Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F/A |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | ESTR |
Entity Registrant Name | ESTRE AMBIENTAL, INC. |
Entity Central Index Key | 0001716586 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | No |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Ordinary shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 45,636,732 |
Class B Shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 5,550,000 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | R$ 18862 | R$ 84687 |
Marketable securities | 27 | 42 |
Trade accounts receivable | 501,821 | 669,237 |
Contract asset | 120,308 | |
Inventories | 8,609 | 11,365 |
Taxes recoverable | 98,367 | 101,870 |
Receivables from divestiture | 9,343 | |
Other receivables | 31,960 | 34,947 |
Total current assets before assets held for sale | 789,297 | 902,148 |
Assets held for sale | 81,457 | 6,580 |
Total current assets | 870,754 | 908,728 |
Non-current assets | ||
Marketable securities | 15 | |
Related parties | 2,218 | 14,518 |
Trade accounts receivable | 121,054 | 108,869 |
Taxes recoverable | 31,200 | 52,141 |
Prepaid expenses | 138 | 174 |
Deferred taxes | 44 | |
Other receivables | 20,648 | 14,473 |
Investments | 7,663 | 7,206 |
Property, plant and equipment | 512,065 | 689,451 |
Intangible assets | 58,991 | 588,238 |
Total non-current assets | 753,992 | 1,475,114 |
Total assets | 1,624,746 | 2,383,842 |
Current liabilities | ||
Loans and financing | 601,475 | 14,139 |
Debentures | 966,386 | |
Trade accounts payable | 173,339 | 128,113 |
Provision for landfill closure | 5,613 | 20,651 |
Labor payable | 98,519 | 117,925 |
Tax liabilities | 151,686 | 169,505 |
Related parties | 82,126 | 82,788 |
Advances from customers | 15,041 | 16,492 |
Accounts payable for land and intangible asset acquisition | 5,380 | 8,965 |
Other liabilities | 19,786 | 32,992 |
Current liabilities before discontinued operation | 2,119,351 | 591,570 |
Liabilities directly associated with the assets held for sale | 41,201 | 23,787 |
Total current liabilities | 2,160,552 | 615,357 |
Non-current liabilities | ||
Loans and financing | 26,822 | 371,375 |
Debentures | 1,068,979 | |
Provision for landfill closure | 96,791 | 92,881 |
Provision for legal proceedings | 70,274 | 147,762 |
Tax liabilities | 362,277 | 395,784 |
Deferred taxes | 52,269 | 137,028 |
Accounts payable for land and intangible asset acquisition | 4,804 | 10,412 |
Other liabilities | 167 | 168 |
Total non-current liabilities | 613,404 | 2,224,389 |
Equity | ||
Capital stock | 17 | 17 |
Capital reserve | 1,094,656 | 1,068,195 |
Other comprehensive income | (10) | 1,768 |
Accumulated losses | (2,183,405) | (1,520,751) |
Equity attributable to parent | (1,088,742) | (450,771) |
Non-controlling interest | (60,468) | (5,133) |
Total equity | (1,149,210) | (455,904) |
Total liabilities and equity | R$ 1624746 | R$ 2383842 |
Consolidated Statement of Profi
Consolidated Statement of Profit or Loss - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Continuing operations | |||
Revenue from services rendered | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services | (979,183) | (942,255) | (1,003,748) |
Gross profit | 281,404 | 403,594 | 376,283 |
Operating income (expenses) | |||
General and administrative expenses | (327,286) | (256,532) | (231,050) |
Selling expenses, net | 5,324 | (6,641) | 10,495 |
Share of (loss) profit of an associate | (3,339) | (1,020) | 10,152 |
Other operating expenses, net | (576,506) | (31,125) | (80,551) |
Operating expenses | (901,807) | (295,318) | (290,954) |
(Loss) profit before finance income and expenses | (620,403) | 108,276 | 85,329 |
Finance costs, net | (251,693) | (532,175) | (397,133) |
Finance income | 116,313 | 108,281 | 51,663 |
Loss before income and social contribution taxes | (755,783) | (315,618) | (260,141) |
Current income and social contribution taxes | (41,623) | (17,543) | (54,337) |
(-) Deferred income and social contribution taxes | 76,488 | 371,084 | (49,755) |
(Loss) profit for the year from continuing operations | (720,918) | 37,923 | (364,233) |
Discontinued operations | |||
Profit after income and social contribution tax from discontinued operations | 30,454 | 14,342 | 3,288 |
(Loss) profit for the year | (690,464) | 52,265 | (360,945) |
Attributable to: | |||
Equity holders of the parent | (652,754) | 43,793 | (360,789) |
Non-controlling interests | (37,710) | 8,472 | (156) |
Profit (loss) for the year | R$ 690464 | R$ 52265 | R$ 360945 |
(Loss) earnings per share | |||
-Basic, (loss) profit for the year attributable to equity holders of the parent (in Reais) | R$ 14.3032 | R$ 0.9596 | R$ 7.9057 |
-Diluted, (loss) profit for the year attributable to equity holders of the parent (in Reais) | (13.7076) | 0.9585 | (7.9057) |
(Loss) earnings per share from continuing operations | |||
-Basic, (loss) profit from continuing operations attributable to equity holders of the parent (in Reais) | (14.9299) | 0.6453 | (7.9777) |
-Diluted, (loss) profit from continuing operations attributable to equity holders of the parent (in Reais) | R$ 14.3082 | R$ 0.6446 | R$ 7.9777 |
Consolidated Statement of Other
Consolidated Statement of Other Comprehensive (Loss) Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement [LineItems] | |||
(Loss) profit for the year | R$ 690464 | R$ 52265 | R$ 360945 |
Other comprehensive income to be reclassified to profit or loss for the year in subsequent periods | |||
Currency translation adjustment | (1,778) | 97 | 145 |
Comprehensive (loss) profit for the year | (692,242) | 52,362 | (360,800) |
Attributable to: | |||
Equity holders of the parent | (654,532) | 43,890 | (360,644) |
Non-controlling interests | (37,710) | 8,472 | (156) |
Comprehensive (loss) profit for the year | R$ 692242 | R$ 52362 | R$ 360800 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - BRL (R$) R$ in Thousands | Total | Capital [member] | Additional paid in capital [member] | Share-based payment reserve [member] | Other comprehensive income [member] | Treasury shares [member] | Accumulated losses [member] | Total attributable to shareholders [member] | Non-controlling interests [member] |
Balance, beginning of period at Dec. 31, 2015 | R$ 381129 | R$ 108104 | R$ 734506 | R$ 9151 | R$ 1526 | R$ 37403 | R$ 1203755 | R$ 387871 | R$ 6742 |
Statement [LineItems] | |||||||||
Currency translation adjustment | 145 | 145 | 145 | ||||||
(Loss) profit for the year | (360,945) | (360,789) | (360,789) | (156) | |||||
Options granted | 28,937 | 28,937 | 28,937 | ||||||
Options exercised through cash payments | (24,055) | (24,055) | (24,055) | ||||||
Non-controlling interest | (9) | (9) | |||||||
Balance, end of period at Dec. 31, 2016 | (737,056) | 108,104 | 734,506 | 14,033 | 1,671 | (37,403) | (1,564,544) | (743,633) | 6,577 |
Statement [LineItems] | |||||||||
Currency translation adjustment | 97 | 97 | 97 | ||||||
(Loss) profit for the year | 52,265 | 43,793 | 43,793 | 8,472 | |||||
Options granted | 3,578 | 3,578 | 3,578 | ||||||
Options exercised through cash payments | (14,033) | (14,033) | (14,033) | ||||||
Capital contribution | 387,342 | 17 | 387,325 | 387,342 | |||||
Balance, end of period (Previously stated [member]) at Dec. 31, 2017 | (455,904) | 17 | 1,064,617 | 3,578 | 1,768 | (1,520,751) | (450,771) | (5,133) | |
Balance, end of period at Dec. 31, 2017 | (455,904) | ||||||||
Statement [LineItems] | |||||||||
Recapitalization transaction | (148,097) | (108,104) | (57,214) | R$ 37403 | (127,915) | (20,182) | |||
Currency translation adjustment | (1,778) | ||||||||
(Loss) profit for the year | Restated balance January 1st, 2018 [member] | (690,464) | ||||||||
(Loss) profit for the year | (690,464) | (652,754) | (652,754) | (37,710) | |||||
Currency translation adjustment | 811 | 811 | 811 | ||||||
Currency translation adjustment realization | (2,589) | (2,589) | (2,589) | ||||||
Transaction with shareholders | (10,960) | (10,294) | (10,294) | (666) | |||||
Options granted | 26,461 | 26,461 | 26,461 | ||||||
Non-controlling interest | (16,984) | (16,984) | |||||||
Balance, end of period (Increase (decrease) due to changes in accounting policy required by IFRSs at January 1st, 2018 [member]) at Dec. 31, 2018 | 419 | 394 | 394 | 25 | |||||
Balance, end of period (Restated balance January 1st, 2018 [member]) at Dec. 31, 2018 | (455,485) | 17 | 1,064,617 | 3,578 | 1,768 | (1,520,357) | (450,377) | (5,108) | |
Balance, end of period at Dec. 31, 2018 | R$ 1149210 | R$ 17 | R$ 1064617 | R$ 30039 | R$ 10 | R$ 2183405 | R$ 1088742 | R$ 60468 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
(Loss) profit after tax from continuing operations | R$ 720918 | R$ 37923 | R$ 364233 |
(Loss) profit after tax from discontinued operations | 30,454 | 14,342 | 3,288 |
(Loss) profit for the year | (690,464) | 52,265 | (360,945) |
Adjustments to reconcile profit (loss) for the year to net cash flows: | |||
Depreciation, amortization and depletion | 135,468 | 137,045 | 164,623 |
Allowance for doubtful accounts | (10,512) | 1,906 | (12,843) |
Residual value on disposal of PP&E/intangible assets | 76,086 | 22,701 | 3,694 |
Share of (loss) profit of an associate | 3,339 | 1,020 | (10,152) |
Gain on sale of investments (See Note 27) | (56,675) | ||
Goodwill and PP&E impairment | 547,689 | 37,185 | 44,790 |
Provision for income and social contribution taxes | 41,623 | 18,263 | 55,435 |
Deferred income and social contribution taxes | (76,488) | (371,084) | 49,755 |
Additions to provision for legal proceedings, net of reversals | (22,978) | 56,438 | 49,316 |
Changes in fair value of call option | 20,865 | ||
Remeasurement of previously held interest in Catanduva | (724) | ||
Accrual of monetary variation, financial charges and interest | 116,179 | 380,156 | 297,356 |
Stock option plan | 26,461 | 3,578 | 28,937 |
Working capital adjustments: | |||
Trade accounts receivable | 41,741 | (87,788) | (192,109) |
Taxes recoverable | 37,393 | (24,929) | 3,646 |
Inventories | 2,756 | (2,618) | (631) |
Advances to suppliers | (601) | (1,296) | 3,686 |
Prepaid expenses | 1,074 | 3,267 | 261 |
Other receivables | (6,019) | (77) | 39,227 |
Trade accounts payable | 44,950 | 19,139 | 11,962 |
Labor payable | (18,909) | 10,239 | 9,327 |
Tax liabilities | (90,217) | 27,263 | 5,617 |
Provision for legal proceedings | (21,136) | (10,794) | (6,546) |
Other | (34,703) | (1,990) | 17,173 |
Related parties | 1,318 | (25,872) | (8,956) |
Income and social contribution taxes paid | (26,376) | ||
Cash provided by operating activities | 20,999 | 243,293 | 213,488 |
Investing activities | |||
Capital contribution in associates | (3,685) | (1,026) | (4,916) |
Receipt for sale of subsidiaries | 22,584 | ||
Receipt from sale of fixed assets | 15,774 | ||
Payment for acquisition of subsidiaries | (10,480) | (64,039) | |
Dividends received from associates | 3,579 | 3,389 | 4,925 |
Marketable securities | (28) | 41,256 | |
Cash and cash equivalents of CGR Catanduva (Note 9) | 1,513 | ||
Cash and cash equivalents of UTR (note 2.5 (c)) | 4,435 | ||
Acquisition of PP&E | (122,114) | (144,977) | (136,431) |
Acquisition of intangible assets | (3,015) | (53,142) | (7,513) |
Net cash used in investing activities | (86,877) | (200,316) | (166,718) |
Financing activities | |||
Proceeds from loans and financing | 37,068 | 21,640 | 6,540 |
Repayment of loans and financing and debentures | (17,835) | (98,909) | (60,514) |
Payment of interest and financial charges | (17,525) | (299,446) | (9,506) |
Capital contribution, net of costs (Note 21.1) | 387,342 | ||
Net cash from (used in) financing activities | 1,708 | 10,627 | (63,480) |
(Decrease) increase in cash and cash equivalents | (64,170) | 53,604 | (16,710) |
Cash and cash equivalents at beginning of year | 84,687 | 31,083 | 47,793 |
Cash and cash equivalents at end of year | R$ 20517 | R$ 84687 | R$ 31083 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Operations | 1. Operations 1.1. General information Estre Ambiental, Inc. is a holding company incorporated under the laws of the Cayman Islands on September 11, 2017. Estre Ambiental, Inc. became the holding company of Estre Ambiental S.A. (hereafter referred to as “Estre Brazil”) through the completion of the transaction explained below. Estre Ambiental, Inc.’s registered office is located at Av. Brigadeiro Faria Lima, 4.509 – 8th floor, Itaim Bibi, in the city and state of São Paulo, Brazil. On August 16, 2017, Estre Brazil, a waste management company with operations in Brazil, and Estre USA, Inc., formerly Boulevard Acquisition Corp II, (“Estre USA”), a company sponsored by an affiliate of Avenue Capital Group, jointly announced that they had entered into a definitive agreement (the “Transaction”) pursuant to which a Cayman Islands holding company, Estre Ambiental, Inc., would be incorporated and substantially all of the shareholders of Estre Brazil would exchange their shares of Estre Brazil for shares of Estre Ambiental, Inc. and as a result Estre Brazil would become a subsidiary of Estre Ambiental, Inc. In addition, the shareholders of Estre USA would be granted an exchange offer to exchange their shares and warrants in Estre USA for shares and warrants in Estre Ambiental, Inc. The Transaction was completed on December 21, 2017 and as a result, Estre Ambiental, Inc. became a publicly listed company subject to rules and regulations of the United States Securities and Exchange Commission. Estre Ambiental, Inc.’s ordinary shares and warrants are traded on the NASDAQ stock exchange. Also on December 21, 2017, Estre Ambiental, Inc. issued 15,438,000 ordinary shares and 3,748,600 warrants to purchase Estre Ambiental, Inc. ordinary shares at US$11.50 per share to certain institutional investors pursuant to a private investment in public equity (the “PIPE Investment”). As a result of the above, Estre Ambiental, Inc. received a total of US$139,900 thousand in cash, out of which US$110,600 thousand (or R$365 million) was contributed to Estre Brazil as a capital contribution which was used to repay certain of its indebtedness pursuant to a simultaneous debt restructuring agreement entered into with its creditors, granting a reduction corresponding to 25% of the amount prepaid. The terms of Estre Brazil’s existing debentures and related debt acknowledgment instrument were consequently amended and restated (for more details, see Notes 21.1 and 14). Estre Brazil is a waste management company in Brazil which operates in key locations in the Southeast, South and Northeast regions of Brazil in a full range of waste-related and environmental services that comprise every step of the waste management cycle, from waste collection to disposal and, ultimately, value recovery. Estre Brazil operates its own landfills and is engaged in the final treatment of hazardous wastes (blending units, bioremediation of contaminated soil and landfills), temporary storage of waste, collection and burning of landfill biogas, environmental consulting services, recycling, reverse manufacturing of electrical and electronic devices and waste collection, among others activities. In the provision of these services, the Company applies strict control over potential environmental impacts, uses customized environment management models and provides support to its customers. Estre Ambiental, Inc. and its subsidiaries as referred to as the “Company”. 1.2. Business perspectives Following a period of rapid expansion and growth through organic business generation as well as acquisitions between 2011 and 2013, in 2014, the Company began recalibrating its strategic focus on the following initiatives, among others; (i) the comprehensive redesign of our management information systems, including migration to SAP; (ii) the sale of certain assets that negatively impacted our margins and did not align with our current strategy, (iii) collection of overdue accounts and implementation of price adjustments on certain large contracts with our municipal customers and (iv) the reduction of corporate headcount. As described above, the Company emerged from 2017 as a NASDAQ listed public company, with a lower leveraged balance sheet and a stronger governance, led by an independent board of directors. A significant portion of the Company’s revenue is derived from municipalities whose financial health have been negatively impacted by very weak economic performance, with Brazilian GDP contracting by 3.3% in 2016 and with 1.1% and 1% increase in 2018 and 2017, respectively. As the outlook for the economy evolves, so does the Company’s ability to collect on time payments from municipalities. The Company’s customer base includes a mix of customers operating in both the private and public sectors. Although the Company has a diversified base across our four business segments, our top ten customers accounted for 69.4% of our total net revenues in 2018 (74.0% of our total net revenues in 2017). In addition, the Company relied over the past years significantly on certain municipal customers in the Collection & Cleaning segment as a source of revenues, including the municipalities of São Paulo and Curitiba. Together, the contracts with those two municipalities represented 39.9% and 41.7% of total net revenues from services during 2018 and 2017, respectively. The contract with the municipality of São Paulo for urban cleaning and street sweeping services, which the Company services through its subsidiary Soma, represented approximately 25.5% of our revenues in 2018 (29.1% of our revenues in 2017). We have been servicing the São Paulo contract through Soma since 2011. This contract expired, and we are currently providing urban cleaning services to the city of São Paulo pursuant to a temporary contract. The temporary contract was first entered into on December 15, 2017 and expired in June 2018. On June 12, 2018, we further extended the temporary contract until the end of 2018. In December 2018, we signed a new extension of the contract which is set to expire in June 2019 and, on May 2, 2019, we were informed that our emergency contract with the municipality of São Paulo will be terminated on June 1, 2019, at which point we will no longer provide services in São Paulo. However, the extended temporary contract which was executed in June 2018 introduced certain significant changes to the expired contractual arrangement and first temporary contract. Most significantly, under the extended temporary contract, the city of São Paulo has been divided into six separate parcels for urban cleaning, whereas under the prior contract the city had been divided into two parcels only. We, through Soma, were awarded only two parcels under the extended temporary contract, which reflects a significant decrease of our service area, since we previously serviced one of the only two parcels. As a result of these changes, the monthly revenue under the extended temporary contract decreased by 37.7%. After a series of delays, a new bid for the São Paulo contract was initiated in October 2018, in which the Company participated. In connection with the bidding process, São Paulo has divided the urban cleaning contract into six separate parcels, in line with the extended temporary contracts entered into in June 2018. The Company was not the bidder with the lowest price for any of the six parcels in São Paulo and, on May 2, 2019, we were informed that our emergency contract with the municipality of São Paulo will be terminated on June 1, 2019, at which point we will no longer provide services in São Paulo. The contract with the municipality of Curitiba for waste collection, urban cleaning and street cleaning represented approximately 12.0% of the Company’s revenues in 2018 (12.5% in 2017). In October 2018, the Company won the competitive bidding process for the Curitiba collections and cleaning contract and signed a five-year contract on January 3, 2019 with a maximum value of R$844.8 million (a reduction in price of approximately 14.1% compared with the previous contract). Considering the significance of these two contracts in terms of revenues, and the fact that the contract with the municipality of São Paulo was not renewed, the Company’s future revenues will materially decrease. As consequence of these changes the company has several significant obligations arising during 2019 that require funding through liquidity, primarily relating to (a) the payments required as a consequence of contracts termination (for example, the contract with the municipality of São Paulo for cleaning services, which is expect to terminate in June 2019) and (b) capital expenditures (e.g., new trucks and equipment) required in connection with contract renewals, such as the investment obligations arising under the contract with the municipality of Curitiba for cleaning services, which was renewed on January 3, 2019 for an additional five year period. Management is working on the negotiations for the sale of some assets, in order to support these discontinuation costs and new fleet investments. Any asset sale will require debt holders’ approval. The Company’s 2019 budget which was approved by the Board of the Directors reflects the impact of the above in addition to certain strategic decisions in relation to Company’s ongoing business, which resulted in the recognition of impairment charges in 2018 as further explained in Note 12. As a result of the expected cash shortfalls for 2019 and the fact that the Company breached its loans financial covenants as of and for the year ended on December 31, 2018, the Company and its Board of Directors are currently negotiating with the debt holders the terms of the current debt agreements. The Company engaged a third party financial specialist as well as outside legal counsel to advise in the negotiation. The Company expects to conclude the debt restructuring process during 2019. There can be no assurance that the debt restructuring process will be successful or that the Company will be able to generate sufficient liquidity in order to fully address the liquidity concerns. The Company´s inability to significantly improve its liquidity position and comply with its financial covenants and other payment obligations could have a material adverse effect and result in a judicial reorganization process, which may result in the shareholders losing their entire investment. Accordingly Management concluded that substantial doubt exists with respect to our ability to continue as a going concern through one year after the issuance of the accompanying consolidated financial statements. 1.3. Divestments 1.3.1. Sale of CGR Doña Juana S.A ESP. (“Doña Juana”) On January 9, 2016, Estre Brazil entered into an agency agreement with USA Global Market S.A.S, or USA Global, for the sale of Estre Brazil’s 51% interest in CGR Doña Juana S.A ESP, or Doña Juana, based in Colombia. Pursuant to the terms of the agreement, USA Global, Estre Brazil’s partner and co-investor Upon signing the agency agreement Estre Brazil classified the investment in Doña Juana as an asset held for sale, pursuant to IFRS 5, Non-current In February 2018, Estre Brazil signed an amendment to the agency agreement postponing some of USA Global’s obligations, such as (i) extending the date that the final installment would be paid to May, 26, 2018, noting that such payment, as of December 31, 2018, remains outstanding and (ii) extending the contract term from 12 to 14 months. In November 2018, Estre Brazil concluded the sale of their shares to USA Global, agreeing the payment of the remaining balance of R$ 2,817 as of December 31, 2018, divided into 6 installments with due date from December 2018 to June 2019. All financial rights on its shares in Doña Juana were transferred to USA Global. As of December 31, 2018, the Company had an overdue installment amounting to R$ 620. The amounts recorded on the transaction date are as follows: Description R$ Sale amount 10,410 Carrying value as of the date of the sale (provision balance) 16,759 (=) Gain on sale (Note 10.2) 27,169 1.3.2. Sale of Azaléia Empreendimentos e Participações S.A. (“Azaléia”) On May 5, 2015, Estre Brazil entered into a purchase and sale agreement to sell 100% of its interest in Azaléia, to Limpus, for R$30,300. The purpose of such transaction was to divest of certain of Estre Brazil’s collections operations in the region of Ribeirao Preto conducted through Geo Vision Soluções Ambientais e Energia S.A., (“Geo Vision”), which it acquired in 2012. The Company spun-off There was no cash exchanged as part of the Azaléia transaction. In connection with the original acquisition of Geo Vision by Estre Brazil, Estre Brazil had a remaining balance of R$39,800 to be paid to the seller as of December 31, 2016. As Limpus was an entity wholly-owned by the original sellers of Geo Vision, at the time of settlement of the sale of Azaléia in 2016, Estre Brazil fully offset its accounts receivable from this transaction, amounting to R$41,300 as of December 31, 2016, as adjusted by interest, with Estre Brazil’s accounts payable on the original Geo Vision of transaction of R$39,800. The transaction resulted in the recognition of a loss of R$ 1,445 of that year. 1.3.3. Sale of CGR Catanduva – Centro de Gerenciamento de Resíduos Ltda (“CGR Catanduva”) On December 2018, the Company concluded the sale of its 4.485.000 shares of CGR Catanduva, representing 50% of its capital stock, to Catanduva’s other shareholder SHZ Participações Ltda. (“SHZ”) for a total amount of R$ 7,500, of which R$ 5,000 was received in cash through December 31, 2018 and the remaining R$ 2,500 will be received in 5 monthly installments through May 2019. The Company recognized a gain of R$ 2,032 as a result this transaction, which was recorded in other operating income. The purpose of this sale was to generate cash flow for the Company. CGR Catanduva owns and operate a landfill in the municipality of Catanduva, in São Paulo, Brazil. Details of the transaction are as follows: Description R$ Sale price 7,500 Carrying amount of investment in Catanduva on the date of the sale (5,468 ) (=) Gain on sale (Note 27) 2,032 1.3.4. Sale of subsidiaries related to energy business unit On December 6, 2018, the Company and its Board of Directors approved the plan to sell the Company´s Energy generation business. Negotiations with some investors already started and it is expected that the sale will be completed within one year. As of December 31, 2018, the energy generation business classified as an asset held for sale and as a discontinued operation, please see Note 10.2. 1.3.5. Disposal of interest in Leccaros Participações S.A. On April 23, 2018, the Company completed the sale of its 50% interest in Leccaros Participações S.A. (“Leccaros”), for a total selling price of R$22,067, of which R$10,000 in cash was received upon closing the transaction and R$12,067 will be received in 12 equal monthly instalments. Leccaros owned a single asset represented by a land located in São Paulo state and did not have any operations. The net assets of Leccaros as of December 31, 2017, amounted to R$6,580 (R$3,283 attributable to equity holders of the parent) which was classified as an asset held for sale. The transaction resulted in a gain on sale of R$37,567 (gain of R$18,784 attributable to equity holders of the Company). 1.4. Allegations and Investigations Regarding the Company’s Supply Relationships a) Operation “Lava-Jato” and its impacts on the Company and its investees In 2014, the Brazilian Federal Police (“PF”) began an investigation intended to check for irregularities perpetrated by criminal organizations in several Brazilian states, involving Petrobras and its subsidiaries. In connection with the investigations conducted by the Federal Public Prosecutor (“MPF”), Mr. Paulo Roberto Costa, former director of Petroleo Brasileiro S.A. – Petrobras, signed a plea bargain agreement, partly citing the Company in depositions on September 5, 2014, made public by the MPF on March 6, 2015. Estre Brazil was also partly cited in the plea bargain program of Mr. Sergio Machado, former CEO of Petrobras Transporte S.A. – Transpetro (“Transpetro”), made public in June 2016. Company management stated that was not aware of the allegations mentioned in the deposition and that the Company does not admit any illegal acts, in accordance with its Code of Ethics and Anti-Corruption Policy. As a commitment to transparency and ethical conduct, the Company and its management made every effort to (i) obtain greater knowledge of the facts through the involvement of the Company’s internal legal department, the Compliance area and the hiring of independent investigation experts; (ii) continue to improve the Company’s governance, internal controls and integrity program; (iii) continue to monitor the matter. In connection with the above, with the approval of the existing Board of Directors before December 21, 2017, engaged in 2018, the Company hired independent expert to further analyze the findings presented in the 2016 report, widening the scope of work to 56 suppliers and extending the period under investigation from 2010 through 2017, with the following main objectives: • Suppliers—analysis of agreements, payments and evidence of services (services provided to the Company and its investees) and goods purchased from the main suppliers and service providers; • Integrity due diligence—on 56 suppliers and current and past management members relating to the period under analysis; and • Analysis of emails—of the current main Executive Officers and of those who worked for the Company during the period under scope. As a result of the findings presented in the independent experts’ report, despite the lack of conclusive evidence of illegal payments related to the allegations made in Operation “Lava-Jato”, the Company’s management made in 2017, an accounting adjustment resulting in the write-off On January 31, 2019, the Brazilian Federal Police executed search warrants at various locations in the State of São Paulo, including at the Company’s corporate headquarters. The Company understands this was part of investigations related to contracts previously investigated, as the focus of the search involved the same suppliers, in the period from 2008 to 2014 between Estre Brazil and some of its former subsidiaries and Transpetro, a subsidiary of Petrobras. No additional internal investigation or by an independent expert was conducted since the referred contracts were already subject to the internal investigation. The Company understands the search warrants were a result of a plea bargain agreement entered into by Mr. Sergio Machado, which was entered into as a result of Operation Lava Jato. As part of this action by the Brazilian Federal Police, temporary arrest warrants were also executed, including among others, the arrest of the founder and former chairman and a former senior employee of Estre Brazil. If Estre Brazil is charged with any violations as a result of this investigation, Estre Brazil may be subject to sanctions, including potential monetary fines, asset freezes, ineligibility from contracting with state-owned or government entities, injunctions against future conduct, profit disgorgements, disqualifications from directly or indirectly engaging in certain types of businesses, the loss of business permits or other restrictions that could have a material adverse effect on the Company’s business, financial condition, results of operations or liquidity. As of the date of the issuance of these consolidated financial statements, none of the potential risks identified materialized. Management believes that all significant issues identified in the independent forensic experts’ report have been adjusted in the Company’s accounting records and does not expect additional charges being recorded in relation to the matter. Estre Brazil is committed to the highest standards of compliance and will continue to cooperate with the relevant authorities. b) Operation Descarte—Special Committee Internal Evaluation On December 15, 2017, the Company’s indirect subsidiary, Cavo Serviços e Saneamento S.A. (“Cavo”) received an official tax infringement notice in the amount of R$90,634 challenging the deductibility of payments made to a number of specific suppliers in 2012, for which there is lack of sufficient evidence that goods or services were actually provided. On December 22 and 27, 2017, Estre Brazil received two official tax infringement notices in the aggregate amount of R$121,778 challenging the deductibility of payments made to a number of specific suppliers from 2012 to 2015, for which there is lack of sufficient evidence that goods or services were actually provided. Estre Brazil is challenging such assessment, and presented its defense on January 23, 2018, with no conclusion as of the date of the issuance of these consolidated financial statements. Following the receipt of these tax infringement notices above, Estre Brazil, following the directions of its general counsel, engaged an independent forensic services firm to investigate the relationship of Cavo’s subsidiary SPE Soma Soluções em Meio Ambiente Ltda. (“SPE Soma”) with certain suppliers. This internal investigation was only in its preliminary stages when, on March 1, 2018, the Brazilian Federal Police executed search warrants at the corporate offices of Estre Brazil and Soma. As a result of the events of March 1, 2018, Estre Brazil significantly broadened the scope of the internal investigation process at the direction of a newly constituted Special Committee comprised of independent members of the Company’s Board of Directors. The internal investigation was conducted by external legal counsels specialized in forensic investigations with the support of other forensic service providers. The scope mainly include the analysis of payments to suppliers, focused in identification of the services provides / goods delivered, from a list of suppliers already being investigated by the tax authorities. The internal investigation procedures involved analysis and review of relevant documentation and materials from past and present employees, interviews with certain individuals and a forensic analysis of financial transactions. As a result of the investigation, Estre Brazil concluded that there were payments made to certain suppliers, particularly through Soma, for which there was insufficient evidence that goods and services were actually provided. Consequently, the Company recorded a loss of R$33,974 in the statement of profit or loss for the year ended December 31, 2017, of which R$555 was recorded in depreciation expenses, R$11,219 in general and administrative expenses, R$10,882 in other operating (expenses) income, net, and R$11,318 in finance expenses. No additional adjustments were made in 2018. Furthermore, the Operation Descarte effort of the Brazilian Federal Police was within the scope of the broader Lava Jato task force, with the objective of dismantling a criminal money-laundering network. The Company cannot predict whether these investigations will move forward and, if so, the duration, scope or ultimate outcome of these investigations. In the event the Company is charged with any violations as a result of the outcome of these investigations it could be subject monetary fines and potential ineligibility from contracting with state-owned or government entities, which could have a material adverse effect on the Company. Through the efforts made by the Company up to the date of issuing these financial statements, management believes that all significant issues identified in the independent forensic experts’ report have been adjusted and does not expect additional charges being recorded in relation to the matter. However, despite the significant progress in terms of internal controls, the Company believes that there are still improvement opportunities to be achieved during 2019. c) Internal Controls Management and the Board of Directors do not tolerate any unlawful acts, therefore, the Company has been developing and implementing a number of measures to improve governance, internal controls and risk management, as shown in follows: • review of all Estre Brazil’s corporate policies, in order to strengthen the tone at the top that overriding of internal controls will not be tolerated; • reorganization of Estre Brazil senior management team; • the replacement of the senior management team at Soma; • expansion of the Compliance Integrity Program to all subsidiaries; • obtainment of ISO 37001 certification – Anti-bribery management systems; • maintenance of an integrity program; and • establishment of a Board of Directors with a majority of the members consisting of leading executives and other professionals that are experts in their respective fields as well as the establishment of an independent audit committee and corporate governance committee with expanded oversight functions. These measures have been put in effect gradually in the Company and its subsidiaries, since the issues were identified at Soma. The Company will continue to implement these controls in 2019, especially since the Company started to prepare their internal controls environment to comply with the requirements of Sarbanes Oxley Act (“SOx”) in the future. The Company has identified improvement areas, as follows, and expect to have all action plans fully implemented by the end of 2019: • making certain adjustments to the Company’s compliance infrastructure to strengthen the independence of our compliance function and eliminate opportunities to override controls across our organization, including at Soma and all our subsidiaries and joint ventures; • making certain adjustments to our internal audit team, including an increase in the number of employees in the team to strengthen the Company’s ability to continuously evaluate its internal procedures and identify any weaknesses or misconduct in its early stages; • enhancing policies and procedures to verify that our comprehensive compliance policies and procedures are fully implemented at all of our subsidiaries and joint ventures; • further upgrading our ERP business process management software, which we first implemented in 2016, in order to better manage our business and automate many back office functions with the goal of improving our internal controls over financial reporting and streamlining monthly, quarterly and year-end • complete review of the purchase to pay process, in order to improve the efficiency, approval structure and reduce the risks of fraud; • enhancing and continuing to improve the vendor master data, due diligence, know your client procedures, procurement and payment procedures and associated controls; • implementing a workflow tool, allowing the controlled exchange of information to facilitate timely and effective communication amongst the legal, financial and accounting departments and prompt registration of all transactions; and making certain adjustments to improve the security in some of our IT procedures such as the periodic review of login profiles and their access to certain information on the system and the closer management of users with privileged profiles. 1.5. Discontinued operations 1.5.1. Sale of subsidiaries related to energy business unit On December 6, 2018, the Company and its Board of Directors approved the plan to sell the Company´s Energy generation business. Negotiations with some investors already started and it is expected that the sale will be completed within one year. At December 31, 2018, the energy generation business is classified as an asset held for sale and as a discontinued operation (see Note 10.2). As a result the energy business is not longer presented within the Value Recovery segment. The following are the effects of restating prior years to reflect discontinued operations: 2017 As reported Adjustment As restated Revenue from services rendered 1,365,347 (19,498 ) 1,345,849 Cost of services (953,760 ) 11,505 (942,255 ) Gross profit 411 , 587 (7 , 993 ) 403 , 594 Operating income (expenses) General and administrative expenses (258,114 ) 1,582 (256,532 ) Selling expenses, net (6,641 ) — (6,641 ) Share of (loss) profit of an associate (1,020 ) — (1,020 ) Other operating expenses, net (29,859 ) (1,266 ) (31,125 ) (295,634 ) 316 (295,318 ) Profit before finance income and expenses 115 , 953 (7 , 677 ) 108 , 276 Finance expenses (534,273 ) 2,098 (532,175 ) Finance income 109,731 (1,450 ) 108,281 Loss before income and social contribution taxes (308 , 589 ) (7 , 029 ) (315 , 618 ) Current income and social contribution taxes (18,263 ) 720 (17,543 ) Deferred income and social contribution taxes 371,084 — 371,084 Profit for the year from continuing operations 44 , 232 (6 , 309 ) 37 , 923 Discontinued operations Profit after income and social contribution tax from discontinued operations 8,033 6,309 14,342 Profit for the year 52 , 265 — 52 , 265 2016 As reported Adjustment As restated Revenue from services rendered 1,393,033 (13,002 ) 1,380,031 Cost of services (1,012,336 ) 8,588 (1,003,748 ) Gross profit 380 , 697 (4 , 414 ) 376 , 283 Operating income (expenses) General and administrative expenses (231,932 ) 882 (231,050 ) Selling expenses, net 10,495 — 10,495 Share of (loss) profit of an associate 10,152 — 10,152 Other operating expenses, net (77,938 ) (2,613 ) (80,551 ) (289,223 ) (1,731 ) (290,954 ) Profit before finance income and expenses 91 , 474 (6 , 145 ) 85 , 329 Finance expenses (400,892 ) 3,759 (397,133 ) Finance income 53,622 (1,959 ) 51,663 Loss before income and social contribution taxes (255 , 796 ) (4 , 345 ) (260 , 141 ) Current income and social contribution taxes (55,435 ) 1,098 (54,337 ) Deferred income and social contribution taxes (49,755 ) — (49,755 ) Loss for the year from continuing operations (360 , 986 ) (3 , 247 ) (364 , 233 ) Discontinued operations Profit after income and social contribution tax from discontinued operations 41 3,247 3,288 Loss for the year (360 , 945 ) — (360 , 945 ) |
Presentation of financial state
Presentation of financial statements and significant accounting practices adopted | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Presentation of financial statements and significant accounting practices adopted | 2. Presentation of financial statements and significant accounting practices adopted 2.1. Basis of preparation and presentation of financial statements The Transaction described in Note 1 above, was accounted for as a reorganization and recapitalization transaction whereby Estre Ambiental, Inc. was created as a holding company of Estre Brazil and concurrently issue new ordinary shares to the former shareholders of Estre USA and the PIPE investors in exchange of cash (recapitalization). As a result, the assets and liabilities of Estre Brazil are carried at historical cost and there was no step-up As a result, the consolidated financial statements filed with the SEC by the Company subsequent to the completion of the Transaction are presented “as if” Estre Brazil is the predecessor of the Company. The historical operations of Estre Brazil are deemed to be those of the Company. Thus, these consolidated financial statements reflect (i) the historical operating results of Estre Brazil prior to the Transaction, as restated (Note 1.5); (ii) the consolidated results of the Company and Estre Brazil following the Transaction; (iii) the assets and liabilities of Estre Brazil at their historical cost; and (iv) the Company’s equity and earnings per share for all periods presented. The number of ordinary shares issued by Estre Ambiental, Inc. as a result of the Transaction is reflected retroactively to January 1, 2015, for purposes of calculating earnings per share in all prior periods presented. The preparation of the consolidated financial statements requires the use of certain critical accounting estimates and also the exercise of judgment by Company management in the process of application of its accounting practices. Areas involving a higher degree of judgment, with greater complexity, and areas where assumptions and estimates that are significant to the consolidated financial statements are disclosed in Note 2.21. a) Basis of preparation The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were approved by the Board of Directors and by the Executive Board on May 13, 2019. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments at fair value described in Note 2.7 and certain assets measured at fair value on the date of the business combination, described in Note 2.4. The consolidated financial statements are presented in Brazilian Reais (R$) and all values are rounded to the nearest thousand (R$000), except where otherwise stated. 2.2. Basis of consolidation The consolidated financial statements include the following direct subsidiaries of Estre Ambiental, Inc.: Subsidiary Main activity Country of 2018 2017 Estre Ambiental S.A. (a) Waste management Brazil 93.92 % 93.92 % Estre USA Inc. Holding USA 100 % 100 % Road Participações S.A. Holding Brazil 100 % 100 % (a) Estre Ambiental, Inc. has a direct interest of 66.57% and an indirect interest of 27.35% through its wholly owned subsidiary Road Participações S.A. In addition, the consolidated financial statements include the following indirect subsidiaries of Estre Ambiental, Inc. and direct subsidiaries of Estre Brazil: Subsidiary Main activity and services Country of 2018 2017 2016 Estre Água e Solo Ltda. (a) Laboratory analysis Brazil — 100 % 100 % Ambiental Sul Brasil - Central Regional de Tratamento de Resíduos Ltda. Waste management center Brazil 100 % 100 % 100 % Cavo Cleaning and collection Brazil 100 % 100 % 100 % Pilares Participação Ltda. Holding Brazil — — 100 % Oxil Manufatura Reversa e Gerenc. de Resíduos Ltda. Recycling Brazil 100 % 100 % 100 % LMG Participações Ltda. Holding Brazil — — 100 % Viva Ambiental e Serviços S.A. Cleaning and collection Brazil 100 % 100 % 100 % V2 Ambiental SPE S.A. Waste management center Brazil 100 % 100 % 100 % Resicontrol Soluções Ambientais Ltda. Waste management center Brazil 100 % 100 % 100 % CGR Doña Juana S.A. ESP (“CGR Doña Juana”) (b) Waste management center Colombia — — — CTR Itaboraí - Centro de Tratamento de Resíduos de Itaboraí Ltda. Waste management center Brazil 100 % 100 % 100 % Esergia Estratégias Energéticas Ambientais Ltda. (c) Energy use services Brazil — 100 % 50 % Estação Ecologia - Área de Transbordo Triagem e Reciclagem de RCD S.A. (c) Recycling Brazil — 100 % 100 % Geo Vision Holding Brazil 100 % 100 % 100 % CGR Guatapará - Centro de Gerenc. de Resíduos Ltda. Waste management center Brazil 100 % 100 % 100 % Estre SPI Ambiental S.A. (“Estre SPI”) Cleaning and collection Brazil 100 % 100 % 100 % NGA - Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % NGA Jardinópolis - Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % NGA Ribeirão Preto Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % Reciclax - Reciclagem de Resíduos da Construções Civil Ltda. (“Reciclax”) Recycling Brazil 88 % 88 % 88 % Guatapará Energia S.A. (d) Energy use services Brazil 90 % 90 % 90 % CTR Porto Seguro Waste management center Brazil 100 % 100 % 100 % Estre Energia Renovável Part. S.A. (d) Holding Brazil 90 % 90 % 90 % SPE Paulínia Energia Ltda. (d) Energy use services Brazil 100 % 100 % 100 % SPE Tremembé Energia Ltda. (d) Energy use services Brazil 100 % 100 % 100 % Curitiba Energia SPE Ltda. (d) Energy use services Brazil 100 % 100 % 100 % Piratininga Energia e Participações Ltda. (d) Energy use services Brazil 100 % 100 % 100 % CTR Arapiraca S.A. Waste treatment center Brazil 100 % 100 % 100 % Estre Aterros e Valorização Holding S.A. Holding Brazil 100 % 100 % 100 % NGA Sul – Núcleo de Gerenciamento Ambiental S.A. Holding Brazil — — 100 % CGR – Centro de Gerenc. de Resíduos Feira de Santana S.A. Waste management center Brazil 100 % 100 % 100 % GLA - Gestão Logistica Ambiental S.A. Cleaning and collection Brazil 38 % 38 % SPE Soma Soluções em Meio Ambiente Ltda. (“SPE SOMA”) Cleaning and collection Brazil 82 % 82 % — Leccaros Participações S.A.(Note 10.2.2) Holding Brazil — — 50 % CGR Catanduva – Centro de Gerenc. de Resíduos Ltda. (“CGR Catanduva”) (Note 1.3.3 and 9) Waste management center Brazil — 50 % — Estre Ambiental Sucursal Colômbia (e) Cleaning and collection Colombia 100 % 100 % 100 % (a) Merged into Estre SPI in 2018. (b) Presented as assets held for sale since 2016, with sale process concluded in November 2018 (Notes 1.3.1 and 10.2). (c) Merged into Estre Brazil in 2018. (d) Subsidiaries included in an asset sale process (Note 1.3.4). (e) Subsidiary created to collect cash from the D. Juana sale. A subsidiary is fully consolidated from the date the control is obtained, and ceases when the Company loses control of the subsidiary. The Company evaluates existence and effect of potential voting rights currently exercisable or convertible, shareholders agreement and company management policies are taken into account in determining whether the Company controls the entity or not. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has: • Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee • The ability to use its power over the investee to affect its returns Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement(s) with the other vote holders of the investee • Rights arising from other contractual arrangements • The Company’s voting rights and potential voting rights The financial years and the closing periods of direct and indirect subsidiaries included in the consolidation are the same as those of the Company, and accounting practices and policies have been consistently applied by the consolidated companies and are consistent with those used in the previous years. All consolidated intercompany balances and transactions were eliminated in consolidation. 2.3. Foreign currency translation a) Functional and reporting currencies In evaluating the functional currency of the Company, management considered the factors and indicators contained in IAS 21 – The effect of changes in foreign exchange rates. Considering that the Company is a holding that incur in limited expenses, Estre Inc. is using the currency of the local environment of Estre Brazil as its functional currency, as this is the environment which drives the dividend income it receives, which is its primary source of revenue. Therefore, the functional currency of the Company is Brazilian Reais. The financial statements of each subsidiary included in the Company’s consolidation and those used as a basis for valuation of investments using the equity method are prepared using the functional currency of each entity, and for entities whose functional currencies are different from the Company’s reporting currency, their assets and liabilities are translated into the Company’s reporting currency at the closing date and their statements of profit or loss are translated at exchange rate prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in other comprehensive income. b) Transactions and balances Transactions in foreign currencies are translated using the exchange rates prevailing on the transaction dates or on the valuation date, for remeasured items. The foreign exchange gains and losses resulting from the settlement of these transactions and resulting from the translation at exchange rates at the end of the year relating to monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit or loss. 2.4. Business combination Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as total consideration transferred, measured at fair value at the acquisition date, and the amount of any non-controlling non-controlling When acquiring a business, the Company assesses the financial assets and liabilities assumed, for appropriate classification and designation in accordance with contractual terms, economic circumstances and pertinent conditions at the acquisition date. If the business combination is achieved in stages, the fair value at the acquisition date of the previously held equity interest in the acquiree is remeasured at fair value at the latest acquisition date, and impacts are recognized in the statement of profit or loss. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration considered as an asset or liability will be recognized in the statements of profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the fair value of net assets acquired. If the consideration is lower than the fair value of net assets acquired, the difference is recognized as a bargain gain in the statement of profit or loss. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For impairment test purposes, goodwill acquired in a business combination is allocated to each of the Company’s cash-generating units that are expected to benefit from the synergies arising from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. When goodwill forms part of a cash generating unit and a portion of that unit is disposed of, the goodwill associated to the disposed portion must be included in the transaction upon carrying amount of the operation when determining disposal gains or losses. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operations and the cash generating unit retained. 2.5. Investment in associates, joint operations and joint ventures An associate is an entity in which the Company exercises significant influence. Significant influence is the power to participate in decisions on operating policies of the investee. It does not hold, however, control or joint control over those policies. A joint operation (JO) is a type of joint arrangement in which the parties with joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. In relation to its interests in JOs, the financial statements of the Company includes: • Assets, including its share of any assets held jointly • Liabilities, including its share of any liabilities incurred jointly • Revenue from the sale of its share of joint operation • Share of the revenue from the sale of the output by the joint operation • Expenses, including its share of any expenses incurred jointly All such amounts are measured in accordance with the terms of each arrangement which are in proportion to the Company’s interest in the JO. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Company’s investments in its associates and joint ventures, shown in the table below, are accounted for using the equity method: Denomination Main activity Host Interest 2018 2017 2016 Unconsolidated investes Attend Ambiental Ltda. (“Attend”) Treatment of liquid effluents Brazil — — (a) 55% Metropolitana Serviços Ambientais Ltda. Waste management center Brazil Direct 50% 50% 50% Terrestre Ambiental Ltda. Waste management center Brazil — — (a) 40% CGR Catanduva Waste management center Brazil — (b) (b) 50% Logística Ambiental de São Paulo S.A. (“Loga”) Cleaning and collection services Brazil — — (a) 38% Unidade de Tratamento de Resíduos - UTR S.A. Waste management center Brazil — — — (c) 54% (a) On December 21, 2017, these investments were transferred to Latte Saneamento e Participações S.A. (“Latte”), a related party owned by some of the same shareholders of the Company (refer to Note 10.1). (b) This subsidiary was consolidated in 2017 and it was sold in December 2018 (Note 1.3.3). (c) On August 1 st 2.5.1. Investment in associates and joint ventures Under the equity method, the investment in associate and joint ventures is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share in the net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the investment and is not tested for impairment separately. The statement of profit or loss reflects the Company’s share of the results of operations of the associate and joint venture. Any changes in other comprehensive income in these investees is presented in the Company’s other comprehensive income. In addition, when there has been a change directly recognized in the equity of the associate the Company recognizes its share of any changes, in the statements of changes in equity when applicable. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate and joint venture. The aggregate of the Company’s share of profit or loss of an associate or joint venture is stated in the statements of profit or loss representing profit after tax and interest held by non-controlling 2.5.2. Material partially-owned subsidiaries Financial information of subsidiaries that have material non-controlling Percentage of equity interest held by non-controlling Name Country of 2018 2017 2016 CGR Doña Juana (a) Colombia — 49% 49% SPE Soma Brazil 18% 18% — Reciclax Brazil 13% 13% 13% Guatapará Energia S.A. (b) Brazil 10% 10% 10% Estre Energia Renovável Part. S.A. (“Estre Energia Renovável”) (b) Brazil 10% 10% 10% GLA - Gestão Logistica Ambiental S.A. (“GLA”) Brazil 62% 62% — CGR Catanduva (c) Brazil — 50% — (a) Presented as assets held for sale since 2016, with sale process conclued in November 2018 (Note 10.2 and 1.3.1). (b) Subsidiaries involved in an asset sale process (Note 1.3.4). (c) This subsidiary was consolidated in 2017 and it was sold in December 2018 (Note 1.3.3). Summarized statement of profit or loss for 2018: Reciclax SPE Soma GLA Revenue from services rendered 569 335,317 24,398 Cost of services rendered (2,019 ) (252,480 ) (17,569 ) General and administrative expenses (445 ) (40,417 ) (449 ) Other operating income (expenses), net (28 ) (5,161 ) (471 ) Financial expenses, net (85 ) (895 ) 31 Profit (loss) before tax es (2,008 ) 36 , 364 5,940 Income tax and social contribution (2 ) (32,842 ) (824 ) Profit (loss) for the year from continuing operations (2,010 ) 3 , 522 5,116 Total comprehensive income (2,010 ) 3,522 5,116 Attributable to non-controlling interests (251 ) 634 3,187 Summarized statement of profit or loss for 2017: Estre Energia Guatapará SPE CGR Revenue from services rendered — 9,115 777 84,919 12,055 10,348 Cost of services rendered — (5,614 ) (2,737 ) (61,051 ) (7,950 ) (8,252 ) General and administrative expenses (1,111 ) (299 ) (466 ) (3,180 ) (170 ) (833 ) Other operating income (expenses), net 3,297 1,252 85 (1,356 ) (233 ) (292 ) Financial expenses, net 878 (799 ) (117 ) (2,783 ) 38 (305 ) Profit (loss) before taxes 3,064 3,655 (2,458 ) 16,549 3,740 666 Income tax and social contribution — (410 ) 964 218 (408 ) (458 ) Profit (loss) for the year from continuing operations 3,064 3,245 (1,494 ) 16,767 3,332 208 Total comprehensive income 3,064 3,245 (1,494 ) 16,767 3,332 208 Attributable to non-controlling 306 325 (187 ) 3,018 2,076 104 Summarized statement of profit or loss for 2016: Estre Energia Guatapará Reciclax Revenue from services rendered — 8,251 1,320 Cost of services rendered — (4,725 ) (2,475 ) General and administrative expenses (666 ) (180 ) (236 ) Other operating income, net 1,329 2,482 (231 ) Financial expenses, net (1,906 ) (1,007 ) (126 ) Profit (loss) before taxes (1,243 ) 4,821 (1,748 ) Income tax and social contribution — (331 ) — Profit (loss) for the year from continuing operations (1,243 ) 4,490 (1,748 ) Total comprehensive income (1,243 ) 4,490 (1,748 ) Attributable to non-controlling (124 ) 449 (219 ) Summarized statement of financial position at December 31, 2018: Reciclax SPE Soma GLA Assets Current assets Cash and cash equivalents 6 218 672 Trade accounts receivable 57 51,108 2,855 Taxes recoverable 65 1,568 2,977 Advances to suppliers — 80 — Other current assets 127 17,775 241 Total current assets 255 70,749 6,745 Non-current assets Related parties 248 32,552 — Other non-current assets 107 1,828 — Investments — — — Property, plant and equipment 7,885 4,714 147 Intangible assets — 112 — Total non-current assets 8,240 39,206 147 Total assets 8,495 109,955 6,892 Reciclax SPE Soma GLA Liabilities Current liabilities Trade accounts payable 221 18,678 1,630 Labor liabilities 76 24,702 1,104 Tax liabilities 50 9,858 1,642 Debt to related parties 5,532 — — Other current liabilities 39 19,061 — Total current liabilities 5,918 72,299 4,376 Non-current liabilities Provision for legal proceedings 111 6,127 — Other liabilities 85 167 — Total non-current liabilities 196 6 , 294 — Capital 4,714 43,484 1 Reserves 4,481 — — Accumulated earnings (losses) (6,814 ) (12,122 ) 2,515 Total equity 2,381 31 , 362 2,516 Total liabilities and equity 8,495 1 09 ,9 55 6,892 Attributable to: Equity holders of parent 2,071 25,717 956 Non-controlling interest 310 5,645 1,560 Summarized statement of financial position at December 31, 2017: Estre Energia Guatapará Reciclax SPE GLA CGR Assets Current assets Cash and cash equivalents 1,703 763 10 17,038 1,106 1,213 Trade accounts receivable — 1,305 1,382 45,619 2,303 2,469 Taxes recoverable 1 1 13 1,759 70 173 Advances to suppliers 8 — 16 125 — — Other current assets — 745 218 21,135 177 2 Total current assets 1,712 2,814 1,639 85,676 3,656 3,857 Non-current Related parties 18 — 2,159 39,994 — 16 Other non-current — — 33 10,436 — 258 Investments 24,061 — — — — — Property, plant and equipment 8,754 23,048 8,039 6,076 149 12,988 Intangible assets — — — 225 — 2,195 Total non-current 32,833 23,048 10,231 56,731 149 15,457 Total assets 34,545 25,862 11,870 142,407 3,805 19,314 Estre Energia Guatapará Reciclax SPE GLA CGR Liabilities Current liabilities Loans and Financing — — — — — 160 Trade accounts payable 44 2,168 478 8,400 1,818 636 Labor liabilities 87 — 311 31,451 726 374 Tax liabilities 4 178 148 17,822 436 605 Debt to related parties 20,500 — 6,099 — — 210 Other current liabilities 300 3,072 29 1,451 1 1 Total current liabilities 20,935 5,418 7,065 59,124 2,981 1,986 Non-current Provision for legal proceedings — — 129 2,299 — — Other liabilities — — 224 22,474 — 2,734 Total non-current — — 353 24,773 — 2,734 Capital 12,000 10,682 4,714 43,484 1 4,376 Reserves — — 4,542 — 823 4,452 Accumulated earnings (losses) 1,610 9,762 (4,804 ) 15,026 — 5,766 Total equity 13,610 20,444 4,452 58,510 824 14,594 Total liabilities and equity 34,545 25,862 11,870 142,407 3,805 19,314 Attributable to: Equity holders of parent 12,249 18,400 3,873 47,978 311 7,297 Non-controlling 1,361 2,044 579 10,532 511 — Summarized statement of financial position at December 31, 2016: Estre Energia Guatapará Reciclax Assets Current assets Cash and cash equivalents 33 39 19 Trade accounts receivable — 690 1,236 Taxes recoverable 1 1,212 8 Advances to suppliers 7 1 11 Other current assets — 1,114 12 Total current assets 41 3,056 1,286 Non-current Related parties 17 39 1,891 Other non-current — — 18 Property, plant and equipment 23,253 — — Intangible assets 9,890 20,866 8,166 Total non-current 33,160 20,905 10,075 Total assets 33,201 23,961 11,361 Estre Energia Guatapará Reciclax Liabilities Current liabilities — — — Loans and Financing — — — Trade accounts payable 4 3,310 448 Labor liabilities 80 — 204 Tax liabilities 73 382 741 Debt to related parties 21,499 — 3,782 Other current liabilities 375 2,301 27 Total current liabilities 22,031 5,993 5,202 Non-current Provision for legal proceedings — — 63 Other liabilities — — 140 Total non-current — — 203 Capital 12,000 10,682 4,714 Reserves — 483 4,430 Accumulated losses (830 ) 6,803 (3,188 ) Total equity 11,170 17,968 5,956 Total liabilities and equity 33,201 23,961 11,361 Attributable to: Equity holders of parent 10,053 16,171 5,182 Summarized cash flow information for year ended on December 31, 2018: Reciclax SPE GLA CGR Operating activities 240 (16.372 ) (434 ) (167 ) Investing activities (244 ) (448 ) — (663 ) Financing activities — — — 78 Net cash generated/(used) (4 ) (16.820 ) (434 ) (752 ) (*) Subsidiary CGR Catanduva sold on December 14, 2018, see note 1.3.3. Summarized cash flow information for year ended on December 31, 2017: Estre Guatapará Reciclax SPE GLA CGR Operating activities 1,670 5,162 320 23,688 1,260 1,399 Investing activities 33 (4,399 ) (310 ) (6,650 ) (155 ) (132 ) Financing activities — — — — 1 (517 ) Net cash generated/(used) 1,703 763 10 17,038 1,106 750 Summarized cash flow information for year ended on December 31, 2016: Estre Guatapará Reciclax Operating activities (33,063 ) (4,400 ) 124 Investing activities 33,143 2,519 (117 ) Financing activities 1 2,500 2 Net cash generated/(used) 81 619 9 2.6. Current versus non-current The Company presents assets and liabilities in the statement of financial position based on current and non-current • It is expected to be realized within 12 months from the reporting date; or • It consists of cash and cash equivalents, unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are to be classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Company classified all other liabilities as non-current. non-current 2.7. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing an asset or liability, assuming that market participants act in their economic best interest. The fair value measurement of a non-financial The Company uses valuation techniques appropriate for the circumstances and for which there is sufficient data for fair value measurement, maximizing the use of relevant available information and minimizing the use of unavailable information. All assets and liabilities for which the fair value is measured in the financial statements are categorized within the fair value hierarchy described below, based on the lowest level of information that is significant to the fair value measurement as a whole: • Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is either directly or indirectly observable; and • Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether there were transfers between hierarchy levels, by re-assessing For the purposes of fair value disclosures, the Company has determined classes of assets and liabilities based on the nature, characteristics and risks of assets or liabilities and the fair value hierarchy level, as mentioned above. The fair values of financial instruments measured at amortized cost are disclosed in Note 30. 2.8. Revenue recognition Beginning on January 1, 2018 the IFRS 15 – Revenue from Contracts with Customers came into effect, which establishes a five-step model to account for revenue arising from contracts with customers and require that revenue be recognized at an amount that reflects the consideration to which the entity expects to be entitled in exchange of transferring good or services to customers. The five steps model is as follows: i) Identification of the contract with the client; ii) Identification of performance obligations in the contract; iii) Determination of the transaction price; iv) Allocation of the transaction price to the performance obligations in the contract; and v) Recognition of revenue upon satisfaction of the performance obligations. Revenues shall be recognized at the amount that reflects the consideration or which the Company expect of receiving in exchange of transferring goods or services to the customers. Revenue From Services Collection & Cleaning Services - Revenue from collection & cleaning services is recognized when the service is provided. The Company recognizes revenue for the service provided, using the transaction price the Company expects to be entitled to. Landfills - waste that cannot be recycled is sent to the most appropriate final disposal, in sanitary landfills. The Company operates 12 landfills across Brazil, serving public and private entities. Revenues is recognized when the disposals are received in the Company’s landfills, at the transaction price the Company expects to be entitled to. Value Recovery - Value recovery services are related to a series of solutions that ensure the maximum use of the waste, with its reuse or search for new technology to recycle the materials. Revenue is recognized when the service is provided. The Company measures the provided service by the transaction price the Company expected to be entitled to. O&G - Revenue from services contracts provided to the oil & gas industry is recognized when the service is provided, at the transaction price the Company expects to be entitled to. Contract assets, contract liabilities, receivables: A contract asset is the right to consideration in exchange for the services provided to the customer. If the Company performs by providing services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. For services rendered that customers have not yet approved at the end of the period, revenue is recognized based on estimates or work performed. A contract liability is the obligation to provide services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company provides services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the Company performs under the contract. A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement. Variable consideration Variable consideration is included in the transaction price if it is highly probable that no significant reversal of revenue will occur once associated uncertainties are resolved. Significant estimates are involved in determining the amount of variable consideration which is calculated by using either the expected value or the most likely amount depending on which is expected to better predict the amount of variable consideration. Consideration is adjusted for the time value of money if the period between the provided services and the receipt of payment exceeds twelve months and the financing benefit. The Company is required to determine whether there is a significant financing component in its contracts. According to paragraph 60 of this standard, in determining the transaction price an entity shall adjust the amount of the consideration promised for the effects of the time value of money when a significant financing component is present. A significant financing component may exist independently if the promise of financing is expressly stated in the contract or implied in the terms of payment agreed by the parties to the contract. The Company should analyze if the payment period agreed by the parties to the contract (expressly or implicitly) provides the client or the entity with a significant financial benefit from the transfer of goods or services to the customer. Based on the above, the Company performs an analysis to identify the existence of a significant financing component for public sector clients, since the average collection term for this client portfolio is approximately six months. The Company considered the average rate of 8.50% p.a. for the discount rate of 2018 (8.40% at December 31, 2017), which represents the discount rate usually applied by the Company to calculate the present value of its non-current assets and liabilities. Revenue from the sale of products Revenue from the sale of products refers to the sale of scrap, fuel gas, carbon credit, electric power. For the sale of products, revenue is recognized when the performance obligations is satisfied at the time the control of the product sold is transferred to the customer, usually a |
