11.

Inventories


	12.31.2018			12.31.2017
Raw materials		897.6			865.6
Work in process		891.6			612.4
Spare parts		424.3			405.2
Finished goods (i)		146.4			89.9
Held by third parties		108.7			82.3
Inventory in transit		91.1			85.2
Consumption materials		48.3			47.6
Used aircraft (ii)		46.0			102.0
Advances to suppliers		31.4			28.9
Loss on adjustment to market value (iii)		(7.7	)		(17.2	)
Loss due to obsolescence (iv)		(170.7	)		(153.2	)

		2,507.0			2,148.7

(i)	The following aircraft were held in the finished products inventory:

•

December 31, 2018: two Legacy 450, four Legacy 500, one Phenom 100; three Phenom 300, one Lineage and two Ipanemas.

•

December 31, 2017: one Legacy 450, one Phenom 100, one Phenom 300, two Legacy 500, one Lineage and two Ipanemas.

Of the total aircraft held in inventories as of December 31, 2018, one Ipanema and one Phenom 300 had been delivered by until March 25, 2019.

(ii)	The following used aircraft were held in inventory as available for sale:

•

December 31, 2018: one Legacy 450, one Lineage, one Phenom 300;

•

December 31, 2017: three ERJ 140, two Lineage and one Boeing BBJ 737

(iii)

Refers to the provision recorded for adjustments to the realizable value of used aircraft, as follows:


	12.31.2018			12.31.2017			12.31.2016
Beginning balance		(17.2	)		(19.9	)		(25.4	)
Additions		(8.8	)		(8.2	)		(14.0	)
Disposals		18.3			10.9			19.5

Ending balance		(7.7	)		(17.2	)		(19.9	)

(iv)

A provision was recorded for items without activity for over two years and with no planned use in the production program, and to cover expected losses from excess inventories or obsolete work in progress, except for inventories of spare parts, for which the provision is based on technical obsolescence of items without activity for over two years. Changes in the provision for obsolescence were as follows:


	12.31.2018			12.31.2017			12.31.2016
Beginning balance		(153.2	)		(138.1	)		(161.2	)
Additions		(59.8	)		(48.7	)		(59.8	)
Disposals		41.5			37.0			83.7
Foreign exchange loss		0.8			(3.4	)		(0.8	)

Ending balance		(170.7	)		(153.2	)		(138.1	)