15.

Property, plant and equipment

The annual weighted average rates by asset class are shown below. This information is based on the consolidated depreciation of the assets recognized in the year, compared, after annualization and elimination of any non-typical movement, to the net balance of the assets in the previous year:


Class of assets	Weighted average depreciation rate (%)
	12.31.2018			12.31.2017
Buildings and improvements		3.8	%		4.6	%
Installations		4.9	%		5.5	%
Machinery and equipment		10.0	%		13.0	%
Furniture and fixtures		9.3	%		11.8	%
Vehicles		22.7	%		27.7	%
Aircraft		11.0	%		8.0	%
Computers and peripherals		27.6	%		28.2	%
Tooling		16.5	%		16.4	%
Other assets		0.1	%		0.7	%
Exchange pool program assets		3.7	%		3.8	%


12.31.2018
	Land		Buildings and improvements			Installations			Machinery and equipment			Furniture and fixtures			Vehicles			Aircraft (i)			Computers and peripherals			Tooling			Other assets			Exchange pool program assets			Construction in progress			Total
Cost
At December 31, 2017		11.0		741.8			161.4			971.8			74.9			17.5			193.2			190.3			620.9			26.0			672.5			76.5			3,757.8
Additions		—		1.3			—			28.5			1.9			0.5			10.2			6.3			16.6			1.4			46.3			41.3			154.3
Disposals		—		(10.9	)		(0.9	)		(36.5	)		(2.1	)		(0.5	)		(0.3	)		(6.4	)		(1.7	)		—			(20.2	)		(0.7	)		(80.2	)
Impairment(ii)		—		—			—			(0.3	)		—			—			(6.0	)		—			(2.5	)		—			—			—			(8.8	)
Reclassifications*		—		19.3			2.1			8.8			(0.1	)		—			(120.8	)		0.9			0.5			0.2			(31.8	)		(26.7	)		(147.6	)
Interest on capitalized assets		—		—			—			—			—			—			—			—			—			—			—			4.8			4.8
Translation adjustments		—		(1.4	)		(0.2	)		0.1			(0.4	)		(0.2	)		(0.1	)		(1.1	)		(4.7	)		—			(16.0	)		(1.5	)		(25.5	)

At December 31, 2018		11.0		750.1			162.4			972.4			74.2			17.3			76.2			190.0			629.1			27.6			650.8			93.7			3,654.8

Accumulated depreciation
At December 31, 2017		—		(208.9	)		(104.1	)		(506.6	)		(43.4	)		(13.4	)		(81.3	)		(148.4	)		(329.7	)		(9.9	)		(207.2	)		—			(1,652.9	)
Depreciation		—		(20.2	)		(2.8	)		(46.4	)		(2.9	)		(1.0	)		(9.1	)		(11.5	)		(48.1	)		—			(17.2	)		—			(159.2	)
Disposals		—		10.7			0.9			33.5			1.5			0.4			0.3			6.3			0.7			—			6.9			—			61.2
Reclassifications*		—		0.1			0.3			2.8			—			—			51.4			(1.7	)		—			(1.5	)		—			—			51.4
Interest on capitalized assets		—		(1.5	)		—			—			—			—			—			—			—			—			—			—			(1.5	)
Translation adjustments		—		0.4			0.1			(1.4	)		0.2			0.2			—			0.8			5.6			—			5.0			—			10.9

At December 31, 2018		—		(219.4	)		(105.6	)		(518.1	)		(44.6	)		(13.8	)		(38.7	)		(154.5	)		(371.5	)		(11.4	)		(212.5	)		—			(1,690.1	)

Net
At December 31, 2017		11.0		532.9			57.3			465.2			31.5			4.1			111.9			41.9			291.2			16.1			465.3			76.5			2,104.9
At December 31, 2018		11.0		530.7			56.8			454.3			29.6			3.5			37.5			35.5			257.6			16.2			438.3			93.7			1,964.7


12.31.2017
	Land		Buildings and improvements			Installations			Machinery and equipment			Furniture and fixtures			Vehicles			Aircraft (i)			Computers and peripherals			Tooling			Other assets			Exchange pool program assets			Construction in progress			Total
Cost
At December 31, 2016		11.0		657.1			156.1			909.8			74.1			16.8			316.7			179.3			587.8			29.4			669.7			116.4			3,724.2
Additions		—		4.1			—			40.3			3.6			0.4			14.4			11.4			30.8			8.6			43.6			80.5			237.7
Disposals		—		(8.1	)		—			(10.1	)		(1.9	)		(0.7	)		(8.1	)		(0.8	)		(1.0	)		—			(33.5	)		(1.1	)		(65.3	)
Impairment(ii)		—		—			—			(2.2	)		—			—			(25.8	)		—			(2.1	)		—			—			—			(30.1	)
Reclassifications*		—		85.5			4.8			22.5			(1.4	)		0.5			(104.0	)		(0.7	)		5.1			(12.0	)		(22.2	)		(142.0	)		(163.9	)
Interest on capitalized assets		—		—			—			—			—			—			—			—			—			—			—			22.1			22.1
Translation adjustments		—		3.2			0.5			11.5			0.5			0.5			—			1.1			0.3			—			14.9			0.6			33.1

At December 31, 2017		11.0		741.8			161.4			971.8			74.9			17.5			193.2			190.3			620.9			26.0			672.5			76.5			3,757.8

