iv) (v) (vi) interest Braskem Idesa Total On December 31, 2018 151,214 5,957 (9,469) (7,626,515) (257,508) (53,574) 2,166,875 (5,623,020) (565,902) (6,188,922) Additional indexation Realization by depreciation or write-off assets (40,481) (40,481) (40,481) Income tax and social contribution 13,764 13,764 13,764 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,338) (1,338) (1,338) Income tax and social contribution 455 455 455 Fair value adjustments Accounts receivable 15 15 15 Foreign sales hedge Exchange rate (507,464) (507,464) 116,202 (391,262) Transfer to result 1,585,480 1,585,480 66,787 1,652,267 Income tax and social contribution (344,567) (344,567) (54,897) (399,464) Fair value of Cash flow hedge Change in fair value 7,150 7,150 (23,078) (15,928) Transfer to result 54,450 54,450 16,752 71,202 Income tax and social contribution (21,703) (21,703) 1,898 (19,805) Fair value of cash flow hedge from jointly-controlled (RPR) (978) (978) (978) Actuarial loss with post-employment benefits, net of taxes (109,492) (109,492) (109,492) ILP PLan fair value Change in fair value 19,415 19,415 348 19,763 Income tax and social contribution (5,842) (5,842) (5,842) Foreign currency translation adjustment 220,228 220,228 (83,506) 136,722 Loss on interest in subsidiary (50) (50) (34) (84) Effect of CPC 42 / IAS 29 - hyperinflation (3,561) (3,561) (3,561) On December 31, 2019 123,614 19,545 (9,469) (6,893,066) (218,589) (163,066) 2,383,492 (4,757,539) (525,430) (5,282,969) (i) Transfer to the income statement when divestment or transfer of control of subsidiary. (ii) Transfer to retained earnings as the asset is depreciated or written-off/sold. (iii) For receivables classified as fair value through other comprehensive income, transfer to the income statement when attainment of jurisdiction or early liquidation. For the ILP Plan, Transfer to retained earnings according to the grace period of the plan. (iv) Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. (v) Transfer to retained earnings when the extinction of the plan. (vi) Transfer to the income statement when write-off of subsidiary abroad. |
30 Earnings per share
30 Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Earnings per share | 30 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 29(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 29(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. The table below shows the reconciliation of profit or loss for the period adjusted for the amounts used to calculate basic and diluted earnings (loss) per share. Basic and diluted 2019 2018 2017 (Loss) profit for the year attributed to Company's shareholders of continued operations (2,540,995) 2,827,650 3,856,564 Distribution of priority dividends attributable to: Preferred shares class "A" 208,450 208,416 Preferred shares class "B" 303 351 208,753 208,767 Distribution of 6% ??of unit price of common shares 273,840 273,827 Distribution of excess profits, by class: Common shares 1,331,513 1,915,805 Preferred shares class "A" 1,013,544 1,458,165 2,345,057 3,373,970 Reconciliation of income available for distribution, by class (numerator): Common shares (1,441,839) 1,605,353 2,189,632 Preferred shares class "A" (1,097,559) 1,221,994 1,666,581 Preferred shares class "B" (1,597) 303 351 (2,540,995) 2,827,650 3,856,564 Weighted average number of shares, by class (denominator): Common shares 451,668,652 451,668,652 451,668,652 Preferred shares class "A" 343,820,162 343,808,699 343,775,864 Preferred shares class "B" 500,230 512,660 578,330 795,989,044 795,990,011 796,022,846 (Loss) earnings per share (in R$) Common shares (3.1922) 3.5543 4.8479 Preferred shares class "A" (3.1922) 3.5543 4.8479 Preferred shares class "B" (3.1922) 0.5910 0.6069 Weighing of shares 2019 Preferred shares Class "A" Outstanding Weighted shares average Amount at beginning of year 343,814,914 343,814,914 Incentive long term plan payments with treasury shares 8,159 5,248 Amount at the end of the year 343,823,073 343,820,162 2018 Preferred shares Class "A" Class "B" Outstanding Weighted Outstanding Weighted shares average shares average Amount at beginning of year 343,775,864 343,775,864 578,330 578,330 Conversion of preferred shares class "B" to "A" 39,050 32,835 (78,100) (65,670) Amount at the end of the year 343,814,914 343,808,699 500,230 512,660 |
31 Net revenues
31 Net revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Net revenues | 31 Net revenues 2019 2018 2017 Sales revenue Domestic market Revenue 38,391,132 42,189,365 34,983,265 Rebates (57,315) (45,290) (35,538) 38,333,817 42,144,075 34,947,727 Foreign market Revenue 23,998,067 26,577,433 23,297,304 Rebates (47,723) (58,188) (60,990) 23,950,344 26,519,245 23,236,314 62,284,161 68,663,320 58,184,041 Sales and services deductions Taxes Domestic market (9,704,712) (10,219,138) (8,663,707) Foreign market (31,427) (36,562) (33,798) Sales returns Domestic market (138,749) (148,918) (125,153) Foreign market (85,748) (258,836) (100,789) (9,960,636) (10,663,454) (8,923,447) Net sales and services revenue 52,323,525 57,999,866 49,260,594 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) risks and benefits of product ownership are substantially 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 risk of the goods is 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 revenue by country 2019 2018 2017 Brazil 28,523,327 31,801,222 26,147,559 United States 9,416,558 9,887,701 8,539,972 Mexico 2,335,198 4,168,140 3,408,385 Singapore 1,162,432 756,069 542,866 Germany 1,157,431 1,385,482 1,192,287 Argentina 1,104,044 1,166,191 1,336,440 Switzerland 759,189 315,254 415,729 Italy 690,422 650,605 604,546 Chile 610,454 686,646 554,237 Peru 551,967 540,495 493,654 China 542,209 884,233 692,558 Luxembourg 526,768 546,524 247,007 Netherlands 516,409 293,315 333,134 United Kingdom 359,937 366,328 202,830 Uruguay 359,049 155,571 122,251 Spain 344,433 329,458 282,854 Sweden 296,601 270,062 256,911 South Korea 279,900 314,517 339,430 Japan 240,579 245,208 126,956 Bolivia 231,848 250,048 163,862 France 225,986 135,094 166,314 Canada 201,635 290,453 235,612 Poland 200,563 260,449 231,716 Colombia 200,370 363,497 340,396 Paraguay 194,859 214,959 174,783 Taiwan 191,593 274,566 301,692 Belgium 179,648 122,230 324,222 Ecuador 119,070 313,857 316,134 Other 801,046 1,011,692 1,166,258 52,323,525 57,999,866 49,260,594 (b) Net revenue by product 2019 2018 2017 PE/PP 34,287,597 37,979,148 33,105,714 Ethylene, Propylene 3,743,581 4,283,709 3,351,805 PVC/Caustic Soda/EDC 2,692,778 3,167,390 3,066,879 Benzene, toluene and xylene 2,503,667 2,785,400 2,683,406 ETBE/Gasoline 2,319,253 2,928,993 2,433,360 Butadiene 1,609,264 2,023,465 1,819,387 Cumene 723,469 909,409 578,482 Naphtha, condensate and crude oil 505,804 476,311 135,165 Solvents 676,044 248,313 401,455 Other 3,262,068 3,197,728 1,684,941 52,323,525 57,999,866 49,260,594 (c) Main clients 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 2019, the most significant revenue from a single client amounts to approximately 2.4% of total net revenues of the Company and refers to the Chemical segment |
32 Tax incentives
32 Tax incentives | 12 Months Ended |
Dec. 31, 2019 | |
Tax Incentives | |
Tax incentives | 32 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 (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. In 2019, the amount was R$67,796 (R$81,863 in 2018). |
33 Other income (expenses), net
33 Other income (expenses), net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income Expenses Net | |
Other income (expenses), net | 33 Other income (expenses), net Note 2019 2018 2017 2.7 Restated Other income PIS and COFINS credits - exclusion of ICMS from the calculation basis 10(c) 1,904,206 235,919 Fine on supply contract of raw material, net (i) 375,020 386,020 Insurance indemnity 18,286 100,876 Fixed assets disposal results 11,140 93,814 Tax Credits recovery 3,094 46,179 Capital gain - sale of Quantiq 276,816 Other 96,688 164,414 38,118 2,408,434 1,027,222 314,934 Other expenses Provision - geological event in Alagoas 26 (3,383,067) Leniency agreement 25 (375,476) Provision for losses on the fixed asset (158,320) (44,420) (205,929) Recovery of environmental damage (141,536) (89,396) (102,466) Allowance for judicial claims (136,135) (83,280) (119,919) Programmed stop in plants (108,192) (91,380) Fine on sales contracts (104,179) (49,487) Other (415,513) (196,750) (366,024) (4,446,942) (554,713) (1,169,814) (i) The contractual penalty charged from a supplier for failing to supply feedstock to the subsidiary Braskem Idesa is R$335,281 (R$338,125 in 2018). |
34 Financial results
34 Financial results | 12 Months Ended |
Dec. 31, 2019 | |
Financial Results | |
Financial results | 34 Financial results 2019 2018 2017 Financial income Interest income 708,542 530,007 512,051 Other 142,012 59,045 91,579 850,554 589,052 603,630 Financial expenses Interest expenses (2,191,765) (2,084,780) (2,219,503) Monetary variations on fiscal debts (232,612) (33,429) (191,101) Discounts granted (80,404) (141,223) (137,389) Loans transaction costs - amortization (465,000) (89,982) (64,771) Adjustment to present value - appropriation (348,930) (296,065) (284,992) Interest expense on leases (137,903) Other (426,171) (362,072) (849,461) (3,882,785) (3,007,551) (3,747,217) Exchange rate variations, net On financial assets (31,137) 1,268,741 216,381 On financial liabilities (1,693,383) (3,525,724) (1,015,143) (1,724,520) (2,256,983) (798,762) Total (4,756,751) (4,675,482) (3,942,349) |
35 Expenses by nature and funct
35 Expenses by nature and function | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
Expenses by nature and function | 35 Expenses by nature and function 2019 2018 2017 Restated Classification by nature: Raw materials other inputs (37,380,310) (38,889,949) (29,364,996) Personnel expenses (3,004,762) (2,412,118) (2,173,640) Outsourced services (3,242,373) (2,306,048) (2,120,001) Depreciation, amortization and depletion (3,632,265) (2,990,577) (2,928,855) Freights (2,204,453) (2,275,375) (2,058,574) Costs of idle industrial plants (309,742) (138,242) (67,593) Provision - geological event in Alagoas (3,383,067) PIS and COFINS credits - exclusion of ICMS from the calculation basis 1,904,206 Leniency agreement (375,476) Other general and administrative expenses (927,294) (706,451) (1,004,489) Total (52,180,060) (49,718,760) (40,093,624) Classification by function: Cost of products sold (45,879,118) (46,576,657) (36,177,408) Selling and distribution (1,783,455) (1,689,179) (1,446,153) (Loss) reversals for impairment of trade accounts receivable (7,069) 87,008 (13,455) General and administrative (2,224,180) (1,793,185) (1,434,272) Research and development (247,730) (219,256) (167,456) Other income 2,408,434 1,027,222 314,934 Other expenses (4,446,942) (554,713) (1,169,814) Total (52,180,060) (49,718,760) (40,093,624) |
36 Segment information
36 Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Segment information | 36 Segment information 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 reconciliation of segment 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 Operating Decision Maker (“CODM”). (b) Results by segment 2019 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Consolidated revenue sold profit expenses investments (expenses), net Reporting segments Chemicals 27,172,288 (25,349,921) 1,822,367 (1,069,867) (269,363) 483,137 Vinyls 2,692,778 (3,069,301) (376,523) (437,153) (3,673,139) (4,486,815) Polyolefins 21,191,851 (18,494,520) 2,697,331 (1,439,229) (151,351) 1,106,751 USA and Europe 10,044,306 (8,233,079) 1,811,227 (786,096) 9,215 1,034,346 Mexico 3,051,440 (2,504,012) 547,428 (351,199) 324,682 520,911 Total 64,152,663 (57,650,833) 6,501,830 (4,083,544) (3,759,956) (1,341,670) Other segments 296,286 (188,335) 107,951 (44,548) 3,364 66,767 Corporate unit (217,958) 10,218 1,775,246 (i) 1,567,506 Braskem consolidated before 64,448,949 (57,839,168) 6,609,781 (4,346,050) 10,218 (1,981,346) 292,603 Eliminations and reclassifications (12,125,424) 11,960,050 (165,374) 83,616 (57,162) (138,920) Total 52,323,525 (45,879,118) 6,444,407 (4,262,434) 10,218 (2,038,508) 153,683 2018 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Consolidated revenue sold profit expenses investments (expenses), net Reporting segments Restated Chemicals 31,111,650 (27,523,702) 3,587,948 (784,450) (52,006) 2,751,492 Vinyls 3,167,390 (2,908,371) 259,019 (177,344) 8,403 90,078 Polyolefins 22,483,866 (19,295,855) 3,188,011 (1,328,047) (35,020) 1,824,944 USA and Europe 11,724,776 (9,152,847) 2,571,929 (642,006) 68,733 1,998,656 Mexico 3,770,506 (2,333,845) 1,436,661 (313,526) 322,588 1,445,723 Total 72,258,188 (61,214,620) 11,043,568 (3,245,373) 312,698 8,110,893 Other segments 292,435 (173,608) 118,827 (34,819) (103) 83,905 Corporate unit 265,438 265,438 (334,420) (888) 159,914 90,044 Braskem consolidated before 72,816,061 (61,388,228) 11,427,833 (3,614,612) (888) 472,509 8,284,842 Eliminations and reclassifications (14,816,195) 14,811,571 (4,624) (4,624) Total 57,999,866 (46,576,657) 11,423,209 (3,614,612) (888) 472,509 8,280,218 2017 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net Consolidated Reporting segments Chemicals 25,179,288 (20,478,914) 4,700,374 (773,396) (197,275) 3,729,703 Vinyls 3,066,879 (2,572,774) 494,105 (162,989) (163,374) 167,742 Polyolefins 19,650,398 (15,432,179) 4,218,219 (1,321,575) (177,518) 2,719,126 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 (i) Includes the amount of R$1,904,206 related to PIS and COFINS tax credits – exclusion of ICMS from the calculation base (Nota 10(c)). (ii) Includes gain from sale of “Chemicals distribution” segment in the amount of R$276,816. (c) Property, plant and equipment and intangible assets by segment 2019 2018 Reporting segments Chemicals 10,410,524 10,916,874 Polyolefins 5,077,335 4,985,337 Vinyls 2,121,085 2,334,270 USA and Europe 4,852,760 3,875,566 Mexico 12,020,051 11,835,170 Total 34,481,755 33,947,217 Unallocated amounts 595,514 553,655 Total 35,077,269 34,500,872 |
37 Insurance coverage
37 Insurance coverage | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Coverage | |
Insurance coverage | 37 Insurance coverage Braskem contracts insurance policies to cover the domestic and international operations of its plants, as detailed below. In addition, also contracts other insurance policies, including general civil liability, the civil liability of directors and offices (D&O) and Environmental Civil Liability, domestic and international charter operations, charter's liability, etc. The Insurance Program maintained by the Company 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 United States/Germany and Mexico, which are valid through October 2021. 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 R$ million US$ million R$ million Units in Brazil October 8, 2021 3,500 18,195 27,962 145,364 Units in United States and Germany October 8, 2021 480 2,495 2,189 11,381 Units in Mexico October 8, 2021 2,642 13,735 5,679 29,524 Total 35,830 186,269 The risk assumptions adopted are not part of the audit scope and, therefore, were not subject to audit by our independent auditors. 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 and 33 months, depending on the plant and/or coverage. Braskem also carries an insurance policy against general civil liability that guarantees any 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 both Operational Risks and Environmental and General Civil Liability policies. |
38 Subsequent events
38 Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent events | 38 Subsequent events (a) As disclosed in note 26.1(i), in January 2020 there was the unfreezing of R$3.7 billion previously frozen from the cash balance of Braskem, and in note 26.1(ii), on February 14, 2020, the Company entered into an agreement with the Labor Prosecution Office (MPT) in the amount of R$40 million for implementation of the Program for Recovery of Business and Promotion of Educational Activities for residents and workers from the districts affected by the geological phenomenon. The program consists of support for the construction of daycare centers and schools and for administering professional training programs, as well as support for the Civil Defense to hire skilled professionals to continue monitoring the risk areas in the districts affected. (b) On March 19, 2020, the Board of Directors approved a new program, the “ILP Plan 2020,” 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 2020, after the vesting period and subject to compliance with all necessary requirements, is approximately 1,548,000 shares. The program’s grant date is April 1, 2020. The shares to be delivered by the Company to participants are those currently held in treasury or acquired through repurchase programs, and in the event said shares cannot be delivered, the Company will pay participants in cash the amount corresponding to the shares, based on the quote on the stock exchange on the second business day immediately prior to the respective payment date. (c) Braskem has been closely monitoring the impacts from the COVID-19 pandemic on its business and surrounding communities. As disclosed in the Notice to the Market dated March 20, 2020, Braskem has formed a crisis committee to establish global procedures focusing mainly on the health of people and the continuity of its operations. Some of the measures taken by the Company follow: (i) Recommending that all team members and contractors work from home; (ii) Reducing by around 50% the number of team members and contractors working on its industrial assets, with operations using the smallest possible teams, while considering all rules for ensuring personal safety and maintaining operational reliability; (iii) Recommending the suspension of visits by non-routine third parties and suppliers to Braskem’s facilities, and banning access to Braskem’s facilities by visitors or third parties returning from high risk areas; (iv) Creating an agenda with clients and local communities to verify the products in its portfolio with a view to support the fight against the pandemic. Moreover, in line with its primary value, Safety, the Company started operating its industrial assets with minimal teams. Capacity utilization rates in Brazil and the United States were temporarily reduced to adjust for the weaker demand and the destocking trends in the petrochemical and plastics production chains. The capacity utilization rates will accompany market demand and any new export opportunities that arise in other regions, especially with the restart of economies in Asia. The main effects were: · Brazil: ethylene production reduced to approximately 65% of the total annual capacity of 3.6 million tons; · United States: polypropylene production reduced to approximately 85% of the total annual capacity of 1.6 million tons. In this context, the Company has been adopting a series of cash-preservation measures to ensure the financial solidity and resilience of its business, which include: · Drawing down the Revolving Credit Facility in the amount of US$1 billion (R$5.2 billion on March 31, 2020), which is due in 2023; · Reducing fixed costs by around 10%; · Paring back the investments planned for 2020 from US$721 million (R$3.7 billion) to approximately US$600 million (R$3.1 billion); · Postponing the payment of social contribution charges in Brazil; and · Optimizing working capital. The Company also highlights the actions carried out jointly with its clients and partner companies to transform chemicals and plastic resins into items that are essential for combatting COVID-19, which include surgical masks, packaging for liquid and gel alcohol, bleach and 3D printing of bands for protective face shields; donations of LPG to field hospitals; actions to support the chain of clients and suppliers, particularly small and midsized companies; and donations of hygiene kits and food staples to local communities. In the first quarter of 2020, the Brazilian real depreciated 29% against the U.S. dollar. The negative exchange variation will produce a cash effect upon maturity of the Company’s liabilities, and as such is concentrated in the long term given the debt maturity profile and does not put at risk the liquidity position in context of the efforts to contain the COVID-19 pandemic. Due to the uncertainties arising from the COVID-19 pandemic with regard to the global economy, it is not possible to accurately predict the adverse impacts on the equity and financial position of the Company and its subsidiaries after the reporting date. The following areas are more susceptible to impacts resulting from COVID-19 pandemic given the significant changes in the risks to which the company is exposed, among others: accounting estimates for the realization of assets, including the estimates for losses on trade accounts receivables, inventory impairment loss, deferred tax assets and other assets, or those related to the provision for liabilities. (d) Naphtha Agreements with Petrobras In June 2020, Braskem entered into new agreements with Petrobras for the supply of petrochemical naphtha to Braskem's industrial units in Bahia and Rio Grande do Sul. The agreements, which term is around five years after the expiration date of the current agreement, establish the supply of a minimum annual volume of 650 kton and, at the option of Petrobras, an additional volume of up to 2.8 million tons per year, at the price of 100% of the international reference ARA. In addition, to guarantee access to the naphtha logistics system in Rio Grande do Sul, Braskem also renewed the storage agreement with Petrobras and the transport and storage agreement with Petrobras Transporte S.A. |
2 Accounting policies (Policies
2 Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
Basis of preparation and presentation of the financial statements | 2.1 Basis of preparation and presentation of the consolidated financial statements The consolidated financial statements have been prepared under the historical cost convention and were adjusted, when required, to reflect the fair value of assets and liabilities. The consolidated financial statements presented in this 20-F are not equivalent to the statutory financial statements of the Company as issued under the requirements of the Brazilian jurisdiction. 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 and non adjusting events after the reporting period, under IAS 10 – Events after the Reporting Period. The statutory financial statements (parent company and consolidated) for the year ended December 31, 2019 were authorized for issue on April 3, 2020, in accordance with the accounting practices adopted in Brazil and the International Financial Reporting Standards (“IFRS”), filed with the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – “CVM”) on April 3, 2020. 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 financial statements are disclosed in Note 3. The issue of these consolidated financial statements was authorized by the Executive Board on June 12, 2020. 2.1.1 Consolidated financial statements The consolidated financial statements were prepared and presented in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). (a) Consolidation The consolidated financial statements comprises the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2019 2018 2017 Direct and Indirect subsidiaries BM Insurance Company Limited ("BM Insurance") (i) Bermuda 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 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 International GmbH ("Braskem Austria") (ii) Austria 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 Cetrel S.A. ("Cetrel") Brazil 63.70 63.66 63.66 Distribuidora de Água Camaçari S.A. ("DAC") Brazil 63.70 63.66 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") Brazil 100.00 100.00 100.00 Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") (iii) Brazil 100.00 100.00 (i) Created in October 2018. (ii) Terminated in June 2018. (iii) Multi-asset fund created in December 2018. |
Functional and foreign currency | 2.2 Functional and foreign currency (a) Functional and presentation currency The functional currency of the Company is the real. The presentation currency is also real, unless otherwise stated. All amounts have been rounded to the nearest thousand, unless otherwise indicated. (b) Functional currency other than the Brazilian real Transactions in foreign currencies are translated into the respective functional currency of the Braskem’s entities at the exchange rates on the transaction dates. Monetary assets and liabilities denominated and measured in foreign currency on the reporting date are re-translated into the functional currency at the exchange rate on said date. Non-monetary assets and liabilities measured at fair value in foreign currency are re-translated into the functional currency at the exchange rate on the date on which the fair value was determined. Non-monetary items that are measured based on the historical cost in foreign currencies are translated at the exchange rate on the date of the transaction. The differences in foreign currencies resulting from conversion are generally recognized in the profit or loss. Assets and liabilities from foreign operations are translated into Brazilian real at the exchange rates determined on the reporting date. Revenues and expenses from foreign operations are translated into Brazilian real at the exchange rates determined on the transaction dates. Differences in foreign currencies generated by translation into the reporting currency are recognized in other comprehensive income and accrued in asset valuation adjustments in equity. The results and financial position of an entity whose functional currency is not the currency of a hyperinflationary economy must be translated into the reporting currency. The assets and liabilities for each balance sheet reported (including the comparative balance sheets) must be translated using the closing quote of the exchange rate on the respective reporting dates, and the income and expenses for each comprehensive statement of operations or statement of operations reported (including comparative statements) must be translated using the exchange rates in effect on the transaction dates. All exchange variation gains and losses must be recognized in other comprehensive income. The subsidiaries with a functional currency different from that of the Braskem S.A. are listed below: Functional currency Subsidiaries Braskem Alemanha Euro BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso Braskem Argentina Argentinean peso Braskem Chile Chilenean peso (c) Exchange variation effects The effects from exchange variation on the Company’s transactions are mainly due to the variations in the following currencies: End of period rate at December 31 Average rate Variation 2019 2018 Variation 2019 2018 2017 2019-2018 2018-2017 U.S. dollar - Brazilizan real 4.0307 3.8748 4.02% 3.9461 3.6558 3.1925 7.94% 14.51% Euro - Brazilizan real 4.5305 4.4390 2.06% 4.4159 4.3094 3.6089 2.47% 19.41% Mexican peso - Brazilizan real 0.2134 0.1972 8.22% 0.2049 0.1901 0.1694 7.80% 12.24% U.S. dollar - Mexican peso 18.8858 19.6655 -3.96% 19.2568 19.2363 18.9142 0.11% 1.70% U.S. dollar - Euro 0.8926 0.8729 2.26% 0.8930 0.8471 0.8871 5.42% -4.50% (d) Hyperinflationary economy In July 2018, the International Accounting Standards Board (IASB) issued a report updating the list of countries with hyperinflationary economies in which Argentina was included. IAS 29 - Financial Reporting in Hyperinflationary Economies) details the procedures that must be carried out at Braskem Argentina after such change in scenario. According to IAS 21 – Effects of changes in foreign exchange rates and conversion of financial statements, the conversion procedure for a balance sheet from a hyperinflationary economy differs from the procedures for a non-inflationary economy. For converting the balance sheet of Braskem Argentina, assets, liabilities, equity, income and expenses (including comparative balances) must be translated into the reporting currency using the closing quote of the exchange rate on the reporting date. |
Consolidation | 2.3 Consolidation 2.3.1 Business combinations Business combinations are recognized using the acquisition method when control is transferred to the Company. The consideration transferred generally is measured at fair value, as also is the identifiable net assets acquired. Any goodwill arising from the transaction is tested annually for impairment loss. Gains on bargain purchase are immediately recognized in the profit or loss. Transaction costs are recognized into the result as incurred, except any costs associated with issuances of debt or equity instruments. Any contingent consideration payable is measured at its fair value on the acquisition date. If the contingent consideration is classified as an equity instruments, it is not remeasured and the settlement is recognized in equity. Other contingent considerations are remeasured at fair value on each reporting date and subsequent changes to fair value are recognized in the income statement for the fiscal year. 2.3.2 Subsidiaries The Company controls an entity when it is exposed to, or entitled to, the variable returns originating from its involvement with the entity and has the capacity to affect such returns by exercising its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements as from the date the Company obtains control until the date of the loss of control. 2.3.3 Investments in entities with accounting treatment using the equity method The Company’s investments in entities with accounting treatment using the equity method consist of their interests in associated companies. Associated companies are those over which the Company, directly or indirectly, holds significant influence, but not control or joint control, over the financial and operational policies. Such investments are initially recognized at cost, which includes the expenses with the transaction. After initial recognition, the financial statements include the Company’s interest in the net profit or loss for the fiscal year and other comprehensive income in the investee until the date on which the significant influence or joint control ceases to exist. 2.3.4 Transactions eliminated in consolidation Intragroup balances and transactions and any unrealized revenues or expenses arising from intragroup transactions are eliminated. Unrealized gains originating from transactions with investees recorded using the equity method are eliminated against the investment proportionately to the Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment loss. |
Employee benefits | 2.4 Employee benefits 2.4.1 Short-term benefits for employees The obligations of short-term benefits for employees are recognized as personnel expenses as the corresponding service is rendered. The liability is recognized at the amount of the expected payment if the Company has a legal or constructive obligation to pay the amount due to services rendered by an employee in the past and the obligation can be reliably estimated. 2.4.2 Share-based payment agreement The fair value at the issue date of share-based payments granted to employees is recognized as personnel expenses, with a corresponding increase in shareholders' equity, during the period the employees acquire the full right to the award. The amount recognized as an expense is adjusted to reflect the number of awards for which there is an expectation that the service and performance requirements will be fulfilled, so that the final amount recognized as an expense is based on the number of awards that effectively fulfill the service and performance conditions on the vesting date. For share-based payment awards with non-vesting conditions, the fair value at the grant date of the share-based awards is measured to reflect such conditions and no further adjustments are made for the differences between the expected and actual results. The fair value of the amount payable to employees related to rights on stock price appreciation, which are settled in cash, is recognized as an expense with a corresponding increase in liabilities during the period in which the employees acquire the full right to the payment. The liabilities are remeasured on each reporting date and on the settlement date, based on the fair value of the rights to stock price appreciation. Any changes in the fair value of the liability are recognized in the income statement as personnel expenses. 2.4.3 Defined benefit plan The Company’s net obligation for defined benefit plans is calculated for each of the plans based on the estimated amount of future benefit that employees will receive in return for services rendered in the current and prior periods. Such amount is discounted to its present value and is reported net of the fair value of any of the plan’s assets. The calculation of the obligation of the defined benefit plan is made annually by a qualified accountant using the projected unit credit method. When calculations results in a potential asset for the Company, the asset to be recognized is limited to the present value of economic benefits available as future plan reimbursements or as a reduction in future contributions to the plan. To calculate the present value of economic benefits, any applicable minimum cost requirements are taken into account. Remeasurements of net obligation, which include: actuarial gains and losses, return on plan assets (excluding interest) and the effects of the asset cap (if any, excluding interest), are immediately recognized in other comprehensive income. |
Changes in key accounting policies | 2.5 Changes in key accounting policies (a) IFRS 16 – Leases For its transition, the Company adopted the modified retrospective approach, i.e., it applied the requirements of the lease standard to all existing agreements on the initial adoption date, i.e. January 1, 2019. Therefore, information and balances were not restated for comparison purposes. After the date of the first-time application, on January 1, 2019, leases were recognized as a right-of-use asset and a corresponding liability on the date on which the leased asset becomes available to the Company. For each right-of-use asset measured, an equivalent liability was recorded.The payment is recorded as a reduction of the lease liability. The financial cost of the lease liability is recorded in the profit and loss during the enforceable term of the lease, applying a constant interest rate on the remaining balance of the liability. The right-of-use asset is depreciated using the straight-line method considering the shortest period between the useful life of the asset and the enforceable term of the lease. Definition of a Lease Previously, the Company determined at contract inception whether an arrangement was or contained a lease under IFRIC 4 Determinig whether an Arrengement contains a Lease As a lessee To determine the enforceable term of the lease, the management considers all facts and circumstances that create an economic incentive for exercising the option of extension or create economic disincentives for not exercising the option of early termination. When adopting IFRS 16, the Company recognized its lease liabilities in relation to the lease agreements previously classified as “operating leases” under IAS 17. Up to the financial statements for 2018, the payments of these leases, net of any incentives received from the lessor, were recognized as profit or loss during the lease period. For leases previously classified as “financial leases” the Company recognized the lease asset and liability considering the amount immediately prior to the date of first-time adoption. On the date of adoption, the assets and liabilities from lease agreements were measured at their present value, considering the outstanding payments of each agreement, discounting by the Company´s incremental borrowing rate on January 1, 2019. The weighted average incremental rate applied upon first-time adoption was 5.58% p.a.. The lease liability considers the net present value of the following lease payments: · Fixed payments discounting any incentive received; · Variable payments based on rates or indexes; · Expected payables to the lessor referring to the guaranteed residual amount; · Exercise price of a purchase option, if it is reasonably certain that lessee will exercise such option; and · Payment of fines for termination of the lease if the contractual terms provide for lessee’s exercise option. Commitments of operating leases as of December 31, 2018 3,257,982 Lease liability recognized on January 1, 2019 Lease commitments discounted at the incremental rate on the date of initial application 2,177,138 (Plus) Financial leases as of December 31, 2018 100,557 (Minus): short-term leases recognized immediately in profit or loss (103,929) (Minus): low value contracts recognized immediately in profit or loss (1,071) (Plus): Extension options reasonably certain to be exercised 119,770 Total 2,292,465 The right-of-use assets were measured by the amount of the lease liabilities, adjusted by any amount of advanced payments and provisions for lease payments related to the lease recognized on January 1, 2019.There were no onerous leases that required adjustment to the right-of-use assets on the date of first-time adoption. Upon first-time adoption, the Company used the following practical expedients permitted under IFRS 16: · Not to reevaluate whether the contract is or contains any lease on the initial adoption date. Instead, applied the standard to agreements that were previously identified as leases; · Opt not to separate non-lease components from lease components, considering them, therefore, as a single lease component; · Not to record contracts, that on the date of the initial adoption date, will end within 12 months; as long as the Company is not reasonably certain to exercise the purchase option at the end of the contract; · Not to record low-value agreements (R$30 for companies in Brazil and US$10 for foreign subsidiaries), in accordance with the policy defined by Management; · Excluded the direct initial costs from measuring the right of use asset on the initial adoption date; · Used hindsight, such as determining the term of the lease, if the contract contains options to postpone or terminate the lease, among others; and · Applied 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”). Leases classified as finance leases under IAS 17 The Company leases some equipments classified as finance leases under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at 1 January 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date. (b) IFRIC 23 – Uncertainty on Income Tax Treatment The new interpretation establishes requirements for recognition and measurement in situations where the Company has defined, 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 tax authorities. The Company concluded the analyses of the application of this standard and did not identify any impacts on the consolidated financial statements. |
New or revised pronouncements not yet in effective | 2.6 New or revised pronouncements not yet in effective New standards and amendments of standards come into force in annual periods starting after January 1, 2020 and their early adoption is permitted. The Company did not early adopt the following new standards and intepretations for preparing these consolidated financial statements: - Changes to references to the conceptual structure of IFRS; - Definition of business (changes to IFRS 13); - Definition of materiality (amendments to IAS 1 and IAS 8); - IFRS 17 – Insurance agreements. The amended standards and interpretations are not expected to produce a significant impact on the consolidated financial statements. |
Change in the presentation of provision, expense method by function | 2.7 Change in the presentation of provision, expense method by function In the year ended December 31, 2019, the Company changed the classification of the profit sharing expenses in order to report the effects of this expense by function for better presentation of the consolidated financial statements. The Company has reclassified the prior year financial statements to conform to the current year presentation. In the year ended December 31, 2018, the amounts related to this item were reclassified from “Other expenses” (R$375,360) to “cost of goods sold” (R$145,437, “selling and distribution expenses” (R$50,306), “general and administrative expenses” (R$160,182) and research and development (R$19,435). For the year ended December 31, 2017 the effect of the reclassification was not material. |
2 Accounting policies (Tables)
2 Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
Schedule of subsidiaries and specific purpose entities | The consolidated financial statements comprises the financial statements of the Braskem S.A. and the following entities: Total and voting interest - % Headquarters 2019 2018 2017 Direct and Indirect subsidiaries BM Insurance Company Limited ("BM Insurance") (i) Bermuda 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 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 International GmbH ("Braskem Austria") (ii) Austria 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 Cetrel S.A. ("Cetrel") Brazil 63.70 63.66 63.66 Distribuidora de Água Camaçari S.A. ("DAC") Brazil 63.70 63.66 63.66 Lantana Trading Co. Inc. (“Lantana”) Bahamas 100.00 100.00 100.00 Specific Purpose Entity ("SPE") Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") Brazil 100.00 100.00 100.00 Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") (iii) Brazil 100.00 100.00 (i) Created in October 2018. (ii) Terminated in June 2018. (iii) Multi-asset fund created in December 2018. |
Schedule of functional currencies | The subsidiaries with a functional currency different from that of the Braskem S.A. are listed below: Functional currency Subsidiaries Braskem Alemanha Euro BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, U.S.dollar Braskem Idesa , Braskem Idesa Serviços, Braskem México and Braskem México Serviços Mexican peso Braskem Argentina Argentinean peso Braskem Chile Chilenean peso |
Schedule of exchange variation effects | The effects from exchange variation on the Company’s transactions are mainly due to the variations in the following currencies: End of period rate at December 31 Average rate Variation 2019 2018 Variation 2019 2018 2017 2019-2018 2018-2017 U.S. dollar - Brazilizan real 4.0307 3.8748 4.02% 3.9461 3.6558 3.1925 7.94% 14.51% Euro - Brazilizan real 4.5305 4.4390 2.06% 4.4159 4.3094 3.6089 2.47% 19.41% Mexican peso - Brazilizan real 0.2134 0.1972 8.22% 0.2049 0.1901 0.1694 7.80% 12.24% U.S. dollar - Mexican peso 18.8858 19.6655 -3.96% 19.2568 19.2363 18.9142 0.11% 1.70% U.S. dollar - Euro 0.8926 0.8729 2.26% 0.8930 0.8471 0.8871 5.42% -4.50% |
Schedule of commitments of operating leases | Commitments of operating leases as of December 31, 2018 3,257,982 Lease liability recognized on January 1, 2019 Lease commitments discounted at the incremental rate on the date of initial application 2,177,138 (Plus) Financial leases as of December 31, 2018 100,557 (Minus): short-term leases recognized immediately in profit or loss (103,929) (Minus): low value contracts recognized immediately in profit or loss (1,071) (Plus): Extension options reasonably certain to be exercised 119,770 Total 2,292,465 |
3 Application of critical est_2
3 Application of critical estimates and judgments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Application Of Critical Estimates And Judgments | |
Schedule of useful life of assets | The useful lives applied to the assets determined the following average (%) depreciation, amortization and depletion rates: 2019 2018 Buildings and improvements 3.42 3.42 Machinery, equipment and installations 8.01 8.04 Mines and wells 8.70 8.84 Furniture and fixtures 10.00 10.03 IT equipment 20.04 20.13 Lab equipment 9.45 9.53 Security equipment 9.45 9.72 Vehicles 16.90 17.83 Other 18.23 18.82 |
4 Risk management (Tables)
4 Risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Schedule of financial liabilities by maturity | These amounts are gross and undiscounted and include contractual interest payments, therefore may not be reconciled with the balance sheet. Maturity Until Between one and Between two and More than one year two years five years five years Total Trade payables 9,194,081 3,837 9,197,918 Borrowings 857,768 2,277,351 7,198,320 40,087,917 50,421,356 Debentures 51,348 126,754 143,307 28,703 350,112 Braskem Idesa borrowings 806,378 1,743,252 2,351,076 9,504,803 14,405,509 Derivatives 49,251 76,791 92,287 435 218,764 Loan to non-controlling shareholder of Braskem Idesa 2,395,887 2,395,887 Other financial liabilities 534,456 534,456 Leniency agreement (Note 25) 363,720 376,294 1,043,168 175,058 1,958,240 Lease 665,164 565,824 1,174,827 710,044 3,115,859 At December 31, 2019 12,522,166 5,170,103 12,002,985 52,902,847 82,598,101 |
5 Cash and cash equivalents (Ta
5 Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | 2019 2018 Cash Domestic market 13,495 47,735 Foreign market (i) 2,289,736 2,181,229 Cash equivalents: Domestic market 1,963,185 1,754,561 Foreign market (i) 2,537,464 1,564,112 Total 6,803,880 5,547,637 (i) On December 31, 2019, it includes cash of R$598,591 and R$418,644 of cash equivalents (R$963,357 on December 31, 2018) of the subsidiary Braskem Idesa, which cannot be used by the other subsidiaries of the Company. |
6 Financial investments (Tables
6 Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Investments | |