Capital and financial risk mana
Capital and financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Capital and financial risk management | 3. Capital and financial risk management The Company’s main objectives when managing capital are to safeguard its ability to continue as a going-concern, to provide returns to shareholders and maximize shareholder value, provide better cash management to ensure availability of credit lines in order to maintain liquidity, and obtain funds at the lowest cost possible. As of December 31, 2018, the Company recorded negative working capital (calculated as total current assets minus total current liabilities) of R$1,289.8 million and a capital deficiency (corresponding to total assets minus total liabilities) of R$1,149.2 million (working capital of R$293.4 million and a capital deficiency of R$455.9 million as of December 31, 2017). As a result of liquidity constraints, the Company was not able to comply with the financial covenants included in its Debt Instruments for the year ended on December 31, 2018 and we are currently in breach of such covenants. In addition, on March 6, 2018, Angra confirmed the exercise of its put option to sell all of its shares of the Company, which requires the payment of the exercise price by approximately R$40.3 million by September 6, 2018, as of the date of this annual report, we have not yet made any payments to Angra due to our liquidity constraints, and the rescheduled payment terms are still being negotiated. Furthermore, Management has identified several significant obligations arising during 2019 that require funding through liquidity, primarily relating to (a) the payments required to make for severance and other demobilization costs related to discontinued operations and (b) capital expenditures required in connection with contract renewals. The Company´s Management is engaged in efforts to generate liquidity in order to improve the liquidity position and fund their obligations, including negotiations in respect of the sale of certain assets, which sales will likely require the approval of the holders of our Debt Instruments. In addition, the Company, with the approval of its Board of Directors, has initiated negotiations with the holders of the Debt Instruments, as well as other relevant creditors, with the goal of restructuring its financial and such other debt. In that regard, the Company engaged an outside restructuring advisor as well as outside legal counsel to advise in connection with a potential debt restructuring process. The Company is currently seeking to conclude the debt restructuring process in the course of 2019. There can be no assurance that the debt restructuring process will be successful or that we will be able to generate sufficient liquidity in order to fully address our liquidity concerns. Our inability to significantly improve our liquidity position and comply with our financial covenants and other payment obligations could have a material adverse effect on us and result in a judicial or judicial reorganization process, which may result in our shareholders losing their entire investment. There were no changes in the objectives, policies or processes for managing capital during the years ended December 31, 2018 and 2017. 2018 2017 Loans and financing (Note 13) 628,297 385,514 Debentures (Note 14) 966,386 1,068,979 (-) Cash and cash equivalents (Note 4) (18,862 ) (84,687 ) (-) Marketable securities (42 ) (42 ) Net debt 1,575,779 1,369,764 Equity (capital deficiency) (1,149,210 ) (455,904 ) |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Cash and cash equivalents | 4. Cash and cash equivalents Cash and cash equivalents is as follows: Description 2018 2017 Cash 168 170 Bank account 4,262 44,123 Bank Deposit Certificates (a) 14,432 40,394 Total 18,862 84,687 (a) Refers to highly-liquid Bank Deposit Certificates (CDBs) under repurchase agreements with returns substantially tied to a variation ranging between 75.0% and 90.0% of the Brazilian Interbank Deposit Certificate (CDI) rate. For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at 31 December: Description 2018 2017 2016 Cash 168 170 110 Bank account 4,262 44,123 2,861 Bank Deposit Certificates (a) 14,432 40,394 28,112 18,862 84,687 31,083 Cash at banks and short-term deposits attributable to discontinued operations (note 10.2) 1,655 — — Total 20 , 517 84,687 31,083 |
Trade accounts receivable
Trade accounts receivable | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Trade accounts receivable | 5. Trade accounts receivable Description 2018 2017 Trade accounts receivable 7 57 , 991 966,827 Carbon credits (a) 7,306 2,998 765 , 297 969,825 ( - ) Adjustment to present value (b) (32,456 ) (34,472 ) ( - ) Allowance for doubtful accounts (109,966 ) (157,247 ) Total 622 , 875 778,106 Current 501 , 821 669,237 Non-current 12 1 ,0 54 108,869 (a) The Company entered into an agreement on June 17, 2015 with Nordic Environment Finance Corporation referring to the Clean Development Mechanism (MDL), whereby the biogas generated in a landfills is burned and transformed into carbon credits. The balances as of December 31, 2018 refers to credits generated in the current fiscal year and that the Company expects to realize in 2019 due to usual timing of credit approval. (b) The adjustment of long-term receivables to present value was calculated using a discount rate of 8.50% per year. The aging of trade accounts receivable is as follows: Description 2018 2017 Unbilled — 168,949 Falling due 3 27 , 327 386,030 Overdue up to 30 days 37,530 56,067 Overdue from 31 to 60 days 27,375 26,403 Overdue from 61 to 90 days 42,788 30,232 Overdue from 91 to 180 days 88,377 65,569 Overdue from 181 to 360 days 60,698 79,328 Overdue for more than 360 days 181,202 157,247 Total 765 , 297 969,825 Changes in the allowance for doubtful accounts are as follows: Description 2018 2017 2016 Opening balance (157,247 ) (155,341 ) (168,210 ) Additional allowance ( 26 , 311 ) (104,963 ) (304,436 ) Reversal of allowance 36 , 823 103,057 317,279 Transfer to discontinued operations 4 97 — 26 Write-off referring to actual losses 32, 780 — — Change in accounting practice 3,492 — — Closing balance (109,966 ) (157,247 ) (155,341 ) Contract asset On December 31, 2018, the Company presented contact assets amounting to R$ 120,308. |
Taxes recoverable
Taxes recoverable | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Taxes recoverable | 6. Taxes recoverable Description 2018 2017 Corporate income tax (IRPJ) (a) 29 , 842 56,342 Social contribution tax (CSLL) (a) 10,9 99 16,743 Social security contribution tax (INSS) (b) 24,576 19,669 Integration program (PIS) / Social security financing (COFINS) / Social contribution tax (CSLL)(c) 13 ,6 16 9,259 Withholding income tax (IRRF) (d) 9,570 16,946 PIS/COFINS recoverable on acquisition of assets (e) 24,566 13,099 Other 16 , 398 21,953 Total 1 29,567 154,011 Current 98 , 367 101,870 Non-current 31 , 200 52,141 (a) IRPJ and CSLL are related to tax advances recorded on estimation basis throughout the year. (b) INSS is a social security charge levied on wages paid to employees. On certain services rendered, clients are required to withhold 11% of the amounts billed and pay INSS tax on our behalf, with no impact to the statement of profit or loss. Credits are used to compensate INSS payable. (c) Services rendered require our clients to retain and pay taxes on our behalf. The rate of 4.65% in relation to PIS, COFINS and CSLL tax on applicable services rendered is withheld from receivables from clients and recognized as a tax recoverable, with no impact to the statement of profit or loss. (d) Refers to IRRF retained by financial institutions from the Company’s financial investments and on certain services rendered, clients are required to withhold 1.5% of the amounts billed to them and pay IRPJ (Income tax) on our behalf, with no impact to the statement of profit or loss. (e) Refers to PIS/COFINS credits obtained from the acquisition of some property, plant and equipment. |
Other receivables
Other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Other receivables | 7. Other receivables Description 2018 2017 Judicial deposits 18,398 19,059 Advances to employees 1,026 2,204 Accounts receivable from non-controlling interest (a) 8,930 10,334 Advances to suppliers 3,258 2,933 Dividends receivable 3,938 1,265 Prepaid expenses 6,127 7,165 Other (b) 10,931 6,460 Total 52,608 49,420 Current 31,960 34,947 Non-current 20,648 14,473 (a) Mainly relates to a receivable from Soma’s non-controlling (b) Includes receivables from the sale of assets on the total amount of R$ 5,783 in 2018. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Related parties | 8. Related parties a) Accounts receivable and payable In the ordinary course of business the Company receives or loans cash to its associates as part of its cash management. At December 31, 2018 and 2017, balances with associates are as follows: 2018 2017 Assets Attend Ambiental (a) — 10,960 Other 2,2 18 3,558 Total non-current 2 , 218 14,518 2018 2017 Liabilities Hulshof Participações Ltda (b) 21,518 37,349 Wilson Quintella Filho (d) 9,222 7,220 Angra Infra FIP (c) 41,662 37,884 Estre Coleta Holding (d) 7,272 — Logistica Ambiental - Loga 731 — Other 1,7 21 335 Total current 82,1 26 82,788 (a) Referes to intercompany transaction within Attend Ambiental which was settled at December 31, 2018. (b) On December 20, 2017, the Company signed a non-compete agreement and other covenants, with Hulshof Participações (“Hulsholf”) and Wilson Quintella Filho (“Wilson”). In such agreement, the Company agreed a non-compete fee to be paid to Wilson and Hulshof, in the amount of US$15,000 (US$12,450 for Hulshof and US$2,550 for Wilson). Negotiation with the holders was also included such debt in the 2019 debt restructuring efforts. (c) Refers to the put option exercised by Angra Infra FIP. Refer to Note 21.6. (d) Intercompany balances from the spin off transaction of Estre Coleta Holding. b) Other related-party transactions The Company conducts transactions under market conditions, agreed in major cases with contracts between the parties, based on the type of operation. Revenues and accounts receivable from related parties for waste management services provided, included under revenue from services and trade accounts receivable, respectively, are as follows: Revenues Trade accounts receivable 2018 2017 2016 2018 2017 CGR Catanduva 85 — 247 85 — Loga 417 2,894 — 417 1,143 Attend 37 64 69 37 12 Other 33 6 92 41 34 Total 572 2,964 408 580 1,189 Costs and accounts payable to related parties for waste management services provided, included under cost of services and trade accounts payable, respectively, are as follows: Costs of services Trade accounts payable 2018 2017 2016 2018 2017 Terrestre Ambiental Ltda. 5 3 55 13 8 Unidade de Tratamento de Resíduos S.A. — 60 361 — — Loga. — — 50 34 34 Attend (a) 2,219 2,457 1,350 456 2,045 Total 2,224 2,520 1,816 503 2,087 (a) Referes to treatment services cost Leachete. c) Interest expense and balance of debentures and private debt acknowledgement As mentioned in Note 13 and 14, the Company has debentures and private debt acknowledgments issued held by its shareholder BTG Pactual, as follows: Financial expenses Debt Related parties 2018 2017 2016 2018 2017 Debentures (25,815 ) (117,879 ) (134,062 ) 261,199 419,236 Private Debt Acknowledgment Instrument (55,444 ) (1,275 ) — 581,901 357,789 d) Key management personnel compensation Key management personnel compensation of the Company is as follows: Description 2018 2017 2016 Salaries and social security charges (*) 14,687 7,300 6,999 Bonuses and social security charges 8,208 6,854 6,124 Stock options 1,440 6,197 28,937 Total compensation 24,335 20,351 42,060 The compensation of key management personnel of the Company includes salaries and bonuses, vacation benefits and 13th monthly salary pay, social security contribution tax (INSS), unemployment compensation fund (FGTS), variable compensation program and stock options. The Company does not offer any additional post-employment benefit to its employees, and does not offer other additional benefits. Balances payable to the Company’s key management personnel are recorded under Labor payable. (*) In 2018, include the Board of Directors and related committees. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Business combination | 9. Business combination Estre Brazil held an ownership interest of 50% in CGR Catanduva – Centro de Gerenciamento de Resíduos Ltda. (“CGR Catanduva”), through its subsidiary Geo Vision Soluções Ambientais e Energia S.A. (“Geovision”), which, prior to obtaining control as described below, was accounted for under the equity method. On January 2, 2017, the shareholders of Catanduva agreed to amend its articles of incorporation, as follows: a) Dissolution of the Board of Directors, which will be replaced by a CEO, a financial manager, a commercial manager and an operational manager; b) The CEO will be appointed by Geovision. These amendments were effective on May 31, 2017. As a result of the amendments, the Company obtained control of Catanduva, through the ability to direct its relevant activities and affect its returns. Upon obtaining control the Company applied IFRS 3 – Business Combinations. The Company has elected to measure the non-controlling Fair value of assets acquired and liabilities assumed The fair value of the identifiable assets and liabilities of CGR Catanduva as of May 31, 2017 were as follows: Fair value ASSETS Cash and cash equivalents 1,513 Accounts receivable 2,280 Taxes recoverable 3,025 Other credits 22 Property, plant and equipment 14,125 Intangible assets - customer relationship 2,195 Total assets 23,160 LIABILITIES Trade payables (296 ) Loans and financing (544 ) Tax installments (5,900 ) Taxes payables (1,858 ) Other liabilities (1,373 ) Deferred taxes liability (746 ) Total liabilities (10,717 ) Total identifiable net assets at fair value 12,443 Non-controlling (6,222 ) The Company did not incur any significant acquisition related costs. The Company obtained control of Catanduva without transferring any consideration and with no changes in its percentage ownership, which was remeasured at fair value on the date when control was obtained, resulting in the recognition of a gain of R$724. Such gain was recognized in other operating expenses, net (Note 27). Catanduva contributed R$5,960 of net revenue and R$425 of profit before tax from continuing operations to the Company’s consolidated results for the year ended December 31, 2017. Had the combination taken place at the beginning of the year, consolidated net revenue from continuing operations contributed by Catanduva would have been R$12,788 and consolidated profit before tax from continuing operations would have been R$1,251. The stake held by Estre Brazil at CGR Catanduva was sold in December 2018 (see details at Note 1.3.3). |
Investments and assets and liab
Investments and assets and liabilities held for sale | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Investments and assets and liabilities held for sale | 10. Investments and assets and liabilities held for sale 10.1 Investments Investments are classified as follows: Description 2018 2017 Investments 7,663 7,206 Total investments 7,663 7,206 Presented below are the percentage ownership of the Company’s interest in associates and joint ventures and related key information as at December 31, 2018 and 2017. December 31, 2018 Interest Current Non-current Assets Current Non-current Liabilities Equity Net Net income Associates Metropolitana Serviços Ambientais Ltda. 50.00 % 584 15,330 221 367 15,326 — (6,677 ) December 31, 2017 Interest Current Non-current Assets Current Non-current Liabilities Equity Net Net income Associates Metropolitana Serviços Ambientais Ltda. 50.00 % 5,100 10,764 1,078 373 14,413 — (1,786 ) Changes in investments at December 31, 2018 are as follows: Balances at Capital Share of Business Transfer of Other Balances at Associates Metropolitana Serviços Ambientais Ltda. 7,206 3,685 (3,339 ) — — 111 7,663 Total 7,206 3,685 (3,339 ) — — 111 7,663 Changes in investments at December 31, 2017 are as follows: Balances at Capital Share of Business Transfer of Other Balances at Associates Logística Ambiental de São Paulo – Loga 16,697 — — — (18,073 ) 1,376 — Unidade de Tratamento de Resíduos – UTR S.A. 6,643 — (303 ) — (6,340 ) — CGR – Catanduva Centro Ger. Resíduos 4,396 — 176 (4,572 ) — — — Terrestre Ambiental Ltda. 7,995 — — — (8,098 ) 103 — ATTEND Ambiental Ltda. 2,158 — — — (2,842 ) 684 — Metropolitana Serviços Ambientais Ltda. 6,578 1,026 (893 ) — — 495 7,206 Total investments 44,467 1,026 (1,020 ) (4,572 ) (29,013 ) (3,682 ) 7,206 Goodwill on investment acquisition 70,185 — — — (71,117 ) 932 — Total 114,652 1,026 (1,020 ) (4,572 ) (100,130 ) (2,750 ) 7,206 (a) On May 31, 2017, the Company became the controlling shareholder (refer to Note 9). 10.2. Discontinued operations and assets and liabilities held for sale Discontinued operations are comprised by: 2018 2017 a) Income Statements CGR Doña Juana (1.3.1) 27,169 687 Estre Energia Renovável (1.3.4) 1,6 65 3,245 Guatapará Energia S.A (1.3.4) 1, 620 3,064 Companies sold to Latte Participações — 7,346 Total 30,454 14,342 b) Assets Leccaros (10.2.2) — 6,580 Estre Energia Renovável (1.3.4) 56 , 452 — Guatapará Energia S.A (1.3.4) 2 5 , 005 — Total 8 1 , 457 6,580 b) Liabilities CGR Doña Juana (10.2.1) — 23,787 Estre Energia Renovável (1.3.4) 36 , 384 — Guatapará Energia S.A (1.3.4) 4,8 17 — Total 4 1 , 201 23,787 10.2.1. CGR Doña Juana At December 31, 2016, the Company classified Doña Juana as an asset held for sale in accordance with IFRS 5. After the investment in Doña Juana was classified as held for sale, the Company accounts for such investment under the equity method in accordance with IAS 28. At November 2018, the Company concluded the sale of Doña Juana (see Note 1.3.1). For the years ended December 31, 2018, 2017 and 2016, Doña Juana’s profit or loss for the year was as follows: 2018 2017 2016 Revenue from services rendered 54,782 69,384 52,000 Cost of services (45,027 ) (56,384 ) (38,807 ) Gross profit 9,755 13,000 13,193 General and administrative expenses (6,723 ) (5,904 ) (4,856 ) Other operating expenses, net (15,934 ) (1,707 ) (1,253 ) Finance costs, net (3,663 ) (4,083 ) (6,076 ) Current and deferred income and social contribution taxes (474 ) 41 (927 ) Profit (loss) for the year (17,039 ) 1,347 81 Main classes of assets and liabilities of CGR Doña Juana classified as held for sale at December 31, 2017 are as follows: 2017 Assets Current assets Cash and cash equivalents 3,092 Trade accounts receivable 7,581 Taxes recoverable 436 Advances to suppliers 4,305 Other current assets 2,818 Total current assets 18,232 Non-current assets Property, plant and equipment 8,862 Intangible assets 6,821 Other current assets 49 Total non-current assets 15,732 Total assets 33,964 2017 Liabilities Current liabilities Loans and financing 29,714 Trade accounts payable 21,481 Labor payable 863 Tax liabilities 6,010 Other current liabilities 10,367 Total current liabilities 68,435 Non-current liabilities — Capital 6,858 Accumulated losses (41,329 ) Total equity (34,471 ) Total liabilities and equity 33,964 Net cash flows incurred by CGR Doña Juana are as follows: 2018 2017 2016 Operating activities 22,274 27,404 26,477 Investing activities (15,911 ) (17,675 ) (14,216 ) Financing activities (3,562 ) (8,053 ) (13,115 ) Net cash generated/(used) 2,801 1,676 (854 ) 10.2.2 Disposal of interest in Leccaros . On April 23, 2018, the Company completed the sale of its 50% interest in Leccaros Participações S.A. (“Leccaros”), for a total selling price of R$22,067, of which R$10,000 in cash was received upon closing the transaction and R$12,067 will be received in 12 equal monthly instalments. Leccaros owned a single asset represented by a land located in São Paulo state and did not have any operations. The net assets of Leccaros as of December 31, 2017, amounted to R$6,580 (R$3,283 attributable to equity holders of the parent). The transaction resulted in a gain on sale of R$37,567 (gain of R$18,784 attributable to equity holders of the parent see Note 27). As of December 31, 2017, the Company classified its investment in Leccaros as an asset held for sale. 10.2.3 Sale of subsidiaries related to energy business unit On December 6, 2018, the Company and its Board of Directors approved the plan to sell the Company’s Energy generation business. Negotiations with some investors already started and it is expected that the sale will be completed within one year. (See Note 1.3.4). For the years ended December 31, 2018, 2017 and 2016, subsidiaries related to energy business unit profit or loss for the year was as follows: Guatapará Energia S.A. 2018 2017 2016 Revenue from services rendered 8,659 9,115 8,251 Cost of services (6,916 ) (5,614 ) (4,725 ) Gross profit 1,743 3,501 3,526 General and administrative expenses (164 ) (299 ) (180 ) Other operating income (expenses), net 811 1,252 2,482 Finance income (costs), net (24 ) (799 ) (1,007 ) Current and deferred income and social contribution taxes (746 ) (410 ) (331 ) Profit for the year from discontinued operation 1, 620 3,245 4,490 Estre Energia Renovável Part. S.A. 2018 2017 2016 Revenue from services rendered 18,310 10,383 4,750 Cost of services (8,975 ) (5,891 ) (3,862 ) Gross profit 9,335 4,492 888 General and administrative expenses (1,933 ) (1,284 ) (703 ) Other Operating income (expenses), net (788 ) 18 133 Finance income (costs), net (4,365 ) 149 (793 ) Current and deferred income and social contribution taxes (584 ) (311 ) (768 ) Profit (loss) for the year from discontinued operation 1,665 3,064 (1,243 ) Main classes of assets and liabilities of of subsidiaries related to energy business unit classified as held for sale at December 31, 2018 and 2017 are as follows: Guatapará Energia S.A. 2018 2017 Assets Current assets Cash and cash equivalents 560 763 Trade accounts receivable 1,536 1,305 Intercompany trade receivable from Grupo Estre ( ) 1,427 — Other current assets 8 23 746 Total current assets 4 , 346 2,814 Non-current assets Property, plant and equipment 2 1,938 23,048 Other current assets 148 — Total non-current assets 22 ,086 23,048 Total assets 26 ,432 25,862 2018 2017 Liabilities Current liabilities Trade accounts payable 1,785 2,167 Tax liabilities 360 178 Other current liabilities 2,672 3,072 Total current liabilities 4,817 5,417 Non-current liabilities — — Capital 10,682 10,682 Reserves 1 0 , 933 9,763 Total equity 21, 615 20,445 Total liabilities and equity 26,4 32 25,862 (*) The balances of related parties to Estre group companies are eliminated in the Consolidated. Estre Energia Renovável Part. S.A. 2018 2017 Assets Current assets Cash and cash equivalents 1,095 2,721 Trade accounts receivable 1,323 2,180 Intercompany trade accounts receivable Group Estre (*) 850 — Other current assets 325 160 Total current assets 3 , 593 5,061 Non-current assets Property, plant and equipment 53 , 693 57,605 Other current assets 16 16 Total non-current assets 53 , 709 57,621 Total assets 57 , 302 62,682 2018 2017 Liabilities Current liabilities Trade accounts payable 14 , 190 16,413 Labor payable 152 87 Tax liabilities 2 , 416 1,731 Loans from related parties with Group Estre (*) 6,407 20,500 Other current liabilities 16 , 889 7,671 Total current liabilities 40 , 054 46,402 Non-current liabilities Tax liabilities 2,737 2,670 Non-current liabilities 2 , 737 2,670 Capital 12 , 000 12,000 Reserves 2 , 511 1,610 Total equity 14 , 511 13,610 Total liabilities and equity 57 , 302 62,682 (*) The balances of related parties to Estre group companies are eliminated in the Consolidated. Net cash flows incurred by subsidiaries related to energy business unit are as follows: Guatapará Energia S.A. 2018 2017 2016 Operating activities 3 , 097 5,162 (4,400 ) Investing activities (3 , 300 ) (4,399 ) 2,519 Financing activities — — 2,500 Net cash generated/(used) (203 ) 763 619 Estre Energia Renovável Part. S.A. 2018 2017 2016 Operating activities (433 ) 25,076 (4,971 ) Investing activities (1 ,193 ) (22,496 ) (16,576 ) Financing activities — — 21,499 Net cash generated/(used) (1 , 626 ) 2,580 (48 ) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Property, plant and equipment | 11. Property, plant and equipment Net Description Weighted Costs Accumulated 2018 2017 Landfills – land and implementation of cells (a) 8.35% 562,063 (328,504 ) 233,559 282,655 Buildings and facilities 5.28% 168,538 (64,748 ) 103,790 123,514 Biogas burning facilities 5.00% 9,337 (2,996 ) 6,341 6,682 Operating equipment 9.04% 136,144 ( ) 53,139 117,171 Furniture and fixtures 10.20% 8,693 ( ) 3,108 3,629 Computers and peripherals 16.95% 11,569 ( ) 2,331 2,647 Vehicles 16.72% 293,853 (250,565 ) 43,288 69,718 Aircraft — — — — 9,191 UVR – Waste recovery unit 7.52% 55,359 (24,941 ) 30,418 38,033 Other property, plant and equipment 14.93% 468 (419 ) 49 89 Advances to suppliers — 1,222 — 1,222 4,743 Construction in progress (b) — 34,820 — 34,820 31,379 Total 1, 282 , 066 ( 770 , 001 ) 512 , 065 689,451 (a) Land intended for landfills and respective buildings are subject to depletion and depreciation calculated based on the usage volume of the landfill. In 2018, depletion and depreciation weighted average rates were 8.35% p.a. (8.00% p.a. for 2017) Landfills include decommissioning cost as explained in Note 19. (b) Construction in progress refers basically to the acquisition of the Waste Sorting Machine (Tyrannosaurus) of R$17,789 in 2018 and Building shed of the Waste Sorting Machine (Tyrannosaurus) for R$4,855 in 2018. Guarantee Financing of property, plant and equipment of subsidiaries are secured by Estre Brazil’s guarantee. Project financing is subject to additional bank guarantee and financing of machinery and equipment items are guaranteed by lien on assets and finance leases. Useful lives of property, plant and equipment The Company reviews the estimated useful lives of property, plant and equipment items at the end of each reporting period, based on the estimated useful lives of the assets reviewed, according to internally prepared technical appraisal reports. Finance lease agreements The net carrying amount of property, plant and equipment under finance lease agreements at December 31, 2018 and 2017 was R$42,867 and R$17,280, respectively. Impairment test for cash generating units Management annually reviews the net carrying amount of assets in order to assess events or changes in economic, operating or technological circumstances that may indicate deterioration or impairment. When such evidence is identified and carrying amount exceeds recoverable amount, a provision for impairment is recorded to adjust the carrying amount to the recoverable amount. Changes in property, plant and equipment for the years 2018 and 2017 were as follows: December 31, Additions Sale and Write-offs (b) Impairment Transfer Sale of December 31, Costs Landfills (land and implementation of cells) 599,985 7 6 , 008 ( 23 , 836 ) ( 78 , 020 ) 3,871 (15,945 ) 562,063 Buildings 186,661 6,216 (7,99 2 ) (8,159 ) (2,112 ) (6,076 ) 168,538 Biogas burning facilities 9,212 — — (7 ) 132 — 9, 337 Operating equipment 221,726 11,235 (3 0 , 154 ) (19,018 ) 15,668 (63,313 ) 136,144 Furniture and fixtures 9,438 548 (142 ) (1,308 ) 187 (30 ) 8 , 693 Computers and peripherals 11,367 772 (60 ) (669 ) 169 (10 ) 11 , 569 Vehicles 309,513 21,917 (11,8 92 ) (5,504 ) (19,326 ) (855 ) 293,853 Aircraft 16,791 — (16,791 ) — — — — UVR – Waste recovery unit 60,963 90 (5,741 ) — 47 — 55,359 Other property, plant and equipment 485 5 — (23 ) 1 — 468 Advances to suppliers 4,743 1,109 (692 ) — (3,938 ) — 1,222 Construction in progress 31,379 22,227 ( 323 ) (1,142 ) 5,301 (22,622 ) 34,820 Total costs 1,462,263 14 0 , 127 ( 97 , 623 ) ( 113 , 850 ) — (108,851 ) 1, 282 , 066 Depreciation Landfills (land and implementation of cells) (317,330 ) ( 49 , 555 ) 549 31,231 (390 ) 6, 991 (3 28 , 504 ) Buildings (63,147 ) (8,570 ) 3 , 728 2,494 — 747 ( 64 , 748 ) Biogas burning facilities (2,530 ) (469 ) — 3 — — (2,99 6 ) Operating equipment (104,555 ) (16,667 ) 17 , 591 10,739 — 9,887 ( 83 , 005 ) Furniture and fixtures (5,809 ) (790 ) 31 975 — 8 ( 5 , 585 ) Computers and peripherals (8,720 ) (1,202 ) 43 632 — 9 ( 9 , 238 ) Vehicles (239,795 ) (26,167 ) 8 , 952 5,378 390 677 (2 50 , 565 ) Aircraft (7,600 ) (528 ) 8,128 — — — — UVR – Waste recovery unit (22,930 ) (4,611 ) 2 , 600 — — — (24 ,941 ) Other property, plant and equipment (396 ) (46 ) — 23 — — ( 419 ) Total depreciation (772,812 ) (1 08 , 605 ) 4 1 , 622 51,475 — 18,319 ( 770 , 001 ) Total property, plant and equipment, net 689,451 3 1 , 522 ( 56 , 001 ) ( 62 , 375 ) — (90, 532 ) 512 , 065 (a) Refers to the sale of CGR Catanduva and reclassification of Energy business to assets held for sale. (b) Refers to write-off of assets according to the Company’s inventory procedure carried out in December 2018. December 31, 2016 Additions Write-offs Impairment Transfer Additions (a) December 31, 2017 Costs Landfills (land and implementation of cells) 592,092 83,843 (52,170) (33,110) (6,580) (b) 15,910 599,985 Buildings 180,179 7,247 (323) (1,107) — 665 186,661 Biogas burning facilities 9,255 — — (43) — — 9,212 Operating equipment 191,545 13,787 (557) (1,742) 17,627 1,066 221,726 Furniture and fixtures 8,878 477 (10) (87) — 180 9,438 Computers and peripherals 10,579 815 (4) (131) — 108 11,367 Vehicles 300,422 12,965 (3,751) (493) — 370 309,513 Aircraft 16,791 — — — — — 16,791 UVR – Waste recovery unit 60,700 263 — — — — 60,963 Other property, plant and equipment 456 29 — — — — 485 Advances to suppliers 5,177 1,896 (2,293) (37) — — 4,743 Construction in progress 13,439 35,567 — — (17,627) — 31,379 Total costs 1,389,513 156,889 (59,108) (36,750) (6,580) 18,299 1,462,263 Depreciation Landfills (land and implementation of cells) (308,520) (48,026) 39,966 1,228 — (1,978) (317,330) Buildings (52,871) (10,441) 16 150 — (1) (63,147) Biogas burning facilities (2,070) (468) — 8 — — (2,530) Operating equipment (82,648) (23,033) 462 667 — (3) (104,555) Furniture and fixtures (4,961) (898) 5 49 — (4) (5,809) Computers and peripherals (7,466) (1,367) 2 120 — (9) (8,720) Vehicles (211,527) (31,631) 3,267 96 — — (239,795) Aircraft (6,335) (1,265) — — — — (7,600) UVR – Waste recovery unit (18,325) (4,605) — — — — (22,930) Other property, plant and equipment (337) (59) — — — — (396) Total depreciation (695,060) (121,793) 43,718 2,318 — (1,995) (772,812) Total property, plant and equipment, net 694,453 35,096 (15,390) (34,432) (6,580) 16,304 689,451 (a) Refers to PP&E of CGR Catanduva, which the Company started consolidating starting on May 31, 2017 (refer to Note 1.3 and 9). (b) Refers to the transfer of Leccaro’s assets previously consolidated to assets held for sale (refer to Note 10.2.2). |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Intangible assets | 12. Intangible assets At December 31, 2018 and 2017, the breakdown of intangible assets is as follows: Net Description Useful Cost Accumulated impairment 2018 2017 Software 60 51, 263 (2 7 , 944 ) 23, 319 28,232 Other intangible assets 24 , 106 ( 8 , 022 ) 16 , 084 38,050 Customer relationship (a ) 36,667 (35,930 ) 737 30,808 Licenses (a ) 1,375 (469 ) 906 24,705 Goodwill on acquisitions — 17,945 — 17,945 466,443 Total 131 , 356 ( 72 , 365 ) 58 , 991 588,238 (a) The Company determined internally the fair value of identifiable intangible assets, consisting mainly of customer relationships and licenses, which are subject to amortization based on the contractual conditions set forth in each case. Changes in intangible assets for 2018 and 2017 are as follows: December 31, Additions Write-offs Transfer Impairment December 31, Costs Software 48,857 3,015 — (609 ) 51,263 Other intangible assets 44,688 — ( 13 , 967 ) (6,615 ) — 24,106 Customer relationship 132,886 — (2,196 ) — (94,023 ) 36,667 Licenses 24,705 — (11,203 ) — (12,127 ) 1,375 Goodwill on acquisitions 466,443 — — 6,615 (4 55 , 113 ) 17,945 717,579 3,015 ( 27 , 366 ) — (5 61 , 872 ) 131,356 Amortization ( - ) Software (20,625 ) (7,878 ) — — 559 (27,944 ) ( - ) Other intangible assets (6,638 ) (8,022 ) 6,638 — — (8,022 ) ( - ) Customer relationship (102,078 ) (4,472 ) 643 391 69,586 (35,930 ) ( - ) Licenses — (6,491 ) — (391 ) 6,413 (469 ) Total amortization (129,341 ) (26,863 ) 7,281 — 76,558 (72,365 ) Total intangible assets, net 588,238 (23,848 ) ( 20 , 085 ) — (4 85 , 314 ) 58,991 December 31, Additions Write-Offs Impairment December 31, Costs Software 22,893 26,879 (915 ) — 48,857 Other intangible assets 20,621 24,067 — — 44,688 Customer relationship 130,690 2,196 — — 132,886 Licenses 24,705 — — — 24,705 Goodwill on acquisitions 469,196 — — (2,753 ) 466,443 668,105 53,142 (915 ) (2,753 ) 717,579 Amortization ( - ) Software (13,099 ) (7,710 ) 184 — (20,625 ) ( - ) Other intangible assets (6,638 ) — — — (6,638 ) ( - ) Customer relationship (94,536 ) (7,542 ) — — (102,078 ) Total amortization (114,273 ) (15,252 ) 184 — (129,341 ) Total intangible assets, net 553,832 37,890 (731 ) (2,753 ) 588,238 Impairment test for cash generating units A cash generating unit (“CGU”) is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Historically, the acquisitions that generated such goodwill balances were mainly related to the expansion and development of business in different regions, such as the acquisition of Resicontrol, with operations in the city of Tremembé, CTR Itaboraí, with operations in Rio de Janeiro state, Grupo Viva, with operations in the states of Bahia and Alagoas, and Grupo GeoVision, in the city of Ribeirão Preto. The operation and cash generation of such CGUs is directly related to the services rendered on each geographical region that consist in an integrated operation and, as such, are tested for impairment as separate CGUs, considering the geographical aspect inherent to the respective service and the lack of interrelation and synergies among the operations for the different CGUs. During 2018, the waste collection business of Estre presented a rapid deterioration, mainly due to the market conditions including strong margins compression. These declining margins makes this business unattractive to renew some of the collection contracts. Since the Company does not expect a recovery of the market conditions in the future, the Company decided to exit gradually from this market segment and such strategy was reflected in the estimated future cash flow used for impairment testing, which resulted in impairment losses recognized in 2018. For impairment testing purposes, goodwill arising from business combinations and intangible with indefinite useful live were allocated to the CGU, as of December 31, 2018 and 2017, as follows: December 31, 2018 CGU Projection period Discount Perpetuity Assets Goodwill Carrying Value in Goodwill Assets Goodwill Geovision (Group) 01/01/19 to 12/31/23 15.66% 4.68% 144,261 242,489 386,750 144,261 (242,489 ) — — Resicontrol 01/01/19 to 12/31/23 15.66% 4.68% 94,210 87,639 181,849 112,155 (69,694 ) — 17,945 Viva (Group) 01/01/19 to 11/30/38 15.66% — 226,618 136,315 362,933 115,377 (166,516 ) (51,419 ) — CTR Itaboraí 01/01/19 to 12/31/23 15.66% 4.68% 26,267 — 26,267 (4,215 ) — (9,626 ) — Ambiental Sul 01/01/19 to 12/31/23 15.66% 4.68% 7,053 6,615 13,668 5,723 (6,615 ) (1,330 ) — TOTAL 498,409 4 73,058 971,467 373,301 ( 485,314 ) ( 62,375 ) 17,945 December 31, 2017 CGU Projection period Discount Perpetuity Assets of Goodwill Carrying Value in Goodwill Assets Goodwill Geovision (Group) 01/01/18 to 12/31/22 15.20% 7.00% 180,728 242,803 423,531 477,855 (314 ) (90 ) 242,489 Resicontrol 01/01/18 to 12/31/22 15.20% 7.00% 53,992 87,639 141,631 267,109 — — 87,639 Viva (Group) 01/01/18 to 12/31/22 15.20% 7.00% 235,557 136,315 371,872 484,793 — — 136,315 CTR Itaboraí 01/01/18 to 12/31/22 15.20% 7.00% 41,420 2,439 43,859 (11,956 ) (2,439 ) (34,342 ) — TOTAL 511,697 469,196 980,893 1,217,801 (2,753 ) (34,432 ) 466,443 The recoverable amount of the cash generating units shown above was computed based on the calculation of the value in use, considering cash flow projections from financial budgets approved by the board of directors, discounted to present value. Considerations for the calculation of value in use: a) Currency: Brazilian Reais (BRL); b) Direct taxes: taxes on gross revenue applicable to the Company’s operations were considered; c) Financial projections are presented in nominal terms, i.e., considering the estimated inflation over the projected period; d) Discount rate: calculated according to the WACC (Weighted Average Cost of Capital) methodology, after income taxes; and e) Projections: budget prepared by Company and approved by the Board of Directors. Main assumptions used on the calculation of the value in use • Revenue Growth: • EBITDA: it takes into account the historical margin, estimate of price correction, as well as the projects in progress with the objective of greater cost efficiency and revenue growth. Perpetuity growth rate, not applicable for collection segment contracts, given recent market dynamics, the Company does not take into consideration their renewal any longer, after the cash flow calculation period on the long term view: The Perpetuity rate was obtained considering the follow assumptions: a) Long term inflation (IPCA); and b) Increase in population and consequent volume of disposals. The discount rate is calculated using the WACC (Weighted Average Cost of Capital) methodology, before income taxes. The WACC is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm’s cost of capital. The WACC represents the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere. Companies raise money from a number of sources: common stock, preferred stock, straight debt, convertible debt, exchangeable debt, warrants, options, pension liabilities, executive stock options, governmental subsidies, and so on. Different securities, which represent different sources of finance, are expected to generate different returns. The WACC is calculated taking into account the relative weights of each component of the capital structure. The more complex the company’s capital structure, the more laborious it is to calculate the WACC. Inflation (IPCA) Inflation was estimated considering inflation forecasts released by the main financial institutions of Brazil. The Brazilian Central Bank use to publish a research called Market Readout. On the Brazilian Central Bank Website we can find the complete long term forecast for several economic financial indicators. From the total amount of R$547,689 related to the impairment for the fiscal year 2018, showed above, R$485,314 was recorded as an impairment of the goodwill, and R$62,375 was recorded as an impairment of Others Intangibles and PP&E (please refer to Notes 11 and 12). Sensitivity analysis For the sensitive analysis of goodwill impairment, the Company considered the following variations (increases / decreases), expressed in percentage points (p.p) for the year ended December 31, 2018: • Increase in 0.5 p.p on the discount rate • Decrease in 1.0 p.p on the EBITDA margin for all periods projected, including in perpetuity • Decrease in 0.5 p.p on the growth rate in perpetuity Except for the CGUs for which an impairment loss was recognized in 2018, the sensitivity analysis indicated that the recoverable amount for these CGUs would continue to be higher than its corresponding carrying amount. For the CGUs for which an impairment loss was recognized in 2018 the sensitivity analysis resulted in further impairment. |
Loans and financing
Loans and financing | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Loans and financing | 13. Loans and financing Breakdown of loans and financing is as follows: Additional Annual charges 2018 2017 Working capital Working capital (a) CDI + 2.0% p.a. 581,901 357,789 Working capital CDI + 0.05% p.m. 2,850 2,541 Working capital (b) CDI + 8.7% p.a. 5,027 — BNDES FINAME (c) TJLP + 3.9% to 5.5% p.a. — 1,496 FINAME (c) TJLP + 10.3% to 12.9% p.a. — 31 FINAME (c) TJLP + 1.0% to 12.9% p.a. — 197 FINAME (c) TJLP + 2.5% to 4.6% p.a. 4 2,643 FINAME (c) TJLP + 5.1% to 9.0% p.a. 302 1,915 Lease Lease (d) 1.92% p.m to 13.60% p.m. 38,213 18,902 Total loans and financing 628,297 385,514 Current 601,475 14,139 Non-current 26,822 371,375 (a) On June 13, 2017, Estre and BTG Pactual executed a private debt acknowledgment instrument (Instrumento Particular de Confissão de Dívida) that progressively repealed and replaced the indenture governing the first issuance of debentures, and had substantially the same terms and conditions as those debentures. As part of Estre’s debt restructuring held in 2017, the Company partially repaid the outstanding balance of these debentures and related debt acknowledgment instrument. For additional information, see Note 14. (b) Loans raised for capital expenditure, new business acquisitions and other projects. Guarantees provided consist of receivables, promissory notes and shareholders’ collateral signatures. (c) Financing for investment in infrastructure and implementation of new waste treatment units and fleet renewal. The related assets are pledged as collateral in addition to the Company’s and shareholders’ collateral signatures. (d) Finance lease, guaranteed by the leased item. The loans and financing (non-current) repayment schedule at December 31, 2018 and 2017 was as follows: Period 2018 2017 Through December 2019 — 1,709 Through December 2020 12,130 24,088 Through December 2021 8,314 40,005 Through December 2022 4,940 305,573 Through December 2023 1,438 — Total 26,822 371,375 Leases Future minimum lease payments, under finance lease agreements together with the present value of net minimum lease payments are as follows: 2018 2017 Minimum Present Minimum Present Within one year 23,363 19,041 12,637 12,146 After one year, but before five years 41,544 36,306 37,406 37,019 Total minimum lease payments 64,907 55,347 50,043 49,165 Less amounts representing financial charges (26,694 ) — (31,141 ) — Present value of minimum lease payments 38,213 55,347 18,902 49,165 During 2018 and 2017, the Company entered into financial lease agreements for certain vehicles. Covenants related to loan and financing are presented in Note 14. |
Debentures
Debentures | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Debentures | 14. Debentures Description Additional Annual charges 2018 2017 1 st (a) CDI + Interest from 2.0% 261,199 419,236 2 nd (b) CDI + Interest from 2.0% 705,187 649,743 Total 966,386 1,068,979 Current 966,386 — Non-current — 1,068,979 (a) 1 st On June 27, 2011, the Company conducted its 1 st The proceeds from the issue of these debentures were used to settle loans outstanding from Banco BTG Pactual. In December 2012, the Company debenture holders agreed to adjust the interest rate to be charge in new issuances. Such interest rate was reduced and it is based on the CDI rate plus 2.95% spread per year. During the years 2013 to 2016, the Company renegotiated the portions of principal maturing in September 2013, March 2014, September 2014, March 2015, September 2015, March 2016 and September 2016, which would be paid together with the remaining installments. The debentures provide for accelerated maturity clauses should the following events take place: (i) corporate transactions (merger, spin-off, On August 10, 2017, Estre entered into a binding facility commitment letter with the holders of the debentures and related debt acknowledgment instrument, which provided for the restructuring of the existing debentures and related debt acknowledgment instrument through the prepayment of US$200 million, a partial debt write-down and the restructuring of the existing debentures. On December 7, 2017, Estre amended the binding facility commitment letter, pursuant to which the creditors agreed to amend the required prepayment to a defined range of the repayment of a minimum debt prepayment of US$100 million and a maximum debt prepayment of US$200 million. On December 21, 2017, Estre completed the debt restructuring and prepaid R$199,086 of the outstanding amount. In addition, the debenture holders granted a haircut for an amount of R$49,772, corresponding to 25% of the prepaid amount. Such haircut was recorded as finance income. As a result of the restructuring above, the outstanding debentures and related debt acknowledgment instrument bear interest at a rate of CDI plus 2.0% per annum, with payments of principal to be repaid semi-annually in 11 installments after a three-year grace period and maturing in 8 years. Interest is payable semi-annually after a grace period of two years on the debenture outstanding balance plus monthly compounded interest accrued over the first 18 months. IFRS 9 requires that a substantial modification of the terms of an existing financial liability, or a part of it, should be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The Company concluded that the net present value of the cash flows under the new terms of the refinanced debt, discounted at the original effective interest rate was below a 10% difference compared to the discounted present value of the remaining cash flows of the original debt instrument, therefore, the Company accounted for the debt restructuring as a debt modification. (b) 2 nd On December 14, 2012, the Company completed its second issue of unsecured debentures, not convertible into shares, with collateral and additional personal guarantee, for public distribution with restricted placement efforts, for the issue of 3,000 debentures with a face value of R$250. The actual issuance was for 2,600 debentures. The debentures mature in five years and bear interest at the CDI rate plus of 2.60% p.a. Principal would be repaid semiannually, in seven installments beginning in December 2014. In 2015 and 2016, the Company renegotiated installments maturing June 2015, December 2015, June 2016 and December 2016, with payment in 2017. The proceeds from the issue of the debentures were used to settle bank loans, to extend the debt maturities in working capital. The debentures provides for accelerated maturity clauses should the following events take place: (i) corporate transactions (merger, spin-off On August 10, 2017, Estre entered into a binding facility commitment letter with the holders of the debentures (1st and 2nd issuances) and related debt acknowledgment instrument, which provided for the restructuring of the existing debentures and related debt acknowledgment instrument through the prepayment of US$200 million, a partial debt write-down and the restructuring of the existing debentures. On December 7, 2017, Estre amended the binding facility commitment letter, pursuant to which the creditors agreed to amend the required prepayment to a defined range of the repayment of a minimum debt prepayment of US$100 million and a maximum debt prepayment of US$200 million. On December 21, 2017, Estre completed the debt restructuring and prepaid R$166,881 of the outstanding amount. In addition, the debenture holders granted a haircut for an amount of R$41,720, corresponding to 25% of the prepaid amount. Such haircut was recorded as finance income. As a result of the restructuring above, the outstanding debentures and related debt acknowledgment instrument bear interest at a rate of CDI plus 2.0% per annum, with payments of principal to be repaid semi-annually in 11 installments after a three-year grace period and maturing in 8 years. Interest is payable semi-annually after a grace period of two years on the debenture outstanding balance plus monthly compounded interest accrued over the first 18 months. IFRS 9 requires that a substantial modification of the terms of an existing financial liability, or a part of it, should be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The Company concluded that the net present value of the cash flows under the new terms of the refinanced debt, discounted at the original effective interest rate was below a 10% difference compared to the discounted present value of the remaining cash flows of the original debt instrument, therefore, the Company accounted for the debt restructuring as a debt modification. The breakdown of the debentures is as follows: 1st issue 2nd issue Transaction costs Total Balances at 2016 906,729 761,307 (2,407 ) 1,665,629 Interest 117,879 97,037 — 214,916 Debt acknowledgement instrument (356,514 ) — — (356,514 ) Transaction costs — — 2,407 2,407 Repayment (199,086 ) (166,881 ) — (365,967 ) Discount (49,772 ) (41,720 ) — (91,492 ) Balances at 2017 419,236 649,743 — 1,068,979 Interest 25,815 55,444 — 81,259 Debt acknowledgement instrument (183,852 ) — — (183,852 ) Balances at 2018 261,199 705,187 — 966,386 (c) Covenants According to the Company’s debenture agreements, the following financial indices must be calculated and presented by the Company’s management, semi-annually on June 30 and December 31 of each year, as from December 31, 2018: (a) the quotient of the division of Net Debt by EBITDA shall be equal to or lower than the following indices based on the Company’s consolidated financial statements for the following fiscal years: Net Debt / EBITDA December 31, 2018 - 4.0x December 31, 2019 and subsequent fiscal years - 3.5x (b) from December 31, 2019 (inclusive), for three consecutive semesters, the ratio of the Net Debt division to EBITDA should not exceed 3.0x; (c) the Debt Service Coverage Ratio shall be equal to or greater than 1.2x if the Net Debt / EBITDA ratio is greater than 2.8x and shall be equal to or greater than 1.0x if the ratio of Net Debt / EBITDA is equal to or lower than 2.8x. As a result of the liquidity constraints identified by management, the Company was not able to maintain financial covenants clauses included on its Debt Instruments for the year ended on December 31, 2018, and the total debt was reclassified and presented as a current liability. Based on this fact, the Company and its Board of Directors has decided to initiate negotiations with the holders of its Debt Instruments with the goal of restructuring its financial debt. The Company engaged a restructuring firm as well as outside legal counsel to advise in connection with a debt restructuring process. The Company currently expects to conclude the debt restructuring during 2019. There can be no assurance that the debt restructuring process will be successful or that the Company will be able to generate sufficient liquidity in order to fully address the liquidity concerns. The Company´s inability to significantly improve its liquidity position and comply with its financial covenants and other payment obligations could have a material adverse effect and result in a judicial reorganization process, which may result in the shareholders losing their entire investment. |
Trade accounts payable
Trade accounts payable | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Trade accounts payable | 15. Trade accounts payable Description 2018 2017 Invoices payable 126,003 116,218 Services to be billed 46,833 9,808 Related parties 503 2,087 Total 173,339 128,113 The aging of trade accounts payable is as follows: Description 2018 2017 Falling due 87,465 51,288 Overdue up to 30 days 2 8 , 393 41,291 Overdue from 30 to 60 days 1 5 ,1 37 6,987 Overdue from 31 to 90 days 7,650 6,749 Overdue from 91 to 180 days 7, 703 10,366 Overdue from 181 to 360 days 4,1 33 4,487 Overdue for more than 360 days 2 2 , 858 6,945 Total 1 73 , 339 128,113 |
Labor payable
Labor payable | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Labor payable | 16. Labor payable Description 2018 2017 Salaries 11,345 14,227 Bonus and profit sharing payable 1,565 22,459 Social charges FGTS 2,544 3,258 INSS – Social security 32,192 17,327 IRRF 1,914 2,879 Sundry taxes 6,398 7,622 Accrual for vacation pay and related charges 42,561 50,153 Total 98,519 117,925 |
Tax liabilities
Tax liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Tax liabilities | 17. Tax liabilities Description 2018 2017 PIS payable (a) 17,304 16,585 COFINS payable (a) 79,733 76,323 Service tax payable (b) 11,792 13,708 Withholding service tax payable 403 361 IRPJ payable (c) 1 2 ,3 63 12,200 CSLL payable (c) 4, 888 2,728 PIS/COFINS/CSLL payable (d) 208 457 Installment payment of federal taxes (e) 33,082 16,544 Installment payment of taxes – PRT(f) 273,682 123,467 Installment payment of taxes – PERT(g) 8,543 243,849 Installment payment of local taxes (h) 15,720 21,537 Installment payment of taxes - Law No. 12,996/14 Refis Copa (i) 11,415 12,597 Withholding INSS (j) 147 203 Withholding IRPJ (k) 353 569 Other taxes 44,3 30 24,161 Total 51 3 , 963 565,289 Current 15 1 , 686 169,505 Non-current 362,277 395,784 (a) PIS and COFINS are taxes levied by the Brazilian federal government on gross revenues. The standard rates are 7.60% for PIS and 1.65% for COFINS applicable to entities declaring income tax and social contribution on the ‘actual profits’ basis. These amounts are invoiced to and collected from our customers and recognized as deductions to gross revenue (Note 23) against Tax liabilities, as we are acting as agents collecting these taxes on behalf of the government. PIS and COFINS taxes paid on certain purchases may be claimed back as tax credits to offset PIS and COFINS payable. These amounts are recognized as Taxes recoverable (Note 6) and on a monthly basis are offset against PIS and COFINS Tax payable, and presented net as the amounts are due to the same tax authority. Brazilian tax legislation allows smaller entities with less than R$78 million in annual gross revenues to opt to declare income taxes on the ‘presumed profits’ basis. These are subject to lower COFINS and PIS rates of 3.00% and 0.65%, respectively. However, PIS and COFINS taxes on purchases may not be claimed back and will not generate tax credits under the presumed profits basis. (b) ISS is a tax levied by municipalities on revenues from the provision of services. ISS tax is added to amounts invoiced to our customers for the services we render. These are recognized as deductions to gross revenue (Note 23—Taxes levied—ISSQN) against Tax liabilities, as we are acting as agents collecting these taxes on behalf of municipal governments. The rates may vary from 2.00% to 5.00%, however most of the municipalities in which we operate levy ISS at the higher rate. Each municipality sets slightly different rules regarding the use of credits and withholding of ISS tax on payments to suppliers. (c) IRPJ and CSLL are corporate income taxes levied by the Brazilian federal government. The IRPJ rate is 25% and the CSLL rate is 9%, resulting in a combined federal corporate income tax rate of 34% on taxable profits. The expense for current income tax is recognized in the statement of profit or loss under ‘Current income and social contribution taxes’ against tax payable. However, for some entities in the group, advances for the payment of income tax are paid on a quarterly basis during the tax year and are recognized as an asset under Taxes recoverable (Note 6—‘Corporate income tax (IRPJ)’ and ‘Social contribution tax on net profit (CSLL)’). Income tax is levied on legal entities individually, with no right of offset between entities in a group. Smaller entities opting to declare income taxes on the ‘presumed profits’ basis are taxed at the same rates on a ‘presumed profit’ of 32% of gross revenues. (d) Purchases of certain materials or services require us to retain and pay taxes on behalf of our suppliers. The rate of 4.65% in relation to PIS, COFINS and CSLL tax on applicable purchases is withheld from payments made to suppliers and recognized as a tax liability, with no impact to the statement of profit or loss. (e) Refers to installment payment of IRPJ, CSLL, PIS and COFINS, which payment is deferred in 30 to 60 installments, adjusted by the SELIC rate. The accrual of interest on this liability is recognized as a financial expense under the line item—‘Interest for late payment of taxes’ (Note 28). (f) PRT - payment of 24% in 24 installments, residual not contemplated by use of damages will be paid in 60 months, according to MP n ° 766 of April 4, January 2017. The taxes included in the PRT are as follows: PIS/COFINS, CSLL, IRPJ and IRRF. (g) PERT - installment of unpaid taxes and IOF, modality does not include use of impairment, installment in 120 months, according to MP nº 783 of May 31, 2017. The taxes included in the PERT are as follows: PIS/COFINS and IOF. (h) Refers mainly to ISS payable to the Paulínia City Government in 36 installments, not subject to inflation adjustment or interest. (installments of ISS of the cities of São Paulo, Paulínia, Itapevi and Maceió, plots range from 24 to 120). (i) In August 2014, enactment of Federal Law No. 12,996/2014 (‘‘REFIS da Copa’’) enabled the inclusion of new tax contingencies in REFIS (tax installment payment program). The Company initially included the overdue taxes in REFIS da Copa in order to benefit from interest and fine amnesty. With the launch of PERT in 2017, the Company decided to include most part of taxes in this new program, instead of REFIS da Copa. (j) INSS is a social security charge levied on wages paid to employees. On certain purchases of services we are required to withhold 11% of the amounts billed by our suppliers and pay INSS tax on their behalf, with no impact to the statement of profit or loss. (k) On certain purchases of services we are required to withhold 1.5% of the amounts billed by our suppliers and pay IRPJ (Income tax) on their behalf, with no impact to the statement of profit or loss. 2017 Tax Amnesty Program On May 31, 2017, the Company joined a tax amnesty program (the “2017 Program”), under which the Company settled the payment of certain unpaid overdue taxes and tax contingencies, including some which were in litigation, through November 30, 2016, including interest and fines. The 2017 Program allowed for the use of unused tax loss carry forward to settle the tax liability under the program. As a result, the Company recognized a deferred tax asset related to the tax loss carry forwards that was used to settle the tax liability under the program and which the Company did no previously recognized. In addition, the Company recognized a tax liability as follows: As of May 31, 2017 Federal taxes past due recorded in prior years 160,605 Legal claims in progress recorded in 2017 174,028 Tax installments in progress already recorded in prior years 195,094 Total tax liability to be settled under the program 529,727 Tax loss carryforward used to settle the tax liability under the program (Note 22) (370,116 ) Total tax liability balance to be settled in installment payments 159,611 The balance of R$ 159,611 would be paid as follows: • R$ 125,415 in 24 installment payments; and • R$ 34,196 in 60 installment payments. PRT (Tax Regularization Program) The tax liability balance as of December 31, 2018 and 2017 was as follows: Balance as of May 31,2017 159,611 Payments (42,310 ) Accrued interest 6,166 Balance as of December 31, 2017 123,467 IOF Inclusion - Sep / 17 - transferred from PERT 70,995 Addition of processes in the PRT 2,417 Additional tax liabilities included in the PRT 40,288 Tax loss carry forward not used to settle the tax liability under the program 87,826 Payments (68,984 ) Accrued interest 28,338 Transfer to PERT – CSLL (10,433 ) Reversal of interest and fine (232 ) Balance as of December 31, 2018 273,682 Current 46,455 Non-current 227,227 The expected timing of non-current outflows at December 31, 2018 are as follows: Year of maturity 2018 2020 46,455 2021 46,455 2022 46,455 2023 and following years 87,912 Total 227,227 PERT (Special Tax Regularization Program) On July 3, 2017, the Company joined the PERT, for the payment of unpaid taxes due in the months of December 2016 to April 2017. In September 2017, the IOF values for the period from October / 2012 to March / 2017 were included in the installment basis. The chosen modality provides the payment in 120 installments, using tax loss or negative basis to deduct the installment payment. In December 2018, the Company concluded the consolidation of the PERT, on which tax losses amounting to R$ 80,083 were used to partially compensate the total open amount. The same is composed as below: Federal tax payable as of July 31, 2017 134,947 Tax provision balance in prior periods included Aug, 2017 6,727 IOF Inclusion 103,907 Use of unused tax loss carry forwards Aug, 2017 (Note 22) (4,452 ) Payments – prepayments (5,721 ) Interest 8,441 Balance as of December 31, 2017 243,849 IOF Inclusion - Sep / 17 - transfer to PRT (70.995 ) Interest reversal - PERT (1,803 ) Interest 2,460 Transfer from PRT – CSLL 10,433 Income and social contribution tax variation at PERT consolidation (Note 22) 3,860 Reversal of taxes not available for consolidation (47,999 ) Reversal of taxes not due (5,951 ) Penalties, fines and interests reversal (17,409 ) Payments (18,011 ) Tax losses used to compensate tax payable (80,083 ) Tax credits used (9,808 ) Balance as of December 31, 2018 8,543 Current 603 Non-current 7,940 The expected timing of non-current outflows at December 31, 2018 are as follows: Year of maturity 2018 2020 603 2021 603 2022 603 2023 and following years 6,131 Total 7,940 Eligible tax debt balances below refer to REFIS Copa are: 2018 2017 Principal 62,965 62,965 Fine and SELIC interest 79,085 79,085 Reduction due to amnesty of interest, fines and legal charges (44,055 ) (44,055 ) Repayments by prepayments (30,428 ) (30,428 ) Payment in installments (29,825 ) (28,623 ) SELIC restatement 1,513 1,494 Use of unused tax loss carry forwards (27,840 ) (29,213 ) Reversion of unused tax loss carry forwards from REFIS to PRT (Note 22) — 1,372 Balance payable 11,415 12,597 At December 31, 2018, the Company was compliant with all conditions to be part of the tax payment installments program, and the use of unused tax loss carryforwards of REFIS “Copa” totaled R$5,605. Installments mature as follows: Year of maturity 2018 2017 2018 — 1,675 2019 1,694 1,675 2020 1,694 1,675 2021 1,694 1,675 2022 1,694 1,675 2023 onwards 4,639 4,222 Total 11,415 12,597 The Company elected to enroll to the program, collected and prepaid amounts under REFIS da Copa for all debts that matured through December 31, 2013 in 180 installments. On September 8, 2015, the period for consolidation of Social security tax debts in the REFIS da Copa installment payment program started, and the Company consolidated all its social security tax debts electronically on the Brazilian IRS web site, except for debts referring to IRPJ and CSLL prepayments, which were consolidated manually through specific forms. |
Accounts payable for land and i
Accounts payable for land and intangible asset acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Accounts payable for land and intangible asset acquisition | 18. Accounts payable for land and intangible asset acquisition Description 2018 2017 Land and intangible asset acquisition (a)/(b)/(c) 15,925 25,376 Present value adjustment (d) (5,741 ) (5,999 ) Total 10,184 19,377 Current 5,380 8,965 Non-current 4,804 10,412 (a) On December 27, 2013, Estre acquired a plot of land in Jardim Lídia from Banco Pine, for R$30,000, of which R$1,325 was paid in cash and the remainder will be settled in 60 fixed installments, beginning June 30, 2014. The outstanding balance at December 31, 2018 was R$3,292 (R$8,682 at December 31, 2017). (b) On May 2016, the Company started the implementation of SAP operating systems and Oracle pricing platforms. The systems were acquired from T-Systems (c) In June 2006, Estre entered into negotiation with Masa - Comércio e Serviços de Terraplanagem Ltda., to acquire land in the city of Itapevi, initially for R$4,400 in legal discussion; after renegotiation in 2014 and through Private Debt Acknowledgment and Novation Agreement and other Covenants of May 14, 2015, the selling price was restated by IGP-M (d) At December 31, 2018, the discount rate used was 15.66% (15.26% at December 31, 2017). |
Provision for landfill closure
Provision for landfill closure | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Provision for landfill closure | 19. Provision for landfill closure NBR standard No. 13,896/1997 defines some rules that the Company, as owner of landfills, must comply with during closure and post-closure of landfills. Decommissioning liability are provided for the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the relevant asset. The provision includes the estimated costs to be incurred for the final closure of landfills, including the leachate drainage, collection and treatment, biogas collection and treatment, sampling and laboratory analysis of ground water and surface water, among other. The costs to be incurred until the closure of a landfill or during the long-term monitoring period (20 years) were discounted to present value at an average rate of 15.66% for year ended in December 31, 2018 (15.26% as of December 31, 2017), which reflects the Company’s cost of capital. The balances by landfill are as follows: Description 2018 2017 Paulínia 42 , 379 58,688 Paulínia II 5 , 008 3,656 Curitiba 2 5 , 690 19,053 Itapevi 8 , 917 11,663 Aracaju 509 356 CGR Guatapará 6 , 858 6,106 CGR Guatapará – Jardinópolis 1, 754 2,764 CGR Guatapará – Piratininga 647 368 Resicontrol – Tremembé 2 , 184 3,506 Maceió 7 , 220 4,919 Feira de Santana 1 , 238 2,446 Sarandi — 3 CGR Catanduva — 4 Total 10 2, 404 113,532 Current 5,613 20,651 Non-current 96 , 791 92,881 Changes in provisions are as follows: 2018 2017 2016 Balance at beginning of the year 113,532 101,620 83,071 Additions 9,109 31,318 10,094 Effect of passage of time 8,653 (4,555 ) 8,455 Reversal (18,939 ) (4,685 ) — Amount used (9,95 1 ) (10,166 ) — Balance at end of the year 10 2, 404 113,532 101,620 The expected timing of outflows are as follows: Period 2018 2017 Up to 1 year 5,613 20,651 2 to 5 years 2 6 , 371 31,911 After 5 years 70,420 60,970 Total 10 2, 4 0 4 113,532 |
