UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16
UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of September, 2016.
Commission File Number 33-65728
CHEMICAL AND MINING COMPANY OF CHILE INC.
(Translation of registrant’s name into
English)
El Trovador 4285, Santiago, Chile (562) 2425-2000
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.
Form 20-F:
x
Form 40-F
¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule 101(b)(1) only permits the submission
in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission
in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish
and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the
registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s
securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed
to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission
or other Commission filing on EDGAR.
SQM S.A.
|
|
El Trovador 4285,
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
SQM Salar S.A.
|
|
Santiago, Chile. September 14, 2016.-
Sociedad
Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reports the translation of its financial
statements for the six months ended June 30, 2016, the Spanish version of which was filed with the Chilean Superintendency of Securities
and Insurance (
Superintendencia de Valores y Seguros
or “SVS”) on August 24, 2016.
SQM Salar S.A.
|
|
CONSOLIDATED
FINANCIAL STATEMENTS
For the period
ended
June 30, 2016
Sociedad Química y Minera de Chile
S.A. and Subsidiaries
In Thousands
of United States Dollars
This document includes:
|
-
|
Report of Independent Register Public Accounting Firms
|
|
-
|
Consolidated Classified Statements of Financial Position
|
|
-
|
Consolidated Statements of Income by Function
|
|
-
|
Consolidated Statements of Comprehensive Income
|
|
-
|
Consolidated Statements of Cash Flows
|
|
-
|
Consolidated Statements of Changes in Equity
|
|
-
|
Notes to the Consolidated Financial Statements
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Table of
Contents –Consolidated Financial Statements
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Classified Statements of Financial
Position
Assets
|
|
|
Note
|
|
|
As of June
30, 2016
ThUS$
|
|
|
As of
December
31, 2015
ThUS$
|
|
|
|
|
|
|
Unaudited
|
|
|
Audited
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
7.1
|
|
|
|
582,991
|
|
|
|
527,259
|
|
Other current financial assets
|
|
|
10.1
|
|
|
|
231,622
|
|
|
|
636,325
|
|
Other current non-financial assets
|
|
|
25
|
|
|
|
47,105
|
|
|
|
62,006
|
|
Trade and other receivables, current
|
|
|
10.2
|
|
|
|
307,203
|
|
|
|
302,225
|
|
Trade receivables due from related parties, current
|
|
|
9.5
|
|
|
|
77,327
|
|
|
|
99,907
|
|
Current inventories
|
|
|
8
|
|
|
|
1,017,854
|
|
|
|
1,003,846
|
|
Current tax assets
|
|
|
28.1
|
|
|
|
60,613
|
|
|
|
65,277
|
|
Total current assets
|
|
|
|
|
|
|
2,324,715
|
|
|
|
2,696,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets
|
|
|
10.1
|
|
|
|
2,741
|
|
|
|
486
|
|
Other non-current non-financial assets
|
|
|
25
|
|
|
|
26,103
|
|
|
|
33,526
|
|
Trade receivables, non-current
|
|
|
10.2
|
|
|
|
1,250
|
|
|
|
1,050
|
|
Investments in associates
|
|
|
11.1
|
|
|
|
56,449
|
|
|
|
49,836
|
|
Investments in joint ventures
|
|
|
12.3
|
|
|
|
58,694
|
|
|
|
29,466
|
|
Intangible assets other than goodwill
|
|
|
13.1
|
|
|
|
108,970
|
|
|
|
110,428
|
|
Goodwill
|
|
|
13.1
|
|
|
|
38,088
|
|
|
|
38,388
|
|
Property, plant and equipment
|
|
|
14.1
|
|
|
|
1,621,593
|
|
|
|
1,683,576
|
|
Deferred tax assets
|
|
|
28.4
|
|
|
|
643
|
|
|
|
161
|
|
Total non-current assets
|
|
|
|
|
|
|
1,914,531
|
|
|
|
1,946,918
|
|
Total assets
|
|
|
|
|
|
|
4,239,246
|
|
|
|
4,643,762
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Classified Statements of Financial Position, (continued)
Liabilities and Equity
|
|
|
Note
|
|
|
As of June 30,
2016
ThUS$
|
|
|
As of
December
31, 2015
ThUS$
|
|
|
|
|
|
|
Unaudited
|
|
|
Audited
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current financial liabilities
|
|
|
10.4
|
|
|
|
242,699
|
|
|
|
402,030
|
|
Trade and other payables, current
|
|
|
10.5
|
|
|
|
129,232
|
|
|
|
136,840
|
|
Trade payables due to related parties, current
|
|
|
9.6
|
|
|
|
-
|
|
|
|
435
|
|
Other current provisions
|
|
|
18.1
|
|
|
|
33,150
|
|
|
|
28,141
|
|
Current tax liabilities
|
|
|
28.2
|
|
|
|
40,946
|
|
|
|
52,070
|
|
Provisions for employee benefits, current
|
|
|
15.1
|
|
|
|
7,980
|
|
|
|
13,445
|
|
Other current non-financial liabilities
|
|
|
18.3
|
|
|
|
116,555
|
|
|
|
69,966
|
|
Total current liabilities
|
|
|
|
|
|
|
570,562
|
|
|
|
702,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial liabilities
|
|
|
10.4
|
|
|
|
1,097,220
|
|
|
|
1,290,203
|
|
Other non-current provisions
|
|
|
18.1
|
|
|
|
8,890
|
|
|
|
8,890
|
|
Deferred tax liabilities
|
|
|
28.4
|
|
|
|
219,481
|
|
|
|
219,391
|
|
Provisions for employee benefits, non-current
|
|
|
15.1
|
|
|
|
22,188
|
|
|
|
21,995
|
|
Total non-current liabilities
|
|
|
|
|
|
|
1,347,779
|
|
|
|
1,540,479
|
|
Total liabilities
|
|
|
|
|
|
|
1,918,341
|
|
|
|
2,243,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
17
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
|
477,386
|
|
|
|
477,386
|
|
Retained earnings
|
|
|
|
|
|
|
1,803,002
|
|
|
|
1,882,196
|
|
Other reserves
|
|
|
|
|
|
|
(19,521
|
)
|
|
|
(19,797
|
)
|
Equity attributable to owners of the Parent
|
|
|
|
|
|
|
2,260,867
|
|
|
|
2,339,785
|
|
Non-controlling interests
|
|
|
|
|
|
|
60,038
|
|
|
|
60,571
|
|
Total equity
|
|
|
|
|
|
|
2,320,905
|
|
|
|
2,400,356
|
|
Total liabilities and equity
|
|
|
|
|
|
|
4,239,246
|
|
|
|
4,643,762
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Income by Function
|
|
|
|
|
January to June
|
|
|
April to June
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Note
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
27.1
|
|
|
|
881,459
|
|
|
|
871,768
|
|
|
|
489,614
|
|
|
|
484,249
|
|
Cost of sales
|
|
|
27.2
|
|
|
|
(620,967
|
)
|
|
|
(576,523
|
)
|
|
|
(342,682
|
)
|
|
|
(319,699
|
)
|
Gross profit
|
|
|
|
|
|
|
260,492
|
|
|
|
295,245
|
|
|
|
146,932
|
|
|
|
164,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
27.3
|
|
|
|
5,662
|
|
|
|
7,291
|
|
|
|
1,638
|
|
|
|
2,413
|
|
Administrative expenses
|
|
|
27.4
|
|
|
|
(40,807
|
)
|
|
|
(44,547
|
)
|
|
|
(22,716
|
)
|
|
|
(23,382
|
)
|
Other expenses by function
|
|
|
27.5
|
|
|
|
(9,611
|
)
|
|
|
(25,216
|
)
|
|
|
(3,167
|
)
|
|
|
(10,336
|
)
|
Other gains (losses)
|
|
|
27.6
|
|
|
|
755
|
|
|
|
3,895
|
|
|
|
(432
|
)
|
|
|
3,502
|
|
Profit (loss) from operating activities
|
|
|
|
|
|
|
216,491
|
|
|
|
236,668
|
|
|
|
122,255
|
|
|
|
136,747
|
|
Finance income
|
|
|
|
|
|
|
6,617
|
|
|
|
6,012
|
|
|
|
2,309
|
|
|
|
2,662
|
|
Finance costs
|
|
|
22
|
|
|
|
(32,421
|
)
|
|
|
(34,973
|
)
|
|
|
(14,990
|
)
|
|
|
(18,038
|
)
|
Share of profit of associates and joint ventures accounted for using the equity method
|
|
|
11-12
|
|
|
|
10,596
|
|
|
|
6,843
|
|
|
|
4,852
|
|
|
|
3,284
|
|
Foreign currency translation differences
|
|
|
23
|
|
|
|
(1,594
|
)
|
|
|
(3,209
|
)
|
|
|
2,579
|
|
|
|
(12,918
|
)
|
Profit (loss) before taxes
|
|
|
|
|
|
|
199,689
|
|
|
|
211,341
|
|
|
|
117,005
|
|
|
|
111,737
|
|
Income tax expense, continuing operations
|
|
|
28.4
|
|
|
|
(57,291
|
)
|
|
|
(55,667
|
)
|
|
|
(33,255
|
)
|
|
|
(27,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) from continuing operations
|
|
|
|
|
|
|
142,398
|
|
|
|
155,674
|
|
|
|
83,750
|
|
|
|
83,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
142,398
|
|
|
|
155,674
|
|
|
|
83,750
|
|
|
|
83,862
|
|
Profit attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent
|
|
|
|
|
|
|
141,613
|
|
|
|
154,904
|
|
|
|
83,087
|
|
|
|
83,219
|
|
Non-controlling interests
|
|
|
|
|
|
|
785
|
|
|
|
770
|
|
|
|
663
|
|
|
|
643
|
|
Profit for the year
|
|
|
|
|
|
|
142,398
|
|
|
|
155,674
|
|
|
|
83,750
|
|
|
|
83,862
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Income by Function, (continued)
|
|
|
|
|
January to June
|
|
|
April to June
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Note
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (US$ per share)
|
|
|
21
|
|
|
|
0.5381
|
|
|
|
0.5885
|
|
|
|
0.3157
|
|
|
|
0.3161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (US$ per share) from continuing operations
|
|
|
|
|
|
|
0.5381
|
|
|
|
0.5885
|
|
|
|
0.3157
|
|
|
|
0.3161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (US$ per share)
|
|
|
21
|
|
|
|
0.5381
|
|
|
|
0.5885
|
|
|
|
0.3157
|
|
|
|
0.3161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (US$ per share) from continuing operations
|
|
|
|
|
|
|
0.5381
|
|
|
|
0.5885
|
|
|
|
0.3157
|
|
|
|
0.3161
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Comprehensive
Income
|
|
January to June
|
|
|
April to June
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Statements of comprehensive income
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
142.398
|
|
|
|
155,674
|
|
|
|
83,750
|
|
|
|
83,862
|
|
Components of other comprehensive income before taxes and foreign currency translation differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from foreign currency translation differences, before taxes
|
|
|
1,316
|
|
|
|
(4,306
|
)
|
|
|
(146
|
)
|
|
|
(1,144
|
)
|
Other comprehensive income before taxes and foreign currency translation differences
|
|
|
(1,316
|
)
|
|
|
(4,306
|
)
|
|
|
(146
|
)
|
|
|
(1,144
|
)
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss from cash flow hedges before taxes
|
|
|
(359
|
)
|
|
|
1,217
|
|
|
|
2,635
|
|
|
|
(2,379
|
)
|
Other comprehensive income before taxes and cash flow hedges
|
|
|
(359
|
)
|
|
|
1,217
|
|
|
|
2,635
|
|
|
|
(2,379
|
)
|
Other comprehensive income before taxes and actuarial gains (losses) from defined benefit plans
|
|
|
(1,014
|
)
|
|
|
657
|
|
|
|
(1,013
|
)
|
|
|
675
|
|
Other components of other comprehensive income before taxes
|
|
|
(57
|
)
|
|
|
(2,432
|
)
|
|
|
1,476
|
|
|
|
(2,848
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes associated with components of other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes associated with cash flow hedges in other comprehensive income
|
|
|
148
|
|
|
|
(382
|
)
|
|
|
(617
|
)
|
|
|
433
|
|
Income taxes related to defined benefit plans in other comprehensive income
|
|
|
197
|
|
|
|
-
|
|
|
|
197
|
|
|
|
-
|
|
Income taxes associated with components of other comprehensive income
|
|
|
345
|
|
|
|
(382
|
)
|
|
|
(420
|
)
|
|
|
433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
288
|
|
|
|
(2,814
|
)
|
|
|
1,056
|
|
|
|
(2,415
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
|
142,686
|
|
|
|
152,860
|
|
|
|
84,806
|
|
|
|
81,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent
|
|
|
141,889
|
|
|
|
152,152
|
|
|
|
84,136
|
|
|
|
80,843
|
|
Non-controlling interests
|
|
|
797
|
|
|
|
708
|
|
|
|
670
|
|
|
|
604
|
|
Total comprehensive income
|
|
|
142,686
|
|
|
|
152,860
|
|
|
|
84,806
|
|
|
|
81,447
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Cash Flows
Consolidated Statements of cash flows
|
|
Note
|
|
06/30/2016
ThUS$
|
|
|
06/30/2015
ThUS$
|
|
|
|
|
|
Unaudited
|
|
Cash flows from (used in) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Types of receipts from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from sales of goods and rendering of services
|
|
|
|
|
866,528
|
|
|
|
909,875
|
|
Cash receipts from premiums and benefits, annuities and other benefits from policies entered
|
|
|
|
|
1,295
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Types of payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments to suppliers for the provision of goods and services
|
|
|
|
|
(473,072
|
)
|
|
|
(534,958
|
)
|
Cash payments to and on behalf of employees
|
|
|
|
|
(91,575
|
)
|
|
|
(24,425
|
)
|
Other payments related to operating activities
|
|
|
|
|
(4,920
|
)
|
|
|
(5,393
|
)
|
Dividends received
|
|
|
|
|
2,167
|
|
|
|
4,697
|
|
Interest paid
|
|
|
|
|
(1,274
|
)
|
|
|
(32,443
|
)
|
Interest received
|
|
|
|
|
6,617
|
|
|
|
6,012
|
|
Reimbursed (paid) income taxes
|
|
|
|
|
(38,263
|
)
|
|
|
(40,369
|
)
|
Other incomes (outflows) of cash
|
|
|
|
|
(8,503
|
)
|
|
|
9,821
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from (used in) operating activities
|
|
|
|
|
259,000
|
|
|
|
292,817
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities
|
|
|
|
|
|
|
|
|
|
|
Other cash payments made to acquire interest in joint ventures
|
|
|
|
|
(25,000
|
)
|
|
|
(59
|
)
|
Proceeds from the sale of property, plant and equipment
|
|
|
|
|
575
|
|
|
|
221
|
|
Acquisition of property, plant and equipment
|
|
|
|
|
(64,399
|
)
|
|
|
(53,392
|
)
|
Proceeds from sales of intangible assets
|
|
|
|
|
1,706
|
|
|
|
3,283
|
|
Cash advances and loans granted to third parties
|
|
|
|
|
56
|
|
|
|
755
|
|
Other incomes (outflows) of cash (*)
|
|
|
|
|
395,846
|
|
|
|
(61,572
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from (used in) investing activities
|
|
|
|
|
308,784
|
|
|
|
(110,764
|
)
|
(*) Includes other cash receipts (payments),
investments and redemptions of time deposits and other financial instruments, which do not qualify as cash and cash equivalents
in accordance with IAS 7.7 as they record a maturity date from their date of origin greater than 90 days.
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Cash Flows, (continued)
|
|
Note
|
|
06/30/2016
ThUS$
|
|
|
06/30/2015
ThUS$
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings
|
|
|
|
|
60,000
|
|
|
|
80,000
|
|
Total proceeds from borrowings
|
|
|
|
|
60,000
|
|
|
|
80,000
|
|
Repayment of borrowings
|
|
|
|
|
(200,000
|
)
|
|
|
(100,000
|
)
|
Dividends paid
|
|
|
|
|
(175,111
|
)
|
|
|
(39,955
|
)
|
Other cash receipts (payments)
|
|
|
|
|
(200,000
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from (used in) financing activities
|
|
|
|
|
(515,111
|
)
|
|
|
(59,955
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents before the effect of changes in the exchange rate
|
|
|
|
|
52,673
|
|
|
|
122,099
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of exchange rate fluctuations on cash held
|
|
|
|
|
3,059
|
|
|
|
(3,716
|
)
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
|
55,732
|
|
|
|
118,382
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
527,259
|
|
|
|
354,566
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
582,991
|
|
|
|
472,948
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Changes in Equity
2016
|
|
Share
capital
|
|
|
Foreign
currency
translation
difference
reserves
|
|
|
Cash flow
hedge
reserves
|
|
|
Actuarial
gains (losses)
from defined
benefit plans
|
|
|
Other
miscellaneous
reserves
|
|
|
Other
reserves
|
|
|
Retained
earnings
|
|
|
Equity
attributable
to owners of
the Parent
|
|
|
Non-controlling
interests
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity at beginning of the year
|
|
|
477,386
|
|
|
|
(14,035
|
)
|
|
|
(1,699
|
)
|
|
|
(2,386
|
)
|
|
|
(1,677
|
)
|
|
|
(19,797
|
)
|
|
|
1,882,196
|
|
|
|
2,339,785
|
|
|
|
60,571
|
|
|
|
2,400,356
|
|
Profit for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
141,613
|
|
|
|
141,613
|
|
|
|
785
|
|
|
|
142,398
|
|
Other comprehensive income
|
|
|
-
|
|
|
|
449
|
|
|
|
(211
|
)
|
|
|
(792
|
)
|
|
|
830
|
|
|
|
276
|
|
|
|
-
|
|
|
|
276
|
|
|
|
12
|
|
|
|
288
|
|
Comprehensive income
|
|
|
-
|
|
|
|
449
|
|
|
|
(211
|
)
|
|
|
(792
|
)
|
|
|
830
|
|
|
|
276
|
|
|
|
141,613
|
|
|
|
141,889
|
|
|
|
797
|
|
|
|
142,686
|
|
Dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(220,807
|
)
|
|
|
(220,807
|
)
|
|
|
(1,330
|
)
|
|
|
(222,137
|
)
|
Increase (decrease) in equity
|
|
|
-
|
|
|
|
449
|
|
|
|
(211
|
)
|
|
|
(792
|
)
|
|
|
830
|
|
|
|
276
|
|
|
|
(79,194
|
)
|
|
|
(78,918
|
)
|
|
|
(533
|
)
|
|
|
(79,451
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
as of June 30, 2016 (Unaudited)
|
|
|
477,386
|
|
|
|
(13,586
|
)
|
|
|
(1,910
|
)
|
|
|
(3,178
|
)
|
|
|
(847
|
)
|
|
|
(19,521
|
)
|
|
|
1,803,002
|
|
|
|
2,260,867
|
|
|
|
60,038
|
|
|
|
2,320,905
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Sociedad Química y Minera de Chile S.A. and Subsidiaries
|
Consolidated Statements of Changes in Equity
2015
|
|
Share
capital
|
|
|
Foreign
currency
translation
difference
reserves
|
|
|
Cash flow
hedge
reserves
|
|
|
Actuarial
gains (losses)
from defined
benefit plans
|
|
|
Other
miscellaneous
reserves
|
|
|
Other
reserves
|
|
|
Retained
earnings
|
|
|
Equity
attributable
to owners of
the Parent
|
|
|
Non-controlling
interests
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity at beginning of the year
|
|
|
477,386
|
|
|
|
(7,701
|
)
|
|
|
(1,881
|
)
|
|
|
(1,903
|
)
|
|
|
(1,677
|
)
|
|
|
(13,162
|
)
|
|
|
1,775,612
|
|
|
|
2,239,836
|
|
|
|
59,867
|
|
|
|
2,299,703
|
|
Profit for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
154,904
|
|
|
|
154,904
|
|
|
|
770
|
|
|
|
155,674
|
|
Other comprehensive income
|
|
|
-
|
|
|
|
(4,244
|
)
|
|
|
993
|
|
|
|
499
|
|
|
|
-
|
|
|
|
(2,752
|
)
|
|
|
-
|
|
|
|
(2,752
|
)
|
|
|
(62
|
)
|
|
|
(2,814
|
)
|
Comprehensive income
|
|
|
-
|
|
|
|
(4,244
|
)
|
|
|
993
|
|
|
|
499
|
|
|
|
-
|
|
|
|
(2,752
|
)
|
|
|
154,904
|
|
|
|
152,152
|
|
|
|
708
|
|
|
|
152,860
|
|
Dividends
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(77,452
|
)
|
|
|
(77,452
|
)
|
|
|
(986
|
)
|
|
|
(78,438
|
)
|
Increase (decrease) in equity
|
|
|
-
|
|
|
|
(4,244
|
)
|
|
|
993
|
|
|
|
499
|
|
|
|
-
|
|
|
|
(2,752
|
)
|
|
|
77,452
|
|
|
|
74,700
|
|
|
|
(278
|
)
|
|
|
74,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity as of June 30, 2015 (Unaudited)
|
|
|
477,386
|
|
|
|
(11,945
|
)
|
|
|
(888
|
)
|
|
|
(1,404
|
)
|
|
|
(1,677
|
)
|
|
|
(15,914
|
)
|
|
|
1,853,064
|
|
|
|
2,314,536
|
|
|
|
59,589
|
|
|
|
2,374,125
|
|
The accompanying notes form an integral part of these consolidated
financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 1
|
Identification and activities of the Company and Subsidiaries
|
|
1.1
|
Historical background
|
Sociedad Química y Minera de Chile S.A.
"SQM" is an open stock corporation organized under the laws of the Republic of Chile, Tax Identification No.93.007.000-9.
The Company was incorporated through a public
deed dated June 17, 1968 by the notary public of Santiago MR. Sergio Rodríguez Garcés. Its existence was approved
by Decree No. 1,164 of June 22, 1968 of the Ministry of Finance, and it was registered on June 29, 1968 in the Registry of Commerce
of Santiago, on page 4,537 No. 1,992. SQM's headquarters are located at El Trovador 4285, Fl. 6, Las Condes, Santiago, Chile. The
Company's telephone number is +56 2 2425-2000.
The Company is registered with the Securities
Registry of the Chilean Superintendence of Securities and Insurance (SVS) under No. 0184 dated March 18. 1983 and is subject to
the inspection of the SVS.
|
1.2
|
Main domicile where the Company performs its production
activities
|
The Company’s main domiciles are: Calle
Dos Sur plot No. 5 - Antofagasta; Arturo Prat 1060 - Tocopilla; Administración Building w/n - Maria Elena; Administración
Building w/n Pedro de Valdivia - María Elena, Anibal Pinto 3228 - Antofagasta, Kilometer 1378 Ruta 5 Norte Highway - Antofagasta,
Coya Sur Plant w/n - Maria Elena, kilometer 1760 Ruta 5 Norte Highway - Pozo Almonte, Salar de Atacama (Atacama Saltpeter deposit)
potassium chloride plant s/n - San Pedro de Atacama, potassium sulfate plant at Salar de Atacama s/n – San Pedro de Atacama,
Minsal Mining Camp s/n CL Plant CL, Potassium– San Pedro de Atacama, formerly the Iris Saltpeter office S/N, Commune of Pozo
Almonte, Iquique.
|
1.3
|
Codes of main activities
|
The codes of the main activities as established
by the Chilean Superintendence of Securities and Insurance are as follows:
|
-
|
2200 (Chemical products)
|
|
1.4
|
Description of the nature of operations and main activities
|
Our products are mainly derived from mineral
deposits found in northern Chile. We mine and process caliche ore and brine deposits. The ore deposit in northern Chile contains
nitrate and iodine deposits. The brine deposits of the Salar de Atacama, in northern Chile, contain high concentrations of lithium
and potassium as well as significant concentrations of sulfate.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 1
|
Identification and Activities of the Company and Subsidiaries
(continued)
|
|
1.4
|
Description of the nature of operations and main activities,
continued
|
From our caliche
ore deposits located in the north of Chile, we produce a wide range of nitrate-based products used for specialty plant nutrients
and industrial applications, as well as iodine and iodine derivatives.
At the Salar de Atacama, we extract brines rich in
potassium, lithium and sulfate in order to produce potassium chloride, potassium sulfate, lithium solutions, and bischofite (magnesium
chloride).
We produce lithium carbonate and lithium hydroxide at our plant near the city of Antofagasta,
Chile, from the solutions brought from the Salar de Atacama.
We sell our products in over 100 countries
worldwide through our global distribution network and generate our revenue mainly from abroad.
Our products are divided into six categories:
specialty plant nutrition, iodine and its derivatives, lithium and its derivatives, industrial chemicals, potassium and other products
and services, described as follows:
Specialty plant nutrition:
SQM produces
and sells four types of specialty plant nutrition in this line of business: potassium nitrate, sodium nitrate, sodium potassium
nitrate, and specialty mixes. This business is characterized by being closely related to its customers for which it has specialized
staff who provide expert advisory in best practices for fertilization according to each type of crop, soil and climate. Within
this type of business, potassium derivative products and specially potassium nitrate have had a leading role given the contribution
they make to develop crops insuring an improvement in post-crop life in addition to improving quality, flavor and fruit color.
The potassium nitrate, which is sold in multiple formats and as a part of other specialty mixtures, is complemented by sodium nitrate,
potassium sodium nitrate, and more than 200 fertilizing mixtures.
Iodine:
The Company is a major producer
of iodine at worldwide level. Iodine is widely used in the pharmaceutical industry, technology and nutrition. Additionally, iodine
is used as X ray contrast media and polarizing film for LCD displays.
Lithium:
the Company’s lithium
is mainly used for manufacturing rechargeable batteries for cell phones, cameras and notebooks. Through the manufacturing of lithium-based
products, SQM provides significant materials to face great challenges such as the efficient use of energy and raw materials. Lithium
is mainly not used for rechargeable batteries for small electrical appliances such as mobile phones, tablets and laptops. It is
also used in industrial applications such as the manufacturing of glass, ceramics and lubricating greases. Other uses include the
pharmaceutical and chemical industries.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 1
|
Identification and Activities of the Company and Subsidiaries
(continued)
|
|
1.4
|
Description of the nature of operations and main activities,
continued
|
Industrial Chemicals:
Industrial chemicals
are products used as supplies for a number of production processes. SQM participates in this line of business producing sodium
nitrate, potassium nitrate and potassium chloride. Industrial nitrates have increased their importance over the last few years
due to their use as storage means for thermal energy at solar energy plants, which are widely used in countries as Spain and the
United States in their search for decreasing CO
2
emissions
.
Potassium:
The potassium is a primary
essential macro-nutrient, and even though does not form part of the plant’s structure, has a significant role for the developing
of its basic functions, validating the quality of a crop, increasing post-crop life, improving the crop flavor, its amount in vitamins
and its physical appearance. Within this business line, SQM has also potassium chlorate and potassium sulfate, both extracted from
the salt layer located under the Salar de Atacama (the Atacama Saltpeter Deposit).
Other products and services:
This business
line includes revenue from commodities, services, interests, royalties and dividends.
Staff
As of June 30, 2016 and December 31, 2015,
staff was detailed as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Employees
|
|
SQM S.A
|
|
|
Other
subsidiaries
|
|
|
Total
|
|
|
SQM S.A.
|
|
|
Other
subsidiaries
|
|
|
Total
|
|
Executives
|
|
|
29
|
|
|
|
75
|
|
|
|
104
|
|
|
|
26
|
|
|
|
71
|
|
|
|
97
|
|
Professionals
|
|
|
122
|
|
|
|
875
|
|
|
|
997
|
|
|
|
116
|
|
|
|
838
|
|
|
|
954
|
|
Technicians and operators
|
|
|
273
|
|
|
|
2,997
|
|
|
|
3,270
|
|
|
|
256
|
|
|
|
2,741
|
|
|
|
2,997
|
|
Foreign employees
|
|
|
-
|
|
|
|
201
|
|
|
|
201
|
|
|
|
-
|
|
|
|
202
|
|
|
|
202
|
|
Overall total
|
|
|
424
|
|
|
|
4,148
|
|
|
|
4,572
|
|
|
|
398
|
|
|
|
3,852
|
|
|
|
4,250
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 1
|
Identification and Activities of the Company and subsidiaries
(continued)
|
|
1.5
|
Other background, continued
|
Main shareholders
The table below establishes certain information
about the beneficial property of Series A and Series B shares of SQM as of June 30, 2016 and December 31, 2015. In respect to each
shareholder which has interest of more than 5% of outstanding Series A or B shares. The information below is taken from our records
and reports controlled in the Central Securities Depository and reported to the Superintendence of Securities and Insurance (SVS)
and the Chilean Stock Exchange, whose main shareholders are as follows:
Shareholder as of June 30, 2016
|
|
No. of Series A with
ownership
|
|
|
% of Series A
shares
|
|
|
No. of Series B with
ownership
|
|
|
% of Series B
shares
|
|
|
% of total
shares
|
|
The Bank of New York Mellon, ADRs
|
|
|
-
|
|
|
|
-
|
|
|
|
60.146.965
|
|
|
|
49.97
|
%
|
|
|
22.68
|
%
|
Sociedad de Inversiones Pampa Calichera S.A.(*)
|
|
|
44,892,374
|
|
|
|
31.43
|
%
|
|
|
7,007,688
|
|
|
|
5.82
|
%
|
|
|
19.72
|
%
|
Inversiones El Boldo Limitada
|
|
|
29,330,326
|
|
|
|
20.54
|
%
|
|
|
17,963,546
|
|
|
|
14.92
|
%
|
|
|
17.97
|
%
|
Inversiones RAC Chile Limitada
|
|
|
19,200,242
|
|
|
|
13.44
|
%
|
|
|
2,202,773
|
|
|
|
1.83
|
%
|
|
|
8.13
|
%
|
Potasios de Chile S.A.(*)
|
|
|
18,179,147
|
|
|
|
12.73
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
6.91
|
%
|
Inversiones PCS Chile Limitada
|
|
|
15,526,000
|
|
|
|
10.87
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
5.90
|
%
|
Banco de Chile on behalf of non-resident third parties
|
|
|
-
|
|
|
|
-
|
|
|
|
8,975,261
|
|
|
|
7.46
|
%
|
|
|
3.41
|
%
|
Inversiones Global Mining (Chile) Limitada (*)
|
|
|
8,798,539
|
|
|
|
6.16
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
3.34
|
%
|
Banco Itaú on behalf of investors
|
|
|
20,950
|
|
|
|
0.01
|
%
|
|
|
6,158,980
|
|
|
|
5.12
|
%
|
|
|
2.35
|
%
|
Inversiones La Esperanza Limitada
|
|
|
3,711,598
|
|
|
|
2.60
|
%
|
|
|
46,500
|
|
|
|
0.04
|
%
|
|
|
1.43
|
%
|
(*) Total Pampa Group 29.97%
Shareholder as of December 31, 2015
|
|
No. of Series A with
ownership
|
|
|
% of Series A
shares
|
|
|
No. of Series B with
ownership
|
|
|
% of Series B
shares
|
|
|
% of total
shares
|
|
The Bank of New York Mellon, ADRs
|
|
|
-
|
|
|
|
-
|
|
|
|
59,079,533
|
|
|
|
49,08
|
%
|
|
|
22,45
|
%
|
Sociedad de Inversiones Pampa Calichera S.A.(*)
|
|
|
44,880,793
|
|
|
|
31.43
|
%
|
|
|
7,007,688
|
|
|
|
5.82
|
%
|
|
|
19.72
|
%
|
Inversiones El Boldo Limitada
|
|
|
29,330,326
|
|
|
|
20.54
|
%
|
|
|
17,963,546
|
|
|
|
14.92
|
%
|
|
|
17.97
|
%
|
Inversiones RAC Chile Limitada
|
|
|
19,200,242
|
|
|
|
13.44
|
%
|
|
|
2,202,773
|
|
|
|
1.83
|
%
|
|
|
8.13
|
%
|
Potasios de Chile S.A.(*)
|
|
|
18,179,147
|
|
|
|
12.73
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
6.91
|
%
|
Inversiones PCS Chile Limitada
|
|
|
15,526,000
|
|
|
|
10.87
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
5.90
|
%
|
Inversiones Global Mining (Chile) Limitada (*)
|
|
|
-
|
|
|
|
-
|
|
|
|
9,055,272
|
|
|
|
7,52
|
%
|
|
|
3.44
|
%
|
Banco de Chile on behalf of non-resident third parties
|
|
|
8,798,539
|
|
|
|
6.16
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
3.34
|
%
|
Banco Itaú on behalf of investors
|
|
|
20,950
|
|
|
|
0.01
|
%
|
|
|
5,679,753
|
|
|
|
4.72
|
%
|
|
|
2.27
|
%
|
Inversiones La Esperanza Limitada
|
|
|
3,711,598
|
|
|
|
2.60
|
%
|
|
|
46,500
|
|
|
|
0.04
|
|
|
|
1.43
|
%
|
(*) Total Pampa Group 29.97%
On June 30, 2016 the total number of shareholders had risen to 1,208.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial statements
|
These consolidated financial statements cover
the following periods:
|
-
|
Consolidated Statements of Financial Position for the periods ended June 30, 2016 and December
31, 2015.
|
|
-
|
Consolidated Statements of Changes in Equity for the periods ended June 30, 2016 and 2015.
|
|
-
|
Consolidated Statements of Comprehensive Income for the periods between January and June 30, 2016
and 2015.
|
|
-
|
Statements of Direct-Method Cash Flows for the periods ended June 30, 2016 and 2015.
|
The consolidated financial statements of Sociedad
Química y Minera de Chile S.A. and its Subsidiaries were prepared in accordance with International Financial Reporting Standards
(hereinafter “IFRS”) and represent the full, explicit and unreserved adoption of International Financial Reporting
Standards as issued by the International Accounting Standards Board (hereinafter the “IASB”).
These consolidated financial statements fairly
reflect the equity and financial position of the Company and the results of its operations, changes in statement of income recognized
and cash flows occurring during the periods then ended.
IFRS establish certain alternatives for their
application. Those applied by the Company are detailed in this Note.
On October 17, 2014, the Chilean Superintendence
of Securities and Insurance issued Official Communication No. 856 providing instructions for inspected entities to recognize in
2014 against equity differences in deferred tax assets and liabilities resulting directly from the increase in the corporate income
introduced by Law No. 20.780. Such accounting treatment differs from that provided by International Accounting Standard 12 (IAS
12) and, accordingly, represented a change in the accounting framework for the preparation and presentation of financial information
that had been adopted through such date.
Considering that indicated in the preceding
paragraph, this represented a specific and temporary departure from the IFRS, starting from 20146 and in conformity with that established
in paragraph 4ª of IFRS 1, the Company has decided to retrospectively apply such standards (in accordance with IAS 8 “Accounting
Policies, Changes in Accounting Estimates and Errors”) as if had never ceased their application.
Because of that indicated in the preceding
paragraph it does not amend any of the accounts disclosed in the statements of financial position as of June 30, 2016 and 2015,
in conformity with that indicated in paragraph 4ª of IAS 1 “Presentation of Financial Statements”, the presentation
of the statement of financial position as of January 1, 2015 (third column) is not necessary.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
(continued)
|
|
2.2
|
Financial statements, continued
|
The accounting policies used for the preparation
of the annual consolidated accounts comply with all IFRS in issue at the reporting date.
As explained in Note 28.4, on September 29,
2014, Law No. 20.780 was enacted, which introduces amendments to the income tax system in Chile and addresses other tax matters.
On October 17, 2014, the Chilean Superintendence of Securities and Insurance (SVS) issued Circular No. 856, which establishes that
the effects of changes in income tax rates on deferred tax assets and liabilities must be recognized directly in “Retained
earnings” in equity instead of the statement of income, which is different from that required by IAS 12.
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
The consolidated financial statements have
been prepared on the historical cost basis except for the following:
|
-
|
Inventories are recorded at the lower of cost and net realizable value.
|
|
-
|
Other current and non-current asset and financial liabilities at amortized cost.
|
|
-
|
Financial derivatives at fair value; and
|
|
-
|
Staff severance indemnities and pension commitments at actuarial value.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.4
|
Accounting pronouncements
|
New accounting pronouncements
a) The
following standards, interpretations and amendments are mandatory for the first time for annual periods beginning on January 1,
2016:
Amendments and improvements
|
|
Mandatory for annual
periods beginning on
|
|
|
|
Amendment to
IFRS 11 “Joint Arrangements”
– on the acquisition of interest in a joint operation – Issued in May 2014. This amendment includes guidance related to the method for accounting for an acquisition of an interest in a joint operation in which the activity constitutes a business, specifying the proper treatment for such acquisitions.
|
|
01/01/2016
|
|
|
|
Amendment to
IAS 16 “Property, Plant and Equipment”
and
IAS 38 “Intangible Assets”
on depreciation and amortization – Issued in May 2014. The amendments clarify that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate because revenue generated by such an activity in general reflects other factors other than the use of the economic benefits embedded in the asset or item of property, plant and equipment. Accordingly, a rebuttable presumption exists that a revenue-based depreciation or amortization method is inappropriate.
|
|
01/01/2016
|
|
|
|
Amendment to IAS 27 “Separate Financial Statements” on the equity method – Issued in August 2014. This amendment allows entities to use the equity method of accounting for the recognition of investments in subsidiaries, joint ventures and associates in their separate financial statements.
|
|
01/01/2016
|
|
|
|
Amendment to
IFRS 10 “Consolidated Financial Statements”
and
IAS 28 “Investments in Associates and Joint Ventures”.
Issued in September 2014. This amendment addresses an inconsistency between the requirements of IFRS 10 and IAS 28 for the treatment of a sale or contribution of assets between an investor and its associate or joint venture. The main consequence of this amendment is the recognition of a full gain or loss when the transaction involves a business (whether or not in a subsidiary) and a partial gain or loss when the transaction involves assets that are not a business, even if such assets are in a subsidiary.
|
|
01/01/2016
|
|
|
|
Amendment to IAS 1 “Presentation of Financial Statements.” Issued in December 2014. This amendment clarifies the application guidance of IAS 1 on materiality and aggregation, presentation of subtotals, structure of the financial statements and disclosure of accounting policies. The amendments are part of the IASB’s Initiative on Disclosures.
|
|
01/01/2016
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.4
|
Accounting Pronouncements, continued
|
Improvements to International Financial Reporting Standards (2014) issued in September
2014
|
|
Mandatory for annual
periods beginning on
|
|
|
|
IFRS 7 "Financial Instruments: Disclosures
" It establishes two amendments to IFRS 7: (1) Service contracts: if a Company transfers a financial asset to a third party under conditions that allow the assigner to dispose of the asset, IFRS 7 requires the disclosure of any type of continued involvement that the entity may still have on transferred assets. IFRS 7 provides guidance on what is understood as continued involvement within this context. The amendment is prospective with the option of applying it retrospectively. This also affects IFRS 1 to provide the same option to the first-time adopters of IFRS 1; (2) Interim Financial Statements: The amendment clarifies that the additional disclosure required by amendments to IFRS 7 “Offsetting Financial Assets and Financial Liabilities” is not specifically required for all interim periods, unless required by IAS 34. The amendment is retrospective.
|
|
01/01/2016
|
|
|
|
IAS 19, "Employee Benefits"
– This amendment clarifies that in order to determine the discount rate for post-employment benefit obligations, the important aspect is the currency in which liabilities are denominated, not the country where they generate. The evaluation of whether a deep market exists for high-quality corporate bonds is based on corporate bonds in such currency, not in corporate bonds of a particular country. Likewise, where there is no deep market for high-quality corporate bonuses in such currency, government bonds in the related currency have to be used. Such amendment is retrospective but limited at the beginning of the first period presented.
|
|
01/01/2016
|
|
|
|
IAS 34, "Interim Financial Reporting"
– This amendment clarifies the meaning of disclosure of information ‘elsewhere in the interim financial report’ and amends IAS 34 to require the inclusion of a cross-reference from the interim financial statements to the location of the information. This amendment is retrospective.
|
|
01/01/2016
|
The adoption of the standards, amendments and
interpretations indicated above has no significant impact on the Company’s consolidated financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.4
|
Accounting Pronouncements, continued
|
b) Standards,
interpretations and amendments issued, not effective for the financial statements beginning on January 1, 2016, which the Company
has not adopted early are as follows:
Standards and Interpretations
|
|
Mandatory for annual
periods beginning on
|
|
|
|
IFRS 9 “Financial Instruments”
– Issued in July 2014. The IASB has issued the full version of IFRS 9, which supersedes the application guidance in IAS 39. This final version includes requirements on the classification and measurement of financial assets and financial liabilities and an expected credit losses model that replaces the incurred loss impairment model used today. The final hedging accounting part of IFRS 9 was issued in November 2013. Early adoption is permitted.
|
|
01/01/2018
|
|
|
|
IFRS 15 “Revenue from Contracts with Customers”
– Issued in May 2014. This standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. For such purposes, the basic principle is that an entity will recognize revenue representing the transfer of goods or services to customers in an amount that reflects the consideration that the entity expects to receive in exchange for such goods or services. The application of this standard will replace IAS 11 Construction Contracts and IAS 18 Revenue, as well as IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue-Barter Transactions Involving Advertising Services. Early application is permitted.
|
|
01/01/2018
|
|
|
|
IFRS 16 “Leases” – issued in January 2016 establishes the principle for the recognition, measurement, presentation and disclosure of leases. IFRS 16 supersedes the current IAS 17 and introduces a single model for accounting recognition for lessees and requires a lessee to recognize the assets and liabilities of all lease contracts over a term of more than 12 months, unless the underlying asset has a low value. The objective is ensuring that lessees and lessors provide relevant information that fairly represents transactions conducted. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, early adoption is permitted for entities applying IFRS 15 or prior to the date of initial application of IFRS 16.
|
|
01/01/2019
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Interim Consolidated Financial Statements As of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.4
|
Accounting Pronouncements, continued
|
Amendments and improvements
|
|
Mandatory for annual
periods beginning on
|
|
|
|
Amendment to IAS 7
“Statement of Cash Flows.”
– Issued in February 2016. This amendment introduces additional disclosures allowing users of financial statements to assess changes in obligations from financing activities.
|
|
01/01/2017
|
|
|
|
Amendment to IAS 12
“Income Taxes.”
- Issued in February 2016. This amendment clarifies how to account for deferred tax assets related to debt securities measured at fair value.
|
|
01/01/2017
|
The Company's management is in the process
of assessing the impacts on the consolidated financial statements of the adoption of IFRS 9, IFRS 15 and IFRS 16. However, for
the remaining standards, amendments and interpretations described above, it believes they will not have any significant impact
for the initial application period.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.5
|
Basis of consolidation
|
Relate to all the entities on which Sociedad
Química y Minera de Chile S.A. has control when it is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those variable returns through its power over the entity. Subsidiaries apply the
same accounting policies of their Parent.
To account for the acquisition, the Company
uses the acquisition method. Under this method the acquisition cost is the fair value of assets delivered, equity securities issued
and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingencies assumed
in a business combination are measured initially at fair value at the acquisition date. For each business combination, the Company
will measure non-controlling interest of the acquiree either at fair value or as proportional share of net identifiable assets
of the acquiree.
Companies included in consolidation:
|
|
|
|
|
|
|
|
Ownership interest
|
|
|
|
|
|
Country of
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
TAX ID No
|
|
Foreign subsidiaries
|
|
origin
|
|
Functional currency
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
Total
|
|
Foreign
|
|
Nitratos Naturais Do Chile Ltda.
|
|
Brazil
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
Nitrate Corporation Of Chile Ltd.
|
|
United Kingdom
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM North America Corp.
|
|
USA
|
|
US$
|
|
|
40.0000
|
|
|
|
60.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Europe N.V.
|
|
Belgium
|
|
US$
|
|
|
0.5800
|
|
|
|
99.4200
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
Soquimich S.R.L. Argentina
|
|
Argentina
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
Soquimich European Holding B.V.
|
|
Netherlands
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Corporation N.V.
|
|
Netherlands
|
|
US$
|
|
|
0.0002
|
|
|
|
99.9998
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQI Corporation N.V.
|
|
Netherlands
|
|
US$
|
|
|
0.0159
|
|
|
|
99.9841
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Comercial De México S.A. de C.V.
|
|
Mexico
|
|
US$
|
|
|
0.0100
|
|
|
|
99.9900
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
North American Trading Company
|
|
USA
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
Administración y Servicios Santiago S.A. de C.V.
|
|
Mexico
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Peru S.A.
|
|
Peru
|
|
US$
|
|
|
0.9800
|
|
|
|
99.0200
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Ecuador S.A.
|
|
Ecuador
|
|
US$
|
|
|
0.0040
|
|
|
|
99.9960
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Nitratos Mexico S.A. de C.V.
|
|
Mexico
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQMC Holding Corporation L.L.P.
|
|
USA.
|
|
US$
|
|
|
0.1000
|
|
|
|
99.9000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Investment Corporation N.V.
|
|
Netherlands
|
|
US$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Brasil Limitada
|
|
Brazil
|
|
US$
|
|
|
1.0900
|
|
|
|
98.9100
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM France S.A.
|
|
France
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Japan Co. Ltd.
|
|
Japan
|
|
US$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
US$
|
|
|
1.6700
|
|
|
|
98.3300
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Oceania Pty Limited
|
|
Australia
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.5
|
Basis of consolidation, continued
|
|
|
|
|
|
|
|
|
Ownership interest
|
|
|
|
|
|
Country of
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
TAX ID No.
|
|
Foreign subsidiaries
|
|
origin
|
|
Functional
currency
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
Total
|
|
Foreign
|
|
Rs Agro-Chemical Trading Corporation
A.V.V.
|
|
Aruba
|
|
US$
|
|
|
98.3333
|
|
|
|
1.6667
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Indonesia S.A.
|
|
Indonesia
|
|
US$
|
|
|
0.0000
|
|
|
|
80.0000
|
|
|
|
80.0000
|
|
|
|
80.0000
|
|
Foreign
|
|
SQM Virginia L.L.C.
|
|
USA
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Italia SRL
|
|
Italy
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
Comercial Caimán Internacional S.A.
|
|
Panama
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Africa Pty.
|
|
South Africa
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Lithium Specialties LLC
|
|
USA
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Iberian S.A.
|
|
Spain
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Agro India Pvt. Ltd.
|
|
India
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Beijing Commercial Co. Ltd.
|
|
China
|
|
US$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Foreign
|
|
SQM Thailand Limited
|
|
Thailand
|
|
US$
|
|
|
0.0000
|
|
|
|
99.996
|
|
|
|
99.996
|
|
|
|
99.996
|
|
Foreign
|
|
SQM Vitas Spain
|
|
Spain
|
|
Euro
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Ownership interest
|
|
|
|
|
|
Country of
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
TAX ID No.
|
|
Domestic subsidiaries
|
|
origin
|
|
Functional
currency
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
Total
|
|
96.801.610-5
|
|
Comercial Hydro S.A.
|
|
Chile
|
|
US$
|
|
|
0.0000
|
|
|
|
60.6383
|
|
|
|
60.6383
|
|
|
|
60.6383
|
|
96.651.060-9
|
|
SQM Potasio S.A.
|
|
Chile
|
|
US$
|
|
|
99.9999
|
|
|
|
0.0000
|
|
|
|
99.9999
|
|
|
|
99.9999
|
|
96.592.190-7
|
|
SQM Nitratos S.A.
|
|
Chile
|
|
US$
|
|
|
99.9999
|
|
|
|
0.0001
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
96.592.180-K
|
|
Ajay SQM Chile S.A.
|
|
Chile
|
|
US$
|
|
|
51.0000
|
|
|
|
0.0000
|
|
|
|
51.0000
|
|
|
|
51.0000
|
|
86.630.200-6
|
|
SQMC Internacional Ltda.
|
|
Chile
|
|
Ch$
|
|
|
0.0000
|
|
|
|
60.6381
|
|
|
|
60.6381
|
|
|
|
60.6381
|
|
79.947.100-0
|
|
SQM Industrial S.A.
|
|
Chile
|
|
US$
|
|
|
99.0470
|
|
|
|
0.9530
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
79.906.120-1
|
|
Isapre Norte Grande Ltda.
|
|
Chile
|
|
Ch$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
79.876.080-7
|
|
Almacenes y Depósitos Ltda.
|
|
Chile
|
|
Ch$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
79.770.780-5
|
|
Servicios Integrales de Tránsitos y
Transferencias S.A.
|
|
Chile
|
|
US$
|
|
|
0.0003
|
|
|
|
99.9997
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
79.768.170-9
|
|
Soquimich Comercial S.A.
|
|
Chile
|
|
US$
|
|
|
0.0000
|
|
|
|
60.6383
|
|
|
|
60.6383
|
|
|
|
60.6383
|
|
79.626.800-K
|
|
SQM Salar S.A.
|
|
Chile
|
|
US$
|
|
|
18.1800
|
|
|
|
81.8200
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
78.053.910-0
|
|
Proinsa Ltda.
|
|
Chile
|
|
Ch$
|
|
|
0.0000
|
|
|
|
60.5800
|
|
|
|
60.5800
|
|
|
|
60.5800
|
|
76.534.490-5
|
|
Sociedad Prestadora de Servicios de Salud
Cruz del Norte S.A.
|
|
Chile
|
|
Ch$
|
|
|
0.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
76.425.380-9
|
|
Exploraciones Mineras S.A.
|
|
Chile
|
|
US$
|
|
|
0.2691
|
|
|
|
99.7309
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
76.064.419-6
|
|
Comercial Agrorama Ltda. (a)
|
|
Chile
|
|
Ch$
|
|
|
0.0000
|
|
|
|
42.4468
|
|
|
|
42.4468
|
|
|
|
42.4468
|
|
76.145.229-0
|
|
Agrorama S.A.
|
|
Chile
|
|
Ch$
|
|
|
0.0000
|
|
|
|
60.6377
|
|
|
|
60.6377
|
|
|
|
60.6377
|
|
76.359.919-1
|
|
Orcoma Estudios SPA
|
|
Chile
|
|
US$
|
|
|
51.0000
|
|
|
|
-
|
|
|
|
51.0000
|
|
|
|
51.0000
|
|
76.360.575-2
|
|
Orcoma SPA
|
|
Chile
|
|
US$
|
|
|
100.0000
|
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
|
(a)
|
The Company consolidated Comercial Agrorama Ltda. as it has the control of this company’s
relevant activities.
|
Subsidiaries are consolidated using the line-by-line
method, adding the items that represent assets, liabilities, revenues, and expenses of similar content, and eliminating those related
to intragroup transactions.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 2
|
Basis of presentation for the consolidated financial
statements (continued)
|
|
2.5
|
Basis of consolidation, continued
|
Profit or loss of depending companies acquired
or disposed of during the year are included in profit or loss accounts consolidated from the date control is transferred to the
Group, or up to the date control is lost, as applicable.
Non-controlling interest represents the equity
of a subsidiary not directly or indirectly attributable to the Parent.
|
2.6
|
Significant accounting judgments, estimates and assumptions
|
Management of Sociedad Química y Minera
de Chile S.A. and its subsidiaries is responsible for the information contained in these consolidated financial statements, which
expressly indicate that all the principles and criteria included in IFRSs, as issued by the International Accounting Standards
Board (IASB), have been applied in full.
In preparing the consolidated financial statements
of Sociedad Química y Minera de Chile S.A. and its subsidiaries, Management has made judgments and estimates to quantify
certain assets, liabilities, revenues, expenses and commitments included therein. Basically, these estimates refer to:
|
-
|
The useful lives of property, plant and equipment, and intangible assets and their residual value;
|
|
-
|
Impairment losses of certain assets, including trade receivables;
|
|
-
|
Assumptions used in calculating the actuarial amount of pension-related and severance indemnity
payment benefit commitments;
|
|
-
|
Provisions for commitments assumed with third parties and contingent liabilities;
|
|
-
|
Provisions on the basis of technical studies that cover the different variables affecting products
in stock (density and moist, among others), and allowance for slow-moving spare-parts in stock;
|
|
-
|
Future cost for closure of mining sites;
|
|
-
|
The determination of the fair value of certain financial assets and derivative instruments;
|
|
-
|
The determination and assignment of fair values in business combinations.
|
Despite the fact that these estimates have
been made on the basis of the best information available on the date of preparation of these consolidated financial statements,
certain events may occur in the future and oblige their amendment (upwards or downwards) over the next few years, which would be
made prospectively, recognizing the effects of the change in estimates in the related future consolidated financial statements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies
|
|
3.1
|
Classification of balances as current and non-current
|
In the attached consolidated statement of financial
position, balances are classified in consideration of their remaining recovery (maturity) dates; i.e., those maturing on a date
equal to or lower than twelve months are classified as current and those with maturity dates exceeding the aforementioned period
are classified as non-current.
The exception to the foregoing relates to deferred
taxes, which are classified as non-current, regardless of the maturity they have.
|
3.2
|
Functional and presentation currency
|
The Company’s consolidated financial
statements are presented in United States dollars (“U.S. dollars” or “US$”), which is the Company’s
functional and presentation currency and is the currency of the main economic environment in which it operates.
Consequently, the term foreign currency is
defined as any currency other than the U.S. dollar.
The consolidated financial statements are presented
in thousands of United States dollars without decimals.
|
3.3
|
Foreign currency translation
|
The revenue, expenses, assets and liabilities
of all entities that have a functional currency other than the presentation currency are converted to the presentation currency
as follows:
|
-
|
Assets and liabilities are converted at the closing exchange rate prevailing on the reporting date.
|
|
-
|
Revenues and expenses of each profit or loss account are converted at monthly average exchange
rates.
|
|
-
|
All resulting foreign currency translation gains and losses are recognized as a separate component
in translation reserves.
|
In consolidation, foreign currency differences
arising from the translation of a net investment in foreign entities are recorded in equity (other reserves). At the date of disposal,
such foreign currency translation differences are recognized in the statement of income as part of the gain or loss from the sale.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.3
|
Foreign currency translation, continued
|
The main exchange rates used to translate monetary
assets and liabilities, expressed in foreign currency at the end of each period in respect to U.S. dollars, are as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
Brazilian real
|
|
|
3,20
|
|
|
|
3.90
|
|
New Peruvian sol
|
|
|
3,29
|
|
|
|
3.41
|
|
Argentine peso
|
|
|
14,20
|
|
|
|
12.90
|
|
Japanese yen
|
|
|
102,91
|
|
|
|
120.61
|
|
Euro
|
|
|
1,11
|
|
|
|
0.92
|
|
Mexican peso
|
|
|
18,55
|
|
|
|
17.34
|
|
Australian dollar
|
|
|
0,74
|
|
|
|
0.73
|
|
Pound Sterling
|
|
|
1,34
|
|
|
|
0.67
|
|
South African rand
|
|
|
14,70
|
|
|
|
15.61
|
|
Ecuadorian dollar
|
|
|
1,00
|
|
|
|
1.00
|
|
Chilean peso
|
|
|
661,37
|
|
|
|
710.16
|
|
UF
|
|
|
39,39
|
|
|
|
36.09
|
|
|
(b)
|
Transactions and balances
|
Non-monetary transactions in currencies other
than the functional currency (U.S. dollar) foreign currencies are translated to the respective functional currencies of Group entities
at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting
date are retranslated to the functional currency at the exchange rate at that date. All differences are recorded in the statement
of income except for all monetary item that provide effective hedge for a net investment in a foreign operation. These items are
recognized in other comprehensive income on the disposal of the investment; at the time they are recognized in the statement of
income. Charges and credits attributable to foreign currency translation differences on those hedge monetary item are also recognize
in other comprehensive income.
Non-monetary assets and liabilities that are
measured at historical cost in a foreign currency are retranslated to the functional currency at the historical exchange rate of
the transaction. Non-monetary items that are measured based on fair value in a foreign currency are translated using the exchange
rate at the date on which the fair value is determined.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
SQM S.A. establishes, as basis, the control
exercised in subsidiaries, to determine their share in the consolidated financial statements. Control consists of the Company’s
ability to exercise power in the subsidiary, exposure, or right, to variable performance from its share in the investee and the
ability to use its power on the investee to have an influence on the amount of the investor’s performance.
The Company prepares the consolidated financial
statements using consistent accounting policies for the entire Group, the consolidation of a subsidiary commences when the Company
has control over the subsidiary and stops when control ceases.
|
3.5
|
Consolidated statement of cash flows
|
Cash equivalents correspond to highly-liquid
short-term investments that are easily convertible in known amounts of cash. They are subject to insignificant risk of changes
in their value and mature in less than three months from the date of acquisition of the instrument.
For purposes of the statement of cash flows,
cash and cash equivalents comprise cash and cash equivalents as defined above.
The statement of cash flows includes movements
in cash performed during the year, determined using the direct method.
Management determines the classification of
its financial assets at the time of initial recognition, on the basis of the business model for the management of financial assets
and the characteristics of contractual cash flows from the financial assets. In accordance with IAS 39, financial assets are measured
initially at fair value plus transaction costs that may have been incurred and are directly attributable to the acquisition of
the financial asset. Subsequently, financial assets are measured at amortized cost or fair value.
The Company assesses, at each reporting date,
whether there is objective evidence that an asset or group of assets is impaired. An asset or group of financial assets is impaired
if and only if there is evidence of impairment as a result of one or more events occurring after the initial recognition of the
asset or group of assets. For the recognition of impairment, the loss event has to have an impact on the estimate of future cash
flows from the asset or groups of financial assets.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.7
|
Financial liabilities
|
Management determines the classification of
its financial liabilities at the time of initial recognition. As established in IAS 39, financial liabilities at the time of initial
recognition are measured at fair value, less transaction costs that may have been incurred and are directly attributable to the
issue of the financial liability. Subsequently, these are measured at amortized cost using the effective interest method. For financial
liabilities that have been initially recognized at fair value through profit or loss, these will be measured subsequently at fair
value.
|
3.8
|
Financial instruments at fair value through profit or loss
|
Management will irrevocably determine, at the
time of initial recognition, the designation of a financial instrument at fair value through profit or loss. By doing so, this
eliminates and/or significantly reduces measurement or recognition inconsistency that would otherwise have arisen from the measurement
of assets or liabilities or from the recognition of gains and losses from them on different bases.
|
3.9
|
Financial instrument offsetting
|
The Company offsets an asset and liability
if and only if it presently has a legally enforceable right of setting off the amounts recognized and has the intent of settling
for the net amount of realizing the asset and settling the liability simultaneously.
|
3.10
|
Reclassification of financial instruments
|
At the time when the Company changes its business
model for managing financial assets, it will reclassify the financial assets affected by the new business model.
