Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | ERJ |
Entity Registrant Name | EMBRAER S.A. |
Entity Central Index Key | 0001355444 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-15102 |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | D5 |
Entity Address, Address Line One | Avenida Dra. Ruth Cardoso |
Entity Address, Address Line Two | 8501, 30th floor |
Entity Address, City or Town | Sao Paulo |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 05425-070 |
Entity Common Stock, Shares Outstanding | 736,078,625 |
Title of 12(b) Security | Common shares, without par value |
Security Exchange Name | NYSE |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT | ||
Cash and cash equivalents | $ 855.2 | $ 1,280.9 |
Financial investments | 409.8 | 1,743.4 |
Trade accounts receivable, net | 149.4 | 318 |
Derivative financial instruments | 1.4 | 5.4 |
Customer and commercial financing | 1.2 | |
Collateralized accounts receivable | 4 | 218.5 |
Contract assets | 461.9 | 358 |
Inventories | 1,304.4 | 2,507 |
Guarantee deposits | 0.1 | 339.9 |
Income tax and social contribution | 90.5 | 95.3 |
Other assets | 120.1 | 203.4 |
Current assets | 3,396.8 | 7,071 |
Assets held for sale | 5,174.6 | |
Total current assets | 8,571.4 | 7,071 |
NON-CURRENT | ||
Financial investments | 14.9 | 183.5 |
Derivative financial instruments | 0.7 | 4.1 |
Customer and commercial financing | 10.5 | |
Collateralized accounts receivable | 13.6 | 17.4 |
Guarantee deposits | 0.5 | 9.8 |
Deferred income tax and social contribution | 0.7 | 21.6 |
Other assets | 61.8 | 105.6 |
Non-current assets excluding investments,property, plant and equipment and intangible assets | 92.2 | 352.5 |
Investments | 8.1 | 6.3 |
Property, plant and equipment, net | 968.9 | 1,964.7 |
Intangible assets, net | 894.1 | 1,898.8 |
Right of use | 37.8 | |
Total non-current assets | 2,001.1 | 4,222.3 |
TOTAL ASSETS | 10,572.5 | 11,293.3 |
CURRENT | ||
Trade accounts payable | 358 | 892.1 |
Lease liability | 5 | |
Loans and financing | 14.9 | 179.3 |
Recourse and non-recourse debt | 4 | 324 |
Other payables | 162.5 | 288.4 |
Contract liabilities | 649.1 | 1,045.4 |
Derivative financial instruments | 4.5 | 8.1 |
Taxes and payroll charges payable | 54.9 | 68.4 |
Income tax and social contribution | 42.6 | 48 |
Financial guarantee and residual value | 51 | |
Dividends payable | 1.4 | 5 |
Unearned income | 2 | 2 |
Provision | 103.1 | 116.9 |
Current Liabilities | 1,402 | 3,028.6 |
Liabilities held for sale | 4,984 | |
Total Current Liabilities | 6,386 | 3,028.6 |
NON-CURRENT | ||
Lease liability | 33.6 | |
Loans and financing | 76.1 | 3,468.4 |
Recourse and non-recourse debt | 13.6 | 17.4 |
Other payables | 12.7 | 28.6 |
Contract liabilities | 34.3 | 198.2 |
Taxes and payroll charges payable | 13.4 | 58.2 |
Deferred income tax and social contribution | 272.3 | 254 |
Financial guarantee and residual value guarantees | 0 | 101.1 |
Unearned income | 16.1 | 73.2 |
Provision | 99.8 | 125.5 |
Total non-current liabilities | 571.9 | 4,324.6 |
TOTAL LIABILITIES | 6,957.9 | 7,353.2 |
SHAREHOLDERS' EQUITY | ||
Capital | 1,551.6 | 1,551.6 |
Treasury shares | (26.5) | (31.4) |
Revenue reserves | 2,110 | 2,433.7 |
Share-based remuneration | 37.4 | 37.4 |
Accumulated other comprehensive loss | (154.8) | (145.6) |
Shareholder's equity excluding non-controlling interest | 3,517.7 | 3,845.7 |
Non-controlling interests | 96.9 | 94.4 |
TOTAL SHAREHOLDERS' EQUITY | 3,614.6 | 3,940.1 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 10,572.5 | $ 11,293.3 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Profit or loss [abstract] | |||||
REVENUE | $ 2,618.1 | $ 2,127.7 | $ 2,546.5 | ||
Cost of sales and services | (2,259.9) | (1,929.6) | (2,248.6) | ||
GROSS PROFIT | 358.2 | 198.1 | 297.9 | ||
Operating income (expense) | |||||
Administrative | (136.7) | (136.1) | (138.9) | ||
Selling | (148.2) | (151.4) | (169.9) | ||
Research | (19.7) | (19.5) | (22.2) | ||
Other operating income (expense), net | (215.8) | (173.8) | (163.9) | ||
Equity in income (losses) of associates | (0.2) | (0.4) | 1.2 | ||
OPERATING LOSS BEFORE FINANCIAL RESULT | (162.4) | (283.1) | (195.8) | ||
Financial income, net | 61.5 | 6.1 | 95 | ||
Foreign exchange gain (loss) , net | (0.3) | (5) | 5.7 | ||
LOSS BEFORE INCOME TAX | (101.2) | (282) | (95.1) | ||
Income tax expense | (103.5) | 20.7 | (28.2) | ||
LOSS OF THE CONTINUING OPERATIONS | (204.7) | (261.3) | (123.3) | ||
Net income (loss) of the discontinued operations | (111.8) | 90.1 | 403.3 | ||
NET INCOME (LOSS) FOR THE PERIOD | (316.5) | (171.2) | 280 | ||
Attributable to: | |||||
Owners of Embraer | (322.3) | (178.2) | 264 | ||
Non-controlling interests | $ 5.8 | $ 7 | $ 16 | ||
Earnings per share-basic in US$ | (per share) | $ (0.44) | $ (0.24) | $ 0.36 | ||
Earnings per share-diluted in US$ | (per share) | $ (0.44) | $ (0.24) | $ 0.36 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statement of comprehensive income [abstract] | ||||||
Net income (loss) for the period | $ (316.5) | $ (171.2) | [1] | $ 280 | [1] | |
ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS | ||||||
Actuarial gain on post-employment benefit obligation | 1.1 | 9.2 | ||||
ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED TO PROFIT OR LOSS | ||||||
Financial instruments - Cash flow hedge | (0.7) | 0.4 | (10.3) | |||
Translation adjustments | (10.6) | (65.4) | 34.1 | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECTS | [2] | (11.3) | (63.9) | 33 | ||
TOTAL OF COMPREHENSIVE INCOME (LOSS) | (327.8) | (235.1) | 313 | |||
Attributable to: | ||||||
Owners of Embraer | (330.3) | (216.1) | 292 | |||
Non-controlling interests | 2.5 | (19) | 21 | |||
Total comprehensive income (loss) of | ||||||
Continuing operations | (215.7) | (326.1) | (91.5) | |||
Discontinued operations | (112.1) | 91 | 404.5 | |||
TOTAL OF COMPREHENSIVE INCOME | $ (327.8) | $ (235.1) | $ 313 | |||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). | |||||
[2] | Items presented above are net of deferred income tax, if applicable, of US$ (1.0), US$ (2.8) and US$ (3.8) for the years ended December 31, 2019, 2018 and 2017, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Net of deferred income tax | $ (1) | $ 2.8 | $ 3.8 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Capital [member] | Treasury shares [member] | Share-based remuneration [member] | Government grants [member] | Legal Reserve [member] | For investment and working capital [member] | Retained earnings [member] | Result in transaction with non-controlling interest [member] | Actuarial gain (loss) on post employment benefit obligation [member] | Cumulative translation adjustments [member] | Accumulated Other Comprehensive Loss Financial Instruments [member] | Total shareholders equity [member] | Non-controlling interest [member] | |
Beginning balance at Dec. 31, 2016 | $ 3,936.4 | $ 1,438 | $ (49.1) | $ 36.8 | $ 42.6 | $ 192.4 | $ 2,331.1 | $ (12.1) | $ (4.2) | $ (49.5) | $ (92.4) | $ 10.4 | $ 3,844 | $ 92.4 | |
Statement [Line Items] | |||||||||||||||
Net income/loss for the year | 280 | [1] | 264 | 264 | 16 | ||||||||||
Actuarial loss on post employment benefit obligation | 9.2 | 9.2 | 9.2 | ||||||||||||
Translation adjustments | 34.1 | 29.1 | 29.1 | 5 | |||||||||||
Financial instruments | (10.3) | (10.3) | (10.3) | ||||||||||||
TOTAL OF COMPREHENSIVE INCOME (LOSS) | 313 | 264 | 9.2 | 29.1 | (10.3) | 292 | 21 | ||||||||
Share-based remuneration | 0.5 | 0.5 | 0.5 | ||||||||||||
Stock options grants exercised | 5.9 | 12.3 | (6.4) | 5.9 | |||||||||||
Acquisition of own shares | (15) | (15) | (15) | ||||||||||||
Allocation of profits: | |||||||||||||||
Government grants | 4.3 | (4.3) | |||||||||||||
Legal reserve | 12 | (12) | |||||||||||||
Interest on own capital | (47.3) | (47.3) | (47.3) | ||||||||||||
Dividends | (16) | (16) | (16) | ||||||||||||
Reserve for investments and working capital | 160.8 | (160.8) | |||||||||||||
Ending balance at Dec. 31, 2017 | 4,177.5 | 1,438 | (51.8) | 37.3 | 46.9 | 204.4 | 2,491.9 | 5.1 | (4.2) | (40.3) | (63.3) | 0.1 | 4,064.1 | 113.4 | |
Statement [Line Items] | |||||||||||||||
Net income/loss for the year | (171.2) | [1] | (178.2) | (178.2) | 7 | ||||||||||
Actuarial loss on post employment benefit obligation | 1.1 | 1.1 | 1.1 | ||||||||||||
Translation adjustments | (65.4) | (39.4) | (39.4) | (26) | |||||||||||
Financial instruments | 0.4 | 0.4 | 0.4 | ||||||||||||
TOTAL OF COMPREHENSIVE INCOME (LOSS) | (235.1) | (178.2) | 1.1 | (39.4) | 0.4 | (216.1) | (19) | ||||||||
Share-based remuneration | 0.1 | 0.1 | 0.1 | ||||||||||||
Stock options grants exercised | 9.5 | 20.4 | (10.9) | 9.5 | |||||||||||
Allocation of profits: | |||||||||||||||
Government grants | 0.1 | (0.1) | |||||||||||||
Interest on own capital | (8.2) | (8.2) | (8.2) | ||||||||||||
Dividends | (3.7) | (3.7) | (3.7) | ||||||||||||
Increase in share capital | 113.6 | (113.6) | |||||||||||||
Reserve for investments and working capital | (184.1) | 184.1 | |||||||||||||
Ending balance (Previously stated [member]) at Dec. 31, 2018 | 3,940.1 | 1,551.6 | (31.4) | 37.4 | 47 | 204.4 | 2,182.3 | (4.2) | (39.2) | (102.7) | 0.5 | 3,845.7 | 94.4 | ||
Ending balance (Adjustment related to accounting policy change [member]) at Dec. 31, 2018 | 1.3 | (1.3) | |||||||||||||
Ending balance at Dec. 31, 2018 | 3,940.1 | 1,551.6 | (31.4) | 37.4 | 47 | 204.4 | 2,182.3 | 1.3 | (4.2) | (39.2) | (102.7) | (0.8) | 3,845.7 | 94.4 | |
Statement [Line Items] | |||||||||||||||
Net income/loss for the year | (316.5) | (322.3) | (322.3) | 5.8 | |||||||||||
Translation adjustments | (10.6) | (7.3) | (7.3) | (3.3) | |||||||||||
Financial instruments | (0.7) | (0.7) | (0.7) | ||||||||||||
TOTAL OF COMPREHENSIVE INCOME (LOSS) | (327.8) | (322.3) | (7.3) | (0.7) | (330.3) | 2.5 | |||||||||
Stock options grants exercised | 2.2 | 4.9 | (2.7) | 2.2 | |||||||||||
Allocation of profits: | |||||||||||||||
Government grants | 2 | (2) | |||||||||||||
Reserve for investments and working capital | 0.1 | (325.6) | $ 325.7 | 0.1 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 3,614.6 | $ 1,551.6 | $ (26.5) | $ 37.4 | $ 49 | $ 204.4 | $ 1,856.7 | $ (4.2) | $ (39.2) | $ (110) | $ (1.5) | $ 3,517.7 | $ 96.9 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
OPERATING ACTIVITIES | |||||
Net income (loss) for the period, including discontinued operations | $ (316.5) | $ (171.2) | [1] | $ 280 | [1] |
ADJUSTMENT TO NET INCOME FOR ITEMS NOT AFFECTING CASH | |||||
Depreciation of property plant and equipment | 113.8 | 159.2 | 196.5 | ||
Realization of government grants | (2.1) | (3.6) | (3.3) | ||
Amortization of intangible assets | 95.9 | 112.8 | 146.2 | ||
Realization of contribution from suppliers | (22.4) | (22) | (27.3) | ||
Loss (reversal) for inventory obsolescence | 20.5 | 18.3 | 11.7 | ||
Adjustment to market value, inventory, property plant and equipment and intangible | 102.3 | 99.5 | 110.2 | ||
Allowance for doubtful accounts | (3.1) | (7.8) | 8.1 | ||
Losses on fixed assets disposal | 28.6 | 19.8 | 18.6 | ||
Deferred income tax and social contribution | 33.2 | (21.2) | (12.9) | ||
Accrued interest | 1.5 | (6.4) | (29) | ||
Interest on marketable securities, net | (30.9) | (33.6) | (23.6) | ||
Equity in associates gains and losses | 0.2 | 0.4 | (1.2) | ||
Share-based remuneration | 0.1 | 0.5 | |||
Foreign exchange gain (loss), net | (10.3) | 20.7 | 6 | ||
Mark to market of the residual value guarantees | 4.2 | 16.5 | (13.3) | ||
Provision for voluntary redundancy scheme | 0 | 0 | 6.4 | ||
Other | (3.9) | (7.2) | (4.3) | ||
CHANGES IN ASSETS | |||||
Financial investments | 507.8 | 790.8 | (244.6) | ||
Derivative financial instruments | 4 | 23.9 | (1.7) | ||
Collateralized accounts receivable and accounts receivable | 205.3 | (16) | 4.6 | ||
Contract assets | (152.3) | 104.1 | (76.9) | ||
Customer and commercial financing | 1.1 | 4.6 | 21 | ||
Inventories | 147.3 | (281.9) | 404.9 | ||
Guarantee deposits | 348.6 | 0 | 0 | ||
Other assets | 13.2 | 43.5 | 249.4 | ||
CHANGES IN LIABILITIES | |||||
Trade accounts payable | (44.6) | 70.1 | (127.3) | ||
Non-recourse and recourse debt | (323.7) | (22.6) | (9.9) | ||
Other payables | (28.7) | (16.3) | (36.6) | ||
Contribution from suppliers | 4.5 | 125.5 | 86 | ||
Contract liabilities | 200.6 | 101.2 | (99.9) | ||
Taxes and payroll charges payable | 2.6 | 30.7 | 21.1 | ||
Financial guarantees | (16) | (21.2) | (40.7) | ||
Other provisions | 20.4 | 9.8 | (53.9) | ||
Unearned income | (7.3) | (12.9) | (11.8) | ||
NET CASH GENERATED BY OPERATING ACTIVITIES | 893.8 | 1,107.6 | 753 | ||
INVESTING ACTIVITIES | |||||
Acquisition of property, plant and equipment | (284.5) | (154.3) | (237.7) | ||
Proceeds from sale of property, plant and equipment | 0.1 | 0.3 | 19.1 | ||
Additions to intangible assets | (283.3) | (290.3) | (470.5) | ||
Additions investments in subsidiaries and affiliates | (2.5) | (2.4) | (0.6) | ||
Financial investments | 977.8 | (76.5) | (404) | ||
Dividends received | 0.1 | 0.1 | 0.1 | ||
Restricted cash reserved for construction of assets | 1 | ||||
NET CASH GENERATED (USED) IN INVESTING ACTIVITIES | 407.7 | (523.1) | (1,092.6) | ||
FINANCING ACTIVITIES | |||||
Proceeds from borrowings | 400.5 | 124 | 972.9 | ||
Repayment of borrowings | (645.9) | (596.3) | (540.2) | ||
Dividends and interest on own capital | (2) | (40.6) | (54.1) | ||
Proceeds from stock options exercised | 2.2 | 9.5 | 5.9 | ||
Acquisition of own shares | (15) | ||||
Lease payments | (11.8) | ||||
NET CASH GENERATED (USED) BY FINANCING ACTIVITIES | (257) | (503.4) | 369.5 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,044.5 | 81.1 | 29.9 | ||
Effects of exchange rate changes on cash and cash equivalents | (17.7) | (71) | (0.6) | ||
Cash and cash equivalents at the beginning of the period | 1,280.9 | 1,270.8 | 1,241.5 | ||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 2,307.7 | 1,280.9 | 1,270.8 | ||
Included in cash and cash equivalents per the statements of financial position | 855.2 | $ 1,280.9 | $ 1,270.8 | ||
Included in assets held for sale – Commercial Aviation business unit | $ 1,452.5 | ||||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Operations
Operations | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Operations | 1. Operations Embraer S.A. (“Embraer” or “the Company”) is a publicly held company incorporated under the laws of the Federative Republic of Brazil (“Brazil”) with headquarters in São José dos Campos, State of São Paulo. The corporate purpose of the Company is: (i) To design, build and market aircraft and aerospace materials and related accessories, components and equipment, according to the highest standards of technology and quality. (ii) To perform and carry out technical activities related to the manufacturing and servicing of aerospace materials. (iii) To contribute to the training of technical personnel as necessary for the aerospace industry. (iv) To engage in and provide services for other technological, manufacturing and business activities in connection with the aerospace industry. (v) To design, build and trade in equipment, materials, systems, software, accessories and components for the defense, security and power industries, and to promote and carry out technical activities related to the manufacturing and servicing thereof, in accordance with the highest technological and quality standards. (vi) To conduct other technological, manufacturing, trading and services activities related to the defense, security and power industries. The Company’s shares (B3: EMBR3, NYSE: ERJ) are listed in the enhanced corporate governance segment of the Stock Exchange in Brazil (“B3”), known as the New Market (“Novo Mercado”). Embraer S.A. also holds American Depositary Shares (evidenced by American Depositary Receipts - ADRs) which are registered with the Securities and Exchange Commission (“SEC”) and listed on the New York Stock Exchange (“NYSE”). In accordance with the Company’s by-laws, the consolidated financial statements of the Company as of and for the year ended December 31, 2019 were approved by the Company’s Board of Directors and were published on March 26, 2020, and the Form 20-F, which these financial statements are a part of, have been approved by the Company’s executives and reviewed by the Audit, Risk and Ethics Committee of the Company. 1.1 Transaction between Embraer S.A. and The Boeing Company (“Boeing”) On January 24, 2019, Embraer, Boeing and certain subsidiaries of Boeing and Embraer entered into the Master Transaction Agreement (“MTA”) and other transaction documents, which defined the terms and conditions for the creation of a joint venture covering Embraer’s Commercial Aviation business unit with a participation of 80% of a subsidiary of Boeing and 20% of Embraer, as well as the creation of a joint venture to promote and develop new markets and applications for the C-390 Millennium multi-mission transport aircraft, with a participation of 51% of a subsidiary of Embraer and 49% of a subsidiary of Boeing (collectively “Transaction”). Until April 25, 2020, Embraer and Boeing continued to be obligated to perform their respective obligations under the MTA with respect to the consummation of the Transaction, and therefore, Embraer maintained the classification of the assets of the Commercial Aviation business and related services as “held for sale” and “discontinued operations” as of December 31, 2019. However, on April 25, 2020, Boeing provided notice to Embraer communicating its decision to terminate the MTA. In addition, Boeing terminated the Contribution Agreement that provided for a joint venture for the C-390 Millennium While Embraer strongly believes that Boeing wrongfully terminated the MTA and the Contribution Agreement, the accounting impacts resulting from Boeing’s notice that it was terminating the strategic partnership will be recognized by the Company starting on April 25, 2020 the date on which Boeing provided the notice to Embraer. Additional information regarding the expected impacts and details regarding the balance of “assets held for sale” and “discontinued operations” as of December 31, 2019 are disclosed on Notes 3.4, 4 and 40. |
Presentation of the Financial S
Presentation of the Financial Statements and Accounting Practices | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Presentation of the Financial Statements and Accounting Practices | 2. Presentation of the Financial Statements and Accounting Practices 2.1 Presentation and preparation of the financial statements The consolidated financial statements have been prepared in conformity with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) which include (i) IFRS, (ii) the International Accounting Standard (“IAS”), and (iii) the International Financial Reporting Interpretations Committee (“IFRIC”). All informations presented in the consolidated financial statements are those considered relevant in the context of Company’s activities and for management purposes. 2.1.1 Basis of preparation These consolidated financial statements have been prepared under the historical cost convention, except when the account requires different criteria, and adjusted for assets and liabilities measured as at fair value in subsequent measurement, when applicable. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management of the Company to exercise judgment in the process of applying the Company’s accounting policies. These consolidated financial statements include accounting estimates for certain assets, liabilities and other transactions. The areas which involve high degree of judgments or complexities, or assumptions and significant estimates to the consolidated financial statements, are disclosed in Note 3. 2.1.2 Consolidation These consolidated financial statements include the balances as of December 31, 2019 of the Company and all subsidiaries and special purpose entities in which the Company has control, directly or indirectly. All accounts and balances arising from transactions between controlled entities are eliminated during the consolidation process. a) Subsidiaries Subsidiaries are entities over which the Company has control, which means exposure and rights to variable returns, ability to use its power over these entities to affect those returns and ability to manage its relevant activities. The control assessment considers, in addition to held majority of voting rights, the shareholders agreement in place between the Company and other non-controlling Balances associated to the non-controlling non-controlling The accounting policies of the subsidiaries are consistent with the policies adopted by the Company. b) Special Purpose Entities (SPE) The Company held certain financing structures for aircraft sales through SPEs in which it has control even without direct or indirect interest. As of December 31, 2019, and 2018, the only SPE with ongoing activities and consolidated in the financial statements is Refine, Inc. c) Consortia A consortium is a legal entity set up to meet a specific purpose and is subject to mandatory laws and rules under specific regulations. As of December 31, 2019, the Company along with wholly owned subsidiary hold interest in consortium structure established by both entities solely. The transactions of this consortium are fully recorded and presented in the consolidated financial statements. 2.1.3 Corporate structure Below is presented information regarding the consolidated subsidiaries as at December 31, 2019: Entity Participation Country Core activities Airholding S.A. 100 % Portugal Coordinates investments in subsidiaries in Portugal OGMA - Indústria Aeronáutica de Portugal S.A. 65 % Portugal Aviation maintenance and production Yaborã Indústria Aeronáutica S.A. 100 % Brazil Future commercial aviation joint venture with Boeing Embraer Commercial Aviation LLC 100 % EUA Future company related to the Commercial Aviation segment Embraer Aircraft Customer Services, Inc. 100 % EUA Sale of spare parts and support services in North America and the Caribbean Embraer Aircraft Maintenance Services Inc. 100 % EUA Maintenance of aircraft and components Embraer Aviation France - EAF 100 % France Future company related to the Commercial Aviation segment ELEB – Equipamentos Ltda. 100 % Brazil Sale of hydraulic and mechanical equipment for the aviation industry Embraer Aircraft Holding Inc. 100 % EUA Concentrates corporate activities in the USA Embraer Business Innovation Center, Inc. 100 % EUA Develops technological innovation research in aviation and related areas Embraer Executive Jet Services, LLC 100 % EUA After sale support and aircraft maintenance Embraer Executive Aircraft, Inc. 100 % EUA Final assembly and delivery of executive jets Embraer Engineering & Technology Center USA, Inc. 100 % EUA Engineering services related to aircraft research and development Embraer Aero Seating Technologies, LLC 100 % EUA Production and maintenance of aircraft seats Embraer Defense and Security Inc. 100 % EUA Supply of Super Tucano aircraft to the American Air Force (LAS) Embraer CAE Training Services LLC 51 % EUA Pilot, mechanic and crew training EB Defense LLC 100 % EUA Future joint venture with Boeing for the sale and promotion of C-390 n Embraer Solutions, LLC 100 % EUA Sale of spare parts and support services for the Executive Aviation Embraer Aviation Europe - EAE 100 % France Concentrates corporate activities abroad, specifically Europe Embraer Aviation International - EAI 100 % France Sale of parts and after sale services in Europe, Africa and the Middle East Embraer Europe SARL 100 % France Commercial representation of the Company in Europe, Africa and the Middle East Embraer Defesa & Segurança Participações S.A. 100 % Brazil Coordinates investments in the Defense & Security segments Atech - Negócios em Tecnologias S.A. 100 % Brazil Development and control, communications, computer and intelligence services Visiona Tecnologia Espacial S.A. 51 % Brazil Supply of the Brazilian Government’s Geostationary Defense and Strategic Communications Satellite System (SGDC) Visiona Internacional B.V. 100 % Holanda Integration and supply of the Brazilian Government’s (SGDC) System SAVIS Tecnologia e Sistemas S.A. 100 % Brazil Operates in Defense and Security with the Brazilian Government Embraer GPX Ltda 100 % Brazil No operations Embraer Netherlands Finance B.V. 100 % Holland Financial operations raising and investing funds of the Embraer Group Embraer Aviation Netherlands B.V. 100 % Holland Future company responsible for Embraer’s commercial activities in Europe Embraer Netherlands B.V. 100 % Holland Concentrates corporate activities abroad, leasing and selling used aircraft Embraer Asia Pacific PTE. Ltd. 100 % Singapore After sale services and support in Asia Embraer CAE Training Services (UK) Limited 51 % United Kingdom No operations Embraer Portugal S.A. 100 % Portugal Coordinates investments and economic activities in subsidiaries in Portugal Embraer - Portugal Estruturas Metálicas S.A 100 % Portugal Fabrication of steel parts and products for the aviation industry Embraer - Portugal Estruturas em Compósitos S.A. 100 % Portugal Fabrication of composite parts and products for the aviation industry Embraer (China) Aircraft Technical Services Co. Ltd. 100 % China Sales and maintenance for after sales support in China EZ Air Interior Limited 50 % Ireland Fabrication of interiors for commercial aircraft Embraer Overseas Ltd. 100 % Cayman Islands Financial operations raising and investing funds of the Embraer Group Embraer Spain Holding Co. SL 100 % Spain Concentrates corporate activities abroad ECC Investment Switzerland AG 100 % Switzerland Coordinates investments in subsidiaries abroad ECC Insurance & Financial Company Limited. 100 % Cayman Islands Covers financial guarantees offered in aircraft sale structuring Embraer Finance Ltd. 100 % Cayman Islands Support to the Company in structuring specific operations Refine, Inc. 100 % Cayman Islands SPE to finance sales of aircraft from the Commercial Aviation Fundo de Investimento em Participações Embraer Ventures 100 % Brazil Exclusive fund created with the objective of technological and financial aggregation based on investment and support to small and medium-sized Tepro Consortium Fundo Aeroespacial Desenvolve SP 2.1.4 Changes to the comparative consolidated financial statements Disclosure of contingent liabilities on income tax matters (Note 26.2) With the adoption of the IFRIC 23 interpretation, which seeks to clarify how to apply the recognition and measurement requirements of IAS 12 - Income taxes when there are uncertainties about treatments applied in the calculation of the respective taxes (income tax and social contribution on net income), the Company started a review of all its legal demands and the internal processes for identification, recognition, measurement and disclosure criteria applied in previous periods in relation to these matters. This review involved a joint work with legal advisors that advocate the causes and an evaluation of the aspects related to uncertain tax treatments that resulted in a general review of the legal demands, its risk classification and disclosure criteria, where was noted that some legal demands classified as possible risk of loss were not disclosed because they were in initial stage of judgment in Brazil, still in the administrative instance. Also, the uniqueness of the themes, the specificities of the aeronautical segment in Brazil and the scarcity of jurisprudence were evaluated. Management is providing disclosure of such contingent liabilities on income tax matters not disclosed before in Note 26.2 considering its historical values as of December 31, 2019 and 2018. Classification of the Commercial Aviation business unit as discontinued operations (Note 4) The consolidated statements of income for the comparative years ended December 31, 2018 and 2017 are being recasted due to the classification of Commercial Aviation business unit and related services as discontinued operations (Note 4). 2.2 Summary of significant accounting policies We present below the significant accounting policies adopted in the preparation of these consolidated financial statements. Description of the significant accounting policies adopted by the Company contributes towards the correct interpretation of the consolidated financial statements, whether on account of the existence of more than one treatment option under the international accounting standards, or due to the complexity of the operation. This set of annual consolidated financial statements includes the first year of adoption of the following new standards and interpretations: • IFRS 16 - Leases (Note 2.2.1.1). • Interpretation IFRIC 23 - Uncertainty over income tax treatments (Note 2.2.1.2). In addition, at January 1, 2019 the Company changes its accounting policy choice for hedge accounting structures to adopt the requirements of IFRS 9 - Financial Instruments, as per Note 2.2.1.3. 2.2.1 Changes due to adoption of new accounting standards, interpretations and policies 2.2.1.1 IFRS 16 - Leases IFRS 16 establishes the principles for the recognition, measurement, and disclosure of leases and requires lessees to recognize a single accounting model in the statements of financial position. The lessor’s accounting in IFRS 16 remains substantially unchanged in relation to IAS 17. Lessors will continue to classify between operating or finance leases, using principles similar to the former standard and, therefore, IFRS 16 has no impact on leases where the Company is the lessor. From the lessee’s standpoint, lease contracts previously recognized as expenses in the statement of income for the year on a straight-line basis, start to be recognized in the statements of financial position as right-of-use The Company adopted IFRS 16 using the modified retrospective model with the adoption date on January 1, 2019. Under this approach, the financial information comparative to prior periods are not being restated and remain as previously reported in accordance with IAS 17. The Company used the following practical expedients permitted by the standard of: (i) not recording operating lease contracts, that on the beginning date, have lease term equal to or below 12 months or less (“short-term leases”) and (ii) not recording contracts for which the individual underlying asset is lower than US$ 5 thousand (“low-value The details on and impacts from the changes in accounting policies are disclosed below: a) Accounting impact from the adoption of IFRS 16: As part of the adoption process, the Company has examined its lease transactions to determine whether each effective contract is or contains a lease based on the new definition. Under IFRS 16, a contract is or contains a lease if it transfers the right to control the use of an identified asset over a period of time in exchange for consideration. The Company identified applicable contracts within the scope of IFRS 16 for leases of land and buildings, facilities, machinery, vehicles and other equipment, subject to the practical expedients applied. For the contracts identified, the Company recognized: • A lease liability in the total amount of US$ 57.6 related to the lease payments according to the cash flows of each contract, discounted to present value at the incremental borrowing rate. The incremental weighted average borrowing nominal rate applied to lease liability on January 1, 2019 was 6.3%. • The right-of-use Lease commitments as at December 31, 2018 78.1 - (Less): short-term leases recognized on a straight-line basis as expense (1.9 ) - (Less): low-value (3.3 ) - Discounted using the incremental borrowinig rate (15.3 ) Lease liability as at January 1, 2019 57.6 2.2.1.2 IFRIC 23 - Uncertainty over income tax treatments The Interpretation IFRIC23 clarifies how to apply the recognition and measurement requirements of IAS12 - Income Taxes when there are uncertainties over treatments applied in the calculation of the respective taxes (income tax and social contribution on net income). The interpretation was effective as from January 1, 2019. In the opinion of the Company’s management, there were no significant impacts arising from this interpretation, as all procedures adopted for calculation and payment of income taxes are supported by the prevailing legislation and case law of Administrative and Judicial Courts. Contingent liabilities of this nature are presented in Note 26.2. 2.2.1.3 Hedge accounting - Adoption of IFRS 9 The Company changed the accounting policy previously disclosed in Note 2.2.1(a) to the consolidated financial statements as of December 31, 2018 to adopt the requirements of IFRS 9 - Financial Instruments, to supersede IAS 39 – Financial Instruments: Recognition and Measurement, for hedge instruments designated for hedge accounting beginning on January 1, 2019. (i) Fair value hedge: The Company applies the fair value hedge accounting to hedge against the risk of changes in borrowing and financing interest rates by contracting swaps. Interest rate swaps existing on January 1, 2019 qualify as fair value hedge for purposes of IFRS 9. The Company’s risk management strategies and hedge documentation are aligned with the requirements of IFRS 9 for designation of transactions. Changes in the fair value of derivatives designated and qualified as fair value hedge continue to be recorded in statements of income for the year as financial income (expense), net, including the changes in the fair value of hedged asset or liability (hedged item) attributable to the hedged risk. There were no changes with the adoption of IFRS 9. (ii) Cash flow hedge: The Company applies the cash flow hedge accounting to hedge against the cash flow volatility attributable to a risk of foreign exchange and interest rate fluctuation associated with highly probable forecast transactions that will affect income or loss for the year. For instruments designated as cash flow hedge, the Company started to account for changes in the fair value of the time value of the instruments (options), previously recognized in financial income (expense), net according to IAS 39, in accumulated other comprehensive income as hedge cost in the cash flow hedge reserve line. Hedge costs are reclassified to the statements of income together with the intrinsic value of the options by adjusting the initial value of the hedge item. As at January 1, 2019, the amount of US$ 1.3 was reclassified from retained earnings to the financial instrument reserve in accumulated other comprehensive income (loss) in shareholders’ equity related to the time value of the options. The Company did not reclassify the time value of outstanding options as at January 1, 2018, because these transactions were settled or expired before the transition date to IFRS 9. The Company’s risk management strategies and hedge documentation are aligned with the requirements of IFRS 9 for designation of transactions as cash flow hedge. 2.2.2 Functional and presentation currency A Company’s functional currency is the currency of the primary economic environment in which it operates and should be the currency that best reflects company’s business and operations. Based on this analysis, management has concluded that the US Dollar (“US$” or “Dollar”) is its functional currency, based on analysis of the following indicators: • Currency that most influences the prices of goods and services; this is the currency in which the sales price of its goods and services are expressed and settled. • Currency of the country whose competitive forces and regulations most influence the Company’s business. • Currency that most influences the costs of providing goods or services, i.e., the currency in which the Company’s costs are normally expressed and settled. • Currency in which the Company largely obtains funds for financial operations and in which it normally receives for its sales and accumulates cash. 2.2.3 Transactions in foreign currencies Transactions in other currencies (other than the functional currency) are translated into the functional currency at the foreign exchange rates in force on the transaction dates. The amounts are updated at the exchange rates of the reporting dates. Foreign exchange gains and losses resulting from this translation (in relation to monetary assets and liabilities indexed in currencies other than the functional currency) are recognized in the consolidated statements of income as foreign exchange gain (loss), net. Customer advances and advances to suppliers for goods and/ or services in foreign currencies are translated to the Company’s functional currency in the transaction date and no subsequent translation is recognized. 2.2.4 Financial Instruments a) Financial assets a.1) Recognition and measurement Financial assets are recognized when the Company becomes part of the instrument’s contractual arrangements. It is initially measured at fair value, plus transaction costs attributable to their acquisition or issuance, except for instruments measured at fair value through profit or loss, for which these costs are recognized immediately in the consolidated statements of income. The Company classifies its financial assets under the following categories: (i) measured as at amortized cost, (ii) measured as at fair value through other comprehensive income and (iii) measured at fair value through profit or loss. Financial assets are not reclassified subsequent to initial recognition, unless the Company modifies the business model for the management of these financial assets, in which case all affected assets are reclassified on the first day of the new business model. Financial assets are derecognised when the contractual rights to receive cash flows from the asset expires or are transferred in a transaction in which substantially all the risks and benefits of ownership of the financial asset are transferred by the Company. a.2) Classification and subsequent measurement The Company classifies financial assets as measured at amortized cost only if both criteria are met: • The asset is held within a business model whose objective is to collect the contractual cash flows; and • The contractual terms give rise to cash flows, at specific dates, which relate only to the payments of principal and interest. Financial assets measured as at amortized cost by the Company includes cash and cash equivalents, certain financial investments, trade accounts receivable, contract assets, guarantee deposits and other financial assets. Financial assets measured as at fair value through other comprehensive income (FVOCI) are assets held within a business model whose purpose is achieved both through the receipt of contractual cash flows and the sale of financial assets, as well as their contractual terms generate, on specific dates, cash flows that are related only to payments of principal and interest. Changes in fair value of FVOCI financial assets are recognized in accumulated other comprehensive (income) loss in the consolidated changes in shareholders’ equity. Gains or losses due to impairment and exchange variation, including interest calculated using the effective interest method, are recognized in the consolidated statements of income as financial income (expense), net, except for the exchange variation recognized as foreign exchange gain (loss), net. In the derecognition of these financial assets, any amounts accumulated in the consolidated statements of other comprehensive income are reclassified to the consolidated statements of income. All financial assets not classified by the Company as measured at amortized cost or as FVOCI are classified as at fair value through profit or loss (FVTPL). These assets include financial assets held for active and frequent trading and derivative financial instruments. (i) Business model evaluation The Company evaluates the business model objective for the management of financial assets as part of the accounting classification of the instruments. The factors considered in this evaluation are: • The current financial policy and the objectives set for portfolio management, which includes assessing whether the strategy focuses on contractual interest income, maintaining a determined interest rate profile, the relationship between the duration of the financial assets and related liabilities, expected cash outflows, or the collection of cash flows through the sale of underlying financial assets. • How portfolio performance is assessed and reported to Management. • Risks that affect the performance of the business model and how they are managed. • The frequency, volume and timing of assets sales in prior periods, the reasons for such transactions and future expectations. (ii) Evaluation if contractual cash flows are only principal and interest payments To assess whether contractual cash flows are only principal and interest payments, the principal is defined as the fair value of the financial asset at the initial recognition, and interest as a consideration for the time value of money, the credit risk associated with value of principal outstanding during contractual terms, other risks and general costs of loans, as well as a profit margin in the transaction. This evaluation is made by considering the contractual terms of the financial assets, which includes, in addition to evaluating whether the contractual cash flows are only principal and interest payments, the existence of terms that could change the timing or value of the contractual cash flows which would not meet the definition, including: contingent events, terms that can adjust contractual rates, prepayment and extension of due dates, and terms that limit access to cash flows of specific assets. b) Financial liabilities The Company classifies its financial liabilities in the following categories: (i) measured as at amortized cost and (ii) fair value through profit or loss. A financial liability is measured at fair value through profit or loss if it is held for trading or is a derivative financial instrument, and its changes, including interest, is recognized in the consolidated statements of income. Changes in other financial liabilities measured as at amortized cost, including interest and exchange variation, are recognized in the consolidated statements of income under financial income (expenses), net caption, except for the exchange variation recognized as foreign exchange gain (loss), net. Financial liabilities are derecognised when contractual obligations are withdrawn, canceled or expired. The difference between the extinct book value and the consideration paid (including transferred assets or assumed liabilities) is recognized in the consolidated statements of income. 