Accumulated depreciation
At December 31, 2016		—		(191.3	)		(101.4	)		(445.1	)		(40.0	)		(12.7	)		(153.9	)		(136.2	)		(278.9	)		(9.4	)		(201.1	)		—			(1,570.0	)
Depreciation		—		(21.3	)		(3.0	)		(60.3	)		(4.0	)		(1.2	)		(25.6	)		(12.1	)		(50.8	)		(0.2	)		(18.0	)		—			(196.5	)
Disposals		—		4.1			—			7.5			1.0			0.6			6.9			0.6			0.3			—			8.8			—			29.8
Reclassifications*		—		0.6			0.4			—			—			0.3			91.3			—			—			(0.3	)		—			—			92.3
Translation adjustments		—		(1.0	)		(0.1	)		(8.7	)		(0.4	)		(0.4	)		—			(0.7	)		(0.3	)		—			3.1			—			(8.5	)

At December 31, 2017		—		(208.9	)		(104.1	)		(506.6	)		(43.4	)		(13.4	)		(81.3	)		(148.4	)		(329.7	)		(9.9	)		(207.2	)		—			(1,652.9	)

Net
At December 31, 2016		11.0		465.8			54.7			464.7			34.1			4.1			162.8			43.1			308.9			20.0			468.6			116.4			2,154.2
At December 31, 2017		11.0		532.9			57.3			465.2			31.5			4.1			111.9			41.9			291.2			16.1			465.3			76.5			2,104.9


12.31.2016
	Land		Buildings and improvements			Installations			Machinery and equipment			Furniture and fixtures			Vehicles			Aircraft (i)			Computers and peripherals			Tooling			Other assets			Exchange pool program assets			Construction in progress			Total
Cost
At December 31, 2015		11.0		616.5			151.8			853.3			70.5			17.0			323.5			163.2			533.5			22.8			622.6			75.8			3,461.5
Additions		—		0.6			—			54.8			4.0			0.7			137.4			17.3			54.6			8.6			65.5			91.7			435.2
Disposals		—		(9.3	)		(0.2	)		(7.6	)		(2.3	)		(0.9	)		(17.8	)		(3.0	)		(0.9	)		—			(15.1	)		(7.1	)		(64.2	)
Impairment		—		—			—			—			—			—			(27.0	)		—			—			—			—			—			(27.0	)
Impairment (iii)		—		—			—			—			—			—			(64.9	)		—			—			—			—			—			(64.9	)
Reclassifications*		—		49.9			4.4			10.2			1.9			0.2			(34.7	)		1.7			0.9			(2.0	)		1.2			(59.8	)		(26.1	)
Interest on capitalized assets		—		—			—			—			—			—			—			—			—			—			—			16.1			16.1
Translation adjustments		—		(0.6	)		0.1			(0.9	)		—			(0.2	)		0.2			0.1			(0.3	)		—			(4.5	)		(0.3	)		(6.4	)

At December 31, 2016		11.0		657.1			156.1			909.8			74.1			16.8			316.7			179.3			587.8			29.4			669.7			116.4			3,724.2

Accumulated depreciation
At December 31, 2015		—		(180.8	)		(97.2	)		(389.5	)		(37.9	)		(12.5	)		(156.4	)		(128.7	)		(233.4	)		(9.4	)		(188.3	)		—			(1,434.1	)
Depreciation				(20.0	)		(4.2	)		(62.7	)		(4.1	)		(1.1	)		(25.4	)		(10.4	)		(44.7	)		—			(21.9	)					(194.5	)
Disposals		—		9.2			—			4.9			1.9			0.8			15.5			2.9			0.5			—			6.0			—			41.7
Reclassifications*		—		—			—			1.8			—			—			8.6			(0.1	)		(1.6	)		—			—			—			8.7
Translation adjustments		—		0.3			—			0.4			0.1			0.1			3.8			0.1			0.3			—			3.1			—			8.2

At December 31, 2016		—		(191.3	)		(101.4	)		(445.1	)		(40.0	)		(12.7	)		(153.9	)		(136.2	)		(278.9	)		(9.4	)		(201.1	)		—			(1,570.0	)

Net		11.0		435.7			54.6			463.8			32.6			4.5			167.1			34.5			300.1			13.4			434.3			75.8			2,027.4
At December 31, 2015		11.0		465.8			54.7			464.7			34.1			4.1			162.8			43.1			308.9			20.0			468.6			116.4			2,154.2

On December 31, 2018, 2017 and 2016, reclassification of “Aircraft” and “Exchange pool program assets” classes refers to aircraft and items transferred to the inventory for sale purposes. In addition, in September 2017, 17 ERJ 145 aircraft were transferred to inventory in order to be disassembled and sold as parts (part-out procedures).

(i)	The aircraft are used for testing, shuttle and operating leases and are adjusted to fair value, if applicable. The following aircraft are held:

•

December 31, 2018: three ERJ 135, 15 ERJ 145, one EMBRAER 190, one EMBRAER 120, one Legacy 450, one 690B; and

•

December 31, 2017: nine ERJ 135, 26 ERJ 145, four EMBRAER 170, one EMBRAER 190, one EMBRAER 120, one Legacy 450, one Legacy 500, one Phenom 300, one 690B.

(ii)	Impairment losses recognized as discussed in Note 17.

As of December 31, 2018, property, plant and equipment of US$ 114.5 were pledged as collateral for loans, financing and labor contingencies (December 31, 2017, US$ 134.1).

The average rate for capitalization of borrowing costs is 5.5% p.a. for the year ended December 31, 2018 (5.4% p.a. for year ended December 31, 2017).