For financial liabilities these could not be
reclassified.
|
3.11
|
Derivative and hedging financial instruments
|
Derivatives are recognized initially at fair
value as of the date on which the derivatives contract is signed and, subsequently, are assessed at fair value. The method for
recognizing the resulting gain or loss depends on whether the derivative has been designated as an accounting hedge instrument
and, if so, it depends on the type of hedging, which may be as follows:
|
(a)
|
Fair value hedge of assets and liabilities recognized (fair value hedges);
|
|
(b)
|
Hedging of a single risk associated with an asset or liability recognized or a highly possible
foreseen transaction (cash flow hedge).
|
At the beginning of the transaction, the Company
documents the relationship existing between hedging instruments and those items hedged, as well as their objectives for risk management
purposes and the strategy to conduct different hedging operations.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.11
|
Derivative and hedging financial instruments, continued
|
The Company also documents its evaluation both
at the beginning and at the end of each period if derivatives used in hedging transactions are highly effective to offset changes
in the fair value or in cash flows of hedged items.
The fair value of derivative instruments used
for hedging purposes is shown in Note 10.3 (hedging assets and liabilities). Changes in the cash flow hedge reserve are classified
as a non-current asset or liability if the remaining expiration period of the hedged item is higher than 12 months, and as a current
asset or liability if the remaining expiration period of the entry is lower than 12 months.
Derivatives that are not designated or do not
qualify as hedging derivatives are classified as current assets or liabilities, and changes in the fair value are directly recognized
through profit or loss.
The change in the fair value of a derivative
is recognized with a debit or credit to profit or loss, as applicable. The change in the fair value of the hedged entry attributable
to hedged risk is recognized as part of the carrying value of the hedged entry and is also recognized with a debit or credit to
profit or loss.
For fair value hedges related to items recorded
at amortized cost, the adjustment of the fair value is amortized against profit or loss during the period, through maturity. Any
adjustment to the carrying value of a hedged financial instrument, for which the effective rate is used, is amortized with a debit
or credit to profit or loss at its fair value, attributable to the risk being covered.
If the hedged entry is derecognized, the fair
value not amortized is immediately recognized with a debit or credit to profit or loss.
The effective portion of gains or losses from
the hedge instrument is initially recognized with a debit or credit to other comprehensive income, whereas any ineffective portion
is immediately recognized with a debit or credit to profit or loss, as applicable.
Amounts taken to equity are transferred to
profit or loss when the hedged transaction affects profit or loss, as when the hedged interest income or expense is recognized
when a projected sale occurs. When the hedged entry is the cost of a non-financial asset or liability, amounts taken to other reserves
are transferred to the initial carrying value of the non-financial asset or liability.
Should the expected firm transaction or commitment
no longer be expected to occur, the amounts previously recognized in equity are transferred to profit or loss. If a hedge instrument
expires, is sold, finished, or exercised without any replacement, or if a rollover is performed or if its designation as hedging
is revoked, the amounts previously recognized in other reserves are maintained in equity until the expected firm transaction or
commitment occurs.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.12
|
Derecognition of financial instruments
|
In accordance with IAS 39, the Company derecognizes
a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are
transferred; and the control of the financial assets has not been retained.
The Company derecognizes a financial liability
when its contractual obligations or a part of these are discharged, paying to the creditor or its legally extinguished entity the
primary responsibility for the liability.
|
3.13
|
Derivative financial instruments
|
The Company maintains derivative financial
instruments to hedge its exposure to foreign currencies. Derivative financial instruments are recognized initially at fair value;
attributable transaction costs are recognized when incurred. Subsequent to initial recognition, changes in fair value of such derivatives
are recognized in profit or loss as part of gains and losses.
The Company permanently assesses the existence
of embedded derivatives, both in its contracts and financial instruments. As of June 30, 2016 and December 31, 2015, there are
no embedded derivatives.
|
3.14
|
Fair value measurements
|
From the initial recognition, the Company measures
its assets and liabilities at fair value plus or minus transaction costs incurred that are directly attributable to the acquisition
of a financial asset or issuance of a financial liability.
|
(a)
|
Lease - Finance lease
|
Leases are classified as finance leases when
the Company holds substantially all the risks and rewards derived from the ownership of the asset. Finance leases are capitalized
at the beginning of the lease, at the lower of the fair value of the leased asset or the present value of minimum lease payments.
Each lease payment is distributed between the
liability and the interest expenses to obtain ongoing interest on the pending balance of debt. The respective lease obligations,
net of interest expense, are included in other non-current liabilities. The interest element of finance cost is debited in the
consolidated statement of income during the lease period so that a regular ongoing interest rate is obtained on the remaining balance
of the liability for each year.
(b) Lease – Operating lease
Leases in which the lesser maintains a significant
part of the risks and rewards derived from the ownership are classified as operating leases. Operating lease payments (net of any
incentive received from the lesser) are debited to the statement of income or capitalized (as applicable) on a straight-line basis
over the lease period.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.16
|
Deferred acquisition costs from insurance contracts
|
Acquisition costs from insurance contracts
are classified as prepayments and correspond to insurance contracts in force, recognized using the straight-line method and on
an accrual basis, and are recognized under other non-financial assets.
|
3.17
|
Trade and other receivables
|
Trade and other receivables relate to non-derivative
financial assets with fixed and determinable payments and are not quoted in any active market. These arise from sales operations
involving the products and/or services, of which the Company commercializes directly to its customers.
These assets are initially recognized at their
fair value and subsequently at amortized cost according to the effective interest rate method, less a provision for impairment
loss. An allowance for impairment loss is established for trade receivables when there is objective evidence that the Company will
not be able to collect all the amounts which are owed to it, according to the original terms of receivables.
Implicit interest in installment sales is recognized
as interest income when interest is accrued over the term of the operation.
|
3.18
|
Inventory measurement
|
The Company states inventories for the lower
of cost and net realizable value. The cost price of finished products and products in progress includes the direct cost of materials
and, when applicable, labor costs, indirect costs incurred to transform raw materials into finished products, and general expenses
incurred in carrying inventories to their current location and conditions. The method used to determine the cost of inventories
is weighted average cost.
Commercial discounts, rebates obtained, and
other similar entries are deducted in the determination of the acquisition price.
The net realizable value represents the estimate
of the sales price, less all finishing estimated costs and costs which will be incurred in commercialization, sales, and distribution
processes.
The Company conducts an evaluation of the net
realizable value of inventories at the end of each year, recording an estimate with a charge to income when these are overstated.
When a situation arises whereby the circumstances, which previously caused the rebate to cease to exist, or when there is clear
evidence of an increase in the net realizable value due to a change in the economic circumstances or prices of main raw materials,
the estimate made previously is modified.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.18
|
Inventory measurement, continued
|
The valuation of obsolete, impaired or slow-moving
products relates to their net estimated, net realizable value.
Provisions on the Company's inventories have
been made based on a technical study which covers the different variables which affect products in stock (density and humidity,
among others).
Raw materials, supplies and materials are recorded
at the lower of acquisition cost or market value. Acquisition cost is calculated according to the average price method.
|
3.19
|
Investments in associates and joint ventures
|
Interests in companies on which joint control
is exercised (joint venture) or where an entity has significant influence (associates) are recognized using the equity method of
accounting. Significant influence is presumed to exist when interest greater than 20% is held in the capital of an investee.
Under this method, the investment is recognized
in the statement of financial position at cost plus changes, subsequent to the acquisition, and considering the proportional share
in the equity of the associate. For such purposes, the interest percentage in the ownership of the associate is used. The associated
goodwill acquired is included in the carrying amount of the investee and is not amortized. The debit or credit to profit or loss
reflects the proportional share in the profit or loss of the associate.
Unrealized gains for transactions with affiliates
or associates are eliminated considering the interest percentage the Company has on such entities. Unrealized losses are also eliminated,
except if the transaction provides evidence of impairment loss of the transferred asset.
Changes in the equity of associates are recognized
considering the proportional amounts with a charge or credit to “Other reserves” and classified considering their origin.
Reporting dates of the associate, the Company
and related policies are similar for equivalent transactions and events under similar circumstances.
In the event that the significant influence
is lost or the investment is sold or is held as available for sale, the equity method is discontinued, suspending the recognition
of proportional share of profit or loss.
If the resulting amount according to the equity
method is negative, the share of profit or loss is reflected at zero value in the consolidated financial statements, unless a commitment
exists by the Company to reinstate the Company’s equity position, in which case the related provision for risks and expenses
is recorded.
Dividends received by these companies are recorded
by reducing the equity value, and the proportional share of profit or loss recognized in conformity with the share of equity are
included in the consolidated profit or loss accounts in the caption “Equity share of profit (loss) of associates and joint
ventures that are accounted for using the equity method of accounting”.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 3
|
Significant accounting policies (continued)
|
|
3.20
|
Transactions with non-controlling interests
|
Non-controlling interests are recorded in the
consolidated statement of financial position within equity separate from equity attributable to the owners of the Parent.
|
3.21
|
Related party transactions
|
Transactions between the Company and its subsidiaries
are part of the Company’s normal operations within its scope of business activities. Conditions for such transactions are
those normally effective for those types of operations with regard to terms and market prices. Also, these transactions have been
eliminated in consolidation. Expiration conditions for each case vary by virtue of the originating transaction.
|
3.22
|
Property, plant and equipment
|
Tangible property, plant and equipment assets
are stated at acquisition cost, net of the related accumulated depreciation, amortization and impairment losses that they might
have experienced.
In addition to the price paid for the acquisition
of tangible property, plant and equipment, the Company has considered the following concepts as part of the acquisition cost, as
applicable:
1. Accrued interest expenses during the
construction period which are directly attributable to the acquisition, construction or production of qualifying assets, which
are those that require a substantial period prior to being ready for use. The interest rate used is that related to the project’s
specific financing or, should this not exist, the average financing rate of the investor company.
2. The future costs that the Company will
have to experience, related to the closure of its facilities at the end of their useful life, are included at the present value
of disbursements expected to be required to settle the obligation.
Construction-in-progress is transferred to
property, plant and equipment in operation once the assets are available for use and the related depreciation and amortization
begins on that date.
Extension, modernization or improvement costs
that represent an increase in productivity, ability or efficiency or an extension of the useful lives of property, plant and equipment
are capitalized as a higher cost of the related assets. All the remaining maintenance, preservation and repair expenses are charged
to expense as incurred.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.22
|
Property, plant and equipment,
continued
|
The replacement
of full assets, which increase the asset’s useful life or its economic capacity, are recorded as a higher value of property,
plant and equipment with the related derecognition of replaced or renewed elements.
Gains or losses
which are generated from the sale or disposal of property, plant and equipment are recognized as income (or loss) in the period,
and calculated as the difference between the asset’s sales value and its net carrying value.
Costs derived from
daily maintenance of property, plant and equipment are recognized when incurred.
|
3.23
|
Depreciation
of property, plant and equipment
|
Property, plant
and equipment are depreciated through the straight-line distribution of cost over the estimated technical useful life of the asset
which is the period in which the Company expects to use the asset. When components of one item of property, plant and equipment
have different useful lives, they are recorded as separate assets. Useful lives are reviewed on an annual basis.
In the case of
mobile equipment depreciation is performed depending on the hours of operation
The useful lives
used for the depreciation and amortization of assets included in property, plant and equipment are presented below.
Types of property, plant and equipment
|
|
Minimum life
or rate
|
|
|
maximum life
or rate
|
|
Buildings
|
|
|
2
|
|
|
|
40
|
|
Machinery
|
|
|
2
|
|
|
|
25
|
|
Transport equipment
|
|
|
3
|
|
|
|
30
|
|
Furniture and fixtures
|
|
|
2
|
|
|
|
18
|
|
Office equipment
|
|
|
1
|
|
|
|
20
|
|
Production plants
|
|
|
1
|
|
|
|
25
|
|
Mining assets
|
|
|
2
|
|
|
|
20
|
|
Other property, plant and equipment
|
|
|
1
|
|
|
|
30
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
Goodwill acquired
represents the excess in acquisition cost on the fair value of the Company's ownership of the net identifiable assets of the subsidiary
on the acquisition date. Goodwill acquired related to the acquisition of subsidiaries is included in goodwill, which is subject
to impairment tests every time consolidated financial statements are issued, and is stated at cost less accumulated impairment
losses. Gains and losses related to the sale of an entity include the carrying value of goodwill related to the entity sold.
This intangible
asset is assigned to cash-generating units with the purpose of testing impairment losses. It is allocated based on cash-generating
units expected to obtain benefits from the business combination from which the aforementioned goodwill acquired arose.
|
3.25
|
Intangible
assets other than goodwill
|
Intangible assets
mainly relate to water rights, trademarks, and rights of way related to electric lines, development expenses, and computer software
licenses.
Water rights acquired
by the Company relate to water from natural sources and are recorded at acquisition cost. Given that these assets represent legal
rights granted in perpetuity to the Company, they are not amortized, but are subject to annual impairment tests.
|
(b)
|
Right of way for electric
lines
|
As required for
the operation of industrial plants, the Company has paid rights of way in order to install wires for the different electric lines
in third party land. These rights are presented under intangible assets. Amounts paid are capitalized at the date of the agreement
and charged to income, according to the life of the right of way.
Licenses for IT
programs acquired are capitalized based on costs that have been incurred to acquire them and prepare them to use the specific
program. These costs are amortized over their estimated useful lives.
Expenses related
to the development or maintenance of IT programs are recognized as an expense as and when incurred. Costs directly related to
the production of unique and identifiable IT programs controlled by the Group, and which will probably generate economic benefits
that are higher than costs during more than a year, are recognized as intangible assets. Direct costs include expenses of employees
that develop information technology software and general expenses in accordance with corporate charges received.
The costs of development
for IT programs recognized as assets are amortized over their estimated useful lives.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.25
|
Intangible assets other than
goodwill, continued
|
|
(d)
|
Mining property and
concession rights
|
The Company holds
mining property and concession rights from the Chilean Government. Property rights are usually obtained with no initial cost (other
than the payment of mining patents and minor recording expenses) and upon obtaining rights on these concessions, these are retained
by the Company while annual patents are paid. Such patents, which are paid annually, are recorded as prepaid assets and amortized
over the following twelve months. Amounts attributable to mining concessions acquired from third parties that are not from the
Chilean Government are recorded at acquisition cost within intangible assets.
No impairment of
intangible assets exists as of June 30, 2016 and December 31, 2015.
|
3.26
|
Research
and development expenses
|
Research and development
expenses are charged to profit or loss in the period in which the disbursement was made.
|
3.27
|
Prospecting
expenses
|
The Company has
mining property and concession rights from the Chilean Government and acquired from third parties other than the Chilean Government,
destined to the exploitation of caliche ore and saltpeter deposits and also the exploration of this type of deposits.
Upon obtaining
these rights, the Company initially records disbursements directly associated with the exploration and evaluation of deposits
(associated with small deposits with trading feasibility) as asset at cost. Such disbursements include the following concepts:
|
-
|
Disbursements
for geological reconnaissance evaluation
|
|
-
|
Disbursements
for drilling
|
|
-
|
Disbursements
for drilling work and sampling
|
|
-
|
Disbursements
for activities related to technical assessment and trading feasibility of drilling work
|
|
-
|
And any
disbursement directly related to specific projects where its objective is finding mining
resources.
|
Subsequently, the
Company distinguishes exploration and evaluation projects according to the economic feasibility of the mineral extracted in the
area or exploration, among those that finally will deliver future benefits to the Company (profitable projects) and those projects
for which it is not probable that economic benefit will flow to the Company in the future (i.e., when the mine site has low ore
grade and its exploitation is not economically profitable).
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.27
|
Prospecting expenses, continued
|
If technical studies
determine that the ore grade is not economically suitable for exploitation, the asset is directly expensed. Otherwise, it is held
in the caption “other non-current assets”, reclassifying the portion related to the area to be exploited in the year
in the caption inventories and such amount is amortized as production cost on the basis of estimated tons to be extracted.
The technical reasons
for this classification correspond to the fact that this is an identifiable non-monetary asset that is owned to be used in the
production of our processes as a main raw material.
For this reason
and because our disbursements correspond to proven reserves with a trading feasibility and used as main raw material in our production
processes, these are presented as inventories that will be exploited within the commercial year and the remainder as development
expenses for small deposits and prospecting expenses in the caption “other non-current assets”.
|
3.28
|
Impairment
of non-financial assets
|
Assets subject
to depreciation and amortization are subject to impairment testing, provided that an event or change in the circumstances indicates
that the amounts in the accounting records may not be recoverable. An impairment loss is recognized for the excess of the book
value of the asset over its recoverable amount.
The recoverable
amount of an asset is the higher between the fair value of an asset or cash generating unit (“CGU”) less costs of
sales and its value in use, and is determined for an individual asset unless the asset does not generate any cash inflows that
are clearly independent from other assets or groups of assets.
When the carrying
value of an asset exceeds its recoverable amount, the asset is considered an impaired asset and is reduced to its net recoverable
amount.
In evaluating value
in use, estimated future cash flows are discounted using a discount rate before taxes which reflects current market evaluation
on the time value of money and specific asset risks.
To determine the
fair value less costs to sell, an appropriate valuation model is used.
Impairment losses
from continuing operations are recognized with a debit to profit or loss in the categories of expenses associated with the impaired
asset function, except for properties reevaluated previously where the revaluation was taken to equity.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.28
|
Impairment
of non-financial assets, continued
|
For assets other
than acquired goodwill, an annual evaluation is conducted of whether there are impairment loss indicators recognized previously
that might have already decreased or ceased to exist. The recoverable amount is estimated if such indicators exist. An impairment
loss previously recognized is reversed only if there have been changes in estimates used to determine the asset’s recoverable
amount from the last time in which an impairment loss was recognized. If this is the case, the carrying value of the asset is
increased to its recoverable amount. This increased amount cannot exceed the carrying value that would have been determined net
of depreciation if an asset impairment loss would have not been recognized in prior years. This reversal is recognized with a
credit to profit or loss.
As required by
the Shareholders’ Corporations Act, unless decided otherwise by the unanimous vote by the shareholders of subscribed and
paid shares, a public company must distribute dividends as agreed by the shareholders at the General Shareholders’ Meeting
held each year with a minimum of 30% of its profit, except when the Company records unabsorbed losses from prior years. However,
the Company defines as policy the distribution of 50% of its profit for the year.
The net basic earnings
per share amounts are calculated by dividing profit for the year attributable to ordinary owners of the parent by the weighted
average number of ordinary shares outstanding during the year.
The Company has
not conducted any type of operation of potential dilutive effect that assumes diluted earnings per share other than the basic
earnings per share.
|
3.31
|
Trade
and other payables
|
Trade and other
payables are measured at fair value plus all costs associated with the transaction. Subsequently, these are carried at amortized
cost using the effective interest rate method.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.32
|
Interest-bearing
borrowings
|
At initial recognition,
interest-bearing borrowings are measured at fair value. Subsequently, they are measured at amortized cost using the effective
interest rate method. Amortized cost is calculated considering any premium or discount from the acquisition and includes costs
of transactions which are an integral part of the effective interest rate.
These are recorded
as non-current when their expiration period exceeds twelve months and as current when the term is lower than such term. Interest
expense is calculated in the year in which they are accrued following a financial criterion.
Provisions are recognized when:
|
-
|
The Company
has a present obligation as the result of a past event.
|
|
-
|
It is more
likely than not that certain resources must be used, including benefits, to settle the
obligation.
|
|
-
|
A reliable
estimate can be made of the amount of the obligation.
|
In the event that
the provision or a portion of it is reimbursed, the reimbursement is recognized as a separate asset solely if there is certainty
of income.
In the consolidated
statement of income, the expense for any provision is presented net of any reimbursement.
Should the effect
of the time value of money be significant, provisions are discounted using a discount rate before tax that reflects the liability’s
specific risks. When a discount rate is used, the increase in the provision over time is recognized as a finance cost.
The Company’s
policy is maintaining provisions to cover risks and expenses based on a better estimate to deal with possible or certain and quantifiable
responsibilities from current litigation, compensations or obligations, pending expenses for which the amount has not yet been
determined, collaterals and other similar guarantees for which the Company is responsible. These are recorded at the time the
responsibility or the obligation that determines the compensation or payment is generated.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.34
|
Obligations
related to employee termination benefits and pension commitments
|
Obligations with
the Company’s employees are in accordance with that established in the collective bargaining agreements in force, formalized
through collective employment agreements and individual employment contracts, except for the United States that is regulated in
accordance with employment plans in force up to 2002.
These obligations
are valued using actuarial calculations, according to the projected unit credit method which considers such assumptions as the
mortality rate, employee turnover, interest rates, retirement dates, effects related to increases in employees’ salaries,
as well as the effects on variations in services derived from variations in the inflation rate. This, considering criteria in
force contained in the revised IAS 19.
Actuarial gains
and losses that may be generated by variations in defined, pre-established obligations are directly recorded in other comprehensive
income.
Actuarial losses
and gains have their origin in departures between the estimate and the actual behavior of actuarial assumptions or in the reformulation
of established actuarial assumptions.
The discount rate
used by the Company for calculating the obligation was 4.775% and 5.5% for the periods ended June 30, 2016 and December 31, 2015,
respectively.
The Company’s
subsidiary SQM North America has established pension plans for its retired employees that are calculated by measuring the projected
obligation using a net salary progressive rate net of adjustments for inflation, mortality and turnover assumptions, deducting
the resulting amounts at present value using a 5.5% interest rate for 2016 and 2015. The net balance of this obligation is presented
under the non-current provisions for employee benefits.
Compensation plans
implemented through benefits in share-based payments settled in cash, which have been provided, are recognized in the financial
statements at their fair value, in accordance with International Financial Reporting Standards No. 2 "Share-based Payments.”
Changes in the fair value of options granted are recognized with a charge to payroll on a straight-line basis during the period
between the date on which these options are granted and the payment date (see Note 16).
Revenue includes
the fair value of considerations received or receivable for the sale of goods and services during performance of the Company's
activities. Revenue is presented net of value added tax, estimated returns, rebates and discounts and after the elimination of
sales among subsidiaries.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.36
|
Revenue recognition, continued
|
Revenue is recognized
when its amount can be stated reliably. It is possible that the future economic rewards will flow to the entity and the specific
conditions for each type of activity related revenue are complied with, as follows:
The sale of goods
is recognized when the Company has delivered products to the customer, and there is no obligation pending compliance that could
affect the acceptance of products by the customer. The delivery does not occur until products have been shipped to the customer
or confirmed as received by customers. When the related risks of obsolescence and loss have been transferred to the customer and
the customer has accepted products in accordance with the conditions established in the sale, when the acceptance period has ended,
or when there is objective evidence that those criteria required for acceptance have been met.
Sales are recognized
in consideration of the price set in the sales agreement, net of volume discounts and estimated returns at the date of the sale.
Volume discounts are evaluated in consideration of annual foreseen purchases and in accordance with the criteria defined in agreements.
Revenue associated
with the rendering of services is recognized considering the degree of completion of the service as of the date of presentation
of the consolidated classified statement of financial position, provided that the result from the transaction can be estimated
reliably.
Interest income
is recognized when interest is accrued in consideration of the principal pending payment using the effective interest rate method.
|
(d)
|
Income from dividends
|
Income from dividends
is recognized when the right to receive the payment is established.
|
3.37
|
Finance
income and finance costs
|
Finance income
is mainly composed of interest income in financial instruments such as term deposits and mutual fund deposits. Interest income
is recognized in profit or loss at amortized cost, using the effective interest rate method.
Finance costs are
mainly composed of interest on bank borrowing expenses, interest on bonds issued and interest capitalized for borrowing costs
for the acquisition, construction or production or qualifying assets.
Borrowing costs
and bonds issued are recognized in profit or loss using the effective interest rate method.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.37
|
Finance income and finance
costs, continued
|
For finance costs
accrued during the construction period that are directly attributable to the acquisition, construction or production of qualifying
assets, the effective interest rate related to the project’s specific financing is used. If none exist, the average financing
rate of the subsidiary that makes the investment is utilized. Borrowing and financing costs that are directly attributable to
the acquisition, construction or production of an asset are capitalized as part of that asset’s cost.
|
3.38
|
Income
tax and deferred taxes
|
Corporate income
tax for the year is determined as the sum of current taxes from the different consolidated companies.
Current taxes are
based on the application of the various types of taxes attributable to taxable income for the year.
Differences between
the book value of assets and liabilities and their tax basis generate the balance of deferred tax assets or liabilities, which
are calculated using the tax rates expected to be applicable when the assets and liabilities are realized.
In conformity with
current Chilean tax regulations, the provision for corporate income tax and taxes on mining activity is recognized on an accrual
basis, presenting the net balances of accumulated monthly tax provisional payments for the fiscal period and associated credits.
The balances of these accounts are presented in current income taxes recoverable or current taxes payable, as applicable.
Tax on companies
and variations in deferred tax assets or liabilities that are not the result of business combinations are recorded in statement
of income accounts or equity accounts in the consolidated statement of financial position, considering the origin of the gains
or losses which have generated them.
At each reporting
period, the carrying amount of deferred tax assets has been reviewed and reduced to the extent there will not be sufficient taxable
income to allow the recovery of all or a portion of the deferred tax assets. Likewise, as of the date of the consolidated financial
statements, deferred tax assets that are not recognized were evaluated and not recognized as it was more likely than not that
future taxable income will allow for recovery of the deferred tax asset.
With respect to
deductible temporary differences associated with investments in subsidiaries, associated companies and interest in joint ventures,
deferred tax assets are recognized solely provided that it is more likely than not that the temporary differences will be reversed
in the near future and that there will be taxable income with which they may be used.
The deferred income tax related to entries
directly recognized in equity is recognized with an effect on equity and not with an effect on profit or loss.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
|
3.38
|
Income tax and deferred taxes,
continued
|
Deferred tax assets
and liabilities are offset if there is a legally receivable right of offsetting tax assets against tax liabilities and the deferred
tax is related to the same tax entity and authority.
IFRS 8 requires
that companies adopt a “management approach” to disclose information on the operations generated by its operating
segments. In general, this is the information that management uses internally for the evaluation of segment performance and making
the decision on how to allocate resources for this purpose.
An operating segment
is a group of assets and operations responsible for providing products or services subject to risks and performance different
from those of other business segments. A geographical segment is responsible for providing products or services in a given economic
environment subject to risks and performance different from those of other segments that operate in other economic environments.
For assets and
liabilities the allocation to each segment is not possible given that these are associated with more than one segment, except
for depreciation, amortization and impairment of assets, which are directly allocated to the applicable segments, in accordance
with the criteria established in the costing process for product inventories.
The following operating
segments have been identified by the Company:
|
-
|
Specialty
plant nutrients
|
|
-
|
Lithium
and derivatives
|
|
-
|
Other products
and services
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note
3
|
Significant
accounting policies (continued)
|
In general, the
Company follows the criteria of considering amounts used in environmental protection and improvement as environmental expenses.
However, the cost of facilities, machinery and equipment used for the same purpose are considered property, plant and equipment,
as the case may be.
Note 4
|
Financial
risk management
|
|
4.1
|
Financial
risk management policy
|
The Company’s
financial risk management policy is focused on safeguarding the stability and sustainability of Sociedad Química y Minera
de Chile S.A. and its subsidiaries with regard to all such relevant financial uncertainty components.
The Company’s
operations are subject to certain financial risk factors that may affect its financial position or results. The most significant
risk exposures are market risk, liquidity risk, currency risk, doubtful accounts risk, and interest rate risk, among others.
Potentially, additional
known or unknown risks may exist, of which we currently deem not to be significant, which could also affect the Company’s
business operations, its business, financial position, or profit or loss.
The financial risk
management structure includes identifying, determining, analyzing, quantifying, measuring and controlling these events. Management
and, in particular, Finance Management, is responsible for constantly assessing the financial risk. The Company uses derivatives
to hedge a significant portion of those risks.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 4
|
Financial
risk management, continued
|
Market risk refers
to the uncertainty associated with fluctuations in market variables affecting the Company’s assets and liabilities, including:
|
a)
|
Country
risk:
The economic situation of the countries where the Company operates may affect
its financial position. For example, sales conducted in emerging markets expose SQM to
risks related to economic conditions and trends in those countries. In addition, inventories
may also be affected by the economic scenario in such countries and/or the global economy,
among other probable economic impacts.
|
|
b)
|
Price
risk
: The Company’s product prices are affected by the fluctuations in international
prices of fertilizers and chemicals, as well as changes in productive capacities or market
demand, all of which might affect the Company’s business, financial position and
results of operations.
|
|
c)
|
Commodity
price risk
: The Company is exposed to changes in commodity prices and energy which
may have an impact on its production costs that may cause unstable results.
|
As
of to-date, the SQM Group incurs an annual expenditure of approximately US$98 million associated with fuel, gas, energy and equivalents
from which US$61 million related to direct electrical supply consumption. A change of 10% in the prices of energy required for
the Company’s operations may involve costs of approximately US$10 million in short-term movements.
The
markets in which the Company operates are unpredictable, exposed to significant fluctuations in supply and demand, and price high
volatility. Additionally, the supply of certain fertilizers or chemicals, including certain products which the Company trades,
vary mainly depending on the production of top producers and their related business strategies. Accordingly, the Company cannot
forecast with certainty changes in demand, responses from competitors or fluctuations in the final price of its products. These
factors can lead to significant impacts on the Company’s product sales volumes, financial position and share price.
|
d)
|
Quality
standards:
In the markets in which we operate, customers might impose quality standards
on our products and/or governments could enact more stringent standards for the distribution
and/or use of our products. Consequently, we might not be able to sell our products if
we are not able to meet those new standards. In addition, our production costs might
increase to meet such new standards. Not being able to sell our products in one or more
markets or to key customers might significantly affect our business, financial position
or the results of our operations.
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 4
|
Financial
risk management, continued
|
A contraction of
the global economy and the potentially adverse effects in the financial position of our customers may extend the receivables recovery
period for SQM, increasing its exposure to doubtful account risk. While measures have been taken to minimize such risk, the global
economic situation may result in losses that might have a material adverse effect on the Company’s business, financial position
or results of operations.
To mitigate these
risks, SQM actively controls debt collection and has established certain safeguards which include loan insurance, letters of credit,
and prepayments for a portion of receivables.
Financial investments
correspond to time deposits with maturities exceeding 90 days and less than 360 days from the investment date, so they are not
exposed to significant market risks.
As a result of
its influence on price level determination as well as its relationship with cost of sales, and since a significant portion of
the Company’s business transactions are performed in that foreign currency, the functional currency of SQM is the United
States dollar. However, the global business activities of the Company expose it to the foreign exchange fluctuations of several
currencies with respect to the value of the U.S. dollar. Accordingly, SQM has entered into hedge contracts to mitigate the exposure
generated by its main mismatches (assets, net of liabilities) in currencies other than the U.S. dollar against the foreign exchange
fluctuation. These contracts are periodically updated depending on the mismatch amount to be hedged in such currencies. Occasionally,
and subject to the Board of Directors’ approval, in the short-term the Company insures cash flows from certain specific
items in currencies other than the U.S. dollar.
A significant portion
of the Company’s costs, particularly payroll, is denominated in Chilean pesos. Accordingly, an increase or decrease in the
exchange rate against the U.S. dollar would affect the Company’s profit for the period. Approximately US$ 318 million of
the Company’s costs are denominated in Chilean pesos. A significant portion of the effect of such obligations on the statement
of financial position is hedged by derivative instrument transactions on the balance mismatch in such currency.
As of June 30,
2016, the Company recorded derivative instruments classified as currency and interest rate hedges associated with all the bonds
payable, denominated in UF, with a fair value of US$53 million against SQM. As of December 31, 2015, this amounts to US$75 million
in against SQM.
As of June 30,
2016, the Chilean peso to U.S. dollar exchange rate was Ch$661.37 per US$1.00 (Ch$ 710.16 per US$ 1.00 as of December 31, 2015).
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 4
|
Financial
risk management, continued
|
Interest rate fluctuations,
primarily due to the uncertain future behavior of markets, may have a material impact on the financial results of the Company.
The Company has
current and non-current debts valued at LIBOR, plus a spread. The Company is partially exposed to fluctuations in such rate, as
SQM currently holds hedging derivative instruments to hedge a portion of its liabilities subject to the LIBOR rate fluctuations.
As of June 30,
2016, approximately 4% of the Company’s financial liabilities are measured at LIBOR. Accordingly, any significant increase
in this rate may have an impact on the Company’s financial position. A 100 basic point variation in this rate may trigger
variations in financial expenses of close to US$ 0.07 million. However, this effect is significantly counterbalanced by the returns
of the Company’s investments that are also strongly related to LIBOR.
In addition, as
of June 30, 2016, the Company's financial liabilities are mainly concentrated in the long-term and approximately 16% have maturities
of less than 12 months, decreasing in the process the exposure to changes in interest rates.
Liquidity risk
relates to the funds needed to comply with payment obligations. The Company’s objective is to maintain financial flexibility
through a comfortable balance between fund requirements and cash flows from regular business operations, bank borrowings, bonds,
short term investments, and marketable securities, among others.
The Company has
an important capital expense program which is subject to change over time.
On the other hand,
world financial markets go through periods of contraction and expansion that are unforeseeable in the long-term and may affect
SQM’s access to financial resources. Such factors may have a material adverse impact on the Company’s business, financial
position and results of operations.
SQM constantly
monitors the matching of its obligations with its investments, taking due care of maturities of both, from a conservative perspective,
as part of this financial risk management strategy. As of June 30, 2016, the Company had unused, available revolving credit facilities
with banks, for a total of approximately US$388 million.
The position in
other cash and cash equivalents generated by the Company are invested in highly liquid mutual funds with an AAA risk rating.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 4
|
Financial
risk management, continued
|
The Company has
methods to measure the effectiveness and efficiency of financial risk hedging strategies, both prospectively and retrospectively.
These methods are consistent with the risk management profile of the Group.
Note 5
|
Changes
in accounting estimates and policies (consistent presentation)
|
|
5.1
|
Changes
in accounting estimates
|
The Company had
no changes in the determination of accounting estimates at the closing date of the consolidated financial statements.
|
5.2
|
Changes
in accounting policies
|
As of June 30,
2016, the Company’s consolidated financial statements present no changes in accounting policies or estimates compared to
the prior period.
The consolidated
statements of financial position as of June 30, 2016 and December 31, 2015 and the statements of comprehensive income, changes
in equity and cash flows for the periods ended June 30, 2016 and 2015, have been prepared in accordance with the Standards issued
by the Chilean Superintendence of Securities and Insurance (SVS), which consider the International Financial Reporting Standards
(IFRS), except for that indicated in Note 2.2, and the accounting principles and criteria have been applied consistently.
The accounting principles and criteria
were applied consistently.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background of companies included
in consolidation
|
|
6.1
|
Parent’s stand-alone assets
and liabilities
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
Assets
|
|
|
3,685,710
|
|
|
|
4,012,556
|
|
Liabilities
|
|
|
(1,424,844
|
)
|
|
|
(1,672,771
|
)
|
Equity
|
|
|
2,260,866
|
|
|
|
2,339,785
|
|
As provided in
the Company’s by-laws, no shareholder can concentrate more than 32% of the Company’s voting right shares and therefore
there is no controlling entity.
|
6.3
|
Joint
arrangements of controlling interest
|
Sociedad de Inversiones
Pampa Calichera S.A., Potasios de Chile S.A., and Inversiones Global Mining (Chile) Limitada, collectively the Pampa Group, are
the owners of a number of shares that are equivalent to 29.97% as of June 30, 2016 of the current total amount of shares issued,
subscribed and fully-paid of the Company. In addition, Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi S.A.
and La Esperanza Delaware Corporation, collectively the Kowa Group, are the owners of a number of shares equivalent to 2.12% of
the total amount of issued, subscribed and fully-paid shares of SQM S.A.
The Pampa Group
and the Kowa Group have informed SQM S.A., the Chilean SVS and the relevant stock exchanges in Chile and abroad that they are
not and have never been related parties between them. In addition, this is regardless of the fact that both Groups on December
21, 2006 have entered into a Joint Action Agreement (JAA) related to those shares. Consequently, the Pampa Group, by itself, does
not concentrate more than 32% of the voting right capital of SQM S.A., and the Kowa Group does not concentrate by itself more
than 32% of the voting right capital of SQM S.A.
Likewise, the Joint
Action Agreement has not transformed the Pampa and Kowa Groups into related parties between them. The Joint Action Agreement has
only transformed the current controller of SQM S.A., composed of the Pampa Group, and the Kowa Group into related parties of SQM
S.A.
Detail of effective concentration
Tax ID No.
|
|
Name
|
|
Ownership
interest %
|
|
96.511.530-7
|
|
Sociedad de Inversiones Pampa Calichera S.A.
|
|
|
19.72
|
|
76.165.311-5
|
|
Potasios de Chile S.A.
|
|
|
6.91
|
|
96.863.960-9
|
|
Inversiones Global Mining (Chile) Limitada
|
|
|
3.34
|
|
Total Pampa Group
|
|
|
|
|
29.97
|
|
|
|
|
|
|
|
|
79.798.650-k
|
|
Inversiones la Esperanza (Chile) Ltda.
|
|
|
1.43
|
|
59.046.730-8
|
|
Kowa Co Ltd.
|
|
|
0.30
|
|
96.518.570-4
|
|
Kochi S.A.
|
|
|
0.30
|
|
59.023.690-k
|
|
La Esperanza Delaware Corporation
|
|
|
0.09
|
|
Total Kowa Group
|
|
|
|
|
2.12
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.4
|
General
information on consolidated subsidiaries
|
As of June 30,
2016 and December 31, 2015, the general information of the companies on which the Company exercises control and significant influence
is as follows:
|
|
|
|
|
|
|
|
|
|
Ownership
interest
|
|
Subsidiary
|
|
Tax ID
|
|
Address
|
|
Country of
incorporation
|
|
Functional
currency
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQM Nitratos S.A.
|
|
96.592.190-7
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
US$
|
|
|
99.9999
|
|
|
|
0.0001
|
|
|
|
100.0000
|
|
Proinsa Ltda.
|
|
78.053.910-0
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
Ch$
|
|
|
-
|
|
|
|
60.5800
|
|
|
|
60.5800
|
|
SQMC Internacional Ltda.
|
|
86.630.200-6
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
Ch$
|
|
|
-
|
|
|
|
60.6381
|
|
|
|
60.6381
|
|
SQM Potasio S.A.
|
|
96.651.060-9
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
US$
|
|
|
99.9999
|
|
|
|
-
|
|
|
|
99.9999
|
|
Serv. Integrales de Tránsito y Transf. S.A.
|
|
79.770.780-5
|
|
Arturo Prat 1060, Tocopilla
|
|
Chile
|
|
US$
|
|
|
0.0003
|
|
|
|
99.9997
|
|
|
|
100.0000
|
|
Isapre Norte Grande Ltda.
|
|
79.906.120-1
|
|
Anibal Pinto 3228, Antofagasta
|
|
Chile
|
|
Ch$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
Ajay SQM Chile S.A.
|
|
96.592.180-K
|
|
Av. Pdte. Eduardo Frei 4900, Santiago
|
|
Chile
|
|
US$
|
|
|
51.0000
|
|
|
|
-
|
|
|
|
51.0000
|
|
Almacenes y Depósitos Ltda.
|
|
79.876.080-7
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
Ch$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
SQM Salar S.A.
|
|
79.626.800-K
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
US$
|
|
|
18.1800
|
|
|
|
81.8200
|
|
|
|
100.0000
|
|
SQM Industrial S.A.
|
|
79.947.100-0
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
US$
|
|
|
99.0470
|
|
|
|
0.9530
|
|
|
|
100.0000
|
|
Exploraciones Mineras S.A.
|
|
76.425.380-9
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
US$
|
|
|
0.2691
|
|
|
|
99.7309
|
|
|
|
100.0000
|
|
Sociedad Prestadora de Servicios de Salud Cruz del
Norte S.A.
|
|
76.534.490-5
|
|
Anibal Pinto 3228, Antofagasta
|
|
Chile
|
|
Ch$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Soquimich Comercial S.A.
|
|
79.768.170-9
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
US$
|
|
|
-
|
|
|
|
60.6383
|
|
|
|
60.6383
|
|
Comercial Agrorama Ltda.
|
|
76.064.419-6
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
Ch$
|
|
|
-
|
|
|
|
42.4468
|
|
|
|
42.4468
|
|
Comercial Hydro S.A.
|
|
96.801.610-5
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
Ch$
|
|
|
-
|
|
|
|
60.6383
|
|
|
|
60.6383
|
|
Agrorama S.A.
|
|
76.145.229-0
|
|
El Trovador 4285 Las Condes
|
|
Chile
|
|
Ch$
|
|
|
-
|
|
|
|
60.6377
|
|
|
|
60.6377
|
|
Orcoma Estudios SPA
|
|
76.359.919-1
|
|
Apoquindo 3721 Of.131 Las Condes
|
|
Chile
|
|
US$
|
|
|
51.0000
|
|
|
|
-
|
|
|
|
51.0000
|
|
Orcoma SPA
|
|
76.360.575-2
|
|
Apoquindo 3721 Of.131 Las Condes
|
|
Chile
|
|
US$
|
|
|
100.0000
|
|
|
|
-
|
|
|
|
100.0000
|
|
SQM North America Corp.
|
|
Foreign
|
|
2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta,
GA
|
|
United States
|
|
US$
|
|
|
40.0000
|
|
|
|
60.0000
|
|
|
|
100.0000
|
|
RS Agro Chemical Trading Corporation A.V.V.
|
|
Foreign
|
|
Caya Ernesto O. Petronia 17, Orangestad
|
|
Aruba
|
|
US$
|
|
|
98.3333
|
|
|
|
1.6667
|
|
|
|
100.0000
|
|
Nitratos Naturais do Chile Ltda.
|
|
Foreign
|
|
Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West
Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo
|
|
Brazil
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Nitrate Corporation of Chile Ltd.
|
|
Foreign
|
|
1 More London Place London SE1 2AF
|
|
United Kingdom
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Corporation N.V.
|
|
Foreign
|
|
Pietermaai 123, P.O. Box 897, Willemstad, Curacao
|
|
Netherlands
|
|
US$
|
|
|
0.0002
|
|
|
|
99.9998
|
|
|
|
100.0000
|
|
SQM Peru S.A.
|
|
Foreign
|
|
Avenida Camino Real N° 348 of. 702, San Isidro,
Lima
|
|
Peru
|
|
US$
|
|
|
0.9800
|
|
|
|
99.0200
|
|
|
|
100.0000
|
|
SQM Ecuador S.A.
|
|
Foreign
|
|
Av. José Orrantia y Av. Juan Tanca Marengo
Edificio Executive Center Piso 2 Oficina 211
|
|
Ecuador
|
|
US$
|
|
|
0.0040
|
|
|
|
99.9960
|
|
|
|
100.0000
|
|
SQM Brasil Ltda.
|
|
Foreign
|
|
Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West
Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo
|
|
Brazil
|
|
US$
|
|
|
1.0900
|
|
|
|
98.9100
|
|
|
|
100.0000
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.4
|
General information on consolidated
subsidiaries, continued
|
|
|
|
|
|
|
|
|
|
|
Ownership
interest
|
|
Subsidiary
|
|
Tax ID
|
|
Address
|
|
Country of
incorporation
|
|
Functional
currency
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQI Corporation N.V.
|
|
Foreign
|
|
Pietermaai 123, P.O. Box 897, Willemstad,
Curacao
|
|
Netherlands
|
|
US$
|
|
|
0.0159
|
|
|
|
99.9841
|
|
|
|
100.0000
|
|
SQMC Holding Corporation L.L.P.
|
|
Foreign
|
|
2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta
|
|
United States
|
|
US$
|
|
|
0.1000
|
|
|
|
99.9000
|
|
|
|
100.0000
|
|
SQM Japan Co. Ltd.
|
|
Foreign
|
|
From
1
st
Bldg 207, 5-3-10 Minami- Aoyama, Minato-ku, Tokyo
|
|
Japan
|
|
US$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
SQM Europe N.V.
|
|
Foreign
|
|
Houtdok-Noordkaai 25a B-2030 Antwerp, Belgium
|
|
Belgium
|
|
US$
|
|
|
0.5800
|
|
|
|
99.4200
|
|
|
|
100.0000
|
|
SQM Italia SRL
|
|
Foreign
|
|
Via A. Meucci, 5 500 15 Grassina Firenze
|
|
Italy
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Indonesia S.A.
|
|
Foreign
|
|
Perumahan Bumi Dirgantara Permai, Jl Suryadarma Blok
Aw No 15 Rt 01/09 17436 Jatisari Pondok Gede
|
|
Indonesia
|
|
US$
|
|
|
-
|
|
|
|
80.0000
|
|
|
|
80.0000
|
|
North American Trading Company
|
|
Foreign
|
|
2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta,
GA
|
|
United States
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Virginia LLC
|
|
Foreign
|
|
2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta,
GA
|
|
United States
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Comercial de México S.A. de C.V.
|
|
Foreign
|
|
Av. Moctezuma 144-4 Ciudad del Sol. CP
45050, Zapopan, Jalisco México
|
|
Mexico
|
|
US$
|
|
|
0.0010
|
|
|
|
99.9900
|
|
|
|
100.0000
|
|
SQM Investment Corporation N.V.
|
|
Foreign
|
|
Pietermaai 123, P.O. Box 897, Willemstad, Curacao
|
|
Netherlands
|
|
US$
|
|
|
1.0000
|
|
|
|
99.0000
|
|
|
|
100.0000
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Foreign
|
|
Caya Ernesto O. Petronia 17, Orangestad
|
|
Aruba
|
|
US$
|
|
|
1.6700
|
|
|
|
98.3300
|
|
|
|
100.0000
|
|
SQM Lithium Specialties LLP
|
|
Foreign
|
|
2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta,
GA
|
|
United States
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Soquimich SRL Argentina
|
|
Foreign
|
|
Espejo 65 Oficina 6 – 5500 Mendoza
|
|
Argentina
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Comercial Caimán Internacional S.A.
|
|
Foreign
|
|
Edificio Plaza Bancomer Calle 50
|
|
Panama
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM France S.A.
|
|
Foreign
|
|
ZAC des Pommiers 27930 FAUVILLE
|
|
France
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
Administración y Servicios Santiago S.A. de
C.V.
|
|
Foreign
|
|
Av. Moctezuma 144-4 Ciudad del Sol. CP
45050, Zapopan, Jalisco México
|
|
Mexico
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Nitratos México S.A. de C.V.
|
|
Foreign
|
|
Av. Moctezuma 144-4 Ciudad del Sol. CP
45050, Zapopan, Jalisco México
|
|
Mexico
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.4
|
General information on consolidated
subsidiaries, continued
|
|
|
|
|
|
|
|
|
|
|
Ownership
interest
|
|
Subsidiary
|
|
Tax ID
|
|
Address
|
|
Country of
incorporation
|
|
Functional
currency
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soquimich European Holding B.V.
|
|
Foreign
|
|
Loacalellikade 1 Parnassustoren 1076 AZ
Amsterdam
|
|
Netherlands
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Iberian S.A
|
|
Foreign
|
|
Provenza 251 Principal 1a CP 08008, Barcelona
|
|
Spain
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Africa Pty Ltd.
|
|
Foreign
|
|
Tramore House, 3 Wterford Office Park, Waterford Drive,
2191 Fourways, Johannesburg
|
|
South Africa
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Oceania Pty Ltd.
|
|
Foreign
|
|
Level 9, 50 Park Street, Sydney NSW 2000, Sydney
|
|
Australia
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Agro India Pvt. Ltd.
|
|
Foreign
|
|
C 30 Chiragh Enclave New Delhi, 110048
|
|
India
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Beijing Commercial Co. Ltd.
|
|
Foreign
|
|
Room 1001C, CBD International Mansion N 16 Yong An
Dong Li, Jian Wai Ave Beijing 100022, P.R.
|
|
China
|
|
US$
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM Thailand Limited
|
|
Foreign
|
|
Unit 2962, Level 29, N° 388, Exchange Tower Sukhumvit
Road, Klongtoey Bangkok
|
|
Thailand
|
|
US$
|
|
|
-
|
|
|
|
99.996
|
|
|
|
99.996
|
|
SQM Vitas Spain
|
|
Foreign
|
|
C/Manuel Echeverria Manzana 2 Muelle de la Cab (Puerto
Real)
|
|
Spain
|
|
Euro
|
|
|
-
|
|
|
|
100.0000
|
|
|
|
100.0000
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.5
|
Information
attributable to non-controlling interests
|
Subsidiary
|
|
% of interests in
the ownership
held by non-
controlling
interests.
|
|
|
Profit (loss) attributable to
non-controlling interests
|
|
|
Equity, non-controlling
interests
|
|
|
Dividends paid to non-
controlling interests
|
|
|
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Proinsa Ltda.
|
|
|
0.1
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Potasio S.A.
|
|
|
0.0000001
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Ajay SQM Chile S.A.
|
|
|
49
|
%
|
|
|
733
|
|
|
|
1,551
|
|
|
|
8,258
|
|
|
|
8,107
|
|
|
|
582
|
|
|
|
1,946
|
|
SQM Indonesia S.A.
|
|
|
20
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
Soquimich Comercial S.A.
|
|
|
39.3616784
|
%
|
|
|
174
|
|
|
|
2,605
|
|
|
|
49,317
|
|
|
|
49,897
|
|
|
|
87
|
|
|
|
1,303
|
|
Comercial Agrorama Ltda.
|
|
|
30
|
%
|
|
|
(123
|
)
|
|
|
3
|
|
|
|
187
|
|
|
|
292
|
|
|
|
-
|
|
|
|
-
|
|
Agrorama S.A.
|
|
|
0.001
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Orcoma Estudios SPA
|
|
|
49
|
%
|
|
|
1
|
|
|
|
5
|
|
|
|
2,275
|
|
|
|
2,274
|
|
|
|
-
|
|
|
|
-
|
|
SQM (Thailand) Limited.
|
|
|
0.004
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
785
|
|
|
|
4,164
|
|
|
|
60,038
|
|
|
|
60,571
|
|
|
|
669
|
|
|
|
3,249
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.6
|
Information
on consolidated subsidiaries
|
|
|
06/30/2016
|
|
Subsidiary
|
|
Assets
|
|
|
Liabilities
|
|
|
Revenue
|
|
|
Profit (loss)
|
|
|
Comprehensive
income (loss)
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQM Nitratos S.A.
|
|
|
587,538
|
|
|
|
59,549
|
|
|
|
586,990
|
|
|
|
6,708
|
|
|
|
44,927
|
|
|
|
2,979
|
|
|
|
2,992
|
|
Proinsa Ltda.
|
|
|
156
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
(4
|
)
|
SQMC Internacional Ltda.
|
|
|
207
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
SQM Potasio S.A.
|
|
|
131,955
|
|
|
|
949,295
|
|
|
|
34,626
|
|
|
|
24,101
|
|
|
|
4,534
|
|
|
|
119,383
|
|
|
|
119,636
|
|
Serv. Integrales de Tránsito y Transf. S.A.
|
|
|
56,899
|
|
|
|
62,058
|
|
|
|
92,340
|
|
|
|
6,221
|
|
|
|
11,504
|
|
|
|
(1,763
|
)
|
|
|
(1,878
|
)
|
Isapre Norte Grande Ltda.
|
|
|
560
|
|
|
|
733
|
|
|
|
544
|
|
|
|
149
|
|
|
|
1,537
|
|
|
|
38
|
|
|
|
55
|
|
Ajay SQM Chile S.A.
|
|
|
17,291
|
|
|
|
946
|
|
|
|
979
|
|
|
|
405
|
|
|
|
15,770
|
|
|
|
1,496
|
|
|
|
1,496
|
|
Almacenes y Depósitos Ltda.
|
|
|
283
|
|
|
|
45
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
95
|
|
SQM Salar S.A.
|
|
|
892,922
|
|
|
|
831,816
|
|
|
|
579,801
|
|
|
|
206,632
|
|
|
|
432,761
|
|
|
|
146,980
|
|
|
|
147,062
|
|
SQM Industrial S.A.
|
|
|
1,125,426
|
|
|
|
676,494
|
|
|
|
812,791
|
|
|
|
80,452
|
|
|
|
318,647
|
|
|
|
(760
|
)
|
|
|
1,119
|
|
Exploraciones Mineras S.A.
|
|
|
517
|
|
|
|
31,493
|
|
|
|
5,820
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(176
|
)
|
|
|
(175
|
)
|
Sociedad Prestadora de Servicios de Salud Cruz del
Norte S,A.
|
|
|
345
|
|
|
|
587
|
|
|
|
464
|
|
|
|
397
|
|
|
|
972
|
|
|
|
9
|
|
|
|
12
|
|
Soquimich Comercial S.A.
|
|
|
150,445
|
|
|
|
21,282
|
|
|
|
45,366
|
|
|
|
1,070
|
|
|
|
45,622
|
|
|
|
443
|
|
|
|
428
|
|
Comercial Agrorama Ltda.
|
|
|
8,720
|
|
|
|
1,685
|
|
|
|
9,749
|
|
|
|
32
|
|
|
|
5,905
|
|
|
|
(411
|
)
|
|
|
(398
|
)
|
Comercial Hydro S.A.
|
|
|
9,162
|
|
|
|
68
|
|
|
|
42
|
|
|
|
14
|
|
|
|
23
|
|
|
|
195
|
|
|
|
194
|
|
Agrorama S.A.
|
|
|
10,283
|
|
|
|
862
|
|
|
|
12,060
|
|
|
|
34
|
|
|
|
5,147
|
|
|
|
(599
|
)
|
|
|
(603
|
)
|
Orcoma SpA
|
|
|
-
|
|
|
|
2,356
|
|
|
|
13
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
Orcoma Estudio SpA
|
|
|
1,081
|
|
|
|
3,582
|
|
|
|
18
|
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
SQM North America Corp.
|
|
|
186,814
|
|
|
|
15,589
|
|
|
|
204,275
|
|
|
|
485
|
|
|
|
131,806
|
|
|
|
(16,946
|
)
|
|
|
(18,207
|
)
|
RS Agro Chemical Trading Corporation A.V.V.
|
|
|
5,182
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
|
|
(13
|
)
|
Nitratos Naturais do Chile Ltda.
|
|
|
3
|
|
|
|
254
|
|
|
|
3,457
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(176
|
)
|
|
|
(176
|
)
|
Nitrate Corporation of Chile Ltd.
|
|
|
5,076
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Corporation N.V.
|
|
|
668
|
|
|
|
110,483
|
|
|
|
3,549
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,503
|
)
|
|
|
(5,126
|
)
|
SQM Peru S.A.
|
|
|
356
|
|
|
|
1
|
|
|
|
1,174
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(63
|
)
|
|
|
(63
|
)
|
SQM Ecuador S.A.
|
|
|
16,721
|
|
|
|
136
|
|
|
|
15,727
|
|
|
|
35
|
|
|
|
11,935
|
|
|
|
205
|
|
|
|
205
|
|
SQM Brasil Ltda.
|
|
|
179
|
|
|
|
1
|
|
|
|
724
|
|
|
|
2,267
|
|
|
|
116
|
|
|
|
(205
|
)
|
|
|
(205
|
)
|
SQI Corporation N.V.
|
|
|
-
|
|
|
|
22
|
|
|
|
45
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
(8
|
)
|
SQMC Holding Corporation L.L.P.
|
|
|
22,532
|
|
|
|
14,409
|
|
|
|
1,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,848
|
|
|
|
1,848
|
|
SQM Japan Co. Ltd.
|
|
|
2,952
|
|
|
|
247
|
|
|
|
341
|
|
|
|
580
|
|
|
|
1,569
|
|
|
|
474
|
|
|
|
474
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.6
|
Information on consolidated
subsidiaries, continued
|
|
|
06/30/2016
|
|
Subsidiary
|
|
Assets
|
|
|
Liabilities
|
|
|
Revenue
|
|
|
Profit (loss)
|
|
|
Comprehensive
income (loss)
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQM Europe N.V.
|
|
|
331,742
|
|
|
|
2,359
|
|
|
|
293,350
|
|
|
|
-
|
|
|
|
333,889
|
|
|
|
(3,895
|
)
|
|
|
(3,895
|
)
|
SQM Italia SRL
|
|
|
1,141
|
|
|
|
-
|
|
|
|
14
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Indonesia S.A.
|
|
|
4
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
North American Trading Company
|
|
|
158
|
|
|
|
145
|
|
|
|
39
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Virginia LLC
|
|
|
14,814
|
|
|
|
14,360
|
|
|
|
14,814
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Comercial de México S.A. de C.V.
|
|
|
94,944
|
|
|
|
1,988
|
|
|
|
69,814
|
|
|
|
-
|
|
|
|
96,490
|
|
|
|
(1,582
|
)
|
|
|
(1,582
|
)
|
SQM Investment Corporation N.V.
|
|
|
74,316
|
|
|
|
125
|
|
|
|
27,024
|
|
|
|
861
|
|
|
|
-
|
|
|
|
(4,986
|
)
|
|
|
(4,986
|
)
|
Royal Seed Trading Corporation A.V.V.
|
|
|
52,854
|
|
|
|
-
|
|
|
|
73,245
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(118
|
)
|
|
|
15
|
|
SQM Lithium Specialties LLP
|
|
|
15,766
|
|
|
|
3
|
|
|
|
1,264
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Soquimich SRL Argentina
|
|
|
214
|
|
|
|
-
|
|
|
|
175
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
Comercial Caimán Internacional S.A.
|
|
|
262
|
|
|
|
-
|
|
|
|
1,122
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM France S.A.
|
|
|
345
|
|
|
|
6
|
|
|
|
114
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Administración y Servicios Santiago S.A. de
C.V.
|
|
|
234
|
|
|
|
120
|
|
|
|
688
|
|
|
|
97
|
|
|
|
1,314
|
|
|
|
264
|
|
|
|
264
|
|
SQM Nitratos México S.A. de C.V.
|
|
|
35
|
|
|
|
2
|
|
|
|
19
|
|
|
|
7
|
|
|
|
126
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
Soquimich European Holding B.V.
|
|
|
63,440
|
|
|
|
106,104
|
|
|
|
71,565
|
|
|
|
212
|
|
|
|
-
|
|
|
|
(6,237
|
)
|
|
|
(5,152
|
)
|
SQM Iberian S.A.
|
|
|
77,713
|
|
|
|
1,675
|
|
|
|
73,166
|
|
|
|
162
|
|
|
|
71,273
|
|
|
|
720
|
|
|
|
747
|
|
SQM Africa Pty Ltd.
|
|
|
95,340
|
|
|
|
1,323
|
|
|
|
88,837
|
|
|
|
-
|
|
|
|
27,014
|
|
|
|
(6,535
|
)
|
|
|
(6,535
|
)
|
SQM Oceania Pty Ltd.
|
|
|
2,334
|
|
|
|
-
|
|
|
|
400
|
|
|
|
-
|
|
|
|
1,266
|
|
|
|
18
|
|
|
|
18
|
|
SQM Agro India Pvt, Ltd.