Provision for legal proceedings
Provision for legal proceedings | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Provision for legal proceedings | 20. Provision for legal proceedings In the ordinary course of business, the Company is exposed to certain contingencies and risks. The provision for contingencies includes labor, tax and civil proceedings under dispute at the administrative and legal levels, based on management’s analysis and the opinion of the Company’s legal counsel, for cases in which the likelihood of loss is considered probable, as follows: Nature 2018 2017 Labor proceedings (a) 31 , 366 22,795 Tax proceedings (b) 34 , 041 122,744 Civil proceedings 4,867 2,223 Total 7 0, 274 147,762 (a) Primarily consists of law suits filed by former employees claiming severance payment, overtime, additional payment for transfers, among others, for individually significant amounts. (b) In 2017, the Company recorded a provision for tax contingency regarding levy of taxes, substantially concerning Tax on Financial Transactions (“IOF”) and INSS. The amount was included in the tax amnesty program described in the Note 17. The remaining balance refers to other tax assessments. The Company has the following contingent liabilities referring to proceedings classified by legal counsels as possible losses, for which no provision has been recorded: Nature 2018 2017 Labor proceedings (a) 26,301 17,888 Tax proceedings (b) 345,980 212,856 Civil proceedings (c) 89,674 82,076 Total 461,955 312,820 (a) Refers mainly to labor lawsuits arising from employees and third party claims, joint liability, hazard pay and health hazard allowance. (b) On December 15, 2017, the Company’s subsidiary, Cavo Serviços e Saneamento S.A. (“Cavo”) received an official tax infringement notice in the amount of R$90,634 (historical amount) challenging the deductibility of payments made to a number of specified suppliers in 2012, for which there is lack of sufficient evidence that good and services were actually provided. On December 22 and 27, 2017, Estre Ambiental S.A. received two official tax infringement notices in the aggregate amount of R$121,778 (historical amount) challenging the deductibility of payments made to a number of specified suppliers from 2012 to 2015, for which there is lack of sufficient evidence that good and services were actually provided. On December 3, 2018, the Company received a further tax infringement notice from the Brazilian federal tax authorities in the aggregate amount of R$120,948 million concerning transactions with a number of specified suppliers in relation to payments made in 2013. The Company, in connection with their external legal advisors, is challenging such assessments, and already presented its defense. (c) Refers basically to: i) lawsuit filed by the São Paulo State Prosecutor’s Office challenging the lawfulness of five agreements entered into between the city government of Taboão da Serra and the investee Viva Ambiental regarding provision of public cleaning services. In 2014, the Federal Prosecutor’s Office (“MPF”) requested the return of total emergency agreements entered into by and between Viva and Taboão City, which amounted to R$154,123. In 2015, sellers of VIVA filed an injunction for early presentation of proof, and requested legal expert inspection that detected misstatements in amounts requested by the MPF. The outcome of this inspection indicated a possible loss amount of approximately R$39,247 (historical amount); ii) public action lawsuit filed by the Prosecutor’s Office of Itapevi challenging the implantation of our landfill due to supposed inconsistencies with the local regulation such as proximity with water springs and population, and requests the stoppage and reversal of all deforestation activity, as well as payment of a fine. This lawsuit is still in its instruction phase and the involved value is of R$15,050; iii) popular action moved by a certain group of people, also related to Itapevi, in which the population reinforce the arguments of the aforementioned action, described in item “ii” above. The lawsuit is to be decided simultaneously with the one set forth in item “ii”. The involved value is also of R$15,050. Changes in provisions for contingencies are as follows: Labor proceedings Tax Proceedings Civil proceedings Total Balance on December 31, 2016 48,658 195,316 1,565 245,539 Additions 10,129 79,264 8,611 98,004 Reversals (26,820 ) — (6,331 ) (33,151 ) Payments (9,172 ) — (1,622 ) (10,794 ) Tax Amnesty Program — (151,836 ) — (151,836 ) Balance at December 31, 2017 22,795 122,744 2,223 147,762 Additions 32 , 913 18 , 161 11,474 6 2, 548 Reversals (9,789 ) (6 6 , 57 6 ) (2,247 ) (78, 61 2 ) Payments (14,553 ) — (6,583 ) (21,136 ) Tax Amnesty Program — (40,288 ) — (40,288 ) Balance at December 31, 2018 31 , 366 34 , 041 4,867 7 0, 274 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Equity | 21. Equity 21.1. Capital and warrants The total authorized capital of the Company is US$30,000 thousand, represented by 290,750,000 ordinary shares and 9,250,000 class B shares, with a US$ par value of 0.0001 per share. As explained in Note 1, in 2017, the Company received a capital contribution of US$139,900 thousand (R$462,789), comprising US$11.2 million (R$37,050) from the former shareholders of Estre USA that did not redeem their public shares in connection with the Transaction, and US$128.7 million (R$425,739) from the proceeds of the sale of ordinary shares to PIPE Investors. The amount of US$117,092 thousand (R$387,342) (net of issuance cost) was recorded as a capital contribution in equity. The above resulted in the issuance of 15,438,000 ordinary shares to the PIPE Investors and 1,213,846 ordinary shares to the former shareholders of Estre USA. In addition, the Company issued 27,001,889 ordinary shares to the former shareholders of Estre Brazil, except for Angra (see Note 21.6), in exchange for their shares in Estre Brazil. Furthermore, on December 21, 2017, the Company issued 1,983,000 ordinary shares to Estre Ambiental Employee SPV, Inc. a Cayman Islands exempted company (the “Employee Compensation Entity”). Pursuant to the Memorandum and Articles of Association of the Employee Compensation Entity, employees of us and our subsidiaries, members of our board of directors and our other service providers may receive equity in the Employee Compensation Entity that, subject to any vesting and other conditions imposed, will entitle such persons to receive the economic benefit of a ratable portion of our ordinary shares held by the Employee Compensation Entity. The Company also issued 5,550,000 Class B shares to the former shareholders of Estre USA, in exchange for their Class B shares in Estre USA. Each ordinary share and each Class B Share entitles the holder to one vote on all matters upon which the holders are entitled to vote. All of the issued and outstanding ordinary shares and Class B Shares are fully paid and non-assessable. pre-emptive, The transaction costs associated with the capital contribution described above amounted to R$75,307, and refer to the fees due to services provided to assist in the structuring, implementation and audit of the Transaction and IPO of the Company. Estre Ambiental, Inc. Number of Ownership Shareholder Ordinary Shares BTG Pactual G7 Holding S.A (*) 20,062,197 44.0% Avenue Boulevard Co-Investment 10,440,000 22.9% Cygnus Asset Holding Ltd 2,709,756 5.9% Lyra Asset Holding Ltda. 2,505,169 5.5% Other 9,919,610 21.7% 45,636,732 100.0% Class B Shares Former Boulevard SPAC Holders 5,550,000 100.0% (*) Includes shares held by BTG Pactual Principal Investments Fundo de Investimento em Participações Multiestratégia, Banco BTG Pactual S.A., Fundo de Investimento em Participações Turquesa - Multiestratégia Investimento no Exterior, Iron Fundo de Investimento em Participações - Multiestratégia Investimento no Exterior, and Fundo de Investimento Credito Privado LS Investimento no Exterior. In addition, as of December 31, 2018 and 2017, the Company has 28,499,999 warrants outstanding, which are exercisable on a one-for-one 21.2. Share-based payment reserve On September 15, 2015, Estre Brazil’s Board of Directors approved at the Special General Shareholders’ Meeting, the granting of a stock option plan to certain directors and employees and the total number of options granted under the plan. The options vest in 3 tranches, subject to the following vesting conditions: (i) At the first anniversary of the date on which the employee becomes a manager or employees of the Company, 34% of the options will vest and may be exercised; (ii) At the second anniversary of the date on which the employee becomes a manager or employee of the Company, an additional 33% of the options will vest and may be exercised; and (iii) At the third anniversary of the date on which the employee becomes a manager or employee of the Company, the remaining 33% of the options will vest and may be exercised. The options granted are classified as “Time Based Options” (TBO), and entitle the employee to acquire shares at a determined price. The stock options may be exercised during a period of 11 years from the date the stock option contract is signed. The options were priced based on the “Black & Scholes” model and the significant assumptions included in the model in 2015 were: Details Plan 1 Plan 2 Plan 3 Start date (first grant) 10/28/2015 10/28/2015 10/28/2015 Number of options - TBO (thousands) 2,486 432 649 Exercise value - R$ 0.9250 0.9250 0.9250 Expected volatility 24.03 % 24.03 % 24.03 % Future risk-free rate - p.a. 14.48 % 14.48 % 14.48 % Estimated maturity term (weighted average in years) 0.6778 1.1287 1.9176 Fair value of option - R$ 11.58 11.63 11.72 The term of the options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. The compensation expense for the years ended December 31, 2017 and in 2016 amounted to R$2,945 and R$28,937. No expense was recorded for the year ended December 31, 2018. The balance at December 31. 2017, recorded in liabilities amounted to R$ 1,620, substantially paid in 2018. Changes in the stock option plan are detailed below: Options December 31, 2016 571 Expired (70 ) Exercised (357 ) December 31, 2017 144 Exercised (144 ) December 31, 2018 — 22.2.1 Incentive Plan – Stock Shares On December 21, 2017 (“effective date”) the shareholders of the Company approved the issue of 1,983,000 ordinary shares to Estre Ambiental Employee SPV, Inc. (Estre Employee SPV), a Cayman Islands exempted company. Such shares were issued as part of the incentive stock option plan granted to employees. The participants of the Plan acquire shares of Estre Employee SPV for US$ 0.0001 per share on December 21, 2017. Participants have no rights over the shares on the effective date and will receive rights and be able to exchange SPV shares for Company shares as follows: (i) 5% of the shares shall be fully vested as of the Effective Date, although can only be exchanged for Company shares on the first anniversary of the Effective Date, (ii) 20% of the shares shall vest in full on the first anniversary of the Effective Date, and (iii) 25% of the subject shares shall vest on each of the second, third and fourth anniversaries of the Effective Date. During the fiscal year 2017, the Company granted 1,983,000 shares for this stock option plan. No shares were granted in 2018. Compensation expense recognized for the year ended December 31, 2018 totaled R$26,461. Compensation expense to be recognized for future service period is as follows: Amount Year 2019 15,221 2020 8,175 2021 3,448 Total 26,844 Additionally, the Company, Estre Brazil and Estre Employee SPV approved the Omnibus Incentive Plan (the “Plan”). The purpose of the Plan is to provide an additional incentive to selected employees, directors, independent contractors and consultants of the Company or its affiliates whose contributions are essential to the growth and success of the Company’s business, in order to strengthen the commitment of those individuals, motivate them to faithfully and diligently perform their responsibilities and attract and retain competent and dedicated employees whose efforts will contribute to the long-term growth and profitability of the Company. No shares were granted under the Omnibus Incentive Plan as of December 31, 2018. 21.3. Currency translation adjustments This refers to the gain (loss) from translation of financial statements in foreign currency to Brazilian Reais of the investments in CGR Doña Juana, in Colombia. Also see Note 2.3. 21.4. Capital reserve Capital reserves comprise additional paid in capital and the share based payment reserve. Additional paid in capital refers to the difference between the subscription price that shareholders paid for the shares and their nominal value. This reserve may only be used for capital increase, loss absorption, redemption or for repurchase of shares or payment of cumulative dividends on preferred shares. 21.5. Non-controlling See Note 2.5.2 for information on material partially-owned subsidiaries. 21.6. Angra Put Option Rights In 2011, the Company’s shareholders entered into a shareholders agreement (the ‘‘Estre Shareholders’ Agreement’’) under which Angra was granted a put option on Estre Brazil shares owned by Angra, which could be exercised in the event its interest in Estre Brazil was diluted to a holding of less than 5%, due to a capital contribution or other events described in the agreement. The option price was the fair market value of the Company shares and payable within 6 months after the exercise of the put option, adjusted for inflation (IPCA) plus 9.5% per year. On March 6, 2018, Angra exercised the put option, and the Company will acquire the Estre Brazil shares held by Angra for an amount of approximately R$37,606 payable until September 6, 2018. As of December 31, 2018, the Company recorded a liability at fair value for an amount of R$41,662 (R$37,884 at December 31, 2017). We have not yet made any payments to Angra due to liquidity constraints, which constitutes a default under the Share Put Option Agreement entered into with Angra. The Company is in ongoing negotiations with Angra regarding the terms for the payment of amounts owed to them and there are no assurances that we will be successful in these negotiations, and Angra has reserved all other rights, remedies, actions and powers to which it may be entitled. As a result, Angra may seek certain remedies afforded to them under the Share Put Option Agreement and otherwise under Brazilian law, including the enforcement of their security interest of 4.38% of the share capital of the Estre Ambiental S.A. For these reasons, the Company believes that it may be required to also include this debt as part of the debt restructuring efforts. 21.7. Common control transaction Prior to the Transaction, Estre Brazil was controlled by the shareholders that are the controlling shareholders of the Company. The reorganization transaction described in Note 1, was treated as a transfer between entities under common control, and as a result, any difference between the proceeds and the book value of the related assets is recognized as an equity transaction and therefore is recorded in additional paid in capital in the consolidated statement of financial position and the consolidated statement of changes in equity. |
Income and social contribution
Income and social contribution taxes | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Income and social contribution taxes | 22. Income and social contribution taxes 22.1. Reconciliation of income and social contribution taxes expenses and accounting profit or loss Tax legislation in Brazil requires that income and social contribution tax returns be filed and paid by each legal entity on a separate basis. 2018 2017 2016 Loss before income and social contribution taxes ( 755,783 ) (315,618 ) (260,141 ) Statutory rate 34% 34% 34% Income and social contribution taxes at the statutory rate 256,966 107,310 88,447 Tax effect on: Share of profit of an associate ( 1,135 ) (347 ) 3,452 Permanent differences - non-deductible expenses (1 66 , 477 ) (35,640 ) (39,546 ) Permanent differences - Tax benefit of unorganized goodwill 24,741 12,168 10,935 Permanent differences - taxable profit computed as a percentage of gross revenue ( 2 8 , 948 ) 15,045 502 Temporary differences - Deferred tax of Revenues from government entities (3,619 ) 14,695 19,942 Temporary differences - non-recognized ( 24,494 ) (11,089 ) (63,730 ) Incentive reserve 10 0 125 1,140 Tax loss for the year not recognized ( 90,569 ) (120,031 ) (125,234 ) Income and social contribution tax variation at PERT consolidation (see Note 17). (3,860 ) — — Use of tax benefit of tax income and social contribution tax losses against PERT, PRT and REFIS “COPA” (see Note 17). (7,743 ) 370,116 — Write-off of income tax and social contribution by impairment assets test 10 3 , 908 — — Reversion of income tax and social contribution from timing differences (29,930 ) — — Recognition deferred income tax and social contribution liabilities 5,338 6,359 — Others 587 (5,170 ) — Total 3 4 , 865 353,541 (104,092 ) Current (41,6 2 3 ) (17,543 ) (54,337 ) Deferred 7 6 , 488 371,084 (49,755 ) Effective income tax rate ( 4.61 % ) (112.02% ) 40.01% 22.2. Deferred taxes 2018 2017 Assets Income and social contribution tax effect on: Sundry provisions — 44 Total assets — 44 2018 2017 Liabilities Income and social contribution tax effect on: Appreciation of property, plant and equipment 9,989 15,438 Customer relationship and license 559 10,975 Business combination/goodwill 6,101 91,024 Government entities (a) 35,620 19,591 Total Liabilities 52,269 137,028 (a) The amount relates to deferral of income until its realization. According to current legislation, the portion of income proportional to revenue considered in profit or loss and not received by the statement of financial position date may be excluded from the calculation. Changes in deferred income tax are as follows: 2017 Additions Write- Tax Offsetting Others Impairment 2018 Impact Deferred income tax assets 44 7,743 (29,974 ) (7,743 ) 29,930 — — — ( 37 , 717 ) Deferred income tax liabilities (137,028 ) — 10,297 — (29,930 ) 484 103,908 (52,269 ) 114,205 Effect on the statement of profit or loss 76,488 2016 Additions Business Write- Tax Offsetting 2017 Impact Deferred income tax assets 41,057 — (11,083 ) 373,196 (29,930 ) 44 362,113 Deferred income tax liabilities (175,556 ) (373 ) 8,971 — 29,930 (137,028 ) 8,971 Effect on the statement of profit or loss 371,084 Impact 2015 Additions 2016 on profit or Deferred income tax assets 25,874 15,183 41,057 15,183 Deferred income tax liabilities (110,618 ) (64,938 ) (175,556 ) (64,938 ) Effect on the statement of profit or loss (49,755 ) (b) As mentioned in Note 17, the Company was benefitted by reduction of part of the interest and fines arising from taxes (included in the PRT and PERT tax amnesty programs). The benefit was calculated based on the tax loss, and therefore a credit was recorded in deferred income tax, in profit or loss, against a reduction in the tax payable balance (included in the REFIS). The application for inclusion in REFIS was filed with the Brazilian IRS, see Note 17. The Company did not recognize deferred income and social contribution tax assets on temporary differences and accumulated tax losses of certain subsidiaries. The consolidated income and social contribution tax loss carryforwards not recognized are as follows: 2018 2017 Total income and social contribution tax loss carryforwards (a) 884,028 708,639 (a) In accordance with the Brazilian tax legislation, loss carryforwards can be used to offset up to 30% of taxable profit for the year and do not expire. Changes in the consolidated income and social contribution tax losses are as follows: Description 2018 2017 2016 Balance at the beginning of the year 708,639 1,453,249 1,078,049 Income and social contribution tax losses for the year 235,719 353,330 368,245 Use of PERT base (22,772 ) (1,097,635 ) — Others (37,558 ) (305 ) 6,955 Balance at the end of the year 884,028 708,639 1,453,249 |
Revenue from services rendered
Revenue from services rendered | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Revenue from services rendered | 23. Revenue from services rendered Segments 2018 2017 2016 Collection & Cleaning Services 956 , 082 1,059,690 1,041,739 O&G 15 , 425 31,166 74,436 Landfills 470 , 547 442,802 492,595 Value Recovery 33 , 643 43,214 32,272 (-) Discounts and cancellations (13 , 262 ) (3,374 ) (28,718 ) (-) Taxes levied - PIS (23 , 233 ) (27,114 ) (27,683 ) (-) Taxes levied - COFINS (107 , 020 ) (124,808 ) (127,513 ) (-) Taxes levied - ICMS (308 ) (468 ) (117 ) (-) Taxes levied - ISSQN (71 , 287 ) (75,259 ) (76,980 ) Net revenue from services rendered 1, 260, 587 1,345,849 1,380,031 |
Cost of services by nature
Cost of services by nature | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Cost of services by nature | 24. Cost of services by nature Costs of services rendered are as follows: Description 2018 2017 2016 Payroll, charges and benefits (574, 869 ) (544,565 ) (542,730 ) Waste treatment and disposal of leachate (50, 697 ) (36,313 ) (49,008 ) Fuel/lubricant (63,5 30 ) (57,118 ) (60,577 ) Transportation (16,6 50 ) (14,558 ) (12,593 ) Lease of machinery and equipment (25, 669 ) (17,022 ) (46,475 ) Materials to operate landfills (20, 804 ) (16,873 ) (25,935 ) Technical assistance ( 6 ,2 88 ) (11,944 ) (6,416 ) Depreciation/amortization/depletion ( 99 , 835 ) (105,624 ) (129,688 ) Analysis and monitoring (5,7 75 ) (5,303 ) (9,191 ) Lease of real estate, equipment and vehicles (11, 824 ) (12,091 ) (13,452 ) Travel and lodging (13,9 78 ) (19,284 ) (11,205 ) Equipment maintenance (41, 654 ) (38,808 ) (20,725 ) Landfill maintenance (37 7 ) (94 ) (1,130 ) Other (4 7 , 233 ) (62,658 ) (74,623 ) Total costs (97 9 , 183 ) (942,255 ) (1,003,748 ) |
General and administrative expe
General and administrative expenses by nature | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
General and administrative expenses by nature | 25. General and administrative expenses by nature General and administrative expenses were as follows: Description 2018 2017 2016 Payroll, charges and benefits (1 20 , 172 ) (104,884 ) (116,502 ) Transportation (492 ) (275 ) (570 ) Advisory services (a) (3 3 , 535 ) (12,224 ) (17,196 ) Depreciation/amortization/depletion ( 35 , 633 ) (26,846 ) (31,326 ) Lease of real estate, equipment and vehicles (3, 942 ) (4,034 ) (4,973 ) Legal advisory services (a) (5 9 , 238 ) (16,896 ) (22,084 ) Travel and lodging (6,4 54 ) (4,211 ) (4,856 ) Equipment maintenance ( 617 ) (806 ) (1,720 ) System maintenance (65 9 ) (1,838 ) (986 ) Provision for legal proceedings ( 32 , 824 ) (57,775 ) 583 Consumer materials (2, 831 ) (4,001 ) (4,688 ) Third-party services (5, 601 ) (5,103 ) (3,907 ) Other (2 5 , 288 ) (17,639 ) (22,825 ) Total general and administrative expenses (3 27 , 286 ) (256,532 ) (231,050 ) (a) In 2018, refers substantially to external legal advisors and other fees in connection with the investigations and fees arising from the fact that Estre become a publicly listed company in USA. |
Selling expenses
Selling expenses | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Selling expenses | 26. Selling expenses Description 2018 2017 2016 Advertising and promotion expenses (5,188 ) (4,735 ) (2,348 ) (Addition) reversal of allowance for doubtful accounts, net 10,512 (1,906 ) 12,843 5,324 (6,641 ) 10,495 |
Other operating expenses, net
Other operating expenses, net | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Other operating expenses, net | 27. Other operating expenses, net Description 2018 2017 2016 Impairment-CTR Itaboraí (Note 12) ( 9 , 626 ) (36,781 ) (44,790 ) Impairment-Resicontrol (Note 12) ( 69 , 694 ) — — Impairment-Group Geo Vision (Note 12) (2 42 , 489 ) — — Impairment-Viva (Note 12) ( 217 , 935 ) — — Impairment-Ambiental Sul (Note 12) ( 7 , 945 ) — — Impairment-Água e Solo (Note 12) — (404 ) — Write-off–Others assets (b) (25,473 ) — — Write-off–Others intangible (b) (20,085 ) — — Gain on remeasurement of interest previously held of Catanduva (Note 1.3.3/9) 2,032 724 — Gain from the sale of Leccaros Participações S.A (Note 10.2.2) 18,7 8 4 — — Write-off of the CDR Pedreira call option — — (20,865 ) Gain on sale of property, plant and equipment 17 415 2,123 Donations (3,1 22 ) (3,249 ) (1,883 ) Realization of tax credit relating to prior periods (a) 6 , 712 9,679 13,298 Other operating expenses, net ( 7 , 682 ) (1,509 ) (28,434 ) Total ( 576,506 ) (31,125 ) (80,551 ) (a) Taxes paid in connection with the acquisition of materials and equipment, which Estre has not used to offset against the payment of other taxes in the years in which such receivables were generated, but that as a result of a further analysis of the applicable tax law, Estre subsequently recognized as recoverable taxes against income. (b) Impairment of assets according to the Company identification procedure carried out in December 2018 and inventory effect of internal audit. |
Finance income and expenses, ne
Finance income and expenses, net | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Finance income and expenses, net | 28. Finance income and expenses, net 2018 2017 2016 Finance expenses Interest of loans/debentures (138,9 34 ) (229,763 ) (262,104 ) Discounts granted (9,417 ) (17,345 ) (14,650 ) Interest for late payment to suppliers (3,8 32 ) (7,023 ) (6,134 ) Interest for late payment of taxes ( 52 , 127 ) (213,980 ) (74,727 ) Other finance expenses ( 47 , 383 ) (64,064 ) (39,518 ) Total finance expense (2 51 , 693 ) (532,175 ) (397,133 ) Finance income Interest income 2 0 , 546 6,534 17,320 Interest on investments 1,322 2,260 4,982 Other financial income 12,463 1,147 2,546 Impact of financial component from on revenues (IFRS 15) (c) 11,138 — — Discounts obtained on debentures (Note 14) — 91,492 — Interest of taxes credit (a) 1,671 6,848 26,815 Interest for late payment of taxes reversal (b) 69,173 — — Total finance income 11 6 , 313 108,281 51,663 Total finance expenses, net (1 35 , 380 ) (423,894 ) (345,470 ) (a) Inflation adjustment related to income and social contribution tax and withheld INSS. (b) Includes the reversal of some tax penalties and interests due to the adoption of the tax amnesty programs. (c) Impact of the financial component on revenues from the adoption of IFRS in 2018. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Segment reporting | 29. Segment reporting Business segment information is presented according to management’s definition of the operational management framework and based on the reports used by the Company’s chief operating decision makers. Management separately monitors operating income (loss) of business units in order to make decisions on resource allocation and performance assessment. Information on the business only considers transactions and balances directly attributable to the segments, and that can be allocated on a reasonable basis, and, as such, are restricted to the calculation of operating income (expenses) before financial income (expenses), not including assets and liabilities, financial income and expenses, and income and social contribution taxes. The Company’s financing (including financing income and expenses) and income taxes are managed at the corporate level, and are not allocated to operating segments. Revenue from inter-segment sales is eliminated upon consolidation and reflected in the column “Eliminations.” The Company has the following segments: Collection & Cleaning Services: O&G: Landfill: Value Recovery: The business segment information reviewed by the Management for the years ended December 31, 2018, 2017 and 2016 are as follows: Collection & O&G Landfills Value Corporate Eliminations Consolidated December 31, 2018 Domestic customers 817,145 12,749 401,140 29,553 — — 1,260,587 Inter-segment 44,831 45 55,427 1,777 — (102,080 ) — Total revenue from services 861,976 12,794 456,567 31,330 — (102,080 ) 1,260,587 Cost of services (731,424 ) (13,511 ) (306,673 ) (29,119 ) (2,253 ) 103,797 (979,183 ) Gross profit (loss) 130,552 (717 ) 149,894 2,211 (2,253 ) 1,717 281,404 Operating income/(expenses) General and administrative expenses (40,793 ) (96 ) (1,761 ) (187 ) (284,472 ) 23 (327,286 ) Selling expenses, net (8,433 ) (189 ) (26,981 ) (1,782 ) 42,709 — 5,324 Share of profit of an associate — — — — (650,080 ) 646,741 (3,339 ) Other operating expenses, net 1,225 (6 ) 4,949 (122 ) (580,829 ) (1,723 ) (576,506 ) (48,001 ) (291 ) (23,793 ) (2,091 ) (1,472,672 ) 645,041 (901,807 ) Profit (loss) before finance income and expenses 82,551 (1,008 ) 126,101 120 (1,474,925 ) 646,758 (620,403 ) Finance expenses 14,788 (541 ) (14,244 ) (77 ) (251,619 ) — (251,693 ) Finance income 8,536 73 6,535 603 100,566 — 116,313 Profit (loss) before income and social contribution taxes 105,875 (1,476 ) 118,392 646 (1,625,978 ) 646,758 (755,783 ) (-) Current income and social contribution taxes (26,621 ) — (479 ) — (14,523 ) — (41,623 ) (-) Deferred income and social contribution taxes 292 — — — 76,196 — 76,488 Profit (loss) for the year 79,546 (1,476 ) 117,913 646 (1,564,305 ) 646,758 (720,918 ) Discontinued operations Profit (loss) after tax for the year resulting from continuing operations — — — 3,285 27,169 — 30,454 Net income (loss) for the year 79,546 (1,476 ) 117,913 3,931 (1,537,136 ) 646,758 (690,464 ) Collection & O&G Landfills Value Corporate Eliminations Consolidated December 31, 2017 Domestic customers 911,652 25,524 371,840 36,833 — — 1,345,849 Inter-segment 17,171 331 83,558 897 — (101,957 ) — Total revenue from services 928,823 25,855 455,398 37,730 — (101,957 ) 1,345,849 Cost of services (673,024 ) (21,152 ) (316,305 ) (24,428 ) (9,303 ) 101,957 (942,255 ) Gross profit (loss) 255,799 4,703 139,093 13,302 (9,303 ) — 403,594 Operating income/(expenses) General and administrative expenses (38,309 ) (42 ) 1,290 (842 ) (218,629 ) — (256,532 ) Selling expenses, net (16,261 ) — 37,468 280 (28,128 ) — (6,641 ) Share of profit of an associate — — — — 83,384 (84,404 ) (1,020 ) Other operating expenses, net (15,335 ) (4,509 ) (41,719 ) 76,349 (45,911 ) — (31,125 ) (69,905 ) (4,551 ) (2,961 ) 75,787 (209,284 ) (84,404 ) (295,318 ) Profit (loss) before finance income and expenses 185,894 152 136,132 89,089 (218,587 ) (84,404 ) 108,276 Finance expenses (132,234 ) 889 (37,757 ) (36 ) (363,037 ) — (532,175 ) Finance income 8,276 70 948 81 98,906 — 108,281 Profit (loss) before income and social contribution taxes 61,936 1,111 99,323 89,134 (482,718 ) (84,404 ) (315,618 ) (-) Current income and social contribution taxes (8,613 ) — (4,030 ) (62 ) (4,838 ) — (17,543 ) (-) Deferred income and social contribution taxes 22,552 — 16,897 — 331,635 — 371,084 Profit (loss) for the year 75,875 1,111 112,190 89,072 (155,921 ) (84,404 ) 37,923 Discontinued operations Profit (loss) after tax for the year resulting from continuing operations 6,506 — 799 7,037 — — 14,342 Net income (loss) for the year 82,381 1,111 112,989 96,109 (155,921 ) (84,404 ) 52,265 Collection & O&G Landfills Value Corporate Eliminations Consolidated December 31, 2016 Foreign customers — — — — — — — Domestic customers 869,333 62,799 420,293 27,606 — — 1,380,031 Inter-segment 52,689 78 29,505 1,632 — (83,904 ) — Total revenue from services 922,022 62,877 449,798 29,238 — (83,904 ) 1,380,031 Cost of services (678,058 ) (41,583 ) (337,335 ) (22,002 ) (8,674 ) 83,904 (1,003,748 ) Gross profit (loss) 243,964 21,294 112,463 7,236 (8,674 ) — 376,283 Operating income/(expenses) General and administrative expenses (38,105 ) (783 ) (10,206 ) (343 ) (163,680 ) (17,933 ) (231,050 ) Selling expenses, net 268 897 26,293 8,532 (25,495 ) 10,495 Share of profit of an associate — — — — 139,714 (129,562 ) 10,152 Other operating income (expenses), net (12,402 ) 213 962 4 (69,328 ) — (80,551 ) (50,239 ) 327 17,049 8,193 (118,789 ) (147,495 ) (290,954 ) Profit (loss) before finance income and expenses 193,725 21,621 129,512 15,429 (127,463 ) (147,495 ) 85,329 Finance expenses (27,110 ) (1,326 ) (732 ) (11 ) (367,954 ) — (397,133 ) Finance income 1,506 1 18 16 50,122 — 51,663 Profit (loss) before income and social contribution taxes 168,121 20,296 128,798 15,434 (445,295 ) (147,495 ) (260,141 ) (-) Current income and social contribution taxes — — — (1 ) (54,336 ) — (54,337 ) (-) Deferred income and social contribution taxes — — — — (49,755 ) — (49,755 ) Profit (loss) for the year 168,121 20,296 128,798 15,433 (549,386 ) (147,495 ) (364,233 ) Discontinued operations Profit (loss) after tax for the year resulting from continuing operations — — 41 3,247 — — 3,288 Net income (loss) for the year 168,121 20,296 128,839 18,680 (549,386 ) (147,495 ) (360,945 ) Although we have a diversified customer base across our four business segments, our top 13 customers accounted for 72.9% of our total net revenue in the year ended December 31, 2018. In addition, our top 5 costumers represent 38.2% of our revenue from the Landfills segment, totaling 12.1% of our total net revenue and 8 customers accounted for 93.7% or more of our revenue from the Collection & Cleaning segment, totaling 60.7% of total net revenue in the year ended December 31, 2018. Across our four business segments, our top 10 customers accounted for 74.0% of our total net revenue in the year ended December 31, 2017. In addition, our top 4 costumers represent 49.7% of our revenue from the Landfills segment, totaling 16.8% of our total net revenue and 6 customers accounted for 91.6% or more of our revenue from the Collection & Cleaning segment, totaling 63.2% of total net revenue in the year ended December 31, 2017. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Financial instruments | 30. Financial instruments Financial instruments currently used by the Company are investments, contracts with customers, agreements to sell carbon credits, loans, financing, debentures and agreements for purchase Company shares. These instruments are managed through operating strategies, considering liquidity, profitability and risk minimization. The Company did not have derivative financial instruments during 2018, 2017 and 2016. Financial instruments of the Company are subject to the following risk factors: i) Credit risk The Company minimizes its exposure to credit risks associated with cash and cash equivalents and marketable securities by maintaining its investments in first-tier financial institutions and in short-term securities. The carrying amount of the financial assets represent the maximum exposure of the credit. The maximum exposure of the credit risk at the date of the financial statements is: Note 2018 2017 Financial assets Cash and cash equivalents 4 18,862 84,687 Marketable securities — 42 42 Trade accounts receivable 5 501 , 821 609,157 Contract asset — 120,308 — Receivables from related parties 8 2 , 218 14,518 The maximum exposure of the credit risk for trade accounts receivable segregated by the counterparty is as follows: 2018 2017 2016 Public 651,674 658,057 648,718 Private 91,509 120,049 73,775 The maximum exposure of the credit risk for trade accounts receivable per risk concentration is as follows: 2018 % 2017 % 2016 % 10 largest debtors 515,664 66% 533,335 69% 433,605 68% 20 largest debtors 610,273 79% 627,036 81% 512,394 81% 50 largest debtors 683,051 90% 704,481 91% 578,639 91% Trade accounts receivable Credit risk arises from the possibility of the Company’s incurring in losses resulting from the difficulty in receiving amounts billed to its customers. Customer credit risk is managed by each business unit, subject to the procedures, policies and controls established by the Company in relation to this risk. Invoices are issued only after formal approval is given by the customer. Management monitors the risk involved and adopts necessary measures and procedures, in addition to recording an allowance for doubtful accounts as appropriate. ii) Interest rate risk Such risk arises from the Company’s exposure to fluctuations in interest rates on its financial assets and liabilities. In order to mitigate this risk, the Company seeks to raise funds subject to fixed or floating rates. The Company is exposed to risks of interest rate fluctuations on its investments, accounts payable for acquisition of investments, loans and financing and debentures. The Company conducted sensitivity analyses of the interest rate risks to which its financial instruments are exposed. For the analysis of sensitivity to changes in interest rates, management adopted as probable scenario the future interest rates according to quotations obtained from BM&FBOVESPA of 6.72% for CDI and to 6,98% for TJLP. Scenarios II and III were estimated with an increase of 25% and 50%, respectively, whereas scenarios IV and V estimate an additional decrease of 25% and 50%, respectively, of the rates in the probable scenario. The following table shows the possible impacts on profit or loss in each scenarios for 2018: Scenarios Exposure Risk I - Probable II 25% III 50% IV -25% V -50% 1 - Financial assets Investments 42 CDI variation 3 1 2 (1 ) (2 ) 3 1 2 (1 ) (2 ) 2 - Financial liabilities Loans and financing Working capital (589,778 ) CDI variation (39,633 ) (9,908 ) (19,817 ) 9,908 19,817 Finame (306 ) TJLP variation (21 ) (5 ) (11 ) 5 11 Leasing (38,213 ) CDI variation (2,568 ) (642 ) (1,284 ) 642 1,284 Debentures (966,386 ) CDI variation (64,941 ) (16,235 ) (32,471 ) 16,235 32,471 Net financial liabilities (107,160 ) (26,789 ) (53,581 ) 26,789 53,589 iii) Liquidity risk This is the risk that the Company may have insufficient funds to meet its financial commitments and financial liabilities (which are settled in cash or by means of other financial assets), due to the mismatch of terms or volume of expected receipts and payments. In order to manage cash liquidity, assumptions are established regarding future payables or receivables, and are daily monitored by the Treasury department. As a result of the liquidity constraints identified by management, the Company was not able to maintain financial covenants clauses included on its Debt Instruments for the year ended on December 31, 2018, and the total debt was reclassified and presented as a current liability. Based on this fact, the Company and its Board of Directors has decided to initiate negotiations with the holders of its Debt Instruments with the goal of restructuring its financial debt. The Company engaged a restructuring firm as well as outside legal counsel to advise in connection with a debt restructuring process. The Company currently expects to conclude the debt restructuring during 2019. There can be no assurance that the debt restructuring process will be successful or that the Company will be able to generate sufficient liquidity in order to fully address the liquidity concerns. The Company´s inability to significantly improve its liquidity position and comply with its financial covenants and other payment obligations could have a material adverse effect and result in a judicial reorganization process, which may result in the shareholders losing their entire investment. The Company’s exposure to liquidity risk is as follows: 2018 2017 Up to 12 months 1 - 2 years 2 - 5 years > 5 Up to 12 months 1 - 2 years 2 - 5 years > 5 years Financial liabilities Loans and financing 601 , 475 20 , 444 4 , 940 1,438 14,139 1,709 100,841 268,825 Debentures 966,386 — — — — — 267,245 801,734 Trade accounts payable 1 73 , 339 — — — 128,113 — — — Labor payable 98,519 — — — 108,191 — — — Tax liabilities 15 1 , 686 202,412 109,854 50,011 167,040 178,570 26,684 190,581 Put option on the Company’s shares 41,662 — — — 37,884 — — — Accounts payable for land acquisition 5,3 80 4 , 804 — — 8,965 10,412 — — Total 2,0 38 , 447 2 27 , 660 1 14 , 794 5 1 , 449 464,332 190,691 394,770 1,261,140 iv) Fair value Fair value estimates were determined using available market information and adequate valuation methodologies. However, considerable judgment is necessary to analyze market information and estimate fair value. Accordingly, the estimates presented herein are not necessarily indications of amounts the Company could realize assets or settle liabilities in the current market. The use of different market assumptions and/or estimate methodologies may lead to significant effects in estimated fair values. The fair value of trade accounts receivable and related-party payables/receivables approximates their carrying amounts mostly due to their short-term maturity. The carrying amounts and fair values of the Company’s main financial instruments (and other assets and liabilities accounted for at fair value or for which fair value is disclosed) at December 31, 2018 and 2017 are as follows: 2018 2017 Category Carrying Fair value Carrying Fair value Financial assets Cash and cash equivalents Fair value through profit or loss Level 1 18,862 18,862 84,687 84,687 Marketable securities Fair value through profit or loss Level 2 42 42 42 42 Trade accounts receivable Amortized cost Level 2 501,821 501,821 609,157 609,157 Contract asset Amortized cost Level 2 120 , 308 120 , 308 — — Receivables from related parties Amortized cost Level 2 2 , 218 2 , 218 14,518 14,518 643,251 643,251 708,404 708,404 Financial liabilities Loans and financing Amortized cost Level 2 628,29 7 628,29 7 385,514 385,514 Trade accounts payable Amortized cost Level 2 1 73 , 339 1 73 , 339 128,113 128,113 Debentures Amortized cost Level 2 966,386 966,386 1,068,979 1,068,979 Loans from related parties Amortized cost Level 2 40,4 64 40,4 64 44,904 44,904 Accounts payable from land and others asset acquisition Amortized cost Level 2 10,184 10,184 19,377 19,377 Related parties payable Amortized cost Level 2 41,662 41,662 — — Put option on the Company’s shares Fair value through profit or loss Level 2 — — 37,884 37,884 Obligations relating to discontinued operations Amortized cost Level 2 41,201 41,201 23,787 23,787 1, 901 , 533 1, 901 , 533 1,708,558 1,708,558 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Commitments | 31. Commitments Total minimum lease payments, under non-cancellable 2018 2017 2016 Less than one year 3,002 12,783 803 More than one year and less than five years 10,702 16,877 28,349 More than five years 22,772 — — 36,476 29,660 29,152 The operating lease expenses for the year ended December 31, 2018 totaled R$41,435 (R$33,147 in 2017, and R$64,900 in 2016). All agreements that have a clause establishing a fine in the event of breach of contract provide for a penalty of up to three months of rent. If the Company terminated these agreements, the total penalties would be approximately R$707. |
Insurance coverage
Insurance coverage | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Insurance coverage | 32. Insurance coverage The Company’s insurance coverage is as follows: Description 2018 2017 2016 Civil liability – Environment 20,200 20,200 20,000 Civil liability - pain and suffering and contingent risks, fire, lightning, explosion 373,241 466,536 343,652 Sundry risks (a) 33,391 49,124 129,800 Total 426,832 535,860 493,452 (a) On March 23, 2018, the Company acquire executive officers and management liability insurance with TOKIO MARINE SEGURADORA S.A., valid from March 23, 2018 to March 23, 2019, in order to ensure against any event that produces damages covered by the insurance and attributed by alleged aggrieved third parties to the insured parties. The Company has a policy of contracting insurance coverage for goods and work subject to risk at amounts considered by management sufficient to cover possible losses, considering the nature of its activity. Management believes that the coverage is compatible with the Company’s size and operations, and consistent with other companies of similar size operating in the same industry. Management considers insurance coverage is sufficient to cover any potential losses. |
Changes in liabilities from fin
Changes in liabilities from financing activities | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Changes in liabilities from financing activities | 33. Changes in liabilities from financing activities January 1, Cash flow Payment Interest + Proceeds Others (*) December 31, Loans and financing current 14,139 (17,835 ) (17,525 ) 57,675 5,492 559,529 601,475 Loans and financing non-current 371,375 — — — 215,428 (559,981 ) 26,822 Debentures current — — — — — 966,386 966,386 Debentures non-current 1,068,979 — — 81,259 (183,852 ) (966,386 ) — Total liabilities from financing activities 1,454,493 (17,835 ) (17,525 ) 138,934 37,068 (452 ) 1,594,683 January 1, Cash flow Payment Interest + Proceeds Others (*) December 31, Loans and financing current 16,732 (21,093 ) (11,295 ) 13,051 378,154 (361,410 ) 14,139 Loans and financing non-current 9,965 — — — — 361,410 371,375 Debentures current 1,665,629 (77,816 ) (288,151 ) 125,831 (356,514 ) (1,068,979 ) — Debentures non-current — — — — — 1,068,979 1,068,979 Accounts payable from acquisition of investments current 4,856 (9,001 ) — (711 ) — 4,856 — Accounts payable from acquisition of investments non-current 4,856 — — — — (4,856 ) — Total liabilities from financing activities 1,702,038 (107,910 ) (299,446 ) 138,171 21,640 — 1,454,493 January 1, Cash flow Payment of Interest + Proceeds Others December 31, Loans and financing current 64,133 (60,514 ) (9,506 ) 5,867 6,540 10,212 16,732 Loans and financing non-current 20,177 — — — — (10,212 ) 9,965 Debentures current 1,417,081 — — 248,548 — — 1,665,629 Accounts payable from acquisition of investments current 47,041 (64,039 ) — — — 21,854 4,856 Accounts payable from acquisition of investments non-current 26,710 — — — — (21,854 ) 4,856 Total liabilities from financing activities 1,575,142 (124,553 ) (9,506 ) 254,415 6,540 — 1,702,038 (*) Debt restructuring - refer to Note 14 for further details. |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Earnings (loss) per share | 34. Earnings (loss) per share The Transaction was structured as a reorganization and recapitalization transaction by which the Company issued shares and warrants for the net assets of Estre Brazil accompanied by a capital contribution in cash (recapitalization). Earnings (loss) per share has been calculated for all historical periods to reflect the Company’s capital structure as if the Transaction had occurred at the beginning of the earliest period presented. Earnings per share 2018 2017 2016 Basic Profit (loss) attributable to equity holders of the parent (652,754 ) 43,793 (360,789 ) Weighted average number of ordinary shares outstanding (shares/thousand) 45,637 45,637 45,637 Basic profit (loss) per share (R$ 14.3032 ) R$ 0.9596 R$ (7.9057 ) 2018 2017 2016 Diluted Profit (loss) attributable to equity holders of the parent (652,754 ) 43,793 (360,789 ) Weighted average number of ordinary shares outstanding (shares/thousand) 47,620 45,691 45,637 Basic profit (loss) per share (R$ 13.7076 ) R$ 0.9585 R$ (7.9057 ) The shares related to stock options plan were excluded from the calculation of diluted loss per share for the year 2016 because their effect would have been antidilutive. The 28,249,999 outstanding warrants to purchase Company shares at US$11.50 per share were not included in the calculation of diluted earnings per share as they were out of the money. Earnings per share from continuing operations Basic 2018 2017 2016 Profit (loss) from continuing operations attributable to equity holders of the parent (681,356 ) 29,451 (364,077 ) Weighted average number of ordinary shares (shares/thousand) 45,637 45,637 45,637 Basic profit (loss) per share (R$ 1 4 . 9299 ) R$ 0.6453 R$ (7.9777 ) Diluted 2018 2017 2016 Profit (loss) from continuing operations attributable to equity holders of the parent ( 681,356 ) 29,451 (364,077 ) Weighted average number of ordinary shares (shares/thousand) 47,620 45,691 45,637 Diluted profit (loss) per share (R$ 1 4 . 3082 ) R$ 0.6446 R$ (7.9777 ) |
Subsequent event
Subsequent event | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Subsequent event | 35. Subsequent event Approval for the sale of Tremembé landfill On April 25, 2019, the Company and its Board of Directors approved the plan to sell the Company’s stake in the landfill located at the municiapily of Tremembé, state of São Paulo. Negotiations with some investors already started and it is expected that the sale will be completed within one year. |
Presentation of financial sta_2
Presentation of financial statements and significant accounting practices adopted (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Basis of preparation and presentation of financial statements | 2.1. Basis of preparation and presentation of financial statements The Transaction described in Note 1 above, was accounted for as a reorganization and recapitalization transaction whereby Estre Ambiental, Inc. was created as a holding company of Estre Brazil and concurrently issue new ordinary shares to the former shareholders of Estre USA and the PIPE investors in exchange of cash (recapitalization). As a result, the assets and liabilities of Estre Brazil are carried at historical cost and there was no step-up As a result, the consolidated financial statements filed with the SEC by the Company subsequent to the completion of the Transaction are presented “as if” Estre Brazil is the predecessor of the Company. The historical operations of Estre Brazil are deemed to be those of the Company. Thus, these consolidated financial statements reflect (i) the historical operating results of Estre Brazil prior to the Transaction, as restated (Note 1.5); (ii) the consolidated results of the Company and Estre Brazil following the Transaction; (iii) the assets and liabilities of Estre Brazil at their historical cost; and (iv) the Company’s equity and earnings per share for all periods presented. The number of ordinary shares issued by Estre Ambiental, Inc. as a result of the Transaction is reflected retroactively to January 1, 2015, for purposes of calculating earnings per share in all prior periods presented. The preparation of the consolidated financial statements requires the use of certain critical accounting estimates and also the exercise of judgment by Company management in the process of application of its accounting practices. Areas involving a higher degree of judgment, with greater complexity, and areas where assumptions and estimates that are significant to the consolidated financial statements are disclosed in Note 2.21. a) Basis of preparation The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements were approved by the Board of Directors and by the Executive Board on May 13, 2019. The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments at fair value described in Note 2.7 and certain assets measured at fair value on the date of the business combination, described in Note 2.4. The consolidated financial statements are presented in Brazilian Reais (R$) and all values are rounded to the nearest thousand (R$000), except where otherwise stated. |
Basis of consolidation | 2.2. Basis of consolidation The consolidated financial statements include the following direct subsidiaries of Estre Ambiental, Inc.: Subsidiary Main activity Country of 2018 2017 Estre Ambiental S.A. (a) Waste management Brazil 93.92 % 93.92 % Estre USA Inc. Holding USA 100 % 100 % Road Participações S.A. Holding Brazil 100 % 100 % (a) Estre Ambiental, Inc. has a direct interest of 66.57% and an indirect interest of 27.35% through its wholly owned subsidiary Road Participações S.A. In addition, the consolidated financial statements include the following indirect subsidiaries of Estre Ambiental, Inc. and direct subsidiaries of Estre Brazil: Subsidiary Main activity and services Country of 2018 2017 2016 Estre Água e Solo Ltda. (a) Laboratory analysis Brazil — 100 % 100 % Ambiental Sul Brasil - Central Regional de Tratamento de Resíduos Ltda. Waste management center Brazil 100 % 100 % 100 % Cavo Cleaning and collection Brazil 100 % 100 % 100 % Pilares Participação Ltda. Holding Brazil — — 100 % Oxil Manufatura Reversa e Gerenc. de Resíduos Ltda. Recycling Brazil 100 % 100 % 100 % LMG Participações Ltda. Holding Brazil — — 100 % Viva Ambiental e Serviços S.A. Cleaning and collection Brazil 100 % 100 % 100 % V2 Ambiental SPE S.A. Waste management center Brazil 100 % 100 % 100 % Resicontrol Soluções Ambientais Ltda. Waste management center Brazil 100 % 100 % 100 % CGR Doña Juana S.A. ESP (“CGR Doña Juana”) (b) Waste management center Colombia — — — CTR Itaboraí - Centro de Tratamento de Resíduos de Itaboraí Ltda. Waste management center Brazil 100 % 100 % 100 % Esergia Estratégias Energéticas Ambientais Ltda. (c) Energy use services Brazil — 100 % 50 % Estação Ecologia - Área de Transbordo Triagem e Reciclagem de RCD S.A. (c) Recycling Brazil — 100 % 100 % Geo Vision Holding Brazil 100 % 100 % 100 % CGR Guatapará - Centro de Gerenc. de Resíduos Ltda. Waste management center Brazil 100 % 100 % 100 % Estre SPI Ambiental S.A. (“Estre SPI”) Cleaning and collection Brazil 100 % 100 % 100 % NGA - Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % NGA Jardinópolis - Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % NGA Ribeirão Preto Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % Reciclax - Reciclagem de Resíduos da Construções Civil Ltda. (“Reciclax”) Recycling Brazil 88 % 88 % 88 % Guatapará Energia S.A. (d) Energy use services Brazil 90 % 90 % 90 % CTR Porto Seguro Waste management center Brazil 100 % 100 % 100 % Estre Energia Renovável Part. S.A. (d) Holding Brazil 90 % 90 % 90 % SPE Paulínia Energia Ltda. (d) Energy use services Brazil 100 % 100 % 100 % SPE Tremembé Energia Ltda. (d) Energy use services Brazil 100 % 100 % 100 % Curitiba Energia SPE Ltda. (d) Energy use services Brazil 100 % 100 % 100 % Piratininga Energia e Participações Ltda. (d) Energy use services Brazil 100 % 100 % 100 % CTR Arapiraca S.A. Waste treatment center Brazil 100 % 100 % 100 % Estre Aterros e Valorização Holding S.A. Holding Brazil 100 % 100 % 100 % NGA Sul – Núcleo de Gerenciamento Ambiental S.A. Holding Brazil — — 100 % CGR – Centro de Gerenc. de Resíduos Feira de Santana S.A. Waste management center Brazil 100 % 100 % 100 % GLA - Gestão Logistica Ambiental S.A. Cleaning and collection Brazil 38 % 38 % SPE Soma Soluções em Meio Ambiente Ltda. (“SPE SOMA”) Cleaning and collection Brazil 82 % 82 % — Leccaros Participações S.A.(Note 10.2.2) Holding Brazil — — 50 % CGR Catanduva – Centro de Gerenc. de Resíduos Ltda. (“CGR Catanduva”) (Note 1.3.3 and 9) Waste management center Brazil — 50 % — Estre Ambiental Sucursal Colômbia (e) Cleaning and collection Colombia 100 % 100 % 100 % (a) Merged into Estre SPI in 2018. (b) Presented as assets held for sale since 2016, with sale process concluded in November 2018 (Notes 1.3.1 and 10.2). (c) Merged into Estre Brazil in 2018. (d) Subsidiaries included in an asset sale process (Note 1.3.4). (e) Subsidiary created to collect cash from the D. Juana sale. A subsidiary is fully consolidated from the date the control is obtained, and ceases when the Company loses control of the subsidiary. The Company evaluates existence and effect of potential voting rights currently exercisable or convertible, shareholders agreement and company management policies are taken into account in determining whether the Company controls the entity or not. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has: • Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee • The ability to use its power over the investee to affect its returns Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement(s) with the other vote holders of the investee • Rights arising from other contractual arrangements • The Company’s voting rights and potential voting rights The financial years and the closing periods of direct and indirect subsidiaries included in the consolidation are the same as those of the Company, and accounting practices and policies have been consistently applied by the consolidated companies and are consistent with those used in the previous years. All consolidated intercompany balances and transactions were eliminated in consolidation. |
Foreign currency translation | 2.3. Foreign currency translation a) Functional and reporting currencies In evaluating the functional currency of the Company, management considered the factors and indicators contained in IAS 21 – The effect of changes in foreign exchange rates. Considering that the Company is a holding that incur in limited expenses, Estre Inc. is using the currency of the local environment of Estre Brazil as its functional currency, as this is the environment which drives the dividend income it receives, which is its primary source of revenue. Therefore, the functional currency of the Company is Brazilian Reais. The financial statements of each subsidiary included in the Company’s consolidation and those used as a basis for valuation of investments using the equity method are prepared using the functional currency of each entity, and for entities whose functional currencies are different from the Company’s reporting currency, their assets and liabilities are translated into the Company’s reporting currency at the closing date and their statements of profit or loss are translated at exchange rate prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in other comprehensive income. b) Transactions and balances Transactions in foreign currencies are translated using the exchange rates prevailing on the transaction dates or on the valuation date, for remeasured items. The foreign exchange gains and losses resulting from the settlement of these transactions and resulting from the translation at exchange rates at the end of the year relating to monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit or loss. |
Business combination | 2.4. Business combination Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as total consideration transferred, measured at fair value at the acquisition date, and the amount of any non-controlling non-controlling When acquiring a business, the Company assesses the financial assets and liabilities assumed, for appropriate classification and designation in accordance with contractual terms, economic circumstances and pertinent conditions at the acquisition date. If the business combination is achieved in stages, the fair value at the acquisition date of the previously held equity interest in the acquiree is remeasured at fair value at the latest acquisition date, and impacts are recognized in the statement of profit or loss. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration considered as an asset or liability will be recognized in the statements of profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the fair value of net assets acquired. If the consideration is lower than the fair value of net assets acquired, the difference is recognized as a bargain gain in the statement of profit or loss. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For impairment test purposes, goodwill acquired in a business combination is allocated to each of the Company’s cash-generating units that are expected to benefit from the synergies arising from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. When goodwill forms part of a cash generating unit and a portion of that unit is disposed of, the goodwill associated to the disposed portion must be included in the transaction upon carrying amount of the operation when determining disposal gains or losses. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operations and the cash generating unit retained. |
Investment in associates, joint operations and joint ventures | 2.5. Investment in associates, joint operations and joint ventures An associate is an entity in which the Company exercises significant influence. Significant influence is the power to participate in decisions on operating policies of the investee. It does not hold, however, control or joint control over those policies. A joint operation (JO) is a type of joint arrangement in which the parties with joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. In relation to its interests in JOs, the financial statements of the Company includes: • Assets, including its share of any assets held jointly • Liabilities, including its share of any liabilities incurred jointly • Revenue from the sale of its share of joint operation • Share of the revenue from the sale of the output by the joint operation • Expenses, including its share of any expenses incurred jointly All such amounts are measured in accordance with the terms of each arrangement which are in proportion to the Company’s interest in the JO. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Company’s investments in its associates and joint ventures, shown in the table below, are accounted for using the equity method: Denomination Main activity Host Interest 2018 2017 2016 Unconsolidated investes Attend Ambiental Ltda. (“Attend”) Treatment of liquid effluents Brazil — — (a) 55% Metropolitana Serviços Ambientais Ltda. Waste management center Brazil Direct 50% 50% 50% Terrestre Ambiental Ltda. Waste management center Brazil — — (a) 40% CGR Catanduva Waste management center Brazil — (b) (b) 50% Logística Ambiental de São Paulo S.A. (“Loga”) Cleaning and collection services Brazil — — (a) 38% Unidade de Tratamento de Resíduos - UTR S.A. Waste management center Brazil — — — (c) 54% (a) On December 21, 2017, these investments were transferred to Latte Saneamento e Participações S.A. (“Latte”), a related party owned by some of the same shareholders of the Company (refer to Note 10.1). (b) This subsidiary was consolidated in 2017 and it was sold in December 2018 (Note 1.3.3). (c) On August 1 st 2.5.1. Investment in associates and joint ventures Under the equity method, the investment in associate and joint ventures is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share in the net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the investment and is not tested for impairment separately. The statement of profit or loss reflects the Company’s share of the results of operations of the associate and joint venture. Any changes in other comprehensive income in these investees is presented in the Company’s other comprehensive income. In addition, when there has been a change directly recognized in the equity of the associate the Company recognizes its share of any changes, in the statements of changes in equity when applicable. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate and joint venture. The aggregate of the Company’s share of profit or loss of an associate or joint venture is stated in the statements of profit or loss representing profit after tax and interest held by non-controlling 2.5.2. Material partially-owned subsidiaries Financial information of subsidiaries that have material non-controlling Percentage of equity interest held by non-controlling Name Country of 2018 2017 2016 CGR Doña Juana (a) Colombia — 49% 49% SPE Soma Brazil 18% 18% — Reciclax Brazil 13% 13% 13% Guatapará Energia S.A. (b) Brazil 10% 10% 10% Estre Energia Renovável Part. S.A. (“Estre Energia Renovável”) (b) Brazil 10% 10% 10% GLA - Gestão Logistica Ambiental S.A. (“GLA”) Brazil 62% 62% — CGR Catanduva (c) Brazil — 50% — (a) Presented as assets held for sale since 2016, with sale process conclued in November 2018 (Note 10.2 and 1.3.1). (b) Subsidiaries involved in an asset sale process (Note 1.3.4). (c) This subsidiary was consolidated in 2017 and it was sold in December 2018 (Note 1.3.3). Summarized statement of profit or loss for 2018: Reciclax SPE Soma GLA Revenue from services rendered 569 335,317 24,398 Cost of services rendered (2,019 ) (252,480 ) (17,569 ) General and administrative expenses (445 ) (40,417 ) (449 ) Other operating income (expenses), net (28 ) (5,161 ) (471 ) Financial expenses, net (85 ) (895 ) 31 Profit (loss) before tax es (2,008 ) 36 , 364 5,940 Income tax and social contribution (2 ) (32,842 ) (824 ) Profit (loss) for the year from continuing operations (2,010 ) 3 , 522 5,116 Total comprehensive income (2,010 ) 3,522 5,116 Attributable to non-controlling interests (251 ) 634 3,187 Summarized statement of profit or loss for 2017: Estre Energia Guatapará SPE CGR Revenue from services rendered — 9,115 777 84,919 12,055 10,348 Cost of services rendered — (5,614 ) (2,737 ) (61,051 ) (7,950 ) (8,252 ) General and administrative expenses (1,111 ) (299 ) (466 ) (3,180 ) (170 ) (833 ) Other operating income (expenses), net 3,297 1,252 85 (1,356 ) (233 ) (292 ) Financial expenses, net 878 (799 ) (117 ) (2,783 ) 38 (305 ) Profit (loss) before taxes 3,064 3,655 (2,458 ) 16,549 3,740 666 Income tax and social contribution — (410 ) 964 218 (408 ) (458 ) Profit (loss) for the year from continuing operations 3,064 3,245 (1,494 ) 16,767 3,332 208 Total comprehensive income 3,064 3,245 (1,494 ) 16,767 3,332 208 Attributable to non-controlling 306 325 (187 ) 3,018 2,076 104 Summarized statement of profit or loss for 2016: Estre Energia Guatapará Reciclax Revenue from services rendered — 8,251 1,320 Cost of services rendered — (4,725 ) (2,475 ) General and administrative expenses (666 ) (180 ) (236 ) Other operating income, net 1,329 2,482 (231 ) Financial expenses, net (1,906 ) (1,007 ) (126 ) Profit (loss) before taxes (1,243 ) 4,821 (1,748 ) Income tax and social contribution — (331 ) — Profit (loss) for the year from continuing operations (1,243 ) 4,490 (1,748 ) Total comprehensive income (1,243 ) 4,490 (1,748 ) Attributable to non-controlling (124 ) 449 (219 ) Summarized statement of financial position at December 31, 2018: Reciclax SPE Soma GLA Assets Current assets Cash and cash equivalents 6 218 672 Trade accounts receivable 57 51,108 2,855 Taxes recoverable 65 1,568 2,977 Advances to suppliers — 80 — Other current assets 127 17,775 241 Total current assets 255 70,749 6,745 Non-current assets Related parties 248 32,552 — Other non-current assets 107 1,828 — Investments — — — Property, plant and equipment 7,885 4,714 147 Intangible assets — 112 — Total non-current assets 8,240 39,206 147 Total assets 8,495 109,955 6,892 Reciclax SPE Soma GLA Liabilities Current liabilities Trade accounts payable 221 18,678 1,630 Labor liabilities 76 24,702 1,104 Tax liabilities 50 9,858 1,642 Debt to related parties 5,532 — — Other current liabilities 39 19,061 — Total current liabilities 5,918 72,299 4,376 Non-current liabilities Provision for legal proceedings 111 6,127 — Other liabilities 85 167 — Total non-current liabilities 196 6 , 294 — Capital 4,714 43,484 1 Reserves 4,481 — — Accumulated earnings (losses) (6,814 ) (12,122 ) 2,515 Total equity 2,381 31 , 362 2,516 Total liabilities and equity 8,495 1 09 ,9 55 6,892 Attributable to: Equity holders of parent 2,071 25,717 956 Non-controlling interest 310 5,645 1,560 Summarized statement of financial position at December 31, 2017: Estre Energia Guatapará Reciclax SPE GLA CGR Assets Current assets Cash and cash equivalents 1,703 763 10 17,038 1,106 1,213 Trade accounts receivable — 1,305 1,382 45,619 2,303 2,469 Taxes recoverable 1 1 13 1,759 70 173 Advances to suppliers 8 — 16 125 — — Other current assets — 745 218 21,135 177 2 Total current assets 1,712 2,814 1,639 85,676 3,656 3,857 Non-current Related parties 18 — 2,159 39,994 — 16 Other non-current — — 33 10,436 — 258 Investments 24,061 — — — — — Property, plant and equipment 8,754 23,048 8,039 6,076 149 12,988 Intangible assets — — — 225 — 2,195 Total non-current 32,833 23,048 10,231 56,731 149 15,457 Total assets 34,545 25,862 11,870 142,407 3,805 19,314 Estre Energia Guatapará Reciclax SPE GLA CGR Liabilities Current liabilities Loans and Financing — — — — — 160 Trade accounts payable 44 2,168 478 8,400 1,818 636 Labor liabilities 87 — 311 31,451 726 374 Tax liabilities 4 178 148 17,822 436 605 Debt to related parties 20,500 — 6,099 — — 210 Other current liabilities 300 3,072 29 1,451 1 1 Total current liabilities 20,935 5,418 7,065 59,124 2,981 1,986 Non-current Provision for legal proceedings — — 129 2,299 — — Other liabilities — — 224 22,474 — 2,734 Total non-current — — 353 24,773 — 2,734 Capital 12,000 10,682 4,714 43,484 1 4,376 Reserves — — 4,542 — 823 4,452 Accumulated earnings (losses) 1,610 9,762 (4,804 ) 15,026 — 5,766 Total equity 13,610 20,444 4,452 58,510 824 14,594 Total liabilities and equity 34,545 25,862 11,870 142,407 3,805 19,314 Attributable to: Equity holders of parent 12,249 18,400 3,873 47,978 311 7,297 Non-controlling 1,361 2,044 579 10,532 511 — Summarized statement of financial position at December 31, 2016: Estre Energia Guatapará Reciclax Assets Current assets Cash and cash equivalents 33 39 19 Trade accounts receivable — 690 1,236 Taxes recoverable 1 1,212 8 Advances to suppliers 7 1 11 Other current assets — 1,114 12 Total current assets 41 3,056 1,286 Non-current Related parties 17 39 1,891 Other non-current — — 18 Property, plant and equipment 23,253 — — Intangible assets 9,890 20,866 8,166 Total non-current 33,160 20,905 10,075 Total assets 33,201 23,961 11,361 Estre Energia Guatapará Reciclax Liabilities Current liabilities — — — Loans and Financing — — — Trade accounts payable 4 3,310 448 Labor liabilities 80 — 204 Tax liabilities 73 382 741 Debt to related parties 21,499 — 3,782 Other current liabilities 375 2,301 27 Total current liabilities 22,031 5,993 5,202 Non-current Provision for legal proceedings — — 63 Other liabilities — — 140 Total non-current — — 203 Capital 12,000 10,682 4,714 Reserves — 483 4,430 Accumulated losses (830 ) 6,803 (3,188 ) Total equity 11,170 17,968 5,956 Total liabilities and equity 33,201 23,961 11,361 Attributable to: Equity holders of parent 10,053 16,171 5,182 Summarized cash flow information for year ended on December 31, 2018: Reciclax SPE GLA CGR Operating activities 240 (16.372 ) (434 ) (167 ) Investing activities (244 ) (448 ) — (663 ) Financing activities — — — 78 Net cash generated/(used) (4 ) (16.820 ) (434 ) (752 ) (*) Subsidiary CGR Catanduva sold on December 14, 2018, see note 1.3.3. Summarized cash flow information for year ended on December 31, 2017: Estre Guatapará Reciclax SPE GLA CGR Operating activities 1,670 5,162 320 23,688 1,260 1,399 Investing activities 33 (4,399 ) (310 ) (6,650 ) (155 ) (132 ) Financing activities — — — — 1 (517 ) Net cash generated/(used) 1,703 763 10 17,038 1,106 750 Summarized cash flow information for year ended on December 31, 2016: Estre Guatapará Reciclax Operating activities (33,063 ) (4,400 ) 124 Investing activities 33,143 2,519 (117 ) Financing activities 1 2,500 2 Net cash generated/(used) 81 619 9 |