2.2.5 Cash and cash equivalents and financial investments Cash and cash equivalents include cash in hand, cash in transit (amounts paid by our customers or debtors that are pending release by the intervening bank at the reporting date), bank deposits and highly liquid short-term investments, usually maturing within 90 days of the investment date, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Amounts related to cash and cash equivalents, which are however not available for use by the Company, are presented within other assets in the consolidated financial statements. Other financial investments with maturities of more than 90 days from the acquisition date are presented as financial investments. 2.2.6 Trade accounts receivable, net When making a sale, the Company evaluates its payment terms. If the sale amount is not due/ receipt immediately, which is the case of aircraft sales, it will be recognized in the trade accounts receivable. The amount receivable when the payment is deferred by the customer is adjusted to present value if applicable, identifying an interest rate compatible with the market at the time of sale and applying it to the amount receivable according to the transaction payment terms. The Company does not have trade accounts receivable from customers with a significant financing component. Expected credit losses are recognized using actual credit loss experiences from the last 10 years and follow-up 2.2.7 Derivative financial instruments The Company uses derivative instruments to hedge its operations against the risk of fluctuations in foreign exchange and interest rates; they are not used for speculative purposes. Gains and losses on derivative transactions are recorded in consolidated statements of income, considering the fair value of these instruments. The unearned gains and losses is recognized in the consolidated statements of financial position under derivative financial instruments, and the counterpart in consolidated statements of income under financial income (expense), net, (Note 35), except for operations to hedge exposure to changes in exchange rate or designated as cash flow hedge, which is recognized as accumulated other comprehensive income (loss) in shareholders’ equity. 2.2.8 Hedge accounting The Company uses hedge accounting to book certain derivative financial instruments applied to hedge risks of fluctuations in foreign exchange and interest rates in transactions associated with firm commitments and highly probable forecast transactions. On hedge initial designation, the Company formally documents the relationship between hedge instruments and hedged items, including the risk management objectives and the strategy for conducting the transaction, together with the methods used to evaluate the effectiveness of hedge relationship. The fair value of derivative financial instruments designated as hedge accounting is presented in Note 9. Changes in fair value of hedge instruments and hedge costs booked in accumulated other comprehensive income (loss) in shareholders’ equity are presented in Note 9. a) Fair value hedge Fair value hedge is applied for derivative financial instruments that hedge the Company against risk of fluctuations in interest rates (hedged risk) of loans and financing. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in income or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The gain or loss relating to the effective portion of interest rate swaps is recognized in income or loss as financial income (expense), net. The gain or loss relating to the ineffective portion is recognized in income or loss within financial income (expense), net. b) Cash flow hedge Cash flow hedge is applied for hedging risks associated with the volatility of cash flows in foreign currency associated with highly probable forecast transaction that will impact income or loss, in this case the payroll expenses of personnel in Brazil settled in Brazilian Reais. The Company designates as cash flow hedges the intrinsic value of hedge instruments (put and call options of foreign currency). The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within shareholders’ equity. The time value of put and call options is recognized as hedge costs in accumulated other comprehensive income (loss) within shareholders’ equity. The gain or loss relating to the ineffective portion is recognized immediately in income or loss, within financial income (expense), net. Amounts accumulated in shareholders’ equity are reclassified in the periods when the hedged item affects income or loss. When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in shareholders’ equity at that time remains in shareholders’ equity until the highly probable forecast transaction occurs, when it is reclassified to income or loss along with the gain or loss of forecast transaction. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in shareholders’ equity are immediately reclassified to income or loss within financial income (expense), net. c) Effectiveness of hedge accounting Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments, to ensure that an economic relationship exists between the hedged item and hedging instrument. For fair value hedges, the Company enters into interest rate swaps where the critical terms of the hedging instrument match exactly with the terms of the hedged item, as notional value, payment term and cash outflow dates. Since all critical terms matched during the year the hedge relationship was 100% effective. In the case of cash flow hedges designated to hedge the volatility of payroll expenses settled in Brazilian Reais, the Company enters into zero-cost 2.2.9 Inventories The Company’s inventories are largely comprised of raw material, work in progress, spare parts and finished goods. Inventories of raw materials are recognized at acquisition cost. Inventories of work in process comprise raw materials, direct labor, other direct costs and general production costs attributable to the cost of the inventories. Once the products have been completed, they are recognized as finished products. Inventories of raw material and spare parts are recognized as at the weighted average cost. Manufactured aircrafts (finished goods) and work in progress are measured at its individual production cost, which is recognized as cost of sales and services in the consolidated statements of income when aircraft is delivered to the customer. Inventories are assessed periodically to determine whether the net realizable value is higher than its cost and impairment loss is recognized if the book value is higher as cost of goods sold and services rendered. The Company periodically assesses the consumption and demand for its inventories and records an expense for estimated losses due to obsolescence in the case of items without activity and for which there is no demand for subsequent periods, in accordance with established policy: Provision for obsolescence is 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. The Company holds used aircraft for resale, usually received in trade-in 2.2.10 Income tax and social contribution Tax expenses for the year comprise current and deferred income tax. Income tax is recognized in the consolidated statements of income, except the portion of deferred income tax related to items recognized |
Critical accounting estimates a
Critical accounting estimates and significant judgements | 12 Months Ended |
Dec. 31, 2019 | |
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Critical accounting estimates and significant judgements | 3. Critical accounting estimates and significant judgements Preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and adopt assumptions that affect the reported amounts of assets and liabilities, revenue and expense and their disclosure. Therefore, variables and assumptions derived from past experience and other factors deemed relevant were used in preparing accompanying consolidated financial statements included in this report. These estimates and assumptions are reviewed on an ongoing basis and the changes to accounting estimates are recognized in the period in which the estimates are revised on a prospective basis. The significant accounting policies, including the variables and assumptions used in the estimates, and the relevant sensitivity of those judgments to different scenarios and conditions are described below: 3.1. Revenue from long-term contracts (Defense & Security) In the Defense & Security segment, a significant portion of revenue is derived from long-term contracts with the Brazilian and foreign governments, recognized over time by the cost incurred method (Note 2.2.26 – c), using the ratio of actual cumulative costs incurred divided by total estimated costs at completion for progress measurement. During the contract execution, the Company assesses the costs incurred, adjusting total estimated costs at completion if necessary, to reflect variations in costs in relation to the projections, mainly due to changes in circumstances and new events, such as contract modification. Any resulting increase or decrease in estimated revenues or costs at completion is recognized as catch-up In a hypothetical scenario of 10% increase or decrease over Management’s projection of total estimated costs at completion of long-term contracts in progress during 2019, the Company’s revenue in the year would be lower in US$ 462.7 or would increase by US$ 309.4, respectively. 3.2. Residual value guarantees (Commercial Aviation) The residual value guarantees granted on aircraft sales of the Commercial Aviation business unit may be exercised at the end of a financing contract between a financial agent and the customer/operator of these aircraft. The guarantees are initially measured at fair value and are revised quarterly to reflect changes in relation to the fair value of these commitments. The residual value guarantees may be exercised if the quoted market value is lower than the future fair value guaranteed. The future fair value is estimated in accordance with third party evaluation of the aircraft, including information from sale or leasing of similar aircraft in the secondary market. Sensitivy analysis of the fair value of residual value guarantees is presented below: Additional variations in book balances Amounts exposed at 12.31.2019 -50% -25% Probable scenario +25% +50% Financial guarantee of residual value 129.6 (57.2 ) (53.4 ) (0.9 ) 92.9 123.8 Total 129.6 (57.2 ) (53.4 ) (0.9 ) 92.9 123.8 (*) The positive and negative variations of 25% and 50% were applied on the current rates. Effects of changes would impact results of discontinued operations. As of December 31, 2019, residual value guarantees are part of the liabilities related to assets held for sale of the Commercial Aviation business unit (Note 4). 3.3. Impairment of long-lived assets The annual impairment test performed at the end of the year considers the Company’s medium and long-term strategic plan cash flows, brought to present value at an appropriate discount rate compatible with the market and that reflects the shareholders’ expectations of return. In preparing or using this information, the Company uses estimates, as follows: a) Gross expected cash flow - b) Growth rates - c) Discount rates - Additional information on key assumptions and sensitivity analysis is disclosed in Note 19. 3.4. Classification and presentation of the Commercial Aviation business unit as assets “held for sale” and “discontinued operations” According to IFRS 5, in light of the shareholder’s approval of the then pending strategic partnership with Boeing on Extraordinary General Shareholders’ Meeting held on February 26, 2019, the Company’s consolidated financial statements as of and for the year ended December 31, 2019 were prepared considering the designation, measurement and presentation of the assets, liabilities and results of the Commercial Aviation business unit and related services as “assets held for sale” and “discontinued operations”, pursuant to the terms of the Master Transaction Agreement. Details regarding the Transaction are disclosed in Note 4. Since the initial designation of the Commercial Aviation business unit assets as “held for sale” until April 25, 2020, the depreciation of property, plant and equipment, and amortization of intangible assets and right of use that is part of the Commercial Aviation business unit were ceased and no longer recognized as profit or loss due to the expectation of assets realization through sale instead of continuous use. If these assets had not been classified as held for sale in 2019, the depreciation and amortization expenses that would have been recognized in profit or loss for the year was US$ 83.5 million. In addition, the long-lived assets held for sale were measured at the lower of their carrying amount and fair value less cost to sell (incremental costs directly attributable to the conclusion of now terminated sale transaction with Boeing Note 4). Starting on April 25, 2020, those long-lived assets previously “held for sale” will be subject to impairment test and measured at the lower of their carrying amount and recoverable amount, which is determined at the higher between their value in use and fair value less cost to sell (Note 40). |
Assets held for sale and discon
Assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2019 | |
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Assets held for sale and discontinued operations | 4. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS A discontinued operation is the Company’s business component comprising operations and cash flows that can be clearly distinguished, that represents an important separate business line and is part of a coordinated and approved plan by Management for its sale. The classification of an operation as discontinued is reached upon its disposal, or when the related assets and liabilities are designated as held for sale, whichever the first. An asset or group of assets and liabilities is held for sale when its carrying amount is expected to be recovered mainly through the sale transaction rather than through continuing use. This occurs if the asset is available for immediate sale “as is”, subject only to usual and customary terms for completion of the transaction, when the sale is defined as highly probable. The group of assets and liabilities held for sale (disposal group) are measured at the lower of their carrying amount and fair value less incremental costs directly attributable to the conclusion of sale transaction. The disposal group is also comprised of assets and liabilities that is outside the measurement scope of assets and liabilities held for sale, which includes deferred tax assets (Note 2.2.10), financial instruments (Note 2.2.4) and employee benefits (Note 2.2.22). These assets and liabilities are still measured in accordance with the Company’s accounting policies disclosed in previous topics. When an operation is classified as discontinued, the comparative statements of income are recasted to present the results of continuing operations separately from the results of discontinued operation since the beginning of comparative periods. The results of discontinued operation are presented separately on a single line in the statement of income, net of income taxes. In the preparation of the consolidated statements of income, the transactions between subsidiaries, as sales of parts and services, were eliminated within continuing and discontinued operations following the consolidation practice consistently as previous periods and without adjustments between operations. 4.1 Context of the transaction between Embraer S.A. and The Boeing Company (“Boeing”) The terms and conditions approved on December 17, 2018 defined the creation of a joint venture contemplating Embraer’s Commercial Aviation business unit with 80% interest held by a subsidiary of Boeing and 20% by Embraer, as well as the creation of joint venture to promote and develop new markets and uses for the C-390 Millen n On January 10, 2019, the Brazilian Federal Government informed that it would not exercise the veto right in relation to the strategic partnership between Embraer and The Boeing Company, under the terms aforementioned. Thereafter, on January 11, 2019 the Company’s Board of Directors decided (i) to ratify the resolution of December 17, 2018 that approved the Transaction; (ii) to authorize the execution of the MTA, which provided the terms and conditions for the consummation of the strategic partnership in connection with the Commercial Aviation, and the Contribution Agreement, which provided the terms and conditions for the creation of a joint venture for the promotion and development of new markets and applications for the C-390 Mille n On January 24, 2019, Embraer and The Boeing Company entered into the MTA and the Contribution Agreement and, on February 26, 2019, the shareholders of the Company approved, with 96.8% of valid votes, the strategic partnership with The Boeing Company, as stated in the Management’s Proposal disclosed on January 24, 2019. On January 1, 2020, the internal carve-out of the Company’s Commercial Aviation business was implemented by means of the contribution by Embraer S.A., to the capital stock of its wholly-owned subsidiary, Yaborã Indústria Aeronáutica S.A. (“Yaborã”), of the net assets comprising assets and liabilities related to the Commercial Aviation business unit, including the assumption by Yaborã In addition to the contribution of the Commercial Aviation’s net assets, the internal carve-out also included transactions performed under common control for corporate restructuring of entities related to the Commercial Aviation business unit. These common control transactions had no impact on the consolidated financial statements as of December 31, 2019 and subsequent periods since they were carried at book value in accordance with the Company’s policy, without impact on shareholders’ equity and income for the year. Subsequent events – Unexpected and wrongful termination of the strategic partnership by Boeing On April 25, 2020, Embraer received a notice from Boeing communicating its decision to terminate the MTA, based on Boeing’s assertion that certain closing conditions in the MTA had not been satisfied by Embraer by the April 24, 2020 termination date in the MTA. In addition, Boeing terminated the Contribution Agreement. Embraer strongly believes that Boeing wrongfully terminated the MTA and the Contribution Agreement and that it had a continuing obligation to abide by the terms thereof. Embraer strongly believes that Embraer was in full compliance with its obligations under the MTA and the Contribution Agreement. Embraer is pursuing all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA and the Contribution Agreement, including by means of arbitration proceedings that have commenced by both sides in connection with the termination of the MTA and the Contribution Agreement by Boeing. No assurance can be given as to the timing or outcome of the arbitration proceedings or any recovery that Embraer may receive or loss that Embraer may incur therefrom or with respect to such arbitration proceedings. 4.2 Assets and related liabilities held for sale The Company’s assets and liabilities related to the Commercial Aviation and related services were measured and are being presented in the consolidated financial statements as assets and liabilities held for sale, and the respective results as discontinued operation in the statements of income, beginning February 26, 2019, date of approval by shareholders at the EGM when the highly probable criteria was reached. There were no impairment losses recognized in the group of assets and liabilities held for sale in initial measurement. The depreciation and amortization of non-current The identification and segregation of assets and liabilities held for sale and part of the disposal group considered the terms approved by the parties in the MTA related to the Commercial Aviation business unit and related services, which includes: • The business of designing, developing, manufacturing, assembling, testing, certifying, marketing, selling, and delivering commercial aircraft platforms and programs with a structural capacity capable of being configured to contain fifty (50) or more seats in an all-standard • The platforms and programs Lineage, Legacy and AEWC, as well as related activities performed by subsidiaries OGMA - Indústria Aeronáutica de Portugal S.A., Atech Negócios em Tecnologias S.A., Savis Tecnologias e Sistemas S.A., Visiona Tecnologia Espacial S.A., Embraer Business Innovation Center, Inc. and Embraer Aero Seating Technologies, LLC were retained by Embraer S.A. and excluded from the deal terms. ASSETS HELD FOR SALE Note 12.31.2019 Cash and cash equivalents 1,452.5 Financial investments 47.5 Trade accounts receivable, net 144.7 Customer and commercial financing 10.7 Contract assets 33.8 Inventories 1,079.6 Guarantee deposits 0.5 Income tax and social contribution 2.1 Other assets 111.5 Deferred income tax and social contribution 34.3 Property, plant and equipment 16 1,089.7 Intangible assets 18 1,157.5 Right of use 17 10.2 TOTAL 5,174.6 LIABILITIES HELD FOR SALE Note 12.31.2019 Trade accounts payable 474.7 Lease liability 17 9.4 Loans and financing 3,301.3 Other payables 132.5 Contract liabilities 746.1 Taxes and payroll charges payable 8.9 Income tax and social contribution 54.9 Financial guarantee and residual value guarantee 25 140.3 Unearned income 47.7 Provisions 26.1 39.5 Deferred income tax and social contribution 28.7 TOTAL 4,984.0 The following main assumptions were considered in the segregation of the main balances above: • Net debt of US$ 1.8 billion transferred to the Commercial Aviation business unit, in line with the allocation interval defined in the MTA, which establishes a maximum net debt ratio of US$ 3.0 billion. Net debt considers the sum of cash and cash equivalents and financial investments balances, reduced by the loans and financing position. • Spare parts and production inventories were segregated by operating segment during the year and physically moved for store in the industrial/operating plants included in the MTA. • Tangible and intangible assets were allocated as assets acquired and developed for Commercial Aviation business unit, as well as industrial/operating plants included in the agreement (São José dos Campos, Eleb and Taubaté - Brazil, Évora - Portugal and Nashvile - USA). • Trade accounts payables allocated for the contributed contracts defined in the MTA terms and the remaining contracts by operating segment based on the consumption history. • Short-term employee obligations, including social charges, were segregated by the personnel split provided by the internal carve-out • Liabilities related to contingency provisions are not transferred as agreed in the MTA. The following financial instruments are part of the disposal group as of December 31, 2019: Carrying amounts and Classification and measurement fair value comparison Amortized cost Fair value Fair value Book value Fair value (Note 28.2*) Financial assets Cash and cash equivalents 1,452.5 — 1,452.5 1,452.5 Financial investments 47.5 — 47.5 — Corporate bonds - 2.4% p.a. maturing on 2022 47.5 — 47.5 — Trade accounts receivable, net of expected credit losses of US$ 30.0 144.6 — 144.6 144.6 Customer and commercial financing 10.7 — 10.7 10.7 Guarantee deposits 0.5 — 0.5 0.5 Other assets 111.6 — 111.6 111.6 Financial liabilities Loans and financing 3,301.3 — 3,301.3 3,614.1 Notes – US$, maturing on 2020 to 2027 (Note 21.1) 2,949.9 — 2,949.9 3,264.5 Working capital – US$, maturing on 2021 to 2030 325.4 — 325.4 323.4 Working capital – EUR, maturing on 2023 to 2026 20.6 — 20.6 20.6 Bonds – US$, maturing on 2030 5.4 — 5.4 5.6 Lease liability 9.4 — 9.4 9.4 Trade accounts payable 474.7 — 474.7 474.7 Residual value guarantee (Note 25) — 129.6 Level 3 129.6 129.6 Other payables 132.5 — 132.5 132.5 * Note 28.2 includes disclosure of assumptions and methodologies applied by Management to calculate fair value of these financial assets and liabilities, as well as it presents the changes in fair value of financial instruments categorized within level 3 of fair value hierarchy. 4.3 Discontinued operations The results from the discontinued operations is comprised of income and expenses related to the business units and legal entities included in the agreement, mainly related to: • Revenues from contracts with customers, costs of products and services sold, and general expenses directly associated with the Commercial Aviation business unit and related services. • Portion of general and administrative expenses with corporate areas segregated during the internal carve-out • Other operating income and expenses directly associated with discontinued operations, including carve-out • Financial expenses on loans and financing interest that comprise the disposal group, including monetary and foreign exchange gains or losses of financial assets and liabilities held for sale. • Income tax expenses generated by the Commercial Aviation business unit and related services operations, as well as income tax expenses incurred as part of the internal carve-out 12.31.2019 12.31.2018 12.31.2017 REVENUE 2,844.5 2,943.4 3,312.9 Cost of sales and services (2,407.2 ) (2,373.6 ) (2,515.5 ) GROSS PROFIT 437.3 569.8 797.4 Operating Income (expense) Administrative (53.5 ) (46.5 ) (40.2 ) Selling (137.7 ) (152.8 ) (146.0 ) Research (29.8 ) (26.6 ) (27.0 ) Other operating income (expense), net (131.0 ) (25.6 ) (46.5 ) OPERATING PROFIT BEFORE FINANCIAL RESULT 85.3 318.3 537.7 Financial income, net (177.5 ) (177.7 ) (135.6 ) Foreign exchange gain (loss) , net 7.2 5.1 0.9 NET INCOME (LOSS) BEFORE TAXES ON INCOME (85.0 ) 145.7 403.0 Income tax expense (26.8 ) (55.6 ) 0.3 NET INCOME (LOSS) OF THE DISCONTINUED OPERATIONS (111.8 ) 90.1 403.3 4.4 Cash flows The Company’s cash flows attributable to assets and liabilities held for sale and results from the discontinued operation are as follows: 12.31.2019 12.31.2018 12.31.2017 Net cash generated by operating activities 301.9 466.4 710.3 Net cash used by investing activities (239.8 ) (295.5 ) (401.3 ) Net cash (used) generated by financing activities (19.1 ) (212.5 ) 555.7 43.0 (41.6 ) 864.7 |
Accounting standards not yet ad
Accounting standards not yet adopted | 12 Months Ended |
Dec. 31, 2019 | |
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Accounting standards not yet adopted | 5. Accounting standards not yet adopted New accounting standards and interpretations have been published or are in the process of being amended and will be effective in the coming years, however they were not cited, as, according to the Company’s assessment, no material impact arising from their application is expected. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
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Cash and cash equivalents | 6. Cash and cash equivalents 12.31.2019 12.31.2018 Cash and banks 585.0 125.4 585.0 125.4 Cash equivalents Private securities (i) 64.9 352.6 Fixed deposits (ii) 205.3 802.9 270.2 1,155.5 855.2 1,280.9 (i) Applications in Bank Deposit Certificates (CDB’s), issued by financial institutions in Brazil, available for redemption in up to 90 days without impact on contracted remuneration. (ii) Fixed term deposits in US Dollars with original maturities of 90 days or less. |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2019 | |
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Financial investments | 7. Financial investments 12.31.2019 12.31.2018 Fair value Total Amortised cost Fair value Fair value Total Financial instruments Private securities (i) — — — 50.4 — 50.4 Structured Notes (ii) 358.8 358.8 48.8 — 1,308.0 1,356.8 Investment funds 5.3 5.3 — — 2.4 2.4 Fixed Deposits (iii) — — — 457.3 0.1 457.4 Other (iv) 60.6 60.6 — — 59.9 59.9 424.7 424.7 48.8 507.7 1,370.4 1,926.9 Current portion 409.8 409.8 1.1 507.7 1,234.6 1,743.4 Non-current 14.9 14.9 47.7 — 135.8 183.5 (i) Private securities, being investments in Financial Bills, investments in Bank Deposit Certificates and Committed Transactions issued by Brazilian financial institutions, issued with maturities of more than 90 days. (ii) Structured notes, being: US$ 222.5 with credit risk of the financial institution issuer and the Brazilian government, and the amount of US$ 121.4 associated with credit risk of two financial institutions concurrently (US$ 1,103.7 and US$ 121.0, respectively, on December 31, 2018). In addition, the Company maintains financial investments in structured notes associated with its own credit risk in the amount of US$ 14.9 as of December 31, 2019 (US$ 83.2 as of December 31, 2018). The increase in profitability was obtained through a Credit default swap - CDS, a transaction which provides the right for early redemption of the note in case of a default event of the Company. After a default event, the note may be redeemed by the holder by the market value or original face value, which would result in a loss to the Company of all interest accrued so far. Default events that may anticipate the maturity of the notes are, among others: (a) the insolvency or judicial recovery of the Company; and (b) delinquency or restructuring of the Company’s debts in financing agreements. In case of default, the maturity dates of these notes will be accelerated, and the notes will be realized at market value, limited to a minimum of the initial investment. Any amount for which the market value exceeds the amount invested will be paid to the Company in the form of securities or loans of that amount. (iii) Fixed term deposits in US Dollars issued by financial institutions, with original maturities of 90 days or less from the date of hiring. (iv) Shares from Republic Airways Holdings, arising from the request for the judicial reorganization of the former entity Republic Airways and received by the Company as part of the restructuring plan (Note 25). The weighted average nominal interest rates on December 31, 2019, related to cash equivalents and financial investments made in Brazilian Reais were 5.96% p.a., equivalent to 100.14% of the CDI, and in Dollars 2.68% p.a. (6.56% p.a., equivalent to 101.26% of the CDI and in Dollars, 2.40% p.a. on December 31, 2018). |
Trade accounts receivable, net
Trade accounts receivable, net | 12 Months Ended |
Dec. 31, 2019 | |
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Trade accounts receivable, net | 8. Trade accounts receivable, net 12.31.2019 12.31.2018 Foreign customers 149.6 325.7 Brazilian Air Force 7.0 21.8 Domestic customers 3.9 15.5 160.5 363.0 Allowance for doubtful accounts (11.1 ) (45.0 ) 149.4 318.0 The amounts and maturities of these trade accounts receivable are shown below: 12.31.2019 12.31.2018 Current 104.2 217.0 Up to 90 days 25.6 52.6 From 91 to 180 days 10.3 13.6 More than 180 days 20.4 79.8 160.5 363.0 Changes in estimated credit losses year over year are shown below: 12.31.2019 12.31.2018 12.31.2017 Beginning balance (45.0 ) (52.9 ) (41.6 ) Additions/Reversal (4.4 ) 11.9 (12.2 ) Write-off 7.5 3.6 5.2 Foreign exchange variation 0.8 (7.6 ) (4.3 ) Assets held for sale 30.0 — — Ending balance (11.1 ) (45.0 ) (52.9 ) |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
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Derivative financial instruments | 9. Derivative financial instruments Derivative financial instruments are contracted to protect the Company’s operations from exchange and interest rate fluctuations and are not used for speculation. As of December 31, 2019, the Company had the following operations: • Non-deliverable • Swap operations, with the main objective of changing the debts index, from floating rates to fixed interest rates or vice versa, exchange of Dollar to Real or Euro and vice versa. The fair values of these instruments are measured by the future flow, determined by applying contractual interest rates to maturity, and discounted to present value at the date of the financial statements by the prevailing market rates. • Purchase of sell and by currency options, in order to protect cash flows for the parent company’s wage costs denominated in Reais, against the risk of currency fluctuations. The financial instrument used by the Company is a zero-cost zero-net Purpose Risk Settlement date 12.31.2019 12.31.2018 Derivatives designated as hedge accounting 1.4 1.2 Expenses in Brazilian Reais (i) Exchange rate 2019 — (7.5 ) 2020 (0.1 ) — Project development (ii) Interest rate 2019 — 0.9 2022 — 5.2 2023 1.5 0.3 Export Interest rate 2027 — 2.3 Other Derivatives (3.8 ) 0.2 Recourse and non-recourse Interest rate 2019 — 0.3 Acquisition of property, plant and Interest rate 2019 (0.1 ) (0.1 ) equipment (v) Export (vi) Exchange rate 2019 0.3 — Expenses in Brazilian Reais (i) Exchange rate 2019 (4.0 ) — Total (2.4 ) 1.4 (i) Zero-cost collar derivative financial instruments, designated as cash flow hedge amounting to US$ 98.1 equivalent to R$ 372.7 million, with purchase of PUT at the weighted average exercise price of R$ 3.80 and sale of CALL at the weighted average exercise price of R$ 4.40 for 2019. (ii) Derivative financial instruments (interest rate swaps), designated as fair value hedge, amounting to R$ 165.7 million, equivalent to US$ 41.1, of the Export Financing and Project Development lines subject to a weighted average fixed interest rate of 3.5% p.a. for a floating weighted average rate equivalent to 31.46% of the CDI. (iii) Derivative financial instruments (interest rate swaps), which converted the amount of US$ 2.8 from a floating interest rate equivalent to 65% of LIBOR 1 month + 2.4375% p.a. to a fixed weighted average interest rate of 5.23 % p.a. (iv) Derivative financial instruments (Non-Deliverable (v) Derivative financial instruments (Non-Deliverable On December 31, 2019, the amount of loans and financing measured at amortized cost amounted to US$ 89.5, considering the mark-to-market The hedge effectiveness ratio of the fair value and cash flow hedge on the initial date was 1:1 and 1:1, respectively. Considering the changes in the discounted cash value of the instruments not yet settled since January 1 and the amount of the hedged item, the effectiveness ratio was 1:1 and 1:1.1737 (1:1.0008 and 1:1.0303 on December 31, 2018). On December 31, 2019, and December 31, 2018, the fair value of derivative financial instruments was recognized in the Company’s assets and liabilities as follows: 12.31.2019 12.31.2018 Assets Current portion 1.4 5.4 Non-current 0.7 4.1 Liabilities Current portion (4.5 ) (8.1 ) Net derivative financial instruments (2.4 ) 1.4 |
Collateralized accounts receiva
Collateralized accounts receivable and recourse and non-recourse debt | 12 Months Ended |
Dec. 31, 2019 | |
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Collateralized accounts receivable and recourse and non-recourse debt | 10. Collateralized accounts receivable and recourse and non-recourse 10.1 Collateralized accounts receivable The Company held certain structured operations in the Commercial Aviation business unit in which the financial asset was comprised of financial inflows to be received over time and unguaranteed residual value of aircraft under specified return conditions to be received at the end of contract term. These structured operations were financed by third parties with the liability recorded as recourse and non-recourse with Impairment losses over the unguaranteed residual value of aircraft included in such structured operations amounted to US$ 32.8 in 2019 (US$ 32.2 in 2018) recognized as expenses of discontinued operations. In addition, certain structured operations of the Commercial Aviation business unit had its cash inflows sold to third parties, to whom financial guarantees were granted. In such cases, the Company maintained the cash inflow recorded as collateralized accounts receivable (guaranteed operation) and recorded as recourse non-recou r 12.31.2019 12.31.2018 Estimated residual value of leased assets — 215.8 Minimum lease payments receivable — 122.6 Guaranteed operation (cash inflow) 17.6 27.0 Impairment — (129.5 ) Investment in sales-type lease 17.6 235.9 Current portion 4.0 218.5 Non-current 13.6 17.4 10.2 Recourse and non-recourse 12.31.2019 12.31.2018 Recourse debt 10.6 330.6 Non-recourse 7.0 10.8 17.6 341.4 Current portion 4.0 324.0 Non-current 13.6 17.4 |
Guarantee deposits
Guarantee deposits | 12 Months Ended |
Dec. 31, 2019 | |
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Guarantee deposits | 11. Guarantee deposits 12.31.2019 12.31.2018 Sales financing guarantees (i) — 314.4 Sales structure guarantees (ii) — 25.3 Other 0.6 10.0 0.6 349.7 Current portion 0.1 339.9 Non-current 0.5 9.8 (i) Financial investments denominated in US Dollars, tied to structured operations from Commercial Aviation aircraft, whose waive depended on the completion of these structures and the settlement of the obligation of recourse and non-recourse (ii) US dollar amounts deposited in an escrow account as collateral for the financing of certain aircraft sold where Embraer serves as secondary guarantor. As of December 31, 2019, the obligation has been settled and the guarantee has ended. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
