13. Property, Plant, and Equipment

Balances and changes in property, plant, and equipment are as follows:


	Weighted average useful life (years)		Balance on 12/31/2017			Reclassifications (i)			Fair value CBLSA Retrospective effect (ii)			Balance on 12/31/2017 – Restated (i)			Additions		Depreciation			Transfer (iv)			Write- offs and disposals			Effect of foreign currency exchange rate variation			Opening balance TEAS (iii)			Balance on 12/31/2018
Cost:
Land		—		579,174			—			(2,532	)		576,642			3,994		—			9,261			(895	)		(1,238	)		33,115			620,879
Buildings		32		1,639,867			—			(1,996	)		1,637,871			7,041		—			151,937			(2,929	)		(10,914	)		18,067			1,801,073
Leasehold improvements		8		912,555			—			—			912,555			11,931		—			103,371			(12,273	)		56			—			1,015,640
Machinery and equipment		13		4,721,931			—			—			4,721,931			115,171		—			588,696			(4,895	)		(261,955	)		60,308			5,219,256
Automotive fuel/lubricant distribution equipment and facilities		13		2,721,075			—			8,447			2,729,522			98,478		—			98,573			(62,240	)		—			—			2,864,333
LPG tanks and bottles		8		643,697			49,159			—			692,856			78,995		—			2,552			(31,387	)		—			—			743,016
Vehicles		6		287,295			—			—			287,295			29,141		—			18,061			(23,996	)		(1,745	)		—			308,756
Furniture and utensils		8		266,494			—			(585	)		265,909			18,417		—			6,078			(863	)		(10,570	)		45			279,016
Construction in progress		—		929,000			—			—			929,000			796,909		—			(883,994	)		(578	)		81,462			—			922,799
Advances to suppliers		—		112,167			—			—			112,167			6,317		—			(100,233	)		—			(4,163	)		—			14,088
Imports in progress		—		786			—			—			786			699		—			(1,446	)		—			2			—			41
IT equipment		5		353,022			—			(36	)		352,986			34,921		—			7,942			(1,953	)		1,161			6			395,063

				13,167,063			49,159			3,298			13,219,520			1,202,014		—			798			(142,009	)		(207,904	)		111,541			14,183,960

Accumulated depreciation:
Buildings				(724,408	)		—			—			(724,408	)		—		(53,462	)		10,046			2,608			26,533			(4,434	)		(743,117	)
Leasehold improvements				(475,651	)		—			—			(475,651	)		—		(83,208	)		(4,574	)		5,398			(7	)		—			(558,042	)
Machinery and equipment				(2,980,166	)		—			—			(2,980,166	)		—		(271,867	)		1,143			3,449			288,461			(10,229	)		(2,969,209	)
Automotive fuel/lubricant distribution equipment and facilities				(1,545,806	)		—			—			(1,545,806	)		—		(162,815	)		(7,232	)		58,245			—			—			(1,657,608	)
LPG tanks and bottles				(305,965	)		(22,419	)		—			(328,384	)		—		(88,308	)		(2,347	)		17,983			—			—			(401,056	)
Vehicles				(112,200	)		—			—			(112,200	)		—		(28,792	)		498			15,002			1,842			—			(123,650	)
Furniture and utensils				(148,575	)		—			—			(148,575	)		—		(18,482	)		(292	)		513			11,517			(20	)		(155,339	)
IT equipment				(260,859	)		—			—			(260,859	)		—		(30,659	)		2,702			1,819			(1,080	)		(6	)		(288,083	)

				(6,553,630	)		(22,419	)		—			(6,576,049	)		—		(737,593	)		(56	)		105,017			327,266			(14,689	)		(6,896,104	)


	Balance on 12/31/2017			Reclassifications (i)		Fair value CBLSA Retrospective effect(ii)		Balance on 12/31/2017 – Restated (i)			Additions			Depreciation			Transfer (iv)		Write-offs and disposals			Effect of foreign currency exchange rate variation			Opening balance TEAS (iii)		Balance on 12/31/2018
Provision for losses:
Advances to suppliers		(83	)		—		—		(83	)		—			—			—		—			—			—		(83	)
Buildings		—			—		—		—			(306	) (*)		—			—		—			—			—		(306	)
Land		(104	)		—		—		(104	)		(723	) (*)		—			—		—			—			—		(827	)
Leasehold improvements		(564	)		—		—		(564	)		(733	)		—			—		2			(90	)		—		(1,385	)
Machinery and equipment		(4,724	)		—		—		(4,724	)		(1,532	) (*)		—			—		444			(305	)		—		(6,117	)
Automotive fuel/lubricant distribution equipment and facilities		(169	)		—		—		(169	)		—			—			—		4			—			—		(165	)
Construction in progress		—			—		—		—			(38	) (*)		—			—		—			—			—		(38	)
Furniture and utensils		(1	)		—		—		(1	)		(69	) (*)		—			—		—			—			—		(70	)