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
(3
|
)
|
SQM Beijing Commercial Co. Ltd.
|
|
|
4,329
|
|
|
|
34
|
|
|
|
18
|
|
|
|
-
|
|
|
|
4,384
|
|
|
|
2,167
|
|
|
|
2,167
|
|
SQM Thailand Limited
|
|
|
9,075
|
|
|
|
6
|
|
|
|
6,463
|
|
|
|
-
|
|
|
|
1,930
|
|
|
|
(9
|
)
|
|
|
(9
|
)
|
SQM Vitas Spain S.A.
|
|
|
3,112
|
|
|
|
728
|
|
|
|
2,234
|
|
|
|
|
|
|
|
6,520
|
|
|
|
373
|
|
|
|
373
|
|
Total
|
|
|
4,076,446
|
|
|
|
2,912,972
|
|
|
|
3,136,263
|
|
|
|
330,922
|
|
|
|
1,576,981
|
|
|
|
227,581
|
|
|
|
230,169
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.6
|
Information on consolidated
subsidiaries, continued
|
|
|
12/31/2015
|
|
Subsidiary
|
|
Assets
|
|
|
Liabilities
|
|
|
Revenue
|
|
|
Profit (loss)
|
|
|
Comprehensive
income (loss)
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQM Nitratos S.A.
|
|
|
521,948
|
|
|
|
69,159
|
|
|
|
531,903
|
|
|
|
7,913
|
|
|
|
146,731
|
|
|
|
(715
|
)
|
|
|
(739
|
)
|
Proinsa Ltda.
|
|
|
149
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQMC Internacional Ltda.
|
|
|
195
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
SQM Potasio S.A.
|
|
|
90,230
|
|
|
|
843,842
|
|
|
|
7,748
|
|
|
|
23,438
|
|
|
|
10,785
|
|
|
|
184,315
|
|
|
|
184,533
|
|
Serv. Integrales de Tránsito y Transf. S.A.
|
|
|
46,646
|
|
|
|
63,973
|
|
|
|
81,703
|
|
|
|
6,642
|
|
|
|
44,045
|
|
|
|
(12,450
|
)
|
|
|
(12,316
|
)
|
Isapre Norte Grande Ltda.
|
|
|
791
|
|
|
|
540
|
|
|
|
664
|
|
|
|
143
|
|
|
|
3,883
|
|
|
|
-
|
|
|
|
6
|
|
Ajay SQM Chile S.A.
|
|
|
17,044
|
|
|
|
942
|
|
|
|
879
|
|
|
|
563
|
|
|
|
38,414
|
|
|
|
3,165
|
|
|
|
3,165
|
|
Almacenes y Depósitos Ltda.
|
|
|
264
|
|
|
|
41
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
(77
|
)
|
SQM Salar S.A.
|
|
|
639,804
|
|
|
|
871,339
|
|
|
|
474,225
|
|
|
|
201,581
|
|
|
|
762,058
|
|
|
|
193,367
|
|
|
|
193,300
|
|
SQM Industrial S.A.
|
|
|
1,030,937
|
|
|
|
702,192
|
|
|
|
741,820
|
|
|
|
83,751
|
|
|
|
685,634
|
|
|
|
19,144
|
|
|
|
11,224
|
|
Exploraciones Mineras S.A.
|
|
|
482
|
|
|
|
31,443
|
|
|
|
5,560
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(666
|
)
|
|
|
(666
|
)
|
Sociedad Prestadora de Servicios de Salud Cruz del Norte S,A.
|
|
|
296
|
|
|
|
550
|
|
|
|
423
|
|
|
|
364
|
|
|
|
2,299
|
|
|
|
(130
|
)
|
|
|
12
|
|
Soquimich Comercial S.A.
|
|
|
138,413
|
|
|
|
22,447
|
|
|
|
33,058
|
|
|
|
1,037
|
|
|
|
162,582
|
|
|
|
6,618
|
|
|
|
6,301
|
|
Comercial Agrorama Ltda.
|
|
|
10,231
|
|
|
|
1,554
|
|
|
|
10,796
|
|
|
|
16
|
|
|
|
13,806
|
|
|
|
11
|
|
|
|
12
|
|
Comercial Hydro S.A.
|
|
|
9,014
|
|
|
|
87
|
|
|
|
122
|
|
|
|
-
|
|
|
|
50
|
|
|
|
460
|
|
|
|
460
|
|
Agrorama S.A.
|
|
|
12,848
|
|
|
|
595
|
|
|
|
13,759
|
|
|
|
16
|
|
|
|
15,131
|
|
|
|
(380
|
)
|
|
|
(380
|
)
|
Orcoma SpA
|
|
|
-
|
|
|
|
2,356
|
|
|
|
9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
(8
|
)
|
Orcoma Estudio SpA
|
|
|
2,059
|
|
|
|
2,931
|
|
|
|
347
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9
|
|
|
|
9
|
|
SQM North America Corp.
|
|
|
200,156
|
|
|
|
16,348
|
|
|
|
201,343
|
|
|
|
-
|
|
|
|
255,455
|
|
|
|
(12,774
|
)
|
|
|
(12,774
|
)
|
RS Agro Chemical Trading Corporation A.V.V.
|
|
|
5,194
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
(7
|
)
|
Nitratos Naturais do Chile Ltda.
|
|
|
2
|
|
|
|
229
|
|
|
|
3,255
|
|
|
|
-
|
|
|
|
-
|
|
|
|
618
|
|
|
|
618
|
|
Nitrate Corporation of Chile Ltd.
|
|
|
5,076
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Corporation N.V.
|
|
|
668
|
|
|
|
115,720
|
|
|
|
3,539
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,882
|
|
|
|
303
|
|
SQM Peru S.A.
|
|
|
421
|
|
|
|
1
|
|
|
|
1,176
|
|
|
|
-
|
|
|
|
22
|
|
|
|
(104
|
)
|
|
|
(104
|
)
|
SQM Ecuador S.A.
|
|
|
19,660
|
|
|
|
147
|
|
|
|
18,883
|
|
|
|
35
|
|
|
|
16,778
|
|
|
|
447
|
|
|
|
447
|
|
SQM Brasil Ltda.
|
|
|
121
|
|
|
|
1
|
|
|
|
585
|
|
|
|
2,142
|
|
|
|
375
|
|
|
|
(2,694
|
)
|
|
|
(2,694
|
)
|
SQI Corporation N.V.
|
|
|
-
|
|
|
|
23
|
|
|
|
38
|
|
|
|
-
|
|
|
|
-
|
|
|
|
53
|
|
|
|
52
|
|
SQMC Holding Corporation L.L.P.
|
|
|
21,296
|
|
|
|
13,873
|
|
|
|
1,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,044
|
|
|
|
2,044
|
|
SQM Japan Co. Ltd.
|
|
|
2,327
|
|
|
|
211
|
|
|
|
239
|
|
|
|
495
|
|
|
|
2,861
|
|
|
|
159
|
|
|
|
159
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.6
|
Information on consolidated
subsidiaries, continued
|
|
|
12/31/2015
|
|
Subsidiary
|
|
Assets
|
|
|
Liabilities
|
|
|
Revenue
|
|
|
Profit
(loss)
|
|
|
Comprehensive
income (loss)
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQM
Europe N.V.
|
|
|
315,642
|
|
|
|
2,111
|
|
|
|
273,123
|
|
|
|
-
|
|
|
|
530,912
|
|
|
|
(5,536
|
)
|
|
|
(5,536
|
)
|
SQM Italia
SRL
|
|
|
1,124
|
|
|
|
-
|
|
|
|
14
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Indonesia
S.A.
|
|
|
3
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
North
American Trading Company
|
|
|
158
|
|
|
|
145
|
|
|
|
39
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
SQM Virginia
LLC
|
|
|
14,814
|
|
|
|
14,360
|
|
|
|
14,814
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
(7
|
)
|
SQM Comercial
de México S.A. de C.V.
|
|
|
87,686
|
|
|
|
1,710
|
|
|
|
61,589
|
|
|
|
-
|
|
|
|
183,374
|
|
|
|
(3,399
|
)
|
|
|
(3,399
|
)
|
SQM Investment
Corporation N.V.
|
|
|
81,328
|
|
|
|
130
|
|
|
|
29,054
|
|
|
|
861
|
|
|
|
-
|
|
|
|
17,865
|
|
|
|
17,865
|
|
Royal
Seed Trading Corporation A.V.V.
|
|
|
72,828
|
|
|
|
-
|
|
|
|
93,235
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,490
|
)
|
|
|
(3,089
|
)
|
SQM Lithium
Specialties LLP
|
|
|
15,766
|
|
|
|
3
|
|
|
|
1,264
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
(7
|
)
|
Soquimich
SRL Argentina
|
|
|
243
|
|
|
|
-
|
|
|
|
199
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(135
|
)
|
|
|
(135
|
)
|
Comercial
Caimán Internacional S.A.
|
|
|
261
|
|
|
|
-
|
|
|
|
1,122
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
SQM France
S.A.
|
|
|
345
|
|
|
|
6
|
|
|
|
114
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Administración
y Servicios Santiago S.A. de C.V.
|
|
|
167
|
|
|
|
-
|
|
|
|
635
|
|
|
|
227
|
|
|
|
3,094
|
|
|
|
(90
|
)
|
|
|
(90
|
)
|
SQM Nitratos
México S.A. de C.V.
|
|
|
40
|
|
|
|
4
|
|
|
|
25
|
|
|
|
6
|
|
|
|
291
|
|
|
|
4
|
|
|
|
4
|
|
Soquimich
European Holding B.V.
|
|
|
71,166
|
|
|
|
112,488
|
|
|
|
79,906
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,245
|
|
|
|
(1,881
|
)
|
SQM Iberian
S.A.
|
|
|
55,444
|
|
|
|
65
|
|
|
|
50,169
|
|
|
|
-
|
|
|
|
137,869
|
|
|
|
11
|
|
|
|
11
|
|
SQM Africa
Pty Ltd.
|
|
|
94,508
|
|
|
|
1,372
|
|
|
|
81,552
|
|
|
|
-
|
|
|
|
88,247
|
|
|
|
4,945
|
|
|
|
4,945
|
|
SQM Oceania
Pty Ltd.
|
|
|
2,357
|
|
|
|
-
|
|
|
|
440
|
|
|
|
-
|
|
|
|
2,378
|
|
|
|
(192
|
)
|
|
|
(192
|
)
|
SQM Agro
India Pvt, Ltd.
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
SQM Beijing
Commercial Co. Ltd.
|
|
|
2,827
|
|
|
|
43
|
|
|
|
608
|
|
|
|
-
|
|
|
|
5,373
|
|
|
|
(58
|
)
|
|
|
(58
|
)
|
SQM
Thailand Limited
|
|
|
9,765
|
|
|
|
27
|
|
|
|
6,991
|
|
|
|
-
|
|
|
|
11,539
|
|
|
|
125
|
|
|
|
125
|
|
Total
|
|
|
3,602,747
|
|
|
|
2,893,008
|
|
|
|
2,827,968
|
|
|
|
329,230
|
|
|
|
3,123,986
|
|
|
|
398,625
|
|
|
|
381,428
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 6
|
Background
of companies included in consolidation (continued)
|
|
6.7
|
Detail
of transactions between consolidated companies
|
|
a)
|
Transactions conducted in
2016
|
On May 12, 2016,
the subsidiary SQM Iberian S.A. acquired 100% of interest in SQM Vitas Spain for ThUS$ 1,710, generating al loss of ThUS$104.
|
b)
|
Transactions conducted in
2015
|
On August 5, 2015,
the subsidiary SQM Brasil Ltda. made a capital contribution of ThUS$572 in its subsidiary Nitratos Naturais do Chile Ltda. As
a result of such transaction, SQM Brasil Ltda. increased its interest from 0.001% to 70.82% in such company. SQM Industrial S.A.
was not involved in such capital increase, decreasing its interest from 99.99% to 29.18%. This generated no effects on the consolidated
profit or loss of SQM S.A.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 7
|
Cash and cash equivalents
|
|
7.1
|
Types
of cash and cash equivalents
|
As of June 30,
2016 and December 31, 2015, cash and cash equivalents are detailed as follows:
|
|
06/30/2016
|
|
|
12/31/20151
|
|
a) Cash
|
|
ThUS$
|
|
|
ThUS$
|
|
Cash on hand
|
|
|
90
|
|
|
|
87
|
|
Cash in banks
|
|
|
64,518
|
|
|
|
31,977
|
|
Other demand deposits
|
|
|
4,282
|
|
|
|
9,042
|
|
Total cash
|
|
|
68,890
|
|
|
|
41,106
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
b) Cash equivalents
|
|
ThUS$
|
|
|
ThUS$
|
|
Short-term deposits, classified as cash equivalents
|
|
|
196,209
|
|
|
|
84,662
|
|
Short-term investments, classified as cash equivalents
|
|
|
317,892
|
|
|
|
401,491
|
|
Total cash equivalents
|
|
|
514,101
|
|
|
|
486,153
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents
|
|
|
582,991
|
|
|
|
527,259
|
|
|
7.2
|
Short-term
investments, classified as cash equivalents
|
As of June 30,
2016 and December 31, 2015, short-term investments, classified as cash and cash equivalents relate to mutual funds (investment
liquidity funds) for investments in:
Institution
|
|
06/30/2016
MUS$
|
|
|
12/31/2015
MUS$
|
|
Legg Mason - Western Asset Institutional Cash Reserves
|
|
|
162,960
|
|
|
|
204,082
|
|
JP Morgan US dollar Liquidity Fund Institutional
|
|
|
154,932
|
|
|
|
197,409
|
|
Total
|
|
|
317,892
|
|
|
|
401,491
|
|
Short-term investments are highly liquid
fund manager accounts that are basically invested in short-term fixed rate notes in the U.S. market.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 7
|
Cash and
cash equivalents (continued)
|
|
7.3
|
Information
on cash and cash equivalents by currency
|
As of June 30,
2016 and December 31, 2015, information on cash and cash equivalents by currency is detailed as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Original currency
|
|
MUS$
|
|
|
MUS$
|
|
Chilean Peso (*)
|
|
|
1,413
|
|
|
|
2,656
|
|
US Dollar
|
|
|
564,105
|
|
|
|
512,809
|
|
Euro
|
|
|
13,098
|
|
|
|
4,245
|
|
Mexican Peso
|
|
|
173
|
|
|
|
1,439
|
|
South African Rand
|
|
|
1,426
|
|
|
|
4,123
|
|
Japanese Yen
|
|
|
1,951
|
|
|
|
1,690
|
|
Peruvian Sol
|
|
|
2
|
|
|
|
1
|
|
Brazilian Real
|
|
|
20
|
|
|
|
8
|
|
Chinese Yuan
|
|
|
765
|
|
|
|
272
|
|
Indian Rupee
|
|
|
9
|
|
|
|
14
|
|
Thai Baht
|
|
|
1
|
|
|
|
1
|
|
Argentine Peso
|
|
|
4
|
|
|
|
1
|
|
Pound Sterling
|
|
|
24
|
|
|
|
-
|
|
Total
|
|
|
582,991
|
|
|
|
527,259
|
|
(*) The Company maintains financial
derivative policies which allow dollarizing these term deposits in Chilean pesos.
|
7.4
|
Amount
of significant restricted (unavailable) cash balances
|
Cash on hand and
in current bank accounts are available resources, and their carrying value is equal to their fair value.
As of June 30,
2016 and December 31, 2015, restricted cash balances are presented in Note 10.9.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 7
|
Cash and
cash equivalents (continued)
|
|
7.5
|
Short-term deposits, classified
as cash equivalents
|
The detail at the
end of each period is as follows:
2016
Receiver
of the deposit
|
|
Type of deposit
|
|
Original Currency
|
|
Interest rate
|
|
|
Placement date
|
|
Expiration date
|
|
Principal
ThUS$
|
|
|
Interest
accrued
to-date
ThUS$
|
|
|
06/30/2016
ThUS$
|
|
Scotiabank
|
|
Fixed term
|
|
US$
|
|
|
0,55
|
|
|
06/08/2016
|
|
07/13/2016
|
|
|
20,000
|
|
|
|
7
|
|
|
|
20,007
|
|
Corpbanca
|
|
Fixed term
|
|
US$
|
|
|
0,72
|
|
|
06/09/2016
|
|
07/28/2016
|
|
|
20,176
|
|
|
|
8
|
|
|
|
20,184
|
|
Corpbanca
|
|
Fixed term
|
|
US$
|
|
|
0,60
|
|
|
06/16/2016
|
|
08/03/2016
|
|
|
20,111
|
|
|
|
5
|
|
|
|
20,116
|
|
Corpbanca
|
|
Fixed term
|
|
Ch$
|
|
|
0,35
|
|
|
05/31/2016
|
|
07/05/2016
|
|
|
20,903
|
|
|
|
73
|
|
|
|
20,976
|
|
Banco Crédito e Inversiones
|
|
Fixed term
|
|
US$
|
|
|
0,65
|
|
|
06/08/2016
|
|
07/20/2016
|
|
|
20,011
|
|
|
|
8
|
|
|
|
20,019
|
|
HSBC
|
|
Fixed term
|
|
US$
|
|
|
0,95
|
|
|
06/24/2016
|
|
08/03/2016
|
|
|
8,000
|
|
|
|
1
|
|
|
|
8,001
|
|
Banco Crédito e Inversiones
|
|
Fixed term
|
|
US$
|
|
|
0,65
|
|
|
06/08/2016
|
|
07/20/2016
|
|
|
20,011
|
|
|
|
8
|
|
|
|
20,019
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
US$
|
|
|
0,73
|
|
|
06/09/2016
|
|
07/28/2016
|
|
|
10,006
|
|
|
|
4
|
|
|
|
10,010
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
US$
|
|
|
0,65
|
|
|
06/22/2016
|
|
08/10/2016
|
|
|
20,008
|
|
|
|
3
|
|
|
|
20,011
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
US$
|
|
|
0,58
|
|
|
06/30/2016
|
|
07/07/2016
|
|
|
550
|
|
|
|
-
|
|
|
|
550
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
US$
|
|
|
0,60
|
|
|
06/30/2016
|
|
07/15/2016
|
|
|
5,100
|
|
|
|
-
|
|
|
|
5,100
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
US$
|
|
|
0,62
|
|
|
06/30/2016
|
|
07/22/2016
|
|
|
3,100
|
|
|
|
-
|
|
|
|
3,100
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
US$
|
|
|
0,65
|
|
|
06/30/2016
|
|
08/01/2016
|
|
|
587
|
|
|
|
-
|
|
|
|
587
|
|
Banco de Chile
|
|
Fixed term
|
|
US$
|
|
|
0,60
|
|
|
06/30/2016
|
|
08/01/2016
|
|
|
4,250
|
|
|
|
-
|
|
|
|
4,250
|
|
Banco Crédito e Inversiones
|
|
Fixed term
|
|
US$
|
|
|
0,70
|
|
|
06/30/2016
|
|
08/01/2016
|
|
|
5,000
|
|
|
|
-
|
|
|
|
5,000
|
|
Corpbanca
|
|
Fixed term
|
|
US$
|
|
|
0,70
|
|
|
06/30/2016
|
|
08/01/2016
|
|
|
7,000
|
|
|
|
-
|
|
|
|
7,000
|
|
Corpbanca
|
|
Fixed term
|
|
US$
|
|
|
0,75
|
|
|
06/30/2016
|
|
08/01/2016
|
|
|
2,000
|
|
|
|
-
|
|
|
|
2,000
|
|
Citibank New York
|
|
Overnight
|
|
US$
|
|
|
0,01
|
|
|
06/30/2016
|
|
07/01/2016
|
|
|
1,025
|
|
|
|
-
|
|
|
|
1,025
|
|
Citibank New York
|
|
Overnight
|
|
US$
|
|
|
0,01
|
|
|
06/30/2016
|
|
07/01/2016
|
|
|
4,671
|
|
|
|
-
|
|
|
|
4,671
|
|
BBVA Banco Francés
|
|
Fixed term
|
|
US$
|
|
|
0,28
|
|
|
06/062016
|
|
07/11/2016
|
|
|
205
|
|
|
|
-
|
|
|
|
205
|
|
Nedbank
|
|
On demand
|
|
US$
|
|
|
-
|
|
|
06/30/2016
|
|
07/01/2016
|
|
|
3,378
|
|
|
|
-
|
|
|
|
3,378
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
196,092
|
|
|
|
117
|
|
|
|
196,209
|
|
2015
Receiver
of the deposit
|
|
Type of deposit
|
|
Original Currency
|
|
Interest rate
|
|
|
Placement date
|
|
Expiration date
|
|
Principal
ThUS$
|
|
|
Interest
accrued
to-date
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Banco Crédito e Inversiones
|
|
Fixed term
|
|
US$
|
|
|
0.50
|
|
|
12/23/2015
|
|
1/27/2016
|
|
|
50,000
|
|
|
|
6
|
|
|
|
50,006
|
|
Corpbanca
|
|
Fixed term
|
|
US$
|
|
|
0.65
|
|
|
12/22/2015
|
|
1/21/2016
|
|
|
25,000
|
|
|
|
4
|
|
|
|
25,004
|
|
Banco Crédito e Inversiones
|
|
Fixed term
|
|
Ch$
|
|
|
0.32
|
|
|
12/30/2015
|
|
1/14/2016
|
|
|
1,338
|
|
|
|
-
|
|
|
|
1,338
|
|
Banco Santander Santiago
|
|
Fixed term
|
|
Ch$
|
|
|
0.31
|
|
|
12/30/2015
|
|
1/14/2016
|
|
|
704
|
|
|
|
-
|
|
|
|
704
|
|
Banco Crédito e Inversiones
|
|
Fixed term
|
|
US$
|
|
|
0.30
|
|
|
12/11/2015
|
|
1/11/2016
|
|
|
1,000
|
|
|
|
|
|
|
|
1,000
|
|
Citibank New York
|
|
Overnight
|
|
US$
|
|
|
0.01
|
|
|
12/31/2015
|
|
1/2/2016
|
|
|
225
|
|
|
|
-
|
|
|
|
225
|
|
Citibank New York
|
|
Overnight
|
|
US$
|
|
|
0.01
|
|
|
12/31/2015
|
|
1/2/2016
|
|
|
614
|
|
|
|
-
|
|
|
|
614
|
|
BBVA Banco Francés
|
|
Fixed term
|
|
US$
|
|
|
19.00
|
|
|
12/2/2015
|
|
1/4/2016
|
|
|
236
|
|
|
|
-
|
|
|
|
236
|
|
ABN Amro Bank
|
|
On demand
|
|
Euro
|
|
|
-
|
|
|
12/31/2015
|
|
1/2/2016
|
|
|
1,240
|
|
|
|
-
|
|
|
|
1,240
|
|
Nedbank
|
|
On demand
|
|
US$
|
|
|
-
|
|
|
12/31/2015
|
|
1/2/2016
|
|
|
4,295
|
|
|
|
-
|
|
|
|
4,295
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84,652
|
|
|
|
10
|
|
|
|
84,662
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
The composition of inventory at each
period-end is as follows:
Type of inventory
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
|
|
|
|
|
|
|
Raw material reserves
|
|
|
7,849
|
|
|
|
4,844
|
|
Supplies for production reserves
|
|
|
29,738
|
|
|
|
29,353
|
|
Products-in-progress reserves
|
|
|
469,304
|
|
|
|
478,627
|
|
Finished product reserves
|
|
|
510,963
|
|
|
|
491,022
|
|
Total
|
|
|
1,017,854
|
|
|
|
1,003,846
|
|
As of June 30,
2016, the Company maintained inventories of caliche ore available for treatment for an amount of ThUS$ 35,036 and of ThUS$ 32,203
as of December 31, 2015.
As of June 30,
2016, the sum registered as cost of sale related to inventory in the statement of income amounts to ThUS$528,331 and to ThUS$507,546
as of June 30, 2015.
Inventory reserves
recognized as of June 30, 2016 amount to ThUS$78,981, and ThUS$80,369 as of December 31, 2015. Inventory reserves have been made
based on a technical study that covers the different variables affecting products in stock (density and humidity, among others).
Additionally, reserves are recognized if goods are sold cheaper than the related cost, and for differences that arise from inventory
counts.
The breakdown of inventory reserves
is detailed as follows:
Type of inventory
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
|
|
|
|
|
|
|
Raw material reserves
|
|
|
93
|
|
|
|
93
|
|
Supplies for production reserves
|
|
|
920
|
|
|
|
920
|
|
Products-in-progress reserves
|
|
|
53,306
|
|
|
|
53,187
|
|
Finished product reserves
|
|
|
24,662
|
|
|
|
26,169
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
78,981
|
|
|
|
80,369
|
|
The Company has
not delivered inventory as collateral for the periods indicated above.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related party disclosures
|
|
9.1
|
Related
party disclosures
|
Balances pending
at period-end are not guaranteed, accrue no interest and are settled in cash. No guarantees have been delivered or received for
trade and other receivables due from related parties or trade and other payables due to related parties. For the period ended
June 30, 2016, the Company has not recorded any impairment in accounts receivable related to amounts owed by related parties.
This evaluation is conducted every year through an examination of the financial position of the related party in the market in
which it operates.
|
9.2
|
Relationships
between the parent and the entity
|
According to the
Company’s by-laws, no shareholder can own more than 32% of the Company’s voting right shares.
Sociedad de Inversiones
Pampa Calichera S.A., Potasios de Chile S.A., and Inversiones Global Mining (Chile) Ltda., collectively the Pampa Group, are the
owners of a number of shares that are equivalent to 29.97% as of June 30, 2016 of the current total amount of shares issued, subscribed
and fully-paid of the Company. In addition, Kowa Company Ltd., Inversiones La Esperanza (Chile) Limitada, Kochi S.A. and La Esperanza
Delaware Corporation, collectively the Kowa Group, are the owners of a number of shares equivalent to 2.12% of the total amount
of shares of SQM S.A. issued, subscribed and fully-paid.
The Pampa Group
and the Kowa Group have informed SQM S.A., the Chilean SVS and the relevant stock exchanges in Chile and abroad that they are
not and have never been related parties between them. In addition, this is regardless of the fact that both Groups on December
21, 2006 have entered into a Joint Action Agreement (JAA) related to those shares. Consequently, the Pampa Group, by itself, does
not concentrate more than 32% of the voting right capital of SQM S.A., and the Kowa Group does not concentrate by itself more
than 32% of the voting right capital of SQM S.A.
Likewise, the Joint
Action Agreement has not transformed the Pampa and Kowa Groups into related parties between them. The Joint Action Agreement has
only transformed the current controller of SQM S.A., composed of the Pampa Group, and the Kowa Group into related parties of SQM
S.A.
Detail of effective concentration
Tax ID No.
|
|
Name
|
|
Ownership
interest %
|
|
96.511.530-7
|
|
Sociedad de Inversiones Pampa Calichera S.A.
|
|
|
19.72
|
|
76.165.311-5
|
|
Potasios de Chile S.A.
|
|
|
6.91
|
|
96.863.960-9
|
|
Inversiones Global Mining (Chile) Ltda.
|
|
|
3.34
|
|
Total Pampa Group
|
|
|
|
|
29.97
|
|
|
|
|
|
|
|
|
79.798.650-k
|
|
Inversiones la Esperanza (Chile) Ltda.
|
|
|
1.43
|
|
59.046.730-8
|
|
Kowa Co Ltd.
|
|
|
0.30
|
|
96.518.570-4
|
|
Kochi S.A.
|
|
|
0.30
|
|
59.023.690-k
|
|
La Esperanza Delaware Corporation
|
|
|
0.09
|
|
Total Kowa Group
|
|
|
|
|
2.12
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.3
|
Detailed
identification of the link between the Parent and subsidiary
|
As of June 30,
2016 and December 31, 2015, the detail of entities that are related parties of the SQM S.A. Group is as follows:
Tax
ID No.
|
|
Name
|
|
Country
of origin
|
|
Functional
currency
|
|
Nature
|
Foreign
|
|
Nitratos Naturais Do Chile Ltda.
|
|
Brazil
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Nitrate Corporation Of Chile Ltd.
|
|
United Kingdom
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM North America Corp.
|
|
United States
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Europe N.V.
|
|
Belgium
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Soquimich S.R.L. Argentina
|
|
Argentina
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Soquimich European Holding B.V.
|
|
The Netherlands
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Corporation N.V.
|
|
The Netherlands
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQI Corporation N.V.
|
|
The Netherlands
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Comercial De México
S.A. de C.V.
|
|
Mexico
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
North American Trading Company
|
|
United States
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Administración y Servicios
Santiago S.A. de C.V.
|
|
Mexico
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Peru S.A.
|
|
Peru
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Ecuador S.A.
|
|
Ecuador
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Nitratos Mexico S.A. de C.V.
|
|
Mexico
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQMC Holding Corporation L.L.P.
|
|
United States
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Investment Corporation N.V.
|
|
The Netherlands
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Brasil Limitada
|
|
Brazil
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM France S.A.
|
|
France
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Japan Co. Ltd.
|
|
Japan
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Royal Seed Trading Corporation
A.V.V.
|
|
Aruba
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Oceania Pty Limited
|
|
Australia
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Rs Agro-Chemical Trading Corporation
A.V.V.
|
|
Aruba
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Indonesia S.A.
|
|
Indonesia
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Virginia L.L.C.
|
|
United States
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Italia SRL
|
|
Italy
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
Comercial Caiman Internacional
S.A.
|
|
Panamá
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Africa Pty. Ltd.
|
|
South Africa
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Lithium Specialties LLC
|
|
United States
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Iberian S.A.
|
|
Spain
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Agro India Pvt. Ltd.
|
|
India
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Beijing Commercial Co. Ltd.
|
|
China
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Thailand Limited
|
|
Thailand
|
|
US$
|
|
Subsidiary
|
Foreign
|
|
SQM Vitas Spain (2)
|
|
Spain
|
|
US$
|
|
Subsidiary
|
96.801.610-5
|
|
Comercial Hydro S.A.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
96.651.060-9
|
|
SQM Potasio S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
96.592.190-7
|
|
SQM Nitratos S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
96.592.180-K
|
|
Ajay SQM Chile S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.3
|
Detailed identification of
the link between the Parent and subsidiary, continued
|
As of June 30, 2016 and December 31,
2015, the detail of entities that are a related parties of the SQM S.A: Group is as follows:
Tax
ID No.
|
|
Name
|
|
Country
of
origin
|
|
Functional
currency
|
|
Nature
|
86.630.200-6
|
|
SQMC Internacional Ltda.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
79.947.100-0
|
|
SQM Industrial S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
79.906.120-1
|
|
Isapre Norte Grande Ltda.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
79.876.080-7
|
|
Almacenes y Depósitos Ltda.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
79.770.780-5
|
|
Servicios Integrales de Tránsitos
y Transferencias S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
79.768.170-9
|
|
Soquimich Comercial S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
79.626.800-K
|
|
SQM Salar S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
78.053.910-0
|
|
Proinsa Ltda.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
76.534.490-5
|
|
Sociedad Prestadora de Servicios
de Salud Cruz del Norte S.A.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
76.425.380-9
|
|
Exploraciones Mineras S.A.
|
|
Chile
|
|
US$
|
|
Subsidiary
|
76.064.419-6
|
|
Comercial Agrorama Ltda.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
76.145.229-0
|
|
Agrorama S.A.
|
|
Chile
|
|
Chilean peso
|
|
Subsidiary
|
76.359.919-1
|
|
Orcoma Estudios SPA
|
|
Chile
|
|
US$
|
|
Subsidiary
|
76.360.575-2
|
|
Orcoma SPA
|
|
Chile
|
|
US$
|
|
Subsidiary
|
77.557.430-5
|
|
Sales
de Magnesio Ltda.
|
|
Chile
|
|
Chilean
peso
|
|
Associate
|
Foreign
|
|
Abu
Dhabi Fertilizer Industries WWL
|
|
Arab
Emirates
|
|
Arab
Emirates dirham
|
|
Associate
|
Foreign
|
|
Doktor
Tarsa Tarim Sanayi AS
|
|
Turkey
|
|
Turkish
lira
|
|
Associate
|
Foreign
|
|
Ajay
North America
|
|
United
States
|
|
US$
|
|
Associate
|
Foreign
|
|
Ajay
Europe SARL
|
|
France
|
|
Euro
|
|
Associate
|
Foreign
|
|
SQM
Eastmed Turkey
|
|
Turkey
|
|
Euro
|
|
Associate
|
Foreign
|
|
Charlee
SQM Thailand Co. Ltd.
|
|
Thailand
|
|
Thai
baht
|
|
Associate
|
Foreign
|
|
Sichuan
SQM Migao Chemical Fertilizers Co Ltda.
|
|
China
|
|
US$
|
|
Joint venture
|
Foreign
|
|
Coromandel
SQM India
|
|
India
|
|
Indian
rupee
|
|
Joint venture
|
Foreign
|
|
SQM
Vitas Fzco.
|
|
Arab
Emirates
|
|
Arab
Emirates dirham
|
|
Joint venture
|
Foreign
|
|
SQM
Star Qingdao Corp Nutrition Co., Ltd.
|
|
China
|
|
US$
|
|
Joint venture
|
Foreign
|
|
SQM
Vitas Holland B.V
|
|
Dutch
Antilles
|
|
Euro
|
|
Joint venture
|
Foreign
|
|
Kowa
Company Ltd.
|
|
Japan
|
|
US$
|
|
Joint control
|
96.511.530-7
|
|
Sociedad
de Inversiones Pampa Calichera
|
|
Chile
|
|
US$
|
|
Joint control
|
96.529.340-k
|
|
Norte
Grande S.A.
|
|
Chile
|
|
Chilean
peso
|
|
Other related parties
|
79.049.778-9
|
|
Callegari
Agricola S.A.
|
|
Chile
|
|
Chilean
peso
|
|
Other related parties
|
Foreign
|
|
Coromandel
Internacional
|
|
India
|
|
Indian
rupee
|
|
Other related parties
|
Foreign
|
|
Vitas
Roullier SAS
|
|
France
|
|
Euro
|
|
Other related parties
|
Foreign
|
|
SQM
Vitas Brazil Agroindustria
|
|
Brazil
|
|
US$
|
|
Joint control or significant influence
|
Foreign
|
|
SQM
Vitas Peru S.A.C.
|
|
Peru
|
|
US$
|
|
Joint control or significant influence
|
Foreign
|
|
SQM
Vitas Plantacote B.V
|
|
Dutch
Antilles
|
|
Euro
|
|
Joint control or significant influence
|
Foreign
|
|
Minera
Exar S.A.
|
|
Argentina
|
|
US$
|
|
Joint venture
|
Foreign
|
|
SQM
Vitas Southern Africa Pty.(1)
|
|
South
Africa
|
|
US$
|
|
Joint control or significant influence
|
|
(1)
|
During June 2015, SQM Vitas Fzco.
sold the ownership it had in SQM Vitas Southern Africa Pty., generating a loss of ThUS$450.
|
|
(2)
|
During May 2016, SQM Vitas Holland
B.V. sold the interest it had in SQM Vitas Spain, to SQM Iberian S.A. resulting in the
latter obtaining 100% o9f the interest through such transaction, which generated a loss
of ThUS$ 104.
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.4
|
Detail
of related parties and related party transactions
|
Transactions between
the Parent and its subsidiaries are part of the Company's common transactions. Their conditions are those customary for this type
of transactions in respect of terms and market prices. In addition, these have been eliminated in consolidation and are not detailed
in this note.
Maturity terms
for each case vary by virtue of the transaction giving rise to them.
As of June 30,
2016 and December 31, 2015, there are no allowances for doubtful accounts related to balances pending of transactions with related
parties as there is no impairment in them.
As of June 30,
2016 and December 31, 2015, the detail of significant transactions with related parties is as follows:
Tax ID No.
|
|
Company
|
|
Nature
|
|
Country of
origin
|
|
Transaction
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Foreign
|
|
Doktor Tarsa Tarim Sanayi As
|
|
Associate
|
|
Turkey
|
|
Sale of products
|
|
|
11,619
|
|
|
|
17,842
|
|
Foreign
|
|
Ajay Europe S,A.R.L.
|
|
Associate
|
|
France
|
|
Sale of products
|
|
|
10,480
|
|
|
|
23,545
|
|
Foreign
|
|
Ajay Europe S.A.R.L.
|
|
Associate
|
|
France
|
|
Dividends
|
|
|
658
|
|
|
|
1,748
|
|
Foreign
|
|
Ajay North America LLC.
|
|
Associate
|
|
United States
|
|
Sale of products
|
|
|
7,821
|
|
|
|
15,618
|
|
Foreign
|
|
Ajay North America LLC.
|
|
Associate
|
|
United States
|
|
Dividends
|
|
|
1,303
|
|
|
|
5,185
|
|
Foreign
|
|
Abu Dhabi Fertilizer Industries WWL
|
|
Associate
|
|
United Arab Emirates
|
|
Sale of products
|
|
|
2,186
|
|
|
|
7,902
|
|
Foreign
|
|
Charlee SQM Thailand Co. Ltd.
|
|
Associate
|
|
Thailand
|
|
Sale of products
|
|
|
2,412
|
|
|
|
5,557
|
|
Foreign
|
|
Charlee SQM Thailand Co. Ltd.
|
|
Associate
|
|
Thailand
|
|
Dividends
|
|
|
-
|
|
|
|
296
|
|
77.557.430-5
|
|
Sales de Magnesio Ltda.
|
|
Associate
|
|
Chile
|
|
Sale of products
|
|
|
740
|
|
|
|
1,187
|
|
77.557.430-5
|
|
Sales de Magnesio Ltda.
|
|
Associate
|
|
Chile
|
|
Dividends
|
|
|
206
|
|
|
|
286
|
|
77.557.430-5
|
|
Sales de Magnesio Ltda.
|
|
Associate
|
|
Chile
|
|
Sale of services
|
|
|
-
|
|
|
|
34
|
|
Foreign
|
|
Kowa Company Ltd.
|
|
Other related parties
|
|
Japan
|
|
Sale of products
|
|
|
36,877
|
|
|
|
62,543
|
|
Foreign
|
|
Kowa Company Ltd.
|
|
Other related parties
|
|
Japan
|
|
Services received
|
|
|
(1,217
|
)
|
|
|
(933
|
)
|
Foreign
|
|
SQM Vitas Brasil Agroindustria
|
|
Joint control or significant influence
|
|
Brazil
|
|
Sale of products
|
|
|
8,410
|
|
|
|
32,019
|
|
Foreign
|
|
SQM Vitas Peru S.A.C.
|
|
Joint control or significant influence
|
|
Peru
|
|
Sale of products
|
|
|
11,707
|
|
|
|
34,586
|
|
Foreign
|
|
SQM Vitas Southern Africa Pty.
|
|
Joint control or significant influence
|
|
South Africa
|
|
Sale of products
|
|
|
-
|
|
|
|
2,187
|
|
Foreign
|
|
SQM Vitas Fzco.
|
|
Joint venture
|
|
United Arab Emirates
|
|
Sale of products
|
|
|
965
|
|
|
|
1,060
|
|
Foreign
|
|
Sichuan SQM Migao Chemical Fertilizers Co Ltda.
|
|
Joint venture
|
|
China
|
|
Sale of products
|
|
|
-
|
|
|
|
22,624
|
|
Foreign
|
|
Coromandel SQM India
|
|
Joint venture
|
|
India
|
|
Sale of products
|
|
|
2,977
|
|
|
|
4,012
|
|
Foreign
|
|
SQM Vitas Spain
|
|
Joint venture
|
|
Spain
|
|
Sale of products
|
|
|
6,956
|
|
|
|
8,587
|
|
Foreign
|
|
SQM Vitas Plantacote B.V.
|
|
Joint venture
|
|
Netherlands
|
|
Sale of products
|
|
|
-
|
|
|
|
27
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related party disclosures
(continued)
|
|
9.5
|
Trade
receivables due from related parties, current:
|
Tax ID N°
|
|
Company
|
|
Nature
|
|
Country of origin
|
|
Currency
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
77.557.430-5
|
|
Sales de Magnesio Ltda.
|
|
Associate
|
|
Chile
|
|
Ch$
|
|
|
743
|
|
|
|
377
|
|
Foreign
|
|
Charlee SQM Thailand Co. Ltd.
|
|
Associate
|
|
Thailand
|
|
US$
|
|
|
2,420
|
|
|
|
2,338
|
|
Foreign
|
|
Ajay Europe S.A.R.L.
|
|
Associate
|
|
France
|
|
Euro
|
|
|
4,100
|
|
|
|
3,031
|
|
Foreign
|
|
Ajay North America LLC.
|
|
Associate
|
|
United States
|
|
US$
|
|
|
2,755
|
|
|
|
2,538
|
|
Foreign
|
|
Abu Dhabi Fertilizer Industries WWL
|
|
Associate
|
|
United Arab Emirates
|
|
Arab Emirates dirham
|
|
|
779
|
|
|
|
772
|
|
Foreign
|
|
Doktor Tarsa Tarim Sanayi AS
|
|
Associate
|
|
Turkey
|
|
YTL
|
|
|
88
|
|
|
|
9,314
|
|
Foreign
|
|
Kowa Company Ltd.
|
|
Jointly controlled entity
|
|
Japan
|
|
US$
|
|
|
22,482
|
|
|
|
23,465
|
|
96.511.530-7
|
|
Soc.de Inversiones Pampa Calichera
|
|
Jointly controlled entity
|
|
Chile
|
|
US$
|
|
|
6
|
|
|
|
6
|
|
Foreign
|
|
SQM Vitas Brasil Agroindustria
|
|
Joint venture
|
|
Brazil
|
|
US$
|
|
|
9,379
|
|
|
|
19,156
|
|
Foreign
|
|
SQM Vitas Peru S.A.C.
|
|
Joint venture
|
|
Peru
|
|
US$
|
|
|
14,452
|
|
|
|
16,026
|
|
Foreign
|
|
Coromandel SQM India
|
|
Joint venture
|
|
India
|
|
Indian rupee
|
|
|
2,390
|
|
|
|
750
|
|
Foreign
|
|
Sichuan SQM Migao Chemical Fertilizers Co Ltda.
|
|
Joint venture
|
|
China
|
|
US$
|
|
|
17,043
|
|
|
|
21,464
|
|
79.049.778-9
|
|
Callegari Agrícola S.A.
|
|
Other related parties
|
|
Chile
|
|
Ch$
|
|
|
34
|
|
|
|
52
|
|
Foreign
|
|
SQM Vitas Fzco.
|
|
Joint venture
|
|
United Arab Emirates
|
|
Arab Emirates dirham
|
|
|
157
|
|
|
|
-
|
|
Foreign
|
|
SQM Vitas Spain
|
|
Joint venture
|
|
Spain
|
|
Euro
|
|
|
-
|
|
|
|
566
|
|
Foreign
|
|
SQM Vitas Plantacote B.V.
|
|
Joint venture
|
|
Holland
|
|
Euro
|
|
|
404
|
|
|
|
-
|
|
Foreign
|
|
SQM Star Qingdao Corp Nutrition Co., Ltd.
|
|
Joint venture
|
|
China
|
|
US$
|
|
|
45
|
|
|
|
52
|
|
Foreign
|
|
SQM Vitas Holland
|
|
Joint venture
|
|
Holland
|
|
Euro
|
|
|
50
|
|
|
|
-
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
77,327
|
|
|
|
99,907
|
|
|
9.6
|
Trade
payables due to related parties, current:
|
Tax ID
No.
|
|
Company.
|
|
Nature
|
|
Country of
origin
|
|
Currency
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
SQM Vitas Fzco.
|
|
Joint venture
|
|
Arab Emirates
|
|
Arab Emirates dirham
|
|
|
-
|
|
|
|
251
|
|
Foreign
|
|
SQM Vitas Plantacote B.V.
|
|
Joint venture
|
|
Holland
|
|
Euro
|
|
|
-
|
|
|
|
184
|
|
Total as of to-date
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
435
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.7
|
Board
of Directors and Senior Management
|
SQM S.A. is managed
by a Board of Directors which is composed of 8 regular directors, 2 of which are independent directors, who are elected for a
three-year period. The present Board of Directors was elected by the shareholders at the Ordinary Shareholders' Meeting of April
26, 2016.
As of June 30,
2016, the Company has the following Committees:
|
-
|
Directors’
Committee: composed of Hans Dieter Linneberg A. and Edward J. Waitzer, Julio Rebolledo
D. Such Committee performs the duties contained in Article 50 bis of Law No. 18.046,
the Chilean “Securities Act”.
|
|
-
|
Audit
Committee: composed of Hans Dieter Linneberg A. and Edward J. Waitzer, Julio Rebolledo
D.
|
|
-
|
Health,
Safety and Environmental Matters Committee: composed of Mrs. Joanne L. Boyes, Gonzalo
Guerrero Y. and Arnfinn F. Prugger.
|
|
-
|
Corporate
Governance Committee: composed of Edward J. Waitzer, Robert A. Kirkpatrick, and Hans
Dieter Linneberg A.
|
During the periods
covered by these financial statements, there are no pending balances receivable and payable between the Company, its directors
or members of Senior Management other than those related to remuneration, fee allowances and profit-sharing. In addition, there
were no transactions conducted between the Company, its directors or members of Senior Management.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.7
|
Board of Directors and Senior
Management, continued
|
|
2)
|
Directors’
Compensation
|
Directors’
compensation is detailed as follows:
|
a)
|
The payment
of a fixed, gross and monthly amount of three hundred Unidades de Fomento (inflation-adjusted
units) in favor the Chairman of the Board of Directors of SQM S.A. and of two hundred
Unidades de Fomento in favor of each of the remaining seven directors of SQM S.A. regardless
of the number of Meetings held or not held during the related month and for the periods
between May 1, 2016 and April 30, 2017.
|
|
b)
|
A payment
in domestic currency in favor of the Chairman of the Company’s Board of Directors
consisting of a variable and gross amount equivalent to 0.135% of profit for the period
effectively earned by the Company during fiscal year 2016.
|
|
c)
|
A payment
in domestic currency in favor of each Company’s directors excluding the Chairman
of the Board, consisting of a variable and gross amount equivalent to 0.06% of profit
for the period effectively earned by the Company during fiscal years 2016.
|
|
d)
|
The fixed
and variable amounts indicated above will not be subject to any challenge between them
and those expressed in percentages will be paid after the related General Shareholders’
Meeting of SQM S.A. approves the Balance Sheet, Financial Statements, Annual Report,
the Account Inspectors’ Report and Independent Auditor’s Report of SQM S.A.
for the commercial year ended December 31, 2016.
|
|
e)
|
The amounts
expressed in UF will be paid in accordance with the value determined by the Chilean Superintendence
of Banks and Financial Institutions (SBIF), the Central Bank of Chile (Banco Central
de Chile) or another relevant institution replacing them during the last day of the calendar
year applicable. The amounts reflected in or referred to in U.S. dollars will be converted
to Chilean pesos and paid in Chilean pesos in accordance with the exchange rate with
which the dividend declared for the commercial year 2016 is paid.
|
|
f)
|
Therefore,
the remunerations and profit sharing paid to members of the Board of Directors and Audit
Committee during 2016 amount to ThUS$1.943 (ThUS$ 2,769 as of December 31, 2015).
|
The remuneration of Directors Committee
is composed of:
|
a)
|
The payment
of a fixed, gross and monthly amount of three seventy-five Unidades de Fomento (inflation-adjusted
units) in favor the three Directors that are members of the Director’s Committee
regardless of the number of Meetings held or not held during the related month and for
the periods between May 1, 2016 and April 30, 2017.
|
|
b)
|
A payment
in domestic currency in favor of each of the three Directors consisting of a variable
and gross amount equivalent to 0.02% of profit for the period effectively earned by the
Company during fiscal year 2016 resulting after deducting the relevant amount for the
concept of the amortization of gain from bargain purchase and regardless of the number
of Meetings held or not held by the Directors’ Committee during such year.
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.7
|
Board of Directors and Senior
Management, continued
|
|
c)
|
The fixed
and variable amounts indicated above will not be subject to any challenge between them
and those expressed in percentages will be paid after the related General Shareholders’
Meeting of SQM S.A. approves the Balance Sheet, Financial Statements, Annual Report,
the Account Inspectors’ Report and Independent Auditor’s Report of SQM S.A.
for the commercial year ended December 31, 2016.
|
|
d)
|
The amounts
expressed in UF will be paid in accordance with the value determined by the Chilean Superintendence
of Banks and Financial Institutions (SBIF), the Central Bank of Chile (Banco Central
de Chile) or another relevant institution replacing them during the last day of the calendar
year applicable. The amounts reflected in or referred to in U.S. dollars will be converted
to Chilean pesos and paid in Chilean pesos in accordance with the exchange rate with
which the dividend declared for the commercial year 2016 is paid.
|
|
4)
|
Corporate Governance Committee,
Health, Safety and Environmental Matters Committee and other Company’s Committees
|
Remuneration of
such committees is composed of the payment of a fixed, gross, monthly amount of UF 50 for each director comprising such committees,
regardless of the number of meetings held or not held during the related month or year.
|
5)
|
No guarantees
have been constituted in favor of the directors.
|
|
6)
|
Senior
management compensation:
|
|
a)
|
As of June
30, 2016, the global compensation paid to the 104 main executives amounts to ThUS$12,157
and the global compensation paid to the 103 main executives as of December 31, 2015 amounted
to ThUS$19,355. This includes monthly fixed salary and variable performance bonuses.
|
|
b)
|
The Company
has a bonuses intermediate and biannual plan for compliance target and level of individual
contribution to the Company’s profit or loss. These benefits are structured in
a minimum and maximum of gross remunerations which are paid once a year or every two
years.
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 9
|
Related
party disclosures (continued)
|
|
9.7
|
Board of Directors and Senior
Management, continued
|
|
7)
|
Additionally,
the Company has retention bonuses for the Company’s executives. The amount of these
bonuses is linked to the price of the Company’s share and is payable in cash between
2012 and 2016 (see Note 16).
|
|
8)
|
No guarantees
have been constituted in favor of the Company’s management.
|
|
9)
|
The Company’s
Managers and Directors do not receive or have not received any benefit during the period
ended June 30, 2016 and the year ended December 31, 2015 or compensation for the concept
of pensions, life insurance, paid time off, profit sharing, incentives, or benefits due
to disability other than those mentioned in the preceding points.
|
|
9.8
|
Key management personnel compensation
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
Key management personnel compensation
|
|
|
12,157
|
|
|
|
19,355
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 10
|
Financial instruments
|
Financial instruments in accordance
with IAS 39 are detailed as follows:
|
10.1
|
Types
of other financial assets
|
Description of other financial assets
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
|
|
|
|
|
|
|
Other current financial assets (1)
|
|
|
221,421
|
|
|
|
617,267
|
|
Derivatives (2)
|
|
|
9,548
|
|
|
|
19,058
|
|
Hedging assets
|
|
|
653
|
|
|
|
-
|
|
Total other current financial assets
|
|
|
231,622
|
|
|
|
636,325
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets (3)
|
|
|
2,741
|
|
|
|
486
|
|
Total other non-current financial assets
|
|
|
2,741
|
|
|
|
486
|
|
|
(1)
|
Relates to term deposits with maturities
exceeding 90 days and less than 360 days from the investment date.
|
|
(2)
|
Relate to forwards and options that
were not classified as hedging instruments (see detail in Note 10.3).
|
|
(3)
|
The detail
of other financial assets, non-current is as follows:
|
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
|
|
|
|
|
|
|
Non-current investments not accounted for using the equity method of accounting
|
|
|
2,695
|
|
|
|
444
|
|
Other financial assets, non-current
|
|
|
46
|
|
|
|
42
|
|
Total other financial assets, non-current
|
|
|
2,741
|
|
|
|
486
|
|
Detail of other current financial
assets
Institution
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Banco Santander
|
|
|
52,294
|
|
|
|
175,433
|
|
Banco de Crédito e Inversiones
|
|
|
650
|
|
|
|
97,739
|
|
Banco de Chile
|
|
|
-
|
|
|
|
20,049
|
|
Corpbanca
|
|
|
81,644
|
|
|
|
122,951
|
|
Banco Itaú
|
|
|
81,463
|
|
|
|
80,830
|
|
Banco Security
|
|
|
-
|
|
|
|
24,861
|
|
Morgan Stanley
|
|
|
5,370
|
|
|
|
8,200
|
|
Scotiabank Sud Americano
|
|
|
-
|
|
|
|
78,180
|
|
HSBC Bank Chile
|
|
|
-
|
|
|
|
9,024
|
|
Total
|
|
|
221,421
|
|
|
|
617,267
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 10
|
Financial
instruments, (continued)
|
|
10.2
|
Trade
and other receivables
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$$
|
|
|
ThUS$
|
|
Trade receivables
|
|
|
281,048
|
|
|
|
-
|
|
|
|
281,048
|
|
|
|
279,590
|
|
|
|
-
|
|
|
|
279,590
|
|
Prepayments
|
|
|
15,730
|
|
|
|
-
|
|
|
|
15,730
|
|
|
|
9,155
|
|
|
|
-
|
|
|
|
9,155
|
|
Other receivables
|
|
|
10,425
|
|
|
|
1,250
|
|
|
|
11,675
|
|
|
|
13,480
|
|
|
|
1,050
|
|
|
|
14,530
|
|
Total trade and other receivables
|
|
|
307,203
|
|
|
|
1,250
|
|
|
|
308,453
|
|
|
|
302,225
|
|
|
|
1,050
|
|
|
|
303,275
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Assets
before
allowances
|
|
|
Allowance for
doubtful trade
receivables
|
|
|
Assets for trade
receivables, net
|
|
|
Assets before
allowances
|
|
|
Allowance for
doubtful trade
receivables
|
|
|
Assets for trade
receivables, net
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Receivables related to credit operations, current
|
|
|
296,254
|
|
|
|
(15,206
|
)
|
|
|
281,048
|
|
|
|
294,525
|
|
|
|
(14,935
|
)
|
|
|
279,590
|
|
Trade receivables, current
|
|
|
296,254
|
|
|
|
(15,206
|
)
|
|
|
281,048
|
|
|
|
294,525
|
|
|
|
(14,935
|
)
|
|
|
279,590
|
|
Prepayments, current
|
|
|
18,530
|
|
|
|
(2,800
|
)
|
|
|
15,730
|
|
|
|
11,955
|
|
|
|
(2,800
|
)
|
|
|
9,155
|
|
Other receivables, current
|
|
|
12,439
|
|
|
|
(2,014
|
)
|
|
|
10,425
|
|
|
|
15,476
|
|
|
|
(1,996
|
)
|
|
|
13,480
|
|
Current trade and other receivables
|
|
|
327,223
|
|
|
|
(20,020
|
)
|
|
|
307,203
|
|
|
|
321,956
|
|
|
|
(19,731
|
)
|
|
|
302,225
|
|
Other receivables, non-current
|
|
|
1,250
|
|
|
|
-
|
|
|
|
1,250
|
|
|
|
1,050
|
|
|
|
-
|
|
|
|
1,050
|
|
Non-current receivables
|
|
|
1,250
|
|
|
|
-
|
|
|
|
1,250
|
|
|
|
1,050
|
|
|
|
-
|
|
|
|
1,050
|
|
Total trade and other receivables
|
|
|
328,473
|
|
|
|
(20,020
|
)
|
|
|
308,453
|
|
|
|
323,006
|
|
|
|
(19,731
|
)
|
|
|
303,275
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments, (continued)
|
|
10.2
|
Trade and other receivables, continued
|
Portfolio stratification, continued
The Company’s policy is to require guarantees
(such as letters of credit, guarantee clauses and others) and/or maintaining insurance policies for certain accounts as deemed
necessary by management.