Schedule of financial investments | 2019 2018 Amortized cost Time deposit investments 38,759 49,630 Fair value through profit or loss LFT´s and LF´s (i) 1,588,426 2,247,272 Restricted funds investments (ii) 9,708 9,998 Other 60,319 60,711 Total 1,697,212 2,367,611 Current assets 1,687,504 2,357,613 Non-current assets 9,708 9,998 Total 1,697,212 2,367,611 (i) These 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 original maturity above three months, immediate liquidity in the secondary market and Management expects their realization in the short term. (ii) Restricted funds represent bank deposits with yields of approximately 100% of the Interbank Deposit Rate (“CDI”), and their use is related to the fulfillment of the contractual obligations of the debentures. |
7 Trade accounts receivable (Ta
7 Trade accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade Accounts Receivable | |
Schedule of trade accounts receivable | At December 31, 2019, total amount of the operation was R$ 2.0 billion. Note 2019 2018 Customers Domestic market Third parties 1,049,412 1,402,638 Related parties 9 8,814 22,806 1,058,226 1,425,444 Foreign market Third parties 1,477,748 1,901,184 1,477,748 1,901,184 Allowance for doubtful accounts (i) (229,323) (233,625) Total 2,306,651 3,093,003 Current assets 2,285,750 3,075,218 Non-current assets 20,901 17,785 Total 2,306,651 3,093,003 (i) Company’s expected credit losses are determined based on the following stages: |
Schedule of expected credit loss | The following table shows the Company’s expected credit loss for each stage: Estimated loss Trade accounts receivable Allowance for Stage 1 Operation risk 1 Minimum risk 1,635,553 Operation risk 2 Minimum risk 337,044 Operation risk 3 0.24% 201,126 485 Operation risk 4 0.57% 126,250 720 Operation risk 5 100% 1,778 1,778 2,301,751 2,983 Stage 2 1st Renegotiation lower than 24 months 24% or 100% 6,631 1,717 2nd Renegotiation greater than 24 months 91% or 100% 1,558 1,558 Legal 100% 170,698 170,698 178,887 173,973 Stage 3 Between 90 and 180 days 50% or 100% 6,126 3,157 Above 180 days 100% 49,210 49,210 55,336 52,367 Total 2,535,974 229,323 |
Schedule of changes in allowance for doubtful accounts | The changes in the allowance for doubtful accounts are presented below: 2019 2018 Balance of provision at the beginning of the year (233,625) (350,025) Provision in the year (59,885) (24,604) Reversal in the year 45,501 124,579 Write-offs 18,686 16,425 Balance of provision at the end of the year (229,323) (233,625) |
Schedule of trade accounts receivable by maturity | The breakdown of trade accounts receivable by maturity is as follows: 2019 2018 Accounts receivables not past due 2,001,326 2,616,104 Past due securities: Up to 90 days 318,852 492,265 91 to 180 days 15,368 10,941 As of 180 days 200,428 207,318 2,535,974 3,326,628 Allowance for doubtful accounts (229,323) (233,625) Total customers portfolio 2,306,651 3,093,003 |
8 Inventories (Tables)
8 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Inventories Abstract | |
Schedule of inventory | 2019 2018 Finished goods 4,634,192 5,542,220 Raw materials, production inputs and packaging 1,665,797 1,578,523 Maintenance materials 608,693 465,684 Advances to suppliers 68,382 93,445 Imports in transit 664,345 838,099 Total 7,641,409 8,517,971 Current assets 7,625,084 8,486,577 Non-current assets 16,325 31,394 Total 7,641,409 8,517,971 |
Schedule of provision for inventories | The effect of the provision for inventories in 2019 and 2018 is shown below: 2019 2018 Additions (72,672) (23,674) Reversals 10,636 14,721 Total (62,036) (8,953) |
9 Related parties (Tables)
9 Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party transactions [abstract] | |
Schedule of related party transactions | Balances at December 31, 2019 Balances at December 31, 2018 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and Balance sheet and associates subsidiaries Other Total and associates subsidiaries Other Total Assets Current Trade accounts receivable 4,257 4,557 8,814 20,119 2,687 22,806 Inventories 17,242 17,242 8,665 30,193 38,858 Dividends and interest on capital 3,074 3,074 890 890 Total assets 21,499 7,631 29,130 8,665 50,312 3,577 62,554 Liabilities Current Trade payables 12,402 133,759 9,819 155,980 16,851 160,324 177,175 Payable notes 58 58 Other payables 1,420 136 1,556 2,841 484 3,325 Non-current Loan to non-controlling shareholders of Braskem Idesa 2,395,887 2,395,887 2,183,830 2,183,830 Total liabilities 12,460 135,179 2,405,842 2,553,481 19,692 160,808 2,183,830 2,364,330 Twelve-month period ended December 31, 2019 Twelve-month period ended December 31, 2018 Twelve-month period ended December 31, 2017 Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Associates companies, Jointly-controlled investment and Related companies Odebrecht and Odebrecht and Odebrecht and subsidiaries Petrobras and subsidiaries Petrobras and subsidiaries Petrobras and and associates subsidiaries Other Total and associates subsidiaries Other Total and associates subsidiaries Other Total Transactions Sales of products 665,417 588,785 1,254,202 1,225,443 736,192 1,961,635 27,467 1,810,789 629,302 2,467,558 Purchases of raw materials, finished goods services and utilities 293,501 12,584,453 10,738 12,888,692 460,480 15,540,144 3,800 16,004,424 742,161 12,795,819 5,664 13,543,644 Financial income (expenses), net (96) (5) (10,967) (11,068) (49) (106,516) (106,565) 2,056 (39,433) (37,377) Other income (expenses) (34,873) (34,873) 4,214 4,214 General and administrative expenses Post-employment benefits plan ("EPE") Private pension ("Vexty", new name of Odeprev) 49,867 49,867 48,514 48,514 36,725 36,725 Acquisiton of subsidiary 610,000 610,000 |
Schedule of key management personnel | (b) Key management personnel Statement of profit or loss transactions 2019 2018 2017 Remuneration Short-term benefits 70,366 60,922 60,303 Post-employment benefit 1,104 989 664 Long term incentive plan 14,724 4,404 Total 86,194 66,315 60,967 |
10 Taxes recoverable (Tables)
10 Taxes recoverable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Recoverable | |
Schedule of taxes recoverable | 2019 2018 Parent Company and subsidiaries in Brazil IPI 477 9,050 Value-added tax on sales and services (ICMS) - normal operations (a) 255,945 427,331 ICMS - credits from PP&E 166,824 170,998 Social integration program (PIS) and social contribution on revenue 45,604 482 PIS and COFINS - credits from PP&E 316,973 255,739 REINTEGRA program (b) 19,848 20,615 Federal tax credits (c) 2,459,293 688,111 Other 5,434 2,852 Foreign subsidiaries Value-added tax ("IVA") 217,630 173,051 Other 7,701 7,750 Total 3,495,729 1,755,979 Current assets 1,238,011 423,188 Non-current assets 2,257,718 1,332,791 Total 3,495,729 1,755,979 |
11 Investments (Tables)
11 Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of associates [abstract] | |
Schedule of investments | (a) Information on investments Interest in total and Net profit (loss) voting capital (%) for the year Equity Direct and indirect 2019 2018 2017 2019 2018 Jointly-controlled investment RPR (i) 33.20 29,687 6,358 106,109 93,025 99,672 Odebrecht Comercializadora de Energia S.A. ("OCE") (ii) (48) (543) Associate Borealis (iii) 20.00 17,622 (2,900) 17,752 164,086 163,884 (i) RPR – its main activities are the refine, processing and sale and import of oil, its byproducts and correlated products. (ii) Terminated in June 2018. (iii) Borealis – its main activities are the production and commercialization of petrochemical byproducts and correlated products. |
Schedule of changes in investments | (b) Changes in investments Dividends Equity Balance at and interest Equity in results valuation Balance at 2018 on equity of investees adjustments Other 2019 Domestic associate Borealis 32,776 (3,002) 3,042 32,816 RPR 33,094 (4,295) 9,857 (7,769) 30,887 Other 84 - 56 140 65,954 (7,297) 12,899 (7,769) 56 63,843 |
Schedule of 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, and the material effects on the Company’s consolidated statements. Balance sheet Consolidated Braskem without the effect of Braskem Idesa consolidated (i) Eliminations Consolidated 2019 2018 2019 2018 2019 2018 2019 2018 Assets Curent Cash and cash equivalents 5,786,645 4,584,280 1,017,235 963,357 6,803,880 5,547,637 Financial investments 1,687,504 2,357,613 1,687,504 2,357,613 Trade accounts receivable 1,973,414 2,574,791 331,838 627,879 (19,502) (127,452) 2,285,750 3,075,218 Inventories 7,028,641 7,907,429 596,443 579,148 7,625,084 8,486,577 Taxes recoverable 1,084,055 313,499 153,956 109,689 1,238,011 423,188 Income tax and social contribution 439,933 423,900 439,933 423,900 Derivatives 4,712 6,714 21,000 4,712 27,714 Judicial deposits 2,571,683 2,571,683 Other receivables 393,593 372,846 339,404 319,122 732,997 691,968 20,970,180 18,541,072 2,438,876 2,620,195 (19,502) (127,452) 23,389,554 21,033,815 Non-current Taxes recoverable 2,257,652 1,332,730 66 61 2,257,718 1,332,791 Income tax and social contribution 239,847 241,788 239,847 241,788 Deferred tax 1,713,837 114,000 948,759 990,158 2,662,596 1,104,158 Related parties 6,729,486 6,137,206 (ii) (6,729,486) (6,137,206) Derivatives 17,877 46,664 17,877 46,664 Judicial deposits 1,508,880 169,536 1,508,880 169,536 Other receivables 369,137 377,356 505 553 369,642 377,909 Property, plant and equipment 20,488,870 20,102,981 12,537,615 12,365,063 (iii) (711,304) (708,154) 32,315,181 31,759,890 Intangible 2,568,347 2,562,722 193,741 178,260 2,762,088 2,740,982 Right of use of assets 2,309,506 296,148 2,605,654 38,203,439 31,038,319 13,976,834 13,580,759 (7,440,790) (6,845,360) 44,739,483 37,773,718 Total assets 59,173,619 49,579,391 16,415,710 16,200,954 (7,460,292) (6,972,812) 68,129,037 58,807,533 Liabilities and shareholders' equity Current Trade payables 8,903,168 8,099,755 233,323 368,949 (19,502) (127,452) 9,116,989 8,341,252 Borrowings 774,924 737,436 774,924 737,436 Debentures 46,666 27,732 46,666 27,732 Braskem Idesa Borrowings 744,408 10,504,592 744,408 10,504,592 Payroll and related charges 598,147 617,079 25,576 28,317 623,723 645,396 Taxes payable 306,453 419,204 16,433 12,801 322,886 432,005 Income tax and social contribution 34,856 69,268 34,856 69,268 Lease 619,217 9,767 57,074 676,291 9,767 Provision - geological event in Alagoas 1,450,476 1,450,476 Other financial liabilities 516,933 516,933 Other payables 1,798,865 1,922,781 109,143 75,849 1,908,008 1,998,630 15,049,705 11,903,022 1,185,957 10,990,508 (19,502) (127,452) 16,216,160 22,766,078 Non-current Loan agreements 28,242,052 24,160,720 28,242,052 24,160,720 Braskem Idesa Borrowings 9,237,318 9,237,318 Debentures 227,901 266,777 227,901 266,777 Accounts payable to related parties 6,714,236 6,147,768 (ii) (6,714,236) (6,147,768) Loan to non-controlling shareholders of Braskem Idesa (v) 2,395,887 2,183,830 2,395,887 2,183,830 Deferred income tax and social contribution 273,036 381,582 273,036 381,582 Provision for losses on subsidiaries 3,082,173 2,871,819 (iv) (3,082,173) (2,871,819) Lease 1,767,314 90,790 233,291 2,000,605 90,790 Provision - geological event in Alagoas 1,932,591 1,932,591 Other payables 3,625,695 3,292,738 33,086 10,348 3,658,781 3,303,086 39,150,762 31,064,426 18,613,818 8,341,946 (9,796,409) (9,019,587) 47,968,171 30,386,785 Shareholders' equity Attributable to the Company's shareholders 4,886,089 6,531,070 (3,384,065) (3,131,500) 3,383,274 3,131,500 4,885,298 6,531,070 Non-controlling interest in subsidiaries 87,063 80,873 (1,027,655) (957,273) (940,592) (876,400) 4,973,152 6,611,943 (3,384,065) (3,131,500) 2,355,619 2,174,227 3,944,706 5,654,670 Total liabilities and shareholders' equity 59,173,619 49,579,391 16,415,710 16,200,954 (7,460,292) (6,972,812) 68,129,037 58,807,533 (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 payable, maturing December 2029 and 7% p.a., to the non-controlling shareholder. These proceeds were used by Braskem Idesa to fund its construction project. Statement of profit or loss Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Restated Restated Net revenue 49,961,286 54,851,243 46,207,109 3,050,420 3,766,371 3,656,801 (688,181) (617,748) (603,316) 52,323,525 57,999,866 49,260,594 Cost of products sold (44,111,980) (44,928,721) (34,675,494) (2,509,060) (2,314,998) (2,125,031) 741,922 667,062 623,117 (45,879,118) (46,576,657) (36,177,408) 5,849,306 9,922,522 11,531,615 541,360 1,451,373 1,531,770 53,741 49,314 19,801 6,444,407 11,423,209 13,083,186 Income (expenses) Selling and distribution (1,582,794) (1,495,507) (1,274,362) (200,661) (193,672) (171,791) (1,783,455) (1,689,179) (1,446,153) (Loss) reversals for impairment (4,772) 87,008 (13,455) (2,297) (7,069) 87,008 (13,455) General and administrative (2,082,002) (1,669,277) (1,336,072) (141,269) (123,576) (122,043) (909) (332) 23,843 (2,224,180) (1,793,185) (1,434,272) Research and development (247,730) (219,256) (167,456) (247,730) (219,256) (167,456) Results from equity investments (326,427) 76,821 191,949 336,645 (77,709) (151,993) 10,218 (888) 39,956 Other income 2,102,684 656,725 282,629 305,750 370,497 32,305 2,408,434 1,027,222 314,934 Other expenses (4,466,450) (502,795) (1,169,814) 19,508 (51,918) (4,446,942) (554,713) (1,169,814) (758,185) 6,856,241 8,045,034 522,391 1,452,704 1,270,241 389,477 (28,727) (108,349) 153,683 8,280,218 9,206,926 Financial results Financial expenses (3,009,471) (2,227,544) (3,044,668) (1,205,412) (1,090,019) (973,952) 332,098 310,012 271,403 (3,882,785) (3,007,551) (3,747,217) Financial income 1,135,118 867,185 850,367 47,534 31,879 24,666 (332,098) (310,012) (271,403) 850,554 589,052 603,630 Exchange rate variations, net (1,768,850) (2,014,205) (936,804) 75,610 (232,064) 132,186 (31,280) (10,714) 5,856 (1,724,520) (2,256,983) (798,762) (3,643,203) (3,374,564) (3,131,105) (1,082,268) (1,290,204) (817,100) (31,280) (10,714) 5,856 (4,756,751) (4,675,482) (3,942,349) Profit (loss) before income tax and social contribution (4,401,388) 3,481,677 4,913,929 (559,877) 162,500 453,141 358,197 (39,441) (102,493) (4,603,068) 3,604,736 5,264,577 IR and CSL - current and deferred 1,873,207 (639,394) (1,057,699) 89,463 (97,157) (299,983) 1,962,670 (736,551) (1,357,682) 1,873,207 (639,394) (1,057,699) 89,463 (97,157) (299,983) 1,962,670 (736,551) (1,357,682) Profit (loss)for the year (2,528,181) 2,842,283 3,856,230 (470,414) 65,343 153,158 358,197 (39,441) (102,493) (2,640,398) 2,868,185 3,906,895 Discontinued operations results Profit (loss) from discontinued operations 13,499 13,499 IR and CSL - current and deferred (4,623) (4,623) 8,876 8,876 Profit (loss) for the year (2,528,181) 2,842,283 3,865,106 (470,414) 65,343 153,158 358,197 (39,441) (102,493) (2,640,398) 2,868,185 3,915,771 Statement of cash flows Consolidated Braskem Ex consolidated Braskem Idesa Braskem Idesa consolidated Eliminations Consolidated 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Profit (loss) before income tax and social contribution (4,401,388) 3,481,677 4,913,929 (559,877) 162,500 453,141 358,197 (39,441) (102,493) (4,603,068) 3,604,736 5,264,577 Adjustments for reconciliation of profit (loss) Depreciation, amortization and depletion 2,732,181 2,228,978 2,230,466 952,916 810,581 742,033 (52,832) (48,982) (43,644) 3,632,265 2,990,577 2,928,855 Results from equity investments 326,427 (76,821) (191,949) (336,645) 77,709 151,993 (10,218) 888 (39,956) Interest and monetary and exchange variations, net 3,050,987 4,658,342 2,900,745 1,062,843 1,344,888 802,825 31,280 10,714 (5,856) 4,145,110 6,013,944 3,697,714 Gain from divestment in subsidiary (276,816) (276,816) Reversal of provisions 320,439 23,725 (223,340) 320,439 23,725 (223,340) Provisions - Leniency agreement 375,476 375,476 Provision - geological event in Alagoas 3,383,067 3,383,067 PIS and COFINS credits - exclusion of ICMS from the calculation basis (1,904,206) (519,830) (1,904,206) (519,830) Loss (reversals) for impairment of trade accounts receivable 7,069 (87,008) 13,455 7,069 (87,008) 13,455 Provision for losses and write-offs of long-lived assets 224,825 69,270 212,759 379 3,200 425 225,204 72,470 213,184 3,739,401 9,778,333 9,954,725 1,456,261 2,321,169 1,998,424 5,195,662 12,099,502 11,953,149 Changes in operating working capital Other financial assets (3,680,460) (3,680,460) Financial investments 797,445 98,349 (953,228) 797,445 98,349 (953,228) Trade accounts receivable 677,176 251,683 (1,317,929) 325,820 (7,348) (373,066) (107,950) (20,917) 79,148 895,046 223,418 (1,611,847) Inventories 825,236 (1,337,618) (1,387,696) 42,581 (199,672) 36,668 867,817 (1,537,290) (1,351,028) Taxes recoverable 1,216,225 1,068,637 415,923 (20,798) (46,395) 53,370 1,195,427 1,022,242 469,293 Prepaid expenses 85,549 (67,051) (21,732) 117,183 (38,112) (8,789) 202,732 (105,163) (30,521) Other receivables (242,727) (12,596) 34,500 (30,938) (236,392) (8,698) (273,665) (248,988) 25,802 Trade payables 330,633 1,113,381 (1,444,468) (156,138) 209,077 (119,033) 107,950 20,917 (79,148) 282,445 1,343,375 (1,642,649) Taxes payable (485,309) (828,222) (132,697) (84,484) (149,026) (82,817) (569,793) (977,248) (215,514) Advances from customers 176,189 (218,623) (3,089) 21,776 18,665 (10,423) 197,965 (199,958) (13,512) Leniency agreement (341,605) (330,006) (1,343,803) (341,605) (330,006) (1,343,803) Sundry provisions (226,519) (116,458) 194,596 10,971 (215,548) (116,458) 194,596 Other payables 348,916 415,468 (70,546) 13,287 417,759 126,087 362,203 833,227 55,541 Cash generated (used) from operations 3,220,150 9,815,277 3,924,556 1,695,521 2,289,725 1,611,723 4,915,671 12,105,002 5,536,279 Interest paid (1,576,526) (1,328,420) (1,648,971) (661,919) (588,381) (505,082) (2,238,445) (1,916,801) (2,154,053) Income tax and social contribution paid (403,614) (937,557) (919,236) (8,337) (274) (1,370) (411,951) (937,831) (920,606) Net cash generated (used) by operating activities 1,240,010 7,549,300 1,356,349 1,025,265 1,701,070 1,105,271 2,265,275 9,250,370 2,461,620 Proceeds from the sale of fixed assets and intangible assets 12,590 95,133 39,660 12,590 95,133 39,660 Proceeds from the sale of investments 81,000 450,000 81,000 450,000 Funds received in the investments' capital reduction 2,254 2,254 Dividends received 3,513 41,791 3,513 41,791 Additions to investments in subsidiaries (608,181) (608,181) Acquisitions to property, plant and equipment and intangible assets (2,578,558) (2,635,906) (2,185,567) (103,964) (70,422) (87,630) (2,682,522) (2,706,328) (2,273,197) Other investments (2,167) (14,683) (2,167) (14,683) Net cash used in investing activities (2,562,455) (2,417,895) (2,318,771) (103,964) (70,422) (87,630) (2,666,419) (2,488,317) (2,406,401) Short-term and long-term debt Acquired 20,586,103 4,301,626 8,492,341 20,586,103 4,301,626 8,492,341 Payments (17,425,409) (6,592,197) (8,779,091) (17,425,409) (6,592,197) (8,779,091) Derivative transactions Payments (810,279) (810,279) Braskem Idesa borrowings Acquired 3,497,622 187,959 3,497,622 187,959 Payments (4,398,453) (812,929) (1,080,502) (4,398,453) (812,929) (1,080,502) Related parties Acquired loans (payment of loans ) 72,880 20,637 (72,880) (20,637) Lease (407,320) (46,870) (454,190) Dividends paid (668,904) (1,499,900) (998,893) (668,904) (1,499,900) (998,893) Other financial liabilities 499,999 499,999 Cash generated (used) in financing activities 2,584,469 (3,717,591) (2,075,285) (947,701) (885,809) (913,180) 1,636,768 (4,603,400) (2,988,465) Exchange variation on cash of foreign subsidiaries (59,659) (309,941) 17,849 80,278 (76,168) (11,374) 20,619 (386,109) 6,475 Increase in cash and cash equivalents 1,202,365 1,103,873 (3,019,858) 53,878 668,671 93,087 1,256,243 1,772,544 (2,926,771) Represented by Cash and cash equivalents at the beginning for the year 4,584,280 3,480,407 6,500,265 963,357 294,686 201,599 5,547,637 3,775,093 6,701,864 Cash and cash equivalents at the end for the year 5,786,645 4,584,280 3,480,407 1,017,235 963,357 294,686 6,803,880 5,547,637 3,775,093 Increase in cash and cash equivalents 1,202,365 1,103,873 (3,019,858) 53,878 668,671 93,087 1,256,243 1,772,544 (2,926,771) |
12 Property, plant and equipm_2
12 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of changes in property, plant and equipment | (a) Change Land Buildings and Improvements Machinery, Equipment and Facilities Projects and Stoppage in Progress (i) Other Total Balance as of December 31, 2017 500,646 4,570,497 20,583,099 3,274,665 832,703 29,761,610 Cost - previously disclosed 500,646 6,058,259 39,211,042 3,274,665 1,755,092 50,799,704 Cost - reclassification 68,902 (70,296) 1,038,042 186,606 (92,650) 1,130,604 Cost - reclassified 569,548 5,987,963 40,249,084 3,461,271 1,662,442 51,930,308 Accumulated depreciation/depletion - previously disclosed (1,487,762) (18,627,943) (922,389) (21,038,094) Accumulated depreciation/depletion - reclassification (88,244) (964,517) (77,843) (1,130,604) Accumulated depreciation/depletion - reclassified (1,576,006) (19,592,460) (1,000,232) (22,168,698) Balance as of January 1, 2018 569,548 4,411,957 20,656,624 3,461,271 662,210 29,761,610 Acquisitions 372 201,492 2,439,286 13,199 2,654,349 Capitalized financial charges 178,055 178,055 Foreign currency translation adjustment 32,751 593,228 1,433,855 137,551 30,411 2,227,796 Cost 32,751 674,720 1,727,164 137,551 52,242 2,624,428 Depreciation, amortization and depletion (81,492) (293,309) (21,831) (396,632) Transfers by concluded projects 16,477 1,022,560 (1,106,975) 67,938 Transfers to intangible (2,922) (1,539) (4,461) Disposals (2,009) (40,503) (3,873) (1,675) (48,060) Cost (2,983) (175,562) (3,873) (9,475) (191,893) Depreciation, amortization and depletion 974 135,059 7,800 143,833 Depreciation, amortization and depletion (370,035) (2,487,820) (151,544) (3,009,399) Net book value 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 Cost 602,299 6,676,549 43,024,738 5,102,393 1,784,807 57,190,786 Accumulated depreciation, amortization and depletion (2,026,559) (22,238,530) (1,165,807) (25,430,896) Balance as of December 31, 2018 602,299 4,649,990 20,786,208 5,102,393 619,000 31,759,890 Acquisitions 1,280 61,213 2,658,070 3,701 2,724,264 Capitalized financial charges 198,201 198,201 Foreign currency translation adjustment 11,508 289,118 675,400 105,701 3,536 1,085,263 Cost 11,508 366,939 860,672 105,701 10,109 1,354,929 Depreciation, amortization and depletion (77,821) (185,272) (6,573) (269,666) Transfers by concluded projects 21,382 884,606 (993,024) 87,036 Transfers to inventory (47,696) (2,866) (50,562) Transfers to intangible (6,433) (6,433) Cost (6,433) (6,433) Disposals (634) (223,514) (7,739) (3,659) (235,546) Cost (1,178) (392,033) (7,739) (31,264) (432,214) Depreciation, amortization and depletion 544 168,519 27,605 196,668 Depreciation, amortization and depletion (388,869) (2,534,637) (138,395) (3,061,901) Transfers to right of use of assets (97,995) (97,995) Cost (125,497) (125,497) Amortization 27,502 27,502 Net book value 11,508 (77,723) (1,136,932) 1,763,008 473,224 32,315,181 Cost 613,807 7,064,972 44,439,196 7,009,473 1,726,026 60,853,474 Accumulated depreciation, amortization and depletion (2,492,705) (24,789,920) (1,255,668) (28,538,293) Balance as of December 31, 2019 613,807 4,572,267 19,649,276 7,009,473 470,358 32,315,181 (i) On December 31, 2019, 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$1,400,667), capitalized financial charges (R$419,244), inventories of spare parts (R$430,418), strategic projects ongoing in Brazil (R$98,879) and in Braskem America (R$2,611,034). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. |
Schedule of property, plant and equipment by country | (b) Property, plant and equipment by country 2019 2018 Brazil 15,682,081 16,278,608 Mexico 11,826,309 11,656,910 United States of America 4,545,974 3,539,495 Germany 258,291 273,987 Other 2,526 10,890 32,315,181 31,759,890 |
13 Intangible assets (Tables)
13 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Schedule of changes in intangible assets | Customers Brands Software and Suppliers Goodwill and Patents licenses Agreements Total Balance as of December 31, 2017 2,058,874 230,087 192,140 246,396 2,727,497 Cost - previously disclosed 3,187,722 349,316 607,528 772,253 4,916,819 Cost - reclassification (44) 58,515 117,743 121,861 298,075 Cost - reclassified 3,187,678 407,831 725,271 894,114 5,214,894 Accumulated amortization - previously disclosed (1,128,848) (119,229) (415,388) (525,857) (2,189,322) Accumulated amortization - reclassification 44 (61,252) (108,644) (128,223) (298,075) Accumulated amortization - reclassified (1,128,804) (180,481) (524,032) (654,080) (2,487,397) Balance as of January 1, 2018 2,058,874 227,350 201,239 240,034 2,727,497 Acquisitions 51,707 272 51,979 Foreign currency translation adjustment 23,966 10,037 (185) 33,818 Cost 27,021 21,053 94,351 142,425 Amortization (3,055) (11,016) (94,536) (108,607) Transfers by projects and stoppage in progress 2,532 1,929 4,461 Disposals (1,003) (1,003) Cost (596,557) (596,557) Amortization 595,554 595,554 Amortization (7,551) (30,780) (37,439) (75,770) Net book value 2,058,874 246,297 234,132 201,679 2,740,982 Cost 3,187,678 437,384 799,960 392,180 4,817,202 Accumulated amortization (1,128,804) (191,087) (565,828) (190,501) (2,076,220) Balance as of December 31, 2018 2,058,874 246,297 234,132 201,679 2,740,982 Acquisitions 112 61,414 61,526 Foreign currency translation adjustment 12,957 2,704 15,661 Cost 13,919 6,356 20,275 Amortization (962) (3,652) (4,614) Transfers from property, plant and equipment 6,433 6,433 Other Cost (4) (4) Amortization 4 4 Amortization (7,751) (32,747) (22,016) (62,514) Net book value 2,058,874 251,615 271,936 179,663 2,762,088 Cost 3,187,678 451,415 874,159 392,180 4,905,432 Accumulated amortization (1,128,804) (199,800) (602,223) (212,517) (2,143,344) Balance as of December 31, 2019 2,058,874 251,615 271,936 179,663 2,762,088 Average annual rates of amortization 4.96% 12.40% 6.00% |
Schedule of goodwill impairment testing | On December 31, 2019, the Company tested the balances of goodwill shown in the table below for impairment: Goodwill CGU Southern petrochemical complex 1,390,741 Northeastern petrochemical complex 475,780 Vinyls unity 192,353 |
Schedule of intangible assets by country | (c) Intangible assets by country 2019 2018 Brazil 2,521,941 2,510,503 Mexico 193,741 178,261 United States of America 24,313 26,791 Germany 22,077 25,373 Other 16 54 2,762,088 2,740,982 |
14 Right-of-use assets and Le_2
14 Right-of-use assets and Lease Liability (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Right-of-use Assets And Lease Liability | |
Schedule of changes in right-of-use assets | Changes in right-of-use assets in 2019: Transfer of Initial Adoption Foreign currency 2018 fixed assets 01/01/2019 Addition Depreciation Disposal translation adjustment 2019 Buildings and constructions 207,524 153,771 (27,759) (122,488) 1,122 212,170 Computer equipment and goods 2,726 4,932 6,179 (1,446) 132 12,523 Machinery and equipment 7,956 526,318 344,928 (136,615) 661 743,248 Ships 906,495 150,670 (191,778) 865,387 Rail cars 87,313 633,492 103,169 (132,728) 54,794 746,040 Vehicles 35,479 1,073 (10,493) 227 26,286 Total 97,995 2,314,240 759,790 (500,819) (122,488) 56,936 2,605,654 |
Schedule of changes in lease liability | Changes in lease liability 2019 Balance at December 31, 2018 100,557 Initial adoption IFRS 16 2,191,908 Balance at January 01, 2019 2,292,465 Acquired 911,619 Disposals (122,488) Interests and monetary and exchange variations, net 121,061 Currancy translation adjustments 56,805 Payments (454,190) Interest paid (128,376) Balance at December 31, 2019 2,676,896 Current liability 676,291 Non-current liability 2,000,605 Total 2,676,896 |
Schedule of payment schedule by maturity | Payment Schedule 2019 2021 484,956 2022 421,163 2023 316,218 2024 293,363 2025 177,118 2026 thereafter 307,787 Total 2,000,605 |
15 Trade account payables (Tabl
15 Trade account payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule or trade account payables | Note 2019 2018 Trade payables: Domestic market Third parties 1,081,076 1,374,379 Related parties 9 155,980 177,175 1,237,056 1,551,554 Foreign market Third parties (i) 7,964,536 6,934,598 Present value adjustment - foreign market (ii) (80,766) (107,648) 9,120,826 8,378,504 Current liabilities 9,116,989 8,341,252 Non-current liabilities 3,837 37,252 9,120,826 8,378,504 (i) Considers R$6.5 billion (R$5.6 billion in 2018) in raw material purchases due in up to 360 days for which the Company provides letters of credit issued by financial institutions that indicate the suppliers as beneficiaries. (ii) The rate for calculating the Present Value Adjustment applied to the external market payments with terms equal to or longer than 90 day is calculated based on the average rate for lengthening the term of trade payables. |
16 Borrowings (Tables)
16 Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Schedule of borrowings | (a) Borrowings (i) Annual financial charges 2019 2018 Foreign currency Bonds Note 16 (b) 24,583,325 21,930,575 Export prepayment Note 16 (c) 863,293 810,542 Working capital Argentine Peso exchange variation 48 Investments Note 16 (d) 751,376 620,160 Other Note 16 (e) 1,952,667 1,147,397 Transactions costs (499,194) (346,921) 27,651,467 24,161,801 Current liabilities 676,831 610,922 Non-current liabilities 26,974,636 23,550,879 Total 27,651,467 24,161,801 Local currency Export credit notes 100.00 of CDI + 0.70 405,642 406,258 Commercial notes 100.00 of CDI + 0.85 554,307 BNDES 4.00 19,998 52,081 BNDES IPCA + 6.04 270,520 BNB/ FINEP/ FUNDES/FINISA/FINAME 6.01 78,776 239,969 FINAME TLP + 6.00 324 555 BNB-FNE (Fundo Constitucional de Financiamentos do Nordeste) IPCA + interest between 2.39 and 2.78 5,582 Fundo de Desenvolvimento do Nordeste (FDNE) 6.50 32,152 37,099 Other 19.14 237 426 Transactions costs (2,029) (33) 1,365,509 736,355 Current liabilities 98,093 126,514 Non-current liabilities 1,267,416 609,841 Total 1,365,509 736,355 Foreign currency and local currency Current liabilities 774,924 737,436 Non-current liabilities 28,242,052 24,160,720 Total 29,016,976 24,898,156 (i) At December 31, 2109, the Company complied with all covenants. |
Schedule of bonds | (b) Bonds Issue amount Interest Issue date US$ Maturity (% per year) 2019 2018 May-2010 (i) 400,000 May-2020 7.00 81,434 May-2010 (i) 350,000 May-2020 7.00 1,370,156 October-2010 450,000 no maturity date 7.38 1,025,428 985,767 April-2011 (i) 750,000 April-2021 5.75 2,676,195 July-2011 500,000 July-2041 7.13 2,078,372 1,997,984 February-2012 (i) 250,000 April-2021 5.75 980,304 February-2012 250,000 no maturity date 7.38 1,025,428 985,767 May-2012 (ii) 500,000 May-2022 5.38 1,175,799 1,954,177 July-2012 250,000 July-2041 7.13 1,039,186 998,992 February-2014 500,000 February-2024 6.45 2,068,790 1,988,773 May-2014 250,000 February-2024 6.45 1,034,395 994,387 October-2017 (iii) 500,000 January-2023 3.50 847,715 1,969,609 October-2017 1,250,000 January-2028 4.50 5,145,440 4,947,030 November-2019 (iv) 1,500,000 January-2030 4.50 6,090,640 November-2019 (v) 750,000 January-2050 5.88 3,052,132 Total 8,450,000 24,583,325 21,930,575 (i) Prepaid. (ii) Partially prepaid (US$210,735). (iii) Partially prepaid (US$293,105). (iv) The effective interest rate including transaction costs is 4.70% p.a. (v) The effective interest rate including transaction costs is 5.95% p.a. |
Schedule of export pre-payment | The Company and its subsidiaries may, from time to time, acquire in the secondary market bonds issued by the Company and/or its subsidiaries (c) Export pre-payment Initial amount of the transaction Issue date (US$ thousand) Maturity Charges (% per year) 2019 2018 January-2013 (i) 200,000 November-2022 US dollar exchange variation + semiannual Libor + 1.10 311,082 September-2017 135,000 March-2027 US dollar exchange variation + semiannual Libor + 1.61 457,712 499,460 October-2019 100,000 October-2024 US dollar exchange variation + semiannual Libor + 1.75 405,581 Total 435,000 863,293 810,542 (i) Prepaid in November 2019. |
Schedule of capital raised for investments | (d) Capital raised for construction of new plant in United States The subsidiary Braskem America contracted a credit facility in the amount of up to US$225 million (R$ 900 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 La Porte, Texas. The funds will be released in accordance with the progress of the project’s construction and the total amount funded is expected to be disbursed by December 30, 2020. Initial amount of the transaction Issue date (US$) Maturity Charges (% per year) 2019 2018 July-2018 (i) 179,398 December-2028 Us dollar exchange variation + semianual Libor + 0.65 751,376 620,160 Total 179,398 751,376 620,160 (i) US$130,650 released in July 2018, US$13,677 in September 2018, US$13,823 in December 2018, US$7,688 in March 2019, US$6,231 in June 2019, US$4,549 in September 2019 and US$2,780 in December 2019. |
Schedule of others - SACE | (e) Others Initial amount of the transaction Identification Issue date (US$) Maturity Charges (% per year) 2019 2018 SACE (i) November-2018 295,125 November-2028 Us dollar exchange variation + semianual Libor + 0.90 1,073,526 1,147,397 SACE (i) December-2019 150,000 December-2029 Us dollar exchange variation + semianual Libor + 0.90 605,448 MONFORTE (ii) April-2019 72,345 April-2026 Us dollar exchange variation + semianual Libor + 1.00 273,693 Total 517,470 1,952,667 1,147,397 (i) Credit facility contracted by the subsidiary Braskem Netherlands B.V. with guarantee from SACE Covered Facility Agreement, an Italian export credit agency. (ii) Credit facility contracted by Braskem S.A. with a term of 7 years. To consummate this facility, certain assets of the Company’s plants were pledged to the financial institution in amount higher than financing. |
Schedule of long-term maturities | (f) Payment schedule The maturity profile of the long-term amounts is as follows: 2019 2018 2020 1,748,531 2021 380,324 3,933,857 2022 1,549,976 2,256,444 2023 1,416,730 2,355,549 2024 4,418,409 3,336,032 2025 369,725 234,270 2026 350,320 234,296 2027 297,382 205,157 2028 5,314,976 5,028,265 2029 71,326 2030 and thereafter 14,072,884 4,828,319 Total 28,242,052 24,160,720 |
Schedule of guarantees | (g) Guarantees Braskem gave collateral for part of its borrowings as follows: Total Total Loans Maturity debt 2019 guaranteed Guarantees BNB March-2023 24,542 24,542 Bank surety BNDES January-2021 19,998 19,998 Mortgage of plants, land and property, pledge of machinery and equipment FUNDES June-2020 15,976 15,976 Mortgage of plants, land and property, pledge of machinery and equipment FINEP July-2024 33,783 33,783 Bank surety FINAME April-2021 324 324 Pledge of equipment FINISA December-2023 4,475 4,475 Bank surety BNB-FNE December-2027 5,582 5,582 Bank surety and pledge of reserve liquidity fund. Other July-2021 237 237 Pledge of equipment Total 104,917 104,917 |
17 Braskem Idesa financing (Tab
17 Braskem Idesa financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Braskem Idesa Financing | |
Schedule of braskem idesa financing | Principal amount US$ Identification Maturity Charges (% per year) 2019 2018 Project finance Project finance I 700,000 February-2027 US dollar exchange variation + quarterly Libor + 3.25 (i) 2,149,002 2,335,825 Project finance II 210,000 February-2027 US dollar exchange variation + 6.17 608,260 657,689 Project finance III 600,000 February-2029 US dollar exchange variation + 4.33 (ii) 1,849,896 1,983,113 Project finance IV 660,000 February-2029 US dollar exchange variation + quarterly Libor + 3.88 (iii) 2,078,545 2,225,042 Project finance V 400,000 February-2029 US dollar exchange variation + quarterly Libor + 4.65 (iv) 1,326,901 Project finance VI 89,994 February-2029 US dollar exchange variation + quarterly Libor + 2.73 (iv) 297,158 Project finance VII 533,095 February-2029 US dollar exchange variation + quarterly Libor + 4.64 (iv) 1,768,389 Total under current liabilities 3,193,089 6,685,703 10,594,117 Bond 900,000 November-2029 US dollar exchange variation + 7.45 3,640,381 Transactions costs (344,358) (89,525) Total 9,981,726 10,504,592 Current liabilities 744,408 10,504,592 Non-current liabilities 9,237,318 Total 9,981,726 10,504,592 (i) Partial prepayment of US$10,344. (ii) Partial prepayment of US$8,866. (iii) Partial prepayment of US$12,856. (iv) Prepaid. |
Schedule of amortization | The following amortization schedule presents the original long-term maturities on December 31, 2019. In 2018, part of the debt was presented in current liabilities, with early maturities arising from the aforementioned breach of contractual obligations: 2019 2018 2020 1,016,916 2021 800,752 1,161,108 2022 699,090 968,519 2023 892,568 1,280,154 2024 978,479 1,385,087 2025 883,333 1,381,192 2026 743,566 1,194,964 2027 329,718 582,393 2028 257,117 482,038 2029 and thereafter 3,652,695 102,105 Total 9,237,318 9,554,476 |
18 Debentures (Tables)
18 Debentures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debentures | |
Schedule of debentures | Issue date Issuer Series Maturity Annual financial charges (%) 2019 2018 March-2013 DAC Single March-2025 IPCA + 6% 202,992 210,506 September-2013 Cetrel Single September-2025 126.5% of CDI 71,575 84,003 274,567 294,509 Current liabilities 46,666 27,732 Non-current liabilities 227,901 266,777 Total 274,567 294,509 |
Schedule of long-term debenture maturity | The maturity profile of the long-term debentures is as follows: 2019 2018 2020 44,811 2021 52,078 50,722 2022 52,100 50,745 2023 52,125 50,769 2024 52,153 50,796 2025 19,445 18,934 Total 227,901 266,777 |
19 Reconciliation of borrowing
19 Reconciliation of borrowing activities in the statement of cash flow (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reconciliation Of Financing Activities In Statement Of Cash Flow | |
Reconciliation of borrowing activities in the statement of cash flow | Current and non-current Borrowings, debentures and Braskem Idesa financing Total borrowings Braskem Idesa Other financial Borrowings Debentures and debentures financing Lease Dividends liabilities Balance at December 31, 2018 24,898,156 294,509 25,192,665 10,504,592 100,557 672,395 Acquired 20,586,103 20,586,103 3,497,622 499,999 Payments (17,402,284) (23,125) (17,425,409) (4,398,453) (454,190) (668,904) Cash used in financing activities 3,183,819 (23,125) 3,160,694 (900,831) (454,190) (668,904) 499,999 Other changes Interest paid (1,440,754) (22,488) (1,463,242) (646,827) (128,376) Interest and monetary and exchange variations, net 2,292,120 25,671 2,317,791 203,450 121,061 16,934 Initial adoption on January 1, 2019 2,191,908 Acquired 911,619 Disposal (122,488) Currency translation adjustments 83,635 83,635 821,342 56,805 Additional dividends of subsidiary 5,125 Prescribed dividends (2,009) Other (105) 935,001 3,183 938,184 377,965 3,030,529 3,011 16,934 Balance at December 31, 2019 29,016,976 274,567 29,291,543 9,981,726 2,676,896 6,502 516,933 |
20 Financial instruments (Table
20 Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of non-derivative financial instruments and other liabilities | 20.2 Non-derivative financial instruments and other liabilities Fair value Book value Fair value Note Classification by category hierarchy 2019 2018 2019 2018 Cash and cash equivalents 5 Cash and banks Amortized cost 2,303,231 2,228,964 2,303,231 2,228,964 Financial investments in Brazil Fair value through profit or loss Level 2 1,963,185 1,754,561 1,963,185 1,754,561 Financial investments abroad Fair value through profit or loss Level 2 2,537,464 1,564,112 2,537,464 1,564,112 6,803,880 5,547,637 6,803,880 5,547,637 Financial investments 6 LFT´s and LF´s Fair value through profit or loss Level 2 1,588,426 2,247,272 1,588,426 2,247,272 Time deposit investments Amortized cost Level 2 38,759 49,630 38,759 49,630 Other Fair value through profit or loss Level 2 70,027 70,709 70,027 70,709 1,697,212 2,367,611 1,697,212 2,367,611 Trade accounts receivable 7 Amortized cost 2,246,248 3,045,463 2,246,248 3,045,463 Trade accounts receivable 7 Fair value through profit or loss Level 2 60,403 47,540 60,403 47,540 Trade payables 15 Amortized cost 9,120,826 8,378,504 9,120,826 8,378,504 Borrowings 16 Amortized cost Foreign currency - Bond Level 1 24,583,325 21,930,575 25,790,532 22,028,040 Foreign currency - other borrowings Level 2 3,567,336 2,578,147 3,218,410 2,277,069 Local currency Level 2 1,367,538 736,388 1,075,803 598,926 29,518,199 25,245,110 30,084,745 24,904,035 Braskem Idesa borrowings 17 Amortized cost Project Finance Level 2 6,685,703 10,594,117 6,116,434 9,367,878 Bond Level 1 3,640,381 3,892,878 - 10,326,084 10,594,117 10,009,312 9,367,878 Debentures 18 Amortized cost Level 2 274,567 294,509 293,282 239,976 Loan to non-controlling 9 Amortized cost 2,395,887 2,183,830 2,395,887 2,183,830 Leniency agreement 25 Amortized cost 1,742,268 1,842,518 1,742,268 1,842,518 Provision - geological event in Alagoas 26 Amortized cost 3,383,067 3,383,067 Other financial liabilities 28 Amortized cost 516,933 516,933 |
Schedule of changes in derivative financial instruments | 20.3.1 Changes Net Net Operation characteristics (Asset)/ (Asset)/ Fair value Principal exposure Accumulated Liability Change in Financial Liability Identification Note hierarchy Derivatives OCI (equity) 2018 fair value settlement 2019 Non-hedge accounting transactions Exchange swap Level 2 Argentine peso Dollar 517 172 (393) 296 NCE swap Level 2 Real Dollar 5,231 14,484 5,889 25,604 5,748 14,656 5,496 25,900 Hedge accounting transactions Dollar put option (a.i) Level 2 Real Dollar 2,297 36,139 (38,437) (2,298) Dollar swap (a.ii) Level 2 Real Dollar+Fixed rates (38,620) 183,398 (64,133) (80,645) 38,620 Interest rate swaps (a.iii) Level 2 Libor Fixed rates (234,372) (67,664) 77,998 16,373 26,707 Dollar swap CDI (a.ii) Level 2 Real Dollar+Fixed rates (107,246) 107,246 107,246 (377,941) 151,873 82,674 (64,272) 170,275 Derivatives Current assets (27,714) (4,712) Non-current assets (46,664) (17,877) Current liabilities 70,305 49,251 Non-current liabilities 161,694 169,513 157,621 196,175 |
Schedule of interest rate swap linked to Libor | Interest rate swap linked to Libor Identification Nominal value Hedge Maturity Fair value, net US$ (interest rate per year) 2019 2018 Swap Libor I to VI 761,153 1.9825% Aug-2025 26,707 (67,664) Total 761,153 26,707 (67,664) Derivatives Current assets (21,000) Non-Current assets (46,664) Current liabilities 5,768 Non-Current liabilities 20,939 Total 26,707 (67,664) |
Schedule of non-derivative financial liabilities designated to hedge accounting | Therefore, on December 31, 2019, exports that were designated not yet realized and not discontinued are shown below: Total nominal value US$ 2020 724,000 2021 336,000 2023 200,000 2024 688,854 2025 400,000 2028 1,250,000 2030 800,000 2031 800,000 2032 200,000 5,398,854 |
Schedule of financial liability maturity | On December 31, 2019, the maturities of financial liabilities designated, within the scope of the consolidated balance sheet, were as follows: Total nominal value US$ 2020 724,000 2021 336,000 2023 200,000 2024 688,854 2025 400,000 2028 1,250,000 2030 800,000 2031 800,000 2032 200,000 5,398,854 |
Schedule of future hedged sales | The following table provides the balance of discontinued hedge accounting in the year ended December 31, 2019 (US$1,617,371), which is recorded in Braskem Idesa’s shareholders’ equity under “Other comprehensive income” and will be transferred to financial income (expenses) in accordance with the schedule of future hedged sales: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value Hedge descontinued - Fourth quarter 2019 1,617,371 2.0017 3.9786 3,197,381 1,617,371 3,197,381 |
Schedule of exchange variation | 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, 2019: Conversion rate Total nominal at Inception Closing rate Gross nominal value US$ R$/US$ R$/US$ value First quarter 150,000 2.0017 3.7448 261,465 Second quarter 183,495 2.0017 3.9043 349,118 Third quarter 183,495 2.0017 3.7734 325,098 Fourth quarter 216,990 2.0017 4.0729 449,430 733,980 1,385,111 |
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” of this hedge are as follows: Exchange Income tax and Net variation social contribution effect At December 31, 2018 (8,937,217) 3,038,653 (5,898,564) Exchange variation recorded in the period on OCI / Income tax and social contribution (856,068) 291,063 (565,005) Exchange variation transferred to profit or loss / Income tax and social contribution 1,385,121 (470,941) 914,180 At December 31, 2019 (8,408,164) 2,858,775 (5,549,389) |
Schedule of hedged exports | The quarterly schedule of hedged exports in the next quarter of 2020 follows: Total nominal value US$ First quarter 181,000 Second quarter 181,000 Third quarter 181,000 Fourth quarter 181,000 724,000 |
Schedule of designated and unrealized sales | As of December 31, 2019, designated and unrealized sales were as follows: Nominal value US$ 2020 179,982 2021 208,901 2022 183,300 2023 230,967 2024 251,869 2025 227,716 2026 192,592 2027 89,963 2028 71,898 2029 15,219 2030 225,000 2031 225,000 2032 225,000 2033 225,000 2,552,407 |
Schedule of financial instruments designated for hedge | The following table shows the changes in financial instruments designated for this hedge in the year: US$ Hedge 2018 discontinued Designations 2019 Designated balance 5,550,205 (2,351,351) 2,200,00 5,398,854 The following table shows the changes in financial instruments designated for this hedge in the year: US$ Discontinued Realization of the New 2018 hedge discontinued hedge designations 2019 Designated balance 2,708,856 (1,056,869) 420 900,000 2,552,407 |
Schedule of designated financial liabilities maturities | In 2019, the designated financial liabilities to hedge future sales were distributed as follows: Nominal value US$ 2020 179,982 2021 208,901 2022 183,300 2023 230,967 2024 251,869 2025 227,716 2026 192,592 2027 89,963 2028 71,898 2029 15,219 2030 225,000 2031 225,000 2032 225,000 2033 225,000 2,552,407 |
