v3.22.2.2
Property, plant and equipment
 9 Months Ended
Sep. 30, 2022
Disclosure Of Property Plant And Equipment Text Block Abstract  
Property, plant and equipment
11Property, plant and equipment

 

11.1Rollforward

 

   As of
December 31,
2021		   Additions   Lease
modification		   Write-off   Depreciation   Transfer
and others		   As of
September 30,
2022		 
Land   570    31    
-
    
-
    
-
    
-
    601 
Buildings   656    188    
-
    
-
    (13)   (48)   783 
Improvements   3,596    2,423    
-
    (25)   (202)   137    5,929 
Equipment   828    428    
-
    (2)   (129)   71    1,196 
Facilities   362    162    
-
    (4)   (25)   7    502 
Furniture and appliances   416    132    
-
    (1)   (50)   74    571 
Constructions in progress   235    477    
-
    (1)   
-
    (178)   533 
Others   37    12    
-
    
-
    (12)   12    49 
Subtotal   6,700    3,853    
-
    (33)   (431)   75    10,164 
Lease - right of use:                                   
Buildings   3,604    3,005    479    (10)   (244)   (75)   6,759 
Equipment   16    
-
    
-
    
-
    (4)   
-
    12 
Subtotal   3,620    3,005    479    (10)   (248)   (75)   6,771 
Total   10,320    6,858    479    (43)   (679)   -    16,935 

 

   As of
December 31,
2020		   Additions   Lease
modification		   Write-off   Depreciation   Transfer and others (i)   As of September 30,
2021		 
Land   481    191    
   -
    (2)   
-
    (122)   548 
Buildings   609    113    
-
    
-
    (11)   (137)   574 
Improvements   2,598    809    
-
    (3)   (131)   (44)   3,229 
Equipment   635    164    
-
    (2)   (94)   8    711 
Facilities   269    61    
-
    
-
    (18)   1    313 
Furniture and appliances   340    67    
-
    
-
    (38)   10    379 
Constructions in progress   78    209    
-
    
-
    
-
    (83)   204 
Others   37    4    
-
    
-
    (11)   7    37 
Subtotal   5,047    1,618    
-
    (7)   (303)   (360)   5,995 
Lease - right of use:                                   
Buildings   2,423    364    359    (89)   (177)   4    2,884 
Equipment   6    16    
-
    
-
    (4)   
-
    18 
Subtotal   2,429    380    359    (89)   (181)   4    2,902 
Total   7,476    1,998    359    (96)   (484)   (356)   8,897 

 

(i)In the period ended September 30, 2021, transfers of property, plant and equipment items to “Assets held for sale” in the amount of R$ 356 are recorded.

 

11.2Breakdown

 

   As of 
   September 30, 2022   December 31, 2021 
   Historical cost   Accumulated
depreciation		   Net amount   Historical cost   Accumulated
depreciation		   Net amount 
Land   601    
-
    601    570    
-
    570 
Buildings   907    (124)   783    767    (111)   656 
Improvements   6,921    (992)   5,929    4,387    (791)   3,596 
Equipment   1,865    (669)   1,196    1,373    (545)   828 
Facilities   636    (134)   502    472    (110)   362 
Furniture and appliances   840    (269)   571    635    (219)   416 
Construction in progress   533    
-
    533    235    
-
    235 
Others   139    (90)   49    115    (78)   37 
    12,442    (2,278)   10,164    8,554    (1,854)   6,700 
Finance lease                              
Buildings   8,007    (1,248)   6,759    4,566    (962)   3,604 
Equipment   58    (46)   12    61    (45)   16 
    8,065    (1,294)   6,771    4,627    (1,007)   3,620 
Total Property, plant and equipment   20,507    (3,572)   16,935    13,181    (2,861)   10,320 

 

11.3Capitalization of interest on borrowings

 

Borrowing costs directly attributable to the acquisition, construction or production and interest of lease liabilities related to assets that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset, amounted to R$617 (R$19 as of September 30, 2021). The rate adopted to calculate the borrowing costs eligible for capitalization was 110.77% (130.76% as of September 30, 2021) of the CDI, corresponding to the effective interest rate of the borrowings obtained by the Company.

 

11.4Additions to property, plant and equipment for cash flow presentation purpose are as follows:

 

   As of September 30, 
   2022   2021 
Additions   6,858    1,998 
Leases   (3,005)   (380)
Capitalized interest   (617)   (19)
Financing of property, plant and equipment – Additions   (2,914)   (1,510)
Financing of property, plant and equipment – Payments   2,724    1,468 
Total   3,046    1,557 

 

Additions made by the Company refer to purchases of operating assets, purchases of land and buildings for expansion of activities, building of new stores and distribution centers, modernization of distribution centers, renovation of various stores, and investments in equipment and information technology.

 

The additions to and payments for property, plant and equipment items previously mentioned are presented to show only the purchases for the periods, in order to reconcile with the statement of cash flows and the total additions included in the table.

 

11.5Other information

 

On September 30, 2022, the Company recorded in the cost of sales and services the amount of R$51 (R$38 on September 30, 2021), relating to the depreciation of machinery, building and facilities of distribution centers.