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Inventories | 12. Inventories 12.31.2019 12.31.2018 Raw materials 499.2 897.6 Work in process 439.7 891.6 Spare parts 224.6 424.3 Finished goods (i) 106.0 146.4 Held by third parties 50.7 108.7 Inventory in transit 21.0 91.1 Consumption materials 24.2 48.3 Used aircraft (ii) 5.9 46.0 Advances to suppliers 29.6 31.4 Loss on adjustment to market value (iii) (0.9 ) (7.7 ) Loss due to obsolescence (iv) (95.6 ) (170.7 ) 1,304.4 2,507.0 (i) The following aircraft were held in the finished goods inventory: • December 31, 2019: one Legacy 650, one Phenom 100, three Phenom 300, two Praetor 500, three Praetor 600, two Ipanema. • December 31, 2018: two Legacy 450, four Legacy 500, one Phenom 100; three Phenom 300, one Lineage and two Ipanema. (ii) The following used aircraft were held in inventory as available for sale: • December 31, 2019: one Phenom 300. The inventories of used aircraft reclassified as assets held for sale (Note 4) was comprised of two Embraer 135 and three Embraer 145. • December 31, 2018: one Legacy 450, one Lineage, one Phenom 300. Of the total aircraft held in inventories as of December 31, 2019, one Praetor 600 and two Ipanema had been delivered by until Ma y 18 (iii) Changes in the provision for adjustments to the realizable value of used aircraft were as follows: 12.31.2019 12.31.2018 12.31.2017 Beginning balance (7.7 ) (17.2 ) (19.9 ) Additions (5.2 ) (8.8 ) (8.2 ) Disposals 11.2 18.3 10.9 Assets held for sale 0.8 — — Ending balance (0.9 ) (7.7 ) (17.2 ) (iv) Changes in the provision for obsolescence were as follows: 12.31.2019 12.31.2018 12.31.2017 Beginning balance (170.7 ) (153.2 ) (138.1 ) Additions (50.3 ) (59.8 ) (48.7 ) Disposals 29.8 41.5 37.0 Foreign exchange loss 0.9 0.8 (3.4 ) Assets held for sale 94.7 — — Ending balance (95.6 ) (170.7 ) (153.2 ) |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2019 | |
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Other assets | 13. Other assets 12.31.2019 12.31.2018 Taxes recoverable (i) 94.4 132.2 Court-mandated escrow deposits (iii) 30.1 43.0 Prepaid expenses 22.5 24.3 Advances for services to be rendered 9.6 3.2 Other debtors (ii) 4.9 61.6 Loan with a joint operation 4.2 23.2 Advances to employees 1.9 8.5 Other 14.3 13.0 181.9 309.0 Current portion 120.1 203.4 Non-current 61.8 105.6 (i) Taxes recoverable 12.31.2019 12.31.2018 ICMS (State Value-added Tax) and IPI (Excise Tax) 65.1 85.5 PIS (Social Integration Program) and COFINS 12.0 24.5 Income tax and social security on net income 7.5 7.7 ISS (Service tax) 5.3 5.9 Other 4.5 8.6 94.4 132.2 Current portion 64.6 93.7 Non-current portion 29.8 38.5 (ii) Refers to deposits arising from lawsuits, substantially to federal taxes and contributions, in which there is a liability recorded Note26. (iii) Corresponds mainly to rework done on products supplied by third parties, which will be reimbursed according to the contractual terms and credits negotiated with certain suppliers that will be consumed over time from other receivables from suppliers. |
Interest in entities
Interest in entities | 12 Months Ended |
Dec. 31, 2019 | |
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Interest in entities | 14. Interest in entities 14.1 Wholly owned subsidiaries and special purpose entities Wholly owned subsidiaries and special purpose entities controlled directly or indirectly by the Company are described in Note 2.1.3 and are consolidated into the Embraer group. There are no contractual or legal restrictions on the Company’s access to assets or settlement of liabilities of the wholly owned subsidiaries of the group. There are inherent risks to the operations of these entities, the most significant of which are described below: • Economic Risks: potential losses from fluctuations in market conditions (price of products, exchange rate and interest). • Operational risk: potential losses resulting from the emergence of new technologies or failure of current processes. • Credit risk: potential losses that might occur if a third party (customer) becomes unable to meet its obligations, and • Liquidity risk: financial inability to meet financial obligations. 14.2 Subsidiaries with participation of non-controlling Non-controlling Embraer Group Comprehensive Entity Country interest% Non-controlling interest income OGMA - Indústria Aeronática de Portugal S.A. Portugal 65.0 % 35.0 % 53.9 3.0 Embraer CAE Training Services Ltd. United Kingdom 51.0 % 49.0 % — — Visiona Tecnologia Espacial S.A. Brazil 51.0 % 49.0 % 20.0 (0.5 ) Embraer CAE Training Services United States of America 51.0 % 49.0 % 23.0 10.2 96.9 Embraer group holds 51.0% of the entities Embraer CAE Training Services Ltd., Visiona Tecnologia Espacial S.A. and Embraer CAE Training Services. The powers described in the contractual agreements show that the Board of Directors is mainly comprised of Embraer representatives and the Embraer Group directs the principal operating activities of the entity. The financial position of the most significant entity of the group with non-controlling 12.31.2019 12.31.2018 Cash and cash equivalents 24.3 12.9 Current assets 180.2 168.9 Non current assets 60.8 61.0 Current liabilities 86.5 74.5 Non current liabilities 0.4 0.1 Noncontrolling interest 53.9 54.3 12.31.2019 12.31.2018 Revenue 277.5 162.9 Net income for the year 3.0 6.6 Group subsidiaries with non-controlling |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2019 | |
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Related parties | 15. Related parties 15.1 Related party transactions The tables below summarize balances and transactions with related parties outside the group and refers mainly to: • Assets: (i) accounts receivable for spare parts, aircraft sales and product development, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) balances of financial investments; and (iv) bank deposits. • Liabilities: (i) purchase of aircraft components and spare parts, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) advances received on sales contracts, according to contractual agreements; (iii) commission for sale of aircraft and spare parts (iv) financing for research and product development at market rates for this kind of financing (v) loans and financing; and (vi) export financing, and • Amounts in the consolidated statements of income: (i) purchases and sales of aircraft, components and spare parts and development of products for the defense and security market; (ii) financial income from financial investments and expense from loans and financing, and (iii) supplementary pension plan. 15.2 Brazilian Federal Government Transactions with related parties also involves transactions with the Brazilian Federal Government. The Brazilian Federal Government, through its direct and indirect participation and ownership of a common share denominated golden share Banco Nacional do Desenvolvimento Econômico e Social The Brazilian government plays a key role in the Company’s business activities, including as: • Major customer for Defense & Security products (through the Brazilian Air Force, Brazilian Army and Brazilian Navy). • Source of research and development financing through technology development institutions (FINEP and BNDES). • Export credit agency (through the BNDES), and • Source of short-term and long-term financing and a provider of asset management and commercial banking services (through Banco do Brasil). 15.3 December 31, 2019 12.31.2019 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 75.3 — — — 1.1 — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — — — — (5.1 ) — Brazilian Air Force 364.4 226.9 — — — (35.9 ) Marinha do Brasil 0.6 4.4 — — — (2.9 ) Embraer Prev - Sociedade de Previdência Complementar — 4.7 — — — (19.7 ) Brazilian Army 13.0 7.4 — — — 6.8 Financiadora de Estudo e Projetos – FINEP — 12.7 — 30.6 (1.7 ) — 453.3 256.1 — 30.6 (5.7 ) (51.7 ) 15.4 December 31, 2018 12.31.2018 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 326.2 314.3 9.4 — (4.2 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — 71.8 — 119.7 (8.3 ) — Brazilian Air Force 42.3 90.3 — — — (176.2 ) Marinha do Brasil 0.9 — — — — (12.6 ) Caixa Econômica Federal — — — — — — Embraer Prev - Sociedade de Previdência Complementar — 0.2 — — — (14.4 ) Brazilian Army — 4.3 — — — — Financiadora de Estudo e Projetos – FINEP — 13.0 — 43.5 (2.3 ) — 369.4 493.9 9.4 163.2 (14.8 ) (203.2 ) 15.5 December 31, 2017 12.31.2017* Financial Operating Results Results Banco do Brasil S.A. (0.5 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES (14.7 ) — Brazilian Air Force — (23.7 ) Marinha do Brasil — (6.2 ) Embraer Prev - Sociedade de Previdência Complementar — (22.9 ) Brazilian Army — (1.2 ) Financiadora de Estudo e Projetos – FINEP (2.9 ) — (18.1 ) (54.0 ) 15.6 Remuneration of key management personnel: 12.31.2019 12.31.2018 Short-term benefits (i) 9.0 10.0 Share based payment 3.2 3.3 Labor contract termination 1.2 1.0 13.4 14.3 (i) Includes wages, salaries, profit sharing, bonuses and indemnities. Key Management includes members of the statutory Board of Directors and Executive Directors. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Property, plant and equipment | 16 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 Weighted average Class of assets 12.31.2019 12.31.2018 Buildings and improvements 3.5 % 3.8 % Installations 8.4 % 4.9 % Machinery and equipment 9.1 % 10.0 % Furniture and fixtures 12.0 % 9.3 % Vehicles 32.0 % 22.7 % Aircraft 8.9 % 11.0 % Computers and peripherals 26.4 % 27.6 % Tooling 13.9 % 16.5 % Other assets 0.2 % 0.1 % Exchange pool program assets 2.9 % 3.7 % 12.31.2019 Land Buildings and Installations Machinery and Furniture Vehicles Aircraft (i) Computers and Tooling Other Exchange Construction in progress Total Cost 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 Additions 0.4 5.3 — 43.6 5.6 0.6 31.7 5.0 28.2 10.3 91.8 62.0 284.5 Disposals — (8.3 ) (3.7 ) (60.2 ) (22.4 ) (3.0 ) — (45.4 ) (26.1 ) (1.0 ) (19.0 ) (0.8 ) (189.9 ) Impairment — — — (14.1 ) — — (4.6 ) — (1.8 ) — — — (20.5 ) Reclassifications* — 30.3 6.3 11.3 (1.4 ) 0.1 (40.4 ) (6.6 ) 7.0 (7.6 ) (21.8 ) (39.3 ) (62.1 ) Interest on capitalized assets — — — — — — — — — — — — — Translation adjustments — (0.6 ) (0.1 ) (1.9 ) (0.1 ) (0.1 ) — (0.2 ) — — (6.1 ) 0.3 (8.8 ) Assets held for sale (6.3 ) (317.6 ) (104.8 ) (469.3 ) (17.8 ) (4.5 ) (48.2 ) (41.3 ) (192.6 ) (3.8 ) (374.7 ) (67.7 ) (1,648.6 ) At December 31, 2019 5.1 459.2 60.1 481.8 38.1 10.4 14.7 101.5 443.8 25.5 321.0 48.2 2,009.4 Accumulated depreciation 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 ) Depreciation — (15.2 ) (3.7 ) (32.9 ) (4.6 ) (1.0 ) (1.3 ) (7.0 ) (25.2 ) — (12.5 ) — (103.4 ) Disposals — 7.4 4.8 67.7 19.1 3.3 — 42.5 7.3 0.3 9.5 — 161.9 Reclassifications* — (2.9 ) 2.8 5.6 — — 16.9 1.7 — (7.3 ) 11.8 — 28.6 Interest on capitalized assets — (1.6 ) — — — — — — — — — — (1.6 ) Translation adjustments — (1.5 ) — 1.4 (0.1 ) 0.1 — 0.2 (0.1 ) — 5.2 — 5.2 Assets held for sale — 101.6 76.1 174.8 8.7 2.9 19.0 28.4 36.9 — 110.5 — 558.9 At December 31, 2019 — (131.6 ) (25.6 ) (301.5 ) (21.5 ) (8.5 ) (4.1 ) (88.7 ) (352.6 ) (18.4 ) (88.0 ) — (1,040.5 ) Net 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 At December 31, 2019 5.1 327.6 34.5 180.3 16.6 1.9 10.6 12.8 91.2 7.1 233.0 48.2 968.9 12.31.2018 Land Buildings and Installations Machinery and Furniture and Vehicles Aircraft (i) Computers and Tooling Other Exchange Construction in 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 — — — (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 Installations Machinery and Furniture Vehicles Aircraft (i) Computers and Tooling Other Exchange 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 — — — (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 * Non-cash transactions |
Right-of-use assets and lease l
Right-of-use assets and lease liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Right Of Use Assets And Lease Liabilities [Abstract] | |
Right-of-use assets and lease liabilities | 17 Right of use assets and lease liabilities 12.31.2019 Right of use assets Lease Liabilities Land Buildings land Machinery and Vehicles Other Total At January 1, 2019 — 56.8 0.1 0.6 0.1 57.6 57.6 Additions 4.0 13.5 — 0.3 0.3 18.1 18.1 Depreciation expense (1.1 ) (8.6 ) (0.1 ) (0.5 ) (0.1 ) (10.4 ) — Disposals — (17.3 ) — — — (17.3 ) (17.3 ) Interest expense — — — — — — 6.0 Payments — — — — — — (11.8 ) Translation adjustments — — — — — — (4.6 ) Assets and liabilities held for sale (2.9 ) (7.2 ) — (0.1 ) — (10.2 ) (9.4 ) At December 31, 2019 — 37.2 — 0.3 0.3 37.8 38.6 Current portion 5.0 Non-current 33.6 The total amount of short-term lease expenses is US$ 1.9 in the period ended December 31, 2019, and US$ 1.4 for low value leases recognized as operating expenses. Below we present the annual weighted average depreciation rates by class of right-of-use: Class of assets Weighted average 12.31.2019 Land 29.9 % Buildings and improvements 12.2 % Machinery and equipment 69.6 % Vehicles 51.0 % Other assets 19.9 % Below we present the discount rates applied to lease contracts based on the weighted average nominal rate considering the remaining contracts term by year: Deadline of the contract and discount rate Deadline of the contract Rate%(p.y) 1 year 3.28 2 years 3.95 3 years 4.68 4 years 5.47 After 4 years 6.91 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Intangible assets | 18 Intangible assets Internally developed intangible assets relate to expenditure incurred in developing new aircraft, including support services, production labor, materials and direct labor allocated to the construction of aircraft prototypes or significant components, and also the use of advanced technologies to make the aircraft lighter, quieter, more comfortable and energy-efficient and to reduce emissions, in addition to speeding up design and manufacture, while optimizing the use of resources. 12.31.2019 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2018 1,916.3 1,341.2 43.4 3.5 6.3 350.3 10.4 68.8 3,740.2 Additions 188.2 31.3 5.9 0.1 3.1 19.3 — 35.4 283.3 Contributions from suppliers (4.5 ) — — — — — — — (4.5 ) Disposals — — — — — (2.0 ) — — (2.0 ) Impairment — (55.6 ) — — — — — — (55.6 ) Interest on capitalized assets 4.9 1.9 — — — — — — 6.8 Translation adjustments — — — — — — (0.4 ) — (0.4 ) Assets held for sale (2,104.9 ) (26.5 ) — — — (153.9 ) — (29.2 ) (2,314.5 ) At December 31, 2019 — 1,292.3 49.3 3.6 9.4 213.7 10.0 75.0 1,653.3 Acumulated amortization At December 31, 2018 (1,053.6 ) (512.2 ) (32.4 ) (1.2 ) (2.9 ) (232.8 ) — (6.3 ) (1,841.4 ) Amortization (3.1 ) (75.1 ) (0.4 ) (0.1 ) (0.8 ) (14.4 ) — (2.0 ) (95.9 ) Amortization of contribution from suppliers 1.0 21.4 — — — — — — 22.4 Disposals — — — — — 1.2 — — 1.2 Interest on capitalized assets — (2.4 ) — — — — — — (2.4 ) Assets held for sale 1,055.7 18.2 — — — 80.4 — 2.6 1,156.9 At December 31, 2019 — (550.1 ) (32.8 ) (1.3 ) (3.7 ) (165.6 ) — (5.7 ) (759.2 ) Intangible, net At December 31, 2018 862.7 829.0 11.0 2.3 3.4 117.5 10.4 62.5 1,898.8 At December 31, 2019 — 742.2 16.5 2.3 5.7 48.1 10.0 69.3 894.1 12.31.2018 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Additions 209.3 41.3 4.0 0.1 2.5 8.0 — 25.1 290.3 Contributions from suppliers (125.5 ) — — — — — — — (125.5 ) Disposals — — — — — (3.4 ) — — (3.4 ) Reclassifications — — 5.9 (2.4 ) (10.1 ) 2.4 — (1.9 ) (6.1 ) Impairment — (58.5 ) — — — — — — (58.5 ) Interest on capitalized assets 7.3 2.7 — — — — — — 10.0 Translation adjustments — — — — — — (1.6 ) — (1.6 ) At December 31, 2018 1,916.3 1,341.2 43.4 3.5 6.3 350.3 10.4 68.8 3,740.2 Acumulated amortization At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4 ) (1,752.6 ) Amortization (29.6 ) (51.1 ) (1.8 ) (0.1 ) (0.9 ) (28.1 ) — (1.2 ) (112.8 ) Amortization of contribution from suppliers 8.0 14.0 — — — — — — 22.0 Disposals — — — — — 2.2 — — 2.2 Reclassifications — — (2.7 ) — 4.8 — — (0.7 ) 1.4 Interest on capitalized assets (0.2 ) (1.4 ) — — — — — — (1.6 ) At December 31, 2018 (1,053.6 ) (512.2 ) (32.4 ) (1.2 ) (2.9 ) (232.8 ) — (6.3 ) (1,841.4 ) Intangible, net At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 At December 31, 2018 862.7 829.0 11.0 2.3 3.4 117.5 10.4 62.5 1,898.8 12.31.2017 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total At December 31, 2016 1,515.1 1,320.3 30.8 51.8 13.5 311.4 21.0 32.8 3,296.7 Additions 313.8 76.9 3.0 2.5 1.9 56.3 — 16.1 470.5 Contributions from suppliers (86.0 ) — — — — — — — (86.0 ) Disposals — — — — (1.5 ) — — — (1.5 ) Reclassifications 71.3 3.6 (0.3 ) (48.5 ) — (24.4 ) — (1.7 ) — Impairment — (49.9 ) — — — — (8.7 ) (1.9 ) (60.5 ) Interest on capitalized assets 11.0 4.8 — — — — — — 15.8 Translation adjustments — — — — — — (0.3 ) 0.3 — At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Acumulated amortization At December 31, 2016 (992.4 ) (424.9 ) (25.6 ) — (5.7 ) (179.8 ) — (3.7 ) (1,632.1 ) Amortization (57.4 ) (56.7 ) (2.6 ) (0.1 ) (1.1 ) (27.1 ) — (1.2 ) (146.2 ) Amortization of contribution from suppliers 13.5 13.8 — — — — — — 27.3 Reclassifications 4.5 (4.3 ) 0.3 (1.0 ) — — — 0.5 — Interest on capitalized assets — (1.6 ) — — — — — — (1.6 ) At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4 ) (1,752.6 ) Intangible, net At December 31, 2016 522.7 895.4 5.2 51.8 7.8 131.6 21.0 29.1 1,664.6 At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 |
Impairment of assets
Impairment of assets | 12 Months Ended |
Dec. 31, 2019 | |
Impairment Of Assets [Abstract] | |
Impairment of assets | 19 Impairment of assets As of December 31, 2019, the Company performed its annual impairment test of the cash-generating units (CGUs) to which goodwill and indefinite-lived assets are allocated, as well as for the additional CGUs with long-lived assets allocated, since based in the Company’s stock price observed in the end of reporting period, its market capitalization was lower than book value, external source that might indicate impairment of the Company’s assets based on IFRS standards. As a result of impairment test performed in year ended December 31, 2019, the Company identified impairment losses in the CGU of Legacy / Praetor (Executive Aviation business unit) in the total of US$ 71.6, proportionally allocated to the development of platform (intangible assets) of US$ 55.7, and to the property, plant and equipment in the classes of machinery and equipment of US$ 14.1 and tolling of US$ 1.8. The impairment charge is presented as other operating expense in profit or loss (Note 34). In previous years ended December 31, 2018 and 2017, impairment losses of US$ 61.3 and US$ 62.0 were recognized, respectively, related to Lineage 1000 and Legacy 650 platforms (Executive Aviation business unit) and Monitoring, Sensoring and Radars (Defense & Security business unit) CGUs. Impairment losses identified and recognized are consequences of revisions in market conditions, analysis of potential customers and industry forecasts of each impaired aircraft model. Except for CGU of Legacy / Praetor platform, there are no other CGUs with impairment losses recognized or at relevant risks of impairment losses as of December 31, 2019. The remaining CGUs presents headrooms falling in range of 45% to 500% when compared its value-in-use versus carrying amount. Assets held for sale related to the Commercial Aviation business unit were tested for impairment based on its fair value less cost to sell considering the transaction current terms agreed with Boeing (Note 4). No impairment losses were identified. Key assumptions of impairment test: - Except for CGU of Commercial Aviation business unit, the impairment tests were prepared based on the value-in-use value-in-use - Estimated future cash flows were discounted using the weighted average capital cost rate, which is reconciled to an estimated discount pre-tax Sensitivity analysis: The table below presents the sensitivity analysis of impairment test performed for CGU of Legacy / Praetor platform (Executive Aviation business unit): Assumption Factor Sensitivity Impact in impairment test Estimated aircraft deliveries during the useful life of platform up to 30 years and keeping current market share 1.000-1.100 5 % - Increase or decrease of impairment loss by US$ 65 if the level of aircrafts deliveries fluctuates positively or negatively in 5%. Discount rate 11.3 % 1 percentage point - Increase of 1 pp. in discount rate would increase impairment loss by US$ 64. - Reduction of 1 pp. in discount rate would change impairment loss recognized of US$ 71.6 to zero. Foreign exchange rate (USD/R$) - FX spot rate applied to translate cash flows in foreign currency (R$) R$ 4.0307 10 % - Reduction of 10% in spot rate as of 12/31/2019 would increase impairment loss by US$ 55. - Increase of 10% in spot rate as of 12/31/2019 would decrease impairment loss by US$ 45. |
Trade accounts payable
Trade accounts payable | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Trade accounts payable | 20 Trade accounts payable 12.31.2019 12.31.2018 Foreign suppliers 300.9 574.0 Risk partners (i) 0.6 200.2 Domestic suppliers 56.5 117.9 358.0 892.1 (i) The Company’s risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components, and fuselage parts. Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners. Outstanding transactions related to Commercial Aviation were reclassified to liabilities held for sale Note 4. |
Loans and financing
Loans and financing | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Loans and financing | 21 Loans and financing Currency Contractual interest rate - % Effective interest rate - % Maturity 12.31.2019 12.31.2018 Other currencies: 5.05% to 6.38% 5.15% to 6.74% 2027 (i) — 2,941.8 US$ 3.07% a 5.87% 3.11% a 5.87% 2030 — 124.1 Working capital Libor 6M + 2.60% Libor 6M + 2.60% 2021 — 219.8 Euro 0.00% 0.00% 2026 — 19.60 Property, plant and equipment US$ 1.90% 1.90% 2037 47.9 55.8 Libor 1M + 2.44% a 2.5% Libor 1M + 2.44% a 2.5% 2024 47.9 3,361.1 In local currency: Project development R$ 3.50% 3.50% 2023 43.1 248.0 TJLP + 0.00% to 6.00% TJLP + 0.00% to 6.00% 2022 Export Credit Note R$ 11.00% 11.00% 2019 — 38.5 43.1 286.5 Total 91.0 3,647.6 Current portion 14.9 179.3 Non-current 76.1 3,468.4 21.1 Issuance of Bonds The issuances of Bonds are part of the disposal group (assets and related liabilities held for sale) as of December 31, 2019, pursuant to Note 4. The paragraphs below detail the issuances made by the Company and outstanding in the current financial position. In October 2009, Embraer Overseas Limited issued US$ 500,000 in guaranteed notes at 6.375% p.a., due on January 15, 2020. The operations are fully and unconditionally guaranteed by the Parent Company. Because Embraer Overseas Limited is a wholly owned subsidiary of Embraer S.A., whose objective is to perform financial operations. Between August and September 2013, through its subsidiary Embraer Overseas Limited, Embraer S.A. made an offer to exchange existing bonds maturing in 2017 (settled in January 2017) and 2020 for “New Notes” maturing in 2023. In the case of bonds maturing in 2017, the exchange offer resulted in US$ 146,399 of the aggregate principal of existing notes and US$ 337,168 of the aggregate principal of the 2020 Notes, representing approximately 54.95% of the Notes exchanged. The total of the exchange offer, taking into account the effects of the exchange price on the negotiations and the total New Notes issued closed at approximately US$ 540,518 in principal at a rate of 5.696% p.a., maturing on September 16, 2023. The operations are fully and unconditionally guaranteed by the Parent Company. In June 15, 2012, Embraer S.A. raised funds by issuing guaranteed notes, maturing on June 15, 2022, through an overseas offer of US$ 500,000 at a rate of 5.15% p.a. In June 2015, the Company’s wholly owned finance subsidiary Embraer Netherlands Finance B.V, which only performs financial operations, issued US$ 1,000,000 in Guaranteed Notes at 5.05% p.a., due on June 15, 2025, in an offering subsequently registered with the SEC. This operation is fully and unconditionally guaranteed by the Parent Company. Because Embraer Netherlands Finance B.V is a wholly owned subsidiary of Embraer S.A., whose objective is to perform financial operations. In February 2017, Embraer Netherlands Finance B.V., Embraer S.A. subsidiary, issued an offering registered with the SEC of US$ 750,000 with a nominal interest rate of 5.40% p.a. maturing February 1, 2027. The operations are fully and unconditionally guaranteed by the Parent Company. Because Embraer Netherlands Finance B.V. is a wholly owned subsidiary of Embraer S.A., whose objective is to perform financial operations. As a result of our then pending strategic partnership with Boeing, on January 1, 2020, the Company implemented the internal carve-out of our Commercial Aviation business unit by means of the contribution by Embraer to the capital stock of Yaborã of the net assets comprising of assets, liabilities, properties, rights and obligations related to that business unit (Note 4). In this context, the Company amended the indentures governing the senior unsecured notes due 2020, 2022, 2023, 2025 and 2027, previously mentioned, in order to (i) substitute Embraer S.A. for Yaborã as the issuer of the notes due 2022; and (ii) have Yaborã substitute Embraer S.A. as guarantor of the notes due 2020, 2023, 2025 and 2027. On March 10, 2020, Embraer S.A. and Yaborã further amended the indentures governing the notes due 2022, 2023, 2025 and 2027, without the consent of the holders of these notes, to reflect that, from such date, Embraer S.A. irrevocably and unconditionally guarantee the full and punctual payment of the principal, premium, interest, additional amounts and all other amounts that may become due and payable under the relevant notes and indentures. The terms of the supplemental indentures provide, among other things, that the Embraer S.A. guarantee shall automatically terminate on the date that the Company cease to own 100% of the share capital of Yaborã. On March 17, 2020, Yaborã announced that it obtained the relevant consents of the holders of the notes due 2022, 2023, 2025 and 2027 and, accordingly, further amended the indentures under which the notes due 2022, 2023, 2025 and 2027 were issued. On December 31, 2019, the changes in loans and financing were as follows: 12.31.2019 12.31.2018 12.31.2017 Opening balance 3,647.6 4,198.3 3,759.9 Principal addition 400.5 124.0 972.9 Interest addition 186.3 218.0 192.7 Principal payment (645.9 ) (596.3 ) (540.2 ) Interest payment (188.1 ) (212.7 ) (186.4 ) Foreing exchange (8.2 ) (83.7 ) (0.6 ) Reclassification to held for sale (3,301.2 ) — — Ending balance 91.0 3,647.6 4,198.3 As of December 31, 2019, the maturity schedules of the long-term financing are: Year 2021 27.7 2022 11.7 2023 8.5 2024 0.1 After 2024 28.1 76.1 As of December 31, 2019, the maturity schedules of the loans and financing classified as “held for sale” are (Note 4.2): Year 2020 200.1 2021 203.0 2022 503.4 2023 517.8 2024 12.9 After 2024 1,864.1 3,301.3 21.2 Interest and guarantees On December 31, 2019, loans denominated in US dollars (52.6% of the total) are mainly subject to fixed interest rates. The weighted average rate was 2.43% p.a. (5.57% p.a. on December 31, 2018). On December 31, 2019, loans denominated in Reais (47.4% of the total) are subject to fixed interest rates or interest based on the Brazilian Long-term Interest Rate (“TJLP”) and CDI. The weighted average rate was 1.52% p.a. (2.47% p.a. on December 31, 2018). On December 31, 2019, there are no loans in Euros (0.5% p.a. on December 31, 2018). Real estate, machinery, equipment, commercial pledges and bank guarantees totaling US$ 164.0 as of December 31, 2019 (US$ 339.4 as of December 31, 2018) were provided as collateral for loans. 21.3 Restrictive clauses Long-term financing contracts are subject to restrictive clauses, consistent with usual market practices, such as normal restrictions on the creation of new liens on assets, significant changes in the Company’s share control, sale of assets and payment of dividends in excess the minimum required by law in cases of default in financing and in transactions with controlled companies. As of December 31, 2019, the Company and subsidiaries were in compliance with all the restrictive clauses, according with contracts clauses. |
Other payables
Other payables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other payables | 22 Other payables 12.31.2019 12.31.2018 Provisions related to payroll (i) 58.4 92.8 Provision for employee profit sharing 20.9 34.3 Other accounts payable (ii) 54.0 114.6 Mutual with jointly controlled operation — 23.2 Long-term incentive (iii) 16.4 16.9 Insurance 7.1 6.2 Contractual obligations (iv) 6.7 17.5 Commission payable 11.3 10.9 Brazilian air force 0.4 0.6 175.2 317.0 Current portion 162.5 288.4 Non-current 12.7 28.6 (i) Refers to personnel obligations and their respective charges recorded in the financial statements. (ii) Represents a provision for expenses already incurred as of the date of the consolidated financial statements and for which payments are made during the following month. (iii) Refers to the Long-Term Incentive (LTI) granted to employees of the Company in the form of phantom shares as described in Note 30. (iv) Represents the recorded amounts regarding maintenance costs of aircraft leased through operating leases and contractually agreed upon commitments for the sale of new aircraft or the expiration of residual financial guarantees. |
Taxes and payroll charges payab
Taxes and payroll charges payable | 12 Months Ended |
Dec. 31, 2019 | |
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Taxes and payroll charges payable | 23 Taxes and payroll charges payable 12.31.2019 12.31.2018 INSS (social security contribution) (i) 52.6 105.2 IPI (manufacturing tax) 4.2 0.3 PIS and COFINS (ii) 3.6 1.6 IRRF (withholding tax) 1.4 11.8 Others 6.5 7.7 68.3 126.6 Current portion 54.9 68.4 Non-current portion 13.4 58.2 The Company is challenging, through both administrative and judicial proceedings, the constitutionality of the tax calculation base and its expansion, as well as the rate increase of certain taxes, social contributions, and charges, with the aim of ensuring its right to withhold payment or recover amounts paid in previous years. By means of such administrative and judicial proceedings, the Company has obtained injunctions and similar measures to suspend payment or offset payment of taxes and social contributions and charges. Provisions have been recorded for taxes not paid, as a result of preliminary legal decisions, and are updated based on the SELIC interest rate, pending a final and definitive decision. In some cases, the Company maintains judicial deposit for the continuity of the judicial proceedings. (i) Corresponds substantially to: • The increase in the work-related accident insurance (“SAT”) rate. The Company is challenging the legality of the levy and absence of technical criteria for such rate since 1995. On September 2019, the law demand was concluded as favorable to the Company, therefore the liability of US$ 46.6 was written off in that period (US$ 47.7 on December 31, 2018). • Additionally, in February 2009, the Company filed a suit contesting the payment of social security on paid notice of dismissal and other indemnity payments. In October 2015 the Company obtained partial success in the dispute in relation to the employer’s portion of the Social Security on the paid notice, and therefore reduced the amount of the provision by US$ 2.5. The partial success was ratified in November 2017. Currently, the remaining amount involved in the dispute in respect of the notice established in the collective agreement is US$ 13.0 on December 31, 2019 (US$ 10.0 on December 31, 2018). • The Company obtained an injunction guaranteeing the right to not collect social security contributions according to the system established by Law 13,670 / 2018 in 2018 (maintenance of the Social Security Contribution on Gross Revenue - CPRB until 12/31/2018). The amount involved in the discussion is US$ 37.3 (ii) Refers to: • Contributions to the PIS/PASEP fund (Social Integration Program / Public Servant Fund). The dispute, involving the calculation base for the non-cumulative With respect to the litigation issues mentioned above, the remaining provisions will be kept until there is a outcome of the demands and no further appeals can be made. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
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Income taxes | 24 Income taxes As the tax basis for the majority of the Company’s assets and liabilities is maintained in reais and the accounting basis is measured in US dollars (functional currency), the fluctuations in the exchange rate significantly impacted the tax basis and, in turn, the deferred income tax expense (benefit). Based on the expectation of future taxable income, the Company recorded deferred tax assets based on tax losses carryforwards. Credits relating to temporary differences on non-deductible 24.1 Deferred income tax and social contribution The components of deferred tax assets and liabilities are as follows: 12.31.2019 12.31.2018 31.12.2017 Temporarily non-deductible 65.2 39.7 (76.1 ) Tax loss carryforwards 0.2 0.5 4.5 Functional currency effect of the non monetary assets (297.4 ) (323.4 ) (206.0 ) Gains not realized from sales of the Company to subsidiairies 23.1 22.7 15.4 Effect of differences by fixed asset (12.0 ) 7.5 (8.1 ) Differences between basis: account x tax (50.7 ) 20.6 25.7 Deferred tax assets (liabilities), net (271.6 ) (232.4 ) (244.6 ) Total deferred tax asset 0.7 21.6 13.4 Total deferred tax liability (272.3 ) (254.0 ) (258.0 ) Changes in deferred income tax that affected profit or loss were as follows: From the statement of income Other comprehensive income Total At December 31, 2016 (292.4 ) 38.8 (253.6 ) Temporarily non-deductible 26.6 — 26.6 Tax loss carryforwards (23.8 ) — (23.8 ) Functional currency effect of the non monetary assets (5.0 ) — (5.0 ) Provision Gain not realized at sales from Controlling company to subsidiairies (1.0 ) — (1.0 ) Effect of differences by fixed asset 23.0 — 23.0 Differences between basis: account x tax (6.9 ) (3.9 ) (10.8 ) At December 31, 2017 (279.5 ) 34.9 (244.6 ) Temporarily non-deductible 115.8 — 115.8 Tax loss carryforwards (4.0 ) — (4.0 ) Functional currency effect of the non monetary assets (117.4 ) — (117.4 ) Gains not realized from sales of Parent Company to subsidiairies 7.3 — 7.3 Effect of differences by fixed asset 15.6 — 15.6 Differences between basis: account x tax 3.9 (9.1 ) (5.2 ) Discontinued operation 8.1 (8.0 ) 0.1 At December 31, 2018 (250.2 ) 17.8 (232.4 ) Temporarily non-deductible 14.3 — 14.3 Tax loss carryforwards 1.1 — 1.1 Functional currency effect of the non monetary assets 16.4 — 16.4 Gains not realized from sales of Parent Company to subsidiairies 0.4 — 0.4 Effect of differences by fixed asset (47.7 ) — (47.7 ) Differences between basis: account x tax (70.3 ) (1.0 ) (71.3 ) Discontinued operation 19.8 27.8 47.6 At December 31, 2019 (316.2 ) 44.6 (271.6 ) 24.2 Reconciliation of income tax expense 12.31.2019 12.31.2018 12.31.2017 Loss before income tax (101.2 ) (282.0 ) (95.1 ) Income tax and social contribution at the nominal Brazilian enacted tax rate - 34% 34.4 95.9 32.3 Tax on profits of overseas subsidiaries (72.3 ) (33.2 ) (9.8 ) Functional currency effect of the non monetary assets 16.4 (117.4 ) (5.0 ) Research and development tax incentives 23.0 27.1 42.8 Interest on own capital — 3.0 16.9 Fiscal credits (recognized and non recognized) 0.2 (8.5 ) 9.1 Tax rate diference (5.3 ) 26.8 3.0 Other difference between IFRS and fiscal basis* (99.9 ) 27.0 (117.5 ) (137.9 ) (75.2 ) (60.5 ) Income tax and social contribution income (expense) benefit as reported (103.5 ) 20.7 (28.2 ) Current income tax and social contribution expense as reported (37.5 ) (8.6 ) (41.1 ) Deferred income tax and social contribution income (expense) benefit as reported (66.0 ) 29.3 12.9 * Others and differences between accounting and fiscal basis mainly refer to: permanent additions and exclusions, realization of foreign exchange gain or loss, transfer pricing adjustments and differences between accounting basis and fiscal treatments in the income tax calculation (depreciation of fixed assets, provision for inventory losses, among others). 24.3 Uncertainty over income tax treatments The Company and its subsidiaries held certain discussions with Brazilian tax authorities over administrative and judicial matters related to uncertain treatments adopted when calculating income tax and social contribution on net income, whose prognostic assessment was that the opted tax positions will probably be accepted by the authorities, based on internal and external evaluation by legal advisors. A summary of these processes, related contingent liabilities and their potential effects is presented in Note 26.2. |
Financial Guarantees and Residu
Financial Guarantees and Residual Value Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
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Financial Guarantees and Residual Value Guarantees | 25 Financial guarantees and residual value guarantees 12.31.2019 12.31.2018 Financial guarantee of residual value — 125.4 Accounts payable (i) — 15.1 Financial guarantee — 11.6 — 152.1 Current portion — 51.0 Non-current — 101.1 The movement on the financial guarantees and residual guarantees is shown below: Financial guarantee Financial guarantee of residual value Accounts payable Total At December 31, 2016 22.7 122.2 65.9 210.8 Additions 1.2 — 3.7 4.9 Interest Additions — — 2.0 2.0 Disposals — — (40.8 ) (40.8 ) Market value — (13.3 ) — (13.3 ) Guarantee amortization (6.8 ) — — (6.8 ) At December 31, 2017 17.1 108.9 30.8 156.8 Interest Additions — — 1.5 1.5 Disposals — — (17.2 ) (17.2 ) Market value — 16.5 — 16.5 Guarantee amortization (5.5 ) — — (5.5 ) At December 31, 2018 11.6 125.4 15.1 152.1 Interest Additions — — 0.6 0.6 Disposals — — (15.7 ) (15.7 ) Market value — 4.2 — 4.2 Guarantee amortization (0.9 ) — — (0.9 ) Liabilities held for sale (10.7 ) (129.6 ) — (140.3 ) At December 31, 2019 — — — — All financial guarantees and residual value guarantees granted by the Company refer to the Commercial Aviation and comprise the disposal group (liabilities held for sale) in the statement of financial position and discontinued operation in the statement of income for the year ended December 31, 2019. See Note 4. |
Provisions and contingent liabi