Schedule of discontinued hedge accounting | The following table provides the amounts of hedge accounting discontinued in the year ended December 31, 2019 (US$838,596), 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 discontinued in May-2016 10,996 13.4541 17.9915 49,893 10,647 Hedge discontinued in Dec-2019 795,533 13.6663 19.6113 4,729,441 1,009,263 Hedge discontinued in Dec-2019 32,066 13.4541 19.3247 188,247 40,172 838,595 4,967,581 1,060,082 |
Schedule of exchange variation - Braskem Idesa | 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 year ended December 31, 2019: Conversion rate Total nominal at Inception Closing rate Total nominal Gross nominal value US$ MXN/US$ MXN/US$ value MXN value First quarter 56,383 13.6544 19.2153 313,540 60,811 Second quarter 56,383 13.6544 19.0768 305,731 63,995 Third quarter 57,629 13.6547 19.6178 343,647 70,181 Fourth quarter 58,875 13.6549 19.3564 335,676 72,159 229,270 1,298,594 267,146 |
Schedule of changes in foreign exchange variation and income tax and social contribution - Braskem Idesa | The changes in foreign exchange variation and Income Tax and Social Contribution under “Other comprehensive income” are as follows: Exchange Net variation Income tax effect At December 31, 2018 (3,292,388) 988,451 (2,303,937) Exchange variation recorded in the period on OCI / Income tax 464,806 (139,442) 325,364 Exchange variation transferred to profit or loss / Income tax 267,146 (80,144) 187,002 At December 31, 2019 (2,560,436) 768,865 (1,791,571) |
Schedule of hedged exports - Braskem Idesa | The realization expected for 2020 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 2020: Nominal value US$ First quarter 61,369 Second quarter 65,612 Third quarter 69,855 Fourth quarter 69,855 266,691 |
Schedule of trade accounts receivable by credit ratings | On December 31, 2019 and 2018, considering the stages 1, 2 and 3 of expected credit losses, the percentage of trade accounts receivable by risk ratings was as follows: (%) 2019 2018 1 Minimal Risk 74.23 67.50 2 Low Risk 14.89 18.60 3 Medium Risk 7.82 7.61 4 High Risk 1.06 5.02 5 Very High Risk (i) 1.99 1.27 (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 | Default indicators: Last 12 months Domestic External market market December 31, 2019 0.05% 0.17% December 31, 2018 0.08% 0.45% December 31, 2017 0.08% 0.19% |
Schedule of financial assets with and without risk assessment | In order to determine the credit ratings of counterparties of financial assets classified under cash and cash equivalents, and financial investments, the Company 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. 2019 2018 Financial assets with risk assessment AAA 5,475,075 4,294,100 AA+ 109,933 1,175,098 AA 79,136 AA- 1,458,424 1,076 A+ 159,848 1,103,647 A 121,132 165,899 A- 1,171,746 169,580 BBB+ 917,541 BB+ 252 BB- 29 8,496,158 7,906,358 Financial assets without risk assessment Other financial assets with no risk assessment (i) 4,934 8,890 4,934 8,890 Total 8,501,092 7,915,248 (i) Investments approved by the Management of the Company, in accordance with the financial policy. |
Schedule of sensitivity analysis | 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 (345,206) (7,055,927) (14,111,853) Braskem Idesa borrowings (81,773) (1,671,426) (3,342,851) Export prepayments (10,559) (215,823) (431,647) Investments (9,190) (187,844) (375,688) SACE (20,536) (419,744) (839,487) Dollar put option (9,931) (478,958) (1,685,285) Dollar swap (4,033) (82,372) (164,742) Swap NCE (5,271) (107,743) (215,486) Dollar swap x CDI (16,809) (345,832) (691,949) Financial investments abroad (45,323) (926,395) (1,852,791) Libor floating interest rate Export prepayments (7,625) (38,124) (76,248) Swaps (5,730) 37,283 73,854 Braskem Idesa borrowings (89,189) (445,944) (891,887) CDI interest rate Export credit notes 12,982 (20,906) (41,331) Debentures 5,778 (6,495) (13,154) Financial investments in local currency 41,830 83,679 IPCA interest rate Debentures 11,644 (18,569) (37,943) TLP interest rate FINAME (4) (7) Selic interest rate Leniency agreement (53,042) (106,946) |
21 Taxes payable (Tables)
21 Taxes payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes Payable | |
Schedule of taxes payable | 2019 2018 Brazil IPI 58,945 64,672 ICMS 184,728 239,126 PIS and COFINS 150,664 145,090 Other 37,857 36,454 Other countries Value-added tax 11,933 7,482 Other 8,112 25,085 Total 452,239 517,909 Current liabilities 322,886 432,005 Non-current liabilities 129,353 85,904 Total 452,239 517,909 |
22 Income tax (''IR'') and so_2
22 Income tax (''IR'') and social contribution (''CSL'') (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Ir And Social Contribution | |
Schedule of income tax and social contribution reconciliation | (a) Reconciliation of the effects of income tax and social contribution on profit and loss 2019 2018 2017 Income (loss) before IR and CSL (4,603,068) 3,604,736 5,264,577 IR and CSL at the rate of 34% 1,565,043 (1,225,610) (1,789,956) Permanent adjustments to the IR and CSL calculation basis IR and CSL on equity in results of investees 3,469 (302) 2,201 Thin capitalization (221,337) Deferred tax losses and negative base 39,092 Tax benefits (Sudene and PAT) 87,186 Difference of rate applicable to each country (i) 293,647 468,129 250,130 Fine in leniency agreement (25,390) (117,140) Other permanent adjustments 347,238 21,232 170,805 Effect of IR and CSL on results of operations 1,962,670 (736,551) (1,357,682) Breakdown of IR and CSL: Current IR and CSL expense Current year (251,641) (512,951) (869,493) Changes in estimates related to prior years 22,696 3,177 (228,945) (509,774) (869,493) Deferred IR and CSL expense Origination and reversal of temporary differences 2,062,501 (369,546) (488,189) Tax losses (IR) and negative base (CSL) 129,114 142,769 2,191,615 (226,777) (488,189) Total 1,962,670 (736,551) (1,357,682) Effective rate 42.6% 20.4% 25.8% (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 foreign income tax rates | Official rate - % Headquarters (Country) 2019 Braskem Alemanha Germany 31.18 Braskem America e Braskem America Finance USA 21.00 Braskem Argentina Argentina 30.00 Braskem Chile Chile 27.00 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 |
Schedule of changes in balances of deferred tax assets and liabilities | (b.i) Changes in balances of deferred tax assets and liabilities Assets As of December Impact on the Impact on the As of December Impact on the Other Other As of December Tax losses (IR) and negative base (CSL) 1,878,809 142,769 2,021,578 129,114 2,150,692 Goodwill amortized 59,335 (20,053) 39,282 (17,605) 21,677 Exchange variations 388,293 (348,334) 39,959 1,092,392 1,132,351 Temporary adjustments (i) 155,540 646,630 802,170 1,555,097 2,357,267 Business combination 183,785 (24,213) 159,572 (74,033) 85,539 Tax credits 176,290 176,290 110,080 (236,537) 49,833 Other 62,288 62,288 2,665,762 573,089 3,238,851 2,857,333 (236,537) 5,859,647 Liabilities Amortization of goodwill based on future profitability 712,873 10,463 723,336 (651) 722,685 Tax depreciation 960,202 49,710 1,009,912 893,115 1,903,027 Exchange variations Temporary adjustments 231,822 44,878 276,700 155,887 432,587 Business combination 9,664 (8,362) 1,302 1,302 Present value adjustment and amortized cost 67,072 (9,905) 57,167 (45,891) 11,276 Hedge accounting 700,351 (700,351) (419,269) 419,269 Amortization of fair value adjustments on 519,623 (75,548) 444,075 (50,302) 393,773 Long term incentive plan - LTI (2,072) 2,072 (5,843) 5,843 Health care 43,734 (43,734) Other 4,273 90,351 (90,841) 3,783 94,938 (93,284) 5,437 2,505,529 799,866 (789,120) 2,516,275 665,718 288,094 3,470,087 Net 160,233 (226,777) 789,120 722,576 2,191,615 (288,094) (236,537) 2,389,560 Presentation in the balance sheet: Non-current assets 1,165,726 1,104,158 2,662,596 (-) Non-current liabilities 1,005,493 381,582 273,036 (i) Temporary adjustments refers to the provision for geological events in Alagoas, contingencies, impairment of assets, among other provisions. |
Schedule of deferred taxes offset for the purpose of presentation in the balance sheet | (b.ii) Offset for the purpose of presentation in the balance sheet 2019 Headquarters IR and CSL (Country) Tax calculation Offsetting Balance Assets Braskem S.A. Brazil 3,679,547 (2,072,130) 1,607,417 Braskem Argentina Argentina 1,010 1,010 Braskem Alemanha Germany 28,176 28,176 Braskem Chile Chile 162 (162) - Braskem Idesa Mexico 2,056,723 (1,117,641) 939,082 Braskem México Serviços Mexico 9,677 9,677 Cetrel Brazil 24,313 (5,846) 18,467 DAC Brazil 60,039 (1,272) 58,767 5,859,647 (3,197,051) 2,662,596 Liabilities Braskem S.A Brazil 2,072,130 (2,072,130) Braskem America USA 271,285 271,285 Braskem Chile Chile 1,913 (162) 1,751 Braskem Idesa Mexico 1,117,641 (1,117,641) Cetrel Brazil 5,846 (5,846) DAC Brazil 1,272 (1,272) 3,470,087 (3,197,051) 273,036 2018 Headquarters IR and CSL (Country) Tax calculation Offsetting Balance Assets Braskem S.A. Brazil 2,126,658 (2,126,658) Braskem Argentina Argentina 11,337 11,337 Braskem Alemanha Germany 11,251 11,251 Braskem Chile Chile 308 (268) 40 Braskem Idesa Mexico 980,762 980,762 Braskem México Serviços Mexico 9,409 9,409 Cetrel Brazil 26,478 (6,645) 19,833 DAC Brazil 72,648 (1,122) 71,526 3,238,851 (2,134,693) 1,104,158 Liabilities Braskem S.A Brazil 2,239,727 (2,126,658) 113,069 Braskem America USA 268,513 268,513 Braskem Chile Chile 268 (268) Cetrel Brazil 6,645 (6,645) DAC Brazil 1,122 (1,122) 2,516,275 (2,134,693) 381,582 |
Schedule of deferred income tax and social contribution | (c) Realization of deferred income tax and social contribution Balance at Realization December 31, 2025 2028 Assets Note 2019 2020 2021 2022 2023 2024 to 2027 thereafter Tax losses (IR) and negative base (CSL) (i) 2,150,692 166,865 287,200 200,515 219,314 449,772 818,425 8,601 Goodwill amortized 21,677 2,223 2,223 2,223 2,223 2,223 2,224 8,338 Exchange variations (ii) 1,132,351 107,843 107,843 107,843 107,843 166,325 387,626 147,028 Temporary adjustments (iii) 2,357,267 536,934 660,491 113,454 66,930 495,380 484,078 Business combination (iv) 85,539 28,510 28,510 28,510 9 Tax credits (v) 49,833 35,746 14,087 Other 62,288 62,288 5,859,647 878,121 1,100,354 452,545 396,310 1,113,700 1,692,353 226,264 Liabilities Amortization of goodwill based on future profitability (vi) 722,685 722,685 Tax depreciation (vii) 1,911,214 135,128 135,128 135,128 135,128 135,128 135,128 1,100,446 Business combination (ix) 1,302 1,302 Present value adjustment and amortized cost (x) 11,276 6,959 4,317 Amortization of fair value adjustments on the assets from the acquisiton of Braskem Qpar 393,773 44,825 44,825 44,825 44,825 44,825 44,825 124,823 Other 5,437 5,437 3,470,087 283,581 303,184 200,379 192,003 269,141 267,106 1,954,693 Net 2,389,560 594,540 797,170 252,166 204,307 844,559 1,425,247 (1,728,429) Basis for constitution and realization: (i) In Brazil, the use of tax losses is limited to 30% of the taxable profit for the year; however, the balance does not expire. Meanwhile, in Mexico there is no limit on the amount that can be used in the year; however, the tax losses expire in 10 years. The realization of Tax Losses consider the taxable profit expected by the company over a 10-year horizon. (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 the recognition of 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. For 2019, the provisioning of expenses with contingencies and damages in Alagoas produced a material impact. (iv) Refers to: tax-related goodwill and contingencies recognized from business combinations. Tax realization of goodwill occurs upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. (v) Tax credits arising from the balance of tax paid on profit abroad and the worker’s food program. (vi) Goodwill for the future profitability of the merged companies is not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or upon divestment. (vii) 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. (viii) Provisions whose taxation will occur in subsequent periods. (ix) 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. (x) Additional adjustment, upon adoption of Law 11,638/07, of property, plant and equipment, whose tax realization is based on the depreciation of assets, as well as adjustment to present value of assets and liabilities overdue more than 89 days. |
23 Sundry provisions (Tables)
23 Sundry provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Sundry Provisions | |
Schedule of sundry provisions | 2019 2018 Provision for customers rebates 84,110 88,026 Provision for environmental damages 365,155 307,546 Other 55,941 28,970 Total 505,206 424,542 Current liabilities 203,134 191,536 Non-current liabilities 302,072 233,006 Total 505,206 424,542 |
Schedule of changes in sundry provisions | (c) Changes in provisions Recovery of environmental Bonus damage Other Total December 31, 2017 87,913 300,249 25,510 413,672 Additions, inflation adjustments and exchange variation, net 104,431 89,395 8,593 202,419 Write-offs through usage and payments (104,318) (82,098) (5,133) (191,549) December 31, 2018 88,026 307,546 28,970 424,542 Additions, inflation adjustments and exchange variation, net 74,299 144,617 34,194 253,110 Write-offs through usage and payments (78,215) (87,008) (7,223) (172,446) December 31, 2019 84,110 365,155 55,941 505,206 |
24 Contingencies (Tables)
24 Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Contingencies Abstract | |
Schedule of claims with probable chance of loss and claims arising from business combinations with possible loss | 24.1 Claims with probable chance of loss and contingent liabilities arising from business combinations 2019 2018 Labor claims (a) 315,437 177,751 Tax claims (b) Normal operations IR and CSL 22,284 20,717 PIS and COFINS (i) 196,356 156,796 ICMS 70,645 64,468 Other tax claims 18,475 23,237 307,760 265,218 Business Combination IR and CSL 3,581 1,500 PIS and COFINS (ii) 63,291 59,739 ICMS - interstate purchases (iii) 297,456 280,622 364,328 341,861 Corporate claims (c) 118,485 111,049 Civil claims and other 45,514 69,438 1,151,524 965,317 (a) Labor claims The provision on December 31, 2019 is related to 604 labor claims, including occupational health and security cases (477 in 2018). The Management of Braskem, based on its assessment and of its external 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, 2019, the main claims are the following: (i) Non-cumulative PIS and COFINS 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 of Brazil (“RFB”), mainly related to the following topics: · Offsetting Statements (“DCOMPs”), with credits in amounts that exceeded those declared in the respective Statement of Calculation of Social Contributions (“DACONs”); · freight expenses: not associated with sales operations and/or operations without proven association and contracted in the country, but concerning imported products; · credits arising from the acquisition of property, plant and equipment mostly related to acquired companies, whose documentation was not found; · taxation of taxable revenues incorrectly classified as tax exempt, subject to zero tax rate or not taxed. On December 31, 2019, the balance of this provision was R$193,139 (R$154,673 in 2018). The Management of Braskem, based on its assessment and of its 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 2022. There are no deposits or any other type of guarantee for these procedures, since they are still being discussed at the administrative level. (ii) 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, 2019, the balance of this provision was R$63,291 (R$59,739 in 2018). The Management of Braskem, based on its assessment and of its external legal advisors, assessed that the disputes related to the highlighted matters have a likelihood of loss greater than 50%, estimated the conclusion of administrative proceedings in 2023 and of court decisions in 2030. Guarantees were offered for these claims in the form of bank guarantee and finished products, which, together, cover the amount of court claims. (iii) 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 in the amount of 30% on R$480,389, which corresponds to the sum of the amounts indicated in tax documents whose outflow of goods was not identified by the tax authority, entered 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 under a specific deficiency notice, 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 2015, 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 debt being reduced by 20% and (ii) in the other claim, the tax liability was suspended. On December 31, 2019, the balance of this provision was R$297,456 (R$280,622 in 2018). The Management of Braskem, based on its assessment and of its external legal advisors, have assessed that the disputes related to the highlighted matters have a likelihood of loss greater than 50% and estimated the conclusion of legal proceedings in 2025. These lawsuits are secured by a guarantee insurance. (c) Corporate claims On December 31, 2019, 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 claims were granted, the amount effectively owed by Braskem began to be calculated. During this phase, the judge recognized that dividends and bonus related to the years prior to 1987 had become time-barred. However, the Alagoas State Court of Appeals reviewed the decision and considered that amounts related to such period also were owed by Braskem. 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. In April 2019, the case was distributed and held by the Judge-Rapporteur under advisement. |
Schedule of changes in claims with probable chance of loss | (d) Changes in claims with probable chance of loss Corporate Civil claims Labor claims Tax claims claims and other Total December 31, 2017 250,075 632,177 135,779 74,614 1,092,645 Additions, inflation adjustments and exchange variation 80,685 77,236 8,676 5,001 171,598 Payments (70,553) (40,768) (31,680) (173) (143,174) Reversals (82,456) (61,566) (1,726) (10,004) (155,752) December 31, 2018 177,751 607,079 111,049 69,438 965,317 Additions, inflation adjustments and exchange variation 322,102 98,618 7,436 11,465 439,621 Payments (83,189) (6,348) (3,918) (93,455) Reversals (101,227) (27,261) (31,471) (159,959) December 31, 2019 315,437 672,088 118,485 45,514 1,151,524 |
Schedule of claims with probable chance of loss | 24.2 Claims with possible chance of loss Note 2019 2018 Civil claims - Alagoas 26 33,973,320 Civil claims - Other (a) 769,126 691,636 Tax claims (b) 6,199,283 7,125,071 Labor claims 642,229 860,061 Other lawsuits (c) 546,743 643,982 Total 42,130,701 9,320,750 |
27 Benefits offered to team m_2
27 Benefits offered to team members (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Benefits Offered To Team Members | |
Schedule of short-term benefits | 27.1. Short-term benefits 2019 2018 2017 Health care 181,466 162,338 140,553 Private pension 90,687 84,525 67,008 Transport 67,761 64,714 58,825 Feeding 35,677 33,537 30,916 Life insurance 7,997 5,964 Training 26,261 27,463 18,285 Other 12,164 12,307 16,173 422,013 390,848 331,760 |
Schedule of defined benefit obligations | (i) Amounts in balance sheet 2019 2018 Defined benefit Novamont Braskem America 80,593 68,904 Braskem Idesa 11,408 Braskem Alemanha and Netherlands 153,564 114,705 245,565 183,609 Health care Bradesco saúde 224,852 90,679 Total obligations 470,417 274,288 Fair value of plan assets Novamont Braskem America (79,784) (66,073) Braskem Alemanha (1,558) (1,842) (81,342) (67,915) Consolidated net balance (non-current liabilities) 389,075 206,373 |
Schedule of changes in defined benefit obligations | (ii) Change in obligations 2019 2018 2017 Balance at beginning of year 274,366 240,190 201,516 Health care 5,817 7,446 11,334 Current service cost 8,233 5,842 5,058 Interest cost 14,796 4,906 4,139 Benefits paid (4,677) (3,845) (3,399) Change plan 4,948 1,391 Actuarial losses (gain) 161,250 (3,713) 9,661 Exchange variation 5,684 22,149 11,881 Balance at the end of the year 470,417 274,366 240,190 |
Schedule of changes in fair value plan assets | (iii) Change in fair value plan assets 2019 2018 2017 Balance at beginning of year 67,993 46,415 39,380 Actual return on plan assets 14,329 (3,200) 5,115 Employer contributions 285 20,544 4,069 Benefits paid (3,966) (3,712) (2,915) Exchange variation 2,701 7,868 766 Balance at the end of the year 81,342 67,915 46,415 |
Schedule of amounts recognized in profit and loss | (iv) Amounts recognized in profit and loss 2019 2018 2017 Health care 5,817 7,446 11,334 Current service cost 8,233 5,842 5,058 Interest cost 14,796 4,906 4,139 Actuarial losses 2,077 6,041 28,846 20,271 26,572 |
Schedule of actuarial assumptions | Actuarial assumptions (%) 2019 2018 2017 Health United Health United Health United insurance States Mexico Germany Netherlands insurance States Germany Netherlands insurance States Germany Netherlands Discount rate 3.60 3.35 7.25 2.00 2.00 5.03 4.45 2.00 2.00 5.45 3.70 2.00 2.00 Inflation rate 4.00 n/a 4.00 2.00 2.00 4.50 n/a 2.00 2.00 4.50 n/a n/a 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 n/a n/a n/a n/a Rate of increase in future salary levels n/a n/a 5.00 3.00 3.00 n/a n/a 3.00 3.00 n/a n/a 2.50 2.50 Rate of increase in future pension plan n/a n/a n/a 1.75 1.75 n/a n/a 1.75 1.75 n/a n/a 1.75 1.75 Aging factor 2.50 n/a 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 n/a 3.50 n/a n/a n/a 3.50 n/a n/a n/a Duration 15.32 n/a n/a n/a n/a 19.66 n/a n/a n/a 18.84 n/a n/a n/a |
Schedule of sensitivity analysis | (vi) Sensitivity analysis Impact on the defined benefit obligation Premise change Premise increase Premise reduction Health United Health United Health United insurance States Mexico Germany Netherlands insurance States Mexico Germany Netherlands insurance States Mexico Germany Netherlands Discount rate 1.0% 1.0% 1.0% 0.5% 0.5% 27,923 8,999 1,040 15,037 766 (34,866) (11,012) (1,246) (16,701) (852) Real medical inflation n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Rate of increase in future salary levels n/a n/a n/a 0.5% 0.5% n/a n/a n/a 9,033 460 n/a n/a n/a (8,519) (434) Rate of increase in future pension plan 1% n/a n/a 0.25% 0.25% (5,559) n/a n/a 4,452 227 5,559 n/a n/a (4,320) (220) Life expectancy 1% n/a n/a 1 year 1 year 42,480 n/a n/a 3,819 195 (33,494) n/a n/a (3,986) (203) Mortality rate n/a 10% n/a n/a n/a n/a 2,554 n/a n/a n/a n/a (2,814) n/a 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% 739 157 (967) (41) Life expectancy 1.0% 1.0% 614 3,290 (511) (2,594) Rate of increase in future pension plan 1.0% 1.0% 116 430 (116) (430) |
29 Equity (Tables)
29 Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in equity [abstract] | |
Schedule of shares distributed | On December 31, 2019, the Company's subscribed and paid up capital stock amounted to R$8,043,222 and comprised 797,218,554 shares with no par value, distributed as follows: Amount of shares 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 38.33 Petrobras 212,426,952 47.03 75,761,739 21.96 288,188,691 36.15 ADR (i) 33,984,766 9.85 33,984,766 4.26 Alaska 21,898,500 6.35 21,898,500 2.75 Other 12,907,077 2.86 132,995,570 38.53 500,230 100.00 146,402,877 18.36 Total 451,668,652 100.00 343,823,073 99.64 500,230 100.00 795,991,955 99.85 Treasury shares 1,226,599 0.36 1,226,599 0.15 Total 451,668,652 100.00 345,049,672 100.00 500,230 100.00 797,218,554 100.00 (i) American Depositary Receipts traded on the New York Stock Exchange (USA). |
Schedule of other comprehensive income | (f) Other comprehensive income Attributed to shareholders' interest Deemed cost Fair value Defined Foreign and additional adjustments of Gain (loss) Foreign benefit currency Total indexation of trade accounts on interest sales Fair value plans actuarial translation Braskem Non-controlling PP&E receivable in subsidiary hedge of hedge Gain (loss) adjustment shareholders' interest in (ii) (iii) (i) (iv) (iv) (v) (vi) interest Braskem Idesa Total On December 31, 2016 206,703 (9,404) (7,105,377) (539,518) (43,351) 1,169,088 (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) Goodwill on the acquisition of a subsidiary under common control - Foreign currency translation adjustment 51,445 51,445 (52,047) (602) On December 31, 2017 178,893 (9,404) (6,358,242) (145,267) (52,005) 1,220,533 (5,165,492) (477,975) (5,643,467) Additional indexation Realization by depreciation or write-off assets (40,481) (40,481) (40,481) Income tax and social contribution 13,764 13,764 13,764 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,458) (1,458) (1,458) Income tax and social contribution 496 496 496 Fair value adjustments Accounts receivable (449) (449) (449) Foreign sales hedge Exchange rate (3,133,346) (3,133,346) 4,170 (3,129,176) Transfer to result 1,200,209 1,200,209 59,143 1,259,352 Income tax and social contribution 664,864 664,864 (18,994) 645,870 Fair value of Cash flow hedge Change in fair value (196,790) (196,790) 7,722 (189,068) Transfer to result 26,964 26,964 10,386 37,350 Income tax and social contribution 59,914 59,914 (5,433) 54,481 Fair value of cash flow hedge from jointly-controlled (RPR) (2,329) (2,329) (2,329) Actuarial loss with post-employment benefits, net of taxes (1,569) (1,569) (1,569) ILP PLan fair value Change in fair value 9,297 9,297 133 9,430 Income tax and social contribution (2,891) (2,891) (2,891) Foreign currency translation adjustment 946,342 946,342 (145,119) 801,223 (Loss) gain from investments (65) (65) 65 On December 31, 2018 151,214 5,957 (9,469) (7,626,515) (257,508) (53,574) 2,166,875 (5,623,020) (565,902) (6,188,922) Attributed to shareholders' interest Deemed cost Fair value Defined Foreign and additional adjustments of Gain (loss) Foreign benefit currency Total indexation of trade accounts on interest sales Fair value plans actuarial translation Braskem Non-controlling PP&E receivable in subsidiary hedge of hedge Gain (loss) adjustment shareholders' interest in (ii) (iii) (i) (iv) (iv) (v) (vi) interest Braskem Idesa Total On December 31, 2018 151,214 5,957 (9,469) (7,626,515) (257,508) (53,574) 2,166,875 (5,623,020) (565,902) (6,188,922) Additional indexation Realization by depreciation or write-off assets (40,481) (40,481) (40,481) Income tax and social contribution 13,764 13,764 13,764 Deemed cost of jointly-controlled investment Realization by depreciation or write-off assets (1,338) (1,338) (1,338) Income tax and social contribution 455 455 455 Fair value adjustments Accounts receivable 15 15 15 Foreign sales hedge Exchange rate (507,464) (507,464) 116,202 (391,262) Transfer to result 1,585,480 1,585,480 66,787 1,652,267 Income tax and social contribution (344,567) (344,567) (54,897) (399,464) Fair value of Cash flow hedge Change in fair value 7,150 7,150 (23,078) (15,928) Transfer to result 54,450 54,450 16,752 71,202 Income tax and social contribution (21,703) (21,703) 1,898 (19,805) Fair value of cash flow hedge from jointly-controlled (RPR) (978) (978) (978) Actuarial loss with post-employment benefits, net of taxes (109,492) (109,492) (109,492) ILP PLan fair value Change in fair value 19,415 19,415 348 19,763 Income tax and social contribution (5,842) (5,842) (5,842) Foreign currency translation adjustment 220,228 220,228 (83,506) 136,722 Loss on interest in subsidiary (50) (50) (34) (84) Effect of CPC 42 / IAS 29 - hyperinflation (3,561) (3,561) (3,561) On December 31, 2019 123,614 19,545 (9,469) (6,893,066) (218,589) (163,066) 2,383,492 (4,757,539) (525,430) (5,282,969) (i) Transfer to the income statement when divestment or transfer of control of subsidiary. (ii) Transfer to retained earnings as the asset is depreciated or written-off/sold. (iii) For receivables classified as fair value through other comprehensive income, transfer to the income statement when attainment of jurisdiction or early liquidation. For the ILP Plan, Transfer to retained earnings according to the grace period of the plan. (iv) Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. (v) Transfer to retained earnings when the extinction of the plan. (vi) Transfer to the income statement when write-off of subsidiary abroad. |
30 Earnings per share (Tables)
30 Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Schedule of earnings per share reconciliation | The table below shows the reconciliation of profit or loss for the period adjusted for the amounts used to calculate basic and diluted earnings (loss) per share. Basic and diluted 2019 2018 2017 (Loss) profit for the year attributed to Company's shareholders of continued operations (2,540,995) 2,827,650 3,856,564 Distribution of priority dividends attributable to: Preferred shares class "A" 208,450 208,416 Preferred shares class "B" 303 351 208,753 208,767 Distribution of 6% ??of unit price of common shares 273,840 273,827 Distribution of excess profits, by class: Common shares 1,331,513 1,915,805 Preferred shares class "A" 1,013,544 1,458,165 2,345,057 3,373,970 Reconciliation of income available for distribution, by class (numerator): Common shares (1,441,839) 1,605,353 2,189,632 Preferred shares class "A" (1,097,559) 1,221,994 1,666,581 Preferred shares class "B" (1,597) 303 351 (2,540,995) 2,827,650 3,856,564 Weighted average number of shares, by class (denominator): Common shares 451,668,652 451,668,652 451,668,652 Preferred shares class "A" 343,820,162 343,808,699 343,775,864 Preferred shares class "B" 500,230 512,660 578,330 795,989,044 795,990,011 796,022,846 (Loss) earnings per share (in R$) Common shares (3.1922) 3.5543 4.8479 Preferred shares class "A" (3.1922) 3.5543 4.8479 Preferred shares class "B" (3.1922) 0.5910 0.6069 Weighing of shares 2019 Preferred shares Class "A" Outstanding Weighted shares average Amount at beginning of year 343,814,914 343,814,914 Incentive long term plan payments with treasury shares 8,159 5,248 Amount at the end of the year 343,823,073 343,820,162 2018 Preferred shares Class "A" Class "B" Outstanding Weighted Outstanding Weighted shares average shares average Amount at beginning of year 343,775,864 343,775,864 578,330 578,330 Conversion of preferred shares class "B" to "A" 39,050 32,835 (78,100) (65,670) Amount at the end of the year 343,814,914 343,808,699 500,230 512,660 |
31 Net revenues (Tables)
31 Net revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Schedule of sales and service revenue | 2019 2018 2017 Sales revenue Domestic market Revenue 38,391,132 42,189,365 34,983,265 Rebates (57,315) (45,290) (35,538) 38,333,817 42,144,075 34,947,727 Foreign market Revenue 23,998,067 26,577,433 23,297,304 Rebates (47,723) (58,188) (60,990) 23,950,344 26,519,245 23,236,314 62,284,161 68,663,320 58,184,041 Sales and services deductions Taxes Domestic market (9,704,712) (10,219,138) (8,663,707) Foreign market (31,427) (36,562) (33,798) Sales returns Domestic market (138,749) (148,918) (125,153) Foreign market (85,748) (258,836) (100,789) (9,960,636) (10,663,454) (8,923,447) Net sales and services revenue 52,323,525 57,999,866 49,260,594 |
Schedule of revenue by country | (a) Net revenue by country 2019 2018 2017 Brazil 28,523,327 31,801,222 26,147,559 United States 9,416,558 9,887,701 8,539,972 Mexico 2,335,198 4,168,140 3,408,385 Singapore 1,162,432 756,069 542,866 Germany 1,157,431 1,385,482 1,192,287 Argentina 1,104,044 1,166,191 1,336,440 Switzerland 759,189 315,254 415,729 Italy 690,422 650,605 604,546 Chile 610,454 686,646 554,237 Peru 551,967 540,495 493,654 China 542,209 884,233 692,558 Luxembourg 526,768 546,524 247,007 Netherlands 516,409 293,315 333,134 United Kingdom 359,937 366,328 202,830 Uruguay 359,049 155,571 122,251 Spain 344,433 329,458 282,854 Sweden 296,601 270,062 256,911 South Korea 279,900 314,517 339,430 Japan 240,579 245,208 126,956 Bolivia 231,848 250,048 163,862 France 225,986 135,094 166,314 Canada 201,635 290,453 235,612 Poland 200,563 260,449 231,716 Colombia 200,370 363,497 340,396 Paraguay 194,859 214,959 174,783 Taiwan 191,593 274,566 301,692 Belgium 179,648 122,230 324,222 Ecuador 119,070 313,857 316,134 Other 801,046 1,011,692 1,166,258 52,323,525 57,999,866 49,260,594 |
Schedule of revenue by product | (b) Net revenue by product 2019 2018 2017 PE/PP 34,287,597 37,979,148 33,105,714 Ethylene, Propylene 3,743,581 4,283,709 3,351,805 PVC/Caustic Soda/EDC 2,692,778 3,167,390 3,066,879 Benzene, toluene and xylene 2,503,667 2,785,400 2,683,406 ETBE/Gasoline 2,319,253 2,928,993 2,433,360 Butadiene 1,609,264 2,023,465 1,819,387 Cumene 723,469 909,409 578,482 Naphtha, condensate and crude oil 505,804 476,311 135,165 Solvents 676,044 248,313 401,455 Other 3,262,068 3,197,728 1,684,941 52,323,525 57,999,866 49,260,594 |
33 Other income (expenses), n_2
33 Other income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income Expenses Net | |
Schedule of other income (expenses), net | Note 2019 2018 2017 2.7 Restated Other income PIS and COFINS credits - exclusion of ICMS from the calculation basis 10(c) 1,904,206 235,919 Fine on supply contract of raw material, net (i) 375,020 386,020 Insurance indemnity 18,286 100,876 Fixed assets disposal results 11,140 93,814 Tax Credits recovery 3,094 46,179 Capital gain - sale of Quantiq 276,816 Other 96,688 164,414 38,118 2,408,434 1,027,222 314,934 Other expenses Provision - geological event in Alagoas 26 (3,383,067) Leniency agreement 25 (375,476) Provision for losses on the fixed asset (158,320) (44,420) (205,929) Recovery of environmental damage (141,536) (89,396) (102,466) Allowance for judicial claims (136,135) (83,280) (119,919) Programmed stop in plants (108,192) (91,380) Fine on sales contracts (104,179) (49,487) Other (415,513) (196,750) (366,024) (4,446,942) (554,713) (1,169,814) (i) The contractual penalty charged from a supplier for failing to supply feedstock to the subsidiary Braskem Idesa is R$335,281 (R$338,125 in 2018). |
34 Financial results (Tables)
34 Financial results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Results | |
Schedule of financial results | 2019 2018 2017 Financial income Interest income 708,542 530,007 512,051 Other 142,012 59,045 91,579 850,554 589,052 603,630 Financial expenses Interest expenses (2,191,765) (2,084,780) (2,219,503) Monetary variations on fiscal debts (232,612) (33,429) (191,101) Discounts granted (80,404) (141,223) (137,389) Loans transaction costs - amortization (465,000) (89,982) (64,771) Adjustment to present value - appropriation (348,930) (296,065) (284,992) Interest expense on leases (137,903) Other (426,171) (362,072) (849,461) (3,882,785) (3,007,551) (3,747,217) Exchange rate variations, net On financial assets (31,137) 1,268,741 216,381 On financial liabilities (1,693,383) (3,525,724) (1,015,143) (1,724,520) (2,256,983) (798,762) Total (4,756,751) (4,675,482) (3,942,349) |
35 Expenses by nature and fun_2
35 Expenses by nature and function (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Expenses by nature [abstract] | |
Schedule of expenses by nature and function | 2019 2018 2017 Restated Classification by nature: Raw materials other inputs (37,380,310) (38,889,949) (29,364,996) Personnel expenses (3,004,762) (2,412,118) (2,173,640) Outsourced services (3,242,373) (2,306,048) (2,120,001) Depreciation, amortization and depletion (3,632,265) (2,990,577) (2,928,855) Freights (2,204,453) (2,275,375) (2,058,574) Costs of idle industrial plants (309,742) (138,242) (67,593) Provision - geological event in Alagoas (3,383,067) PIS and COFINS credits - exclusion of ICMS from the calculation basis 1,904,206 Leniency agreement (375,476) Other general and administrative expenses (927,294) (706,451) (1,004,489) Total (52,180,060) (49,718,760) (40,093,624) Classification by function: Cost of products sold (45,879,118) (46,576,657) (36,177,408) Selling and distribution (1,783,455) (1,689,179) (1,446,153) (Loss) reversals for impairment of trade accounts receivable (7,069) 87,008 (13,455) General and administrative (2,224,180) (1,793,185) (1,434,272) Research and development (247,730) (219,256) (167,456) Other income 2,408,434 1,027,222 314,934 Other expenses (4,446,942) (554,713) (1,169,814) Total (52,180,060) (49,718,760) (40,093,624) |
36 Segment information (Tables)
36 Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of results by segment | (b) Results by segment 2019 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Consolidated revenue sold profit expenses investments (expenses), net Reporting segments Chemicals 27,172,288 (25,349,921) 1,822,367 (1,069,867) (269,363) 483,137 Vinyls 2,692,778 (3,069,301) (376,523) (437,153) (3,673,139) (4,486,815) Polyolefins 21,191,851 (18,494,520) 2,697,331 (1,439,229) (151,351) 1,106,751 USA and Europe 10,044,306 (8,233,079) 1,811,227 (786,096) 9,215 1,034,346 Mexico 3,051,440 (2,504,012) 547,428 (351,199) 324,682 520,911 Total 64,152,663 (57,650,833) 6,501,830 (4,083,544) (3,759,956) (1,341,670) Other segments 296,286 (188,335) 107,951 (44,548) 3,364 66,767 Corporate unit (217,958) 10,218 1,775,246 (i) 1,567,506 Braskem consolidated before 64,448,949 (57,839,168) 6,609,781 (4,346,050) 10,218 (1,981,346) 292,603 Eliminations and reclassifications (12,125,424) 11,960,050 (165,374) 83,616 (57,162) (138,920) Total 52,323,525 (45,879,118) 6,444,407 (4,262,434) 10,218 (2,038,508) 153,683 2018 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Consolidated revenue sold profit expenses investments (expenses), net Reporting segments Restated Chemicals 31,111,650 (27,523,702) 3,587,948 (784,450) (52,006) 2,751,492 Vinyls 3,167,390 (2,908,371) 259,019 (177,344) 8,403 90,078 Polyolefins 22,483,866 (19,295,855) 3,188,011 (1,328,047) (35,020) 1,824,944 USA and Europe 11,724,776 (9,152,847) 2,571,929 (642,006) 68,733 1,998,656 Mexico 3,770,506 (2,333,845) 1,436,661 (313,526) 322,588 1,445,723 Total 72,258,188 (61,214,620) 11,043,568 (3,245,373) 312,698 8,110,893 Other segments 292,435 (173,608) 118,827 (34,819) (103) 83,905 Corporate unit 265,438 265,438 (334,420) (888) 159,914 90,044 Braskem consolidated before 72,816,061 (61,388,228) 11,427,833 (3,614,612) (888) 472,509 8,284,842 Eliminations and reclassifications (14,816,195) 14,811,571 (4,624) (4,624) Total 57,999,866 (46,576,657) 11,423,209 (3,614,612) (888) 472,509 8,280,218 2017 Operating expenses Net Cost of Selling, general Results from Other operating sales products Gross and distribuition equity income Operating revenue sold profit expenses investments (expenses), net Consolidated Reporting segments Chemicals 25,179,288 (20,478,914) 4,700,374 (773,396) (197,275) 3,729,703 Vinyls 3,066,879 (2,572,774) 494,105 (162,989) (163,374) 167,742 Polyolefins 19,650,398 (15,432,179) 4,218,219 (1,321,575) (177,518) 2,719,126 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 (i) Includes the amount of R$1,904,206 related to PIS and COFINS tax credits – exclusion of ICMS from the calculation base (Nota 10(c)). (ii) Includes gain from sale of “Chemicals distribution” segment in the amount of R$276,816. |
Schedule of property, plant and equipment and intangible assets by segment | (c) Property, plant and equipment and intangible assets by segment 2019 2018 Reporting segments Chemicals 10,410,524 10,916,874 Polyolefins 5,077,335 4,985,337 Vinyls 2,121,085 2,334,270 USA and Europe 4,852,760 3,875,566 Mexico 12,020,051 11,835,170 Total 34,481,755 33,947,217 Unallocated amounts 595,514 553,655 Total 35,077,269 34,500,872 |
37 Insurance coverage (Tables)
37 Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Coverage | |
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 R$ million US$ million R$ million Units in Brazil October 8, 2021 3,500 18,195 27,962 145,364 Units in United States and Germany October 8, 2021 480 2,495 2,189 11,381 Units in Mexico October 8, 2021 2,642 13,735 5,679 29,524 Total 35,830 186,269 |
1 Operations (Details Narrative
1 Operations (Details Narrative) | 12 Months Ended |
Dec. 31, 2019Plant | |
DisclosureOfOperationsLineItems [Line Items] | |
Number of industrial plants | 36 |
Odebrecht S.A. [Member] | |
DisclosureOfOperationsLineItems [Line Items] | |
Proportion of voting rights | 50.11% |
Proportion of ownership interest | 38.32% |
2 Accounting policies (Details)
2 Accounting policies (Details) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
BM Insurance Company Limited ("BM Insurance") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | [1] | BM Insurance Company Limited ("BM Insurance") | ||||
Headquarters | [1] | Bermuda | ||||
Total voting interest | 100.00% | [1] | 100.00% | [1] | ||
Braskem America Finance Company ("Braskem America Finance") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem America Finance Company ("Braskem America Finance") | |||||
Headquarters | EUA | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem America, Inc. ("Braskem America") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem America, Inc. (“Braskem America”) | |||||
Headquarters | EUA | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Argentina S.A. ("Braskem Argentina") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Argentina S.A. (“Braskem Argentina”) | |||||
Headquarters | Argentina | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Europe GmbH ("Braskem Alemanha") | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Europe GmbH ("Braskem Alemanha") | |||||
Headquarters | Germany | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Finance Limited ("Braskem Finance") | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Finance Limited (“Braskem Finance”) | |||||
Headquarters | Cayman Islands | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Idesa S.A.P.I. ("Braskem Idesa") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Idesa S.A.P.I. ("Braskem Idesa") | |||||
Headquarters | Mexico | |||||
Total voting interest | 75.00% | 75.00% | 75.00% | |||
Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Servicos") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Idesa Servicios S.A. de CV ("Braskem Idesa Serviços") | |||||
Headquarters | Mexico | |||||
Total voting interest | 75.00% | 75.00% | 75.00% | |||
Braskem Incorporated Limited ("Braskem Inc") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Incorporated Limited ("Braskem Inc") | |||||
Headquarters | Cayman Islands | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem International GmbH ("Braskem Austria") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | [2] | Braskem International GmbH ("Braskem Austria") | ||||
Headquarters | [2] | Austria | ||||
Total voting interest | [2] | 100.00% | ||||
Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem Mexico Sofom") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Mexico Proyectos S.A. de C.V. SOFOM ("Braskem México Sofom") | |||||
Headquarters | Mexico | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Mexico, S. de RL de CV ("Braskem Mexico") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Mexico, S. de RL de CV ("Braskem México") | |||||
Headquarters | Mexico | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Mexico Servicios S. RL de CV ("Braskem Mexico Servicos") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Mexico Servicios S. RL de CV ("Braskem México Serviços") | |||||
Headquarters | Mexico | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Netherlands B.V. ("Braskem Holanda") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Netherlands B.V. ("Braskem Holanda") | |||||
Headquarters | Netherlands | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Netherlands Finance B.V. ("Braskem Holanda Finance") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Netherlands Finance B.V. (“Braskem Holanda Finance”) | |||||
Headquarters | Netherlands | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Netherlands Inc. B.V. ("Braskem Holanda Inc") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Netherlands Inc. B.V. (“Braskem Holanda Inc”) | |||||
Headquarters | Netherlands | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Braskem Petroquimica Chile Ltda. ("Braskem Chile") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Braskem Petroquímica Chile Ltda. (“Braskem Chile”) | |||||
Headquarters | Chile | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Cetrel S.A. ("Cetrel") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Cetrel S.A. ("Cetrel") | |||||
Headquarters | Brazil | |||||
Total voting interest | 63.70% | 63.66% | 63.66% | |||
Distribuidora de Agua Camacari S.A. ("DAC") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Distribuidora de Água Camaçari S.A. ("DAC") | |||||
Headquarters | Brazil | |||||
Total voting interest | 63.70% | 63.66% | 63.66% | |||
Lantana Trading Co. Inc. ("Lantana") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Lantana Trading Co. Inc. (“Lantana”) | |||||
Headquarters | Bahamas | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Fundo de Investimento Caixa Jupiter Multimercado Credito Privado Longo Prazo ("FIM Jupiter") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | Fundo de Investimento Caixa Júpiter Multimercado Crédito Privado Longo Prazo ("FIM Júpiter") | |||||
Headquarters | Brazil | |||||
Total voting interest | 100.00% | 100.00% | 100.00% | |||
Fundo de Investimento Santander Netuno Multimercado Credito Privado Longo Prazo ("FIM Netuno") [Member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Subsidiary/Special Purpose Entity name | [3] | Fundo de Investimento Santander Netuno Multimercado Crédito Privado Longo Prazo ("FIM Netuno") | ||||
Headquarters | [3] | Brazil | ||||
Total voting interest | [3] | 100.00% | 100.00% | |||
[1] | Created in October 2018. | |||||
[2] | Terminated in June 2018. | |||||
[3] | Multi-asset fund created in December 2018. |
2 Accounting policies (Details
2 Accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Braskem Alemanha [Member] | |
Disclosure of subsidiaries [line items] | |
Functional currency | Euro |
BM Insurance, Braskem America, Braskem America Finance, Braskem Holanda, Braskem Holanda Finance, Braskem Holanda Inc. and Braskem Mexico Sofom [Member] | |
Disclosure of subsidiaries [line items] | |
Functional currency | U.S.dollar |