Current versus non-current classification | 2.6. Current versus non-current The Company presents assets and liabilities in the statement of financial position based on current and non-current • It is expected to be realized within 12 months from the reporting date; or • It consists of cash and cash equivalents, unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are to be classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Company classified all other liabilities as non-current. non-current |
Fair value measurement | 2.7. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing an asset or liability, assuming that market participants act in their economic best interest. The fair value measurement of a non-financial The Company uses valuation techniques appropriate for the circumstances and for which there is sufficient data for fair value measurement, maximizing the use of relevant available information and minimizing the use of unavailable information. All assets and liabilities for which the fair value is measured in the financial statements are categorized within the fair value hierarchy described below, based on the lowest level of information that is significant to the fair value measurement as a whole: • Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - valuation techniques for which the lowest level input that is significant to the fair value measurement is either directly or indirectly observable; and • Level 3 - valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether there were transfers between hierarchy levels, by re-assessing For the purposes of fair value disclosures, the Company has determined classes of assets and liabilities based on the nature, characteristics and risks of assets or liabilities and the fair value hierarchy level, as mentioned above. The fair values of financial instruments measured at amortized cost are disclosed in Note 30. |
Revenue recognition | 2.8. Revenue recognition Beginning on January 1, 2018 the IFRS 15 – Revenue from Contracts with Customers came into effect, which establishes a five-step model to account for revenue arising from contracts with customers and require that revenue be recognized at an amount that reflects the consideration to which the entity expects to be entitled in exchange of transferring good or services to customers. The five steps model is as follows: i) Identification of the contract with the client; ii) Identification of performance obligations in the contract; iii) Determination of the transaction price; iv) Allocation of the transaction price to the performance obligations in the contract; and v) Recognition of revenue upon satisfaction of the performance obligations. Revenues shall be recognized at the amount that reflects the consideration or which the Company expect of receiving in exchange of transferring goods or services to the customers. Revenue From Services Collection & Cleaning Services - Revenue from collection & cleaning services is recognized when the service is provided. The Company recognizes revenue for the service provided, using the transaction price the Company expects to be entitled to. Landfills - waste that cannot be recycled is sent to the most appropriate final disposal, in sanitary landfills. The Company operates 12 landfills across Brazil, serving public and private entities. Revenues is recognized when the disposals are received in the Company’s landfills, at the transaction price the Company expects to be entitled to. Value Recovery - Value recovery services are related to a series of solutions that ensure the maximum use of the waste, with its reuse or search for new technology to recycle the materials. Revenue is recognized when the service is provided. The Company measures the provided service by the transaction price the Company expected to be entitled to. O&G - Revenue from services contracts provided to the oil & gas industry is recognized when the service is provided, at the transaction price the Company expects to be entitled to. Contract assets, contract liabilities, receivables: A contract asset is the right to consideration in exchange for the services provided to the customer. If the Company performs by providing services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. For services rendered that customers have not yet approved at the end of the period, revenue is recognized based on estimates or work performed. A contract liability is the obligation to provide services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company provides services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the Company performs under the contract. A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section Financial instruments – initial recognition and subsequent measurement. Variable consideration Variable consideration is included in the transaction price if it is highly probable that no significant reversal of revenue will occur once associated uncertainties are resolved. Significant estimates are involved in determining the amount of variable consideration which is calculated by using either the expected value or the most likely amount depending on which is expected to better predict the amount of variable consideration. Consideration is adjusted for the time value of money if the period between the provided services and the receipt of payment exceeds twelve months and the financing benefit. The Company is required to determine whether there is a significant financing component in its contracts. According to paragraph 60 of this standard, in determining the transaction price an entity shall adjust the amount of the consideration promised for the effects of the time value of money when a significant financing component is present. A significant financing component may exist independently if the promise of financing is expressly stated in the contract or implied in the terms of payment agreed by the parties to the contract. The Company should analyze if the payment period agreed by the parties to the contract (expressly or implicitly) provides the client or the entity with a significant financial benefit from the transfer of goods or services to the customer. Based on the above, the Company performs an analysis to identify the existence of a significant financing component for public sector clients, since the average collection term for this client portfolio is approximately six months. The Company considered the average rate of 8.50% p.a. for the discount rate of 2018 (8.40% at December 31, 2017), which represents the discount rate usually applied by the Company to calculate the present value of its non-current assets and liabilities. Revenue from the sale of products Revenue from the sale of products refers to the sale of scrap, fuel gas, carbon credit, electric power. For the sale of products, revenue is recognized when the performance obligations is satisfied at the time the control of the product sold is transferred to the customer, usually at the time of receipt and acceptance. |
Tax | 2.9. Tax Current income and social contribution taxes Current income and social contribution taxes are calculated in accordance with tax legislation and tax rates currently enacted, at the statutory rates of 15%, plus a surtax 10% for income tax and 9% for social contribution tax. Current income and social contribution taxes related to items recognized directly in equity are also recognized in equity. Management regularly assesses the tax positions in circumstances in which tax regulations require interpretation, and sets up provisions when appropriate. Deferred taxes Deferred tax is provided using the liability model or temporary differences between the tax bases of asset and liability and the carrying amount for financial reporting purposes at the reporting date. Deferred tax assets are recognized for all deductible temporary differences, credits and unused tax losses, to the extent it is probable that taxable profit will be available so that deductible temporary differences may be realized and unused credits and tax losses may be used. Deferred tax liabilities are recognized for all taxable temporary differences except: • When a deferred tax liability arises upon initial recognition of goodwill or of an asset or liability in a transaction other than a business combination and, at the time of the transaction affects neither the accounting profit nor taxable profit or loss; and • On taxable temporary differences related to investments in subsidiaries, when the timing of the reversal of temporary differences can be controlled and the temporary differences will likely not reverse in the near future. The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that future taxable profits will be available to allow all or part of the deferred tax asset to be utilized. Deferred tax assets written off are re-assessed Deferred tax assets and liabilities are measured at the tax rates expected to apply in the year when the asset is realized or the liability settled, based on tax rates (and tax laws) that have been enacted at the reporting date. Deferred taxes related to items recognized directly in equity are also recognized in equity, and not recognized in the statements of profit or loss. Deferred tax items are recognized based on the transaction which gave rise to the deferred tax, in comprehensive income or directly in equity. Deferred tax assets and liabilities are presented net if there is a legal or contractual right to offset tax assets against tax liabilities and the deferred taxes relate to the same taxed entity and are subject to the same taxing authority. Sales taxes Revenues, expenses and assets are recognized net of sales tax, except: • When the sales taxes incurred on the purchase of goods or services are not recoverable from tax authorities, in which case the sales tax is recognized as part of the cost of acquiring the asset or expense item, as applicable; and • When the amounts receivable or payable are stated with the amount of sales taxes included. The net amount of sales taxes, recoverable or payable to the tax authority, is included as part of receivables or payables in the statement of financial position. Sales revenues in Brazil are subject to taxes and contributions, at the following statutory rates: Rate Withholding taxes - PIS, COFINS and CSLL 4.65 % Social Security Tax (INSS) 11.00 % Contribution Tax on Gross Revenue for Social Security Financing (COFINS) (a) 7.60 % Contribution Tax on Gross Revenue for Social Integration Program (PIS) (a) 1.65 % Withholding Income Tax (IRRF) 1.50 % Services Tax (ISS) (b) 5.00 % VAT Tax (ICMS) (c) 18.00 % (a) Brazilian tax legislation allows smaller entities with less than R$ 78 million in annual gross revenue to opt to declare income taxes on the presumed profit basis. These are subject to lower COFINS and PIS rates of 3.00% and 0.65%, respectively. However, PIS and COFINS taxes on purchases may not be claimed back and will not generate tax credits under the presumed profits basis. (b) ISS rates vary according to the municipality; the ISS rate stated in the table above is the most commonly levied on the Company’s operations. (c) ICMS is taxed on the movement of goods. The tax payable is due on sales net purchases. The rates vary across different products and Brazilian states. The State of São Paulo levies ICMS at standard rate of 18.00%. Tax on purchases Taxes paid on purchases of goods and services can normally be recovered as tax credits, at the following statutory rates: Rate Contribution Tax on Service Rendered for Social Security Financing (COFINS) 7.60 % Contribution Tax on Service Rendered for Social Integration Program (PIS) 1.65 % In addition, please see Note 27(a) for information in relation to PIS/COFINS paid in prior periods and recovered subsequently. Withholding taxes-PIS, On certain purchases of services and use of third-party labor the Company is required to withhold a percentage of the amounts billed by its suppliers and pay tax on their behalf, at the following statutory rates: Rate Withholding taxes - PIS, COFINS and CSLL 4.65 % Social Security Tax (INSS) 11.00 % Withholding Income Tax (IRRF) 1.50 % Services Tax (ISS) 5.00 % |
Non-current assets held for sale and discontinued operations | 2.10. Non-current 2.10.1. Non-current The Company classifies assets and liabilities held for sale from discontinued operations if the carrying amounts are expected to be recovered principally through a sale transaction rather than through continuing use. These assets and liabilities classified as held for sale are measured at the lower of carrying amount and fair value, less costs to sell. Costs incurred in a sales transaction are incremental costs directly attributable to the sale, excluding finance expenses and income tax expenses. The criteria for classification of items held for sale are considered as having been met only when a sales transaction is highly probable to occur and when such items are available for immediate sale in the present condition. Management should be committed to the completion of the sale within one year from the date of classification of assets and liabilities as held for sale. Property, plant and equipment and intangible assets are no longer depreciated or amortized from the moment they are classified as held for sale or distribution. Assets and liabilities classified as held for sale are presented separately as current items on the statement of financial position. 2.10.2. Discontinued operations An asset qualifies as a discontinued operation if it represents a component of an entity that has been sold or classified as held for sale, and: • Represents a separate major line of business or geographical area of operations; • Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or • Is a subsidiary acquired exclusively for the purpose of resale. Discontinued operations are excluded from profit or loss of continuing operations, and presented as a single amount in profit or loss after taxes under discontinued operations in the statement of profit or loss. Further disclosures are presented in Note 10.2. All other notes to the financial statements include amounts for continuing operations, unless otherwise stated. |
Property, plant and equipment | 2.11. Property, plant and equipment Property, plant and equipment is stated at historical cost of acquisition or construction cost, less accumulated depreciation and accumulated impairment losses, if any. Ordinary maintenance expenses are recognized in the statement of profit or loss in the period they are incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The residual values and useful lives are reviewed at least at each year-end The useful life is the length of time the Company expects to use the asset. The weighted average rates of depreciation used for each asset class are described in Note 11. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset (calculated as the difference the net disposal proceed and the carrying amount of the asset) is recorded in “Other operating income (expenses)” in the statement of profit or loss. |
Intangible assets | 2.12. Intangible assets Intangible assets acquired separately are measured at cost upon their initial recognition. The cost of intangible assets acquired in a business combination is the fair value at the acquisition date. After initial recognition, intangible assets are stated at cost less accumulated amortization and accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in the statement of profit or loss for the period they are incurred. Intangible assets are assessed as having finite or indefinite useful lives. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is indication that the intangible asset may be impaired. The period and the amortization method for intangible assets with finite lives are reviewed at least once a year. Changes in estimated useful life or the expected consumption of the future economic benefits of these assets are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. Amortization of intangible assets with finite lives is recognized in the statement of profit or loss in the expense category consistent with the use of intangible assets. Intangible assets with indefinite useful lives are not amortized but tested annually for impairment either individually or at the level of cash generating unit. The assessment of indefinite life is reviewed annually to determine whether this evaluation is still justifiable. Otherwise, the change in the useful life assessment from indefinite to finite is made prospectively. Gains and losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying value of the asset, and recognized in the statement of profit or loss. |
Loss on impairment of non-financial assets | 2.13. Loss on impairment of non-financial Management annually reviews the carrying amount of assets for purposes of evaluating events or changes in economic, operating or technological circumstances that may indicate impairment or loss of their recoverable value. When such evidence is identified, and the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an asset or of a given cash generating unit is defined as the higher of the value in use and fair value less costs to sell. In estimating the asset value-in-use, pre-tax The following criteria are also applied in assessing impairment of specific assets: PP&E The test of PP&E impairment is performed annually or when circumstances indicate an impairment of the carrying value. At December 31, 2018 the Company recognized impairment losses on PP&E (see Note 11). Goodwill The test of goodwill impairment is performed annually at December 31, at the cash generating unit level. Intangible assets Intangible assets with indefinite useful lives are tested for impairment annually at December 31, either individually or at the level of cash generating unit, as appropriate, and when circumstances indicate an impairment of the carrying amount. The Company conducted impairment tests and recognized impairment losses on identifiable intangible assets and goodwill arising from business combinations (see Note 12). |
Financial instruments | 2.14. Financial instruments Financial assets i) Initial recognition and measurement Company determines financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under IFRS 15. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. ii) Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: • Financial assets at amortized cost (debt instruments) • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) • Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments) • Financial assets at fair value through profit or loss a) Financial assets at amortized cost (debt instruments) This category is the most relevant to the Company. The Company measures financial assets at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and: • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Company´s financial assets at amortized cost include trade accounts receivables, contract assets and receivables from related parties under other current and non-current financial assets. b) Financial assets at fair value through OCI (debt instruments) The Company measures debt instruments at fair value through OCI if both of the following conditions are met: • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling and; • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. c) Financial assets designated at fair value through OCI (equity instruments) Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. d) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. iii) Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Company´s statement of financial position) when: • The rights to receive cash flows from the asset have expire or: • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. iv) Impairment of financial assets The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Financial liabilities i) Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company´s financial liabilities include loans and financing, trade accounts payable, debentures, loans from related parties, accounts payable from land and others asset acquisition, put option on the Company’s shares and obligations relating to discontinued operations. ii) Subsequent measurement The measurement of financial liabilities depends on their classification, which can be as follows: a) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss, as of December 31, 2018 there is no derivative transaction. b) Loans and borrowings This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss. This category generally applies to interest-bearing loans and borrowings. For more information, refer to Note 13. iii) Derecognition (write-off) A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. Offsetting of financial instrument Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. |
Inventories | 2.15. Inventories Inventories are valued at the lower of cost and net realizable value. Inventories are mainly comprised of maintenance materials. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and costs the estimated costs necessary to make the sales. |
Cash and cash equivalents | 2.16. Cash and cash equivalents Cash and cash equivalents comprise cash at banks, on hand and short-term investments with maturities of less than three months and which are subject to an insignificant risk of changes in value. Short-term investments included in cash equivalents are comprised of bank deposit certificates and repurchase agreements, both with daily liquidity, stated at acquisition cost plus accrued interest. |
Provisions | 2.17. Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense related to any provision is presented in the statement of profit or loss, net of any expected reimbursement. Provision for landfill closure The Company records the provision for decommissioning costs in relation to the closure and post-closure of landfill as the capacity of the landfill is consumed. The significant accounting aspects are summarized below: Decommissioning costs are recorded for at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the relevant asset. The cash flows are discounted using the Company’s pre-tax • The estimated costs are recorded taking into account the present value of the obligation, discounted using the Company’s pre-tax • Cost estimates are reviewed annually, with the consequent review of present value calculation, adjusting the amounts of assets and liabilities already accounted for. Provisions for contingencies The Company recognizes a provision for civil, labor and tax claims for those where likelihood of loss was assessed as probable by the legal advisors of the Company. Assessment of the probability of loss includes an evaluation of available evidence, hierarchy of laws, available case laws, most recent court rulings and their relevance in the legal system, as well as the opinion of external legal counsel. The provisions are periodically reviewed and adjusted to take into consideration changes in circumstances such as applicable statutes of limitation, conclusions of tax audits or additional exposures identified based on new issues or court decisions. |
Leases | 2.18. Leases Company as a lessee The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. A lease is classified at the inception date as a finance lease or operating leases. A lease that transfers substantially all the risks and rewards incidental benefits relating to ownership to the Company is classified as a finance lease. Finance lease are capitalized at the inception of the lease at fair value of the leased property or, if lower, at the present value of minimum lease payments, with initial direct costs of the lessee being added to the asset, when applicable. Finance lease payments are apportioned between finance charges and reduction of lease liability, so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in the statement of profit or loss. The leased assets are depreciated over their useful lives. However, when there is no reasonable certainty that the Company will obtain ownership by the end of lease term, the asset is depreciated over the shorter of its estimated useful life or the lease term. Operating lease payments are recognized as an expense in the statement of profit or loss on a straight-line basis over the lease term. |
Treasury shares | 2.19. Treasury shares Treasury shares are equity instruments that are repurchased, recognized at cost, and deducted from equity. No gain or loss is recognized in the statements of profit or loss upon purchase, sale, issue or cancellation of Company’s own equity instruments. Any difference between carrying amount and consideration is recognized in other capital reserves. |
Basic and diluted earnings (loss) per share | 2.20. Basic and diluted earnings (loss) per share Basic earnings (loss) per share are calculated by dividing profit or loss attributable to controlling shareholders by the weighted average number of common shares outstanding during the period. The only potential instruments convertible into shares that would affect the diluted earnings (loss) per share refers to stock options granted to certain directors and employees. |
Significant accounting judgments, estimates and assumptions | 2.21. Significant accounting judgments, estimates and assumptions The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosures of contingent liabilities. i) Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on information available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. Allowance for doubtful accounts Trade receivables are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is recorded based on IFRS 9 standard, which requires the Company to record expected credit losses on all its financial assets measured at amortized cost and at fair value through other comprehensive income, on either a 12-month The Company perform an assessment monthly by segregating its financial assets based on their risk characteristics and counterpart, as follows: i) accounts receivable from private customers and ii) accounts receivable from public customers. The Company applies the simplified approach and records lifetime expected losses on all its accounts receivable from customers. The Company updates the historical study of the behavior of the portfolio monthly and its risk matrix by age range on a monthly basis. Further details can be found in Note 5. Impairment of non-financial Impairment exists when the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, which is the higher of its fair value less cost to sell and its value in use. Fair value less cost to sell is calculated based on information available about similar assets sold or market prices less additional costs to dispose of the asset item. The calculation of value in use is based on discounted cash flow model, which does not include reorganization activities to which the Company has not yet committed or significant future investments that will improve the asset base of the object generating unit cash test. The recoverable amount is sensitive to the discount rate used in the discounted cash flow method, as well as expected future cash receipts and growth rate used for extrapolation purposes. Further details can be found in Notes 11 and 12. Provision for legal proceedings Provisions are recorded for tax, civil and labor contingencies. Assessment of the probability of loss includes the assessment of available evidence, hierarchy of laws, most recent court rulings and their relevance in the legal system, as well as the opinion of internal and external legal counsels. The provisions are periodically reviewed and adjusted to take into consideration changes in circumstances such as applicable statutes of limitation, conclusions of tax audits or additional exposures identified based on new issues or court decisions. Actual settlement of claims involving these estimates may result in amounts different from those estimated, due to the degree of judgment involved. The Company reviews its estimates and assumptions at least on an annual basis. Further details can be found in Note 20. Provision for landfill closure The Company recognized a decommissioning liability for landfill closure at the present value of expected costs to settle the obligation using estimated cash flows. In determining the fair value of the provision, assumptions and estimates are made in relation to discount rates, the expected cost for landfill closure and future maintenance of the site and the expected timing of those costs. Further details can be found in Note 19. Tax Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be used. Management’s significant judgment is required so as to determine the amount of deferred tax assets amount than can be recognized based upon the likely and level of future taxable profit, together with future tax planning strategies. Further details can be found in Note 22. Fair value measurement of stock option Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. Further details can be found in Note 21.2. Fair value measurement of financial instruments When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments. See Note 30 for further disclosures. Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date as part of the business combination. When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of the fair value is based on discounted cash flows. Assets held for sale On December 6, 2018, the Company and its Board of Directors approved the plan to sell shares on the Company´s Energy generation business, which has Enc Energy Brasil Participações S.A. (“Enc Energy”) as a minority shareholder, with 10% ownership. Negotiations with some investors were started and it is expected to be completed within one year. The Board of Directors considered the subsidiary to meet the criteria to be classified as held for sale at that date for the following reasons: • Companies’ from energy generation business are available for immediate sale and can be sold to the buyer in its current condition; • The actions to complete the sale were initiated and expected to be completed within one year from the date of the initial classification; and • A potential buyer has been identified and negotiations at the reporting date are at an advance stage. |
New standards effective as of January 1, 2018 | 2.22. New standards effective as of January 1, 2018 The Company applied IFRS 15 and IFRS 9 for the first time. The nature and effect of the changes as a result of adoption of these new standards are described below: Several other amendments and interpretations apply for the first time in 2018, but do not have an impact on the consolidated financial statements of the Company. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. a) IFRS 9 Financial Instruments (“IFRS 9”) IFRS 9 replaces IAS 39 - Financial Instruments for annual periods beginning on or after January 1, 2018. IFRS 9 brings together all three aspects of the accounting financial instruments project: classification and measurement, impairment and hedge accounting. The Company applied IFRS 9 using the retrospective modified approach, with the initial application date of January 1, 2018. The effect of adopting IFRS 9 is, as follows: (a.1) Classification and measurement Under IFRS 9, debt instruments are subsequently measured at fair value through profit or loss, amortized cost, or fair value through OCI. The classification is based on two criteria: the Company’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding. The assessment of the Company’s business model was made as of the date of initial application, January 1, 2018, and then applied retrospectively to those financial assets that were not derecognized before January 1, 2018. The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets. The classification and measurement requirements of IFRS 9 did not have a significant impact on the Company. The Company continued measuring at fair value all financial assets previously held at fair value under IAS 39. The following are the changes in the classification of the Company’s financial assets: • Trade receivables and Other non-current financial assets previously classified as Loans and receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. These are now classified and measured as Debt instruments at amortized cost. There are no changes in classification and measurement for the Company’s financial liabilities. As at 1 January 2018 IFRS 9 measurement category Fair value through Amortized cost Fair value IAS 39 measurement category Loans and receivables Trade accounts receivable 778,106 — 781,598 — Receivables from related parties 14,518 — 14,518 — — 796,116 — * The change in carrying amount is a result of additional impairment allowance. See discussion on impairment below. (a.2) Impairment The adoption of IFRS 9 has fundamentally changed the Company’s accounting for impairment losses for financial assets by replacing IAS 39’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. IFRS 9 requires the Company to recognize an allowance for ECLs for all debt instruments not held at fair value through profit or loss. The Company performed an assessment by segregating its financial assets based on their risk characteristics and counterpart, as follows: i) accounts receivable from private customers and ii) accounts receivable from public customers. The Company applied the simplified approach and recorded lifetime expected losses on all its accounts receivable from customers. The Company carried out a historical study of the behavior of the portfolio, creating a risk matrix by age range. As a result, a R$ 3,492 decrease in the allowance for doubtful accounts was recorded as of January 1, 2018, with the main factor being the new definition of the default term of the public sector. See below the table presenting the impacts. b) IFRS 15 Revenue from Contracts with Customers IFRS 15 was issued in May 2014, and amended in April 2016. IFRS 15 establishes a five-step model to account for revenues arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to receive in exchange for the transfer of goods or services to a customer. The Company adopted the modified retrospective transition method, from January 1, 2018. (b.1) Variable consideration – significant financial component Receivables from public sector customers Generally, public sector customers pay after the due date, and in some cases, payments may be as late as a year or more. In accordance with IFRS 15, the Company is required to determine whether there is a significant financing component in its contracts. According to paragraph 60 of this standard, in determining the transaction price an entity shall adjust the amount of the consideration promised for the effects of the time value of money when a significant financing component is present. A significant financing component may exist independently if the promise of financing is expressly stated in the contract or implied in the terms of payment agreed by the parties to the contract. The Company should analyze if the payment period agreed by the parties to the contract (expressly or implicitly) provides the client or the entity with a significant financial benefit from the transfer of goods or services to the customer. Based on the above, the Company performed an analysis to identify the existence of a significant financial component for public sector clients, since the average term of effective receipt for this client portfolio is approximately six months. The Company considered the average rate of 8.50% p.a. for the discount rate of 2018 (8.40% at December 31, 2017), which represents the discount rate usually applied by the Company to calculate the present value of its non-current assets and liabilities. The IFRS 15 adoption adjustments reduced equity by R$503 at January 1, 2018. (b.2) Contract asset A contract asset is the right to consideration in exchange for the services provided to the customer. If the Company performs by providing services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. For services rendered that customers have not yet approved at the end of the period, revenue is recognized based on estimates or work performed. (b.3) Reversal of revenue Under IFRS 15, the amount of the consideration may vary due to discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. The Company estimated that the effects of discounts and rebates amounted to R$1,948 at January 1, 2018, and made a corresponding adjustment in the equity statement. In summary, the impact of the adoption of IFRS 15 was as follows: Assets Public sector customers (503 ) Reversal of revenues (1,948 ) Deferred income tax and social contribution -34% 191 Net impact on shareholders’ equity (2,260 ) The effect of the adoption of IFRS 15 - Contract Revenue with Client and IFRS 9 - Financial Instruments as of January 1, 2018, with impacts on the opening balance sheet as of January 1, 2018, is presented below: Adjustment settings from the adoption of As previously IFRS 9 - IFRS 15 - IFRS 15 - IFRS 9 and Adjusted in Assets Current assets Cash and cash equivalents 84,687 — — — — 84,687 Marketable securities 42 — — — — 42 Trade accounts receivable 669,237 (165,457 ) (503 ) (1,948 ) — 501,329 Contract asset — 168,949 — — — 168,949 Inventories 11,365 — — — — 11,365 Taxes recoverable 101,870 — — — — 101,870 Other receivables 34,947 — — — — 34,947 Assets held for sale 6,580 — — — — 6,580 Total current assets 908 , 728 3 , 492 (503 ) (1 , 948 ) — 909 , 749 Non-current assets Related parties 14,518 — — — — 14,518 Trade accounts receivable 108,869 — — — — 108,869 Taxes recoverable 52,141 — — — — 52,141 Prepaid expenses 174 — — — — 174 Deferred taxes 44 — — — — 44 Other receivables 14,473 — — — — 14,473 Investments 7,206 — — — — 7,206 Property, plant and equipment 689,451 — — — — 689,451 Intangible assets 588,238 — — — — 588,238 Total non-current assets 1 , 475 , 114 — — — — 1 , 475 , 114 Total assets 2 , 383 , 842 3 , 492 (503 ) (1 , 948 ) — 2 , 384 , 883 Adjustment settings from the adoption of As previously IFRS 9 - IFRS 15 - IFRS 15 - IFRS 9 and Adjusted in Liabilities and equity Current liabilities Loans and financing 14,139 — — — — 14,139 Trade accounts payable 128,113 — — — — 128,113 Provision for landfill closure 20,651 — — — — 20,651 Labor payable 117,925 — — — — 117,925 Tax liabilities 169,505 — — — — 169,505 Loans from related parties 82,788 — — — — 82,788 Advances from customers 16,492 — — — — 16,492 Accounts payable for acquisition of assets 8,965 — — — — 8,965 Liabilities directly associated with the assets held for sale 32,992 — — — — 32,992 Liabilities directly associated with the assets held for sale 23,787 — — — — 23,787 Total current liabilities 615 , 357 — — — — 615 , 357 Non-current liabilities Loans and financing 371,375 — — — — 371,375 Debentures 1,068,979 — — — — 1,068,979 Provision for landfill closure 92,881 — — — — 92,881 Provision for legal proceedings 147,762 — — — — 147,762 Tax liabilities 395,784 — — — — 395,784 Deferred taxes 137,028 — — 622 137,650 Accounts payable for acquisition of assets 10,412 — — — — 10,412 Other liabilities 168 — — — — 168 Total non-current liabilities 2 , 224 , 389 — — — 622 2 , 225 , 011 Equity Capital 17 — — — — 17 Capital reserve 1,068,195 — — — — 1,068,195 Other comprehensive income 1,768 — — — — 1,768 Accumulated losses (1,520,751 ) 3,492 (503 ) (1,948 ) (622 ) (1,520,332 ) (450,771 ) 3,492 (503 ) (1,948 ) (622 ) (450,352 ) Non-controlling interest (5,133 ) — — (5,133 ) Total equity (455,904 ) 3,492 (503 ) (1,948 ) (622 ) (455,485 ) Total liabilities and equity 2 , 383 , 842 3 , 492 (503 ) (1 , 948 ) — 2 , 384 , 883 The effect of adopting IFRS 9 and 15 is, as follows: Impact on statement of profit or loss (increase/(decrease) in profit or loss): Adjustment December 2018 IFRS 9 IFRS 15 December 31, 2018 Revenue from services rendered 1,260,587 — 23,509 1,284,096 Cost of services (979,183 ) — — (979,183 ) Gross profit 28 1,404 — 23 , 509 304,913 Operating income (expenses) General and administrative expenses (327,286 ) — — (327,286 ) Selling expenses, net 5,324 (24,032 ) — (18,708 ) Share of (loss) profit of an associate (3,339 ) — — (3,339 ) Other operating expenses, net (540,647 ) — — (540,647 ) (865,948 ) (24,032 ) — (889,980 ) Loss before finance income and expenses ( 584,544 ) (24 , 032 ) 23 , 509 ( 585,067 ) Finance expenses (251,693 ) — — (251,693 ) Finance income 116,313 — (11,138 ) 105,175 Loss before income and social contribution taxes ( 719,924 ) (24 , 032 ) 12 , 371 ( 731,585 ) Current income and social contribution taxes (41,623 ) — — (41,623 ) Deferred income and social contribution taxes 76,488 — — 76,488 Loss for the year from continuing operations ( 685,059 ) (24 , 032 ) 12 , 371 ( 696,720 ) Discontinued operations Loss after income and social contribution tax from discontinued operations (5,405 ) — — (5,405 ) Loss for the year ( 690,464 ) (24 , 032 ) 12 , 371 ( 702,125 ) The effect of adopting IFRS 9 and 15 is, as follows: Impact on basic and diluted earnings per share (EPS) (increase/(decrease) in EPS: Earnings (loss) per share: Basic, loss for the year attributable to equity holders of the parent (in Reais) (R$ 0. 26 ) Diluted, loss for the year attributable to equity holders of the parent (in Reais) (R$ 0. 24 ) Loss per share from continuing operations Basic, loss from continuing operations attributable to equity holders of the parent (in Reais) (R$ 0.30 ) Diluted, loss from continuing operations attributable to equity holders of the parent (in Reais) (R$ 0.28 ) |
Accounting standards and interpretations issued recently and not yet adopted by the Company | 2.23. Accounting standards and interpretations issued recently and not yet adopted by the Company As of the date of the consolidated financial statements, the following issues and changes in IFRS and IFRICs had been published, but were not mandatory for the year ended December 31, 2018. The Company has not early adopted any of the Standards below. Based on the analyzes made so far, the Company estimates that the adoption of these standards, amendments and interpretations will not have a significant impact on the consolidated financial statements in the initial period of adoption, except for the effects of IFRS 16, as explained below. IFRS 16 – Leases IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees – leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. IFRS 16, which is effective for annual periods beginning on or after January 1, 2019, requires lessees and lessors to make more extensive disclosures than under IAS 17. The Company plans to adopt IFRS 16 using the retrospective modified transition method. On January 1, 2019, the Company recognized a right to use asset and a lease liability of R$ 23,264. IFRIC 23 – Uncertainty about treatment of taxes on profit The new interpretation establishes requirements for recognition and measurement in situations where the Company has defined during the process of calculating income taxes (income and social contribution taxes) the use of tax treatments that may be classified as uncertain and, therefore, may be questioned by the tax authority. This interpretation is effective for fiscal years beginning on or after January 1, 2019. In the evaluation of the Company’s Management, no significant impacts are expected as a result of the interpretation, since all the procedures adopted for the determination and collection of taxes on profit are supported by the legislation and precedents of Administrative and Judicial Courts. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Gain (Loss) on Divestiture | The following are the effects of restating prior years to reflect discontinued operations: 2017 As reported Adjustment As restated Revenue from services rendered 1,365,347 (19,498 ) 1,345,849 Cost of services (953,760 ) 11,505 (942,255 ) Gross profit 411 , 587 (7 , 993 ) 403 , 594 Operating income (expenses) General and administrative expenses (258,114 ) 1,582 (256,532 ) Selling expenses, net (6,641 ) — (6,641 ) Share of (loss) profit of an associate (1,020 ) — (1,020 ) Other operating expenses, net (29,859 ) (1,266 ) (31,125 ) (295,634 ) 316 (295,318 ) Profit before finance income and expenses 115 , 953 (7 , 677 ) 108 , 276 Finance expenses (534,273 ) 2,098 (532,175 ) Finance income 109,731 (1,450 ) 108,281 Loss before income and social contribution taxes (308 , 589 ) (7 , 029 ) (315 , 618 ) Current income and social contribution taxes (18,263 ) 720 (17,543 ) Deferred income and social contribution taxes 371,084 — 371,084 Profit for the year from continuing operations 44 , 232 (6 , 309 ) 37 , 923 Discontinued operations Profit after income and social contribution tax from discontinued operations 8,033 6,309 14,342 Profit for the year 52 , 265 — 52 , 265 2016 As reported Adjustment As restated Revenue from services rendered 1,393,033 (13,002 ) 1,380,031 Cost of services (1,012,336 ) 8,588 (1,003,748 ) Gross profit 380 , 697 (4 , 414 ) 376 , 283 Operating income (expenses) General and administrative expenses (231,932 ) 882 (231,050 ) Selling expenses, net 10,495 — 10,495 Share of (loss) profit of an associate 10,152 — 10,152 Other operating expenses, net (77,938 ) (2,613 ) (80,551 ) (289,223 ) (1,731 ) (290,954 ) Profit before finance income and expenses 91 , 474 (6 , 145 ) 85 , 329 Finance expenses (400,892 ) 3,759 (397,133 ) Finance income 53,622 (1,959 ) 51,663 Loss before income and social contribution taxes (255 , 796 ) (4 , 345 ) (260 , 141 ) Current income and social contribution taxes (55,435 ) 1,098 (54,337 ) Deferred income and social contribution taxes (49,755 ) — (49,755 ) Loss for the year from continuing operations (360 , 986 ) (3 , 247 ) (364 , 233 ) Discontinued operations Profit after income and social contribution tax from discontinued operations 41 3,247 3,288 Loss for the year (360 , 945 ) — (360 , 945 ) |
Dona Juana [member] | |
Statement [LineItems] | |
Disclosure of gain loss on divestiture [table text block] | The amounts recorded on the transaction date are as follows: Description R$ Sale amount 10,410 Carrying value as of the date of the sale (provision balance) 16,759 (=) Gain on sale (Note 10.2) 27,169 |
CGR catanduva - Centro de Gerenciamento de Resduos Ltda [member] | |
Statement [LineItems] | |
Disclosure of gain loss on divestiture [table text block] | Details of the transaction are as follows: Description R$ Sale price 7,500 Carrying amount of investment in Catanduva on the date of the sale (5,468 ) (=) Gain on sale (Note 27) 2,032 |
Presentation of financial sta_3
Presentation of financial statements and significant accounting practices adopted (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Subsidiaries Included in Consolidated Financial Statements | The consolidated financial statements include the following direct subsidiaries of Estre Ambiental, Inc.: Subsidiary Main activity Country of 2018 2017 Estre Ambiental S.A. (a) Waste management Brazil 93.92 % 93.92 % Estre USA Inc. Holding USA 100 % 100 % Road Participações S.A. Holding Brazil 100 % 100 % (a) Estre Ambiental, Inc. has a direct interest of 66.57% and an indirect interest of 27.35% through its wholly owned subsidiary Road Participações S.A. In addition, the consolidated financial statements include the following indirect subsidiaries of Estre Ambiental, Inc. and direct subsidiaries of Estre Brazil: Subsidiary Main activity and services Country of 2018 2017 2016 Estre Água e Solo Ltda. (a) Laboratory analysis Brazil — 100 % 100 % Ambiental Sul Brasil - Central Regional de Tratamento de Resíduos Ltda. Waste management center Brazil 100 % 100 % 100 % Cavo Cleaning and collection Brazil 100 % 100 % 100 % Pilares Participação Ltda. Holding Brazil — — 100 % Oxil Manufatura Reversa e Gerenc. de Resíduos Ltda. Recycling Brazil 100 % 100 % 100 % LMG Participações Ltda. Holding Brazil — — 100 % Viva Ambiental e Serviços S.A. Cleaning and collection Brazil 100 % 100 % 100 % V2 Ambiental SPE S.A. Waste management center Brazil 100 % 100 % 100 % Resicontrol Soluções Ambientais Ltda. Waste management center Brazil 100 % 100 % 100 % CGR Doña Juana S.A. ESP (“CGR Doña Juana”) (b) Waste management center Colombia — — — CTR Itaboraí - Centro de Tratamento de Resíduos de Itaboraí Ltda. Waste management center Brazil 100 % 100 % 100 % Esergia Estratégias Energéticas Ambientais Ltda. (c) Energy use services Brazil — 100 % 50 % Estação Ecologia - Área de Transbordo Triagem e Reciclagem de RCD S.A. (c) Recycling Brazil — 100 % 100 % Geo Vision Holding Brazil 100 % 100 % 100 % CGR Guatapará - Centro de Gerenc. de Resíduos Ltda. Waste management center Brazil 100 % 100 % 100 % Estre SPI Ambiental S.A. (“Estre SPI”) Cleaning and collection Brazil 100 % 100 % 100 % NGA - Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % NGA Jardinópolis - Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % NGA Ribeirão Preto Núcleo de Gerenciamento Ambiental Ltda. Waste treatment Brazil 100 % 100 % 100 % Reciclax - Reciclagem de Resíduos da Construções Civil Ltda. (“Reciclax”) Recycling Brazil 88 % 88 % 88 % Guatapará Energia S.A. (d) Energy use services Brazil 90 % 90 % 90 % CTR Porto Seguro Waste management center Brazil 100 % 100 % 100 % Estre Energia Renovável Part. S.A. (d) Holding Brazil 90 % 90 % 90 % SPE Paulínia Energia Ltda. (d) Energy use services Brazil 100 % 100 % 100 % SPE Tremembé Energia Ltda. (d) Energy use services Brazil 100 % 100 % 100 % Curitiba Energia SPE Ltda. (d) Energy use services Brazil 100 % 100 % 100 % Piratininga Energia e Participações Ltda. (d) Energy use services Brazil 100 % 100 % 100 % CTR Arapiraca S.A. Waste treatment center Brazil 100 % 100 % 100 % Estre Aterros e Valorização Holding S.A. Holding Brazil 100 % 100 % 100 % NGA Sul – Núcleo de Gerenciamento Ambiental S.A. Holding Brazil — — 100 % CGR – Centro de Gerenc. de Resíduos Feira de Santana S.A. Waste management center Brazil 100 % 100 % 100 % GLA - Gestão Logistica Ambiental S.A. Cleaning and collection Brazil 38 % 38 % SPE Soma Soluções em Meio Ambiente Ltda. (“SPE SOMA”) Cleaning and collection Brazil 82 % 82 % — Leccaros Participações S.A.(Note 10.2.2) Holding Brazil — — 50 % CGR Catanduva – Centro de Gerenc. de Resíduos Ltda. (“CGR Catanduva”) (Note 1.3.3 and 9) Waste management center Brazil — 50 % — Estre Ambiental Sucursal Colômbia (e) Cleaning and collection Colombia 100 % 100 % 100 % (a) Merged into Estre SPI in 2018. (b) Presented as assets held for sale since 2016, with sale process concluded in November 2018 (Notes 1.3.1 and 10.2). (c) Merged into Estre Brazil in 2018. (d) Subsidiaries included in an asset sale process (Note 1.3.4). (e) Subsidiary created to collect cash from the D. Juana sale. |
Investments in Associates Accounted for Using Equity Method | The Company’s investments in its associates and joint ventures, shown in the table below, are accounted for using the equity method: Denomination Main activity Host Interest 2018 2017 2016 Unconsolidated investes Attend Ambiental Ltda. (“Attend”) Treatment of liquid effluents Brazil — — (a) 55% Metropolitana Serviços Ambientais Ltda. Waste management center Brazil Direct 50% 50% 50% Terrestre Ambiental Ltda. Waste management center Brazil — — (a) 40% CGR Catanduva Waste management center Brazil — (b) (b) 50% Logística Ambiental de São Paulo S.A. (“Loga”) Cleaning and collection services Brazil — — (a) 38% Unidade de Tratamento de Resíduos - UTR S.A. Waste management center Brazil — — — (c) 54% (a) On December 21, 2017, these investments were transferred to Latte Saneamento e Participações S.A. (“Latte”), a related party owned by some of the same shareholders of the Company (refer to Note 10.1). (b) This subsidiary was consolidated in 2017 and it was sold in December 2018 (Note 1.3.3). (c) On August 1 st |
Proportion of Equity Interest Held by Non-controlling Interests | Percentage of equity interest held by non-controlling Name Country of 2018 2017 2016 CGR Doña Juana (a) Colombia — 49% 49% SPE Soma Brazil 18% 18% — Reciclax Brazil 13% 13% 13% Guatapará Energia S.A. (b) Brazil 10% 10% 10% Estre Energia Renovável Part. S.A. (“Estre Energia Renovável”) (b) Brazil 10% 10% 10% GLA - Gestão Logistica Ambiental S.A. (“GLA”) Brazil 62% 62% — CGR Catanduva (c) Brazil — 50% — (a) Presented as assets held for sale since 2016, with sale process conclued in November 2018 (Note 10.2 and 1.3.1). (b) Subsidiaries involved in an asset sale process (Note 1.3.4). (c) This subsidiary was consolidated in 2017 and it was sold in December 2018 (Note 1.3.3). |
Summarized Statement of Profit or Loss | Summarized statement of profit or loss for 2018: Reciclax SPE Soma GLA Revenue from services rendered 569 335,317 24,398 Cost of services rendered (2,019 ) (252,480 ) (17,569 ) General and administrative expenses (445 ) (40,417 ) (449 ) Other operating income (expenses), net (28 ) (5,161 ) (471 ) Financial expenses, net (85 ) (895 ) 31 Profit (loss) before tax es (2,008 ) 36 , 364 5,940 Income tax and social contribution (2 ) (32,842 ) (824 ) Profit (loss) for the year from continuing operations (2,010 ) 3 , 522 5,116 Total comprehensive income (2,010 ) 3,522 5,116 Attributable to non-controlling interests (251 ) 634 3,187 Summarized statement of profit or loss for 2017: Estre Energia Guatapará SPE CGR Revenue from services rendered — 9,115 777 84,919 12,055 10,348 Cost of services rendered — (5,614 ) (2,737 ) (61,051 ) (7,950 ) (8,252 ) General and administrative expenses (1,111 ) (299 ) (466 ) (3,180 ) (170 ) (833 ) Other operating income (expenses), net 3,297 1,252 85 (1,356 ) (233 ) (292 ) Financial expenses, net 878 (799 ) (117 ) (2,783 ) 38 (305 ) Profit (loss) before taxes 3,064 3,655 (2,458 ) 16,549 3,740 666 Income tax and social contribution — (410 ) 964 218 (408 ) (458 ) Profit (loss) for the year from continuing operations 3,064 3,245 (1,494 ) 16,767 3,332 208 Total comprehensive income 3,064 3,245 (1,494 ) 16,767 3,332 208 Attributable to non-controlling 306 325 (187 ) 3,018 2,076 104 Summarized statement of profit or loss for 2016: Estre Energia Guatapará Reciclax Revenue from services rendered — 8,251 1,320 Cost of services rendered — (4,725 ) (2,475 ) General and administrative expenses (666 ) (180 ) (236 ) Other operating income, net 1,329 2,482 (231 ) Financial expenses, net (1,906 ) (1,007 ) (126 ) Profit (loss) before taxes (1,243 ) 4,821 (1,748 ) Income tax and social contribution — (331 ) — Profit (loss) for the year from continuing operations (1,243 ) 4,490 (1,748 ) Total comprehensive income (1,243 ) 4,490 (1,748 ) Attributable to non-controlling (124 ) 449 (219 ) |
Summarized Statement of Financial Position | Summarized statement of financial position at December 31, 2018: Reciclax SPE Soma GLA Assets Current assets Cash and cash equivalents 6 218 672 Trade accounts receivable 57 51,108 2,855 Taxes recoverable 65 1,568 2,977 Advances to suppliers — 80 — Other current assets 127 17,775 241 Total current assets 255 70,749 6,745 Non-current assets Related parties 248 32,552 — Other non-current assets 107 1,828 — Investments — — — Property, plant and equipment 7,885 4,714 147 Intangible assets — 112 — Total non-current assets 8,240 39,206 147 Total assets 8,495 109,955 6,892 Reciclax SPE Soma GLA Liabilities Current liabilities Trade accounts payable 221 18,678 1,630 Labor liabilities 76 24,702 1,104 Tax liabilities 50 9,858 1,642 Debt to related parties 5,532 — — Other current liabilities 39 19,061 — Total current liabilities 5,918 72,299 4,376 Non-current liabilities Provision for legal proceedings 111 6,127 — Other liabilities 85 167 — Total non-current liabilities 196 6 , 294 — Capital 4,714 43,484 1 Reserves 4,481 — — Accumulated earnings (losses) (6,814 ) (12,122 ) 2,515 Total equity 2,381 31 , 362 2,516 Total liabilities and equity 8,495 1 09 ,9 55 6,892 Attributable to: Equity holders of parent 2,071 25,717 956 Non-controlling interest 310 5,645 1,560 Summarized statement of financial position at December 31, 2017: Estre Energia Guatapará Reciclax SPE GLA CGR Assets Current assets Cash and cash equivalents 1,703 763 10 17,038 1,106 1,213 Trade accounts receivable — 1,305 1,382 45,619 2,303 2,469 Taxes recoverable 1 1 13 1,759 70 173 Advances to suppliers 8 — 16 125 — — Other current assets — 745 218 21,135 177 2 Total current assets 1,712 2,814 1,639 85,676 3,656 3,857 Non-current Related parties 18 — 2,159 39,994 — 16 Other non-current — — 33 10,436 — 258 Investments 24,061 — — — — — Property, plant and equipment 8,754 23,048 8,039 6,076 149 12,988 Intangible assets — — — 225 — 2,195 Total non-current 32,833 23,048 10,231 56,731 149 15,457 Total assets 34,545 25,862 11,870 142,407 3,805 19,314 Estre Energia Guatapará Reciclax SPE GLA CGR Liabilities Current liabilities Loans and Financing — — — — — 160 Trade accounts payable 44 2,168 478 8,400 1,818 636 Labor liabilities 87 — 311 31,451 726 374 Tax liabilities 4 178 148 17,822 436 605 Debt to related parties 20,500 — 6,099 — — 210 Other current liabilities 300 3,072 29 1,451 1 1 Total current liabilities 20,935 5,418 7,065 59,124 2,981 1,986 Non-current Provision for legal proceedings — — 129 2,299 — — Other liabilities — — 224 22,474 — 2,734 Total non-current — — 353 24,773 — 2,734 Capital 12,000 10,682 4,714 43,484 1 4,376 Reserves — — 4,542 — 823 4,452 Accumulated earnings (losses) 1,610 9,762 (4,804 ) 15,026 — 5,766 Total equity 13,610 20,444 4,452 58,510 824 14,594 Total liabilities and equity 34,545 25,862 11,870 142,407 3,805 19,314 Attributable to: Equity holders of parent 12,249 18,400 3,873 47,978 311 7,297 Non-controlling 1,361 2,044 579 10,532 511 — Summarized statement of financial position at December 31, 2016: Estre Energia Guatapará Reciclax Assets Current assets Cash and cash equivalents 33 39 19 Trade accounts receivable — 690 1,236 Taxes recoverable 1 1,212 8 Advances to suppliers 7 1 11 Other current assets — 1,114 12 Total current assets 41 3,056 1,286 Non-current Related parties 17 39 1,891 Other non-current — — 18 Property, plant and equipment 23,253 — — Intangible assets 9,890 20,866 8,166 Total non-current 33,160 20,905 10,075 Total assets 33,201 23,961 11,361 Estre Energia Guatapará Reciclax Liabilities Current liabilities — — — Loans and Financing — — — Trade accounts payable 4 3,310 448 Labor liabilities 80 — 204 Tax liabilities 73 382 741 Debt to related parties 21,499 — 3,782 Other current liabilities 375 2,301 27 Total current liabilities 22,031 5,993 5,202 Non-current Provision for legal proceedings — — 63 Other liabilities — — 140 Total non-current — — 203 Capital 12,000 10,682 4,714 Reserves — 483 4,430 Accumulated losses (830 ) 6,803 (3,188 ) Total equity 11,170 17,968 5,956 Total liabilities and equity 33,201 23,961 11,361 Attributable to: Equity holders of parent 10,053 16,171 5,182 |
Summarized Cash Flow Information | Summarized cash flow information for year ended on December 31, 2018: Reciclax SPE GLA CGR Operating activities 240 (16.372 ) (434 ) (167 ) Investing activities (244 ) (448 ) — (663 ) Financing activities — — — 78 Net cash generated/(used) (4 ) (16.820 ) (434 ) (752 ) (*) Subsidiary CGR Catanduva sold on December 14, 2018, see note 1.3.3. Summarized cash flow information for year ended on December 31, 2017: Estre Guatapará Reciclax SPE GLA CGR Operating activities 1,670 5,162 320 23,688 1,260 1,399 Investing activities 33 (4,399 ) (310 ) (6,650 ) (155 ) (132 ) Financing activities — — — — 1 (517 ) Net cash generated/(used) 1,703 763 10 17,038 1,106 750 Summarized cash flow information for year ended on December 31, 2016: Estre Guatapará Reciclax Operating activities (33,063 ) (4,400 ) 124 Investing activities 33,143 2,519 (117 ) Financing activities 1 2,500 2 Net cash generated/(used) 81 619 9 |
Statutory Rates of Sales Taxes | Sales revenues in Brazil are subject to taxes and contributions, at the following statutory rates: Rate Withholding taxes - PIS, COFINS and CSLL 4.65 % Social Security Tax (INSS) 11.00 % Contribution Tax on Gross Revenue for Social Security Financing (COFINS) (a) 7.60 % Contribution Tax on Gross Revenue for Social Integration Program (PIS) (a) 1.65 % Withholding Income Tax (IRRF) 1.50 % Services Tax (ISS) (b) 5.00 % VAT Tax (ICMS) (c) 18.00 % (a) Brazilian tax legislation allows smaller entities with less than R$ 78 million in annual gross revenue to opt to declare income taxes on the presumed profit basis. These are subject to lower COFINS and PIS rates of 3.00% and 0.65%, respectively. However, PIS and COFINS taxes on purchases may not be claimed back and will not generate tax credits under the presumed profits basis. (b) ISS rates vary according to the municipality; the ISS rate stated in the table above is the most commonly levied on the Company’s operations. (c) ICMS is taxed on the movement of goods. The tax payable is due on sales net purchases. The rates vary across different products and Brazilian states. The State of São Paulo levies ICMS at standard rate of 18.00%. |
Statutory Rates of Taxes on Purchases | Taxes paid on purchases of goods and services can normally be recovered as tax credits, at the following statutory rates: Rate Contribution Tax on Service Rendered for Social Security Financing (COFINS) 7.60 % Contribution Tax on Service Rendered for Social Integration Program (PIS) 1.65 % |
Statutory Rates of Withholding Taxes on Purchases | On certain purchases of services and use of third-party labor the Company is required to withhold a percentage of the amounts billed by its suppliers and pay tax on their behalf, at the following statutory rates: Rate Withholding taxes - PIS, COFINS and CSLL 4.65 % Social Security Tax (INSS) 11.00 % Withholding Income Tax (IRRF) 1.50 % Services Tax (ISS) 5.00 % |
Sumarry of New Standards | In summary, the impact of the adoption of IFRS 15 was as follows: Assets Public sector customers (503 ) Reversal of revenues (1,948 ) Deferred income tax and social contribution -34% 191 Net impact on shareholders’ equity (2,260 ) The effect of the adoption of IFRS 15 - Contract Revenue with Client and IFRS 9 - Financial Instruments as of January 1, 2018, with impacts on the opening balance sheet as of January 1, 2018, is presented below: Adjustment settings from the adoption of As previously IFRS 9 - IFRS 15 - IFRS 15 - IFRS 9 and Adjusted in Assets Current assets Cash and cash equivalents 84,687 — — — — 84,687 Marketable securities 42 — — — — 42 Trade accounts receivable 669,237 (165,457 ) (503 ) (1,948 ) — 501,329 Contract asset — 168,949 — — — 168,949 Inventories 11,365 — — — — 11,365 Taxes recoverable 101,870 — — — — 101,870 Other receivables 34,947 — — — — 34,947 Assets held for sale 6,580 — — — — 6,580 Total current assets 908 , 728 3 , 492 (503 ) (1 , 948 ) — 909 , 749 Non-current assets Related parties 14,518 — — — — 14,518 Trade accounts receivable 108,869 — — — — 108,869 Taxes recoverable 52,141 — — — — 52,141 Prepaid expenses 174 — — — — 174 Deferred taxes 44 — — — — 44 Other receivables 14,473 — — — — 14,473 Investments 7,206 — — — — 7,206 Property, plant and equipment 689,451 — — — — 689,451 Intangible assets 588,238 — — — — 588,238 Total non-current assets 1 , 475 , 114 — — — — 1 , 475 , 114 Total assets 2 , 383 , 842 3 , 492 (503 ) (1 , 948 ) — 2 , 384 , 883 Adjustment settings from the adoption of As previously IFRS 9 - IFRS 15 - IFRS 15 - IFRS 9 and Adjusted in Liabilities and equity Current liabilities Loans and financing 14,139 — — — — 14,139 Trade accounts payable 128,113 — — — — 128,113 Provision for landfill closure 20,651 — — — — 20,651 Labor payable 117,925 — — — — 117,925 Tax liabilities 169,505 — — — — 169,505 Loans from related parties 82,788 — — — — 82,788 Advances from customers 16,492 — — — — 16,492 Accounts payable for acquisition of assets 8,965 — — — — 8,965 Liabilities directly associated with the assets held for sale 32,992 — — — — 32,992 Liabilities directly associated with the assets held for sale 23,787 — — — — 23,787 Total current liabilities 615 , 357 — — — — 615 , 357 Non-current liabilities Loans and financing 371,375 — — — — 371,375 Debentures 1,068,979 — — — — 1,068,979 Provision for landfill closure 92,881 — — — — 92,881 Provision for legal proceedings 147,762 — — — — 147,762 Tax liabilities 395,784 — — — — 395,784 Deferred taxes 137,028 — — 622 137,650 Accounts payable for acquisition of assets 10,412 — — — — 10,412 Other liabilities 168 — — — — 168 Total non-current liabilities 2 , 224 , 389 — — — 622 2 , 225 , 011 Equity Capital 17 — — — — 17 Capital reserve 1,068,195 — — — — 1,068,195 Other comprehensive income 1,768 — — — — 1,768 Accumulated losses (1,520,751 ) 3,492 (503 ) (1,948 ) (622 ) (1,520,332 ) (450,771 ) 3,492 (503 ) (1,948 ) (622 ) (450,352 ) Non-controlling interest (5,133 ) — — (5,133 ) Total equity (455,904 ) 3,492 (503 ) (1,948 ) (622 ) (455,485 ) Total liabilities and equity 2 , 383 , 842 3 , 492 (503 ) (1 , 948 ) — 2 , 384 , 883 The effect of adopting IFRS 9 and 15 is, as follows: Impact on statement of profit or loss (increase/(decrease) in profit or loss): Adjustment December 2018 IFRS 9 IFRS 15 December 31, 2018 Revenue from services rendered 1,260,587 — 23,509 1,284,096 Cost of services (979,183 ) — — (979,183 ) Gross profit 28 1,404 — 23 , 509 304,913 Operating income (expenses) General and administrative expenses (327,286 ) — — (327,286 ) Selling expenses, net 5,324 (24,032 ) — (18,708 ) Share of (loss) profit of an associate (3,339 ) — — (3,339 ) Other operating expenses, net (540,647 ) — — (540,647 ) (865,948 ) (24,032 ) — (889,980 ) Loss before finance income and expenses ( 584,544 ) (24 , 032 ) 23 , 509 ( 585,067 ) Finance expenses (251,693 ) — — (251,693 ) Finance income 116,313 — (11,138 ) 105,175 Loss before income and social contribution taxes ( 719,924 ) (24 , 032 ) 12 , 371 ( 731,585 ) Current income and social contribution taxes (41,623 ) — — (41,623 ) Deferred income and social contribution taxes 76,488 — — 76,488 Loss for the year from continuing operations ( 685,059 ) (24 , 032 ) 12 , 371 ( 696,720 ) Discontinued operations Loss after income and social contribution tax from discontinued operations (5,405 ) — — (5,405 ) Loss for the year ( 690,464 ) (24 , 032 ) 12 , 371 ( 702,125 ) The effect of adopting IFRS 9 and 15 is, as follows: Impact on basic and diluted earnings per share (EPS) (increase/(decrease) in EPS: Earnings (loss) per share: Basic, loss for the year attributable to equity holders of the parent (in Reais) (R$ 0. 26 ) Diluted, loss for the year attributable to equity holders of the parent (in Reais) (R$ 0. 24 ) Loss per share from continuing operations Basic, loss from continuing operations attributable to equity holders of the parent (in Reais) (R$ 0.30 ) Diluted, loss from continuing operations attributable to equity holders of the parent (in Reais) (R$ 0.28 ) |