Provisions and contingent liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provisions and contingent liabilities | 26 Provisions and contingent liabilities 26.1 Provisions 12.31.2019 12.31.2018 Product warranties (i) 67.1 98.0 Provisions for labor, taxes and civil (ii) 66.4 58.4 Taxes 41.7 31.4 Post retirement benefits 11.7 31.7 Environmental provision 0.3 2.4 Other 15.7 20.5 202.9 242.4 Current portion 103.1 116.9 Non-current 99.8 125.5 (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 26.1.1. Change in provision: Product warranties Provisions civil Post retirement Taxes Voluntary Environment Other Total At December 31, 2016 94.1 93.1 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 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 Additions 54.2 23.8 — 63.9 — 2.3 — 144.2 Interest — 5.2 2.2 — — — — 7.4 Used/payments (29.7 ) (7.1 ) — (54.0 ) — (1.7 ) (0.4 ) (92.9 ) Reversals (43.2 ) (10.6 ) (1.8 ) — — — — (55.6 ) Translation adjustments (0.2 ) (1.9 ) (0.7 ) 0.4 — (0.1 ) (0.6 ) (3.1 ) Liabilities held for sale (12.0 ) (1.4 ) (19.7 ) — — (2.6 ) (3.8 ) (39.5 ) At December 31, 2019 67.1 66.4 11.7 41.7 — 0.3 15.7 202.9 26. 1.1 Labor, tax and civil provisions 12.31.2019 12.31.2018 Tax related IRPJ (i) 13.6 9.2 PIS and COFINS 5.3 5.3 Social security contributions (ii) 2.4 2.4 Import taxes (iii) 0.8 0.8 FUNDAF — 0.1 Others — 0.2 22.1 18.0 Labor related Plurimas 461/1379 (iv) 9.6 10.0 Reintegration (v) 6.0 7.0 Overtime (vi) 7.6 6.0 Dangerousness (vii) 1.4 1.0 Indemnity (viii) 4.9 3.1 Third parties 1.5 0.5 Others 12.9 12.4 43.9 40.0 Civil related Indemnity (ix) 0.4 0.4 0.4 0.4 66.4 58.4 Current portion 21.4 20.7 Non-current portion 45.0 37.7 (i) The Company has obtained an 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) Requests for payment of alleged differences in relation to overtime. (vii) Requests that seek recognition of hazardous activity. (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. The tax, labor and civil provisions are recorded in accordance with the Company’s accounting policy and the amounts shown here represent the estimated amounts that the Company’s legal department and its external counsel expect the Company to have to disburse to settle the lawsuits. 26.2 Contingent liabilities Contingent liabilities are amounts classified as possible losses, in accordance with the Company’s accounting policy, in the opinion of the Company’s legal department, supported by its external counsel. When the contingent liability arises from the same set of circumstances as an existing provision, the type of the corresponding provision is indicated at the end of the description. The Company’s main contingent liabilities are listed below: • The Company has a legal discussion related to the ISSQN rate in the amount of US$ 60.0 on December 31, 2019 (US$ 55.9 on December 31, 2018). • The Company has a legal dispute over AIIM on SAT / Agentes Nocivos • The Company has a dispute about the transfer price calculation from the year 2009 in the amount of US$ 9.0 on December 30, 2019 (US$ 8.4 on December 31, 2018). • The Company is involved in a legal dispute related to tax credits paid by its subsidiaries abroad amounting to US$ 99.6 on December 31, 2019 (US$ 119.6 on December 31, 2018). • The Company has a dispute on the 2007 Tax Assessment Notice regarding the validity of the provisions contained in the Normative Instruction No. 213/02, which determined the taxation of profits from abroad through the application of Brazilian rules. The dispute involves transfer pricing in loans between associates, equity method, among others. On September 1, 2010, decadence had been accepted to exclude the requirements of the first three quarters of 2002, and it was determined to carry out diligence to collect information requested by the National Treasury Attorney ( Procuradoria da Fazenda Nacional • The Company has a discussion on the disallowance of credits launched in several PERDCOMPs (electronic request for reimbursement or refund and tax offset statement program in Brazil) in the amount of US$ 51.0 on December 31, 2019 (US$ 37.5 on December 31, 2018). • Other tax lawsuits in the amount of US$ 0.6 as of December 31, 2019 (US$ 0.6 as of December 31, 2018). • The Company has contingent liabilities amounting to US$ 20.9 on December 31, 2019 related to several labor claims (US$ 36.4 on December 31, 2018). 26.3 SEC/DOJ and Brazilian public prosecutor’s investigations In October 2016, the Company entered into definitive agreements with the United States and Brazilian authorities for the resolution of criminal and civil violations of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or FCPA and for the resolution of violations of certain Brazilian laws. Under the final agreements with the DOJ (U.S. Department of Justice) and the SEC (U.S. Securities and Exchange Commission): • The Company agreed to pay approximately US$ 98.2 to the SEC (of which US$20.0 million or R$64.0 million was due to the Brazilian Securities and Exchange Commission (CVM or Comissão de Valores Mobiliários Ministério Público Federal Termo de Compromisso e de Ajustamento de Conduta • The Company agreed to pay approximately US$ 107.3 to the DOJ, as penalty for one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA (U.S. Foreign Corrupt Practices Act) and one count of violating the internal controls provisions of the FCPA. • In a deferred prosecution agreement (DPA), the DOJ agreed to defer prosecution of the charges for three years, after which period the charges will be dismissed if the Company complied with the terms of the DPA. • The Company agreed with the DOJ and the SEC to retain an external and independent anti-corruption monitorship for a period of approximately three years. In February 2020, the Company agreed to extend the term of the external and independent monitorship for an additional 90 days in order to allow the monitor to complete his work. • On April 13, 2020, the monitor delivered his final report to the DOJ and to the SEC, finding that Embraer’s compliance program is reasonably designed and implemented to detect and prevent violations of the anti-corruption laws. On May 22, 2020, the monitorship term expired. Under both the DPA and the SEC Consent, there remain certain additional steps that the Company must take to complete the requirements of the DPA and the SEC Consent. The Final Agreements and the TCAC represent the conclusion of the internal investigation of allegations of noncompliance with the FCPA and certain Brazilian laws in four aircraft sales outside Brazil between 2007 and 2011. Related proceedings and developments are ongoing and could result in additional fines and possibly other sanctions and adverse consequences, which may be substantial. The Company believes that there is no adequate basis at this time for estimating accruals or quantifying any contingency with respect to these matters. The Company will continue to cooperate with governmental authorities, as circumstances may require. In this regard, on February 23, 2017 the Company entered into an Exoneratory Agreement with the Mozambican authorities for collaboration with the investigations in that country and under which there are no financial obligations for Embraer. In July 2018, the Company entered into a collaboration agreement with the Attorney General’s Office of the Dominican Republic in exchange for our cooperation with ongoing investigations in that country and paid US$ 7.0 to the Dominican Republic. |
Post-retirement benefits
Post-retirement benefits | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Post-retirement benefits | 27 Post-retirement benefits 12.31.2019 12.31.2018 Medical benefits plan Brazil 9.0 27.9 Medical benefits plan subsidiaries abroad 2.7 3.8 Post-retirement benefits 11.7 31.7 As of December 31, 2019, provision of US$ 19.7 associated with post-retirement healthcare benefits provided by the Company mainly in Brazil was reclassified to liabilities held for sale related to the Commercial Aviation business unit (Note 4). 27.1 Post-retirement healthcare benefits provided by the Company in Brazil The Company provided healthcare plan for employees, which based on its conditions, is classified as a post-employment benefit. Under this healthcare plan, employees who retire from the Company have the option of remaining in the plan, contributing the full amount charged by the insurance company. However, due to certain rules for increases under Brazilian law, there could be times the contribution made by the retired employees is insufficient to cover the medical plan costs, which would represent exposure for the Company. 27.2 Post-retirement healthcare benefits provided by subsidiaries abroad Embraer Aircraft Holding sponsors a post-retirement healthcare plan for employees hired up to 2007. The expected costs of pension and provision of post-employment medical benefit for the individual employees and their dependents are provided on an accrual basis based on actuarial studies and the calculation is reviewed annually. 27.3 Defined contribution pension plan The Company and certain subsidiaries sponsor a defined contribution pension plan for their employees, participation in which is optional. The Company’s contributions to the plan for the years ended December 31, 2019 and 2018 were US$ 19.0 and US$ 14.1, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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Financial Instruments | 28 Financial Instruments 28.1 Financial instruments by category 12.31.2019 Note Amortized cost Fair value through profit or loss Total Assets Cash and cash equivalents 6 855.2 — 855.2 Financial investments 7 — 424.7 424.7 Guarantee Deposits 11 0.6 — 0.6 Collateralized accounts receivable 10 17.6 — 17.6 Contract assets 461.9 — 461.9 Trade accounts receivable, net 8 149.4 — 149.4 Derivative financial instruments 9 — 2.1 2.1 Other Assets 34.5 — 34.5 1,519.2 426.8 1,946.0 Liabilities Loans and financing 21 91.0 — 91.0 Trade accounts payable and others liabilities 550.8 — 550.8 Lease liability 38.6 — 38.6 Derivative financial instruments 9 — 4.5 4.5 680.4 4.5 684.9 12.31.2018 Note Amortized Fair value through other comprehensive income Fair value through profit or loss Total Assets Cash and cash equivalents 6 1,280.9 — — 1,280.9 Financial investments 7 48.8 507.8 1,370.3 1,926.9 Guarantee Deposits 11 349.7 — — 349.7 Collateralized accounts receivable 10 235.9 — — 235.9 Contract assets 358.0 — — 358.0 Trade accounts receivable, net 8 318.0 — — 318.0 Customer and commercial financing 11.7 — — 11.7 Derivative financial instruments 9 — — 9.5 9.5 Other Assets 66.2 — — 66.2 2,669.2 507.8 1,379.8 4,556.8 Liabilities Loans and financing 21 3,647.7 — — 3,647.7 Trade accounts payable and others liabilities 1,550.5 — — 1,550.5 Financial guarantee and residual value 25 15.0 — 125.4 140.4 Derivative financial instruments 9 — — 8.1 8.1 5,213.2 — 133.5 5,346.7 28.2 Fair value of financial instruments The fair value of the Company’s financial assets and liabilities was determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to generate estimates of fair values. Consequently, the estimates presented below are not necessarily indicative of the amounts that might be realized in current market exchange. The use of different assumptions and/or methodologies could have a material effect on the estimated realizable values. The following methods were used to estimate the fair value of each category of financial instrument for which it is possible to estimate the fair value. The carrying amounts of cash, financial investments, accounts receivable, other financial assets and current liabilities are approximately their fair values. The methods below were used to estimate the fair value of other class of financial instruments for which fair value is adopted. Financial investments – The fair value of securities measured at amortized cost is estimated by the discounted cash flow methodology. For investments in corporate bonds, the unit price on the last trading day at the end of the reporting period is multiplied by the amount invested. Loans and financing – The fair value of bonds is the unit price on the last trading day at the end of the reporting period multiplied by the quantity issued. For other loans and financing, fair value is based on the amount of contractual cash flows and the discount rate used is based on the rate for contracting of a new transaction in similar conditions or in the lack thereof, on the future curve for the flow of each obligation. The Company considers “fair value” to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observable inputs. The three Levels of the fair value hierarchy are as follows: • Level 1 • Level 2 non-exchange over-the-counter • Level 3 The following table lists the Company’s financial assets and liabilities by level within the fair value hierarchy. The Company’s assessment of the significance of an 12.31.2019 Fair value through profit or loss Other categories Note Level 2 Level 3 Total of financial instruments Fair value Book value Assets Cash and cash equivalents 6 — — — 855.2 855.2 855.2 Financial investments 7 364.1 60.6 424.7 — 424.7 424.7 Guarantee deposits 11 — — — 0.6 0.6 0.6 Collateralized accounts receivable 10 — — — 17.6 17.6 17.6 Contract assets — — — 461.9 461.9 461.9 Trade accounts receivable, net 8 — — — 149.4 149.4 149.4 Derivative financial instruments 9 2.1 — 2.1 — 2.1 2.1 Other assets — — — 34.5 34.5 34.5 366.2 60.6 426.8 1,519.2 1,946.0 1,946.0 Liabilities Loans and financing 21 — — — 91.0 85.1 91.0 Trade accounts payable and others liabilities — — — 550.8 550.8 550.8 Lease liability 17 — — — 38.6 38.6 38.6 Derivative financial instruments 9 4.5 — 4.5 — 4.5 4.5 4.5 — 4.5 680.4 679.0 684.9 12.31.2018 Fair value through profit or loss Other categories Note Level 2 Level 3 Total of financial instruments Fair value Book value Assets Cash and cash equivalents 6 — — — 1,280.9 1,280.9 1,280.9 Financial investments 7 1,818.2 59.9 1,878.1 48.8 1,926.1 1,926.9 Guarantee deposits 11 — — — 349.7 349.7 349.7 Collateralized accounts receivable 10 — — — 235.9 235.9 235.9 Contract assets — — — 358.0 358.0 358.0 Trade accounts receivable, net 8 — — — 318.0 318.0 318.0 Customer and commercial financing — — — 11.7 11.7 11.7 Derivative financial instruments 9 9.5 — 9.5 — 9.5 9.5 Other assets — — — 66.2 66.2 66.2 1,827.7 59.9 1,887.6 2,669.2 4,556.0 4,556.8 Liabilities Loans and financing 21 — — — 3,647.7 3,756.8 3,647.7 Trade accounts payable and others liabilities — — — 1,550.5 1,550.5 1,550.5 Financial guarantee and of residual value 25 — 125.4 125.4 15.0 140.4 140.4 Derivative financial instruments 9 8.1 — 8.1 — 8.1 8.1 8.1 125.4 133.5 5,213.2 5,455.8 5,346.7 Fair value of financial instruments using significant unobservable inputs (level 3) Assets Liabilities At December 31, 2017 59.6 108.9 Changes in fair value 0.3 16.5 At December 31, 2018 59.9 125.4 Changes in fair value 0.7 4.2 Reclassification to held for sale — (129.6 ) At December 31, 2019 60.6 — Changes in Level 3 financial instruments are recognized in the consolidated statements of income under the caption of financial income (expense), net. 28.3 Financial risk management policy The Company has and follows a risk management policy, which involves the diversification of transactions and counterparties, with the objective of identifying the risks related to the financial transactions, as well as the operational directives related to these financial transactions. The policy provides for regular monitoring and management of the nature and general situation of the financial risks in order to assess the results and the financial impact on cash flows. The credit limits and risk rating of the counterparties are also reviewed periodically. The Company’s risk management policy is part of the financial management policy established by the Executive Directors and approved by the Board of Directors and provides for monitoring by a Financial Management Committee. Under this policy, the market risks are mitigated when there are no offsetting elements in the Company’s operations and when it is considered necessary to support the corporate strategy. The Company’s internal control procedures provide for consolidated monitoring and supervision of the financial results and of the impact on cash flows. The Financial Management Committee assists the Financial Department in examining and reviewing information in relation to the economic scenario and its potential impact on the Company’s operations, including significant risk management policies, procedures, and practices. The financial risk management policy includes the use of derivative financial instruments to mitigate the effects of interest rate fluctuations and to reduce the exposure to exchange rate risk. The use of these instruments for speculative purposes is forbidden. 28.3.1 Capital management The Company uses capital management to ensure the continuity of its investment program and offer a return to its shareholders and benefits to its stakeholders and to maintain an optimized capital structure in order to reduce costs. The Company may review its dividends payment policy, payback capital to the shareholders, issue new shares or sell assets in order to maintain or adjust its capital structure (to reduce indebtedness, for instance). Liquidity and the leverage level are constantly monitored in order to mitigate refinancing risk and to maximize the return to the shareholders. The ratio between the liquidity and the return to the shareholders may be changed pursuant to the assessment of the Board of Directors. The Company’s capital management may be modified to adjust to changes in the economic scenario or strategic repositioning of the Company. As of December 31, 2019, the cash and cash equivalents and financial investments was lower than the financial indebtedness of the Company (net debt) by US$ 612.4 (US$ 439.9 as of December 31, 2018). Deducting the net debt of US$ 1,801.3 allocated in the disposal group as of December 31, 2019 (Note 4.2), the cash and cash equivalents and financial investments would be higher than the financial indebtedness of the Company by US$ 1,188.9. Of the total financial indebtedness as of December 31, 2019, 16.35% was short-term (4.9% as of December 31, 2018) and the average weighted term was equivalent to 10.04 years on December 31, 2019 (5.5 years as of December 31, 2018). 28.3.2 Credit risk Credit risk is the risk of a counterparty to a transaction not meeting an obligation established in a financial instrument, or in the negotiation of sales to customers, leading to a financial loss. The Company is exposed to credit risk in its operational activities, cash held in banks and other investments in financial instruments held in financial institutions. • Cash and cash equivalents and financial investments The credit risk of cash and cash equivalents and financial investments which is managed by the Financial Department is in accordance with the risk management policy. The credit limit of counterparties is reviewed on a daily basis in order to not to exceed the limits established mitigating possible losses generated by the bankruptcy of a counterparty, as well as transactions are carried out with counterparties with investment Fitch Moody’s Standard and Poor’s As of December 31, 2019, and 2018, all financial investments measured at amortized cost, at fair value through other comprehensive income and at fair value through profit or loss are considered as low credit risk and are in compliance . The result from the expected credit loss model set forth in IFRS 9 for balances of cash and cash equivalents and financial investments was immaterial. • Trade accounts receivable and contract assets with customers The Company may incur losses on amounts receivable from sales of spare parts and services to customers. To reduce the risk, Management performs an internal credit risk analysis which considers qualitative factors, such as past experiences, and quantitative factors, when applicable, related to external financial information. If the risk increases and/ or the customer present overdue amounts, the supply of spare parts and services can be stopped by the Company, which impacts its fleet operations. The Company applies IFRS 9 simplified approach to the measurement of expected credit losses on trade accounts receivable balances (Note 8). In order to calculate the expected credit losses, receivables are grouped by the period the items are outstanding, and an expected loss factor is applied based on actual credit loss experiences of each past period, which gradually increases as long as the receivable remains outstanding in portfolio. For receivables not overdue, the expected credit loss is calculated using past 10 years’ experience of losses and monitoring of forward trends. As of December 31, 2019, the initial expected loss factor under the methodology is 1.4%. Contract assets refer to contracts in progress that have not been billed, mainly related to development contracts recognized over time in the Defense & Security segment. The credit risk characteristic of the Company’s customers is different for the Defense & Security segment, since the counterparties refer only to government entities and agencies. The risk in this case is associated with the sovereign risk of each country, especially Brazil, as well as with the continuity of strategic projects under development, for which the Company usually has the enforceable right to receive for the performance completed to date. The Company historically has not presented losses in the trade accounts receivable and contract assets balances with these counterparties. Trade accounts receivable and contract assets are written off when there is no reasonable expectation of recovery. Indications include, among others, the inability of the debtor to participate in a plan to renegotiate its debt or possible legal actions have been exhausted. • Other financial assets Other financial assets measured as at amortized cost includes guarantee deposits, collateralized accounts receivable, customer financing, court-mandated escrow deposits and loan with joint operation. The result of the expected credit losses model set forth in IFRS 9 for other financial assets was immaterial. Also, the Company has guarantees, such as guarantee deposits in financial institutions rated as investment grade, pledge assets or other contractual guarantees, which also mitigates the risk of financial loss in these assets. 28.3.3 Liquidity risk This is the risk of the Company not having enough funds to honor its financial commitments as a result of a mismatch of terms or volumes of estimated receipts and payments. Projections and assumptions are established to manage the liquidity of cash in U.S. dollars and Reais, in accordance with the financial management policy, based on contracts for future disbursements and receipts, and monitored periodically by the Company. Accordingly, possible mismatches are detected well in advance allowing the Company to adopt mitigation measures to reduce risks and financial cost. The following table provides additional information related to undiscounted contractual obligations and commercial commitments and their respective maturities: Less than one One to three Three to five More than Cash Flow year years years five years At December 31, 2019 Loans and financing 148.5 45.8 58.5 10.5 33.7 Trade accounts payable 358.0 358.0 — — — Recourse and non recourse debt 17.6 4.0 7.9 4.4 1.3 Financial guarantees — — — — — Other liabilities 128.1 3.2 52.8 70.4 1.7 Capital lease 38.5 7.4 12.1 5.0 14.0 Total 690.7 418.4 131.3 90.3 50.7 At December 31, 2018 Loans and financing 4,701.3 321.0 867.3 1,345.7 2,167.3 Trade accounts payable 892.1 892.1 — — — Recourse and non recourse debt 341.4 324.0 7.6 6.6 3.2 Financial guarantees 152.1 51.0 39.9 31.3 29.9 Other liabilities 227.3 5.4 92.2 95.3 34.4 Total 6,314.2 1,593.5 1,007.0 1,478.9 2,234.8 The table above shows the outstanding principal and interest if applicable at the maturity dates. In the case of the fixed rate liabilities, interest expense was calculated based on the rate established in each debt contract. Interest expense on floating rate liabilities was calculated based on a market forecast for each period (e.g. LIBOR 6m - 12m). 28.3.4 Market risk a) Interest rate risk This risk arises from the possibility of the Company incurring losses on the fluctuation of floating interest rates, which might increase financial expenses of financial liabilities, and/ or decrease financial income of financial assets, as well as negatively impacting the fair value of financial assets measured as at fair value. The lines of the consolidated financial statements most affected by interest rate risks are: • Cash, cash equivalents and financial investments – the Company’s policy for managing the risk of fluctuations in interest rates on financial investments is to maintain a system to measure market risk, which • Loans and financing – the Company monitors financial markets with the purpose of evaluate hedge structures (derivative transactions) in compliance with the financial and risk management policy to protect its exposure risks of volatility in foreign currency and interest rates. At December 31, 2019, the Company’s cash, cash equivalents, financial investments and loans and financing were indexed as follows: Without derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 1,149.6 89.81 % 130.4 10.19 % 1,280.0 100.00 % Loans and financing 42.4 46.59 % 48.6 53.41 % 91.0 100.00 % With derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 1,149.6 89.81 % 130.4 10.19 % 1,280.0 100.00 % Loans and financing 2.2 2.42 % 88.8 97.58 % 91.0 100.00 % At December 31, 2019, the Company’s cash equivalents and post -fixed financing were indexed as follows: Without derivative effect With derivative effect Amount % Amount % Cash equivalents and financial investments 64.9 100.00 % 64.9 100.00 % CDI 64.9 100.00 % 64.9 100.00 % Libor — 0.00 % — 0.00 % Loans and financing 48.6 100.00 % 88.8 100.00 % TJLP 0.7 1.44 % 0.7 0.79 % Libor 19.8 40.74 % 17.6 19.82 % CDI — 0.00 % 42.4 47.75 % SIFMA 28.1 57.82 % 28.1 31.64 % b) Foreign exchange rate risk Consequently, the Company’s operations most exposed to foreign exchange gains/losses are those denominated in Reais (labor costs, tax issues, local expenses, financial investments and loans and financing) as well as investments in subsidiaries in currencies other than the US dollar. Company policy for protection against foreign exchange risks on assets and liabilities is mainly based on seeking to maintain a balance between assets and liabilities indexed in each currency and management of foreign currency purchases and sales to ensure that, on realization of the transactions contracted, this natural hedge will occur. This policy minimizes the effect of exchange rate changes on assets and liabilities already contracted, but do not protect against the risk of fluctuations in future results due to appreciation or depreciation of the real that can, when measured in dollars, result in an increase or reduction in the portion of costs denominated in reais. Under certain market conditions, the Company may protect itself against potential future mismatches of expenses and revenues denominated in foreign currency, to minimize the effects of future exchange variations on the Company’s consolidated statements of income. Efforts to minimize the foreign exchange risk for rights and liabilities denominated in currencies other than the functional currency may involve transactions with derivatives, such as swaps, exchange options and Non-Deliverable At December 31, 2019, the Company had the following amounts of financial assets and liabilities denominated in several currencies: Consolidated 12.31.2019 12.31.2018 Loans and financing Brazilian reais 43.1 286.5 U.S. dollars 47.9 3,341.6 Euro — 19.6 91.0 3,647.7 Trade accounts payable Brazilian reais 73.3 77.1 U.S. dollars 248.0 715.6 Euro 35.3 27.2 Other currencies 1.4 72.2 358.0 892.1 Total (1) 449.0 4,539.8 Cash and cash equivalents and financial investments Brazilian reais 128.7 406.5 U.S. dollars 1,044.0 2,746.8 Euro 105.7 47.7 Other currencies 1.5 6.8 1,279.9 3,207.8 Trade accounts receivable: Brazilian reais 6.3 10.7 U.S. dollars 120.0 274.2 Euro 23.1 33.1 Other currencies — — 149.4 318.0 Total (2) 1,429.3 3,525.8 Net exposure (1 - 2): Brazilian reais (18.6 ) (53.6 ) U.S. dollars (868.1 ) 1,036.2 Euro (93.5 ) (34.0 ) Other currencies (0.1 ) 65.4 The Company has other financial assets and liabilities that are also influenced by foreign exchange variations that are not included in the table above. These are used to minimize exposure in the currencies presented. 28.4 Sensitivity analysis In order to present positive and negative variations of 25% and 50% in the risk variable considered, a sensitivity analysis of the financial instruments, including derivatives, is presented below describing the effects on the monetary and foreign exchange variations on the financial income and expense, as well as in the consolidated shareholders’ equity, determined on the balances recorded at December 31, 2019, in the event of such variations in the risk component. However, statistical simplifications were made in isolating the variability of the risk factors in question. Consequently, the following estimates do not necessarily represent the amounts that might be determined in future consolidated financial statements. The use of different hypotheses and/or methodologies could have a material effect on the estimates presented below. 28.4.1 Methodology Assuming that the balances remain constant, the Company calculates the interest and exchange variation differential for each of the projected scenarios. Evaluation of the amounts exposed to interest rate risk considers only the risks for the financial statement. Operations subject to prefixed interest rates were not included. The probable scenario is based on the possible change for each of the variables indicated, and positive and negative variations of 25% and 50% were applied to the rates in force as of the reporting date. In the sensitivity analysis of derivative contracts, positive and negative variations of 25% and 50% were applied to the market yield curve (B3) as of the reporting date. 28.4.2 Interest risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Cash equivalents and financial investments CDI 64.9 (1.5 ) (0.8 ) (0.1 ) 0.6 1.3 Net impact CDI 64.9 (1.5 ) (0.8 ) (0.1 ) 0.6 1.3 Loans and financing LIBOR (19.8 ) 0.2 0.1 — (0.1 ) (0.1 ) Net impact LIBOR (19.8 ) 0.2 0.1 — (0.1 ) (0.1 ) Loans and financing TJLP (0.7 ) — — — — — Net impact TJLP (0.7 ) — — — — — Rates considered CDI 4.40 % 2.15 % 3.23 % 4.30 % 5.38 % 6.45 % Rates considered LIBOR 1.93 % 0.89 % 1.34 % 1.79 % 2.24 % 2.68 % Rates considered TJLP 5.95 % 2.79 % 4.18 % 5.57 % 6.96 % 8.36 % (*) The positive and negative variations of 25% and 50% were applied on the rates in effect at 12.31.2019 28.4.3 Foreign exchange risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Assets 39.7 19.8 9.9 (0.1 ) (10.0 ) (20.1 ) Cash, cash equivalents and financial R$ 128.7 64.2 32.0 (0.3 ) (32.5 ) (64.9 ) Other assets R$ (89.0 ) (44.4 ) (22.1 ) 0.2 22.5 44.8 Liabilities (34.3 ) (17.1 ) (8.5 ) 0.1 8.7 17.3 Loans and financing R$ (43.1 ) (21.5 ) (10.7 ) 0.1 10.9 21.7 Other liabilities R$ 8.8 4.4 2.2 — (2.2 ) (4.4 ) Net impact 74.0 2.7 1.4 — (1.3 ) (2.8 ) Exchange rate considered 4.0307 2.0200 3.0300 4.0400 5.0500 6.0600 (*) The positive and negative variations of 25% and 50% were applied on the rates 28.4.4 Derivative contracts Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable scenario +25% +50% Derivative Designated as Hedge Accounting Interest swap - fair value hedge CDI 1.5 0.6 0.3 — (0.3 ) (0.6 ) Hedge destinated as cash flow US$/R$ (0.1 ) 65.5 24.9 (2.5 ) (37.6 ) (81.6 ) Other derivatives CDI (0.1 ) (0.1 ) — — — — Hedge desifnated as cash flow LIBOR Other derivatives Interest swap LIBOR (0.1 ) (0.1 ) — — — — Foreign Exchange option EUR/US$ 0.3 (2.3 ) (1.3 ) (0.3 ) 0.8 1.8 US$/R$ (4.0 ) 79.8 39.7 (0.4 ) (40.5 ) (80.6 ) Total (2.5 ) 143.4 63.6 (3.2 ) (77.6 ) (161.0 ) Rate considered LIBOR 1.93 % 0.89 % 1.34 % 1.79 % 2.24 % 2.68 % Rate considered CDI 4.40 % 2.15 % 3.23 % 4.30 % 5.38 % 6.45 % Rate considered US$/R$ 4.031 2.020 3.030 4.040 5.050 6.060 Rate considered LIBOR 1.121 0.560 0.840 1.120 1.400 1.680 (*) The positive and negative variations of 25% and 50% were applied on the rates |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Shareholders' equity | 29 Shareholders’ equity 29. 1 Capital The authorized capital is divided into 1,000,000,000 common shares. The Company’s subscribed and paid up capital as of December 31, 2019 was US$ 1,551.6 and was comprised of 740,465,044 common shares, without par value, of which 4,385,218 shares were held in treasury. The capital is comprised entirely of common shares. As per Article 14 of the Company’s bylaws, each common share generally empowered with one vote at general shareholders’ meeting, considering that no shareholder or group of shareholders, may exercise votes representing more than 5% of the quantity of share into which our capital stock is divided. Votes that exceed this 5% threshold will not be considered. 29.2 Brazilian Federal Government Golden Share The Federal Government holds one golden share 29.3 Treasury Shares Common shares acquired with resources from the investments and working capital reserve. This operation occurred in accordance with rules approved by the Statutory Board of Directors in a meeting held on December 7, 2007 and corresponds to 4,385,218 common shares and US$ 26.5 as of December 31, 2019. These shares lose voting and economic rights during the period in which they are held in Treasury. The movement is shown below: USD Quantity Share value Net income of uses At the beginning 31.4 4,977,698 6.3 — Used for stock options plan (i) (4.9 ) (592,480 ) 8.3 2.7 At December 31, 2019 26.5 4,385,218 6.0 2.7 (i) The beneficiaries of the shares used in the share-based compensation plan include the Statutory Board of Directors, Executive Directors and certain employees. Refer to Note 30. At December 31, 2019, the market value of the shares held in Treasury was US$ 21.4 (December 31, 2018 - US$ 27.5). 29.4 Investment subsidy reserve This reserve was formed as allowed by article 195-A These subsidies are not included in the calculation of the minimum mandatory dividends. 29.5 Legal reserve The statutory reserve is a revenue reserve recorded annually as an appropriation of 5% of the net income for the year. The reserve may not exceed 20% of capital, or 30% of capital and capital reserves. The reserve limit was not exceeded as of December 31, 2019 and 2018. 29.6 Investment and working capital reserve The purpose of this revenue reserve is to shield funds which might otherwise be subject to distribution and are earmarked for: (i) investments in property, plant and equipment, without detriment to retained earnings, pursuant to art. 196 of Law 6.404/76; (ii) the Company’s working capital (iii) redeem, reimburse or purchase shares of the Company and (iv) be distributed to the shareholders. 29.7 Interest on own capital and dividends Under the Company’s bylaws, shareholders are entitled to dividends or interest on own capital equivalent to 25% of net income for the year, adjusted in accordance with the bylaws. The calculation takes into account the interest on own capital net of withholding tax. Proposed distributions of dividends to shareholders are recorded as a liability in the consolidated financial statements at the end of the year. Any amount over and above the minimum mandatory dividend is recognized in a specific account as additional dividends proposed in the revenue reserve in consolidated shareholders’ equity, until it is approved by the shareholders, at which point the reserve is reversed against a liability in the consolidated financial statements. Interest on own capital paid or provisioned is recorded as a financial expense for tax purposes. However, for purposes of these consolidated financial statements, the amount is recorded as dividend distribution of net income for the year, and the gross amount is reclassified to consolidated shareholders’ equity. The Company did not distribute dividends and interest on equity during the financial year 2019. 29.8 Other Comprehensive Income Consists of the following adjustments: • Cumulative translation adjustment: foreign exchange gains/losses resulting from translation of the consolidated financial statements in the functional currency to the presentation currency (Real) and foreign exchange gains/losses resulting from translation of the foreign subsidiaries’ financial statements measured in other functional currencies to the Company’s functional currency (dollar); and • Other comprehensive income: unrealized actuarial gains (losses) resulting from the healthcare plans sponsored by the Company and the fair value variation of financial instruments available for sale. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Share-based compensation | 30 Share-based compensation In February 2014, the Board of Directors approved the revision of the Executive Remuneration Policy (ERP), applicable to all executive officers and other Company executives. The elements of executive compensation include the Long Term Incentives (LTI), the main objectives of which are to (i) maintain and attract highly qualified personnel for the Company, (ii) assure those who are able to contribute to improving the Company’s performance of the right to participate in the results of their contribution, and (iii) also to ensure the continuity of the Company’s management by aligning the interests of executives with those of shareholders. The Company currently has two LTI modes: stock options and virtual shares. 30.1 Stock options Program for the granting of stock options, for the executives of the Company or its subsidiaries, who may exercise their right, is as follows: I) 33% after 3 years, II) 33% after 4 years and III) 34% after 5 years, all in relation to the grant date of each option. The exercise price of each option is set on the grant date at the weighted average stock option price of the last sixty trading days and may be adjusted by up to 30% to offset any speculation. The participant will have a maximum exercise period of seven years, starting from the grant date. The grants awarded are summarized below: 12.31.2019 in thousands of options Grants Exercised Canceled (i) Outstanding Exercible Grants on January 23, 2012 4,860,000 (3,850,900 ) (1,009,100 ) — 11.5 Grants on March 20, 2013 4,494,000 (2,882,882 ) (1,315,910 ) 295,208 15.7 At December 31, 2019 9,354,000 (6,733,782 ) (2,325,010 ) 295,208 27.2 (i) The cancellations refer to shares granted to executives or employees who no longer work for the Company. Additionally, on April 16, 2014, there was a cancellation of the grants awarded to members of the Board of Directors, with payment of compensation to plan participants. 30.2 Phantom shares plan The plan is based on the granting of virtual shares to directors and managers and the main objective is to attract and keep highly qualified staff in the Company and its subsidiaries to ensure continuity of management and align the interests of directors and key personnel of the Company and controlled entities to those of the Company’s shareholders. The value of the long-term incentives (“LTI”) will be converted at the average price of the Company’s shares in the last 30 trading days by determining the quantity of virtual shares allocated to each participant, divided into two classes, with 50% in the form of restricted virtual shares and 50% in the form of virtual performance shares. The Company will pay the LTI by converting the quantity of virtual shares into reais at the average quoted price (weighted by trading volume) of the Company’s shares in the last 10 trading days, as follows: • restricted virtual shares: (i) 33% on the third anniversary of the grant date; (ii) 33% on the fourth anniversary of the grant date, and (iii) 34% on the fifth anniversary of the grant date; and • A change in the virtual performance share calculation was approved in August 2017. Virtual performance shares granted in 2015, 2016 and 2017 will be paid in 2020, while those granted in 2018 will be paid in 2021. The amounts payable will now be based on the internal cost reduction target and not on the Economic Value - The amounts resulting from conversion of virtual shares will be added to the amounts equivalent to dividends and interest on own capital effectively paid by the Company during the vesting period. The fair value of virtual shares is determined based on the average price (weighted by trading volume) of the Company’s shares (EMBR3-R$) Amount of Grant value Amount of Fair value of Grants on March 03, 2015 1,237,090 30.2 650,178 12.3 Grants on March 10, 2016 1,095,720 31.1 685,272 13.0 Grants on June 09, 2016 55,994 1.1 43,325 0.8 Grants on August 25, 2016 70,978 1.1 59,172 1.1 Grants on August 24, 2017 1,930,350 30.5 1,535,154 29.1 Grants on April 12, 2018 1,622,986 35.2 794,616 15.0 Grants on March 12, 2019 964,198 18.6 234,598 4.4 At December 31, 2019 6,977,316 147.8 4,002,315 75.7 (i) Virtual shares until December 31, 2019 considering the plan’s vesting period. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Earnings per Share | 31 Earnings per Share 31.1 Basic Basic earnings per common share is computed by dividing net income for the year by the weighted average number of shares outstanding during the period, excluding shares acquired by the Company and held in Treasury. 12.31.2019 12.31.2018 12.31.2017 Continuing Discontinued Total Continuing Discontinued Total Continuing Discontinued Total Net income (loss) attributable to owners of Embraer (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 Weighted average number of shares (in thousands) 735,850 735,850 735,850 734,065 734,065 734,065 734,264 734,264 734,264 Basic earnings per share - U.S. dollars (0.29 ) (0.15 ) (0.44 ) (0.37 ) 0.12 (0.24 ) (0.19 ) 0.55 0.36 31.2 Diluted Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all potentially dilutive shares. The Company has only one category of potentially dilutive shares, namely share purchase options. A calculation is made in respect of these share purchase options to determine the number of shares that could be acquired at fair value (determined as the average market price of the Company’s share), based on the monetary value of subscription rights tied to the share purchase options in circulation. The number of shares calculated as described above is compared with the number of shares issued, assuming the exercise of share purchase options. 