Unsecuritized portfolio
As of June 30, 2016 and December 31, 2015, the detail of the unsecuritized
portfolio is as follows:
06/30/2016
|
|
|
Not
overdue
|
|
|
1 - 30
days
|
|
|
31 - 60
days
|
|
|
61 - 90
days
|
|
|
91 - 120
days
|
|
|
121 - 150
days
|
|
|
151 - 180
days
|
|
|
181 - 210
days
|
|
|
211 - 250
days
|
|
|
Over 250
days
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Number of customers, portfolio under no renegotiated terms
|
|
|
3,556
|
|
|
|
1,359
|
|
|
|
1,024
|
|
|
|
858
|
|
|
|
766
|
|
|
|
280
|
|
|
|
277
|
|
|
|
241
|
|
|
|
264
|
|
|
|
1,907
|
|
|
|
10,532
|
|
Portfolio under no renegotiated terms
|
|
|
232,124
|
|
|
|
18,732
|
|
|
|
9,531
|
|
|
|
10,450
|
|
|
|
7,474
|
|
|
|
1,878
|
|
|
|
301
|
|
|
|
115
|
|
|
|
199
|
|
|
|
9,815
|
|
|
|
290,619
|
|
Number of customers under renegotiated terms portfolio
|
|
|
10
|
|
|
|
242
|
|
|
|
77
|
|
|
|
48
|
|
|
|
26
|
|
|
|
15
|
|
|
|
9
|
|
|
|
9
|
|
|
|
18
|
|
|
|
368
|
|
|
|
822
|
|
Portfolio under renegotiated terms, gross
|
|
|
174
|
|
|
|
1,463
|
|
|
|
795
|
|
|
|
222
|
|
|
|
132
|
|
|
|
68
|
|
|
|
57
|
|
|
|
5
|
|
|
|
96
|
|
|
|
2,623
|
|
|
|
5,635
|
|
Total gross portfolio
|
|
|
232,298
|
|
|
|
20,195
|
|
|
|
10,326
|
|
|
|
10,672
|
|
|
|
7,606
|
|
|
|
1,946
|
|
|
|
358
|
|
|
|
120
|
|
|
|
295
|
|
|
|
12,438
|
|
|
|
296,254
|
|
12/31/2015
|
|
|
Not
overdue
|
|
|
1 - 30
days
|
|
|
31 - 60
days
|
|
|
61 - 90
days
|
|
|
91 - 120
days
|
|
|
121 - 150
days
|
|
|
151 - 180
days
|
|
|
181 - 210
days
|
|
|
211 - 250
days
|
|
|
Over 250
days
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Number of customers, portfolio under no renegotiated
terms
|
|
|
3,653
|
|
|
|
698
|
|
|
|
388
|
|
|
|
2,617
|
|
|
|
565
|
|
|
|
241
|
|
|
|
253
|
|
|
|
667
|
|
|
|
311
|
|
|
|
1,836
|
|
|
|
11,229
|
|
Portfolio under no renegotiated terms
|
|
|
249,892
|
|
|
|
13,268
|
|
|
|
1,484
|
|
|
|
9,572
|
|
|
|
2,720
|
|
|
|
19
|
|
|
|
264
|
|
|
|
6,159
|
|
|
|
1,067
|
|
|
|
6,340
|
|
|
|
290,785
|
|
Number of customers under renegotiated terms portfolio
|
|
|
17
|
|
|
|
1
|
|
|
|
551
|
|
|
|
38
|
|
|
|
8
|
|
|
|
1
|
|
|
|
3
|
|
|
|
7
|
|
|
|
6
|
|
|
|
235
|
|
|
|
867
|
|
Portfolio under renegotiated terms, gross
|
|
|
540
|
|
|
|
10
|
|
|
|
625
|
|
|
|
13
|
|
|
|
170
|
|
|
|
15
|
|
|
|
259
|
|
|
|
35
|
|
|
|
293
|
|
|
|
1,780
|
|
|
|
3,740
|
|
Total gross portfolio
|
|
|
250,432
|
|
|
|
13,278
|
|
|
|
2,109
|
|
|
|
9,585
|
|
|
|
2,890
|
|
|
|
34
|
|
|
|
523
|
|
|
|
6,194
|
|
|
|
1,360
|
|
|
|
8,120
|
|
|
|
294,525
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments, (continued)
|
|
10.2
|
Trade and other receivables, continued
|
The detail of allowances is as follows:
Provision and write-offs
|
|
06/30/2016
MUS$
|
|
|
12/31/2015
MUS$
|
|
Allowance for portfolio under no renegotiated terms
|
|
|
17,584
|
|
|
|
18,980
|
|
Allowance for portfolio with renegotiated terms
|
|
|
2,442
|
|
|
|
2,356
|
|
Write-offs for the period
|
|
|
(6
|
)
|
|
|
(1,605
|
)
|
Total
|
|
|
20,020
|
|
|
|
19,731
|
|
Credit risk concentration
Credit risk concentration with respect to trade
receivables is reduced due to the great number of entities included in the Company’s client database and their distribution
throughout the world.
|
10.3
|
Hedging assets and liabilities
|
The balance represents derivative instruments
measured at fair value which have been classified as hedges from exchange and interest rate risks related to the total obligations
associated with bonds of the Company in Chilean pesos and UF (and the exchange risk in Chilean pesos of the Company’s investment
plans). As of June 30, 2016, the face value of cash flows in Cross Currency Swap contracts agreed upon in US dollars amounted to
ThUS$325,972 and as of December 31, 2015 such contracts amounted to ThUS$331,853.
Hedging assets with
underlying debt
|
|
Derivative
instruments
(Fwds)
|
|
|
Effect
on profit or
loss for the period
Derivative
instruments
|
|
|
Hedging reserve
in gross equity
|
|
|
Deferred tax
hedging
reserve in
equity
|
|
|
Hedging
reserve in
equity
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
June 30, 2016
|
|
|
653
|
|
|
|
706
|
|
|
|
(54
|
)
|
|
|
-
|
|
|
|
(54
|
)
|
Hedging liabilities
with underlying debt
|
|
Derivative
instruments
(CCS)
|
|
|
Effect
on profit or
loss for the period
Derivative
instruments
|
|
|
Hedging reserve
in gross equity
|
|
|
Deferred tax
hedging
reserve in
equity
|
|
|
Hedging
reserve in
equity
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
52,425
|
|
|
|
20,652
|
|
|
|
(1,816
|
)
|
|
|
510
|
|
|
|
(1,306
|
)
|
Hedging liabilities with
underlying
investments
|
|
Derivative
instruments
(CCS)
|
|
|
Effect on profit or
loss for the period
Derivative
instruments
|
|
|
Hedging reserve
in gross equity
|
|
|
Deferred tax
hedging
reserve in
equity
|
|
|
Hedging
reserve in
equity
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
June 30, 2016
|
|
|
3,009
|
|
|
|
(2,404
|
)
|
|
|
(606
|
)
|
|
|
701
|
|
|
|
95
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.3
|
Hedging assets and liabilities, continued
|
Hedging liabilities
|
|
Derivative
instruments
(CCS)
|
|
|
Effect
on profit or
loss for the period
Derivative
instruments
|
|
|
Hedging reserve
in gross equity
|
|
|
Deferred tax
hedging
reserve in
equity
|
|
|
Hedging
reserve in
equity
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
74,786
|
|
|
|
(29,245
|
)
|
|
|
86
|
|
|
|
96
|
|
|
|
182
|
|
The balances in the “effect on profit
or loss” column consider the interim effects of the contracts in force As of June 30, 2016 and December 31, 2015.
Derivative contract maturities are detailed
as follows:
Series
|
|
Contract amount
ThUS$
|
|
|
Currency
|
|
Maturity date
|
C
|
|
|
53,881
|
|
|
UF
|
|
12/01/2026
|
H
|
|
|
191,638
|
|
|
UF
|
|
01/05/2018
|
M
|
|
|
46,463
|
|
|
UF
|
|
02/01/2017
|
O
|
|
|
68,339
|
|
|
UF
|
|
02/01/2017
|
The Company uses cross currency swap derivative
instruments to hedge the possible financial risk associated with the volatility of the exchange rate associated with Chilean pesos
and UF. The objective is to hedge the exchange rate financial risks associated with bonds payable. Hedges are documented and tested
to measure their effectiveness.
Based on a comparison of critical terms, hedging
is highly effective, given that the hedged amount is consistent with obligations maintained for bonds denominated in Chilean pesos
and UF. Likewise, hedging contracts are denominated in the same currencies and have the same expiration dates of bond principal
and interest payments.
Hedge Accounting
The Company classifies derivative instruments
as hedging that may include derivative or embedded derivatives either as fair value hedge derivative instruments, cash flow hedge
derivative instruments, or hedge derivative instruments for net investment in a business abroad.
a) Fair value hedge
Changes in fair values of derivative instruments
classified as fair value hedge derivative instruments are accounted for in gains and losses immediately along with any change in
the fair value of the hedged item that is attributable to the risk being hedged.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.3
|
Hedging assets and liabilities, continued
|
The Company documents the relationship between
hedge instruments and the hedged item along with the objectives of its risk management and strategy to carry out different hedging
transactions. In addition, upon commencement of the period hedged and then on a quarterly basis the Company documents whether hedge
instruments have been efficient and met the objective of hedging market fluctuations for the purpose of which we use the effectiveness
test. A hedge instrument is deemed effective if the effectiveness test result is between 80% and 125%.
The hedge instruments are classified as effective
or not effective on the basis of the effectiveness test results. As of to date, hedges are classified as effective on the basis
of the effectiveness tests. This note includes the detail of fair values of derivatives classified as hedging instruments.
b) Cash flow hedges
Cash flow hedges cover exposure to the cash
flow variations attributable to a risk associated with a specific transaction that is very likely to be executed, that may have
material effects on the results of the Company.
|
10.4
|
Financial liabilities
|
Other current and non-current financial liabilities
As of June 30, 2016 and December 31, 2015, the detail is as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Bank borrowings
|
|
|
158,011
|
|
|
|
-
|
|
|
|
158,011
|
|
|
|
178,183
|
|
|
|
140,000
|
|
|
|
318,183
|
|
Obligations with the public
|
|
|
58,824
|
|
|
|
1,062,078
|
|
|
|
1,120,902
|
|
|
|
221,092
|
|
|
|
1,077,172
|
|
|
|
1,298,264
|
|
Derivatives
|
|
|
5,460
|
|
|
|
-
|
|
|
|
5,460
|
|
|
|
981
|
|
|
|
-
|
|
|
|
981
|
|
Hedging liabilities
|
|
|
20,404
|
|
|
|
35,142
|
|
|
|
55,546
|
|
|
|
1,774
|
|
|
|
73,031
|
|
|
|
74,805
|
|
Total
|
|
|
242,699
|
|
|
|
1,097,220
|
|
|
|
1,339,919
|
|
|
|
402,030
|
|
|
|
1,290,203
|
|
|
|
1,692,233
|
|
Current and non-current borrowings
As of June 30, 2016 and December 31, 2015, the detail is as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Long-term borrowings
|
|
|
-
|
|
|
|
140,000
|
|
Short-term borrowings
|
|
|
97,866
|
|
|
|
97,079
|
|
Current portion of long-term borrowings
|
|
|
60,145
|
|
|
|
81,104
|
|
Short-term loans and current portion of long-term borrowings
|
|
|
158,011
|
|
|
|
178,183
|
|
Total borrowings assumed
|
|
|
158,011
|
|
|
|
318,183
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
As of June 30, 2016 and December 31, 2015, the detail of this caption
is as follows:
Debtor
|
|
Creditor
|
|
Currency or
adjustment
|
|
|
|
Effective
|
|
|
Nominal
|
|
Tax ID No
|
|
Company
|
|
Country
|
|
Tax ID No.
|
|
Financial institution
|
|
Country
|
|
index
|
|
Repayment
|
|
Rate
|
|
|
rate
|
|
93.007.000-9
|
|
SQM.S.A.
|
|
Chile
|
|
97.018.000-1
|
|
Scotiabank Sud Americano
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.82
|
%
|
|
|
0.82
|
%
|
93.007.000-9
|
|
SQM.S.A.
|
|
Chile
|
|
97.030.000-7
|
|
Banco Estado
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
4.3
|
%
|
|
|
4.3
|
%
|
93.007.000-9
|
|
SQM.S.A.
|
|
Chile
|
|
97.018.000-1
|
|
Scotiabank Sud Americano
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.85
|
%
|
|
|
0.85
|
%
|
79.626.800-K
|
|
SQM Salar S.A.
|
|
Chile
|
|
97.018.000-1
|
|
Scotiabank Sud Americano
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.84
|
%
|
|
|
0.84
|
%
|
79.947.100-0
|
|
SQM Industrial S.A.
|
|
Chile
|
|
97.030.000-7
|
|
Banco Estado
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
1.20
|
%
|
|
|
1.20
|
%
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
Foreign
|
|
Bank of America
|
|
United States
|
|
US$
|
|
Upon maturity
|
|
|
0.74
|
%
|
|
|
1.80
|
%
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
Foreign
|
|
The Bank of Tokyo-Mitsubishi UFJ, Lda. (New York)
|
|
United States
|
|
US$
|
|
Upon maturity
|
|
|
1.64
|
%
|
|
|
1.54
|
%
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
Foreign
|
|
Export Development Canada
|
|
Canada
|
|
US$
|
|
Upon maturity
|
|
|
1.55
|
%
|
|
|
1.87
|
%
|
|
|
|
|
06/30/2016
|
|
|
06/30/2016
|
|
Debtor
|
|
Creditor
|
|
Nominal amounts
|
|
|
Current amounts
|
|
Company
|
|
Financial institution
|
|
Up
to 90
days
ThUS$
|
|
|
90
days to
1 year
ThUS$
|
|
|
Total
ThUS$
|
|
|
Up
to 90
days
ThUS$
|
|
|
90
days to
1 year
ThUS$
|
|
|
Subtotal
ThUS$
|
|
|
Borrowing
costs
ThUS$
|
|
|
Total ThUS$
|
|
SQM.S.A.
|
|
Scotiabank Sud Americano
|
|
|
20,000
|
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,020
|
|
|
|
-
|
|
|
|
20,020
|
|
|
|
-
|
|
|
|
20,020
|
|
SQM.S.A.
|
|
Banco Estado
|
|
|
-
|
|
|
|
20,662
|
|
|
|
20,662
|
|
|
|
-
|
|
|
|
20,721
|
|
|
|
20,721
|
|
|
|
-
|
|
|
|
20,721
|
|
SQM.S.A.
|
|
Scotiabank Sud Americano
|
|
|
17,000
|
|
|
|
-
|
|
|
|
17,000
|
|
|
|
17,012
|
|
|
|
-
|
|
|
|
17,012
|
|
|
|
-
|
|
|
|
17,012
|
|
SQM Salar S.A.
|
|
Scotiabank Sud Americano
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
24
|
|
|
|
20,000
|
|
|
|
20,024
|
|
|
|
-
|
|
|
|
20,024
|
|
SQM Industrial S.A.
|
|
Banco Estado
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
|
|
|
|
20,089
|
|
|
|
20,089
|
|
|
|
-
|
|
|
|
20,089
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Bank of America
|
|
|
-
|
|
|
|
40,000
|
|
|
|
40,000
|
|
|
|
-
|
|
|
|
40,170
|
|
|
|
40,170
|
|
|
|
(16
|
)
|
|
|
40,154
|
|
Royal Seed Trading Corporation A.V.V.
|
|
The Bank of Tokyo-Mitsubishi UFJ, Lda. (New York)
|
|
|
-
|
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
-
|
|
|
|
10,034
|
|
|
|
10,034
|
|
|
|
(19
|
)
|
|
|
10,015
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Export Development Canada
|
|
|
-
|
|
|
|
10,000
|
|
|
|
10,000
|
|
|
|
-
|
|
|
|
10,005
|
|
|
|
10,005
|
|
|
|
(29
|
)
|
|
|
9,976
|
|
Total
|
|
|
|
|
37,000
|
|
|
|
120,662
|
|
|
|
157,662
|
|
|
|
37,056
|
|
|
|
121,019
|
|
|
|
158,075
|
|
|
|
(64
|
)
|
|
|
158,011
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
Debtor
|
|
Creditor
|
|
Currency or
adjustment
|
|
|
|
Effective
|
|
|
Nominal
|
|
Tax ID No
|
|
Company
|
|
Country
|
|
Tax ID No.
|
|
Financial institution
|
|
Country
|
|
index
|
|
Repayment
|
|
Rate
|
|
|
rate
|
|
93.007.000-9
|
|
SQM.S.A.
|
|
Chile
|
|
97.018.000-1
|
|
Scotiabank Sud Americano
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.57
|
%
|
|
|
0.57
|
%
|
93.007.000-9
|
|
SQM.S.A.
|
|
Chile
|
|
97.030.000-7
|
|
Banco Estado
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.70
|
%
|
|
|
0.70
|
%
|
93.007.000-9
|
|
SQM.S.A.
|
|
Chile
|
|
97.018.000-1
|
|
Scotiabank Sud Americano
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
Foreign
|
|
Banco Estado NY Branch
|
|
United States
|
|
US$
|
|
Upon maturity
|
|
|
1.94
|
%
|
|
|
2.54
|
%
|
79.626.800-K
|
|
SQM Salar S.A.
|
|
Chile
|
|
97.018.000-1
|
|
Scotiabank Sud Americano
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.57
|
%
|
|
|
0.57
|
%
|
79.947.100-0
|
|
SQM Industrial S.A.
|
|
Chile
|
|
97.030.000-7
|
|
Banco Estado
|
|
Chile
|
|
US$
|
|
Upon maturity
|
|
|
0.44
|
%
|
|
|
0.44
|
%
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
Foreign
|
|
Bank of America
|
|
United States
|
|
US$
|
|
Upon maturity
|
|
|
1.43
|
%
|
|
|
1.30
|
%
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
Foreign
|
|
The Bank of Tokyo-Mitsubishi UFJ, Lda. (New York)
|
|
United States
|
|
US$
|
|
Upon maturity
|
|
|
1.18
|
%
|
|
|
1.05
|
%
|
Foreign
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Aruba
|
|
Foreign
|
|
Export Development Canada
|
|
Canada
|
|
US$
|
|
Upon maturity
|
|
|
1.75
|
%
|
|
|
1.39
|
%
|
|
|
12/31/2015
|
|
|
12/31/2015
|
|
Debtor
|
|
Creditor
|
|
Nominal amounts
|
|
|
Current amounts
|
|
Company
|
|
Financial institution
|
|
Up to 90
days
ThUS$
|
|
|
90 days to
1 year
ThUS$
|
|
|
Total
ThUS$
|
|
|
Up to 90
days
ThUS$
|
|
|
90 days to
1 year
ThUS$
|
|
|
Subtotal
ThUS$
|
|
|
Borrowing
costs
ThUS$
|
|
|
Total ThUS$
|
|
SQM.S.A.
|
|
Scotiabank Sud Americano
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
13
|
|
|
|
20,000
|
|
|
|
20,013
|
|
|
|
-
|
|
|
|
20,013
|
|
SQM.S.A.
|
|
Banco Estado
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
9
|
|
|
|
20,000
|
|
|
|
20,009
|
|
|
|
-
|
|
|
|
20,009
|
|
SQM.S.A.
|
|
Scotiabank Sud Americano
|
|
|
-
|
|
|
|
17,000
|
|
|
|
17,000
|
|
|
|
8
|
|
|
|
17,000
|
|
|
|
17,008
|
|
|
|
-
|
|
|
|
17,008
|
|
SQM S.A.
|
|
Banco Estado NY Branch
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,067
|
|
|
|
-
|
|
|
|
1,067
|
|
|
|
-
|
|
|
|
1,067
|
|
SQM Salar S.A.
|
|
Scotiabank Sud Americano
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
16
|
|
|
|
20,000
|
|
|
|
20,016
|
|
|
|
-
|
|
|
|
20,016
|
|
SQM Industrial S.A.
|
|
Banco Estado
|
|
|
20,000
|
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,032
|
|
|
|
-
|
|
|
|
20,032
|
|
|
|
-
|
|
|
|
20,032
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Bank of America
|
|
|
-
|
|
|
|
40,000
|
|
|
|
40,000
|
|
|
|
-
|
|
|
|
40,137
|
|
|
|
40,137
|
|
|
|
(49
|
)
|
|
|
40,088
|
|
Royal Seed Trading Corporation A.V.V.
|
|
The Bank of Tokyo-Mitsubishi UFJ, Lda. (New York)
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
-
|
|
|
|
20,052
|
|
|
|
20,052
|
|
|
|
(54
|
)
|
|
|
19,998
|
|
Royal Seed Trading Corporation A.V.V.
|
|
Export Development Canada
|
|
|
-
|
|
|
|
20,000
|
|
|
|
20,000
|
|
|
|
-
|
|
|
|
20,010
|
|
|
|
20,010
|
|
|
|
(58
|
)
|
|
|
19,952
|
|
Total
|
|
|
|
|
20,000
|
|
|
|
157,000
|
|
|
|
177,000
|
|
|
|
21,145
|
|
|
|
157,199
|
|
|
|
178,344
|
|
|
|
(161
|
)
|
|
|
178,183
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
|
b)
|
Unsecured obligations, current:
|
As of June 30, 2016 and December 31, 2015,
the detail of current unsecured interest-bearing obligations is composed of promissory notes and bonds, as follows:
Bonds
Debtor
|
|
Number of
registration or ID
of the instrument
|
|
Series
|
|
Maturity
date
|
|
Currency or
adjustment
index
|
|
Periodicity
|
|
Effective rate
|
|
|
Nominal
rate
|
|
Tax ID No.
|
|
Company
|
|
País
|
|
|
|
|
|
|
|
|
|
Payment of
interest
|
|
Repaymnet
|
|
|
|
|
|
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
4/21/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
5.94
|
%
|
|
|
5.50
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
7/28/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.62
|
%
|
|
|
4.38
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$300,000
|
|
4/3/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.95
|
%
|
|
|
3.63
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
446
|
|
C
|
|
6/1/2016
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
5.57
|
%
|
|
|
4.00
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
564
|
|
H
|
|
7/5/2016
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
5.22
|
%
|
|
|
4.90
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
700
|
|
M
|
|
8/1/2016
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.83
|
%
|
|
|
3.30
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
699
|
|
O
|
|
8/1/2016
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.97
|
%
|
|
|
3.80
|
%
|
|
|
|
|
06/30/2016
|
|
|
06/30/2016
|
|
|
|
|
|
Nominal maturities
|
|
|
Current maturities
|
|
Company
|
|
Country
|
|
Series
|
|
Up to 90
days
|
|
|
91 days to 1
year
|
|
|
Total
|
|
|
Up to 90
days
|
|
|
91 days to 1
year
|
|
|
Subtotal
|
|
|
Bond
issuance
costs
|
|
|
Total
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$250,000
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.635
|
|
|
|
2,635
|
|
|
|
(386
|
)
|
|
|
2,249
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$250,000
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,618
|
|
|
|
4,618
|
|
|
|
(433
|
)
|
|
|
4,185
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$300,000
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,628
|
|
|
|
2,628
|
|
|
|
(615
|
)
|
|
|
2,013
|
|
SQM S,A,
|
|
Chile
|
|
C
|
|
|
-
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
-
|
|
|
|
6,107
|
|
|
|
6,107
|
|
|
|
-
|
|
|
|
6,107
|
|
SQM S,A,
|
|
Chile
|
|
H
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,708
|
|
|
|
-
|
|
|
|
3,708
|
|
|
|
(139
|
)
|
|
|
3,569
|
|
SQM S,A,
|
|
Chile
|
|
M
|
|
|
-
|
|
|
|
38,537
|
|
|
|
38,537
|
|
|
|
534
|
|
|
|
39,391
|
|
|
|
39,925
|
|
|
|
(79
|
)
|
|
|
39,846
|
|
SQM S,A,
|
|
Chile
|
|
O
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
921
|
|
|
|
-
|
|
|
|
921
|
|
|
|
(66
|
)
|
|
|
855
|
|
Total
|
|
|
|
|
|
|
-
|
|
|
|
44,446
|
|
|
|
44,446
|
|
|
|
5,163
|
|
|
|
55,379
|
|
|
|
60,542
|
|
|
|
(1,718
|
)
|
|
|
58,824
|
|
Effective rates of bonds in Chilean pesos and UF are expressed and
calculated in U.S. dollars based on the flows agreed in Cross Currency Swap Agreements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
Debtor
|
|
Number of
registration or ID
of the instrument
|
|
Series
|
|
Maturity
date
|
|
Currency or
adjustment
index
|
|
Periodicity
|
|
Effective rate
|
|
|
Nominal
rate
|
|
Tax ID No.
|
|
Company
|
|
País
|
|
|
|
|
|
|
|
|
|
Payment of
interest
|
|
Repayment
|
|
|
|
|
|
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$200,000
|
|
4/15/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
9.19
|
%
|
|
|
6.13
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
4/21/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
5.89
|
%
|
|
|
5.50
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
1/28/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.61
|
%
|
|
|
4.38
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$300,000
|
|
4/3/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.93
|
%
|
|
|
3.63
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
446
|
|
C
|
|
6/1/2016
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
6.52
|
%
|
|
|
4.00
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
564
|
|
H
|
|
1/5/2016
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
5.20
|
%
|
|
|
4.90
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
700
|
|
M
|
|
2/1/2016
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.32
|
%
|
|
|
3.30
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
699
|
|
O
|
|
2/1/2016
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.97
|
%
|
|
|
3.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2015
|
|
|
12/31/2015
|
|
|
|
|
|
Nominal maturities
|
|
|
Current maturities
|
|
Company
|
|
Country
|
|
Series
|
|
Up to 90
days
|
|
|
91 days to 1
year
|
|
|
Total
|
|
|
Up to 90
days
|
|
|
91 days to 1
year
|
|
|
Subtotal
|
|
|
Bond
issuance
costs
|
|
|
Total
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$200,000
|
|
|
-
|
|
|
|
200,000
|
|
|
|
200,000
|
|
|
|
-
|
|
|
|
202,586
|
|
|
|
202,586
|
|
|
|
(73
|
)
|
|
|
202,513
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$250,000
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,674
|
|
|
|
2,674
|
|
|
|
(386
|
)
|
|
|
2,288
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$250,000
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,648
|
|
|
|
-
|
|
|
|
4,648
|
|
|
|
(433
|
)
|
|
|
4,215
|
|
SQM S,A,
|
|
Chile
|
|
ThUS$300,000
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,658
|
|
|
|
2,658
|
|
|
|
(614
|
)
|
|
|
2,044
|
|
SQM S,A,
|
|
Chile
|
|
C
|
|
|
-
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
-
|
|
|
|
5,610
|
|
|
|
5,610
|
|
|
|
-
|
|
|
|
5,610
|
|
SQM S,A,
|
|
Chile
|
|
H
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,417
|
|
|
|
-
|
|
|
|
3,417
|
|
|
|
(139
|
)
|
|
|
3,278
|
|
SQM S,A,
|
|
Chile
|
|
M
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
492
|
|
|
|
-
|
|
|
|
492
|
|
|
|
(130
|
)
|
|
|
362
|
|
SQM S,A,
|
|
Chile
|
|
O
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
849
|
|
|
|
-
|
|
|
|
849
|
|
|
|
(67
|
)
|
|
|
782
|
|
Total
|
|
|
|
|
|
|
-
|
|
|
|
205,413
|
|
|
|
205,413
|
|
|
|
9,406
|
|
|
|
213,528
|
|
|
|
222,934
|
|
|
|
(1,842
|
)
|
|
|
221,092
|
|
Effective rates of bonds in Chilean pesos and UF are expressed and
calculated in U.S. dollars based on the flows agreed in Cross Currency Swap Agreements.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
|
c)
|
Types of interest-bearing borrowings, non-current
|
Non-current interest-bearing borrowings as
of June 30, 2016 and December 31, 2015 are detailed as follows:
Debtor
|
|
Creditor
|
|
Currency or
adjustment
|
|
Repayment
|
|
Effective
rate
|
|
|
Nominal
rate
|
|
Tax ID No.
|
|
Company
|
|
Country
|
|
Tax ID No.
|
|
Financial institution
|
|
Country
|
|
index
|
|
|
|
|
|
|
|
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
Foreign
|
|
Banco Estado NY Branch
|
|
United States
|
|
US$
|
|
Upon maturity
|
|
|
1.94
|
%
|
|
|
2.54
|
%
|
|
|
|
|
Nominal non-current maturities
|
|
|
Non-current maturities
|
|
|
|
|
|
12/31/2015
|
|
|
12/31/2015
|
|
Company
|
|
Financial institution
|
|
Over
1
years
to
2
|
|
|
Over
2
years
to
3
|
|
|
Over
3
years
to
4
|
|
|
Total
|
|
|
Over
1
years
to
2
|
|
|
Over
2
years
to
3
|
|
|
Over
3
years
to
4
|
|
|
Subtotal
|
|
|
Borrowings
costs
|
|
|
Total
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
SQM S.A.
|
|
Banco Estado NY Branch
|
|
|
140,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140,000
|
|
|
|
140,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140,000
|
|
|
|
-
|
|
|
|
140,000
|
|
Total
|
|
|
|
|
140,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140,000
|
|
|
|
140,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
140,000
|
|
|
|
-
|
|
|
|
140,000
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
|
d)
|
Non-current unsecured interest-bearing bonds
|
The breakdown of non-current unsecured interest-bearing
bonds as of June 30, 2016 and December 31, 2015 is detailed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Periodicity
|
|
|
|
|
|
|
Tax ID No.
|
|
Company
|
|
Country
|
|
Number of
registration or ID
of the instrument
|
|
Series
|
|
Maturity date
|
|
Currency or
adjustment index
|
|
Payment of
interest
|
|
Repayment
|
|
Effective
rate
|
|
|
Nominal
rate
|
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
04/21/2020
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
5.94
|
%
|
|
|
5.50
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
01/28/2025
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.62
|
%
|
|
|
4.38
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$300,000
|
|
04/03/2023
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.95
|
%
|
|
|
3.63
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
446
|
|
C
|
|
12/01/2026
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
5.57
|
%
|
|
|
4.00
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
564
|
|
H
|
|
01/05/2030
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
5.22
|
%
|
|
|
4.90
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
699
|
|
O
|
|
02/01/2033
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.97
|
%
|
|
|
3.80
|
%
|
Nominal non-current maturities
06/30/2016
|
|
Non-current maturities
06/30/2016
|
|
Series
|
|
Over 1
year to 2
|
|
|
Over 2
years to 3
|
|
|
Over 3
Years to 4
|
|
|
Over 4
Years to 5
|
|
|
Over 5
years
|
|
|
Total
|
|
|
Over 1
year to 2
|
|
|
Over 2
years to 3
|
|
|
Over 3
Years to 4
|
|
|
Over 4
Years to 5
|
|
|
Over 5
years
|
|
|
Subtotal
|
|
|
Bond
issuance
costs
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
MMUS$250
|
|
|
-
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
(1,096
|
)
|
|
|
248,904
|
|
MMUS$250
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
250,000
|
|
|
|
(3,286
|
)
|
|
|
246,714
|
|
MMUS$300
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
300,000
|
|
|
|
300,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
300,000
|
|
|
|
300,000
|
|
|
|
(3,537
|
)
|
|
|
296,463
|
|
C
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
32,496
|
|
|
|
56,132
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
32,496
|
|
|
|
56,132
|
|
|
|
-
|
|
|
|
56,132
|
|
H
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
157,564
|
|
|
|
157,564
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
157,564
|
|
|
|
157,564
|
|
|
|
(1,740
|
)
|
|
|
155,824
|
|
O
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
59,087
|
|
|
|
59,087
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
59,087
|
|
|
|
59,087
|
|
|
|
(1,046
|
)
|
|
|
58,041
|
|
Total
|
|
|
5,909
|
|
|
|
255,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
799,147
|
|
|
|
1,072,783
|
|
|
|
5,909
|
|
|
|
255,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
799,147
|
|
|
|
1,072,783
|
|
|
|
(10,705
|
)
|
|
|
1,062,078
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
|
d)
|
Non-current unsecured interest-bearing bonds, continued
|
As of June 30, 2016 and December 31, 2015,
the breakdown of unsecured interest-bearing liabilities, non-current is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Periodicity
|
|
|
|
|
|
|
Tax ID No.
|
|
Company
|
|
Country
|
|
Number of
registration or ID
of the instrument
|
|
Series
|
|
Maturity date
|
|
Currency or
adjustment index
|
|
Payment of
interest
|
|
Repayment
|
|
Effective
rate
|
|
|
Nominal
rate
|
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$200,000
|
|
04/15/2016
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
9.19
|
%
|
|
|
6.13
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
04/21/2020
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
5.89
|
%
|
|
|
5.50
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$250,000
|
|
01/28/2025
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.61
|
%
|
|
|
4.38
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
-
|
|
ThUS$300,000
|
|
04/03/2023
|
|
US$
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.93
|
%
|
|
|
3.63
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
446
|
|
C
|
|
12/01/2026
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
6.53
|
%
|
|
|
4.00
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
564
|
|
H
|
|
01/05/2030
|
|
UF
|
|
Semiannual
|
|
Semiannual
|
|
|
5.20
|
%
|
|
|
4.90
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
700
|
|
M
|
|
02/01/2017
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
4.32
|
%
|
|
|
3.30
|
%
|
93.007.000-9
|
|
SQM S.A.
|
|
Chile
|
|
699
|
|
O
|
|
02/01/2033
|
|
UF
|
|
Semiannual
|
|
Upon maturity
|
|
|
3.97
|
%
|
|
|
3.80
|
%
|
Nominal
non-current maturities
12/31/2015
|
|
Non-current
maturities
12/31/2015
|
|
Series
|
|
Over 1
year to 2
|
|
|
Over 2
years to 3
|
|
|
Over 3
Years to 4
|
|
|
Over 4
Years to 5
|
|
|
Over 5
years
|
|
|
Total
|
|
|
Over 1
year to 2
|
|
|
Over 2
years to 3
|
|
|
Over 3
Years to 4
|
|
|
Over 4
Years to 5
|
|
|
Over 5
years
|
|
|
Subtotal
|
|
|
Bond
issuance
costs
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
MMUS$250
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
(1,290
|
)
|
|
|
248,710
|
|
MMUS$250
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
250,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
250,000
|
|
|
|
250,000
|
|
|
|
(3,502
|
)
|
|
|
246,498
|
|
MMUS$300
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
300,000
|
|
|
|
300,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
300,000
|
|
|
|
300,000
|
|
|
|
(3,843
|
)
|
|
|
296,157
|
|
C
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
32,482
|
|
|
|
54,134
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
32,482
|
|
|
|
54,134
|
|
|
|
-
|
|
|
|
54,134
|
|
H
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
144,357
|
|
|
|
144,357
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
144,357
|
|
|
|
144,357
|
|
|
|
(1,810
|
)
|
|
|
142,547
|
|
M
|
|
|
36,089
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
36,089
|
|
|
|
36,089
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
36,089
|
|
|
|
(17
|
)
|
|
|
36,072
|
|
O
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
54,134
|
|
|
|
54,134
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
54,134
|
|
|
|
54,134
|
|
|
|
(1,080
|
)
|
|
|
53,054
|
|
Total
|
|
|
41,502
|
|
|
|
5,413
|
|
|
|
255,413
|
|
|
|
5,413
|
|
|
|
780,973
|
|
|
|
1,088,714
|
|
|
|
41,502
|
|
|
|
5,413
|
|
|
|
255,413
|
|
|
|
5,413
|
|
|
|
780,973
|
|
|
|
1,088,714
|
|
|
|
(11,542
|
)
|
|
|
1,077,172
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
|
e)
|
Additional information
|
Bonds
On the 30 of June 2016 and the 31st of December
2015, short term bonds of MUS$58,824 and MUS$221,092 respectively were classified as short-term, consisting of the current portion
due plus accrued interest to date, excluding bond issue costs. The non-current portion consisted of MUS$1,062,078 on the 30 of
June 2016 and MUS$1,077,172 on the 31
st
December 2015, corresponding to the issuance of series C bonds, Single series
bonds (ThUS$200), series H bonds second issue single series bonds (ThUS$250), series M bonds, series O bonds, third issue single
series bonds (ThUS$300) and fourth issue single series bonds (ThUS$250) excluding debt issue costs.
As of June 30, 2016 and December 31, 2015,
the details of each issuance are as follows:
Series “C” bonds
On January 24, 2006, the Company placed Series
C bonds for UF 3,000,000 (ThUS$101,918) at an annual rate of 4.00%.
As of June 30, 2016 and December 31, 2015,
the Company has made the following payments with a charge to the Series C bonds:
Payments made
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
MUS$
|
|
|
MUS$
|
|
Principal payment
|
|
|
2,826
|
|
|
|
5,729
|
|
Interest payment
|
|
|
1,676
|
|
|
|
3,570
|
|
Single series first issue ThUS$200,000
On April 5, 2006, the Company placed Single
Series bonds for ThUS$200,000 at an annual rate of 6.125% under "Rule 144 and regulation S of the U.S. Securities Act of 1933."
As of June 30, 2016 and December 31, 2015,
the Company has made the following payments with a charge to the Single series bonds:
Payments made
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Payments of principal owed
|
|
|
200,000
|
|
|
|
-
|
|
Payments of interest
|
|
|
6,125
|
|
|
|
12,250
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
Series “G” and “H”
bonds
On January 13, 2009, the Company placed two
bond series in the domestic market. Series H for UF 4,000,000 (ThUS$139,216) at an annual interest rate of 4.9% at a term of 21
years with payment of principal beginning in 2019 and Series G for ThCh$ 21,000,000 (ThUS$34,146), which was placed at a term of
5 years with a single payment at the maturity of the term and an annual interest rate of 7%.
As of June 30, 2016 and December 31, 2015,
the Company has made the following payments with a charge to the Series G and H bonds:
Payments made
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Payments of interest, Series H bonds
|
|
|
3,461
|
|
|
|
7,696
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
Single series bonds, second issue ThUS$250,000
On April 21, 2010, the Company informed the
Chilean Superintendence of Securities and Insurance of its placement in international markets of an unsecured bond of ThUS$250,000
with a maturity of 10 years beginning on the aforementioned date with an annual interest rate of 5.5% and destined to refinance
long-term liabilities.
As of June 30, 2016 and December 31, 2015,
the detail of payments charged to the line of single series bonds, second issue is as follows:
Payments made
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Interest payment
|
|
|
6,875
|
|
|
|
13,750
|
|
Series “M” and “O” bonds
On April 4, 2012, the Company placed two bond
series in the domestic market. Series M for UF 1,000,000 (ThUS$46,601) was placed at a term of 5 years with a single payment at
the maturity of the term and an annual interest rate of 3.3%, and Series O for UF 1,500,000 (ThUS$69,901) was placed at a term
of 21 years with a single payment at the maturity of the term and an annual interest rate of 3.80%
As of June 30, 2016, and December 31, 2015
the Company has made the following payments with a charge to the Series M and O bonds:
Payments made
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Payment of interest, Series M bonds
|
|
|
590
|
|
|
|
1,248
|
|
Payment of interest, Series O bonds
|
|
|
1,019
|
|
|
|
2,153
|
|
Single series bonds, third issue ThUS$300,000
On April 3, 2013 in the United States, the Company issued a non-guaranteed
bond with a value of US$ 300 million. The bond is for a 10 year term with an annual coupon rate of 3.625% and an annual yield of
3.716%. This rate equates to a difference of 180 basis points to comparable US Treasury bonds. The funds raised will be used to
refinance long term liabilities and finance general corporate objectives.
As of June 30, 2016 and December 31, 2015,
the following payments have been made with a debit to the line of single-series bonds, third issue:
Payments made
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Payment of interest
|
|
|
5,438
|
|
|
|
10,875
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.4
|
Financial liabilities, continued
|
Single series bonds, fourth issuance ThUS$ 250
On October 23, 2014, the Company informed the
Chilean Superintendence of Securities and Insurance that Sociedad Química y Minera de Chile S.A. agreed to issue and place
unsecured bonds of ThUS$ 250,000 in international markets. This, essentially, maturing in 2025 with a cover annual interest rate
of 4.375% equivalent to a spread of 215 basis points on comparable US Treasury bonds, which were offered to the investors at a
price of 99.410% with respect to capital. The aforementioned agreement was agreed on October 23, 2014 and the issuance and placement
of such bonds was performed in conformity with the provisions of Rule 144A of the US Securities Act of 1933 and these bonds will
not be publicly offered in Chile.
As of June 30, 2016 and December 31, 2015,
the following payments have been made.
Payments made
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Payment of interest
|
|
|
5,469
|
|
|
|
8,203
|
|
|
10.5
|
Trade and other payables
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Current
|
|
|
Non-
current
|
|
|
Total
|
|
|
Current
|
|
|
Non-
current
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Accounts payable
|
|
|
128,962
|
|
|
|
-
|
|
|
|
128,962
|
|
|
|
136,668
|
|
|
|
-
|
|
|
|
136,668
|
|
Other accounts payable
|
|
|
270
|
|
|
|
-
|
|
|
|
270
|
|
|
|
172
|
|
|
|
-
|
|
|
|
172
|
|
Total
|
|
|
129,232
|
|
|
|
-
|
|
|
|
129,232
|
|
|
|
136,840
|
|
|
|
-
|
|
|
|
136,840
|
|
Purchase commitments held by the Company are
recognized as liabilities when the goods and services are received by the Company. As of June 30, 2016, the Company has purchase
orders amounting to ThUS$28,022 (ThUS$15,888 as of December 31, 2015).
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.6
|
Financial liabilities at fair value through profit or loss
|
This balance relates to derivative instruments
measured at their fair value, which has generated balances against the Company. The detail of this type of instrument is as follows:
Financial liabilities at fair value
through profit or loss
|
|
06/30/2016
ThUS$
|
|
|
Effect on profit
or loss as of
06/30/2016
|
|
|
12/31/2015
ThUS$
|
|
|
Effect on profit
or loss as of
12/31/2015
|
|
|
|
|
|
|
ThUS$
|
|
|
|
|
|
ThUS$
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments (IRS)
|
|
|
113
|
|
|
|
(168
|
)
|
|
|
283
|
|
|
|
(242
|
)
|
|
|
|
113
|
|
|
|
(168
|
)
|
|
|
283
|
|
|
|
(242
|
)
|
Balances in the column effect on profit or
loss consider the effects of agreements which were in force as of June 30, 2016, including derivatives, received during the year.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.7
|
Financial asset and liability categories
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
Description of financial assets
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets measured at amortized cost
|
|
|
221,421
|
|
|
|
-
|
|
|
|
221,421
|
|
|
|
617,267
|
|
|
|
-
|
|
|
|
617,267
|
|
Investments held-to-maturity measured at amortized cost
|
|
|
-
|
|
|
|
2,741
|
|
|
|
2,741
|
|
|
|
-
|
|
|
|
486
|
|
|
|
486
|
|
Loans and receivables measured at amortized cost
|
|
|
307,203
|
|
|
|
1,250
|
|
|
|
308,453
|
|
|
|
302,225
|
|
|
|
1,050
|
|
|
|
303,275
|
|
Total financial assets measured at amortized cost
|
|
|
528,624
|
|
|
|
3,991
|
|
|
|
532,615
|
|
|
|
919,492
|
|
|
|
1,536
|
|
|
|
921,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
|
10,201
|
|
|
|
-
|
|
|
|
10,201
|
|
|
|
19,058
|
|
|
|
-
|
|
|
|
19,058
|
|
Total financial assets at fair value
|
|
|
10,201
|
|
|
|
-
|
|
|
|
10,201
|
|
|
|
19,058
|
|
|
|
-
|
|
|
|
19,058
|
|
Total financial assets
|
|
|
538,825
|
|
|
|
3,991
|
|
|
|
542,816
|
|
|
|
938,550
|
|
|
|
1,536
|
|
|
|
940,086
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.7
|
Financial asset and liability categories (continued)
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
Description of financial liabilities
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
Amount
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
|
25,864
|
|
|
|
35,142
|
|
|
|
61,006
|
|
|
|
2,755
|
|
|
|
73,031
|
|
|
|
75,786
|
|
Financial liabilities at fair value through profit or loss
|
|
|
25,864
|
|
|
|
35,142
|
|
|
|
61,006
|
|
|
|
2,755
|
|
|
|
73,031
|
|
|
|
75,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortized cost
|
|
|
344,525
|
|
|
|
1,062,207
|
|
|
|
1,406,732
|
|
|
|
536,115
|
|
|
|
1,217,172
|
|
|
|
1,753,287
|
|
Total financial liabilities measured at amortized cost
|
|
|
344,525
|
|
|
|
1,062,207
|
|
|
|
1,406,732
|
|
|
|
536,115
|
|
|
|
1,217,172
|
|
|
|
1,753,287
|
|
Total financial liabilities
|
|
|
370,389
|
|
|
|
1,097,349
|
|
|
|
1,467,738
|
|
|
|
538,870
|
|
|
|
1,290,203
|
|
|
|
1,829,073
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.8
|
Fair value measurement of assets and liabilities
|
Financial assets and liabilities measured at
fair value consist of Options and Forwards hedging the mismatch in the balance sheet and cash flows, Cross Currency Swaps (CCS)
to hedge bonds issued in local currency ($/UF), and Interest Rate Swaps (IRS) to hedge LIBOR rate debt issued.
The value of the Company’s assets and
liabilities recognized by CCS contracts is calculated as the difference between the present value of discounted cash flows of the
asset (pesos/UF) and liability (US$) parts of the derivative. In the case of the IRS, the asset value recognized is calculated
as the difference between the discounted cash flows of the asset (variable rate) and liability (fixed rate) parts of the derivative.
Forwards: Are calculated as the difference between the strike price of the contract and the spot price plus the forwards points
at the date of the contract. Options: The value recognized is calculated using the Black-Scholes method.
In the case of CCS, the entry data used for
the valuation models are UF, peso, and basis swap rates. In the case of fair value calculations for IRS, the FRA (Forward Rate
Agreement) rate and ICVS 23 Curve (Bloomberg: cash/deposits rates, futures, swaps). In the case of forwards, the forwards curve
for the currency in question is used. Finally, with options, the spot price, risk-free rate and volatility of exchange rate are
used, all in accordance with the currencies used in each valuation. The financial information used as entry data for the Company’s
valuation models is obtained from Bloomberg, the well-known financial software company. Conversely, the fair value provided by
the counterparties of derivatives contracts is used only as a control and not for valuation.
The effects on profit or loss of movements
in these amounts may be recognized in the caption Finance costs, foreign currency translation gain (loss) or cash flow hedges in
the statement of comprehensive income, depending on each particular case.
The fair value measurement of debt is only
performed to determine the present market value of secured and unsecured long-term obligations; bonds denominated in local currency
(Ch$/UF) and foreign currency (US$), credits denominated in foreign currency (US$), which is classified under Level 2 in the fair
value hierarchy established by IFRS.
The value of the Company’s reported liabilities
is calculated as the present value of discounted cash flows at market rates at the time of valuation, taking into account the maturity
date and exchange rate. The entry data used for the model includes the UF and peso rates, which are obtained using Bloomberg, the
well-known financial software company and the ‘Asociación de Bancos e Instituciones Financieras’ (ABIF) (Association
of Banks and Financial Institutions’).
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.9
|
Financial assets pledged as guarantee
|
On November 4, 2004, Isapre Norte Grande maintains
a guarantee equivalent to the total amount owed to its members and healthcare providers, which is managed and maintained by Banco
de Chile.
As of June 30, 2016 and December 31, 2015,
assets pledged as guarantees are as follows:
Restricted cash
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Isapre Norte Grande Ltda.
|
|
|
678
|
|
|
|
496
|
|
Total
|
|
|
678
|
|
|
|
496
|
|
|
10.10
|
Estimated fair value of financial instruments and financial derivatives
|
As required by IFRS 7, the following information
is presented for the disclosure of the estimated fair value of financial assets and liabilities.
Although inputs represent Management's best
estimate, they are subjective and involve significant estimates related to the current economic and market conditions, as well
as risk features.
Methodologies and assumptions used depend on
the risk terms and characteristics of instruments and include the following as a summary:
|
-
|
Cash equivalent approximates fair value due to the short-term maturities of these instruments.
|
|
-
|
The fair value of trade receivables, current is considered to be equal to the carrying amount due
to the maturity of such accounts at short-term.
|
|
-
|
Other current financial liabilities are considered at fair value equal to their carrying values.
|
|
-
|
For interest-bearing liabilities with original maturity of more than a year, fair values are calculated
at discounting contractual cash flows at their original current market with similar terms.
|
|
-
|
The fair value of debt is considered in Level 2.
|
|
-
|
For forward and swap contracts, fair value is determined using quoted market prices of financial
instruments with similar characteristics.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.10
|
Estimated fair value of financial instruments and financial derivatives, continued
|
The detail of the Company’s instruments at carrying value
and estimated fair value is as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Carrying value
|
|
|
Fair value
|
|
|
Carrying value
|
|
|
Fair value
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Cash and cash equivalents
|
|
|
582,991
|
|
|
|
582,991
|
|
|
|
527,259
|
|
|
|
527,259
|
|
Current trade and other receivables
|
|
|
307,203
|
|
|
|
307,203
|
|
|
|
302,225
|
|
|
|
302,225
|
|
Receivables due from related parties, current
|
|
|
77,327
|
|
|
|
77,327
|
|
|
|
99,907
|
|
|
|
99,907
|
|
Other financial assets, current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Time deposits
|
|
|
221,491
|
|
|
|
221,491
|
|
|
|
617,267
|
|
|
|
617,267
|
|
- Derivative instruments
|
|
|
9,548
|
|
|
|
9,548
|
|
|
|
19,058
|
|
|
|
19,058
|
|
- Hedging assets
|
|
|
653
|
|
|
|
653
|
|
|
|
-
|
|
|
|
-
|
|
Total other current financial assets
|
|
|
231,692
|
|
|
|
231,692
|
|
|
|
636,325
|
|
|
|
636,325
|
|
Non-Current Trade Receivables
|
|
|
1,250
|
|
|
|
1,250
|
|
|
|
1,050
|
|
|
|
1,050
|
|
Other non-current financial assets:
|
|
|
2,741
|
|
|
|
2,741
|
|
|
|
486
|
|
|
|
486
|
|
Other non-current financial assets:
|
|
|
2,741
|
|
|
|
2,741
|
|
|
|
486
|
|
|
|
486
|
|
Other financial liabilities, current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Bank loans
|
|
|
158,011
|
|
|
|
158,011
|
|
|
|
178,183
|
|
|
|
178,183
|
|
- Derivative instruments
|
|
|
5,460
|
|
|
|
5,460
|
|
|
|
981
|
|
|
|
981
|
|
- Hedging liabilities
|
|
|
20,404
|
|
|
|
20,404
|
|
|
|
1,774
|
|
|
|
1,774
|
|
- Unsecured obligations
|
|
|
58,824
|
|
|
|
58,824
|
|
|
|
221,092
|
|
|
|
221,092
|
|
Other financial liabilities, current
|
|
|
242,699
|
|
|
|
242,699
|
|
|
|
402,030
|
|
|
|
402,030
|
|
Current and non-current accounts payable
|
|
|
129,232
|
|
|
|
129,232
|
|
|
|
136,840
|
|
|
|
136,840
|
|
Payables due to related parties, non-current
|
|
|
-
|
|
|
|
-
|
|
|
|
435
|
|
|
|
435
|
|
Other non-current financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Bank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
140,000
|
|
|
|
160,265
|
|
- Unsecured obligations
|
|
|
1,062,078
|
|
|
|
1,253,245
|
|
|
|
1,077,172
|
|
|
|
1,221,002
|
|
- Non-current hedging liabilities
|
|
|
35,142
|
|
|
|
35,142
|
|
|
|
73,031
|
|
|
|
73,031
|
|
Other non-current financial liabilities:
|
|
|
1,097,220
|
|
|
|
1,288,387
|
|
|
|
1,290,203
|
|
|
|
1,454,298
|
|
Fair value hierarchy
Fair value hierarchies are as follows:
|
a)
|
Level 1: When only quoted (unadjusted) prices have been used in active markets.
|
|
b)
|
Level 2: When in a phase in the valuation process variable other than prices quoted in Level 1
have been used which are directly observable in markets.
|
|
c)
|
Level 3: When in a phase in the valuation process variable which are not based in observable market
data have been used.
|
The valuation technique used to determine the
fair value of our hedging instruments is that indicated for Level 2.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 10
|
Financial instruments (continued)
|
|
10.11
|
Nature and scope of risks arising from financing instruments
|
As indicated in paragraphs 33 to 42 of IFRS
7 the disclosure of information associated with the nature and scope of risks arising from financial instruments is presented in
Note 4 - Financial Risk Management.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 11
|
Equity-accounted investees
|
|
11.1
|
Investments in associates recognized according to the equity method of accounting
|
As of June 30, 2016 and December 31, 2015,
in accordance with criteria established in Note 3.19, investment in associates recognized according to the equity method of accounting
and joint ventures are as follows:
Associates
|
|
Equity-accounted investees
|
|
|
Share on profit (loss) of
associates
and joint ventures
accounted for using the equity
method
|
|
|
Share on other comprehensive
income of associates and joint
ventures accounted for using the
equity method, net of tax
|
|
|
Share on total other
comprehensive
income of
associates and joint ventures
accounted for using the
equity method
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Sales de Magnesio Ltda.
|
|
|
1,840
|
|
|
|
1,535
|
|
|
|
374
|
|
|
|
819
|
|
|
|
-
|
|
|
|
-
|
|
|
|
374
|
|
|
|
819
|
|
Abu Dhabi Fertilizer Industries WWL
|
|
|
12,641
|
|
|
|
11,766
|
|
|
|
744
|
|
|
|
1,455
|
|
|
|
-
|
|
|
|
455
|
|
|
|
744
|
|
|
|
1,910
|
|
Doktor Tarsa Tarim Sanayi AS
|
|
|
18,725
|
|
|
|
15,032
|
|
|
|
4,190
|
|
|
|
2,505
|
|
|
|
371
|
|
|
|
-
|
|
|
|
4,561
|
|
|
|
2,505
|
|
Ajay North America
|
|
|
13,691
|
|
|
|
12,913
|
|
|
|
1,965
|
|
|
|
3,600
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,965
|
|
|
|
3,600
|
|
Ajay Europe SARL
|
|
|
8,025
|
|
|
|
7,202
|
|
|
|
660
|
|
|
|
1,732
|
|
|
|
3
|
|
|
|
(21
|
)
|
|
|
663
|
|
|
|
1,711
|
|
SQM Eastmed Turkey
|
|
|
67
|
|
|
|
70
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
Charlee SQM Thailand Co. Ltd,
|
|
|
1,460
|
|
|
|
1,318
|
|
|
|
82
|
|
|
|
122
|
|
|
|
2
|
|
|
|
89
|
|
|
|
84
|
|
|
|
210
|
|
Total
|
|
|
56,449
|
|
|
|
49,836
|
|
|
|
8,015
|
|
|
|
10,229
|
|
|
|
376
|
|
|
|
523
|
|
|
|
8,391
|
|
|
|
10,751
|
|
|
|
Description
of the nature of the
|
|
|
|
Country
of
|
|
Share
of
ownership in
|
|
|
Dividends
received
|
|
Associate
|
|
Relationship
|
|
Domicile
|
|
incorporation
|
|
associates
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
de Magnesio Ltda.
|
|
Commercialization
of magnesium salts.
|
|
El
Trovador 4285, Las Condes
|
|
Chile
|
|
|
50
|
%
|
|
|
206
|
|
|
|
286
|
|
Abu
Dhabi Fertilizer Industries WWL
|
|
Distribution
and commercialization of specialty plant nutrients in the Middle East.
|
|
PO
Box 71871, Abu Dhabi
|
|
United
Arab Emirates
|
|
|
37
|
%
|
|
|
-
|
|
|
|
-
|
|
Doktor
Tarsa Tarim Sanayi AS
|
|
Distribution
and commercialization of specialty plant nutrients in Turkey.
|
|
Organize
Sanayi Bolgesi, Ikinci Kisim, 22 cadde TR07100 Antalya
|
|
Turkey
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
Ajay
North America
|
|
Production
and distribution of iodine derivatives.
|
|
1400
Industry RD Power Springs GA 30129
|
|
United
States
|
|
|
49
|
%
|
|
|
1.303
|
|
|
|
5,185
|
|
Ajay
Europe SARL
|
|
Production
and commercialization of iodine derivatives.
|
|
Z.I.
du Grand Verger BP 227 53602 Evron Cedex
|
|
France
|
|
|
50
|
%
|
|
|
658
|
|
|
|
1,748
|
|
SQM
Eastmed Turkey
|
|
Production
and commercialization of specialty products.
|
|
Organize
Sanayi Bolgesi, Ikinci Kisim, 22 cadde TR07100 Antalya
|
|
Turkey
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
Charlee
SQM Thailand Co. Ltd.
|
|
Distribution
and commercialization of specialty plant nutrients.
|
|
31
Soi 138 (Meesuk) LLapdrawrd, Bangkapi, 10240 Bangkok
|
|
Thailand
|
|
|
40
|
%
|
|
|
-
|
|
|
|
296
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 11
|
Equity-accounted investees (continued)
|
|
11.2
|
Assets, liabilities, revenue and expenses of associates
|
06/30/2016
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss)
from
|
|
|
Other
|
|
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
|
continuing
|
|
|
comprehensive
|
|
|
Comprehensive
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
Revenue
|
|
|
operations
|
|
|
income
|
|
|
income
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales de Magnesio Ltda.
|
|
|
4,736
|
|
|
|
1,153
|
|
|
|
2,168
|
|
|
|
41
|
|
|
|
6,641
|
|
|
|
749
|
|
|
|
-
|
|
|
|
749
|
|
Abu Dhabi Fertilizer Industries WWL
|
|
|
35,555
|
|
|
|
2,337
|
|
|
|
3,729
|
|
|
|
-
|
|
|
|
22,208
|
|
|
|
2,010
|
|
|
|
-
|
|
|
|
2,010
|
|
Doktor Tarsa Tarim Sanayi AS
|
|
|
86,597
|
|
|
|
8,509
|
|
|
|
57,655
|
|
|
|
-
|
|
|
|
60,090
|
|
|
|
8,381
|
|
|
|
741
|
|
|
|
9,122
|
|
Ajay North America
|
|
|
20,566
|
|
|
|
10,847
|
|
|
|
3,471
|
|
|
|
-
|
|
|
|
19,791
|
|
|
|
4,010
|
|
|
|
-
|
|
|
|
4,010
|
|
Ajay Europe SARL
|
|
|
20,607
|
|
|
|
1,611
|
|
|
|
6,169
|
|
|
|
-
|
|
|
|
19,605
|
|
|
|
1,320
|
|
|
|
6
|
|
|
|
1,326
|
|
SQM Eastmed Turkey
|
|
|
924
|
|
|
|
360
|
|
|
|
26
|
|
|
|
1,125
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Charlee SQM Thailand Co. Ltd.
|
|
|
7,400
|
|
|
|
551
|
|
|
|
4,299
|
|
|
|
-
|
|
|
|
5,786
|
|
|
|
205
|
|
|
|
6
|
|
|
|
211
|
|
Total
|
|
|
176,385
|
|
|
|
25,368
|
|
|
|
77,517
|
|
|
|
1,166
|
|
|
|
134,121
|
|
|
|
16,675
|
|
|
|
753
|
|
|
|
17,428
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
Gain
(loss)
from
|
|
|
Other
|
|
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Revenue
|
|
|
continuing
operations
|
|
|
comprehensive
income
|
|
|
Comprehensive
income
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales de
Magnesio Ltda.
|
|
|
4,141
|
|
|
|
825
|
|
|
|
1,881
|
|
|
|
16
|
|
|
|
11,982
|
|
|
|
1,638
|
|
|
|
-
|
|
|
|
1,638
|
|
Abu Dhabi Fertilizer
Industries WWL
|
|
|
33,770
|
|
|
|
2,529
|
|
|
|
4,499
|
|
|
|
-
|
|
|
|
46,609
|
|
|
|
3,932
|
|
|
|
1,230
|
|
|
|
5,162
|
|
Doktor Tarsa Tarim Sanayi
AS
|
|
|
103,099
|
|
|
|
7,555
|
|
|
|
80,588
|
|
|
|
-
|
|
|
|
64,374
|
|
|
|
5,009
|
|
|
|
-
|
|
|
|
5,009
|
|
Ajay North America
|
|
|
18,651
|
|
|
|
10,619
|
|
|
|
2,917
|
|
|
|
-
|
|
|
|
43,453
|
|
|
|
7,347
|
|
|
|
-
|
|
|
|
7,347
|
|
Ajay Europe SARL
|
|
|
18,979
|
|
|
|
1,661
|
|
|
|
6,239
|
|
|
|
-
|
|
|
|
40,484
|
|
|
|
3,464
|
|
|
|
(42
|
)
|
|
|
3,422
|
|
SQM Eastmed Turkey
|
|
|
976
|
|
|
|
380
|
|
|
|
27
|
|
|
|
1,189
|
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
-
|
|
|
|
(8
|
)
|
Charlee
SQM Thailand Co. Ltd.
|
|
|
7,418
|
|
|
|
566
|
|
|
|
4,687
|
|
|
|
-
|
|
|
|
12,524
|
|
|
|
304
|
|
|
|
222
|
|
|
|
526
|
|
Total
|
|
|
187,034
|
|
|
|
24,135
|
|
|
|
100,838
|
|
|
|
1,205
|
|
|
|
219,516
|
|
|
|
21,686
|
|
|
|
1,410
|
|
|
|
23,096
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 11
|
Investment in Associates (continued)
|
The Company has no participation in unrecognized
losses in investments in associates.