Braskem Idesa , Braskem Idesa Servicos, Braskem Mexico and Braskem Mexico Servicos [Member] | |
Disclosure of subsidiaries [line items] | |
Functional currency | Mexican peso |
Braskem Argentina [Member] | |
Disclosure of subsidiaries [line items] | |
Functional currency | Argentinean peso |
Braskem Chile [Member] | |
Disclosure of subsidiaries [line items] | |
Functional currency | Chilenean peso |
2 Accounting policies (Detail_2
2 Accounting policies (Details 2) | 12 Months Ended | ||
Dec. 31, 2019R$ / $R$ / €R$ / $$ / $€ / $ | Dec. 31, 2018R$ / $R$ / €R$ / $$ / $€ / $ | Dec. 31, 2017R$ / $R$ / €R$ / $$ / $€ / $ | |
U.S. Dollar - Brazilian Real [Member] | |||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||
End of period exchange rate | 4.0307 | 3.8748 | |
End of period exchange rate, variation | 4.02% | ||
Average exchange rate | 3.9461 | 3.6558 | 3.1925 |
Average exchange rate, variation | 7.94% | 14.51% | |
Euro - Brazilian Real [Member] | |||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||
End of period exchange rate | R$ / € | 4.5305 | 4.4390 | |
End of period exchange rate, variation | 2.06% | ||
Average exchange rate | R$ / € | 4.4159 | 4.3094 | 3.6089 |
Average exchange rate, variation | 2.47% | 19.41% | |
Mexican Peso - Brazilian Real [Member] | |||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||
End of period exchange rate | 0.2134 | 0.1972 | |
End of period exchange rate, variation | 8.22% | ||
Average exchange rate | 0.2049 | 0.1901 | 0.1694 |
Average exchange rate, variation | 7.80% | 12.24% | |
U.S. Dollar - Mexican Peso [Member] | |||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||
End of period exchange rate | $ / $ | 18.8858 | 19.6655 | |
End of period exchange rate, variation | (3.96%) | ||
Average exchange rate | $ / $ | 19.2568 | 19.2363 | 18.9142 |
Average exchange rate, variation | 0.11% | 1.70% | |
U.S. Dollar - Euro [Member] | |||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||
End of period exchange rate | € / $ | 0.8926 | 0.8729 | |
End of period exchange rate, variation | 2.26% | ||
Average exchange rate | € / $ | 0.8930 | 0.8871 | |
Average exchange rate, variation | 5.42% | 4.50% |
2 Accounting policies (Detail_3
2 Accounting policies (Details 3) - Lease Liabilities [Member] - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfAccountingPoliciesLineItems [Line Items] | ||
Lease commitments discounted at the incremental rate on the date of initial application | R$ 2177138 | |
(Plus) Financial leases as of December 31, 2018 | 100,557 | |
(Minus): short-term leases recognized immediately in profit or loss | (103,929) | |
(Minus): low value contracts recognized immediately in profit or loss | (1,071) | |
(Plus): Extension options reasonably certain to be exercised | 119,770 | |
Total | R$ 2292465 | |
Commitments of operating leases as of December 31, 2018 | R$ 3257982 |
2 Accounting policies (Detail_4
2 Accounting policies (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Weighted average incremental rate | 5.58% | ||
Record low-value agreements | Not to record low-value agreements (R$30 for companies in Brazil and US$10 for foreign subsidiaries), in accordance with the policy defined by Management. | ||
Other expenses | R$ 4446942 | R$ 554713 | R$ 1169814 |
Cost of goods sold | 45,879,118 | 46,576,657 | 36,177,408 |
General and administrative expenses | 2,224,180 | 1,793,185 | 1,434,272 |
Research and development | R$ 247730 | 219,256 | R$ 167456 |
Reclassified Items [Member] | |||
Disclosure of subsidiaries [line items] | |||
Other expenses | 375,360 | ||
Cost of goods sold | 145,437 | ||
Selling and distribution expenses | 50,306 | ||
General and administrative expenses | 160,182 | ||
Research and development | R$ 19435 |
3 Application of critical est_3
3 Application of critical estimates and judgments (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 6.47% | 8.78% |
Buildings And Improvements [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 3.42% | 3.42% |
Machinery, Equipment And Installations [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 8.01% | 8.04% |
Mines And Wells [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 8.70% | 8.84% |
Furniture And Fixtures [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 10.00% | 10.03% |
IT Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 20.04% | 20.13% |
Lab Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 9.45% | 9.53% |
Security Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 9.45% | 9.72% |
Vehicles [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 16.90% | 17.83% |
Other Property, Plant And Equipment [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation and depletion rates | 18.23% | 18.82% |
3 Application of critical est_4
3 Application of critical estimates and judgments (Details Narrative) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Description of intangible assets with indefinite useful life | These tests are based on the projected cash flow in each CGU or groups of CGUs, which are extracted from the business plan of the Company for a five-year period, mentioned in Note 3.2.1, and the Management plan for a period greater than 5 years to reflect industry cycle patterns, in a total projection period of 10 years. Perpetuity is also calculated based on the long-term vision and excluding real growth. |
Cash-Generating Units [Member] | BRAZIL | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Description of cash-generating unit | · CGU Northeastern petrochemical complex (NE): represented by assets of the ethylene, PE plants located in the Northeast region; · CGU Vinyls: represented by assets of PVC and chlorine soda plants located in Brazil; · CGU Southern petrochemical complex (South): represented by assets of the ethylene, propylene, PE and PP plants, located in the South region; · CGU Rio de Janeiro petrochemical complex (RJ): represented by assets of the ethylene, propylene, PE and PP plants, located in Rio de Janeiro state; · CGU São Paulo petrochemical complex (SP): represented by assets of the ethylene and PE plants, located in the cities of Santo André and Cubatão; · CGU Paulínia: represented by assets of the PP plant; · CGU ABC, greater São Paulo region: represented by assets of the PP plant." |
Cash-Generating Units [Member] | UNITED STATES [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Description of cash-generating unit | CGUs Polypropylene USA: there are 5 PP plants located in the United States, the assets of each plant represent a UGC. |
Cash-Generating Units [Member] | Europe | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Description of cash-generating unit | CGUs Polypropylene Europe: there are 2 PP plants located in Germany, each plan represents a UGC. |
Cash-Generating Units [Member] | MEXICO | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Description of cash-generating unit | CGU Mexico: represented by the assets of the ethylene and PE plants located in Mexico. |
4 Risk management (Details)
4 Risk management (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial liabilities [line items] | ||
Lease | R$ 2676896 | R$ 100557 |
Liquidity Risk [Member] | ||
Disclosure of financial liabilities [line items] | ||
Trade payables | 9,197,918 | |
Borrowings | 50,421,356 | |
Debentures | 350,112 | |
Braskem Idesa borrowings | 14,405,509 | |
Derivatives | 218,764 | |
Loan to non-controlling shareholder of Braskem Idesa | 2,395,887 | |
Other financial liabilities | 534,456 | |
Leniency agreement (Note 25) | 1,958,240 | |
Lease | 3,115,859 | |
Total | 82,598,101 | |
Liquidity Risk [Member] | 2021 [Member] | ||
Disclosure of financial liabilities [line items] | ||
Trade payables | 9,194,081 | |
Borrowings | 857,768 | |
Debentures | 51,348 | |
Braskem Idesa borrowings | 806,378 | |
Derivatives | 49,251 | |
Other financial liabilities | 534,456 | |
Leniency agreement (Note 25) | 363,720 | |
Lease | 665,164 | |
Total | 12,522,166 | |
Liquidity Risk [Member] | 2022 [Member] | ||
Disclosure of financial liabilities [line items] | ||
Trade payables | 3,837 | |
Borrowings | 2,277,351 | |
Debentures | 126,754 | |
Braskem Idesa borrowings | 1,743,252 | |
Derivatives | 76,791 | |
Leniency agreement (Note 25) | 376,294 | |
Lease | 565,824 | |
Total | 5,170,103 | |
Liquidity Risk [Member] | Between Two and Five Years [Member] | ||
Disclosure of financial liabilities [line items] | ||
Borrowings | 7,198,320 | |
Debentures | 143,307 | |
Braskem Idesa borrowings | 2,351,076 | |
Derivatives | 92,287 | |
Leniency agreement (Note 25) | 1,043,168 | |
Lease | 1,174,827 | |
Total | 12,002,985 | |
Liquidity Risk [Member] | 2026 Thereafter [Member] | ||
Disclosure of financial liabilities [line items] | ||
Borrowings | 40,087,917 | |
Debentures | 28,703 | |
Braskem Idesa borrowings | 9,504,803 | |
Derivatives | 435 | |
Loan to non-controlling shareholder of Braskem Idesa | 2,395,887 | |
Leniency agreement (Note 25) | 175,058 | |
Lease | 710,044 | |
Total | R$ 52902847 |
4. Risk management (Details Nar
4. Risk management (Details Narrative) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Foreign Exchange Risk [Member] | |
Disclosure of financial liabilities [line items] | |
Description of foreign exchange risk, financial Policy requirement | The Company to maintain a percentage of at least 70% of the dollar-denominated portion of net debt. If convenient, the company may maintain a percentage of more than 70%, although subject to a sensitivity analysis of key financial indicators and proof of the inexistence of significant risk of deterioration of these indicators. |
Liquidity Risk [Member] | |
Disclosure of financial liabilities [line items] | |
Revolving credit facility | R$ 1000000 |
Revolving credit facility, expiration date | Expires in 2023. |
Credit rRsk [member] | Cash and Cash Equivalents and Financial Investments [Member] | |
Disclosure of financial liabilities [line items] | |
Exposure to credit risk percentage | 45.90% |
5 Cash and cash equivalents (De
5 Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | |||||
Total | R$ 6803880 | R$ 5547637 | R$ 3775093 | R$ 6701864 | |
Domestic Market [Member] | |||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | |||||
Cash | 13,495 | 47,735 | |||
Cash equivalents | 1,963,185 | 1,754,561 | |||
Foreign Market [Member] | |||||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | |||||
Cash | [1] | 2,289,736 | 2,181,229 | ||
Cash equivalents | [1] | R$ 2537464 | R$ 1564112 | ||
[1] | On December 31, 2019, it includes cash of R$598,591 and R$418,644 of cash equivalents (R$963,357 on December 31, 2018) of the subsidiary Braskem Idesa, which cannot be used by the other subsidiaries of the Company. |
5 Cash and cash equivalents (_2
5 Cash and cash equivalents (Details Narrative) - Foreign Market [Member] - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | |||
Cash | [1] | R$ 2289736 | R$ 2181229 |
Cash equivalents | [1] | 2,537,464 | 1,564,112 |
Braskem Idsea [Member] | |||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | |||
Cash | 598,591 | 963,357 | |
Cash equivalents | R$ 418644 | R$ 963357 | |
[1] | On December 31, 2019, it includes cash of R$598,591 and R$418,644 of cash equivalents (R$963,357 on December 31, 2018) of the subsidiary Braskem Idesa, which cannot be used by the other subsidiaries of the Company. |
6 Financial investments (Detail
6 Financial investments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Current assets | R$ 1687504 | R$ 2357613 | |
Non-current assets | 9,708 | 9,998 | |
Total | 1,697,212 | 2,367,611 | |
Amortized Cost [Member] | Time Deposit Investments [Member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Total | 38,759 | 49,630 | |
Fair Value Through Profit or Loss [Member] | LFT's And LF's [Member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Total | [1] | 1,588,426 | 2,247,272 |
Fair Value Through Profit or Loss [Member] | Restricted Funds Investments [Member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Total | [2] | 9,708 | 9,998 |
Fair Value Through Profit or Loss [Member] | Other [Member] | |||
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |||
Total | R$ 60319 | R$ 60711 | |
[1] | These 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 original maturity above three months, immediate liquidity in the secondary market and Management expects their realization in the short term. | ||
[2] | Restricted funds represent bank deposits with yields of approximately 100% of the Interbank Deposit Rate ("CDI"), and their use is related to the fulfillment of the contractual obligations of the debentures. |
6 Financial investments (Deta_2
6 Financial investments (Details Narrative) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Through Profit or Loss [Member] | Restricted Funds Investments [Member] | Interbank Deposit Rate [Member] | |
DisclosureOfFinancialInvestmentsLineItems [Line Items] | |
Deposits yields rate | 100.00% |
7 Trade accounts receivable (De
7 Trade accounts receivable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | R$ 2535974 | R$ 3326628 | |||
Allowance for doubtful accounts | (229,323) | [1] | (233,625) | [1] | R$ 350025 |
Total | 2,306,651 | 3,093,003 | |||
Current assets | 2,285,750 | 3,075,218 | |||
Non-current assets | 20,901 | 17,785 | |||
Total | 2,306,651 | 3,093,003 | |||
Domestic Market [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 1,058,226 | 1,425,444 | |||
Domestic Market [Member] | Third Parties [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 1,049,412 | 1,402,638 | |||
Domestic Market [Member] | Related Parties [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 8,814 | 22,806 | |||
Foreign Market [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 1,477,748 | 1,901,184 | |||
Foreign Market [Member] | Third Parties [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | R$ 1477748 | R$ 1901184 | |||
[1] | Company's expected credit losses are determined based on the following stages: Stage 1 - when the securities are still performing in 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; in 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. |
7 Trade accounts receivable (_2
7 Trade accounts receivable (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Trade accounts receivable | R$ 2535974 | R$ 3326628 | |||
Allowance for doubtful accounts | 229,323 | [1] | R$ 233625 | [1] | R$ 350025 |
Stage 1 (Performing) [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Trade accounts receivable | 2,301,751 | ||||
Allowance for doubtful accounts | R$ 2983 | ||||
Stage 1 (Performing) [Member] | Operation Risk 1 [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Description of estimated loss percentage | Minimum risk | ||||
Trade accounts receivable | R$ 1635553 | ||||
Stage 1 (Performing) [Member] | Operation Risk 2 [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Description of estimated loss percentage | Minimum risk | ||||
Trade accounts receivable | R$ 337044 | ||||
Stage 1 (Performing) [Member] | Operation Risk 3 [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Estimated loss percentage | 0.24% | ||||
Trade accounts receivable | R$ 201126 | ||||
Allowance for doubtful accounts | R$ 485 | ||||
Stage 1 (Performing) [Member] | Operation Risk 4 [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Estimated loss percentage | 0.57% | ||||
Trade accounts receivable | R$ 126250 | ||||
Allowance for doubtful accounts | R$ 720 | ||||
Stage 1 (Performing) [Member] | Operation Risk 5 [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Estimated loss percentage | 100.00% | ||||
Trade accounts receivable | R$ 1778 | ||||
Allowance for doubtful accounts | 1,778 | ||||
Stage 2 (Significant Increase in Loss Risk) [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Trade accounts receivable | 178,887 | ||||
Allowance for doubtful accounts | R$ 173973 | ||||
Stage 2 (Significant Increase in Loss Risk) [Member] | 1st Renegotiation Lower Than 24 Months [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Description of estimated loss percentage | 24% or 100% | ||||
Trade accounts receivable | R$ 6631 | ||||
Allowance for doubtful accounts | R$ 1717 | ||||
Stage 2 (Significant Increase in Loss Risk) [Member] | 2nd Renegotiation Greater Than 24 Months [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Description of estimated loss percentage | 91% or 100% | ||||
Trade accounts receivable | R$ 1558 | ||||
Allowance for doubtful accounts | R$ 1558 | ||||
Stage 2 (Significant Increase in Loss Risk) [Member] | Legal [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Estimated loss percentage | 100.00% | ||||
Trade accounts receivable | R$ 170698 | ||||
Allowance for doubtful accounts | 170,698 | ||||
"Stage 3 (No Payment Performance - Indicative of Impairment) [Member]" | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Trade accounts receivable | 55,336 | ||||
Allowance for doubtful accounts | R$ 52367 | ||||
"Stage 3 (No Payment Performance - Indicative of Impairment) [Member]" | Between 90 and 180 Days [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Description of estimated loss percentage | 50% or 100% | ||||
Trade accounts receivable | R$ 6126 | ||||
Allowance for doubtful accounts | R$ 3157 | ||||
"Stage 3 (No Payment Performance - Indicative of Impairment) [Member]" | Above 180 Days [Member] | |||||
DisclosureOfExpectedCreditLossLineItems [Line Items] | |||||
Estimated loss percentage | 100.00% | ||||
Trade accounts receivable | R$ 49210 | ||||
Allowance for doubtful accounts | R$ 49210 | ||||
[1] | Company's expected credit losses are determined based on the following stages: Stage 1 - when the securities are still performing in 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; in 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. |
7 Trade accounts receivable (_3
7 Trade accounts receivable (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Trade Accounts Receivable | ||||
Balance of provision at the beginning of the year | R$ 233625 | [1] | R$ 350025 | |
Provision in the year | (59,885) | (24,604) | ||
Reversal in the year | 45,501 | 124,579 | ||
Write-offs | 18,686 | 16,425 | ||
Balance of provision at the end of the year | [1] | R$ 229323 | R$ 233625 | |
[1] | Company's expected credit losses are determined based on the following stages: Stage 1 - when the securities are still performing in 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; in 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. |
7 Trade accounts receivable (_4
7 Trade accounts receivable (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | R$ 2535974 | R$ 3326628 | |||
Allowance for doubtful accounts | (229,323) | [1] | (233,625) | [1] | R$ 350025 |
Total | 2,306,651 | 3,093,003 | |||
Not Past Due [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 2,001,326 | 2,616,104 | |||
Up To 90 Days [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 318,852 | 492,265 | |||
91 To 80 Days [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | 15,368 | 10,941 | |||
As Of 180 Days [Member] | |||||
DisclosureOfTradeAccountsReceivableLineItems [Line Items] | |||||
Trade accounts receivable, gross | R$ 200428 | R$ 207318 | |||
[1] | Company's expected credit losses are determined based on the following stages: Stage 1 - when the securities are still performing in 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; in 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. |
7 Trade accounts receivable (_5
7 Trade accounts receivable (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade Accounts Receivable | ||
Trade accounts receivable billing period | Billing period is generally 30 days. | |
Trade accounts receivable | R$ 2306651 | R$ 3093003 |
8 Inventories (Details)
8 Inventories (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Inventories Abstract | ||
Finished goods | R$ 4634192 | R$ 5542220 |
Raw materials, production inputs and packaging | 1,665,797 | 1,578,523 |
Maintenance materials | 608,693 | 465,684 |
Advances to suppliers | 68,382 | 93,445 |
Imports in transit | 664,345 | 838,099 |
Total | 7,641,409 | 8,517,971 |
Current assets | 7,625,084 | 8,486,577 |
Non-current assets | 16,325 | 31,394 |
Total | R$ 7641409 | R$ 8517971 |
8 Inventories (Details 1)
8 Inventories (Details 1) - Provision [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | ||
Additions | R$ 72672 | R$ 23674 |
Reversals | 10,636 | 14,721 |
Total | R$ 62036 | R$ 8953 |
9 Related parties (Details)
9 Related parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets | |||
Trade accounts receivable | R$ 2285750 | R$ 3075218 | |
Inventories | 7,625,084 | 8,486,577 | |
Dividends and interest on capital | 3,074 | 890 | |
Total assets | 68,129,037 | 58,807,533 | |
Current liabilities | |||
Trade payables | 9,116,989 | 8,341,252 | |
Payable notes | 133,858 | 59,145 | |
Other payables | 930,638 | 623,007 | |
Loan to non-controlling shareholders of Braskem Idesa | 2,395,887 | 2,183,830 | |
Sales of products | 52,323,525 | 57,999,866 | R$ 49260594 |
Purchases of raw materials, finished goods services and utilities | 45,879,118 | 46,576,657 | 36,177,408 |
Financial income (expenses) | (4,756,751) | (4,675,482) | (3,942,349) |
Other income | (2,038,508) | 472,509 | (854,880) |
General and administrative expenses | 2,224,180 | 1,793,185 | 1,434,272 |
Odebrecht and Subsidiaries and Associates [Member] | |||
Current assets | |||
Inventories | 8,665 | ||
Total assets | 8,665 | ||
Current liabilities | |||
Trade payables | 12,402 | 16,851 | |
Payable notes | 58 | ||
Other payables | 2,841 | ||
Total liabilities | 12,460 | 19,692 | |
Sales of products | 27,467 | ||
Purchases of raw materials, finished goods services and utilities | 293,501 | 460,480 | 742,161 |
Financial income (expenses) | (96) | 2,056 | |
Other income | (34,873) | 4,214 | |
Acquisiton of subsidiary | 610,000 | ||
Petrobras and Subsidiaries [Member] | |||
Current assets | |||
Trade accounts receivable | 4,257 | 20,119 | |
Inventories | 17,242 | 30,193 | |
Total assets | 21,499 | 50,312 | |
Current liabilities | |||
Trade payables | 133,759 | 160,324 | |
Other payables | 1,420 | 484 | |
Total liabilities | 135,179 | 160,808 | |
Sales of products | 665,417 | 1,225,443 | 1,810,789 |
Purchases of raw materials, finished goods services and utilities | 12,584,453 | 15,540,144 | 12,795,819 |
Financial income (expenses) | (5) | (49) | (39,433) |
Other Related Parties [Member] | |||
Current assets | |||
Trade accounts receivable | 4,557 | 2,687 | |
Dividends and interest on capital | 3,074 | 890 | |
Total assets | 7,631 | 3,577 | |
Current liabilities | |||
Trade payables | 9,819 | ||
Other payables | 136 | ||
Loan to non-controlling shareholders of Braskem Idesa | 2,395,887 | 2,183,830 | |
Total liabilities | 2,405,842 | 2,183,830 | |
Sales of products | 588,785 | 736,192 | 629,302 |
Purchases of raw materials, finished goods services and utilities | 10,738 | 3,800 | 5,664 |
Financial income (expenses) | (10,967) | (106,516) | |
Post-employment benefits plan ("EPE") Odebrecht Previdencia Privada ("Odeprev") | 48,514 | 36,725 | |
Acquisiton of subsidiary | 49,867 | ||
Associates Companies, Jointly-Controlled Investment and Related Companies [Member] | |||
Current assets | |||
Trade accounts receivable | 8,814 | 22,806 | |
Inventories | 17,242 | 38,858 | |
Dividends and interest on capital | 3,074 | 890 | |
Total assets | 29,130 | 62,554 | |
Current liabilities | |||
Trade payables | 155,980 | 177,175 | |
Payable notes | 58 | ||
Other payables | 1,556 | 3,325 | |
Loan to non-controlling shareholders of Braskem Idesa | 2,395,887 | ||
Total liabilities | 2,553,481 | ||
Sales of products | 1,254,202 | 1,961,635 | 2,467,558 |
Purchases of raw materials, finished goods services and utilities | 12,888,692 | 16,004,424 | 13,543,644 |
Financial income (expenses) | (11,068) | (106,565) | (37,377) |
Other income | (34,873) | 4,214 | |
Post-employment benefits plan ("EPE") Odebrecht Previdencia Privada ("Odeprev") | R$ 48514 | 36,725 | |
Acquisiton of subsidiary | R$ 49867 | R$ 610000 |
9 Related parties (Details 1)
9 Related parties (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions [abstract] | |||
Short-term benefits | R$ 70366 | R$ 60922 | R$ 60303 |
Post-employment benefit | 1,104 | 989 | 664 |
Long term incentive plan | 14,724 | 4,404 | |
Total | R$ 86194 | R$ 66315 | R$ 60967 |
9 Related parties (Details Narr
9 Related parties (Details Narrative) - BRL (R$) R$ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2019 | Jan. 31, 2019 | May 31, 2018 | Dec. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | |
Braskem Joint Venture [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Receivable from related parties | R$ 37873 | R$ 127342 | ||||
New and/or Renewed Agreements with Related Companies [Member] | Odebrecht Transport S.A [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Related parties amount | 5,633 | 5,844 | ||||
Related parties estimated value | R$ 93000 | |||||
Borrowings terms | P10Y | |||||
Agro Energia Santa Luzia S.A [Member] | Odebrecht Transport S.A [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Advance of related parties | R$ 100413 | |||||
Agreement With Petrobras [Member] | Petrobras and Subsidiaries [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Related parties amount | R$ 7000 | |||||
Borrowings terms | P5Y | |||||
Gasoline To Petrobras Distribuidora S.A [Member] | Petrobras and Subsidiaries [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Receivable from related parties | 1,011,839 | 1,122,417 | ||||
Purchase Agreement [Member] | Petrobras and Subsidiaries [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Related parties estimated value | R$ 210000 | 820,000 | ||||
Borrowings terms | P5Y | |||||
Gasoline [Member] | Braskem Joint Venture [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Receivable from related parties | 257,295 | R$ 440801 | ||||
Board of Directors [Member] | New and/or Renewed Agreements with Related Companies [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Related parties amount | R$ 20000 |
10 Taxes recoverable (Details)
10 Taxes recoverable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | R$ 3495729 | R$ 1755979 |
Current taxes recoverable | 1,238,011 | 423,188 |
Noncurrent taxes recoverable | 2,257,718 | 1,332,791 |
Parent Company and Subsidiaries in Brazil [Member] | IPI [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 477 | 9,050 |
Parent Company and Subsidiaries in Brazil [Member] | Value-Added Tax On Sales and Services (ICMS) - Normal Operations [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 255,945 | 427,331 |
Parent Company and Subsidiaries in Brazil [Member] | ICMS - Credits from PP&E [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 166,824 | 170,998 |
Parent Company and Subsidiaries in Brazil [Member] | Social Integration Program (PIS) and Social Contribution On Revenue [Meber] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 45,604 | 482 |
Parent Company and Subsidiaries in Brazil [Member] | PIS and COFINS - Credits from PP&E [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 316,973 | 255,739 |
Parent Company and Subsidiaries in Brazil [Member] | REINTEGRA Program [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 19,848 | 20,615 |
Parent Company and Subsidiaries in Brazil [Member] | Federal Supervenience [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 2,459,293 | 688,111 |
Parent Company and Subsidiaries in Brazil [Member] | Other Taxes Recoverable [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 5,434 | 2,852 |
Foreign Subsidiaries [Member] | Other Taxes Recoverable [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | 7,701 | 7,750 |
Foreign Subsidiaries [Member] | Value-Added Tax ("IVA") [Member] | ||
DisclosureOfTaxesRecoverableLineItems [Line Items] | ||
Taxes recoverable | R$ 217630 | R$ 173051 |
10 Taxes recoverable (Details N
10 Taxes recoverable (Details Narrative) - BRL (R$) R$ in Thousands | 1 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | 17 Months Ended | |
Jun. 30, 2018 | Feb. 28, 2015 | Nov. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | May 31, 2018 | |
DisclosureOfTaxesRecoverableLineItems [Line Items] | |||||||
Rate of income tax refund | 0.10% | 3.00% | 1.00% | 0.10% | 2.00% | ||
Taxes recoverable | R$ 3495729 | R$ 1755979 | |||||
Total tax assets | 2,350,817 | ||||||
Tax assets current | 439,933 | 423,900 | |||||
Tax assets non current | 239,847 | 241,788 | |||||
REINTEGRA Program [Member] | |||||||
DisclosureOfTaxesRecoverableLineItems [Line Items] | |||||||
Amount of tax credits | 9,157 | 69,055 | |||||
Offset amount of tax | 9,532 | R$ 144957 | |||||
PIS And COFINS Taxes [Member] | |||||||
DisclosureOfTaxesRecoverableLineItems [Line Items] | |||||||
Taxes recoverable | 2,048,782 | ||||||
Other Operating Income [Member] | |||||||
DisclosureOfTaxesRecoverableLineItems [Line Items] | |||||||
Taxes recoverable | 1,904,206 | ||||||
Financial Income [Member] | |||||||
DisclosureOfTaxesRecoverableLineItems [Line Items] | |||||||
Taxes recoverable | R$ 207582 |
11 Investments (Details)
11 Investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of associates [line items] | |||||
Net profit (loss) for the year | R$ 2640398 | R$ 2868185 | R$ 3915771 | ||
Equity | R$ 3944706 | 5,654,670 | 5,472,800 | R$ 1720710 | |
RPR [Member] | |||||
Disclosure of associates [line items] | |||||
Investment name | RPR | ||||
Interest in total and voting capital (%) | [1] | 33.20% | |||
Net profit (loss) for the year | [1] | R$ 29687 | 6,358 | 106,109 | |
Equity | [1] | R$ 93025 | 99,672 | ||
Odebrecht Comercializadora de Energia S.A. ("OCE") [Member] | |||||
Disclosure of associates [line items] | |||||
Investment name | Odebrecht Comercializadora de Energia S.A. ("OCE") | ||||
Net profit (loss) for the year | [2] | (48) | (543) | ||
Borealis [Member] | |||||
Disclosure of associates [line items] | |||||
Investment name | Borealis | ||||
Interest in total and voting capital (%) | [3] | 20.00% | |||
Net profit (loss) for the year | [3] | R$ 17622 | (2,900) | R$ 17752 | |
Equity | [3] | R$ 164086 | R$ 163884 | ||
[1] | RPR - its main activities are the refine, processing and sale and import of oil, its byproducts and correlated products. | ||||
[2] | Terminated in June 2018. | ||||
[3] | Borealis - its main activities are the production and commercialization of petrochemical byproducts and correlated products. |
11 Investments (Details 1)
11 Investments (Details 1) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of associates [line items] | |
Balance at beginning | R$ 65954 |
Dividends and interest on equity | (7,297) |
Equity in results of investees | 12,899 |
Equity valuation adjustments | (7,769) |
Other | 56 |
Balance at end | R$ 63843 |
Associate Borealis [Member] | |
Disclosure of associates [line items] | |
Domestic associate name | Borealis |
Balance at beginning | R$ 32776 |
Dividends and interest on equity | (3,002) |
Equity in results of investees | 3,042 |
Balance at end | R$ 32816 |
Associate RPR [Member] | |
Disclosure of associates [line items] | |
Domestic associate name | RPR |
Balance at beginning | R$ 33094 |
Dividends and interest on equity | (4,295) |
Equity in results of investees | 9,857 |
Equity valuation adjustments | (7,769) |
Balance at end | R$ 30887 |
Associate Other [Member] | |
Disclosure of associates [line items] | |
Domestic associate name | Other |
Balance at beginning | R$ 84 |
Other | 56 |
Balance at end | R$ 140 |
11 Investments (Details 2)
11 Investments (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Current assets | |||||||
Cash and cash equivalents | R$ 6803880 | R$ 5547637 | R$ 3775093 | R$ 6701864 | |||
Financial investments | 1,687,504 | 2,357,613 | |||||
Trade accounts receivable | 2,285,750 | 3,075,218 | |||||
Inventories | 7,625,084 | 8,486,577 | |||||
Taxes recoverable | 1,238,011 | 423,188 | |||||
Income tax and social contribution | 439,933 | 423,900 | |||||
Derivatives | 4,712 | 27,714 | |||||
Judicial deposits | 2,571,683 | ||||||
Other receivables | 732,997 | 691,968 | |||||
Current assets | 23,389,554 | 21,033,815 | |||||
Non-current assets | |||||||
Taxes recoverable | 2,257,718 | 1,332,791 | |||||
Income tax and social contribution | 239,847 | 241,788 | |||||
Deferred tax | 2,662,596 | 1,104,158 | 1,165,726 | ||||
Derivatives | 17,877 | 46,664 | |||||
Judicial deposits | 1,508,880 | 169,536 | |||||
Other receivables | 369,642 | 377,909 | |||||
Property, plant and equipment | 32,315,181 | 31,759,890 | 29,761,610 | 29,761,610 | |||
Intangible | 2,762,088 | 2,740,982 | |||||
Right of use of assets | 2,605,654 | ||||||
Non-current assets | 44,739,483 | 37,773,718 | |||||
Total assets | 68,129,037 | 58,807,533 | |||||
Current | |||||||
Trade payables | 9,116,989 | 8,341,252 | |||||
Borrowings | 774,924 | 737,436 | |||||
Debenture | 46,666 | 27,732 | |||||
Braskem Idesa borrowings | 744,408 | 10,504,592 | |||||
Payroll and related charges | 623,723 | 645,396 | |||||
Taxes payable | 322,886 | 432,005 | |||||
Income tax and social contribution | 34,856 | 69,268 | |||||
Lease | 676,291 | 9,767 | |||||
Provision - geological event in Alagoas | 1,450,476 | ||||||
Other financial liabilities | 516,933 | ||||||
Other payables | 1,908,008 | 1,998,630 | |||||
Current liabilities | 16,216,160 | 22,766,078 | |||||
Non-current | |||||||
Loan agreements | 28,242,052 | 24,160,720 | |||||
Braskem Idesa borrowings | 9,237,318 | ||||||
Debentures | 227,901 | 266,777 | |||||
Loan to non-controlling shareholders of Braskem Idesa | 2,395,887 | 2,183,830 | |||||
Deferred income tax and social contribution | 273,036 | 381,582 | |||||
Lease | 2,000,605 | 90,790 | |||||
Provision - geological event in Alagoas | 1,932,591 | ||||||
Other payables | 3,658,781 | 3,303,086 | |||||
Non-current liabilities | 47,968,171 | 30,386,785 | |||||
Shareholders' equity | |||||||
Attributable to the Company's shareholders | 4,885,298 | 6,531,070 | |||||
Non-controlling interest in subsidiaries | (940,592) | (876,400) | |||||
Shareholders' equity | 3,944,706 | 5,654,670 | 5,472,800 | 1,720,710 | |||
Total liabilities and shareholders' equity | 68,129,037 | 58,807,533 | |||||
Consolidated Braskem Without The Effect Of Braskem Idesa Consolidated [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 5,786,645 | 4,584,280 | 3,480,407 | 6,500,265 | |||
Financial investments | 1,687,504 | 2,357,613 | |||||
Trade accounts receivable | 1,973,414 | 2,574,791 | |||||
Inventories | 7,028,641 | 7,907,429 | |||||
Taxes recoverable | 1,084,055 | 313,499 | |||||
Income tax and social contribution | 439,933 | 423,900 | |||||
Derivatives | 4,712 | 6,714 | |||||
Judicial deposits | 2,571,683 | ||||||
Other receivables | 393,593 | 372,846 | |||||
Current assets | 20,970,180 | 18,541,072 | |||||
Non-current assets | |||||||
Taxes recoverable | 2,257,652 | 1,332,730 | |||||
Income tax and social contribution | 239,847 | 241,788 | |||||
Deferred tax | 1,713,837 | 114,000 | |||||
Related parties | 6,729,486 | 6,137,206 | |||||
Derivatives | 17,877 | ||||||
Judicial deposits | 1,508,880 | 169,536 | |||||
Other receivables | 369,137 | 377,356 | |||||
Property, plant and equipment | 20,488,870 | 20,102,981 | |||||
Intangible | 2,568,347 | 2,562,722 | |||||
Right of use of assets | 2,309,506 | ||||||
Non-current assets | 38,203,439 | 31,038,319 | |||||
Total assets | 59,173,619 | 49,579,391 | |||||
Current | |||||||
Trade payables | 8,903,168 | 8,099,755 | |||||
Borrowings | 774,924 | 737,436 | |||||
Debenture | 46,666 | 27,732 | |||||
Payroll and related charges | 598,147 | 617,079 | |||||
Taxes payable | 306,453 | 419,204 | |||||
Income tax and social contribution | 34,856 | 69,268 | |||||
Lease | 619,217 | 9,767 | |||||
Provision - geological event in Alagoas | 1,450,476 | ||||||
Other financial liabilities | 516,933 | ||||||
Other payables | 1,798,865 | 1,922,781 | |||||
Current liabilities | 15,049,705 | 11,903,022 | |||||
Non-current | |||||||
Loan agreements | 28,242,052 | 24,160,720 | |||||
Debentures | 227,901 | 266,777 | |||||
Loan to non-controlling shareholders of Braskem Idesa | [1] | ||||||
Deferred income tax and social contribution | 273,036 | 381,582 | |||||
Provision for losses on subsidiaries | 3,082,173 | 2,871,819 | |||||
Lease | 1,767,314 | 90,790 | |||||
Provision - geological event in Alagoas | 1,932,591 | ||||||
Other payables | 3,625,695 | 3,292,738 | |||||
Non-current liabilities | 39,150,762 | 31,064,426 | |||||
Shareholders' equity | |||||||
Attributable to the Company's shareholders | 4,886,089 | 6,531,070 | |||||
Non-controlling interest in subsidiaries | 87,063 | 80,873 | |||||
Shareholders' equity | 4,973,152 | 6,611,943 | |||||
Total liabilities and shareholders' equity | 59,173,619 | 49,579,391 | |||||
Braskem Idesa Consolidated [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 1,017,235 | [2] | 963,357 | [2] | R$ 294686 | R$ 201599 | |
Trade accounts receivable | [2] | 331,838 | 627,879 | ||||
Inventories | [2] | 596,443 | 579,148 | ||||
Taxes recoverable | [2] | 153,956 | 109,689 | ||||
Derivatives | [2] | 21,000 | |||||
Other receivables | [2] | 339,404 | 319,122 | ||||
Current assets | [2] | 2,438,876 | 2,620,195 | ||||
Non-current assets | |||||||
Taxes recoverable | [2] | 66 | 61 | ||||
Deferred tax | [2] | 948,759 | 990,158 | ||||
Related parties | [2],[3] | ||||||
Derivatives | [2] | 46,664 | |||||
Other receivables | [2] | 505 | 553 | ||||
Property, plant and equipment | [2] | 12,537,615 | 12,365,063 | [4] | |||
Intangible | [2] | 193,741 | 178,260 | ||||
Right of use of assets | [2] | 296,148 | |||||
Non-current assets | [2] | 13,976,834 | 13,580,759 | ||||
Total assets | [2] | 16,415,710 | 16,200,954 | ||||
Current | |||||||
Trade payables | [2] | 233,323 | 368,949 | ||||
Braskem Idesa borrowings | [2] | 744,408 | 10,504,592 | ||||
Payroll and related charges | [2] | 25,576 | 28,317 | ||||
Taxes payable | [2] | 16,433 | 12,801 | ||||
Lease | [2] | 57,074 | |||||
Other payables | [2] | 109,143 | 75,849 | ||||
Current liabilities | [2] | 1,185,957 | 10,990,508 | ||||
Non-current | |||||||
Braskem Idesa borrowings | [2] | 9,237,318 | |||||
Accounts payable to related parties | [2] | 6,714,236 | 6,147,768 | [3] | |||
Loan to non-controlling shareholders of Braskem Idesa | [2] | 2,395,887 | 2,183,830 | ||||
Provision for losses on subsidiaries | [2],[5] | ||||||
Lease | [2] | 233,291 | |||||
Other payables | [2] | 33,086 | 10,348 | ||||
Non-current liabilities | [2] | 18,613,818 | 8,341,946 | ||||
Shareholders' equity | |||||||
Attributable to the Company's shareholders | [2] | (3,384,065) | (3,131,500) | ||||
Shareholders' equity | [2] | (3,384,065) | (3,131,500) | ||||
Total liabilities and shareholders' equity | [2] | 16,415,710 | 16,200,954 | ||||
Eliminations [Member] | |||||||
Current assets | |||||||
Trade accounts receivable | (19,502) | (127,452) | |||||
Current assets | (19,502) | (127,452) | |||||
Non-current assets | |||||||
Related parties | (6,729,486) | (6,137,206) | |||||
Property, plant and equipment | (711,304) | (708,154) | |||||
Non-current assets | (7,440,790) | (6,845,360) | |||||
Total assets | (7,460,292) | (6,972,812) | |||||
Current | |||||||
Trade payables | (19,502) | (127,452) | |||||
Current liabilities | (19,502) | (127,452) | |||||
Non-current | |||||||
Accounts payable to related parties | (6,714,236) | (6,147,768) | |||||
Provision for losses on subsidiaries | (3,082,173) | (2,871,819) | |||||
Non-current liabilities | (9,796,409) | (9,019,587) | |||||
Shareholders' equity | |||||||
Attributable to the Company's shareholders | 3,383,274 | 3,131,500 | |||||
Non-controlling interest in subsidiaries | (1,027,655) | (957,273) | |||||
Shareholders' equity | 2,355,619 | 2,174,227 | |||||
Total liabilities and shareholders' equity | R$ 7460292 | R$ 6972812 | |||||
[1] | Loan payable, maturing December 2029 and 7% p.a., to the non-controlling shareholder. These proceeds were used by Braskem Idesa to fund its construction project. | ||||||
[2] | Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Servicos. | ||||||
[3] | Loan from Braskem Holanda as part of shareholders' contribution to the Braskem Idesa project. | ||||||
[4] | Adjustment corresponding to the capitalization of a portion of financial charges of the abovementioned loan. | ||||||
[5] | Provision recorded in the subsidiary Braskem Holanda for the negative shareholders' equity of Braskem Idesa. |
11 Investments (Details 3)
11 Investments (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Net revenue | R$ 52323525 | R$ 57999866 | R$ 49260594 |
Cost of products sold | (45,879,118) | (46,576,657) | (36,177,408) |
Gross profit | 6,444,407 | 11,423,209 | 13,083,186 |
Income (expenses) | |||
Selling and distribution | (1,783,455) | (1,689,179) | (1,446,153) |
(Loss) reversals for impairment of trade accounts receivable | (7,069) | 87,008 | (13,455) |
General and administrative | (2,224,180) | (1,793,185) | (1,434,272) |
Research and development | (247,730) | (219,256) | (167,456) |
Results from equity investments | 10,218 | (888) | 39,956 |
Other income | 2,408,434 | 1,027,222 | 314,934 |
Other expenses | (4,446,942) | (554,713) | (1,169,814) |
Operating profit | 153,683 | 8,280,218 | 9,206,926 |
Financial results | |||
Financial expenses | (3,882,785) | (3,007,551) | (3,747,217) |
Financial income | 850,554 | 589,052 | 603,630 |
Exchange rate variations, net | (1,724,520) | (2,256,983) | (798,762) |
Finance income (cost) | (4,756,751) | (4,675,482) | (3,942,349) |
Profit (loss) before income tax and social contribution | (4,603,068) | 3,604,736 | 5,264,577 |
IR and CSL - current and deferred | 1,962,670 | (736,551) | (1,357,682) |
IR and CSL - current and deferred | 1,962,670 | (736,551) | (1,357,682) |
Profit (loss)for the year | (2,640,398) | 2,868,185 | 3,906,895 |
Discontinued operations results | |||
Profit (loss) from discontinued operations | 13,499 | ||
IR and CSL - current and deferred | (4,623) | ||
Profit from discontinued operations | 8,876 | ||
(Loss) profit for the year | (2,640,398) | 2,868,185 | 3,915,771 |
Consolidated Braskem Without The Effect Of Braskem Idesa Consolidated [Member] | |||
Disclosure of subsidiaries [line items] | |||
Net revenue | 49,961,286 | 54,851,243 | 46,207,109 |
Cost of products sold | (44,111,980) | (44,928,721) | (34,675,494) |
Gross profit | 5,849,306 | 9,922,522 | 11,531,615 |
Income (expenses) | |||
Selling and distribution | (1,582,794) | (1,495,507) | (1,274,362) |
(Loss) reversals for impairment of trade accounts receivable | (4,772) | 87,008 | (13,455) |
General and administrative | (2,082,002) | (1,669,277) | (1,336,072) |
Research and development | (247,730) | (219,256) | (167,456) |
Results from equity investments | (326,427) | 76,821 | 191,949 |
Other income | 2,102,684 | 656,725 | 282,629 |
Other expenses | (4,466,450) | (502,795) | (1,169,814) |
Operating profit | (758,185) | 6,856,241 | 8,045,034 |
Financial results | |||
Financial expenses | (3,009,471) | (2,227,544) | (3,044,668) |
Financial income | 1,135,118 | 867,185 | 850,367 |
Exchange rate variations, net | (1,768,850) | (2,014,205) | (936,804) |
Finance income (cost) | (3,643,203) | (3,374,564) | (3,131,105) |
Profit (loss) before income tax and social contribution | (4,401,388) | 3,481,677 | 4,913,929 |
IR and CSL - current and deferred | 1,873,207 | (639,394) | (1,057,699) |
IR and CSL - current and deferred | 1,873,207 | (639,394) | (1,057,699) |
Profit (loss)for the year | (2,528,181) | 2,842,283 | 3,856,230 |
Discontinued operations results | |||
Profit (loss) from discontinued operations | 13,499 | ||
IR and CSL - current and deferred | (4,623) | ||
Profit from discontinued operations | 8,876 | ||
(Loss) profit for the year | (2,528,181) | 2,842,283 | 3,865,106 |
Braskem Idesa Consolidated [Member] | |||
Disclosure of subsidiaries [line items] | |||
Net revenue | 3,050,420 | 3,766,371 | 3,656,801 |
Cost of products sold | (2,509,060) | (2,314,998) | (2,125,031) |
Gross profit | 541,360 | 1,451,373 | 1,531,770 |
Income (expenses) | |||
Selling and distribution | (200,661) | (193,672) | (171,791) |
(Loss) reversals for impairment of trade accounts receivable | (2,297) | ||
General and administrative | (141,269) | (123,576) | (122,043) |
Other income | 305,750 | 370,497 | 32,305 |
Other expenses | (19,508) | (51,918) | |
Operating profit | 522,391 | 1,452,704 | 1,270,241 |
Financial results | |||
Financial expenses | (1,205,412) | (1,090,019) | (973,952) |
Financial income | 47,534 | 31,879 | 24,666 |
Exchange rate variations, net | 75,610 | (232,064) | 132,186 |
Finance income (cost) | (1,082,268) | (1,290,204) | (817,100) |
Profit (loss) before income tax and social contribution | (559,877) | 162,500 | 453,141 |
IR and CSL - current and deferred | 89,463 | (97,157) | (299,983) |
IR and CSL - current and deferred | 89,463 | (97,157) | (299,983) |
Profit (loss)for the year | (470,414) | 65,343 | 153,158 |
Discontinued operations results | |||
(Loss) profit for the year | (470,414) | 65,343 | 153,158 |
Eliminations [Member] | |||
Disclosure of subsidiaries [line items] | |||
Net revenue | (688,181) | (617,748) | (603,316) |
Cost of products sold | 741,922 | 667,062 | 623,117 |
Gross profit | 53,741 | 49,314 | 19,801 |
Income (expenses) | |||
General and administrative | (909) | (332) | 23,843 |
Results from equity investments | 336,645 | (77,709) | (151,993) |
Operating profit | 389,477 | (28,727) | (108,349) |
Financial results | |||
Financial expenses | 332,098 | 310,012 | 271,403 |
Financial income | (332,098) | (310,012) | (271,403) |
Exchange rate variations, net | (31,280) | (10,714) | 5,856 |
Finance income (cost) | (31,280) | (10,714) | 5,856 |
Profit (loss) before income tax and social contribution | 358,197 | (39,441) | (102,493) |
Profit (loss)for the year | 358,197 | (39,441) | (102,493) |
Discontinued operations results | |||
(Loss) profit for the year | R$ 358197 | R$ 39441 | R$ 102493 |
11 Investments (Details 4)