12.31.2019 12.31.2018 12.31.2017 Continuing Discontinued Total Continuing Discontinued Total Continuing Discontinued Total Net income (loss) attributable to owners of Embraer (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 Profit used to determine diluted earnings per share (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 Weighted average number of shares (in thousands) - diluted 735,850 735,850 735,850 734,065 734,065 734,065 734,264 734,264 734,264 Dilution for the issuance of stock options (in thousands) (i) — — — — 720 — — 545 545 Weighted average number of shares (in thousands) - diluted 735,850 735,850 735,850 734,065 734,785 734,065 734,264 734,809 734,809 Diluted earnings per share - U.S. dollars (0.29 ) (0.15 ) (0.44 ) (0.37 ) 0.12 (0.24 ) (0.19 ) 0.55 0.36 (i) Refers to the effect of potentially dilutive shares for December 31, 2018. At December 31, 2019, 93,025 options (719,899 in 2018) were excluded from the weighted average number of shares, since their effect would have been anti-dilutive. |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Revenue from contracts with customers | 32 Revenue from contracts with customers a) Revenue disaggregation: The following tables provide disaggregated revenue by category, including main product and service lines, and main geographic areas. The Company discloses such balances reconciled to the reportable segments Note 39, being this information regularly provided and reviewed in such way by the chief operating decision-marker. Reconciliation of reportable segments to the statements of income is provided in Note 39.6. • Revenue by category at December 31, 2019, including continuing and discontinued operations: Commercial Aviation Defense and Executive Service and Other Total Aircraft 2,184.7 89.9 1,311.9 0.2 5.6 3,592.3 Long-term contracts (Defense BU) — 397.9 — 1.2 — 399.1 Others 49.7 16.0 85.1 0.7 — 151.5 Service — 264.2 — 618.5 0.1 882.8 Spare Parts — 7.3 — 426.1 3.5 436.9 Total 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 Revenue from Continuing operations — 775.3 1,397.0 437.2 8.6 2,618.1 Revenue from Discontinued operations 2,234.4 — — 609.5 0.6 2,844.5 Total 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 North America Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,549.0 21.3 272.0 59.1 614.3 76.6 3,592.3 Long-term contracts (Defense BU) 0.1 1.3 2.1 378.8 13.5 3.3 399.1 Others 98.6 19.2 5.7 8.6 12.5 6.9 151.5 Service 437.5 26.6 72.6 101.3 205.1 39.7 882.8 Spare Parts 260.4 8.0 24.6 55.5 78.3 10.1 436.9 Total 3,345.6 76.4 377.0 603.3 923.7 136.6 5,462.6 Revenue from Continuing operations 1,601.0 46.4 59.8 570.5 297.6 42.8 2,618.1 Revenue from Discontinued operations 1,744.6 30.0 317.2 32.8 626.1 93.8 2,844.5 Total 3,345.6 76.4 377.0 603.3 923.7 136.6 5,462.6 • Revenue by category at December 31, 2018, including continuing and discontinued operations: Commercial Defense and Executive Service and Other Total Aircraft 2,276.2 92.5 997.4 — 6.9 3,373.0 Long-term contracts (Defense BU) — 267.0 — — — 267.0 Others 82.1 2.0 106.9 — — 191.0 Service — 183.2 — 622.7 0.2 806.1 Spare Parts — 67.4 — 358.1 8.5 434.0 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 Revenue from Continuing operations — 612.1 1,104.3 399.8 11.5 2,127.7 Revenue from Discontinued operations 2,358.3 — — 581.0 4.1 2,943.4 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 North Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,253.8 87.0 318.2 40.3 644.5 29.2 3,373.0 Long-term contracts (Defense BU) 1.9 0.1 0.7 243.3 12.6 8.4 267.0 Others 66.6 11.9 5.2 74.7 8.9 23.7 191.0 Service 353.7 42.2 92.3 42.4 230.3 45.2 806.1 Spare Parts 283.0 8.8 15.6 42.3 69.7 14.6 434.0 Total 2,959.0 150.0 432.0 443.0 966.0 121.1 5,071.1 Revenue from Continuing operations 1,245.0 120.3 42.1 367.5 327.0 25.8 2,127.7 Revenue from Discontinued operations 1,714.0 29.7 389.9 75.5 639.0 95.3 2,943.4 Total 2,959.0 150.0 432.0 443.0 966.0 121.1 5,071.1 • Revenue by category at December 31, 2017, including continuing and discontinued operations: Commercial Defense and Executive Service and Other Total Aircraft 2,691.8 — 1,175.0 — 7.1 3,873.9 Long-term contracts (Defense BU) — 651.8 — — — 651.8 Others 79.6 7.2 105.3 0.3 — 192.4 Service — 177.8 — 622.2 1.0 801.0 Spare Parts — 16.9 — 299.7 23.7 340.3 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 Revenue from Continuing operations — 853.7 1,280.3 398.3 14.2 2,546.5 Revenue from Discontinued operations 2,771.4 — — 523.9 17.6 3,312.9 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 North Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,711.5 0.2 754.0 20.0 359.3 2 8 9 3,873.9 Long-term contracts (Defense BU) 38.0 1.3 9.8 558.4 33.7 10.6 651.8 Others 104.1 0.2 1.7 11.9 0.3 74.2 192.4 Service 304.1 36.9 75.4 109.4 231.5 43.7 801.0 Spare Parts 180.2 13.0 18.6 49.2 66.8 12.5 340.3 Total 3,337.9 51.6 859.5 748.9 691.6 169.9 5,859.4 Revenue from Continuing operations 1,266.1 28.1 141.3 700.0 377.1 33.9 2,546.5 Revenue from Discontinued operations 2,071.8 23.5 718.2 48.9 314.5 136.0 3,312.9 Total 3,337.9 51.6 859.5 748.9 691.6 169.9 5,859.4 The contracts are grouped in the categories above as they are affected similarly by economic factors. b) Contract balances, including contract costs: Note 12.31.2019 12.31.2018 Contract assets 461.9 358.0 Contract costs (Other assets) 9.1 9.1 Contract liabilities 683.4 1,243.6 Advances from customers 435.4 1,057.4 Deferred revenue 248.0 186.2 Financial Guarantee 25 — 11.6 As of December 31, 2019, and December 31, 2018, there were no losses recognized for contract assets. Losses recognized on trade accounts receivable balances are presented in Note 8. Out of the total revenues recognized for the year ended December 31, 2019, US$ 822.6 The amount of revenue recognized as of December 31, 2019 related to performance obligations achieved in prior years (or partially achieved) is US$ 57.4, which refers mainly to change orders approved in the year without changes in goods or services to be delivered. The Company had the following amounts in other assets related to costs to obtain contracts: Sales Bank Total At December 31, 2018 0.6 8.4 9.0 Additions 3.0 0.8 3.8 Disposals (2.5 ) (1.2 ) (3.7 ) Exchange rate variation — — — At December 31, 2019 1.1 8.0 9.1 There were no impairment losses recognized for costs to obtain contracts. Assets for obtaining contracts are amortized when (or as and when) the revenue is recognized. c) Performance obligations: The Company has a portfolio of firm orders, whose performance obligations are unsatisfied or partially satisfied. The amount of revenue allocated to performance obligations not yet satisfied (or partially satisfied) as of December 31, 2019 is US$ 16.8 billion, of which US$ 13.3 billion is expected to be satisfied in the next 5 years, as estimated by the Company. |
Revenue (expenses) by type
Revenue (expenses) by type | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Revenue (expenses) by type | 33 Revenue (expenses) by type The Company opted to present the consolidated statements of income by function. The table below shows the detailed costs and expenses by nature: 12.31.2019 12.31.2018 12.31.2017 As presented in the statements of income: Revenue 2,618.1 2,127.7 2,546.5 Cost of sales and services (2,259.9 ) (1,929.6 ) (2,248.6 ) Administrative (136.7 ) (136.1 ) (138.9 ) Selling (148.2 ) (151.4 ) (169.9 ) Research (19.7 ) (19.5 ) (22.2 ) Other income (expenses), net (215.8 ) (173.8 ) (163.9 ) Equity in losses on associates (0.2 ) (0.4 ) 1.2 Operating profit before financial income (162.4 ) (283.1 ) (195.8 ) Revenue (expenses) by nature: Revenue from sales of goods 2,207.0 1,797.1 2,011.2 Revenue from sales of services 462.8 365.1 600.3 Sales deductions and tax on revenue (i) (51.7 ) (34.5 ) (65.0 ) General manufacturing costs (ii) (2,104.3 ) (1,788.2 ) (2,016.5 ) Depreciation (90.6 ) (74.0 ) (131.5 ) Amortization (65.0 ) (67.4 ) (100.6 ) Personnel expenses (146.2 ) (158.5 ) (156.0 ) Selling expenses (37.5 ) (39.1 ) (33.0 ) Miscellaneous (336.9 ) (283.6 ) (304.7 ) Operating profit before financial income (162.4 ) (283.1 ) (195.8 ) (i) Refers to sales taxes and other deductions. (ii) Refers to costs of materials, direct labor and general manufacturing expenses. |
Other operating income (expense
Other operating income (expense), net | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other operating income (expense), net | 34 Other operating income (expense), net 12.31.2019 12.31.2018 12.31.2017 Corporate projects (123.3 ) (72.6 ) (33.0 ) Impairment of assets (71.6 ) (61.3 ) ( 64.8 ) Taxes on other outputs (24.4 ) (21.6 ) (15.3 ) Expenses system project (9.3 ) (13.1 ) (15.4 ) Training and development (5.1 ) (7.8 ) (8.6 ) Provision for contingencies (4.3 ) (11.1 ) (6.7 ) Flight safety standards (3.7 ) (4.0 ) (4.1 ) Aircraft maintenance and flights costs - fleet (1.7 ) (2.6 ) (1.9 ) Product modifications (0.6 ) — — Recovery of expenses 2.2 9.4 3.5 Royalties 2.9 4.4 2.8 Other sales 4.2 5.0 8.6 Contractual fines revenue (expenses) 5.7 8.3 (0.5 ) Others 13.2 (6.8 ) (28 .5 ) (215.8 ) (173.8 ) (163.9 ) |
Financial income (expense), net
Financial income (expense), net | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial income (expense), net | 35 Financial income (expense), net 12.31.2019 12.31.2018 12.31.2017 Financial income: Interest on cash and cash equivalents and financial investments 54.6 80.3 122.6 Interest on receivables 36.8 3.6 24.5 Taxes over financial revenue (7.0 ) (9.4 ) (13.4 ) Other 0.2 — 2.4 Total financial income 84.6 74.5 136.1 Financial expenses: IOF - (tax on financial transactions) (1.5 ) (1.4 ) (3.6 ) Interest on taxes, social charges and contributions (6.0 ) (5.2 ) (3.6 ) Residual value guarantee — — — Interest on loans and financing (9.5 ) (39.7 ) (37.5 ) Other (12.4 ) (13.2 ) (4.0 ) Total financial expenses (29.4 ) (59.5 ) (48.7 ) Derivative financial instruments 6.3 (8.9 ) 7.6 Financial income (expenses), net 61.5 6.1 95.0 |
Foreign exchange gain (loss), n
Foreign exchange gain (loss), net | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Foreign exchange gain (loss), net | 36 Foreign exchange gain (loss), net 12.31.2019 12.31.2018 12.31.2017 Monetary and foreign exchange variations Assets: Advances to suppliers — — (1.3 ) Tax credits (8.6 ) (26.8 ) (2.5 ) Trade accounts receivable and contract assets (8.1 ) (25.7 ) (18.2 ) Cash and cash equivalents and financial investments (16.9 ) (63.9 ) (0.6 ) Other 11.1 (15.8 ) (0.7 ) (22.5 ) (132.2 ) (23.3 ) Liabilities: Loans and financing 7.5 81.2 5.4 Advances from customers — — 7.2 Provisions 4.2 14.3 2.9 Taxes and charges payable 0.8 6.3 0.8 Other payables (9.2 ) 10.6 3.1 Suppliers 15.2 (1.5 ) 0.4 Provisions for contingencies 5.4 3.1 (1.3 ) Other 2.4 (3.8 ) (1.6 ) 26.3 110.2 16.9 Net monetary and foreign exchange variations 3.8 (22.0 ) (6.4 ) Derivative financial instruments (4.1 ) 17.0 12.1 Foreign exchange gain (loss), net (0.3 ) (5.0 ) 5.7 |
Responsibilities and Commitment
Responsibilities and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Responsibilities and Commitments | 37 Responsibilities and Commitments 37.1 Insurance cover The Company contracts different types of insurance policies to protect assets in the event of any accident that might cause significant losses. Policies are also contracted for risks subject to compulsory insurance, either legally or contractually. The Company and its subsidiaries have civil liability insurance for their operations in Brazil and abroad, with coverage and conditions that management considers appropriate to the risks involved. To cover substantial damage to assets and loss of earnings of its operations in Brazil and abroad, the Company has insured an amount of US$ 7.8 billion. 37.2 Financial guarantees (Commercial Aviation) The table below provides quantitative data on the financial guarantees provided by the Company to third parties in the Commercial Aviation business unit (discontinued operations). The maximum potential payments (off balance sheet exposure) represent the worst-case scenario and do not necessarily reflect the results expected by the Company. Estimated proceeds from performance guarantees and underlying assets represent the anticipated values of assets the Company could liquidate or receive from other parties to offset its payments under guarantees. 12.31.2019 12.31.2018 Maximum financial guarantees 35.9 66.6 Maximum residual value guarantees 204.3 253.1 Mutually exclusive exposure (i) (12.5 ) (26.9 ) Provisions and liabilities recorded (140.3 ) (137.0 ) Off-balance 87.4 155.8 Estimated proceeds from financial guarantees and underlying assets 86.9 177.6 (i) When an underlying asset is covered by mutually exclusive financial and residual value guarantees, the residual value guarantee may only be exercised if the financial guarantee has expired without having been exercised. On the other hand, if the financial guarantee is exercised, the residual value guarantee is automatically terminated. This exposure is reduced by the fact that, to benefit from the guarantee, the counterparty must ensure that the aircraft complies with rigid conditions for its return. |
Supplemental Cash Flow informat
Supplemental Cash Flow information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Supplemental Cash Flow information | 38 Supplemental Cash Flow information 38.1 Payments made during the year and transactions not affecting cash and cash equivalents 12.31.2019 12.31.2018 12.31.2017 Payments made during the period: Interest 184.2 200.6 186.4 Income tax and social contribution 42.3 23.3 28.6 Non-cash Property, plant and equipment, transfer to pool parts inventory — (29.5 ) (21.6 ) Write off on Property, plant and equipment by transfer to pool parts inventory (21.6 ) — — Property, plant and equipment, transfer for providing for the sale of inventory (38.5 ) (112.7 ) (100.8 ) Impairment of assets — (55.2 ) (58.4 ) Government grants — — (4.3 ) |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Segment information | 39 Segment information Management defined the Company’s operating segments based on the reports used for strategic decision making, reviewed by the chief operating decision-maker. The chief operating decision-maker evaluates the businesses based on its consolidated operating results, dividing it geographically and in terms of markets for specific products. From a geographic perspective, Management considers the performance of the operations in Brazil, North America, Europe, Latin America and Asia Pacific. The Company discloses the results of discontinued operation (Note 4) related to the Commercial Aviation business unit and part of related results from Services & Support business unit as separated reportable segments and with equivalent composition as presented in the comparative consolidated financial statements as of December 31, 2018, since the chief operating decision-maker continues to review and evaluates these segments results in the same format until the completion of disposal. Note 39.6 provides reconciliation of reportable segments to the statements of income. 39.1 Commercial aviation business The Commercial Aviation business mainly involves the development, production and sale of commercial jets and aircraft leases. • ERJ 145 family, comprising the ERJ 135, ERJ 140 and ERJ 145 jets, certified to operate with 37, 44 and 50 seats, respectively. • EMBRAER 170/190 family, comprising the EMBRAER 170, a 70-seat 76-seat 100-seat 108-seat • E-Jets E-Jets E175-E2 E190-E2 E195-E2, E190-E2 E195-E2 E175-E2 39.2 Defense and security business The defense and security business operations mainly involve research, development, production, modification and support for military defense and security aircraft, as well as a wide range of products and integrated solutions that include radars, special space systems (satellites) and advanced information and communications systems, such as Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance, or C4ISR systems. The expansion and diversification of the portfolio, previously focused on military aircraft, was facilitated by a strategy of partnerships, acquisitions and organic growth. The Company’s principal customer is currently the Brazilian Defense Ministry and, in particular, the Brazilian Air Force, although the diversification of the portfolio has resulted in a corresponding diversification of customers: the Brazilian Army and Navy and the Communications Ministry, as well as a growing international presence of our products and solutions. The main products of the Defense and Security portfolio are as follows • Light Attack and Advanced Training Aircraft (Super Tucano) – the Super Tucano is a military turboprop that combines training and operational capacities with low acquisition and operating costs. The Super Tucano has the operational capacities for frontier surveillance, proximity aerial support and counter insurgence missions (COIN). • Aircraft Modernization – The Company offers aircraft upgrade services and currently operates four contracted programs. The first, known as F-5BR, F-5 A-1M, A-4 AF-1 • The ISR family (Intelligence, Surveillance and Reconnaissance), based on the ERJ 145 platform, includes the EMB 145 AEW&C – Anticipated Aerial Alert and Control, EMB 145 Multi Intel – Remote Sensing and Air-Ground • C-390 n • Transportation of Authorities and Special Missions – Derived from the commercial and executive aircraft platforms, these are aircraft used to transport government authorities or to carry out special missions. • Radars – solutions offered through Bradar, a technology-based industry specialized in developing and producing radars for Remote Sensing and Defense, include radar for anti-aircraft artillery, surveillance of terrestrial activity, military and civil air traffic control, a communications intelligence system and synthetic aperture radar for cartography and precision monitoring services. • Software and Systems Development – combining the expertise of Atech – Negócios em Tecnologia S.A. and investments by Embraer in system development and integration, provides specialized engineering services for the development, installation, revitalization and maintenance of critical control, defense and monitoring systems, as well as the machinery and equipment required for the services. • Frontier monitoring and protection of strategic structures – Based on its experience in systems integration, and through its wholly owned subsidiary Savis, Embraer is dedicated to developing, designing, certifying, producing, integrating and implementing systems and services in the field of frontier monitoring and control and protection of critical infra-structures. • Satellites - Visiona Space Technology, a joint venture between Embraer and Telebrás, was hired to provide and integrate the Brazilian Geostationary Defense and Communications Satellite system (SGDC), to meet the satellite communications requirements of the Brazilian government, including the National Broadband Program and a wide range of strategic defense transmissions, as well as the assimilation of technologies, marking Embraer’s presence in this market. Also provides services of supply and analysis of satellite images with the objective of developing major sensing projects in Brazil and neighboring countries. 39.3 Executive Jet business Executive Jets market operations comprise the development, production and sale of executive jets and the provision of support services, and leases of the following product lines: • Legacy 600 and Legacy 650 - executive jets in the super midsize and large categories, deliveries of which started in 2002 and 2010, respectively. • Legacy 450 and Legacy 500- • Phenom family - executive jets in the Entry Jet and Light Jet categories, respectively. The first deliveries of the Phenom 100 were made in 2008, and deliveries of the Phenom 300 started in 2009. • Lineage 1000 - an ultra-large executive jet. Deliveries of this model started in 2009. • Praetor 500 and Praetor 600 - most disruptive executive jets in the Midsize and Super Midsize categories, introduced in Q4 2018 with deliveries starting in 2nd half 2019. 39.4 Service & Support Segment created to strengthen Embraer’s know-how In addition to its experience in proposing support solutions to customers, OGMA (Embraer’s subsidiary in Portugal) offers MRO (Maintenance, Repair and Overhaul) services for a wide range of commercial, executive and defense aircraft, aircraft components and engines and also it is a significant supplier of steel and composite aviation structures to several aircraft manufacturers. The Services and Support segment consist of 6 macro processes: • Capture customer needs and develop integrated support and services solutions: To develop integrated and competitive support solutions, technical services, materials, or MRO activities that meet the needs and expectations of Embraer customers. • Sell and administrate support and services solution: To sell integrated and competitive technical support, service solutions, materials, or MRO activities, and administer support and service contracts. • Deliver Material Solutions: To provide parts to customers, by direct sale or availability through special programs, manage component repair, provide inventory management services and advice on inventory formation, etc. • Deliver Technical Solutions: To provide technical, operational and maintenance support to customers fleets with services such as providing training for pilots and commissioners, aircraft modification and enhancement projects, review of technical, operational and maintenance publications, and sustaining digital solutions. • Deliver MRO Solutions: To provide maintenance services for aircraft, engines and landing gear (scheduled and unscheduled), aircraft modernization and component repair. • Monitor and ensure operational excellence and customer relationship excellence: To guarantee the operational excellence of Materials, Technique and MRO Solutions, through maintaining accountability of the operational leadership and the support areas, consistent monitoring of operational KPIs, reviewing customer satisfaction through MFA practices, maintaining customer relationships with CRM and operational areas that directly interface with the customers. 39.5 Other Operations reported as others relate to the supply of structural parts and mechanical and hydraulic systems, and production of agricultural crop-spraying aircraft. Consolidated statements of income data by operating segment – year ended December 31, 2019: Commercial Aviation Defense and Security (i) Executive Service and Support Other Total reportable Segments Unallocated Total Revenue 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 — 5,462.6 Cost of sales and services (1,971.2 ) (711.4 ) (1,211.2 ) (755.5 ) (17.8 ) (4,667.1 ) — (4,667.1 ) Gross profit 263.2 63.9 185.8 291.2 (8.6 ) 795.5 — 795.5 Gross profit % 11.8 % 8.2 % 13.3 % 27.8 % -93.5 % 14.6 % 14.6 % Operating income (expense) (332.3 ) (110.4 ) (235.2 ) (176.5 ) (18.1 ) (872.5 ) — (872.5 ) Operating profit before financial income (expense) (69.1 ) (46.5 ) (49.4 ) 114.7 (26.7 ) (77.0 ) — (77.0 ) Financial income (expense), net (116.1 ) (116.1 ) Foreign exchange gain (loss), net 6.9 6.9 Loss (186.2 ) Income tax expense (130.3 ) (130.3 ) Net income (316.5 ) Revenue by geographic area – year ended December 31, 2019: Commercial Aviation Defense and Executive Service and Other Total North America 1,399.8 202.8 1,181.6 560.7 0.7 3,345.6 Europe 508.2 96.7 118.8 200.0 — 923.7 Asia Pacific 256.9 4.3 20.3 95.5 — 377.0 Latin America, except Brazil 17.0 2.7 21.6 35.1 — 76.4 Brazil 0.7 431.8 54.7 107.6 8.5 603.3 Other 51.8 37.0 — 47.8 — 136.6 Total 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 Assets by operating segment - year ended December 31, 2019: Commercial Aviation Defense and Security Executive Jets Service and Other Total reportable Segments Unallocated Total Trade accounts receivable 4.7 62.0 15.2 208.6 3.7 294.2 — 294.2 Property, plant and equipment 859.5 261.6 456.6 480.9 — 2,058.6 — 2,058.6 Intangible assets 1,048.8 16.5 750.5 — 113.8 1,929.6 122.1 2,051.7 Total 1,913.0 340.1 1,222.3 689.5 117.5 4,282.4 122.1 4,404.5 Assets by geographic area - year ended December 31, 2019: North America Europe Asia Pacific Brazil Total Trade accounts receivable 101.5 89.8 5.9 97.0 294.2 Property, plant and equipment 371.5 556.9 48.3 1,081.9 2,058.6 Intangible assets 79.5 10.4 — 1,961.8 2,051.7 Total 552.5 657.1 54.2 3,140.7 4,404.5 Consolidated statements of income data by operating segment – year ended December 31, 2018: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total reportable Segments Unallocated Total Revenue 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 — 5,071.1 Cost of sales and services (1,976.7 ) (702.3 ) (914.0 ) (689.0 ) (21.1 ) (4,303.1 ) — (4,303.1 ) Gross profit 381.6 (90.2 ) 190.3 291.8 (5.5 ) 768.0 — 768.0 Gross profit % 16.2 % -14.7 % 17.2 % 29.8 % -35.3 % 15.1 % 15.1 % Operating income (expense) (229.1 ) (93.0 ) (235.0 ) (168.7 ) (6.9 ) (732.7 ) — (732.7 ) Operating profit before financial income (expense) 152.5 (183.2 ) (44.7 ) 123.1 (12.4 ) 35.3 — 35.3 Financial income (expense), net (171.5 ) (171.5 ) Foreign exchange gain (loss), net — — Loss before taxes on income (136.2 ) Income tax expense (35.0 ) (35.0 ) Net income (171.2 ) Revenue by geographic area – year ended December 31, 2018: Commercial Defense and Executive Service and Other Total North America 1,449.4 145.7 936.7 422.2 5.0 2,959.0 Europe 519.1 122.8 127.4 196.7 — 966.0 Asia Pacific 324.1 1.6 1.6 104.7 — 432.0 Latin America, except Brazil 11.9 68.3 22.5 47.3 — 150.0 Brazil 0.2 258.9 16.1 157.2 10.6 443.0 Other 53.6 14.8 — 52.7 — 121.1 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 Assets by operating segment - year ended December 31, 2018: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total reportable Segments Unallocated Total Trade accounts receivable 5.8 111.2 1.3 192.2 7.5 318.0 — 318.0 Property, plant and equipment 688.8 295.6 544.0 435.6 0.7 1,964.7 — 1,964.7 Intangible assets 862.5 11.0 829.0 — 78.4 1,780.9 117.9 1,898.8 Total 1,557.1 417.8 1,374.3 627.8 86.6 4,063.6 117.9 4,181.5 Assets by geographic area - year ended December 31, 2018: North America Europe Asia Pacific Brazil Total Trade accounts receivable 83.9 106.4 8.8 118.9 318.0 Property, plant and equipment 351.1 501.6 57.1 1,054.9 1,964.7 Intangible assets 53.6 5.7 — 1,839.5 1,898.8 Total 488.6 613.7 65.9 3,013.3 4,181.5 Consolidated statements of income data by operating segment – year ended December 31, 2017: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total reportable Segments Unallocated Total Revenue 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 — 5,859.4 Cost of sales and services (2,178.1 ) (792.9 ) (1,126.4 ) (640.3 ) (26.4 ) (4,764.1 ) — (4,764.1 ) Gross profit 593.3 60.8 153.9 281.9 5.4 1,095.3 — 1,095.3 Gross profit % 21.4 % 7.1 % 12.0 % 30.6 % 17.0 % 18.7 % 0.0 % 18.7 % Operating income (expense) (230.5 ) (109.5 ) (206.0 ) (177.0 ) (13.9 ) (736.9 ) (16.5 ) (753.4 ) Operating profit before financial income (expense) 362.8 (48.7 ) (52.1 ) 104.9 (8.5 ) 358.4 (16.5 ) 341.9 Financial income (expense), net (40.6 ) (40.6 ) Foreign exchange gain (loss), net 6.6 6.6 Profit before taxes on income 307.9 Income tax expense (27.9 ) (27.9 ) Net income 280.0 Revenue by geographic area – year ended December 31, 2017: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total North America 1,795.5 93.3 1,006.8 421.0 21.3 3,337.9 Europe 200.1 133.5 161.7 196.3 — 691.6 Asia Pacific 670.3 13.7 94.1 81.4 — 859.5 Latin America, except Brazil 0.5 5.4 0.6 45.1 — 51.6 Brazil 0.9 587.1 17.1 133.3 10.5 748.9 Other 104.1 20.7 — 45.1 — 169.9 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 39.6 Reconciliation of reportable segments and statements of income The table below presents portion of revenues, costs and expenses of the Commercial Aviation and Services & Support segments that will be discontinued by the Company under the sale of control of related assets to Boeing (Note 4). Operating expenses presented in the column corporate expenses represent expenses with central overheads and other operating expenses (such as corporate projects) allocated on a pro-rata 12.31.2019 (-) Elimination of discontinued operations Total Commercial Service and Other Corporate Results of Revenue 5,462.6 2,234.4 609.5 0.6 — 2,618.1 Cost of sales and services (4,667.1 ) (1,971.2 ) (429.7 ) (6.3 ) — (2,259.9 ) Gross profit 795.5 263.2 179.8 (5.7 ) — 358.2 Gross profit % 14.6 % 13.7 % Operating income (expense) (872.5 ) (332. 3 ) (101.1 ) — 81.5 (520.6 ) Operating profit before financial income (expense) (77.0 ) (69.1 ) 78.7 (5.7 ) 81.5 (162.4 ) Operating margin % -1.4 % -6.2 % 12.31.2018 (-) Elimination of discontinued operations Total Commercial Service and Other Corporate Results of Revenue 5,071.1 2,358.3 581.0 4.1 — 2,127.7 Cost of sales and services (4,303.1 ) (1,976.7 ) (389.4 ) (7.4 ) — (1,929.6 ) Gross profit 768.0 381.6 191.6 (3.3 ) — 198.1 Gross profit % 15.1 % 9.3 % Operating income (expense) (732.7 ) (229.1 ) (99.7 ) — 77.3 (481.2 ) Operating profit before financial income (expense) 35.3 152.2 91.9 (3.3 ) 77.3 (283.1 ) Operating margin % 0.7 % -13.3 % 12.31.2017 (-) Elimination of discontinued operations Total Commercial Service and Other Corporate Results of Revenue 5,859.4 2,771.4 523.9 17.6 — 2,546.5 Cost of sales and services (4,764.1 ) (2,178.1 ) (326.3 ) (11.1 ) — (2,248.6 ) Gross profit 1,095.3 593.3 197.6 6.5 — 297.9 Gross profit % 18.7 % 11.7 % Operating income (expense) (753.4 ) (230.5 ) (101.3 ) — 72.1 (493.7 ) Operating profit before financial income (expense) 341.9 362.8 96.3 6.5 72.1 (195.8 ) Operating margin % 5.8 % -7.7 % |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Subsequent events | 40 Subsequent events Information on the subsequent event that occurred in transaction between Embraer and Boeing are disclosed in Notes 1.1, 3.4, 4 and 40.3 of the consolidated financial statements. 40.1 New financing for working capital purposes of US$ 600 .0 On March 13, 2020, Embraer Aviation Netherlands B.V. entered into a loan credit and guarantee agreement with Citibank, N.A., J.P. Morgan Chase Bank, N.A. and Banco Santander, S.A. in the amount of US$ 600.0, accruing interest at three months LIBOR plus 40.2 Impacts of the COVID-19 pandemic Embraer has been monitoring the COVID-19 pandemic situation and its impacts on its employees, operations, the global economy, the supply and the demand for its products and services. The Company’s Crisis Committee monitors on a daily basis the development of the pandemic situation and it has implemented contingency plans to act as quickly as necessary as the current situation continues to unfold. As a result of COVID-19 pandemic, on March 17, 2020, our Brazilian corporate employees responsible for critical functions started to work from home and, on March 22, 2020, we decided to put our Brazilian employees that could not work remotely on paid leave until March 31, 2020. Until March 31, 2020, we were only carrying out essential activities at our facilities, including customer support, aircraft maintenance and manufacturing. On March 30, 2020, we further decided to put our Brazilian employees responsible for non-critical functions on collective vacation from April 1 to April 9, 2020. During this temporary shutdown of our facilities, we implemented safety measures to adapt our facilities to the World Health Organization guidelines. On April 10, 2020, we implemented a job preservation plan that included temporary furloughs, reduction in working hours and pay cuts to certain of our employees, as a means of guaranteeing their employment upon completion of the plan. This plan started on April 13, 2020 and will last between 60 and 90 days. On April 13, 2020, all of our Brazilian employees that could not work remotely and were not included in the job preservation plan returned to work at our adapted facilities. Our or other companies’ operations may be suspended again or remain suspended for a longer time. Due to the uncertainty related to the spread of COVID-19, on March 26, 2020, we also suspended the projections relating to our expected results for 2020, dated as of November 12, 2019. We will issue updated projections for 2020 when we conclude the assessment of the effects that the COVID-19 pandemic will cause to our business. We expect that 2020 will be a distinct year in terms of orders and deliveries due to the impacts of the COVID-19 pandemic. The airline business has been adversely affected due to COVID-19, and we will have to review our production chain in order to reflect the new and uncertain demand scenario. As a result of the COVID-19, on April 6, 2020, Standard & Poor’s downgraded our rating by one notch to BBB- with a negative outlook, due to expectations that many airlines will delay new deliveries at least until the end of the third quarter of 2020. On April 28, 2020, Fitch also downgraded our rating from BBB- to BB+ as a result of the negative expectations relating to the commercial aviation industry due to the COVID-19 pandemic. On April 29, 2020, Moody’s also downgraded our rating from Ba1 to Ba2 with a negative outlook. In the Defense and Security business unit, as of the date of this annual report, we cannot fully predict the impact that the COVID-19 In the Executive Jets business unit, restrictions on travel and emergency quarantine have posed some challenges for aircraft deliveries to international customers. As of the date of this annual report, production lines of our business aviation products are abreast for attending planed supply levels, with no major supply shortages. We are supervising the risks and controlling the supply chain and postponements in demand in order to prevent obstacles that may arise from this global crisis. As a result of COVID-19, as of the date of this annual report, one of our executive jets customers cancelled its firm orders and some of our executive jet customers postponed their scheduled aircraft deliveries. Although we cannot fully predict the impact of the COVID-19 In the Commercial Aviation business unit (recorded and presented as discontinued operations for the financial statements as of and for the year ended December 31, 2019), due to extensive traffic disruption affecting our customer’s operations throughout the world, as a result of the COVID-19, it is reasonable to expect a material impact on our 2020 deliveries. According to Cirium, a data analytics and consulting company, as of May 2020, 60% of the global fleet has been placed into storage, and the International Air Transport Association - IATA projects a decline of 50% in commercial traffic for 2020 in year-over-year terms. As a result of COVID-19, some of our customers rescheduled their aircraft deliveries carrying them over to 2021 and beyond, which has affected our 2020 projected deliveries. As of the date of this annual report, no cancellation has occurred. The recovery pace is difficult to predict since this outbreak has no precedent in history. Although we cannot fully yet determine the impact of the COVID-19 outbreak in the short-to-medium term on our business, we expect that customers will continue to postpone their scheduled aircraft deliveries and will cancel their orders. As a result of the COVID-19 pandemic, the Company has taken measures to preserve cash flow, including (i)) reductions in working hours and pay cuts; (ii)) extension of payments terms relating to our suppliers; (iii)) extension of tax payment deadlines; (iv)) negotiation of new credit lines; and (v)) adjustment of production chain. As of March 31, 2020, the Company has already recognized the following impacts in profit or loss as result of the COVID-19 pandemic: • Negative changes in the fair value of Republic Airways shares held as financial investments (Note 7) impacting the Company’s 2020 operating results in the amount of US$ 22.2. • Additional provision for expected credit losses over trade accounts receivable, contract assets and customer financing as result of increase in credit risks of the Company’s customers during the pandemic in the amount of US$ 33.4. As of March 31, 2020, the Company had a trigger event related to impairment of assets in our Executive Aviation and Defense & Security business units due to the impacts of the COVID-19 pandemic and its impact on our market capitalization devaluation in the period. Based on our best estimate using certain assumptions for short-medium term impacts on deliveries of Executive Aviation and Defense & Security businesses units, at this time have not identified additional impairment charges to be recognized in addition to the charges described in Note 19. The depreciation of Brazilian Reais vs. U.S. Dollars in the period of 29% has a positive impact in future cash flows for that base date due to reduction of cash outflows indexed in Brazilian Reais (costs of goods sold and general expenses). However, an improvement in the currency exchange rate in the future may result in a future impairment charge. 40.3 Impairment losses – Commercial Aviation business unit Due to the unexpected and wrongful termination of the strategic partnership by Boeing on April 25, 2020, from this date forward the Company will stop designating and measuring the assets and liabilities associated with the Commercial Aviation Business and related services as “held for sale” and its generated results as “discontinued operations,” which are to be reclassified as “held for continuous use” and “continuing operations.” The change in designation requires the remeasurement of the long-lived assets held for sale (fixed assets, intangibles, and rights-of-use) for the lower value between the book value, adjusted for accumulated depreciation and amortization not recognized while classified as held for sale in the amount of US$ 83.5 (Note 3.4) that will be recorded in the second quarter of 2020, and the recoverable value determined by the highest amount between the value-in-use of these assets and the fair value minus expenses that would be incurred by sale. During the term described in Note 3.4, the long-lived assets held for sale were listed at the recoverable value by the lesser value between the book value and the fair value based on the purchase price set forth in the MTA minus the incremental costs incurred to close the transaction. In line with the Company’s practice as shown in Note 19, the recoverable value of these assets will be measured based on the approach of value-in-use using the discounted cash flow method, which is not substantially different from fair value under current market conditions. The discount rate applied in this case is based on the rate of the weighted average cost of capital for the Company, reconciled with the estimated discount rate before taxes of 10.6%. That rate differs from the discount rate applied to the December 31, 2019 calculation as result of the Company’s increased risk diversification and due to increased funding costs as a result of not concluding the transaction with Boeing. The future cash flows utilized in the determination of the value-in-use account for significant economic environment impacts resulting from the COVID-19 pandemic on the commercial aviation market in accordance with the best estimate of the Management up to the present date. As a result of the measurement of the recoverable value of the assets of the Commercial Aviation Business, including fixed assets, intangibles and rights-of-use, the Company expects to recognize in the second quarter of 2020 losses due to impairment charges relating to these assets which will impact the operating results for the year. Based on preliminary calculations, these losses are estimated to be in the range of US$ 153.0 to US$ 526.0 taking into account Management’s current estimates of potential projected scenarios of future deliveries of commercial jets and market share development in the coming years post COVID-19, based on currently available information. The estimated losses were calculated based on carrying amounts of CGUs and foreign exchange rate observed as of March 31, 2020. The amount to be recorded as of June 30, 2020 is subject to revision and update based on certain assumptions and factors that are subject to change, including without limitation the foreign exchange rate and discount rate on that date, and may vary materially from the estimates above. Because a substantial portion of the cost of goods sold is indexed in Brazilian Reais, positive or negative fluctuations of 10% in the Brazilian Reais to U.S. dollar foreign exchange rate impact the mid-range of estimated impairment charges by approximately US$ 163.0 and US$ 201.0, respectively. |