The Company presents no investments unaccounted
for according to the equity method of accounting.
The equity method was applied to the Statement
of Financial Position as of June 30, 2016 and December 31, 2015.
The basis of preparation of the financial information
of associates corresponds to the amounts included in the financial statements in conformity with the entity’s IFRS.
|
12.1
|
Policy for the accounting of equity accounted investment in joint ventures
|
The method for the recognition of joint ventures
is that in which participation is initially recorded at cost, and subsequently adjusted, considering changes after the acquisition
in the portion of the entity’s net assets of the entity which correspond to the investor. Profit or loss for the period of
the investor will collect the portion which belongs to it in the results of the controlled entity as a whole.
|
12.2
|
Disclosures of interest in joint ventures
|
|
a)
|
Operations conducted in 2016
|
On March 28, 2016, Sociedad Química
y Minera de Chile S.A. entered into an agreement to enter a joint venture with Lithium Americas Corp to develop the Cauchari-Olaroz
lithium project in Argentina.
SQM S.A. made a capital contribution of ThUS$25,000
in exchange for 50% of the ownership of Minera Exar S.A.
During May 2016, SQM Vitas Holland B.V. sold
its interest in SQM Vitas Spain, to SQM Iberian S.A. resulting in the latter obtaining 100% in this transaction generating a loss
of ThUS$ 104.
|
b)
|
Operations conducted in 2015
|
During June 2015, SQM Vitas Fzco. sold the ownership it had in SQM
Vitas Southern Africa Pty., generating a loss of ThUS$450.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 12
|
Joint Ventures (continued)
|
|
12.3
|
Investment in joint ventures accounted for under the equity
method of accounting
|
|
|
|
|
|
|
Country of
|
|
Share of interest
|
|
|
Dividends received
|
|
Joint venture
|
|
Description of the nature of the relationship
|
|
Domicile
|
|
incorporation
|
|
in ownership
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Sichuan SQM Migao Chemical Fertilizers Co. Ltda.
|
|
Production and distribution of soluble fertilizers.
|
|
Huangjing Road, Dawan Town, Qingbaijiang District, Chengdu
Municipality, Sichuan Province
|
|
China
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
Coromandel SQM India
|
|
Production and distribution of potassium nitrate.
|
|
1-2-10, Sardar Patel Road, Secunderabad – 500003
Andhra Pradesh
|
|
India
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Fzco.
|
|
Production and commercialization of specialty plant and animal
nutrition and industrial hygiene.
|
|
Jebel ALI Free Zone P.O. Box 18222, Dubai
|
|
United Arab Emirates
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Star Qingdao Corp Nutrition. Co. Ltd.
|
|
Production and distribution of nutrient plant solutions with
specialties NPK soluble
|
|
Longquan Town, Jimo City, Qingdao Municipality, Shangdong Province
|
|
China
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Brazil Agroindustria
|
|
Production and commercialization of specialty plant and animal nutrition
and industrial hygiene.
|
|
Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro Cia Norte, Candeias,
Bahia.
|
|
Brazil
|
|
|
49.99
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Southern Africa Pty.
|
|
Production and commercialization of specialty plant and animal nutrition
and industrial hygiene
|
|
33 Waterford Office Park Waterford Drive Fourways, 2055 South Africa
|
|
South Africa
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Peru S.A.C.
|
|
Production and commercialization of specialty plant and animal nutrition
and industrial hygiene
|
|
Av. Juan de Arona 187, Torre B, Oficina 301-II, San Isidro, Lima
|
|
Peru
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Spain(1)
|
|
Production and commercialization of specialty plant nutrition
|
|
C/Manuel Echeverria Manzana 2 Muelle de la Cab ( Puerto Real )
|
|
Spain
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Holland B.V
|
|
Without information
|
|
Herikerbergweg 238, 1101 CM Amsterdam Zuidoost
|
|
Holland
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Plantacote B.V.
|
|
Production and commercialization of controlled-released fertilizers
|
|
Herikerbergweg 238, 1101 CM Amsterdam Zuidoost
|
|
Holland
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
Minera Exar S.A.
|
|
Exploration and exploitation of minerals, processing and trading
of such minerals
|
|
Dr. Sabín 1082 Ciudad de Nieva – San Salvador de Jujuy-
Jujuy- República Argentina
|
|
Argentina
|
|
|
50
|
%
|
|
|
-
|
|
|
|
-
|
|
|
(1)
|
During May 2016, SQM Vitas Holland B.V. sold its interest in SQM Vitas Spain, to SQM Iberian S.A. resulting in the latter obtaining
100% in this transaction generating a loss of ThUS$ 104.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 12
|
Joint Ventures (continued)
|
|
12.3
|
Investment in joint ventures accounted for under the
equity method of accounting, continued:
|
Joint Venture
|
|
Equity-accounted investees
|
|
|
Share on profit (loss) of
associates and joint
ventures accounted for
using the equity method
|
|
|
Share on other comprehensive
income of associates and joint
ventures accounted for using
the equity method, net of tax
|
|
|
Share on total other
comprehensive income of
associates and joint
ventures accounted for
using the equity method
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sichuan SQM Migao Chemical Fertilizers Co. Ltd.
|
|
|
12,679
|
|
|
|
13,257
|
|
|
|
(672
|
)
|
|
|
(845
|
)
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
(672
|
)
|
|
|
(857
|
)
|
Coromandel SQM India
|
|
|
974
|
|
|
|
962
|
|
|
|
-
|
|
|
|
88
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
88
|
|
SQM Vitas Fzco,
|
|
|
16,057
|
|
|
|
11,604
|
|
|
|
2,879
|
|
|
|
369
|
|
|
|
510
|
|
|
|
9,686
|
|
|
|
3,389
|
|
|
|
10,055
|
|
SQM Star Qingdao Corp. Nutrition Co. Ltd.
|
|
|
2,596
|
|
|
|
2,462
|
|
|
|
139
|
|
|
|
495
|
|
|
|
-
|
|
|
|
-
|
|
|
|
139
|
|
|
|
495
|
|
SQM Vitas Holland
|
|
|
1,388
|
|
|
|
1,181
|
|
|
|
235
|
|
|
|
(10
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
235
|
|
|
|
(11
|
)
|
Minera Exar S.A.
|
|
|
25,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
58,694
|
|
|
|
29,466
|
|
|
|
2,581
|
|
|
|
97
|
|
|
|
510
|
|
|
|
9,674
|
|
|
|
3,091
|
|
|
|
9,770
|
|
Joint Venture
|
|
Equity-accounted investees
|
|
|
Share on profit (loss) of
associates and joint
ventures accounted for
using the equity method
|
|
|
Share on other comprehensive
income of associates and joint
ventures accounted for using
the equity method, net of tax
|
|
|
Share on total other
comprehensive income of
associates and joint
ventures accounted for
using the equity method
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SQM Vitas Brazil Agroindustria(1)
|
|
|
8,746
|
|
|
|
3,722
|
|
|
|
4,000
|
|
|
|
(72
|
)
|
|
|
2,839
|
|
|
|
-
|
|
|
|
4,839
|
|
|
|
(36
|
)
|
SQM Vitas Peru S.A.C (1)
|
|
|
6,452
|
|
|
|
5,061
|
|
|
|
1,253
|
|
|
|
786
|
|
|
|
-
|
|
|
|
-
|
|
|
|
627
|
|
|
|
393
|
|
SQM Vitas Spain (2)
|
|
|
-
|
|
|
|
1,182
|
|
|
|
-
|
|
|
|
(251
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
109
|
|
SQM Vitas Plantacote B.V. (2)
|
|
|
721
|
|
|
|
3,598
|
|
|
|
(63
|
)
|
|
|
215
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(32
|
)
|
|
|
(125
|
)
|
Total
|
|
|
15,919
|
|
|
|
13,563
|
|
|
|
5,190
|
|
|
|
678
|
|
|
|
2,839
|
|
|
|
-
|
|
|
|
5,434
|
|
|
|
341
|
|
The following companies are subsidiaries of
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 12
|
Joint Ventures (continued)
|
|
12.4
|
Assets, liabilities, revenue and expenses from joint ventures:
|
|
|
06/30/2016
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
|
Gain (loss)
from
continuing
|
|
|
Other
comprehensive
|
|
|
Comprehensive
|
|
Joint Venture
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
Revenue
|
|
|
operations
|
|
|
income
|
|
|
income
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sichuan SQM Migao Chemical Fertilizers Co. Ltda.
|
|
|
51,510
|
|
|
|
7,659
|
|
|
|
33,810
|
|
|
|
-
|
|
|
|
10,310
|
|
|
|
(1,344
|
)
|
|
|
-
|
|
|
|
(1,344
|
)
|
Coromandel SQM India
|
|
|
3,320
|
|
|
|
924
|
|
|
|
2,226
|
|
|
|
70
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Fzco,
|
|
|
18,565
|
|
|
|
16,722
|
|
|
|
3,174
|
|
|
|
-
|
|
|
|
4,700
|
|
|
|
5,758
|
|
|
|
1,019
|
|
|
|
6,777
|
|
SQM Star Qingdao Corp. Nutrition Co. Ltd.
|
|
|
5,621
|
|
|
|
213
|
|
|
|
642
|
|
|
|
-
|
|
|
|
4,272
|
|
|
|
278
|
|
|
|
-
|
|
|
|
278
|
|
SQM Vitas Brazil Agroindustria
|
|
|
29,691
|
|
|
|
8,589
|
|
|
|
29,533
|
|
|
|
-
|
|
|
|
31,683
|
|
|
|
4,000
|
|
|
|
5,678
|
|
|
|
9,678
|
|
SQM Vitas Peru S.A.C
|
|
|
23,870
|
|
|
|
8,732
|
|
|
|
21,554
|
|
|
|
4,594
|
|
|
|
8,758
|
|
|
|
1,253
|
|
|
|
-
|
|
|
|
1,253
|
|
SQM Vitas Holland B.V
|
|
|
2,075
|
|
|
|
721
|
|
|
|
19
|
|
|
|
-
|
|
|
|
-
|
|
|
|
471
|
|
|
|
-
|
|
|
|
471
|
|
SQM Vitas Plantacote B.V.
|
|
|
763
|
|
|
|
-
|
|
|
|
42
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(63
|
)
|
|
|
-
|
|
|
|
(63
|
)
|
Total
|
|
|
135,415
|
|
|
|
43,560
|
|
|
|
91,000
|
|
|
|
4,664
|
|
|
|
59,723
|
|
|
|
10,353
|
|
|
|
6,697
|
|
|
|
17,050
|
|
|
|
12/31/2015
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
|
Gain (loss)
from
continuing
|
|
|
Other
comprehensive
|
|
|
Comprehensive
|
|
Joint Venture
|
|
Current
|
|
|
Non-current
|
|
|
Current
|
|
|
Non-current
|
|
|
Revenue
|
|
|
operations
|
|
|
income
|
|
|
income
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sichuan SQM Migao Chemical Fertilizers Co. Ltda.
|
|
|
56,053
|
|
|
|
8,023
|
|
|
|
37,563
|
|
|
|
-
|
|
|
|
65,929
|
|
|
|
(1,689
|
)
|
|
|
(24
|
)
|
|
|
(1,713
|
)
|
Coromandel SQM India
|
|
|
3,738
|
|
|
|
924
|
|
|
|
2,668
|
|
|
|
70
|
|
|
|
5,816
|
|
|
|
176
|
|
|
|
-
|
|
|
|
176
|
|
SQM Vitas Fzco.
|
|
|
14,096
|
|
|
|
10,575
|
|
|
|
1,464
|
|
|
|
-
|
|
|
|
17,893
|
|
|
|
738
|
|
|
|
19,371
|
|
|
|
20,109
|
|
SQM Star Qingdao Corp. Nutrition Co. Ltd.
|
|
|
5,100
|
|
|
|
202
|
|
|
|
377
|
|
|
|
-
|
|
|
|
10,539
|
|
|
|
990
|
|
|
|
-
|
|
|
|
990
|
|
SQM Vitas Brazil Agroindustria
|
|
|
32,449
|
|
|
|
6,638
|
|
|
|
35,365
|
|
|
|
-
|
|
|
|
67,870
|
|
|
|
(72
|
)
|
|
|
-
|
|
|
|
(72
|
)
|
SQM Vitas Peru S.A.C
|
|
|
24,432
|
|
|
|
6,562
|
|
|
|
25,933
|
|
|
|
-
|
|
|
|
45,739
|
|
|
|
786
|
|
|
|
-
|
|
|
|
786
|
|
SQM Vitas Spain
|
|
|
1,662
|
|
|
|
729
|
|
|
|
1,208
|
|
|
|
-
|
|
|
|
11,875
|
|
|
|
218
|
|
|
|
-
|
|
|
|
218
|
|
SQM Vitas Holland B.V
|
|
|
428
|
|
|
|
1,955
|
|
|
|
18
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(21
|
)
|
|
|
-
|
|
|
|
(21
|
)
|
SQM Vitas Plantacote B.V.
|
|
|
802
|
|
|
|
-
|
|
|
|
30
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(250
|
)
|
|
|
-
|
|
|
|
(250
|
)
|
Total
|
|
|
138,760
|
|
|
|
35,608
|
|
|
|
104,626
|
|
|
|
70
|
|
|
|
225,661
|
|
|
|
876
|
|
|
|
19,347
|
|
|
|
20,223
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 12
|
Joint Ventures (continued)
|
|
12.5
|
Other Joint Venture disclosures:
|
|
|
Cash and cash equivalents
|
|
|
Other current financial liabilities
|
|
|
Other non-current financial liabilities
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sichuan SQM Migao Chemical Fertilizers Co. Ltda.
|
|
|
6,198
|
|
|
|
737
|
|
|
|
13,727
|
|
|
|
13,955
|
|
|
|
-
|
|
|
|
-
|
|
Coromandel SQM India
|
|
|
63
|
|
|
|
63
|
|
|
|
1,027
|
|
|
|
1,027
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Fzco,
|
|
|
7,673
|
|
|
|
7,574
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Star Qingdao Corp. Nutrition Co. Ltd.
|
|
|
2,796
|
|
|
|
3,870
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Brazil Agroindustria
|
|
|
1,282
|
|
|
|
827
|
|
|
|
10,351
|
|
|
|
11,215
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Peru S.A.C.
|
|
|
159
|
|
|
|
160
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Spain
|
|
|
-
|
|
|
|
272
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Holland B.V
|
|
|
2,075
|
|
|
|
428
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Plantacote B.V.
|
|
|
763
|
|
|
|
802
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
21,009
|
|
|
|
14,733
|
|
|
|
25,105
|
|
|
|
26,197
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Depreciation and amortization
expense
|
|
|
Interest expense
|
|
|
Income tax expense, continuing
operations
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sichuan SQM Migao Chemical Fertilizers Co. Ltda.
|
|
|
(344
|
)
|
|
|
(687
|
)
|
|
|
(2
|
)
|
|
|
(241
|
)
|
|
|
79
|
|
|
|
233
|
|
Coromandel SQM India
|
|
|
-
|
|
|
|
(69
|
)
|
|
|
-
|
|
|
|
(73
|
)
|
|
|
-
|
|
|
|
(89
|
)
|
SQM Vitas Fzco.
|
|
|
(269
|
)
|
|
|
(1,067
|
)
|
|
|
(5
|
)
|
|
|
(10
|
)
|
|
|
-
|
|
|
|
-
|
|
SQM Star Qingdao Corp. Nutrition Co. Ltd.
|
|
|
(31
|
)
|
|
|
(66
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
(122
|
)
|
|
|
(378
|
)
|
SQM Vitas Brazil Agroindustria
|
|
|
(220
|
)
|
|
|
(29
|
)
|
|
|
(1,009
|
)
|
|
|
(1,651
|
)
|
|
|
(51
|
)
|
|
|
(49
|
)
|
SQM Vitas Peru S.A.C.
|
|
|
(16
|
)
|
|
|
(29
|
)
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(38
|
)
|
|
|
(370
|
)
|
SQM Vitas Spain
|
|
|
-
|
|
|
|
(116
|
)
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
(73
|
)
|
SQM Vitas Holland B.V
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
SQM Vitas Plantacote B.V.
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
-
|
|
Total
|
|
|
(880
|
)
|
|
|
(2,063
|
)
|
|
|
(1.017
|
)
|
|
|
(1,986
|
)
|
|
|
(132
|
)
|
|
|
(726
|
)
|
The basis of preparation of the financial information
of joint ventures corresponds to the amounts included in the financial statements in conformity with the entity’s IFRS.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 13
|
Intangible assets and goodwill
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Intangible assets other than goodwill
|
|
|
108,970
|
|
|
|
110,428
|
|
Goodwill (1)
|
|
|
38,088
|
|
|
|
38,388
|
|
Total
|
|
|
147,058
|
|
|
|
148,816
|
|
|
(1)
|
The recoverable amount of the cash-generating unit has been determined based on a calculation of
the value in use which used cash flow projections for a 5-year period.
|
The present value of the future
cash flows generated by these assets has been estimated given a variance in sales volumes, market prices and costs, discounted
at weighted average cost of capital (WACC).
|
13.2
|
Disclosures on intangible assets and goodwill
|
Intangible assets relate to goodwill, water
rights, trademarks, industrial patents, rights of way, software, and mining claims which correspond to exploitation rights acquired
from third-parties.
Balances and movements in the main classes
of intangible assets as of June 30, 2016 and December 31, 2015 are detailed as follows:
|
|
|
|
06/30/2016
|
|
Intangible assets and goodwill
|
|
Useful
life
|
|
Gross amount
ThUS$
|
|
|
Accumulated
Amortization
ThUS$
|
|
|
Net Value
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
Finite
|
|
|
23,258
|
|
|
|
(14,919
|
)
|
|
|
8,339
|
|
Intellectual property rights, patents and other industrial property rights, service
|
|
Finite
|
|
|
1,482
|
|
|
|
(1,005
|
)
|
|
|
477
|
|
Intellectual property rights, patents and other industrial property rights, service
|
|
Indefinite
|
|
|
96,503
|
|
|
|
-
|
|
|
|
96,503
|
|
Other intangible assets
|
|
Indefinite
|
|
|
3,651
|
|
|
|
-
|
|
|
|
3,651
|
|
Intangible assets other than goodwill
|
|
|
|
|
124,894
|
|
|
|
(15,924
|
)
|
|
|
108,970
|
|
Goodwill
|
|
Indefinite
|
|
|
38,088
|
|
|
|
-
|
|
|
|
38,088
|
|
Total intangible assets and goodwill
|
|
|
|
|
162,982
|
|
|
|
(15,924
|
)
|
|
|
147,058
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 13
|
Intangible assets and goodwill (continued)
|
|
13.2
|
Disclosures on intangible assets and goodwill, continued
|
|
|
|
|
12/31/2015
|
|
Intangible assets and goodwill
|
|
Useful
life
|
|
Gross amount
ThUS$
|
|
|
Accumulated
Amortization
ThUS$
|
|
|
Net Value
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trademarks
|
|
Finite
|
|
|
3,821
|
|
|
|
(3,821
|
)
|
|
|
-
|
|
Software
|
|
Finite
|
|
|
23,251
|
|
|
|
(13,438
|
)
|
|
|
9,813
|
|
Intellectual property rights, patents and other industrial property rights, service
|
|
Finite
|
|
|
1,448
|
|
|
|
(984
|
)
|
|
|
464
|
|
Intellectual property rights, patents and other industrial property rights, service
|
|
Indefinite
|
|
|
96,500
|
|
|
|
-
|
|
|
|
96,500
|
|
Other intangible assets
|
|
Indefinite
|
|
|
3,651
|
|
|
|
-
|
|
|
|
3,651
|
|
Intangible assets other than goodwill
|
|
|
|
|
128,671
|
|
|
|
(18,243
|
)
|
|
|
110,428
|
|
Goodwill
|
|
Indefinite
|
|
|
38,388
|
|
|
|
-
|
|
|
|
38,388
|
|
Total intangible assets and goodwill
|
|
|
|
|
167,059
|
|
|
|
(18,243
|
)
|
|
|
148,816
|
|
|
a)
|
Estimated useful lives or amortization rates used for
finite identifiable intangible assets
|
Finite useful life measures the lifetime or
the number of productive units or other similar variables which constitute its useful life.
The estimated useful life for software is 3
and 6 years, for other finite useful life assets the period in which they are amortized relates to periods defined by contracts
or rights which generate them.
Intellectual property rights, patents and other
industrial property rights, service and exploitation rights, mainly relate to water rights and are obtained as indefinite.
|
b)
|
Method used to express the amortization of identifiable
intangible assets (life or rate)
|
The method used to express the amortization is useful life, and
estimated tons to be extracted in the case of mining claims.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 13
|
Intangible assets and goodwill (continued)
|
|
13.2
|
Disclosures on intangible assets and goodwill, continued
|
|
c)
|
Minimum and maximum amortization lives or rates of intangible
assets:
|
Estimated useful lives or amortization rate
|
|
Minimum life or rate
|
|
Maximum life or rate
|
|
|
|
|
|
Intellectual property rights, patents and other industrial property rights, service and exploitation rights
|
|
Indefinite
|
|
Indefinite
|
|
|
|
|
|
Intangible assets other than goodwill
|
|
Indefinite
|
|
Indefinite
|
|
|
|
|
|
Intellectual property rights, patents and other industrial property rights, service and exploitation rights
|
|
1 year
|
|
16 years
|
|
|
|
|
|
Trademarks
|
|
1 year
|
|
5 years
|
|
|
|
|
|
Software
|
|
2 years
|
|
6 years
|
|
d)
|
Information to be disclosed on assets generated internally
|
The Company has no intangible assets generated internally.
|
e)
|
Other information to disclose on intangible assets
|
SQM has property rights and mining concessions
of the Chilean Government, intended for the exploration and exploitation of saltpeter and brine. Such rights, have had no initial
cost over registration costs, which are insignificant.
Also, SQM has acquired from third-parties other
than the Chilean Government, mining concessions, which have been recognized at acquisition cost, which are amortized as the corresponding
area is exploited based on the tons estimated to be extracted.
Expenses prior to obtaining the mining concessions
are recognized in profit or loss for the year as incurred.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 13
|
Intangible assets and goodwill (continued)
|
|
13.2
|
Disclosures on intangible assets and goodwill, continued
|
|
f)
|
Movements in identifiable intangible assets as of June
30, 2016:
|
Movements in identifiable intangible assets, gross
|
|
Trademarks
|
|
|
Software
|
|
|
Intellectual property rights,
patents and
other industrial
property rights, service,
rights of way
|
|
|
Intellectual property rights,
patents and
other industrial
property rights, service,
rights of way
|
|
|
Other
intangible
assets
|
|
|
Goodwill
|
|
|
Identifiable
intangible
assets
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Opening balance
|
|
|
3,821
|
|
|
|
23,251
|
|
|
|
1,448
|
|
|
|
96,500
|
|
|
|
3,651
|
|
|
|
38,388
|
|
|
|
167,059
|
|
Additions
|
|
|
-
|
|
|
|
88
|
|
|
|
19
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
107
|
|
Other increases (decreases)
|
|
|
(3,821
|
)
|
|
|
(81
|
)
|
|
|
15
|
|
|
|
3
|
|
|
|
-
|
|
|
|
(300
|
)
|
|
|
(4,184
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final balance
|
|
|
-
|
|
|
|
23,258
|
|
|
|
1,482
|
|
|
|
96,503
|
|
|
|
3,651
|
|
|
|
38,088
|
|
|
|
162,982
|
|
Movements in identifiable intangible assets,
accumulated amortization
|
|
Trademarks
|
|
|
Software
|
|
|
Intellectual property rights,
patents and other
industrial
property rights, service,
rights of way
|
|
|
Intellectual property rights,
patents and other
industrial
property rights, service,
rights of way
|
|
|
Other
intangible
assets
|
|
|
Goodwill
|
|
|
Identifiable
intangible
assets
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Opening balance
|
|
|
(3,821
|
)
|
|
|
(13,438
|
)
|
|
|
(984
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,243
|
)
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Amortization
|
|
|
-
|
|
|
|
(1,476
|
)
|
|
|
(20
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,496
|
)
|
Other increases (decreases)
|
|
|
3,821
|
|
|
|
(5
|
)
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final balance
|
|
|
-
|
|
|
|
(14,919
|
)
|
|
|
(1,005
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15,924
|
)
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 13
|
Intangible assets and goodwill (continued)
|
|
13.2
|
Disclosures on intangible assets and goodwill, continued
|
|
f)
|
Movements in identifiable intangible assets as of June 30, 2016, continued
|
Movements in identifiable intangible assets, net
|
|
Trademarks
|
|
|
Software
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service,
rights of way
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service
rights of way
|
|
|
Other
intangible
assets
|
|
|
Goodwill
|
|
|
Identifiable
intangible
assets
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Opening balance
|
|
|
-
|
|
|
|
9,813
|
|
|
|
464
|
|
|
|
96,500
|
|
|
|
3,651
|
|
|
|
38,388
|
|
|
|
148,816
|
|
Additions
|
|
|
-
|
|
|
|
88
|
|
|
|
19
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
107
|
|
Amortization
|
|
|
-
|
|
|
|
(1,476
|
)
|
|
|
(20
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,496
|
)
|
Other increases (decreases)
|
|
|
-
|
|
|
|
(86
|
)
|
|
|
14
|
|
|
|
3
|
|
|
|
-
|
|
|
|
(300
|
)
|
|
|
(369
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final balance
|
|
|
-
|
|
|
|
8,339
|
|
|
|
477
|
|
|
|
96,503
|
|
|
|
3,651
|
|
|
|
38,088
|
|
|
|
147,058
|
|
|
g)
|
Movements in identifiable intangible assets as of December 31, 2015:
|
Movements in identifiable intangible assets, gross
|
|
Trademarks
|
|
|
Software
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service,
rights of way
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service,
rights of way
|
|
|
Other
intangible
assets
|
|
|
Goodwill
|
|
|
Identifiable
intangible
assets
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Opening balance
|
|
|
3,821
|
|
|
|
23,062
|
|
|
|
1,524
|
|
|
|
97,386
|
|
|
|
3,698
|
|
|
|
38,388
|
|
|
|
167,879
|
|
Additions
|
|
|
-
|
|
|
|
189
|
|
|
|
15
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
204
|
|
Other increases (decreases)
|
|
|
-
|
|
|
|
-
|
|
|
|
(91
|
)
|
|
|
(886
|
)
|
|
|
(47
|
)
|
|
|
-
|
|
|
|
(1,024
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final balance
|
|
|
3,821
|
|
|
|
23,251
|
|
|
|
1,448
|
|
|
|
96,500
|
|
|
|
3,651
|
|
|
|
38,388
|
|
|
|
167,059
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 13
|
Intangible assets and goodwill (continued)
|
|
13.2
|
Disclosures on intangible assets and goodwill, continued
|
|
g)
|
Movements in identifiable intangible assets as of December 31, 2015:
|
Movements in identifiable intangible assets,
accumulated amortization
|
|
Trademarks
|
|
|
Software
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service,
rights of way
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service,
rights of way
|
|
|
Other
intangible
assets
|
|
|
Goodwill
|
|
|
Identifiable
intangible
assets
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Opening balance
|
|
|
(3,821
|
)
|
|
|
(9,996
|
)
|
|
|
(939
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,756
|
)
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Amortization
|
|
|
-
|
|
|
|
(3,432
|
)
|
|
|
(45
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,477
|
)
|
Other increases (decreases)
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final balance
|
|
|
(3,821
|
)
|
|
|
(13,438
|
)
|
|
|
(984
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,243
|
)
|
Movements in identifiable intangible assets, net
|
|
Trademarks
|
|
|
Software
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service
rights of way
|
|
|
Intellectual property rights,
patents and other industrial
property rights, service
rights of way
|
|
|
Other
intangible
assets
|
|
|
Goodwill
|
|
|
Identifiable
intangible
assets
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Opening balance
|
|
|
-
|
|
|
|
13,066
|
|
|
|
585
|
|
|
|
97,386
|
|
|
|
3,698
|
|
|
|
38,388
|
|
|
|
153,123
|
|
Additions
|
|
|
-
|
|
|
|
189
|
|
|
|
15
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
204
|
|
Amortization
|
|
|
-
|
|
|
|
(3,432
|
)
|
|
|
(45
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,477
|
)
|
Other increases (decreases)
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
(91
|
)
|
|
|
(886
|
)
|
|
|
(47
|
)
|
|
|
-
|
|
|
|
(1,034
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final balance
|
|
|
-
|
|
|
|
9,813
|
|
|
|
464
|
|
|
|
96,500
|
|
|
|
3,651
|
|
|
|
38,388
|
|
|
|
148,816
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 14
|
Property, plant and equipment
|
As of June 30, 2016 and December 31, 2015, the detail of property,
plant and equipment is as follows:
|
14.1
|
Types of property, plant and equipment
|
Description of types of property, plant and equipment
|
|
06/30/2016
MUS$
|
|
|
12/31/2015
MUS$
|
|
Property, plant and equipment, net
|
|
|
|
|
|
|
|
|
Land
|
|
|
34,624
|
|
|
|
34,589
|
|
Buildings
|
|
|
119,031
|
|
|
|
128,375
|
|
Machinery
|
|
|
346,669
|
|
|
|
393,461
|
|
Transport equipment
|
|
|
15,756
|
|
|
|
14,766
|
|
Furniture and fixtures
|
|
|
6,996
|
|
|
|
8,516
|
|
Office equipment
|
|
|
5,895
|
|
|
|
6,168
|
|
Production plants
|
|
|
85,764
|
|
|
|
80,027
|
|
Mining assets
|
|
|
33,813
|
|
|
|
41,392
|
|
Constructions in progress
|
|
|
191,964
|
|
|
|
151,831
|
|
Other property, plant and equipment (1)
|
|
|
781,081
|
|
|
|
824,451
|
|
Total
|
|
|
1,621,593
|
|
|
|
1,683,576
|
|
Property, plant and equipment, gross
|
|
|
|
|
|
|
|
|
Land
|
|
|
34,624
|
|
|
|
34,589
|
|
Buildings
|
|
|
266,939
|
|
|
|
264,645
|
|
Machinery
|
|
|
1,216,175
|
|
|
|
1,211,927
|
|
Transport equipment
|
|
|
79,978
|
|
|
|
79,979
|
|
Furniture and fixtures
|
|
|
37,592
|
|
|
|
37,492
|
|
Office equipment
|
|
|
38,963
|
|
|
|
38,285
|
|
Production plants
|
|
|
185,687
|
|
|
|
171,769
|
|
Mining assets
|
|
|
228,240
|
|
|
|
228,240
|
|
Constructions in progress
|
|
|
191,964
|
|
|
|
151,831
|
|
Other property, plant and equipment
|
|
|
1,806,636
|
|
|
|
1,804,515
|
|
Total
|
|
|
4,086,798
|
|
|
|
4,023,272
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and value impairment of property, plant and equipment, total
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment of buildings
|
|
|
147,908
|
|
|
|
136,270
|
|
Accumulated depreciation and impairment of machinery
|
|
|
869,506
|
|
|
|
818,466
|
|
Accumulated depreciation and impairment of transport equipment
|
|
|
64,222
|
|
|
|
65,213
|
|
Accumulated depreciation and impairment of furniture and fixtures
|
|
|
30,596
|
|
|
|
28,976
|
|
Accumulated depreciation and impairment of office equipment
|
|
|
33,068
|
|
|
|
32,117
|
|
Accumulated depreciation and impairment of production plants
|
|
|
99,923
|
|
|
|
91,742
|
|
Accumulated depreciation and impairment of mining assets
|
|
|
194,427
|
|
|
|
186,848
|
|
Accumulated depreciation and impairment of other property, plant and equipment
|
|
|
1,025,555
|
|
|
|
980,064
|
|
Total
|
|
|
2,465,205
|
|
|
|
2,339,696
|
|
|
(1)
|
The detail of other property, plant and equipment is as
follows:
|
|
|
06/30/2016
MUS$
|
|
|
31/12/2015
MUS$
|
|
Other property, plant and equipment, net
|
|
|
|
|
|
|
|
|
Conveyor belt
|
|
|
36,533
|
|
|
|
39,666
|
|
Tank (TK)
|
|
|
21,486
|
|
|
|
26,046
|
|
Geomembrane/liner
|
|
|
148,369
|
|
|
|
155,409
|
|
Electric facilities
|
|
|
50,400
|
|
|
|
56,600
|
|
Lights
|
|
|
1,451
|
|
|
|
2,252
|
|
Other constructions
|
|
|
112,600
|
|
|
|
109,478
|
|
Piping
|
|
|
15,368
|
|
|
|
17,174
|
|
Pool
|
|
|
152,602
|
|
|
|
160,869
|
|
Well (water)
|
|
|
40,991
|
|
|
|
44,432
|
|
Pipes/HD lines
|
|
|
119,448
|
|
|
|
131,431
|
|
Railroad track
|
|
|
15,222
|
|
|
|
11,001
|
|
Other property, plant and equipment
|
|
|
66,611
|
|
|
|
70,093
|
|
Total
|
|
|
781,081
|
|
|
|
824,451
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 14
|
Property, plant and equipment (continued)
|
|
14.2
|
Reconciliation of changes in property, plant and equipment
by type:
|
Reconciliation entries of changes in
property, plant and equipment by type as
of June 30, 2016, gross
|
|
Land
|
|
|
Buildings
|
|
|
Machinery
|
|
|
Transport
equipment
|
|
|
Furniture and
fixtures
|
|
|
Office
equipment
|
|
|
Production
plants
|
|
|
Mining assets
|
|
|
Constructions
in progress
|
|
|
Other property,
plant and
equipment
|
|
|
Property,
plant and
equipment
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
34,589
|
|
|
|
264,645
|
|
|
|
1,211,927
|
|
|
|
79,979
|
|
|
|
37,492
|
|
|
|
38,285
|
|
|
|
171,769
|
|
|
|
228,240
|
|
|
|
151,831
|
|
|
|
1,804,515
|
|
|
|
4,023,272
|
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
464
|
|
|
|
-
|
|
|
|
-
|
|
|
|
423
|
|
|
|
-
|
|
|
|
-
|
|
|
|
73,653
|
|
|
|
155
|
|
|
|
74,695
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
(623
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(216
|
)
|
|
|
(181
|
)
|
|
|
(1,021
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
35
|
|
|
|
7
|
|
|
|
23
|
|
|
|
10
|
|
|
|
-
|
|
|
|
68
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
79
|
|
|
|
222
|
|
Reclassification
|
|
|
-
|
|
|
|
2,287
|
|
|
|
-
|
|
|
|
-
|
|
|
|
216
|
|
|
|
598
|
|
|
|
13,918
|
|
|
|
-
|
|
|
|
(21,134
|
)
|
|
|
4,115
|
|
|
|
-
|
|
Other increases (decreases) (*)
|
|
|
-
|
|
|
|
-
|
|
|
|
4,384
|
|
|
|
(11
|
)
|
|
|
(116
|
)
|
|
|
(410
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,170
|
)
|
|
|
(2,047
|
)
|
|
|
(10,370
|
)
|
Total changes
|
|
|
35
|
|
|
|
2,294
|
|
|
|
4,248
|
|
|
|
(1
|
)
|
|
|
100
|
|
|
|
678
|
|
|
|
13,918
|
|
|
|
-
|
|
|
|
40,133
|
|
|
|
2,121
|
|
|
|
63,526
|
|
Final balance
|
|
|
34,624
|
|
|
|
266,939
|
|
|
|
1,216,175
|
|
|
|
79,978
|
|
|
|
37,592
|
|
|
|
38,963
|
|
|
|
185,687
|
|
|
|
228,240
|
|
|
|
191,964
|
|
|
|
1,806,636
|
|
|
|
4,086,798
|
|
Reconciliation entries of changes in
property, plant and equipment by type as
of June 30, 2016, Accumulated
depreciation
|
|
Land
|
|
|
Buildings
|
|
|
Machinery
|
|
|
Transport
equipment
|
|
|
Furniture and
fixtures
|
|
|
Office
equipment
|
|
|
Production
plants
|
|
|
Mining assets
|
|
|
Constructions
in progress
|
|
|
Other property,
plant and
equipment
|
|
|
Property,
plant and
equipment
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
-
|
|
|
|
(136,270
|
)
|
|
|
(818,466
|
)
|
|
|
(65,213
|
)
|
|
|
(28,976
|
)
|
|
|
(32,117
|
)
|
|
|
(91,742
|
)
|
|
|
(186,848
|
)
|
|
|
|
|
|
|
(980,064
|
)
|
|
|
(2,339,696
|
)
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
230
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
230
|
|
Depreciation expense
|
|
|
-
|
|
|
|
(11,064
|
)
|
|
|
(44,866
|
)
|
|
|
(3,504
|
)
|
|
|
(1,585
|
)
|
|
|
(1,261
|
)
|
|
|
(8,184
|
)
|
|
|
(7,579
|
)
|
|
|
-
|
|
|
|
(42,967
|
)
|
|
|
(121,010
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
-
|
|
|
|
(8
|
)
|
|
|
-
|
|
|
|
(33
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(17
|
)
|
|
|
(70
|
)
|
Reclassification
|
|
|
-
|
|
|
|
-
|
|
|
|
(202
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
202
|
|
|
|
-
|
|
Other increases (decreases) (*)
|
|
|
-
|
|
|
|
(562
|
)
|
|
|
(6,202
|
)
|
|
|
4,503
|
|
|
|
(35
|
)
|
|
|
343
|
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,709
|
)
|
|
|
(4,659
|
)
|
Total changes
|
|
|
-
|
|
|
|
(11,638
|
)
|
|
|
(51,040
|
)
|
|
|
991
|
|
|
|
(1,620
|
)
|
|
|
(951
|
)
|
|
|
(8,181
|
)
|
|
|
(7,579
|
)
|
|
|
-
|
|
|
|
(45,491
|
)
|
|
|
(125,509
|
)
|
Final balance
|
|
|
-
|
|
|
|
(147,908
|
)
|
|
|
(869,506
|
)
|
|
|
(64,222
|
)
|
|
|
(30,596
|
)
|
|
|
(33,068
|
)
|
|
|
(99,923
|
)
|
|
|
(194,427
|
)
|
|
|
-
|
|
|
|
(1,025,555
|
)
|
|
|
(2,465,205
|
)
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 14
|
Property, plant and equipment (continued)
|
|
14.2
|
Reconciliation of changes in property, plant and equipment
by type, continued:
|
Reconciliation entries of changes in
property, plant and equipment by type as
of June 30, 2016, net
|
|
Land
|
|
|
Buildings
|
|
|
Machinery
|
|
|
Transport
equipment
|
|
|
Furniture and
fixtures
|
|
|
Office
equipment
|
|
|
Production
plants
|
|
|
Mining assets
|
|
|
Constructions
in progress
|
|
|
Other property,
plant and
equipment
|
|
|
Property,
plant and
equipment
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
34,589
|
|
|
|
128,375
|
|
|
|
393,461
|
|
|
|
14,766
|
|
|
|
8,516
|
|
|
|
6,168
|
|
|
|
80,027
|
|
|
|
41,392
|
|
|
|
151,831
|
|
|
|
824,451
|
|
|
|
1,683,576
|
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
-
|
|
|
|
-
|
|
|
|
464
|
|
|
|
-
|
|
|
|
-
|
|
|
|
423
|
|
|
|
-
|
|
|
|
-
|
|
|
|
73,653
|
|
|
|
155
|
|
|
|
74,695
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
(393
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(216
|
)
|
|
|
(181
|
)
|
|
|
(791
|
)
|
Depreciation expense
|
|
|
-
|
|
|
|
(11,064
|
)
|
|
|
(44,866
|
)
|
|
|
(3,504
|
)
|
|
|
(1,585
|
)
|
|
|
(1,261
|
)
|
|
|
(8,184
|
)
|
|
|
(7,579
|
)
|
|
|
-
|
|
|
|
(42,967
|
)
|
|
|
(121,010
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
35
|
|
|
|
(5
|
)
|
|
|
23
|
|
|
|
2
|
|
|
|
-
|
|
|
|
35
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
62
|
|
|
|
152
|
|
Reclassification
|
|
|
-
|
|
|
|
2,287
|
|
|
|
(202
|
)
|
|
|
-
|
|
|
|
216
|
|
|
|
598
|
|
|
|
13,918
|
|
|
|
-
|
|
|
|
(21,134
|
)
|
|
|
4,317
|
|
|
|
-
|
|
Other increases (decreases) (*)
|
|
|
-
|
|
|
|
(562
|
)
|
|
|
(1,818
|
)
|
|
|
4,492
|
|
|
|
(151
|
)
|
|
|
(67
|
)
|
|
|
3
|
|
|
|
-
|
|
|
|
(12,170
|
)
|
|
|
(4,756
|
)
|
|
|
(15,029
|
)
|
Total changes
|
|
|
35
|
|
|
|
(9,344
|
)
|
|
|
(46,792
|
)
|
|
|
990
|
|
|
|
(1,520
|
)
|
|
|
(273
|
)
|
|
|
5,737
|
|
|
|
(7,579
|
)
|
|
|
40,133
|
|
|
|
(43,370
|
)
|
|
|
(61,983
|
)
|
Final balance
|
|
|
34,624
|
|
|
|
119,031
|
|
|
|
346,669
|
|
|
|
15,756
|
|
|
|
6,996
|
|
|
|
5,895
|
|
|
|
85,764
|
|
|
|
33,813
|
|
|
|
191,964
|
|
|
|
781,081
|
|
|
|
1,621,593
|
|
(*) The net balance of other increases (decreases)
corresponds to: 1) investment plan expenses which are expensed to profit or loss (forming part of cost of sales and other expenses
per function, as appropriate), 2) the variation representing the purchase and use of materials and spare parts and 3) projects
corresponding mainly to exploration expenditures and stain development.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 14
|
Property, plant and equipment (continued)
|
|
14.2
|
Reconciliation of changes in property, plant and equipment
by type, continued:
|
Reconciliation entries of changes in
property, plant and equipment by type as
of December 31, 2015, gross
|
|
Land
|
|
|
Buildings
|
|
|
Machinery
|
|
|
Transport
equipment
|
|
|
Furniture and
fixtures
|
|
|
Office
equipment
|
|
|
Production
plants
|
|
|
Mining assets
|
|
|
Constructions
in progress
|
|
|
Other property,
plant and
equipment
|
|
|
Property,
plant and
equipment
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
34,622
|
|
|
|
240,356
|
|
|
|
1,145,426
|
|
|
|
78,402
|
|
|
|
32,082
|
|
|
|
35,512
|
|
|
|
171,277
|
|
|
|
225,917
|
|
|
|
237,321
|
|
|
|
1,711,266
|
|
|
|
3,912,181
|
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
49
|
|
|
|
933
|
|
|
|
1,109
|
|
|
|
32
|
|
|
|
28
|
|
|
|
1,338
|
|
|
|
-
|
|
|
|
-
|
|
|
|
145,376
|
|
|
|
4,122
|
|
|
|
152,987
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,193
|
)
|
|
|
(369
|
)
|
|
|
(9,581
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
(82
|
)
|
|
|
-
|
|
|
|
(53
|
)
|
|
|
(23
|
)
|
|
|
-
|
|
|
|
(104
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(180
|
)
|
|
|
(443
|
)
|
Reclassification
|
|
|
-
|
|
|
|
23,355
|
|
|
|
68,187
|
|
|
|
3,742
|
|
|
|
5,382
|
|
|
|
1,585
|
|
|
|
491
|
|
|
|
2,324
|
|
|
|
(178,445
|
)
|
|
|
88,703
|
|
|
|
15,324
|
|
Other increases (decreases) (*)
|
|
|
|
|
|
|
1
|
|
|
|
(2,729
|
)
|
|
|
(2,169
|
)
|
|
|
|
|
|
|
(45
|
)
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
(43,227
|
)
|
|
|
973
|
|
|
|
(47,196
|
)
|
Total changes
|
|
|
(33
|
)
|
|
|
24,289
|
|
|
|
66,501
|
|
|
|
1,577
|
|
|
|
5,410
|
|
|
|
2,773
|
|
|
|
492
|
|
|
|
2,323
|
|
|
|
(85,490
|
)
|
|
|
93,249
|
|
|
|
111,091
|
|
Final balance
|
|
|
34,589
|
|
|
|
264,645
|
|
|
|
1,211,927
|
|
|
|
79,979
|
|
|
|
37,492
|
|
|
|
38,285
|
|
|
|
171,7689
|
|
|
|
228,240
|
|
|
|
151,831
|
|
|
|
1,804,515
|
|
|
|
4,023,272
|
|
Reconciliation entries of changes in
property, plant and equipment by type as
of December 31, 2015, Accumulated
depreciation
|
|
Land
|
|
|
Buildings
|
|
|
Machinery
|
|
|
Transport
equipment
|
|
|
Furniture and
fixtures
|
|
|
Office
equipment
|
|
|
Production
plants
|
|
|
Mining assets
|
|
|
Constructions
in progress
|
|
|
Other property,
plant and
equipment
|
|
|
Property,
plant and
equipment
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
-
|
|
|
|
(115,954
|
)
|
|
|
(791,878
|
)
|
|
|
(64,227
|
)
|
|
|
(23,066
|
)
|
|
|
(29,147
|
)
|
|
|
(62,504
|
)
|
|
|
(142,585
|
)
|
|
|
-
|
|
|
|
(794,866
|
)
|
|
|
(2,024,227
|
)
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation expense
|
|
|
-
|
|
|
|
(13,945
|
)
|
|
|
(94,006
|
)
|
|
|
(15,575
|
)
|
|
|
(4,250
|
)
|
|
|
(3,051
|
)
|
|
|
(7,594
|
)
|
|
|
(15,236
|
)
|
|
|
-
|
|
|
|
(114,611
|
)
|
|
|
(268,268
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
16
|
|
|
|
-
|
|
|
|
66
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30
|
|
|
|
113
|
|
Reclassification
|
|
|
-
|
|
|
|
(5,348
|
)
|
|
|
70,419
|
|
|
|
24,887
|
|
|
|
(433
|
)
|
|
|
2
|
|
|
|
(21,644
|
)
|
|
|
(29,027
|
)
|
|
|
-
|
|
|
|
(54,180
|
)
|
|
|
(15,324
|
)
|
Other increases (decreases) (*)
|
|
|
-
|
|
|
|
(1,024
|
)
|
|
|
(3,001
|
)
|
|
|
(10,314
|
)
|
|
|
(1,227
|
)
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
(16,437
|
)
|
|
|
(31,990
|
)
|
Total changes
|
|
|
-
|
|
|
|
(20,316
|
)
|
|
|
(26,588
|
)
|
|
|
(986
|
)
|
|
|
(5,910
|
)
|
|
|
(2,970
|
)
|
|
|
(29,238
|
)
|
|
|
(44,263
|
)
|
|
|
-
|
|
|
|
(185,198
|
)
|
|
|
(315,469
|
)
|
Final balance
|
|
|
-
|
|
|
|
(136,270
|
)
|
|
|
(818,466
|
)
|
|
|
(65,213
|
)
|
|
|
(28,976
|
)
|
|
|
(32,117
|
)
|
|
|
(91,742
|
)
|
|
|
(186,848
|
)
|
|
|
-
|
|
|
|
(980,064
|
)
|
|
|
(2,339,696
|
)
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 14
|
Property, plant and equipment (continued)
|
|
14.2
|
Reconciliation of changes in property, plant and equipment
by type, continued:
|
Reconciliation entries of changes in
property, plant and equipment by type as
of December 31, 2015, net
|
|
Land
|
|
|
Buildings
|
|
|
Machinery
|
|
|
Transport
equipment
|
|
|
Furniture and
fixtures
|
|
|
Office
equipment
|
|
|
Production
plants
|
|
|
Mining assets
|
|
|
Constructions
in progress
|
|
|
Other property,
plant and
equipment
|
|
|
Property,
plant and
equipment
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
34,622
|
|
|
|
124,402
|
|
|
|
353,548
|
|
|
|
14,175
|
|
|
|
9,016
|
|
|
|
6,365
|
|
|
|
108,773
|
|
|
|
83,332
|
|
|
|
237,321
|
|
|
|
916,400
|
|
|
|
1,887,954
|
|
Changes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
49
|
|
|
|
933
|
|
|
|
1,109
|
|
|
|
32
|
|
|
|
28
|
|
|
|
1,338
|
|
|
|
-
|
|
|
|
-
|
|
|
|
145,376
|
|
|
|
4,122
|
|
|
|
152,987
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,193
|
)
|
|
|
(369
|
)
|
|
|
(9,581
|
)
|
Depreciation expense
|
|
|
-
|
|
|
|
(13,945
|
)
|
|
|
(94,006
|
)
|
|
|
(15,575
|
)
|
|
|
(4,250
|
)
|
|
|
(3,051
|
)
|
|
|
(7,594
|
)
|
|
|
(15,236
|
)
|
|
|
-
|
|
|
|
(114,611
|
)
|
|
|
(268,268
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
(82
|
)
|
|
|
1
|
|
|
|
(53
|
)
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(38
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(150
|
)
|
|
|
(330
|
)
|
Reclassification
|
|
|
-
|
|
|
|
18,007
|
|
|
|
138,606
|
|
|
|
28,629
|
|
|
|
4,949
|
|
|
|
1,587
|
|
|
|
(21,153
|
)
|
|
|
(26,703
|
)
|
|
|
(178,445
|
)
|
|
|
34,523
|
|
|
|
-
|
|
Other increases (decreases) (*)
|
|
|
-
|
|
|
|
(1,023
|
)
|
|
|
(5,730
|
)
|
|
|
(12,483
|
)
|
|
|
(1,227
|
)
|
|
|
(32
|
)
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
(43,227
|
)
|
|
|
(15,464
|
)
|
|
|
(79,186
|
)
|
Total changes
|
|
|
(33
|
)
|
|
|
3,973
|
|
|
|
39,913
|
|
|
|
591
|
|
|
|
(500
|
)
|
|
|
(197
|
)
|
|
|
(28,746
|
)
|
|
|
(41,940
|
)
|
|
|
(85,490
|
)
|
|
|
(91,949
|
)
|
|
|
(204,378
|
)
|
Final balance
|
|
|
34,589
|
|
|
|
128,375
|
|
|
|
393,461
|
|
|
|
14,766
|
|
|
|
8,516
|
|
|
|
6,168
|
|
|
|
80,027
|
|
|
|
41,392
|
|
|
|
151,831
|
|
|
|
824,451
|
|
|
|
1,683,576
|
|
(*) The net balance of other increases (decreases)
corresponds to: 1) investment plan expenses which are expensed to profit or loss (forming part of cost of sales and other expenses
per function, as appropriate), 2) the variation representing the purchase and use of materials and spare parts 3) projects corresponding
mainly to exploration expenditures and stain development and 4) impairment costs associated with the closure of the operations
in the Pedro de Valdivia site, which are recognized in the caption Other expenses per function. The impairment amounted to ThUS$
36,823 (see Note 27.5 and Note 34).
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 14
|
Property, plant and equipment (continued)
|
|
14.3
|
Detail of property, plant and equipment pledged as guarantee
|
There are no restrictions in title or guarantees
for the compliance with obligations which affect property, plant and equipment.
|
14.4
|
Additional information
|
Interest capitalized in construction-in-progress:
The amount capitalized for this concept amounted
to ThUS$2,453 as of June 30, 2016 and ThUS$ 4,466 as of December 31, 2015.
Financing costs are not capitalized for periods
which exceed the normal term of acquisition, construction or installation of the asset, such as the case of delays, interruptions
or temporary suspension of the project due to technical, financial or other issues, which prevent that the asset is maintained
in good conditions for its use.
|
14.5
|
Impairment of assets
|
As stated in Note 3.28, the recoverable amount
of property, plant and equipment is measured whenever there is an indication that the asset may be impaired. As of June 30, 2016
and December 31, 2015, no impairment adjustments were generated, except for that indicated in Note 34.
|
Note 15
|
Employee benefits
|
|
15.1
|
Provisions for employee benefits
|
Classes of benefits and expenses by employee
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
MUS$
|
|
|
MUS$
|
|
Current
|
|
|
|
|
|
|
|
|
Profit sharing and bonuses
|
|
|
7,980
|
|
|
|
13,445
|
|
Total
|
|
|
7,980
|
|
|
|
13,445
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
Profit sharing and bonuses
|
|
|
-
|
|
|
|
-
|
|
Severance indemnity payments
|
|
|
22,188
|
|
|
|
21,995
|
|
Total
|
|
|
22,188
|
|
|
|
21,995
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 15
|
Employee benefits (continued)
|
|
15.2
|
Policies on defined benefit plan
|
This policy is applied to all benefits received
for services provided by the Company's employees.
Short-term benefits for active employees are
represented by salaries, social welfare benefits, paid time-off, sickness leaves and other leaves, profit sharing and incentives
and non-monetary benefits; e.g., healthcare service, housing, subsidized or free goods or services. These will be paid in a term
which does not exceed twelve months.
The Company only provides compensation and
benefits to active employees, with the exemption of SQM North America which applies the definitions under 15.4 below.
SQM maintains incentive programs for its employees
based on the personal performance, the Company’s performance and other short-term, mid-term and long-term indicators.
For each incentive bonus delivered to the Company’s
employees, there will be a disbursement in the first quarter of the following year and this will be calculated based on profit
for the period at the end of each period applying a factor obtained subsequent to the employee appraisal process.
Employee benefits include retention bonuses
for the Company’s executives, which are linked to the Company’s share price and it is paid in cash. The short-term
portion is presented as provision for current employee benefits and the long-term portion as non-current.
The bonus provided to the Company’s directors
is calculated based on Profit for the period at each year-end and will consider the application of a percentage factor.
The benefit related to vacations (short-term
benefits to employees, current), which is provided in the Labor Code which indicates that employees with more than a year of service
will be entitled to annual holidays for a period not lower than fifteen paid business days. The Company provides the benefit of
two additional vacation days.
Staff severance indemnities are agreed and
payable based on the last salary for each year of service for the Company or with certain maximum limits in respect to the number
of years to be considered or in respect to monetary terms. In general, this benefit is payable when the employee or worker ceases
to provide his/her services to the Company and the right for its collection can be acquired because of different causes, as indicated
in the respective agreements; e.g., retirement, dismissal, voluntary retirement, incapacity or disability, death, etc..
Law No. 19,728 published on May 14, 2001 which
became effective on October 1, 2002 required “Compulsory Unemployment Insurance” in favor of all depending employees
regulated by the Chilean Labor Code. Article 5 of this law provided the financing of this insurance through monthly contribution
payments by both the employee and the employer.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 15
|
Employee benefits (continued)
|
|
15.3
|
Other long-term benefits
|
The other long-term benefits relate to staff severance indemnities
and are recorded at their actuarial value.
Staff severance indemnities at actuarial value
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Staff severance indemnities, Chile
|
|
|
20,984
|
|
|
|
20,883
|
|
Other obligations in companies elsewhere
|
|
|
1,204
|
|
|
|
1,112
|
|
Total other non-current liabilities
|
|
|
22,188
|
|
|
|
21,995
|
|
Staff severance indemnities have been calculated
under the actuarial assessment method of the Company’s obligations with respect to staff severance indemnities, which relate
to defined benefit plans which consist of days of remuneration per year served at the time of retirement under conditions agreed
in the respective agreements established between the Company and its employees.
