Provisions and contingent liabilities (Tables)

12 Months Ended

Dec. 31, 2018

24.1

Provisions


	12.31.2018		12.31.2017		01.01.2017
			(Restated)		(Restated)
Product warranties (i)		98.0		101.1		94.1
Provisions for labor, taxes and civil (ii)		58.4		54.2		93.1
Taxes		31.4		41.8		28.5
Post retirement benefits		31.7		36.1		46.0
Environmental provision		2.4		1.8		1.0
Voluntary redundancy scheme		—		—		25.3
Other		20.5		25.3		14.8

		242.4		260.3		302.8

Current portion		116.9		124.1		123.8
Non-current portion		125.5		136.2		179.0

(i)	Recorded to cover product-related expenditure, including warranties and contractual obligations to implement improvements to aircraft delivered in order to meet performance targets.

(ii)	Provisions for labor, tax or civil contingencies, as shown in the table below Note 24.1.1.

Summary of Change in Provision

Change in provision:


	Product warranties			Provisions labor, taxes and civil			Post retirement benefits			Taxes			Voluntary redundancy scheme			Environment provision			Other			Total
At January 01, 2016 (Restated)		95.7			49.9			26.8			16.9			—			1.7			7.7			198.7

Additions		51.9			43.3			11.2			12.0			118.0			1.0			17.0			254.4
Interest		—			4.3			3.3			—			—			—			—			7.6
Used/payments		(31.7	)		(2.7	)		—			—			(77.0	)		—			(8.1	)		(119.5	)
Reversals		(20.6	)		(5.5	)		—			—			(15.0	)		(2.0	)		—			(43.1	)
Translation adjustments		(1.2	)		3.8			4.7			(0.4	)		(0.7	)		0.3			(1.8	)		4.7

At December 31, 2016 (Restated)		94.1			93.10			46.0			28.5			25.3			1.0			14.8			302.8

Additions		42.5			12.7			3.2			14.0			7.0			3.0			7.1			89.5
Interest		—			12.5			4.4			—			—			—			—			16.9
Used/payments		(26.8	)		(61.1	)		(15.3	)		—			(31.0	)		—			—			(134.2	)
Reversals		(8.8	)		(2.3	)		(1.4	)		—			(1.0	)		(2.0	)		—			(15.5	)
Translation adjustments		0.1			(0.7	)		(0.8	)		(0.7	)		(0.3	)		(0.2	)		3.4			0.8

At December 31, 2017 (Restated)		101.1			54.2			36.1			41.8			—			1.8			25.3			260.3

Additions		38.1			24.6			0.6			0.8			—			2.0			8.0			74.1
Interest		—			5.1			2.9			—			—			—			—			8.0
Used/payments		(24.9	)		(6.4	)		(3.3	)		(11.2	)		—			—			—			(45.8	)
Reversals		(16.2	)		(11.8	)		(0.2	)		—			—			(1.0	)		—			(29.2	)
Translation adjustments		(0.1	)		(7.3	)		(4.4	)		—			—			(0.4	)		(12.8	)		(25.0	)

At December 31, 2018		98.0			58.4			31.7			31.4			—			2.4			20.5			242.4

Summary of Labor, Tax and Civil Provisions

24.1.1

Labor, tax and civil provisions


	12.31.2018		12.31.2017
Tax related
IRPJ (i)		9.2		10.1
PIS and COFINS		5.3		6.8
Social security contributions (ii)		2.4		2.8
Import taxes (iii)		0.8		0.9
FUNDAF		0.1		—
Others		0.2		0.4

		18.0		21.0
Labor related
Plurimas 461/1379 (iv)		10.0		11.3
Reintegration (v)		7.0		5.1
Overtime (vi)		6.0		1.7
Dangerousness (vii)		1.0		0.1
Indemnity (viii)		3.1		2.3
Third parties		0.5		0.9
Others		12.4		11.6

		40.0		33.0
Civil related
Indemnity (ix)		0.4		0.2

		0.4		0.2

		58.4		54.2

Current portion		20.7		21.5
Non-current portion		37.7		32.7

(i)	The Company has obtained injunction to suspend collection of withholding tax related to values transferred overseas.

(ii)	The Company was notified by the authorities for failing to withhold social security contributions from service providers. These lawsuits are at the second court level.

(iii)

Deficiency and Penalty Notices issued against the Company involving the drawback regime, disputing possible differences in relation to the tax classification of certain products and is at the analysis stage in the Federal Supreme Court—STJ (Supremo Tribunal de Justiça).

(iv)	Refers to claims for backdated salary increases and productivity payments, brought by former employees.

(v)	Suits brought by former employees claiming reinstatement with the Company for various reasons.

(vi)	Refer to requirements for payment of alleged differences in relation to overtime.

(vii)

Are requirements that seek the recognition of activity in hazardous condition.

(viii)

Indemnity claims in connection with alleged work-related accidents, pain and suffering, etc.

(ix)	Other indemnity claims brought by parties that had some kind of legal relationship with the Company.