Presentation of the Financial_2
Presentation of the Financial Statements and Accounting Practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Changes in accounting policies - adoption of IFRS 9, IFRS 15 and IFRIC 22 | 2.2.1 Changes due to adoption of new accounting standards, interpretations and policies 2.2.1.1 IFRS 16 - Leases IFRS 16 establishes the principles for the recognition, measurement, and disclosure of leases and requires lessees to recognize a single accounting model in the statements of financial position. The lessor’s accounting in IFRS 16 remains substantially unchanged in relation to IAS 17. Lessors will continue to classify between operating or finance leases, using principles similar to the former standard and, therefore, IFRS 16 has no impact on leases where the Company is the lessor. From the lessee’s standpoint, lease contracts previously recognized as expenses in the statement of income for the year on a straight-line basis, start to be recognized in the statements of financial position as right-of-use The Company adopted IFRS 16 using the modified retrospective model with the adoption date on January 1, 2019. Under this approach, the financial information comparative to prior periods are not being restated and remain as previously reported in accordance with IAS 17. The Company used the following practical expedients permitted by the standard of: (i) not recording operating lease contracts, that on the beginning date, have lease term equal to or below 12 months or less (“short-term leases”) and (ii) not recording contracts for which the individual underlying asset is lower than US$ 5 thousand (“low-value The details on and impacts from the changes in accounting policies are disclosed below: a) Accounting impact from the adoption of IFRS 16: As part of the adoption process, the Company has examined its lease transactions to determine whether each effective contract is or contains a lease based on the new definition. Under IFRS 16, a contract is or contains a lease if it transfers the right to control the use of an identified asset over a period of time in exchange for consideration. The Company identified applicable contracts within the scope of IFRS 16 for leases of land and buildings, facilities, machinery, vehicles and other equipment, subject to the practical expedients applied. For the contracts identified, the Company recognized: • A lease liability in the total amount of US$ 57.6 related to the lease payments according to the cash flows of each contract, discounted to present value at the incremental borrowing rate. The incremental weighted average borrowing nominal rate applied to lease liability on January 1, 2019 was 6.3%. • The right-of-use Lease commitments as at December 31, 2018 78.1 - (Less): short-term leases recognized on a straight-line basis as expense (1.9 ) - (Less): low-value (3.3 ) - Discounted using the incremental borrowinig rate (15.3 ) Lease liability as at January 1, 2019 57.6 2.2.1.2 IFRIC 23 - Uncertainty over income tax treatments The Interpretation IFRIC23 clarifies how to apply the recognition and measurement requirements of IAS12 - Income Taxes when there are uncertainties over treatments applied in the calculation of the respective taxes (income tax and social contribution on net income). The interpretation was effective as from January 1, 2019. In the opinion of the Company’s management, there were no significant impacts arising from this interpretation, as all procedures adopted for calculation and payment of income taxes are supported by the prevailing legislation and case law of Administrative and Judicial Courts. Contingent liabilities of this nature are presented in Note 26.2. 2.2.1.3 Hedge accounting - Adoption of IFRS 9 The Company changed the accounting policy previously disclosed in Note 2.2.1(a) to the consolidated financial statements as of December 31, 2018 to adopt the requirements of IFRS 9 - Financial Instruments, to supersede IAS 39 – Financial Instruments: Recognition and Measurement, for hedge instruments designated for hedge accounting beginning on January 1, 2019. (i) Fair value hedge: The Company applies the fair value hedge accounting to hedge against the risk of changes in borrowing and financing interest rates by contracting swaps. Interest rate swaps existing on January 1, 2019 qualify as fair value hedge for purposes of IFRS 9. The Company’s risk management strategies and hedge documentation are aligned with the requirements of IFRS 9 for designation of transactions. Changes in the fair value of derivatives designated and qualified as fair value hedge continue to be recorded in statements of income for the year as financial income (expense), net, including the changes in the fair value of hedged asset or liability (hedged item) attributable to the hedged risk. There were no changes with the adoption of IFRS 9. (ii) Cash flow hedge: The Company applies the cash flow hedge accounting to hedge against the cash flow volatility attributable to a risk of foreign exchange and interest rate fluctuation associated with highly probable forecast transactions that will affect income or loss for the year. For instruments designated as cash flow hedge, the Company started to account for changes in the fair value of the time value of the instruments (options), previously recognized in financial income (expense), net according to IAS 39, in accumulated other comprehensive income as hedge cost in the cash flow hedge reserve line. Hedge costs are reclassified to the statements of income together with the intrinsic value of the options by adjusting the initial value of the hedge item. As at January 1, 2019, the amount of US$ 1.3 was reclassified from retained earnings to the financial instrument reserve in accumulated other comprehensive income (loss) in shareholders’ equity related to the time value of the options. The Company did not reclassify the time value of outstanding options as at January 1, 2018, because these transactions were settled or expired before the transition date to IFRS 9. The Company’s risk management strategies and hedge documentation are aligned with the requirements of IFRS 9 for designation of transactions as cash flow hedge. |
Functional and presentation currency | 2.2.2 Functional and presentation currency A Company’s functional currency is the currency of the primary economic environment in which it operates and should be the currency that best reflects company’s business and operations. Based on this analysis, management has concluded that the US Dollar (“US$” or “Dollar”) is its functional currency, based on analysis of the following indicators: • Currency that most influences the prices of goods and services; this is the currency in which the sales price of its goods and services are expressed and settled. • Currency of the country whose competitive forces and regulations most influence the Company’s business. • Currency that most influences the costs of providing goods or services, i.e., the currency in which the Company’s costs are normally expressed and settled. • Currency in which the Company largely obtains funds for financial operations and in which it normally receives for its sales and accumulates cash. |
Transactions in foreign currencies | 2.2.3 Transactions in foreign currencies Transactions in other currencies (other than the functional currency) are translated into the functional currency at the foreign exchange rates in force on the transaction dates. The amounts are updated at the exchange rates of the reporting dates. Foreign exchange gains and losses resulting from this translation (in relation to monetary assets and liabilities indexed in currencies other than the functional currency) are recognized in the consolidated statements of income as foreign exchange gain (loss), net. Customer advances and advances to suppliers for goods and/ or services in foreign currencies are translated to the Company’s functional currency in the transaction date and no subsequent translation is recognized. |
Financial Instruments | 2.2.4 Financial Instruments a) Financial assets a.1) Recognition and measurement Financial assets are recognized when the Company becomes part of the instrument’s contractual arrangements. It is initially measured at fair value, plus transaction costs attributable to their acquisition or issuance, except for instruments measured at fair value through profit or loss, for which these costs are recognized immediately in the consolidated statements of income. The Company classifies its financial assets under the following categories: (i) measured as at amortized cost, (ii) measured as at fair value through other comprehensive income and (iii) measured at fair value through profit or loss. Financial assets are not reclassified subsequent to initial recognition, unless the Company modifies the business model for the management of these financial assets, in which case all affected assets are reclassified on the first day of the new business model. Financial assets are derecognised when the contractual rights to receive cash flows from the asset expires or are transferred in a transaction in which substantially all the risks and benefits of ownership of the financial asset are transferred by the Company. a.2) Classification and subsequent measurement The Company classifies financial assets as measured at amortized cost only if both criteria are met: • The asset is held within a business model whose objective is to collect the contractual cash flows; and • The contractual terms give rise to cash flows, at specific dates, which relate only to the payments of principal and interest. Financial assets measured as at amortized cost by the Company includes cash and cash equivalents, certain financial investments, trade accounts receivable, contract assets, guarantee deposits and other financial assets. Financial assets measured as at fair value through other comprehensive income (FVOCI) are assets held within a business model whose purpose is achieved both through the receipt of contractual cash flows and the sale of financial assets, as well as their contractual terms generate, on specific dates, cash flows that are related only to payments of principal and interest. Changes in fair value of FVOCI financial assets are recognized in accumulated other comprehensive (income) loss in the consolidated changes in shareholders’ equity. Gains or losses due to impairment and exchange variation, including interest calculated using the effective interest method, are recognized in the consolidated statements of income as financial income (expense), net, except for the exchange variation recognized as foreign exchange gain (loss), net. In the derecognition of these financial assets, any amounts accumulated in the consolidated statements of other comprehensive income are reclassified to the consolidated statements of income. All financial assets not classified by the Company as measured at amortized cost or as FVOCI are classified as at fair value through profit or loss (FVTPL). These assets include financial assets held for active and frequent trading and derivative financial instruments. (i) Business model evaluation The Company evaluates the business model objective for the management of financial assets as part of the accounting classification of the instruments. The factors considered in this evaluation are: • The current financial policy and the objectives set for portfolio management, which includes assessing whether the strategy focuses on contractual interest income, maintaining a determined interest rate profile, the relationship between the duration of the financial assets and related liabilities, expected cash outflows, or the collection of cash flows through the sale of underlying financial assets. • How portfolio performance is assessed and reported to Management. • Risks that affect the performance of the business model and how they are managed. • The frequency, volume and timing of assets sales in prior periods, the reasons for such transactions and future expectations. (ii) Evaluation if contractual cash flows are only principal and interest payments To assess whether contractual cash flows are only principal and interest payments, the principal is defined as the fair value of the financial asset at the initial recognition, and interest as a consideration for the time value of money, the credit risk associated with value of principal outstanding during contractual terms, other risks and general costs of loans, as well as a profit margin in the transaction. This evaluation is made by considering the contractual terms of the financial assets, which includes, in addition to evaluating whether the contractual cash flows are only principal and interest payments, the existence of terms that could change the timing or value of the contractual cash flows which would not meet the definition, including: contingent events, terms that can adjust contractual rates, prepayment and extension of due dates, and terms that limit access to cash flows of specific assets. b) Financial liabilities The Company classifies its financial liabilities in the following categories: (i) measured as at amortized cost and (ii) fair value through profit or loss. A financial liability is measured at fair value through profit or loss if it is held for trading or is a derivative financial instrument, and its changes, including interest, is recognized in the consolidated statements of income. Changes in other financial liabilities measured as at amortized cost, including interest and exchange variation, are recognized in the consolidated statements of income under financial income (expenses), net caption, except for the exchange variation recognized as foreign exchange gain (loss), net. Financial liabilities are derecognised when contractual obligations are withdrawn, canceled or expired. The difference between the extinct book value and the consideration paid (including transferred assets or assumed liabilities) is recognized in the consolidated statements of income. |
Cash and cash equivalents and short-term investments | 2.2.5 Cash and cash equivalents and financial investments Cash and cash equivalents include cash in hand, cash in transit (amounts paid by our customers or debtors that are pending release by the intervening bank at the reporting date), bank deposits and highly liquid short-term investments, usually maturing within 90 days of the investment date, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Amounts related to cash and cash equivalents, which are however not available for use by the Company, are presented within other assets in the consolidated financial statements. Other financial investments with maturities of more than 90 days from the acquisition date are presented as financial investments. |
Trade accounts receivable, net | 2.2.6 Trade accounts receivable, net When making a sale, the Company evaluates its payment terms. If the sale amount is not due/ receipt immediately, which is the case of aircraft sales, it will be recognized in the trade accounts receivable. The amount receivable when the payment is deferred by the customer is adjusted to present value if applicable, identifying an interest rate compatible with the market at the time of sale and applying it to the amount receivable according to the transaction payment terms. The Company does not have trade accounts receivable from customers with a significant financing component. Expected credit losses are recognized using actual credit loss experiences from the last 10 years and follow-up |
Derivative financial instruments and hedge operations | 2.2.7 Derivative financial instruments The Company uses derivative instruments to hedge its operations against the risk of fluctuations in foreign exchange and interest rates; they are not used for speculative purposes. Gains and losses on derivative transactions are recorded in consolidated statements of income, considering the fair value of these instruments. The unearned gains and losses is recognized in the consolidated statements of financial position under derivative financial instruments, and the counterpart in consolidated statements of income under financial income (expense), net, (Note 35), except for operations to hedge exposure to changes in exchange rate or designated as cash flow hedge, which is recognized as accumulated other comprehensive income (loss) in shareholders’ equity. |
Hedge accounting | 2.2.8 Hedge accounting The Company uses hedge accounting to book certain derivative financial instruments applied to hedge risks of fluctuations in foreign exchange and interest rates in transactions associated with firm commitments and highly probable forecast transactions. On hedge initial designation, the Company formally documents the relationship between hedge instruments and hedged items, including the risk management objectives and the strategy for conducting the transaction, together with the methods used to evaluate the effectiveness of hedge relationship. The fair value of derivative financial instruments designated as hedge accounting is presented in Note 9. Changes in fair value of hedge instruments and hedge costs booked in accumulated other comprehensive income (loss) in shareholders’ equity are presented in Note 9. a) Fair value hedge Fair value hedge is applied for derivative financial instruments that hedge the Company against risk of fluctuations in interest rates (hedged risk) of loans and financing. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in income or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The gain or loss relating to the effective portion of interest rate swaps is recognized in income or loss as financial income (expense), net. The gain or loss relating to the ineffective portion is recognized in income or loss within financial income (expense), net. b) Cash flow hedge Cash flow hedge is applied for hedging risks associated with the volatility of cash flows in foreign currency associated with highly probable forecast transaction that will impact income or loss, in this case the payroll expenses of personnel in Brazil settled in Brazilian Reais. The Company designates as cash flow hedges the intrinsic value of hedge instruments (put and call options of foreign currency). The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within shareholders’ equity. The time value of put and call options is recognized as hedge costs in accumulated other comprehensive income (loss) within shareholders’ equity. The gain or loss relating to the ineffective portion is recognized immediately in income or loss, within financial income (expense), net. Amounts accumulated in shareholders’ equity are reclassified in the periods when the hedged item affects income or loss. When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in shareholders’ equity at that time remains in shareholders’ equity until the highly probable forecast transaction occurs, when it is reclassified to income or loss along with the gain or loss of forecast transaction. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in shareholders’ equity are immediately reclassified to income or loss within financial income (expense), net. c) Effectiveness of hedge accounting Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments, to ensure that an economic relationship exists between the hedged item and hedging instrument. For fair value hedges, the Company enters into interest rate swaps where the critical terms of the hedging instrument match exactly with the terms of the hedged item, as notional value, payment term and cash outflow dates. Since all critical terms matched during the year the hedge relationship was 100% effective. In the case of cash flow hedges designated to hedge the volatility of payroll expenses settled in Brazilian Reais, the Company enters into zero-cost |
Inventories | 2.2.9 Inventories The Company’s inventories are largely comprised of raw material, work in progress, spare parts and finished goods. Inventories of raw materials are recognized at acquisition cost. Inventories of work in process comprise raw materials, direct labor, other direct costs and general production costs attributable to the cost of the inventories. Once the products have been completed, they are recognized as finished products. Inventories of raw material and spare parts are recognized as at the weighted average cost. Manufactured aircrafts (finished goods) and work in progress are measured at its individual production cost, which is recognized as cost of sales and services in the consolidated statements of income when aircraft is delivered to the customer. Inventories are assessed periodically to determine whether the net realizable value is higher than its cost and impairment loss is recognized if the book value is higher as cost of goods sold and services rendered. The Company periodically assesses the consumption and demand for its inventories and records an expense for estimated losses due to obsolescence in the case of items without activity and for which there is no demand for subsequent periods, in accordance with established policy: Provision for obsolescence is 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. The Company holds used aircraft for resale, usually received in trade-in |
Income tax and social contribution | 2.2.10 Income tax and social contribution Tax expenses for the year comprise current and deferred income tax. Income tax is recognized in the consolidated statements of income, except the portion of deferred income tax related to items recognized directly in the consolidated shareholders’ equity in other comprehensive income. The current income tax is calculated at the nominal rates of each country, wherein 34% in Brazil, composed of 25% income tax and 9% social contribution on net income. Deferred income tax is recognized on temporary differences arising between the tax and accounting basis of assets and liabilities. |
Investments | 2.2.11 Investments Investments in associates are recorded and valued in the consolidated financial statements using the equity method of accounting. In the case of exchange variations on foreign investments that use a functional currency other than that used by the Company, such exchange variations are recognized in cumulative translation adjustments within shareholders’ equity, and are only recognized in the consolidated statements of income when the investment is sold or expensed. |
Property, plant and equipment, net | 2.2.12 Property, plant and equipment, net Property, plant and equipment are recognized by the acquisition, formation or construction cost, less accumulated depreciation and impairment losses. Depreciation is calculated by the straight-line method based on the asset’s estimated useful life Note 16. Land is not depreciated. The estimated useful lives are reviewed and adjusted, if appropriated, at the end of each fiscal year. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. The Company estimates the residual value for certain aircraft spare parts included in the exchange pool program, which is reviewed by Management, and if necessary adjusted, at the end of each reporting period. The Company does not attribute residual values to other assets as assets are not usually sold and in the event of a sale, the amount is not significant. The items comprising property, plant and equipment are summarized below: a) Land - b) Buildings and land improvements - c) Facilities - d) Machinery and equipment - e) Furniture and fixtures f) Vehicles - g) Aircraft - h) Computers and peripherals - i) Tooling - j) Property, plant and equipment in progress - k) Exchange pool program - |
Intangible assets, net | 2.2.13 Intangible assets, net a) Development Research costs are recorded as an expense when they are incurred. Project costs, comprised mainly of expenditure on product development, including drawings, engineering designs and construction of prototypes, are recorded as intangible assets when it is probable that the projects will generate future benefits, taking into account their commercial and technological feasibility, availability of technological and financial resources, and only if the cost can be reliably measured. Capitalized development costs are amortized from the time at which benefits begin to accrue (units produced), based on estimated aircraft sales, and the amortized amounts are appropriated to production cost. Revision of the sales estimate related to the amortization quota is made at least annually. The Company has agreements with certain key suppliers, hereby denominated partners, who participate in the Company’s research and development projects by contributing cash. The Company records such contributions as liabilities on receipt and as the milestones are completed and the amounts are consequently no longer subject to return, they are recorded as a reduction of development expenditure, capitalized in intangible assets and amortized on the aircraft production series. The Company records these contributions when received as a liability and as the development stages and contractual events signed with the supplier are met, therefore, no longer subject to return, these values are slaughtered for aircraft development costs recorded in intangible, and amortized in conjunction with development expenses following the same amortization criteria. b) Computer software Software licenses are capitalized and amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as expense as incurred. Development costs directly attributable to identifiable and unique software, controlled by the Company and that is expected to generate benefits greater than the costs for more than one year, are recorded in intangible assets. |
Impairment of long-lived assets | 2.2.14 Impairment of long-lived assets At the end of each fiscal year, the Company performs impairment test for all cash-generating units (CGUs) with goodwill generated from business combination allocated and for CGUs with intangible assets still under development and not yet producing (undefined useful life). CGUs with definite-lived assets (property, plant and equipment, and intangibles) allocated are analyzed, at each quarter, whether there is any indication it might be impaired to perform the impairment test. Assets are grouped in CGUs taking into consideration the Company’s business model and its monitoring of cash flows. In general, the CGUs are defined in accordance with the families/ platforms of aircrafts or other goods and services produced by the Company, irrespective of its geographic location. The Company applies the value in use concept, using discounted cash flow projections, discounted at an appropriate rate which reflects the investors’ expectations of return. The cash flow projections for the CGUs take into consideration the Company’s medium and long-term strategic plan, based on the characteristics and expectations of the business. When the impairment test is performed, Management compares the carrying amounts of the Company’s CGUs with its recoverable amounts, which is determined at the higher between its value in use and fair value less cost to sell. An impairment charge is recognized when the carrying amount exceeds the recoverable amount. Any impairment losses of a CGU are recognized in the consolidated statements of income in the line of other operating income (expense), net and allocated to relevant assets of the impaired CGU. The exception to this concept is aircraft that the Company held in its property, plant and equipment for operating leases purposes, in which the Company acts as lessor. In this case, the aircraft is tested individually using the higher of its value in use and its market value to determine its recoverable amount. For impairment test purposes, the market value is estimated with the assistance of assessment prepared by third party appraisals and the value in use is determined by the discounted cash flow of lease agreement associated with each aircraft tested, when applicable. Assets held for sale are tested for impairment in accordance with practice described in Note 4. |
Leases | 2.2.15 Leases a) Right-of-use The Company recognizes right-of-use right-of-use right-of-use right-of-use Right-of-use Expenses on the depreciation of the right-of-use b) Lease liabilities On the lease inception date, the Company recognizes lease liabilities measured at the present value of lease payments to be made during the lease term, which is measured based on the contract term and renewal options. Lease payments include fixed payments less any lease incentives received. Variable lease payments not depending on an index or rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. When calculating the present value of lease payments, the Company uses the incremental borrowing rate. After the inception date, the amount of the lease liability is increased to reflect the increase of interest, adjustments of installments and reduced for lease payments made. Moreover, the carrying amount of the lease liability is remeasured in case of any modification, a change in the lease term, a change in fixed lease payments or a change in valuation to acquire the underlying asset. Interest is recognized as financial income (expense), net in the statements of income for the year. (i) Determination of the lease term: The Company determines the contractual term as the non-cancelable The Company reassesses the lease term if there is an event or significant change under circumstances that are under its control and affect its capacity to exercise (or not exercise) the option to renew (e.g. a change in the business strategy). (ii) Short-term leases and low-value The Company applies the short-term lease recognition exemption to all its leases with the contractual term below or equal to 12 months from the inception date and without a purchase option. The practical expedient of recognition exemption for low-value thousand low-value c) Accounting policies applied up to December 31, 2018 In the comparative period ended December 31, 2018, the contracts where the Company is the lessee were recognized according to their classification between finance and operating leases: Leases, where the Company acquired substantially all the risks and rewards of ownership, were classified as finance leases. Finance leases were recorded as a financed purchase recognizing a fixed asset and borrowing and financing liability at the lease inception date. Leases for which a significant portion of the risks and rewards of ownership remained with the lessor were classified as operating leases. Operating lease payments were recognized in profit or loss for the year under the straight-line method over the lease term. |
Loans and financing | 2.2.16 Loans and financing Loans are recognized initially at fair value, net of transaction costs, and subsequently carried at amortized cost (plus charges and interest on a pro rata basis), taking into account the effective interest rate on each transaction. Loans are classified as current or non-current |
Borrowing costs | 2.2.17 Borrowing costs When a substantial period of time is required for construction or production of an asset before it is ready for use, the borrowing costs are capitalized as part of the cost of such assets. The costs are allocated based on the average rate for all active loans, weighted in accordance with additions in the period. Borrowing costs are interest and other costs incurred by the Company in obtaining funding. |
Financial guarantees and residual value guarantees | 2.2.18 Financial guarantees and residual value guarantees In certain cases, the Company grants financial or residual value guarantees on delivery of its aircraft, as part of the aircraft financing structure. The residual amount is guaranteed to the lender based on the expected future value of the aircraft at the end of the funding, subject to a maximum limit, agreed by contract. Financial guarantees are calculated at the time of delivery of the aircraft and recognized as a reduction in sales revenue against contract liabilities. The income is realized in the consolidated statements of income over the aircraft financing period and all deferred income is recognized by the end of that period. To cover the risk of losses on such guarantees, the Company may record an additional provision in the event of significant circumstances, such as a request for judicial reorganization of a client, based on the best estimate of potential losses Note 25. In some cases, the Company holds guarantees in the form of deposits in favor of third parties to whom financial and residual value guarantees have been provided as part of aircraft financing structures. |
Unearned income | 2.2.19 Unearned income Unearned income comprises government grants received by the Company and its subsidiaries. Government grants are recognized against the expenses in which the resources were used. When government grants are received in advance for research investments they are recorded as unearned income and recognized in the consolidated statements of income to the extent that the resources are invested and contractual milestones are met, as reduction of research expenses. Government grants for the acquisition of property, plant and equipment are recognized as debt (loans and financing) in liabilities until the milestones determined by the granting entity are met. Once the milestones are completed, the grant is recognized as unearned income. This unearned income is recognized in the consolidated statements of income as a reduction of the depreciation expense of the underlying asset it is proposed to subsidize in proportion with the recognition of the expense. Income earned with non-distributable |
Provisions, contingent assets and liabilities, legal obligations and court-mandated escrow deposit | 2.2.20 Provisions, contingent assets and liabilities, legal obligations and court-mandated escrow deposit Provisions – provisions are recognized based on the judgment of the Company’s Management and its legal counsel, the nature of the lawsuits, legal precedent, complexity and court interpretations, whenever the loss is considered probable, when such loss would result in a probable outflow of resources to settle the obligations and when the amounts involved can be measured with a reasonable degree of certainty, the provision is recognized. The provision for labor claims is recognized based on the Company’s historical percentage of cash outflows of each demand. The amounts provided represent the Company’s best estimate of the anticipated outflow of resources. For income tax matters, a provision is recognized when the Company’s Management evaluates with the assistance of its legal advisors that an uncertainty over income tax treatments taken during the fiscal years subject to tax authorities’ examinations, or under discussions in administrative and legal instances with tax authorities, is not probable to be accepted by decisions of the court of last resort. Contingent liabilities – amounts for which disbursement is classified as possible risk of loss are disclosed but not recorded in the consolidated financial statements. Where the probability of loss is classified as remote, neither provision nor disclosure are required. For income tax matters and related legal demands, the Company discloses the amounts of income tax treatments taken during the fiscal years subject to tax authorities’ examinations, or under discussions in administrative and legal instances with tax authorities, that in its assessment is probable to be accepted by decisions of the court of last resort. Legal obligations - arise from tax liabilities for which the legality or constitutionality is under appeal. The related amounts are fully recognized as provisions in the consolidated financial statements. Court-mandated escrow deposits - recorded as other assets and periodically updated for monetary correction. |
Product warranties | 2.2.21 Product warranties Warranty expenditure on aircraft is estimated on delivery of these products. The estimates are based on historical data that includes, among others, warranty claims and related repair/ replacement costs, warranties given by the suppliers, contractual coverage period and warranty patterns for new aircrafts, for which the Company expects higher warranty costs in the launch of new models until the production process matures and increases the platform in service period. The coverage period varies from 3 to 6 years. The Company may be obliged to modify the product to meet the requirements of the certification authorities, or after delivery, due to improvements or to the aircraft’s performance. The costs of such modifications are provisioned when the new requirements or improvements are requested and known. Management reviews the assumptions and the evolution of warranty relates costs periodically, and if appropriated, adjustements to the provision is recorded. The product warranties balances are presented in the provisions caption in the consolidated statements of financial position, Note 26.1. |
Post-retirement benefits | 2.2.22 Post-retirement benefits a) Defined contribution The Company provides defined contribution pension plans for its employees. For the companies incorporated in Brazil, these are managed by EMBRAER PREV - Sociedade de Previdência Complementar. b) Post-retirement healthcare benefits The Company and some of its subsidiaries provide healthcare benefits to retired employees. The planned costs of offering post-retirement healthcare benefits and coverage for dependents are recorded as a provision during the period of employment based on actuarial studies conducted to identify future exposure, based on the following main premises: i) Discount rate - brings future benefit flows to present value and is defined based on the ratio of Brazilian government securities. ii) Increase of medical costs rate - represents the increase in the value of medical care and is not applied linearly, as the companies historically tend to take measures to reduce the cost, or even change health plan providers. iii) Morbidity rate (aging factor) - measures the increased use of health plans in light of the aging population. iv) Mortality rate - uses the RP-2000 v) Probability of Retirement - estimates the probability of retirement by age group. vi) Churn rate - uses the T-3 The Company recognizes changes in the provision for the plan against other comprehensive income in the equity valuation adjustments account in consolidated shareholders’ equity, net of taxes, to the extent that there are changes in the assumptions and against consolidated statements of income if there are changes in the costs of the current benefit plan or in the plan’s contractual characteristics. This provision is reviewed at least annually. |
Employee profit sharing plan | 2.2.23 Employee profit sharing plan The Company provides a profit-sharing plan for its employees, which is linked to performance targets established in action plans set and agreed at the beginning of each year. The profit-sharing approved policy is equivalent to 8.5% the operating result of the fiscal year, may be adjusted annually by Management based on circumstances. Provisions are recognized monthly by applying the agreed percentage to the payroll of the company, recognized in the consolidated statements of income accounts related to the job performed by each employee. Of the total amount of profit sharing, 50% is divided equally among all the employees and the other 50% in proportion to each employee’s salary. |