Under this benefit plan, the Company retains
the obligation for the payment of staff severance indemnities related to retirements, without establishing a separate fund with
specific assets, which is referred to as not funded. The discount interest rate of expected flows to be used was 4.775%.
Benefit payment conditions
The staff severance indemnity benefit relates
to remuneration days for year worked for the Company with no limit of salary or years of services for the Company, when employees
cease to work for the Company due to turnover or death. In this case, the maximum age for men is 65 years and 60 years old for
women, which are the usual ages for retirement due to achieving the senior citizen age according to the Chilean pensions system
provided in Decree Law 3,500 of 1,980.
Methodology
The determination of the obligation for benefits
under IAS 19 Projected Benefit Obligation (PBO) is described as follows:
To determine the Company's total liability,
we used a mathematical simulation model which was programmed using a computer and which processed the situation of each employee
on an individual basis.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 15
|
Employee benefits (continued)
|
|
15.3
|
Other long-term benefits, continued
|
This model considered months as discrete time;
i.e., the Company determined the age of each person and his/her salary on a monthly basis according to the growth rate. Thus, information
on each person was simulated from the beginning of the life of his/her employment contract or when he/she started earning benefits
up to the month in which it reaches the normal retirement age, generating in each period the possible retirement according to the
Company’s turnover rate and the mortality rate according to the age reached. When he/she reaches the retirement age, the
employee finishes his/her service for the Company and receives indemnity related to retirement due to old age.
The methodology followed to determine the accrual
for all the employees adhered to agreements has considered turnover rates and the mortality rate RV-2009 established by the Chilean
Superintendence of Securities and Insurance to calculate pension-related life insurance reserves in Chile according to the Accumulated
Benefit Valuation or Accrued Cost of Benefit Method. This methodology is established in IAS 19 on Retirement Benefit Costs.
|
15.4
|
Post-employment benefit obligations
|
Our subsidiary SQM North America, has established
with its employees, a pension plan until 2002 called “SQM North America Retirement Income Plan”, whereby obligation
is calculated measuring the expected future forecasted staff severance indemnity obligation using a net salary gradual rate of
restatements for inflation, mortality and turnover assumptions discounting the resulting amounts at present value using the interest
rate defined by the authorities.
Since 2003, SQM North America offers to its
employee benefits related to pension plans based on the 401-K system, which do not generate obligations for the Company.
|
15.5
|
Staff severance indemnities
|
As of June 30, 2016 and December 31, 2015, severance indemnities
calculated at the actuarial value are as follows:
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Opening balance
|
|
|
(21,995
|
)
|
|
|
(30,952
|
)
|
Current cost of service
|
|
|
(495
|
)
|
|
|
(898
|
)
|
Interest cost
|
|
|
(711
|
)
|
|
|
(1,588
|
)
|
Actuarial gain/loss
|
|
|
(462
|
)
|
|
|
1,242
|
|
Exchange rate difference
|
|
|
(1,466
|
)
|
|
|
3,582
|
|
Benefits paid during the year
|
|
|
2,941
|
|
|
|
6,619
|
|
Balance
|
|
|
(22,188
|
)
|
|
|
(21,995
|
)
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 15
|
Employee benefits (continued)
|
|
15.5
|
Staff severance indemnities, continued
|
The liability recorded for staff severance indemnity is valued at
the actuarial value method, using the following actuarial assumptions:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortality rate
|
|
|
RV - 2009
|
|
|
|
RV - 2009
|
|
|
|
Actual annual interest rate
|
|
|
4.775
|
%
|
|
|
4.89
|
%
|
|
|
Voluntary retirement rotation rate:
|
|
|
|
|
|
|
|
|
|
|
Men
|
|
|
7.16
|
%
|
|
|
7.16
|
%
|
|
annual
|
Women
|
|
|
7.16
|
%
|
|
|
7.16
|
%
|
|
annual
|
Salary increase
|
|
|
3.60
|
%
|
|
|
3.60
|
%
|
|
annual
|
Retirement age:
|
|
|
|
|
|
|
|
|
|
|
Men
|
|
|
65
|
|
|
|
65
|
|
|
years
|
Women
|
|
|
60
|
|
|
|
60
|
|
|
years
|
|
b)
|
Sensitivity analysis of assumptions
|
As of June 30, 2016 and December 31, 2015,
on the actuarial calculation, the Company has conducting the sensitivity analysis of the main assumptions, determining the following:
Sensitivity analysis 06/30/2016
|
|
Effect + 100 basis points
ThUS$
|
|
|
Effect - 100 basis points
ThUS$
|
|
Discount rate
|
|
|
(1,517
|
)
|
|
|
1,558
|
|
Employee turnover rate
|
|
|
(264
|
)
|
|
|
157
|
|
Sensitivity analysis 12/31/2015
|
|
Effect + 100 basis points
ThUS$
|
|
|
Effect - 100 basis points
ThUS$
|
|
Discount rate
|
|
|
(1,437
|
)
|
|
|
1,607
|
|
Employee turnover rate
|
|
|
(250
|
)
|
|
|
148
|
|
Sensitivity relates to an increase/decrease
of 100 basis points.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 16
|
Executive compensation plan
|
Through the present date, the Company has a
compensation plan with the purpose of encouraging the Company’s executives and encourage them to stay in the Company, by
granting payments based on the change in price of SQM’s shares.
Average Share Price Spread
Plan characteristics
This compensation plan is related to the Company’s
performance through the SQM Series B share price (Santiago Stock Exchange).
Plan participants
This compensation plan includes 21 of the Company’s
executives, who obtain this benefit, provided they remain in the Company at the payment dates. Payment dates, if applicable, will
be in the first weeks of January 2016, 2017 and 2018.
Compensation
The compensation for each executive is the
differential between the average share price during each of the months of December 2015, December 2016 and December 2017, respectively,
in its equivalent in US dollars and the reference prices, of US$23.48 and the average weighted price of the trading of SQM Series
B shares in the Santiago Stock Exchange during December 2014. The differential cannot exceed US$15.00 and will be multiplied by
5,000. If the amount calculated is negative or zero, no bonus will be paid during that period, but in such case, the bond of benefit
payable in the following period to the employee will be equal to the product of multiplying the difference by 10,000. If the value
was negative or zero in December 2015 and also in December 2016, for calculating the bond of December 2017, the differential will
be multiplied by 15,000.
The movement of the options in effect for the
period, the average prices for the fiscal year of the options and the average contractual life of the options in effect as of June
30, 2016 and December 31, 2015 are the following:
Movement for the period
|
|
2016
|
|
|
2015
|
|
In effect as of January 1
|
|
|
405,000
|
|
|
|
390,000
|
|
Redundant workers
|
|
|
(15,000
|
)
|
|
|
(45,000
|
)
|
Granted during the fiscal year
|
|
|
-
|
|
|
|
60,000
|
|
In circulation
|
|
|
390,000
|
|
|
|
405,000
|
|
Average weighted contractual life
|
|
|
18 months
|
|
|
|
24 months
|
|
Executives
|
|
|
21
|
|
|
|
24
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 17
|
Disclosures on equity
|
The detail and movements in the funds of equity
accounts are shown in the consolidated statement of changes in equity.
The main object of capital management relative
to the administration of the Company’s financial debt and equity is to ensure the regular conduct of operations and business
continuity in the long term, with the constant intention of maintaining an adequate level of liquidity and in compliance with the
financial safeguards established in the debt contracts in force. Within this framework, decisions are made in order to maximize
the value of SQM.
Capital management must comply with, among
others, the limits contemplated in the Financing Policy approved Board of Directors, which establish a maximum consolidated indebtedness
level of 1.5 times the debt/equity. This limit can be exceeded only if the Company’s management has a written and previously
granted authorization issued at the Extraordinary Shareholders’ Meeting.
In addition, capital management must comply
with the external capital requirements imposed (or covenants) in its financial obligations, which regulate the indebtedness level
by 1.2 times, in its more strict level.
In conjunction with the level of indebtedness,
it is also important for the Company to maintain a comfortable profile of maturities for its financial obligations, in order to
oversee the relation between its short-term financial obligations and the long-term maturities, and the relation they have with
the Company’s asset distribution. Consequently, the Company has maintained a liquidity level of 3 times during the last periods.
The Company’s management controls capital
management based on the following ratios:
CAPITAL
MANAGEMENT
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
Description (1)
|
|
Calculation (1)
|
Net Financial Debt MUS$
|
|
|
525,307
|
|
|
|
528,649
|
|
|
Financial Debt – Financial Resources
|
|
Other current Financial Liabilities + Other Non-Current Financial Liabilities – Cash and Cash Equivalents – Other Current Financial Assets – Hedging Assets, non-current
|
Liquidity
|
|
|
4,07
|
|
|
|
3.84
|
|
|
Current Asset divided by Current Liability
|
|
Total Current Assets / Total Current Liabilities
|
Net Debt / Capitalization
|
|
|
0.18
|
|
|
|
0.18
|
|
|
Net Financial Debt divided by Total Equity
|
|
Net financial debt / ( Net financial debt + Total Equity)
|
ROE
|
|
|
8.8
|
%
|
|
|
9.1
|
%
|
|
Income divided by Total Equity
|
|
Total Income / Equity (UH 12 months)
|
ROA
|
|
|
12.8
|
%
|
|
|
13.4
|
%
|
|
EBITDA – Depreciation divided by Net Total Assets of financial resources less related parties investments
|
|
(Gross Income – Administrative Expenses)/ (Total Assets – Cash and Cash Equivalents – Other Current Financial Assets – Other Non-Current Financial Assets – Equity-accounted Investees) (UH 12 months)
|
Indebtedness
|
|
|
0.83
|
|
|
|
0.93
|
|
|
Total Liability on Equity
|
|
Total Liabilities / Total Equity
|
|
(1)
|
Assumes the absolute value of the accounting records
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 17
|
Disclosures on equity (continued)
|
|
17.1
|
Capital management, continued
|
The Company’s capital requirements change
depending on variables such as work capital requirements, of new investment financing and dividends, among others. The Company
manages its capital structure and makes adjustments on the basis of the predominant economic conditions so as to mitigate the risks
associated with adverse market conditions and take advantage of the opportunities there may be to improve the liquidity position.
There have been no changes in the capital management
objectives or policy within the years reported in this document. No breaches of external requirements of capital imposed (or covenants)
have been recorded.
|
17.2
|
Disclosures on preferred share capital
|
Issued share capital is divided into 263,196,524
fully paid and subscribed shares with no par value composed of 142,819,552 Series "A" shares and 120,376,972 Series “B”
shares, where both series are preferred shares.
The preferential voting rights for each series are detailed as follows:
Series “A”:
If the election of the Company’s President
results in a tie vote, the Company's directors may vote once again, without the vote of the director elected by the Series B shareholders.
Series “B”:
|
1)
|
A general or extraordinary shareholders' meeting may be called at the request of shareholders representing
5% of the Company's Series B shares.
|
|
2)
|
An extraordinary meeting of the Board of Directors may be called with or without the agreement
of the Company's President, at the request of the director elected by Series B shareholders.
|
As of June 30, 2016 and December 31, 2015,
the Group does not maintain shares in the parent either directly or through its companies in which it has investments.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 17
|
Disclosures on equity (continued)
|
|
17.2
|
Disclosures on preferred share capital, continued
|
Detail of types of capital in preference shares:
Type of capital in preferred shares
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Description of type of capital in
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred shares
|
|
Series A
|
|
|
Series B
|
|
|
Series A
|
|
|
Series B
|
|
Number of authorized shares
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
Number of fully subscribed and paid shares
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
Number of subscribed, partially paid shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Par value of shares in ThUS$
|
|
|
0.9435
|
|
|
|
2.8464
|
|
|
|
0.9435
|
|
|
|
2.8464
|
|
Increase (decrease) in the number of current shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Number of current shares
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
Number of shares owned by the entity or its subsidiaries or associates
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Number of shares whose issuance is reserved due to the existence of options or agreements to dispose shares
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Capital amount in shares ThUS$
|
|
|
134,750
|
|
|
|
342,636
|
|
|
|
134,750
|
|
|
|
342,636
|
|
Amount of premium issuance ThUS$
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Amount of reserves ThUS$
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total number of subscribed shares, total
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
|
|
142,819,552
|
|
|
|
120,376,972
|
|
As of June 30, 2016 and December 31, 2015, the Company has not placed
any new issuances of shares on the market.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 17
|
Disclosures on equity (continued)
|
|
17.3
|
Disclosures on reserves in equity
|
As of June 30, 2016 and December 31, 2015, this caption comprises
the following:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Reserve for currency exchange conversion
|
|
|
(13,586
|
)
|
|
|
(14,035
|
)
|
Reserve for cash flow hedges
|
|
|
(1,910
|
)
|
|
|
(1,699
|
)
|
Reserve for actuarial gains or losses in defined benefit plans
|
|
|
(3,178
|
)
|
|
|
(2,386
|
)
|
Other reserves
|
|
|
(847
|
)
|
|
|
(1,677
|
)
|
Total other reserves
|
|
|
(19,521
|
)
|
|
|
(19,797
|
)
|
Reserves for currency exchange conversion
This balance reflects retained earnings for
changes in the exchange rate when converting financial statements of subsidiaries whose functional currency is from each company’s
origin country and the presentation currency is the US dollar.
Reserve for cash flow hedges
The Company maintains, as hedge instruments,
financial derivatives related to obligations with the public issued in UF and Chilean pesos. Changes from the fair value of derivatives
designated and classified as hedges are recognized under this classification.
Reserve for actuarial gains or losses in
defined benefit plans
For the domestic subsidiaries the effects of
changes in assumptions are considered, mainly changes in the discount rate.
The subsidiary SQM North America has established
pension plans for its retired employees that are calculated by measuring the projected obligation of IAS using a net salary progressive
rate net of adjustments to inflation, mortality and turnover assumptions, deducting the resulting amounts at present value using
a 5.5% interest rate for 2016 and 2015.
Other reserves
Corresponds to the acquisition of the subsidiary
SQM Iberian S.A., which was already under ownership of the Company at the acquisition date (IAS 27 R).
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 17
|
Disclosures on equity (continued)
|
As required by Article 79 of the Chilean Companies
Act, unless otherwise decided by unanimous vote of the holders of issued and subscribed shares, we must distribute a cash dividend
in an amount equal to at least 30% of our consolidated Profit for the period for year ended as of December 31, unless and except
to the extent it has a deficit in retained earnings (losses not absorbed in prior years).
The Company’s dividend policy for 2016
is as follows:
|
-
|
Distribution and payment in favor of each shareholder of a final dividend which will be equivalent
to 50% of Profit for the period obtained in 2016.
|
|
-
|
Distribution and payment, if possible during 2016, of a provisional dividend which will be recorded
against the aforementioned final dividend. This provisional dividend will be paid probably during the last quarter of 2016 and
its amount could not exceed 50% of the retained earnings for distribution obtained during 2016, which are reflected in the Company’s
financial statements as of September 30, 2016.
|
|
-
|
The distribution and payment by the Company of the remaining balance of the final dividend related
to Profit for the period for the 2016 commercial year in up to two installments, which will have to be effectively paid and distributed
prior to June 30, 2017.
|
|
-
|
An amount equivalent to the remaining 50% of the Company’s Profit for the period for 2016
will be retained and destined to the financing of operations of one or more of the Company’s investment projects with no
prejudice of the possible future capitalization of the entirety or a portion of this.
|
|
-
|
The Board of Directors does not consider the payment of any additional dividends.
|
|
-
|
The Board of Directors does not consider the payment of any interim dividends
|
|
-
|
The Board of Directors considers as necessary to indicate that the aforementioned dividends policy
corresponds to the intention or expectation of the Board regarding this matter. Consequently, the enforcement of such dividends
policy is necessarily conditioned to net incomes finally obtained, to the results indicating the Company’s regular forecasts
or the existence of certain conditions that could affect them. Notwithstanding the above and to the extent that such policy dividend
does not suffer a significant change, SQM S.A. will timely communicate its shareholders on this matter.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 17 -
|
Disclosures on equity (continued)
|
|
17.5
|
Provisional dividends
|
On November 17, 2015, the Company reported
to the Chilean Superintendence of Securities and Insurance that the Company’s Board of Directors at the Ordinary meeting
held today agreed to approve that the Company pays and distributes the provisional dividend referred to in the “Dividend
Policy of SQM S.A. for Commercial Year 2015”, which was reported at the Shareholders’ Annual Ordinary Meeting held
on April 24, 2015.
Consequently, SQM will pay and distribute,
starting on December 10, 2015, a provisional dividend of US$0.31915 per share that is equivalent to a total of approximately US$84,000,000
or 49.82889% of net profit for distribution for commercial year 2015, accumulated as of December 31, 2015. This will be made with
a charge to profit for such commercial year in favor of the Shareholders registered with the Company’s Shareholders’
Register on the fifth business day prior to December 10, 2015 and in its equivalent amount in Chilean pesos converted at the “Observed
U.S. dollar” or “U.S. dollar” exchange rate as published in the Official Gazette of December 3, 2015.
At the Fortieth General Ordinary Shareholders’
Meeting of April 24, 2015, the shareholders approved the payment of a final dividend of US$ 0.56304 per share from profit for the
year 2014. Such final dividend amount is to be discounted the provisional dividend of US$ 0.41493 per share already paid. Accordingly,
the remaining balance of US$ 0.14811 per share shall be paid and distributed in favor of the Company’s shareholders who are
registered with the related Shareholders’ Record on the fifth business day prior to the day in which such dividend will be
paid. Such amount, if applicable, will be paid in Chilean pesos in accordance with the “Observed U.S. dollar exchange rate”
or “U.S. dollar exchange rate” as published in the Official Gazette on April 24, 2015.
Dividends presented deducted from equity are:
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Dividends attributable to owners of the parent
|
|
|
1,243
|
|
|
|
85,945
|
|
Contingent dividend
|
|
|
150,000
|
|
|
|
-
|
|
Dividends payable
|
|
|
70,895
|
|
|
|
23,887
|
|
Total
|
|
|
222,138
|
|
|
|
109,832
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 18
|
Provisions and other non-financial liabilities
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
Current
|
|
|
Non-
current
|
|
|
Total
|
|
|
Current
|
|
|
Non-
current
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for legal complaints (*)
|
|
|
18,067
|
|
|
|
3,000
|
|
|
|
21,067
|
|
|
|
18,067
|
|
|
|
3,000
|
|
|
|
21,067
|
|
Provision for dismantling, restoration and rehabilitation cost (**)
|
|
|
-
|
|
|
|
5,890
|
|
|
|
5,890
|
|
|
|
-
|
|
|
|
5,890
|
|
|
|
5,890
|
|
Other provisions
|
|
|
15,083
|
|
|
|
-
|
|
|
|
15,083
|
|
|
|
13,445
|
|
|
|
-
|
|
|
|
13,445
|
|
Total
|
|
|
33,150
|
|
|
|
8,890
|
|
|
|
42,040
|
|
|
|
31,512
|
|
|
|
8,890
|
|
|
|
40,402
|
|
(*) Provisions for legal complaints relate
to legal expenses for lawsuits whose resolution are pending, and correspond to funds estimated necessary to make the disbursement
of expenses incurred for this purpose. This provision relates mainly to the litigation of its subsidiary located in Chile, Brazil
and the United States (see note 19.1).
(**) Such provision is calculated considering
the instructions issued by the regulating agency (Servicio Nacional de Geología y Minería de Chile, Sernageomin (The
Chilean National Geology and Mining Service).
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 18
|
Provisions and other non-financial liabilities (continued)
|
|
18.2
|
Description of other provisions
|
Current provisions, other short-term provisions
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Provision for tax loss in fiscal litigation
|
|
|
742
|
|
|
|
610
|
|
Royalties, agreement with CORFO (the Chilean Economic Development Agency)
|
|
|
9,703
|
|
|
|
6,310
|
|
Provision for additional tax related to foreign loans
|
|
|
555
|
|
|
|
524
|
|
Provision for article No. 21 one-off tax, fines and value-added tax
|
|
|
-
|
|
|
|
1,449
|
|
Miscellaneous provisions
|
|
|
4,083
|
|
|
|
4,552
|
|
Total
|
|
|
15,083
|
|
|
|
13,445
|
|
Other long-term provisions
|
|
|
|
|
|
|
|
|
Mine closure
|
|
|
5,890
|
|
|
|
5,890
|
|
Total
|
|
|
5,890
|
|
|
|
5,890
|
|
|
18.3
|
Other non-financial liabilities, current
|
Description of other liabilities
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Tax withholdings
|
|
|
901
|
|
|
|
5,946
|
|
VAT payable
|
|
|
1,800
|
|
|
|
6,677
|
|
Guarantees received
|
|
|
748
|
|
|
|
748
|
|
Accrual for dividend
|
|
|
70,894
|
|
|
|
23,887
|
|
Monthly tax provisional payments
|
|
|
6,389
|
|
|
|
5,985
|
|
Deferred income
|
|
|
16,670
|
|
|
|
9,764
|
|
Withholdings from employees and salaries payable
|
|
|
4,900
|
|
|
|
3,459
|
|
Accrued vacations
|
|
|
14,016
|
|
|
|
13,171
|
|
Other current liabilities
|
|
|
237
|
|
|
|
329
|
|
Total
|
|
|
116,555
|
|
|
|
69,966
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 18
|
Provisions and other non-financial liabilities (continued)
|
|
18.4
|
Changes in provisions
|
|
|
06/30/2016
|
|
Description of items that gave rise to variations
|
|
Guarantee
|
|
|
Restructuring
|
|
|
Legal
complaints
|
|
|
Onerous
contracts
|
|
|
Provision for
dismantling,
restoration and
rehabilitation
cost
|
|
|
Other
provisions
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions, initial balance
|
|
|
-
|
|
|
|
-
|
|
|
|
21,067
|
|
|
|
-
|
|
|
|
5,890
|
|
|
|
13,445
|
|
|
|
40,402
|
|
Changes in provisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional provisions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,471
|
|
|
|
7,471
|
|
Provision used
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,937
|
)
|
|
|
(5,937
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
104
|
|
|
|
104
|
|
Total provisions, final balance
|
|
|
-
|
|
|
|
-
|
|
|
|
21,067
|
|
|
|
-
|
|
|
|
5,890
|
|
|
|
15,083
|
|
|
|
42,040
|
|
|
|
12/31/2015
|
|
Description of items that gave rise to variations
|
|
Guarantee
|
|
|
Restructuring
(*)
|
|
|
Legal
complaints
|
|
|
Onerous
contracts
|
|
|
Provision for
dismantling,
restoration and
rehabilitation
cost
|
|
|
Other
provisions
|
|
|
Total
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provisions, initial balance
|
|
|
-
|
|
|
|
-
|
|
|
|
22,567
|
|
|
|
-
|
|
|
|
5,890
|
|
|
|
8,180
|
|
|
|
36,637
|
|
Changes in provisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional provisions
|
|
|
-
|
|
|
|
16,327
|
|
|
|
8,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,733
|
|
|
|
39,560
|
|
Provision used
|
|
|
-
|
|
|
|
(16,327
|
)
|
|
|
(10,000
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,111
|
)
|
|
|
(35,438
|
)
|
Increase(decrease) in foreign currency exchange
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(357
|
)
|
|
|
(357
|
)
|
Total provisions, final balance
|
|
|
-
|
|
|
|
-
|
|
|
|
21,067
|
|
|
|
-
|
|
|
|
5,890
|
|
|
|
13,445
|
|
|
|
40,402
|
|
(*) Provisions relating to restructuring in 2015 are related to
the closure of the Pedro de Valdivia site. See Note 34.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 18
|
Provisions and other non-financial liabilities (continued)
|
|
18.5
|
Detail of main types of provisions
|
Legal expenses:
This provision depends
on the pending resolution of a legal lawsuit, to pay the expenses associated to and incurred during such lawsuit (incurred mainly
in Brazil, Chile and the United States).
Tax accrual in tax litigation:
This
accrual relates to lawsuits pending resolution related to taxes in Brazil for two of our subsidiaries, SQM Brazil and NNC.
CORFO (Economic Development Agency) Royalties
agreement:
Relates to the commercialization of mining properties that SQM Salar S.A. pays the Economic Development Agency for
on a quarterly basis. The amount of the lease payable is calculated based on sales of products extracted from the Atacama Saltpeter
deposit.
The settlement of the aforementioned amounts
is performed on a quarterly basis.
To date, the Company and its subsidiaries
have no significant uncertainties about the timing and amount of one class of provision.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions
|
According to note 18.1 the Company has only
registered a provision for the lawsuits in which the probability that judgments are unfavorable for the Company is more likely
than not. The Company is party to lawsuits and other relevant legal actions that are detailed as follows:
|
19.1
|
Lawsuits and other relevant events
|
1.
|
Plaintiff
|
:
|
Nancy Erika Urra Muñoz.
|
|
Defendants
|
:
|
Fresia Flores Zamorano, Duratec-Vinilit S.A. and SQM S.A. and their Insurers.
|
|
Date
|
:
|
December 2008.
|
|
Court
|
:
|
1st Civil Court of Santiago.
|
|
Reason
|
:
|
Labor Accident.
|
|
Status
|
:
|
Subpoena to hear the verdict.
|
|
Nominal value
|
:
|
ThUS$550.
|
|
|
|
|
2.
|
Plaintiff
|
:
|
City of Pomona, California USA.
|
|
Defendant
|
:
|
SQM North America Corporation.
|
|
Date
|
:
|
December 2010.
|
|
Court
|
:
|
United States District Court Central District of California.
|
|
Reason
|
:
|
Payment of expenses and other amount related to the treatment of groundwater to allow for consumption by removing the existing perchlorate in such groundwater and that supposedly come from Chilean fertilizer.
|
|
Status
|
:
|
The Jury rejected the lawsuit. The plaintiff files an appeal, the resolution of which is pending.
|
|
Nominal value
|
:
|
ThUS$32,000.
|
|
|
|
|
3.
|
Plaintiff
|
:
|
City of Lindsay, California USA.
|
|
Defendant
|
:
|
SQM North America Corporation The lawsuit also was filed against Sociedad Química y Minera de Chile S.A. this lawsuit has not yet been notified to the Company.
|
|
Date
|
:
|
December 2010.
|
|
Court
|
:
|
United States District Court Eastern District of California.
|
|
Reason
|
:
|
Payment of expenses and other amount related to the treatment of groundwater to allow for consumption by removing the existing perchlorate in such groundwater and that supposedly come from Chilean fertilizer.
|
|
Status
|
:
|
Claim. Processing suspended.
|
|
Nominal value
|
:
|
Not possible to determine.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.1
|
Lawsuits and other relevant events, continued
|
4.
|
Plaintiff
|
:
|
H&V Van Mele N.V.
|
|
Defendant
|
:
|
SQM Europe N.V. and its insurance companies.
|
|
Date
|
:
|
July 2013.
|
|
Court
|
:
|
Commercial Court.
|
|
Reason
|
:
|
Alleged indirect responsibility for the absence of adequate specification for the SOP–WS by the Belgian distributor.
|
|
Status
|
:
|
Evidence.
|
|
Nominal value
|
:
|
ThUS$430.
|
|
|
|
|
5.
|
Plaintiff
|
:
|
Carlos Aravena Carrizo et al.
|
|
Defendant
|
:
|
SQM Nitratos S.A. and its insurers.
|
|
Date
|
:
|
May 2014.
|
|
Court
|
:
|
18th Civil Court of Santiago.
|
|
Reason
|
:
|
Compensation claim for alleged civil liability under tort as a result of an explosion that occurred on September 6, 2010 near Baquedano, causing the death of 6 workers. Transactions performed with the families of five of such workers.
|
|
Status
|
:
|
Evidence.
|
|
Nominal value
|
:
|
ThUS$500.
|
|
|
|
|
6.
|
Plaintiff
|
:
|
Corporación de Fomento de la Producción (CORFO).
|
|
Defendant
|
:
|
SQM Salar S.A. and Sociedad Química y Minera de Chile S.A.
|
|
Date
|
:
|
May 2014.
|
|
Court
|
:
|
Arbitration court.
|
|
Reason
|
:
|
Early termination of lease agreement entered into on November 12, 1993 maturing on December, 2030 -i- because of alleged noncompliance of the full payment of quarterly income related to certain products between 2009-2013 and -ii- and alleged lack of demarcation of certain mining properties owned by CORFO for which a demarcation was never required in such agreement, and in addition, compensation for damages, among other matters.
|
|
Status
|
:
|
Evidence.
|
|
Nominal value
|
:
|
ThUS$9,000.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.1
|
Lawsuits and other relevant events, continued
|
7.
|
Plaintiff
|
:
|
CORFO
|
|
Defendants
|
:
|
SQM Salar S.A, SQM Potasio S.A. and SQM S.A.
|
|
Date
|
:
|
August 2016.
|
|
Court
|
:
|
Arbitration Court- Arbitrator Mr. Héctor Humeres.
|
|
Reason
|
:
|
Project early termination entered on November 12, 1993 and other related contracts among other matters involving compensation for damages.
|
|
Status
|
:
|
Demand filed.
|
|
Nominal value
|
:
|
Not determined.
|
|
|
|
|
8.
|
Plaintiff
|
:
|
SQM Salar S.A and SQM S.A.
|
|
Defendant
|
:
|
CORFO
|
|
Date
|
:
|
Not determined.
|
|
Court
|
:
|
Arbitration Court - Arbitrator Mr. Héctor Humeres.
|
|
Reason
|
:
|
Complaint for declaratory relief for the determination of whether the income from the lease paid by SQM Salar S.A. under the Lease Contract entered into on November 12, 1993, has been consistent with the agreement by the parties and the income formula as applied and has been useful for CORFO.
|
|
Status
|
:
|
Constitution of the arbitration proceeding where the establishment of the Rules of procedure is pending.
|
|
Nominal value
|
:
|
Not yet defined.
|
|
|
|
|
9.
|
Plaintiff
|
:
|
Evt Consulting SpA.
|
|
Defendant
|
:
|
SQM Nitratos S.A.
|
|
Date
|
:
|
October 2014.
|
|
Court
|
:
|
23th Civil Court of Santiago.
|
|
Reason
|
:
|
Lawsuit seeking compensation for damages related to the termination of the purchase and sale agreement for metallic structures.
|
|
Status
|
:
|
Evidence.
|
|
Nominal value
|
:
|
ThUS$ 835.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.1
|
Lawsuits and other relevant events, continued
|
10.
|
Plaintiff
|
:
|
Hugo Gutiérrez Gálvez.
|
|
Defendant
|
:
|
Sociedad Química y Minera de Chile S.A. et al and Senators Jaime Orpis B. and Fulvio Rossi C.
|
|
Date
|
:
|
July 2015.
|
|
Court
|
:
|
8
th
Supervisory Court in Preliminary Proceedings of Santiago, Chile
|
|
Reason
|
:
|
Alleged extortion–bribery and money laundering under Law No. 20.393 on the Legal Responsibility of Juridical Persons and other standards.
|
|
Status
|
:
|
Initial filing.
|
|
Nominal value
|
:
|
None.
|
|
|
|
|
11.
|
Plaintiff
|
:
|
Patricio Contesse G.
|
|
Defendant
|
:
|
SQM S.A.
|
|
Date
|
:
|
September 2015.
|
|
Court
|
:
|
First Labor Court of Santiago.
|
|
Reason
|
:
|
Seeking the payment of severance indemnities
and other employment termination benefits.
|
|
Status
|
:
|
Appeal
|
|
Nominal value
|
:
|
ThUS$5,665.
|
|
|
|
|
12.
|
Plaintiff
|
:
|
SQMS
|
|
Defendant
|
:
|
RSA Seguros Chile S.A.
|
|
Date
|
:
|
In August 2016.
|
|
Court
|
:
|
Arbitration Court – Arbitrator Mr. Gonzalo Fernández.
|
|
Reason
|
:
|
Complaint for forced compliance and collection of indemnification for insurance claim of February 7 and 8, 2013.
|
|
Status
|
:
|
Arbitration proceeding constituted. The complaint will be presented in the near future.
|
|
Nominal value
|
:
|
US$ 20,657,860.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.1
|
Lawsuits and other relevant events, continued
|
13.
|
Plaintiff
|
:
|
Tyne and Wear Pension Fund as represented by the Council of the Borough of South Tyneside acting as Lead Plaintiff – Class Action – Class Period.
|
|
Defendant
|
:
|
Sociedad Química y Minera de Chile S.A.
|
|
Date
|
:
|
January 2016.
|
|
Court
|
:
|
United States District Court – Southern District of New York.
|
|
Reason
|
:
|
Class Actions – Class Period. SQM would have not reported properly to the US Securities and Exchange Commission on certain expenses made during certain years which could be associated with alleged contributions to politicians. Such expenses would not have the related supporting documentation for being substantiated as necessary to generate income and this would have generated the intervention by several Chilean Government authorities – the Chilean Superintendence of Securities and Insurance (SVS), the Chilean Internal Revenue Service and Public Ministry – and the decrease of the value of the shares –ADS’s of SQM owned by the plaintiffs.
|
|
Status
|
:
|
Filing of the class action.
|
|
Nominal value
|
:
|
Not determined.
|
The Company and its subsidiaries have been involved and will probably
continue to be involved either as plaintiffs or defendants in certain judicial proceedings that have been and will be heard by
the Arbitration or Ordinary Courts of Justice that will make the final decision. Those proceedings that are regulated by the appropriate
legal regulations are intended to exercise or oppose certain actions or exceptions related to certain mining claims either granted
or to be granted and that do not or will not affect in an essential manner the development of the Company and its subsidiaries.
Soquimich Comercial S.A. has been involved
and will probably continue being involved either as plaintiff or defendant in certain judicial proceedings through which it intends
to collect and receive the amounts owed, the total nominal value of which is approximately ThUS$700.
The Company has made efforts and continues
making efforts to obtain payment of certain amounts that are still owed it on occasion of their activities. Such amounts will continue
to be required using judicial or non-judicial means by the plaintiffs, and the actions and exercise related to these are currently
in full force and effect.
The Company and its subsidiaries have not received
legal notice of any claims other than those mentioned in paragraph I above. The claims detailed above seek to annul certain mining
claims that were purchased by SQM S.A. and Subsidiaries, the proportional purchase value of which, with respect to the portion
affected by the superimposition, exceeds the nominal and approximate amount of ThUS$150. The claims seek payment of certain amounts
allegedly owed by the Company due to its own activities, which exceed the approximate, nominal and individual amount of ThUS$150.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.2
|
Restrictions to management or financial limits
|
Credit contracts subscribed by the SQM Group
with domestic and foreign banks and the issuance of bonuses in the local and international market require that the Company comply
with the following level of consolidated financial indicators, calculated for a moving period which considers the last twelve months:
|
-
|
To maintain a minimum equity of ThUS$1,000,000.
|
|
-
|
To maintain a Net Financial Debt and EBITDA ratio not higher than 3 times.
|
|
-
|
To maintain a Total Indebtedness Ratio not higher than 1.2 times Total Indebtedness level defined
as the Total Liabilities ratio divided by Total Equity.
|
|
-
|
To maintain a ratio between the operating subsidiaries SQM Industrial S.A. and SQM Salar S.A.,
or their respective legal successor financial debt and the total Issuer’s consolidated current assets not higher than 0.3
times.
|
As of June 30, 2016, the aforementioned financial
indicators are as follows:
Indicator
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Equity ThUS$
|
|
|
2,320,905
|
|
|
|
2,400,356
|
|
Net Financial Debt/ EBITDA
|
|
|
0.77
|
|
|
|
0.73
|
|
Indebtedness
|
|
|
0.83
|
|
|
|
0.93
|
|
SQM Industrial and SQM Salar debt / Current assets
|
|
|
0.02
|
|
|
|
0.01
|
|
Issuance contracts for bonuses issued abroad
does not require that the Company merge or dispose at any title the asset as a whole or as a substantial part of it, unless the
following copulative conditions are met: (i) the legal successor company is an entity subject to Chilean or American laws, and
assumes under a complimentary contract the Company’s obligations, (ii) the Issuer does not fail to comply immediately after
the merge or disposal, and (iii) the Issuer delivers a legal opinion stating the merge or disposal and the complimentary contract
meet the requirements described in the original contract.
In addition, SQM S.A. is committed to disclose
financial information on quarterly basis.
The Company and its subsidiaries have complied
and are fully complying with all aforementioned limitations, restrictions and obligations.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
The subsidiary SQM Salar S.A. has signed a
rental contract with the Economic Development Agency (CORFO), which establishes that the subsidiary will pay rent to CORFO for
the concept of commercialization of certain mining properties owned by CORFO and for the products resulting from the commercialization.
The annual rent stated in the aforementioned contract is calculated on the basis of sales of each type of product. The contract
is in force until 2030, and rent began being paid in 1996 reflecting an expense amount of ThUS$ 18,058 as of June 30, 2016 (ThUS$
23,155 as of December 31, 2015).
On 15 November 2013, Corporación de
Fomento de la Producción (CORFO) sent a letter to SQM Salar S.A. (SQMS) stating its intention to a) collect the amount of
Ch$2,530,298,919 (ThUS$4,823) that in CORFO’s opinion, SQMS would owe to it for the calculation and payment of rental payments
according to the “Lease Agreement of OMA Mining Claims located in the Atacama Salt Flat” entered into between CORFO
and SQMS on November 12, 1993 (the AGREEMENT) and b) require the constitution of an instance of arbitration stated in the AGREEMENT
with the purpose that the arbitrator appointed by the “Arbitration Center of the Santiago Chamber of Commerce” determines
if other alleged lease payment obligations may exist that SQMS could owe to CORFO under the AGREEMENT.
During May 2014, CORFO filed a lawsuit against
SQMS requesting the early termination of the agreement and other requests explained in Note 19.1. Such lawsuit is currently being
processed.
SQMS differs completely form CORFO’s
claims. In fact, the AGREEMENT has been in force for more than 20 years and during all this time, SQMS has paid to CORFO more than
80 quarterly payments in their entirety and on a timely basis that CORFO has received satisfactorily.
In our legal advisors’ opinion, there
are no legal grounds to early terminate the lease agreement as –i- noncompliance on which the lawsuit is based do not exist
and, if any, -ii- these are not gross or essential or hinder the purpose of the agreement –iii- the company has never had
the intention of deceiving and has always been fully transparent in providing the information delivered. On the contrary, the conflict
solely corresponds to a discussion on the right formula to calculate the rent amount.
The total amount finally requested by CORFO
was at least US$ 8,940,829 – plus interests and costs – and the arbitration proceeding is close to the beginning of
the evidentiary stage. CORFO and SQMS waived all recourses against the judgment provided by the arbitrator. However, it is not
possible to discard the filing of a complaint appeal or an appeal in cassation alleging incompetence or ultra petita and indicating
the jurisprudence of the courts of justice, considering that both recourses cannot be waived.
On August 17, 2016, CORFO noticed a new arbitration
claim filed against SQM Potasio S.A., SQM S.A. and SQM Salar S.A., by virtue of which it required the early termination of the
Project Contract entered on November 12, 1993 and other related contracts among other matters.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.3
|
Commitments, continued
|
In addition, on June 15, 2016, SQM S.A. and
SQM Salar S.A. have started the process for filing a new arbitration claim against CORFO. Through this arbitration proceeding,
SQM S.A. and SQM Salar S.A. expect to obtain a declaratory judgment that determines whether income paid under the Lease contract
for the entire period elapsed of the contract have been useful for CORFO. The establishment of the Rules of the procedure is pending.
During the period ended June 30, 2016, income
related to products from the Atacama saltpeter deposit represented a 42.56% of total comprehensive income of the Company for the
same period. This corresponds to income considered in the Potassium and Lithium product business lines.
Additionally, during the same period, SQM Salar
S.A. sold potassium salts (sylvinite) and wet potassium chloride for a total of ThUS$ 51,296 to SQM Industrial S.A., a subsidiary
of SQM to be used as supplies in the production of potassium nitrate.
On June 6, 2016, The Chilean Superintendence
of the Environment filed charges against SQM S.A. with respect to the Pampa Hermosa project for possible noncompliance with RCA
890/2010.
These charges relate to certain variables of
the Follow-up Plan and the implementation of a mitigation action contemplated in the related Environmental Impact Study. The Company
has submitted a Compliance Program which details the actions and commitments that the Company will perform to resolve the objections
by the environmental authority. The Chilean Superintendence of the Environment is currently reviewing such Compliance Program and
has to provide its sentence.
During 2015, SQM and its subsidiaries SQM Salar
and SQM Industrial have submitted to the Chilean IRS four tax amendments (two by SQM, one by SQM Salar and one by SQM Industrial).
The first two (one filed by SQM and another
filed by SQM Salar), subsequent to being approved by the Chilean IRS generated payments of taxes, interests and other charges for
ThUS$ 8,100, which was recorded in a provision in the results for the first quarter of 2015.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.4
|
Tax contingency, continued
|
Additionally, during August 2015, the Company
provided to the Chilean IRS for review and approval, the documentation required to amend the annual income tax returns of SQM and
SQM Industrial. SQM believes that as a result of these amendments the Company will have to pay approximately US$1.4 million for
the concept of taxes, interests and other charges, Such amount was recorded in a provision in the results for the second quarter
of 2015.
Finally, during 2016, the last 12 invoices
were amended with approximate payment of US$ 50 thousand.
Accordingly, SQM and its subsidiaries understand
the internal analysis they have been performing has ended, the purpose of which was the identification of the expenses incurred
by them during the commercial years 2008 to 2014 and which could be a matter of tax amendment.
Because of the aforementioned amendments, SQM,
SQM Salar and SQM Industrial might be affected by additional penalty established in article 97 No. 4, first subparagraph of the
Tax Code for an amount between 50% and 300% of taxes paid. The Company has currently not estimated making any provisions related
to this possible additional penalty.
On August 28, 2015, the Chilean IRS sent to
SQM a request for payment of taxes of US$8.7 million plus interests and fines related to the tax difference resulting from the
application of articles 64 Bis and 64 Ter of the Chilean Income Tax Law. On September 9, 2015, SQM filed a Request for Voluntary
Administrative Reconsideration with the Chilean IRS, which was not accepted. As a result, the Company paid the amounts as requested
totaling US$14.6 million, and reserved its right to file a tax claim against the request for payment by the Chilean IRS with the
Courts of Justice.
In the Company’s tax lawyers’ opinion,
grounds exist to believe this case will be resolved in favor of the Company and, as such, no provisions have been made with respect
to this case.
|
19.5
|
Restricted or pledged cash
|
The subsidiary Isapre Norte Grande Ltda., in
compliance with that established by the Chilean Superintendence of Healthcare which regulates the running of pension-related health
institutions, maintains a guarantee in financial instruments delivered in deposits, custody and administration to Banco de Chile.
This guarantee, according to the regulations
issued by the Chilean Superintendence of Healthcare is equivalent to the total sum owed to its members and medical providers Banco
de Chile reports the present value of the guarantee to the Chilean Superintendence of Healthcare and Isapre Norte Grande Ltda.
on a daily basis. As of June 30, 2016, the guarantee amounts to ThUS$678.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.5
|
Restricted or pledged cash, continued
|
SQM S.A. maintains funds with Morgan Stanley for the concept of
margin call, which provide collateral for the Bank’s exposition towards the Company.
Such collateral hedges the fair value of the Cross Currency Swap
that SQM S.A. has to hedge a portion of the Series H Bond.
Through the present date, SQM S.A. has delivered ThUS$ 5,370 to
Morgan Stanley, which will be released when any of the following conditions occur:
|
1.
|
The market value of the Cross Currency Swap is lower than the sum of that delivered ThUS$5,370 and the collateral threshold
ThUS$ 5,000.
|
|
2.
|
The Cross Currency Swap associated with the H Series Bond expires on January 5, 2018.
|
SQM S.A. maintains funds with BCI for the concept of margin call,
which provide collateral for the Bank’s exposition towards the Company.
Such collateral hedges the fair value of the Cross Currency Swap
that SQM S.A. has to hedge the Series H Bond.
Through the present date, SQM S.A. has delivered ThUS$650 to BCI,
which will be released when any of the following conditions occur:
|
1.
|
The market value of the Cross Currency Swap of the last business day of the month is lower than the sum of that delivered ThUS$650
and the collateral threshold ThUS$ 10,000.
|
|
2.
|
The Cross Currency Swap associated with the H Series Bond expires on January 5, 2018.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.6
|
Securities obtained from third parties
|
The main security received (exceeding ThUS$100)
from third parties to guarantee Soquimich Comercial S.A.’s compliance with obligations in contracts of commercial mandates
for the distribution and sale of fertilizers amounted to ThUS$8,401 and ThUS$7,137 on June 30, 2016 and December 31, 2015 respectively;
which is detailed as follows:
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Grantor
|
|
Relationship
|
|
ThUS$
|
|
|
ThUS$
|
|
Agrícola Lobert Ltda.
|
|
Unrelated third party
|
|
|
613
|
|
|
|
760
|
|
Agroc Patricio Bornand L. Eirl
|
|
Unrelated third party
|
|
|
352
|
|
|
|
322
|
|
Arena Fertilizantes y Semillas
|
|
Unrelated third party
|
|
|
227
|
|
|
|
211
|
|
Bernardo Guzman Schmidt
|
|
Unrelated third party
|
|
|
125
|
|
|
|
115
|
|
Comercial Agrosal Ltda.
|
|
Unrelated third party
|
|
|
105
|
|
|
|
-
|
|
Contador Frutos S.A.
|
|
Unrelated third party
|
|
|
1,575
|
|
|
|
1,443
|
|
Covepa SPA
|
|
Unrelated third party
|
|
|
1,679
|
|
|
|
780
|
|
Gilberto Rivas Y Cia. Ltda.
|
|
Unrelated third party
|
|
|
125
|
|
|
|
115
|
|
Hortofruticola La Serena
|
|
Unrelated third party
|
|
|
292
|
|
|
|
267
|
|
Johannes Epple Davanzo
|
|
Unrelated third party
|
|
|
581
|
|
|
|
451
|
|
Juan Luis Gaete Chesta
|
|
Unrelated third party
|
|
|
244
|
|
|
|
227
|
|
Lemp Martin Julian
|
|
Unrelated third party
|
|
|
112
|
|
|
|
103
|
|
Soc. Agrocom. Julio Polanco
|
|
Unrelated third party
|
|
|
151
|
|
|
|
141
|
|
Tattersall Agroinsumos S.A.
|
|
Unrelated third party
|
|
|
2,000
|
|
|
|
2,000
|
|
Vicente Oyarce Castro
|
|
Unrelated third party
|
|
|
220
|
|
|
|
202
|
|
Total
|
|
|
|
|
8,401
|
|
|
|
7,137
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
Guarantees in which there is no pending balance indirectly reflect
that the respective guarantees are in force and approved by the Company’s Board of Directors and have not been used by the
respective subsidiary.
|
|
Debtor
|
|
|
|
Balances as of the
closing date of the
financial statements
|
|
Creditor of the guarantee
|
|
Name
|
|
Relationship
|
|
Type of
guarantee
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Australian and New Zealand Bank
|
|
SQM North America Corp
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Australian and New Zealand Bank
|
|
SQM Europe N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Generale Bank
|
|
SQM North America Corp
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Generale Bank
|
|
SQM Europe N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Kredietbank
|
|
SQM North America Corp
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Kredietbank
|
|
SQM Europe N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Banks and financial institutions
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Banks and financial institutions
|
|
SQM Europe N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Banks and financial institutions
|
|
SQM North America Corp
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Banks and financial institutions
|
|
Nitratos Naturais do Chile Ltda.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Banks and financial institutions
|
|
SQM México S.A. de C.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Banks and financial institutions
|
|
SQM Brasil Ltda.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
“BNP”
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Sociedad Nacional de Mineria A.G.
|
|
SQM Potasio S.A.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Scotiabank & Trust (Cayman) Ltd.
|
|
Royal Seed Trading A.V.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Scotiabank & Trust (Cayman) Ltd.
|
|
Royal Seed Trading A.V.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Bank of America
|
|
Royal Seed Trading A.V.V.
|
|
Subsidiary
|
|
Bond
|
|
|
40,170
|
|
|
|
40,137
|
|
Export Development Canada
|
|
Royal Seed Trading A.V.V.
|
|
Subsidiary
|
|
Bond
|
|
|
10,005
|
|
|
|
20,010
|
|
The Bank of Tokyo-Mitsubishi UFJ Ltd.
|
|
Royal Seed Trading A.V.V.
|
|
Subsidiary
|
|
Bond
|
|
|
10,034
|
|
|
|
20,052
|
|
JP Morgan Chase Bank
|
|
SQM Industrial S.A.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
The Bank of Nova Scotia
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Morgan Stanley Capital Services
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
The Bank of Tokyo-Mitsubishi UFJ Ltd.
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
HSBC
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
Deutsche Bank AG
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 19
|
Contingencies and restrictions (continued)
|
|
19.7
|
Indirect guarantees, continued
|
The bonds which disclose a balance as of June 30, 2016 and December
31, 2015 are detailed below:
|
|
Debtor
|
|
|
|
|
Pending balances as of
the closing date of the
financial statements
|
|
Creditor of the guarantee
|
|
Name
|
|
Relationship
|
|
Type of
guarantee
|
|
|
06/30/2016
ThUS$
|
|
|
|
12/31/2015
ThUS$
|
|
Credit Suisse International
|
|
SQM Investment Corp. N.V.
|
|
Subsidiary
|
|
Bond
|
|
|
-
|
|
|
|
-
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
As of June 30, 2016 and 2015, revenue is detailed as follows:
|
|
January to June
|
|
|
April to June
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Types of revenue
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of goods
|
|
|
879,357
|
|
|
|
868,269
|
|
|
|
489,159
|
|
|
|
482,414
|
|
Provision of services
|
|
|
2,102
|
|
|
|
3,499
|
|
|
|
455
|
|
|
|
1,835
|
|
Total
|
|
|
881,459
|
|
|
|
871,768
|
|
|
|
489,614
|
|
|
|
484,249
|
|
|
Note 21
|
Earnings per share
|
Basic earnings per share are calculated by
dividing net income attributable to the Company’s shareholders by the weighted average of the number of shares in circulation
during that period.
As expressed, earnings per share are detailed
as follows:
Basic earnings per share
|
|
06/30/2016
ThUS$
|
|
|
06/30/2015
ThUS$
|
|
Earnings (losses) attributable to owners of the parent
|
|
|
141,613
|
|
|
|
154,904
|
|
|
|
06/30/2016
Units
|
|
|
12/31/2015
Units
|
|
Number of common shares in circulation
|
|
|
263,196,524
|
|
|
|
263,196,524
|
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
Basic earnings per share (US$ per share)
|
|
|
0.5381
|
|
|
|
0.5885
|
|
The Company has not made any operations with
a potential dilutive effect that assumes diluted earnings per share are different from the basic earnings per share.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
The cost of interest is recognized as expenses
in the year in which it is incurred, except for interest that is directly related to the acquisition and construction of tangible
property, plant and equipment assets and that complies with the requirements of IAS 23. As of June 30, 2016, total interest expenses
incurred amount to ThUS$32,421 (ThUS$34,973 as of June 30, 2015).
The Company capitalizes all interest costs
directly related to the construction or to the acquisition of property, plant and equipment, which require a substantial time to
be suitable for use.
|
22.1
|
Costs of capitalized interest, property, plant and equipment
|
The
cost of capitalized interest is determined by applying the average or weighted average of all financing costs incurred by the Company
to the monthly end balances of works-in-progress meeting the requirements of IAS 23.
The rates and costs for capitalized interest
of property, plant and equipment are detailed as follows:
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
|
|
|
|
|
Capitalization rate of costs for capitalized interest, property, plant and equipment
|
|
|
5
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
Amount of costs for interest capitalized in ThUS$
|
|
|
2,453
|
|
|
|
2,407
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 23
|
Effect of fluctuations on foreign currency exchange rates
|
|
a)
|
Foreign currency exchange differences recognized in profit or loss except for financial instruments
measured at fair value through profit or loss:
|
|
|
06/30/2016
ThUS$
|
|
|
06/30/2015
ThUS$
|
|
|
|
|
|
|
|
|
Conversion foreign exchange gains (losses) recognized in the result of the year.
|
|
|
(1,594
|
)
|
|
|
(3,209
|
)
|
|
|
|
|
|
|
|
|
|
Conversion foreign exchange reserves attributable to the owners of the controlling entity
|
|
|
1,279
|
|
|
|
(4,244
|
)
|
|
|
|
|
|
|
|
|
|
Conversion foreign exchange reserves attributable to the non-controlling entity
|
|
|
37
|
|
|
|
(62
|
)
|
|
b)
|
Reserves for foreign currency exchange differences:
|
As of June 30, 2016, and December 31, 2015, foreign currency exchange
differences are detailed as follows:
Detail
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
|
|
|
|
|
|
|
Changes in equity generated by conversion of equity value:
|
|
|
|
|
|
|
|
|
Comercial Hydro S.A.
|
|
|
1,004
|
|
|
|
1,004
|
|
SQMC Internacional Ltda.
|
|
|
(11
|
)
|
|
|
(20
|
)
|
Proinsa Ltda.
|
|
|
(9
|
)
|
|
|
(15
|
)
|
Comercial Agrorama Ltda.
|
|
|
(70
|
)
|
|
|
(100
|
)
|
Isapre Norte Grande Ltda.
|
|
|
(117
|
)
|
|
|
(155
|
)
|
Almacenes y Depósitos Ltda.
|
|
|
28
|
|
|
|
(31
|
)
|
Sales de Magnesio Ltda.
|
|
|
(50
|
)
|
|
|
(161
|
)
|
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.
|
|
|
(5
|
)
|
|
|
(9
|
)
|
Agrorama S.A.
|
|
|
(52
|
)
|
|
|
(35
|
)
|
Doktor Tarsa
|
|
|
(8,815
|
)
|
|
|
(8,305
|
)
|
SQM Vitas Fzco
|
|
|
(1,741
|
)
|
|
|
(2,245
|
)
|
Ajay Europe
|
|
|
(1,591
|
)
|
|
|
(1,731
|
)
|
SQM Eastmed Turkey
|
|
|
(85
|
)
|
|
|
(81
|
)
|
Charlee SQM (Thailand) Co. Ltd.
|
|
|
(431
|
)
|
|
|
(476
|
)
|
Coromandel SQM India
|
|
|
(301
|
)
|
|
|
(301
|
)
|
SQM Italia SRL
|
|
|
(233
|
)
|
|
|
(250
|
)
|
SQM Oceania Pty Ltd.
|
|
|
(634
|
)
|
|
|
(634
|
)
|
SQM Indonesia S.A.
|
|
|
(123
|
)
|
|
|
(123
|
)
|
Abu Dhabi Fertilizers Industries WWL.
|
|
|
21
|
|
|
|
21
|
|
SQM Vitas Holland
|
|
|
(303
|
)
|
|
|
(320
|
)
|
SQM Thailand Limited
|
|
|
(68
|
)
|
|
|
(68
|
)
|
Total
|
|
|
(13,586
|
)
|
|
|
(14,035
|
)
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 23
|
Effect of fluctuations on foreign currency exchange rates (continued)
|
|
c)
|
Functional and presentation currency
|
The functional currency in these companies
corresponds to the currency of the country of origin of each entity, and its presentation currency is the U.S. dollar.
|
d)
|
Reasons to use one presentation currency and a different functional currency
|
|
-
|
The total revenues of these subsidiaries are associated
with the local currency.
|
|
-
|
The commercialization cost structure of these companies
is affected by the local currency.
|
|
-
|
The equities of these companies
are expressed in local currency (Chilean peso).
|
|
24.1
|
Disclosures of disbursements related to the environment
|
The Company is continuously concerned with
protecting the environment both in its production processes and with respect to products manufactured. This commitment is supported
by the principles indicated in the Company’s Sustainable Development Policy. The Company is currently operating under an
Environmental Management System (EMS) that has allowed it to strengthen its environmental performance through the effective application
of the Company’s Sustainable Development Policy.
Operations that use caliche as a raw material
are carried out in desert areas with climatic conditions that are favorable for drying solids and evaporating liquids using solar
energy. Operations involving the open-pit extraction of minerals, due to their low waste-to-mineral ratio, generate remaining deposits
that slightly alter the environment. A portion of the ore extracted is crushed, a process in which particle emissions occur. Currently
this operation is conducted only at the Pedro de Valdivia worksite and no ore crushing process is conducted in the María
Elena sector.
Many of the Company’s products are shipped
in bulk at the Port of Tocopilla. In 2007, the city of Tocopilla was declared a zone saturated with MP10 Particles mainly due to
the emissions from the electric power plants that operate in that city. In October 2010, the Decontamination Plan for Tocopilla
was put in place. Accordingly, the Company has committed to taking several measures to mitigate the effects derived from bulk product
movements in the port. These measures have been successfully implemented since 2007.
The Company carries out environmental follow-up
and monitoring plans based on specialized scientific studies. Within this context, the Company entered into a contract with the
National Forestry Corporation (CONAF) aimed at researching the activities of flamingo groups that live in the Salar de Atacama
(Atacama Saltpeter Deposit) lagoons. Such research includes a population count of the birds, as well as breeding research. Environmental
monitoring activities carried out by the Company at the Salar de Atacama and other systems in which it operates are supported by
a number of studies that have integrated diverse scientific efforts from prestigious research centers, including Dictuc from the
Pontificia Universidad Católica in Santiago and the School of Agricultural Science of the Universidad de Chile.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.1
|
Disclosures of disbursements related to the environment, continued
|
Furthermore, within the framework of the environmental
studies which the Company is conducting, the Company performs significant activities in relation to the recording of Pre-Columbian
and historical cultural heritage, as well as the protection of heritage sites, in accordance with current Chilean laws. These activities
have been especially performed in the areas surrounding Maria Elena and the Nueva Victoria plants. This effort is being accompanied
by cultural initiatives within the community and the organization of exhibits in local and regional museums.
As emphasized in its Sustainable Development
Policy, the Company strives to maintain positive relationships with the communities surrounding the locations in which it carries
out its operations, as well as to participate in communities’ development by supporting joint projects and activities which
help to improve the quality of life for residents. For this purpose, the Company has focused its efforts on activities involving
the rescue of historical heritage, education and culture, as well as development.
