EMPLOYEE BENEFITS (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Employee Benefits |
|
| Schedule of net liability for defined benefit plans |
| Schedule of net liability
for defined benefit plans |
|
|
|
| |
2022 |
2021 |
2020 |
| Present value of funded obligations |
(5,476.5) |
(7,354.3) |
(7,582.0) |
| Fair value of plan assets |
4,543.3 |
5,638.0 |
5,533.3 |
| Present value of net obligations |
(933.2) |
(1,716.3) |
(2,048.7) |
| Present value of unfunded obligations |
(921.0) |
(1,165.4) |
(1,195.6) |
| Present value of net obligations |
(1,854.2) |
(2,881.7) |
(3,244.3) |
| Asset ceiling |
(163.3) |
(180.1) |
(160.5) |
| Net liabilities |
(2,017.5) |
(3,061.8) |
(3,404.8) |
| Other long term employee benefits |
(87.1) |
(104.3) |
(105.5) |
| Total employee benefits |
(2,104.6) |
(3,166.1) |
(3,510.3) |
| Employee benefits amount in the balance sheet |
|
| Liabilities |
(2,161.2) |
(3,194.0) |
(3,543.9) |
| Assets |
56.6 |
27.9 |
33.6 |
| Net liabilities |
(2,104.6) |
(3,166.1) |
(3,510.3) |
|
| Schedule of defined benefit obligations |
| Schedule of defined benefit obligations |
|
|
|
| |
2022 |
2021 |
2020 |
| Defined benefit obligation at January 1 |
(8,519.7) |
(8,777.6) |
(6,845.0) |
| Service costs |
(47.0) |
(58.0) |
(51.4) |
| Interest costs |
(353.2) |
(324.3) |
(339.4) |
| Gains and (losses) on settlements or reductions in benefits |
3.8 |
3.6 |
44.1 |
| Contributions by plan participants |
(5.6) |
(6.9) |
(6.1) |
| Actuarial gains and (losses) - geographical assumptions |
- |
52.3 |
54.5 |
| Actuarial gains and (losses) - financial assumptions |
1,333.6 |
726.8 |
(443.6) |
| Experience adjustments |
(171.5) |
(213.0) |
(180.9) |
| Reclassifications |
- |
(1.0) |
- |
| Effect of exchange rate fluctuations |
787.7 |
(495.3) |
(1,531.7) |
| Benefits paid |
574.4 |
573.7 |
521.9 |
| Defined benefit obligation at December, 31 |
(6,397.5) |
(8,519.7) |
(8,777.6) |
|
| Schedule of changes in the fair value of plan assets |
| Schedule of changes in the fair value of plan assets |
|
|
|
| |
2022 |
2021 |
2020 |
| Fair value of plan assets at January 1 |
5,638.0 |
5,533.3 |
4,582.4 |
| Interest income |
262.1 |
223.9 |
245.2 |
| Administrative costs |
(5.2) |
(5.8) |
(5.2) |
| Expected return, excluding interest income |
(614.6) |
(148.3) |
89.4 |
| Contributions by employer |
316.0 |
342.0 |
306.8 |
| Contributions by plan participants |
5.8 |
7.1 |
6.3 |
| Exchange differences |
(482.6) |
263.1 |
812.1 |
| Transfers |
- |
- |
20.0 |
| Curtailments, settlements and other |
(1.8) |
(3.6) |
(1.8) |
| Benefits paid, excluding administrative costs |
(574.4) |
(573.7) |
(521.9) |
| Fair value of plan assets at December, 31 |
4,543.3 |
5,638.0 |
5,533.3 |
|
| Schedule of asset ceiling |
| Schedule of asset ceiling |
|
|
|
| |
2022 |
2021 |
2020 |
| Asset ceiling impact at January 1 |
27.9 |
33.6 |
56.2 |
| Interest income/(expenses) |
- |
1.3 |
12.2 |
| Change in asset ceiling excluding amounts included in interest income/(expenses) |
30.2 |
(9.0) |
(48.9) |
| Effects of exchange rate fluctuations |
(1.5) |
2.0 |
14.1 |