11 Investments (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of subsidiaries [line items] | |||||
Profit (loss) before income tax and social contribution | R$ 4603068 | R$ 3604736 | R$ 5264577 | ||
Adjustments for reconciliation of profit | |||||
Depreciation, amortization and depletion | 3,632,265 | 2,990,577 | 2,928,855 | ||
Results from equity investments | (10,218) | 888 | (39,956) | ||
Interest and monetary and exchange variations, net | 4,145,110 | 6,013,944 | 3,697,714 | ||
Gain from divestment in subsidiary | (276,816) | ||||
Reversal of provisions | 320,439 | 23,725 | (223,340) | ||
Provisions - Leniency agreement | 375,476 | ||||
Provision - geological event in Alagoas | 3,383,067 | ||||
PIS and COFINS credits - exclusion of ICMS from the calculation basis | (1,904,206) | (519,830) | |||
Provision for losses and write-offs of long-lived assets | 225,204 | 72,470 | 213,184 | ||
Loss (reversals) for impairment of trade accounts receivable | 7,069 | (87,008) | 13,455 | ||
Adjustments for reconciliation of profit | 5,195,662 | 12,099,502 | 11,953,149 | ||
Changes in operating working capital | |||||
Other financial assets | (3,680,460) | ||||
Financial investments | 797,445 | 98,349 | (953,228) | ||
Trade accounts receivable | 895,046 | 223,418 | (1,611,847) | ||
Inventories | 867,817 | (1,537,290) | (1,351,028) | ||
Taxes recoverable | 1,195,427 | 1,022,242 | 469,293 | ||
Prepaid expenses | 202,732 | (105,163) | (30,521) | ||
Other receivables | (273,665) | (248,988) | 25,802 | ||
Trade payables | 282,445 | 1,343,375 | (1,642,649) | ||
Taxes payable | (569,793) | (977,248) | (215,514) | ||
Advances from customers | 197,965 | (199,958) | (13,512) | ||
Leniency agreement | (341,605) | (330,006) | (1,343,803) | ||
Sundry provisions | (215,548) | (116,458) | 194,596 | ||
Other payables | 362,203 | 833,227 | 55,541 | ||
Cash generated (used) from operations | 4,915,671 | 12,105,002 | 5,536,279 | ||
Interest paid | (2,238,445) | (1,916,801) | (2,154,053) | ||
Income tax and social contribution paid | (411,951) | (937,831) | (920,606) | ||
Net cash generated (used) by operating activities | 2,265,275 | 9,250,370 | 2,461,620 | ||
Proceeds from the sale of fixed assets and intangible assets | 12,590 | 95,133 | 39,660 | ||
Proceeds from the sale of investments | 81,000 | 450,000 | |||
Funds received in the investments' capital reduction | 2,254 | ||||
Dividends received | 3,513 | 41,791 | |||
Additions to investments in subsidiaries | (608,181) | ||||
Acquisitions to property, plant and equipment and intangible assets | (2,682,522) | (2,706,328) | (2,273,197) | ||
Other investments | (2,167) | (14,683) | |||
Net cash used in investing activities | (2,666,419) | (2,488,317) | (2,406,401) | ||
Short-term and Long-term debt | |||||
Acquired | 20,586,103 | 4,301,626 | 8,492,341 | ||
Payments | (17,425,409) | (6,592,197) | (8,779,091) | ||
Derivative transactions | |||||
Payments | (810,279) | ||||
Braskem Idesa borrowings | |||||
Acquired | 3,497,622 | 187,959 | |||
Payments | (4,398,453) | (812,929) | (1,080,502) | ||
Related parties | |||||
Lease | (454,190) | ||||
Dividends paid | (668,904) | (1,499,900) | (998,893) | ||
Other financial liabilities | 499,999 | ||||
Cash generated (used) in financing activities | 1,636,768 | (4,603,400) | (2,988,465) | ||
Exchange variation on cash of foreign subsidiaries | 20,619 | (386,109) | 6,475 | ||
Increase (decrease) in cash and cash equivalents | 1,256,243 | 1,772,544 | (2,926,771) | ||
Cash and cash equivalents at the beginning of the year | 5,547,637 | 3,775,093 | 6,701,864 | ||
Cash and cash equivalents at the end of the year | 6,803,880 | 5,547,637 | 3,775,093 | ||
Increase in cash and cash equivalents | 1,256,243 | 1,772,544 | (2,926,771) | ||
Consolidated Braskem Without The Effect Of Braskem Idesa Consolidated [Member] | |||||
Disclosure of subsidiaries [line items] | |||||
Profit (loss) before income tax and social contribution | (4,401,388) | 3,481,677 | 4,913,929 | ||
Adjustments for reconciliation of profit | |||||
Depreciation, amortization and depletion | 2,732,181 | 2,228,978 | 2,230,466 | ||
Results from equity investments | 326,427 | (76,821) | (191,949) | ||
Interest and monetary and exchange variations, net | 3,050,987 | 4,658,342 | 2,900,745 | ||
Gain from divestment in subsidiary | (276,816) | ||||
Reversal of provisions | 320,439 | 23,725 | (223,340) | ||
Provisions - Leniency agreement | 375,476 | ||||
Provision - geological event in Alagoas | 3,383,067 | ||||
PIS and COFINS credits - exclusion of ICMS from the calculation basis | (1,904,206) | (519,830) | |||
Provision for losses and write-offs of long-lived assets | 7,069 | (87,008) | 13,455 | ||
Loss (reversals) for impairment of trade accounts receivable | 224,825 | 69,270 | 212,759 | ||
Adjustments for reconciliation of profit | 3,739,401 | 9,778,333 | 9,954,725 | ||
Changes in operating working capital | |||||
Other financial assets | (3,680,460) | ||||
Financial investments | 797,445 | 98,349 | (953,228) | ||
Trade accounts receivable | 677,176 | 251,683 | (1,317,929) | ||
Inventories | 825,236 | (1,337,618) | (1,387,696) | ||
Taxes recoverable | 1,216,225 | 1,068,637 | 415,923 | ||
Prepaid expenses | 85,549 | (67,051) | (21,732) | ||
Other receivables | (242,727) | (12,596) | 34,500 | ||
Trade payables | 330,633 | 1,113,381 | (1,444,468) | ||
Taxes payable | (485,309) | (828,222) | (132,697) | ||
Advances from customers | 176,189 | (218,623) | (3,089) | ||
Leniency agreement | (341,605) | (330,006) | (1,343,803) | ||
Sundry provisions | (226,519) | (116,458) | 194,596 | ||
Other payables | 348,916 | 415,468 | (70,546) | ||
Cash generated (used) from operations | 3,220,150 | 9,815,277 | 3,924,556 | ||
Interest paid | (1,576,526) | (1,328,420) | (1,648,971) | ||
Income tax and social contribution paid | (403,614) | (937,557) | (919,236) | ||
Net cash generated (used) by operating activities | 1,240,010 | 7,549,300 | 1,356,349 | ||
Proceeds from the sale of fixed assets and intangible assets | 12,590 | 95,133 | 39,660 | ||
Proceeds from the sale of investments | 81,000 | 450,000 | |||
Funds received in the investments' capital reduction | 2,254 | ||||
Dividends received | 3,513 | 41,791 | |||
Additions to investments in subsidiaries | (608,181) | ||||
Acquisitions to property, plant and equipment and intangible assets | (2,578,558) | (2,635,906) | (2,185,567) | ||
Other investments | (2,167) | (14,683) | |||
Net cash used in investing activities | (2,562,455) | (2,417,895) | (2,318,771) | ||
Short-term and Long-term debt | |||||
Acquired | 20,586,103 | 4,301,626 | 8,492,341 | ||
Payments | (17,425,409) | (6,592,197) | (8,779,091) | ||
Derivative transactions | |||||
Payments | (810,279) | ||||
Related parties | |||||
Acquired loans (payment of loans) | 72,880 | 20,637 | |||
Lease | (407,320) | ||||
Dividends paid | (668,904) | (1,499,900) | (998,893) | ||
Other financial liabilities | 499,999 | ||||
Cash generated (used) in financing activities | 2,584,469 | (3,717,591) | (2,075,285) | ||
Exchange variation on cash of foreign subsidiaries | (59,659) | (309,941) | 17,849 | ||
Increase (decrease) in cash and cash equivalents | 1,202,365 | 1,103,873 | (3,019,858) | ||
Cash and cash equivalents at the beginning of the year | 4,584,280 | 3,480,407 | 6,500,265 | ||
Cash and cash equivalents at the end of the year | 5,786,645 | 4,584,280 | 3,480,407 | ||
Increase in cash and cash equivalents | 1,202,365 | 1,103,873 | (3,019,858) | ||
Braskem Idesa Consolidated [Member] | |||||
Disclosure of subsidiaries [line items] | |||||
Profit (loss) before income tax and social contribution | (559,877) | 162,500 | 453,141 | ||
Adjustments for reconciliation of profit | |||||
Depreciation, amortization and depletion | 952,916 | 810,581 | 742,033 | ||
Interest and monetary and exchange variations, net | 1,062,843 | 1,344,888 | 802,825 | ||
Loss (reversals) for impairment of trade accounts receivable | 379 | 3,200 | 425 | ||
Adjustments for reconciliation of profit | 1,456,261 | 2,321,169 | 1,998,424 | ||
Changes in operating working capital | |||||
Trade accounts receivable | 325,820 | (7,348) | (373,066) | ||
Inventories | 42,581 | (199,672) | 36,668 | ||
Taxes recoverable | (20,798) | (46,395) | 53,370 | ||
Prepaid expenses | 117,183 | (38,112) | (8,789) | ||
Other receivables | (30,938) | (236,392) | (8,698) | ||
Trade payables | (156,138) | 209,077 | (119,033) | ||
Taxes payable | (84,484) | (149,026) | (82,817) | ||
Advances from customers | 21,776 | 18,665 | (10,423) | ||
Sundry provisions | 10,971 | ||||
Other payables | 13,287 | 417,759 | 126,087 | ||
Cash generated (used) from operations | 1,695,521 | 2,289,725 | 1,611,723 | ||
Interest paid | (661,919) | (588,381) | (505,082) | ||
Income tax and social contribution paid | (8,337) | (274) | 1,370 | ||
Net cash generated (used) by operating activities | 1,025,265 | 1,701,070 | 1,105,271 | ||
Acquisitions to property, plant and equipment and intangible assets | (103,964) | (70,422) | (87,630) | ||
Net cash used in investing activities | (103,964) | (70,422) | (87,630) | ||
Braskem Idesa borrowings | |||||
Acquired | 3,497,622 | 187,959 | |||
Payments | (4,398,453) | (812,929) | (1,080,502) | ||
Related parties | |||||
Acquired loans (payment of loans) | (72,880) | (20,637) | |||
Lease | (46,870) | ||||
Cash generated (used) in financing activities | (947,701) | (885,809) | (913,180) | ||
Exchange variation on cash of foreign subsidiaries | 80,278 | (76,168) | (11,374) | ||
Increase (decrease) in cash and cash equivalents | 53,878 | 668,671 | 93,087 | ||
Cash and cash equivalents at the beginning of the year | 963,357 | [1] | 294,686 | 201,599 | |
Cash and cash equivalents at the end of the year | 1,017,235 | [1] | 963,357 | [1] | 294,686 |
Increase in cash and cash equivalents | 53,878 | 668,671 | 93,087 | ||
Eliminations [Member] | |||||
Disclosure of subsidiaries [line items] | |||||
Profit (loss) before income tax and social contribution | 358,197 | (39,441) | (102,493) | ||
Adjustments for reconciliation of profit | |||||
Depreciation, amortization and depletion | (52,832) | (48,982) | (43,644) | ||
Results from equity investments | (336,645) | 77,709 | 151,993 | ||
Interest and monetary and exchange variations, net | 31,280 | 10,714 | (5,856) | ||
Changes in operating working capital | |||||
Trade accounts receivable | (107,950) | (20,917) | 79,148 | ||
Trade payables | R$ 107950 | R$ 20917 | R$ 79148 | ||
[1] | Consolidation of Braskem Idesa with its direct subsidiary Braskem Idesa Servicos. |
11 Investments (Details Narrati
11 Investments (Details Narrative) - Braskem Idsea [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |
Loan payable, maturity | December 2029 |
Proportion of ownership interest | 7.00% |
12 Property, plant and equipm_3
12 Property, plant and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Cost | R$ 51930308 | |||||||||||
Accumulated depreciation, amortization and depletion | (22,168,698) | |||||||||||
Beginning balance | R$ 31759890 | 29,761,610 | R$ 29761610 | |||||||||
Acquisitions | 2,724,264 | 2,654,349 | ||||||||||
Capitalized financial charges | 178,055 | |||||||||||
Foreign currency translation adjustment | 1,085,263 | 2,227,796 | ||||||||||
Cost | 1,354,929 | 2,624,428 | ||||||||||
Depreciation, amortization and depletion | (269,666) | (396,632) | ||||||||||
Transfers to inventory | (50,562) | |||||||||||
Transfers to intangible | (6,433) | (4,461) | ||||||||||
Cost | (6,433) | |||||||||||
Disposals | (235,546) | (48,060) | ||||||||||
Cost | (432,214) | (191,893) | ||||||||||
Depreciation, amortization and depletion | 196,668 | (143,833) | ||||||||||
Depreciation, amortization and depletion | (3,061,901) | (3,009,399) | ||||||||||
Transfers to right of use of assets | (97,995) | |||||||||||
Cost | (125,497) | |||||||||||
Amortization | 27,502 | |||||||||||
Ending balance | 32,315,181 | 31,759,890 | 29,761,610 | |||||||||
Property, plant and equipment, cost | R$ 60853474 | R$ 57190786 | ||||||||||
Accumulated depreciation, amortization and depletion | (28,538,293) | (25,430,896) | ||||||||||
Property, plant and equipment | 31,759,890 | 29,761,610 | 29,761,610 | 32,315,181 | 31,759,890 | R$ 29761610 | ||||||
Previously Disclosed [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 50,799,704 | |||||||||||
Accumulated depreciation, amortization and depletion | (21,038,094) | |||||||||||
Reclassification [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 1,130,604 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,130,604) | |||||||||||
Reclassified [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 51,930,308 | |||||||||||
Accumulated depreciation, amortization and depletion | (22,168,698) | |||||||||||
Land [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Cost | 569,548 | |||||||||||
Beginning balance | 602,299 | 569,548 | 500,646 | |||||||||
Acquisitions | ||||||||||||
Foreign currency translation adjustment | 11,508 | 32,751 | ||||||||||
Cost | 11,508 | 32,751 | ||||||||||
Ending balance | 613,807 | 602,299 | 569,548 | |||||||||
Property, plant and equipment, cost | 613,807 | 602,299 | ||||||||||
Property, plant and equipment | 613,807 | 569,548 | 500,646 | 613,807 | 602,299 | 569,548 | ||||||
Land [Member] | Previously Disclosed [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 500,646 | |||||||||||
Land [Member] | Reclassification [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 68,902 | |||||||||||
Land [Member] | Reclassified [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 569,548 | |||||||||||
Buildings And Improvements [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Cost | 5,987,963 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,576,006) | |||||||||||
Beginning balance | 4,649,990 | 4,411,957 | 4,570,497 | |||||||||
Acquisitions | 1,280 | 372 | ||||||||||
Foreign currency translation adjustment | 289,118 | 593,228 | ||||||||||
Cost | 366,939 | 674,720 | ||||||||||
Depreciation, amortization and depletion | (77,821) | (81,492) | ||||||||||
Transfers by concluded projects | 21,382 | 16,477 | ||||||||||
Disposals | (634) | (2,009) | ||||||||||
Cost | (1,178) | (2,983) | ||||||||||
Depreciation, amortization and depletion | (544) | (974) | ||||||||||
Depreciation, amortization and depletion | (388,869) | (370,035) | ||||||||||
Ending balance | 4,572,267 | 4,649,990 | 4,411,957 | |||||||||
Property, plant and equipment, cost | 7,064,972 | 6,676,549 | ||||||||||
Accumulated depreciation, amortization and depletion | (2,492,705) | (2,026,559) | ||||||||||
Property, plant and equipment | 4,572,267 | 4,411,957 | 4,570,497 | 4,572,267 | 4,649,990 | 4,411,957 | ||||||
Buildings And Improvements [Member] | Previously Disclosed [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 6,058,259 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,487,762) | |||||||||||
Buildings And Improvements [Member] | Reclassification [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | (70,296) | |||||||||||
Accumulated depreciation, amortization and depletion | (88,244) | |||||||||||
Buildings And Improvements [Member] | Reclassified [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 5,987,963 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,576,006) | |||||||||||
Machinery, Equipment and Facilities [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Cost | 40,249,084 | |||||||||||
Accumulated depreciation, amortization and depletion | (19,592,460) | |||||||||||
Beginning balance | 20,786,208 | 20,656,624 | 20,583,099 | |||||||||
Acquisitions | 61,213 | 201,492 | ||||||||||
Foreign currency translation adjustment | 675,400 | 1,433,855 | ||||||||||
Cost | 860,672 | 1,727,164 | ||||||||||
Depreciation, amortization and depletion | (185,272) | (293,309) | ||||||||||
Transfers by concluded projects | 884,606 | 1,022,560 | ||||||||||
Disposals | (223,514) | (40,503) | ||||||||||
Cost | (392,033) | (175,562) | ||||||||||
Depreciation, amortization and depletion | (168,519) | (135,059) | ||||||||||
Depreciation, amortization and depletion | (2,534,637) | (2,487,820) | ||||||||||
Ending balance | 19,649,276 | 20,786,208 | 20,656,624 | |||||||||
Property, plant and equipment, cost | 44,439,196 | 43,024,738 | ||||||||||
Accumulated depreciation, amortization and depletion | (24,789,920) | (22,238,530) | ||||||||||
Property, plant and equipment | 19,649,276 | 20,656,624 | 20,583,099 | 19,649,276 | 20,786,208 | 20,656,624 | ||||||
Machinery, Equipment and Facilities [Member] | Previously Disclosed [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 39,211,042 | |||||||||||
Accumulated depreciation, amortization and depletion | (18,627,943) | |||||||||||
Machinery, Equipment and Facilities [Member] | Reclassification [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 1,038,042 | |||||||||||
Accumulated depreciation, amortization and depletion | (964,517) | |||||||||||
Machinery, Equipment and Facilities [Member] | Reclassified [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 40,249,084 | |||||||||||
Accumulated depreciation, amortization and depletion | (19,592,460) | |||||||||||
Projects and Stoppage in Progress [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Cost | [1] | 3,461,271 | ||||||||||
Beginning balance | 5,102,393 | [1] | 3,461,271 | [1] | 3,274,665 | |||||||
Acquisitions | 2,658,070 | [1] | 2,439,286 | [1] | ||||||||
Capitalized financial charges | [1] | 198,201 | 178,055 | |||||||||
Foreign currency translation adjustment | [1] | 105,701 | 137,551 | |||||||||
Cost | [1] | 105,701 | 137,551 | |||||||||
Transfers by concluded projects | [1] | (993,024) | (1,106,975) | |||||||||
Transfers to inventory | [1] | (47,696) | ||||||||||
Transfers to intangible | [1] | (6,433) | (2,922) | |||||||||
Cost | [1] | (6,433) | ||||||||||
Disposals | [1] | (7,739) | (3,873) | |||||||||
Cost | [1] | (7,739) | (3,873) | |||||||||
Ending balance | [1] | 7,009,473 | 5,102,393 | 3,461,271 | ||||||||
Property, plant and equipment, cost | 7,009,473 | 5,102,393 | [1] | |||||||||
Property, plant and equipment | 7,009,473 | [1] | 3,461,271 | [1] | 3,274,665 | 7,009,473 | [1] | 5,102,393 | [1] | 3,461,271 | [1] | |
Projects and Stoppage in Progress [Member] | Previously Disclosed [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | [1] | 3,274,665 | ||||||||||
Projects and Stoppage in Progress [Member] | Reclassification [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | [1] | 186,606 | ||||||||||
Projects and Stoppage in Progress [Member] | Reclassified [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | [1] | 3,461,271 | ||||||||||
Other [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Cost | 1,662,442 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,000,232) | |||||||||||
Beginning balance | 619,000 | 662,210 | 832,703 | |||||||||
Acquisitions | 3,701 | 13,199 | ||||||||||
Foreign currency translation adjustment | 3,536 | 30,411 | ||||||||||
Cost | 10,109 | 52,242 | ||||||||||
Depreciation, amortization and depletion | (6,573) | (21,831) | ||||||||||
Transfers by concluded projects | 87,036 | 67,938 | ||||||||||
Transfers to inventory | (2,866) | |||||||||||
Transfers to intangible | (1,539) | |||||||||||
Disposals | (3,659) | (1,675) | ||||||||||
Cost | (31,264) | (9,475) | ||||||||||
Depreciation, amortization and depletion | 27,605 | (7,800) | ||||||||||
Depreciation, amortization and depletion | (138,395) | (151,544) | ||||||||||
Transfers to right of use of assets | (97,995) | |||||||||||
Cost | (125,497) | |||||||||||
Amortization | 27,502 | |||||||||||
Ending balance | 470,358 | 619,000 | 662,210 | |||||||||
Property, plant and equipment | 470,358 | 662,210 | R$ 832703 | 470,358 | 619,000 | 662,210 | ||||||
Other [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Ending balance | 470,358 | |||||||||||
Property, plant and equipment, cost | 1,726,026 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,255,668) | |||||||||||
Property, plant and equipment | 470,358 | R$ 470358 | ||||||||||
Other [Member] | Previously Disclosed [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 1,755,092 | |||||||||||
Accumulated depreciation, amortization and depletion | (922,389) | |||||||||||
Other [Member] | Reclassification [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | (92,650) | |||||||||||
Accumulated depreciation, amortization and depletion | (77,843) | |||||||||||
Other [Member] | Reclassified [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Property, plant and equipment, cost | 1,662,442 | |||||||||||
Accumulated depreciation, amortization and depletion | R$ 1000232 | |||||||||||
Other [Member] | ||||||||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||||||||
Beginning balance | 619,000 | |||||||||||
Ending balance | 619,000 | |||||||||||
Property, plant and equipment, cost | 1,784,807 | |||||||||||
Accumulated depreciation, amortization and depletion | (1,165,807) | |||||||||||
Property, plant and equipment | R$ 619000 | R$ 619000 | R$ 619000 | |||||||||
[1] | On December 31, 2019, 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$1,400,667), capitalized financial charges (R$419,244), inventories of spare parts (R$430,418), strategic projects ongoing in Brazil (R$98,879) and in Braskem America (R$2,611,034). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. |
12 Property, plant and equipm_4
12 Property, plant and equipment (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | R$ 32315181 | R$ 31759890 | R$ 29761610 | R$ 29761610 |
BRAZIL | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 15,682,081 | 16,278,608 | ||
MEXICO | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 11,826,309 | 11,656,910 | ||
Germany | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 258,291 | |||
Other [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 2,526 | 10,890 | ||
Germany | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 273,987 | |||
UNITED STATES [Member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | R$ 4545974 | R$ 3539495 |
12 Property, plant and equipm_5
12 Property, plant and equipment (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Description of property, plant and equipment shutdowns duration | The Company makes shutdowns in regular intervals that vary from two to six years to perform these activities. | ||
Capitalized financial charges | R$ 178055 | ||
Depreciation rate, property, plant and equipment | 6.47% | 8.78% | |
Acquisition of property, plant and equipment with payment installments | R$ 103315 | ||
Projects and Stoppage in Progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment preparation phase or ongoing | 1,400,667 | ||
Property, plant and equipment capitalized financial charges | 419,244 | ||
Property, plant and equipment inventories of spare parts | 430,418 | ||
Capitalized financial charges | [1] | 198,201 | R$ 178055 |
Projects and Stoppage in Progress [Member] | Braskem America [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment preparation phase or ongoing | 2,611,034 | ||
Projects and Stoppage in Progress [Member] | BRAZIL [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment preparation phase or ongoing | R$ 98879 | ||
[1] | On December 31, 2019, 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$1,400,667), capitalized financial charges (R$419,244), inventories of spare parts (R$430,418), strategic projects ongoing in Brazil (R$98,879) and in Braskem America (R$2,611,034). The remainder corresponds mainly to various projects for maintaining the production capacity of plants. |
13 Intangible assets (Details)
13 Intangible assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | ||||||
Cost | R$ 5214894 | |||||
Accumulated amortization | (2,487,397) | |||||
Beginning balance | R$ 2740982 | 2,727,497 | R$ 2727497 | |||
Acquisitions | 61,526 | 51,979 | ||||
Foreign currency translation adjustment | 15,661 | 33,818 | ||||
Cost | 20,275 | 142,425 | ||||
Amortization | (4,614) | (108,607) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 6,433 | 4,461 | ||||
Disposals | (1,003) | |||||
Cost | (4) | (596,557) | ||||
Amortization | 4 | 595,554 | ||||
Amortization | (62,514) | (75,770) | ||||
Ending balance | 2,762,088 | 2,740,982 | 2,727,497 | |||
Intangible assets, cost | R$ 4905432 | R$ 4817202 | ||||
Accumulated amortization | (2,143,344) | (2,076,220) | ||||
Intangible assets | 2,740,982 | 2,727,497 | 2,727,497 | 2,762,088 | 2,740,982 | R$ 2727497 |
Previously Disclosed [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 4,916,819 | |||||
Accumulated amortization | (2,189,322) | |||||
Reclassification [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 298,075 | |||||
Accumulated amortization | (298,075) | |||||
Reclassified [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 5,214,894 | |||||
Accumulated amortization | (2,487,397) | |||||
Goodwill [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Cost | 3,187,678 | |||||
Accumulated amortization | (1,128,804) | |||||
Beginning balance | 2,058,874 | 2,058,874 | 2,058,874 | |||
Acquisitions | ||||||
Ending balance | 2,058,874 | 2,058,874 | 2,058,874 | |||
Intangible assets, cost | 3,187,678 | 3,187,678 | ||||
Accumulated amortization | (1,128,804) | (1,128,804) | ||||
Intangible assets | 2,058,874 | 2,058,874 | 2,058,874 | 2,058,874 | 2,058,874 | 2,058,874 |
Goodwill [Member] | Previously Disclosed [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 3,187,722 | |||||
Accumulated amortization | (1,128,848) | |||||
Goodwill [Member] | Reclassification [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | (44) | |||||
Accumulated amortization | 44 | |||||
Goodwill [Member] | Reclassified [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 3,187,678 | |||||
Accumulated amortization | (1,128,804) | |||||
Brands and Patents [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Cost | 407,831 | |||||
Accumulated amortization | (180,481) | |||||
Beginning balance | 246,297 | 227,350 | 230,087 | |||
Acquisitions | 112 | |||||
Foreign currency translation adjustment | 12,957 | 23,966 | ||||
Cost | 13,919 | 27,021 | ||||
Amortization | (962) | (3,055) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 2,532 | |||||
Amortization | (7,751) | (7,551) | ||||
Ending balance | 251,615 | 246,297 | 227,350 | |||
Intangible assets, cost | 451,415 | 437,384 | ||||
Accumulated amortization | (199,800) | (191,087) | ||||
Intangible assets | R$ 251615 | 227,350 | 230,087 | 251,615 | 246,297 | 227,350 |
Average annual rates of amortization | 4.96% | |||||
Brands and Patents [Member] | Previously Disclosed [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 349,316 | |||||
Accumulated amortization | (119,229) | |||||
Brands and Patents [Member] | Reclassification [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 58,515 | |||||
Accumulated amortization | (61,252) | |||||
Brands and Patents [Member] | Reclassified [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 407,831 | |||||
Accumulated amortization | (180,481) | |||||
Software Licenses [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Cost | 725,271 | |||||
Accumulated amortization | (524,032) | |||||
Beginning balance | R$ 234132 | 201,239 | 192,140 | |||
Acquisitions | 61,414 | 51,707 | ||||
Foreign currency translation adjustment | 2,704 | 10,037 | ||||
Cost | 6,356 | 21,053 | ||||
Amortization | (3,652) | (11,016) | ||||
Transfers from property, plant and equipment projects and stoppage in progress | 6,433 | 1,929 | ||||
Cost | (4) | |||||
Amortization | 4 | |||||
Amortization | (32,747) | (30,780) | ||||
Ending balance | 271,936 | 234,132 | 201,239 | |||
Intangible assets, cost | 874,159 | 799,960 | ||||
Accumulated amortization | (602,223) | (565,828) | ||||
Intangible assets | R$ 271936 | 201,239 | 192,140 | 271,936 | 234,132 | 201,239 |
Average annual rates of amortization | 12.40% | |||||
Software Licenses [Member] | Previously Disclosed [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 607,528 | |||||
Accumulated amortization | (415,388) | |||||
Software Licenses [Member] | Reclassification [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 117,743 | |||||
Accumulated amortization | (108,644) | |||||
Software Licenses [Member] | Reclassified [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 725,271 | |||||
Accumulated amortization | (524,032) | |||||
Customers and Suppliers Agreements [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Cost | 894,114 | |||||
Accumulated amortization | (654,080) | |||||
Beginning balance | R$ 201679 | 240,034 | 246,396 | |||
Acquisitions | 272 | |||||
Foreign currency translation adjustment | (185) | |||||
Cost | 94,351 | |||||
Amortization | (94,536) | |||||
Disposals | (1,003) | |||||
Cost | (596,557) | |||||
Amortization | 595,554 | |||||
Amortization | (22,016) | (37,439) | ||||
Ending balance | 179,663 | 201,679 | 240,034 | |||
Intangible assets, cost | 392,180 | 392,180 | ||||
Accumulated amortization | (212,517) | (190,501) | ||||
Intangible assets | R$ 179663 | R$ 240034 | R$ 246396 | R$ 179663 | R$ 201679 | 240,034 |
Average annual rates of amortization | 6.00% | |||||
Customers and Suppliers Agreements [Member] | Previously Disclosed [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 772,253 | |||||
Accumulated amortization | (525,857) | |||||
Customers and Suppliers Agreements [Member] | Reclassification [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 121,861 | |||||
Accumulated amortization | (128,223) | |||||
Customers and Suppliers Agreements [Member] | Reclassified [Member] | ||||||
Disclosure of detailed information about intangible assets [line items] | ||||||
Intangible assets, cost | 894,114 | |||||
Accumulated amortization | R$ 654080 |
13 Intangible assets (Details 1
13 Intangible assets (Details 1) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Southern Petrochemical Complex [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Allocated goodwill | R$ 1390741 |
Northeastern Petrochemical Complex [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Allocated goodwill | 475,780 |
Vinyls Unity [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Allocated goodwill | R$ 192353 |
13 Intangible assets (Details 2
13 Intangible assets (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | R$ 2762088 | R$ 2740982 | R$ 2727497 | R$ 2727497 |
BRAZIL | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | 2,521,941 | 2,510,503 | ||
MEXICO | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | 193,741 | 178,261 | ||
Germany | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | 22,077 | |||
Other [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | 16 | 54 | ||
Germany | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | 25,373 | |||
UNITED STATES [Member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | R$ 24313 | R$ 26791 |
13 Intangible assets (Details N
13 Intangible assets (Details Narrative) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |
Inflation rate for perpetuity | 3.50% |
Description of intangible assets with indefinite useful life | These tests are based on the projected cash flow in each CGU or groups of CGUs, which are extracted from the business plan of the Company for a five-year period, mentioned in Note 3.2.1, and the Management plan for a period greater than 5 years to reflect industry cycle patterns, in a total projection period of 10 years. Perpetuity is also calculated based on the long-term vision and excluding real growth. |
Trademarks And Patents [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Description of intangible assets sensitivity analysis | A sensitivity analysis based on changes in these variables considering +0.5% on discount rate and -0.5% on perpetuity. |
Description of intangible assets with indefinite useful life | Between 10 and 20 years. |
Contractual Customer And Supplier Relationships [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Description of intangible assets with indefinite useful life | Between 14 and 28 years. |
Software [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Description of intangible assets with indefinite useful life | Between 5 and 10 years. |
Weighted Average Cost Of Capital [Member] | |
Disclosure of detailed information about intangible assets [line items] | |
Discount rate applied to cash flow projections | 10.69% |
14 Right-of-use assets and Le_3
14 Right-of-use assets and Lease Liability (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Right-of-use assets, beginning balance | |
Transfer of fixed assets | 97,995 |
Initial Adoption | 2,314,240 |
Addition | 759,790 |
Depreciation | (500,819) |
Disposal | (122,488) |
Foreign currency translation adjustment | 56,936 |
Right-of-use assets, ending balance | 2,605,654 |
Buildings and Constructions [Member] | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Initial Adoption | 207,524 |
Addition | 153,771 |
Depreciation | (27,759) |
Disposal | (122,488) |
Foreign currency translation adjustment | 1,122 |
Right-of-use assets, ending balance | 212,170 |
Computer Equipment and Goods [Member] | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Transfer of fixed assets | 2,726 |
Initial Adoption | 4,932 |
Addition | 6,179 |
Depreciation | (1,446) |
Foreign currency translation adjustment | 132 |
Right-of-use assets, ending balance | 12,523 |
Machinery and Equipment [Member] | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Transfer of fixed assets | 7,956 |
Initial Adoption | 526,318 |
Addition | 344,928 |
Depreciation | (136,615) |
Foreign currency translation adjustment | 661 |
Right-of-use assets, ending balance | 743,248 |
Ships [Member] | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Initial Adoption | 906,495 |
Addition | 150,670 |
Depreciation | (191,778) |
Right-of-use assets, ending balance | 865,387 |
Rail Cars [Member] | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Transfer of fixed assets | 87,313 |
Initial Adoption | 633,492 |
Addition | 103,169 |
Depreciation | (132,728) |
Foreign currency translation adjustment | 54,794 |
Right-of-use assets, ending balance | 746,040 |
Vehicles [Member] | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | |
Initial Adoption | 35,479 |
Addition | 1,073 |
Depreciation | (10,493) |
Foreign currency translation adjustment | 227 |
Right-of-use assets, ending balance | R$ 26286 |
14 Right-of-use assets and Le_4
14 Right-of-use assets and Lease Liability (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Right-of-use Assets And Lease Liability | |||
Balance at beginning, lease liability | R$ 100557 | ||
Initial adoption IFRS 16 | 2,191,908 | ||
Balance of Initial adoption IFRS 16 | 2,292,465 | ||
Acquired | 911,619 | ||
Disposals | (122,488) | ||
Interests and monetary and exchange variations, net | 121,061 | ||
Currancy translation adjustments | 56,805 | ||
Payments | (454,190) | ||
Interest paid | (128,376) | ||
Balance at ending, lease liability | 2,676,896 | ||
Current liability | R$ 676291 | R$ 9767 | |
Non-current liability | 2,000,605 | 90,790 | |
Total | R$ 100557 | R$ 2676896 | R$ 100557 |
14 Right-of-use assets and Le_5
14 Right-of-use assets and Lease Liability (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | R$ 2000605 | R$ 90790 |
2021 [Member] | ||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | 484,956 | |
2022 [Member] | ||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | 421,163 | |
2023 [Member] | ||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | 316,218 | |
2024 [Member] | ||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | 293,363 | |
2025 [Member] | ||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | 177,118 | |
2026 Thereafter [Member] | ||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||
Total | R$ 307787 |
14 Right-of-use assets and Le_6
14 Right-of-use assets and Lease Liability (Details Narrative) R$ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) | |
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||||
Short-term leases expense | R$ 103929 | |||
Low-value leases expense | 1,070 | |||
Contractual payments | 50,622 | R$ 48664 | ||
Non-cash investing and financing activity | R$ 580055 | |||
US$ | ||||
DisclosureOfRightOfUseAssetsAndLeaseLiabilityLineItems [Line Items] | ||||
Contractual payments | $ | $ 12,559 | $ 12,559 |
15 Trade account payables (Deta
15 Trade account payables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | R$ 9120826 | R$ 8378504 | |
Trade account payables, current | 9,116,989 | 8,341,252 | |
Trade account payables, noncurrent | 3,837 | 37,252 | |
Domestic Market [Member] | |||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | 1,081,076 | 1,374,379 | |
Domestic Market Related Parties [Member] | |||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | 155,980 | 177,175 | |
Foreign Market [Member] | |||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | [1] | 7,964,536 | 6,934,598 |
Present Value Adjustment - Foreign Market [Member] | |||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | [2] | (80,766) | (107,648) |
Domestic Market [Member] | |||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | 1,237,056 | 1,551,554 | |
Foreign Market [Member] | |||
DisclosureOfTradeAccountPayablesLineItems [Line Items] | |||
Trade account payables | R$ 9120826 | R$ 8378504 | |
[1] | Considers R$6.5 billion (R$5.6 billion in 2018) in raw material purchases due in up to 360 days for which the Company provides letters of credit issued by financial institutions that indicate the suppliers as beneficiaries. | ||
[2] | The rate for calculating the Present Value Adjustment applied to the external market payments with terms equal to or longer than 90 day is calculated based on the average rate for lengthening the term of trade payables. |
15 Trade account payables (De_2
15 Trade account payables (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other payables [abstract] | ||
Amount of raw material purchases | R$ 6500 | R$ 5600 |
16 Borrowings (Details)
16 Borrowings (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 29016976 | R$ 24898156 |
Borrowings, current | 774,924 | 737,436 |
Borrowings, noncurrent | 28,242,052 | 24,160,720 |
RPR [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 751,376 | 620,160 |
Other - SACE [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,952,667 | 1,147,397 |
Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 27,651,467 | 24,161,801 |
Borrowings, current | 676,831 | 610,922 |
Borrowings, noncurrent | 26,974,636 | 23,550,879 |
Foreign Currency [Member] | Bond [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 24,583,325 | 21,930,575 |
Foreign Currency [Member] | Export Prepayment [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 863,293 | 810,542 |
Foreign Currency [Member] | Working Capital [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 48 | |
Foreign Currency [Member] | RPR [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 751,376 | 620,160 |
Foreign Currency [Member] | Other - SACE [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,073,526 | 1,147,397 |
Foreign Currency [Member] | Transactions Costs [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | (499,194) | (346,921) |
Local Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,365,509 | 736,355 |
Borrowings, current | 98,093 | 126,514 |
Borrowings, noncurrent | 1,267,416 | 609,841 |
Local Currency [Member] | Transactions Costs [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | (2,029) | (33) |
Local Currency [Member] | Export Credit Notes [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 405,642 | 406,258 |
Local Currency [Member] | BNDES [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 19,998 | 52,081 |
Local Currency [Member] | BNB/FINEP/FUNDES/FINISA/FINAME [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 78,776 | 239,969 |
Local Currency [Member] | FINAME [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 324 | 555 |
Local Currency [Member] | BNB FNE [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,582 | |
Local Currency [Member] | Fundo de Desenvolvimento do Nordeste (FDNE) [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 32,152 | 37,099 |
Local Currency [Member] | Other [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 237 | R$ 426 |
Local Currency [Member] | BNDES [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 554,307 | |
Local Currency [Member] | BNDES [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 270,520 | |
Local Currency [Member] | Commercial Notes [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 554307 |
16 Borrowings (Details 1)
16 Borrowings (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 02, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | R$ 435000 | ||
Interest (% per year) | 8.24% | 7.45% | |
Borrowings | R$ 29016976 | R$ 24898156 | |
Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | November 2019 | ||
Issue amount | R$ 1500000 | ||
Maturity | January 2030 | ||
Interest (% per year) | 4.50% | ||
Borrowings | R$ 6090640 | ||
Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | November 2019 | ||
Issue amount | R$ 750000 | ||
Maturity | January 2050 | ||
Interest (% per year) | 5.88% | ||
Borrowings | R$ 3052132 | ||
Bond [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | R$ 900000 | ||
Maturity | November 2029 | ||
Foreign Currency [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | R$ 27651467 | 24,161,801 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2010 | ||
Issue amount | R$ 350000 | ||
Maturity | May 2020 | ||
Interest (% per year) | 7.00% | ||
Borrowings | 1,370,156 | ||
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2010 | ||
Issue amount | R$ 400000 | ||
Maturity | May 2020 | ||
Interest (% per year) | 7.00% | ||
Borrowings | 81,434 | ||
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | October 2010 | ||
Issue amount | R$ 450000 | ||
Maturity | no maturity date | ||
Interest (% per year) | 7.38% | ||
Borrowings | R$ 1025428 | 985,767 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | April 2011 | ||
Issue amount | R$ 750000 | ||
Maturity | April 2021 | ||
Interest (% per year) | 5.75% | ||
Borrowings | 2,676,195 | ||
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | July 2011 | ||
Issue amount | R$ 500000 | ||
Maturity | July 2041 | ||
Interest (% per year) | 7.13% | ||
Borrowings | R$ 2078372 | 1,997,984 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | February 2012 | ||
Issue amount | R$ 250000 | ||
Maturity | April 2021 | ||
Interest (% per year) | 5.75% | ||
Borrowings | 980,304 | ||
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | February 2012 | ||
Issue amount | R$ 250000 | ||
Maturity | no maturity date | ||
Interest (% per year) | 7.38% | ||
Borrowings | R$ 1025428 | 985,767 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2012 | ||
Issue amount | R$ 500000 | ||
Maturity | May 2022 | ||
Interest (% per year) | 5.38% | ||
Borrowings | R$ 1175799 | 1,954,177 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | July 2012 | ||
Issue amount | R$ 250000 | ||
Maturity | July 2041 | ||
Interest (% per year) | 7.13% | ||
Borrowings | R$ 1039186 | 998,992 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | February 2014 | ||
Issue amount | R$ 500000 | ||
Maturity | February 2024 | ||
Interest (% per year) | 6.45% | ||
Borrowings | R$ 2068790 | 1,988,773 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | May 2014 | ||
Issue amount | R$ 250000 | ||
Maturity | February 2024 | ||
Interest (% per year) | 6.45% | ||
Borrowings | R$ 1034395 | 994,387 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | October 2017 | ||
Issue amount | R$ 500000 | ||
Maturity | January 2023 | ||
Interest (% per year) | 3.50% | ||
Borrowings | R$ 847715 | 1,969,609 | |
Foreign Currency [Member] | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue date | October 2017 | ||
Issue amount | R$ 1250000 | ||
Maturity | January 2028 | ||
Interest (% per year) | 4.50% | ||
Borrowings | R$ 5145440 | 4,947,030 | |
Foreign Currency [Member] | Bond [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue amount | 8,450,000 | ||
Borrowings | R$ 24583325 | R$ 21930575 |
16 Borrowings (Details 2)
16 Borrowings (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Initial amount of the transaction | R$ 435000 | |
Borrowings | 29,016,976 | R$ 24898156 |
Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 27,651,467 | 24,161,801 |
Export Prepayment [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Initial amount of the transaction | 135,000 | |
Borrowings | R$ 457712 | 499,460 |
Export Prepayment [Member] | Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | January 2013 | |
Maturity | November 2022 | |
Charges (% per year) | US dollar exchange variation + semiannual Libor + 1.10 | |
Export Prepayment [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Initial amount of the transaction | R$ 100000 | |
Borrowings | R$ 405581 | |
Export Prepayment [Member] | Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | September 2017 | |
Maturity | March 2027 | |
Charges (% per year) | US dollar exchange variation + semiannual Libor + 1.61 | |
Export Prepayment [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | October 2019 | |
Maturity | October 2024 | |
Charges (% per year) | US dollar exchange variation + semiannual Libor + 1.75 | |
Export Prepayment [Member] | Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Initial amount of the transaction | R$ 200000 | |
Borrowings | R$ 863293 | R$ 810542 |
16 Borrowings (Details 3)
16 Borrowings (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Initial amount of the transaction | R$ 435000 | |
Borrowings | 29,016,976 | R$ 24898156 |
Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 27,651,467 | 24,161,801 |
RPR [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 751376 | 620,160 |
RPR [Member] | Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | July 2018 | |
Initial amount of the transaction | R$ 179398 | |