Capital and financial risk ma_2
Capital and financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Capital management | 2018 2017 Loans and financing (Note 13) 628,297 385,514 Debentures (Note 14) 966,386 1,068,979 (-) Cash and cash equivalents (Note 4) (18,862 ) (84,687 ) (-) Marketable securities (42 ) (42 ) Net debt 1,575,779 1,369,764 Equity (capital deficiency) (1,149,210 ) (455,904 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Cash and cash equivalents | Cash and cash equivalents is as follows: Description 2018 2017 Cash 168 170 Bank account 4,262 44,123 Bank Deposit Certificates (a) 14,432 40,394 Total 18,862 84,687 (a) Refers to highly-liquid Bank Deposit Certificates (CDBs) under repurchase agreements with returns substantially tied to a variation ranging between 75.0% and 90.0% of the Brazilian Interbank Deposit Certificate (CDI) rate. |
Cash and cash equivalents for the purpose of cash flows | For the purpose of the statement of cash flows, cash and cash equivalents comprise the following at 31 December: Description 2018 2017 2016 Cash 168 170 110 Bank account 4,262 44,123 2,861 Bank Deposit Certificates (a) 14,432 40,394 28,112 18,862 84,687 31,083 Cash at banks and short-term deposits attributable to discontinued operations (note 10.2) 1,655 — — Total 20 , 517 84,687 31,083 |
Trade accounts receivable (Tabl
Trade accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Trade Accounts Receivables | Description 2018 2017 Trade accounts receivable 7 57 , 991 966,827 Carbon credits (a) 7,306 2,998 765 , 297 969,825 ( - ) Adjustment to present value (b) (32,456 ) (34,472 ) ( - ) Allowance for doubtful accounts (109,966 ) (157,247 ) Total 622 , 875 778,106 Current 501 , 821 669,237 Non-current 12 1 ,0 54 108,869 (a) The Company entered into an agreement on June 17, 2015 with Nordic Environment Finance Corporation referring to the Clean Development Mechanism (MDL), whereby the biogas generated in a landfills is burned and transformed into carbon credits. The balances as of December 31, 2018 refers to credits generated in the current fiscal year and that the Company expects to realize in 2019 due to usual timing of credit approval. (b) The adjustment of long-term receivables to present value was calculated using a discount rate of 8.50% per year. |
Summary of Aging of Trade Accounts Receivable | The aging of trade accounts receivable is as follows: Description 2018 2017 Unbilled — 168,949 Falling due 3 27 , 327 386,030 Overdue up to 30 days 37,530 56,067 Overdue from 31 to 60 days 27,375 26,403 Overdue from 61 to 90 days 42,788 30,232 Overdue from 91 to 180 days 88,377 65,569 Overdue from 181 to 360 days 60,698 79,328 Overdue for more than 360 days 181,202 157,247 Total 765 , 297 969,825 |
Summary of Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts are as follows: Description 2018 2017 2016 Opening balance (157,247 ) (155,341 ) (168,210 ) Additional allowance ( 26 , 311 ) (104,963 ) (304,436 ) Reversal of allowance 36 , 823 103,057 317,279 Transfer to discontinued operations 4 97 — 26 Write-off referring to actual losses 32, 780 — — Change in accounting practice 3,492 — — Closing balance (109,966 ) (157,247 ) (155,341 ) |
Taxes recoverable (Tables)
Taxes recoverable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Taxes Recoverable | Description 2018 2017 Corporate income tax (IRPJ) (a) 29 , 842 56,342 Social contribution tax (CSLL) (a) 10,9 99 16,743 Social security contribution tax (INSS) (b) 24,576 19,669 Integration program (PIS) / Social security financing (COFINS) / Social contribution tax (CSLL)(c) 13 ,6 16 9,259 Withholding income tax (IRRF) (d) 9,570 16,946 PIS/COFINS recoverable on acquisition of assets (e) 24,566 13,099 Other 16 , 398 21,953 Total 1 29,567 154,011 Current 98 , 367 101,870 Non-current 31 , 200 52,141 (a) IRPJ and CSLL are related to tax advances recorded on estimation basis throughout the year. (b) INSS is a social security charge levied on wages paid to employees. On certain services rendered, clients are required to withhold 11% of the amounts billed and pay INSS tax on our behalf, with no impact to the statement of profit or loss. Credits are used to compensate INSS payable. (c) Services rendered require our clients to retain and pay taxes on our behalf. The rate of 4.65% in relation to PIS, COFINS and CSLL tax on applicable services rendered is withheld from receivables from clients and recognized as a tax recoverable, with no impact to the statement of profit or loss. (d) Refers to IRRF retained by financial institutions from the Company’s financial investments and on certain services rendered, clients are required to withhold 1.5% of the amounts billed to them and pay IRPJ (Income tax) on our behalf, with no impact to the statement of profit or loss. (e) Refers to PIS/COFINS credits obtained from the acquisition of some property, plant and equipment. |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Other Receivables | Description 2018 2017 Judicial deposits 18,398 19,059 Advances to employees 1,026 2,204 Accounts receivable from non-controlling interest (a) 8,930 10,334 Advances to suppliers 3,258 2,933 Dividends receivable 3,938 1,265 Prepaid expenses 6,127 7,165 Other (b) 10,931 6,460 Total 52,608 49,420 Current 31,960 34,947 Non-current 20,648 14,473 (a) Mainly relates to a receivable from Soma’s non-controlling (b) Includes receivables from the sale of assets on the total amount of R$ 5,783 in 2018. |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Related Parties Activities | At December 31, 2018 and 2017, balances with associates are as follows: 2018 2017 Assets Attend Ambiental (a) — 10,960 Other 2,2 18 3,558 Total non-current 2 , 218 14,518 2018 2017 Liabilities Hulshof Participações Ltda (b) 21,518 37,349 Wilson Quintella Filho (d) 9,222 7,220 Angra Infra FIP (c) 41,662 37,884 Estre Coleta Holding (d) 7,272 — Logistica Ambiental - Loga 731 — Other 1,7 21 335 Total current 82,1 26 82,788 (a) Referes to intercompany transaction within Attend Ambiental which was settled at December 31, 2018. (b) On December 20, 2017, the Company signed a non-compete agreement and other covenants, with Hulshof Participações (“Hulsholf”) and Wilson Quintella Filho (“Wilson”). In such agreement, the Company agreed a non-compete fee to be paid to Wilson and Hulshof, in the amount of US$15,000 (US$12,450 for Hulshof and US$2,550 for Wilson). Negotiation with the holders was also included such debt in the 2019 debt restructuring efforts. (c) Refers to the put option exercised by Angra Infra FIP. Refer to Note 21.6. (d) Intercompany balances from the spin off transaction of Estre Coleta Holding. b) Other related-party transactions The Company conducts transactions under market conditions, agreed in major cases with contracts between the parties, based on the type of operation. Revenues and accounts receivable from related parties for waste management services provided, included under revenue from services and trade accounts receivable, respectively, are as follows: Revenues Trade accounts receivable 2018 2017 2016 2018 2017 CGR Catanduva 85 — 247 85 — Loga 417 2,894 — 417 1,143 Attend 37 64 69 37 12 Other 33 6 92 41 34 Total 572 2,964 408 580 1,189 Costs and accounts payable to related parties for waste management services provided, included under cost of services and trade accounts payable, respectively, are as follows: Costs of services Trade accounts payable 2018 2017 2016 2018 2017 Terrestre Ambiental Ltda. 5 3 55 13 8 Unidade de Tratamento de Resíduos S.A. — 60 361 — — Loga. — — 50 34 34 Attend (a) 2,219 2,457 1,350 456 2,045 Total 2,224 2,520 1,816 503 2,087 (a) Referes to treatment services cost Leachete. c) Interest expense and balance of debentures and private debt acknowledgement As mentioned in Note 13 and 14, the Company has debentures and private debt acknowledgments issued held by its shareholder BTG Pactual, as follows: Financial expenses Debt Related parties 2018 2017 2016 2018 2017 Debentures (25,815 ) (117,879 ) (134,062 ) 261,199 419,236 Private Debt Acknowledgment Instrument (55,444 ) (1,275 ) — 581,901 357,789 |
Summary of Key Management Personnel Compensation | Key management personnel compensation of the Company is as follows: Description 2018 2017 2016 Salaries and social security charges (*) 14,687 7,300 6,999 Bonuses and social security charges 8,208 6,854 6,124 Stock options 1,440 6,197 28,937 Total compensation 24,335 20,351 42,060 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Fair Value of Assets Acquired and Liabilities Assumed | The fair value of the identifiable assets and liabilities of CGR Catanduva as of May 31, 2017 were as follows: Fair value ASSETS Cash and cash equivalents 1,513 Accounts receivable 2,280 Taxes recoverable 3,025 Other credits 22 Property, plant and equipment 14,125 Intangible assets - customer relationship 2,195 Total assets 23,160 LIABILITIES Trade payables (296 ) Loans and financing (544 ) Tax installments (5,900 ) Taxes payables (1,858 ) Other liabilities (1,373 ) Deferred taxes liability (746 ) Total liabilities (10,717 ) Total identifiable net assets at fair value 12,443 Non-controlling (6,222 ) |
Investments and assets and li_2
Investments and assets and liabilities held for sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Investments Classification | Investments are classified as follows: Description 2018 2017 Investments 7,663 7,206 Total investments 7,663 7,206 |
Ownership Interest in Associates and Key Information | Presented below are the percentage ownership of the Company’s interest in associates and joint ventures and related key information as at December 31, 2018 and 2017. December 31, 2018 Interest Current Non-current Assets Current Non-current Liabilities Equity Net Net income Associates Metropolitana Serviços Ambientais Ltda. 50.00 % 584 15,330 221 367 15,326 — (6,677 ) December 31, 2017 Interest Current Non-current Assets Current Non-current Liabilities Equity Net Net income Associates Metropolitana Serviços Ambientais Ltda. 50.00 % 5,100 10,764 1,078 373 14,413 — (1,786 ) |
Disclosure of Changes in Investments | Changes in investments at December 31, 2018 are as follows: Balances at Capital Share of Business Transfer of Other Balances at Associates Metropolitana Serviços Ambientais Ltda. 7,206 3,685 (3,339 ) — — 111 7,663 Total 7,206 3,685 (3,339 ) — — 111 7,663 Changes in investments at December 31, 2017 are as follows: Balances at Capital Share of Business Transfer of Other Balances at Associates Logística Ambiental de São Paulo – Loga 16,697 — — — (18,073 ) 1,376 — Unidade de Tratamento de Resíduos – UTR S.A. 6,643 — (303 ) — (6,340 ) — CGR – Catanduva Centro Ger. Resíduos 4,396 — 176 (4,572 ) — — — Terrestre Ambiental Ltda. 7,995 — — — (8,098 ) 103 — ATTEND Ambiental Ltda. 2,158 — — — (2,842 ) 684 — Metropolitana Serviços Ambientais Ltda. 6,578 1,026 (893 ) — — 495 7,206 Total investments 44,467 1,026 (1,020 ) (4,572 ) (29,013 ) (3,682 ) 7,206 Goodwill on investment acquisition 70,185 — — — (71,117 ) 932 — Total 114,652 1,026 (1,020 ) (4,572 ) (100,130 ) (2,750 ) 7,206 (a) On May 31, 2017, the Company became the controlling shareholder (refer to Note 9). |
Discontinued Operations | Discontinued operations are comprised by: 2018 2017 a) Income Statements CGR Doña Juana (1.3.1) 27,169 687 Estre Energia Renovável (1.3.4) 1,6 65 3,245 Guatapará Energia S.A (1.3.4) 1, 620 3,064 Companies sold to Latte Participações — 7,346 Total 30,454 14,342 b) Assets Leccaros (10.2.2) — 6,580 Estre Energia Renovável (1.3.4) 56 , 452 — Guatapará Energia S.A (1.3.4) 2 5 , 005 — Total 8 1 , 457 6,580 b) Liabilities CGR Doña Juana (10.2.1) — 23,787 Estre Energia Renovável (1.3.4) 36 , 384 — Guatapará Energia S.A (1.3.4) 4,8 17 — Total 4 1 , 201 23,787 |
CGR Dona Juana S.A. ESP [member] | |
Statement [LineItems] | |
Summary of Profit and Loss on Investment | For the years ended December 31, 2018, 2017 and 2016, Doña Juana’s profit or loss for the year was as follows: 2018 2017 2016 Revenue from services rendered 54,782 69,384 52,000 Cost of services (45,027 ) (56,384 ) (38,807 ) Gross profit 9,755 13,000 13,193 General and administrative expenses (6,723 ) (5,904 ) (4,856 ) Other operating expenses, net (15,934 ) (1,707 ) (1,253 ) Finance costs, net (3,663 ) (4,083 ) (6,076 ) Current and deferred income and social contribution taxes (474 ) 41 (927 ) Profit (loss) for the year (17,039 ) 1,347 81 |
Summary of Assets and Liabilities Held for Sale | Main classes of assets and liabilities of CGR Doña Juana classified as held for sale at December 31, 2017 are as follows: 2017 Assets Current assets Cash and cash equivalents 3,092 Trade accounts receivable 7,581 Taxes recoverable 436 Advances to suppliers 4,305 Other current assets 2,818 Total current assets 18,232 Non-current assets Property, plant and equipment 8,862 Intangible assets 6,821 Other current assets 49 Total non-current assets 15,732 Total assets 33,964 2017 Liabilities Current liabilities Loans and financing 29,714 Trade accounts payable 21,481 Labor payable 863 Tax liabilities 6,010 Other current liabilities 10,367 Total current liabilities 68,435 Non-current liabilities — Capital 6,858 Accumulated losses (41,329 ) Total equity (34,471 ) Total liabilities and equity 33,964 |
Summary of Net Cash Flows in Investment | Net cash flows incurred by CGR Doña Juana are as follows: 2018 2017 2016 Operating activities 22,274 27,404 26,477 Investing activities (15,911 ) (17,675 ) (14,216 ) Financing activities (3,562 ) (8,053 ) (13,115 ) Net cash generated/(used) 2,801 1,676 (854 ) |
Guatapara Energia SA [member] | |
Statement [LineItems] | |
Summary of Profit and Loss on Investment | For the years ended December 31, 2018, 2017 and 2016, subsidiaries related to energy business unit profit or loss for the year was as follows: Guatapará Energia S.A. 2018 2017 2016 Revenue from services rendered 8,659 9,115 8,251 Cost of services (6,916 ) (5,614 ) (4,725 ) Gross profit 1,743 3,501 3,526 General and administrative expenses (164 ) (299 ) (180 ) Other operating income (expenses), net 811 1,252 2,482 Finance income (costs), net (24 ) (799 ) (1,007 ) Current and deferred income and social contribution taxes (746 ) (410 ) (331 ) Profit for the year from discontinued operation 1, 620 3,245 4,490 |
Summary of Assets and Liabilities Held for Sale | Main classes of assets and liabilities of of subsidiaries related to energy business unit classified as held for sale at December 31, 2018 and 2017 are as follows: Guatapará Energia S.A. 2018 2017 Assets Current assets Cash and cash equivalents 560 763 Trade accounts receivable 1,536 1,305 Intercompany trade receivable from Grupo Estre ( ) 1,427 — Other current assets 8 23 746 Total current assets 4 , 346 2,814 Non-current assets Property, plant and equipment 2 1,938 23,048 Other current assets 148 — Total non-current assets 22 ,086 23,048 Total assets 26 ,432 25,862 2018 2017 Liabilities Current liabilities Trade accounts payable 1,785 2,167 Tax liabilities 360 178 Other current liabilities 2,672 3,072 Total current liabilities 4,817 5,417 Non-current liabilities — — Capital 10,682 10,682 Reserves 1 0 , 933 9,763 Total equity 21, 615 20,445 Total liabilities and equity 26,4 32 25,862 (*) The balances of related parties to Estre group companies are eliminated in the Consolidated. |
Summary of Net Cash Flows in Investment | Net cash flows incurred by subsidiaries related to energy business unit are as follows: Guatapará Energia S.A. 2018 2017 2016 Operating activities 3 , 097 5,162 (4,400 ) Investing activities (3 , 300 ) (4,399 ) 2,519 Financing activities — — 2,500 Net cash generated/(used) (203 ) 763 619 |
Estre Energia Renovavel Part. S.A. [member] | |
Statement [LineItems] | |
Summary of Profit and Loss on Investment | Estre Energia Renovável Part. S.A. 2018 2017 2016 Revenue from services rendered 18,310 10,383 4,750 Cost of services (8,975 ) (5,891 ) (3,862 ) Gross profit 9,335 4,492 888 General and administrative expenses (1,933 ) (1,284 ) (703 ) Other Operating income (expenses), net (788 ) 18 133 Finance income (costs), net (4,365 ) 149 (793 ) Current and deferred income and social contribution taxes (584 ) (311 ) (768 ) Profit (loss) for the year from discontinued operation 1,665 3,064 (1,243 ) |
Summary of Assets and Liabilities Held for Sale | Estre Energia Renovável Part. S.A. 2018 2017 Assets Current assets Cash and cash equivalents 1,095 2,721 Trade accounts receivable 1,323 2,180 Intercompany trade accounts receivable Group Estre (*) 850 — Other current assets 325 160 Total current assets 3 , 593 5,061 Non-current assets Property, plant and equipment 53 , 693 57,605 Other current assets 16 16 Total non-current assets 53 , 709 57,621 Total assets 57 , 302 62,682 2018 2017 Liabilities Current liabilities Trade accounts payable 14 , 190 16,413 Labor payable 152 87 Tax liabilities 2 , 416 1,731 Loans from related parties with Group Estre (*) 6,407 20,500 Other current liabilities 16 , 889 7,671 Total current liabilities 40 , 054 46,402 Non-current liabilities Tax liabilities 2,737 2,670 Non-current liabilities 2 , 737 2,670 Capital 12 , 000 12,000 Reserves 2 , 511 1,610 Total equity 14 , 511 13,610 Total liabilities and equity 57 , 302 62,682 (*) The balances of related parties to Estre group companies are eliminated in the Consolidated. |
Summary of Net Cash Flows in Investment | Estre Energia Renovável Part. S.A. 2018 2017 2016 Operating activities (433 ) 25,076 (4,971 ) Investing activities (1 ,193 ) (22,496 ) (16,576 ) Financing activities — — 21,499 Net cash generated/(used) (1 , 626 ) 2,580 (48 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Property Plant and Equipment | Net Description Weighted Costs Accumulated 2018 2017 Landfills – land and implementation of cells (a) 8.35% 562,063 (328,504 ) 233,559 282,655 Buildings and facilities 5.28% 168,538 (64,748 ) 103,790 123,514 Biogas burning facilities 5.00% 9,337 (2,996 ) 6,341 6,682 Operating equipment 9.04% 136,144 ( ) 53,139 117,171 Furniture and fixtures 10.20% 8,693 ( ) 3,108 3,629 Computers and peripherals 16.95% 11,569 ( ) 2,331 2,647 Vehicles 16.72% 293,853 (250,565 ) 43,288 69,718 Aircraft — — — — 9,191 UVR – Waste recovery unit 7.52% 55,359 (24,941 ) 30,418 38,033 Other property, plant and equipment 14.93% 468 (419 ) 49 89 Advances to suppliers — 1,222 — 1,222 4,743 Construction in progress (b) — 34,820 — 34,820 31,379 Total 1, 282 , 066 ( 770 , 001 ) 512 , 065 689,451 (a) Land intended for landfills and respective buildings are subject to depletion and depreciation calculated based on the usage volume of the landfill. In 2018, depletion and depreciation weighted average rates were 8.35% p.a. (8.00% p.a. for 2017) Landfills include decommissioning cost as explained in Note 19. (b) Construction in progress refers basically to the acquisition of the Waste Sorting Machine (Tyrannosaurus) of R$17,789 in 2018 and Building shed of the Waste Sorting Machine (Tyrannosaurus) for R$4,855 in 2018. |
Changes in Property, Plant and Equipment | Changes in property, plant and equipment for the years 2018 and 2017 were as follows: December 31, Additions Sale and Write-offs (b) Impairment Transfer Sale of December 31, Costs Landfills (land and implementation of cells) 599,985 7 6 , 008 ( 23 , 836 ) ( 78 , 020 ) 3,871 (15,945 ) 562,063 Buildings 186,661 6,216 (7,99 2 ) (8,159 ) (2,112 ) (6,076 ) 168,538 Biogas burning facilities 9,212 — — (7 ) 132 — 9, 337 Operating equipment 221,726 11,235 (3 0 , 154 ) (19,018 ) 15,668 (63,313 ) 136,144 Furniture and fixtures 9,438 548 (142 ) (1,308 ) 187 (30 ) 8 , 693 Computers and peripherals 11,367 772 (60 ) (669 ) 169 (10 ) 11 , 569 Vehicles 309,513 21,917 (11,8 92 ) (5,504 ) (19,326 ) (855 ) 293,853 Aircraft 16,791 — (16,791 ) — — — — UVR – Waste recovery unit 60,963 90 (5,741 ) — 47 — 55,359 Other property, plant and equipment 485 5 — (23 ) 1 — 468 Advances to suppliers 4,743 1,109 (692 ) — (3,938 ) — 1,222 Construction in progress 31,379 22,227 ( 323 ) (1,142 ) 5,301 (22,622 ) 34,820 Total costs 1,462,263 14 0 , 127 ( 97 , 623 ) ( 113 , 850 ) — (108,851 ) 1, 282 , 066 Depreciation Landfills (land and implementation of cells) (317,330 ) ( 49 , 555 ) 549 31,231 (390 ) 6, 991 (3 28 , 504 ) Buildings (63,147 ) (8,570 ) 3 , 728 2,494 — 747 ( 64 , 748 ) Biogas burning facilities (2,530 ) (469 ) — 3 — — (2,99 6 ) Operating equipment (104,555 ) (16,667 ) 17 , 591 10,739 — 9,887 ( 83 , 005 ) Furniture and fixtures (5,809 ) (790 ) 31 975 — 8 ( 5 , 585 ) Computers and peripherals (8,720 ) (1,202 ) 43 632 — 9 ( 9 , 238 ) Vehicles (239,795 ) (26,167 ) 8 , 952 5,378 390 677 (2 50 , 565 ) Aircraft (7,600 ) (528 ) 8,128 — — — — UVR – Waste recovery unit (22,930 ) (4,611 ) 2 , 600 — — — (24 ,941 ) Other property, plant and equipment (396 ) (46 ) — 23 — — ( 419 ) Total depreciation (772,812 ) (1 08 , 605 ) 4 1 , 622 51,475 — 18,319 ( 770 , 001 ) Total property, plant and equipment, net 689,451 3 1 , 522 ( 56 , 001 ) ( 62 , 375 ) — (90, 532 ) 512 , 065 (a) Refers to the sale of CGR Catanduva and reclassification of Energy business to assets held for sale. (b) Refers to write-off of assets according to the Company’s inventory procedure carried out in December 2018. December 31, 2016 Additions Write-offs Impairment Transfer Additions (a) December 31, 2017 Costs Landfills (land and implementation of cells) 592,092 83,843 (52,170) (33,110) (6,580) (b) 15,910 599,985 Buildings 180,179 7,247 (323) (1,107) — 665 186,661 Biogas burning facilities 9,255 — — (43) — — 9,212 Operating equipment 191,545 13,787 (557) (1,742) 17,627 1,066 221,726 Furniture and fixtures 8,878 477 (10) (87) — 180 9,438 Computers and peripherals 10,579 815 (4) (131) — 108 11,367 Vehicles 300,422 12,965 (3,751) (493) — 370 309,513 Aircraft 16,791 — — — — — 16,791 UVR – Waste recovery unit 60,700 263 — — — — 60,963 Other property, plant and equipment 456 29 — — — — 485 Advances to suppliers 5,177 1,896 (2,293) (37) — — 4,743 Construction in progress 13,439 35,567 — — (17,627) — 31,379 Total costs 1,389,513 156,889 (59,108) (36,750) (6,580) 18,299 1,462,263 Depreciation Landfills (land and implementation of cells) (308,520) (48,026) 39,966 1,228 — (1,978) (317,330) Buildings (52,871) (10,441) 16 150 — (1) (63,147) Biogas burning facilities (2,070) (468) — 8 — — (2,530) Operating equipment (82,648) (23,033) 462 667 — (3) (104,555) Furniture and fixtures (4,961) (898) 5 49 — (4) (5,809) Computers and peripherals (7,466) (1,367) 2 120 — (9) (8,720) Vehicles (211,527) (31,631) 3,267 96 — — (239,795) Aircraft (6,335) (1,265) — — — — (7,600) UVR – Waste recovery unit (18,325) (4,605) — — — — (22,930) Other property, plant and equipment (337) (59) — — — — (396) Total depreciation (695,060) (121,793) 43,718 2,318 — (1,995) (772,812) Total property, plant and equipment, net 694,453 35,096 (15,390) (34,432) (6,580) 16,304 689,451 (a) Refers to PP&E of CGR Catanduva, which the Company started consolidating starting on May 31, 2017 (refer to Note 1.3 and 9). (b) Refers to the transfer of Leccaro’s assets previously consolidated to assets held for sale (refer to Note 10.2.2). |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Breakdown of Intangible Assets | At December 31, 2018 and 2017, the breakdown of intangible assets is as follows: Net Description Useful Cost Accumulated impairment 2018 2017 Software 60 51, 263 (2 7 , 944 ) 23, 319 28,232 Other intangible assets 24 , 106 ( 8 , 022 ) 16 , 084 38,050 Customer relationship (a ) 36,667 (35,930 ) 737 30,808 Licenses (a ) 1,375 (469 ) 906 24,705 Goodwill on acquisitions — 17,945 — 17,945 466,443 Total 131 , 356 ( 72 , 365 ) 58 , 991 588,238 (a) The Company determined internally the fair value of identifiable intangible assets, consisting mainly of customer relationships and licenses, which are subject to amortization based on the contractual conditions set forth in each case. |
Changes in Intangible Assets | Changes in intangible assets for 2018 and 2017 are as follows: December 31, Additions Write-offs Transfer Impairment December 31, Costs Software 48,857 3,015 — (609 ) 51,263 Other intangible assets 44,688 — ( 13 , 967 ) (6,615 ) — 24,106 Customer relationship 132,886 — (2,196 ) — (94,023 ) 36,667 Licenses 24,705 — (11,203 ) — (12,127 ) 1,375 Goodwill on acquisitions 466,443 — — 6,615 (4 55 , 113 ) 17,945 717,579 3,015 ( 27 , 366 ) — (5 61 , 872 ) 131,356 Amortization ( - ) Software (20,625 ) (7,878 ) — — 559 (27,944 ) ( - ) Other intangible assets (6,638 ) (8,022 ) 6,638 — — (8,022 ) ( - ) Customer relationship (102,078 ) (4,472 ) 643 391 69,586 (35,930 ) ( - ) Licenses — (6,491 ) — (391 ) 6,413 (469 ) Total amortization (129,341 ) (26,863 ) 7,281 — 76,558 (72,365 ) Total intangible assets, net 588,238 (23,848 ) ( 20 , 085 ) — (4 85 , 314 ) 58,991 December 31, Additions Write-Offs Impairment December 31, Costs Software 22,893 26,879 (915 ) — 48,857 Other intangible assets 20,621 24,067 — — 44,688 Customer relationship 130,690 2,196 — — 132,886 Licenses 24,705 — — — 24,705 Goodwill on acquisitions 469,196 — — (2,753 ) 466,443 668,105 53,142 (915 ) (2,753 ) 717,579 Amortization ( - ) Software (13,099 ) (7,710 ) 184 — (20,625 ) ( - ) Other intangible assets (6,638 ) — — — (6,638 ) ( - ) Customer relationship (94,536 ) (7,542 ) — — (102,078 ) Total amortization (114,273 ) (15,252 ) 184 — (129,341 ) Total intangible assets, net 553,832 37,890 (731 ) (2,753 ) 588,238 |
Goodwill Allocation to CGU | For impairment testing purposes, goodwill arising from business combinations and intangible with indefinite useful live were allocated to the CGU, as of December 31, 2018 and 2017, as follows: December 31, 2018 CGU Projection period Discount Perpetuity Assets Goodwill Carrying Value in Goodwill Assets Goodwill Geovision (Group) 01/01/19 to 12/31/23 15.66% 4.68% 144,261 242,489 386,750 144,261 (242,489 ) — — Resicontrol 01/01/19 to 12/31/23 15.66% 4.68% 94,210 87,639 181,849 112,155 (69,694 ) — 17,945 Viva (Group) 01/01/19 to 11/30/38 15.66% — 226,618 136,315 362,933 115,377 (166,516 ) (51,419 ) — CTR Itaboraí 01/01/19 to 12/31/23 15.66% 4.68% 26,267 — 26,267 (4,215 ) — (9,626 ) — Ambiental Sul 01/01/19 to 12/31/23 15.66% 4.68% 7,053 6,615 13,668 5,723 (6,615 ) (1,330 ) — TOTAL 498,409 4 73,058 971,467 373,301 ( 485,314 ) ( 62,375 ) 17,945 December 31, 2017 CGU Projection period Discount Perpetuity Assets of Goodwill Carrying Value in Goodwill Assets Goodwill Geovision (Group) 01/01/18 to 12/31/22 15.20% 7.00% 180,728 242,803 423,531 477,855 (314 ) (90 ) 242,489 Resicontrol 01/01/18 to 12/31/22 15.20% 7.00% 53,992 87,639 141,631 267,109 — — 87,639 Viva (Group) 01/01/18 to 12/31/22 15.20% 7.00% 235,557 136,315 371,872 484,793 — — 136,315 CTR Itaboraí 01/01/18 to 12/31/22 15.20% 7.00% 41,420 2,439 43,859 (11,956 ) (2,439 ) (34,342 ) — TOTAL 511,697 469,196 980,893 1,217,801 (2,753 ) (34,432 ) 466,443 |
Loans and financing (Tables)
Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Breakdown of Loans and Financing | Breakdown of loans and financing is as follows: Additional Annual charges 2018 2017 Working capital Working capital (a) CDI + 2.0% p.a. 581,901 357,789 Working capital CDI + 0.05% p.m. 2,850 2,541 Working capital (b) CDI + 8.7% p.a. 5,027 — BNDES FINAME (c) TJLP + 3.9% to 5.5% p.a. — 1,496 FINAME (c) TJLP + 10.3% to 12.9% p.a. — 31 FINAME (c) TJLP + 1.0% to 12.9% p.a. — 197 FINAME (c) TJLP + 2.5% to 4.6% p.a. 4 2,643 FINAME (c) TJLP + 5.1% to 9.0% p.a. 302 1,915 Lease Lease (d) 1.92% p.m to 13.60% p.m. 38,213 18,902 Total loans and financing 628,297 385,514 Current 601,475 14,139 Non-current 26,822 371,375 (a) On June 13, 2017, Estre and BTG Pactual executed a private debt acknowledgment instrument (Instrumento Particular de Confissão de Dívida) that progressively repealed and replaced the indenture governing the first issuance of debentures, and had substantially the same terms and conditions as those debentures. As part of Estre’s debt restructuring held in 2017, the Company partially repaid the outstanding balance of these debentures and related debt acknowledgment instrument. For additional information, see Note 14. (b) Loans raised for capital expenditure, new business acquisitions and other projects. Guarantees provided consist of receivables, promissory notes and shareholders’ collateral signatures. (c) Financing for investment in infrastructure and implementation of new waste treatment units and fleet renewal. The related assets are pledged as collateral in addition to the Company’s and shareholders’ collateral signatures. (d) Finance lease, guaranteed by the leased item. |
Repayment of Loans and Financing | The loans and financing (non-current) repayment schedule at December 31, 2018 and 2017 was as follows: Period 2018 2017 Through December 2019 — 1,709 Through December 2020 12,130 24,088 Through December 2021 8,314 40,005 Through December 2022 4,940 305,573 Through December 2023 1,438 — Total 26,822 371,375 |
Future Minimum Lease Payments and Present Book Value | Future minimum lease payments, under finance lease agreements together with the present value of net minimum lease payments are as follows: 2018 2017 Minimum Present Minimum Present Within one year 23,363 19,041 12,637 12,146 After one year, but before five years 41,544 36,306 37,406 37,019 Total minimum lease payments 64,907 55,347 50,043 49,165 Less amounts representing financial charges (26,694 ) — (31,141 ) — Present value of minimum lease payments 38,213 55,347 18,902 49,165 |
Debentures (Tables)
Debentures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Debentures | Description Additional Annual charges 2018 2017 1 st (a) CDI + Interest from 2.0% 261,199 419,236 2 nd (b) CDI + Interest from 2.0% 705,187 649,743 Total 966,386 1,068,979 Current 966,386 — Non-current — 1,068,979 |
Schedule of Aggregation of Debentures | The breakdown of the debentures is as follows: 1st issue 2nd issue Transaction costs Total Balances at 2016 906,729 761,307 (2,407 ) 1,665,629 Interest 117,879 97,037 — 214,916 Debt acknowledgement instrument (356,514 ) — — (356,514 ) Transaction costs — — 2,407 2,407 Repayment (199,086 ) (166,881 ) — (365,967 ) Discount (49,772 ) (41,720 ) — (91,492 ) Balances at 2017 419,236 649,743 — 1,068,979 Interest 25,815 55,444 — 81,259 Debt acknowledgement instrument (183,852 ) — — (183,852 ) Balances at 2018 261,199 705,187 — 966,386 |
Trade accounts payable (Tables)
Trade accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Trade Accounts Payable | Description 2018 2017 Invoices payable 126,003 116,218 Services to be billed 46,833 9,808 Related parties 503 2,087 Total 173,339 128,113 |
Summary of Aging of Trade Accounts Payable | The aging of trade accounts payable is as follows: Description 2018 2017 Falling due 87,465 51,288 Overdue up to 30 days 2 8 , 393 41,291 Overdue from 30 to 60 days 1 5 ,1 37 6,987 Overdue from 31 to 90 days 7,650 6,749 Overdue from 91 to 180 days 7, 703 10,366 Overdue from 181 to 360 days 4,1 33 4,487 Overdue for more than 360 days 2 2 , 858 6,945 Total 1 73 , 339 128,113 |
Labor payable (Tables)
Labor payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Labor Payable | Description 2018 2017 Salaries 11,345 14,227 Bonus and profit sharing payable 1,565 22,459 Social charges FGTS 2,544 3,258 INSS – Social security 32,192 17,327 IRRF 1,914 2,879 Sundry taxes 6,398 7,622 Accrual for vacation pay and related charges 42,561 50,153 Total 98,519 117,925 |
Tax liabilities (Tables)
Tax liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Description of Tax Liabilities | Description 2018 2017 PIS payable (a) 17,304 16,585 COFINS payable (a) 79,733 76,323 Service tax payable (b) 11,792 13,708 Withholding service tax payable 403 361 IRPJ payable (c) 1 2 ,3 63 12,200 CSLL payable (c) 4, 888 2,728 PIS/COFINS/CSLL payable (d) 208 457 Installment payment of federal taxes (e) 33,082 16,544 Installment payment of taxes – PRT(f) 273,682 123,467 Installment payment of taxes – PERT(g) 8,543 243,849 Installment payment of local taxes (h) 15,720 21,537 Installment payment of taxes - Law No. 12,996/14 Refis Copa (i) 11,415 12,597 Withholding INSS (j) 147 203 Withholding IRPJ (k) 353 569 Other taxes 44,3 30 24,161 Total 51 3 , 963 565,289 Current 15 1 , 686 169,505 Non-current 362,277 395,784 (a) PIS and COFINS are taxes levied by the Brazilian federal government on gross revenues. The standard rates are 7.60% for PIS and 1.65% for COFINS applicable to entities declaring income tax and social contribution on the ‘actual profits’ basis. These amounts are invoiced to and collected from our customers and recognized as deductions to gross revenue (Note 23) against Tax liabilities, as we are acting as agents collecting these taxes on behalf of the government. PIS and COFINS taxes paid on certain purchases may be claimed back as tax credits to offset PIS and COFINS payable. These amounts are recognized as Taxes recoverable (Note 6) and on a monthly basis are offset against PIS and COFINS Tax payable, and presented net as the amounts are due to the same tax authority. Brazilian tax legislation allows smaller entities with less than R$78 million in annual gross revenues to opt to declare income taxes on the ‘presumed profits’ basis. These are subject to lower COFINS and PIS rates of 3.00% and 0.65%, respectively. However, PIS and COFINS taxes on purchases may not be claimed back and will not generate tax credits under the presumed profits basis. (b) ISS is a tax levied by municipalities on revenues from the provision of services. ISS tax is added to amounts invoiced to our customers for the services we render. These are recognized as deductions to gross revenue (Note 23—Taxes levied—ISSQN) against Tax liabilities, as we are acting as agents collecting these taxes on behalf of municipal governments. The rates may vary from 2.00% to 5.00%, however most of the municipalities in which we operate levy ISS at the higher rate. Each municipality sets slightly different rules regarding the use of credits and withholding of ISS tax on payments to suppliers. (c) IRPJ and CSLL are corporate income taxes levied by the Brazilian federal government. The IRPJ rate is 25% and the CSLL rate is 9%, resulting in a combined federal corporate income tax rate of 34% on taxable profits. The expense for current income tax is recognized in the statement of profit or loss under ‘Current income and social contribution taxes’ against tax payable. However, for some entities in the group, advances for the payment of income tax are paid on a quarterly basis during the tax year and are recognized as an asset under Taxes recoverable (Note 6—‘Corporate income tax (IRPJ)’ and ‘Social contribution tax on net profit (CSLL)’). Income tax is levied on legal entities individually, with no right of offset between entities in a group. Smaller entities opting to declare income taxes on the ‘presumed profits’ basis are taxed at the same rates on a ‘presumed profit’ of 32% of gross revenues. (d) Purchases of certain materials or services require us to retain and pay taxes on behalf of our suppliers. The rate of 4.65% in relation to PIS, COFINS and CSLL tax on applicable purchases is withheld from payments made to suppliers and recognized as a tax liability, with no impact to the statement of profit or loss. (e) Refers to installment payment of IRPJ, CSLL, PIS and COFINS, which payment is deferred in 30 to 60 installments, adjusted by the SELIC rate. The accrual of interest on this liability is recognized as a financial expense under the line item—‘Interest for late payment of taxes’ (Note 28). (f) PRT - payment of 24% in 24 installments, residual not contemplated by use of damages will be paid in 60 months, according to MP n ° 766 of April 4, January 2017. The taxes included in the PRT are as follows: PIS/COFINS, CSLL, IRPJ and IRRF. (g) PERT - installment of unpaid taxes and IOF, modality does not include use of impairment, installment in 120 months, according to MP nº 783 of May 31, 2017. The taxes included in the PERT are as follows: PIS/COFINS and IOF. (h) Refers mainly to ISS payable to the Paulínia City Government in 36 installments, not subject to inflation adjustment or interest. (installments of ISS of the cities of São Paulo, Paulínia, Itapevi and Maceió, plots range from 24 to 120). (i) In August 2014, enactment of Federal Law No. 12,996/2014 (‘‘REFIS da Copa’’) enabled the inclusion of new tax contingencies in REFIS (tax installment payment program). The Company initially included the overdue taxes in REFIS da Copa in order to benefit from interest and fine amnesty. With the launch of PERT in 2017, the Company decided to include most part of taxes in this new program, instead of REFIS da Copa. (j) INSS is a social security charge levied on wages paid to employees. On certain purchases of services we are required to withhold 11% of the amounts billed by our suppliers and pay INSS tax on their behalf, with no impact to the statement of profit or loss. (k) On certain purchases of services we are required to withhold 1.5% of the amounts billed by our suppliers and pay IRPJ (Income tax) on their behalf, with no impact to the statement of profit or loss. |
Summary of Tax Regulation Program | The 2017 Program allowed for the use of unused tax loss carry forward to settle the tax liability under the program. As a result, the Company recognized a deferred tax asset related to the tax loss carry forwards that was used to settle the tax liability under the program and which the Company did no previously recognized. In addition, the Company recognized a tax liability as follows: As of May 31, 2017 Federal taxes past due recorded in prior years 160,605 Legal claims in progress recorded in 2017 174,028 Tax installments in progress already recorded in prior years 195,094 Total tax liability to be settled under the program 529,727 Tax loss carryforward used to settle the tax liability under the program (Note 22) (370,116 ) Total tax liability balance to be settled in installment payments 159,611 The tax liability balance as of December 31, 2018 and 2017 was as follows: Balance as of May 31,2017 159,611 Payments (42,310 ) Accrued interest 6,166 Balance as of December 31, 2017 123,467 IOF Inclusion - Sep / 17 - transferred from PERT 70,995 Addition of processes in the PRT 2,417 Additional tax liabilities included in the PRT 40,288 Tax loss carry forward not used to settle the tax liability under the program 87,826 Payments (68,984 ) Accrued interest 28,338 Transfer to PERT – CSLL (10,433 ) Reversal of interest and fine (232 ) Balance as of December 31, 2018 273,682 Current 46,455 Non-current 227,227 The expected timing of non-current outflows at December 31, 2018 are as follows: Year of maturity 2018 2020 46,455 2021 46,455 2022 46,455 2023 and following years 87,912 Total 227,227 |
Smmmary of Special Tax Regularization Program | The same is composed as below: Federal tax payable as of July 31, 2017 134,947 Tax provision balance in prior periods included Aug, 2017 6,727 IOF Inclusion 103,907 Use of unused tax loss carry forwards Aug, 2017 (Note 22) (4,452 ) Payments – prepayments (5,721 ) Interest 8,441 Balance as of December 31, 2017 243,849 IOF Inclusion - Sep / 17 - transfer to PRT (70.995 ) Interest reversal - PERT (1,803 ) Interest 2,460 Transfer from PRT – CSLL 10,433 Income and social contribution tax variation at PERT consolidation (Note 22) 3,860 Reversal of taxes not available for consolidation (47,999 ) Reversal of taxes not due (5,951 ) Penalties, fines and interests reversal (17,409 ) Payments (18,011 ) Tax losses used to compensate tax payable (80,083 ) Tax credits used (9,808 ) Balance as of December 31, 2018 8,543 Current 603 Non-current 7,940 The expected timing of non-current outflows at December 31, 2018 are as follows: Year of maturity 2018 2020 603 2021 603 2022 603 2023 and following years 6,131 Total 7,940 |
Summary of Eligible Tax Debt Balances | Eligible tax debt balances below refer to REFIS Copa are: 2018 2017 Principal 62,965 62,965 Fine and SELIC interest 79,085 79,085 Reduction due to amnesty of interest, fines and legal charges (44,055 ) (44,055 ) Repayments by prepayments (30,428 ) (30,428 ) Payment in installments (29,825 ) (28,623 ) SELIC restatement 1,513 1,494 Use of unused tax loss carry forwards (27,840 ) (29,213 ) Reversion of unused tax loss carry forwards from REFIS to PRT (Note 22) — 1,372 Balance payable 11,415 12,597 At December 31, 2018, the Company was compliant with all conditions to be part of the tax payment installments program, and the use of unused tax loss carryforwards of REFIS “Copa” totaled R$5,605. Installments mature as follows: Year of maturity 2018 2017 2018 — 1,675 2019 1,694 1,675 2020 1,694 1,675 2021 1,694 1,675 2022 1,694 1,675 2023 onwards 4,639 4,222 Total 11,415 12,597 |
Accounts payable for land and_2
Accounts payable for land and intangible asset acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Accounts Payable for Land and Intangible Asset Acquisition | Description 2018 2017 Land and intangible asset acquisition (a)/(b)/(c) 15,925 25,376 Present value adjustment (d) (5,741 ) (5,999 ) Total 10,184 19,377 Current 5,380 8,965 Non-current 4,804 10,412 (a) On December 27, 2013, Estre acquired a plot of land in Jardim Lídia from Banco Pine, for R$30,000, of which R$1,325 was paid in cash and the remainder will be settled in 60 fixed installments, beginning June 30, 2014. The outstanding balance at December 31, 2018 was R$3,292 (R$8,682 at December 31, 2017). (b) On May 2016, the Company started the implementation of SAP operating systems and Oracle pricing platforms. The systems were acquired from T-Systems (c) In June 2006, Estre entered into negotiation with Masa - Comércio e Serviços de Terraplanagem Ltda., to acquire land in the city of Itapevi, initially for R$4,400 in legal discussion; after renegotiation in 2014 and through Private Debt Acknowledgment and Novation Agreement and other Covenants of May 14, 2015, the selling price was restated by IGP-M (d) At December 31, 2018, the discount rate used was 15.66% (15.26% at December 31, 2017). |
Provision for landfill closure
Provision for landfill closure (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Provision for Landfill Closure | The balances by landfill are as follows: Description 2018 2017 Paulínia 42 , 379 58,688 Paulínia II 5 , 008 3,656 Curitiba 2 5 , 690 19,053 Itapevi 8 , 917 11,663 Aracaju 509 356 CGR Guatapará 6 , 858 6,106 CGR Guatapará – Jardinópolis 1, 754 2,764 CGR Guatapará – Piratininga 647 368 Resicontrol – Tremembé 2 , 184 3,506 Maceió 7 , 220 4,919 Feira de Santana 1 , 238 2,446 Sarandi — 3 CGR Catanduva — 4 Total 10 2, 404 113,532 Current 5,613 20,651 Non-current 96 , 791 92,881 |
Summary of changes in provisions of Landfill Closure | Changes in provisions are as follows: 2018 2017 2016 Balance at beginning of the year 113,532 101,620 83,071 Additions 9,109 31,318 10,094 Effect of passage of time 8,653 (4,555 ) 8,455 Reversal (18,939 ) (4,685 ) — Amount used (9,95 1 ) (10,166 ) — Balance at end of the year 10 2, 404 113,532 101,620 The expected timing of outflows are as follows: Period 2018 2017 Up to 1 year 5,613 20,651 2 to 5 years 2 6 , 371 31,911 After 5 years 70,420 60,970 Total 10 2, 4 0 4 113,532 |
Provision for legal proceedin_2
Provision for legal proceedings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Contingent Liabilities and Changes in Provisions for Contingencies | In the ordinary course of business, the Company is exposed to certain contingencies and risks. The provision for contingencies includes labor, tax and civil proceedings under dispute at the administrative and legal levels, based on management’s analysis and the opinion of the Company’s legal counsel, for cases in which the likelihood of loss is considered probable, as follows: Nature 2018 2017 Labor proceedings (a) 31 , 366 22,795 Tax proceedings (b) 34 , 041 122,744 Civil proceedings 4,867 2,223 Total 7 0, 274 147,762 (a) Primarily consists of law suits filed by former employees claiming severance payment, overtime, additional payment for transfers, among others, for individually significant amounts. (b) In 2017, the Company recorded a provision for tax contingency regarding levy of taxes, substantially concerning Tax on Financial Transactions (“IOF”) and INSS. The amount was included in the tax amnesty program described in the Note 17. The remaining balance refers to other tax assessments. The Company has the following contingent liabilities referring to proceedings classified by legal counsels as possible losses, for which no provision has been recorded: Nature 2018 2017 Labor proceedings (a) 26,301 17,888 Tax proceedings (b) 345,980 212,856 Civil proceedings (c) 89,674 82,076 Total 461,955 312,820 (a) Refers mainly to labor lawsuits arising from employees and third party claims, joint liability, hazard pay and health hazard allowance. (b) On December 15, 2017, the Company’s subsidiary, Cavo Serviços e Saneamento S.A. (“Cavo”) received an official tax infringement notice in the amount of R$90,634 (historical amount) challenging the deductibility of payments made to a number of specified suppliers in 2012, for which there is lack of sufficient evidence that good and services were actually provided. On December 22 and 27, 2017, Estre Ambiental S.A. received two official tax infringement notices in the aggregate amount of R$121,778 (historical amount) challenging the deductibility of payments made to a number of specified suppliers from 2012 to 2015, for which there is lack of sufficient evidence that good and services were actually provided. On December 3, 2018, the Company received a further tax infringement notice from the Brazilian federal tax authorities in the aggregate amount of R$120,948 million concerning transactions with a number of specified suppliers in relation to payments made in 2013. The Company, in connection with their external legal advisors, is challenging such assessments, and already presented its defense. (c) Refers basically to: i) lawsuit filed by the São Paulo State Prosecutor’s Office challenging the lawfulness of five agreements entered into between the city government of Taboão da Serra and the investee Viva Ambiental regarding provision of public cleaning services. In 2014, the Federal Prosecutor’s Office (“MPF”) requested the return of total emergency agreements entered into by and between Viva and Taboão City, which amounted to R$154,123. In 2015, sellers of VIVA filed an injunction for early presentation of proof, and requested legal expert inspection that detected misstatements in amounts requested by the MPF. The outcome of this inspection indicated a possible loss amount of approximately R$39,247 (historical amount); ii) public action lawsuit filed by the Prosecutor’s Office of Itapevi challenging the implantation of our landfill due to supposed inconsistencies with the local regulation such as proximity with water springs and population, and requests the stoppage and reversal of all deforestation activity, as well as payment of a fine. This lawsuit is still in its instruction phase and the involved value is of R$15,050; iii) popular action moved by a certain group of people, also related to Itapevi, in which the population reinforce the arguments of the aforementioned action, described in item “ii” above. The lawsuit is to be decided simultaneously with the one set forth in item “ii”. The involved value is also of R$15,050. Changes in provisions for contingencies are as follows: Labor proceedings Tax Proceedings Civil proceedings Total Balance on December 31, 2016 48,658 195,316 1,565 245,539 Additions 10,129 79,264 8,611 98,004 Reversals (26,820 ) — (6,331 ) (33,151 ) Payments (9,172 ) — (1,622 ) (10,794 ) Tax Amnesty Program — (151,836 ) — (151,836 ) Balance at December 31, 2017 22,795 122,744 2,223 147,762 Additions 32 , 913 18 , 161 11,474 6 2, 548 Reversals (9,789 ) (6 6 , 57 6 ) (2,247 ) (78, 61 2 ) Payments (14,553 ) — (6,583 ) (21,136 ) Tax Amnesty Program — (40,288 ) — (40,288 ) Balance at December 31, 2018 31 , 366 34 , 041 4,867 7 0, 274 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Common Shares Isuued and Outstanding | Estre Ambiental, Inc. Number of Ownership Shareholder Ordinary Shares BTG Pactual G7 Holding S.A (*) 20,062,197 44.0% Avenue Boulevard Co-Investment 10,440,000 22.9% Cygnus Asset Holding Ltd 2,709,756 5.9% Lyra Asset Holding Ltda. 2,505,169 5.5% Other 9,919,610 21.7% 45,636,732 100.0% Class B Shares Former Boulevard SPAC Holders 5,550,000 100.0% (*) Includes shares held by BTG Pactual Principal Investments Fundo de Investimento em Participações Multiestratégia, Banco BTG Pactual S.A., Fundo de Investimento em Participações Turquesa - Multiestratégia Investimento no Exterior, Iron Fundo de Investimento em Participações - Multiestratégia Investimento no Exterior, and Fundo de Investimento Credito Privado LS Investimento no Exterior. |
Summary of Option Price and Significant Assumptions | The options were priced based on the “Black & Scholes” model and the significant assumptions included in the model in 2015 were: Details Plan 1 Plan 2 Plan 3 Start date (first grant) 10/28/2015 10/28/2015 10/28/2015 Number of options - TBO (thousands) 2,486 432 649 Exercise value - R$ 0.9250 0.9250 0.9250 Expected volatility 24.03 % 24.03 % 24.03 % Future risk-free rate - p.a. 14.48 % 14.48 % 14.48 % Estimated maturity term (weighted average in years) 0.6778 1.1287 1.9176 Fair value of option - R$ 11.58 11.63 11.72 |
Summary of Changes in Stock Option Plan | Changes in the stock option plan are detailed below: Options December 31, 2016 571 Expired (70 ) Exercised (357 ) December 31, 2017 144 Exercised (144 ) December 31, 2018 — |
Summary of Compensation Expense be Recognized in Future Service Period | Compensation expense to be recognized for future service period is as follows: Amount Year 2019 15,221 2020 8,175 2021 3,448 Total 26,844 |
Income and social contributio_2
Income and social contribution taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Reconciliation of Income and Social Contribution Taxes Expenses and Accounting Profit or Loss | Tax legislation in Brazil requires that income and social contribution tax returns be filed and paid by each legal entity on a separate basis. 2018 2017 2016 Loss before income and social contribution taxes ( 755,783 ) (315,618 ) (260,141 ) Statutory rate 34% 34% 34% Income and social contribution taxes at the statutory rate 256,966 107,310 88,447 Tax effect on: Share of profit of an associate ( 1,135 ) (347 ) 3,452 Permanent differences - non-deductible expenses (1 66 , 477 ) (35,640 ) (39,546 ) Permanent differences - Tax benefit of unorganized goodwill 24,741 12,168 10,935 Permanent differences - taxable profit computed as a percentage of gross revenue ( 2 8 , 948 ) 15,045 502 Temporary differences - Deferred tax of Revenues from government entities (3,619 ) 14,695 19,942 Temporary differences - non-recognized ( 24,494 ) (11,089 ) (63,730 ) Incentive reserve 10 0 125 1,140 Tax loss for the year not recognized ( 90,569 ) (120,031 ) (125,234 ) Income and social contribution tax variation at PERT consolidation (see Note 17). (3,860 ) — — Use of tax benefit of tax income and social contribution tax losses against PERT, PRT and REFIS “COPA” (see Note 17). (7,743 ) 370,116 — Write-off of income tax and social contribution by impairment assets test 10 3 , 908 — — Reversion of income tax and social contribution from timing differences (29,930 ) — — Recognition deferred income tax and social contribution liabilities 5,338 6,359 — Others 587 (5,170 ) — Total 3 4 , 865 353,541 (104,092 ) Current (41,6 2 3 ) (17,543 ) (54,337 ) Deferred 7 6 , 488 371,084 (49,755 ) Effective income tax rate ( 4.61 % ) (112.02% ) 40.01% |
Deferred Taxes | 2018 2017 Assets Income and social contribution tax effect on: Sundry provisions — 44 Total assets — 44 2018 2017 Liabilities Income and social contribution tax effect on: Appreciation of property, plant and equipment 9,989 15,438 Customer relationship and license 559 10,975 Business combination/goodwill 6,101 91,024 Government entities (a) 35,620 19,591 Total Liabilities 52,269 137,028 (a) The amount relates to deferral of income until its realization. According to current legislation, the portion of income proportional to revenue considered in profit or loss and not received by the statement of financial position date may be excluded from the calculation. |
Changes in Deferred Income Tax | Changes in deferred income tax are as follows: 2017 Additions Write- Tax Offsetting Others Impairment 2018 Impact Deferred income tax assets 44 7,743 (29,974 ) (7,743 ) 29,930 — — — ( 37 , 717 ) Deferred income tax liabilities (137,028 ) — 10,297 — (29,930 ) 484 103,908 (52,269 ) 114,205 Effect on the statement of profit or loss 76,488 2016 Additions Business Write- Tax Offsetting 2017 Impact Deferred income tax assets 41,057 — (11,083 ) 373,196 (29,930 ) 44 362,113 Deferred income tax liabilities (175,556 ) (373 ) 8,971 — 29,930 (137,028 ) 8,971 Effect on the statement of profit or loss 371,084 Impact 2015 Additions 2016 on profit or Deferred income tax assets 25,874 15,183 41,057 15,183 Deferred income tax liabilities (110,618 ) (64,938 ) (175,556 ) (64,938 ) Effect on the statement of profit or loss (49,755 ) (b) As mentioned in Note 17, the Company was benefitted by reduction of part of the interest and fines arising from taxes (included in the PRT and PERT tax amnesty programs). The benefit was calculated based on the tax loss, and therefore a credit was recorded in deferred income tax, in profit or loss, against a reduction in the tax payable balance (included in the REFIS). The application for inclusion in REFIS was filed with the Brazilian IRS, see Note 17. |
Consolidated Income and Social Contribution Tax Loss Carryforwards Not Recognized | The consolidated income and social contribution tax loss carryforwards not recognized are as follows: 2018 2017 Total income and social contribution tax loss carryforwards (a) 884,028 708,639 (a) In accordance with the Brazilian tax legislation, loss carryforwards can be used to offset up to 30% of taxable profit for the year and do not expire. |
Changes in the Consolidated Income and Social Contribution Tax Losses | Changes in the consolidated income and social contribution tax losses are as follows: Description 2018 2017 2016 Balance at the beginning of the year 708,639 1,453,249 1,078,049 Income and social contribution tax losses for the year 235,719 353,330 368,245 Use of PERT base (22,772 ) (1,097,635 ) — Others (37,558 ) (305 ) 6,955 Balance at the end of the year 884,028 708,639 1,453,249 |
Revenue from services rendered
Revenue from services rendered (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Net Operating Revenue | Segments 2018 2017 2016 Collection & Cleaning Services 956 , 082 1,059,690 1,041,739 O&G 15 , 425 31,166 74,436 Landfills 470 , 547 442,802 492,595 Value Recovery 33 , 643 43,214 32,272 (-) Discounts and cancellations (13 , 262 ) (3,374 ) (28,718 ) (-) Taxes levied - PIS (23 , 233 ) (27,114 ) (27,683 ) (-) Taxes levied - COFINS (107 , 020 ) (124,808 ) (127,513 ) (-) Taxes levied - ICMS (308 ) (468 ) (117 ) (-) Taxes levied - ISSQN (71 , 287 ) (75,259 ) (76,980 ) Net revenue from services rendered 1 , 260 , 587 1,345,849 1,380,031 |
Cost of services by nature (Tab
Cost of services by nature (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Cost of Service | Costs of services rendered are as follows: Description 2018 2017 2016 Payroll, charges and benefits (574, 869 ) (544,565 ) (542,730 ) Waste treatment and disposal of leachate (50, 697 ) (36,313 ) (49,008 ) Fuel/lubricant (63,5 30 ) (57,118 ) (60,577 ) Transportation (16,6 50 ) (14,558 ) (12,593 ) Lease of machinery and equipment (25, 669 ) (17,022 ) (46,475 ) Materials to operate landfills (20, 804 ) (16,873 ) (25,935 ) Technical assistance ( 6 ,2 88 ) (11,944 ) (6,416 ) Depreciation/amortization/depletion ( 99 , 835 ) (105,624 ) (129,688 ) Analysis and monitoring (5,7 75 ) (5,303 ) (9,191 ) Lease of real estate, equipment and vehicles (11, 824 ) (12,091 ) (13,452 ) Travel and lodging (13,9 78 ) (19,284 ) (11,205 ) Equipment maintenance (41, 654 ) (38,808 ) (20,725 ) Landfill maintenance (37 7 ) (94 ) (1,130 ) Other (4 7 , 233 ) (62,658 ) (74,623 ) Total costs (97 9 , 183 ) (942,255 ) (1,003,748 ) |
General and administrative ex_2
General and administrative expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of General and Administrative Expenses | General and administrative expenses were as follows: Description 2018 2017 2016 Payroll, charges and benefits (1 20 , 172 ) (104,884 ) (116,502 ) Transportation (492 ) (275 ) (570 ) Advisory services (a) (3 3 , 535 ) (12,224 ) (17,196 ) Depreciation/amortization/depletion ( 35 , 633 ) (26,846 ) (31,326 ) Lease of real estate, equipment and vehicles (3, 942 ) (4,034 ) (4,973 ) Legal advisory services (a) (5 9 , 238 ) (16,896 ) (22,084 ) Travel and lodging (6,4 54 ) (4,211 ) (4,856 ) Equipment maintenance ( 617 ) (806 ) (1,720 ) System maintenance (65 9 ) (1,838 ) (986 ) Provision for legal proceedings ( 32 , 824 ) (57,775 ) 583 Consumer materials (2, 831 ) (4,001 ) (4,688 ) Third-party services (5, 601 ) (5,103 ) (3,907 ) Other (2 5 , 288 ) (17,639 ) (22,825 ) Total general and administrative expenses (3 27 , 286 ) (256,532 ) (231,050 ) (a) In 2018, refers substantially to external legal advisors and other fees in connection with the investigations and fees arising from the fact that Estre become a publicly listed company in USA. |
Selling expenses (Tables)
Selling expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Selling Expense | Description 2018 2017 2016 Advertising and promotion expenses (5,188 ) (4,735 ) (2,348 ) (Addition) reversal of allowance for doubtful accounts, net 10,512 (1,906 ) 12,843 5,324 (6,641 ) 10,495 |
Other operating expenses, net (
Other operating expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Other Operating Income (Expenses) | Description 2018 2017 2016 Impairment-CTR Itaboraí (Note 12) ( 9 , 626 ) (36,781 ) (44,790 ) Impairment-Resicontrol (Note 12) ( 69 , 694 ) — — Impairment-Group Geo Vision (Note 12) (2 42 , 489 ) — — Impairment-Viva (Note 12) ( 217 , 935 ) — — Impairment-Ambiental Sul (Note 12) ( 7 , 945 ) — — Impairment-Água e Solo (Note 12) — (404 ) — Write-off–Others assets (b) (25,473 ) — — Write-off–Others intangible (b) (20,085 ) — — Gain on remeasurement of interest previously held of Catanduva (Note 1.3.3/9) 2,032 724 — Gain from the sale of Leccaros Participações S.A (Note 10.2.2) 18,7 8 4 — — Write-off of the CDR Pedreira call option — — (20,865 ) Gain on sale of property, plant and equipment 17 415 2,123 Donations (3,1 22 ) (3,249 ) (1,883 ) Realization of tax credit relating to prior periods (a) 6 , 712 9,679 13,298 Other operating expenses, net ( 7 , 682 ) (1,509 ) (28,434 ) Total ( 576,506 ) (31,125 ) (80,551 ) (a) Taxes paid in connection with the acquisition of materials and equipment, which Estre has not used to offset against the payment of other taxes in the years in which such receivables were generated, but that as a result of a further analysis of the applicable tax law, Estre subsequently recognized as recoverable taxes against income. (b) Impairment of assets according to the Company identification procedure carried out in December 2018 and inventory effect of internal audit. |
Finance income and expenses, _2
Finance income and expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Finance Income and Expenses, Net | 2018 2017 2016 Finance expenses Interest of loans/debentures (138,9 34 ) (229,763 ) (262,104 ) Discounts granted (9,417 ) (17,345 ) (14,650 ) Interest for late payment to suppliers (3,8 32 ) (7,023 ) (6,134 ) Interest for late payment of taxes ( 52 , 127 ) (213,980 ) (74,727 ) Other finance expenses ( 47 , 383 ) (64,064 ) (39,518 ) Total finance expense (2 51 , 693 ) (532,175 ) (397,133 ) Finance income Interest income 2 0 , 546 6,534 17,320 Interest on investments 1,322 2,260 4,982 Other financial income 12,463 1,147 2,546 Impact of financial component from on revenues (IFRS 15) (c) 11,138 — — Discounts obtained on debentures (Note 14) — 91,492 — Interest of taxes credit (a) 1,671 6,848 26,815 Interest for late payment of taxes reversal (b) 69,173 — — Total finance income 11 6 , 313 108,281 51,663 Total finance expenses, net (1 35 , 380 ) (423,894 ) (345,470 ) (a) Inflation adjustment related to income and social contribution tax and withheld INSS. (b) Includes the reversal of some tax penalties and interests due to the adoption of the tax amnesty programs. (c) Impact of the financial component on revenues from the adoption of IFRS in 2018. |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Schedule of Business Segment Information | The business segment information reviewed by the Management for the years ended December 31, 2018, 2017 and 2016 are as follows: Collection & O&G Landfills Value Corporate Eliminations Consolidated December 31, 2018 Domestic customers 817,145 12,749 401,140 29,553 — — 1,260,587 Inter-segment 44,831 45 55,427 1,777 — (102,080 ) — Total revenue from services 861,976 12,794 456,567 31,330 — (102,080 ) 1,260,587 Cost of services (731,424 ) (13,511 ) (306,673 ) (29,119 ) (2,253 ) 103,797 (979,183 ) Gross profit (loss) 130,552 (717 ) 149,894 2,211 (2,253 ) 1,717 281,404 Operating income/(expenses) General and administrative expenses (40,793 ) (96 ) (1,761 ) (187 ) (284,472 ) 23 (327,286 ) Selling expenses, net (8,433 ) (189 ) (26,981 ) (1,782 ) 42,709 — 5,324 Share of profit of an associate — — — — (650,080 ) 646,741 (3,339 ) Other operating expenses, net 1,225 (6 ) 4,949 (122 ) (580,829 ) (1,723 ) (576,506 ) (48,001 ) (291 ) (23,793 ) (2,091 ) (1,472,672 ) 645,041 (901,807 ) Profit (loss) before finance income and expenses 82,551 (1,008 ) 126,101 120 (1,474,925 ) 646,758 (620,403 ) Finance expenses 14,788 (541 ) (14,244 ) (77 ) (251,619 ) — (251,693 ) Finance income 8,536 73 6,535 603 100,566 — 116,313 Profit (loss) before income and social contribution taxes 105,875 (1,476 ) 118,392 646 (1,625,978 ) 646,758 (755,783 ) (-) Current income and social contribution taxes (26,621 ) — (479 ) — (14,523 ) — (41,623 ) (-) Deferred income and social contribution taxes 292 — — — 76,196 — 76,488 Profit (loss) for the year 79,546 (1,476 ) 117,913 646 (1,564,305 ) 646,758 (720,918 ) Discontinued operations Profit (loss) after tax for the year resulting from continuing operations — — — 3,285 27,169 — 30,454 Net income (loss) for the year 79,546 (1,476 ) 117,913 3,931 (1,537,136 ) 646,758 (690,464 ) Collection & O&G Landfills Value Corporate Eliminations Consolidated December 31, 2017 Domestic customers 911,652 25,524 371,840 36,833 — — 1,345,849 Inter-segment 17,171 331 83,558 897 — (101,957 ) — Total revenue from services 928,823 25,855 455,398 37,730 — (101,957 ) 1,345,849 Cost of services (673,024 ) (21,152 ) (316,305 ) (24,428 ) (9,303 ) 101,957 (942,255 ) Gross profit (loss) 255,799 4,703 139,093 13,302 (9,303 ) — 403,594 Operating income/(expenses) General and administrative expenses (38,309 ) (42 ) 1,290 (842 ) (218,629 ) — (256,532 ) Selling expenses, net (16,261 ) — 37,468 280 (28,128 ) — (6,641 ) Share of profit of an associate — — — — 83,384 (84,404 ) (1,020 ) Other operating expenses, net (15,335 ) (4,509 ) (41,719 ) 76,349 (45,911 ) — (31,125 ) (69,905 ) (4,551 ) (2,961 ) 75,787 (209,284 ) (84,404 ) (295,318 ) Profit (loss) before finance income and expenses 185,894 152 136,132 89,089 (218,587 ) (84,404 ) 108,276 Finance expenses (132,234 ) 889 (37,757 ) (36 ) (363,037 ) — (532,175 ) Finance income 8,276 70 948 81 98,906 — 108,281 Profit (loss) before income and social contribution taxes 61,936 1,111 99,323 89,134 (482,718 ) (84,404 ) (315,618 ) (-) Current income and social contribution taxes (8,613 ) — (4,030 ) (62 ) (4,838 ) — (17,543 ) (-) Deferred income and social contribution taxes 22,552 — 16,897 — 331,635 — 371,084 Profit (loss) for the year 75,875 1,111 112,190 89,072 (155,921 ) (84,404 ) 37,923 Discontinued operations Profit (loss) after tax for the year resulting from continuing operations 6,506 — 799 7,037 — — 14,342 Net income (loss) for the year 82,381 1,111 112,989 96,109 (155,921 ) (84,404 ) 52,265 Collection & O&G Landfills Value Corporate Eliminations Consolidated December 31, 2016 Foreign customers — — — — — — — Domestic customers 869,333 62,799 420,293 27,606 — — 1,380,031 Inter-segment 52,689 78 29,505 1,632 — (83,904 ) — Total revenue from services 922,022 62,877 449,798 29,238 — (83,904 ) 1,380,031 Cost of services (678,058 ) (41,583 ) (337,335 ) (22,002 ) (8,674 ) 83,904 (1,003,748 ) Gross profit (loss) 243,964 21,294 112,463 7,236 (8,674 ) — 376,283 Operating income/(expenses) General and administrative expenses (38,105 ) (783 ) (10,206 ) (343 ) (163,680 ) (17,933 ) (231,050 ) Selling expenses, net 268 897 26,293 8,532 (25,495 ) 10,495 Share of profit of an associate — — — — 139,714 (129,562 ) 10,152 Other operating income (expenses), net (12,402 ) 213 962 4 (69,328 ) — (80,551 ) (50,239 ) 327 17,049 8,193 (118,789 ) (147,495 ) (290,954 ) Profit (loss) before finance income and expenses 193,725 21,621 129,512 15,429 (127,463 ) (147,495 ) 85,329 Finance expenses (27,110 ) (1,326 ) (732 ) (11 ) (367,954 ) — (397,133 ) Finance income 1,506 1 18 16 50,122 — 51,663 Profit (loss) before income and social contribution taxes 168,121 20,296 128,798 15,434 (445,295 ) (147,495 ) (260,141 ) (-) Current income and social contribution taxes — — — (1 ) (54,336 ) — (54,337 ) (-) Deferred income and social contribution taxes — — — — (49,755 ) — (49,755 ) Profit (loss) for the year 168,121 20,296 128,798 15,433 (549,386 ) (147,495 ) (364,233 ) Discontinued operations Profit (loss) after tax for the year resulting from continuing operations — — 41 3,247 — — 3,288 Net income (loss) for the year 168,121 20,296 128,839 18,680 (549,386 ) (147,495 ) (360,945 ) |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Schedule of Carrying Amount of Financial Assets Represent Maximum Exposure of Credit | The carrying amount of the financial assets represent the maximum exposure of the credit. The maximum exposure of the credit risk at the date of the financial statements is: Note 2018 2017 Financial assets Cash and cash equivalents 4 18,862 84,687 Marketable securities — 42 42 Trade accounts receivable 5 501 , 821 609,157 Contract asset — 120,308 — Receivables from related parties 8 2 , 218 14,518 |