		(5,645	)		—		—		(5,645	)		(3,401	)		—			—		450			(395	)		—		(8,991	)

Net amount		6,607,788			26,740		3,298		6,637,826			1,198,613			(737,593	)		742		(36,542	)		118,967			96,852		7,278,865


	Weighted average useful life (years)		Balance on 12/31/2016			Reclassifications (i)			Balance on 1/1/2017 – Restated (i)			Additions		Depreciation			Transfer (iv)			Write- offs and disposals			Effect of foreign currency exchange rate variation			Opening balance CBLSA (ii)			Balance on 12/31/2017 Restated (i)
Cost:
Land		—		520,575			—			520,575			4,319		—			16,039			(969	)		4,574			32,104			576,642
Buildings		30		1,440,204			—			1,440,204			10,677		—			95,630			(12,409	)		32,998			70,771			1,637,871
Leasehold improvements		9		796,521			—			796,521			13,819		—			116,698			(14,494	)		11			—			912,555
Machinery and equipment		12		4,225,056			—			4,225,056			130,154		—			105,060			(16,069	)		277,730			—			4,721,931
Automotive fuel/lubricant distribution equipment and facilities		13		2,429,079			—			2,429,079			131,134		—			78,568			(29,935	)		—			120,676			2,729,522
LPG tanks and bottles		11		619,511			12,467			631,978			96,290		—			(1,149	)		(34,263	)		—			—			692,856
Vehicles		7		271,133			—			271,133			28,428		—			6,948			(21,055	)		1,841			—			287,295
Furniture and utensils		9		204,550			—			204,550			35,078		—			10,775			(834	)		10,756			5,584			265,909
Construction in progress		—		523,285			—			523,285			766,775		—			(386,198	)		(4	)		10,192			14,950			929,000
Advances to suppliers		—		96,423			—			96,423			61,536		—			(48,722	)		—			2,930			—			112,167
Imports in progress		—		58			—			58			1,182		—			(450	)		—			(4	)		—			786
IT equipment		5		288,705			—			288,705			42,638		—			3,095			(1,081	)		170			19,495			352,986

				11,415,100			12,467			11,427,567			1,322,030		—			(3,706	)		(131,113	)		341,198			263,544			13,219,520

Accumulated depreciation:
Buildings				(632,908	)		—			(632,908	)		—		(46,795	)		130			5,535			(28,365	)		(22,005	)		(724,408	)
Leasehold improvements				(412,449	)		—			(412,449	)		—		(71,660	)		(166	)		8,624			—			—			(475,651	)
Machinery and equipment				(2,474,504	)		—			(2,474,504	)		—		(258,068	)		(139	)		10,174			(257,629	)		—			(2,980,166	)
Automotive fuel/lubricant distribution equipment and facilities				(1,383,069	)		—			(1,383,069	)		—		(144,884	)		(29	)		26,907			—			(44,731	)		(1,545,806	)
LPG tanks and bottles				(276,414	)		(4,031	)		(280,445	)		—		(64,226	)		130			16,157			—			—			(328,384	)
Vehicles				(101,082	)		—			(101,082	)		—		(21,740	)		80			12,365			(1,823	)		—			(112,200	)
Furniture and utensils				(120,747	)		—			(120,747	)		—		(15,128	)		(9	)		594			(9,275	)		(4,010	)		(148,575	)
IT equipment				(220,421	)		—			(220,421	)		—		(24,481	)		148			991			(121	)		(16,975	)		(260,859	)

				(5,621,594	)		(4,031	)		(5,625,625	)		—		(646,982	)		145			81,347			(297,213	)		(87,721	)		(6,576,049	)


	Balance on 12/31/2016			Reclassifications (i)		Balance on 1/1/2017 – Restated (i)			Additions			Depreciation			Transfer (iv)			Write-offs and disposals			Effect of foreign currency exchange rate variation			Opening balance CBLSA (ii)		Balance on 12/31/2017 Restated (i)
Provision for losses:
Advances to suppliers		(83	)		—		(83	)		—			—			—			—			—			—		(83	)
Land		(197	)		—		(197	)		(104	)		—			—			197			—			—		(104	)
Leasehold improvements		(560	)		—		(560	)		(10	)		—			—			14			(8	)		—		(564	)
Machinery and equipment		(4,347	)		—		(4,347	)		(397	)		—			—			45			(25	)		—		(4,724	)
Automotive fuel/lubricant distribution equipment and facilities		(336	)		—		(336	)		—			—			—			167			—			—		(169	)
Furniture and utensils		(1	)		—		(1	)		—			—			—			—			—			—		(1	)

		(5,524	)		—		(5,524	)		(511	)		—			—			423			(33	)		—		(5,645	)

Net amount		5,787,982			8,436		5,796,418			1,321,519			(646,982	)		(3,561	)		(49,343	)		43,952			175,823		6,637,826


