(a) Provision changes
| Schedule of provision changes |
|
|
|
|
|
|
| |
Balance as of December 31, 2020 |
Effect of changes in foreign exchange rates |
Additions |
Provisions used |
Provisions reversed |
Balance as of December 31, 2021 |
| |
| Provision for disputes and litigation |
|
| Taxes on sales |
184.1 |
- |
198.5 |
(57.3) |
(106.7) |
218.6 |
| Labor |
129.9 |
(0.8) |
163.1 |
(147.2) |
(20.8) |
124.2 |
| Civil |
86.8 |
(2.2) |
273.9 |
(71.8) |
(33.8) |
252.9 |
| Other taxes |
156.7 |
2.0 |
14.6 |
(5.2) |
(5.1) |
163.0 |
| Total provision for disputes and litigation |
557.5 |
(1.0) |
650.1 |
(281.5) |
(166.4) |
758.7 |
| |
| Restructuring |
14.5 |
1.2 |
6.8 |
(5.1) |
- |
17.4 |
| |
|
|
|
|
|
|
| Total provisions |
572.0 |
0.2 |
656.9 |
(286.6) |
(166.4) |
776.1 |
| |
Balance as of December 31, 2021 |
Effect of changes in foreign exchange rates |
Additions |
Provisions used |
Provisions reversed |
Balance as of December 31, 2022 |
| |
|
|
|
|
|
|
| Provision for disputes and litigation |
|
|
| Taxes on sales |
218.6 |
- |
157.6 |
(85.8) |
(43.3) |
247.1 |
| Labor |
124.2 |
(4.6) |
194.2 |
(162.0) |
(19.7) |
132.1 |
| Civil |
252.9 |
(17.5) |
312.7 |
(196.6) |
(15.6) |
335.9 |
| Other taxes |
163.0 |
(8.1) |
60.1 |
(7.2) |
(15.0) |
192.8 |
| Total provision for disputes and litigation |
758.7 |
(30.2) |
724.6 |
(451.6) |
(93.6) |
907.9 |
| |
| Restructuring |
17.4 |
(2.0) |
- |
(3.6) |
- |
11.8 |
| |
|
|
|
|
|
|
| Total provisions |
776.1 |
(32.2) |
724.6 |
(455.2) |
(93.6) |
919.7 |
| Schedule of expected settlement |
|
|
|
|
|
| |
2022 |
|
2021 |
| |
Non-current |
Current |
|
Non-current |
Current |
| Provision for disputes and litigation |
|
| Taxes on sales |
193.8 |
53.3 |
|
163.2 |
55.4 |
| Labor |
104.9 |
27.2 |
|
96.2 |
28.0 |
| Civil |
263.0 |
72.9 |
|
194.1 |
58.8 |
| Other taxes |
170.1 |
22.7 |
|
142.1 |
20.9 |
| Total provision for disputes and litigation |
731.8 |
176.1 |
|
595.6 |
163.1 |
| |
| Restructuring |
7.2 |
4.6 |
|
8.2 |
9.2 |
| |
| Total provisions |
739.0 |
180.7 |
|
603.8 |
172.3 |
The expected settlement of provisions was based
on management’s best estimate at the balance sheet date.
| (c) | Main lawsuits with a probable likelihood of loss: |
(c.1) Sales taxes
In Brazil, the Company and its subsidiaries are parties
to various administrative and judicial proceedings related to ICMS, IPI, PIS and COFINS taxes, considered as probable likelihood of loss.
Such proceedings include, among others, tax offsetting, appropriation of tax credits and alleged insufficient payment of the respective
taxes.
(c.2) Labor
The Company and its subsidiaries are parties to labor
proceedings with former employees or former employees of service providers. The main issues involve overtime and related effects and respective
charges.
(c.3) Civil
The Company and its subsidiaries are involved in civil
lawsuits considered as representing a probable likelihood of loss. The most relevant portion of these lawsuits refers to former distributors,
mainly in Brazil, mostly claiming damages resulting from the termination of their contracts.
The processes representing possible probabilities are disclosed
in Note 30 - Contingencies.
|