Schedule of Maximum Exposure of Credit Risk for Trade Accounts Receivable | The maximum exposure of the credit risk for trade accounts receivable segregated by the counterparty is as follows: 2018 2017 2016 Public 651,674 658,057 648,718 Private 91,509 120,049 73,775 The maximum exposure of the credit risk for trade accounts receivable per risk concentration is as follows: 2018 % 2017 % 2016 % 10 largest debtors 515,664 66% 533,335 69% 433,605 68% 20 largest debtors 610,273 79% 627,036 81% 512,394 81% 50 largest debtors 683,051 90% 704,481 91% 578,639 91% |
Schedule of Possible Impacts on Profit or Loss | The following table shows the possible impacts on profit or loss in each scenarios for 2018: Scenarios Exposure Risk I - Probable II 25% III 50% IV -25% V -50% 1 - Financial assets Investments 42 CDI variation 3 1 2 (1 ) (2 ) 3 1 2 (1 ) (2 ) 2 - Financial liabilities Loans and financing Working capital (589,778 ) CDI variation (39,633 ) (9,908 ) (19,817 ) 9,908 19,817 Finame (306 ) TJLP variation (21 ) (5 ) (11 ) 5 11 Leasing (38,213 ) CDI variation (2,568 ) (642 ) (1,284 ) 642 1,284 Debentures (966,386 ) CDI variation (64,941 ) (16,235 ) (32,471 ) 16,235 32,471 Net financial liabilities (107,160 ) (26,789 ) (53,581 ) 26,789 53,589 |
Schedule of Exposure to Liquidity Risk | The Company’s exposure to liquidity risk is as follows: 2018 2017 Up to 12 months 1 - 2 years 2 - 5 years > 5 Up to 12 months 1 - 2 years 2 - 5 years > 5 years Financial liabilities Loans and financing 601 , 475 20 , 444 4 , 940 1,438 14,139 1,709 100,841 268,825 Debentures 966,386 — — — — — 267,245 801,734 Trade accounts payable 1 73 , 339 — — — 128,113 — — — Labor payable 98,519 — — — 108,191 — — — Tax liabilities 15 1 , 686 202,412 109,854 50,011 167,040 178,570 26,684 190,581 Put option on the Company’s shares 41,662 — — — 37,884 — — — Accounts payable for land acquisition 5,3 80 4 , 804 — — 8,965 10,412 — — Total 2,0 38 , 447 2 27 , 660 1 14 , 794 5 1 , 449 464,332 190,691 394,770 1,261,140 |
Schedule of Carrying Amounts and Fair Values of Main Financial Instruments | The carrying amounts and fair values of the Company’s main financial instruments (and other assets and liabilities accounted for at fair value or for which fair value is disclosed) at December 31, 2018 and 2017 are as follows: 2018 2017 Category Carrying Fair value Carrying Fair value Financial assets Cash and cash equivalents Fair value through profit or loss Level 1 18,862 18,862 84,687 84,687 Marketable securities Fair value through profit or loss Level 2 42 42 42 42 Trade accounts receivable Amortized cost Level 2 501,821 501,821 609,157 609,157 Contract asset Amortized cost Level 2 120 , 308 120 , 308 — — Receivables from related parties Amortized cost Level 2 2 , 218 2 , 218 14,518 14,518 643,251 643,251 708,404 708,404 Financial liabilities Loans and financing Amortized cost Level 2 628,29 7 628,29 7 385,514 385,514 Trade accounts payable Amortized cost Level 2 1 73 , 339 1 73 , 339 128,113 128,113 Debentures Amortized cost Level 2 966,386 966,386 1,068,979 1,068,979 Loans from related parties Amortized cost Level 2 40,4 64 40,4 64 44,904 44,904 Accounts payable from land and others asset acquisition Amortized cost Level 2 10,184 10,184 19,377 19,377 Related parties payable Amortized cost Level 2 41,662 41,662 — — Put option on the Company’s shares Fair value through profit or loss Level 2 — — 37,884 37,884 Obligations relating to discontinued operations Amortized cost Level 2 41,201 41,201 23,787 23,787 1, 901 , 533 1, 901 , 533 1,708,558 1,708,558 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Minimum Lease payments, under Non-cancellable Operating Leases | Total minimum lease payments, under non-cancellable 2018 2017 2016 Less than one year 3,002 12,783 803 More than one year and less than five years 10,702 16,877 28,349 More than five years 22,772 — — 36,476 29,660 29,152 |
Insurance coverage (Tables)
Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Insurance Coverage | The Company’s insurance coverage is as follows: Description 2018 2017 2016 Civil liability – Environment 20,200 20,200 20,000 Civil liability - pain and suffering and contingent risks, fire, lightning, explosion 373,241 466,536 343,652 Sundry risks (a) 33,391 49,124 129,800 Total 426,832 535,860 493,452 (a) On March 23, 2018, the Company acquire executive officers and management liability insurance with TOKIO MARINE SEGURADORA S.A., valid from March 23, 2018 to March 23, 2019, in order to ensure against any event that produces damages covered by the insurance and attributed by alleged aggrieved third parties to the insured parties. |
Changes in liabilities from f_2
Changes in liabilities from financing activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Changes in Liabilities From Financing Activities | January 1, Cash flow Payment Interest + Proceeds Others (*) December 31, Loans and financing current 14,139 (17,835 ) (17,525 ) 57,675 5,492 559,529 601,475 Loans and financing non-current 371,375 — — — 215,428 (559,981 ) 26,822 Debentures current — — — — — 966,386 966,386 Debentures non-current 1,068,979 — — 81,259 (183,852 ) (966,386 ) — Total liabilities from financing activities 1,454,493 (17,835 ) (17,525 ) 138,934 37,068 (452 ) 1,594,683 January 1, Cash flow Payment Interest + Proceeds Others (*) December 31, Loans and financing current 16,732 (21,093 ) (11,295 ) 13,051 378,154 (361,410 ) 14,139 Loans and financing non-current 9,965 — — — — 361,410 371,375 Debentures current 1,665,629 (77,816 ) (288,151 ) 125,831 (356,514 ) (1,068,979 ) — Debentures non-current — — — — — 1,068,979 1,068,979 Accounts payable from acquisition of investments current 4,856 (9,001 ) — (711 ) — 4,856 — Accounts payable from acquisition of investments non-current 4,856 — — — — (4,856 ) — Total liabilities from financing activities 1,702,038 (107,910 ) (299,446 ) 138,171 21,640 — 1,454,493 January 1, Cash flow Payment of Interest + Proceeds Others December 31, Loans and financing current 64,133 (60,514 ) (9,506 ) 5,867 6,540 10,212 16,732 Loans and financing non-current 20,177 — — — — (10,212 ) 9,965 Debentures current 1,417,081 — — 248,548 — — 1,665,629 Accounts payable from acquisition of investments current 47,041 (64,039 ) — — — 21,854 4,856 Accounts payable from acquisition of investments non-current 26,710 — — — — (21,854 ) 4,856 Total liabilities from financing activities 1,575,142 (124,553 ) (9,506 ) 254,415 6,540 — 1,702,038 (*) Debt restructuring - refer to Note 14 for further details. |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Basic and Diluted Earnings (Loss) Per Share | Earnings per share 2018 2017 2016 Basic Profit (loss) attributable to equity holders of the parent (652,754 ) 43,793 (360,789 ) Weighted average number of ordinary shares outstanding (shares/thousand) 45,637 45,637 45,637 Basic profit (loss) per share (R$ 14.3032 ) R$ 0.9596 R$ (7.9057 ) 2018 2017 2016 Diluted Profit (loss) attributable to equity holders of the parent (652,754 ) 43,793 (360,789 ) Weighted average number of ordinary shares outstanding (shares/thousand) 47,620 45,691 45,637 Basic profit (loss) per share (R$ 13.7076 ) R$ 0.9585 R$ (7.9057 ) The shares related to stock options plan were excluded from the calculation of diluted loss per share for the year 2016 because their effect would have been antidilutive. The 28,249,999 outstanding warrants to purchase Company shares at US$11.50 per share were not included in the calculation of diluted earnings per share as they were out of the money. Earnings per share from continuing operations Basic 2018 2017 2016 Profit (loss) from continuing operations attributable to equity holders of the parent (681,356 ) 29,451 (364,077 ) Weighted average number of ordinary shares (shares/thousand) 45,637 45,637 45,637 Basic profit (loss) per share (R$ 1 4 . 9299 ) R$ 0.6453 R$ (7.9777 ) Diluted 2018 2017 2016 Profit (loss) from continuing operations attributable to equity holders of the parent ( 681,356 ) 29,451 (364,077 ) Weighted average number of ordinary shares (shares/thousand) 47,620 45,691 45,637 Diluted profit (loss) per share (R$ 1 4 . 3082 ) R$ 0.6446 R$ (7.9777 ) |
Operations - General Informatio
Operations - General Information - Additional Information (Detail) R$ / shares in Units, $ / shares in Units, R$ in Thousands, $ in Thousands | Dec. 21, 2017BRL (R$)R$ / sharesshares | Dec. 21, 2017USD ($) | Dec. 31, 2018$ / shares |
Disclosure of general information [line items] | |||
Number of shares issued | 27,001,889 | ||
Share price | $ / shares | $ 0.0001 | ||
Proceeds from issue of ordinary shares | R$ 462789 | $ 139,900 | |
Repayments of current borrowings | R$ 365000 | $ 110,600 | |
Percentage of prepayment of borrowing | 25.00% | 25.00% | |
PIPE Investors [member] | |||
Disclosure of general information [line items] | |||
Number of shares issued | 15,438,000 | ||
Number of warrants purchase | 3,748,600 | ||
Share price | R$ / shares | R$ 11.50 | ||
Proceeds from issue of ordinary shares | R$ 425739 | $ 128,700 |
Operations - Business Perspecti
Operations - Business Perspectives - Additional Information (Detail) R$ in Millions | Jan. 03, 2019BRL (R$) | Dec. 31, 2018ContractSegmentCustomer | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of business perspectives [line items] | ||||
Percentage decrease of contraction in Brazilian GDP | 3.30% | |||
Percentage increase of contraction in Brazilian GDP | 1.10% | 1.00% | ||
Number of business segments | Segment | 4 | |||
Percentage of total revenue | 72.90% | 74.00% | ||
Percentage of decrease in monthly revenue under extended contract | 37.70% | |||
Subsequent Event [member] | ||||
Disclosure of business perspectives [line items] | ||||
Contract term | 5 years | |||
Contract maximum value | R$ | R$ 844.8 | |||
Percentage decrease in revenue | 14.10% | |||
Collection cleaning services [member] | ||||
Disclosure of business perspectives [line items] | ||||
Number of municipality contracts | Contract | 2 | |||
Percentage of total revenue | 39.90% | 41.70% | ||
Major customers private and public sectors [member] | ||||
Disclosure of business perspectives [line items] | ||||
Number of major customer | Customer | 10 | |||
Percentage of total revenue | 69.40% | 74.00% | ||
Municipality of Sao Paulo [member] | ||||
Disclosure of business perspectives [line items] | ||||
Percentage of total revenue | 25.50% | 29.10% | ||
Municipality Of Curitiba [member] | ||||
Disclosure of business perspectives [line items] | ||||
Percentage of total revenue | 12.00% | 12.50% |
Operations - Divestments - Sale
Operations - Divestments - Sale of CGR Dona Juana S.A ESP. ("Dona Juana") - Additional Information (Detail) R$ in Thousands | Jan. 09, 2016BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$)Installment | Dec. 31, 2016BRL (R$)Installment |
Dona Juana [member] | ||||
Disclosure of business perspectives [line items] | ||||
Ownership interest sold | 51.00% | |||
Percentage of proceeds received for investments | 59.60% | 59.60% | ||
Sale amount | R$ 6207 | |||
Number of installment payments for investments | 6 | 4 | 4 | |
Term of agency agreement for sale of investments | 18 months | |||
Additional term of agency agreement for sale of investments | 12 months | |||
Additional extended term of agency agreement for sale of investments | 14 months | |||
Sale amount | R$ 10410 | R$ 2817 | ||
Due date of principal obligation | June 2019 | |||
Over due installment | R$ 620 | |||
Estre Sucursal Colombia [Member] | ||||
Disclosure of business perspectives [line items] | ||||
Additional consideration received | R$ 1386 | R$ 1386 |
Operations - Divestments - Sa_2
Operations - Divestments - Sale of CGR Dona Juana S.A ESP. ("Dona Juana") - Gain (loss) on Divestiture (Detail) - Dona Juana [member] - BRL (R$) R$ in Thousands | Jan. 09, 2016 | Dec. 31, 2018 |
Disclosure Of Gains Losses On Disposals Of Investments [line items] | ||
Sale amount | R$ 10410 | R$ 2817 |
Carrying value as of the date of the sale (provision balance) | 16,759 | |
Gain on sale | R$ 27169 |
Operations - Divestments - Sa_3
Operations - Divestments - Sale of Azaleia Empreendimentos e Participacoes S.A. (Azaleia) - Additional Information (Detail) - BRL (R$) R$ in Thousands | May 05, 2015 | Dec. 31, 2016 | Dec. 31, 2018 |
Disclosure of business perspectives [line items] | |||
Accounts payable from acquisition | R$ 296 | ||
Azaleia [member] | |||
Disclosure of business perspectives [line items] | |||
Ownership interest sold | 100.00% | ||
Sale consideration received | R$ 30300 | ||
Geo Vision Solues Ambientais E Energia SA [member] | |||
Disclosure of business perspectives [line items] | |||
Accounts payable from acquisition | R$ 39800 | ||
Offset of accounts receivable | 41,300 | ||
Loss on divestiture | R$ 1445 |
Operations - Divestments - Sa_4
Operations - Divestments - Sale of CGR Catanduva - Centro de Gerenciamento de Residuos Ltda ("CGR Catanduva") - Additional Information (Detail) - CGR catanduva - Centro de Gerenciamento de Resduos Ltda [member] R$ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2018BRL (R$) | Dec. 31, 2018BRL (R$)Installmentshares | |
Disclosure of business perspectives [line items] | ||
Sale of shares | shares | 4,485,000 | |
Ownership interest sold | 50.00% | 50.00% |
Sale consideration received | R$ 7500 | R$ 7500 |
Sale consideration received in cash | 5,000 | |
Sale consideration to be paid | R$ 2500 | |
Number of installment payments for investments | Installment | 5 |
Operations - Divestments - Sa_5
Operations - Divestments - Sale of CGR Catanduva - Centro de Gerenciamento de Residuos Ltda ("CGR Catanduva") - Gain (loss) on Divestiture (Detail) - CGR catanduva - Centro de Gerenciamento de Resduos Ltda [member] R$ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2018BRL (R$) | Dec. 31, 2018BRL (R$) | |
Disclosure Of Gains Losses On Disposals Of Investments [line items] | ||
Sale price | R$ 7500 | R$ 7500 |
Carrying amount of investment in Catanduva on the date of the sale | (5,468) | R$ 5468 |
Gain on sale | R$ 2032 |
Operations - Divestments - Disp
Operations - Divestments - Disposal of interest in Leccaros Participacoes S.A. - Additional Information (Detail) R$ in Thousands | Apr. 23, 2018BRL (R$)Installment | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) |
Disclosure of business perspectives [line items] | |||
Cash received | R$ 22584 | ||
Leccaros Participacoes S.A. [member] | |||
Disclosure of business perspectives [line items] | |||
Ownership interest sold | 50.00% | ||
Total selling price | R$ 22067 | ||
Cash received | 10,000 | ||
Installment amount | R$ 12067 | ||
Number of installments | Installment | 12 | ||
Net assets | R$ 6580 | ||
GainsOnDisposalsOfInvestmentsAttributableToOwnersOfParent | 3,283 | ||
Gain on sale | 37,567 | ||
Gain of sale attributable to equity holders to the Company | R$ 18784 |
Operations - Operations, Allega
Operations - Operations, Allegations and Investigations Regarding our Supply Relationships - Additional Information (Detail) R$ in Thousands, $ in Thousands | Dec. 27, 2017USD ($)Notice | Dec. 15, 2017USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) |
Disclosure of business perspectives [line items] | |||||
Write-off of property,plant and equipment | R$ 56001 | R$ 15390 | |||
Tax infringement notice amount | $ | $ 121,778 | $ 90,634 | |||
Number of official tax infringement notice | Notice | 2 | ||||
Recorded (loss) | (720,918) | 37,923 | R$ 364233 | ||
General and administrative expenses | (327,286) | (256,532) | (231,050) | ||
Profit (loss) before finance income and expenses | 620,403 | (108,276) | (85,329) | ||
Finance costs, net | R$ 251693 | (532,175) | R$ 397133 | ||
Descarte legal proceedings contingent liability [member] | |||||
Disclosure of business perspectives [line items] | |||||
Recorded (loss) | (33,974) | ||||
Depreciation expenses | (555) | ||||
General and administrative expenses | (11,219) | ||||
Profit (loss) before finance income and expenses | (10,882) | ||||
Finance costs, net | (11,318) | ||||
Operation Lava Jato Legal Proceedings Contingent Liability [member] | |||||
Disclosure of business perspectives [line items] | |||||
Write-off of property,plant and equipment | R$ 53407 |
Operations - Assets Held for Sa
Operations - Assets Held for Sale and Discontinued operations - Disclosure of profit and loss (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue from services rendered | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services | (979,183) | (942,255) | (1,003,748) |
Gross profit | 281,404 | 403,594 | 376,283 |
Operating income (expenses) | |||
General and administrative expenses | (327,286) | (256,532) | (231,050) |
Selling expenses, net | 5,324 | (6,641) | 10,495 |
Share of (loss) profit of an associate | (3,339) | (1,020) | 10,152 |
Other operating expenses, net | (576,506) | (31,125) | (80,551) |
Operating expenses | (901,807) | (295,318) | (290,954) |
Profit before finance income and expenses | (620,403) | 108,276 | 85,329 |
Finance costs, net | (251,693) | (532,175) | (397,133) |
Finance income | 116,313 | 108,281 | 51,663 |
Loss before income and social contribution taxes | (755,783) | (315,618) | (260,141) |
(-) Current income and social contribution taxes | (41,623) | (17,543) | (54,337) |
(-) Deferred income and social contribution taxes | 76,488 | 371,084 | (49,755) |
Profit for the year from continuing operations | (720,918) | 37,923 | (364,233) |
Discontinued operations | |||
Profit after income and social contribution tax from discontinued operations | 30,454 | 14,342 | 3,288 |
Profit for the year | (690,464) | 52,265 | (360,945) |
Restated balance January 1st, 2018 [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue from services rendered | 1,260,587 | ||
Cost of services | (979,183) | ||
Gross profit | 281,404 | ||
Operating income (expenses) | |||
General and administrative expenses | (327,286) | ||
Selling expenses, net | 5,324 | ||
Share of (loss) profit of an associate | (3,339) | ||
Other operating expenses, net | (540,647) | ||
Operating expenses | (865,948) | ||
Profit before finance income and expenses | (584,544) | ||
Finance costs, net | (251,693) | ||
Finance income | 116,313 | ||
Loss before income and social contribution taxes | (719,924) | ||
(-) Current income and social contribution taxes | (41,623) | ||
(-) Deferred income and social contribution taxes | 76,488 | ||
Profit for the year from continuing operations | (685,059) | ||
Discontinued operations | |||
Profit after income and social contribution tax from discontinued operations | (5,405) | ||
Profit for the year | R$ 690464 | ||
Discontinued operations [member] | Previously Reported [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue from services rendered | 1,365,347 | 1,393,033 | |
Cost of services | (953,760) | (1,012,336) | |
Gross profit | 411,587 | 380,697 | |
Operating income (expenses) | |||
General and administrative expenses | (258,114) | (231,932) | |
Selling expenses, net | (6,641) | 10,495 | |
Share of (loss) profit of an associate | (1,020) | 10,152 | |
Other operating expenses, net | (29,859) | (77,938) | |
Operating expenses | (295,634) | (289,223) | |
Profit before finance income and expenses | 115,953 | 91,474 | |
Finance costs, net | (534,273) | (400,892) | |
Finance income | 109,731 | 53,622 | |
Loss before income and social contribution taxes | (308,589) | (255,796) | |
(-) Current income and social contribution taxes | (18,263) | (55,435) | |
(-) Deferred income and social contribution taxes | 371,084 | (49,755) | |
Profit for the year from continuing operations | 44,232 | (360,986) | |
Discontinued operations | |||
Profit after income and social contribution tax from discontinued operations | 8,033 | 41 | |
Profit for the year | 52,265 | (360,945) | |
Discontinued operations [member] | Adjustment [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue from services rendered | (19,498) | (13,002) | |
Cost of services | 11,505 | 8,588 | |
Gross profit | (7,993) | (4,414) | |
Operating income (expenses) | |||
General and administrative expenses | 1,582 | 882 | |
Other operating expenses, net | (1,266) | (2,613) | |
Operating expenses | 316 | (1,731) | |
Profit before finance income and expenses | (7,677) | (6,145) | |
Finance costs, net | 2,098 | 3,759 | |
Finance income | (1,450) | (1,959) | |
Loss before income and social contribution taxes | (7,029) | (4,345) | |
(-) Current income and social contribution taxes | 720 | 1,098 | |
Profit for the year from continuing operations | (6,309) | (3,247) | |
Discontinued operations | |||
Profit after income and social contribution tax from discontinued operations | 6,309 | 3,247 | |
Profit for the year | (360,945) | ||
Discontinued operations [member] | Restated balance January 1st, 2018 [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue from services rendered | 1,345,849 | 1,380,031 | |
Cost of services | (942,255) | (1,003,748) | |
Gross profit | 403,594 | 376,283 | |
Operating income (expenses) | |||
General and administrative expenses | (256,532) | (231,050) | |
Selling expenses, net | (6,641) | 10,495 | |
Share of (loss) profit of an associate | (1,020) | 10,152 | |
Other operating expenses, net | (31,125) | (80,551) | |
Operating expenses | (295,318) | (290,954) | |
Profit before finance income and expenses | 108,276 | 85,329 | |
Finance costs, net | (532,175) | (397,133) | |
Finance income | 108,281 | 51,663 | |
Loss before income and social contribution taxes | (315,618) | (260,141) | |
(-) Current income and social contribution taxes | (17,543) | (54,337) | |
(-) Deferred income and social contribution taxes | 371,084 | (49,755) | |
Profit for the year from continuing operations | 37,923 | (364,233) | |
Discontinued operations | |||
Profit after income and social contribution tax from discontinued operations | 14,342 | 3,288 | |
Profit for the year | R$ 52265 | R$ 360945 |
Presentation of Financial Sta_4
Presentation of Financial Statements and Significant Accounting Practices Adopted - Subsidiaries Included in Consolidated Financial Statements (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Estre Ambiental SA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 93.92% | ||
Estre USA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | USA | ||
Percentage of ownership interest | 100.00% | ||
Road Participaes SA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | ||
Agua E Solo Ltda [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Laboratory analysis | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | |
Ambiental Sul Brasil Central Regional De Tratamento De Residuos Ltda [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Cavo [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Cleaning and collection | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Pilares Participacao [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | ||
Oxil Manufatura Reversa e Gerenciamento de Residuos Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Recycling | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
LMG Participacoes Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | ||
Viva Ambiental e Servicos S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Cleaning and collection | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
V2 Ambiental SPE S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Resicontrol Solucoes Ambientais Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
CGR Dona Juana S.A. ESP [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Colombia | ||
CTR Itaborai [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Esergia Estrategias Energeticas Ambientais Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Energy use services | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 50.00% | |
Estacao Ecologia - Area de Transbordo Triagem e Reciclagem de RCD S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Recycling | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | |
Geo Vision Solucoes Ambientais e Energia S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
CGR Guatapara-Centro de Gerenciamento de Residuos Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Estre SPI Ambiental S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Cleaning and collection | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
NGA - Nucleo de Gerenciamento Ambiental Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste treatment | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
NGA Jardinopolis-Nucleo de Gerenciamento Ambiental Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste treatment | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
NGA Ribeirao Preto Nucleo de Gerenciamento Ambiental Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste treatment | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Reciclax-Reciclagem de Residuos da Construcoes Civil Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Recycling | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 88.00% | 88.00% | 88.00% |
Guatapara Energia SA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Energy use services | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 90.00% | 90.00% | 90.00% |
CTR Porto Seguro [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Estre Energia Renovavel Part. S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 90.00% | 90.00% | 90.00% |
SPE Paulinia Energia Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Energy use services | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
SPE Tremembe [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Energy use services | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Curitiba Energia SPE [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Energy use services | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Piratininga Energia E Participacoes Ltda [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Energy use services | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
CTR Arapiraca [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste treatment center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Estre Aterros E Valorizacao Holding SA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
NGA Sul Nucleo De Gerenciamento Ambiental SA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | ||
CGR Centro De Gerenciamento De Residuos Feira De Santana SA [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
GLA - Gestao Logistica Ambiental S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Cleaning and collection | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 38.00% | 38.00% | |
SPE Soma [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Cleaning and collection | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 82.00% | 82.00% | |
Leccaros Participacoes S.A. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Holding | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 50.00% | ||
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Waste management center | ||
Country of incorporation | Brazil | ||
Percentage of ownership interest | 50.00% | ||
Estre Ambiental Sucursal Colombia [member] | |||
Direct subsidiaries included in consolidated financial statements [line items] | |||
Main activity | Cleaning and collection | ||
Country of incorporation | Colombia | ||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
Presentation of Financial Sta_5
Presentation of Financial Statements and Significant Accounting Practices Adopted - Subsidiaries Included in Consolidated Financial Statements (Parenthetical) (Detail) - Estre USA [member] | 12 Months Ended |
Dec. 31, 2018 | |
Direct subsidiaries included in consolidated financial statements [line items] | |
Percentage of direct interest | 66.57% |
Percentage of indirect interest | 27.35% |
Presentation of Financial Sta_6
Presentation of Financial Statements and Significant Accounting Practices Adopted - Investments in Associates Accounted for Using Equity Method (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Attend Ambiental Ltda. [member] | |||
Investments In Associates Accounted For Using Equity Method [line items] | |||
Main activity | Treatment of liquid effluents | ||
Host country | Brazil | ||
Interest held | - | ||
Percentage of ownership interest | 55.00% | ||
Metropolitana Servicos Ambientais Ltda. [member] | |||
Investments In Associates Accounted For Using Equity Method [line items] | |||
Main activity | Waste management center | ||
Host country | Brazil | ||
Interest held | Direct | ||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% |
Terrestre Ambiental Ltda. [member] | |||
Investments In Associates Accounted For Using Equity Method [line items] | |||
Main activity | Waste management center | ||
Host country | Brazil | ||
Interest held | - | ||
Percentage of ownership interest | 40.00% | ||
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | |||
Investments In Associates Accounted For Using Equity Method [line items] | |||
Main activity | Waste management center | ||
Host country | Brazil | ||
Interest held | - | ||
Percentage of ownership interest | 50.00% | ||
Logstica Ambiental De Sao Paulo SA Loga [member] | |||
Investments In Associates Accounted For Using Equity Method [line items] | |||
Main activity | Cleaning and collection services | ||
Host country | Brazil | ||
Interest held | - | ||
Percentage of ownership interest | 38.00% | ||
Unidade de Tratamento de Residuos - UTR S.A. [member] | |||
Investments In Associates Accounted For Using Equity Method [line items] | |||
Main activity | Waste management center | ||
Host country | Brazil | ||
Interest held | - | ||
Percentage of ownership interest | 54.00% |
Presentation of Financial Sta_7
Presentation of Financial Statements and Significant Accounting Practices Adopted - Proportion of Equity Interest Held by Non-controlling Interests (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CGR Dona Juana S.A. ESP [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Colombia | ||
Percentage of ownership interests held by non-controlling interests | 49.00% | 49.00% | |
SPE Soma [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Brazil | ||
Percentage of ownership interests held by non-controlling interests | 18.00% | 18.00% | |
Reciclax-Reciclagem de Residuos da Construcoes Civil Ltda. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Brazil | ||
Percentage of ownership interests held by non-controlling interests | 13.00% | 13.00% | 13.00% |
Guatapara Energia SA [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Brazil | ||
Percentage of ownership interests held by non-controlling interests | 10.00% | 10.00% | 10.00% |
Estre Energia Renovavel Part. S.A. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Brazil | ||
Percentage of ownership interests held by non-controlling interests | 10.00% | 10.00% | 10.00% |
GLA - Gestao Logistica Ambiental S.A. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Brazil | ||
Percentage of ownership interests held by non-controlling interests | 62.00% | 62.00% | |
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Country of incorporation and operation | Brazil | ||
Percentage of ownership interests held by non-controlling interests | 50.00% |
Presentation of Financial Sta_8
Presentation of Financial Statements and Significant Accounting Practices Adopted - Summarized Statement of Profit or Loss (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Revenue from services rendered | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services rendered | (979,183) | (942,255) | (1,003,748) |
General and administrative expenses | (327,286) | (256,532) | (231,050) |
Other operating income (expenses), net | (576,506) | (31,125) | (80,551) |
Financial expenses, net | (135,380) | (423,894) | (345,470) |
Loss before income and social contribution taxes | (755,783) | (315,618) | (260,141) |
Income tax and social contribution | (34,865) | (353,541) | 104,092 |
(Loss) profit for the year from continuing operations | (720,918) | 37,923 | (364,233) |
Total comprehensive income | (692,242) | 52,362 | (360,800) |
Attributable to non-controlling interests | (37,710) | 8,472 | (156) |
Estre Energia Renovavel Part. S.A. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
General and administrative expenses | (1,111) | (666) | |
Other operating income (expenses), net | 3,297 | 1,329 | |
Financial expenses, net | 878 | (1,906) | |
Loss before income and social contribution taxes | 3,064 | (1,243) | |
(Loss) profit for the year from continuing operations | 3,064 | (1,243) | |
Total comprehensive income | 3,064 | (1,243) | |
Attributable to non-controlling interests | 306 | (124) | |
Guatapara Energia SA [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Revenue from services rendered | 9,115 | 8,251 | |
Cost of services rendered | (5,614) | (4,725) | |
General and administrative expenses | (299) | (180) | |
Other operating income (expenses), net | 1,252 | 2,482 | |
Financial expenses, net | (799) | (1,007) | |
Loss before income and social contribution taxes | 3,655 | 4,821 | |
Income tax and social contribution | (410) | (331) | |
(Loss) profit for the year from continuing operations | 3,245 | 4,490 | |
Total comprehensive income | 3,245 | 4,490 | |
Attributable to non-controlling interests | 325 | 449 | |
Reciclax-Reciclagem de Residuos da Construcoes Civil Ltda. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Revenue from services rendered | 569 | 777 | 1,320 |
Cost of services rendered | (2,019) | (2,737) | (2,475) |
General and administrative expenses | (445) | (466) | (236) |
Other operating income (expenses), net | (28) | 85 | (231) |
Financial expenses, net | (85) | (117) | (126) |
Loss before income and social contribution taxes | (2,008) | (2,458) | (1,748) |
Income tax and social contribution | (2) | 964 | |
(Loss) profit for the year from continuing operations | (2,010) | (1,494) | (1,748) |
Total comprehensive income | (2,010) | (1,494) | (1,748) |
Attributable to non-controlling interests | (251) | (187) | R$ 219 |
SPE Soma [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Revenue from services rendered | 335,317 | 84,919 | |
Cost of services rendered | (252,480) | (61,051) | |
General and administrative expenses | (40,417) | (3,180) | |
Other operating income (expenses), net | (5,161) | (1,356) | |
Financial expenses, net | (895) | (2,783) | |
Loss before income and social contribution taxes | 36,364 | 16,549 | |
Income tax and social contribution | (32,842) | 218 | |
(Loss) profit for the year from continuing operations | 3,522 | 16,767 | |
Total comprehensive income | 3,522 | 16,767 | |
Attributable to non-controlling interests | 634 | 3,018 | |
GLA - Gestao Logistica Ambiental S.A. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Revenue from services rendered | 24,398 | 12,055 | |
Cost of services rendered | (17,569) | (7,950) | |
General and administrative expenses | (449) | (170) | |
Other operating income (expenses), net | (471) | (233) | |
Financial expenses, net | 31 | 38 | |
Loss before income and social contribution taxes | 5,940 | 3,740 | |
Income tax and social contribution | (824) | (408) | |
(Loss) profit for the year from continuing operations | 5,116 | 3,332 | |
Total comprehensive income | 5,116 | 3,332 | |
Attributable to non-controlling interests | R$ 3187 | 2,076 | |
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | |||
Proportion Of Equity Interest Held By Non Controlling Interests [line items] | |||
Revenue from services rendered | 10,348 | ||
Cost of services rendered | (8,252) | ||
General and administrative expenses | (833) | ||
Other operating income (expenses), net | (292) | ||
Financial expenses, net | (305) | ||
Loss before income and social contribution taxes | 666 | ||
Income tax and social contribution | (458) | ||
(Loss) profit for the year from continuing operations | 208 | ||
Total comprehensive income | 208 | ||
Attributable to non-controlling interests | R$ 104 |
Presentation of Financial Sta_9
Presentation of Financial Statements and Significant Accounting Practices Adopted - Summarized Statement of Financial Position (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||||
Cash and cash equivalents | R$ 18862 | R$ 84687 | R$ 84687 | R$ 31083 | |
Trade accounts receivable | 622,875 | 778,106 | |||
Taxes recoverable | 98,367 | 101,870 | 101,870 | ||
Total current assets | 870,754 | 909,749 | 908,728 | ||
Non-current assets | |||||
Related parties | 2,218 | 14,518 | 14,518 | ||
Investments | 7,663 | 7,206 | 7,206 | ||
Property, plant and equipment | 512,065 | 689,451 | 689,451 | 694,453 | |
Intangible assets | 58,991 | 588,238 | 588,238 | 553,832 | |
Total non-current assets | 753,992 | 1,475,114 | 1,475,114 | ||
Total assets | 1,624,746 | 2,384,883 | 2,383,842 | ||
Current liabilities | |||||
Trade accounts payable | 173,339 | 128,113 | 128,113 | ||
Labor liabilities | 98,519 | 117,925 | 117,925 | ||
Tax liabilities | 151,686 | 169,505 | 169,505 | ||
Debt to related parties | 82,126 | 82,788 | 82,788 | ||
Other current liabilities | 19,786 | 32,992 | |||
Total current liabilities | 2,160,552 | 615,357 | 615,357 | ||
Non-current liabilities | |||||
Provision for legal proceedings | 70,274 | 147,762 | 147,762 | 245,539 | |
Other liabilities | 167 | 168 | 168 | ||
Total non-current liabilities | 613,404 | 2,225,011 | 2,224,389 | ||
Capital | 17 | 17 | 17 | ||
Reserves | 1,094,656 | 1,068,195 | 1,068,195 | ||
Accumulated earnings (losses) | (2,183,405) | (1,520,332) | (1,520,751) | ||
Total equity | (1,149,210) | (455,485) | (455,904) | (737,056) | R$ 381129 |
Total liabilities and equity | 1,624,746 | 2,384,883 | 2,383,842 | ||
Attributable to: | |||||
Equity holders of parent | (1,088,742) | (450,352) | (450,771) | ||
Non-controlling interest | (60,468) | R$ 5133 | (5,133) | ||
Estre Energia Renovavel Part. S.A. [member] | |||||
Current assets | |||||
Cash and cash equivalents | 1,703 | 33 | |||
Taxes recoverable | 1 | 1 | |||
Advances to suppliers | 8 | 7 | |||
Total current assets | 1,712 | 41 | |||
Non-current assets | |||||
Related parties | 18 | 17 | |||
Investments | 24,061 | ||||
Property, plant and equipment | 8,754 | 23,253 | |||
Intangible assets | 9,890 | ||||
Total non-current assets | 32,833 | 33,160 | |||
Total assets | 34,545 | 33,201 | |||
Current liabilities | |||||
Trade accounts payable | 44 | 4 | |||
Labor liabilities | 87 | 80 | |||
Tax liabilities | 4 | 73 | |||
Debt to related parties | 20,500 | 21,499 | |||
Other current liabilities | 300 | 375 | |||
Total current liabilities | 20,935 | 22,031 | |||
Non-current liabilities | |||||
Capital | 12,000 | 12,000 | |||
Accumulated earnings (losses) | 1,610 | (830) | |||
Total equity | 13,610 | 11,170 | |||
Total liabilities and equity | 34,545 | 33,201 | |||
Attributable to: | |||||
Equity holders of parent | 12,249 | 10,053 | |||
Non-controlling interest | 1,361 | ||||
Guatapara Energia SA [member] | |||||
Current assets | |||||
Cash and cash equivalents | 763 | 39 | |||
Trade accounts receivable | 1,305 | 690 | |||
Taxes recoverable | 1 | 1,212 | |||
Advances to suppliers | 1 | ||||
Other current assets | 745 | 1,114 | |||
Total current assets | 2,814 | 3,056 | |||
Non-current assets | |||||
Related parties | 39 | ||||
Property, plant and equipment | 23,048 | ||||
Intangible assets | 20,866 | ||||
Total non-current assets | 23,048 | 20,905 | |||
Total assets | 25,862 | 23,961 | |||
Current liabilities | |||||
Trade accounts payable | 2,168 | 3,310 | |||
Tax liabilities | 178 | 382 | |||
Other current liabilities | 3,072 | 2,301 | |||
Total current liabilities | 5,418 | 5,993 | |||
Non-current liabilities | |||||
Capital | 10,682 | 10,682 | |||
Reserves | 483 | ||||
Accumulated earnings (losses) | 9,762 | 6,803 | |||
Total equity | 20,444 | 17,968 | |||
Total liabilities and equity | 25,862 | 23,961 | |||
Attributable to: | |||||
Equity holders of parent | 18,400 | 16,171 | |||
Non-controlling interest | 2,044 | ||||
Reciclax-Reciclagem de Residuos da Construcoes Civil Ltda. [member] | |||||
Current assets | |||||
Cash and cash equivalents | 6 | 10 | 19 | ||
Trade accounts receivable | 57 | 1,382 | 1,236 | ||
Taxes recoverable | 65 | 13 | 8 | ||
Advances to suppliers | 16 | 11 | |||
Other current assets | 127 | 218 | 12 | ||
Total current assets | 255 | 1,639 | 1,286 | ||
Non-current assets | |||||
Related parties | 248 | 2,159 | 1,891 | ||
Other non-current assets | 107 | 33 | 18 | ||
Property, plant and equipment | 7,885 | 8,039 | |||
Intangible assets | 8,166 | ||||
Total non-current assets | 8,240 | 10,231 | 10,075 | ||
Total assets | 8,495 | 11,870 | 11,361 | ||
Current liabilities | |||||
Trade accounts payable | 221 | 478 | 448 | ||
Labor liabilities | 76 | 311 | 204 | ||
Tax liabilities | 50 | 148 | 741 | ||
Debt to related parties | 5,532 | 6,099 | 3,782 | ||
Other current liabilities | 39 | 29 | 27 | ||
Total current liabilities | 5,918 | 7,065 | 5,202 | ||
Non-current liabilities | |||||
Provision for legal proceedings | 111 | 129 | 63 | ||
Other liabilities | 85 | 224 | 140 | ||
Total non-current liabilities | 196 | 353 | 203 | ||
Capital | 4,714 | 4,714 | 4,714 | ||
Reserves | 4,481 | 4,542 | 4,430 | ||
Accumulated earnings (losses) | (6,814) | (4,804) | (3,188) | ||
Total equity | 2,381 | 4,452 | 5,956 | ||
Total liabilities and equity | 8,495 | 11,870 | 11,361 | ||
Attributable to: | |||||
Equity holders of parent | 2,071 | 3,873 | R$ 5182 | ||
Non-controlling interest | 310 | 579 | |||
SPE Soma [member] | |||||
Current assets | |||||
Cash and cash equivalents | 218 | 17,038 | |||
Trade accounts receivable | 51,108 | 45,619 | |||
Taxes recoverable | 1,568 | 1,759 | |||
Advances to suppliers | 80 | 125 | |||
Other current assets | 17,775 | 21,135 | |||
Total current assets | 70,749 | 85,676 | |||
Non-current assets | |||||
Related parties | 32,552 | 39,994 | |||
Other non-current assets | 1,828 | 10,436 | |||
Property, plant and equipment | 4,714 | 6,076 | |||
Intangible assets | 112 | 225 | |||
Total non-current assets | 39,206 | 56,731 | |||
Total assets | 109,955 | 142,407 | |||
Current liabilities | |||||
Trade accounts payable | 18,678 | 8,400 | |||
Labor liabilities | 24,702 | 31,451 | |||
Tax liabilities | 9,858 | 17,822 | |||
Other current liabilities | 19,061 | 1,451 | |||
Total current liabilities | 72,299 | 59,124 | |||
Non-current liabilities | |||||
Provision for legal proceedings | 6,127 | 2,299 | |||
Other liabilities | 167 | 22,474 | |||
Total non-current liabilities | 6,294 | 24,773 | |||
Capital | 43,484 | 43,484 | |||
Accumulated earnings (losses) | (12,122) | 15,026 | |||
Total equity | 31,362 | 58,510 | |||
Total liabilities and equity | 109,955 | 142,407 | |||
Attributable to: | |||||
Equity holders of parent | 25,717 | 47,978 | |||
Non-controlling interest | 5,645 | 10,532 | |||
GLA - Gestao Logistica Ambiental S.A. [member] | |||||
Current assets | |||||
Cash and cash equivalents | 672 | 1,106 | |||
Trade accounts receivable | 2,855 | 2,303 | |||
Taxes recoverable | 2,977 | 70 | |||
Other current assets | 241 | 177 | |||
Total current assets | 6,745 | 3,656 | |||
Non-current assets | |||||
Property, plant and equipment | 147 | 149 | |||
Total non-current assets | 147 | 149 | |||
Total assets | 6,892 | 3,805 | |||
Current liabilities | |||||
Trade accounts payable | 1,630 | 1,818 | |||
Labor liabilities | 1,104 | 726 | |||
Tax liabilities | 1,642 | 436 | |||
Other current liabilities | 1 | ||||
Total current liabilities | 4,376 | 2,981 | |||
Non-current liabilities | |||||
Capital | 1 | 1 | |||
Reserves | 823 | ||||
Accumulated earnings (losses) | 2,515 | ||||
Total equity | 2,516 | 824 | |||
Total liabilities and equity | 6,892 | 3,805 | |||
Attributable to: | |||||
Equity holders of parent | 956 | 311 | |||
Non-controlling interest | R$ 1560 | 511 | |||
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | |||||
Current assets | |||||
Cash and cash equivalents | 1,213 | ||||
Trade accounts receivable | 2,469 | ||||
Taxes recoverable | 173 | ||||
Other current assets | 2 | ||||
Total current assets | 3,857 | ||||
Non-current assets | |||||
Related parties | 16 | ||||
Other non-current assets | 258 | ||||
Property, plant and equipment | 12,988 | ||||
Intangible assets | 2,195 | ||||
Total non-current assets | 15,457 | ||||
Total assets | 19,314 | ||||
Current liabilities | |||||
Loans and Financing | 160 | ||||
Trade accounts payable | 636 | ||||
Labor liabilities | 374 | ||||
Tax liabilities | 605 | ||||
Debt to related parties | 210 | ||||
Other current liabilities | 1 | ||||
Total current liabilities | 1,986 | ||||
Non-current liabilities | |||||
Other liabilities | 2,734 | ||||
Total non-current liabilities | 2,734 | ||||
Capital | 4,376 | ||||
Reserves | 4,452 | ||||
Accumulated earnings (losses) | 5,766 | ||||
Total equity | 14,594 | ||||
Total liabilities and equity | 19,314 | ||||
Attributable to: | |||||
Equity holders of parent | R$ 7297 |
Presentation of Financial St_10
Presentation of Financial Statements and Significant Accounting Practices Adopted - Summarized Cash Flow Information (Detail) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | R$ 20999000 | R$ 243293000 | R$ 213488000 |
Investing activities | (86,877,000) | (200,316,000) | (166,718,000) |
Financing activities | 1,708,000 | 10,627,000 | (63,480,000) |
Net cash generated/(used) | (64,170,000) | 53,604,000 | (16,710,000) |
Estre Energia Renovavel Part. S.A. [member] | |||
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | 1,670,000 | (33,063,000) | |
Investing activities | 33,000 | 33,143,000 | |
Financing activities | 1,000 | ||
Net cash generated/(used) | 1,703,000 | 81,000 | |
Guatapara Energia SA [member] | |||
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | 5,162,000 | (4,400,000) | |
Investing activities | (4,399,000) | 2,519,000 | |
Financing activities | 2,500,000 | ||
Net cash generated/(used) | 763,000 | 619,000 | |
Reciclax-Reciclagem de Residuos da Construcoes Civil Ltda. [member] | |||
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | 240,000 | 320,000 | 124,000 |
Investing activities | (244,000) | (310,000) | (117,000) |
Financing activities | 2,000 | ||
Net cash generated/(used) | (4,000) | 10,000 | R$ 9000 |
SPE Soma [member] | |||
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | (16,372) | 23,688,000 | |
Investing activities | (448,000) | (6,650,000) | |
Net cash generated/(used) | (16,820) | 17,038,000 | |
GLA - Gestao Logistica Ambiental S.A. [member] | |||
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | (434,000) | 1,260,000 | |
Investing activities | (155,000) | ||
Financing activities | 1,000 | ||
Net cash generated/(used) | (434,000) | 1,106,000 | |
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | |||
Disclosure of consolidated statement of cash flows [line items] | |||
Operating activities | (167,000) | 1,399,000 | |
Investing activities | (663,000) | (132,000) | |
Financing activities | 78,000 | (517,000) | |
Net cash generated/(used) | R$ 752000 | R$ 750000 |
Presentation of Financial St_11
Presentation of Financial Statements and Significant Accounting Practices Adopted - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Disclosure of revenue [line items] | ||||
Average discount rate | 8.50% | 8.40% | ||
Statutory rate | 15.00% | |||
Surtax rates | 10.00% | |||
Social contribution tax rates | 9.00% | |||
Pre-tax long-term average weighted cost of capital rate | 15.66% | 15.26% | 14.30% | |
Decrease in allowance for doubtful accounts | R$ 3492 | |||
Estimated effects of discounts and rebates amounted | R$ 1948 | |||
Right to use asset | 23,264 | |||
Lease liability | R$ 23264 |
Presentation of Financial St_12
Presentation of Financial Statements and Significant Accounting Practices Adopted - Statutory Rates of Sales Taxes (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [line items] | |
Withholding taxes - PIS, COFINS and CSLL | 4.65% |
Social Security Tax (INSS) | 11.00% |
Contribution Tax on Gross Revenue for Social Security Financing (COFINS) | 7.60% |
Contribution Tax on Gross Revenue for Social Integration Program (PIS) | 1.65% |
Withholding Income Tax (IRRF) | 1.50% |
Services Tax (ISS) | 5.00% |
VAT Tax (ICMS) | 18.00% |
Presentation of Financial St_13
Presentation of Financial Statements and Significant Accounting Practices Adopted - Statutory Rates of Sales Taxes (Parenthetical) (Detail) R$ in Millions | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Disclosure of initial application of standards or interpretations [line items] | |
Threshold maximum gross revenues for opting to declare income taxes on presumed profits basis | R$ 78 |
Lower COFINS rate | 3.00% |
Lower PIS rate | 0.65% |
VAT Tax (ICMS) | 18.00% |
Presentation of Financial St_14
Presentation of Financial Statements and Significant Accounting Practices Adopted - Statutory Rates of Taxes on Purchases (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [line items] | |
Contribution Tax on Service Rendered for Social Security Financing (COFINS) | 7.60% |
Contribution Tax on Service Rendered for Social Integration Program (PIS) | 1.65% |
Presentation of Financial St_15
Presentation of Financial Statements and Significant Accounting Practices Adopted - Statutory Rates of Withholding Taxes on Purchases (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [line items] | |
Withholding taxes - PIS, COFINS and CSLL | 4.65% |
Social Security Tax (INSS) | 11.00% |
Withholding Income Tax (IRRF) | 1.50% |
Services Tax (ISS) | 5.00% |
Financial Assets (Detail)
Financial Assets (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | |||
Financial Assets | R$ 643251 | R$ 708404 | |
Adoption Of IFRS 9 [member] | |||
Disclosure of financial assets [line items] | |||
Financial Assets, at fair value through profit or loss | R$ 0 | ||
Financial assets, at Amortized cost | 796,116 | ||
Financial assets, at fair value through OCI | 0 | ||
Trade receivables [member] | IAS 39 [member] | |||
Disclosure of financial assets [line items] | |||
Financial Assets | 778,106 | ||
Trade receivables [member] | Adoption Of IFRS 9 [member] | |||
Disclosure of financial assets [line items] | |||
Financial Assets, at fair value through profit or loss | 0 | ||
Financial assets, at Amortized cost | 781,598 | ||
Financial assets, at fair value through OCI | 0 | ||
Receivables from Related Parties [member] | IAS 39 [member] | |||
Disclosure of financial assets [line items] | |||
Financial Assets | 14,518 | ||
Receivables from Related Parties [member] | Adoption Of IFRS 9 [member] | |||
Disclosure of financial assets [line items] | |||
Financial Assets, at fair value through profit or loss | 0 | ||
Financial assets, at Amortized cost | 14,518 | ||
Financial assets, at fair value through OCI | R$ 0 |
Presentation of Financial St_16
Presentation of Financial Statements and Significant Accounting Practices Adopted - Impact of Adoption of IFRS 15 (Detail) - BRL (R$) R$ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations [line items] | ||||
Deferred income tax and social contribution -34% | R$ 76488 | R$ 371084 | R$ 49755 | |
Adoption Of IFRS 15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Public sector customers | R$ 503 | |||
Reversal of revenues | (1,948) | |||
Deferred income tax and social contribution -34% | 191 | |||
Net impact on shareholders' equity | R$ 2260 |
Presentation of Financial St_17
Presentation of Financial Statements and Significant Accounting Practices Adopted - Impact of Adoption of IFRS 15 (Parenthetical) (Detail) | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations [line items] | ||||
Standard tax rate | 34.00% | 34.00% | 34.00% | |
Adoption Of IFRS 15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Standard tax rate | 34.00% |
Presentation of Financial St_18
Presentation of Financial Statements and Significant Accounting Practices Adopted of IFRS 15 on Revenue from Contracts with Customers (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||||
Cash and cash equivalents | R$ 18862 | R$ 84687 | R$ 84687 | R$ 31083 | |
Marketable securities | 27 | 42 | 42 | ||
Trade accounts receivable | 501,821 | 501,329 | 669,237 | ||
Contract asset | 168,949 | ||||
Inventories | 8,609 | 11,365 | 11,365 | ||
Taxes recoverable | 98,367 | 101,870 | 101,870 | ||
Other receivables | 31,960 | 34,947 | 34,947 | ||
Assets held for sale | 789,297 | 6,580 | 902,148 | ||
Total current assets | 870,754 | 909,749 | 908,728 | ||
Non-current assets | |||||
Related parties | 2,218 | 14,518 | 14,518 | ||
Trade accounts receivable | 121,054 | 108,869 | 108,869 | ||
Taxes recoverable | 31,200 | 52,141 | 52,141 | ||
Prepaid expenses | 138 | 174 | 174 | ||
Deferred taxes | 44 | 44 | |||
Other receivables | 20,648 | 14,473 | 14,473 | ||
Investments | 7,663 | 7,206 | 7,206 | ||
Property, plant and equipment | 512,065 | 689,451 | 689,451 | 694,453 | |
Intangible assets | 58,991 | 588,238 | 588,238 | 553,832 | |
Total non-current assets | 753,992 | 1,475,114 | 1,475,114 | ||
Total assets | 1,624,746 | 2,384,883 | 2,383,842 | ||
Current liabilities | |||||
Loans and financing | 601,475 | 14,139 | 14,139 | ||
Trade accounts payable | 173,339 | 128,113 | 128,113 | ||
Provision for landfill closure | 5,613 | 20,651 | 20,651 | ||
Labor payable | 98,519 | 117,925 | 117,925 | ||
Tax liabilities | 151,686 | 169,505 | 169,505 | ||
Loans from related parties | 82,126 | 82,788 | 82,788 | ||
Advances from customers | 15,041 | 16,492 | 16,492 | ||
Accounts payable for acquisition of assets | 5,380 | 8,965 | 8,965 | ||
Liabilities directly associated with the assets held for sale | 41,201 | 32,992 | 23,787 | ||
Liabilities directly associated with the assets held for sale | 23,787 | ||||
Total current liabilities | 2,160,552 | 615,357 | 615,357 | ||
Non-current liabilities | |||||
Loans and financing | 26,822 | 371,375 | 371,375 | ||
Debentures | 1,068,979 | 1,068,979 | |||
Provision for landfill closure | 96,791 | 92,881 | 92,881 | ||
Provision for legal proceedings | 70,274 | 147,762 | 147,762 | 245,539 | |
Tax liabilities | 362,277 | 395,784 | 395,784 | ||
Deferred taxes | 52,269 | 137,650 | 137,028 | ||
Accounts payable for acquisition of assets | 4,804 | 10,412 | 10,412 | ||
Other liabilities | 167 | 168 | 168 | ||
Total non-current liabilities | 613,404 | 2,225,011 | 2,224,389 | ||
Equity | |||||
Capital | 17 | 17 | 17 | ||
Capital reserve | 1,094,656 | 1,068,195 | 1,068,195 | ||
Other comprehensive income | (10) | 1,768 | 1,768 | ||
Accumulated losses | (2,183,405) | (1,520,332) | (1,520,751) | ||
Equity holders of parent | (1,088,742) | (450,352) | (450,771) | ||
Non-controlling interest | (60,468) | (5,133) | (5,133) | ||
Total equity | (1,149,210) | (455,485) | (455,904) | R$ 737056 | R$ 381129 |
Total liabilities and equity | R$ 1624746 | 2,384,883 | 2,383,842 | ||
Previously Reported [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 84,687 | ||||
Marketable securities | 42 | ||||
Trade accounts receivable | 669,237 | ||||
Inventories | 11,365 | ||||
Taxes recoverable | 101,870 | ||||
Other receivables | 34,947 | ||||
Assets held for sale | 6,580 | ||||
Total current assets | 908,728 | ||||
Non-current assets | |||||
Related parties | 14,518 | ||||
Trade accounts receivable | 108,869 | ||||
Taxes recoverable | 52,141 | ||||
Prepaid expenses | 174 | ||||
Deferred taxes | 44 | ||||
Other receivables | 14,473 | ||||
Investments | 7,206 | ||||
Property, plant and equipment | 689,451 | ||||
Intangible assets | 588,238 | ||||
Total non-current assets | 1,475,114 | ||||
Total assets | 2,383,842 | ||||
Current liabilities | |||||
Loans and financing | 14,139 | ||||
Trade accounts payable | 128,113 | ||||
Provision for landfill closure | 20,651 | ||||
Labor payable | 117,925 | ||||
Tax liabilities | 169,505 | ||||
Loans from related parties | 82,788 | ||||
Advances from customers | 16,492 | ||||
Accounts payable for acquisition of assets | 8,965 | ||||
Liabilities directly associated with the assets held for sale | 32,992 | ||||
Liabilities directly associated with the assets held for sale | 23,787 | ||||
Total current liabilities | 615,357 | ||||
Non-current liabilities | |||||
Loans and financing | 371,375 | ||||
Debentures | 1,068,979 | ||||
Provision for landfill closure | 92,881 | ||||
Provision for legal proceedings | 147,762 | ||||
Tax liabilities | 395,784 | ||||
Deferred taxes | 137,028 | ||||
Accounts payable for acquisition of assets | 10,412 | ||||
Other liabilities | 168 | ||||
Total non-current liabilities | 2,224,389 | ||||
Equity | |||||
Capital | 17 | ||||
Capital reserve | 1,068,195 | ||||
Other comprehensive income | 1,768 | ||||
Accumulated losses | (1,520,751) | ||||
Equity holders of parent | (450,771) | ||||
Non-controlling interest | (5,133) | ||||
Total equity | (455,904) | ||||
Total liabilities and equity | R$ 2383842 | ||||
Adjustment from adoption of IFRS 9 financial instruments [member] | |||||
Current assets | |||||
Trade accounts receivable | (165,457) | ||||
Contract asset | 168,949 | ||||
Total current assets | 3,492 | ||||
Non-current assets | |||||
Total assets | 3,492 | ||||
Equity | |||||
Accumulated losses | 3,492 | ||||
Equity holders of parent | 3,492 | ||||
Total equity | 3,492 | ||||
Total liabilities and equity | 3,492 | ||||
Adjustment from adoption of IFRS 15 Revenue from Contracts with Customers [member] | |||||
Current assets | |||||
Trade accounts receivable | (503) | ||||
Total current assets | (503) | ||||
Non-current assets | |||||
Total assets | (503) | ||||
Equity | |||||
Accumulated losses | (503) | ||||
Equity holders of parent | (503) | ||||
Total equity | (503) | ||||
Total liabilities and equity | (503) | ||||
Adjustment from adoption of IFRS15 Reversal of Rrevenue [member] | |||||
Current assets | |||||
Trade accounts receivable | (1,948) | ||||
Total current assets | (1,948) | ||||
Non-current assets | |||||
Total assets | (1,948) | ||||
Equity | |||||
Accumulated losses | (1,948) | ||||
Equity holders of parent | (1,948) | ||||
Total equity | (1,948) | ||||
Total liabilities and equity | (1,948) | ||||
IFRS 9 and IFRS 15 Deferred Income Tax and Social Contribution [member] | |||||
Non-current liabilities | |||||
Deferred taxes | 622 | ||||
Total non-current liabilities | 622 | ||||
Equity | |||||
Accumulated losses | (622) | ||||
Equity holders of parent | (622) | ||||
Total equity | R$ 622 |
Presentation of Financial St_19
Presentation of Financial Statements and Significant Accounting Practices Adopted of IFRS 15 impact on Profit and Loss (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of credit risk exposure [line items] | |||
Revenue from services rendered | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services | (979,183) | (942,255) | (1,003,748) |
Gross profit | 281,404 | 403,594 | 376,283 |
Operating income (expenses) General and administrative expenses | (327,286) | (256,532) | (231,050) |
Selling expenses, net | 5,324 | (6,641) | 10,495 |
Share of (loss) profit of an associate | (3,339) | (1,020) | 10,152 |
Other operating expenses, net | (576,506) | (31,125) | (80,551) |
Operating expenses | (901,807) | (295,318) | (290,954) |
Loss before finance income and expenses | (620,403) | 108,276 | 85,329 |
Finance costs, net | (251,693) | (532,175) | (397,133) |
Finance income | 116,313 | 108,281 | 51,663 |
Loss before income and social contribution taxes | (755,783) | (315,618) | (260,141) |
Current income and social contribution taxes | (41,623) | (17,543) | (54,337) |
(-) Deferred income and social contribution taxes | 76,488 | 371,084 | (49,755) |
Loss for the year from continuing operations | (720,918) | 37,923 | (364,233) |
Discontinued operations | |||
Loss after income and social contribution tax from discontinued operations | 30,454 | 14,342 | 3,288 |
Loss for the year | (690,464) | R$ 52265 | R$ 360945 |
Restated balance January 1st, 2018 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Revenue from services rendered | 1,260,587 | ||
Cost of services | (979,183) | ||
Gross profit | 281,404 | ||
Operating income (expenses) General and administrative expenses | (327,286) | ||
Selling expenses, net | 5,324 | ||
Share of (loss) profit of an associate | (3,339) | ||
Other operating expenses, net | (540,647) | ||
Operating expenses | (865,948) | ||
Loss before finance income and expenses | (584,544) | ||
Finance costs, net | (251,693) | ||
Finance income | 116,313 | ||
Loss before income and social contribution taxes | (719,924) | ||
Current income and social contribution taxes | (41,623) | ||
(-) Deferred income and social contribution taxes | 76,488 | ||
Loss for the year from continuing operations | (685,059) | ||
Discontinued operations | |||
Loss after income and social contribution tax from discontinued operations | (5,405) | ||
Loss for the year | (690,464) | ||
Adjustment IFRS 9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Selling expenses, net | (24,032) | ||
Operating expenses | (24,032) | ||
Loss before finance income and expenses | (24,032) | ||
Loss before income and social contribution taxes | (24,032) | ||
Loss for the year from continuing operations | (24,032) | ||
Discontinued operations | |||
Loss for the year | (24,032) | ||
Adjustment IFRS 15 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Revenue from services rendered | 23,509 | ||
Gross profit | 23,509 | ||
Loss before finance income and expenses | 23,509 | ||
Finance income | (11,138) | ||
Loss before income and social contribution taxes | 12,371 | ||
Loss for the year from continuing operations | 12,371 | ||
Discontinued operations | |||
Loss for the year | 12,371 | ||
Previously Reported [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Revenue from services rendered | 1,284,096 | ||
Cost of services | (979,183) | ||
Gross profit | 304,913 | ||
Operating income (expenses) General and administrative expenses | (327,286) | ||
Selling expenses, net | (18,708) | ||
Share of (loss) profit of an associate | (3,339) | ||
Other operating expenses, net | (540,647) | ||
Operating expenses | (889,980) | ||
Loss before finance income and expenses | (585,067) | ||
Finance costs, net | (251,693) | ||
Finance income | 105,175 | ||
Loss before income and social contribution taxes | (731,585) | ||
Current income and social contribution taxes | (41,623) | ||
(-) Deferred income and social contribution taxes | 76,488 | ||
Loss for the year from continuing operations | (696,720) | ||
Discontinued operations | |||
Loss after income and social contribution tax from discontinued operations | (5,405) | ||
Loss for the year | R$ 702125 |
Presentation of Financial St_20
Presentation of Financial Statements and Significant Accounting Practices Adopted of IFRS 15 impact on Basic and Diluted Earnings Per Share (Detail) - R$ / shares | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Earnings (loss) per share: | ||||
Basic, loss for the year attributable to equity holders of the parent (in Reais) | R$ 14.3032 | R$ 0.9596 | R$ 7.9057 | |
Diluted, loss for the year attributable to equity holders of the parent (in Reais) | (13.7076) | 0.9585 | (7.9057) | |
Loss per share from continuing operations | ||||
Basic, loss from continuing operations attributable to equity holders of the parent (in Reais) | (14.9299) | 0.6453 | (7.9777) | |
Diluted, loss from continuing operations attributable to equity holders of the parent (in Reais) | R$ 14.3082 | R$ 0.6446 | R$ 7.9777 | |
Adoption Of IFRS 9 And 15 [member] | ||||
Earnings (loss) per share: | ||||
Basic, loss for the year attributable to equity holders of the parent (in Reais) | R$ 0.26 | |||
Diluted, loss for the year attributable to equity holders of the parent (in Reais) | (0.24) | |||
Loss per share from continuing operations | ||||
Basic, loss from continuing operations attributable to equity holders of the parent (in Reais) | (0.30) | |||
Diluted, loss from continuing operations attributable to equity holders of the parent (in Reais) | R$ 0.28 |
Capital and Financial Risk Ma_3
Capital and Financial Risk Management - Additional Information (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Sep. 06, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of significant terms and conditions of trust capital securities [line Items] | ||||||
Working capital | R$ 1289800 | R$ 293400 | ||||
Capital deficiency | R$ 1149210 | R$ 455485 | R$ 455904 | R$ 737056 | R$ 381129 | |
Put option to sell shares | R$ 40300 |
Capital and Financial Risk Ma_4
Capital and Financial Risk Management - Capital Management (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of significant terms and conditions of trust capital securities [line Items] | |||||
Loans and financing | R$ 628297 | R$ 385514 | |||
Debentures | 966,386 | 1,068,979 | R$ 1665629 | ||
Cash and cash equivalents | (18,862) | R$ 84687 | (84,687) | (31,083) | |
Marketable securities | (42) | (42) | |||
Net debt | 1,575,779 | 1,369,764 | |||
Equity (capital deficiency) | R$ 1149210 | R$ 455485 | R$ 455904 | R$ 737056 | R$ 381129 |
Cash and Cash Equivalents - Cas
Cash and Cash Equivalents - Cash and Cash Equivalents (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of cash and cash equivalents [line items] | ||||
Cash | R$ 168 | R$ 170 | R$ 110 | |
Bank account | 4,262 | 44,123 | 2,861 | |
Bank Deposit Certificates | 14,432 | 40,394 | 28,112 | |
Total | R$ 18862 | R$ 84687 | R$ 84687 | R$ 31083 |
Cash and Cash Equivalents - C_2
Cash and Cash Equivalents - Cash and Cash Equivalents (Parenthetical) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of cash and cash equivalents [line items] | ||
Returns, percentage of CDI | 75.00% | 90.00% |
Cash and Cash Equivalents - C_3
Cash and Cash Equivalents - Cash and Cash Equivalents for the Purpose of Cash flow (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of cash and cash equivalents [line items] | |||||
Cash | R$ 168 | R$ 170 | R$ 110 | ||
Bank account | 4,262 | 44,123 | 2,861 | ||
Bank Deposit Certificates | 14,432 | 40,394 | 28,112 | ||
Cash and cash equivalents | 18,862 | R$ 84687 | 84,687 | 31,083 | |
Cash at banks and short-term deposits attributable to discontinued operations (note 10.2) | 1,655 | ||||
Total | R$ 20517 | R$ 84687 | R$ 31083 | R$ 47793 |
Trade Accounts Receivable - Sum
Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Description of trade accounts receivable [line items] | |||||
Trade accounts receivable | R$ 757991 | R$ 966827 | |||
Carbon credits | 7,306 | 2,998 | |||
Trade accounts receivable | 765,297 | 969,825 | |||
Adjustment to present value | (32,456) | (34,472) | |||
Allowance for doubtful accounts | (109,966) | (157,247) | R$ 155341 | R$ 168210 | |
Total | 622,875 | 778,106 | |||
Current | 501,821 | R$ 501329 | 669,237 | ||
Non-current | R$ 121054 | R$ 108869 | R$ 108869 |
Trade Accounts Receivable - S_2
Trade Accounts Receivable - Summary of Trade Accounts Receivable (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Description of trade accounts receivable [line items] | |
Discount rate | 8.50% |
Trade Accounts Receivable - S_3
Trade Accounts Receivable - Summary of Aging of Trade Accounts Receivable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | R$ 765297 | R$ 969825 |
Unbilled [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 168,949 | |
Current [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 327,327 | 386,030 |
Not later than one month [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 37,530 | 56,067 |
Later than one month and not later than two months [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 27,375 | 26,403 |