Share Based Payment | 2.2.24 Share- based payment The Executive Remuneration Policy (PRE) determines that the remuneration of the Company’s management shall be granted as a Long-Term Incentive (ILP in Portuguese) with the objective of retaining and attracting qualified personnel who will make an effective contribution to the Company’s performance. The Company provides two types of share-based remuneration in the form of LTIs: i) Stock options plan (capital instruments based on the Company’s share issues). In this modality, in return for the services provided, the program participants receive stock options, the fair value of which is calculated based on the Black & Scholes pricing model and recognized on a linear basis in the consolidated statements of income during the vesting period, which is the period during which the acquisition criteria are met. As of December 31, 2019, the vesting period of all options granted under this plan has already been completed remaining solely certain exercises still outstanding (Note 29). ii) Cash-settled phantom shares plan, in which the amounts attributed to the services provided by the participants are converted into virtual share units based on the market value of the Company’s shares. At the end of the acquisition period the participant receives the quantity of virtual shares converted into reais, at the shares’ current market value. The company recognizes the obligation during the acquisition period (quantity of virtual shares proportional to the period) in the same group as the participant’s normal remuneration. This obligation is presented as an account payable to employees and the fair value is calculated based on the market price of the shares and registered as financial income (expense) in the consolidated statements of income. The phantom shares plan is a cash-settled |
Earnings per share | 2.2.25 Earnings per share Basic earnings per common share are computed by dividing net income attributable to Embraer shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed by adjusting the number of shares outstanding to include the number of additional shares that would have been outstanding had the potentially dilutive shares attributable to stock options been put into circulation during the respective periods. |
Revenue recognition of contract with customers | 2.2.26 Revenue recognition of contract with customers Revenue comprises the fair value of the consideration received or to be received for the sale of products and services in the ordinary course of business. Revenue is presented net of taxes, returns, reductions and discounts, and in the consolidated financial statements, after eliminating intercompany sales. a) Revenue from sales of aircraft and spare parts Revenues from aircraft and spare parts sales are recognized when the control, is transferred to the customer, that is, when all recognition conditions are met. Revenues from commercial, executive and agricultural aircraft and spare parts are generally recognized upon delivery or shipment to the customer. In aircraft sales contracts, the Company normally receives customer advances before the product control is transferred. The Company asserts that there is no significant financing component in this operation. For the spare parts sale contracts, the client makes the payment after the transfer of control, with average payment term of 30 days. In sales of aircraft contracts, other performance obligations, such as supply of spare parts, training services, technical assistance and other obligations may be presented, which may or may not be delivered simultaneously to the aircraft delivery. For the Commercial and Executive Aviation contracts, the individual selling price is allocated for these additional performance obligations, and the variable considerations (as discounts), are allocated using the cost-plus margin method. In the Defense & Security aircraft sales, there is no stand-alone price basis considering its high customization, the price is allocated in the performance obligation considering the cost-plus margin method. For these performance obligations, the revenue is recognized when the control of related product or service is transferred to the customer. b) Revenue from sale of services Sevices sale revenues are recognized over time of control transfer to the customer, that is, to the extent that services are rendered over time. The performance obligations of such contracts are satisfied and recognized in the consolidated statements of income over time. In the Defense & Security segment, some services, such as modernization services, the client’s payment schedule follow a schedule agreed between the parties. In maintenance service contracts, the Company receives from the clients in an average term of 30 days. Exchange Pool and EEC (Embraer Executive Care) programs revenues are recognized monthly during the contract period, because there is no customer use pattern that can be reliably projected, and consist of a fixed rate and part of a variable rate directly related to the hours actually flown by the aircraft covered in these programs. The payment term usually is 30 days. c) Revenue from long-term contracts (Defense & Security) In the Defense & Security segment, most of the sales contracts are characterized by the high customization of the products and development of new technologies whose transfer of control to the customer occurs over time of development and production of aircraft or new technology as a single performance obligation. In such contracts, their revenues are recognized over time at amounts equal to the ratio of actual cumulative costs incurred at the end of reporting period divided by total estimated costs at completion, multiplied by the allocated price less the cumulative revenue recognized in prior reporting period. Some contracts contain clauses for price adjustment based on pre-established The Company understanding is that the cost incurred method provides the most reliable basis for estimating the progress of contracts whose revenues are recognized over time. In these contracts, there is also a schedule of payments agreed between the Company and the customers, which vary from contract to contract. After analysis, the Company has concluded that there are no significant financing components in the Defense & Security segment contracts since there is no willingness on either side to finance the other and there are factors that are not under the control of any party which may affect the payment dates. d) Contract assets and liabilities The contract assets relate to the Company’s rights to the consideration for the work completed and not billed at the date of the consolidated financial statements, mainly from long-term Defense & Security contracts that are recognized over time as noted above, and net of customer advances received and expected credit losses recognized. Contract assets are transferred to trade accounts receivable when the rights become unconditional. Contract liabilities refer to advance payments received by the Company prior to the delivery of the aircraft, as well as to the supply of spare parts, training, technical assistance and other obligations included in aircraft sales contracts. They also refer to advances of consideration received from customers related to the acceptance of managerial stages/ tasks under long-term contracts (Defense & Security). e) Costs to obtain a contract Refers to incremental costs incurred by the Company solely to obtain contracts with customers that will be recovered in the fulfillment of these contracts, such as costs incurred with sales commissions and bank guarantees granted in Defense & Security long-term contracts. Assets for obtaining contracts are capitalized as other assets and amortized when (or as) the related contract revenue is recognized. |
Cost of sales and services | 2.2.27 Cost of sales and services Cost of sales and services consists of the cost of the aircraft, spare parts and services rendered, comprising: a) Material - b) Labor - c) Depreciation - d) Amortization - e) Product warranties - f) Multiple-element arrangements - |
Financial income (expenses), net and foreign exchange gains (losses), net | 2.2.28 Financial income (expenses), net and foreign exchange gains (losses), net Financial income (expenses), net and foreign exchange gains (losses), net principally comprise interest income on cash and cash equivalents and financial investments measured as at amortized cost and FVOCI, financial charges on loans, tax updates and foreign exchange gains (losses) on assets and liabilities expressed in currencies other than the functional currency (US dollars), on an accrual basis. Gains or losses on fair value changes of FVTPL financial instruments are also recognized as financial income (expenses), net. Changes in the fair value of the residual value guarantees and income or loss on the provision and implementation of derivative financial instruments capitalized are also recorded as financial income (expense), net in the consolidated statements of income. Financial income and expense exclude borrowing costs attributable to acquisitions, buildings or the contribution of qualifying assets that require a substantial period of time to be ready for use or sale. |
Statement of cash flows | 2.2.29 Statement of cash flows The statement of cash flows was prepared using the indirect method. |
Segment reporting | 2.2.30 Segment reporting Operating segment information is presented in a manner consistent with the internal reports provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources among and assessing the performance of the operating segments and for making strategic decisions, is the Chief Executive Officer. Generally, balances and transactions that are not directly allocated to a specific operating segment, such as corporate area expenses, are appropriated pro-rata |
Assets held for sale and discontinued operations | ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS A discontinued operation is the Company’s business component comprising operations and cash flows that can be clearly distinguished, that represents an important separate business line and is part of a coordinated and approved plan by Management for its sale. The classification of an operation as discontinued is reached upon its disposal, or when the related assets and liabilities are designated as held for sale, whichever the first. An asset or group of assets and liabilities is held for sale when its carrying amount is expected to be recovered mainly through the sale transaction rather than through continuing use. This occurs if the asset is available for immediate sale “as is”, subject only to usual and customary terms for completion of the transaction, when the sale is defined as highly probable. |
Presentation of the Financial_3
Presentation of the Financial Statements and Accounting Practices (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Company's Corporates Structure | Entity Participation Country Core activities Airholding S.A. 100 % Portugal Coordinates investments in subsidiaries in Portugal OGMA - Indústria Aeronáutica de Portugal S.A. 65 % Portugal Aviation maintenance and production Yaborã Indústria Aeronáutica S.A. 100 % Brazil Future commercial aviation joint venture with Boeing Embraer Commercial Aviation LLC 100 % EUA Future company related to the Commercial Aviation segment Embraer Aircraft Customer Services, Inc. 100 % EUA Sale of spare parts and support services in North America and the Caribbean Embraer Aircraft Maintenance Services Inc. 100 % EUA Maintenance of aircraft and components Embraer Aviation France - EAF 100 % France Future company related to the Commercial Aviation segment ELEB – Equipamentos Ltda. 100 % Brazil Sale of hydraulic and mechanical equipment for the aviation industry Embraer Aircraft Holding Inc. 100 % EUA Concentrates corporate activities in the USA Embraer Business Innovation Center, Inc. 100 % EUA Develops technological innovation research in aviation and related areas Embraer Executive Jet Services, LLC 100 % EUA After sale support and aircraft maintenance Embraer Executive Aircraft, Inc. 100 % EUA Final assembly and delivery of executive jets Embraer Engineering & Technology Center USA, Inc. 100 % EUA Engineering services related to aircraft research and development Embraer Aero Seating Technologies, LLC 100 % EUA Production and maintenance of aircraft seats Embraer Defense and Security Inc. 100 % EUA Supply of Super Tucano aircraft to the American Air Force (LAS) Embraer CAE Training Services LLC 51 % EUA Pilot, mechanic and crew training EB Defense LLC 100 % EUA Future joint venture with Boeing for the sale and promotion of C-390 n Embraer Solutions, LLC 100 % EUA Sale of spare parts and support services for the Executive Aviation Embraer Aviation Europe - EAE 100 % France Concentrates corporate activities abroad, specifically Europe Embraer Aviation International - EAI 100 % France Sale of parts and after sale services in Europe, Africa and the Middle East Embraer Europe SARL 100 % France Commercial representation of the Company in Europe, Africa and the Middle East Embraer Defesa & Segurança Participações S.A. 100 % Brazil Coordinates investments in the Defense & Security segments Atech - Negócios em Tecnologias S.A. 100 % Brazil Development and control, communications, computer and intelligence services Visiona Tecnologia Espacial S.A. 51 % Brazil Supply of the Brazilian Government’s Geostationary Defense and Strategic Communications Satellite System (SGDC) Visiona Internacional B.V. 100 % Holanda Integration and supply of the Brazilian Government’s (SGDC) System SAVIS Tecnologia e Sistemas S.A. 100 % Brazil Operates in Defense and Security with the Brazilian Government Embraer GPX Ltda 100 % Brazil No operations Embraer Netherlands Finance B.V. 100 % Holland Financial operations raising and investing funds of the Embraer Group Embraer Aviation Netherlands B.V. 100 % Holland Future company responsible for Embraer’s commercial activities in Europe Embraer Netherlands B.V. 100 % Holland Concentrates corporate activities abroad, leasing and selling used aircraft Embraer Asia Pacific PTE. Ltd. 100 % Singapore After sale services and support in Asia Embraer CAE Training Services (UK) Limited 51 % United Kingdom No operations Embraer Portugal S.A. 100 % Portugal Coordinates investments and economic activities in subsidiaries in Portugal Embraer - Portugal Estruturas Metálicas S.A 100 % Portugal Fabrication of steel parts and products for the aviation industry Embraer - Portugal Estruturas em Compósitos S.A. 100 % Portugal Fabrication of composite parts and products for the aviation industry Embraer (China) Aircraft Technical Services Co. Ltd. 100 % China Sales and maintenance for after sales support in China EZ Air Interior Limited 50 % Ireland Fabrication of interiors for commercial aircraft Embraer Overseas Ltd. 100 % Cayman Islands Financial operations raising and investing funds of the Embraer Group Embraer Spain Holding Co. SL 100 % Spain Concentrates corporate activities abroad ECC Investment Switzerland AG 100 % Switzerland Coordinates investments in subsidiaries abroad ECC Insurance & Financial Company Limited. 100 % Cayman Islands Covers financial guarantees offered in aircraft sale structuring Embraer Finance Ltd. 100 % Cayman Islands Support to the Company in structuring specific operations Refine, Inc. 100 % Cayman Islands SPE to finance sales of aircraft from the Commercial Aviation Fundo de Investimento em Participações Embraer Ventures 100 % Brazil Exclusive fund created with the objective of technological and financial aggregation based on investment and support to small and medium-sized |
Summary of quantitative information about lease liability | Lease commitments as at December 31, 2018 78.1 - (Less): short-term leases recognized on a straight-line basis as expense (1.9 ) - (Less): low-value (3.3 ) - Discounted using the incremental borrowinig rate (15.3 ) Lease liability as at January 1, 2019 57.6 |
Critical accounting estimates_2
Critical accounting estimates and significant judgements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Residual Value Guarantees | Additional variations in book balances Amounts exposed at 12.31.2019 -50% -25% Probable scenario +25% +50% Financial guarantee of residual value 129.6 (57.2 ) (53.4 ) (0.9 ) 92.9 123.8 Total 129.6 (57.2 ) (53.4 ) (0.9 ) 92.9 123.8 (*) The positive and negative variations of 25% and 50% were applied on the current rates. Effects of changes would impact results of discontinued operations. |
Assets held for sale and disc_2
Assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of assets and liabilities held for sale | ASSETS HELD FOR SALE Note 12.31.2019 Cash and cash equivalents 1,452.5 Financial investments 47.5 Trade accounts receivable, net 144.7 Customer and commercial financing 10.7 Contract assets 33.8 Inventories 1,079.6 Guarantee deposits 0.5 Income tax and social contribution 2.1 Other assets 111.5 Deferred income tax and social contribution 34.3 Property, plant and equipment 16 1,089.7 Intangible assets 18 1,157.5 Right of use 17 10.2 TOTAL 5,174.6 LIABILITIES HELD FOR SALE Note 12.31.2019 Trade accounts payable 474.7 Lease liability 17 9.4 Loans and financing 3,301.3 Other payables 132.5 Contract liabilities 746.1 Taxes and payroll charges payable 8.9 Income tax and social contribution 54.9 Financial guarantee and residual value guarantee 25 140.3 Unearned income 47.7 Provisions 26.1 39.5 Deferred income tax and social contribution 28.7 TOTAL 4,984.0 |
Summary of Financial Instruments | The following financial instruments are part of the disposal group as of December 31, 2019: Carrying amounts and Classification and measurement fair value comparison Amortized cost Fair value Fair value Book value Fair value (Note 28.2*) Financial assets Cash and cash equivalents 1,452.5 — 1,452.5 1,452.5 Financial investments 47.5 — 47.5 — Corporate bonds - 2.4% p.a. maturing on 2022 47.5 — 47.5 — Trade accounts receivable, net of expected credit losses of US$ 30.0 144.6 — 144.6 144.6 Customer and commercial financing 10.7 — 10.7 10.7 Guarantee deposits 0.5 — 0.5 0.5 Other assets 111.6 — 111.6 111.6 Financial liabilities Loans and financing 3,301.3 — 3,301.3 3,614.1 Notes – US$, maturing on 2020 to 2027 (Note 21.1) 2,949.9 — 2,949.9 3,264.5 Working capital – US$, maturing on 2021 to 2030 325.4 — 325.4 323.4 Working capital – EUR, maturing on 2023 to 2026 20.6 — 20.6 20.6 Bonds – US$, maturing on 2030 5.4 — 5.4 5.6 Lease liability 9.4 — 9.4 9.4 Trade accounts payable 474.7 — 474.7 474.7 Residual value guarantee (Note 25) — 129.6 Level 3 129.6 129.6 Other payables 132.5 — 132.5 132.5 * Note 28.2 includes disclosure of assumptions and methodologies applied by Management to calculate fair value of these financial assets and liabilities, as well as it presents the changes in fair value of financial instruments categorized within level 3 of fair value hierarchy. |
Summary of information about in operating income expense | 12.31.2019 12.31.2018 12.31.2017 REVENUE 2,844.5 2,943.4 3,312.9 Cost of sales and services (2,407.2 ) (2,373.6 ) (2,515.5 ) GROSS PROFIT 437.3 569.8 797.4 Operating Income (expense) Administrative (53.5 ) (46.5 ) (40.2 ) Selling (137.7 ) (152.8 ) (146.0 ) Research (29.8 ) (26.6 ) (27.0 ) Other operating income (expense), net (131.0 ) (25.6 ) (46.5 ) OPERATING PROFIT BEFORE FINANCIAL RESULT 85.3 318.3 537.7 Financial income, net (177.5 ) (177.7 ) (135.6 ) Foreign exchange gain (loss) , net 7.2 5.1 0.9 NET INCOME (LOSS) BEFORE TAXES ON INCOME (85.0 ) 145.7 403.0 Income tax expense (26.8 ) (55.6 ) 0.3 NET INCOME (LOSS) OF THE DISCONTINUED OPERATIONS (111.8 ) 90.1 403.3 |
Summary of information about in cash flows attribute to assets and liabilities held for sale discontinued operation | The Company’s cash flows attributable to assets and liabilities held for sale and results from the discontinued operation are as follows: 12.31.2019 12.31.2018 12.31.2017 Net cash generated by operating activities 301.9 466.4 710.3 Net cash used by investing activities (239.8 ) (295.5 ) (401.3 ) Net cash (used) generated by financing activities (19.1 ) (212.5 ) 555.7 43.0 (41.6 ) 864.7 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | 12.31.2019 12.31.2018 Cash and banks 585.0 125.4 585.0 125.4 Cash equivalents Private securities (i) 64.9 352.6 Fixed deposits (ii) 205.3 802.9 270.2 1,155.5 855.2 1,280.9 (i) Applications in Bank Deposit Certificates (CDB’s), issued by financial institutions in Brazil, available for redemption in up to 90 days without impact on contracted remuneration. (ii) Fixed term deposits in US Dollars with original maturities of 90 days or less. |
Financial investments (Tables)
Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Financial Instruments | 12.31.2019 12.31.2018 Fair value Total Amortised cost Fair value Fair value Total Financial instruments Private securities (i) — — — 50.4 — 50.4 Structured Notes (ii) 358.8 358.8 48.8 — 1,308.0 1,356.8 Investment funds 5.3 5.3 — — 2.4 2.4 Fixed Deposits (iii) — — — 457.3 0.1 457.4 Other (iv) 60.6 60.6 — — 59.9 59.9 424.7 424.7 48.8 507.7 1,370.4 1,926.9 Current portion 409.8 409.8 1.1 507.7 1,234.6 1,743.4 Non-current 14.9 14.9 47.7 — 135.8 183.5 (i) Private securities, being investments in Financial Bills, investments in Bank Deposit Certificates and Committed Transactions issued by Brazilian financial institutions, issued with maturities of more than 90 days. (ii) Structured notes, being: US$ 222.5 with credit risk of the financial institution issuer and the Brazilian government, and the amount of US$ 121.4 associated with credit risk of two financial institutions concurrently (US$ 1,103.7 and US$ 121.0, respectively, on December 31, 2018). In addition, the Company maintains financial investments in structured notes associated with its own credit risk in the amount of US$ 14.9 as of December 31, 2019 (US$ 83.2 as of December 31, 2018). The increase in profitability was obtained through a Credit default swap - CDS, a transaction which provides the right for early redemption of the note in case of a default event of the Company. After a default event, the note may be redeemed by the holder by the market value or original face value, which would result in a loss to the Company of all interest accrued so far. Default events that may anticipate the maturity of the notes are, among others: (a) the insolvency or judicial recovery of the Company; and (b) delinquency or restructuring of the Company’s debts in financing agreements. In case of default, the maturity dates of these notes will be accelerated, and the notes will be realized at market value, limited to a minimum of the initial investment. Any amount for which the market value exceeds the amount invested will be paid to the Company in the form of securities or loans of that amount. (iii) Fixed term deposits in US Dollars issued by financial institutions, with original maturities of 90 days or less from the date of hiring. (iv) Shares from Republic Airways Holdings, arising from the request for the judicial reorganization of the former entity Republic Airways and received by the Company as part of the restructuring plan (Note 25). |
Trade accounts receivable, net
Trade accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Trade Accounts Receivable, Net | 12.31.2019 12.31.2018 Foreign customers 149.6 325.7 Brazilian Air Force 7.0 21.8 Domestic customers 3.9 15.5 160.5 363.0 Allowance for doubtful accounts (11.1 ) (45.0 ) 149.4 318.0 |
Summary of Past Due Accounts Receivable | The amounts and maturities of these trade accounts receivable are shown below: 12.31.2019 12.31.2018 Current 104.2 217.0 Up to 90 days 25.6 52.6 From 91 to 180 days 10.3 13.6 More than 180 days 20.4 79.8 160.5 363.0 |
Summary of Changes in Estimated Losses on Settlement | Changes in estimated credit losses year over year are shown below: 12.31.2019 12.31.2018 12.31.2017 Beginning balance (45.0 ) (52.9 ) (41.6 ) Additions/Reversal (4.4 ) 11.9 (12.2 ) Write-off 7.5 3.6 5.2 Foreign exchange variation 0.8 (7.6 ) (4.3 ) Assets held for sale 30.0 — — Ending balance (11.1 ) (45.0 ) (52.9 ) |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Derivative Financial Instruments | Purpose Risk Settlement date 12.31.2019 12.31.2018 Derivatives designated as hedge accounting 1.4 1.2 Expenses in Brazilian Reais (i) Exchange rate 2019 — (7.5 ) 2020 (0.1 ) — Project development (ii) Interest rate 2019 — 0.9 2022 — 5.2 2023 1.5 0.3 Export Interest rate 2027 — 2.3 Other Derivatives (3.8 ) 0.2 Recourse and non-recourse Interest rate 2019 — 0.3 Acquisition of property, plant and Interest rate 2019 (0.1 ) (0.1 ) equipment (v) Export (vi) Exchange rate 2019 0.3 — Expenses in Brazilian Reais (i) Exchange rate 2019 (4.0 ) — Total (2.4 ) 1.4 (i) Zero-cost collar derivative financial instruments, designated as cash flow hedge amounting to US$ 98.1 equivalent to R$ 372.7 million, with purchase of PUT at the weighted average exercise price of R$ 3.80 and sale of CALL at the weighted average exercise price of R$ 4.40 for 2019. (ii) Derivative financial instruments (interest rate swaps), designated as fair value hedge, amounting to R$ 165.7 million, equivalent to US$ 41.1, of the Export Financing and Project Development lines subject to a weighted average fixed interest rate of 3.5% p.a. for a floating weighted average rate equivalent to 31.46% of the CDI. (iii) Derivative financial instruments (interest rate swaps), which converted the amount of US$ 2.8 from a floating interest rate equivalent to 65% of LIBOR 1 month + 2.4375% p.a. to a fixed weighted average interest rate of 5.23 % p.a. (iv) Derivative financial instruments (Non-Deliverable (v) Derivative financial instruments (Non-Deliverable |
Summary of Fair Value of Derivative Financial Instruments | On December 31, 2019, and December 31, 2018, the fair value of derivative financial instruments was recognized in the Company’s assets and liabilities as follows: 12.31.2019 12.31.2018 Assets Current portion 1.4 5.4 Non-current 0.7 4.1 Liabilities Current portion (4.5 ) (8.1 ) Net derivative financial instruments (2.4 ) 1.4 |
Collateralized accounts recei_2
Collateralized accounts receivable and recourse and non-recourse debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Collateralized Accounts Receivable | 12.31.2019 12.31.2018 Estimated residual value of leased assets — 215.8 Minimum lease payments receivable — 122.6 Guaranteed operation (cash inflow) 17.6 27.0 Impairment — (129.5 ) Investment in sales-type lease 17.6 235.9 Current portion 4.0 218.5 Non-current 13.6 17.4 |
Summary of Recourse and Non-Recourse Debt | 10.2 Recourse and non-recourse 12.31.2019 12.31.2018 Recourse debt 10.6 330.6 Non-recourse 7.0 10.8 17.6 341.4 Current portion 4.0 324.0 Non-current 13.6 17.4 |
Guarantee deposits (Tables)
Guarantee deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Guarantee Deposits | 12.31.2019 12.31.2018 Sales financing guarantees (i) — 314.4 Sales structure guarantees (ii) — 25.3 Other 0.6 10.0 0.6 349.7 Current portion 0.1 339.9 Non-current 0.5 9.8 (i) Financial investments denominated in US Dollars, tied to structured operations from Commercial Aviation aircraft, whose waive depended on the completion of these structures and the settlement of the obligation of recourse and non-recourse (ii) US dollar amounts deposited in an escrow account as collateral for the financing of certain aircraft sold where Embraer serves as secondary guarantor. As of December 31, 2019, the obligation has been settled and the guarantee has ended. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Inventories | 12.31.2019 12.31.2018 Raw materials 499.2 897.6 Work in process 439.7 891.6 Spare parts 224.6 424.3 Finished goods (i) 106.0 146.4 Held by third parties 50.7 108.7 Inventory in transit 21.0 91.1 Consumption materials 24.2 48.3 Used aircraft (ii) 5.9 46.0 Advances to suppliers 29.6 31.4 Loss on adjustment to market value (iii) (0.9 ) (7.7 ) Loss due to obsolescence (iv) (95.6 ) (170.7 ) 1,304.4 2,507.0 |
Summary of Provision Recorded for Adjustment to Realizable Value | (iii) Changes in the provision for adjustments to the realizable value of used aircraft were as follows: 12.31.2019 12.31.2018 12.31.2017 Beginning balance (7.7 ) (17.2 ) (19.9 ) Additions (5.2 ) (8.8 ) (8.2 ) Disposals 11.2 18.3 10.9 Assets held for sale 0.8 — — Ending balance (0.9 ) (7.7 ) (17.2 ) |
Schedule of Inventories Provision for Obsolescence | (iv) Changes in the provision for obsolescence were as follows: 12.31.2019 12.31.2018 12.31.2017 Beginning balance (170.7 ) (153.2 ) (138.1 ) Additions (50.3 ) (59.8 ) (48.7 ) Disposals 29.8 41.5 37.0 Foreign exchange loss 0.9 0.8 (3.4 ) Assets held for sale 94.7 — — Ending balance (95.6 ) (170.7 ) (153.2 ) |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Assets | 12.31.2019 12.31.2018 Taxes recoverable (i) 94.4 132.2 Court-mandated escrow deposits (iii) 30.1 43.0 Prepaid expenses 22.5 24.3 Advances for services to be rendered 9.6 3.2 Other debtors (ii) 4.9 61.6 Loan with a joint operation 4.2 23.2 Advances to employees 1.9 8.5 Other 14.3 13.0 181.9 309.0 Current portion 120.1 203.4 Non-current 61.8 105.6 (i) Taxes recoverable 12.31.2019 12.31.2018 ICMS (State Value-added Tax) and IPI (Excise Tax) 65.1 85.5 PIS (Social Integration Program) and COFINS 12.0 24.5 Income tax and social security on net income 7.5 7.7 ISS (Service tax) 5.3 5.9 Other 4.5 8.6 94.4 132.2 Current portion 64.6 93.7 Non-current portion 29.8 38.5 (ii) Refers to deposits arising from lawsuits, substantially to federal taxes and contributions, in which there is a liability recorded Note26. (iii) Corresponds mainly to rework done on products supplied by third parties, which will be reimbursed according to the contractual terms and credits negotiated with certain suppliers that will be consumed over time from other receivables from suppliers. |
Interest in entities (Tables)
Interest in entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Subsidiaries with Participation of Non-Controlling Shareholders | Non-controlling Embraer Group Comprehensive Entity Country interest% Non-controlling interest income OGMA - Indústria Aeronática de Portugal S.A. Portugal 65.0 % 35.0 % 53.9 3.0 Embraer CAE Training Services Ltd. United Kingdom 51.0 % 49.0 % — — Visiona Tecnologia Espacial S.A. Brazil 51.0 % 49.0 % 20.0 (0.5 ) Embraer CAE Training Services United States of America 51.0 % 49.0 % 23.0 10.2 96.9 |
Summary of Financial Position of the Group Entities that have Non-Controlling Interest | The financial position of the most significant entity of the group with non-controlling 12.31.2019 12.31.2018 Cash and cash equivalents 24.3 12.9 Current assets 180.2 168.9 Non current assets 60.8 61.0 Current liabilities 86.5 74.5 Non current liabilities 0.4 0.1 Noncontrolling interest 53.9 54.3 12.31.2019 12.31.2018 Revenue 277.5 162.9 Net income for the year 3.0 6.6 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Balances and Transactions With Related Parties | 12.31.2019 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 75.3 — — — 1.1 — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — — — — (5.1 ) — Brazilian Air Force 364.4 226.9 — — — (35.9 ) Marinha do Brasil 0.6 4.4 — — — (2.9 ) Embraer Prev - Sociedade de Previdência Complementar — 4.7 — — — (19.7 ) Brazilian Army 13.0 7.4 — — — 6.8 Financiadora de Estudo e Projetos – FINEP — 12.7 — 30.6 (1.7 ) — 453.3 256.1 — 30.6 (5.7 ) (51.7 ) 12.31.2018 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 326.2 314.3 9.4 — (4.2 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — 71.8 — 119.7 (8.3 ) — Brazilian Air Force 42.3 90.3 — — — (176.2 ) Marinha do Brasil 0.9 — — — — (12.6 ) Caixa Econômica Federal — — — — — — Embraer Prev - Sociedade de Previdência Complementar — 0.2 — — — (14.4 ) Brazilian Army — 4.3 — — — — Financiadora de Estudo e Projetos – FINEP — 13.0 — 43.5 (2.3 ) — 369.4 493.9 9.4 163.2 (14.8 ) (203.2 ) 12.31.2017* Financial Operating Results Results Banco do Brasil S.A. (0.5 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES (14.7 ) — Brazilian Air Force — (23.7 ) Marinha do Brasil — (6.2 ) Embraer Prev - Sociedade de Previdência Complementar — (22.9 ) Brazilian Army — (1.2 ) Financiadora de Estudo e Projetos – FINEP (2.9 ) — (18.1 ) (54.0 ) |
Summary of Remuneration of Key Management Personnel | 12.31.2019 12.31.2018 Short-term benefits (i) 9.0 10.0 Share based payment 3.2 3.3 Labor contract termination 1.2 1.0 13.4 14.3 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Weighted Average Rate | 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 Weighted average Class of assets 12.31.2019 12.31.2018 Buildings and improvements 3.5 % 3.8 % Installations 8.4 % 4.9 % Machinery and equipment 9.1 % 10.0 % Furniture and fixtures 12.0 % 9.3 % Vehicles 32.0 % 22.7 % Aircraft 8.9 % 11.0 % Computers and peripherals 26.4 % 27.6 % Tooling 13.9 % 16.5 % Other assets 0.2 % 0.1 % Exchange pool program assets 2.9 % 3.7 % |
Summary of Property Plant and Equipment | 12.31.2019 Land Buildings and Installations Machinery and Furniture Vehicles Aircraft (i) Computers and Tooling Other Exchange Construction in progress Total Cost 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 Additions 0.4 5.3 — 43.6 5.6 0.6 31.7 5.0 28.2 10.3 91.8 62.0 284.5 Disposals — (8.3 ) (3.7 ) (60.2 ) (22.4 ) (3.0 ) — (45.4 ) (26.1 ) (1.0 ) (19.0 ) (0.8 ) (189.9 ) Impairment — — — (14.1 ) — — (4.6 ) — (1.8 ) — — — (20.5 ) Reclassifications* — 30.3 6.3 11.3 (1.4 ) 0.1 (40.4 ) (6.6 ) 7.0 (7.6 ) (21.8 ) (39.3 ) (62.1 ) Interest on capitalized assets — — — — — — — — — — — — — Translation adjustments — (0.6 ) (0.1 ) (1.9 ) (0.1 ) (0.1 ) — (0.2 ) — — (6.1 ) 0.3 (8.8 ) Assets held for sale (6.3 ) (317.6 ) (104.8 ) (469.3 ) (17.8 ) (4.5 ) (48.2 ) (41.3 ) (192.6 ) (3.8 ) (374.7 ) (67.7 ) (1,648.6 ) At December 31, 2019 5.1 459.2 60.1 481.8 38.1 10.4 14.7 101.5 443.8 25.5 321.0 48.2 2,009.4 Accumulated depreciation 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 ) Depreciation — (15.2 ) (3.7 ) (32.9 ) (4.6 ) (1.0 ) (1.3 ) (7.0 ) (25.2 ) — (12.5 ) — (103.4 ) Disposals — 7.4 4.8 67.7 19.1 3.3 — 42.5 7.3 0.3 9.5 — 161.9 Reclassifications* — (2.9 ) 2.8 5.6 — — 16.9 1.7 — (7.3 ) 11.8 — 28.6 Interest on capitalized assets — (1.6 ) — — — — — — — — — — (1.6 ) Translation adjustments — (1.5 ) — 1.4 (0.1 ) 0.1 — 0.2 (0.1 ) — 5.2 — 5.2 Assets held for sale — 101.6 76.1 174.8 8.7 2.9 19.0 28.4 36.9 — 110.5 — 558.9 At December 31, 2019 — (131.6 ) (25.6 ) (301.5 ) (21.5 ) (8.5 ) (4.1 ) (88.7 ) (352.6 ) (18.4 ) (88.0 ) — (1,040.5 ) Net 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 At December 31, 2019 5.1 327.6 34.5 180.3 16.6 1.9 10.6 12.8 91.2 7.1 233.0 48.2 968.9 12.31.2018 Land Buildings and Installations Machinery and Furniture and Vehicles Aircraft (i) Computers and Tooling Other Exchange Construction in 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 — — — (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 Installations Machinery and Furniture Vehicles Aircraft (i) Computers and Tooling Other Exchange 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 — — — (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 * Non-cash transactions |
Right-of-use assets and lease_2
Right-of-use assets and lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Summary of quantitative information about right-of-use assets | 12.31.2019 Right of use assets Lease Liabilities Land Buildings land Machinery and Vehicles Other Total At January 1, 2019 — 56.8 0.1 0.6 0.1 57.6 57.6 Additions 4.0 13.5 — 0.3 0.3 18.1 18.1 Depreciation expense (1.1 ) (8.6 ) (0.1 ) (0.5 ) (0.1 ) (10.4 ) — Disposals — (17.3 ) — — — (17.3 ) (17.3 ) Interest expense — — — — — — 6.0 Payments — — — — — — (11.8 ) Translation adjustments — — — — — — (4.6 ) Assets and liabilities held for sale (2.9 ) (7.2 ) — (0.1 ) — (10.2 ) (9.4 ) At December 31, 2019 — 37.2 — 0.3 0.3 37.8 38.6 Current portion 5.0 Non-current 33.6 |
Summary of depreciation rates right of use assets | Below we present the annual weighted average depreciation rates by class of right-of-use: Class of assets Weighted average 12.31.2019 Land 29.9 % Buildings and improvements 12.2 % Machinery and equipment 69.6 % Vehicles 51.0 % Other assets 19.9 % |
Summary of weighted average rates of discount leases | Below we present the discount rates applied to lease contracts based on the weighted average nominal rate considering the remaining contracts term by year: Deadline of the contract and discount rate Deadline of the contract Rate%(p.y) 1 year 3.28 2 years 3.95 3 years 4.68 4 years 5.47 After 4 years 6.91 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Intangible Assets Internally Developed and Acquired From Third Party | 12.31.2019 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2018 1,916.3 1,341.2 43.4 3.5 6.3 350.3 10.4 68.8 3,740.2 Additions 188.2 31.3 5.9 0.1 3.1 19.3 — 35.4 283.3 Contributions from suppliers (4.5 ) — — — — — — — (4.5 ) Disposals — — — — — (2.0 ) — — (2.0 ) Impairment — (55.6 ) — — — — — — (55.6 ) Interest on capitalized assets 4.9 1.9 — — — — — — 6.8 Translation adjustments — — — — — — (0.4 ) — (0.4 ) Assets held for sale (2,104.9 ) (26.5 ) — — — (153.9 ) — (29.2 ) (2,314.5 ) At December 31, 2019 — 1,292.3 49.3 3.6 9.4 213.7 10.0 75.0 1,653.3 Acumulated amortization At December 31, 2018 (1,053.6 ) (512.2 ) (32.4 ) (1.2 ) (2.9 ) (232.8 ) — (6.3 ) (1,841.4 ) Amortization (3.1 ) (75.1 ) (0.4 ) (0.1 ) (0.8 ) (14.4 ) — (2.0 ) (95.9 ) Amortization of contribution from suppliers 1.0 21.4 — — — — — — 22.4 Disposals — — — — — 1.2 — — 1.2 Interest on capitalized assets — (2.4 ) — — — — — — (2.4 ) Assets held for sale 1,055.7 18.2 — — — 80.4 — 2.6 1,156.9 At December 31, 2019 — (550.1 ) (32.8 ) (1.3 ) (3.7 ) (165.6 ) — (5.7 ) (759.2 ) Intangible, net At December 31, 2018 862.7 829.0 11.0 2.3 3.4 117.5 10.4 62.5 1,898.8 At December 31, 2019 — 742.2 16.5 2.3 5.7 48.1 10.0 69.3 894.1 12.31.2018 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Additions 209.3 41.3 4.0 0.1 2.5 8.0 — 25.1 290.3 Contributions from suppliers (125.5 ) — — — — — — — (125.5 ) Disposals — — — — — (3.4 ) — — (3.4 ) Reclassifications — — 5.9 (2.4 ) (10.1 ) 2.4 — (1.9 ) (6.1 ) Impairment — (58.5 ) — — — — — — (58.5 ) Interest on capitalized assets 7.3 2.7 — — — — — — 10.0 Translation adjustments — — — — — — (1.6 ) — (1.6 ) At December 31, 2018 1,916.3 1,341.2 43.4 3.5 6.3 350.3 10.4 68.8 3,740.2 Acumulated amortization At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4 ) (1,752.6 ) Amortization (29.6 ) (51.1 ) (1.8 ) (0.1 ) (0.9 ) (28.1 ) — (1.2 ) (112.8 ) Amortization of contribution from suppliers 8.0 14.0 — — — — — — 22.0 Disposals — — — — — 2.2 — — 2.2 Reclassifications — — (2.7 ) — 4.8 — — (0.7 ) 1.4 Interest on capitalized assets (0.2 ) (1.4 ) — — — — — — (1.6 ) At December 31, 2018 (1,053.6 ) (512.2 ) (32.4 ) (1.2 ) (2.9 ) (232.8 ) — (6.3 ) (1,841.4 ) Intangible, net At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 At December 31, 2018 862.7 829.0 11.0 2.3 3.4 117.5 10.4 62.5 1,898.8 12.31.2017 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total At December 31, 2016 1,515.1 1,320.3 30.8 51.8 13.5 311.4 21.0 32.8 3,296.7 Additions 313.8 76.9 3.0 2.5 1.9 56.3 — 16.1 470.5 Contributions from suppliers (86.0 ) — — — — — — — (86.0 ) Disposals — — — — (1.5 ) — — — (1.5 ) Reclassifications 71.3 3.6 (0.3 ) (48.5 ) — (24.4 ) — (1.7 ) — Impairment — (49.9 ) — — — — (8.7 ) (1.9 ) (60.5 ) Interest on capitalized assets 11.0 4.8 — — — — — — 15.8 Translation adjustments — — — — — — (0.3 ) 0.3 — At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Acumulated amortization At December 31, 2016 (992.4 ) (424.9 ) (25.6 ) — (5.7 ) (179.8 ) — (3.7 ) (1,632.1 ) Amortization (57.4 ) (56.7 ) (2.6 ) (0.1 ) (1.1 ) (27.1 ) — (1.2 ) (146.2 ) Amortization of contribution from suppliers 13.5 13.8 — — — — — — 27.3 Reclassifications 4.5 (4.3 ) 0.3 (1.0 ) — — — 0.5 — Interest on capitalized assets — (1.6 ) — — — — — — (1.6 ) At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4 ) (1,752.6 ) Intangible, net At December 31, 2016 522.7 895.4 5.2 51.8 7.8 131.6 21.0 29.1 1,664.6 At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 |
Impairment of assets (Tables)
Impairment of assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairment Of Assets [Abstract] | |
Disclosure Of Detailed Information About Sensitivity Analysis Of Impairment Test | The table below presents the sensitivity analysis of impairment test performed for CGU of Legacy / Praetor platform (Executive Aviation business unit): Assumption Factor Sensitivity Impact in impairment test Estimated aircraft deliveries during the useful life of platform up to 30 years and keeping current market share 1.000-1.100 5 % - Increase or decrease of impairment loss by US$ 65 if the level of aircrafts deliveries fluctuates positively or negatively in 5%. Discount rate 11.3 % 1 percentage point - Increase of 1 pp. in discount rate would increase impairment loss by US$ 64. - Reduction of 1 pp. in discount rate would change impairment loss recognized of US$ 71.6 to zero. Foreign exchange rate (USD/R$) - FX spot rate applied to translate cash flows in foreign currency (R$) R$ 4.0307 10 % - Reduction of 10% in spot rate as of 12/31/2019 would increase impairment loss by US$ 55. - Increase of 10% in spot rate as of 12/31/2019 would decrease impairment loss by US$ 45. |