Maturity | December 2028 | |
Charges (% per year) | Us dollar exchange variation + semianual Libor + 0.65 | |
Borrowings | R$ 751376 | R$ 620160 |
16 Borrowings (Details 4)
16 Borrowings (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Initial amount of the transaction | R$ 435000 | |
Borrowings | 29,016,976 | R$ 24898156 |
Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 27,651,467 | 24,161,801 |
Other - SACE [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | R$ 1952667 | 1,147,397 |
Other - SACE [Member] | Foreign Currency [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | November 2018 | |
Initial amount of the transaction | R$ 295125 | |
Maturity | November 2028 | |
Charges (% per year) | Us dollar exchange variation + semianual Libor + 0.90 | |
Borrowings | R$ 1073526 | R$ 1147397 |
Other - SACE [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | December 2019 | |
Initial amount of the transaction | R$ 150000 | |
Maturity | December 2029 | |
Charges (% per year) | Us dollar exchange variation + semianual Libor + 0.90 | |
Borrowings | R$ 605448 | |
Other - SACE [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Issue date | April 2019 | |
Initial amount of the transaction | R$ 72345 | |
Maturity | April 2026 | |
Charges (% per year) | Us dollar exchange variation + semianual Libor + 1.00 | |
Borrowings | R$ 273693 |
16 Borrowings (Details 5)
16 Borrowings (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | R$ 28242052 | R$ 24160720 |
2020 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 1,748,531 | |
2021 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 380,324 | 3,933,857 |
2022 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 1,549,976 | 2,256,444 |
2023 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 1,416,730 | 2,355,549 |
2024 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 4,418,409 | 3,336,032 |
2025 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 369,725 | 234,270 |
2026 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 350,320 | 234,296 |
2027 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 297,382 | 205,157 |
2028 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 5,314,976 | 5,028,265 |
2029 [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | 71,326 | |
2030 and Thereafter [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, noncurrent | R$ 14072884 | R$ 4828319 |
16 Borrowings (Details 6)
16 Borrowings (Details 6) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | R$ 104917 |
Total guaranteed | R$ 104917 |
BNB [member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | March 2023 |
Guarantees | Bank surety |
BNDES [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | January 2021 |
Guarantees | Mortgage of plants, land and property, pledge of machinery and equipment |
FUNDES [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | June 2020 |
Total debt | R$ 15976 |
Total guaranteed | R$ 15976 |
Guarantees | Mortgage of plants, land and property, pledge of machinery and equipment |
FINEP [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | July 2024 |
Total debt | R$ 33783 |
Total guaranteed | R$ 33783 |
Guarantees | Bank surety |
FINAME [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | April 2021 |
Total debt | R$ 324 |
Total guaranteed | R$ 324 |
Guarantees | Pledge of equipment |
FINISA [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | December 2023 |
Total debt | R$ 4475 |
Total guaranteed | R$ 4475 |
Guarantees | Bank surety |
BNB FNE [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | December 2027 |
Guarantees | Bank surety and pledge of reserve liquidity fund. |
Other [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity | July 2021 |
Guarantees | Pledge of equipment |
BNB [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | R$ 24542 |
Total guaranteed | 24,542 |
BNDES [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | 19,998 |
Total guaranteed | 19,998 |
BNB-FNE [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | 5,582 |
Total guaranteed | 5,582 |
Other [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Total debt | 237 |
Total guaranteed | R$ 237 |
16 Borrowings (Details Narrativ
16 Borrowings (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||||||
Contracted amount | R$ 435000 | ||||||
Description of collateral | Braskem S.A. has fully and unconditionally guaranteed the debt securities issued by Braskem Finance, Braskem America Finance and Braskem Netherlands Finance B.V. 100-percent-owned subsidiaries of Braskem. | ||||||
UNITED STATES [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Contracted amount | R$ 2780 | R$ 4549 | R$ 6231 | R$ 7688 | R$ 13823 | R$ 13677 | R$ 130650 |
UNITED STATES [Member] | Braskem America [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Contracted amount | R$ 900000 | ||||||
Description of collateral | 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 La Porte, Texas. | ||||||
US$ | UNITED STATES [Member] | Braskem America [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Contracted amount | R$ 225000 | ||||||
Bonds Issue May 2012 [Member] | US$ | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Bonds partially prepaid | 210,735 | ||||||
Bonds Issue October-2017 [Member] | US$ | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Bonds partially prepaid | R$ 293105 | ||||||
Bonds Issue November-2019 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Effective interest rate including transaction costs | 4.70% | ||||||
Bonds Issue November-2019 [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Effective interest rate including transaction costs | 5.95% |
17 Braskem Idesa Financing (Det
17 Braskem Idesa Financing (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 435000 | |
Braskem Idesa borrowings | 6,685,703 | R$ 10594117 |
Braskem Idesa borrowings, current | 744,408 | 10,504,592 |
Braskem Idesa borrowings, non current | 9,237,318 | 9,554,476 |
Project Finance I [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 700000 | |
Maturity | February 2027 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 3.25 | |
Braskem Idesa borrowings | R$ 2149002 | 2,335,825 |
Project Finance II [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 210000 | |
Maturity | February 2027 | |
Charges (% per year) | US dollar exchange variation + 6.17 | |
Braskem Idesa borrowings | R$ 608260 | 657,689 |
Project Finance III [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 600000 | |
Maturity | February 2029 | |
Charges (% per year) | US dollar exchange variation + 4.33 | |
Braskem Idesa borrowings | R$ 1849896 | 1,983,113 |
Project Finance IV [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 660000 | |
Maturity | February 2029 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 3.88 | |
Braskem Idesa borrowings | R$ 2078545 | 2,225,042 |
Project Finance V [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 400000 | |
Maturity | February 2029 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 4.65 | |
Braskem Idesa borrowings | 1,326,901 | |
Project Finance VI [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 89994 | |
Maturity | February 2029 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 2.73 | |
Braskem Idesa borrowings | 297,158 | |
Project Finance VII [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 533095 | |
Maturity | February 2029 | |
Charges (% per year) | US dollar exchange variation + quarterly Libor + 4.64 | |
Braskem Idesa borrowings | 1,768,389 | |
Bond [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Initial amount of the transaction | R$ 900000 | |
Maturity | November 2029 | |
Charges (% per year) | US dollar exchange variation + 7.45 | |
Braskem Idesa borrowings | R$ 3640381 | |
Transactions Costs [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings | R$ 344358 | R$ 89525 |
17 Braskem Idesa Financing (D_2
17 Braskem Idesa Financing (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | R$ 9237318 | R$ 9554476 |
2020 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 1,016,916 | |
2021 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 800,752 | 1,161,108 |
2022 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 699,090 | 968,519 |
2023 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 892,568 | 1,280,154 |
2024 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 978,479 | 1,385,087 |
2025 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 883,333 | 1,381,192 |
2026 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 743,566 | 1,194,964 |
2027 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 329,718 | 582,393 |
2029 and Thereafter [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | 3,652,695 | 102,105 |
2028 [Member] | ||
DisclosureOfDetailedInformationAboutBraskemIdesaFinancingLineItems [Line Items] | ||
Braskem Idesa borrowings, noncurrent | R$ 257117 | R$ 482038 |
17 Braskem Idesa financing (D_3
17 Braskem Idesa financing (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfBraskemIdesaFinancingLineItems [Line Items] | |||
Value of bonds | R$ 3796000 | ||
Interest rate | 7.45% | 8.24% | |
Rate of issuance | 99.65% | ||
Yield rate | 7.50% | ||
Transaction costs | R$ 299000 | ||
Braskem Idesa Borrowings non current | 9,237,318 | R$ 9554476 | |
US$ | |||
DisclosureOfBraskemIdesaFinancingLineItems [Line Items] | |||
Value of bonds | R$ 900000 | ||
Transaction costs | R$ 71000 |
18 Debentures (Details)
18 Debentures (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures | R$ 274567 | R$ 294509 |
Debentures, current | 46,666 | 27,732 |
Debentures, noncurrent | R$ 227901 | 266,777 |
Debentures [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Issue date | March 2013 | |
Maturity | March 2025 | |
Annual financial charges (%) | IPCA + 6% | |
Debentures | R$ 202992 | 210,506 |
Debentures [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Issue date | September 2013 | |
Maturity | September 2025 | |
Annual financial charges (%) | 126.5% of CDI | |
Debentures | R$ 71575 | R$ 84003 |
18 Debentures (Details 1)
18 Debentures (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | R$ 227901 | R$ 266777 |
2020 [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 44,811 | |
2021 [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 52,078 | 50,722 |
2022 [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 52,100 | 50,745 |
2023 [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 52,125 | 50,769 |
2024 [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | 52,153 | 50,796 |
2025 [Member] | ||
DisclosureOfDetailedInformationAboutDebenturesLineItems [Line Items] | ||
Debentures, noncurrent | R$ 19445 | R$ 18934 |
19 Reconciliation of borrowin_2
19 Reconciliation of borrowing activities in the statement of cash flow (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Borrowings [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | R$ 24898156 |
Acquired | 20,586,103 |
Payments | (17,402,284) |
Cash used in financing activities | 3,183,819 |
Other changes | |
Interest paid | (1,440,754) |
Interest and monetary and exchange variations, net | 2,292,120 |
Currency translation adjustments | 83,635 |
Total other changes | 935,001 |
Ending balance | 29,016,976 |
Debentures [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 294,509 |
Payments | (23,125) |
Cash used in financing activities | (23,125) |
Other changes | |
Interest paid | (22,488) |
Interest and monetary and exchange variations, net | 25,671 |
Total other changes | 3,183 |
Ending balance | 274,567 |
Total Borrowings and Debentures [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 25,192,665 |
Acquired | 20,586,103 |
Payments | (17,425,409) |
Cash used in financing activities | 3,160,694 |
Other changes | |
Interest paid | (1,463,242) |
Interest and monetary and exchange variations, net | 2,317,791 |
Currency translation adjustments | 83,635 |
Total other changes | 938,184 |
Ending balance | 29,291,543 |
Braskem Idesa Financing [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 10,504,592 |
Acquired | 3,497,622 |
Payments | (4,398,453) |
Cash used in financing activities | (900,831) |
Other changes | |
Interest paid | (646,827) |
Interest and monetary and exchange variations, net | 203,450 |
Currency translation adjustments | 821,342 |
Total other changes | 377,965 |
Ending balance | 9,981,726 |
Lease [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 100,557 |
Payments | (454,190) |
Cash used in financing activities | (454,190) |
Other changes | |
Interest paid | (128,376) |
Interest and monetary and exchange variations, net | 121,061 |
Initial adoption on January 1, 2019 | 2,191,908 |
Acquired | 911,619 |
Disposal | (122,488) |
Currency translation adjustments | 56,805 |
Total other changes | 3,030,529 |
Ending balance | 2,676,896 |
Dividends [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Beginning balance | 672,395 |
Payments | (668,904) |
Cash used in financing activities | (668,904) |
Other changes | |
Additional dividends of subsidiary | 5,125 |
Prescribed dividends | (2,009) |
Other | (105) |
Total other changes | 3,011 |
Ending balance | 6,502 |
Other Financial Liabilities [Member] | |
DisclosureOfFinancingActivitiesInStatementOfCashFlowLineItems [Line Items] | |
Acquired | 499,999 |
Cash used in financing activities | 499,999 |
Other changes | |
Interest and monetary and exchange variations, net | 16,934 |
Total other changes | 16,934 |
Ending balance | R$ 516933 |
20 Financial instruments (Detai
20 Financial instruments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loan to Non-controlling Shareholder of Braskem Idesa [Member | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | R$ 2395887 | R$ 2183830 |
Fair value financial liabilities | 2,395,887 | 2,183,830 |
Debentures [Member] | Level 2 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 274,567 | 294,509 |
Fair value financial liabilities | 293,282 | 239,976 |
Braskem Idesa Borrowings [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 10,326,084 | 10,594,117 |
Fair value financial liabilities | 10,009,312 | 9,367,878 |
Braskem Idesa Borrowings [Member] | Project Finance [Member] | Level 2 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 6,685,703 | 10,594,117 |
Fair value financial liabilities | 6,116,434 | 9,367,878 |
Braskem Idesa Borrowings [Member] | Bond [Member] | Level 1 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 3,640,381 | |
Fair value financial liabilities | 3,892,878 | |
Borrowings [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 29,518,199 | 25,245,110 |
Fair value financial liabilities | 30,084,745 | 24,904,035 |
Borrowings [Member] | Local Currency [Member] | Level 2 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 1,367,538 | 736,388 |
Fair value financial liabilities | 1,075,803 | 598,926 |
Borrowings [Member] | Foreign Currency - Other Borrowings [Member] | Level 2 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 3,567,336 | 2,578,147 |
Fair value financial liabilities | 3,218,410 | 2,277,069 |
Borrowings [Member] | Foreign Currency - Bond [Member] | Level 1 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 24,583,325 | 21,930,575 |
Fair value financial liabilities | 25,790,532 | 22,028,040 |
Leniency Agreement [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 1,742,268 | 1,842,518 |
Fair value financial liabilities | 1,742,268 | 1,842,518 |
Trade Payables [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 9,120,826 | 8,378,504 |
Fair value financial liabilities | 9,120,826 | 8,378,504 |
Provision - Geological Event in Alagoas [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 3,383,067 | |
Fair value financial liabilities | 3,383,067 | |
Other Financial Liabilities [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial liabilities | 516,933 | |
Fair value financial liabilities | 516,933 | |
Cash and Cash Equivalents [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 6,803,880 | 5,547,637 |
Fair value financial assets | 6,803,880 | 5,547,637 |
Cash and Cash Equivalents [Member] | Financial Investments In Brazil [Member] | Level 2 [Member] | Fair Value Through Profit or Loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 1,963,185 | 1,754,561 |
Fair value financial assets | 1,963,185 | 1,754,561 |
Cash and Cash Equivalents [Member] | Cash and Banks [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 2,303,231 | 2,228,964 |
Fair value financial assets | 2,303,231 | 2,228,964 |
Cash and Cash Equivalents [Member] | Financial Investments Abroad [Member] | Level 2 [Member] | Fair Value Through Profit or Loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 2,537,464 | 1,564,112 |
Fair value financial assets | 2,537,464 | 1,564,112 |
Financial Investments [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 1,697,212 | 2,367,611 |
Fair value financial assets | 1,697,212 | 2,367,611 |
Financial Investments [Member] | Letras Financeiras do Tesouro - LFT [Member] | Level 2 [Member] | Fair Value Through Profit or Loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 1,588,426 | 2,247,272 |
Fair value financial assets | 1,588,426 | 2,247,272 |
Financial Investments [Member] | Time Deposit Investments [Member] | Level 2 [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 38,759 | 49,630 |
Fair value financial assets | 38,759 | 49,630 |
Financial Investments [Member] | Other [Member] | Level 2 [Member] | Fair Value Through Profit or Loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 70,027 | 70,709 |
Fair value financial assets | 70,027 | 70,709 |
Trade Accounts Receivables [Member] | Amortized Cost [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 2,246,248 | 3,045,463 |
Fair value financial assets | 2,246,248 | 3,045,463 |
Trade Accounts Receivables [Member] | Level 2 [Member] | Fair Value Through Profit or Loss [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Book value financial assets | 60,403 | 47,540 |
Fair value financial assets | R$ 60403 | R$ 47540 |
20 Financial instruments (Det_2
20 Financial instruments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Current assets | R$ 4712 | R$ 27714 |
Non-current assets | (17,877) | (46,664) |
Current liabilities | 49,251 | 70,305 |
Non-current liabilities | 169,513 | 161,694 |
Total | 196,175 | R$ 157621 |
Non-hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 5,748 | |
Change in fair value | 14,656 | |
Financial settlement | 5,496 | |
Ending balance | 25,900 | |
Hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 151,873 | |
Change in fair value | 82,674 | |
Financial settlement | (64,272) | |
Ending balance | 170,275 | |
Accumulated OCI (equity) | (377,941) | |
NCE Swap [Member] | Level 2 [Member] | Non-hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 5,231 | |
Change in fair value | 14,484 | |
Financial settlement | 5,889 | |
Ending balance | 25,604 | |
Dollar Put Option [Member] | Level 2 [Member] | Hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 36,139 | |
Change in fair value | (38,437) | |
Ending balance | (2,298) | |
Accumulated OCI (equity) | 2,297 | |
Dollar Swap [Member] | Level 2 [Member] | Hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 183,398 | |
Change in fair value | (64,133) | |
Financial settlement | (80,645) | |
Ending balance | 38,620 | |
Accumulated OCI (equity) | (38,620) | |
Interest Rate Swaps [Member] | Level 2 [Member] | Hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | (67,664) | |
Change in fair value | 77,998 | |
Financial settlement | 16,373 | |
Ending balance | 26,707 | |
Accumulated OCI (equity) | (234,372) | |
Exchange Swap [Member] | Level 2 [Member] | Non-hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Beginning balance | 517 | |
Change in fair value | 172 | |
Financial settlement | (393) | |
Ending balance | 296 | |
Dollar Swap CDI [Member] | Level 2 [Member] | Hedge Accounting Transactions [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Change in fair value | 107,246 | |
Ending balance | 107,246 | |
Accumulated OCI (equity) | R$ 107246 |
20 Financial instruments (Det_3
20 Financial instruments (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Current assets | R$ 4712 | R$ 27714 |
Non-current assets | (17,877) | (46,664) |
Current liabilities | 49,251 | 70,305 |
Non-current liabilities | 169,513 | 161,694 |
Total | 196,175 | 157,621 |
Braskem Idsea [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 761,153 | |
Fair value | 26,707 | (67,664) |
Derivatives | ||
Current assets | (21,000) | |
Non-current assets | (46,664) | |
Current liabilities | 5,768 | |
Non-current liabilities | 20,939 | |
Total | 26,707 | (67,664) |
Braskem Idsea [Member] | Swap Libor I to VI [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | R$ 761153 | |
Hedge (interest rate per year) | 1.9825% | |
Maturity | Aug-2025 | |
Fair value | R$ 26707 | R$ 67664 |
20 Financial instruments (Det_4
20 Financial instruments (Details 3) - US$ R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | R$ 5398854 |
2020 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 724,000 |
2022 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 336,000 |
2023 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 200,000 |
2024 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 688,854 |
2025 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 400,000 |
2028 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 1,250,000 |
2030 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 800,000 |
2032 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 200,000 |
2031 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | R$ 800000 |
20 Financial instruments (Det_5
20 Financial instruments (Details 4) - US$ - Future Exports [Member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |
Designated balance, beginning | R$ 5550205 |
Hedge discontinued | (2,351,351) |
Designations | 220,000 |
Designated balance, ending | R$ 5398854 |
20 Financial instruments (Det_6
20 Financial instruments (Details 5) - US$ R$ in Thousands | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | R$ 5398854 |
2020 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 724,000 |
2022 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 336,000 |
2023 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 200,000 |
2024 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 688,854 |
2025 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 400,000 |
2028 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 1,250,000 |
2030 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 800,000 |
2031 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 800,000 |
2032 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | R$ 200000 |
20 Financial instruments (Det_7
20 Financial instruments (Details 6) - Dec. 31, 2019 R$ in Thousands, $ in Thousands | USD ($)R$ / $$ / $ | BRL (R$)R$ / $$ / $ |
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | R$ 1385111 | |
Fourth Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | R$ 449430 | |
Fourth Quarter [Member] | Braskem Idsea [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Conversion rate at inception | $ / $ | 13.6549 | 13.6549 |
Closing rate | $ / $ | 19.3564 | 19.3564 |
Gross nominal value | R$ | R$ 3197381 | |
US$ | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 733,980 | |
US$ | Fourth Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 216,990 | |
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 4.0729 | 4.0729 |
US$ | Fourth Quarter [Member] | Braskem Idsea [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 1,617,371 | |
Hedge Discontinued [Member] | Fourth Quarter [Member] | Braskem Idsea [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | R$ 3197381 | |
Hedge Discontinued [Member] | US$ | Fourth Quarter [Member] | Braskem Idsea [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 1,617,371 | |
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.9786 | 3.9786 |
20 Financial instruments (Det_8
20 Financial instruments (Details 7) R$ in Thousands, $ in Thousands | Dec. 31, 2019USD ($)R$ / $ | Dec. 31, 2019BRL (R$)R$ / $ |
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | R$ 1385111 | |
First Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | 261,465 | |
Second Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | 349,118 | |
Third Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | 325,098 | |
Fourth Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Gross nominal value | R$ | R$ 449430 | |
US$ | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 733,980 | |
US$ | First Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 150,000 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.7448 | 3.7448 |
US$ | Second Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 183,495 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.9043 | 3.9043 |
US$ | Third Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 183,495 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 3.7734 | 3.7734 |
US$ | Fourth Quarter [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total nominal value | $ | $ 216,990 | |
Conversion rate at inception | 2.0017 | 2.0017 |
Closing rate | 4.0729 | 4.0729 |
20 Financial instruments (Det_9
20 Financial instruments (Details 8) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | R$ 5898564 |
Exchange variation recorded in the period on OCI / Income tax and social contribution | (565,005) |
Exchange variation transferred to profit or loss / Income tax and social contribution | 914,180 |
Ending balance | (5,549,389) |
Exchange Variation [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (8,937,217) |
Exchange variation recorded in the period on OCI / Income tax and social contribution | (856,068) |
Exchange variation transferred to profit or loss / Income tax and social contribution | 1,385,121 |
Ending balance | (8,408,164) |
IR And CSL [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | 3,038,653 |
Exchange variation recorded in the period on OCI / Income tax and social contribution | 291,063 |
Exchange variation transferred to profit or loss / Income tax and social contribution | (470,941) |
Ending balance | R$ 2858775 |
20 Financial instruments (De_10
20 Financial instruments (Details 9) - US$ $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 724,000 |
First Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 181,000 |
Second Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 181,000 |
Third Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 181,000 |
Fourth Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 181,000 |
20 Financial instruments (De_11
20 Financial instruments (Details 10) - US$ $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | $ 2,552,407 |
2020 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 179,982 |
2022 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 208,901 |
2022 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 183,300 |
2023 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 230,967 |
2024 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 251,869 |
2025 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 227,716 |
2026 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 192,592 |
2027 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 89,963 |
2028 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 71,898 |
2029 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 15,219 |
2030 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 225,000 |
2031 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 225,000 |
2032 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | 225,000 |
2033 [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Nominal value | $ 225,000 |
20 Financial instruments (De_12
20 Financial instruments (Details 11) - US$ $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | $ 2,708,856 |
Discontinued hedge | (1,056,869) |
Realization of the discontinued hedge | 420 |
New designations | 900,000 |
Ending balance | $ 2,552,407 |
20 Financial instruments (De_13
20 Financial instruments (Details 12) - US$ - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 2,552,407 | $ 2,708,856 |
2020 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 179,982 | |
2022 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 208,901 | |
2022 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 183,300 | |
2023 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 230,967 | |
2024 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 251,869 | |
2025 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 227,716 | |
2026 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 192,592 | |
2027 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 89,963 | |
2028 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 71,898 | |
2029 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 15,219 | |
2030 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 225,000 | |
2031 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 225,000 | |
2032 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | 225,000 | |
2033 [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Nominal value | $ 225,000 |
20 Financial instruments (De_14
20 Financial instruments (Details 13) - Braskem Idsea [Member] R$ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2019BRL (R$)$ / $ | Dec. 31, 2019MXN ($)$ / $ |
Disclosure of detailed information about financial instruments [line items] | |||
Gross nominal value | R$ | R$ 1060082 | ||
US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 838,595 | ||
MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 4,967,581 | ||
Hedge Discontinued in May-2016 [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.4541 | 13.4541 | 13.4541 |
Closing rate | $ / $ | 17.9915 | 17.9915 | 17.9915 |
Gross nominal value | R$ | R$ 10647 | ||
Hedge Discontinued in May-2016 [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 10,996 | ||
Hedge Discontinued in May-2016 [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 49,893 | ||
Hedge Discontinued in Dec-2019 [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.6663 | 13.6663 | 13.6663 |
Closing rate | $ / $ | 19.6113 | 19.6113 | 19.6113 |
Gross nominal value | R$ | R$ 1009263 | ||
Hedge Discontinued in Dec-2019 [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 795,533 | ||
Hedge Discontinued in Dec-2019 [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 4,729,441 | ||
Hedge Discontinued in Dec-2019 [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.4541 | 13.4541 | 13.4541 |
Closing rate | $ / $ | 19.3247 | 19.3247 | 19.3247 |
Gross nominal value | R$ | R$ 40172 | ||
Hedge Discontinued in Dec-2019 [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 32,066 | ||
Hedge Discontinued in Dec-2019 [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 188,247 |
20 Financial instruments (De_15
20 Financial instruments (Details 14) - Dec. 31, 2019 R$ in Thousands, $ in Thousands, $ in Thousands | USD ($)R$ / $$ / $ | BRL (R$)R$ / $$ / $ | MXN ($)R$ / $$ / $ |
First Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.7448 | 3.7448 | 3.7448 |
Second Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.9043 | 3.9043 | 3.9043 |
Third Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 3.7734 | 3.7734 | 3.7734 |
Fourth Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | R$ / $ | 2.0017 | 2.0017 | 2.0017 |
Closing rate | R$ / $ | 4.0729 | 4.0729 | 4.0729 |
Braskem Idsea [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Gross nominal value | R$ | R$ 267146 | ||
Braskem Idsea [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 229,270 | ||
Braskem Idsea [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 1,298,594 | ||
Braskem Idsea [Member] | First Quarter [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.6544 | 13.6544 | 13.6544 |
Closing rate | $ / $ | 19.2153 | 19.2153 | 19.2153 |
Gross nominal value | R$ | R$ 60811 | ||
Braskem Idsea [Member] | First Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 56,383 | ||
Braskem Idsea [Member] | First Quarter [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 313,540 | ||
Braskem Idsea [Member] | Second Quarter [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.6544 | 13.6544 | 13.6544 |
Closing rate | $ / $ | 19.0768 | 19.0768 | 19.0768 |
Gross nominal value | R$ | R$ 63995 | ||
Braskem Idsea [Member] | Second Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 56,383 | ||
Braskem Idsea [Member] | Second Quarter [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 305,731 | ||
Braskem Idsea [Member] | Third Quarter [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.6547 | 13.6547 | 13.6547 |
Closing rate | $ / $ | 19.6178 | 19.6178 | 19.6178 |
Gross nominal value | R$ | R$ 70181 | ||
Braskem Idsea [Member] | Third Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 57,629 | ||
Braskem Idsea [Member] | Third Quarter [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 343,647 | ||
Braskem Idsea [Member] | Fourth Quarter [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Conversion rate at inception | $ / $ | 13.6549 | 13.6549 | 13.6549 |
Closing rate | $ / $ | 19.3564 | 19.3564 | 19.3564 |
Gross nominal value | R$ | R$ 72159 | ||
Braskem Idsea [Member] | Fourth Quarter [Member] | US$ | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 58,875 | ||
Braskem Idsea [Member] | Fourth Quarter [Member] | MXN | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total nominal value | $ 335,676 |
20 Financial instruments (De_16
20 Financial instruments (Details 15) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | R$ 5898564 |
Exchange variation recorded in the period on OCI / Income tax | (565,005) |
Exchange variation transferred to profit or loss / Income tax | 914,180 |
Ending balance | 5,549,389 |
Exchange Variation [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | 8,937,217 |
Exchange variation recorded in the period on OCI / Income tax | (856,068) |
Exchange variation transferred to profit or loss / Income tax | 1,385,121 |
Ending balance | 8,408,164 |
Braskem Idsea [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (2,303,937) |
Exchange variation recorded in the period on OCI / Income tax | 325,364 |
Exchange variation transferred to profit or loss / Income tax | 187,002 |
Ending balance | (1,791,571) |
Braskem Idsea [Member] | Exchange Variation [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | (3,292,388) |
Exchange variation recorded in the period on OCI / Income tax | 464,806 |
Exchange variation transferred to profit or loss / Income tax | 267,146 |
Ending balance | (2,560,436) |
Braskem Idsea [Member] | Income Tax [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Beginning balance | 988,451 |
Exchange variation recorded in the period on OCI / Income tax | (139,442) |
Exchange variation transferred to profit or loss / Income tax | (80,144) |
Ending balance | R$ 768865 |
20 Financial instruments (De_17
20 Financial instruments (Details 16) - US$ $ in Thousands | Dec. 31, 2019USD ($) |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 266,691 |
First Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 61,369 |
Second Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 65,612 |
Third Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | 69,855 |
Fourth Quarter [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total nominal value | $ 69,855 |
20 Financial instruments (De_18
20 Financial instruments (Details 17) | Dec. 31, 2019 | Dec. 31, 2018 | |
Stages 1 Minimum risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | 74.23% | 67.50% | |
Stages 2 Low Risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | 14.89% | 18.60% | |
Stages 3 Moderate Risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | 7.82% | 7.61% | |
Stages 4 High Risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | 1.06% | 5.02% | |
Stages 5 Very High Risk [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Credit rating | [1] | 1.99% | 1.27% |
[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. |
20 Financial instruments (De_19
20 Financial instruments (Details 18) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
External Market [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Default indicators | 0.17% | 0.45% | 0.19% |
Domestic Market [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Default indicators | 0.05% | 0.08% | 0.08% |
20 Financial instruments (De_20
20 Financial instruments (Details 19) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | R$ 8496158 | R$ 7906358 | |
Financial assets without risk assessment | 4,934 | 8,890 | |
Financial assets | 8,501,092 | 7,915,248 | |
A+ [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 159,848 | 1,103,647 | |
Other Financial Assets With No Risk Assessment [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets without risk assessment | [1] | 4,934 | 8,890 |
AAA [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 5,475,075 | 4,294,100 | |
AA+ [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 109,933 | 1,175,098 | |
AA [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 79,136 | ||
AA- [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 1,458,424 | 1,076 | |
BB- [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 29 | ||
A [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 121,132 | 165,899 | |
A- [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | R$ 1171746 | 169,580 | |
BBB+ [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | 917,541 | ||
BB+ [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets with risk assessment | R$ 252 | ||
[1] | Investments approved by the Management of the Company, in accordance with the financial policy. |
20 Financial instruments (De_21
20 Financial instruments (Details 20) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Bond [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | R$ 345206 |
Possible adverse gain (loss) -25% | (7,055,927) |
Extreme adverse gain (loss) -50% | (14,111,853) |
Braskem Idesa Borrowings [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (81,773) |
Possible adverse gain (loss) -25% | (1,671,426) |
Extreme adverse gain (loss) -50% | (3,342,851) |
Braskem Idesa Borrowings [Member] | Libor Floating Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (89,189) |
Possible adverse gain (loss) -25% | (445,944) |
Extreme adverse gain (loss) -50% | (891,887) |
Export Prepayments [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (10,559) |
Possible adverse gain (loss) -25% | (215,823) |
Extreme adverse gain (loss) -50% | (431,647) |
Export Prepayments [Member] | Libor Floating Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (7,625) |
Possible adverse gain (loss) -25% | (38,124) |
Extreme adverse gain (loss) -50% | (76,248) |
Investments [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (9,190) |
Possible adverse gain (loss) -25% | (187,844) |
Extreme adverse gain (loss) -50% | (375,688) |
SACE [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (20,536) |
Possible adverse gain (loss) -25% | (419,744) |
Extreme adverse gain (loss) -50% | (839,487) |
Dollar Put Option [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (9,931) |
Possible adverse gain (loss) -25% | (478,958) |
Extreme adverse gain (loss) -50% | (1,685,285) |
Dollar Swap [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (4,033) |
Possible adverse gain (loss) -25% | (82,372) |
Extreme adverse gain (loss) -50% | (164,742) |
Swap NCE [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (5,271) |
Possible adverse gain (loss) -25% | (107,743) |
Extreme adverse gain (loss) -50% | (215,486) |
Dollar Swap x CDI [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (16,809) |
Possible adverse gain (loss) -25% | (345,832) |
Extreme adverse gain (loss) -50% | (691,949) |
Financial Investments Abroad [Member] | Brazilian Real/U.S. Dollar Exchange Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (45,323) |
Possible adverse gain (loss) -25% | (926,395) |
Extreme adverse gain (loss) -50% | (1,852,791) |
Swaps [Member] | Libor Floating Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | (5,730) |
Possible adverse gain (loss) -25% | 37,283 |
Extreme adverse gain (loss) -50% | 73,854 |
Export Credit Notes [Member] | CDI Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 12,982 |
Possible adverse gain (loss) -25% | (20,906) |
Extreme adverse gain (loss) -50% | (41,331) |
Debentures [Member] | CDI Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 5,778 |
Possible adverse gain (loss) -25% | (6,495) |
Extreme adverse gain (loss) -50% | (13,154) |
Debentures [Member] | IPCA Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Probable gain (loss) | 11,644 |
Possible adverse gain (loss) -25% | (18,569) |
Extreme adverse gain (loss) -50% | (37,943) |
Financial Investments In Local Currency [Member] | CDI Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Possible adverse gain (loss) -25% | 41,830 |
Extreme adverse gain (loss) -50% | 83,679 |
FINAME [Member] | TLP Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Possible adverse gain (loss) -25% | (4) |
Extreme adverse gain (loss) -50% | (7) |
Leniency Agreement [Member] | Selic Interest Rate [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Possible adverse gain (loss) -25% | (53,042) |
Extreme adverse gain (loss) -50% | R$ 106946 |
20 Financial instruments (De_22
20 Financial instruments (Details Narrative) R$ in Thousands, $ in Thousands | Nov. 01, 2019USD ($)R$ / $ | May 02, 2019USD ($)R$ / $ | Feb. 02, 2019USD ($)R$ / $ | Dec. 31, 2019USD ($)R$ / $ | Dec. 31, 2019BRL (R$)R$ / $ | Sep. 30, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 01, 2014BRL (R$) |
Probable Scenario [Member] | TJLP [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Percentage of rate | 5.09% | |||||||
Top of Range [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Maturity terms | 24 months | |||||||
US$ | Probable Scenario [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Average strike price | R$ / $ | 4.08 | 4.08 | ||||||
Percentage of selic rate | 4.50% | |||||||
Put Options [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | R$ | R$ 1900000 | |||||||
Average strike price | R$ / $ | 3.55 | 3.55 | ||||||
Put Options [Member] | US$ | Value at Risk [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Derivative financial instrument | $ 15,885 | |||||||
Call Options [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | R$ | R$ 1400000 | |||||||
Average strike price | R$ / $ | 4.88 | 4.88 | ||||||
Currency Swap Contract [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Maturity terms | 5 years | |||||||
Derivative financial instrument | R$ | R$ 1300000 | |||||||
Derivative starting date | January 2019 | |||||||
Derivative amount payable date | January 2020 | |||||||
Future Exports [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Average strike price | R$ / $ | 1 | 1 | ||||||
Future Exports [Member] | US$ | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Average strike price | R$ / $ | 3.9786 | 3.9650 | 3.6694 | |||||
Maturity terms | Between 2030 and 2032 | 2025 | 2025 | |||||
Discontinuation maturity terms | Between 2021 and 2023 | |||||||
Designated | $ 1,800,000 | $ 200,000 | $ 200,000 | |||||
Hedge discontinued | $ 1,600,000 | $ 1,617,371 | ||||||
Hedge discontinued rate | R$ / $ | 3.9786 | |||||||
Average export per year | $ 3,100,000 | |||||||
Future Exports [Member] | US$ | Top of Range [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Percentage of hedged exports | 30.00% | |||||||
Future Exports [Member] | US$ | Bottom Of Range [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Percentage of hedged exports | 20.00% | |||||||
New Financial Instruments [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Average strike price | R$ / $ | 1 | 1 | ||||||
Maturity terms | 2028 | |||||||
Project Finance [Member] | Braskem Idesa [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Derivative liabilities | R$ | R$ 2878936 | |||||||
Project Finance [Member] | US$ | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Hedge discontinued | $ 838,596 | |||||||
Project Finance [Member] | US$ | Braskem Idesa [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Derivative liabilities | $ 23,608 | $ 290,545 | ||||||
Swap Contract [member] | US$ | Value at Risk [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Derivative financial instrument | 4,456 | |||||||
Dollar Swap [member] | US$ | Value at Risk [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Derivative financial instrument | 32,646 | |||||||
NCE Swap [Member] | US$ | Value at Risk [Member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Derivative financial instrument | $ 8,226 |
21 Taxes payable (Details)
21 Taxes payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | R$ 452239 | R$ 517909 |
Taxes payable, current | 322,886 | 432,005 |
Taxes payable, noncurrent | 129,353 | 85,904 |
Other Countries [Member] | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 452,239 | 517,909 |
Value-Added Tax [Member] | Other Countries [Member] | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 11,933 | 7,482 |
IPI [Member] | BRAZIL | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 58,945 | 64,672 |
ICMS - Interstate Purchases [Member] | BRAZIL | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 184,728 | 239,126 |
PIS And COFINS [Member] | BRAZIL | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 150,664 | 145,090 |
Other [Member] | Other Countries [Member] | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | 8,112 | 25,085 |
Other [Member] | BRAZIL | ||
DisclosureOfTaxesPayableLineItems [Line Items] | ||
Taxes payable | R$ 37857 | R$ 36454 |
22 Income tax (''IR'') and so_3
22 Income tax (''IR'') and social contribution (''CSL'') (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Ir And Social Contribution | ||||
Income (loss) before IR and CSL | R$ 4603068 | R$ 3604736 | R$ 5264577 | |