Later than two months and not later than three months [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 42,788 | 30,232 |
Later than three months and not later than six months [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 88,377 | 65,569 |
Later than six months and not later than one year [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | 60,698 | 79,328 |
2019 [member] | ||
Aging of trade accounts receivable [line items] | ||
Trade accounts receivable | R$ 181202 | R$ 157247 |
Trade Accounts Receivable - S_4
Trade Accounts Receivable - Summary of Changes in Allowance for Doubtful Accounts (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in allowance account for credit losses of financial assets [line items] | |||
Opening balance | R$ 157247 | R$ 155341 | R$ 168210 |
Additional allowance | (26,311) | (104,963) | (304,436) |
Reversal of allowance | 36,823 | 103,057 | 317,279 |
Transfer to discontinued operations | 497 | 26 | |
Write-off referring to actual losses | 32,780 | ||
Change in accounting practice | 3,492 | ||
Closing balance | R$ 109966 | R$ 157247 | R$ 155341 |
Trade Accounts Receivable - Add
Trade Accounts Receivable - Additional Information (Detail) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Reconciliation of changes in allowance account for credit losses of financial assets [line items] | |
Contract assets | R$ 120308 |
Taxes Recoverable - Summary of
Taxes Recoverable - Summary of Taxes Recoverable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Tax assets recoverable [line items] | |||
Corporate income tax (IRPJ) | R$ 29842 | R$ 56342 | |
Social contribution tax (CSLL) | 10,999 | 16,743 | |
Social security contribution tax (INSS) | 24,576 | 19,669 | |
Integration program (PIS) / Social security financing (COFINS) / Social contribution tax (CSLL) | 13,616 | 9,259 | |
Withholding income tax (IRRF) | 9,570 | 16,946 | |
PIS/COFINS recoverable on acquisition of assets | 24,566 | 13,099 | |
Other | 16,398 | 21,953 | |
Total | 129,567 | 154,011 | |
Current | 98,367 | R$ 101870 | 101,870 |
Non-current | R$ 31200 | R$ 52141 | R$ 52141 |
Taxes Recoverable - Summary o_2
Taxes Recoverable - Summary of Taxes Recoverable (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Tax assets recoverable [line items] | |
Social Security Tax (INSS) | 11.00% |
Withholding taxes - PIS, COFINS and CSLL | 4.65% |
Withholding Income Tax (IRRF) | 1.50% |
Other Receivables - Summary of
Other Receivables - Summary of Other Receivables (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other receivables current and non current [line items] | |||
Judicial deposits | R$ 18398 | R$ 19059 | |
Advances to employees | 1,026 | 2,204 | |
Accounts receivable from non-controlling interest | 8,930 | 10,334 | |
Advances to suppliers | 3,258 | 2,933 | |
Dividends receivable | 3,938 | 1,265 | |
Prepaid expenses | 6,127 | 7,165 | |
Other | 10,931 | 6,460 | |
Total | 52,608 | 49,420 | |
Current | 31,960 | R$ 34947 | 34,947 |
Non-current | 20,648 | R$ 14473 | R$ 14473 |
Receivable from sale of assets | R$ 5783 |
Related Parties - Summary of Re
Related Parties - Summary of Related Parties Activities (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Accounts receivable and payables [line items] | ||||
Assets | R$ 2218 | R$ 14518 | R$ 14518 | |
Revenue | 572 | 2,964 | R$ 408 | |
Liability | 82,126 | 82,788 | R$ 82788 | |
Trade accounts receivable | 580 | 1,189 | ||
Costs of services | 2,224 | 2,520 | 1,816 | |
Trade accounts payable | 503 | 2,087 | ||
Financial expenses | (251,693) | (532,175) | (397,133) | |
Debt | 966,386 | |||
Attend Ambiental [member] | ||||
Accounts receivable and payables [line items] | ||||
Assets | 10,960 | |||
Revenue | 37 | 64 | 69 | |
Trade accounts receivable | 37 | 12 | ||
Costs of services | 2,219 | 2,457 | 1,350 | |
Trade accounts payable | 456 | 2,045 | ||
Other Subsidiaries [member] | ||||
Accounts receivable and payables [line items] | ||||
Assets | 2,218 | 3,558 | ||
Hulsholf WQF [member] | ||||
Accounts receivable and payables [line items] | ||||
Liability | 21,518 | 37,349 | ||
Wilson Quintella Filho [member] | ||||
Accounts receivable and payables [line items] | ||||
Liability | 9,222 | 7,220 | ||
Angra Infra FIP [member] | ||||
Accounts receivable and payables [line items] | ||||
Liability | 41,662 | 37,884 | ||
Estre Coleta Holding [member] | ||||
Accounts receivable and payables [line items] | ||||
Liability | 7,272 | |||
Logistica Ambiental de Sao Paulo-Loga [member] | ||||
Accounts receivable and payables [line items] | ||||
Revenue | 417 | 2,894 | ||
Liability | 731 | |||
Trade accounts receivable | 417 | 1,143 | ||
Costs of services | 50 | |||
Trade accounts payable | 34 | 34 | ||
Other associated entities [member] | ||||
Accounts receivable and payables [line items] | ||||
Revenue | 33 | 6 | 92 | |
Liability | 1,721 | 335 | ||
Trade accounts receivable | 41 | 34 | ||
CGR Catanduva - Centro de Gerenciamento de Residuos Ltda. [member] | ||||
Accounts receivable and payables [line items] | ||||
Revenue | 85 | 247 | ||
Trade accounts receivable | 85 | |||
Terrestre Ambiental Ltda. [member] | ||||
Accounts receivable and payables [line items] | ||||
Costs of services | 5 | 3 | 55 | |
Trade accounts payable | 13 | 8 | ||
Unidade De Tratamento De Resduos SA [member] | ||||
Accounts receivable and payables [line items] | ||||
Costs of services | 60 | 361 | ||
Debentures [member] | ||||
Accounts receivable and payables [line items] | ||||
Financial expenses | (25,815) | (117,879) | R$ 134062 | |
Debt | 261,199 | 419,236 | ||
Private Debt Acknowledgment Instrument [member] | ||||
Accounts receivable and payables [line items] | ||||
Financial expenses | (55,444) | (1,275) | ||
Debt | R$ 581901 | R$ 357789 |
Related Parties - Summary of _2
Related Parties - Summary of Related Parties Activities (Parenthetical) (Detail) | Dec. 20, 2017USD ($) |
Accounts receivable and payables [line items] | |
Non-compete fee | $ 15,000 |
Hulsholf WQF [member] | |
Accounts receivable and payables [line items] | |
Non-compete fee | 12,450 |
Wilson Quintella Filho [member] | |
Accounts receivable and payables [line items] | |
Non-compete fee | $ 2,550 |
Related Parties - Summary of Ke
Related Parties - Summary of Key Management Personnel Compensation (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of key management personnel compensation [line items] | |||
Salaries and social security charges | R$ 14687 | R$ 7300 | R$ 6999 |
Bonuses and social security charges | 8,208 | 6,854 | 6,124 |
Stock options | 1,440 | 6,197 | 28,937 |
Total compensation | R$ 24335 | R$ 20351 | R$ 42060 |
Business Combination - Addition
Business Combination - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Combinations business [line items] | ||
Recognition of gain | R$ 724 | |
Catanduva [member] | ||
Combinations business [line items] | ||
Ownership percentage | 50.00% | |
Recognition of gain | R$ 724 | |
Net revenue from continuing operations | 5,960 | |
Profit before tax from continuing operations | 425 | |
Consolidated net revenue from continuing operations | 12,788 | |
Consolidated profit before tax from continuing operations | R$ 1251 |
Business Combination - Fair Val
Business Combination - Fair Value of Assets Acquired and Liabilities Assumed (Detail) R$ in Thousands | Dec. 31, 2018BRL (R$) |
ASSETS | |
Cash and cash equivalents | R$ 1513 |
Accounts receivable | 2,280 |
Taxes recoverable | 3,025 |
Other credits | 22 |
Property, plant and equipment | 14,125 |
Intangible assets - customer relationship | 2,195 |
Total assets | 23,160 |
LIABILITIES | |
Trade payables | (296) |
Loans and financing | (544) |
Tax installments | (5,900) |
Taxes payables | (1,858) |
Other liabilities | (1,373) |
Deferred taxes liability | (746) |
Total liabilities | (10,717) |
Total identifiable net assets at fair value | 12,443 |
Non-controlling interests at the proportionate share of the value of net identifiable assets acquired (50% of net assets) | R$ 6222 |
Investments and Assets and Li_3
Investments and Assets and Liabilities Held for Sale - Investments Classification (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Classification Of Investments [line items] | |||
Investments | R$ 7663 | R$ 7206 | |
Total investments | R$ 7663 | R$ 7206 | R$ 7206 |
Investments and Assets and Li_4
Investments and Assets and Liabilities Held for Sale - Ownership Interest in Associates and Key Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
Ownership interest and key information [line items] | |||||
Current assets | R$ 870754 | R$ 908728 | R$ 909749 | ||
Non-current Assets | 753,992 | 1,475,114 | 1,475,114 | ||
Current liabilities | 2,160,552 | 615,357 | 615,357 | ||
Non-current liabilities | 613,404 | 2,224,389 | 2,225,011 | ||
Equity | (1,149,210) | (455,904) | R$ 737056 | R$ 455485 | R$ 381129 |
Net revenue | 1,260,587 | 1,345,849 | 1,380,031 | ||
Net income (loss) | R$ 690464 | R$ 52265 | R$ 360945 | ||
Metropolitana Servicos Ambientais Ltda. [member] | |||||
Ownership interest and key information [line items] | |||||
Interest held | 50.00% | 50.00% | 50.00% | ||
Current assets | R$ 584 | R$ 5100 | |||
Non-current Assets | 15,330 | 10,764 | |||
Current liabilities | 221 | 1,078 | |||
Non-current liabilities | 367 | 373 | |||
Equity | 15,326 | 14,413 | |||
Net revenue | 0 | 0 | |||
Net income (loss) | R$ 6677 | R$ 1786 |
Investments and Assets and Li_5
Investments and Assets and Liabilities Held for Sale - Disclosure of Changes in Investments (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classification Of Investments [line items] | |||
Goodwill on investment | R$ 70185 | ||
Beginning balance | R$ 7206 | 44,467 | |
Business combination, from goodwill on investment | (71,117) | ||
Transfer of associates through goodwill | 932 | ||
Goodwill on investment | R$ 70185 | ||
Total investments | 7,206 | ||
Capital contribution and future capital contribution | 3,685 | 1,026 | |
Share of profit of an associate | (3,339) | (1,020) | 10,152 |
Business Combination | (4,572) | ||
Transfer of associates | (29,013) | ||
Other | 111 | (3,682) | |
Total investments | 7,663 | 7,206 | |
Ending balance | 7,663 | 7,206 | |
Metropolitana Servicos Ambientais Ltda. [member] | |||
Classification Of Investments [line items] | |||
Beginning balance | 7,206 | 6,578 | |
Capital contribution and future capital contribution | 3,685 | 1,026 | |
Share of profit of an associate | (3,339) | (893) | |
Other | 495 | ||
Other | 111 | ||
Ending balance | 7,663 | 7,206 | |
Logistica Ambiental de Sao Paulo-Loga [member] | |||
Classification Of Investments [line items] | |||
Beginning balance | 16,697 | ||
Transfer of associates | (18,073) | ||
Other | 1,376 | ||
Unidade de Tratamento de Residuos - UTR S.A. [member] | |||
Classification Of Investments [line items] | |||
Beginning balance | 6,643 | ||
Share of profit of an associate | (303) | ||
Other | (6,340) | ||
Catanduva [member] | |||
Classification Of Investments [line items] | |||
Beginning balance | 4,396 | ||
Share of profit of an associate | 176 | ||
Business Combination | (4,572) | ||
Terrestre Ambiental Ltda. [member] | |||
Classification Of Investments [line items] | |||
Beginning balance | 7,995 | ||
Transfer of associates | (8,098) | ||
Other | 103 | ||
Attend Ambiental Ltda. [member] | |||
Classification Of Investments [line items] | |||
Beginning balance | 2,158 | ||
Transfer of associates | (2,842) | ||
Other | 684 | ||
Goodwill on investment acquisition [member] | |||
Classification Of Investments [line items] | |||
Total investments | R$ 7206 | 114,652 | |
Capital contribution and future capital contribution | 1,026 | ||
Share of profit of an associate | (1,020) | ||
Business Combination on net investments | (4,572) | ||
Transfer of associates | (100,130) | ||
Other | (2,750) | ||
Total investments | R$ 7206 | R$ 114652 |
Investments and Assets and Li_6
Investments and Assets and Liabilities Held for Sale - Discontinued Operations (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Classification Of Investments [line items] | ||||
(Loss) profit after tax from discontinued operations | R$ 30454 | R$ 14342 | R$ 3288 | |
Liabilities, from discontinued operations | 41,201 | 23,787 | R$ 32992 | |
Assets, from discontinued operations | 81,457 | 6,580 | ||
CGR Dona Juana S.A. ESP [member] | ||||
Classification Of Investments [line items] | ||||
(Loss) profit after tax from discontinued operations | 27,169 | 687 | ||
Liabilities, from discontinued operations | 23,787 | |||
Estre Energia Renovavel [member] | ||||
Classification Of Investments [line items] | ||||
(Loss) profit after tax from discontinued operations | 1,665 | 3,245 | ||
Liabilities, from discontinued operations | 36,384 | |||
Assets, from discontinued operations | 56,452 | |||
Guatapara Energia SA [member] | ||||
Classification Of Investments [line items] | ||||
(Loss) profit after tax from discontinued operations | 1,620 | 3,064 | ||
Liabilities, from discontinued operations | 4,817 | |||
Assets, from discontinued operations | R$ 25005 | |||
Latte Participacoe [member] | ||||
Classification Of Investments [line items] | ||||
(Loss) profit after tax from discontinued operations | 7,346 | |||
Leccaros Participacoes S.A. [member] | ||||
Classification Of Investments [line items] | ||||
Assets, from discontinued operations | R$ 6580 |
Investments and Assets and Li_7
Investments and Assets and Liabilities Held for Sale - Disclosure of profit and loss on investments (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classification Of Investments [line items] | |||
Revenue from services rendered | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services | (979,183) | (942,255) | (1,003,748) |
Gross profit | 281,404 | 403,594 | 376,283 |
General and administrative expenses | (327,286) | (256,532) | (231,050) |
Other operating expenses, net | (576,506) | (31,125) | (80,551) |
Finance costs, net | (251,693) | (532,175) | (397,133) |
(-) Current income and social contribution taxes | (41,623) | (17,543) | (54,337) |
(Loss) profit for the year | (690,464) | 52,265 | (360,945) |
Assets and liabilities classified as held for sale [member] | CGR Dona Juana S.A. ESP [member] | |||
Classification Of Investments [line items] | |||
Revenue from services rendered | 54,782 | 69,384 | 52,000 |
Cost of services | (45,027) | (56,384) | (38,807) |
Gross profit | 9,755 | 13,000 | 13,193 |
General and administrative expenses | (6,723) | (5,904) | (4,856) |
Other operating expenses, net | (15,934) | (1,707) | (1,253) |
Finance costs, net | (3,663) | (4,083) | (6,076) |
(-) Current income and social contribution taxes | (474) | 41 | (927) |
(Loss) profit for the year | R$ 17039 | R$ 1347 | R$ 81 |
Investments and Assets and Li_8
Investments and Assets and Liabilities Held for Sale - Main Classes of Assets and Liabilities Classified as Held for Sale (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||||
Cash and cash equivalents | R$ 18862 | R$ 84687 | R$ 84687 | R$ 31083 | |
Trade accounts receivable | 622,875 | 778,106 | |||
Taxes recoverable | 98,367 | 101,870 | 101,870 | ||
Total current assets | 870,754 | 909,749 | 908,728 | ||
Non-current assets | |||||
Property, plant and equipment | 512,065 | 689,451 | 689,451 | 694,453 | |
Intangible assets | 58,991 | 588,238 | 588,238 | 553,832 | |
Total non-current assets | 753,992 | 1,475,114 | 1,475,114 | ||
Total assets | 1,624,746 | 2,384,883 | 2,383,842 | ||
Current liabilities | |||||
Loans and financing | 601,475 | 14,139 | 14,139 | ||
Trade accounts payable | 173,339 | 128,113 | 128,113 | ||
Labor payable | 98,519 | 117,925 | 117,925 | ||
Tax liabilities | 151,686 | 169,505 | 169,505 | ||
Other current liabilities | 19,786 | 32,992 | |||
Total current liabilities | 2,160,552 | 615,357 | 615,357 | ||
Non-current liabilities | 613,404 | 2,225,011 | 2,224,389 | ||
Capital | 17 | 17 | 17 | ||
Accumulated losses | (2,183,405) | (1,520,332) | (1,520,751) | ||
Total equity | (1,149,210) | (455,485) | (455,904) | R$ 737056 | R$ 381129 |
Total liabilities and equity | R$ 1624746 | R$ 2384883 | 2,383,842 | ||
Assets and liabilities classified as held for sale [member] | CGR Dona Juana S.A. ESP [member] | |||||
Current assets | |||||
Cash and cash equivalents | 3,092 | ||||
Trade accounts receivable | 7,581 | ||||
Taxes recoverable | 436 | ||||
Advances to suppliers | 4,305 | ||||
Other current assets | 2,818 | ||||
Total current assets | 18,232 | ||||
Non-current assets | |||||
Property, plant and equipment | 8,862 | ||||
Intangible assets | 6,821 | ||||
Other current assets | 49 | ||||
Total non-current assets | 15,732 | ||||
Total assets | 33,964 | ||||
Current liabilities | |||||
Loans and financing | 29,714 | ||||
Trade accounts payable | 21,481 | ||||
Labor payable | 863 | ||||
Tax liabilities | 6,010 | ||||
Other current liabilities | 10,367 | ||||
Total current liabilities | 68,435 | ||||
Non-current liabilities | 0 | ||||
Capital | 6,858 | ||||
Accumulated losses | (41,329) | ||||
Total equity | (34,471) | ||||
Total liabilities and equity | R$ 33964 |
Investments and Assets and Li_9
Investments and Assets and Liabilities Held for Sale - Net Cash Flow (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets and Liabilities Held for Sale [line items] | |||
Operating activities | R$ 20999 | R$ 243293 | R$ 213488 |
Investing activities | (86,877) | (200,316) | (166,718) |
Financing activities | 1,708 | 10,627 | (63,480) |
Net cash generated/(used) | (64,170) | 53,604 | (16,710) |
Assets and liabilities classified as held for sale [member] | CGR Dona Juana S.A. ESP [member] | |||
Assets and Liabilities Held for Sale [line items] | |||
Operating activities | 22,274 | 27,404 | 26,477 |
Investing activities | (15,911) | (17,675) | (14,216) |
Financing activities | (3,562) | (8,053) | (13,115) |
Net cash generated/(used) | R$ 2801 | R$ 1676 | R$ 854 |
Investments and Assets and L_10
Investments and Assets and Liabilities Held for Sale - Additional Information (Detail) - Leccaros Participacoes S.A. [member] R$ in Thousands | Apr. 23, 2018BRL (R$) | Dec. 31, 2017BRL (R$) |
Classification Of Investments [line items] | ||
Net assets | R$ 6580 | |
Net assets attributable to equity holders | 3,283 | |
Gains on sale of investments | 37,567 | |
Gain on sale of investments attributable to equity holders | R$ 18784 | |
Subsequent events [member] | ||
Classification Of Investments [line items] | ||
Sale of ownership interest | 50.00% | |
Total selling price | R$ 22067 | |
Cash received | 10,000 | |
Cash yet to be received | R$ 12067 | |
Number of installments | 12 |
Investments and Assets and L_11
Investments and Assets and Liabilities Held for Sale - Subsidiaries Profit or Loss Related to Energy Business Unit (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Discontinued Operations [line items] | |||
Revenue from services rendered | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services | (979,183) | (942,255) | (1,003,748) |
Gross profit | 281,404 | 403,594 | 376,283 |
General and administrative expenses | (327,286) | (256,532) | (231,050) |
Other operating income (expenses), net | (576,506) | (31,125) | (80,551) |
Finance income (costs), net | (135,380) | (423,894) | (345,470) |
Current and deferred income and social contribution taxes | (256,966) | (107,310) | (88,447) |
Profit (loss) for the year from discontinued operation | 30,454 | 14,342 | 3,288 |
Guatapara Energia SA [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Revenue from services rendered | 9,115 | 8,251 | |
Cost of services | (5,614) | (4,725) | |
General and administrative expenses | (299) | (180) | |
Other operating income (expenses), net | 1,252 | 2,482 | |
Finance income (costs), net | (799) | (1,007) | |
Profit (loss) for the year from discontinued operation | 1,620 | 3,064 | |
Estre Energia Renovavel Part. S.A. [member] | |||
Disclosure of Discontinued Operations [line items] | |||
General and administrative expenses | (1,111) | (666) | |
Other operating income (expenses), net | 3,297 | 1,329 | |
Finance income (costs), net | 878 | (1,906) | |
Discontinued operations [member] | Guatapara Energia SA [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Revenue from services rendered | 8,659 | 9,115 | 8,251 |
Cost of services | (6,916) | (5,614) | (4,725) |
Gross profit | 1,743 | 3,501 | 3,526 |
General and administrative expenses | (164) | (299) | (180) |
Other operating income (expenses), net | 811 | 1,252 | 2,482 |
Finance income (costs), net | (24) | (799) | (1,007) |
Current and deferred income and social contribution taxes | (746) | (410) | (331) |
Profit (loss) for the year from discontinued operation | 1,620 | 3,245 | 4,490 |
Discontinued operations [member] | Estre Energia Renovavel Part. S.A. [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Revenue from services rendered | 18,310 | 10,383 | 4,750 |
Cost of services | (8,975) | (5,891) | (3,862) |
Gross profit | 9,335 | 4,492 | 888 |
General and administrative expenses | (1,933) | (1,284) | (703) |
Other operating income (expenses), net | (788) | 18 | 133 |
Finance income (costs), net | (4,365) | 149 | (793) |
Current and deferred income and social contribution taxes | (584) | (311) | (768) |
Profit (loss) for the year from discontinued operation | R$ 1665 | R$ 3064 | R$ 1243 |
Investments and Assets and L_12
Investments and Assets and Liabilities Held for Sale - Main Classes of Assets and Liabilities of Subsidiaries Related to Energy Business Unit Classified as Held for Sale (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||||
Cash and cash equivalents | R$ 18862 | R$ 84687 | R$ 84687 | R$ 31083 | |
Trade accounts receivable | 622,875 | 778,106 | |||
Total current assets | 870,754 | 909,749 | 908,728 | ||
Non-current assets | |||||
Property, plant and equipment | 512,065 | 689,451 | 689,451 | 694,453 | |
Total non-current assets | 753,992 | 1,475,114 | 1,475,114 | ||
Total assets | 1,624,746 | 2,384,883 | 2,383,842 | ||
Current liabilities | |||||
Trade accounts payable | 173,339 | 128,113 | 128,113 | ||
Labor payable | 98,519 | 117,925 | 117,925 | ||
Tax liabilities | 151,686 | 169,505 | 169,505 | ||
Other current liabilities | 19,786 | 32,992 | |||
Total current liabilities | 2,160,552 | 615,357 | 615,357 | ||
Non-current liabilities | |||||
Tax liabilities | 362,277 | 395,784 | 395,784 | ||
Non-current liabilities | 613,404 | 2,225,011 | 2,224,389 | ||
Capital | 17 | 17 | 17 | ||
Reserves | 1,094,656 | 1,068,195 | 1,068,195 | ||
Total equity | (1,149,210) | (455,485) | (455,904) | (737,056) | R$ 381129 |
Total liabilities and equity | 1,624,746 | 2,384,883 | 2,383,842 | ||
Non-current liabilities | 613,404 | 2,225,011 | 2,224,389 | ||
Capital | 17 | 17 | 17 | ||
Reserves | 1,094,656 | 1,068,195 | 1,068,195 | ||
Total equity | (1,149,210) | (455,485) | (455,904) | (737,056) | R$ 381129 |
Total liabilities and equity | 1,624,746 | R$ 2384883 | 2,383,842 | ||
Guatapara Energia SA [member] | |||||
Current assets | |||||
Cash and cash equivalents | 763 | 39 | |||
Trade accounts receivable | 1,305 | 690 | |||
Other current assets | 745 | 1,114 | |||
Total current assets | 2,814 | 3,056 | |||
Non-current assets | |||||
Property, plant and equipment | 23,048 | ||||
Total non-current assets | 23,048 | 20,905 | |||
Total assets | 25,862 | 23,961 | |||
Current liabilities | |||||
Trade accounts payable | 2,168 | 3,310 | |||
Tax liabilities | 178 | 382 | |||
Other current liabilities | 3,072 | 2,301 | |||
Total current liabilities | 5,418 | 5,993 | |||
Non-current liabilities | |||||
Capital | 10,682 | 10,682 | |||
Reserves | 483 | ||||
Total equity | 20,444 | 17,968 | |||
Total liabilities and equity | 25,862 | 23,961 | |||
Capital | 10,682 | 10,682 | |||
Reserves | 483 | ||||
Total equity | 20,444 | 17,968 | |||
Total liabilities and equity | 25,862 | 23,961 | |||
Estre Energia Renovavel Part. S.A. [member] | |||||
Current assets | |||||
Cash and cash equivalents | 1,703 | 33 | |||
Total current assets | 1,712 | 41 | |||
Non-current assets | |||||
Property, plant and equipment | 8,754 | 23,253 | |||
Total non-current assets | 32,833 | 33,160 | |||
Total assets | 34,545 | 33,201 | |||
Current liabilities | |||||
Trade accounts payable | 44 | 4 | |||
Labor payable | 87 | 80 | |||
Tax liabilities | 4 | 73 | |||
Other current liabilities | 300 | 375 | |||
Total current liabilities | 20,935 | 22,031 | |||
Non-current liabilities | |||||
Capital | 12,000 | 12,000 | |||
Total equity | 13,610 | 11,170 | |||
Total liabilities and equity | 34,545 | 33,201 | |||
Capital | 12,000 | 12,000 | |||
Total equity | 13,610 | 11,170 | |||
Total liabilities and equity | 34,545 | R$ 33201 | |||
Assets and liabilities classified as held for sale [member] | Guatapara Energia SA [member] | |||||
Current assets | |||||
Cash and cash equivalents | 560 | 763 | |||
Trade accounts receivable | 1,536 | 1,305 | |||
Intercompany trade accounts receivable Group Estre | 1,427 | ||||
Other current assets | 823 | 746 | |||
Total current assets | 4,346 | 2,814 | |||
Non-current assets | |||||
Property, plant and equipment | 21,938 | 23,048 | |||
Other current assets | 148 | ||||
Total non-current assets | 22,086 | 23,048 | |||
Total assets | 26,432 | 25,862 | |||
Current liabilities | |||||
Trade accounts payable | 1,785 | 2,167 | |||
Tax liabilities | 360 | 178 | |||
Other current liabilities | 2,672 | 3,072 | |||
Total current liabilities | 4,817 | 5,417 | |||
Non-current liabilities | |||||
Capital | 10,682 | 10,682 | |||
Reserves | 10,933 | 9,763 | |||
Total equity | 21,615 | 20,445 | |||
Total liabilities and equity | 26,432 | 25,862 | |||
Capital | 10,682 | 10,682 | |||
Reserves | 10,933 | 9,763 | |||
Total equity | 21,615 | 20,445 | |||
Total liabilities and equity | 26,432 | 25,862 | |||
Assets and liabilities classified as held for sale [member] | Estre Energia Renovavel Part. S.A. [member] | |||||
Current assets | |||||
Cash and cash equivalents | 1,095 | 2,721 | |||
Trade accounts receivable | 1,323 | 2,180 | |||
Intercompany trade accounts receivable Group Estre | 850 | ||||
Other current assets | 325 | 160 | |||
Total current assets | 3,593 | 5,061 | |||
Non-current assets | |||||
Property, plant and equipment | 53,693 | 57,605 | |||
Other current assets | 16 | 16 | |||
Total non-current assets | 53,709 | 57,621 | |||
Total assets | 57,302 | 62,682 | |||
Current liabilities | |||||
Trade accounts payable | 14,190 | 16,413 | |||
Labor payable | 152 | 87 | |||
Tax liabilities | 2,416 | 1,731 | |||
Loans from related parties with Group Estre | 6,407 | 20,500 | |||
Other current liabilities | 16,889 | 7,671 | |||
Total current liabilities | 40,054 | 46,402 | |||
Non-current liabilities | |||||
Tax liabilities | 2,737 | 2,670 | |||
Non-current liabilities | 2,737 | 2,670 | |||
Capital | 12,000 | 12,000 | |||
Reserves | 2,511 | 1,610 | |||
Total equity | 14,511 | 13,610 | |||
Total liabilities and equity | 57,302 | 62,682 | |||
Non-current liabilities | 2,737 | 2,670 | |||
Capital | 12,000 | 12,000 | |||
Reserves | 2,511 | 1,610 | |||
Total equity | 14,511 | 13,610 | |||
Total liabilities and equity | R$ 57302 | R$ 62682 |
Investments and Assets and L_13
Investments and Assets and Liabilities Held for Sale - Net Cash Flows Incurred by Subsidiaries Related to Energy Business Unit (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Discontinued Operations [line items] | |||
Operating activities | R$ 20999 | R$ 243293 | R$ 213488 |
Investing activities | (86,877) | (200,316) | (166,718) |
Financing activities | 1,708 | 10,627 | (63,480) |
Net cash generated/(used) | (64,170) | 53,604 | (16,710) |
Guatapara Energia SA [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Operating activities | 5,162 | (4,400) | |
Investing activities | (4,399) | 2,519 | |
Financing activities | 2,500 | ||
Net cash generated/(used) | 763 | 619 | |
Estre Energia Renovavel Part. S.A. [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Operating activities | 1,670 | (33,063) | |
Investing activities | 33 | 33,143 | |
Financing activities | 1 | ||
Net cash generated/(used) | 1,703 | 81 | |
Discontinued operations [member] | Guatapara Energia SA [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Operating activities | 3,097 | 5,162 | (4,400) |
Investing activities | (3,300) | (4,399) | 2,519 |
Financing activities | 2,500 | ||
Net cash generated/(used) | (203) | 763 | 619 |
Discontinued operations [member] | Estre Energia Renovavel Part. S.A. [member] | |||
Disclosure of Discontinued Operations [line items] | |||
Operating activities | (433) | 25,076 | (4,971) |
Investing activities | (1,193) | (22,496) | (16,576) |
Financing activities | 21,499 | ||
Net cash generated/(used) | R$ 1626 | R$ 2580 | R$ 48 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property Plant and Equipment (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | R$ 512065 | R$ 689451 | R$ 689451 | R$ 694453 |
Landfills - land and implementation of cells [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 8.35% | 8.00% | ||
Property, plant and equipment | R$ 233559 | R$ 282655 | ||
Buildings and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 5.28% | |||
Property, plant and equipment | R$ 103790 | 123,514 | ||
Biogas burning facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 5.00% | |||
Property, plant and equipment | R$ 6341 | 6,682 | ||
Operating equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 9.04% | |||
Property, plant and equipment | R$ 53139 | 117,171 | ||
Furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 10.20% | |||
Property, plant and equipment | R$ 3108 | 3,629 | ||
Computers and peripherals [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 16.95% | |||
Property, plant and equipment | R$ 2331 | 2,647 | ||
Vehicles [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 16.72% | |||
Property, plant and equipment | R$ 43288 | 69,718 | ||
Aircraft [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 9,191 | |||
UVR - Waste recovery unit [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 7.52% | |||
Property, plant and equipment | R$ 30418 | 38,033 | ||
Other property, plant and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a. % | 14.93% | |||
Property, plant and equipment | R$ 49 | 89 | ||
Advances to suppliers [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,222 | 4,743 | ||
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 34,820 | 31,379 | ||
Cost [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,282,066 | 1,462,263 | 1,389,513 | |
Cost [member] | Landfills - land and implementation of cells [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 562,063 | 599,985 | 592,092 | |
Cost [member] | Buildings and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 168,538 | 186,661 | 180,179 | |
Cost [member] | Biogas burning facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 9,337 | 9,212 | 9,255 | |
Cost [member] | Operating equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 136,144 | 221,726 | 191,545 | |
Cost [member] | Furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 8,693 | 9,438 | 8,878 | |
Cost [member] | Computers and peripherals [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 11,569 | 11,367 | 10,579 | |
Cost [member] | Vehicles [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 293,853 | 309,513 | 300,422 | |
Cost [member] | Aircraft [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 16,791 | 16,791 | ||
Cost [member] | UVR - Waste recovery unit [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 55,359 | 60,963 | 60,700 | |
Cost [member] | Other property, plant and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 468 | 485 | 456 | |
Cost [member] | Advances to suppliers [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,222 | 4,743 | 5,177 | |
Cost [member] | Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 34,820 | 31,379 | 13,439 | |
Accumulated depreciation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (770,001) | (772,812) | (695,060) | |
Accumulated depreciation [member] | Landfills - land and implementation of cells [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (328,504) | (317,330) | (308,520) | |
Accumulated depreciation [member] | Buildings and facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (64,748) | (63,147) | (52,871) | |
Accumulated depreciation [member] | Biogas burning facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (2,996) | (2,530) | (2,070) | |
Accumulated depreciation [member] | Operating equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (83,005) | (104,555) | (82,648) | |
Accumulated depreciation [member] | Furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (5,585) | (5,809) | (4,961) | |
Accumulated depreciation [member] | Computers and peripherals [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (9,238) | (8,720) | (7,466) | |
Accumulated depreciation [member] | Vehicles [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (250,565) | (239,795) | (211,527) | |
Accumulated depreciation [member] | Aircraft [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (7,600) | (6,335) | ||
Accumulated depreciation [member] | UVR - Waste recovery unit [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (24,941) | (22,930) | (18,325) | |
Accumulated depreciation [member] | Other property, plant and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | R$ 419 | R$ 396 | R$ 337 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Property Plant and Equipment (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | R$ 512065 | R$ 689451 | R$ 689451 | R$ 694453 |
Landfills - land and implementation of cells [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Weighted average rate p.a.% | 8.35% | 8.00% | ||
Property, plant and equipment | R$ 233559 | R$ 282655 | ||
Waste Sorting Machine (Tyrannosaurus) [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 17,789 | |||
Turbines and Energy Generators [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | R$ 4855 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment under finance lease agreements | R$ 42867 | R$ 17280 |
Property, Plant and Equipment_4
Property, Plant and Equipment - Changes in Property, Plant and Equipment (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | R$ 689451 | R$ 694453 |
Additions | 31,522 | 35,096 |
Write-offs | (56,001) | (15,390) |
Impairment | (62,375) | (34,432) |
Transfer | (6,580) | |
Additions related to business combination | (90,532) | 16,304 |
Ending balance | 512,065 | 689,451 |
Landfills - land and implementation of cells [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 282,655 | |
Ending balance | 233,559 | 282,655 |
Buildings and facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 123,514 | |
Ending balance | 103,790 | 123,514 |
Biogas burning facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6,682 | |
Ending balance | 6,341 | 6,682 |
Operating equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 117,171 | |
Ending balance | 53,139 | 117,171 |
Furniture and fixtures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 3,629 | |
Ending balance | 3,108 | 3,629 |
Computers and peripherals [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,647 | |
Ending balance | 2,331 | 2,647 |
Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 69,718 | |
Ending balance | 43,288 | 69,718 |
Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 9,191 | |
Ending balance | 9,191 | |
UVR - Waste recovery unit [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 38,033 | |
Ending balance | 30,418 | 38,033 |
Other property, plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 89 | |
Ending balance | 49 | 89 |
Advances to suppliers [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,743 | |
Ending balance | 1,222 | 4,743 |
Construction in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 31,379 | |
Ending balance | 34,820 | 31,379 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,462,263 | 1,389,513 |
Additions | 140,127 | 156,889 |
Write-offs | (97,623) | (59,108) |
Impairment | (113,850) | (36,750) |
Transfer | (6,580) | |
Additions related to business combination | (108,851) | 18,299 |
Ending balance | 1,282,066 | 1,462,263 |
Cost [member] | Landfills - land and implementation of cells [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 599,985 | 592,092 |
Additions | 76,008 | 83,843 |
Write-offs | (23,836) | (52,170) |
Impairment | (78,020) | (33,110) |
Transfer | 3,871 | (6,580) |
Additions related to business combination | (15,945) | 15,910 |
Ending balance | 562,063 | 599,985 |
Cost [member] | Buildings and facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 186,661 | 180,179 |
Additions | 6,216 | 7,247 |
Write-offs | (7,992) | (323) |
Impairment | (8,159) | (1,107) |
Transfer | (2,112) | |
Additions related to business combination | (6,076) | 665 |
Ending balance | 168,538 | 186,661 |
Cost [member] | Biogas burning facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 9,212 | 9,255 |
Impairment | (7) | (43) |
Transfer | 132 | |
Ending balance | 9,337 | 9,212 |
Cost [member] | Operating equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 221,726 | 191,545 |
Additions | 11,235 | 13,787 |
Write-offs | (30,154) | (557) |
Impairment | (19,018) | (1,742) |
Transfer | 15,668 | 17,627 |
Additions related to business combination | (63,313) | 1,066 |
Ending balance | 136,144 | 221,726 |
Cost [member] | Furniture and fixtures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 9,438 | 8,878 |
Additions | 548 | 477 |
Write-offs | (142) | (10) |
Impairment | (1,308) | (87) |
Transfer | 187 | |
Additions related to business combination | (30) | 180 |
Ending balance | 8,693 | 9,438 |
Cost [member] | Computers and peripherals [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 11,367 | 10,579 |
Additions | 772 | 815 |
Write-offs | (60) | (4) |
Impairment | (669) | (131) |
Transfer | 169 | |
Additions related to business combination | (10) | 108 |
Ending balance | 11,569 | 11,367 |
Cost [member] | Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 309,513 | 300,422 |
Additions | 21,917 | 12,965 |
Write-offs | (11,892) | (3,751) |
Impairment | (5,504) | (493) |
Transfer | (19,326) | |
Additions related to business combination | (855) | 370 |
Ending balance | 293,853 | 309,513 |
Cost [member] | Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 16,791 | 16,791 |
Write-offs | (16,791) | |
Ending balance | 16,791 | |
Cost [member] | UVR - Waste recovery unit [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 60,963 | 60,700 |
Additions | 90 | 263 |
Write-offs | (5,741) | |
Transfer | 47 | |
Ending balance | 55,359 | 60,963 |
Cost [member] | Other property, plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 485 | 456 |
Additions | 5 | 29 |
Impairment | (23) | |
Transfer | 1 | |
Ending balance | 468 | 485 |
Cost [member] | Advances to suppliers [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,743 | 5,177 |
Additions | 1,109 | 1,896 |
Write-offs | (692) | (2,293) |
Impairment | (37) | |
Transfer | (3,938) | |
Ending balance | 1,222 | 4,743 |
Cost [member] | Construction in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 31,379 | 13,439 |
Additions | 22,227 | 35,567 |
Write-offs | (323) | |
Impairment | (1,142) | |
Transfer | 5,301 | (17,627) |
Additions related to business combination | (22,622) | |
Ending balance | 34,820 | 31,379 |
Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (772,812) | (695,060) |
Additions | (108,605) | (121,793) |
Write-offs | 41,622 | 43,718 |
Impairment | 51,475 | 2,318 |
Additions related to business combination | 18,319 | (1,995) |
Ending balance | (770,001) | (772,812) |
Accumulated depreciation [member] | Landfills - land and implementation of cells [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (317,330) | (308,520) |
Additions | (49,555) | (48,026) |
Write-offs | 549 | 39,966 |
Impairment | 31,231 | 1,228 |
Transfer | (390) | |
Additions related to business combination | 6,991 | (1,978) |
Ending balance | (328,504) | (317,330) |
Accumulated depreciation [member] | Buildings and facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (63,147) | (52,871) |
Additions | (8,570) | (10,441) |
Write-offs | 3,728 | 16 |
Impairment | 2,494 | 150 |
Additions related to business combination | 747 | (1) |
Ending balance | (64,748) | (63,147) |
Accumulated depreciation [member] | Biogas burning facilities [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (2,530) | (2,070) |
Additions | (469) | (468) |
Impairment | 3 | 8 |
Ending balance | (2,996) | (2,530) |
Accumulated depreciation [member] | Operating equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (104,555) | (82,648) |
Additions | (16,667) | (23,033) |
Write-offs | 17,591 | 462 |
Impairment | 10,739 | 667 |
Additions related to business combination | 9,887 | (3) |
Ending balance | (83,005) | (104,555) |
Accumulated depreciation [member] | Furniture and fixtures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (5,809) | (4,961) |
Additions | (790) | (898) |
Write-offs | 31 | 5 |
Impairment | 975 | 49 |
Additions related to business combination | 8 | (4) |
Ending balance | (5,585) | (5,809) |
Accumulated depreciation [member] | Computers and peripherals [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (8,720) | (7,466) |
Additions | (1,202) | (1,367) |
Write-offs | 43 | 2 |
Impairment | 632 | 120 |
Additions related to business combination | 9 | (9) |
Ending balance | (9,238) | (8,720) |
Accumulated depreciation [member] | Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (239,795) | (211,527) |
Additions | (26,167) | (31,631) |
Write-offs | 8,952 | 3,267 |
Impairment | 5,378 | 96 |
Transfer | 390 | |
Additions related to business combination | 677 | |
Ending balance | (250,565) | (239,795) |
Accumulated depreciation [member] | Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (7,600) | (6,335) |
Additions | (528) | (1,265) |
Write-offs | 8,128 | |
Ending balance | (7,600) | |
Accumulated depreciation [member] | UVR - Waste recovery unit [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (22,930) | (18,325) |
Additions | (4,611) | (4,605) |
Write-offs | 2,600 | |
Ending balance | (24,941) | (22,930) |
Accumulated depreciation [member] | Other property, plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (396) | (337) |
Additions | (46) | (59) |
Impairment | 23 | |
Ending balance | R$ 419 | R$ 396 |
Intangible Assets - Changes in
Intangible Assets - Changes in Intangible Assets (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | R$ 58991 | R$ 588238 | R$ 588238 | R$ 553832 |
Software [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Useful life | 60 Months | |||
Accumulated amortization/impairment | R$ 23319 | 28,232 | ||
Other intangible assets [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 16,084 | 38,050 | ||
Customer relationship [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 737 | 30,808 | ||
Licences [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 906 | 24,705 | ||
Goodwill [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 17,945 | 466,443 | ||
Cost [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 131,356 | 717,579 | 668,105 | |
Cost [member] | Software [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 51,263 | 48,857 | 22,893 | |
Cost [member] | Other intangible assets [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 24,106 | 44,688 | 20,621 | |
Cost [member] | Customer relationship [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 36,667 | 132,886 | 130,690 | |
Cost [member] | Licences [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 1,375 | 24,705 | 24,705 | |
Cost [member] | Goodwill [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | 17,945 | 466,443 | 469,196 | |
Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | (72,365) | (129,341) | (114,273) | |
Accumulated depreciation, amortisation and impairment [member] | Software [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | (27,944) | (20,625) | (13,099) | |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | (8,022) | (6,638) | (6,638) | |
Accumulated depreciation, amortisation and impairment [member] | Customer relationship [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | (35,930) | R$ 102078 | R$ 94536 | |
Accumulated depreciation, amortisation and impairment [member] | Licences [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Accumulated amortization/impairment | R$ 469 |
Intangible Assets - Goodwill Al
Intangible Assets - Goodwill Allocation to CGU (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | R$ 588238 | R$ 553832 |
Additions | (23,848) | 37,890 |
Write-offs | (20,085) | (731) |
Impairment | (485,314) | (2,753) |
Ending balance | 58,991 | 588,238 |
Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 28,232 | |
Ending balance | 23,319 | 28,232 |
Other intangible assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 38,050 | |
Ending balance | 16,084 | 38,050 |
Customer relationship [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 30,808 | |
Ending balance | 737 | 30,808 |
Licences [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 24,705 | |
Ending balance | 906 | 24,705 |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 466,443 | |
Ending balance | 17,945 | 466,443 |
Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 717,579 | 668,105 |
Additions | 3,015 | 53,142 |
Write-offs | (27,366) | (915) |
Impairment | (561,872) | (2,753) |
Ending balance | 131,356 | 717,579 |
Cost [member] | Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 48,857 | 22,893 |
Additions | 3,015 | 26,879 |
Write-offs | (915) | |
Impairment | (609) | |
Ending balance | 51,263 | 48,857 |
Cost [member] | Other intangible assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 44,688 | 20,621 |
Additions | 24,067 | |
Write-offs | (13,967) | |
Transfer | (6,615) | |
Ending balance | 24,106 | 44,688 |
Cost [member] | Customer relationship [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 132,886 | 130,690 |
Additions | 2,196 | |
Write-offs | (2,196) | |
Impairment | (94,023) | |
Ending balance | 36,667 | 132,886 |
Cost [member] | Licences [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 24,705 | 24,705 |
Write-offs | (11,203) | |
Impairment | (12,127) | |
Ending balance | 1,375 | 24,705 |
Cost [member] | Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 466,443 | 469,196 |
Transfer | 6,615 | |
Impairment | (455,113) | (2,753) |
Ending balance | 17,945 | 466,443 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (129,341) | (114,273) |
Additions | (26,863) | (15,252) |
Write-offs | 7,281 | 184 |
Impairment | 76,558 | |
Ending balance | (72,365) | (129,341) |
Accumulated depreciation, amortisation and impairment [member] | Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (20,625) | (13,099) |
Additions | (7,878) | (7,710) |
Write-offs | 184 | |
Impairment | 559 | |
Ending balance | (27,944) | (20,625) |
Accumulated depreciation, amortisation and impairment [member] | Other intangible assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (6,638) | (6,638) |
Additions | (8,022) | |
Write-offs | 6,638 | |
Ending balance | (8,022) | (6,638) |
Accumulated depreciation, amortisation and impairment [member] | Customer relationship [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (102,078) | (94,536) |
Additions | (4,472) | (7,542) |
Write-offs | 643 | |
Transfer | 391 | |
Impairment | 69,586 | |
Ending balance | (35,930) | R$ 102078 |
Accumulated depreciation, amortisation and impairment [member] | Licences [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Additions | (6,491) | |
Transfer | (391) | |
Impairment | 6,413 | |
Ending balance | R$ 469 |
Intangible Assets - Impairment
Intangible Assets - Impairment Test for Cash Generating Units (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Disclosure of information for cash-generating units [line items] | |||||
Assets of CGU | R$ 1624746 | R$ 1624746 | R$ 2383842 | R$ 2384883 | |
Assets impairment charge | R$ 62375 | R$ 34432 | |||
Goodwill balance | R$ 70185 | ||||
Geo Vision Solues Ambientais E Energia SA [member] | |||||
Disclosure of information for cash-generating units [line items] | |||||
Projection period | 01/01/18 to 12/31/22 | 01/01/19 to 12/31/23 | |||
Discount rate | 15.66% | 15.66% | 15.20% | ||
Perpetuity | 4.68% | 4.68% | 7.00% | ||
Assets of CGU | R$ 144261 | R$ 144261 | R$ 180728 | ||
Goodwill tested for impairment | 242,489 | 242,489 | 242,803 | ||
Carrying amount of CGU tested for impairment | 386,750 | 386,750 | 423,531 | ||
Value in use | R$ 144261 | 144,261 | 477,855 | ||
Goodwill and intangible impairment charge | R$ 242489 | (314) | |||
Assets impairment charge | (90) | ||||
Goodwill balance | R$ 242489 | ||||
Resicontrol Solucoes Ambientais Ltda. [member] | |||||
Disclosure of information for cash-generating units [line items] | |||||
Projection period | 01/01/18 to 12/31/22 | 01/01/19 to 12/31/23 | |||
Discount rate | 15.66% | 15.66% | 15.20% | ||
Perpetuity | 4.68% | 4.68% | 7.00% | ||
Assets of CGU | R$ 94210 | R$ 94210 | R$ 53992 | ||
Goodwill tested for impairment | 87,639 | 87,639 | 87,639 | ||
Carrying amount of CGU tested for impairment | 181,849 | 181,849 | 141,631 | ||
Value in use | 112,155 | 112,155 | 267,109 | ||
Goodwill and intangible impairment charge | (69,694) | ||||
Goodwill balance | R$ 17945 | R$ 17945 | R$ 87639 | ||
Viva Ambiental e Servicos S.A. [member] | |||||
Disclosure of information for cash-generating units [line items] | |||||
Projection period | 01/01/18 to 12/31/22 | 01/01/19 to 11/30/38 | |||
Discount rate | 15.66% | 15.66% | 15.20% | ||
Perpetuity | 7.00% | ||||
Assets of CGU | R$ 226618 | R$ 226618 | R$ 235557 | ||
Goodwill tested for impairment | 136,315 | 136,315 | 136,315 | ||
Carrying amount of CGU tested for impairment | 362,933 | 362,933 | 371,872 | ||
Value in use | R$ 115377 | 115,377 | 484,793 | ||
Goodwill and intangible impairment charge | (166,516) | ||||
Assets impairment charge | R$ 51419 | ||||
Goodwill balance | R$ 136315 | ||||
CTR Itaborai [member] | |||||
Disclosure of information for cash-generating units [line items] | |||||
Projection period | 01/01/18 to 12/31/22 | 01/01/19 to 12/31/23 | |||
Discount rate | 15.66% | 15.66% | 15.20% | ||
Perpetuity | 4.68% | 4.68% | 7.00% | ||
Assets of CGU | R$ 26267 | R$ 26267 | R$ 41420 | ||
Goodwill tested for impairment | 2,439 | ||||
Carrying amount of CGU tested for impairment | 26,267 | 26,267 | 43,859 | ||
Value in use | R$ 4215 | (4,215) | (11,956) | ||
Goodwill and intangible impairment charge | (2,439) | ||||
Assets impairment charge | R$ 9626 | (34,342) | |||
Ambiental Sul Brasil Central Regional De Tratamento De Residuos Ltda [member] | |||||
Disclosure of information for cash-generating units [line items] | |||||
Projection period | 01/01/19 to 12/31/23 | ||||
Discount rate | 15.66% | 15.66% | |||
Perpetuity | 4.68% | 4.68% | |||
Assets of CGU | R$ 7053 | R$ 7053 | |||
Goodwill tested for impairment | 6,615 | 6,615 | |||
Carrying amount of CGU tested for impairment | 13,668 | 13,668 | |||
Value in use | 5,723 | 5,723 | |||
Goodwill and intangible impairment charge | (6,615) | ||||
Assets impairment charge | (1,330) | ||||
Cash-generating units [member] | |||||
Disclosure of information for cash-generating units [line items] | |||||
Assets of CGU | 498,409 | 498,409 | 511,697 | ||
Goodwill tested for impairment | 473,058 | 473,058 | 469,196 | ||
Carrying amount of CGU tested for impairment | 971,467 | 971,467 | 980,893 | ||
Value in use | 373,301 | 373,301 | 1,217,801 | ||
Goodwill and intangible impairment charge | (485,314) | (2,753) | |||
Assets impairment charge | (62,375) | (34,432) | |||
Goodwill balance | R$ 17945 | R$ 17945 | R$ 466443 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Disclosure of intangible assets and goodwill [line items] | ||||
Total impairment | R$ 547689 | |||
Intangible assets and goodwill | R$ 58991 | R$ 588238 | R$ 588238 | R$ 553832 |
Impairment of PP&E | R$ 62375 | |||
Percentage of increase on discount rate | 0.50% | |||
ercentage of (decrease) on growth rate in perpetuity | 0.50% | |||
Goodwill Impairment [member] | ||||
Disclosure of intangible assets and goodwill [line items] | ||||
Intangible assets and goodwill | R$ 485314 |
Loans and Financing - Breakdown
Loans and Financing - Breakdown of Loans and Financing (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 628297 | R$ 385514 | |
Current | 601,475 | R$ 14139 | 14,139 |
Non-current | 26,822 | R$ 371375 | 371,375 |
Working Capital - CDI + 2.0% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 581901 | 357,789 | |
Additional charges | 2.00% | ||
Annual charges | CDI + 2.0% p.a. | ||
Working Capital - CDI + 0.05% p.m. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 2850 | 2,541 | |
Additional charges | 0.05% | ||
Annual charges | CDI + 0.05% p.m. | ||
Working Capital - CDI + 8.7% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 5027 | ||
Additional charges | 8.70% | ||
Annual charges | CDI + 8.7% p.a. | ||
BNDES - TJLP + 3.9% to 5.5% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | 1,496 | ||
Annual charges | TJLP + 3.9% to 5.5% p.a. | ||
BNDES - TJLP + 10.30% to 12.9% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | 31 | ||
Annual charges | TJLP + 10.3% to 12.9% p.a. | ||
BNDES - TJLP + 1.0% to 12.9% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | 197 | ||
Annual charges | TJLP + 1.0% to 12.9% p.a. | ||
BNDES - TJLP + 2.5% to 4.6% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 4 | 2,643 | |
Annual charges | TJLP + 2.5% to 4.6% p.a. | ||
BNDES - TJLP + 5.1% to 9.0% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 302 | 1,915 | |
Annual charges | TJLP + 5.1% to 9.0% p.a. | ||
Lease - CDI + 1.92% p.m to 13.60% p.m [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Loans and financing | R$ 38213 | R$ 18902 | |
Annual charges | 1.92% p.m to 13.60% p.m. | ||
Bottom of range [member] | BNDES - TJLP + 3.9% to 5.5% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 3.90% | ||
Bottom of range [member] | BNDES - TJLP + 10.30% to 12.9% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 10.30% | ||
Bottom of range [member] | BNDES - TJLP + 1.0% to 12.9% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 1.00% | ||
Bottom of range [member] | BNDES - TJLP + 2.5% to 4.6% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 2.50% | ||
Bottom of range [member] | BNDES - TJLP + 5.1% to 9.0% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 5.10% | ||
Bottom of range [member] | Lease - CDI + 1.92% p.m to 13.60% p.m [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 1.92% | ||
Top of range [member] | BNDES - TJLP + 3.9% to 5.5% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 5.50% | ||
Top of range [member] | BNDES - TJLP + 10.30% to 12.9% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 12.90% | ||
Top of range [member] | BNDES - TJLP + 1.0% to 12.9% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 12.90% | ||
Top of range [member] | BNDES - TJLP + 2.5% to 4.6% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 4.60% | ||
Top of range [member] | BNDES - TJLP + 5.1% to 9.0% p.a. [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 9.00% | ||
Top of range [member] | Lease - CDI + 1.92% p.m to 13.60% p.m [member] | |||
Disclosure of schedule of borrowings [line items] | |||
Additional charges | 13.60% |
Loans and Financing - Repayment
Loans and Financing - Repayment of Loans and Financing (Detail) - BRL (R$) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of schedule of borrowings [line items] | ||
Repayments of non-current borrowings | R$ 26822 | R$ 371375 |
2019 [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Repayments of non-current borrowings | 1,709 | |
2020 [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Repayments of non-current borrowings | 12,130 | 24,088 |
2021 [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Repayments of non-current borrowings | 8,314 | 40,005 |
2022 [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Repayments of non-current borrowings | 4,940 | R$ 305573 |
2023 [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Repayments of non-current borrowings | R$ 1438 |
Loans and Financing - Future Mi
Loans and Financing - Future Minimum Lease Payments and Present Book Value (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of schedule of borrowings [line items] | ||
Minimum lease payments | R$ 64907 | R$ 50043 |
Less amounts representing financial charges | (26,694) | (31,141) |
Present value of minimum lease payments | 38,213 | 18,902 |
Present value of minimum lease payments | 55,347 | 49,165 |
Not later than one year [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Minimum lease payments | 23,363 | 12,637 |
Present value of minimum lease payments | 19,041 | 12,146 |
Later than one year and not later than five years [member] | ||
Disclosure of schedule of borrowings [line items] | ||
Minimum lease payments | 41,544 | 37,406 |
Present value of minimum lease payments | R$ 36306 | R$ 37019 |
Debentures - Summary of Debentu
Debentures - Summary of Debentures (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 21, 2017 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 14, 2012 | |
Disclosure of detailed information about borrowings [line items] | |||||||
Debentures | R$ 966386 | R$ 1068979 | R$ 1665629 | ||||
Debentures current | 966,386 | ||||||
Debentures non current | R$ 1068979 | 1,068,979 | |||||
First issue unsecured subordinated debentures [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debentures | R$ 261199 | 419,236 | 906,729 | ||||
Annual charges | CDI + Interest from 2.0% | ||||||
Interest rate basis | 2.00% | 2.00% | 2.95% | ||||
Second issue unsecured subordinated debentures [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debentures | R$ 705187 | R$ 649743 | R$ 761307 | ||||
Annual charges | CDI + Interest from 2.0% | ||||||
Interest rate basis | 2.00% | 2.00% | 2.60% |
Debentures - Additional Informa
Debentures - Additional Information (Detail) R$ in Thousands, $ in Millions | Dec. 21, 2017BRL (R$)Installment | Dec. 07, 2017USD ($) | Aug. 10, 2017USD ($) | Dec. 14, 2012BRL (R$)DebentureInstallment | Dec. 31, 2018BRL (R$) | Dec. 21, 2018 | Dec. 31, 2017BRL (R$) | Dec. 21, 2017Installment | Dec. 31, 2012 | Jun. 27, 2011BRL (R$)Debenture |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayment | R$ 365967 | |||||||||
Discount | 91,492 | |||||||||
Minimum Debt Service Coverage Ratio | The Debt Service Coverage Ratio shall be equal to or greater than 1.2x if the Net Debt / EBITDA ratio is greater than 2.8x and shall be equal to or greater than 1.0x if the ratio of Net Debt / EBITDA is equal to or lower than 2.8x. | |||||||||
Maximum [Member] | Not later than one year [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Percentage of Net Debt to EBITDA | 400.00% | |||||||||
Maximum [Member] | December 31, 2019 and subsequent fiscal years [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Percentage of Net Debt to EBITDA | 350.00% | |||||||||
Maximum [Member] | Later than one year and not later than three years [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Percentage of Net Debt to EBITDA | 300.00% | |||||||||
First issue unsecured subordinated debentures [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Number of debentures issued | Debenture | 2,720 | |||||||||
Face value of debentures | R$ 250 | |||||||||
Interest rate basis | 2.00% | 2.00% | 2.00% | 2.95% | ||||||
Accelerated maturity clause for payment of dividends and interest on equity in excess of | R$ 45000 | |||||||||
Accelerated maturity clause maximum amount of assets disposed of or given in guarantee | R$ 25000 | |||||||||
Prepayment of debentures | $ | $ 200 | |||||||||
Repayment | R$ 199086 | (199,086) | ||||||||
Discount | R$ 49772 | 49,772 | ||||||||
Discount rate added to prepaid amounts | 25.00% | 25.00% | ||||||||
Maturity period | 8 years | |||||||||
Number of installments, repayment of principal | Installment | 11 | 11 | ||||||||
Grace period for payment of principal | 3 years | |||||||||
Grace period for payment of interest | 2 years | |||||||||
Interest accrued period | 18 months | |||||||||
Percentage of discount effective interest rate | Below a 10% | |||||||||
First issue unsecured subordinated debentures [member] | Bottom of range [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Prepayment of debentures | $ | $ 100 | |||||||||
First issue unsecured subordinated debentures [member] | Top of range [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Prepayment of debentures | $ | $ 200 | |||||||||
Second issue unsecured subordinated debentures [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Number of debentures issued | Debenture | 2,600 | |||||||||
Face value of debentures | R$ 250 | |||||||||
Interest rate basis | 2.00% | 2.60% | 2.00% | 2.00% | ||||||
Accelerated maturity clause for payment of dividends and interest on equity in excess of | R$ 30000 | |||||||||
Accelerated maturity clause maximum amount of assets disposed of or given in guarantee | R$ 100000 | |||||||||
Repayment | R$ 166881 | (166,881) | ||||||||
Discount | R$ 41720 | R$ 41720 | ||||||||
Discount rate added to prepaid amounts | 25.00% | 25.00% | ||||||||
Maturity period | 8 years | P5Y | ||||||||
Number of installments, repayment of principal | Installment | 11 | 7 | 11 | |||||||
Grace period for payment of principal | 3 years | |||||||||
Grace period for payment of interest | 2 years | |||||||||
Interest accrued period | 18 months | |||||||||
Percentage of discount effective interest rate | Below a 10% | |||||||||
Number of debentures authorized | Debenture | 3,000 |
Debentures - Schedule of Aggreg
Debentures - Schedule of Aggregation of Debentures (Detail) - BRL (R$) R$ in Thousands | Dec. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | |||
Beginning balance | R$ 1068979 | R$ 1665629 | |
Interest | 81,259 | 214,916 | |
Debt acknowledgement instrument | (183,852) | (356,514) | |
Transaction costs | 2,407 | ||
Repayment | (365,967) | ||
Discount | (91,492) | ||
Ending balances | 966,386 | 1,068,979 | |
First issue unsecured subordinated debentures [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Beginning balance | 419,236 | 906,729 | |
Interest | 25,815 | 117,879 | |
Debt acknowledgement instrument | (183,852) | (356,514) | |
Repayment | R$ 199086 | (199,086) | |
Discount | (49,772) | (49,772) | |
Ending balances | 261,199 | 419,236 | |
Second issue unsecured subordinated debentures [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Beginning balance | 649,743 | 761,307 | |
Interest | 55,444 | 97,037 | |
Repayment | 166,881 | (166,881) | |
Discount | R$ 41720 | (41,720) | |
Ending balances | R$ 705187 | 649,743 | |
Transaction costs [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Beginning balance | (2,407) | ||
Transaction costs | R$ 2407 |
Trade Accounts Payable - Summar
Trade Accounts Payable - Summary of Trade Accounts Payable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Trade And Other Current Payables [line items] | |||
Invoices payable | R$ 126003 | R$ 116218 | |
Services to be billed | 46,833 | 9,808 | |
Related parties | 503 | 2,087 | |
Total | R$ 173339 | R$ 128113 | R$ 128113 |
Trade Accounts Payable - Summ_2
Trade Accounts Payable - Summary of Aging of Trade Accounts Payable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Trade And Other Current Payables [line items] | |||
Trade accounts payable | R$ 173339 | R$ 128113 | R$ 128113 |
Current [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | 87,465 | 51,288 | |
Not later than three months [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | 28,393 | 41,291 | |
Later than one month and not later than two months [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | 15,137 | 6,987 | |
Later than two months and not later than three months [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | 7,650 | 6,749 | |
Later than three months and not later than six months [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | 7,703 | 10,366 | |
Later than six months and not later than one year [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | 4,133 | 4,487 | |
2019 [member] | |||
Trade And Other Current Payables [line items] | |||
Trade accounts payable | R$ 22858 | R$ 6945 |
Labor Payable - Summary of Labo
Labor Payable - Summary of Labor Payable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Description of labor payable [line items] | |||
Salaries | R$ 11345 | R$ 14227 | |
Bonus and profit sharing payable | 1,565 | 22,459 | |
Social charges | |||
FGTS | 2,544 | 3,258 | |
INSS - Social security | 32,192 | 17,327 | |
IRRF | 1,914 | 2,879 | |
Sundry taxes | 6,398 | 7,622 | |
Accrual for vacation pay and related charges | 42,561 | 50,153 | |
Total | R$ 98519 | R$ 117925 | R$ 117925 |
Tax Liabilities - Description o
Tax Liabilities - Description of Tax Liabilities (Detail) R$ in Thousands, $ in Thousands | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Jan. 01, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) | Aug. 10, 2017USD ($) | May 31, 2017BRL (R$) |
Current and noncurrent tax liabilities [line items] | |||||||
Total | R$ 513963 | R$ 565289 | |||||
Current | 151,686 | R$ 169505 | 169,505 | ||||
Non-current | 362,277 | R$ 395784 | 395,784 | ||||
PIS payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 17,304 | 16,585 | |||||
COFINS Payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 79,733 | 76,323 | |||||
Service tax payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 11,792 | 13,708 | |||||
Withholding service tax payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 403 | 361 | |||||
IRPJ payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 12,363 | 12,200 | |||||
CSLL payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 4,888 | 2,728 | |||||
PISCOFINSCSLL Payable [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 208 | 457 | |||||
Installment payment of federal taxes [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 33,082 | 16,544 | |||||
Installment Payment of Taxes - PRT [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 273,682 | 123,467 | R$ 159611 | ||||
Current | 46,455 | ||||||
Non-current | 227,227 | ||||||
Installment Payment of Taxes - PERT [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 8,543 | $ 8,543 | 243,849 | $ 243,849 | $ 134,947 | ||
Current | $ | 603 | ||||||
Non-current | 7,940 | $ 7,940 | |||||
Installment payment of local taxes [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 15,720 | 21,537 | |||||
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 11,415 | 12,597 | |||||
Withholding INSS [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 147 | 203 | |||||
Withholding IRPJ [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | 353 | 569 | |||||
Other Taxes [member] | |||||||
Current and noncurrent tax liabilities [line items] | |||||||
Total | R$ 44330 | R$ 24161 |
Tax Liabilities - Description_2
Tax Liabilities - Description of Tax Liabilities (Parenthetical) (Detail) R$ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2017Installment | Dec. 31, 2018BRL (R$)Installment | Dec. 31, 2017 | Dec. 31, 2016 | |
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 34.00% | 34.00% | 34.00% | |
Percentage of gross revenue to declare income tax on presumed profit basis | 32.00% | |||
PIS payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 7.60% | |||
Annual gross revenue to declare income taxes on presumed profit basis | R$ | R$ 78 | |||
Standard tax rate under allowed legislation to declare income taxes on presumeed profit basis | 3.00% | |||
Tax on applicable purchases withheld from payments made to suppliers | 4.65% | |||
COFINS Payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 1.65% | |||
Standard tax rate under allowed legislation to declare income taxes on presumeed profit basis | 0.65% | |||
Tax on applicable purchases withheld from payments made to suppliers | 4.65% | |||