In order to do so, it acts both individually
and in conjunction with private and public entities.
|
24.2
|
Detail of information on disbursements related to the environment
|
The accumulated disbursements in which the
Company incurred as of June 30, 2016 for the concept of investments in production processes, verification and control of compliance
with ordinances and laws relative to industrial processes and facilities, including prior year disbursements related to these projects
amounted to ThUS$2,177 and are detailed as follows:
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.2
|
Detail of information on disbursements related to the environment, continued
|
Accumulated expenses as of 06/30/2016
Identification of the
Parent or subsidiary
|
|
Name of the project with which expenditure is
associated
|
|
Concept for which the expenditure was made
or will be made
|
|
Asset / Expense
|
|
Description of the
asset or expense
Item
|
|
Amount of
expenditure
|
|
|
Actual or
estimated date on
which
expenditure was
or will be made
|
Miscellaneous
|
|
Environmental-operational area
|
|
Not classified
|
|
Expense
|
|
Not classified
|
|
|
542
|
|
|
06/30/2016
|
SQM Industrial S.A.
|
|
IQWZ - Normalization TK NV liquid fuels
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
174
|
|
|
11/30/2016
|
SQM Industrial S.A.
|
|
PPZU - Standardize and Certify Plant Fuel Tanks
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
52
|
|
|
11/30/2016
|
SQM Industrial S.A.
|
|
J0033 – Improvements to water distribution
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
221
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
J0041 - DIA Disposal filed area Coya Sur
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
28
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
I0076 – NV evaporation ponds
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
36
|
|
|
09/29/2016
|
SQM Salar S.A.
|
|
C0015 – 2016 Extraction ponds (Peralte)
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
60
|
|
|
12/31/2016
|
SQM Salar S.A.
|
|
J0043 – Energy efficiency study
|
|
Sustainability: Environment and Risk
Prevention
|
|
Expense
|
|
Not classified
|
|
|
10
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0046 – 2014-2015 Pampa Hermosa Cultural Heritage
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
307
|
|
|
12/31/2016
|
SQM S.A.
|
|
I007300 – Compliance with Iodine Gas Exposure Regulations
|
|
Environmental processing
|
|
Expense
|
|
Not classified
|
|
|
257
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0032- Hazardous Materials Standardization
|
|
Sustainability: Environment and Risk
Prevention
|
|
Asset
|
|
Not classified
|
|
|
65
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0055 – Standardization of SO2 plants
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
56
|
|
|
11/30/2016
|
SQM S.A.
|
|
I0067 – Enablement of CPC wells
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
28
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0071 – 2015-2016 Environmental Follow-up Plan for Pampa del Tamarugal
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
107
|
|
|
03/31/2017
|
SQM S.A.
|
|
I0072 – 2015-2016 Environmental Follow-up Plan Salar de Llamara
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
4
|
|
|
03/31/2017
|
SQM S.A.
|
|
P0030 – Plant 1 Scrubber and Plant 3 Scrubber
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
166
|
|
|
12/31/2016
|
SQM S.A.
|
|
P0035 – Tur Development Master Plan
|
|
Sustainability: Environment and Risk
Prevention
|
|
Expense
|
|
Not classified
|
|
|
20
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0093 - Replacement of lighting for NV warehouse
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
17
|
|
|
12/31/2016
|
SIT S.A.
|
|
T0030 – Archeological salvage for northern access, Port of Tocopilla
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
27
|
|
|
12/31/2016
|
Total
|
|
|
|
|
|
|
|
|
|
|
2,177
|
|
|
|
SQM
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.2
|
Detail of information on disbursements related to the environment, continued
|
Future expenses as of 06/30/2016
Identification of the
Parent or subsidiary
|
|
Name of the project with which expenditure is
associated
|
|
Concept for which the expenditure was made
or will be made
|
|
Asset /
Expense
|
|
Description of
the asset or
expense Item
|
|
Amount of
expenditure
|
|
|
Actual or
estimated date on
which expenditure
was or will be
made
|
SQM Industrial S.A.
|
|
IQWZ - Normalization TK NV liquid fuels
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
24
|
|
|
11/30/2016
|
SQM Industrial S.A.
|
|
PPZU - Standardize and Certify Plant Fuel Tanks
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
8
|
|
|
11/30/2016
|
SQM Industrial S.A.
|
|
J0041 - DIA Disposal filed area Coya Sur
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
84
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
J0033 – Improvements to water distribution
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
95
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
J0043 – Energy efficiency study
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
29
|
|
|
12/30/2016
|
SQM Industrial S.A.
|
|
I0076 - NV evaporation ponds
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
108
|
|
|
09/29/2016
|
SQM Industrial S.A.
|
|
J0046 – 2016 Atmospheric Plant Sustentation
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
177
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
I0101 – Training and acquisition of supplies for the Nueva Victoria Rescue Brigade.
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
6
|
|
|
12/31/2016
|
SQM Salar S.A.
|
|
C0015 - 2016 Extraction ponds (Peralte)
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
2
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0032 - Hazardous Materials Standardization
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
2
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0046 - 2014-2015 Pampa Hermosa Cultural Heritage
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
129
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0055 – Standardization of SO2 plants
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
71
|
|
|
11/30/2016
|
SQM S.A.
|
|
I0071 – 2015-2016 Environmental Follow-up Plan for Pampa del Tamarugal
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
10
|
|
|
03/31/2017
|
SQM S.A.
|
|
I0072 – 2015-2016 Environmental Follow-up Plan Salar de Llamara
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
4
|
|
|
03/31/2017
|
SQM S.A.
|
|
I0073 – Compliance with Iodine and Gas Capture Standard
|
|
Environmental processing
|
|
Expense
|
|
Not classified
|
|
|
315
|
|
|
12/31/2016
|
SQM S.A.
|
|
P0030 – Plant 1 Scrubber and Plant 3 Scrubber
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
30
|
|
|
12/31/2016
|
SQM S.A.
|
|
P0035 – Tur Development Master Plan
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
26
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0093 - Replacement of lighting for NV warehouse
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
50
|
|
|
12/31/2016
|
SQM S.A.
|
|
I0067 – Enablement of CPC wells
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
86
|
|
|
12/31/2016
|
SIT S.A.
|
|
T0030 – Archeological salvage for northern access, Port of Tocopilla
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
80
|
|
|
12/31/2016
|
Total
|
|
|
|
|
|
|
|
|
|
|
1,336
|
|
|
|
SQM
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.3
|
Detail of information on disbursements related to the environment, continued
|
Accumulated expenses as of 12/31/2015
Identification of the
Parent or subsidiary
|
|
Name of the project with which expenditure is
associated
|
|
Concept for which the expenditure was made
or will be made
|
|
Asset / Expense
|
|
Description of the
asset or expense
Item
|
|
Amount of
expenditure
|
|
|
Actual or
estimated date on
which
expenditure was
or will be made
|
Miscellaneous
|
|
Environmental-operational area
|
|
Not classified
|
|
Expense
|
|
Not classified
|
|
|
1,683
|
|
|
12/31/2015
|
SQM Industrial S.A.
|
|
IQWZ - Normalization TK NV liquid fuels
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
138
|
|
|
04/30/2016
|
SQM Industrial S.A.
|
|
MP5W - Normalization TK´s Fuels
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
2,619
|
|
|
12/31/2015
|
SQM Industrial S.A.
|
|
PPZU - Standardize and Certify Plant Fuel Tanks
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
3,174
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
PQXM – Elaboration DIA Operation with batteries in PV
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
1
|
|
|
12/31/2015
|
SQM Industrial S.A.
|
|
04-I0002 - Nueva Iris TAS
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
48
|
|
|
12/31/2015
|
SQM Industrial S.A.
|
|
04-I0023 - Acquisition of leak detection equipment
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
39
|
|
|
12/31/2015
|
SQM Industrial S.A.
|
|
04-J0033 – Improvements to water distribution
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
392
|
|
|
12/31/2015
|
SQM Industrial S.A.
|
|
04-I0076 – NV evaporation ponds
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
62
|
|
|
09/29/2016
|
SQM S.A.
|
|
IPFT - Cultural Heritage Region I
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
174
|
|
|
12/31/2015
|
SQM S.A.
|
|
IQ1M - PSA Re-injection of water to Puquios Llamara
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
2,579
|
|
|
12/31/2015
|
SQM S.A.
|
|
IQOW- Deposit authorization for Humberstone heritage
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
2
|
|
|
12/31/2015
|
SQM S.A.
|
|
IQWS - Mine Area equity measures Stage II
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
102
|
|
|
12/31/2015
|
SQM S.A.
|
|
IQX6 – Environmental management plan of Tamarugos Pampa del Tamarugal 2013-2014
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
154
|
|
|
12/31/2015
|
SQM S.A.
|
|
IQXB – Environmental management plan of Tamarugos Salar de Llamara 2013-2014
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
19
|
|
|
12/31/2015
|
SQM S.A.
|
|
01-I0032 – Standardization of hazardous materials
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
20
|
|
|
12/31/2016
|
SQM S.A.
|
|
01-I0042 – Mine are equity measures Stage III
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
41
|
|
|
12/31/2015
|
SQM S.A.
|
|
01-I0046 – Cultural Heritage Pampa Hermosa 2014 - 2015
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
15
|
|
|
03/31/2016
|
SQM
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.2
|
Detail of information on disbursements related to the environment, continued
|
Accumulated expenses as of 12/31/2015, continued
Identification of the
Parent or subsidiary
|
|
Name of the project with which expenditure is
associated
|
|
Concept for which the expenditure was made
or will be made
|
|
Asset / Expense
|
|
Description of the
asset or expense
Item
|
|
Amount of
expenditure
|
|
|
Actual or
estimated date on
which
expenditure was
or will be made
|
SQM S.A.
|
|
01-IQWP - 01-J0011 - DIA expansion of NV mine site
|
|
Environmental processing
|
|
Expense
|
|
Not classified
|
|
|
19
|
|
|
04/02/2016
|
SQM S.A.
|
|
01-I0055 – Standardization of SO2 plants
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
5
|
|
|
12/31/2016
|
SQM S.A.
|
|
01-I0067 – Enablement of CPC wells
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
133
|
|
|
01/01/2016
|
SQM S.A.
|
|
01-I0071 – 2015-2016 Environmental Follow-up Plan for Pampa del Tamarugal
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
363
|
|
|
03/31/2017
|
SQM S.A.
|
|
01-I0072 - Environmental Follow-up Plan Salar de Llamara 2015-2016
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
54
|
|
|
03/31/2017
|
SQM S.A.
|
|
01-I0073 – Compliance with Iodine and Gas Capture Standard
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
6
|
|
|
07/31/2017
|
SQM S.A.
|
|
01-P0030 – Plant 1 Scrubber and Plant 3 Scrubber
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
210
|
|
|
12/31/2015
|
SQM S.A.
|
|
01-P0035 – Tur Development Master Plan
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
12
|
|
|
01/31/2016
|
SQM Salar S.A.
|
|
LQDM – certification of tanks
|
|
Sustainability: Replacement of equipment
|
|
Asset
|
|
Not classified
|
|
|
256
|
|
|
12/31/2015
|
SIT S.A.
|
|
TQQ5 – Environmental curtains, Field No.8
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
221
|
|
|
12/31/2015
|
SIT S.A.
|
|
03-T0008 – Mobile belt protections 2, 5 and 7
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
11
|
|
|
12/31/2016
|
SIT S.A.
|
|
03-T0030 – Archeological salvage for northern access, Port of Tocopilla
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
8
|
|
|
12/31/2015
|
Total
|
|
|
|
|
|
|
|
|
|
|
12,560
|
|
|
|
SQM
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.3
|
Detail of information on disbursements related to the environment, continued
|
Future expenses as of 12/31/2015
Identification of the
Parent or subsidiary
|
|
Name of the project with which expenditure is
associated
|
|
Concept for which the expenditure was made
or will be made
|
|
Asset /
Expense
|
|
Description of
the asset or
expense Item
|
|
Amount of
expenditure
|
|
|
Actual or
estimated date on
which expenditure
was or will be
made
|
SQM Industrial S.A.
|
|
IQWZ - Normalization TK NV liquid fuels
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
373
|
|
|
04/30/2016
|
SQM Industrial S.A.
|
|
MP5W - Normalization TK´s Fuels
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
30
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
PPZU - Standardize and Certify Plant Fuel Tanks
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
290
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
M0006 – Significant maintenance of ME town streets and ME garbage dumps
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
150
|
|
|
12/31/2016
|
SQM Industrial S.A.
|
|
04-J0041 – Coya Sur Field Disposal DIA
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
83
|
|
|
12/31/2016
|
SQM Salar S.A.
|
|
19-LQXW – White water
|
|
Environmental processing
|
|
Asset
|
|
Not classified
|
|
|
269
|
|
|
12/31/2016
|
SQM S.A.
|
|
01-I0032- Hazardous Materials Standardization
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
80
|
|
|
12/31/2016
|
SQM S.A.
|
|
01-I0046 - Cultural heritage Pampa Hermosa 2014 – 2015
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
130
|
|
|
03/31/2016
|
SQM S.A.
|
|
01-I0055 – Standardization of SO2 plants
|
|
Sustainability
|
|
Asset
|
|
Not classified
|
|
|
10
|
|
|
12/31/2016
|
SQM S.A.
|
|
01-I0067 – Enablement of CPC wells
|
|
Sustainability: Environment and Risk Prevention
|
|
Expense
|
|
Not classified
|
|
|
56
|
|
|
01/01/2016
|
SQM S.A.
|
|
01-I0071 – 2015-2016 Environmental Follow-up Plan for Pampa del Tamarugal
|
|
Sustainability
|
|
Expense
|
|
Not classified
|
|
|
658
|
|
|
03/31/2017
|
SQM S.A.
|
|
01-I0072 – 2015-2016 Environmental Follow-up Plan Salar de Llamara 2015-2016
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
248
|
|
|
03/31/2017
|
SQM S.A.
|
|
01-I0073 – Compliance with Iodine and Gas Capture Standard
|
|
Sustainability: Environment and Risk Prevention
|
|
Asset
|
|
Not classified
|
|
|
124
|
|
|
07/31/2017
|
Total
|
|
|
|
|
|
|
|
|
|
|
2,501
|
|
|
|
SQM
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.3
|
Description of each project, indicating whether these are in process or have been finished
|
SQM Industrial S.A.
IQWZ:
Performing an analysis of the
tank facilities (civil works, mechanical work, piping, electrical work and instruments) by a company specialized in liquid fuels
and that is a Certifying Entity. After that, performance of the detail engineering and then implementation of the modifications
required to normalize the TKs facilities and leave them in conditions to be declared and filed with the SEC. The budget of ThUS$123
only covers expenses related to the analysis and detail engineering. The project is in process.
PPZU:
The necessary actions to normalize
and certify fuel tanks in the plants in Maria Elena, Coya Sur and Pedro de Valdivia will be performed. This project is in process.
J0033:
This project contemplates improving
the reliability and sustainability of industrial water and drinking water, mitigating uncontrolled water loss, making investments
for the change in the distribution line to processing plants, investment in technological equipment and engineering studies; improving
water adduction from the Loa and San Salvador rivers, complying with the ongoing controls by the Governmental Authorities (DGA
(the General Directorate of Water and Seremi Salud (the Ministerial Regional Secretariat for Health). This project is in process.
I0076:
Development of the Project for
the exploitation of iodine in the northern area of Iquique. This project is in progress.
J0046:
Generating equipment sustainability
which need to be renewed and ensure availability in key points in the Atmospheric Plant. This Project is in progress.
J0041
: Preparation and Processing of
the Environmental Impact Statement, for unauthorized disposal field areas and request a new area to build evaporation ponds. This
project is currently in progress.
I0101:
Increasing the training level
for the Brigade staff to safely and efficiently respond to any emergency situation occurred in the SQM’s premises and surroundings.
J0043:
Energy efficiency study and plant
technological improvements.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.3
|
Description of each project, indicating whether these are in process or have been finished, continued
|
SQM S.A.
I0032:
Presenting departures from the
standard currently in force with respect to storage of hazardous substances and provisions of SD 78/2010. This project is in process.
I0046:
The project consists of the implementation of equity
measures committed in the Environmental Assessment of the Pintados sector (geoglyphs and former railway station) and for the Sur
Viejo sector the implementation of development activities and archeological works are contemplated. This project is in progress.
I0055:
This project consists of changing
gas extractors to increase air flows, changing SO2 absorption towers for prilling, extending the diameter of ducts; thereby guaranteeing
an increase and sustaining the gas/liquid ratio. In order to decrease SO2 emissions require the installation of a scrubber unit
(tower, pump, gas extractor and piping), the same concept developed at the ME Iodine SO2 plant. This project is in progress.
I0067:
This stage of the project will
allow identifying equity findings and other environmental commitments in addition to the performance of the basic engineering for
the impulsion, electric line and crossing of Ruta 5 Norte highway. This project is in progress.
I0071:
This project consists of implementing
mitigation and compensation actions as committed in the Environmental Assessment of the Pampa Hermosa Environmental Impact Assessment
(EIA). Actions to be implemented are those contemplated in the Environmental Management Plan of Tamarugos in Pampa del Tamarugal
(Environmental Education Program, planting tamarugos, ex situ conservation of tamarugos, tamarugo production, and support for the
phytosanitary control of tamarugos). This project is in progress.
I0072:
This project consists of implementing
mitigation and compensation actions as committed in the Environmental Assessment of the Pampa Hermosa Environmental Impact Assessment
(EIA). Actions to be implemented are those contemplated in the Environmental Management Plan of Tamarugos in Salar de Llamara (Environmental
Education Program, planting tamarugos, ex situ conservation of tamarugos, tamarugo production, and support for the phytosanitary
control of tamarugos). This project is in progress.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 24
|
Environment (continued)
|
|
24.2
|
Description of each project, indicating whether these are in process or have been finished, continued
|
I0073:
Installation in the iodine plant
and warehouse of an iodine gas capturing system that allows meeting the applicable standard. This is composed of: large volume
capacity gas extractors, gas ducts designed with recommended speeds for the ventilation system, towers with packing to absorb iodine
gases. This requires a conceptual engineering study, the development of IB and details for the acquisition and supply of equipment,
assembly and start-up (iodine gas measurements). As committed with our mutual organization (Chilean Domestic Hygiene and Occupational
Health Plan overseen by the Health Service), this project should be operating on April 30, 2016 (letter to the Regional Secretariat
of the Health Ministry (SEREMI) of the Tarapaca Region dated July 14, 2014: Sanitary Resolution Ref: 2317). This project is in
progress.
P0030:
To reply to the indication by
the Health Service, the Company must install a Scrubber tower in each plant, which will collect the residual SO2 from the plant
chimneys. To perform this, the Company will install existing towers through which brine solutions will go through absorbing the
SO2 found in the gaseous phase. This project is in progress.
P0035
: The cultural, historical and
local promotion, the dissemination of the saltpeter touristic amenities and the enhancement of tangible and intangible saltpeter
equity. This project is in progress.
I0093:
Replacing the current lighting
by type LED IP67 lights, which secures lower energy consumption and generates lower heat dissipation, avoiding iodine caking and
lower consumption of electric energy in the air conditioning system in the warehouse. This project is in progress.
SQM Salar S.A.
C0015:
Harvesting and building floor
for a pond. The pumping system will be built.
SIT S.A.
T0030:
An archeological salvage must
be performed through excavations with stratigraphic control, with the purpose of recovering the remains of, at least, four funeral
contexts noted in the profiles of trenches Nos. 9 and 11. In addition, it is necessary to collect the disturbed osseous remains,
which, due to reasons unknown to us, are located in the current surface of the land where the trenches are located. This project
is in process.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 25
|
Other current and non-current non-financial assets
|
As of June 30, 2016, and December 31, 2015,
the detail of other current and non-current assets is as follows:
Other non-financial assets, current
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Domestic Value Added Tax
|
|
|
9,635
|
|
|
|
16,112
|
|
Foreign Value Added Tax
|
|
|
3,619
|
|
|
|
7,795
|
|
Prepaid mining licenses
|
|
|
4,535
|
|
|
|
1,209
|
|
Prepaid insurance
|
|
|
2,742
|
|
|
|
6,536
|
|
Other prepayments
|
|
|
1,003
|
|
|
|
602
|
|
Refund of Value Added Tax to exporters
|
|
|
8,061
|
|
|
|
13,183
|
|
Mining royalty tax paid (*)
|
|
|
14,565
|
|
|
|
14,565
|
|
Other assets
|
|
|
2,945
|
|
|
|
2,004
|
|
Total
|
|
|
47,105
|
|
|
|
62,006
|
|
(*) The Company reserved its right to file a tax claim with the
Courts of Justice against the request for payment by the SII. See Note 19.4.
Other non-financial assets, non-current
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Stain development expenses and prospecting expenses (1)
|
|
|
24,366
|
|
|
|
31,911
|
|
Guarantee deposits
|
|
|
678
|
|
|
|
496
|
|
Pension plan
|
|
|
-
|
|
|
|
27
|
|
Other assets
|
|
|
1,059
|
|
|
|
1,092
|
|
Total
|
|
|
26,103
|
|
|
|
33,526
|
|
|
1)
|
Reconciliation of changes in assets for exploration and mineral resource evaluation, by type
|
Movements in assets for the exploration and
evaluation of mineral resources as of June 30, 2016, and December 31, 2015:
Reconciliation
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
Opening balance
|
|
|
31,911
|
|
|
|
29,569
|
|
Changes
|
|
|
|
|
|
|
|
|
Additions, other than business combinations
|
|
|
-
|
|
|
|
3,871
|
|
Depreciation and amortization
|
|
|
(6,802
|
)
|
|
|
(2,287
|
)
|
Increase (decrease) due to transfers and other charges
|
|
|
(743
|
)
|
|
|
758
|
|
Total changes
|
|
|
(7,545
|
)
|
|
|
2,342
|
|
Total
|
|
|
24,366
|
|
|
|
31,911
|
|
As of the presentation date, no reevaluations
of assets for exploration and assessment of mineral resources have been conducted.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments
|
General information:
The amount of each item presented in each operating
segment is equal to that reported to the maximum authority that makes decisions regarding the operation, in order to decide on
the allocation of resources to the defined segments and to assess its performance.
Factors used to identify segments on which
a report should be presented:
Segments reported are strategic business units
that offer different products and services. These are managed separately because each business requires different technology and
marketing strategies.
Description of the types of products and
services on which each reportable segment obtain its income from ordinary activities
The operating segments, through which incomes
of ordinary activities are obtained, that generate expenses and whose operating results are reviewed on a regular basis by the
maximum authority who makes decisions regarding operations, relate to the following groups of products:
|
1.
|
Specialty plant nutrients
|
|
2.
|
Iodine and its derivatives
|
|
3.
|
Lithium and its derivatives
|
|
6.
|
Other products and services
|
Description of income sources for all the other segments
Information relative to assets, liabilities,
profit and expenses that cannot be assigned to the segments indicated above, due to the nature of production processes, is included
under "Unassigned amounts” category of the disclosed information.
Basis of accounting for transactions between reportable segments
Sales between segments are made in the same
conditions as those made to third parties, and are consistently measures as presented in the income statement.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.1
|
Operating segments, continued
|
Description of the nature of the differences
between measurements of results of reportable segments and the result of the entity before the expense or income tax expense of
incomes and discontinued operations.
The information reported in the segments is
extracted from the Company’s consolidated financial statements and therefore is not required to prepare reconciliations between
the data mentioned above and those reported in the respective segments, according to what is stated in paragraph 28 of IFRS 8,
"Operating Segments".
Description of the nature of the differences
between measurements of assets of reportable segments and the Company´s assets
Assets are not shown classified by segments,
as this information is not readily available, Some of these assets are not separable by the type of activity by which they are
affected since this information is not used by management in decision-making with respect to resources to be allocated to each
defined segment, All assets are disclosed in the "unallocated amounts" category.
Description of the nature of the differences
between measurements of liabilities of reportable segments and the Company’s liabilities
Liabilities are not shown classified by segments,
as this information is not readily available, Some of these liabilities are not separable by the type of activity by which they
are affected, since this information is not used by management in decisions making regarding resources to be allocated to each
defined segment, All liabilities are disclosed in the "unallocated amounts" category.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.2
|
Operating segment disclosures:
|
06/30/2016
|
Operating segment items
|
|
Specialty
plant
nutrients
|
|
|
Iodine and
its
derivatives
|
|
|
Lithium and
its
derivatives
|
|
|
Industrial
chemicals
|
|
|
Potassium
|
|
|
Other
products
and
services
|
|
|
Reportable
segments
|
|
|
Operating
segments
|
|
|
Elimination
of inter-
segments
amounts
|
|
|
Unallocated
amounts
|
|
|
Total
06/30/2016
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Revenue
|
|
|
332,221
|
|
|
|
118,566
|
|
|
|
192,774
|
|
|
|
30,518
|
|
|
|
181,621
|
|
|
|
25,759
|
|
|
|
881,459
|
|
|
|
881,459
|
|
|
|
-
|
|
|
|
-
|
|
|
|
881,459
|
|
Revenues from transactions with other operating segments of the same entity
|
|
|
57,837
|
|
|
|
142,276
|
|
|
|
152,048
|
|
|
|
194,933
|
|
|
|
173,721
|
|
|
|
98,819
|
|
|
|
819,634
|
|
|
|
819,634
|
|
|
|
(819,634
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from external customers and transactions with other operating segments of the same entity
|
|
|
390,058
|
|
|
|
260,842
|
|
|
|
344,822
|
|
|
|
225,451
|
|
|
|
355,342
|
|
|
|
124,578
|
|
|
|
1,701,093
|
|
|
|
1,701,093
|
|
|
|
(819,634
|
)
|
|
|
-
|
|
|
|
881,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales
|
|
|
(248,969
|
)
|
|
|
(98,731
|
)
|
|
|
(71,510
|
)
|
|
|
(21,394
|
)
|
|
|
(156,317
|
)
|
|
|
(24,046
|
)
|
|
|
(620,967
|
)
|
|
|
(620,967
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(620,967
|
)
|
Administrative expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,836
|
|
|
|
(43,644
|
)
|
|
|
(40,807
|
)
|
Interest expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
45,561
|
|
|
|
(77,982
|
)
|
|
|
(32,421
|
)
|
Depreciation and amortization expense
|
|
|
(50,454
|
)
|
|
|
(20,009
|
)
|
|
|
(14,492
|
)
|
|
|
(4,336
|
)
|
|
|
(31,678
|
)
|
|
|
(4,872
|
)
|
|
|
(125,841
|
)
|
|
|
(125,841
|
)
|
|
|
-
|
|
|
|
(2,169
|
)
|
|
|
(128,010
|
)
|
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,596
|
|
|
|
10,596
|
|
Income tax expense, continuing operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(57,291
|
)
|
|
|
(57,291
|
)
|
Other items other than significant cash
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Income (loss) before taxes
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
260,492
|
|
|
|
260,492
|
|
|
|
(194,605
|
)
|
|
|
133,802
|
|
|
|
199,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
260,492
|
|
|
|
260,492
|
|
|
|
(194,605
|
)
|
|
|
76,511
|
|
|
|
142,398
|
|
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
260,492
|
|
|
|
260,492
|
|
|
|
(194,605
|
)
|
|
|
76,511
|
|
|
|
142,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,435,882
|
)
|
|
|
10,675,128
|
|
|
|
4,239,246
|
|
Equity-accounted investees
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,131,020
|
)
|
|
|
3,246,163
|
|
|
|
115,143
|
|
Increase of non-current assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(35,323
|
)
|
|
|
(35,323
|
)
|
Liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,973,687
|
)
|
|
|
4,892,028
|
|
|
|
1,918,341
|
|
Impairment loss recognized in profit or loss
|
|
|
-
|
|
|
|
(98
|
)
|
|
|
(140
|
)
|
|
|
-
|
|
|
|
(288
|
)
|
|
|
(204
|
)
|
|
|
(730
|
)
|
|
|
(730
|
)
|
|
|
-
|
|
|
|
(207
|
)
|
|
|
(937
|
)
|
Reversal of impairment losses recognized in profit or loss for the period
|
|
|
887
|
|
|
|
-
|
|
|
|
-
|
|
|
|
372
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,259
|
|
|
|
1,259
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,259
|
|
Cash flows from (used in) operating activities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
259,000
|
|
|
|
259,000
|
|
Cash flows from (used in) investing activities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
308,784
|
|
|
|
308,784
|
|
Cash flows from (used in) financing activities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(515,111
|
)
|
|
|
(515,111
|
)
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.2
|
Operating segment disclosures, continued
|
06/30/2015
|
Operating segment items
|
|
Specialty
plant
nutrients
|
|
|
Iodine and
its
derivatives
|
|
|
Lithium and
its
derivatives
|
|
|
Industrial
chemicals
|
|
|
Potassium
|
|
|
Other
products
and
services
|
|
|
Reportable
segments
|
|
|
Operating
segments
|
|
|
Elimination
of inter-
segments
amounts
|
|
|
Unallocated
amounts
|
|
|
Significant
reconciling
items
|
|
|
Total
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Revenue
|
|
|
335,279
|
|
|
|
139,178
|
|
|
|
100,353
|
|
|
|
52,460
|
|
|
|
220,445
|
|
|
|
24,053
|
|
|
|
871,768
|
|
|
|
871,768
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
871,768
|
|
Revenues from transactions with other operating segments of the
same entity
|
|
|
67,361
|
|
|
|
232,153
|
|
|
|
67,121
|
|
|
|
172,616
|
|
|
|
209,574
|
|
|
|
128,840
|
|
|
|
877,665
|
|
|
|
877,665
|
|
|
|
(877,665
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from external customers and transactions
with other operating segments of the same entity
|
|
|
402,640
|
|
|
|
371,331
|
|
|
|
167,474
|
|
|
|
225,076
|
|
|
|
430,019
|
|
|
|
152,893
|
|
|
|
1,749,433
|
|
|
|
1,749,433
|
|
|
|
(877,665
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
871,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of sales
|
|
|
(234,196
|
)
|
|
|
(95,121
|
)
|
|
|
(48,772
|
)
|
|
|
(33,527
|
)
|
|
|
(143,738
|
)
|
|
|
(21,169
|
)
|
|
|
(576,523
|
)
|
|
|
(576,523
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(576,523
|
)
|
Administrative expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,244
|
|
|
|
(48,791
|
)
|
|
|
-
|
|
|
|
(44,547
|
)
|
Interest expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
71,258
|
|
|
|
(106,231
|
)
|
|
|
-
|
|
|
|
(34,973
|
)
|
Depreciation and amortization expense
|
|
|
(54,505
|
)
|
|
|
(22,138
|
)
|
|
|
(11,352
|
)
|
|
|
(7,802
|
)
|
|
|
(33,453
|
)
|
|
|
(4,926
|
)
|
|
|
(134,176
|
)
|
|
|
(134,176
|
)
|
|
|
-
|
|
|
|
(332
|
)
|
|
|
-
|
|
|
|
(134,508
|
)
|
The entity’s interest in the profit or loss of associates
and joint ventures accounted for by the equity method
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,843
|
|
|
|
-
|
|
|
|
6,843
|
|
Income tax expense, continuing operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(55,667
|
)
|
|
|
-
|
|
|
|
(55,667
|
)
|
Other items other tan significant cash
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
Income (loss) before taxes
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,580
|
|
|
|
18,934
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
295,245
|
|
|
|
295,245
|
|
|
|
(293,200
|
)
|
|
|
209,296
|
|
|
|
-
|
|
|
|
211,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,580
|
|
|
|
18,934
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
295,245
|
|
|
|
295,245
|
|
|
|
(293,200
|
)
|
|
|
153,629
|
|
|
|
-
|
|
|
|
155,674
|
|
Net income (loss) from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,580
|
|
|
|
18,934
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
295,245
|
|
|
|
295,245
|
|
|
|
(293,200
|
)
|
|
|
153,629
|
|
|
|
-
|
|
|
|
155,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,010,368
|
)
|
|
|
12,778,333
|
|
|
|
-
|
|
|
|
4,767,965
|
|
Equity-accounted investees
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,528,796
|
)
|
|
|
3,604,213
|
|
|
|
-
|
|
|
|
75,417
|
|
Increase of non-current assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
(89,693
|
)
|
|
|
-
|
|
|
|
(89,693
|
)
|
Liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,148,893
|
)
|
|
|
6,542,733
|
|
|
|
-
|
|
|
|
2,393,840
|
|
Impairment loss recognized in profit or loss
|
|
|
-
|
|
|
|
(178
|
)
|
|
|
(337
|
)
|
|
|
-
|
|
|
|
(2,732
|
)
|
|
|
(120
|
)
|
|
|
(3,367
|
)
|
|
|
(3,367
|
)
|
|
|
-
|
|
|
|
(105
|
)
|
|
|
-
|
|
|
|
(3,472
|
)
|
Reversal of impairment losses recognized in profit or loss for the
period
|
|
|
2,986
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,080
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,066
|
|
|
|
4,066
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,066
|
|
Cash flows from (used in) operating activities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
292,817
|
|
|
|
-
|
|
|
|
292,817
|
|
Cash flows from (used in) investing activities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(110,764
|
)
|
|
|
-
|
|
|
|
(110,764
|
)
|
Cash flows from (used in) financing activities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(59,955
|
)
|
|
|
-
|
|
|
|
(59,955
|
)
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.3
|
Statement of comprehensive income classified by operating segments based on groups of products
|
|
|
06/30/2016
|
|
Items in the statement of
comprehensive
income
|
|
Specialty
plant
nutrients
ThUS$
|
|
|
Iodine
and its
derivatives
ThUS$
|
|
|
Lithium
and
its derivatives
ThUS$
|
|
|
Industrial
chemicals
ThUS$
|
|
|
Potassium
ThUS$
|
|
|
Other
products and
services
ThUS$
|
|
|
Corporate
Unit
ThUS$
|
|
|
Total segments and
Corporate unit
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
332,221
|
|
|
|
118,566
|
|
|
|
192,774
|
|
|
|
30,518
|
|
|
|
181,621
|
|
|
|
25,759
|
|
|
|
-
|
|
|
|
881,459
|
|
Cost of sales
|
|
|
(248,969
|
)
|
|
|
(98,731
|
)
|
|
|
(71,510
|
)
|
|
|
(21,394
|
)
|
|
|
(156,317
|
)
|
|
|
(24,046
|
)
|
|
|
-
|
|
|
|
(620,967
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
-
|
|
|
|
260,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other incomes by function
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,662
|
|
|
|
5,662
|
|
Administrative expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(40,807
|
)
|
|
|
(40,807
|
)
|
Other expenses by function
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,611
|
)
|
|
|
(9,611
|
)
|
Other gains (losses)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
755
|
|
|
|
755
|
|
Financial income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,617
|
|
|
|
6,617
|
|
Financial costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(32,421
|
)
|
|
|
(32,421
|
)
|
interest in the profit or loss of associates and joint ventures
accounted for by the equity method
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,596
|
|
|
|
10,596
|
|
Exchange differences
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,594
|
)
|
|
|
(1,594
|
)
|
Profit (loss) before taxes
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
(60,803
|
)
|
|
|
199,689
|
|
Income tax expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(57,291
|
)
|
|
|
(57,291
|
)
|
Profit (loss) from continuing operations
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
(118,094
|
)
|
|
|
142,398
|
|
Profit (loss) from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Profit (loss)
|
|
|
83,252
|
|
|
|
19,835
|
|
|
|
121,264
|
|
|
|
9,124
|
|
|
|
25,304
|
|
|
|
1,713
|
|
|
|
(118,094
|
)
|
|
|
142,398
|
|
Profit (loss), attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) attributable to the controller´s owners
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
141,613
|
|
Profit (loss) attributable to the non-controllers
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
785
|
|
Profit (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
142,398
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.3
|
Statement of comprehensive income classified by operating
segments based on groups of products, continued
|
|
|
06/30/2015
|
|
Items in the statement of comprehensive
income
|
|
Specialty plant
nutrients
ThUS$
|
|
|
Iodine and its
derivatives
ThUS$
|
|
|
Lithium and
its derivatives
ThUS$
|
|
|
Industrial
chemicals
ThUS$
|
|
|
Potassium
ThUS$
|
|
|
Other
products and
services
ThUS$
|
|
|
Corporate
Unit
ThUS$
|
|
|
Total segments and
Corporate unit
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
335,279
|
|
|
|
139,178
|
|
|
|
100,353
|
|
|
|
52,460
|
|
|
|
220,445
|
|
|
|
24,053
|
|
|
|
-
|
|
|
|
871,768
|
|
Cost of sales
|
|
|
(234,196
|
)
|
|
|
(95,122
|
)
|
|
|
(48,772
|
)
|
|
|
(33,527
|
)
|
|
|
(143,738
|
)
|
|
|
(21,168
|
)
|
|
|
-
|
|
|
|
(576,523
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,581
|
|
|
|
18,933
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
-
|
|
|
|
295,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other incomes by function
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,291
|
|
|
|
7,291
|
|
Administrative expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(44,547
|
)
|
|
|
(44,547
|
)
|
Other expenses by function
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(25,216
|
)
|
|
|
(25,216
|
)
|
Other gains (losses)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,895
|
|
|
|
3,895
|
|
Financial income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,012
|
|
|
|
6,012
|
|
Financial costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(34,973
|
)
|
|
|
(34,973
|
)
|
interest in the profit or loss of associates and joint ventures
accounted for by the equity method
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,843
|
|
|
|
6,843
|
|
Exchange differences
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,209
|
)
|
|
|
(3,209
|
)
|
Profit (loss) before taxes
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,581
|
|
|
|
18,933
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
(83,904
|
)
|
|
|
211,341
|
|
Income tax expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(55,667
|
)
|
|
|
(55,667
|
)
|
Profit (loss) from continuing operations
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,581
|
|
|
|
18,933
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
(139,571
|
)
|
|
|
155,674
|
|
Profit (loss) from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Profit (loss)
|
|
|
101,083
|
|
|
|
44,056
|
|
|
|
51,581
|
|
|
|
18,933
|
|
|
|
76,707
|
|
|
|
2,885
|
|
|
|
(139,571
|
)
|
|
|
155,674
|
|
Profit (loss), attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) attributable to the controller´s owners
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
154,904
|
|
Profit (loss) attributable to the non-controlling interests
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
770
|
|
Profit (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
155,674
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.4
|
Revenue from transactions with other Company’s operating segments
|
06/30/2016
|
Items in the statement of
comprehensive income
|
|
Specialty plant
nutrients
ThUS$
|
|
|
Iodine and its
derivatives
ThUS$
|
|
|
Lithium and
its derivatives
ThUS$
|
|
|
Industrial
chemicals
ThUS$
|
|
|
Potassium
ThUS$
|
|
|
Other
products
and services
ThUS$
|
|
|
Total segments
and Corporate
unit
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
332,221
|
|
|
|
118,566
|
|
|
|
192,774
|
|
|
|
30,518
|
|
|
|
181,621
|
|
|
|
25,759
|
|
|
|
881,459
|
|
06/30/2015
|
Items in the statement of
comprehensive income
|
|
Specialty plant
nutrients
ThUS$
|
|
|
Iodine and its
derivatives
ThUS$
|
|
|
Lithium and
its derivatives
ThUS$
|
|
|
Industrial
chemicals
ThUS$
|
|
|
Potassium
ThUS$
|
|
|
Other
products
and services
ThUS$
|
|
|
Total segments
and Corporate
unit
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
335,279
|
|
|
|
139,178
|
|
|
|
100,353
|
|
|
|
52,460
|
|
|
|
220,445
|
|
|
|
24,053
|
|
|
|
871,768
|
|
|
26.5
|
Disclosures on geographical areas
|
As indicated in paragraph 33 of IFRS 8, the
entity discloses geographical information on its revenue from operating activities with external customers and from non-current
assets that are not financial instruments, deferred income tax assets, assets related to post-employment benefits or rights derived
from insurance contracts.
|
26.6
|
Disclosures on main customers
|
With respect to the degree of dependency of
the Company on its customers, in accordance with paragraph N° 34 of IFRS N° 8, the Company has no external customers who
individually represent 10% or more of its revenue, Credit risk concentrations with respect to trade and other accounts receivable
are limited due to the significant number of entities in the Company’s portfolio and its worldwide distribution, The Company’s
policy requires guarantees (such as letters of credit, guarantee clauses and others) and/or to maintain insurance policies for
certain accounts as deemed necessary by the Company's Management.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.7
|
Segments by geographical areas as of June 30, 2016 and June 30, 2015
|
|
|
06/30/2016
|
|
Items
|
|
Chile
ThUS$
|
|
|
Latin America and
the Caribbean
ThUS$
|
|
|
Europe
ThUS$
|
|
|
North America
ThUS$
|
|
|
Asia and others
ThUS$
|
|
|
Total
ThUS$
|
|
Revenue
|
|
|
58.102
|
|
|
|
120.842
|
|
|
|
216.094
|
|
|
|
232.516
|
|
|
|
253.905
|
|
|
|
881.459
|
|
Investment accounted for under the equity method
|
|
|
1,765
|
|
|
|
25,000
|
|
|
|
29,465
|
|
|
|
13,691
|
|
|
|
45,222
|
|
|
|
115,143
|
|
Intangible assets other than goodwill
|
|
|
108,744
|
|
|
|
-
|
|
|
|
-
|
|
|
|
225
|
|
|
|
1
|
|
|
|
108,970
|
|
Goodwill
|
|
|
26,629
|
|
|
|
86
|
|
|
|
11,373
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38,088
|
|
Property, plant and equipment, net
|
|
|
1,614,411
|
|
|
|
249
|
|
|
|
3,162
|
|
|
|
2,396
|
|
|
|
1,375
|
|
|
|
1,621,593
|
|
Investment property
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other non-current assets
|
|
|
25,962
|
|
|
|
141
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
26,103
|
|
Non-current assets
|
|
|
1,777,511
|
|
|
|
25,476
|
|
|
|
44,000
|
|
|
|
16,312
|
|
|
|
46,598
|
|
|
|
1,909,897
|
|
|
|
06/30/2015
|
|
Items
|
|
Chile
ThUS$
|
|
|
Latin America and
the Caribbean
ThUS$
|
|
|
Europe
ThUS$
|
|
|
North America
ThUS$
|
|
|
Asia and others
ThUS$
|
|
|
Total
ThUS$
|
|
Revenue
|
|
|
64,867
|
|
|
|
146,529
|
|
|
|
186,430
|
|
|
|
257,317
|
|
|
|
216,625
|
|
|
|
871,768
|
|
Investment accounted for under the equity method
|
|
|
1,552
|
|
|
|
-
|
|
|
|
25,808
|
|
|
|
12,511
|
|
|
|
35,546
|
|
|
|
75,417
|
|
Intangible assets other than goodwill
|
|
|
112,814
|
|
|
|
-
|
|
|
|
-
|
|
|
|
251
|
|
|
|
1
|
|
|
|
113,066
|
|
Goodwill
|
|
|
26,929
|
|
|
|
86
|
|
|
|
11,373
|
|
|
|
-
|
|
|
|
-
|
|
|
|
38,388
|
|
Property, plant and equipment, net
|
|
|
1,791,840
|
|
|
|
153
|
|
|
|
1,303
|
|
|
|
2,253
|
|
|
|
1,496
|
|
|
|
1,797,045
|
|
Investment property
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other non-current assets
|
|
|
34,630
|
|
|
|
145
|
|
|
|
-
|
|
|
|
643
|
|
|
|
-
|
|
|
|
35,418
|
|
Non-current assets
|
|
|
1,967,765
|
|
|
|
384
|
|
|
|
38,484
|
|
|
|
15,658
|
|
|
|
37,043
|
|
|
|
2,059,334
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 26
|
Operating segments (continued)
|
|
26.8
|
Property, plant and equipment classified by geographical areas
|
The company's main productive facilities are
located near their mines and extraction facilities in northern Chile, The following table presents the main production facilities
as of June 30, 2016 and December 31, 2015:
|
Location
|
Products
|
-
|
Pedro de Valdivia
|
:
|
Production of iodine and nitrate salts
|
-
|
María Elena
|
:
|
Production of iodine and nitrate salts
|
-
|
Coya Sur
|
:
|
Production of nitrate salts
|
-
|
Nueva Victoria
|
:
|
Production of iodine and nitrate salts
|
-
|
Salar de Atacama
|
:
|
Potassium chloride, lithium chloride, boric acid and potassium sulfate
|
-
|
Salar del Carmen
|
:
|
Production of lithium carbonate and lithium hydroxide
|
-
|
Tocopilla
|
:
|
Port facilities
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 27
|
Gains (losses) from operating activities in the statement of income by function of expenses, included according to their nature
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Products
|
|
|
879,357
|
|
|
|
868,269
|
|
Services
|
|
|
2,102
|
|
|
|
3,499
|
|
Total
|
|
|
881,459
|
|
|
|
871,768
|
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Raw material and supplies
|
|
|
(230,134
|
)
|
|
|
(231,157
|
)
|
Types of employee benefits expenses
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
(49,133
|
)
|
|
|
(43,079
|
)
|
Other short-term employee benefits
|
|
|
(30,916
|
)
|
|
|
(9,726
|
)
|
Termination benefit expenses
|
|
|
(2,713
|
)
|
|
|
(1,797
|
)
|
Total employee benefits expenses
|
|
|
(82,762
|
)
|
|
|
(54,602
|
)
|
Depreciation expense
|
|
|
(120,954
|
)
|
|
|
(132,643
|
)
|
Amortization expense
|
|
|
(1,501
|
)
|
|
|
(1,532
|
)
|
Small deposit amortization expense
|
|
|
(3,384
|
)
|
|
|
-
|
|
Impairment losses (reversals of impairment losses) recognized in profit or loss for the period
|
|
|
529
|
|
|
|
699
|
|
Operating leases
|
|
|
(51,295
|
)
|
|
|
(36,669
|
)
|
Investment plan expenses
|
|
|
(8,643
|
)
|
|
|
-
|
|
Maintenance and repair
|
|
|
(4,182
|
)
|
|
|
(4,616
|
)
|
Contractors
|
|
|
(30,224
|
)
|
|
|
(20,746
|
)
|
Operations transport
|
|
|
(24,623
|
)
|
|
|
(21,749
|
)
|
Freight and product transport costs
|
|
|
(15,197
|
)
|
|
|
(14,558
|
)
|
Packaging costs
|
|
|
(498
|
)
|
|
|
(651
|
)
|
Sales commissions
|
|
|
(3,776
|
)
|
|
|
(3,120
|
)
|
Port costs
|
|
|
(5,947
|
)
|
|
|
(6,387
|
)
|
CORFO right costs
|
|
|
(18,058
|
)
|
|
|
(10,832
|
)
|
Other expenses, by nature
|
|
|
(20,318
|
)
|
|
|
(37,960
|
)
|
Total
|
|
|
(620,967
|
)
|
|
|
(576,523
|
)
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 27
|
Gains (losses) from operating activities in the statement of income by function of expenses, included according to their nature, (continued)
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Discounts obtained from suppliers
|
|
|
437
|
|
|
|
622
|
|
Indemnification received and insurance recoveries
|
|
|
-
|
|
|
|
23
|
|
Penalties charged to suppliers
|
|
|
96
|
|
|
|
118
|
|
Tax recoveries
|
|
|
3
|
|
|
|
1
|
|
Insurance recoveries
|
|
|
1,485
|
|
|
|
77
|
|
Excess in the provision for liabilities with 3rd parties
|
|
|
539
|
|
|
|
1,040
|
|
Sale of property, plant and equipment
|
|
|
(13
|
)
|
|
|
-
|
|
Sale of materials, spare parts and supplies
|
|
|
11
|
|
|
|
877
|
|
Sale de scrap
|
|
|
1
|
|
|
|
-
|
|
Interest collected from direct customers
|
|
|
20
|
|
|
|
-
|
|
Options on mining properties
|
|
|
1,459
|
|
|
|
1,373
|
|
Easements, ducts and roads
|
|
|
1
|
|
|
|
1,700
|
|
Non-conventional renewable energy
|
|
|
245
|
|
|
|
211
|
|
Reimbursement of mining patents and notarial expenses
|
|
|
1,013
|
|
|
|
658
|
|
Miscellaneous services
|
|
|
15
|
|
|
|
171
|
|
Other operating income
|
|
|
350
|
|
|
|
420
|
|
Total
|
|
|
5,662
|
|
|
|
7,291
|
|
|
27.4
|
Administrative expenses
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Employee benefit expenses by nature
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
(20,135
|
)
|
|
|
(22,445
|
)
|
Other short-term benefits to employees
|
|
|
(1,973
|
)
|
|
|
(1,982
|
)
|
Total employee benefit expenses
|
|
|
(22,108
|
)
|
|
|
(24,427
|
)
|
Amortization expense
|
|
|
(3
|
)
|
|
|
(209
|
)
|
Other expenses, by nature
|
|
|
(18,696
|
)
|
|
|
(19,911
|
)
|
Total
|
|
|
(40,807
|
)
|
|
|
(44,547
|
)
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 27
|
Gains (losses) from operating activities in the statement of income by function of expenses, included according to their nature (continued)
|
|
27.5
|
Other expenses by function
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Employee benefit expenses by nature
|
|
|
|
|
|
|
|
|
Depreciation and amortization expenses
|
|
|
|
|
|
|
|
|
Depreciation of stopped assets
|
|
|
(56
|
)
|
|
|
(124
|
)
|
Depreciation, residual value
|
|
|
-
|
|
|
|
-
|
|
Subtotal to date
|
|
|
(56
|
)
|
|
|
(124
|
)
|
Impairment loss (review of impairment losses) recognized in profit or loss for the year
|
|
|
|
|
|
|
|
|
Impairment of allowance for doubtful accounts
|
|
|
(207
|
)
|
|
|
(105
|
)
|
Subtotal to date
|
|
|
(207
|
)
|
|
|
(105
|
)
|
|
|
|
|
|
|
|
|
|
Other expenses, by nature
|
|
|
|
|
|
|
|
|
Legal Expenses
|
|
|
(2,005
|
)
|
|
|
(10,131
|
)
|
VAT and other unrecoverable tax
|
|
|
(407
|
)
|
|
|
(451
|
)
|
Fines, interests and tax (*)
|
|
|
(260
|
)
|
|
|
(4,513
|
)
|
Advisory services
|
|
|
(33
|
)
|
|
|
(7
|
)
|
Investment plan expenses
|
|
|
(3,022
|
)
|
|
|
(6,310
|
)
|
Small deposit amortization expenses
|
|
|
(2,112
|
)
|
|
|
-
|
|
Provision for energy arbitration proceeding
|
|
|
-
|
|
|
|
3,500
|
|
Article No, 21 one-off tax, (*)
|
|
|
(167
|
)
|
|
|
(5,635
|
)
|
Donations rejected as tax credits
|
|
|
(623
|
)
|
|
|
(670
|
)
|
Other operating expenses
|
|
|
(719
|
)
|
|
|
(770
|
)
|
Subtotal to date
|
|
|
(9,348
|
)
|
|
|
(24,987
|
)
|
Total
|
|
|
(9,611
|
)
|
|
|
(25,216
|
)
|
(*)
These balances are considered payments as at June 2015 for approximately MUS$9.5 in taxes (Tax under Article No. 21 of the Income
Tax Law and Value-added Tax), interest and other charges performed by the Company to the Chilean Internal Revenue Service (Servicio
de Impuestos Internos) because of the submission of amendments to its income tax returns for tax years from 2009 through 2014,
as it identified expenses for which the Company did not have sufficient supporting documentation to be considered expenses necessary
to generate income in accordance with the current Chilean tax regulations for approximately MUS$14.7.
|
27.6
|
Other income (expenses)
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Adjustment of reversal of provision for staff severance indemnities
|
|
|
-
|
|
|
|
3,466
|
|
Adjustment of Equity Method, prior year
|
|
|
1,130
|
|
|
|
429
|
|
Other gains (losses)
|
|
|
(375
|
)
|
|
|
-
|
|
Total
|
|
|
755
|
|
|
|
3,895
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 27
|
Gains (losses) from operating activities in the statement of income by function of expenses, included according to their nature (continued)
|
|
27.7
|
Summary of expenses by nature
|
|
|
January to June
|
|
|
April to June
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw material and supplies used
|
|
|
(230,134
|
)
|
|
|
(231,157
|
)
|
|
|
(123,239
|
)
|
|
|
(138,334
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Types of employee benefits expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages
|
|
|
(69,268
|
)
|
|
|
(65,524
|
)
|
|
|
(38,991
|
)
|
|
|
(39,391
|
)
|
Other short-term employee benefits
|
|
|
32,889
|
)
|
|
|
(11,708
|
)
|
|
|
(23,648
|
)
|
|
|
(6,884
|
)
|
Termination benefit expenses
|
|
|
(2,713
|
)
|
|
|
(1,797
|
)
|
|
|
(1,163
|
)
|
|
|
(1,141
|
)
|
Total employee benefit expenses
|
|
|
(104,870
|
)
|
|
|
(79,029
|
)
|
|
|
(63,802
|
)
|
|
|
(47,416
|
)
|
Depreciation and amortization expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
(121,010
|
)
|
|
|
(132,767
|
)
|
|
|
(60,855
|
)
|
|
|
(65,367
|
)
|
Amortization expense
|
|
|
(1,504
|
)
|
|
|
(1,741
|
)
|
|
|
(729
|
)
|
|
|
(1,390
|
)
|
Small deposit amortization expenses
|
|
|
(5,496
|
)
|
|
|
-
|
|
|
|
(1,307
|
)
|
|
|
-
|
|
Impairment loss (reversal of impairment losses) recognized in profit or loss for the year
|
|
|
322
|
|
|
|
594
|
|
|
|
1,019
|
|
|
|
128
|
|
Operating leases
|
|
|
(51,295
|
)
|
|
|
(36,669
|
)
|
|
|
(28,106
|
)
|
|
|
(22,690
|
)
|
Investment plan expenses
|
|
|
(11,665
|
)
|
|
|
(6,310
|
)
|
|
|
(4,397
|
)
|
|
|
-
|
|
Maintenance and repair
|
|
|
(4,182
|
)
|
|
|
(4,616
|
)
|
|
|
(2,126
|
)
|
|
|
(2,762
|
)
|
Contractors
|
|
|
(30,224
|
)
|
|
|
(20,746
|
)
|
|
|
(16,404
|
)
|
|
|
(12,580
|
)
|
Operations transport
|
|
|
(24,623
|
)
|
|
|
(21,749
|
)
|
|
|
(13,467
|
)
|
|
|
(14,106
|
)
|
Freight and product transport costs
|
|
|
(15,197
|
)
|
|
|
(14,558
|
)
|
|
|
(8,155
|
)
|
|
|
(9,076
|
)
|
Packaging costs
|
|
|
(498
|
)
|
|
|
(651
|
)
|
|
|
(334
|
)
|
|
|
(374
|
)
|
Sales commissions
|
|
|
(3,776
|
)
|
|
|
(3,120
|
)
|
|
|
(2,729
|
)
|
|
|
(2,326
|
)
|
Port costs
|
|
|
(5,947
|
)
|
|
|
(6,387
|
)
|
|
|
(3,748
|
)
|
|
|
(3,996
|
)
|
Corfo rights
|
|
|
(18,058
|
)
|
|
|
(10,832
|
)
|
|
|
(9,546
|
)
|
|
|
(5,936
|
)
|
Other expenses, by nature
|
|
|
(43,228
|
)
|
|
|
(76,548
|
)
|
|
|
(30,639
|
)
|
|
|
(35,049
|
)
|
Total expenses, by nature
|
|
|
(671,385
|
)
|
|
|
(646,286
|
)
|
|
|
(368,564
|
)
|
|
|
(361,274
|
)
|
This table corresponds to the summary required by the Chilean Superintendence
of Securities and Insurance (SVS) and considers notes 27.2, 27.4 and 27.5.
|
|
January to June
|
|
|
|
2016
|
|
|
2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Interest expense from bank borrowings and overdrafts
|
|
|
(1,058
|
)
|
|
|
(1,184
|
)
|
Interest expense from bonds
|
|
|
(29,743
|
)
|
|
|
(32,028
|
)
|
Interest expense from loans
|
|
|
(3,507
|
)
|
|
|
(3,413
|
)
|
Capitalized interest expenses
|
|
|
2,453
|
|
|
|
2,407
|
|
Other finance costs
|
|
|
(566
|
)
|
|
|
(755
|
)
|
Total
|
|
|
(32,421
|
)
|
|
|
(34,973
|
)
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes
|
Accounts receivable from taxes as of June 30, 2016 and December
31, 2015, are as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Monthly provisional income tax payments, Chilean companies current year
|
|
|
56,788
|
|
|
|
62,126
|
|
Monthly provisional payment Royalty
|
|
|
1,138
|
|
|
|
1,138
|
|
Monthly provisional income tax payments, foreign companies
|
|
|
1,842
|
|
|
|
1,178
|
|
Corporate tax credits (1)
|
|
|
776
|
|
|
|
830
|
|
Corporate tax absorbed by tax losses (2)
|
|
|
69
|
|
|
|
5
|
|
Total
|
|
|
60,613
|
|
|
|
65,277
|
|
|
(1)
|
These credits are available to companies and relate to the corporate tax payment in April of the
following year, These credits include, amongst others, training expense credits (SENCE) and property, plant and equipment acquisition
credits that are equivalent to 4% of the property, plant and equipment purchases made during the year, In addition, some credits
relate to the donations the Group has made during 2016 and 2015.
|
|
(2)
|
This concept corresponds to the absorption of non-operating losses (NOL’s) determined by
the company at year end, which must be imputed or recorded in the Retained Taxable Profits Registry (FUT).
|
In accordance with the laws in force and as
provided by article 31 No, 3 of the Income Tax Law, when profits recorded in the FUT that have not been withdrawn or distributed
are totally or partially absorbed by NOL’s, the corporate tax paid on such profits (24%, 22,5%, 21%, 20% or 17%, depending
on the year in which profits were generated) will be considered to be a provisional payment with respect to the portion representing
the absorbed accumulated tax profits.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.1
|
Current tax assets, continued
|
Tax payers are entitled to apply for a refund
of this monthly provisional income tax payments on the absorbed profits recorded in the FUT registry via their tax returns (Form
22).
