LATAM Airlines : Report of foreign issuer rules 13a-16 and 15d-16 of the Securities Exchange Act

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

March 13, 2019

Commission File Number 1-14728

LATAM Airlines Group S.A.

(Translation of Registrant's Name Into English)

Presidente Riesco 5711, 20th floor

Las Condes

Santiago, Chile

(Address of principal executive offices)

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 ☒ 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): ☐

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): ☐

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

FREE TRANSLATION

DECEMBER 31, 2018

CONTENTS

Consolidated Statement of Financial Position 5

Consolidated Statement of Income by Function 7

Consolidated Statement of Comprehensive Income 8

Consolidated Statement of Changes in Equity 9

Consolidated Statement of Cash Flows - Direct Method 11

Notes to the Consolidated Financial Statements 12

CLP	-	CHILEAN PESO
ARS	-	ARGENTINE PESO
US$	-	UNITED STATES DOLLAR
THUS$	-	THOUSANDS OF UNITED STATES DOLLARS
COP	-	COLOMBIAN PESO
BRL/R$	-	BRAZILIAN REAL
THR$	-	THOUSANDS OF BRAZILIAN REAL

2

Contents of the notes to the consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries.
Notes	Page
1 - General information	12
2 - Summary of significant accounting policies	16
2.1. Basis of Preparation	16
2.2. Basis of Consolidation	23
2.3. Foreign currency transactions	24
2.4. Property, plant and equipment	26
2.5. Intangible assets other than goodwill	26
2.6. Goodwill	27
2.7. Borrowing costs	27
2.8. Losses for impairment of non-financial assets	27
2.9. Financial assets	28
2.10. Derivative financial instruments and hedging activities	28
2.11. Inventories	30
2.12. Trade and other accounts receivable	30
2.13. Cash and cash equivalents	30
2.14. Capital	30
2.15. Trade and other accounts payables	30
2.16. Interest-bearing loans	31
2.17. Current and deferred taxes	31
2.18. Employee benefits	31
2.19. Provisions	32
2.20. Revenue recognition	32
2.21. Leases	33
2.22. Non-current assets (or disposal groups) classified as held for sale	34
2.23. Maintenance	34
2.24. Environmental costs	34
3 - Financial risk management	34
3.1. Financial risk factors	34
3.2. Capital risk management	46
3.3. Estimates of fair value	46
4 - Accounting estimates and judgments	48
5 - Segmental information	52
6 - Cash and cash equivalents	55
7 - Financial instruments	56
7.1. Financial instruments by category	56
7.2. Financial instruments by currency	58
8 - Trade, other accounts receivable and non-current accounts receivable	59
9 - Accounts receivable from/payable to related entities	62
10 - Inventories	63
11 - Other financial assets	64
12 - Other non-financial assets	65
13 - Non-current assets and disposal group classified as held for sale	66
14 - Investments in subsidiaries	67

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15 - Intangible assets other than goodwill 70

16 - Goodwill 71

17 - Property, plant and equipment 73

18 - Current and deferred tax 79

19 - Other financial liabilities 83

20 - Trade and other accounts payables 92

21 - Other provisions 93

22 - Other non-financial liabilities 95

23 - Employee benefits 97

24 - Accounts payable, non-current 99

25 - Equity 99

26 - Revenue 104

27 - Costs and expenses by nature 104

28 - Other income, by function 105

29 - Foreign currency and exchange rate differences 106

30 - Earnings per share 114

31 - Contingencies 115

32 - Commitments 126

33 - Transactions with related parties 130

34 - Share based payments 131

35 - Statement of cash flows 134

36 - The environment 136

37 - Events subsequent to the date of the financial statements 137

4

ASSETSCurrent assets

Cash and cash equivalents Other financial assets Other non-financial assets

Trade and other accounts receivable Accounts receivable from related entities Inventories

Current tax assets

Total current assets other than non-current assets (or disposal groups) classified as held for sale or as held for distribution to owners

Non-current assets (or disposal groups) classified as held for sale or as held for distribution to owners

Total current assets

Non-current assets

Other financial assets Other non-financial assets Accounts receivable

Intangible assets other than goodwill Goodwill

Property, plant and equipment Current tax assets

Deferred tax assets

Total non-current assets Total assets

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note
6 - 7
7 - 11
12
7 - 8
7 - 9
10
18

The accompanying Notes 1 to 37 form an integral part of these consolidated financial statements.

As of	As of
December 31,	December 31,
2018	2017
ThUS$	ThUS$
1,081,642	1,142,004
383,984	559,919
320,977	221,188
1,162,582	1,214,050
2,931	2,582
279,344	236,666
69,134	77,987
3,300,594	3,454,396
13	5,768	291,103
3,306,362	3,745,499
7 - 11	58,700	88,090
12	233,741	220,807
7 - 8	5,381	6,891
15	1,441,072	1,617,247
16	2,294,072	2,672,550
17	9,953,365	10,065,335
18	757	17,532
18	273,327	364,021
14,260,415	15,052,473
17,566,777	18,797,972

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