IR and CSL at the rate of 34% | 1,565,043 | (1,225,610) | (1,789,956) | |
Permanent adjustments to the IR and CSL calculation basis | ||||
IR and CSL on equity in results of investees | 3,469 | (302) | 2,201 | |
Thin capitalization | (221,337) | |||
Deferred tax losses and negative base | 39,092 | |||
Tax benefits (Sudene and PAT) | 87,186 | |||
Difference of rate applicable to each country | [1] | 293,647 | 468,129 | 250,130 |
Fine in leniency agreement | (25,390) | (117,140) | ||
Other permanent adjustments | 347,238 | 21,232 | 170,805 | |
Effect of IR and CSL on results of operations | (1,962,670) | 736,551 | 1,357,682 | |
Current IR and CSL expense | ||||
Current year | (251,641) | (512,951) | (869,493) | |
Changes in estimates related to prior years | 22,696 | 3,177 | ||
Total current IR and CSL expense | (228,945) | (509,774) | (869,493) | |
Deferred IR and CSL expense | ||||
Origination and reversal of temporary differences | 2,062,501 | (369,546) | (488,189) | |
Tax losses (IR) and negative base (CSL) | 129,114 | 142,769 | ||
Total deferred IR and CSL | 2,191,615 | (226,777) | (488,189) | |
Total | R$ 1962670 | R$ 736551 | R$ 1357682 | |
Effective rate | 42.60% | 20.40% | 25.80% | |
[1] | 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. |
22 Income tax (''IR'') and so_4
22 Income tax (''IR'') and social contribution (''CSL'') (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiary One [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Alemanha |
Headquarters country | Germany |
Official rate | 31.18% |
Subsidiary Two [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem America e Braskem America Finance |
Headquarters country | USA |
Official rate | 21.00% |
Subsidiary Three [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Argentina |
Headquarters country | Argentina |
Official rate | 30.00% |
Subsidiary Four [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Chile |
Headquarters country | Chile |
Official rate | 27.00% |
Subsidiary Five [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Holanda, Braskem Holanda Finance and Braskem Holanda Inc |
Headquarters country | Netherlands |
Official rate | 25.00% |
Subsidiary Six [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Idesa, Braskem Idesa Servicos, Braskem Mexico |
Subsidiary Seven [Member] | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Subsidiary name | Braskem Mexico Servicos and Braskem Mexico Proyectos |
Headquarters country | Mexico |
Official rate | 30.00% |
22 Income tax (''IR'') and so_5
22 Income tax (''IR'') and social contribution (''CSL'') (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
other comprehensive income | R$ 1607644 | R$ 2345888 | R$ 5179228 | ||
Presentation in the balance sheet: | |||||
Non-current assets | 2,662,596 | 1,104,158 | 1,165,726 | ||
Non-current liabilities | 273,036 | 381,582 | 1,005,493 | ||
Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 2,516,275 | 2,505,529 | |||
Impact on the P&L | 665,718 | 799,866 | |||
Impact on the equity | (789,120) | ||||
other comprehensive income | 288,094 | ||||
Ending balance | 3,470,087 | 2,516,275 | 2,505,529 | ||
Presentation in the balance sheet: | |||||
Non-current liabilities | 273,036 | 381,582 | |||
Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 3,238,851 | 2,665,762 | |||
Impact on the P&L | 2,857,333 | 573,089 | |||
Other | (236,537) | ||||
Ending balance | 5,859,647 | 3,238,851 | 2,665,762 | ||
Presentation in the balance sheet: | |||||
Non-current assets | 2,662,596 | 1,104,158 | |||
Net [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 722,576 | 160,233 | |||
Impact on the P&L | 2,191,615 | (226,777) | |||
Impact on the equity | 789,120 | ||||
other comprehensive income | (288,094) | ||||
Other | (236,537) | ||||
Ending balance | 2,389,560 | 722,576 | 160,233 | ||
Other [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 3,783 | 4,273 | |||
Impact on the P&L | 94,938 | 90,351 | |||
Impact on the equity | (90,841) | ||||
other comprehensive income | (93,284) | ||||
Ending balance | 5,437 | 3,783 | 4,273 | ||
Other [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | |||||
Impact on the P&L | 62,288 | ||||
Ending balance | 62,288 | ||||
Amortization Of Goodwill Based On Future Profitability [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 444,075 | ||||
Impact on the P&L | (50,302) | ||||
Ending balance | 393,773 | 444,075 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 444,075 | 519,623 | |||
Impact on the P&L | (75,548) | ||||
Ending balance | 444,075 | 519,623 | |||
Amortization Of Goodwill Based On Future Profitability [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 723,336 | 712,873 | |||
Impact on the P&L | (651) | 10,463 | |||
Ending balance | 722,685 | 723,336 | 712,873 | ||
Tax Losses (IR) And Negative Base (CSL) [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 2,021,578 | 1,878,809 | |||
Impact on the P&L | 129,114 | 142,769 | |||
Ending balance | 2,150,692 | 2,021,578 | 1,878,809 | ||
Goodwill Amortized [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 39,282 | 59,335 | |||
Impact on the P&L | (17,605) | (20,053) | |||
Ending balance | 21,677 | 39,282 | 59,335 | ||
Exchange Variations [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 39,959 | 388,293 | |||
Impact on the P&L | 1,092,392 | (348,334) | |||
Ending balance | 1,132,351 | 39,959 | 388,293 | ||
Temporary Adjustments [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 276,700 | 231,822 | |||
Impact on the P&L | 155,887 | 44,878 | |||
Ending balance | 432,587 | 276,700 | 231,822 | ||
Temporary Adjustments [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 802,170 | [1] | 155,540 | ||
Impact on the P&L | 1,555,097 | [1] | 646,630 | ||
Ending balance | 2,357,267 | [1] | 802,170 | [1] | 155,540 |
Business Combination [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 1,302 | 9,664 | |||
Impact on the P&L | (8,362) | ||||
Ending balance | 1,302 | 1,302 | 9,664 | ||
Business Combination [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 159,572 | 183,785 | |||
Impact on the P&L | (74,033) | (24,213) | |||
Ending balance | 85,539 | 159,572 | 183,785 | ||
Tax Credits [Member] | Assets [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 176,290 | ||||
Impact on the P&L | 110,080 | 176,290 | |||
Other | (236,537) | ||||
Ending balance | 49,833 | 176,290 | |||
Tax Depreciation [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 1,009,912 | 960,202 | |||
Impact on the P&L | 893,115 | 49,710 | |||
Ending balance | 1,903,027 | 1,009,912 | 960,202 | ||
Hedge Accounting [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | |||||
Impact on the P&L | (419,269) | 700,351 | |||
Impact on the equity | (700,351) | ||||
other comprehensive income | 419,269 | ||||
Ending balance | |||||
Long-Term Incentive Plan ("ILP Plan") [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | |||||
Impact on the P&L | (5,843) | (2,072) | |||
Impact on the equity | 2,072 | ||||
other comprehensive income | 5,843 | ||||
Ending balance | |||||
Health Care [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | |||||
Impact on the P&L | 43,734 | ||||
other comprehensive income | (43,734) | ||||
Ending balance | |||||
Present Value Adjustment And Amortized Cost [Member] | Liabilities [Member] | |||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||||
Beginning balance | 57,167 | 67,072 | |||
Impact on the P&L | (45,891) | (9,905) | |||
Ending balance | R$ 11276 | R$ 57167 | R$ 67072 | ||
[1] | Temporary adjustments refers to the provision for geological events in Alagoas, contingencies, impairment of assets, among other provisions |
22 Income tax (''IR'') and so_6
22 Income tax (''IR'') and social contribution (''CSL'') (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Balance, assets | R$ 2662596 | R$ 1104158 | R$ 1165726 |
Balance, liabilities | 273,036 | 381,582 | R$ 1005493 |
Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Tax calculation, liabilities | 3,470,087 | 2,516,275 | |
IR and CSl offsetting, liabilites | (3,197,051) | (2,134,693) | |
Balance, liabilities | R$ 273036 | R$ 381582 | |
Braskem S.A. [Member] | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | Brazil | |
Tax calculation, liabilities | R$ 2072130 | R$ 2239727 | |
IR and CSl offsetting, liabilites | R$ 2072130 | (2,126,658) | |
Balance, liabilities | 113,069 | ||
Braskem Chile | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Chile | ||
Tax calculation, liabilities | R$ 1913 | 268 | |
IR and CSl offsetting, liabilites | (162) | R$ 268 | |
Balance, liabilities | R$ 1751 | ||
Braskem Idsea [Member] | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Mexico | ||
Tax calculation, liabilities | R$ 1117641 | ||
IR and CSl offsetting, liabilites | R$ 1117641 | ||
Cetrel [Member] | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | Brazil | |
Tax calculation, liabilities | R$ 5846 | R$ 6645 | |
IR and CSl offsetting, liabilites | R$ 5846 | R$ 6645 | |
DAC [Member] | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | Brazil | |
Tax calculation, liabilities | R$ 1272 | R$ 1122 | |
IR and CSl offsetting, liabilites | R$ 1272 | R$ 1122 | |
Braskem America [Member] | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | USA | USA | |
Tax calculation, liabilities | R$ 271285 | R$ 268513 | |
Balance, liabilities | 271,285 | R$ 268513 | |
Braskem Chile [Member] | Liabilities [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Chile | ||
Assets [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Tax calculation, assets | 5,859,647 | R$ 3238851 | |
IR and CSL offsetting, assets | (3,197,051) | (2,134,693) | |
Balance, assets | R$ 2662596 | R$ 1104158 | |
Assets [Member] | Braskem S.A. [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | Brazil | |
Tax calculation, assets | R$ 3679547 | R$ 2126658 | |
IR and CSL offsetting, assets | (2,072,130) | R$ 2126658 | |
Balance, assets | R$ 1607417 | ||
Assets [Member] | Braskem Argentina [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Argentina | Argentina | |
Tax calculation, assets | R$ 1010 | R$ 11337 | |
Balance, assets | R$ 1010 | R$ 11337 | |
Assets [Member] | Braskem Alemanha [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Germany | Germany | |
Tax calculation, assets | R$ 28176 | R$ 11251 | |
Balance, assets | R$ 28176 | R$ 11251 | |
Assets [Member] | Braskem Chile | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Chile | Chile | |
Tax calculation, assets | R$ 162 | R$ 308 | |
IR and CSL offsetting, assets | (162) | (268) | |
Balance, assets | R$ 40 | ||
Assets [Member] | Braskem Idsea [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Mexico | Mexico | |
Tax calculation, assets | R$ 2056723 | R$ 980762 | |
IR and CSL offsetting, assets | (1,117,641) | ||
Balance, assets | R$ 939082 | R$ 980762 | |
Assets [Member] | Braskem Mexico Servicos [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Mexico | Mexico | |
Tax calculation, assets | R$ 9677 | R$ 9409 | |
Balance, assets | R$ 9677 | R$ 9409 | |
Assets [Member] | Cetrel [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | Brazil | |
Tax calculation, assets | R$ 24313 | R$ 26478 | |
IR and CSL offsetting, assets | (5,846) | (6,645) | |
Balance, assets | R$ 18467 | R$ 19833 | |
Assets [Member] | DAC [Member] | |||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |||
Headquarters country | Brazil | Brazil | |
Tax calculation, assets | R$ 60039 | R$ 72648 | |
IR and CSL offsetting, assets | (1,272) | (1,122) | |
Balance, assets | R$ 58767 | R$ 71526 |
22 Income tax (''IR'') and so_7
22 Income tax (''IR'') and social contribution (''CSL'') (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | R$ 3470087 | R$ 2516275 | R$ 2505529 | |
2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,389,560 | |||
2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 3,470,087 | |||
2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 594,540 | |||
2020 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 283,581 | |||
2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 797,170 | |||
2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 303,184 | |||
2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 252,166 | |||
2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 200,379 | |||
2023 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 204,307 | |||
2023 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 192,003 | |||
2026 Thereafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 844,559 | |||
2026 Thereafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 269,141 | |||
2025 to 2027 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,425,247 | |||
2025 to 2027 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 267,106 | |||
2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | (1,728,429) | |||
2028 Therafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,954,693 | |||
Business Combination [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,302 | 1,302 | 9,664 | |
Business Combination [Member] | 2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [1] | 1,302 | ||
Business Combination [Member] | 2028 Therafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [1] | 1,302 | ||
Other [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 5,437 | 3,783 | 4,273 | |
Other [Member] | 2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 5,437 | |||
Other [Member] | 2028 Therafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 5,437 | |||
Amortization Of Goodwill Based On Future Profitability [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 393,773 | 444,075 | ||
Amortization Of Goodwill Based On Future Profitability [Member] | 2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [2] | 722,685 | ||
Amortization Of Goodwill Based On Future Profitability [Member] | 2028 Therafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [2] | 722,685 | ||
Tax Depreciation [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,903,027 | 1,009,912 | 960,202 | |
Tax Depreciation [Member] | 2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 1,911,214 | ||
Tax Depreciation [Member] | 2020 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 135,128 | ||
Tax Depreciation [Member] | 2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 135,128 | ||
Tax Depreciation [Member] | 2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 135,128 | ||
Tax Depreciation [Member] | 2023 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 135,128 | ||
Tax Depreciation [Member] | 2026 Thereafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 135,128 | ||
Tax Depreciation [Member] | 2025 to 2027 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 135,128 | ||
Tax Depreciation [Member] | 2028 Therafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [3] | 1,100,446 | ||
Present Value Adjustment And Amortized Cost [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 11,276 | 57,167 | 67,072 | |
Present Value Adjustment And Amortized Cost [Member] | 2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [4] | 11,276 | ||
Present Value Adjustment And Amortized Cost [Member] | 2020 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [4] | 6,959 | ||
Present Value Adjustment And Amortized Cost [Member] | 2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [4] | 4,317 | ||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 444,075 | 519,623 | ||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2021 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 393,773 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2020 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 44,825 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 44,825 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2022 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 44,825 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2023 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 44,825 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2026 Thereafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 44,825 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2025 to 2027 [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 44,825 | |||
Amortization Of Fair Value Adjustments On The Assets From The Acquisiton Of Braskem Qpar [Member] | 2028 Therafter [Member] | Liabilities [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 124,823 | |||
Assets [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 5,859,647 | 3,238,851 | 2,665,762 | |
Assets [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 5,859,647 | |||
Assets [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 878,121 | |||
Assets [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,100,354 | |||
Assets [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 452,545 | |||
Assets [Member] | 2023 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 396,310 | |||
Assets [Member] | 2026 Thereafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,113,700 | |||
Assets [Member] | 2025 to 2027 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,692,353 | |||
Assets [Member] | 2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 226,264 | |||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,150,692 | 2,021,578 | 1,878,809 | |
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 2,150,692 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 166,865 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 287,200 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 200,515 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2023 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 219,314 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2026 Thereafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 449,772 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2025 to 2027 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 818,425 | ||
Assets [Member] | Tax Losses (IR) And Negative Base (CSL) [Member] | 2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [5] | 8,601 | ||
Assets [Member] | Goodwill Amortized [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 21,677 | 39,282 | 59,335 | |
Assets [Member] | Goodwill Amortized [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 21,677 | |||
Assets [Member] | Goodwill Amortized [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,223 | |||
Assets [Member] | Goodwill Amortized [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,223 | |||
Assets [Member] | Goodwill Amortized [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,223 | |||
Assets [Member] | Goodwill Amortized [Member] | 2023 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,223 | |||
Assets [Member] | Goodwill Amortized [Member] | 2026 Thereafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,223 | |||
Assets [Member] | Goodwill Amortized [Member] | 2025 to 2027 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 2,224 | |||
Assets [Member] | Goodwill Amortized [Member] | 2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 8,338 | |||
Assets [Member] | Exchange Variations [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 1,132,351 | 39,959 | 388,293 | |
Assets [Member] | Exchange Variations [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 1,132,351 | ||
Assets [Member] | Exchange Variations [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 107,843 | ||
Assets [Member] | Exchange Variations [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 107,843 | ||
Assets [Member] | Exchange Variations [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 107,843 | ||
Assets [Member] | Exchange Variations [Member] | 2023 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 107,843 | ||
Assets [Member] | Exchange Variations [Member] | 2026 Thereafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 166,325 | ||
Assets [Member] | Exchange Variations [Member] | 2025 to 2027 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 387,626 | ||
Assets [Member] | Exchange Variations [Member] | 2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [6] | 147,028 | ||
Assets [Member] | Temporary Adjustments [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 2,357,267 | ||
Assets [Member] | Temporary Adjustments [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 536,934 | ||
Assets [Member] | Temporary Adjustments [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 660,491 | ||
Assets [Member] | Temporary Adjustments [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 113,454 | ||
Assets [Member] | Temporary Adjustments [Member] | 2023 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 66,930 | ||
Assets [Member] | Temporary Adjustments [Member] | 2026 Thereafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 495,380 | ||
Assets [Member] | Temporary Adjustments [Member] | 2025 to 2027 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [7] | 484,078 | ||
Assets [Member] | Business Combination [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 85,539 | 159,572 | R$ 183785 | |
Assets [Member] | Business Combination [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [8] | 85,539 | ||
Assets [Member] | Business Combination [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [8] | 28,510 | ||
Assets [Member] | Business Combination [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [8] | 28,510 | ||
Assets [Member] | Business Combination [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [8] | 28,510 | ||
Assets [Member] | Business Combination [Member] | 2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [8] | 9 | ||
Assets [Member] | Tax Credits [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 49,833 | 176,290 | ||
Assets [Member] | Tax Credits [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [9] | 49,833 | ||
Assets [Member] | Tax Credits [Member] | 2020 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [9] | 35,746 | ||
Assets [Member] | Tax Credits [Member] | 2022 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | [9] | 14,087 | ||
Assets [Member] | Other [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 62,288 | |||
Assets [Member] | Other [Member] | 2021 [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | 62,288 | |||
Assets [Member] | Other [Member] | 2028 Therafter [Member] | ||||
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred tax assets/liabilites | R$ 62288 | |||
[1] | 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. | |||
[2] | Goodwill for the future profitability of the merged companies is not amortized since the adoption of Law 11,638/07. Tax realization is associated with the write-off of goodwill due to impairment or upon divestment. | |||
[3] | 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. | |||
[4] | Additional adjustment, upon adoption of Law 11,638/07, of property, plant and equipment, whose tax realization is based on the depreciation of assets, as well as adjustment to present value of assets and liabilities overdue more than 89 days. | |||
[5] | In Brazil, the use of tax losses is limited to 30% of the taxable profit for the year; however, the balance does not expire. Meanwhile, in Mexico there is no limit on the amount that can be used in the year; however, the tax losses expire in 10 years. The realization of Tax Losses consider the taxable profit expected by the company over a 10-year horizon. | |||
[6] | 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 the recognition of deferred IR and CSL. | |||
[7] | Accounting expenses not yet deductible for calculating income tax and social contribution, whose recognition for tax purposes occurs in subsequent periods. For 2019, the provisioning of expenses with contingencies and damages in Alagoas produced a material impact. | |||
[8] | Refers to: tax-related goodwill and contingencies recognized from business combinations. Tax realization of goodwill occurs upon the merger of the investments and contingencies arising from write-offs due to the settlement or reversal of the processes involved. | |||
[9] | Tax credits arising from the balance of tax paid on profit abroad and the worker's food program. |
22 Income tax (''IR'') and so_8
22 Income tax (''IR'') and social contribution (''CSL'') (Details Narrative) | 12 Months Ended |
Dec. 31, 2019 | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Tax rate losses | 75.00% |
Losses expire | 10 years |
BRAZIL | |
DisclosureOfIncomeTaxAndSocialContributionLineItems [Line Items] | |
Tax rates | 34.00% |
Tax rate losses | 30.00% |
23 Sundry provisions (Details)
23 Sundry provisions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfSundryProvisionsLineItems [Line Items] | |||
Sundry provisions | R$ 505206 | R$ 424542 | R$ 413672 |
Sundry provisions, current | 203,134 | 191,536 | |
Sundry provisions, noncurrent | 302,072 | 233,006 | |
Provision For Customers Rebates [Member] | |||
DisclosureOfSundryProvisionsLineItems [Line Items] | |||
Sundry provisions | 84,110 | 88,026 | |
Recovery Of Environmental Damage [Member] | |||
DisclosureOfSundryProvisionsLineItems [Line Items] | |||
Sundry provisions | 365,155 | 307,546 | 300,249 |
Other [Member] | |||
DisclosureOfSundryProvisionsLineItems [Line Items] | |||
Sundry provisions | R$ 55941 | R$ 28970 | R$ 25510 |
23 Sundry provisions (Details 1
23 Sundry provisions (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Beginning balance | R$ 424542 | R$ 413672 |
Additions, inflation adjustments and exchange variation, net | 253,110 | 202,419 |
Write-offs through usage and payments | 172,446 | 191,549 |
Ending balance | 505,206 | 424,542 |
Bonus [Member] | ||
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Beginning balance | 88,026 | 87,913 |
Additions, inflation adjustments and exchange variation, net | 74,299 | 104,431 |
Write-offs through usage and payments | (78,215) | (104,318) |
Ending balance | 84,110 | 88,026 |
Recovery Of Environmental Damage [Member] | ||
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Beginning balance | 307,546 | 300,249 |
Additions, inflation adjustments and exchange variation, net | 144,617 | 89,395 |
Write-offs through usage and payments | (87,008) | (82,098) |
Ending balance | 365,155 | 307,546 |
Other [Member] | ||
DisclosureOfSundryProvisionsLineItems [Line Items] | ||
Beginning balance | 28,970 | 25,510 |
Additions, inflation adjustments and exchange variation, net | 34,194 | 8,593 |
Write-offs through usage and payments | (7,223) | (5,133) |
Ending balance | R$ 55941 | R$ 28970 |
24 Contingencies (Details)
24 Contingencies (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | R$ 1151524 | R$ 965317 | R$ 1092645 |
Corporate Claims [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 118,485 | 111,049 | |
Civil Claims And Other [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 45,514 | 69,438 | 74,614 |
Tax Claims [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 307,760 | 265,218 | |
Tax Claims [Member] | IR And CSL [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 22,284 | 20,717 | |
Tax Claims [Member] | PIS And COFINS [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 196,356 | 156,796 | |
Tax Claims [Member] | ICMS - Interstate Purchases [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 70,645 | 64,468 | |
Tax Claims [Member] | Other Tax Claims [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 18,475 | 23,237 | |
Business Combination [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 364,328 | 341,861 | |
Business Combination [Member] | IR And CSL [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 3,581 | 3,581 | |
Business Combination [Member] | PIS And COFINS [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 63,291 | 59,739 | |
Business Combination [Member] | ICMS - Interstate Purchases [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | 297,456 | 280,622 | |
Labor Claims [Member] | |||
DisclosureOfContingenciesLineItems [Line Items] | |||
Contingencies | R$ 315437 | R$ 177751 | R$ 250075 |
24 Contingencies (Details 1)
24 Contingencies (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfContingenciesLineItems [Line Items] | ||
Beginning balance | R$ 965317 | R$ 1092645 |
Additions, inflation adjustments and exchange variation | 439,621 | 171,598 |
Payments | (93,455) | (143,174) |
Reversals | (159,959) | (155,752) |
Ending balance | 1,151,524 | 965,317 |
Labor Claims [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Beginning balance | 177,751 | 250,075 |
Additions, inflation adjustments and exchange variation | 322,102 | 80,685 |
Payments | (83,189) | (70,553) |
Reversals | (101,227) | (82,456) |
Ending balance | 315,437 | 177,751 |
Tax Claims [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Beginning balance | 607,079 | 632,177 |
Additions, inflation adjustments and exchange variation | 98,618 | 77,236 |
Payments | (6,348) | (40,768) |
Reversals | (27,261) | (61,566) |
Ending balance | 672,088 | 607,079 |
Corporate Claims [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Beginning balance | 111,049 | 135,779 |
Additions, inflation adjustments and exchange variation | 7,436 | 8,676 |
Payments | (31,680) | |
Reversals | (1,726) | |
Ending balance | 118,485 | 111,049 |
Civil Claims And Other [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Beginning balance | 69,438 | 74,614 |
Additions, inflation adjustments and exchange variation | 11,465 | 5,001 |
Payments | (3,918) | (173) |
Reversals | (31,471) | (10,004) |
Ending balance | R$ 45514 | R$ 69438 |
24 Contingencies (Details 2)
24 Contingencies (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | R$ 42130701 | R$ 9320750 |
Civil Claims - Alagoas [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 33,973,320 | 0 |
Civil Claims - Other [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 769,126 | 691,636 |
Tax Claims [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 6,199,283 | 7,125,071 |
Labor Claims [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | 642,229 | 860,061 |
Other Lawsuits [Member] | ||
DisclosureOfContingenciesLineItems [Line Items] | ||
Claims with possible chance of loss | R$ 546743 | R$ 643982 |
24 Contingencies (Details Narra
24 Contingencies (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | May 31, 2018 | Dec. 31, 2009 |
DisclosureOfContingenciesLineItems [Line Items] | |||||
Labor claims for health and security cases | R$ 604 | R$ 477 | |||
Payment of non-controlling preferred shareholders the distribution of the remaining profits | 186,000 | ||||
PIS and COFINS Sundry [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Labor claims for health and security cases | 148,000 | ||||
Tax Contingent Liability [Member] | Tax Claims ICMS [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Provisions for fine for tax offense | 297,456 | 280,622 | |||
Claims with possible chance of loss | 740,000 | ||||
Claims offered as collateral | 148,000 | ||||
Tax Contingent Liability [Member] | IOF [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 167,000 | ||||
Claims offered as collateral | 59,000 | ||||
Tax Contingent Liability [Member] | IRRF, IR and CSL - Commission expenses [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 133,000 | ||||
Tax Contingent Liability [Member] | IR and CSL - Exchange variation on naphtha imports [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 103,000 | ||||
Tax Contingent Liability [Member] | Isolated fine - failure to ratify DCOMPS | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 289,000 | ||||
Tax Contingent Liability [Member] | IRPJ/CSLL - Negative Balance - Offset [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 196,000 | ||||
Tax Contingent Liability [Member] | IPI and II - Customs difference [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 82,000 | ||||
Tax Contingent Liability [Member] | PIS and COFINS - DCide-Fuels Tax Offset [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 144,000 | ||||
Tax Contingent Liability [Member] | Exports - Customs Fine - Fraudulent Interposition - IRPJ/CSLL - Income Not Reported [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 75,000 | ||||
Tax Contingent Liability [Member] | Braskem Qpar [Member] | Tax Claims ICMS [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Fine for tax offense | R$ 480389 | ||||
Tax Contingent Liability [Member] | Braskem Qpar [Member] | Periods February 2004 To August 2005 November 2005 To February 2006 And September 2006 To January 2008 [Member] | Tax Claims ICMS [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Estimated amount at risk in main tax and social security lawsuits | 53,478 | ||||
Tax Contingent Liability [Member] | Braskem Qpar [Member] | December 2004 to August 2005 | Tax Claims ICMS [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Estimated amount at risk in main tax and social security lawsuits | 1,581 | ||||
Tax Contingent Liability [Member] | Braskem Qpar [Member] | August 2004 to November 2005 [Member] | Tax Claims ICMS [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Estimated amount at risk in main tax and social security lawsuits | R$ 3105 | ||||
Tax Contingent Liability [Member] | Social Security Contributions [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 53,000 | ||||
Other administrative proceedings | 47,000 | ||||
Tax Contingent Liability [Member] | Guarantee Insurance [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 3,700 | ||||
Tax Contingent Liability [Member] | Guarantee Insurance [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 30,000 | ||||
Tax Contingent Liability [Member] | Non Cumulative PIS And COFINS Taxes [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Provisions for fine for tax offense | 193,139 | 154,673 | |||
Claims with possible chance of loss | 1,200,000 | ||||
Tax Contingent Liability [Member] | PIS And COFINS Taxes [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Provisions for fine for tax offense | 63,291 | R$ 59739 | |||
Claims with possible chance of loss | 883,000 | ||||
Tax Contingent Liability [Member] | IR and CSL - Charges with Goodwill Amortization [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 1,000,000 | R$ 403000 | |||
Corporate Claims [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Unsecured provision for corporate claims | 64,305 | ||||
Payment of non-controlling preferred shareholders the distribution of the remaining profits | 15,345 | ||||
Caustic Soda Transportation [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 65,800 | ||||
Civil Claims Resale Of Solvents [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 204,600 | ||||
Hashimoto Public-Interest Civil Action [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 126,500 | ||||
Recourse Action Of Insurer [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 77,700 | ||||
Civil Excess Weight [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 61,200 | ||||
IR And CSL [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Claims with possible chance of loss | 348,000 | R$ 407000 | |||
Corporate Claims [Member] | |||||
DisclosureOfContingenciesLineItems [Line Items] | |||||
Estimated amount at risk in main tax and social security lawsuits | 15,345 | ||||
Claims with possible chance of loss | R$ 186000 |
25 Leniency agreement (Details
25 Leniency agreement (Details Narrative) SFr in Thousands, R$ in Thousands, $ in Thousands | Jan. 30, 2025BRL (R$) | Jan. 30, 2024BRL (R$) | Jan. 30, 2021BRL (R$) | Jun. 30, 2020BRL (R$) | Jun. 30, 2020CHF (SFr) | Jan. 30, 2020BRL (R$) | Jun. 27, 2019BRL (R$) | Jun. 27, 2019CHF (SFr) | Jan. 30, 2019BRL (R$) | Jun. 28, 2018BRL (R$) | Jun. 28, 2018CHF (SFr) | Jan. 30, 2018BRL (R$) | Jul. 06, 2017BRL (R$) | Jun. 27, 2017BRL (R$) | Jun. 27, 2017CHF (SFr) | Apr. 27, 2017USD ($) | Apr. 27, 2017BRL (R$) | Feb. 08, 2017USD ($) | Feb. 08, 2017BRL (R$) | Dec. 31, 2016USD ($) | Dec. 31, 2016BRL (R$) |
Leniency Agreements [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 2200000 | ||||||||||||||||||||
Leniency Agreements [Member] | Events After Reporting Period [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 257256 | ||||||||||||||||||||
Leniency Agreements [Member] | Federal Prosecution Office And U.S. And Swiss Authorities [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | 3,100,000 | ||||||||||||||||||||
Leniency Agreements [Member] | Federal Prosecution Office And U.S. And Swiss Authorities [Member] | US$ | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | $ | $ 957,000 | ||||||||||||||||||||
Leniency Agreements [Member] | Department Of Justice [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 296591 | ||||||||||||||||||||
Leniency Agreements [Member] | Department Of Justice [Member] | US$ | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | $ | $ 94,894 | ||||||||||||||||||||
Leniency Agreements [Member] | Securities and Exchange Commission (SEC) [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 206460 | ||||||||||||||||||||
Leniency Agreements [Member] | Securities and Exchange Commission (SEC) [Member] | US$ | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | $ | $ 65,000 | ||||||||||||||||||||
Leniency Agreements [Member] | Swiss Office [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 58034 | R$ 62021 | R$ 104307 | ||||||||||||||||||
Leniency Agreements [Member] | Swiss Office [Member] | CHF | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | SFr | SFr 16,065 | SFr 16,065 | SFr 30,240 | ||||||||||||||||||
Leniency Agreements [Member] | Federal Prosecution Office (MPF) [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 278034 | R$ 267985 | R$ 736445 | ||||||||||||||||||
CGU/AGU Agreement [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 410000 | ||||||||||||||||||||
CGU/AGU Agreement [Member] | Events After Reporting Period [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 125211 | R$ 284665 | 1,500,000 | ||||||||||||||||||
CGU/AGU Agreement [Member] | Swiss Office [Member] | Events After Reporting Period [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 133428 | ||||||||||||||||||||
CGU/AGU Agreement [Member] | Swiss Office [Member] | CHF | Events After Reporting Period [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | SFr | SFr 32,130 | ||||||||||||||||||||
MPF Agreement And CGU/AGU Agreement [Member] | Events After Reporting Period [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 900000 | ||||||||||||||||||||
CGU/AGU Agreement [Member] | Events After Reporting Period [Member] | |||||||||||||||||||||
DisclosureOfLeniencyAgreementLineItems [Line Items] | |||||||||||||||||||||
Settlement amount | R$ 409876 |
26 Geological phenomenon - Al_2
26 Geological phenomenon - Alagoas (Details Narrative) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019BRL (R$)Number | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) | |
DisclosureOfGeologicalPhenomenonAlagoasLineItems [Line Items] | ||||
Provision | R$ 3383067 | |||
Provision of current liabilities | 203,134 | R$ 191536 | ||
Provision of non-current liabilities | 302,072 | 233,006 | ||
Encompasses expenses | 1,687,700 | |||
Total expenses of wells | R$ 1011695 | |||
Number of wells implemented | Number | 35 | |||
Present obligation value | R$ 470417 | 274,366 | R$ 240190 | R$ 201516 |
Claiming damages | 141,000 | |||
Other expenses | 4,446,942 | R$ 554713 | R$ 1169814 | |
Technical Cooperation Agreement [Member] | Bottom Of Range [Member] | ||||
DisclosureOfGeologicalPhenomenonAlagoasLineItems [Line Items] | ||||
Working capital | 100,000 | |||
Technical Cooperation Agreement [Member] | Labor Prosecution Office (MPT) [Member] | ||||
DisclosureOfGeologicalPhenomenonAlagoasLineItems [Line Items] | ||||
Total expenses of wells | 683,672 | |||
Present obligation value | R$ 40000 | |||
Technical Cooperation Agreement [Member] | ACP, MPE And DPE [Member] | ||||
DisclosureOfGeologicalPhenomenonAlagoasLineItems [Line Items] | ||||
Description of reparation for residents | Preliminary injunction for the freezing of R$3.7 billion and the award of damages for losses caused to the residents of the districts of Pinheiro, Mutange and Bebedouro, which was estimated by Plaintiffs at R$7.1 billion. On January 3, 2020, the court ratified the Agreement to Support the Relocation of People in Risk Areas (“Agreement”), entered into by Braskem and the State Prosecution Office (“MPE”), the State Public Defender’s Office (“DPE”), the Federal Prosecution Office (“MPF”) and the Federal Public Defender’s Office (“DPU”). The Agreement was ratified by the Federal Judge of the 3rd Court of the State of Alagoas and produced the following effects: (i) Unfreezing of R$3.7 billion (*) previously frozen from the cash balance of Braskem in the context of the Public-Interest Civil Action, (ii) Substitution of the guarantee insurance already offered by the Company to the Court, in the amount of approximately R$6.4 billion, by two guarantee insurance in the aggregate amount of approximately R$3 billion, of which R$2 billion is to secure the Public-Interest Civil Action filed by the DPE and MPE and R$1 billion is to secure the Public-Interest Civil Action filed by the MPF; (iii) Elimination of the risk of another freezing of accounts in connection with the Public-Interest Civil Action; (iv) Dismissal of the action in part with regard to the residents of the area envisaged in the Agreement who opt to enter into individual settlements with the Company to receive financial compensation for relocating from the area. (*) The unfreezing took place in January 2020. On December 31, 2019, the updated amount is presented in the caption judicial deposits in current assets in the amount of R$2,571,683 and in non-current assets in the amount of R$1,174,424 corresponding to the long-term portion of the payment schedule. | |||
Technical Cooperation Agreement [Member] | Alagoas State Labor Prosecution Office (MPT-AL) [Member] | ||||
DisclosureOfGeologicalPhenomenonAlagoasLineItems [Line Items] | ||||
Description of reparation for workers | Public-Interest Civil Action with a preliminary injunction to freeze a total of R$2.5 billion to guarantee any indemnification for material damages to workers affected by the geological phenomenon. In said lawsuit, the MPT-AL also claims indemnification of the workers for moral damages of R$1 billion and other obligations in the amount of R$125 million, totaling the value of R$3.6 billion. On October 10, 2019, the tenured judge of the lawsuit denied the injunction sought by the MPT-AL. On February 14, 2020, the Company entered into an agreement with the Labor Prosecution Office (MPT) in the amount of R$40 million for implementation of the Program for Recovery of Business and Promotion of Educational Activities for residents and workers from the districts affected by the geological phenomenon. The program consists of support for the construction of daycare centers and schools and for administering professional training programs, as well as support for the Civil Defense to hire skilled professionals to continue monitoring the risk areas in the districts affected. With the agreement, the MPT agreed to end the public-interest civil action, releasing Braskem from all claims after the Company makes a judicial deposit of R$40 million, which will be done within 10 business days as from ratification of the agreement by the judge, what occurred on March 3, 2020. | |||
Technical Cooperation Agreement [Member] | Alagoas State Federal Prosecution Office (MPF-AL) [Member] | ||||
DisclosureOfGeologicalPhenomenonAlagoasLineItems [Line Items] | ||||
Description of reparation for social-environmental | Public-Interest Civil Action against Braskem and other defendants seeking approximately R$28.7 billion for social, environmental and property damages, as well as various other corrective and environmental compliance measures, safety plans and the suspension of the Company’s government benefits. In the preliminary injunction phase, the following main claims were made: (i) the accrual of an own private fund in the initial amount of R$3.1 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$2 billion or, after the financial schedule is approved, an amount equivalent to 100% of the expenses projected for the subsequent 12-month period; (ii) the presentation of guarantees in the amount of R$R$20,5 billion; (iii) a prohibition on the encumbrance or divestment of any of the Company’s fixed assets and on the distribution of profits; (iv) a court-ordered freeze of any profits not distributed as of the date hereof; and (v) a suspension of financing with the Brazilian Development Bank (BNDES) and of government incentives, as well as on the prepayment of financial transactions with the BNDES. |
27 Benefits offered to team m_3
27 Benefits offered to team members (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | R$ 422013 | R$ 390848 | R$ 331760 |
Health Care [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 181,466 | 162,338 | 140,553 |
Private Pension [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 90,687 | 84,525 | 67,008 |
Transport [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 67,761 | 64,714 | 58,825 |
Feeding [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 35,677 | 33,537 | 30,916 |
Life Insurance [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 7,997 | 5,964 | |
Training [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | 26,261 | 27,463 | 18,285 |
Other [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Short-term benefits | R$ 12164 | R$ 12307 | R$ 16173 |
27 Benefits offered to team m_4
27 Benefits offered to team members (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [line items] | ||||
Total obligations | R$ 470417 | R$ 274366 | R$ 240190 | R$ 201516 |
Fair value of plan assets | (81,342) | (67,993) | R$ 46415 | R$ 39380 |
Consolidated net balance (non-current liabilities) | 389,075 | 206,373 | ||
Novamont Braskem America [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Fair value of plan assets | (79,784) | (66,073) | ||