Therefore, the provisional payment for absorbed
profits (PPAP) recorded in the FUT is in effect a recoverable tax, and as such the Company records it as an asset.
|
28.2
|
Current tax liabilities
|
Current tax liabilities
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
1st Category income tax
|
|
|
22,523
|
|
|
|
30,705
|
|
Foreign company income tax
|
|
|
18,364
|
|
|
|
21,090
|
|
Article 21 single tax
|
|
|
59
|
|
|
|
275
|
|
Total
|
|
|
40,946
|
|
|
|
52,070
|
|
Income tax is calculated based on the profit
or loss for tax purposes that is applied to the effective tax rate applicable in Chile. As established by Law No.20,780, an income
tax rate of 21% was set starting from 2014, a rate of 22.5% for 2015, a rate of 24% for 2016, a rate of 25.5% for 2017, and a rate
of 27% starting from 2018.
The provision for royalty is determined by
applying the tax rate determined for the net operating income (NOI). Currently, the Company pays 5% for the application of the
Tax Invariability Contract established with the Ministry of Economy in 2010.
In conclusion, both concepts represent the
estimated amount the Company will have to pay for income tax and tax on mining.
As of June 30, 2016 and December 31, 2015,
the Company and its subsidiaries have recorded the following consolidated balances for retained tax earnings, income not constituting
revenue subject to income tax, accumulated tax losses and credit for shareholders:
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Taxable profits with credit rights
|
|
|
1,228,440
|
|
|
|
1,254,859
|
|
Taxable profits without credit right
|
|
|
76,187
|
|
|
|
94,073
|
|
Taxable loss
|
|
|
14,017
|
|
|
|
9,947
|
|
Credit for shareholders
|
|
|
328,550
|
|
|
|
302,081
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.3
|
Tax earnings, continued
|
The Retained Taxable Profits Registry (FUT)
is a chronological registry where the profits generated and distributed by the company are recorded. The object of the FUT is to
control the accumulated tax profits of the company that may be distributed, withdrawn or remitted to the owners, shareholders or
partners, and the final taxes that must be imposed, called in Chile Global Aggregate Tax (that levies persons resident or domiciled
in Chile), or additional tax (that levies persons “not” resident or domiciled in Chile).
The FUT Register contains profits with credit
rights and profits without credit rights, which arise out of the inclusion of the net taxable income determined by the company
or the profits received by the company that may be dividends received or withdrawals made during the period.
Profits without credit rights represent the
tax payable by the company within the year and filed the following year, therefore they will be deducted from the FUT Registry
the following year.
Profits with credit rights may be used to reduce
the final tax burden of owners, shareholders or partners, which upon withdrawal are entitled to use the credits associated with
the relevant profits.
In summary, companies use the FUT Registry
to maintain control over the profits they generate that have not been distributed to the owners and the relevant credits associated
with such profits.
|
28.4
|
Income tax and deferred taxes
|
Assets and liabilities recognized in the statement
of financial position are offset if and only if:
|
1
|
The Company has legally recognized before the right the tax authority to offset the amounts recognized
in these entries; and
|
|
2
|
Deferred income tax assets and liabilities are derived from income tax related to the same tax
authority on:
|
|
(i)
|
the same entity or tax subject; or
|
|
(
ii)
|
different entities or tax subjects who intend either to
settle current fiscal assets and liabilities for their net amount, or to realize assets and pay liabilities simultaneously in
each of the future periods in which the Company expects to settle or recover significant amounts of deferred tax assets or liabilities.
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
Deferred income tax assets recognized are the
income taxes that are to be recovered in future periods, related to:
|
a)
|
deductible temporary differences.
|
|
b)
|
the offset of losses obtained in prior periods and not yet subject to tax deduction; and
|
|
c)
|
the offset of unused credits from prior periods.
|
The Company recognizes a deferred tax asset
when there is certainty that these can be offset with tax income from subsequent periods, losses or fiscal credits not yet used,
but solely as long as it is more likely than not that there will be tax earnings in the future against which to charge to these
losses or unused fiscal credits.
Deferred tax liabilities recognized refer to
the amounts of income taxes payable in future periods related to taxable temporary differences.
|
d.1
|
Income tax assets and liabilities as of June 30, 2016 are
detailed as follows:
|
|
|
Net position, assets
|
|
|
Net position, liabilities
|
|
Description of deferred income tax assets and liabilities
|
|
Assets
|
|
|
Liabilities
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
233.916
|
|
Doubtful accounts impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
5,150
|
|
|
|
-
|
|
Accrued vacations
|
|
|
-
|
|
|
|
-
|
|
|
|
3,589
|
|
|
|
-
|
|
Manufacturing expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
111,182
|
|
Unrealized gains (losses) from sales of products
|
|
|
-
|
|
|
|
-
|
|
|
|
90,747
|
|
|
|
-
|
|
Fair value of bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
594
|
|
|
|
-
|
|
Severance indemnity
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,411
|
|
Hedging
|
|
|
-
|
|
|
|
-
|
|
|
|
7,950
|
|
|
|
-
|
|
Inventory of products, spare parts and supplies
|
|
|
1
|
|
|
|
-
|
|
|
|
29,071
|
|
|
|
-
|
|
Research and development expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,083
|
|
Tax losses
|
|
|
-
|
|
|
|
-
|
|
|
|
3,653
|
|
|
|
-
|
|
Capitalized interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,471
|
|
Expenses in assumption of bank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,392
|
|
Unaccrued interest
|
|
|
-
|
|
|
|
-
|
|
|
|
146
|
|
|
|
-
|
|
Fair value of property, plant and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,601
|
|
Employee benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
1,844
|
|
|
|
-
|
|
Royalty deferred income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,212
|
|
Provision for lawsuits and legal expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
7,104
|
|
|
|
-
|
|
Provision for investment plan
|
|
|
-
|
|
|
|
-
|
|
|
|
1,940
|
|
|
|
-
|
|
Provision of fines and crushing site closure
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
642
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
Balance to date
|
|
|
643
|
|
|
|
-
|
|
|
|
151,788
|
|
|
|
371,269
|
|
Net balance
|
|
|
643
|
|
|
|
-
|
|
|
|
-
|
|
|
|
219,481
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
|
d.2
|
Income tax assets and liabilities as of December 31,
2015 are detailed as follows
|
|
|
Net position, assets
|
|
|
Net position, liabilities
|
|
Description of deferred income tax assets and liabilities
|
|
Assets
|
|
|
Liabilities
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
233,073
|
|
Doubtful accounts impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
5,119
|
|
|
|
-
|
|
Accrued vacations
|
|
|
-
|
|
|
|
-
|
|
|
|
3,368
|
|
|
|
-
|
|
Manufacturing expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
109,134
|
|
Unrealized gains (losses) from sales of products
|
|
|
-
|
|
|
|
-
|
|
|
|
87,440
|
|
|
|
-
|
|
Fair value of bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
446
|
|
|
|
-
|
|
Severance indemnity
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,178
|
|
Hedging
|
|
|
-
|
|
|
|
-
|
|
|
|
11,876
|
|
|
|
-
|
|
Inventory of products, spare parts and supplies
|
|
|
1
|
|
|
|
-
|
|
|
|
29,473
|
|
|
|
-
|
|
Research and development expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,981
|
|
Tax losses
|
|
|
-
|
|
|
|
-
|
|
|
|
1,522
|
|
|
|
-
|
|
Capitalized interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,133
|
|
Expenses in assumption of bank loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,651
|
|
Unaccrued interest
|
|
|
-
|
|
|
|
-
|
|
|
|
156
|
|
|
|
-
|
|
Fair value of property, plant and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,375
|
|
Employee benefits
|
|
|
-
|
|
|
|
-
|
|
|
|
1,920
|
|
|
|
-
|
|
Royalty deferred income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,410
|
|
Acquisition of intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Provision for lawsuits and legal expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
7,357
|
|
|
|
-
|
|
Provision for investment plan
|
|
|
-
|
|
|
|
-
|
|
|
|
3,312
|
|
|
|
-
|
|
Provision of fines and crushing site closure
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
160
|
|
|
|
-
|
|
|
|
-
|
|
|
|
445
|
|
Balance to date
|
|
|
161
|
|
|
|
-
|
|
|
|
151,989
|
|
|
|
371,380
|
|
Net balance
|
|
|
161
|
|
|
|
-
|
|
|
|
-
|
|
|
|
219,391
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
|
d.3
|
Reconciliation of changes in deferred tax liabilities
(assets) as of June 30, 2016
|
|
|
Deferred tax
liabilities
(assets) at
the beginning
of the period
|
|
|
Deferred tax
expense
(income)
recognized in
profit or loss
|
|
|
Deferred
tax related
to items
credited
(debited)
directly to
equity
|
|
|
Total increase
(decrease) of
deferred tax
liabilities
(assets)
|
|
|
Deferred
tax
liabilities
(assets) at
the end of
the period
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Depreciation
|
|
|
233,073
|
|
|
|
843
|
|
|
|
-
|
|
|
|
843
|
|
|
|
233,916
|
|
Doubtful accounts impairment
|
|
|
(5,119
|
)
|
|
|
(31
|
)
|
|
|
-
|
|
|
|
(31
|
)
|
|
|
(5,150
|
)
|
Accrued vacations
|
|
|
(3,368
|
)
|
|
|
(221
|
)
|
|
|
-
|
|
|
|
(221
|
)
|
|
|
(3,589
|
)
|
Manufacturing expenses
|
|
|
109,134
|
|
|
|
2,048
|
|
|
|
-
|
|
|
|
2,048
|
|
|
|
111,182
|
|
Unrealized gains (losses) from sales of products
|
|
|
(87,440
|
)
|
|
|
(3,307
|
)
|
|
|
-
|
|
|
|
(3,307
|
)
|
|
|
(90,747
|
)
|
Fair value of bonds
|
|
|
(446
|
)
|
|
|
-
|
|
|
|
(148
|
)
|
|
|
(148
|
)
|
|
|
(594
|
)
|
Severance indemnity
|
|
|
4,178
|
|
|
|
430
|
|
|
|
(197
|
)
|
|
|
233
|
|
|
|
4,411
|
|
Hedging
|
|
|
(11,876
|
)
|
|
|
3,926
|
|
|
|
-
|
|
|
|
3,926
|
|
|
|
(7,950
|
)
|
Inventory of products, spare parts and supplies
|
|
|
(29,474
|
)
|
|
|
402
|
|
|
|
-
|
|
|
|
402
|
|
|
|
(29,072
|
)
|
Research and development expenses
|
|
|
7,981
|
|
|
|
(2,898
|
)
|
|
|
-
|
|
|
|
(2,898
|
)
|
|
|
5,083
|
|
Capitalized interest
|
|
|
3,133
|
|
|
|
338
|
|
|
|
-
|
|
|
|
338
|
|
|
|
3,471
|
|
Expenses in assumption of bank loans
|
|
|
3,651
|
|
|
|
(259
|
)
|
|
|
-
|
|
|
|
(259
|
)
|
|
|
3,392
|
|
Unaccrued interest
|
|
|
(156
|
)
|
|
|
10
|
|
|
|
-
|
|
|
|
10
|
|
|
|
(146
|
)
|
Fair value of property, plant and equipment
|
|
|
3,375
|
|
|
|
226
|
|
|
|
-
|
|
|
|
226
|
|
|
|
3,601
|
|
Employee benefits
|
|
|
(1,920
|
)
|
|
|
76
|
|
|
|
-
|
|
|
|
76
|
|
|
|
(1,844
|
)
|
Royalty deferred income taxes
|
|
|
6,410
|
|
|
|
(198
|
)
|
|
|
-
|
|
|
|
(198
|
)
|
|
|
6,212
|
|
Unused tax losses
|
|
|
(1,522
|
)
|
|
|
(2,131
|
)
|
|
|
-
|
|
|
|
(2,131
|
)
|
|
|
(3,653
|
)
|
Purchase of intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Provision for lawsuits and legal expenses
|
|
|
(7,357
|
)
|
|
|
253
|
|
|
|
-
|
|
|
|
253
|
|
|
|
(7,104
|
)
|
Provision for investment plan
|
|
|
(3,312
|
)
|
|
|
1,372
|
|
|
|
-
|
|
|
|
1,372
|
|
|
|
(1,940
|
)
|
Provision of fines and crushing site closure
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other ID
|
|
|
285
|
|
|
|
(926
|
)
|
|
|
-
|
|
|
|
(926
|
)
|
|
|
(641
|
)
|
Total temporary differences, losses and unused fiscal credits
|
|
|
219,230
|
|
|
|
(47
|
)
|
|
|
(345
|
)
|
|
|
(392
|
)
|
|
|
218,838
|
|
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes
to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
|
d.4
|
Reconciliation of changes in deferred tax liabilities (assets)
as of December 31, 2015
|
|
|
Deferred tax
liabilities
(assets) at
the beginning
of the period
|
|
|
Deferred tax
expense
(income)
recognized in
profit or loss
|
|
|
Deferred
tax related
to items
credited
(debited)
directly to
equity
|
|
|
Total increase
(decrease) of
deferred tax
liabilities
(assets)
|
|
|
Deferred
tax
liabilities
(assets) at
the end of
the period
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Depreciation
|
|
|
233,862
|
|
|
|
(789
|
)
|
|
|
-
|
|
|
|
(789
|
)
|
|
|
233,073
|
|
Doubtful accounts impairment
|
|
|
(6,755
|
)
|
|
|
1,636
|
|
|
|
-
|
|
|
|
1,636
|
|
|
|
(5,119
|
)
|
Accrued vacations
|
|
|
(3,735
|
)
|
|
|
367
|
|
|
|
-
|
|
|
|
367
|
|
|
|
(3,368
|
)
|
Manufacturing expenses
|
|
|
81,650
|
|
|
|
27,484
|
|
|
|
-
|
|
|
|
27,484
|
|
|
|
109,134
|
|
Unrealized gains (losses) from sales of products
|
|
|
(83,355
|
)
|
|
|
(4,085
|
)
|
|
|
-
|
|
|
|
(4,085
|
)
|
|
|
(87,440
|
)
|
Fair value of bonds
|
|
|
(350
|
)
|
|
|
-
|
|
|
|
(96
|
)
|
|
|
(96
|
)
|
|
|
(446
|
)
|
Severance indemnity
|
|
|
5,950
|
|
|
|
(2,081
|
)
|
|
|
309
|
|
|
|
(1,772
|
)
|
|
|
4,178
|
|
Hedging
|
|
|
(5,512
|
)
|
|
|
(6,364
|
)
|
|
|
-
|
|
|
|
(6,364
|
)
|
|
|
(11,878
|
)
|
Inventory of products, spare parts and supplies
|
|
|
(24,632
|
)
|
|
|
(4,842
|
)
|
|
|
-
|
|
|
|
(4,842
|
)
|
|
|
(29,474
|
)
|
Research and development expenses
|
|
|
4,285
|
|
|
|
3,696
|
|
|
|
-
|
|
|
|
3,696
|
|
|
|
7,981
|
|
Capitalized interest
|
|
|
26,904
|
|
|
|
(23,771
|
)
|
|
|
-
|
|
|
|
(23,771
|
)
|
|
|
3,133
|
|
Expenses in assumption of bank loans
|
|
|
4,011
|
|
|
|
(360
|
)
|
|
|
-
|
|
|
|
(360
|
)
|
|
|
3,651
|
|
Unaccrued interest
|
|
|
(150
|
)
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
(156
|
)
|
Fair value of property, plant and equipment
|
|
|
(70
|
)
|
|
|
3,445
|
|
|
|
-
|
|
|
|
3,445
|
|
|
|
3,375
|
|
Employee benefits
|
|
|
(2,450
|
)
|
|
|
530
|
|
|
|
-
|
|
|
|
530
|
|
|
|
(1,920
|
)
|
Royalty deferred income taxes
|
|
|
7,791
|
|
|
|
(1,381
|
)
|
|
|
-
|
|
|
|
(1,381
|
)
|
|
|
6,410
|
|
Unused tax losses
|
|
|
(715
|
)
|
|
|
(807
|
)
|
|
|
-
|
|
|
|
(807
|
)
|
|
|
(1,522
|
)
|
Purchase of intangible assets
|
|
|
235
|
|
|
|
(235
|
)
|
|
|
-
|
|
|
|
(235
|
)
|
|
|
-
|
|
Provision for lawsuits and legal expenses
|
|
|
(3,663
|
)
|
|
|
(3,694
|
)
|
|
|
-
|
|
|
|
(3,694
|
)
|
|
|
(7,357
|
)
|
Provision for investment plan
|
|
|
(8,946
|
)
|
|
|
5,634
|
|
|
|
-
|
|
|
|
5,634
|
|
|
|
(3,312
|
)
|
Provision of fines and crushing site closure
|
|
|
(1,654
|
)
|
|
|
1,654
|
|
|
|
-
|
|
|
|
1,654
|
|
|
|
-
|
|
Other ID
|
|
|
308
|
|
|
|
(23
|
)
|
|
|
-
|
|
|
|
(23
|
)
|
|
|
285
|
|
Total temporary differences, losses and unused fiscal credits
|
|
|
223,009
|
|
|
|
(3,992
|
)
|
|
|
213
|
|
|
|
(3,779
|
)
|
|
|
219,230
|
|
During the period ended June 30, 2016 and December
31, 2015, the Company calculated and accounted for taxable income considering a rate of 24% and 22.5% respectively, in conformity
with Law No, 20,780, Tax Reform, published in the Official Gazette on September 29, 2014.
The main amendments include a gradual increase
in the corporate income tax rate up to 27% starting from 2018.
SQM S.A.
|
El
Trovador 4285
|
Las
Condes, Santiago, Chile
|
Tel:
(56 2) 2425 2000
|
www.sqm.com
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
|
d.5
|
Deferred taxes related to benefits for tax losses
|
The Company’s tax loss carryforwards
(NOL carryforwards) were mainly generated by losses in Chile, which in accordance with current Chilean tax regulations have no
expiration date.
As of June 30, 2016 and December 31, 2015,
tax loss carryforwards (NOL carryforwards) are detailed as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
|
|
|
|
|
Chile
|
|
|
3,653
|
|
|
|
1,522
|
|
Total
|
|
|
3,653
|
|
|
|
1,522
|
|
Tax losses as of June 30, 2016 correspond mainly to SQM S.A., Exploraciones
Mineras S.A. and Agrorama S.A.
|
d.6
|
Unrecognized deferred income tax assets and liabilities
|
Unrecognized deferred tax assets and liabilities as of June 30,
2016 and December 31, 2015 are as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
Assets (liabilities)
|
|
|
Assets (liabilities)
|
|
|
|
|
|
|
|
|
Tax losses (NOL’s)
|
|
|
139
|
|
|
|
139
|
|
Doubtful accounts impairment
|
|
|
81
|
|
|
|
81
|
|
Inventory impairment
|
|
|
1,020
|
|
|
|
1,020
|
|
Pensions plan
|
|
|
(715
|
)
|
|
|
(715
|
)
|
Accrued vacations
|
|
|
29
|
|
|
|
29
|
|
Depreciation
|
|
|
(57
|
)
|
|
|
(57
|
)
|
Other
|
|
|
(19
|
)
|
|
|
(19
|
)
|
Balances to date
|
|
|
478
|
|
|
|
478
|
|
Tax losses mainly relate to the United States, and they expire in
20 years.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
|
d.7
|
Movements in deferred tax assets and liabilities
|
Movements in deferred tax assets and liabilities as of June 30,
2016 and December 31, 2015 are detailed as follows:
|
|
06/30/2016
|
|
|
12/31/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
Liabilities (assets)
|
|
|
Liabilities (assets)
|
|
|
|
|
|
|
|
|
Deferred tax assets and liabilities, net opening balance
|
|
|
219,230
|
|
|
|
223,009
|
|
Increase (decrease) in deferred taxes in profit or loss
|
|
|
(47
|
)
|
|
|
(3,992
|
)
|
Increase (decrease) in deferred taxes in equity
|
|
|
(345
|
)
|
|
|
213
|
|
Balances to date
|
|
|
218,838
|
|
|
|
219,230
|
|
|
d.8
|
Disclosures on income tax expense (income)
|
The Company recognizes current tax and deferred taxes as income
or expenses, and they are included in profit or loss, unless they arise from:
|
(a)
|
a transaction or event recognized in the same period or in a different period, outside profit or loss either in other comprehensive
income or directly in equity; or
|
|
(b)
|
a business combination
|
Current and deferred tax expenses (income) are detailed as follows:
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
Income (expenses)
|
|
|
Income (expenses)
|
|
|
|
|
|
|
|
|
Current income tax expense
|
|
|
|
|
|
|
|
|
Current income tax expense
|
|
|
(57,338
|
)
|
|
|
(64,922
|
)
|
Adjustments to prior year current income tax
|
|
|
-
|
|
|
|
2,114
|
|
Current income tax expense, net, total
|
|
|
(57,338
|
)
|
|
|
(62,808
|
)
|
|
|
|
|
|
|
|
|
|
Deferred tax expense
|
|
|
|
|
|
|
|
|
Deferred tax expense (income) relating to the creation and reversal of temporary differences
|
|
|
47
|
|
|
|
7,141
|
|
Deferred tax expense, net, total
|
|
|
47
|
|
|
|
7,141
|
|
Tax expense (income)
|
|
|
(57,291
|
)
|
|
|
(55,667
|
)
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
Tax expenses (income) for foreign and domestic parties are detailed
as follows:
|
|
06/30/2016
|
|
|
06/30/2016
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
|
Income (expenses)
|
|
|
Income (expenses)
|
|
|
|
|
|
|
|
|
Current income tax expense by foreign and domestic parties, net
|
|
|
|
|
|
|
|
|
Current income tax expense, foreign parties, net
|
|
|
(543
|
)
|
|
|
(3,010
|
)
|
Current income tax expense, domestic, net
|
|
|
(56,795
|
)
|
|
|
(59,798
|
)
|
Current income tax expense, net, total
|
|
|
(57,338
|
)
|
|
|
(62,808
|
)
|
|
|
|
|
|
|
|
|
|
Deferred tax expense by foreign and domestic parties, net
|
|
|
|
|
|
|
|
|
Deferred tax expense, foreign parties, net
|
|
|
571
|
|
|
|
(35
|
)
|
Deferred tax expense, domestic, net
|
|
|
(524
|
)
|
|
|
7,176
|
|
Deferred tax expense, net, total
|
|
|
47
|
|
|
|
7,141
|
|
Income tax expense
|
|
|
(57,291
|
)
|
|
|
(55,667
|
)
|
|
d.9
|
Equity interest in taxation attributable to equity-accounted investees
|
The Company does not recognize any deferred
tax liability in all cases of taxable temporary differences associated with investments in subsidiaries, branches and associated
companies or interest in joint ventures, because as indicated in the standard, the following two conditions are jointly met:
|
(a)
|
the parent, investor or interest holder is able to control the time for reversal of the temporary difference; and
|
|
(b)
|
It is more likely than not that the temporary difference is not reversed in the foreseeable future.
|
In addition, the Company does not recognize
deferred income tax assets for all deductible temporary differences from investments in subsidiaries, branches and associated companies
or interests in joint ventures because it is not possible to meet for the following requirements:
|
(a)
|
Temporary differences are reversed in a foreseeable future;
and
|
|
(b)
|
The Company has tax earnings, against which temporary differences
can be used.
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
|
d.10
|
Disclosures on the tax effects of other comprehensive income
components:
|
Income tax related to other income and expense
components with a charge or credit to net equity
|
|
Amount
before taxes
(expense)
gain
|
|
|
(Expense)
income for
income taxes
|
|
|
Amount
after taxes
|
|
|
|
06/30/2016
|
|
|
06/30/2016
|
|
|
06/30/2016
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Gain (loss) from defined benefit plans
|
|
|
(1,014
|
)
|
|
|
197
|
|
|
|
(817
|
)
|
Cash flow hedge
|
|
|
(359
|
)
|
|
|
765
|
|
|
|
(211
|
)
|
Total
|
|
|
(1,373
|
)
|
|
|
765
|
|
|
|
(1,028
|
)
|
Income tax related to components of other income and
expense with a charge or credit to net equity
|
|
Amount
before taxes
(expense)
gain
|
|
|
((Expense)
income for
income taxes
|
|
|
Amount
after taxes
|
|
|
|
06/30/2015
|
|
|
06/30/2015
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Gain (loss) from defined benefit plans
|
|
|
657
|
|
|
|
(158
|
)
|
|
|
499
|
|
Cash flow hedge
|
|
|
1,217
|
|
|
|
(224
|
)
|
|
|
993
|
|
Total
|
|
|
1,874
|
|
|
|
(382
|
)
|
|
|
1,492
|
|
|
d.11
|
Explanation of the relationship between expense (income)
for tax purposes and accounting income.
|
In accordance with paragraph No, 81, letter
c) of IAS 12, the Company has estimated that the method that discloses more significant information for the users of its financial
statements is the reconciliation of tax expense (income) to the result of multiplying income for accounting purposes by the tax
rate in force in Chile, This option is based on the fact that the Parent and its subsidiaries incorporated in Chile generate almost
the total amount of tax expense (income) and the fact that amounts of subsidiaries incorporated in foreign countries have no relevant
significance within the context of the total amount of tax expense (income).
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
Reconciliation of numbers in income tax expenses
(income) and the result of multiplying financial gain by the rate prevailing in Chile,
|
|
Income (expense)
|
|
|
|
06/30/2016
|
|
|
06/30/2015
|
|
|
|
ThUS$
|
|
|
ThUS$
|
|
Consolidated income before taxes
|
|
|
199,689
|
|
|
|
211,341
|
|
Income tax rate in force in Chile
|
|
|
24
|
%
|
|
|
22,5
|
%
|
|
|
|
|
|
|
|
|
|
Tax expense using the legal rate
|
|
|
(47,925
|
)
|
|
|
(47,552
|
)
|
Effect of royalty tax expense
|
|
|
(2,809
|
)
|
|
|
(4,968
|
)
|
Tax effect of non-taxable revenue
|
|
|
3,100
|
|
|
|
1,966
|
|
Effect of taxable rate of non-deductible expenses for determination of taxable income (loss)
|
|
|
(894
|
)
|
|
|
(2,912
|
)
|
Tax effect of tax rates supported abroad
|
|
|
2,600
|
|
|
|
91
|
|
Other tax effects from the reconciliation between the accounting income and tax expense
|
|
|
(11,363
|
)
|
|
|
(2,292
|
)
|
Tax expense using the effective rate
|
|
|
(57,291
|
)
|
|
|
(55,667
|
)
|
|
d.12
|
Tax periods potentially subject to verification:
|
The Group’s Companies are potentially
subject to income tax audits by tax authorities in each country, These audits are limited to a number of interim tax periods, which,
in general, when they elapse, give rise to the expiration of these inspections,
Tax audits, due to their nature, are often
complex and may require several years, Below, we provide a summary of tax periods that are potentially subject to verification,
in accordance with tax regulations in force in the country of origin:
Chile
According to article 200 of Decree Law No 830,
the tax authority shall review for any deficiencies in its settlement and taxes turn giving rise, by applying a requirement of
3 years term from the expiration of the legal deadline when payment should have been made, Besides, this requirement was extended
to 6 years term for the revision of taxes subject to declaration, when such declaration was not been filed or has been presented
maliciously false.
United States
In the United States, the tax authority may
review tax returns for up to 3 years from the expiration date of the tax return, In the event that an omission or error is detected
in the tax return of sales or cost of sales, the review can be extended for a period of up to 6 years.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 28
|
Income tax and deferred taxes (continued)
|
|
28.4
|
Income tax and deferred taxes, continued
|
Mexico:
In Mexico, the tax authority can review tax returns up to 5 years
from the expiration date of the tax return.
Spain:
In Spain, the tax authority can review tax
returns up to 4 years from the expiration date of the tax return.
Belgium:
In Belgium, the tax authority may review tax
returns for up to 3 years from the expiration date of the tax return if no tax losses exist, In the event of detecting an omission
or error in the tax return, the review can be extended for a period of up to 5 years.
South Africa:
In South Africa, the tax authority may review
tax returns for up to 3 years from the expiration date of the tax return, In the event an omission or error in the tax return is
detected, the review can be extended for a period of up to 5 years.
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 29
|
Disclosures on the effects of fluctuations
in foreign currency exchange rates
|
Assets held in foreign currency subject to fluctuations in exchange
rates are detailed as follows:
Class of assets
|
|
Currency
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
ARS
|
|
|
4
|
|
|
|
1
|
|
Cash and cash equivalents
|
|
BRL
|
|
|
20
|
|
|
|
8
|
|
Cash and cash equivalents
|
|
CLP
|
|
|
1,413
|
|
|
|
2,656
|
|
Cash and cash equivalents
|
|
CNY
|
|
|
765
|
|
|
|
272
|
|
Cash and cash equivalents
|
|
EUR
|
|
|
13,097
|
|
|
|
4,245
|
|
Cash and cash equivalents
|
|
GBP
|
|
|
24
|
|
|
|
-
|
|
Cash and cash equivalents
|
|
IDR
|
|
|
4
|
|
|
|
-
|
|
Cash and cash equivalents
|
|
INR
|
|
|
8
|
|
|
|
14
|
|
Cash and cash equivalents
|
|
MXN
|
|
|
173
|
|
|
|
1,439
|
|
Cash and cash equivalents
|
|
PEN
|
|
|
2
|
|
|
|
1
|
|
Cash and cash equivalents
|
|
THB
|
|
|
-
|
|
|
|
1
|
|
Cash and cash equivalents
|
|
YEN
|
|
|
1,950
|
|
|
|
1,690
|
|
Cash and cash equivalents
|
|
ZAR
|
|
|
1,426
|
|
|
|
4,123
|
|
Subtotal cash and cash equivalents
|
|
|
|
|
18,886
|
|
|
|
14,450
|
|
Other current financial assets
|
|
CLF
|
|
|
-
|
|
|
|
17,507
|
|
Other current financial assets
|
|
CLP
|
|
|
22,217
|
|
|
|
131,633
|
|
Subtotal other current financial assets
|
|
|
|
|
22,217
|
|
|
|
149,140
|
|
Other current non-financial assets
|
|
ARS
|
|
|
1
|
|
|
|
-
|
|
Other current non-financial assets
|
|
AUD
|
|
|
-
|
|
|
|
34
|
|
Other current non-financial assets
|
|
BRL
|
|
|
13
|
|
|
|
8
|
|
Other current non-financial assets
|
|
CLF
|
|
|
60
|
|
|
|
38
|
|
Other current non-financial assets
|
|
CLP
|
|
|
28,744
|
|
|
|
39,091
|
|
Other current non-financial assets
|
|
CNY
|
|
|
50
|
|
|
|
27
|
|
Other current non-financial assets
|
|
EUR
|
|
|
1,354
|
|
|
|
2,278
|
|
Other current non-financial assets
|
|
MXN
|
|
|
1,705
|
|
|
|
1,036
|
|
Other current non-financial assets
|
|
THB
|
|
|
2
|
|
|
|
8
|
|
Other current non-financial assets
|
|
YEN
|
|
|
20
|
|
|
|
29
|
|
Other current non-financial assets
|
|
ZAR
|
|
|
696
|
|
|
|
4,466
|
|
Subtotal other current non-financial assets
|
|
|
|
|
32,645
|
|
|
|
47,015
|
|
Trade and other receivables
|
|
AUD
|
|
|
1
|
|
|
|
-
|
|
Trade and other receivables
|
|
BRL
|
|
|
24
|
|
|
|
19
|
|
Trade and other receivables
|
|
CLF
|
|
|
358
|
|
|
|
993
|
|
Trade and other receivables
|
|
CLP
|
|
|
54,445
|
|
|
|
76,748
|
|
Trade and other receivables
|
|
CNY
|
|
|
53
|
|
|
|
77
|
|
Trade and other receivables
|
|
EUR
|
|
|
40,368
|
|
|
|
38,797
|
|
Trade and other receivables
|
|
GBP
|
|
|
1,196
|
|
|
|
582
|
|
Trade and other receivables
|
|
MXN
|
|
|
595
|
|
|
|
425
|
|
Trade and other receivables
|
|
PEN
|
|
|
19
|
|
|
|
112
|
|
Trade and other receivables
|
|
THB
|
|
|
1,488
|
|
|
|
1,473
|
|
Trade and other receivables
|
|
YEN
|
|
|
361
|
|
|
|
-
|
|
Trade and other receivables
|
|
ZAR
|
|
|
13,702
|
|
|
|
15,549
|
|
Subtotal trade and other receivables
|
|
|
|
|
112,610
|
|
|
|
134,775
|
|
Receivables from related parties
|
|
AED
|
|
|
-
|
|
|
|
-
|
|
Receivables from related parties
|
|
CLP
|
|
|
34
|
|
|
|
52
|
|
Receivables from related parties
|
|
EUR
|
|
|
576
|
|
|
|
604
|
|
Receivables from related parties
|
|
THB
|
|
|
786
|
|
|
|
1,112
|
|
Receivables from related parties
|
|
CNY
|
|
|
-
|
|
|
|
-
|
|
Receivables from related parties
|
|
YEN
|
|
|
211
|
|
|
|
193
|
|
Receivables from related parties
|
|
ZAR
|
|
|
-
|
|
|
|
-
|
|
Subtotal receivables from related parties
|
|
|
|
|
1,607
|
|
|
|
1,961
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 29
|
Disclosures on the effects of fluctuations in foreign
currency exchange rates (continued)
|
Class of assets
|
|
Currency
|
|
06/30/2016
ThUS$
|
|
|
12/31/2015
ThUS$
|
|
Current tax assets
|
|
ARS
|
|
|
4
|
|
|
|
-
|
|
Current tax assets
|
|
CLP
|
|
|
1,380
|
|
|
|
1,453
|
|
Current tax assets
|
|
EUR
|
|
|
124
|
|
|
|
177
|
|
Current tax assets
|
|
ZAR
|
|
|
448
|
|
|
|
424
|
|
Current tax assets
|
|
MXN
|
|
|
679
|
|
|
|
8
|
|
Current tax assets
|
|
PEN
|
|
|
230
|
|
|
|
222
|
|
Subtotal current tax assets
|
|
|
|
|
2,865
|
|
|
|
2,284
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial assets
|
|
CLP
|
|
|
20
|
|
|
|
20
|
|
Other non-current financial assets
|
|
YEN
|
|
|
46
|
|
|
|
39
|
|
Subtotal other non-current financial assets
|
|
|
|
|
66
|
|
|
|
59
|
|
Other non-current non-financial assets
|
|
BRL
|
|
|
142
|
|
|
|
116
|
|
Other non-current non-financial assets
|
|
CLP
|
|
|
721
|
|
|
|
536
|
|
Subtotal other non-current non-financial assets
|
|
|
|
|
863
|
|
|
|
652
|
|
Non-current right receivable
|
|
CLF
|
|
|
409
|
|
|
|
415
|
|
Non-current right receivable
|
|
CLP
|
|
|
672
|
|
|
|
467
|
|
Subtotal non-current rights receivable
|
|
|
|
|
1,081
|
|
|
|
882
|
|
Equity-accounted investees
|
|
AED
|
|
|
28,697
|
|
|
|
23,369
|
|
Equity-accounted investees
|
|
CLP
|
|
|
1,840-
|
|
|
|
1,535
|
|
Equity-accounted investees
|
|
IDR
|
|
|
-
|
|
|
|
-
|
|
Equity-accounted investees
|
|
EUR
|
|
|
8,025
|
|
|
|
7,201
|
|
Equity-accounted investees
|
|
INR
|
|
|
974
|
|
|
|
962
|
|
Equity-accounted investees
|
|
THB
|
|
|
1,805
|
|
|
|
1,672
|
|
Equity-accounted investees
|
|
TRY
|
|
|
18,794
|
|
|
|
15,103
|
|
Subtotal equity-accounted investees
|
|
|
|
|
60,135
|
|
|
|
49,842
|
|
Intangible assets other than goodwill
|
|
CLP
|
|
|
306
|
|
|
|
284
|
|
Intangible assets other than goodwill
|
|
CNY
|
|
|
1
|
|
|
|
1
|
|
Subtotal intangible assets other than goodwill
|
|
|
|
|
307
|
|
|
|
285
|
|
Property, plant and equipment
|
|
CLP
|
|
|
10,122
|
|
|
|
4,089
|
|
Subtotal property, plant and equipment
|
|
|
|
|
10,122
|
|
|
|
4,089
|
|
Total non-current assets
|
|
|
|
|
72,574
|
|
|
|
55,809
|
|
Total assets
|
|
|
|
|
263,403
|
|
|
|
405,434
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 29
|
Disclosures on the effects of fluctuations in foreign
currency exchange rates (continued)
|
Liabilities held in foreign currencies are detailed as follows:
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Class of liability
|
|
Currency
|
|
Up to90
days
ThUS$
|
|
|
91 days to
1 year
ThUS$
|
|
|
Total
ThUS$
|
|
|
Up to90
days
ThUS$
|
|
|
91 days to
1 year
ThUS$
|
|
|
Total
ThUS$
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current financial liabilities
|
|
CLF
|
|
|
4,958
|
|
|
|
45,418
|
|
|
|
50,376
|
|
|
|
4,423
|
|
|
|
5,610
|
|
|
|
10,033
|
|
Other current financial liabilities
|
|
CLP
|
|
|
-
|
|
|
|
20,721
|
|
|
|
20,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal other current financial liabilities
|
|
|
|
|
4,958
|
|
|
|
66,139
|
|
|
|
71,097
|
|
|
|
4,423
|
|
|
|
5,610
|
|
|
|
10,033
|
|
Trade and other payables
|
|
BRL
|
|
|
36
|
|
|
|
2
|
|
|
|
36
|
|
|
|
38
|
|
|
|
-
|
|
|
|
38
|
|
Trade and other payables
|
|
CHF
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Trade and other payables
|
|
CLP
|
|
|
30,617
|
|
|
|
1
|
|
|
|
30,617
|
|
|
|
48,707
|
|
|
|
-
|
|
|
|
48,707
|
|
Trade and other payables
|
|
CNY
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Trade and other payables
|
|
EUR
|
|
|
9,993
|
|
|
|
136
|
|
|
|
9,993
|
|
|
|
8,591
|
|
|
|
-
|
|
|
|
8,591
|
|
Trade and other payables
|
|
GBP
|
|
|
31
|
|
|
|
-
|
|
|
|
31
|
|
|
|
55
|
|
|
|
-
|
|
|
|
55
|
|
Trade and other payables
|
|
INR
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
Trade and other payables
|
|
MXN
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
76
|
|
|
|
-
|
|
|
|
76
|
|
Trade and other payables
|
|
PEN
|
|
|
9
|
|
|
|
-
|
|
|
|
9
|
|
|
|
11
|
|
|
|
-
|
|
|
|
11
|
|
Trade and other payables
|
|
ZAR
|
|
|
1,382
|
|
|
|
-
|
|
|
|
1,382
|
|
|
|
1,727
|
|
|
|
-
|
|
|
|
1,727
|
|
Subtotal trade and other payables
|
|
|
|
|
42,070
|
|
|
|
139
|
|
|
|
42,209
|
|
|
|
59,206
|
|
|
|
-
|
|
|
|
59,206
|
|
Other current provisions
|
|
BRL
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
9
|
|
Other current provisions
|
|
CLP
|
|
|
-
|
|
|
|
69
|
|
|
|
69
|
|
|
|
15
|
|
|
|
-
|
|
|
|
15
|
|
Other current provisions
|
|
EUR
|
|
|
6
|
|
|
|
-
|
|
|
|
6
|
|
|
|
5
|
|
|
|
-
|
|
|
|
5
|
|
Subtotal other current provisions
|
|
|
|
|
6
|
|
|
|
69
|
|
|
|
75
|
|
|
|
29
|
|
|
|
-
|
|
|
|
29
|
|
Current tax liabilities
|
|
CNY
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
2
|
|
Current tax liabilities
|
|
EUR
|
|
|
-
|
|
|
|
794
|
|
|
|
794
|
|
|
|
-
|
|
|
|
889
|
|
|
|
889
|
|
Current tax liabilities
|
|
MXN
|
|
|
-
|
|
|
|
258
|
|
|
|
258
|
|
|
|
-
|
|
|
|
24
|
|
|
|
24
|
|
Subtotal current tax liabilities
|
|
|
|
|
-
|
|
|
|
1,052
|
|
|
|
1,052
|
|
|
|
-
|
|
|
|
915
|
|
|
|
915
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 29
|
Disclosures on the effects of fluctuations in foreign
currency exchange rates (continued)
|
|
|
|
|
06/30/2016
|
|
|
12/31/2015
|
|
Class of liability
|
|
Currency
|
|
Up to 90
days
ThUS$
|
|
|
over 90
days to 1
year
ThUS$
|
|
|
Total
ThUS$
|
|
|
Up to90
days
ThUS$
|
|
|
Over 90
days to 1
year
ThUS$
|
|
|
Total
ThUS$
|
|
Other current non-financial liabilities
|
|
BRL
|
|
|
5
|
|
|
|
-
|
|
|
|
5
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
Other current non-financial liabilities
|
|
CLP
|
|
|
3,799
|
|
|
|
4,630
|
|
|
|
8,429
|
|
|
|
4,684
|
|
|
|
6,556
|
|
|
|
11,240
|
|
Other current non-financial liabilities
|
|
CNY
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28
|
|
|
|
-
|
|
|
|
28
|
|
Other current non-financial liabilities
|
|
EUR
|
|
|
891
|
|
|
|
-
|
|
|
|
891
|
|
|
|
1,143
|
|
|
|
-
|
|
|
|
1,143
|
|
Other current non-financial liabilities
|
|
MXN
|
|
|
821
|
|
|
|
36
|
|
|
|
857
|
|
|
|
394
|
|
|
|
31
|
|
|
|
425
|
|
Other current non-financial liabilities
|
|
YEN
|
|
|
-
|
|
|
|
10
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current non-financial liabilities
|
|
PEN
|
|
|
70
|
|
|
|
-
|
|
|
|
70
|
|
|
|
70
|
|
|
|
-
|
|
|
|
70
|
|
Other current non-financial liabilities
|
|
GBP
|
|
|
9
|
|
|
|
-
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current non-financial liabilities
|
|
ZAR
|
|
|
6
|
|
|
|
-
|
|
|
|
6
|
|
|
|
13
|
|
|
|
-
|
|
|
|
13
|
|
Subtotal other current non-financial liabilities
|
|
|
|
|
5,601
|
|
|
|
4,676
|
|
|
|
10,277
|
|
|
|
6,335
|
|
|
|
6,587
|
|
|
|
12,922
|
|
Total current liabilities
|
|
|
|
|
52,635
|
|
|
|
72,075
|
|
|
|
124,710
|
|
|
|
69,993
|
|
|
|
13,112
|
|
|
|
83,105
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 29
|
Disclosures on the effects of fluctuations in foreign
currency exchange rates (continued)
|
|
|
|
|
06/30/2016
|
|
|
|
|
|
|
|
Class of liability
|
|
Currency
|
|
1 to 2
years
ThUS$
|
|
|
2 to 3
years
ThUS$
|
|
|
3 to 4
years
ThUS$
|
|
|
4 to 5
years
ThUS$
|
|
|
Over 5
years
ThUS$
|
|
|
Total
ThUS$
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial liabilities
|
|
CLF
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
246,361
|
|
|
|
269,997
|
|
Subtotal other non-current financial liabilities
|
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
246,361
|
|
|
|
269,997
|
|
Non-current provisions for employee benefits
|
|
CLP
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
609
|
|
|
|
609
|
|
Non-current provisions for employee benefits
|
|
MXN
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
103
|
|
|
|
103
|
|
Non-current provisions for employee benefits
|
|
YEN
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
580
|
|
|
|
580
|
|
Subtotal non-current provisions for employee benefits
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,292
|
|
|
|
1,292
|
|
Total non-current liabilities
|
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
5,909
|
|
|
|
247,653
|
|
|
|
271,289
|
|
|
|
|
|
12/31/2015
|
|
|
|
|
|
|
|
Class of liability
|
|
Currency
|
|
1 to 2
years
ThUS$
|
|
|
2 to 3
years
ThUS$
|
|
|
3 to 4
years
ThUS$
|
|
|
4 to 5
years
ThUS$
|
|
|
Over 5
years
ThUS$
|
|
|
Total
ThUS$
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current financial liabilities
|
|
CLF
|
|
|
41,485
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
228,083
|
|
|
|
285,807
|
|
Subtotal other non-current financial liabilities
|
|
|
|
|
41,485
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
228,083
|
|
|
|
285,807
|
|
Non-current provisions for employee benefits
|
|
CLP
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
539
|
|
|
|
539
|
|
Non-current provisions for employee benefits
|
|
MXN
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
100
|
|
|
|
100
|
|
Non-current provisions for employee benefits
|
|
YEN
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
495
|
|
|
|
495
|
|
Subtotal non-current provisions for employee benefits
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,134
|
|
|
|
1,134
|
|
Total non-current liabilities
|
|
|
|
|
41,485
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
5,413
|
|
|
|
229,217
|
|
|
|
286,941
|
|
SQM S.A.
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 30
|
Mineral resource exploration and evaluation
expenditure
|
Because of the nature of the operations of
Sociedad Química y Minera de Chile S.A. and its subsidiaries and the type of exploration they conduct (which is different
than other mining businesses where the exploration process results in significant time), the exploration and process and the definition
of the economic feasibility occurs normally within the year. Accordingly, although expenditure is initially capitalized, it could
be recognized in profit or loss for the same year should there be no technical and commercial feasibility. This results in having
no significant expenditure that have no feasibility study at the end of the year.
Prospecting expenditure can be found in 4 different
stages: execution, economically feasible, not economically feasible and under exploitation:
1.
Execution:
prospecting expenditure which are under execution and accordingly there is no yet a definition as to its economic feasibility are
classified in the caption property, plant and equipment, as of June 30, 2016 and December 31, 2015, the balance amounts to ThUS$13,442
and ThUS$ 10,135, respectively,
2.
Economically
feasible:
prospecting expenditure, which upon completion, has been concluded to be economically feasible is classified in the
caption non-current assets in other non-current non-financial assets, as of June 30, 2016 and December 31, 2015, the balance amounts
to ThUS$27,247 and ThUS$ 31,911 respectively,
3.
Not
economically feasible:
Prospecting expenditure, which upon completion it has been concluded that are not economically feasible
are recorded in profit or loss: As of June 30, 2016, this amounts to ThUS$ 0 and ThUS$12 as of June 30, 2015.
4.
Under
exploitation:
Prospecting expenditure under exploitation is classified in the caption current assets in current inventories,
These are amortized considering the exploited material, as of June 30, 2016 and December 31, 2015, the balance amounts to ThUS$2,012
and ThUS$ 1,269 respectively.
For
the amount of capitalized expenditure, the total amount disbursed in exploration and evaluation of mineral resources as of June
30, 2016
ThUS$2,010, and correspond to
non-metallic projects, Such expenditure mainly correspond to studies, either topographical, geological, exploratory drilling, sampling,
among others,.
With respect to this expenditure, the Company
has defined classifying it in accordance with IFRS 6.9:
For exploration expenditure where the mineral
has low ore grade that is not economically exploitable, it is debited directly to profit or loss.
If studies determine that the ore grade is
economically exploitable, it is classified in other non-current assets in the caption stain development and prospecting expenses
and at the time of making the decision for exploiting the zone it is classified in the caption inventories as part of the cost
of raw materials required for production purposes.
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 31
|
Lawsuits and complaints
|
Lawsuits and complaints
During 2015, the Chilean IRS has filed several
lawsuits and complaints related to the so-called “SQM Case”, which are associated with the irregular financing of politicians
against a number of individuals, amongst others, the legal representatives of the Company Patricio de Sominihac T. – CEO
– and Ricardo Ramos R. – Vice President of Finance–. Basically, those lawsuits and complaints relate to alleged
tax crimes associated with a possible undue decrease in taxable net income of the Company and two of its subsidiaries over the
last seven years by recording as expenses in their accounting records invoices and fee receipts, which could be considered to be
ideologically false. Such legal actions are also filed against the taxpayers who provided the tax documents that allowed the alleged
performance of the related illicit acts.
Likewise, during 2015 Oscar Gajardo S. filed
several similar lawsuits against the Directors and Executives of ten major Chilean companies, including SQM, alleging undue appropriation
incurred by making contributions regulated by the Law and the Chilean Electoral Service without the approval of their shareholders.
Subsequently, Mr. Gajardo filed a new lawsuit against Patricio Contesse G. – former CEO of SQM – and Ricardo Ramos
R. el al for the alleged perpetration of several crimes for the irregular financing of politicians to the detriment of SQM and
its shareholders.
Additionally, during 2015 and within the context
of the “SQM Case”, the Deputy of the Tarapacá Region of Chile Hugo Gutiérrez G. filed a lawsuit for alleged
extortion-bribery and money laundering referred to in Law No. 20.393 on Legal Responsibility of Juridical Persons against SQM and
its legal representative Patricio de Sominihac T. and Senators of the Tarapacá Region of Chile Jaime Orpis B. and Fulvio
Rossi C.
Actions performed by the Authority
The Public Ministry and Chilean IRS (Servicio
de Impuestos Internos (SII)) have performed a number of actions within the framework of the so-called “SQM Case” where
the Company and its executives have provided their cooperation. Several of the Company’s executives have granted access to
their computers and made several statements at the request of the Prosecutors responsible for the investigation. Additionally,
SQM has provided physical and digital copies of its accounting records and its subsidiaries’ accounting records. In addition,
SQM has also provided the Public Ministry with its email files and all the documentation that has been required by the related
authority.
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 31
|
Lawsuits and complaints, (continued)
|
Shearman & Sterling and Ad-Hoc Committee
At its Extraordinary Meeting of February 26,
2015, the Board of Directors formed an Ad-Hoc Committee (the Committee) starting April 24, 2015, composed of the Directors Robert
A. Kirkpatrick, Wolf von Appen B. and Edward J. Waitzer (the latter acting as Chairman) to investigate and gather all the information
necessary related to the “Penta case – specific SQM Case” to report upon performance of such activities to the
Board of Directors the results, conclusions and recommendations resulting from its work. The Board of Directors delegated in the
Committee the authority required to perform its duties and empowered it so that at its discretion engages all legal and accounting
advisory required and other independent external advisory services as it deems appropriate and that upon performing its duties
reports to the Board of Directors under the terms indicated above.
The Committee engaged the legal Advisory of
the law firms Shearman & Sterling and Vial / Serrano, and the forensic services provided by the US company FTI (the “Advisors”)
to conduct an investigation and analysis of the possible contingencies to which SQM may be exposed under the standards contained
in the Foreign Corrupt Practices Act (FCPA) of the United States of America, which is applicable to the Company as the issuer of
securities in the US market. Specifically, the investigation was focused on conducting an analysis of: (a) whether the Company
had made any undue payment defined as a corrupt practice for FCPA purposes; and (b) whether the Company had not complied with the
accounting regulations in accordance with that established in the FCPA.
On December 15, 2015, the Committee, together
with the Advisors, reported to the Board of Directors the results, conclusions and recommendations resulting from their work. Likewise,
on the same date, the Advisors reported such results, conclusions and recommendations to the Chilean Authorities and on January
7, 2016, they reported these to the US Regulators.
The main conclusions contained in the Ad-Hoc
Committee Report are: (a) the Committee identified payments authorized by the former General Manager of SQM, Mr. Patricio Contesse
G. with respect to which the Company found no sufficient supporting documentation; (b) no evidence was identified demonstrating
that such payments were made with the purpose of inducing an public officer to act or refrain from acting with the purpose of helping
SQM obtain economic benefits: (c) a conclusion was reached with respect to the cost center managed by the former General Manager
of SQM Mr. Patricio Contesse G., that the Company’s accounting records did not accurately reflect the transactions challenged,
notwithstanding the fact that, because of their amount, such transactions are below the materiality level defined by the Company’s
external auditors determined in comparison to the volume of equity, sales, expenses or profits of SQM within the reported period;
and that (d) SQM’s internal controls were not sufficient to monitor the expenses included in the cost center managed by the
former General Manager of SQM and that the Company relied in the adequate use of the resources by Mr. P. Contesse G. ”
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 32
|
Sanction proceedings
|
On April 1, 2015, the SVS started an administrative
proceeding against five Directors of SQM for supposedly not having provided to the market on a timely and truthful basis information
which could be significant for making investment decisions. Such information mainly relates to the preliminary estimate of the
impact on the Company’s financial statements of certain expenses paid by the Company between 2008 and 2014 and which might
not qualify as expenses under current Chilean tax regulations because of the absence of supporting documentation.
On December 31, 2015, the Company reported
that the Chilean Superintendence of Securities and Insurance (SVS) has made its resolution to impose sanctions on Patricio Contesse
Fica, Julio Ponce Lerou – former Company’s Directors–, Hernán Büchi Buc, Juan Antonio Guzmán
Molinari and Wolf von Appen Berhmann –current Company’s Directors – for not having reported to the market, in
March 2015, as an Essential event and in their role of Company’s Directors, on the expenses that SQM incurred during certain
years, which did not have sufficient reporting documentation or might be considered to be unnecessary to generate income. The sanction
imposed relates to a fine of UF 1,000 on each of the aforementioned individuals and a remedy can be sought with the Chilean Superintendence
of Securities and Insurance (SVS) and courts of justice.
|
Note 33
|
Potential Arbitration Proceeding for
the Settlement Insurance Policy for Heavy Rains in the Atacama Saltpeter Deposit
|
On February 7 and 8, 2013, strong and unusual
heavy rains occurred on the Atacama Saltpeter deposit in the Antofagasta Region of Chiloe affecting SQM’s facilities and
resulting and damages in its roads, buildings, laboratories, evaporation ponds, equipment and other assets and loss of products-in-process
and finished products.
On June 18, 2015. The insurance appraiser,
SGC Transporte, issued the Final Settlement Report within the framework of the “Stock Throughput” insurance policy
engaged by the Company with insurance company RSA, which, in summary indicated that the claim reported is covered by such policy
and that total losses have been quantified as amounting to US$ 20.7 million. RSA has rejected such Final Settlement Report
issued by SGC Transporte. With the purpose of requiring the payment of the amount owed by the insurance company, Compañía
de Seguros RSA, in conformity with the procedure established in the related insurance policy, an arbitrator was appointed and the
arbitration procedure was agreed. The related complaint will be filed in the next few days.
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 34
|
Closure of the Pedro de Valdivia Site
|
On September 22, 2015, the Company reported
to the Chilean Superintendence of Securities and Insurance (SVS) that its Board of Directors opted to close the mining operations
at the Pedro de Valdivia site and a portion of such site’s industrial operations. The larger part of this closure will occur
at the end of November 2015 and the nitrate and iodine operations that will continue to generate production in the remaining industrial
plants at the Pedro de Valdivia operation will amount to approximately one third of the current production volumes.
This decision is based on the fact that the
Company has continued to increase its production capacity of iodine and nitrate salts in its industrial mining operations at the
Nueva Victoria site and has reduced its production costs to meet sales forecasts and increase its current worldwide market share
in the iodine market.
As of December 31, 2015, the effect on profit
or loss of stopping operations are detailed as follows:
|
|
ThUS$
|
|
Property, plant and equipment
|
|
|
36,823
|
|
Constructions in progress
|
|
|
3,195
|
|
Total property, plant and equipment
|
|
|
40,018
|
|
Legal and voluntary severance indemnity payments
|
|
|
17,647
|
|
Total closure of the Pedro de Valdivia site
|
|
|
57,665
|
|
|
Note 35
|
Effects on Premises after the Rain Storms
in the Tocopilla Zone
|
Subsequent to the rain storms that affected
the Tocopilla Zone at the beginning of August 2015, SQM reviewed the status of the railway that joints the Coya Sur location and
Port of Tocopilla. The observation found certain damaged and weakened zones. Because of this, the train is currently not operating.
Detailed studies are being conducted to determine the steps that should be followed.
|
Note 36
|
Events occurred after the reporting date
|
|
36.1
|
Authorization of the financial statements
|
The consolidated financial statements of Sociedad
Química y Minera de Chile S.A. and subsidiaries prepared in accordance with International Financial Reporting Standards
for the period ended June 30, 2016 were approved and authorized for issuance by the Board of Directors at their meeting held on
August 24, 2016.
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
|
Notes to the Consolidated Financial Statements as of June 30, 2016 ( Unaudited )
|
|
Note 36
|
Events occurred after the reporting date, (continued)
|
|
36.2
|
Disclosures on events occurring
after the reporting date
|
On August 17, 2016, CORFO noticed a new arbitration
claim filed against SQM Potasio S.A., SQM S.A. and SQM Salar S.A., by virtue of which it requires the early termination of the
Project Contract entered into on November 12, 1993 and other related contracts, among other matters.
Management is unaware of other significant
events, occurred between June 30, 2016 and the date of issuance of these consolidated financial statements that may significantly
affect them.
|
36.3
|
Detail of dividends declared after
the reporting date
|
At the closing date of the financial statements, there are no dividends
declared after the reporting date.
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
CHEMICAL AND MINING COMPANY OF CHILE INC.
|
|
|
|
(Registrant)
|
|
|
Date: September 14, 2016
|
/s/ Ricardo Ramos
|
|
|
|
By: Ricardo Ramos
|
|
|
|
CFO & Vice President of Corporate Services
|
Persons who are to respond to the collection
of information contained SEC 1815 (04-09) in this form are not required to respond unless the form displays currently valid OMB
control number.
SQM
|
|
El Trovador 4285
|
|
Las Condes, Santiago, Chile
|
|
Tel: (56 2) 2425 2000
|
|
www.sqm.com
|
|
Sociedad Quimica y Miner... (NYSE:SQM)
Historical Stock Chart
From Apr 2024 to May 2024
Sociedad Quimica y Miner... (NYSE:SQM)
Historical Stock Chart
From May 2023 to May 2024