	Weighted average useful life (years)		Balance on 12/31/2015		Reclassifications (i)		Balance on 1/1/2016 – Restated (i)		Additions		Depreciation		Transfer (iv)			Write-offs and disposals			Effect of foreign currency exchange rate variation			Balance on 12/31/2016 Restated (i)
Cost:
Land		—		524,159		—		524,159		157		—		218			(202	)		(3,757	)		520,575
Buildings		30		1,382,603		—		1,382,603		11,597		—		68,989			(281	)		(22,704	)		1,440,204
Leasehold improvements		9		701,183		—		701,183		11,109		—		87,312			(3,078	)		(5	)		796,521
Machinery and equipment		13		3,991,839		—		3,991,839		117,157		—		164,883			(10,209	)		(38,614	)		4,225,056
Automotive fuel/lubricant distribution equipment and facilities		14		2,282,462		—		2,282,462		113,162		—		56,213			(22,758	)		—			2,429,079
LPG tanks and bottles		11		541,351		4,740		546,091		115,309		—		1,435			(30,857	)		—			631,978
Vehicles		7		258,776		—		258,776		25,882		—		5,559			(18,575	)		(509	)		271,133
Furniture and utensils		10		170,695		—		170,695		27,319		—		8,955			(1,315	)		(1,104	)		204,550
Construction in progress		—		437,533		—		437,533		487,651		—		(384,335	)		(535	)		(17,029	)		523,285
Advances to suppliers		—		12,125		—		12,125		102,465		—		(13,781	)		—			(4,386	)		96,423
Imports in progress		—		1,201		—		1,201		8,007		—		(8,895	)		—			(255	)		58
IT equipment		5		260,685		—		260,685		27,574		—		3,448			(1,561	)		(1,441	)		288,705

				10,564,612		4,740		10,569,352		1,047,389		—		(9,999	)		(89,371	)		(89,804	)		11,427,567


	Balance on 12/31/2015			Reclassifications (i)			Balance on 1/1/2016 – Restated (i)			Additions			Depreciation			Transfer (iv)			Write-offs and disposals			Effect of foreign currency exchange rate variation			Balance on 12/31/2016 Restated (i)
Accumulated depreciation:
Buildings		(591,831	)		—			(591,831	)		—			(43,778	)		13			151			2,537			(632,908	)
Leasehold improvements		(359,117	)		—			(359,117	)		—			(55,913	)		339			2,235			7			(412,449	)
Machinery and equipment		(2,241,244	)		—			(2,241,244	)		—			(242,419	)		3,099			9,536			(3,476	)		(2,474,504	)
Automotive fuel/lubricant distribution equipment and facilities		(1,270,797	)					(1,270,797	)		—			(130,613	)		—			18,341			—			(1,383,069	)
LPG tanks and bottles		(249,234	)		(875	)		(250,109	)		—			(44,097	)		—			13,761			—			(280,445	)
Vehicles		(92,457	)		—			(92,457	)		—			(19,991	)		—			11,234			132			(101,082	)
Furniture and utensils		(110,259	)		—			(110,259	)		—			(11,146	)		5			868			(215	)		(120,747	)
IT equipment		(203,793	)					(203,793	)		—			(19,225	)		(3	)		1,488			1,112			(220,421	)

		(5,118,732	)		(875	)		(5,119,607	)		—			(567,182	)		3,453			57,614			97			(5,625,625	)

Provision for losses:
Advances to suppliers		(83	)		—			(83	)		—			—			—			—			—			(83	)
Land		(197	)		—			(197	)		—			—			—			—			—			(197	)
Leasehold improvements		(659	)		—			(659	)		(4	)		—			—			—			103			(560	)
Machinery and equipment		(4,739	)		—			(4,739	)		(281	)		—			—			325			348			(4,347	)
Automotive fuel/lubricant distribution equipment and facilities		(1,306	)		—			(1,306	)		—			—			—			970			—			(336	)
Furniture and utensils		(1	)		—			(1	)		—			—			—			—			—			(1	)

		(6,985	)		—			(6,985	)		(285	)		—			—			1,295			451			(5,524	)

Net amount		5,438,895			3,865			5,442,760			1,039,377			(567,182	)		(6,546	)		(30,462	)		(89,256	)		5,796,418

(i)	See Note 2.x.

(ii)	See Note 3.c.

(iii)

See Note 3.d.

(iv)	Refers to amounts transferred to intangible assets and inventories.

(*)	Refers to the impairment for subsidiary Oxiteno Andina (see Note 2.s.1.ii), including in land the amount of R$ 680 and in machinery and equipment the amount of R$ 1,334.

Construction in progress relates substantially to expansions, renovations, constructions and upgrade of industrial facilities, terminals, stores, service stations and distribution bases.

Advances to suppliers is related, basically, to manufacturing of assets for expansion of plants, terminals, stores and bases and acquisition of real estate.