Braskem Alemanha [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Fair value of plan assets | (1,558) | (1,842) | ||
Defined Benefit [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 245,565 | 183,609 | ||
Defined Benefit [Member] | Novamont Braskem America [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 80,593 | 68,904 | ||
Defined Benefit [Member] | Braskem Alemanha And Netherlands [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 153,564 | 114,705 | ||
Defined Benefit [Member] | Braskem Idsea [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | 11,408 | |||
Health Care Plan [Member] | Bradesco Saude [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Total obligations | R$ 224852 | R$ 90679 |
27 Benefits offered to team m_5
27 Benefits offered to team members (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefits Offered To Team Members | |||
Balance at beginning of year | R$ 274366 | R$ 240190 | R$ 201516 |
Health care | 5,817 | 7,446 | 11,334 |
Current service cost | 8,233 | 5,842 | 5,058 |
Interest cost | 14,796 | 4,906 | 4,139 |
Benefits paid | (4,677) | (3,845) | (3,399) |
Change plan | 4,948 | 1,391 | |
Actuarial losses (gain) | 161,250 | (3,713) | 9,661 |
Exchange variation | 5,684 | 22,149 | 11,881 |
Balance at the end of the year | R$ 470417 | R$ 274366 | R$ 240190 |
27 Benefits offered to team m_6
27 Benefits offered to team members (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefits Offered To Team Members | |||
Balance at beginning of year | R$ 67993 | R$ 46415 | R$ 39380 |
Actual return on plan assets | 14,329 | (3,200) | 5,115 |
Employer contributions | 285 | 20,544 | 4,069 |
Benefits paid | (3,966) | (3,712) | (2,915) |
Exchange variation | 2,701 | 7,868 | 766 |
Balance at the end of the year | R$ 81342 | R$ 67993 | R$ 46415 |
27 Benefits offered to team m_7
27 Benefits offered to team members (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefits Offered To Team Members | |||
Health care | R$ 5817 | R$ 7446 | R$ 11334 |
Current service cost | 8,233 | 5,842 | 5,058 |
Interest cost | 14,796 | 4,906 | 4,139 |
Actuarial losses | 2,077 | 6,041 | |
Amounts recognized in profit and loss | R$ 28846 | R$ 20271 | R$ 26572 |
27 Benefits offered to team m_8
27 Benefits offered to team members (Details 5) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Health Insurance [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 3.60% | 5.03% | 5.45% |
Inflation rate | 4.00% | 4.50% | 4.50% |
Expected return on plan assets | |||
Aging factor | 2.50% | 2.50% | 2.50% |
Medical inflation | 3.50% | 3.50% | 3.50% |
Duration | 15.32% | 19.66% | 18.84% |
United States Of America [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 3.35% | 4.45% | 3.70% |
Germany [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 2.00% | 2.00% | 2.00% |
Inflation rate | 2.00% | 2.00% | |
Rate of increase in future salary levels | 3.00% | 3.00% | 2.50% |
Rate of increase in future pension plan | 1.75% | 1.75% | 1.75% |
Netherlands [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 2.00% | 2.00% | 2.00% |
Inflation rate | 2.00% | 2.00% | |
Rate of increase in future salary levels | 3.00% | 3.00% | 2.50% |
Rate of increase in future pension plan | 1.75% | 1.75% | 1.75% |
Mexico [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate | 7.25% | ||
Inflation rate | 4.00% | ||
Rate of increase in future salary levels | 5.00% |
27 Benefits offered to team m_9
27 Benefits offered to team members (Details 6) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Discount Rate [Member] | Health Insurance [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 27923 |
Premise reduction | R$ 34866 |
Discount Rate [Member] | United States Of America [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 8999 |
Premise reduction | R$ 11012 |
Discount Rate [Member] | Mexico [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 1040 |
Premise reduction | R$ 1246 |
Discount Rate [Member] | Germany [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.50% |
Premise increase | R$ 15037 |
Premise reduction | R$ 16701 |
Discount Rate [Member] | Netherlands [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.50% |
Premise increase | R$ 766 |
Premise reduction | R$ 852 |
Rate Of Increase In Future Salary Levels [Member] | Germany [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.50% |
Premise increase | R$ 9033 |
Premise reduction | R$ 8519 |
Rate Of Increase In Future Salary Levels [Member] | Netherlands [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.50% |
Premise increase | R$ 460 |
Premise reduction | R$ 434 |
Rate Of Increase In Future Pension Plan [Member] | Health Insurance [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 5559 |
Premise reduction | R$ 5559 |
Rate Of Increase In Future Pension Plan [Member] | Germany [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.25% |
Premise increase | R$ 4452 |
Premise reduction | R$ 4320 |
Rate Of Increase In Future Pension Plan [Member] | Netherlands [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 0.25% |
Premise increase | R$ 227 |
Premise reduction | R$ 220 |
Life Expectancy [Member] | Health Insurance [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 1.00% |
Premise increase | R$ 42480 |
Premise reduction | (33,494) |
Life Expectancy [Member] | Germany [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise increase | 3,819 |
Premise reduction | (3,986) |
Life Expectancy [Member] | Netherlands [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise increase | 195 |
Premise reduction | R$ 203 |
Mortality Rate [Member] | United States Of America [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change | 10.00% |
Premise increase | R$ 2554 |
Premise reduction | R$ 2814 |
27 Benefits offered to team _10
27 Benefits offered to team members (Details 7) R$ in Thousands | Dec. 31, 2019BRL (R$) |
Discount Rate [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 739 |
Premise increase, interest costs | 157 |
Premise reduction, cost of services | (967) |
Premise reduction, interest costs | R$ 41 |
Life Expectancy [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 614 |
Premise increase, interest costs | 3,290 |
Premise reduction, cost of services | (511) |
Premise reduction, interest costs | R$ 2594 |
Rate Of Increase In Future Pension Plan [Member] | |
Disclosure of defined benefit plans [line items] | |
Premise change, cost of services | 1.00% |
Premise change, interest costs | 1.00% |
Premise increase, cost of services | R$ 116 |
Premise increase, interest costs | 430 |
Premise reduction, cost of services | (116) |
Premise reduction, interest costs | R$ 430 |
27 Benefits offered to team _11
27 Benefits offered to team members (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfBenefitsOfferedToTeamMembersLineItems [Line Items] | |||
Fair value, net of taxes | R$ 13573 | R$ 6406 | |
Contributions made by sponsors | 285 | 20,544 | R$ 4069 |
Contributions made by the participants | 5,550 | 5,725 | |
Employee contributions participants | R$ 72970 | 69,058 | |
Braskem America [Member] | |||
DisclosureOfBenefitsOfferedToTeamMembersLineItems [Line Items] | |||
Preferred shares (In Dollars Par shares) | R$ 53.75 | ||
Contributions made by sponsors | R$ 38 | 171 | |
Contributions made by the participants | 38 | 172 | |
Employee no contributions | 0 | 20,544 | |
Braskem Alemanha ("Germany") [Member] | |||
DisclosureOfBenefitsOfferedToTeamMembersLineItems [Line Items] | |||
Contributions made by the participants | 158 | 152 | |
Braskem Holanda ("Netherlands") [Member] | |||
DisclosureOfBenefitsOfferedToTeamMembersLineItems [Line Items] | |||
Contributions made by the participants | 8 | 6 | |
Subsidiary Braskem Idesa [Member] | |||
DisclosureOfBenefitsOfferedToTeamMembersLineItems [Line Items] | |||
Contributions made by the participants | 823 | 821 | |
Employee no contributions | R$ 2056 | R$ 2343 |
28 Other financial liabilities
28 Other financial liabilities (Details Narrative) R$ in Thousands | Jun. 30, 2019BRL (R$) |
Agreement [Member] | |
DisclosureOfOtherFinancialLiabilitiesLineItems [Line Items] | |
Other financial liabilities | R$ 499999 |
29 Equity (Details)
29 Equity (Details) | Dec. 31, 2019shares | |
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 797,218,554 | |
Percent of shares outstanding | 100.00% | |
Treasury Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 1,226,599 | |
Percent of shares outstanding | 0.15% | |
Odebrecht [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 305,517,121 | |
Percent of shares outstanding | 38.33% | |
Petrobras [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 288,188,691 | |
Percent of shares outstanding | 36.15% | |
Total [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 795,991,955 | |
Percent of shares outstanding | 99.85% | |
ADR [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 33,984,766 | [1] |
Percent of shares outstanding | 4.26% | [1] |
Alaska [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 21,898,500 | |
Percent of shares outstanding | 2.75% | |
Other [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 146,402,877 | |
Percent of shares outstanding | 18.36% | |
Common Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 451,668,652 | |
Percent of shares outstanding | 100.00% | |
Common Shares [Member] | Odebrecht [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 226,334,623 | |
Percent of shares outstanding | 50.11% | |
Common Shares [Member] | Petrobras [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 212,426,952 | |
Percent of shares outstanding | 47.03% | |
Common Shares [Member] | Other [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 12,907,077 | |
Percent of shares outstanding | 2.86% | |
Common Shares [Member] | Total [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 451,668,652 | |
Percent of shares outstanding | 100.00% | |
Class A Preferred Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 345,049,672 | |
Percent of shares outstanding | 100.00% | |
Class A Preferred Shares [Member] | Treasury Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 1,226,599 | |
Percent of shares outstanding | 0.36% | |
Class A Preferred Shares [Member] | Odebrecht [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 79,182,498 | |
Percent of shares outstanding | 22.95% | |
Class A Preferred Shares [Member] | Petrobras [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 75,761,739 | |
Percent of shares outstanding | 21.96% | |
Class A Preferred Shares [Member] | Other [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 132,995,570 | |
Percent of shares outstanding | 38.53% | |
Class A Preferred Shares [Member] | Total [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 343,823,073 | |
Percent of shares outstanding | 99.64% | |
Class A Preferred Shares [Member] | ADR [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 33,984,766 | [1] |
Percent of shares outstanding | 9.85% | [1] |
Class A Preferred Shares [Member] | Alaska [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 21,898,500 | |
Percent of shares outstanding | 6.35% | |
Class B Preferred Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 500,230 | |
Percent of shares outstanding | 100.00% | |
Class B Preferred Shares [Member] | Other [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 500,230 | |
Percent of shares outstanding | 100.00% | |
Class B Preferred Shares [Member] | Total [Member] | ||
Disclosure of classes of share capital [line items] | ||
Shares outstanding | 500,230 | |
Percent of shares outstanding | 100.00% | |
[1] | American Depositary Receipts traded on the New York Stock Exchange (USA). |
29 Equity (Details 1)
29 Equity (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | R$ 6188922 | R$ 5643467 | R$ 6870460 | |
Additional indexation | ||||
Realization by depreciation or write-off assets | (40,481) | (40,481) | (40,678) | |
Income tax and social contribution | 13,764 | 13,764 | 13,831 | |
Deemed cost of jointly-controlled investment | ||||
Realization by depreciation or write-off assets | (1,338) | (1,458) | (1,459) | |
Income tax and social contribution | 455 | 496 | 496 | |
Fair value adjustments | ||||
Accounts receivable | 15 | (449) | ||
Foreign sales hedge | ||||
Exchange rate | (391,262) | (3,129,176) | 75,672 | |
Transfer to result | 1,652,267 | 1,259,352 | 1,186,526 | |
Income tax and social contribution | (399,464) | 645,870 | (403,691) | |
Fair value of Cash flow hedge | ||||
Change in fair value | (15,928) | (189,068) | 883,149 | |
Transfer to result | 71,202 | 37,350 | (277,944) | |
Income tax and social contribution | (19,805) | 54,481 | (203,187) | |
Fair value of cash flow hedge from jointly-controlled (RPR) | (978) | (2,329) | 3,534 | |
Actuarial loss with post-employment benefits, net of taxes | (109,492) | (1,569) | (8,654) | |
ILP Plan fair value | ||||
Change in fair value | 19,763 | 9,430 | ||
Income tax and social contribution | (5,842) | (2,891) | ||
Foreign currency translation adjustment | 136,722 | 801,223 | (602) | |
(Loss) investment gains | (84) | |||
Effect of CPC 42 / IAS 29 - hyperinflation | (3,561) | |||
Ending balance | (5,282,969) | (6,188,922) | (5,643,467) | |
Deemed Cost and Additional Indexation Of PP&E [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [1] | 151,214 | 178,893 | 206,703 |
Additional indexation | ||||
Realization by depreciation or write-off assets | [1] | (40,481) | (40,481) | (40,678) |
Income tax and social contribution | [1] | 13,764 | 13,764 | 13,831 |
Deemed cost of jointly-controlled investment | ||||
Realization by depreciation or write-off assets | [1] | (1,338) | (1,458) | (1,459) |
Income tax and social contribution | [1] | 455 | 496 | 496 |
ILP Plan fair value | ||||
Ending balance | [1] | 123,614 | 151,214 | 178,893 |
Fair Value Adjustments of Trade Accounts Recivable [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [2] | 5,957 | ||
Fair value adjustments | ||||
Accounts receivable | [2] | 15 | (449) | |
ILP Plan fair value | ||||
Change in fair value | [2] | 19,415 | 9,297 | |
Income tax and social contribution | [2] | (5,842) | (2,891) | |
Ending balance | [2] | 19,545 | 5,957 | |
Gain (Loss) On Interest In Subsidiary [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [3] | (9,469) | (9,404) | (9,404) |
ILP Plan fair value | ||||
(Loss) investment gains | [3] | (65) | ||
Ending balance | [3] | (9,469) | (9,469) | (9,404) |
Foreign Sales Hedge [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [4] | (7,626,515) | (6,358,242) | (7,105,377) |
Foreign sales hedge | ||||
Exchange rate | [4] | (507,464) | (3,133,346) | (42,507) |
Transfer to result | [4] | 1,585,480 | 1,200,209 | 1,145,602 |
Income tax and social contribution | [4] | (344,567) | 664,864 | (355,960) |
ILP Plan fair value | ||||
Ending balance | [4] | (6,893,066) | (7,626,515) | (6,358,242) |
Fair Value Of Hedge [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [4] | (257,508) | (145,267) | (539,518) |
Fair value of Cash flow hedge | ||||
Change in fair value | [4] | 7,150 | (196,790) | 876,636 |
Transfer to result | [4] | 54,450 | 26,964 | (287,576) |
Income tax and social contribution | [4] | (21,703) | 59,914 | (198,343) |
Fair value of cash flow hedge from jointly-controlled (RPR) | [4] | (978) | (2,329) | 3,534 |
ILP Plan fair value | ||||
Ending balance | [4] | (218,589) | (257,508) | (145,267) |
Defined Benefit Plans Actuarial Gain (Loss) [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [5] | (53,574) | (52,005) | (43,351) |
Fair value of Cash flow hedge | ||||
Actuarial loss with post-employment benefits, net of taxes | [5] | (109,492) | (1,569) | (8,654) |
ILP Plan fair value | ||||
Ending balance | [5] | (163,066) | (53,574) | (52,005) |
Foreign Currency Translation Adjustment [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | [6] | 2,166,875 | 1,220,533 | 1,169,088 |
ILP Plan fair value | ||||
Foreign currency translation adjustment | [6] | 220,228 | 946,342 | 51,445 |
(Loss) investment gains | [6] | (50) | ||
Effect of CPC 42 / IAS 29 - hyperinflation | [6] | (3,561) | ||
Ending balance | [6] | 2,383,492 | 2,166,875 | 1,220,533 |
Total Braskem Shareholders Interest [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | (5,623,020) | (5,165,492) | (6,321,859) | |
Additional indexation | ||||
Realization by depreciation or write-off assets | (40,481) | (40,481) | (40,678) | |
Income tax and social contribution | 13,764 | 13,764 | 13,831 | |
Deemed cost of jointly-controlled investment | ||||
Realization by depreciation or write-off assets | (1,338) | (1,458) | (1,459) | |
Income tax and social contribution | 455 | 496 | 496 | |
Fair value adjustments | ||||
Accounts receivable | 15 | (449) | ||
Foreign sales hedge | ||||
Exchange rate | (507,464) | (3,133,346) | (42,507) | |
Transfer to result | 1,585,480 | 1,200,209 | 1,145,602 | |
Income tax and social contribution | (344,567) | 664,864 | (355,960) | |
Fair value of Cash flow hedge | ||||
Change in fair value | 7,150 | (196,790) | 876,636 | |
Transfer to result | 54,450 | 26,964 | (287,576) | |
Income tax and social contribution | (21,703) | 59,914 | (198,343) | |
Fair value of cash flow hedge from jointly-controlled (RPR) | (978) | (2,329) | 3,534 | |
Actuarial loss with post-employment benefits, net of taxes | (109,492) | (1,569) | (8,654) | |
ILP Plan fair value | ||||
Change in fair value | 19,415 | 9,297 | ||
Income tax and social contribution | (5,842) | (2,891) | ||
Foreign currency translation adjustment | 220,228 | 946,342 | 51,445 | |
(Loss) investment gains | (50) | (65) | ||
Effect of CPC 42 / IAS 29 - hyperinflation | (3,561) | |||
Ending balance | (4,757,539) | (5,623,020) | (5,165,492) | |
Non-controlling Interest In Braskem Idesa [Member] | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||
Beginning balance | (565,902) | (477,975) | (548,601) | |
Foreign sales hedge | ||||
Exchange rate | 116,202 | 4,170 | 118,179 | |
Transfer to result | 66,787 | 59,143 | 40,924 | |
Income tax and social contribution | (54,897) | (18,994) | (47,731) | |
Fair value of Cash flow hedge | ||||
Change in fair value | (23,078) | 7,722 | 6,513 | |
Transfer to result | 16,752 | 10,386 | 9,632 | |
Income tax and social contribution | 1,898 | (5,433) | (4,844) | |
ILP Plan fair value | ||||
Change in fair value | 348 | 133 | ||
Foreign currency translation adjustment | (83,506) | (145,119) | (52,047) | |
(Loss) investment gains | (34) | 65 | ||
Ending balance | R$ 525430 | R$ 565902 | R$ 477975 | |
[1] | Transfer to retained earnings as the asset is depreciated or written-off/sold. | |||
[2] | For receivables classified as fair value through other comprehensive income, transfer to the income statement when attainment of jurisdiction or early liquidation. For the ILP Plan, Transfer to retained earnings according to the grace period of the plan. | |||
[3] | Transfer to the income statement when divestment or transfer of control of subsidiary. | |||
[4] | Transfer to the income statement when maturity, prepayment or loss of efficacy for hedge accounting. | |||
[5] | Transfer to retained earnings when the extinction of the plan. | |||
[6] | Transfer to the income statement when write-off of subsidiary abroad. |
29 Equity (Details Narrative)
29 Equity (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Subscribed capital | R$ 8043222 | R$ 8043222 |
Paid up capital stock | 797,218,554 | |
Description of transfer of profit to 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. | |
Capital reserve | R$ 232472 | R$ 232430 |
Payment of dividends | 667,419 | |
Retained Earnings [Member] | ||
Absorption of losses and adjustments | 2,767,965 | |
Capital reserve | 1,174,301 | |
Payment of dividends | 2,002,255 | |
Treasury Shares [Member] | LTI Program For Employees [Member] | ||
Issue of shares | R$ 8159 |
30 Earnings per share (Details)
30 Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | |||
(Loss) profit for the year attributed to Company's shareholders of continued operations | R$ 2540995 | R$ 2827650 | R$ 3856564 |
Distribution of 6% of unit price of common shares | 273,840 | 273,827 | |
Distribution of excess profits, by class | 2,345,057 | 3,373,970 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 2540995 | R$ 2827650 | R$ 3856564 |
Weighted average number of shares, by class (denominator) | 795,989,044 | 795,990,011 | 796,022,846 |
Common Shares [Member] | |||
Earnings per share [line items] | |||
Distribution of excess profits, by class | R$ 1331513 | R$ 1915805 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 1441839 | R$ 1605353 | R$ 2189632 |
Weighted average number of shares, by class (denominator) | 451,668,652 | 451,668,652 | 451,668,652 |
(Loss) earnings per share (in R$) | R$ 3.1922 | R$ 3.5543 | R$ 4.8479 |
Class A Preferred Shares [Member] | |||
Earnings per share [line items] | |||
Distribution of priority dividends attributable to | R$ 208450 | R$ 208416 | |
Distribution of excess profits, by class | 1,013,544 | 1,458,165 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 1097559 | R$ 1221994 | R$ 1666581 |
Weighted average number of shares, by class (denominator) | 343,820,162 | 343,808,699 | 343,775,864 |
(Loss) earnings per share (in R$) | R$ 3.1922 | R$ 3.5543 | R$ 4.8479 |
Class B Preferred Shares [Member] | |||
Earnings per share [line items] | |||
Distribution of priority dividends attributable to | R$ 303 | R$ 351 | |
Reconciliation of income available for distribution, by class (numerator) | R$ 1597 | R$ 303 | R$ 351 |
Weighted average number of shares, by class (denominator) | 500,230 | 512,660 | 578,330 |
(Loss) earnings per share (in R$) | R$ 3.1922 | R$ 0.591 | R$ 0.6069 |
30 Earnings per share (Details
30 Earnings per share (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [line items] | ||
Incentive long term plan payments with treasury shares | R$ 95 | |
Class B Preferred Shares [Member] | ||
Earnings per share [line items] | ||
Beginning balance | 500,230 | 578,330 |
Conversion of preferred shares class "B" to "A" | (78,100) | |
Ending balance | 500,230 | |
Class B Preferred Shares [Member] | Weighted Average [Member] | ||
Earnings per share [line items] | ||
Beginning balance | 512,660 | 578,330 |
Conversion of preferred shares class "B" to "A" | (65,670) | |
Ending balance | 512,660 | |
Class A Preferred Shares [Member] | ||
Earnings per share [line items] | ||
Beginning balance | 343,814,914 | 343,775,864 |
Incentive long term plan payments with treasury shares | R$ 8159 | |
Conversion of preferred shares class "B" to "A" | 39,050 | |
Ending balance | 343,823,073 | 343,814,914 |
Class A Preferred Shares [Member] | Weighted Average [Member] | ||
Earnings per share [line items] | ||
Beginning balance | 343,808,699 | 343,775,864 |
Incentive long term plan payments with treasury shares | R$ 5248 | |
Conversion of preferred shares class "B" to "A" | 32,835 | |
Ending balance | 343,820,162 | 343,808,699 |
31 Net revenues (Details)
31 Net revenues (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 52323525 | R$ 57999866 | R$ 49260594 |
Sales revenue [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 62,284,161 | 68,663,320 | 58,184,041 |
Sales revenue [Member] | Domestic Market [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 38,333,817 | 42,144,075 | 34,947,727 |
Sales revenue [Member] | Domestic Market [Member] | Revenue [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 38,391,132 | 42,189,365 | 34,983,265 |
Sales revenue [Member] | Domestic Market [Member] | Rebates [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (57,315) | (45,290) | (35,538) |
Sales revenue [Member] | Foreign market [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 23,950,344 | 26,519,245 | 23,236,314 |
Sales revenue [Member] | Foreign market [Member] | Revenue [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 23,998,067 | 26,577,433 | 23,297,304 |
Sales revenue [Member] | Foreign market [Member] | Rebates [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (47,723) | (58,188) | (60,990) |
Sales and services deductions [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (9,960,636) | (10,663,454) | (8,923,447) |
Sales and services deductions [Member] | Domestic Market [Member] | Taxes | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (9,704,712) | (10,219,138) | (8,663,707) |
Sales and services deductions [Member] | Domestic Market [Member] | Sales returns | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (138,749) | (148,918) | (125,153) |
Sales and services deductions [Member] | Foreign market [Member] | Taxes | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | (31,427) | (36,562) | (33,798) |
Sales and services deductions [Member] | Foreign market [Member] | Sales returns | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 85748 | R$ 258836 | R$ 100789 |
31. Net revenues (Details 1)
31. Net revenues (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 52323525 | R$ 57999866 | R$ 49260594 |
BRAZIL | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 28,523,327 | 31,801,222 | 26,147,559 |
UNITED STATES [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 9,416,558 | 9,887,701 | 8,539,972 |
MEXICO | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,335,198 | 4,168,140 | 3,408,385 |
Singapore | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 1,162,432 | 756,069 | 542,866 |
Germany | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 1,157,431 | 1,385,482 | 1,192,287 |
Argentina | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 1,104,044 | 1,166,191 | 1,336,440 |
Switzerland | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 759,189 | 315,254 | 415,729 |
Italy | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 690,422 | 650,605 | 604,546 |
Chile | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 610,454 | 686,646 | 554,237 |
Peru | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 551,967 | 540,495 | 493,654 |
China | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 542,209 | 884,233 | 692,558 |
Luxembourg | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 526,768 | 546,524 | 247,007 |
Netherlands | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 516,409 | 293,315 | 333,134 |
United Kingdom | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 359,937 | 366,328 | 202,830 |
Uruguay | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 359,049 | 155,571 | 122,251 |
Spain | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 344,433 | 329,458 | 282,854 |
Sweden | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 296,601 | 270,062 | 256,911 |
South Korea | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 279,900 | 314,517 | 339,430 |
Japan | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 240,579 | 245,208 | 126,956 |
Bolivia | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 231,848 | 250,048 | 163,862 |
France | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 225,986 | 135,094 | 166,314 |
Canada | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 201,635 | 290,453 | 235,612 |
Poland | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 200,563 | 260,449 | 231,716 |
Colombia | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 200,370 | 363,497 | 340,396 |
Paraguay | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 194,859 | 214,959 | 174,783 |
Taiwan | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 191,593 | 274,566 | 301,692 |
Belgium | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 179,648 | 122,230 | 324,222 |
Ecuador | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 119,070 | 313,857 | 316,134 |
Other [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 801046 | R$ 1011692 | R$ 1166258 |
31 Net revenues (Details 2)
31 Net revenues (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 52323525 | R$ 57999866 | R$ 49260594 |
PE/PP [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 34,287,597 | 37,979,148 | 33,105,714 |
Ethylene, Propylene [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 3,743,581 | 4,283,709 | 3,351,805 |
PVC/Caustic Soda/EDC | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,692,778 | 3,167,390 | 3,066,879 |
Benzene, toluene and xylene [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,503,667 | 2,785,400 | 2,683,406 |
ETBE/Gasoline [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 2,319,253 | 2,928,993 | 2,433,360 |
Butadiene [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 1,609,264 | 2,023,465 | 1,819,387 |
Cumene [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 723,469 | 909,409 | 578,482 |
Naphtha, condensate and crude oil [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 505,804 | 476,311 | 135,165 |
Solvents [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | 676,044 | 248,313 | 401,455 |
Other [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net revenue | R$ 3262068 | R$ 3197728 | R$ 1684941 |
31 Net revenues (Details Narrat
31 Net revenues (Details Narrative) - One Client [Member] | 12 Months Ended |
Dec. 31, 2019 | |
RevenueLineItems [Line Items] | |
Percentage of entity's revenue | 10.00% |
Chemicals [Member] | |
RevenueLineItems [Line Items] | |
Percentage of entity's revenue | 2.40% |
32 Tax incentives (Details Narr
32 Tax incentives (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Tax Incentives | ||
Percentage of tax reduction | 75.00% | |
Realization period | 10 years | |
ICMS tax incentives | R$ 67796 | R$ 81863 |
33 Other income (expenses), n_3
33 Other income (expenses), net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | R$ 2038508 | R$ 472509 | R$ 854880 | |
PIS and COFINS credits - exclusion of ICMS from the calculation basis [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 1,904,206 | 235,919 | ||
Fine on supply contract of raw material, net [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | [1] | 375,020 | 386,020 | |
Insurance indemnity [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 18,286 | 100,876 | ||
Fixed assets disposal results [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 11,140 | 93,814 | ||
Tax Credits recovery [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 3,094 | 46,179 | ||
Provision - geological event in Alagoas [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (3,383,067) | |||
Expenses from fixed assets [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (158,320) | (44,420) | (205,929) | |
Recovery of environmental damages [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (141,536) | (89,396) | (102,466) | |
Allowance for judicial and labor claims [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (136,135) | (83,280) | (119,919) | |
Programmed stop in plants [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (108,192) | (91,380) | ||
Fine on sales contracts [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (104,179) | (49,487) | ||
Other Expenses [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (415,513) | (196,750) | (366,024) | |
Other [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 96,688 | 164,414 | 38,118 | |
Capital gain - sale of Quantiq [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 276,816 | |||
Leniency Agreement [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | (375,476) | |||
Other Income [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | 2,408,434 | 1,027,222 | 314,934 | |
Total Other Expenses [Member] | ||||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||||
Other income (expenses), net | R$ 4446942 | R$ 554713 | R$ 1169814 | |
[1] | The contractual penalty charged from a supplier for failing to supply feedstock to the subsidiary Braskem Idesa is R$335,281 (R$338,125 in 2018). |
33 Other income (expenses), n_4
33 Other income (expenses), net (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Braskem Idsea [Member] | ||
DisclosureOfOtherIncomeExpensesNetLineItems [Line Items] | ||
Contractual penalty | R$ 335281 | R$ 338125 |
34 Financial results (Details)
34 Financial results (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | R$ 850554 | R$ 589052 | R$ 603630 |
Financial expenses | (3,882,785) | (3,007,551) | (3,747,217) |
Exchange rate variations, net | (1,724,520) | (2,256,983) | (798,762) |
Finance income (cost) | (4,756,751) | (4,675,482) | (3,942,349) |
Interest income [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | 708,542 | 530,007 | 512,051 |
Other Financial Expenses [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (426,171) | (362,072) | (849,461) |
Interest expenses [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | 2,191,765 | 2,084,780 | 2,219,503 |
Monetary variations on fiscal debts [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (232,612) | 33,429 | (191,101) |
Customer discounts granted [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | 80,404 | (141,223) | (137,389) |
Loans transaction costs [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (465,000) | 89,982 | 64,771 |
Adjustment to present value [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (348,930) | (296,065) | (284,992) |
Interest expense on leases [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial expenses | (137,903) | ||
Financial assets [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Exchange rate variations, net | (31,137) | 1,268,741 | 216,381 |
Financial liabilities [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Exchange rate variations, net | (1,693,383) | (3,525,724) | (1,015,143) |
Other Financial Income [Member] | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Financial income | R$ 142012 | R$ 59045 | R$ 91579 |
35 Expenses by nature and fun_3
35 Expenses by nature and function (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | R$ 1687700 | ||
Nature [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (52,180,060) | R$ 49718760 | R$ 40093624 |
Nature [Member] | Raw materials other inputs [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (37,380,310) | (38,889,949) | (29,364,996) |
Nature [Member] | Personnel expenses [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (3,004,762) | (2,412,118) | (2,173,640) |
Nature [Member] | Outsourced services [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (3,242,373) | (2,306,048) | (2,120,001) |
Nature [Member] | Depreciation, amortization and depletion [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (3,632,265) | (2,990,577) | (2,928,855) |
Nature [Member] | Freights [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (2,204,453) | (2,275,375) | (2,058,574) |
Nature [Member] | Costs of idle industrial plants [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 309,742 | 138,242 | 67,593 |
Nature [Member] | Provision - geological event in Alagoas [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (3,383,067) | ||
Nature [Member] | PIS and COFINS credits - exclusion of ICMS from the calculation basis [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 1,904,206 | ||
Nature [Member] | Other income [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 927,294 | 706,451 | (1,004,489) |
Nature [Member] | Leniency Agreement [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (375,476) | ||
Function [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (52,180,060) | (49,718,760) | (40,093,624) |
Function [Member] | Other income [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 2,408,434 | 1,027,222 | (314,934) |
Function [Member] | Cost of products sold [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (45,879,118) | (46,576,657) | (36,177,408) |
Function [Member] | Selling and distribution [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (1,783,455) | (1,689,179) | (1,446,153) |
Function [Member] | (Loss) reversals for impairment of trade accounts receivable [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (7,069) | (87,008) | 13,455 |
Function [Member] | General and administrative [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | (2,224,180) | (1,793,185) | (1,434,272) |
Function [Member] | Research and development [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | 247,730 | 219,256 | 167,456 |
Function [Member] | Other Expenses [Member] | |||
DisclosureOfExpensesByNatureAndFunctionLineItems [Line Items] | |||
Expenses | R$ 4446942 | R$ 554713 | R$ 1169814 |
36 Segment information (Details
36 Segment information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of operating segments [line items] | |||||
Net sales revenue | R$ 52323525 | R$ 57999866 | R$ 49260594 | ||
Cost of products sold | (45,879,118) | (46,576,657) | (36,177,408) | ||
Gross profit | 6,444,407 | 11,423,209 | 13,083,186 | ||
Selling, general and distribuition expenses | (4,262,434) | (3,614,612) | (3,061,336) | ||
Results from equity investments | 10,218 | (888) | 39,956 | ||
Other operating income (expenses), net | (2,038,508) | 472,509 | (854,880) | ||
Operating profit (loss) | 153,683 | 8,280,218 | 9,206,926 | ||
Reporting segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 64,152,663 | 72,258,188 | 61,351,881 | ||
Cost of products sold | (57,650,833) | (61,214,620) | (48,000,599) | ||
Gross profit | 6,501,830 | 11,043,568 | 13,351,282 | ||
Selling, general and distribuition expenses | (4,083,544) | (3,245,373) | (3,123,950) | ||
Other operating income (expenses), net | (3,759,956) | 312,698 | (531,532) | ||
Operating profit (loss) | (1,341,670) | 8,110,893 | 9,695,800 | ||
Reporting segments [Member] | Chemicals [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 27,172,288 | 31,111,650 | 25,179,288 | ||
Cost of products sold | (25,349,921) | (27,523,702) | (20,478,914) | ||
Gross profit | 1,822,367 | 3,587,948 | 4,700,374 | ||
Selling, general and distribuition expenses | (1,069,867) | (784,450) | (773,396) | ||
Other operating income (expenses), net | (269,363) | (52,006) | (197,275) | ||
Operating profit (loss) | 483,137 | 2,751,492 | 3,729,703 | ||
Reporting segments [Member] | Vinyls [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 2,692,778 | 3,167,390 | 3,066,879 | ||
Cost of products sold | (3,069,301) | (2,908,371) | (2,572,774) | ||
Gross profit | (376,523) | 259,019 | 494,105 | ||
Selling, general and distribuition expenses | (437,153) | (177,344) | (162,989) | ||
Other operating income (expenses), net | (3,673,139) | 8,403 | (163,374) | ||
Operating profit (loss) | (4,486,815) | 90,078 | 167,742 | ||
Reporting segments [Member] | Polyolefins [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 21,191,851 | 22,483,866 | 19,650,398 | ||
Cost of products sold | (18,494,520) | (19,295,855) | (15,432,179) | ||
Gross profit | 2,697,331 | 3,188,011 | 4,218,219 | ||
Selling, general and distribuition expenses | (1,439,229) | (1,328,047) | (1,321,575) | ||
Other operating income (expenses), net | (151,351) | (35,020) | (177,518) | ||
Operating profit (loss) | 1,106,751 | 1,824,944 | 2,719,126 | ||
Reporting segments [Member] | USA and Europe [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 10,044,306 | 11,724,776 | 9,854,496 | ||
Cost of products sold | (8,233,079) | (9,152,847) | (7,419,261) | ||
Gross profit | 1,811,227 | 2,571,929 | 2,435,235 | ||
Selling, general and distribuition expenses | (786,096) | (642,006) | (582,672) | ||
Other operating income (expenses), net | 9,215 | 68,733 | (21,279) | ||
Operating profit (loss) | 1,034,346 | 1,998,656 | 1,831,284 | ||
Reporting segments [Member] | Mexico [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 3,051,440 | 3,770,506 | 3,600,820 | ||
Cost of products sold | (2,504,012) | (2,333,845) | (2,097,471) | ||
Gross profit | 547,428 | 1,436,661 | 1,503,349 | ||
Selling, general and distribuition expenses | (351,199) | (313,526) | (283,318) | ||
Other operating income (expenses), net | 324,682 | 322,588 | 27,914 | ||
Operating profit (loss) | 520,911 | 1,445,723 | 1,247,945 | ||
Other segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 296,286 | 292,435 | 83,720 | ||
Cost of products sold | (188,335) | (173,608) | (65,743) | ||
Gross profit | 107,951 | 118,827 | 17,977 | ||
Selling, general and distribuition expenses | (44,548) | (34,819) | (13,391) | ||
Other operating income (expenses), net | 3,364 | (103) | (2,430) | ||
Operating profit (loss) | 66,767 | 83,905 | 2,156 | ||
Corporate unit [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 265,438 | ||||
Gross profit | 265,438 | ||||
Selling, general and distribuition expenses | (217,958) | (334,420) | (61,384) | ||
Results from equity investments | 10,218 | (888) | 39,956 | ||
Other operating income (expenses), net | 1,775,246 | 159,914 | (320,918) | ||
Operating profit (loss) | 1,567,506 | [1] | 90,044 | (342,346) | [2] |
Braskem consolidated be for eliminations and reclassifications [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | 64,448,949 | 72,816,061 | 61,435,601 | ||
Cost of products sold | (57,839,168) | (61,388,228) | (48,066,342) | ||
Gross profit | 6,609,781 | 11,427,833 | 13,369,259 | ||
Selling, general and distribuition expenses | (4,346,050) | (3,614,612) | (3,198,725) | ||
Results from equity investments | 10,218 | (888) | 39,956 | ||
Other operating income (expenses), net | (1,981,346) | 472,509 | (854,880) | ||
Operating profit (loss) | 292,603 | 8,284,842 | 9,355,610 | ||
Eliminations and reclassifications [Member] | |||||
Disclosure of operating segments [line items] | |||||
Net sales revenue | (12,125,424) | (14,816,195) | (12,175,007) | ||
Cost of products sold | 11,960,050 | (14,811,571) | 11,888,934 | ||
Gross profit | (165,374) | (4,624) | (286,073) | ||
Selling, general and distribuition expenses | 83,616 | 137,389 | |||
Other operating income (expenses), net | (57,162) | ||||
Operating profit (loss) | R$ 138920 | R$ 4624 | R$ 148684 | ||
[1] | Includes the amount of R$1,904,206 related to PIS and COFINS tax credits - exclusion of ICMS from the calculation base (Nota 10(c)). | ||||
[2] | Includes gain from sale of "Chemicals distribution" segment in the amount of R$276,816. |
36 Segment information (Detai_2
36 Segment information (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | R$ 35077269 | R$ 34500872 |
Reporting segments [Member] | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 34,481,755 | 33,947,217 |
Reporting segments [Member] | Chemicals [Member] | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 10,410,524 | 10,916,874 |
Reporting segments [Member] | Polyolefins [Member] | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 5,077,335 | 4,985,337 |
Reporting segments [Member] | Vinyls [Member] | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 2,121,085 | 2,334,270 |
Reporting segments [Member] | USA and Europe [Member] | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 4,852,760 | 3,875,566 |
Reporting segments [Member] | Mexico [Member] | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | 12,020,051 | 11,835,170 |
Unallocated amounts | ||
Disclosure of operating segments [line items] | ||
Property, plant and equipment and intangible assets | R$ 595514 | R$ 553655 |
36 Segment information (Detai_3
36 Segment information (Details Narrative) - Corporate unit [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
PIS and COFINS tax credits | R$ 1904206 | |
Gain from sale | R$ 276816 |
37 Insurance coverage (Details)
37 Insurance coverage (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of types of insurance contracts [line items] | |
Amount insured (US$) | R$ 35830000 |
Amount insured (R$) | R$ 186269000 |
BRAZIL | |
Disclosure of types of insurance contracts [line items] | |
Maturity | October 8, 2021 |
Maximum indemnity limit (US$) | R$ 3500000 |
Maximum indemnity limit (R$) | 18,195,000 |
Amount insured (US$) | 27,962,000 |
Amount insured (R$) | R$ 145364000 |
United States and Germany [Member] | |
Disclosure of types of insurance contracts [line items] | |
Maturity | October 8, 2021 |
Maximum indemnity limit (US$) | R$ 480000 |
Maximum indemnity limit (R$) | 2,495,000 |
Amount insured (US$) | 2,189,000 |
Amount insured (R$) | R$ 11381000 |
MEXICO | |
Disclosure of types of insurance contracts [line items] | |
Maturity | October 8, 2021 |
Maximum indemnity limit (US$) | R$ 2642000 |
Maximum indemnity limit (R$) | 13,735,000 |
Amount insured (US$) | 5,679,000 |
Amount insured (R$) | R$ 29524000 |
38 Subsequent events (Details N
38 Subsequent events (Details Narrative) - BRL (R$) R$ in Thousands | Jun. 20, 2020 | Mar. 31, 2020 | Mar. 19, 2020 | Feb. 14, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Present obligation value | R$ 470417 | R$ 274366 | R$ 240190 | R$ 201516 | |||||
Technical Cooperation Agreement [Member] | Labor Prosecution Office (MPT) [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Present obligation value | R$ 40000 | ||||||||
Events After Reporting Period [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Cash Balance | R$ 3700000 | ||||||||
Revolving Credit Facility | R$ 5200000 | ||||||||
Investment plan | 3,700,000 | ||||||||
Events After Reporting Period [Member] | US$ | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Revolving Credit Facility | 1,000,000 | ||||||||
Investment plan | R$ 721000 | ||||||||
Events After Reporting Period [Member] | Long-Term Incentive Plan ("ILP Plan") [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Description of vesting | The maximum number of shares the Company expects to deliver to the participants of the ILP Program 2020, after the vesting period and subject to compliance with all necessary requirements, is approximately 1,548,000 shares. | ||||||||
Events After Reporting Period [Member] | Technical Cooperation Agreement [Member] | Labor Prosecution Office (MPT) [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Present obligation value | R$ 40000 | ||||||||
Events After Reporting Period [Member] | Naphtha Agreements With Petrobras [Member] | |||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||
Term of aggrement | 5 years |