LATAM AIRLINES GROUP S.A. | CIK:0001047716 | 3

  • Filed: 4/5/2018
  • Entity registrant name: LATAM AIRLINES GROUP S.A. (CIK: 0001047716)
  • Generator: S2 Filings
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1047716/000161577418002424/0001615774-18-002424-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1047716/000161577418002424/ltm-20171231.xml
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  • ifrs-full:DisclosureOfOtherProvisionsExplanatory

    Other provisions:

     

        Current liabilities     Non-current liabilities     Total Liabilities  
        As of     As of     As of     As of     As of     As of  
        December 31,     December 31,     December 31,     December 31,     December 31,     December 31,  
        2017     2016     2017     2016     2017     2016  
        ThUS$     ThUS$     ThUS$     ThUS$     ThUS$     ThUS$  
                                         
    Provision for contingencies (1)                                    
    Tax contingencies     1,913       1,425       258,305       313,064       260,218       314,489  
    Civil contingencies     497       993       62,858       56,413       63,355       57,406  
    Labor contingencies     373       225       28,360       29,307       28,733       29,532  
    Other     -       -       15,187       15,046       15,187       15,046  
    Provision for European Commision investigation (2)     -       -       9,883       8,664       9,883       8,664  
    Total other provisions (3)     2,783       2,643       374,593       422,494       377,376       425,137  

     

    (1) Provisions for contingencies:

     

    The tax contingencies correspond to litigation and tax criteria related to the tax treatment applicable to direct and indirect taxes, which are found in both administrative and judicial stage.

     

    The civil contingencies correspond to different demands of civil order filed against the Company.

     

    The labor contingencies correspond to different demands of labor order filed against the Company.

     

    The Provisions are recognized in the consolidated income statement in administrative expenses or tax expenses, as appropriate.

     

    (2) Provision made for proceedings brought by the European Commission for possible breaches of free competition in the freight market.

     

    (3) Total other provision at December 31, 2017, and 2016, include the fair value correspond to those contingencies from the business combination with TAM S.A and subsidiaries, with a probability of loss under 50%, which are not provided for the normal application of IFRS enforcement and that only must be recognized in the context of a business combination in accordance with IFRS 3.