IRPJ payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 25.00% | |||
CSLL payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 9.00% | |||
Tax on applicable purchases withheld from payments made to suppliers | 4.65% | |||
Installment Payment of Taxes - PRT [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Percentage of payment paid in installments | 24.00% | |||
Number of installments | 24 | 24 | ||
Period for payment of residual tax liability | 0.00% | 0.00% | ||
Withholding INSS [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Withholding percentage of amount billed by suppliers | 11.00% | |||
Withholding IRPJ [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Withholding percentage of amount billed by suppliers | 1.50% | |||
Services tax payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Number of installments | 36 | |||
Bottom of range [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Number of installments | 30 | |||
Bottom of range [member] | Services tax payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 2.00% | |||
Number of installments | 24 | |||
Top of range [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Number of installments | 60 | |||
Top of range [member] | Services tax payable [member] | ||||
Current and noncurrent tax liabilities [line items] | ||||
Standard tax rate | 5.00% | |||
Number of installments | 120 |
Tax Liabilities - Summary of Ta
Tax Liabilities - Summary of Tax Regulation Program (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | May 31, 2017 |
Tax liability recognized [line items] | ||||
Tax liability | R$ 513963 | R$ 565289 | ||
Non-current, tax liability | 362,277 | R$ 395784 | 395,784 | |
Installment Payment of Taxes - PRT [member] | ||||
Tax liability recognized [line items] | ||||
Federal taxes past due recorded in prior years | R$ 160605 | |||
Legal claims in progress recorded in 2017 | 174,028 | |||
Tax installments in progress already recorded in prior years | 195,094 | |||
Total tax liability to be settled under the program | 529,727 | |||
Tax loss carry forward not used to settle the tax liability under the program | 87,826 | (370,116) | ||
Tax liability | 273,682 | R$ 123467 | R$ 159611 | |
Non-current, tax liability | 227,227 | |||
Installment Payment of Taxes - PRT [member] | 2022 [member] | ||||
Tax liability recognized [line items] | ||||
Non-current, tax liability | 46,455 | |||
Installment Payment of Taxes - PRT [member] | 2023 [member] | ||||
Tax liability recognized [line items] | ||||
Non-current, tax liability | 46,455 | |||
Installment Payment of Taxes - PRT [member] | 2022 [member] | ||||
Tax liability recognized [line items] | ||||
Non-current, tax liability | 46,455 | |||
Installment Payment of Taxes - PRT [member] | Later Than Six Years [member] | ||||
Tax liability recognized [line items] | ||||
Non-current, tax liability | R$ 87912 |
Tax Liabilities - Summary of _2
Tax Liabilities - Summary of Tax Regulation Program (Parenthetical) (Detail) - Installment Payment of Taxes - PRT [member] R$ in Thousands | 1 Months Ended | 12 Months Ended |
May 31, 2017BRL (R$)Installment | Dec. 31, 2018 | |
Tax liability recognized [line items] | ||
Tax liabilities to be paid in 24 installment | R$ 125415 | |
Number of installments | 24 | 24 |
Tax liabilities to be paid in 60 installment | R$ 34196 | |
Number of installments for payments of residual | Installment | 60 |
Tax Liabilities - Summary of Ex
Tax Liabilities - Summary of Expected Timing of Outflows (Detail) - BRL (R$) R$ in Thousands | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2018 | May 31, 2017 | |
Tax liability recognized [line items] | ||||
Beginning balance | R$ 565289 | |||
Balance as of December 31, 2018 | R$ 565289 | 513,963 | ||
Current | 169,505 | 151,686 | R$ 169505 | |
Non-current | 395,784 | 362,277 | R$ 395784 | |
Installment Payment of Taxes - PRT [member] | ||||
Tax liability recognized [line items] | ||||
Beginning balance | 159,611 | 123,467 | ||
IOF Inclusion - Sep / 17 - transferred from PERT | 70,995 | |||
Addition of processes in the PRT | 2,417 | |||
Additional tax liabilities included in the PRT | 40,288 | |||
Tax loss carry forward not used to settle the tax liability under the program | 87,826 | R$ 370116 | ||
Payments | (42,310) | (68,984) | ||
Accrued interest | 6,166 | 28,338 | ||
Transfer to PERT - CSLL | (10,433) | |||
Reversal of interest and fine | (232) | |||
Balance as of December 31, 2018 | R$ 123467 | 273,682 | ||
Current | 46,455 | |||
Non-current | R$ 227227 |
Tax Liabilities - Additional In
Tax Liabilities - Additional Information (Detail) R$ in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($)Installment | Dec. 31, 2013Installment | Jan. 01, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | |
Tax liability recognized [line items] | |||||
Tax loss carry forwards | R$ | R$ 44 | R$ 44 | |||
Installment Payment of Taxes - PERT [member] | |||||
Tax liability recognized [line items] | |||||
Number of installments | Installment | 120 | ||||
Tax losses used to compensate tax payable | R$ 80083 | $ 80,083 | |||
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | |||||
Tax liability recognized [line items] | |||||
Number of installments | Installment | 180 | ||||
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | Unused tax losses [member] | |||||
Tax liability recognized [line items] | |||||
Tax loss carry forwards | R$ | R$ 5605 |
Tax Liabilities - Summary of Sp
Tax Liabilities - Summary of Special Tax Regularization Program (Detail) R$ in Thousands, $ in Thousands | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2018USD ($) | Jan. 01, 2018BRL (R$) | |
Tax liability recognized [line items] | |||||||
Beginning balance | R$ | R$ 565289 | ||||||
Tax credits used | R$ | 7,743 | R$ 370116 | |||||
Balance as of December 31, 2018 | R$ | R$ 513963 | 513,963 | 565,289 | ||||
Current | R$ | 151,686 | 151,686 | 169,505 | R$ 169505 | |||
Non-current | R$ | 362,277 | 362,277 | 395,784 | R$ 395784 | |||
Installment Payment of Taxes - PERT [member] | |||||||
Tax liability recognized [line items] | |||||||
Beginning balance | 243,849 | $ 243,849 | |||||
IOF Inclusion - Sep / 17 - transfer to PRT | (70,995) | ||||||
Tax provision balance in prior periods included Aug, 2017 | $ 6,727 | ||||||
Interest reversal - PERT | (1,803) | ||||||
IOF Inclusion | 103,907 | ||||||
Use of unused tax loss carry forwards Aug, 2017 (Note 22) | (4,452) | ||||||
Payments | (5,721) | (18,011) | |||||
Interest | 8,441 | 2,460 | |||||
Transfer from PRT - CSLL | 10,433 | ||||||
Income and social contribution tax variation at PERT consolidation (Note 22) | $ 3,860 | ||||||
Reversal of taxes not available for consolidation | (47,999) | ||||||
Reversal of taxes not due | (5,951) | ||||||
Penalties, fines and interests reversal | (17,409) | ||||||
Tax losses used to compensate tax payable | (80,083) | (80,083) | |||||
Tax credits used | (9,808) | ||||||
Balance as of December 31, 2018 | $ 243,849 | 8,543 | 8,543 | $ 8,543 | R$ 243849 | ||
Current | 603 | ||||||
Non-current | R$ 7940 | R$ 7940 | $ 7,940 |
Tax Liabilities - Summary of _3
Tax Liabilities - Summary of Expected Timing of Non-current Outflows (Detail) R$ in Thousands, $ in Thousands | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($) | Jan. 01, 2018BRL (R$) | Dec. 31, 2017BRL (R$) |
Tax liability recognized [line items] | ||||
Non-current tax liability | R$ 362277 | R$ 395784 | R$ 395784 | |
Installment Payment of Taxes - PERT [member] | ||||
Tax liability recognized [line items] | ||||
Non-current tax liability | 7,940 | $ 7,940 | ||
2022 [member] | Installment Payment of Taxes - PERT [member] | ||||
Tax liability recognized [line items] | ||||
Non-current tax liability | 603 | |||
2023 [member] | Installment Payment of Taxes - PERT [member] | ||||
Tax liability recognized [line items] | ||||
Non-current tax liability | 603 | |||
2022 [member] | Installment Payment of Taxes - PERT [member] | ||||
Tax liability recognized [line items] | ||||
Non-current tax liability | 603 | |||
Later Than Six Years [member] | Installment Payment of Taxes - PERT [member] | ||||
Tax liability recognized [line items] | ||||
Non-current tax liability | R$ 6131 |
Tax Liabilities - Summary of El
Tax Liabilities - Summary of Eligible Tax Debt Balances (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Tax liability recognized [line items] | ||
Balance payable | R$ 513963 | R$ 565289 |
Tax liability | 513,963 | 565,289 |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | ||
Tax liability recognized [line items] | ||
Principal | 62,965 | 62,965 |
Fine and SELIC interest | 79,085 | 79,085 |
Reduction due to amnesty of interest, fines and legal charges | (44,055) | (44,055) |
Repayments by prepayments | (30,428) | (30,428) |
Payment in installments | (29,825) | (28,623) |
SELIC restatement | 1,513 | 1,494 |
Use of unused tax loss carry forwards | (27,840) | (29,213) |
Reversion of unused tax loss carry forwards from REFIS to PRT (Note 22) | 1,372 | |
Balance payable | 11,415 | 12,597 |
Tax liability | 11,415 | 12,597 |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | Not later than one year [member] | ||
Tax liability recognized [line items] | ||
Balance payable | 1,675 | |
Tax liability | 1,675 | |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | 2020 [member] | ||
Tax liability recognized [line items] | ||
Balance payable | 1,694 | 1,675 |
Tax liability | 1,694 | 1,675 |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | 2021 [member] | ||
Tax liability recognized [line items] | ||
Balance payable | 1,694 | 1,675 |
Tax liability | 1,694 | 1,675 |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | 2022 [member] | ||
Tax liability recognized [line items] | ||
Balance payable | 1,694 | 1,675 |
Tax liability | 1,694 | 1,675 |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | 2023 [member] | ||
Tax liability recognized [line items] | ||
Balance payable | 1,694 | 1,675 |
Tax liability | 1,694 | 1,675 |
Installment Payment of Taxes-Law No. 12,996/14 Refis Copa [member] | Later than five years [member] | ||
Tax liability recognized [line items] | ||
Balance payable | 4,639 | 4,222 |
Tax liability | R$ 4639 | R$ 4222 |
Accounts Payable for Land and_3
Accounts Payable for Land and Intangible Asset Acquisition - Summary of Accounts Payable for Land and Intangible Asset Acquisition (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about investment property [line items] | |||
Land and intangible asset acquisition | R$ 10184 | R$ 19377 | |
Current | 5,380 | R$ 8965 | 8,965 |
Non-current | 4,804 | R$ 10412 | 10,412 |
Land and intangible asset acquisition [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Land and intangible asset acquisition | 15,925 | 25,376 | |
Present value adjustment [member] | |||
Disclosure of detailed information about investment property [line items] | |||
Land and intangible asset acquisition | R$ 5741 | R$ 5999 |
Accounts Payable for Land and_4
Accounts Payable for Land and Intangible Asset Acquisition - Summary of Accounts Payable for Land and Intangible Asset Acquisition (Parenthetical) (Detail) R$ in Thousands | Dec. 27, 2013BRL (R$) | May 31, 2016BRL (R$) | Jun. 30, 2006BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) |
Disclosure of detailed information about investment property [line items] | ||||||
Assets acquired | R$ 31522 | R$ 35096 | ||||
Cash paid on acquisition of plot of land | 122,114 | 144,977 | R$ 136431 | |||
Outstanding amount of land acquisition | R$ 10184 | R$ 19377 | ||||
Discount rate | 15.66% | 15.26% | ||||
Landfills - land and implementation of cells [member] | Banco Pine S.A. [member] | Jardim Ldia [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Assets acquired | R$ 30000 | |||||
Cash paid on acquisition of plot of land | R$ 1325 | |||||
Number of installments | 60 | |||||
Outstanding amount of land acquisition | R$ 3292 | R$ 8682 | ||||
T-Systems [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Assets acquired | R$ 31265 | |||||
Number of installments | 72 | |||||
Intangible assets | 24,591 | |||||
Outstanding amount of land acquisition | R$ 6892 | R$ 10695 | ||||
Masa - Comrcio e Servios de Terraplanagem Ltda [member] | Landfills - land and implementation of cells [member] | ||||||
Disclosure of detailed information about investment property [line items] | ||||||
Assets acquired | R$ 4400 | |||||
Legal late payment interest | 1.00% | |||||
Legal late payment interest expense | R$ 9584 | |||||
Number of installments | 24 | |||||
First payment amount | R$ 399 | |||||
Outstanding amount of land acquisition | R$ 2870 |
Provision for Landfill Closur_2
Provision for Landfill Closure - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balances by Landfill [line items] | ||
Expected landfill closure costs - discount rate to present value | 15.66% | 15.26% |
Provision for Landfill Closur_3
Provision for Landfill Closure - Summary of Balances by Landfill Closure (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Balances by Landfill [line items] | |||||
Current | R$ 5613 | R$ 20651 | R$ 20651 | ||
Provision for Landfill Closure [member] | |||||
Balances by Landfill [line items] | |||||
Total | 102,404 | 113,532 | R$ 101620 | R$ 83071 | |
Current | 5,613 | 20,651 | |||
Non-current | 96,791 | 92,881 | |||
Provision for Landfill Closure [member] | Paulinia [member] | |||||
Balances by Landfill [line items] | |||||
Total | 42,379 | 58,688 | |||
Provision for Landfill Closure [member] | Paulnia II [member] | |||||
Balances by Landfill [line items] | |||||
Total | 5,008 | 3,656 | |||
Provision for Landfill Closure [member] | Curitiba [member] | |||||
Balances by Landfill [line items] | |||||
Total | 25,690 | 19,053 | |||
Provision for Landfill Closure [member] | Itapevi [member] | |||||
Balances by Landfill [line items] | |||||
Total | 8,917 | 11,663 | |||
Provision for Landfill Closure [member] | Aracaju [member] | |||||
Balances by Landfill [line items] | |||||
Total | 509 | 356 | |||
Provision for Landfill Closure [member] | CGR Guatapara [member] | |||||
Balances by Landfill [line items] | |||||
Total | 6,858 | 6,106 | |||
Provision for Landfill Closure [member] | CGR Guatapara Jardinopolis [member] | |||||
Balances by Landfill [line items] | |||||
Total | 1,754 | 2,764 | |||
Provision for Landfill Closure [member] | CGR Guatapara Piratininga [member] | |||||
Balances by Landfill [line items] | |||||
Total | 647 | 368 | |||
Provision for Landfill Closure [member] | Resicontrol Tremembe [member] | |||||
Balances by Landfill [line items] | |||||
Total | 2,184 | 3,506 | |||
Provision for Landfill Closure [member] | Maceio [member] | |||||
Balances by Landfill [line items] | |||||
Total | 7,220 | 4,919 | |||
Provision for Landfill Closure [member] | Feira De Santana [member] | |||||
Balances by Landfill [line items] | |||||
Total | R$ 1238 | 2,446 | |||
Provision for Landfill Closure [member] | Sarandi [member] | |||||
Balances by Landfill [line items] | |||||
Total | 3 | ||||
Provision for Landfill Closure [member] | CGR Catanduva [member] | |||||
Balances by Landfill [line items] | |||||
Total | R$ 4 |
Provision for Landfill Closur_4
Provision for Landfill Closure - Summary of Changes in provisions of Landfill Closure (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balances by Landfill [line items] | |||
Additions | R$ 62548 | R$ 98004 | |
Reversal | (78,612) | (33,151) | |
Provision for Landfill Closure [member] | |||
Balances by Landfill [line items] | |||
Provision for landfill closure | 113,532 | 101,620 | R$ 83071 |
Balance at beginning of the year | 113,532 | 101,620 | 83,071 |
Additions | 9,109 | 31,318 | 10,094 |
Effect of passage of time | 8,653 | (4,555) | 8,455 |
Reversal | (18,939) | (4,685) | |
Amount used | (9,951) | (10,166) | |
Balance at end of the year | 102,404 | 113,532 | R$ 101620 |
Provision for Landfill Closure [member] | Not later than one year [member] | |||
Balances by Landfill [line items] | |||
Provision for landfill closure | 20,651 | 20,651 | |
Balance at beginning of the year | 20,651 | ||
Balance at end of the year | 5,613 | 20,651 | |
Provision for Landfill Closure [member] | Later than two years and not later than five years [member] | |||
Balances by Landfill [line items] | |||
Provision for landfill closure | 31,911 | 31,911 | |
Balance at beginning of the year | 31,911 | ||
Balance at end of the year | 26,371 | 31,911 | |
Provision for Landfill Closure [member] | Later than five years [member] | |||
Balances by Landfill [line items] | |||
Provision for landfill closure | 60,970 | 60,970 | |
Balance at beginning of the year | 60,970 | ||
Balance at end of the year | R$ 70420 | R$ 60970 |
Provision for Legal Proceedin_3
Provision for Legal Proceedings - Summary of Provision for Contingencies (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of contingent liabilities [line items] | ||||
Provision for legal proceedings | R$ 70274 | R$ 147762 | R$ 147762 | R$ 245539 |
Labor Proceedings [member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Provision for legal proceedings | 31,366 | 22,795 | 48,658 | |
Tax Proceedings [member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Provision for legal proceedings | 34,041 | 122,744 | 195,316 | |
Civil Proceedings [member] | ||||
Disclosure of contingent liabilities [line items] | ||||
Provision for legal proceedings | R$ 4867 | R$ 2223 | R$ 1565 |
Provision for Legal Proceedin_4
Provision for Legal Proceedings - Summary of Contingent Liabilities With No Provision for Possible Losses (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities with no provision for possible losses | R$ 461955 | R$ 312820 |
Labor Proceedings [member] | ||
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities with no provision for possible losses | 26,301 | 17,888 |
Tax Proceedings [member] | ||
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities with no provision for possible losses | 345,980 | 212,856 |
Civil Proceedings [member] | ||
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities with no provision for possible losses | R$ 89674 | R$ 82076 |
Provision for Legal Proceedin_5
Provision for Legal Proceedings - Summary of Contingent Liabilities With No Provision for Possible Losses (Parenthetical) (Detail) R$ in Thousands, $ in Thousands | Dec. 03, 2018BRL (R$) | Dec. 27, 2017BRL (R$) | Dec. 27, 2017USD ($) | Dec. 15, 2017BRL (R$) | Dec. 15, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) |
Disclosure of contingent liabilities [line items] | ||||||||
Tax infringement notice amount | $ 121,778 | $ 90,634 | ||||||
Tax Proceedings [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Tax infringement notice amount | R$ | R$ 120948 | R$ 121778 | ||||||
Number of official tax infringement notices | 2 | 2 | ||||||
Tax Proceedings [member] | Cavo [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Tax infringement notice amount | R$ | R$ 90634 | |||||||
Civil Proceedings [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Law suit involved value | $ 15,050 | |||||||
Sao Paulo state prosecutors office [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Estimate of possible loss | $ 39,247 | |||||||
Damages sought, value | $ 154,123 |
Provision for Legal Proceedin_6
Provision for Legal Proceedings - Summary of Changes in Provisions for Contingencies (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of contingent liabilities [line items] | ||
Beginning balance | R$ 147762 | R$ 245539 |
Additions | 62,548 | 98,004 |
Reversals | (78,612) | (33,151) |
Payments | (21,136) | (10,794) |
Tax Amnesty Program | (40,288) | (151,836) |
Ending balance | 70,274 | 147,762 |
Labor Proceedings [member] | ||
Disclosure of contingent liabilities [line items] | ||
Beginning balance | 22,795 | 48,658 |
Additions | 32,913 | 10,129 |
Reversals | (9,789) | (26,820) |
Payments | (14,553) | (9,172) |
Ending balance | 31,366 | 22,795 |
Tax Proceedings [member] | ||
Disclosure of contingent liabilities [line items] | ||
Beginning balance | 122,744 | 195,316 |
Additions | 18,161 | 79,264 |
Reversals | (66,576) | |
Tax Amnesty Program | (40,288) | (151,836) |
Ending balance | 34,041 | 122,744 |
Civil Proceedings [member] | ||
Disclosure of contingent liabilities [line items] | ||
Beginning balance | 2,223 | 1,565 |
Additions | 11,474 | 8,611 |
Reversals | (2,247) | (6,331) |
Payments | (6,583) | (1,622) |
Ending balance | R$ 4867 | R$ 2223 |
Equity, Capital and Warrants -
Equity, Capital and Warrants - Additional Information (Detail) R$ / shares in Units, $ / shares in Units, R$ in Thousands, $ in Thousands | Dec. 21, 2017BRL (R$)R$ / sharesshares | Dec. 21, 2017USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017shares |
Capital and warrants [line items] | |||||
Authorized capital | $ | $ 30,000 | ||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Proceeds from issue of ordinary shares | R$ 462789 | $ 139,900 | |||
Capital contribution recorded in equity | R$ 387342 | 117,092 | |||
Number of shares issued | 27,001,889 | ||||
Transaction costs | R$ | R$ 75307 | ||||
Warrants outstanding | 28,499,999 | 28,499,999 | |||
Warrants exercise price | 11.50 | 11.50 | |||
PIPE Investors [member] | |||||
Capital and warrants [line items] | |||||
Par value (in dollars per share) | R$ / shares | R$ 11.50 | ||||
Proceeds from issue of ordinary shares | R$ 425739 | 128,700 | |||
Number of shares issued | 15,438,000 | ||||
Estre USA [member] | |||||
Capital and warrants [line items] | |||||
Proceeds from issue of ordinary shares | R$ 37050 | $ 11,200 | |||
Number of shares issued | 1,213,846 | ||||
Ambiental Employee SPV, Inc [member] | |||||
Capital and warrants [line items] | |||||
Number of shares issued | 1,983,000 | ||||
Ordinary shares [member] | |||||
Capital and warrants [line items] | |||||
Number of shares | 290,750,000 | ||||
Number of shares issued | 20,062,197 | ||||
Class B Shares [member] | |||||
Capital and warrants [line items] | |||||
Number of shares | 9,250,000 | ||||
Class B Shares [member] | Former boulevard SPAC holders [member] | |||||
Capital and warrants [line items] | |||||
Number of shares issued | 5,550,000 |
Equity - Summary of Common Shar
Equity - Summary of Common Shares Isuued and Outstanding (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 21, 2017 | |
Equity capital [line items] | ||
Number of Shares | 27,001,889 | |
Ordinary shares [member] | ||
Equity capital [line items] | ||
Number of Shares | 20,062,197 | |
Ownership Interest | 44.00% | |
Ordinary shares [member] | Avenue Boulevard Co Investment Vehicle LLC [member] | ||
Equity capital [line items] | ||
Number of Shares | 10,440,000 | |
Ownership Interest | 22.90% | |
Ordinary shares [member] | Cygnus Asset Holding Ltd [member] | ||
Equity capital [line items] | ||
Number of Shares | 2,709,756 | |
Ownership Interest | 5.90% | |
Ordinary shares [member] | Lyra Asset Holding Ltda [member] | ||
Equity capital [line items] | ||
Number of Shares | 2,505,169 | |
Ownership Interest | 5.50% | |
Ordinary shares [member] | Other shareholder [member] | ||
Equity capital [line items] | ||
Number of Shares | 9,919,610 | |
Ownership Interest | 21.70% | |
Ordinary shares [member] | BTG Pactual G7 Holding S A [member] | ||
Equity capital [line items] | ||
Number of Shares | 45,636,732 | |
Ownership Interest | 100.00% | |
Class B Shares [member] | Former boulevard SPAC holders [member] | ||
Equity capital [line items] | ||
Number of Shares | 5,550,000 | |
Ownership Interest | 100.00% |
Equity, Share-Based Payment Res
Equity, Share-Based Payment Reserve - Additional Information (Detail) | Dec. 21, 2017BRL (R$)shares | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Percentage of options available and exercisable on first anniversary | 34.00% | |||
Percentage of options available and exercisable on second anniversary | 33.00% | |||
Percentage of options available and exercisable on third anniversary | 33.00% | |||
Stock options exercise term period | 11 years | |||
Number of shares issued | shares | 27,001,889 | |||
Share-based payment reserve [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Compensation expense | R$ 0 | R$ 2945000 | R$ 28937000 | |
Liabilities | R$ 1620000 | |||
Ambiental Employee SPV, Inc [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Compensation expense | R$ 26461000 | |||
Number of shares issued | shares | 1,983,000 | |||
Exercise price of options | R$ 0.0001 | |||
Percentage of shares vested and exchanged on first anniversary of the effective date | 5.00% | |||
Percentage of shares vested on first anniversary of the effective date | 20.00% | |||
Percentage of shares vested on second anniversary of the effective date | 25.00% | |||
Percentage of shares vested on third anniversary of the effective date | 25.00% | |||
Percentage of shares vested on fourth anniversary of the effective date | 25.00% | |||
Granted | 0 | 1,983,000 |
Equity, Share-Based Payment R_2
Equity, Share-Based Payment Reserve - Summary of Option Price and Significant Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Plan one [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Start date (first grant) | 10/28/2015 |
Number of options - TBO (thousands) | 2,486,000 |
Exercise value | R$ 0.9250 |
Expected volatility | 24.03% |
Future risk-free rate | 14.48% |
Estimated maturity term (weighted average in years) | 0.6778 |
Fair value of option | R$ 11.58 |
Plan two [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Start date (first grant) | 10/28/2015 |
Number of options - TBO (thousands) | 432,000 |
Exercise value | R$ 0.9250 |
Expected volatility | 24.03% |
Future risk-free rate | 14.48% |
Estimated maturity term (weighted average in years) | 1.1287 |
Fair value of option | R$ 11.63 |
Plan three [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Start date (first grant) | 10/28/2015 |
Number of options - TBO (thousands) | 649,000 |
Exercise value | R$ 0.9250 |
Expected volatility | 24.03% |
Future risk-free rate | 14.48% |
Estimated maturity term (weighted average in years) | 1.9176 |
Fair value of option | R$ 11.72 |
Equity, Share-Based Payment R_3
Equity, Share-Based Payment Reserve - Summary of Changes in Stock Option Plan (Detail) pure in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance | 144 | 571 |
Expired | (70) | |
Exercised | (144) | (357) |
Ending balance | 144 |
Equity, Share-Based Payment R_4
Equity, Share-Based Payment Reserve - Summary of Compensation Expense be Recognized in Future Service Period (Detail) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Compensation expense be recognized in future service period | R$ 26844 |
2019 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Compensation expense be recognized in future service period | 15,221 |
2020 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Compensation expense be recognized in future service period | 8,175 |
2021 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Compensation expense be recognized in future service period | R$ 3448 |
Equity, Angra Put Option Rights
Equity, Angra Put Option Rights - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2011 | Mar. 06, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Liability at fair value against equity reserve | R$ 1901533 | R$ 1708558 | ||
Put option rights [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Maximum percentage of diluted holding to exercise the put options | 5.00% | |||
Interest rate per year for exercise of shares | 9.50% | |||
Option exercise payment period | 6 months | |||
Price for exercisable of shares held by Angra | R$ 37606 | |||
Liability at fair value against equity reserve | R$ 41662 | R$ 37884 |
Income and Social Contributio_3
Income and Social Contribution Taxes - Reconciliation of Income and Social Contribution Taxes Expenses and Accounting Profit or Loss (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major Components Of Tax Expense Income [line items] | |||
Loss before income and social contribution taxes | R$ 755783 | R$ 315618 | R$ 260141 |
Statutory rate | 34.00% | 34.00% | 34.00% |
Income and social contribution taxes at the statutory rate | R$ 256966 | R$ 107310 | R$ 88447 |
Tax effect on: | |||
Share of profit of an associate | (1,135) | (347) | 3,452 |
Permanent differences - non-deductible expenses | (166,477) | (35,640) | (39,546) |
Permanent differences - Tax benefit of unorganized goodwill | 24,741 | 12,168 | 10,935 |
Permanent differences - taxable profit computed as a percentage of gross revenue | (28,948) | 15,045 | 502 |
Temporary differences - Deferred tax of Revenues from government entities | (3,619) | 14,695 | 19,942 |
Temporary differences - non-recognized | (24,494) | (11,089) | (63,730) |
Incentive reserve | 100 | 125 | 1,140 |
Tax loss for the year not recognized | (90,569) | (120,031) | (125,234) |
Income and social contribution tax variation at PERT consolidation (see Note 17). | (3,860) | ||
Use of tax benefit of tax income and social contribution tax losses against PERT, PRT and REFIS "COPA" (see Note 17). | (7,743) | 370,116 | |
Write-off of income tax and social contribution by impairment assets test | 103,908 | ||
Reversion of income tax and social contribution from timing differences | (29,930) | ||
Recognition deferred income tax and social contribution liabilities | 5,338 | 6,359 | |
Others | 587 | (5,170) | |
Total | 34,865 | 353,541 | (104,092) |
(-) Current income and social contribution taxes | (41,623) | (17,543) | (54,337) |
(-) Deferred income and social contribution taxes | R$ 76488 | R$ 371084 | R$ 49755 |
Effective income tax rate | (4.61%) | (112.02%) | 40.01% |
Income and Social Contributio_4
Income and Social Contribution Taxes - Deferred Taxes (Detail) - BRL (R$) R$ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income and social contribution tax effect on: | ||||
Total assets | R$ 44 | R$ 44 | ||
Income and social contribution tax effect on: | ||||
Total Liabilities | 137,650 | R$ 52269 | 137,028 | |
(-) Deferred income and social contribution taxes | 76,488 | 371,084 | R$ 49755 | |
Deferred Income Tax Assets [member] | ||||
Income and social contribution tax effect on: | ||||
Beginning balance | 44 | 44 | 41,057 | 25,874 |
Additions Business Combination | 7,743 | 15,183 | ||
Write- offs | (29,974) | (11,083) | ||
Tax Amnesty Program | (7,743) | 373,196 | ||
Offsetting | 29,930 | (29,930) | ||
Ending balance | 44 | 41,057 | ||
(-) Deferred income and social contribution taxes | (37,717) | 362,113 | 15,183 | |
Deferred income tax liabilities [member] | ||||
Income and social contribution tax effect on: | ||||
Beginning balance | R$ 137028 | (137,028) | (175,556) | (110,618) |
Additions Business Combination | (373) | (64,938) | ||
Write- offs | 10,297 | 8,971 | ||
Offsetting | (29,930) | 29,930 | ||
Others | 484 | |||
Impairment | 103,908 | |||
Ending balance | (52,269) | (137,028) | (175,556) | |
(-) Deferred income and social contribution taxes | 114,205 | 8,971 | R$ 64938 | |
Sundry provisions temporary differences [member] | ||||
Income and social contribution tax effect on: | ||||
Total assets | 44 | |||
Appreciation property plant and equipment temporary differences[member] | ||||
Income and social contribution tax effect on: | ||||
Total Liabilities | 9,989 | 15,438 | ||
Customer relationship and license temporary differences [member] | ||||
Income and social contribution tax effect on: | ||||
Total Liabilities | 559 | 10,975 | ||
Business combination goodwill temporary differences [member] | ||||
Income and social contribution tax effect on: | ||||
Total Liabilities | 6,101 | 91,024 | ||
Government entities temporary differences [member] | ||||
Income and social contribution tax effect on: | ||||
Total Liabilities | R$ 35620 | R$ 19591 |
Income and Social Contributio_5
Income and Social Contribution Taxes - Consolidated Income and Social Contribution Tax Loss Carryforwards Not Recognized (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Major Components Of Tax Expense Income [line items] | ||||
Total income and social contribution tax loss carryforwards (a) | R$ 884028 | R$ 708639 | R$ 1453249 | R$ 1078049 |
Income and Social Contributio_6
Income and Social Contribution Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Major Components Of Tax Expense Income [line items] | |
Maximum offset percentage of taxable profit | 30.00% |
Income and Social Contributio_7
Income and Social Contribution Taxes - Changes in the Consolidated Income and Social Contribution Tax Losses (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major Components Of Tax Expense Income [line items] | |||
Balance at the beginning of the year | R$ 708639 | R$ 1453249 | R$ 1078049 |
Income and social contribution tax losses for the year | 235,719 | 353,330 | 368,245 |
Use of PERT base | (22,772) | (1,097,635) | |
Others | (37,558) | (305) | 6,955 |
Balance at the end of the year | R$ 884028 | R$ 708639 | R$ 1453249 |
Revenue from services rendere_2
Revenue from services rendered (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue [line items] | |||
(-) Discounts and cancellations | R$ 13262 | R$ 3374 | R$ 28718 |
(-) Taxes levied - PIS | (23,233) | (27,114) | (27,683) |
(-) Taxes levied - COFINS | (107,020) | (124,808) | (127,513) |
(-) Taxes levied - ICMS | (308) | (468) | (117) |
(-) Taxes levied - ISSQN | (71,287) | (75,259) | (76,980) |
Net revenue from services rendered | 1,260,587 | 1,345,849 | 1,380,031 |
Collection cleaning services [member] | |||
Revenue [line items] | |||
Gross revenue from services | 956,082 | 1,059,690 | 1,041,739 |
OG [member] | |||
Revenue [line items] | |||
Gross revenue from services | 15,425 | 31,166 | 74,436 |
Landfills [member] | |||
Revenue [line items] | |||
Gross revenue from services | 470,547 | 442,802 | 492,595 |
Value recovery [member] | |||
Revenue [line items] | |||
Gross revenue from services | R$ 33643 | R$ 43214 | R$ 32272 |
Cost of services by nature (Det
Cost of services by nature (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost Of Services [line items] | |||
Payroll, charges and benefits | R$ 574869 | R$ 544565 | R$ 542730 |
Waste treatment and disposal of leachate | (50,697) | (36,313) | (49,008) |
Fuel/lubricant | (63,530) | (57,118) | (60,577) |
Transportation | (16,650) | (14,558) | (12,593) |
Lease of machinery and equipment | (25,669) | (17,022) | (46,475) |
Materials to operate landfills | (20,804) | (16,873) | (25,935) |
Technical assistance | (6,288) | (11,944) | (6,416) |
Depreciation/amortization/depletion | (99,835) | (105,624) | (129,688) |
Analysis and monitoring | (5,775) | (5,303) | (9,191) |
Lease of real estate, equipment and vehicles | (11,824) | (12,091) | (13,452) |
Travel and lodging | (13,978) | (19,284) | (11,205) |
Equipment maintenance | (41,654) | (38,808) | (20,725) |
Landfill maintenance | (377) | (94) | (1,130) |
Other | (47,233) | (62,658) | (74,623) |
Total costs | R$ 979183 | R$ 942255 | R$ 1003748 |
General and administrative ex_3
General and administrative expenses by nature (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of selling general and administrative expenses [line items] | |||
Payroll, charges and benefits | R$ 120172 | R$ 104884 | R$ 116502 |
Transportation | (492) | (275) | (570) |
Advisory services | (33,535) | (12,224) | (17,196) |
Depreciation/amortization/depletion | (35,633) | (26,846) | (31,326) |
Lease of real estate, equipment and vehicles | (3,942) | (4,034) | (4,973) |
Legal advisory services | (59,238) | (16,896) | (22,084) |
Travel and lodging | (6,454) | (4,211) | (4,856) |
Equipment maintenance | (617) | (806) | (1,720) |
System maintenance | (659) | (1,838) | (986) |
Provision for legal proceedings | (32,824) | (57,775) | 583 |
Consumer materials | (2,831) | (4,001) | (4,688) |
Third-party services | (5,601) | (5,103) | (3,907) |
Other | (25,288) | (17,639) | (22,825) |
Total general and administrative expenses | R$ 327286 | R$ 256532 | R$ 231050 |
Selling expenses, net (Detail)
Selling expenses, net (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of selling expenses [line items] | |||
Advertising and promotion expenses | R$ 5188 | R$ 4735 | R$ 2348 |
(Addition) reversal of allowance for doubtful accounts, net | 10,512 | (1,906) | 12,843 |
Selling expense, net | R$ 5324 | R$ 6641 | R$ 10495 |
Other Operating Expenses, Net -
Other Operating Expenses, Net - Summary of Other Operating Income (Expenses) (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | R$ 547689 | ||
Write-off-Others intangible (b) | R$ 20085 | ||
Gain on remeasurement of interest previously held of Catanduva (Note 9) | 2,032 | 724 | |
Gain from the sale of Leccaros Participações S.A (Note 10.2.2) | 18,784 | ||
Gain on sale of property, plant and equipment | 17 | 415 | R$ 2123 |
Donations | (3,122) | (3,249) | (1,883) |
Realization of tax credit relating to prior periods (a) | 6,712 | 9,679 | 13,298 |
Other operating expenses, net | (7,682) | (1,509) | (28,434) |
Total | (576,506) | (31,125) | (80,551) |
Call Options [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Write-off of the CDR Pedreira call option | (20,865) | ||
Other Assets Requiring an Impairment Test [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Write-off of the CDR Pedreira call option | (25,473) | ||
CTR Itaborai [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | (9,626) | (36,781) | R$ 44790 |
Resicontrol Solucoes Ambientais Ltda. [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | (69,694) | ||
Geo Vision Solues Ambientais E Energia SA [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | (242,489) | ||
Viva Ambiental e Servicos S.A. [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | (217,935) | ||
Agua E Solo Ltda [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | R$ 7945 | ||
Ambiental Sul Brasil Central Regional De Tratamento De Residuos Ltda [member] | |||
Disclosure Of Other Operating Income Expenses [line items] | |||
Impairment-Água e Solo (Note 12) | R$ 404 |
Finance income and costs, net (
Finance income and costs, net (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finance expenses | |||
Interest of loans/debentures | R$ 138934 | R$ 229763 | R$ 262104 |
Discounts granted | (9,417) | (17,345) | (14,650) |
Interest for late payment to suppliers | (3,832) | (7,023) | (6,134) |
Interest for late payment of taxes | (52,127) | (213,980) | (74,727) |
Other finance expenses | (47,383) | (64,064) | (39,518) |
Total finance expense | (251,693) | (532,175) | (397,133) |
Finance income | |||
Interest income | 20,546 | 6,534 | 17,320 |
Interest on investments | 1,322 | 2,260 | 4,982 |
Other financial income | 12,463 | 1,147 | 2,546 |
Impact of financial component from on revenues (IFRS 15) (c) | 11,138 | ||
Discounts obtained on debentures (Note 14) | 91,492 | ||
Interest of taxes credit (a) | 1,671 | 6,848 | 26,815 |
Interest for late payment of taxes reversal (b) | 69,173 | ||
Total finance income | 116,313 | 108,281 | 51,663 |
Total finance expenses, net | R$ 135380 | R$ 423894 | R$ 345470 |
Segment reporting (Detail)
Segment reporting (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Revenue | R$ 1260587 | R$ 1345849 | R$ 1380031 |
Cost of services | (979,183) | (942,255) | (1,003,748) |
Gross profit (loss) | 281,404 | 403,594 | 376,283 |
Operating income/(expenses) | |||
General and administrative expenses | (327,286) | (256,532) | (231,050) |
Selling expenses, net | 5,324 | (6,641) | 10,495 |
Share of profit of an associate | (3,339) | (1,020) | 10,152 |
Other operating expenses, net | (576,506) | (31,125) | (80,551) |
Operating expenses | (901,807) | (295,318) | (290,954) |
Profit (loss) before finance income and expenses | (620,403) | 108,276 | 85,329 |
Finance costs, net | (251,693) | (532,175) | (397,133) |
Finance income | 116,313 | 108,281 | 51,663 |
Profit (loss) before income and social contribution taxes | (755,783) | (315,618) | (260,141) |
(-) Current income and social contribution taxes | (41,623) | (17,543) | (54,337) |
(-) Deferred income and social contribution taxes | 76,488 | 371,084 | (49,755) |
Profit (loss) for the year | (720,918) | 37,923 | (364,233) |
Discontinued operations | |||
Profit (loss) after tax for the year resulting from continuing operations | 30,454 | 14,342 | 3,288 |
(Loss) profit for the year | (690,464) | 52,265 | (360,945) |
Corporate Non Segment [member] | |||
Disclosure of operating segments [line items] | |||
Cost of services | (2,253) | (9,303) | (8,674) |
Gross profit (loss) | (2,253) | (9,303) | (8,674) |
Operating income/(expenses) | |||
General and administrative expenses | (284,472) | (218,629) | (163,680) |
Selling expenses, net | 42,709 | (28,128) | (25,495) |
Share of profit of an associate | (650,080) | 83,384 | 139,714 |
Other operating expenses, net | (580,829) | (45,911) | (69,328) |
Operating expenses | (1,472,672) | (209,284) | (118,789) |
Profit (loss) before finance income and expenses | (1,474,925) | (218,587) | (127,463) |
Finance costs, net | (251,619) | (363,037) | (367,954) |
Finance income | 100,566 | 98,906 | 50,122 |
Profit (loss) before income and social contribution taxes | (1,625,978) | (482,718) | (445,295) |
(-) Current income and social contribution taxes | (14,523) | (4,838) | (54,336) |
(-) Deferred income and social contribution taxes | 76,196 | 331,635 | (49,755) |
Profit (loss) for the year | (1,564,305) | (155,921) | (549,386) |
Discontinued operations | |||
Profit (loss) after tax for the year resulting from continuing operations | 27,169 | ||
(Loss) profit for the year | (1,537,136) | (155,921) | (549,386) |
Country of domicile [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,260,587 | 1,345,849 | 1,380,031 |
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | (102,080) | (101,957) | (83,904) |
Cost of services | 103,797 | 101,957 | 83,904 |
Gross profit (loss) | 1,717 | ||
Operating income/(expenses) | |||
General and administrative expenses | 23 | (17,933) | |
Share of profit of an associate | 646,741 | (84,404) | (129,562) |
Other operating expenses, net | (1,723) | ||
Operating expenses | 645,041 | (84,404) | (147,495) |
Profit (loss) before finance income and expenses | 646,758 | (84,404) | (147,495) |
Profit (loss) before income and social contribution taxes | 646,758 | (84,404) | (147,495) |
Profit (loss) for the year | 646,758 | (84,404) | (147,495) |
Discontinued operations | |||
(Loss) profit for the year | 646,758 | (84,404) | (147,495) |
Elimination of intersegment amounts [member] | Collection cleaning services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 44,831 | 17,171 | 52,689 |
Elimination of intersegment amounts [member] | OG [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 45 | 331 | 78 |
Elimination of intersegment amounts [member] | Landfills [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 55,427 | 83,558 | 29,505 |
Elimination of intersegment amounts [member] | Value recovery [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,777 | 897 | 1,632 |
Operating segments [member] | Collection cleaning services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 861,976 | 928,823 | 922,022 |
Cost of services | (731,424) | (673,024) | (678,058) |
Gross profit (loss) | 130,552 | 255,799 | 243,964 |
Operating income/(expenses) | |||
General and administrative expenses | (40,793) | (38,309) | (38,105) |
Selling expenses, net | (8,433) | (16,261) | 268 |
Other operating expenses, net | 1,225 | (15,335) | (12,402) |
Operating expenses | (48,001) | (69,905) | (50,239) |
Profit (loss) before finance income and expenses | 82,551 | 185,894 | 193,725 |
Finance costs, net | 14,788 | (132,234) | (27,110) |
Finance income | 8,536 | 8,276 | 1,506 |
Profit (loss) before income and social contribution taxes | 105,875 | 61,936 | 168,121 |
(-) Current income and social contribution taxes | (26,621) | (8,613) | |
(-) Deferred income and social contribution taxes | 292 | 22,552 | |
Profit (loss) for the year | 79,546 | 75,875 | 168,121 |
Discontinued operations | |||
Profit (loss) after tax for the year resulting from continuing operations | 6,506 | ||
(Loss) profit for the year | 79,546 | 82,381 | 168,121 |
Operating segments [member] | OG [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 12,794 | 25,855 | 62,877 |
Cost of services | (13,511) | (21,152) | (41,583) |
Gross profit (loss) | (717) | 4,703 | 21,294 |
Operating income/(expenses) | |||
General and administrative expenses | (96) | (42) | (783) |
Selling expenses, net | (189) | 897 | |
Other operating expenses, net | (6) | (4,509) | 213 |
Operating expenses | (291) | (4,551) | 327 |
Profit (loss) before finance income and expenses | (1,008) | 152 | 21,621 |
Finance costs, net | (541) | 889 | (1,326) |
Finance income | 73 | 70 | 1 |
Profit (loss) before income and social contribution taxes | (1,476) | 1,111 | 20,296 |
Profit (loss) for the year | (1,476) | 1,111 | 20,296 |
Discontinued operations | |||
(Loss) profit for the year | (1,476) | 1,111 | 20,296 |
Operating segments [member] | Landfills [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 456,567 | 455,398 | 449,798 |
Cost of services | (306,673) | (316,305) | (337,335) |
Gross profit (loss) | 149,894 | 139,093 | 112,463 |
Operating income/(expenses) | |||
General and administrative expenses | (1,761) | 1,290 | (10,206) |
Selling expenses, net | (26,981) | 37,468 | 26,293 |
Other operating expenses, net | 4,949 | (41,719) | 962 |
Operating expenses | (23,793) | (2,961) | 17,049 |
Profit (loss) before finance income and expenses | 126,101 | 136,132 | 129,512 |
Finance costs, net | (14,244) | (37,757) | (732) |
Finance income | 6,535 | 948 | 18 |
Profit (loss) before income and social contribution taxes | 118,392 | 99,323 | 128,798 |
(-) Current income and social contribution taxes | (479) | (4,030) | |
(-) Deferred income and social contribution taxes | 16,897 | ||
Profit (loss) for the year | 117,913 | 112,190 | 128,798 |
Discontinued operations | |||
Profit (loss) after tax for the year resulting from continuing operations | 799 | 41 | |
(Loss) profit for the year | 117,913 | 112,989 | 128,839 |
Operating segments [member] | Value recovery [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 31,330 | 37,730 | 29,238 |
Cost of services | (29,119) | (24,428) | (22,002) |
Gross profit (loss) | 2,211 | 13,302 | 7,236 |
Operating income/(expenses) | |||
General and administrative expenses | (187) | (842) | (343) |
Selling expenses, net | (1,782) | 280 | 8,532 |
Other operating expenses, net | (122) | 76,349 | 4 |
Operating expenses | (2,091) | 75,787 | 8,193 |
Profit (loss) before finance income and expenses | 120 | 89,089 | 15,429 |
Finance costs, net | (77) | (36) | (11) |
Finance income | 603 | 81 | 16 |
Profit (loss) before income and social contribution taxes | 646 | 89,134 | 15,434 |
(-) Current income and social contribution taxes | (62) | (1) | |
Profit (loss) for the year | 646 | 89,072 | 15,433 |
Discontinued operations | |||
Profit (loss) after tax for the year resulting from continuing operations | 3,285 | 7,037 | 3,247 |
(Loss) profit for the year | 3,931 | 96,109 | 18,680 |
Operating segments [member] | Country of domicile [member] | Collection cleaning services [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 817,145 | 911,652 | 869,333 |
Operating segments [member] | Country of domicile [member] | OG [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 12,749 | 25,524 | 62,799 |
Operating segments [member] | Country of domicile [member] | Landfills [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 401,140 | 371,840 | 420,293 |
Operating segments [member] | Country of domicile [member] | Value recovery [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | R$ 29553 | R$ 36833 | R$ 27606 |
Segment reporting - Additional
Segment reporting - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
percent of entity's revenue | 72.90% | 74.00% |
Major customers | 13 | 10 |
Collection cleaning services [member] | ||
Disclosure of operating segments [line items] | ||
percent of entity's revenue | 39.90% | 41.70% |
Customer One [member] | ||
Disclosure of operating segments [line items] | ||
percent of entity's revenue | 12.10% | 16.80% |
Major customers | 8 | 6 |
Customer One [member] | Landfills [member] | ||
Disclosure of operating segments [line items] | ||
percent of entity's revenue | 38.20% | 49.70% |
Major customers | 5 | 4 |
Customer Two [member] | ||
Disclosure of operating segments [line items] | ||
percent of entity's revenue | 60.70% | 63.20% |
Customer Two [member] | Collection cleaning services [member] | ||
Disclosure of operating segments [line items] | ||
percent of entity's revenue | 93.70% | 91.60% |
Major customers | 8 | 6 |
Financial instruments, Credit r
Financial instruments, Credit risk (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Disclosure of credit risk exposure [line items] | ||||
Cash and cash equivalents | R$ 18862 | R$ 84687 | R$ 31083 | R$ 84687 |
Marketable securities | 42 | 42 | ||
Trade accounts receivable | 501,821 | 609,157 | ||
Contract asset | 120,308 | |||
Receivables from related parties | 2,218 | 14,518 | R$ 14518 | |
Trade accounts receivable | R$ 622875 | R$ 778106 | ||
Percentage of entitys revenue | 72.90% | 74.00% | ||
Trade receivables 10 largest debtors [member] | Credit risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade accounts receivable | R$ 515664 | R$ 533335 | R$ 433605 | |
Percentage of entitys revenue | 66.00% | 69.00% | 68.00% | |
Trade receivables 20 largest debtors [member] | Credit risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade accounts receivable | R$ 610273 | R$ 627036 | R$ 512394 | |
Percentage of entitys revenue | 79.00% | 81.00% | 81.00% | |
Trade receivables 50 largest debtors [member] | Credit risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade accounts receivable | R$ 683051 | R$ 704481 | R$ 578639 | |
Percentage of entitys revenue | 90.00% | 91.00% | 91.00% | |
Public [member] | Credit risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade accounts receivable | R$ 651674 | R$ 658057 | R$ 648718 | |
Private [member] | Credit risk [member] | ||||
Disclosure of credit risk exposure [line items] | ||||
Trade accounts receivable | R$ 91509 | R$ 120049 | R$ 73775 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - Interest rate risk [member] | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Brazilian Inter bank deposit certificate [member] | |
Disclosure of credit risk exposure [line items] | |
Future interest rate | R$ 0.0672 |
Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | |
Disclosure of credit risk exposure [line items] | |
Future interest rate | R$ 0.0698 |
ScenarioII estimate increase [member] | |
Disclosure of credit risk exposure [line items] | |
Estimated increase (decrease) in interest rates | 25.00% |
ScenarioIII estimate increase [member] | |
Disclosure of credit risk exposure [line items] | |
Estimated increase (decrease) in interest rates | 50.00% |
Scenario IV estimate decrease [member] | |
Disclosure of credit risk exposure [line items] | |
Estimated increase (decrease) in interest rates | 25.00% |
Scenario V estimate decrease [member] | |
Disclosure of credit risk exposure [line items] | |
Estimated increase (decrease) in interest rates | 50.00% |
Financial instruments, Interest
Financial instruments, Interest rate risk (Detail) - Interest rate risk [member] - Adjustment on impact on profit or loss [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Brazilian Inter bank deposit certificate [member] | Equity investments [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 42 |
Description of exposure to risk | CDI variation |
Brazilian Inter bank deposit certificate [member] | Working capital liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 589778 |
Description of exposure to risk | CDI variation |
Brazilian Inter bank deposit certificate [member] | Lease liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 38213 |
Description of exposure to risk | CDI variation |
Brazilian Inter bank deposit certificate [member] | Debentures [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 966386 |
Description of exposure to risk | CDI variation |
Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | Equipment debt [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 306 |
Description of exposure to risk | TJLP variation |
ProbableI [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 3 |
ProbableI [member] | Net financial liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (107,160) |
ProbableI [member] | Brazilian Inter bank deposit certificate [member] | Equity investments [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 3 |
ProbableI [member] | Brazilian Inter bank deposit certificate [member] | Working capital liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (39,633) |
ProbableI [member] | Brazilian Inter bank deposit certificate [member] | Lease liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (2,568) |
ProbableI [member] | Brazilian Inter bank deposit certificate [member] | Debentures [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (64,941) |
ProbableI [member] | Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | Equipment debt [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (21) |
ScenarioII estimate increase [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 1 |
ScenarioII estimate increase [member] | Net financial liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (26,789) |
ScenarioII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Equity investments [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 1 |
ScenarioII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Working capital liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (9,908) |
ScenarioII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Lease liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (642) |
ScenarioII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Debentures [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (16,235) |
ScenarioII estimate increase [member] | Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | Equipment debt [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (5) |
ScenarioIII estimate increase [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 2 |
ScenarioIII estimate increase [member] | Net financial liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (53,581) |
ScenarioIII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Equity investments [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 2 |
ScenarioIII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Working capital liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (19,817) |
ScenarioIII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Lease liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (1,284) |
ScenarioIII estimate increase [member] | Brazilian Inter bank deposit certificate [member] | Debentures [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (32,471) |
ScenarioIII estimate increase [member] | Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | Equipment debt [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (11) |
Scenario IV estimate decrease [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (1) |
Scenario IV estimate decrease [member] | Net financial liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 26,789 |
Scenario IV estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Equity investments [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (1) |
Scenario IV estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Working capital liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 9,908 |
Scenario IV estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Lease liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 642 |
Scenario IV estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Debentures [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 16,235 |
Scenario IV estimate decrease [member] | Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | Equipment debt [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 5 |
Scenario V estimate decrease [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (2) |
Scenario V estimate decrease [member] | Net financial liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 53,589 |
Scenario V estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Equity investments [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | (2) |
Scenario V estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Working capital liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 19,817 |
Scenario V estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Lease liabilities [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 1,284 |
Scenario V estimate decrease [member] | Brazilian Inter bank deposit certificate [member] | Debentures [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | 32,471 |
Scenario V estimate decrease [member] | Brazilian Long Term Interest Rate Taxa De Juros De Longo Prazo[member] | Equipment debt [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure | R$ 11 |
Financial instruments, Liquidit
Financial instruments, Liquidity risk (Detail) - BRL (R$) shares in Thousands, R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure [line items] | ||
Loans and financing | R$ 628297 | R$ 385514 |
Debentures | 966,386 | |
Accounts payable for land acquisition | 10,184 | 19,377 |
Total | 1,901,533 | 1,708,558 |
Not later than one year [member] | Liquidity risk [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loans and financing | 601,475 | 14,139 |
Debentures | 966,386 | |
Trade accounts payable | 173,339 | 128,113 |
Labor payable | 98,519 | 108,191 |
Tax liabilities | R$ 151686 | R$ 167040 |
Put option on the Company's shares | 41,662 | 37,884 |
Accounts payable for land acquisition | R$ 5380 | R$ 8965 |
Total | 2,038,447 | 464,332 |
2020 [member] | Liquidity risk [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loans and financing | 20,444 | 1,709 |
Tax liabilities | 202,412 | 178,570 |
Accounts payable for land acquisition | 4,804 | 10,412 |
Total | 227,660 | 190,691 |
Later than two years and not later than five years [member] | Liquidity risk [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loans and financing | 4,940 | 100,841 |
Debentures | 267,245 | |
Tax liabilities | 109,854 | 26,684 |
Total | 114,794 | 394,770 |
Later than five years [member] | Liquidity risk [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loans and financing | 1,438 | 268,825 |
Debentures | 801,734 | |
Tax liabilities | 50,011 | 190,581 |
Total | R$ 51449 | R$ 1261140 |
Financial instruments, Fair val
Financial instruments, Fair value (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure [line items] | ||
Financial assets, carrying amount | R$ 643251 | R$ 708404 |
Financial assets, fair value | 643,251 | 708,404 |
Financial liabilities, carrying amount | 1,901,533 | 1,708,558 |
Financial liabilities, fair value | 1,901,533 | 1,708,558 |
Financial assets at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | Trading securities [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets, carrying amount | 42 | 42 |
Financial assets, fair value | 42 | 42 |
Financial assets at fair value through profit or loss, category [member] | Level 1 of fair value hierarchy [member] | Cash and Cash Equivalent [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets, carrying amount | 18,862 | 84,687 |
Financial assets, fair value | 18,862 | 84,687 |
Financial assets at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Trade receivables [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets, carrying amount | 501,821 | 609,157 |
Financial assets, fair value | 501,821 | 609,157 |
Financial assets at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Contract assets [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets, carrying amount | 120,308 | |
Financial assets, fair value | 120,308 | |
Financial assets at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Receivables from Related Parties [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets, carrying amount | 2,218 | 14,518 |
Financial assets, fair value | 2,218 | 14,518 |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Loans And Financing [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 628,297 | 385,514 |
Financial liabilities, fair value | 628,297 | 385,514 |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Trade Accounts Payable [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 173,339 | 128,113 |
Financial liabilities, fair value | 173,339 | 128,113 |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Debentures [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 966,386 | 1,068,979 |
Financial liabilities, fair value | 966,386 | 1,068,979 |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Loans from related parties [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 40,464 | 44,904 |
Financial liabilities, fair value | 40,464 | 44,904 |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Accounts payable from land and others asset acquisition [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 10,184 | 19,377 |
Financial liabilities, fair value | 10,184 | 19,377 |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Related Party Payables [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 41,662 | |
Financial liabilities, fair value | 41,662 | |
Financial liabilities at amortised cost, category [member] | Level 2 of fair value hierarchy [member] | Obligations relating to discontinued operation [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 41,201 | 23,787 |
Financial liabilities, fair value | R$ 41201 | 23,787 |
Financial liabilities at fair value through profit or loss, category [member] | Level 2 of fair value hierarchy [member] | Put option on the company shares [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial liabilities, carrying amount | 37,884 | |
Financial liabilities, fair value | R$ 37884 |
Commitments (Detail)
Commitments (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of commitments [line items] | |||
Total minimum lease payments, under non-cancellable operating leases | R$ 36476 | R$ 29660 | R$ 29152 |
Not later than one year [member] | |||
Disclosure of commitments [line items] | |||
Total minimum lease payments, under non-cancellable operating leases | 3,002 | 12,783 | 803 |
Later than one year and not later than five years [member] | |||
Disclosure of commitments [line items] | |||
Total minimum lease payments, under non-cancellable operating leases | 10,702 | R$ 16877 | R$ 28349 |
More than five years [member] | |||
Disclosure of commitments [line items] | |||
Total minimum lease payments, under non-cancellable operating leases | R$ 22772 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of commitments [line items] | |||
Operating lease expenses | R$ 41435 | R$ 33147 | R$ 64900 |
Estimated penalties on termination of agreements | R$ 707 |
Insurance coverage (Detail)
Insurance coverage (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Insurance coverage [line items] | |||
Total | R$ 426832 | R$ 535860 | R$ 493452 |
Civil liability environment [member] | |||
Disclosure Of Insurance coverage [line items] | |||
Total | 20,200 | 20,200 | 20,000 |
Civil liability pain and suffering and contingent risks fire lightning explosion A [member] | |||
Disclosure Of Insurance coverage [line items] | |||
Total | 373,241 | 466,536 | 343,652 |
Sundry risks [member] | |||
Disclosure Of Insurance coverage [line items] | |||
Total | R$ 33391 | R$ 49124 | R$ 129800 |
Changes in liabilities from f_3
Changes in liabilities from financing activities (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | R$ 1454493 | R$ 1702038 | R$ 1575142 |
Cash flow | (17,835) | (107,910) | (124,553) |
Payment of interest from of loans and financing and debentures | (17,525) | (299,446) | (9,506) |
Interest + Exchange and monetary variation | 138,934 | 138,171 | 254,415 |
Proceeds loans and financing obtained | 37,068 | 21,640 | 6,540 |
Others | (452) | ||
Liabilities from financing activities at ending of period | 1,594,683 | 1,454,493 | 1,702,038 |
Short-term borrowings [member] | |||
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | 14,139 | 16,732 | 64,133 |
Cash flow | (17,835) | (21,093) | (60,514) |
Payment of interest from of loans and financing and debentures | (17,525) | (11,295) | (9,506) |
Interest + Exchange and monetary variation | 57,675 | 13,051 | 5,867 |
Proceeds loans and financing obtained | 5,492 | 378,154 | 6,540 |
Others | 559,529 | (361,410) | 10,212 |
Liabilities from financing activities at ending of period | 601,475 | 14,139 | 16,732 |
Long-term borrowings [member] | |||
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | 371,375 | 9,965 | 20,177 |
Proceeds loans and financing obtained | 215,428 | ||
Others | (559,981) | 361,410 | (10,212) |
Liabilities from financing activities at ending of period | 26,822 | 371,375 | 9,965 |
Debentures current [member] | |||
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | 1,665,629 | 1,417,081 | |
Cash flow | (77,816) | ||
Payment of interest from of loans and financing and debentures | (288,151) | ||
Interest + Exchange and monetary variation | 125,831 | 248,548 | |
Proceeds loans and financing obtained | (356,514) | ||
Others | 966,386 | (1,068,979) | |
Liabilities from financing activities at ending of period | 966,386 | 1,665,629 | |
Accounts payable from acquisition of investments current [member] | |||
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | 4,856 | 47,041 | |
Cash flow | (9,001) | (64,039) | |
Interest + Exchange and monetary variation | (711) | ||
Others | 4,856 | 21,854 | |
Liabilities from financing activities at ending of period | 4,856 | ||
Accounts payable from acquisition of investments non current [member] | |||
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | 4,856 | 26,710 | |
Others | (4,856) | (21,854) | |
Liabilities from financing activities at ending of period | R$ 4856 | ||
Debentures non current [member] | |||
Changes in liabilities from financing activities [Abstract] | |||
Liabilities from financing activities at beginning of period | 1,068,979 | ||
Interest + Exchange and monetary variation | 81,259 | ||
Proceeds loans and financing obtained | (183,852) | ||
Others | R$ 966386 | 1,068,979 | |
Liabilities from financing activities at ending of period | R$ 1068979 |
Earnings (loss) per share (Deta
Earnings (loss) per share (Detail) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
(Loss) earnings per share | |||
Profit (loss) attributable to equity holders of the parent | R$ 652754 | R$ 43793 | R$ 360789 |
Weighted average number of ordinary shares outstanding (shares/thousand) | 45,637 | 45,637 | 45,637 |
Basic profit (loss) per share | R$ 14.3032 | R$ 0.9596 | R$ 7.9057 |
Diluted | |||
Profit (loss) attributable to equity holders of the parent | R$ 652754 | R$ 43793 | R$ 360789 |
Weighted average number of ordinary shares outstanding (shares/thousand) | 47,620 | 45,691 | 45,637 |
Basic profit (loss) per share | R$ 13.7076 | R$ 0.9585 | R$ 7.9057 |
Basic | |||
Profit (loss) from continuing operations attributable to equity holders of the parent | R$ 681356 | R$ 29451 | R$ 364077 |
Weighted average number of ordinary shares (shares/thousand) | 45,637 | 45,637 | 45,637 |
Basic profit (loss) per share | R$ 14.9299 | R$ 0.6453 | R$ 7.9777 |
Diluted | |||
Profit (loss) from continuing operations attributable to equity holders of the parent | R$ 681356 | R$ 29451 | R$ 364077 |
Weighted average number of ordinary shares (shares/thousand) | 47,620 | 45,691 | 45,637 |
Diluted profit (loss) per share | R$ 14.3082 | R$ 0.6446 | R$ 7.9777 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of distributable net profit and earnings per share [line items] | ||
Number of warrants outstanding excluded from computation of earnings per share | 28,249,999 | |
Warrants exercise price | 11.50 | 11.50 |