| Asset ceiling impact at December 31 |
56.6 |
27.9 |
33.6 |
|
| Schedule of defined benefit plans recognized in the income statement |
| Schedule of defined benefit plans recognized in the income statement |
|
|
|
| |
2022 |
2021 |
2020 |
| Current service costs |
(47.0) |
(58.0) |
(51.4) |
| Administrative costs |
(5.2) |
(5.8) |
(5.2) |
| (Gains) losses on settlement and curtailment |
2.2 |
1.2 |
42.6 |
| Income from operations |
(50.0) |
(62.6) |
(14.0) |
| Financial costs |
(107.8) |
(115.6) |
(117.2) |
| Total employee benefit expenses |
(157.8) |
(178.2) |
(131.2) |
|
| Schedule of employee benefit revenue |
| Schedule of employee benefit revenue |
|
|
|
| |
2022 |
2021 |
2020 |
| Other operating income/(expenses), net |
(0.1) |
(0.2) |
- |
| Cost of sales |
(26.4) |
(33.0) |
(28.9) |
| Sales and marketing expenses |
(9.4) |
(11.7) |
(9.9) |
| Administrative income/(expenses) |
(14.1) |
(17.7) |
24.8 |
| Financial expense |
(107.8) |
(115.6) |
(117.2) |
| |
(157.8) |
(178.2) |
(131.2) |
|
| Schedule of assumptions |
| Schedule of assumptions |
|
|
|
| |
2022 (i) |
2021 (i) |
2020 (i) |
| Discount
rate |
5.1% to 11.0% |
2.9% to 10.0% |
2.4% to 10.0% |
| Inflation |
2.0% to 3.5% |
2.0% to 3.5% |
2.0% to 3.5% |
| Future salary increases |
1.0% to 7.1% |
1.0% to 7.1% |
1.0% to 7.1% |
| Future pension increases |
2.7% to 3.8% |
2.5% to 3.8% |
2.0% to 3.8% |
| Medical cost trend rate |
6.4% to 7.1% p.a. reducing to 7.1% |
4.2% to 6.9% p.a. reducing to 6.9% |
4.5% to 6.9% p.a. reducing to 6.9% |
| Dental claims trend rate |
3.5% |
3.3% |
3.3% |
| |
| Life expectancy for an over 65 years old male |
84 to 87 |
85 to 87 |
84 to 87 |
| Life expectancy for an over 65 years old female |
86 to 89 |
87 to 89 |
86 to 89 |
| (i) |
Includes assumptions in Brazil, Central America and Caribbean, Latin America - South and Canada. |
|
| Schedule of weighted principal assumptions |
| Schedule of weighted principal assumptions |
|
|
|
|
|
|
|
|
|
| In millions of Brazilian Reais |
|
2022 |
|
2021 |
|
2020 |
| |
Change in assumption |
Increase in assumption |
Decrease in assumption |
Increase in assumption |
Decrease in assumption |
Increase in assumption |
Decrease in assumption |
| Medical cost trend rate |
100 bases points |
(94.3) |
81.8 |
|
(114.7) |
98.6 |
|
(139.4) |
118.6 |
| Discount rate |
50 bases points |
307.9 |
(328.0) |
|
442.0 |
(470.3) |
|
461.0 |
(492.6) |
| Future salary increase |
50 bases points |
(17.6) |
16.5 |
|
(19.8) |
18.6 |
|
(24.3) |
23.3 |
| Longevity |
1
One year |
(221.5) |
213.5 |
|
(287.6) |
279.5 |
|
(295.6) |
287.1 |
|
| Schedule of plans assets |
| Schedule of plans assets |
|
|
|
|
|
|
|
|
|
|
|
| |
2022 |
|
2021 |
|
2020 |
| |
Rated |
Unrated |
Total |
|
Rated |
Unrated |
Total |
|
Rated |
Unrated |
Total |
| Government bonds |
43% |
- |
43% |
|
43% |
- |
43% |
|
52% |
- |
52% |
| Corporate bonds |
10% |
- |
10% |
|
10% |
- |
10% |
|
6% |
- |
6% |
| Equity instruments |
15% |
- |
15% |
|
15% |
- |
15% |
|
6% |
- |
6% |
| Cash |
6% |
- |
6% |
|
6% |
- |
6% |
|
1% |
- |
1% |
| Others |
26% |
- |
26% |
|
26% |
- |
26% |
|
35% |
- |
35% |
|