| 12. | Inventories |
| 12.31.2017 | 12.31.2016 | |||||||
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Raw materials |
865.6 | 952.9 | ||||||
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Work in process |
612.4 | 713.9 | ||||||
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Spare parts |
405.2 | 391.1 | ||||||
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Used aircraft available for sale (i) |
102.0 | 207.7 | ||||||
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Finished goods (ii) |
89.9 | 156.0 | ||||||
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Inventory in transit |
85.2 | 67.9 | ||||||
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Held by third parties |
82.3 | 77.5 | ||||||
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Consumption materials |
47.6 | 46.9 | ||||||
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Advances to suppliers |
28.9 | 40.5 | ||||||
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Loss on adjustment to market value (iii) |
(17.2 | ) | (19.9 | ) | ||||
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Loss due to obsolescence (iv) |
(153.2 | ) | (138.1 | ) | ||||
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| 2,148.7 | 2,496.4 | |||||||
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| (i) | The following used aircraft were held in inventory as available for sale: |
| • | At December 31, 2017: three EMBRAER 140, two Lineage, one Boeing BBJ 737; and |
| • | At December 31, 2016: nine EMBRAER 140, one EMBRAER 145, two Legacy 500, one Legacy 450, four Phenom 300, two Lineage, one Ipanema, one Gulfstream G350, one Boeing BBJ 737, two Cessna 560XL. |
| (ii) | The following aircraft were held in the finished products inventory: |
| • | At December 31, 2017: one Legacy 450, one Phenom 100, one Phenom 300, one Super Tucano two Legacy 500, one Lineage and two Ipanema; and |
| • | At December 31, 2016: one EMBRAER 195, two Legacy 450, two Legacy 500, four Phenom 100, three Phenom 300, one Lineage, one Super Tucano and two Ipanema. |
Of the total aircraft inventories at December 31, 2017, one Phenom 100 and one Ipanema had been delivered by March 15, 2018.
| (iii) | Refers to the provision recorded for adjustments to the realizable value of used aircraft, as follows: |
| 12.31.2017 | 12.31.2016 | 12.31.2015 | ||||||||||
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Beginning balance |
(19.9 | ) | (25.4 | ) | (8.0 | ) | ||||||
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Additions |
(8.2 | ) | (14.0 | ) | (18.8 | ) | ||||||
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Disposals |
10.9 | 19.5 | 1.4 | |||||||||
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Ending balance |
(17.2 | ) | (19.9 | ) | (25.4 | ) | ||||||
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| (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: |
| 12.31.2017 | 12.31.2016 | 12.31.2015 | ||||||||||
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Beginning balance |
(138.1 | ) | (161.2 | ) | (156.4 | ) | ||||||
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Additions |
(48.7 | ) | (59.8 | ) | (52.9 | ) | ||||||
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Disposals |
37.0 | 83.7 | 43.8 | |||||||||
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Reversals |
— | — | 1.5 | |||||||||
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Foreign exchange loss |
(3.4 | ) | (0.8 | ) | 2.8 | |||||||
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Ending balance |
(153.2 | ) | (138.1 | ) | (161.2 | ) | ||||||
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