Trade accounts payable (Tables)
Trade accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Trade Accounts Payable | 12.31.2019 12.31.2018 Foreign suppliers 300.9 574.0 Risk partners (i) 0.6 200.2 Domestic suppliers 56.5 117.9 358.0 892.1 (i) The Company’s risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components, and fuselage parts. Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners. Outstanding transactions related to Commercial Aviation were reclassified to liabilities held for sale Note 4. |
Loans and financing (Tables)
Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about loans and financing [line items] | |
Summary of Loans and Financing | Currency Contractual interest rate - % Effective interest rate - % Maturity 12.31.2019 12.31.2018 Other currencies: 5.05% to 6.38% 5.15% to 6.74% 2027 (i) — 2,941.8 US$ 3.07% a 5.87% 3.11% a 5.87% 2030 — 124.1 Working capital Libor 6M + 2.60% Libor 6M + 2.60% 2021 — 219.8 Euro 0.00% 0.00% 2026 — 19.60 Property, plant and equipment US$ 1.90% 1.90% 2037 47.9 55.8 Libor 1M + 2.44% a 2.5% Libor 1M + 2.44% a 2.5% 2024 47.9 3,361.1 In local currency: Project development R$ 3.50% 3.50% 2023 43.1 248.0 TJLP + 0.00% to 6.00% TJLP + 0.00% to 6.00% 2022 Export Credit Note R$ 11.00% 11.00% 2019 — 38.5 43.1 286.5 Total 91.0 3,647.6 Current portion 14.9 179.3 Non-current 76.1 3,468.4 |
Summary of Maturities of Long term Financing Agreements | On December 31, 2019, the changes in loans and financing were as follows: 12.31.2019 12.31.2018 12.31.2017 Opening balance 3,647.6 4,198.3 3,759.9 Principal addition 400.5 124.0 972.9 Interest addition 186.3 218.0 192.7 Principal payment (645.9 ) (596.3 ) (540.2 ) Interest payment (188.1 ) (212.7 ) (186.4 ) Foreing exchange (8.2 ) (83.7 ) (0.6 ) Reclassification to held for sale (3,301.2 ) — — Ending balance 91.0 3,647.6 4,198.3 As of December 31, 2019, the maturity schedules of the long-term financing are: Year 2021 27.7 2022 11.7 2023 8.5 2024 0.1 After 2024 28.1 76.1 |
Non-current assets held for sale [member] | |
Disclosure of detailed information about loans and financing [line items] | |
Summary of Maturity of Loans and Financing | As of December 31, 2019, the maturity schedules of the loans and financing classified as “held for sale” are (Note 4.2): Year 2020 200.1 2021 203.0 2022 503.4 2023 517.8 2024 12.9 After 2024 1,864.1 3,301.3 |
Other payables (Tables)
Other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Other Payables | 12.31.2019 12.31.2018 Provisions related to payroll (i) 58.4 92.8 Provision for employee profit sharing 20.9 34.3 Other accounts payable (ii) 54.0 114.6 Mutual with jointly controlled operation — 23.2 Long-term incentive (iii) 16.4 16.9 Insurance 7.1 6.2 Contractual obligations (iv) 6.7 17.5 Commission payable 11.3 10.9 Brazilian air force 0.4 0.6 175.2 317.0 Current portion 162.5 288.4 Non-current 12.7 28.6 (i) Refers to personnel obligations and their respective charges recorded in the financial statements. (ii) Represents a provision for expenses already incurred as of the date of the consolidated financial statements and for which payments are made during the following month. (iii) Refers to the Long-Term Incentive (LTI) granted to employees of the Company in the form of phantom shares as described in Note 30. (iv) Represents the recorded amounts regarding maintenance costs of aircraft leased through operating leases and contractually agreed upon commitments for the sale of new aircraft or the expiration of residual financial guarantees. |
Taxes and payroll charges pay_2
Taxes and payroll charges payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Taxes and Payroll Charges Payable | 12.31.2019 12.31.2018 INSS (social security contribution) (i) 52.6 105.2 IPI (manufacturing tax) 4.2 0.3 PIS and COFINS (ii) 3.6 1.6 IRRF (withholding tax) 1.4 11.8 Others 6.5 7.7 68.3 126.6 Current portion 54.9 68.4 Non-current portion 13.4 58.2 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: 12.31.2019 12.31.2018 31.12.2017 Temporarily non-deductible 65.2 39.7 (76.1 ) Tax loss carryforwards 0.2 0.5 4.5 Functional currency effect of the non monetary assets (297.4 ) (323.4 ) (206.0 ) Gains not realized from sales of the Company to subsidiairies 23.1 22.7 15.4 Effect of differences by fixed asset (12.0 ) 7.5 (8.1 ) Differences between basis: account x tax (50.7 ) 20.6 25.7 Deferred tax assets (liabilities), net (271.6 ) (232.4 ) (244.6 ) Total deferred tax asset 0.7 21.6 13.4 Total deferred tax liability (272.3 ) (254.0 ) (258.0 ) |
Changes in Deferred Income Tax | Changes in deferred income tax that affected profit or loss were as follows: From the statement of income Other comprehensive income Total At December 31, 2016 (292.4 ) 38.8 (253.6 ) Temporarily non-deductible 26.6 — 26.6 Tax loss carryforwards (23.8 ) — (23.8 ) Functional currency effect of the non monetary assets (5.0 ) — (5.0 ) Provision Gain not realized at sales from Controlling company to subsidiairies (1.0 ) — (1.0 ) Effect of differences by fixed asset 23.0 — 23.0 Differences between basis: account x tax (6.9 ) (3.9 ) (10.8 ) At December 31, 2017 (279.5 ) 34.9 (244.6 ) Temporarily non-deductible 115.8 — 115.8 Tax loss carryforwards (4.0 ) — (4.0 ) Functional currency effect of the non monetary assets (117.4 ) — (117.4 ) Gains not realized from sales of Parent Company to subsidiairies 7.3 — 7.3 Effect of differences by fixed asset 15.6 — 15.6 Differences between basis: account x tax 3.9 (9.1 ) (5.2 ) Discontinued operation 8.1 (8.0 ) 0.1 At December 31, 2018 (250.2 ) 17.8 (232.4 ) Temporarily non-deductible 14.3 — 14.3 Tax loss carryforwards 1.1 — 1.1 Functional currency effect of the non monetary assets 16.4 — 16.4 Gains not realized from sales of Parent Company to subsidiairies 0.4 — 0.4 Effect of differences by fixed asset (47.7 ) — (47.7 ) Differences between basis: account x tax (70.3 ) (1.0 ) (71.3 ) Discontinued operation 19.8 27.8 47.6 At December 31, 2019 (316.2 ) 44.6 (271.6 ) |
Reconciliation of Income Tax Expense | 24.2 Reconciliation of income tax expense 12.31.2019 12.31.2018 12.31.2017 Loss before income tax (101.2 ) (282.0 ) (95.1 ) Income tax and social contribution at the nominal Brazilian enacted tax rate - 34% 34.4 95.9 32.3 Tax on profits of overseas subsidiaries (72.3 ) (33.2 ) (9.8 ) Functional currency effect of the non monetary assets 16.4 (117.4 ) (5.0 ) Research and development tax incentives 23.0 27.1 42.8 Interest on own capital — 3.0 16.9 Fiscal credits (recognized and non recognized) 0.2 (8.5 ) 9.1 Tax rate diference (5.3 ) 26.8 3.0 Other difference between IFRS and fiscal basis* (99.9 ) 27.0 (117.5 ) (137.9 ) (75.2 ) (60.5 ) Income tax and social contribution income (expense) benefit as reported (103.5 ) 20.7 (28.2 ) Current income tax and social contribution expense as reported (37.5 ) (8.6 ) (41.1 ) Deferred income tax and social contribution income (expense) benefit as reported (66.0 ) 29.3 12.9 * Others and differences between accounting and fiscal basis mainly refer to: permanent additions and exclusions, realization of foreign exchange gain or loss, transfer pricing adjustments and differences between accounting basis and fiscal treatments in the income tax calculation (depreciation of fixed assets, provision for inventory losses, among others). |
Financial Guarantees and Resi_2
Financial Guarantees and Residual Value Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Financial Guarantees and Residual Guarantees | 12.31.2019 12.31.2018 Financial guarantee of residual value — 125.4 Accounts payable (i) — 15.1 Financial guarantee — 11.6 — 152.1 Current portion — 51.0 Non-current — 101.1 |
Activity on Financial Guarantees and Residual Guarantees | The movement on the financial guarantees and residual guarantees is shown below: Financial guarantee Financial guarantee of residual value Accounts payable Total At December 31, 2016 22.7 122.2 65.9 210.8 Additions 1.2 — 3.7 4.9 Interest Additions — — 2.0 2.0 Disposals — — (40.8 ) (40.8 ) Market value — (13.3 ) — (13.3 ) Guarantee amortization (6.8 ) — — (6.8 ) At December 31, 2017 17.1 108.9 30.8 156.8 Interest Additions — — 1.5 1.5 Disposals — — (17.2 ) (17.2 ) Market value — 16.5 — 16.5 Guarantee amortization (5.5 ) — — (5.5 ) At December 31, 2018 11.6 125.4 15.1 152.1 Interest Additions — — 0.6 0.6 Disposals — — (15.7 ) (15.7 ) Market value — 4.2 — 4.2 Guarantee amortization (0.9 ) — — (0.9 ) Liabilities held for sale (10.7 ) (129.6 ) — (140.3 ) At December 31, 2019 — — — — |
Provisions and contingent lia_2
Provisions and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Provision | 26.1 Provisions 12.31.2019 12.31.2018 Product warranties (i) 67.1 98.0 Provisions for labor, taxes and civil (ii) 66.4 58.4 Taxes 41.7 31.4 Post retirement benefits 11.7 31.7 Environmental provision 0.3 2.4 Other 15.7 20.5 202.9 242.4 Current portion 103.1 116.9 Non-current 99.8 125.5 |
Summary of Change in Provision | Change in provision: Product warranties Provisions civil Post retirement Taxes Voluntary Environment Other Total At December 31, 2016 94.1 93.1 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 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 Additions 54.2 23.8 — 63.9 — 2.3 — 144.2 Interest — 5.2 2.2 — — — — 7.4 Used/payments (29.7 ) (7.1 ) — (54.0 ) — (1.7 ) (0.4 ) (92.9 ) Reversals (43.2 ) (10.6 ) (1.8 ) — — — — (55.6 ) Translation adjustments (0.2 ) (1.9 ) (0.7 ) 0.4 — (0.1 ) (0.6 ) (3.1 ) Liabilities held for sale (12.0 ) (1.4 ) (19.7 ) — — (2.6 ) (3.8 ) (39.5 ) At December 31, 2019 67.1 66.4 11.7 41.7 — 0.3 15.7 202.9 |
Summary of Labor, Tax and Civil Provisions | 26. 1.1 Labor, tax and civil provisions 12.31.2019 12.31.2018 Tax related IRPJ (i) 13.6 9.2 PIS and COFINS 5.3 5.3 Social security contributions (ii) 2.4 2.4 Import taxes (iii) 0.8 0.8 FUNDAF — 0.1 Others — 0.2 22.1 18.0 Labor related Plurimas 461/1379 (iv) 9.6 10.0 Reintegration (v) 6.0 7.0 Overtime (vi) 7.6 6.0 Dangerousness (vii) 1.4 1.0 Indemnity (viii) 4.9 3.1 Third parties 1.5 0.5 Others 12.9 12.4 43.9 40.0 Civil related Indemnity (ix) 0.4 0.4 0.4 0.4 66.4 58.4 Current portion 21.4 20.7 Non-current portion 45.0 37.7 (i) The Company has obtained an 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) Requests for payment of alleged differences in relation to overtime. (vii) Requests that seek recognition of hazardous activity. (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. |
Post-retirement benefits (Table
Post-retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Post Retirement Benefits | 12.31.2019 12.31.2018 Medical benefits plan Brazil 9.0 27.9 Medical benefits plan subsidiaries abroad 2.7 3.8 Post-retirement benefits 11.7 31.7 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Financial Instruments by Category | Financial instruments by category 12.31.2019 Note Amortized cost Fair value through profit or loss Total Assets Cash and cash equivalents 6 855.2 — 855.2 Financial investments 7 — 424.7 424.7 Guarantee Deposits 11 0.6 — 0.6 Collateralized accounts receivable 10 17.6 — 17.6 Contract assets 461.9 — 461.9 Trade accounts receivable, net 8 149.4 — 149.4 Derivative financial instruments 9 — 2.1 2.1 Other Assets 34.5 — 34.5 1,519.2 426.8 1,946.0 Liabilities Loans and financing 21 91.0 — 91.0 Trade accounts payable and others liabilities 550.8 — 550.8 Lease liability 38.6 — 38.6 Derivative financial instruments 9 — 4.5 4.5 680.4 4.5 684.9 12.31.2018 Note Amortized Fair value through other comprehensive income Fair value through profit or loss Total Assets Cash and cash equivalents 6 1,280.9 — — 1,280.9 Financial investments 7 48.8 507.8 1,370.3 1,926.9 Guarantee Deposits 11 349.7 — — 349.7 Collateralized accounts receivable 10 235.9 — — 235.9 Contract assets 358.0 — — 358.0 Trade accounts receivable, net 8 318.0 — — 318.0 Customer and commercial financing 11.7 — — 11.7 Derivative financial instruments 9 — — 9.5 9.5 Other Assets 66.2 — — 66.2 2,669.2 507.8 1,379.8 4,556.8 Liabilities Loans and financing 21 3,647.7 — — 3,647.7 Trade accounts payable and others liabilities 1,550.5 — — 1,550.5 Financial guarantee and residual value 25 15.0 — 125.4 140.4 Derivative financial instruments 9 — — 8.1 8.1 5,213.2 — 133.5 5,346.7 |
Summary of Fair Value of Liabilities Measurement Using Significant Unobservable Inputs | The following table lists the Company’s financial assets and liabilities by level within the fair value hierarchy. The Company’s assessment of the significance of an 12.31.2019 Fair value through profit or loss Other categories Note Level 2 Level 3 Total of financial instruments Fair value Book value Assets Cash and cash equivalents 6 — — — 855.2 855.2 855.2 Financial investments 7 364.1 60.6 424.7 — 424.7 424.7 Guarantee deposits 11 — — — 0.6 0.6 0.6 Collateralized accounts receivable 10 — — — 17.6 17.6 17.6 Contract assets — — — 461.9 461.9 461.9 Trade accounts receivable, net 8 — — — 149.4 149.4 149.4 Derivative financial instruments 9 2.1 — 2.1 — 2.1 2.1 Other assets — — — 34.5 34.5 34.5 366.2 60.6 426.8 1,519.2 1,946.0 1,946.0 Liabilities Loans and financing 21 — — — 91.0 85.1 91.0 Trade accounts payable and others liabilities — — — 550.8 550.8 550.8 Lease liability 17 — — — 38.6 38.6 38.6 Derivative financial instruments 9 4.5 — 4.5 — 4.5 4.5 4.5 — 4.5 680.4 679.0 684.9 12.31.2018 Fair value through profit or loss Other categories Note Level 2 Level 3 Total of financial instruments Fair value Book value Assets Cash and cash equivalents 6 — — — 1,280.9 1,280.9 1,280.9 Financial investments 7 1,818.2 59.9 1,878.1 48.8 1,926.1 1,926.9 Guarantee deposits 11 — — — 349.7 349.7 349.7 Collateralized accounts receivable 10 — — — 235.9 235.9 235.9 Contract assets — — — 358.0 358.0 358.0 Trade accounts receivable, net 8 — — — 318.0 318.0 318.0 Customer and commercial financing — — — 11.7 11.7 11.7 Derivative financial instruments 9 9.5 — 9.5 — 9.5 9.5 Other assets — — — 66.2 66.2 66.2 1,827.7 59.9 1,887.6 2,669.2 4,556.0 4,556.8 Liabilities Loans and financing 21 — — — 3,647.7 3,756.8 3,647.7 Trade accounts payable and others liabilities — — — 1,550.5 1,550.5 1,550.5 Financial guarantee and of residual value 25 — 125.4 125.4 15.0 140.4 140.4 Derivative financial instruments 9 8.1 — 8.1 — 8.1 8.1 8.1 125.4 133.5 5,213.2 5,455.8 5,346.7 |
Summary of Company's Financial Assets and Liabilities | Fair value of financial instruments using significant unobservable inputs (level 3) Assets Liabilities At December 31, 2017 59.6 108.9 Changes in fair value 0.3 16.5 At December 31, 2018 59.9 125.4 Changes in fair value 0.7 4.2 Reclassification to held for sale — (129.6 ) At December 31, 2019 60.6 — |
Summary of Additional Information Related to Authorization of Undiscounted Contractual Obligations and Commercial Commitments | The following table provides additional information related to undiscounted contractual obligations and commercial commitments and their respective maturities: Less than one One to three Three to five More than Cash Flow year years years five years At December 31, 2019 Loans and financing 148.5 45.8 58.5 10.5 33.7 Trade accounts payable 358.0 358.0 — — — Recourse and non recourse debt 17.6 4.0 7.9 4.4 1.3 Financial guarantees — — — — — Other liabilities 128.1 3.2 52.8 70.4 1.7 Capital lease 38.5 7.4 12.1 5.0 14.0 Total 690.7 418.4 131.3 90.3 50.7 At December 31, 2018 Loans and financing 4,701.3 321.0 867.3 1,345.7 2,167.3 Trade accounts payable 892.1 892.1 — — — Recourse and non recourse debt 341.4 324.0 7.6 6.6 3.2 Financial guarantees 152.1 51.0 39.9 31.3 29.9 Other liabilities 227.3 5.4 92.2 95.3 34.4 Total 6,314.2 1,593.5 1,007.0 1,478.9 2,234.8 |
Summary of Company's Cash, Cash Equivalents, Financial Investments and Loans and Financing | At December 31, 2019, the Company’s cash, cash equivalents, financial investments and loans and financing were indexed as follows: Without derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 1,149.6 89.81 % 130.4 10.19 % 1,280.0 100.00 % Loans and financing 42.4 46.59 % 48.6 53.41 % 91.0 100.00 % With derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 1,149.6 89.81 % 130.4 10.19 % 1,280.0 100.00 % Loans and financing 2.2 2.42 % 88.8 97.58 % 91.0 100.00 % |
Summary of Company's Cash Equivalents and Post Fixed Financing | At December 31, 2019, the Company’s cash equivalents and post -fixed financing were indexed as follows: Without derivative effect With derivative effect Amount % Amount % Cash equivalents and financial investments 64.9 100.00 % 64.9 100.00 % CDI 64.9 100.00 % 64.9 100.00 % Libor — 0.00 % — 0.00 % Loans and financing 48.6 100.00 % 88.8 100.00 % TJLP 0.7 1.44 % 0.7 0.79 % Libor 19.8 40.74 % 17.6 19.82 % CDI — 0.00 % 42.4 47.75 % SIFMA 28.1 57.82 % 28.1 31.64 % |
Summary of Changes In Foreign Exchange Rates | At December 31, 2019, the Company had the following amounts of financial assets and liabilities denominated in several currencies: Consolidated 12.31.2019 12.31.2018 Loans and financing Brazilian reais 43.1 286.5 U.S. dollars 47.9 3,341.6 Euro — 19.6 91.0 3,647.7 Trade accounts payable Brazilian reais 73.3 77.1 U.S. dollars 248.0 715.6 Euro 35.3 27.2 Other currencies 1.4 72.2 358.0 892.1 Total (1) 449.0 4,539.8 Cash and cash equivalents and financial investments Brazilian reais 128.7 406.5 U.S. dollars 1,044.0 2,746.8 Euro 105.7 47.7 Other currencies 1.5 6.8 1,279.9 3,207.8 Trade accounts receivable: Brazilian reais 6.3 10.7 U.S. dollars 120.0 274.2 Euro 23.1 33.1 Other currencies — — 149.4 318.0 Total (2) 1,429.3 3,525.8 Net exposure (1 - 2): Brazilian reais (18.6 ) (53.6 ) U.S. dollars (868.1 ) 1,036.2 Euro (93.5 ) (34.0 ) Other currencies (0.1 ) 65.4 |
Summary of Interest Risk Factor | Interest risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Cash equivalents and financial investments CDI 64.9 (1.5 ) (0.8 ) (0.1 ) 0.6 1.3 Net impact CDI 64.9 (1.5 ) (0.8 ) (0.1 ) 0.6 1.3 Loans and financing LIBOR (19.8 ) 0.2 0.1 — (0.1 ) (0.1 ) Net impact LIBOR (19.8 ) 0.2 0.1 — (0.1 ) (0.1 ) Loans and financing TJLP (0.7 ) — — — — — Net impact TJLP (0.7 ) — — — — — Rates considered CDI 4.40 % 2.15 % 3.23 % 4.30 % 5.38 % 6.45 % Rates considered LIBOR 1.93 % 0.89 % 1.34 % 1.79 % 2.24 % 2.68 % Rates considered TJLP 5.95 % 2.79 % 4.18 % 5.57 % 6.96 % 8.36 % (*) The positive and negative variations of 25% and 50% were applied on the rates in effect at 12.31.2019 |
Summary of Foreign Exchange Risk Factor | Foreign exchange risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Assets 39.7 19.8 9.9 (0.1 ) (10.0 ) (20.1 ) Cash, cash equivalents and financial R$ 128.7 64.2 32.0 (0.3 ) (32.5 ) (64.9 ) Other assets R$ (89.0 ) (44.4 ) (22.1 ) 0.2 22.5 44.8 Liabilities (34.3 ) (17.1 ) (8.5 ) 0.1 8.7 17.3 Loans and financing R$ (43.1 ) (21.5 ) (10.7 ) 0.1 10.9 21.7 Other liabilities R$ 8.8 4.4 2.2 — (2.2 ) (4.4 ) Net impact 74.0 2.7 1.4 — (1.3 ) (2.8 ) Exchange rate considered 4.0307 2.0200 3.0300 4.0400 5.0500 6.0600 (*) The positive and negative variations of 25% and 50% were applied on the rates |
Summary of Derivative Contracts | Derivative contracts Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable scenario +25% +50% Derivative Designated as Hedge Accounting Interest swap - fair value hedge CDI 1.5 0.6 0.3 — (0.3 ) (0.6 ) Hedge destinated as cash flow US$/R$ (0.1 ) 65.5 24.9 (2.5 ) (37.6 ) (81.6 ) Other derivatives CDI (0.1 ) (0.1 ) — — — — Hedge desifnated as cash flow LIBOR Other derivatives Interest swap LIBOR (0.1 ) (0.1 ) — — — — Foreign Exchange option EUR/US$ 0.3 (2.3 ) (1.3 ) (0.3 ) 0.8 1.8 US$/R$ (4.0 ) 79.8 39.7 (0.4 ) (40.5 ) (80.6 ) Total (2.5 ) 143.4 63.6 (3.2 ) (77.6 ) (161.0 ) Rate considered LIBOR 1.93 % 0.89 % 1.34 % 1.79 % 2.24 % 2.68 % Rate considered CDI 4.40 % 2.15 % 3.23 % 4.30 % 5.38 % 6.45 % Rate considered US$/R$ 4.031 2.020 3.030 4.040 5.050 6.060 Rate considered LIBOR 1.121 0.560 0.840 1.120 1.400 1.680 (*) The positive and negative variations of 25% and 50% were applied on the rates |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Treasury Shares | USD Quantity Share value Net income of uses At the beginning 31.4 4,977,698 6.3 — Used for stock options plan (i) (4.9 ) (592,480 ) 8.3 2.7 At December 31, 2019 26.5 4,385,218 6.0 2.7 (i) The beneficiaries of the shares used in the share-based compensation plan include the Statutory Board of Directors, Executive Directors and certain employees. Refer to Note 30. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Grants Awarded | The grants awarded are summarized below: 12.31.2019 in thousands of options Grants Exercised Canceled (i) Outstanding Exercible Grants on January 23, 2012 4,860,000 (3,850,900 ) (1,009,100 ) — 11.5 Grants on March 20, 2013 4,494,000 (2,882,882 ) (1,315,910 ) 295,208 15.7 At December 31, 2019 9,354,000 (6,733,782 ) (2,325,010 ) 295,208 27.2 (i) The cancellations refer to shares granted to executives or employees who no longer work for the Company. Additionally, on April 16, 2014, there was a cancellation of the grants awarded to members of the Board of Directors, with payment of compensation to plan participants. |
Disclosure of Number and Weighted Average Exercise Prices of Share Options | The fair value of virtual shares is determined based on the average price (weighted by trading volume) of the Company’s shares (EMBR3-R$) Amount of Grant value Amount of Fair value of Grants on March 03, 2015 1,237,090 30.2 650,178 12.3 Grants on March 10, 2016 1,095,720 31.1 685,272 13.0 Grants on June 09, 2016 55,994 1.1 43,325 0.8 Grants on August 25, 2016 70,978 1.1 59,172 1.1 Grants on August 24, 2017 1,930,350 30.5 1,535,154 29.1 Grants on April 12, 2018 1,622,986 35.2 794,616 15.0 Grants on March 12, 2019 964,198 18.6 234,598 4.4 At December 31, 2019 6,977,316 147.8 4,002,315 75.7 (i) Virtual shares until December 31, 2019 considering the plan’s vesting period. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | Basic earnings per common share is computed by dividing net income for the year by the weighted average number of shares outstanding during the period, excluding shares acquired by the Company and held in Treasury. 12.31.2019 12.31.2018 12.31.2017 Continuing Discontinued Total Continuing Discontinued Total Continuing Discontinued Total Net income (loss) attributable to owners of Embraer (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 Weighted average number of shares (in thousands) 735,850 735,850 735,850 734,065 734,065 734,065 734,264 734,264 734,264 Basic earnings per share - U.S. dollars (0.29 ) (0.15 ) (0.44 ) (0.37 ) 0.12 (0.24 ) (0.19 ) 0.55 0.36 Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all potentially dilutive shares. The Company has only one category of potentially dilutive shares, namely share purchase options. A calculation is made in respect of these share purchase options to determine the number of shares that could be acquired at fair value (determined as the average market price of the Company’s share), based on the monetary value of subscription rights tied to the share purchase options in circulation. The number of shares calculated as described above is compared with the number of shares issued, assuming the exercise of share purchase options. 12.31.2019 12.31.2018 12.31.2017 Continuing Discontinued Total Continuing Discontinued Total Continuing Discontinued Total Net income (loss) attributable to owners of Embraer (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 Profit used to determine diluted earnings per share (210.5 ) (111.8 ) (322.3 ) (268.3 ) 90.1 (178.2 ) (139.3 ) 403.3 264.0 Weighted average number of shares (in thousands) - diluted 735,850 735,850 735,850 734,065 734,065 734,065 734,264 734,264 734,264 Dilution for the issuance of stock options (in thousands) (i) — — — — 720 — — 545 545 Weighted average number of shares (in thousands) - diluted 735,850 735,850 735,850 734,065 734,785 734,065 734,264 734,809 734,809 Diluted earnings per share - U.S. dollars (0.29 ) (0.15 ) (0.44 ) (0.37 ) 0.12 (0.24 ) (0.19 ) 0.55 0.36 (i) Refers to the effect of potentially dilutive shares for December 31, 2018. |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Revenue Disaggregation | Reconciliation of reportable segments to the statements of income is provided in Note 39.6. • Revenue by category at December 31, 2019, including continuing and discontinued operations: Commercial Aviation Defense and Executive Service and Other Total Aircraft 2,184.7 89.9 1,311.9 0.2 5.6 3,592.3 Long-term contracts (Defense BU) — 397.9 — 1.2 — 399.1 Others 49.7 16.0 85.1 0.7 — 151.5 Service — 264.2 — 618.5 0.1 882.8 Spare Parts — 7.3 — 426.1 3.5 436.9 Total 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 Revenue from Continuing operations — 775.3 1,397.0 437.2 8.6 2,618.1 Revenue from Discontinued operations 2,234.4 — — 609.5 0.6 2,844.5 Total 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 North America Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,549.0 21.3 272.0 59.1 614.3 76.6 3,592.3 Long-term contracts (Defense BU) 0.1 1.3 2.1 378.8 13.5 3.3 399.1 Others 98.6 19.2 5.7 8.6 12.5 6.9 151.5 Service 437.5 26.6 72.6 101.3 205.1 39.7 882.8 Spare Parts 260.4 8.0 24.6 55.5 78.3 10.1 436.9 Total 3,345.6 76.4 377.0 603.3 923.7 136.6 5,462.6 Revenue from Continuing operations 1,601.0 46.4 59.8 570.5 297.6 42.8 2,618.1 Revenue from Discontinued operations 1,744.6 30.0 317.2 32.8 626.1 93.8 2,844.5 Total 3,345.6 76.4 377.0 603.3 923.7 136.6 5,462.6 • Revenue by category at December 31, 2018, including continuing and discontinued operations: Commercial Defense and Executive Service and Other Total Aircraft 2,276.2 92.5 997.4 — 6.9 3,373.0 Long-term contracts (Defense BU) — 267.0 — — — 267.0 Others 82.1 2.0 106.9 — — 191.0 Service — 183.2 — 622.7 0.2 806.1 Spare Parts — 67.4 — 358.1 8.5 434.0 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 Revenue from Continuing operations — 612.1 1,104.3 399.8 11.5 2,127.7 Revenue from Discontinued operations 2,358.3 — — 581.0 4.1 2,943.4 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 North Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,253.8 87.0 318.2 40.3 644.5 29.2 3,373.0 Long-term contracts (Defense BU) 1.9 0.1 0.7 243.3 12.6 8.4 267.0 Others 66.6 11.9 5.2 74.7 8.9 23.7 191.0 Service 353.7 42.2 92.3 42.4 230.3 45.2 806.1 Spare Parts 283.0 8.8 15.6 42.3 69.7 14.6 434.0 Total 2,959.0 150.0 432.0 443.0 966.0 121.1 5,071.1 Revenue from Continuing operations 1,245.0 120.3 42.1 367.5 327.0 25.8 2,127.7 Revenue from Discontinued operations 1,714.0 29.7 389.9 75.5 639.0 95.3 2,943.4 Total 2,959.0 150.0 432.0 443.0 966.0 121.1 5,071.1 • Revenue by category at December 31, 2017, including continuing and discontinued operations: Commercial Defense and Executive Service and Other Total Aircraft 2,691.8 — 1,175.0 — 7.1 3,873.9 Long-term contracts (Defense BU) — 651.8 — — — 651.8 Others 79.6 7.2 105.3 0.3 — 192.4 Service — 177.8 — 622.2 1.0 801.0 Spare Parts — 16.9 — 299.7 23.7 340.3 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 Revenue from Continuing operations — 853.7 1,280.3 398.3 14.2 2,546.5 Revenue from Discontinued operations 2,771.4 — — 523.9 17.6 3,312.9 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 North Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,711.5 0.2 754.0 20.0 359.3 2 8 9 3,873.9 Long-term contracts (Defense BU) 38.0 1.3 9.8 558.4 33.7 10.6 651.8 Others 104.1 0.2 1.7 11.9 0.3 74.2 192.4 Service 304.1 36.9 75.4 109.4 231.5 43.7 801.0 Spare Parts 180.2 13.0 18.6 49.2 66.8 12.5 340.3 Total 3,337.9 51.6 859.5 748.9 691.6 169.9 5,859.4 Revenue from Continuing operations 1,266.1 28.1 141.3 700.0 377.1 33.9 2,546.5 Revenue from Discontinued operations 2,071.8 23.5 718.2 48.9 314.5 136.0 3,312.9 Total 3,337.9 51.6 859.5 748.9 691.6 169.9 5,859.4 |
Summary of Contract balances, including contract costs | b) Contract balances, including contract costs: Note 12.31.2019 12.31.2018 Contract assets 461.9 358.0 Contract costs (Other assets) 9.1 9.1 Contract liabilities 683.4 1,243.6 Advances from customers 435.4 1,057.4 Deferred revenue 248.0 186.2 Financial Guarantee 25 — 11.6 |
Summary of Other Assets Related to Obtain Contracts | The Company had the following amounts in other assets related to costs to obtain contracts: Sales Bank Total At December 31, 2018 0.6 8.4 9.0 Additions 3.0 0.8 3.8 Disposals (2.5 ) (1.2 ) (3.7 ) Exchange rate variation — — — At December 31, 2019 1.1 8.0 9.1 |
Revenue (expenses) by type (Tab
Revenue (expenses) by type (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Revenue Expenses | The Company opted to present the consolidated statements of income by function. The table below shows the detailed costs and expenses by nature: 12.31.2019 12.31.2018 12.31.2017 As presented in the statements of income: Revenue 2,618.1 2,127.7 2,546.5 Cost of sales and services (2,259.9 ) (1,929.6 ) (2,248.6 ) Administrative (136.7 ) (136.1 ) (138.9 ) Selling (148.2 ) (151.4 ) (169.9 ) Research (19.7 ) (19.5 ) (22.2 ) Other income (expenses), net (215.8 ) (173.8 ) (163.9 ) Equity in losses on associates (0.2 ) (0.4 ) 1.2 Operating profit before financial income (162.4 ) (283.1 ) (195.8 ) Revenue (expenses) by nature: Revenue from sales of goods 2,207.0 1,797.1 2,011.2 Revenue from sales of services 462.8 365.1 600.3 Sales deductions and tax on revenue (i) (51.7 ) (34.5 ) (65.0 ) General manufacturing costs (ii) (2,104.3 ) (1,788.2 ) (2,016.5 ) Depreciation (90.6 ) (74.0 ) (131.5 ) Amortization (65.0 ) (67.4 ) (100.6 ) Personnel expenses (146.2 ) (158.5 ) (156.0 ) Selling expenses (37.5 ) (39.1 ) (33.0 ) Miscellaneous (336.9 ) (283.6 ) (304.7 ) Operating profit before financial income (162.4 ) (283.1 ) (195.8 ) (i) Refers to sales taxes and other deductions. (ii) Refers to costs of materials, direct labor and general manufacturing expenses. |
Other operating income (expen_2
Other operating income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of Other Operating Income (Expense) | 12.31.2019 12.31.2018 12.31.2017 Corporate projects (123.3 ) (72.6 ) (33.0 ) Impairment of assets (71.6 ) (61.3 ) ( 64.8 ) Taxes on other outputs (24.4 ) (21.6 ) (15.3 ) Expenses system project (9.3 ) (13.1 ) (15.4 ) Training and development (5.1 ) (7.8 ) (8.6 ) Provision for contingencies (4.3 ) (11.1 ) (6.7 ) Flight safety standards (3.7 ) (4.0 ) (4.1 ) Aircraft maintenance and flights costs - fleet (1.7 ) (2.6 ) (1.9 ) Product modifications (0.6 ) — — Recovery of expenses 2.2 9.4 3.5 Royalties 2.9 4.4 2.8 Other sales 4.2 5.0 8.6 Contractual fines revenue (expenses) 5.7 8.3 (0.5 ) Others 13.2 (6.8 ) (28 .5 ) (215.8 ) (173.8 ) (163.9 ) |
Financial income (expense), n_2
Financial income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Financial Income (Expense), Net | 12.31.2019 12.31.2018 12.31.2017 Financial income: Interest on cash and cash equivalents and financial investments 54.6 80.3 122.6 Interest on receivables 36.8 3.6 24.5 Taxes over financial revenue (7.0 ) (9.4 ) (13.4 ) Other 0.2 — 2.4 Total financial income 84.6 74.5 136.1 Financial expenses: IOF - (tax on financial transactions) (1.5 ) (1.4 ) (3.6 ) Interest on taxes, social charges and contributions (6.0 ) (5.2 ) (3.6 ) Residual value guarantee — — — Interest on loans and financing (9.5 ) (39.7 ) (37.5 ) Other (12.4 ) (13.2 ) (4.0 ) Total financial expenses (29.4 ) (59.5 ) (48.7 ) Derivative financial instruments 6.3 (8.9 ) 7.6 Financial income (expenses), net 61.5 6.1 95.0 |
Foreign exchange gain (loss),_2
Foreign exchange gain (loss), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Foreign exchange gain (loss), net | 12.31.2019 12.31.2018 12.31.2017 Monetary and foreign exchange variations Assets: Advances to suppliers — — (1.3 ) Tax credits (8.6 ) (26.8 ) (2.5 ) Trade accounts receivable and contract assets (8.1 ) (25.7 ) (18.2 ) Cash and cash equivalents and financial investments (16.9 ) (63.9 ) (0.6 ) Other 11.1 (15.8 ) (0.7 ) (22.5 ) (132.2 ) (23.3 ) Liabilities: Loans and financing 7.5 81.2 5.4 Advances from customers — — 7.2 Provisions 4.2 14.3 2.9 Taxes and charges payable 0.8 6.3 0.8 Other payables (9.2 ) 10.6 3.1 Suppliers 15.2 (1.5 ) 0.4 Provisions for contingencies 5.4 3.1 (1.3 ) Other 2.4 (3.8 ) (1.6 ) 26.3 110.2 16.9 Net monetary and foreign exchange variations 3.8 (22.0 ) (6.4 ) Derivative financial instruments (4.1 ) 17.0 12.1 Foreign exchange gain (loss), net (0.3 ) (5.0 ) 5.7 |
Responsibilities and Commitme_2
Responsibilities and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Provisions, Contingent Liabilities and Other Assets | The maximum potential payments (off balance sheet exposure) represent the worst-case scenario and do not necessarily reflect the results expected by the Company. Estimated proceeds from performance guarantees and underlying assets represent the anticipated values of assets the Company could liquidate or receive from other parties to offset its payments under guarantees. 12.31.2019 12.31.2018 Maximum financial guarantees 35.9 66.6 Maximum residual value guarantees 204.3 253.1 Mutually exclusive exposure (i) (12.5 ) (26.9 ) Provisions and liabilities recorded (140.3 ) (137.0 ) Off-balance 87.4 155.8 Estimated proceeds from financial guarantees and underlying assets 86.9 177.6 |
Supplemental Cash Flow inform_2
Supplemental Cash Flow information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Payments Made During Period and Transactions Not Affecting Cash and Cash Equivalents | 12.31.2019 12.31.2018 12.31.2017 Payments made during the period: Interest 184.2 200.6 186.4 Income tax and social contribution 42.3 23.3 28.6 Non-cash Property, plant and equipment, transfer to pool parts inventory — (29.5 ) (21.6 ) Write off on Property, plant and equipment by transfer to pool parts inventory (21.6 ) — — Property, plant and equipment, transfer for providing for the sale of inventory (38.5 ) (112.7 ) (100.8 ) Impairment of assets — (55.2 ) (58.4 ) Government grants — — (4.3 ) |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Income Data by Operating Segment | Consolidated statements of income data by operating segment – year ended December 31, 2019: Commercial Aviation Defense and Security (i) Executive Service and Support Other Total reportable Segments Unallocated Total Revenue 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 — 5,462.6 Cost of sales and services (1,971.2 ) (711.4 ) (1,211.2 ) (755.5 ) (17.8 ) (4,667.1 ) — (4,667.1 ) Gross profit 263.2 63.9 185.8 291.2 (8.6 ) 795.5 — 795.5 Gross profit % 11.8 % 8.2 % 13.3 % 27.8 % -93.5 % 14.6 % 14.6 % Operating income (expense) (332.3 ) (110.4 ) (235.2 ) (176.5 ) (18.1 ) (872.5 ) — (872.5 ) Operating profit before financial income (expense) (69.1 ) (46.5 ) (49.4 ) 114.7 (26.7 ) (77.0 ) — (77.0 ) Financial income (expense), net (116.1 ) (116.1 ) Foreign exchange gain (loss), net 6.9 6.9 Loss (186.2 ) Income tax expense (130.3 ) (130.3 ) Net income (316.5 ) Consolidated statements of income data by operating segment – year ended December 31, 2018: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total reportable Segments Unallocated Total Revenue 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 — 5,071.1 Cost of sales and services (1,976.7 ) (702.3 ) (914.0 ) (689.0 ) (21.1 ) (4,303.1 ) — (4,303.1 ) Gross profit 381.6 (90.2 ) 190.3 291.8 (5.5 ) 768.0 — 768.0 Gross profit % 16.2 % -14.7 % 17.2 % 29.8 % -35.3 % 15.1 % 15.1 % Operating income (expense) (229.1 ) (93.0 ) (235.0 ) (168.7 ) (6.9 ) (732.7 ) — (732.7 ) Operating profit before financial income (expense) 152.5 (183.2 ) (44.7 ) 123.1 (12.4 ) 35.3 — 35.3 Financial income (expense), net (171.5 ) (171.5 ) Foreign exchange gain (loss), net — — Loss before taxes on income (136.2 ) Income tax expense (35.0 ) (35.0 ) Net income (171.2 ) Consolidated statements of income data by operating segment – year ended December 31, 2017: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total reportable Segments Unallocated Total Revenue 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 — 5,859.4 Cost of sales and services (2,178.1 ) (792.9 ) (1,126.4 ) (640.3 ) (26.4 ) (4,764.1 ) — (4,764.1 ) Gross profit 593.3 60.8 153.9 281.9 5.4 1,095.3 — 1,095.3 Gross profit % 21.4 % 7.1 % 12.0 % 30.6 % 17.0 % 18.7 % 0.0 % 18.7 % Operating income (expense) (230.5 ) (109.5 ) (206.0 ) (177.0 ) (13.9 ) (736.9 ) (16.5 ) (753.4 ) Operating profit before financial income (expense) 362.8 (48.7 ) (52.1 ) 104.9 (8.5 ) 358.4 (16.5 ) 341.9 Financial income (expense), net (40.6 ) (40.6 ) Foreign exchange gain (loss), net 6.6 6.6 Profit before taxes on income 307.9 Income tax expense (27.9 ) (27.9 ) Net income 280.0 |
Summary of Revenue by Geographic Area | Revenue by geographic area – year ended December 31, 2019: Commercial Aviation Defense and Executive Service and Other Total North America 1,399.8 202.8 1,181.6 560.7 0.7 3,345.6 Europe 508.2 96.7 118.8 200.0 — 923.7 Asia Pacific 256.9 4.3 20.3 95.5 — 377.0 Latin America, except Brazil 17.0 2.7 21.6 35.1 — 76.4 Brazil 0.7 431.8 54.7 107.6 8.5 603.3 Other 51.8 37.0 — 47.8 — 136.6 Total 2,234.4 775.3 1,397.0 1,046.7 9.2 5,462.6 Revenue by geographic area – year ended December 31, 2018: Commercial Defense and Executive Service and Other Total North America 1,449.4 145.7 936.7 422.2 5.0 2,959.0 Europe 519.1 122.8 127.4 196.7 — 966.0 Asia Pacific 324.1 1.6 1.6 104.7 — 432.0 Latin America, except Brazil 11.9 68.3 22.5 47.3 — 150.0 Brazil 0.2 258.9 16.1 157.2 10.6 443.0 Other 53.6 14.8 — 52.7 — 121.1 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 Revenue by geographic area – year ended December 31, 2017: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total North America 1,795.5 93.3 1,006.8 421.0 21.3 3,337.9 Europe 200.1 133.5 161.7 196.3 — 691.6 Asia Pacific 670.3 13.7 94.1 81.4 — 859.5 Latin America, except Brazil 0.5 5.4 0.6 45.1 — 51.6 Brazil 0.9 587.1 17.1 133.3 10.5 748.9 Other 104.1 20.7 — 45.1 — 169.9 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 |
Summary of Assets by Operating Segment | Assets by operating segment - year ended December 31, 2019: Commercial Aviation Defense and Security Executive Jets Service and Other Total reportable Segments Unallocated Total Trade accounts receivable 4.7 62.0 15.2 208.6 3.7 294.2 — 294.2 Property, plant and equipment 859.5 261.6 456.6 480.9 — 2,058.6 — 2,058.6 Intangible assets 1,048.8 16.5 750.5 — 113.8 1,929.6 122.1 2,051.7 Total 1,913.0 340.1 1,222.3 689.5 117.5 4,282.4 122.1 4,404.5 Assets by operating segment - year ended December 31, 2018: Commercial Aviation Defense and Security Executive Jets Service and Support Other Total reportable Segments Unallocated Total Trade accounts receivable 5.8 111.2 1.3 192.2 7.5 318.0 — 318.0 Property, plant and equipment 688.8 295.6 544.0 435.6 0.7 1,964.7 — 1,964.7 Intangible assets 862.5 11.0 829.0 — 78.4 1,780.9 117.9 1,898.8 Total 1,557.1 417.8 1,374.3 627.8 86.6 4,063.6 117.9 4,181.5 |
Summary of Assets by Geographical Area | Assets by geographic area - year ended December 31, 2019: North America Europe Asia Pacific Brazil Total Trade accounts receivable 101.5 89.8 5.9 97.0 294.2 Property, plant and equipment 371.5 556.9 48.3 1,081.9 2,058.6 Intangible assets 79.5 10.4 — 1,961.8 2,051.7 Total 552.5 657.1 54.2 3,140.7 4,404.5 Assets by geographic area - year ended December 31, 2018: North America Europe Asia Pacific Brazil Total Trade accounts receivable 83.9 106.4 8.8 118.9 318.0 Property, plant and equipment 351.1 501.6 57.1 1,054.9 1,964.7 Intangible assets 53.6 5.7 — 1,839.5 1,898.8 Total 488.6 613.7 65.9 3,013.3 4,181.5 |
Summary of Reconciliation of Reportable Segments and Statements of Income | 12.31.2019 (-) Elimination of discontinued operations Total Commercial Service and Other Corporate Results of Revenue 5,462.6 2,234.4 609.5 0.6 — 2,618.1 Cost of sales and services (4,667.1 ) (1,971.2 ) (429.7 ) (6.3 ) — (2,259.9 ) Gross profit 795.5 263.2 179.8 (5.7 ) — 358.2 Gross profit % 14.6 % 13.7 % Operating income (expense) (872.5 ) (332. 3 ) (101.1 ) — 81.5 (520.6 ) Operating profit before financial income (expense) (77.0 ) (69.1 ) 78.7 (5.7 ) 81.5 (162.4 ) Operating margin % -1.4 % -6.2 % 12.31.2018 (-) Elimination of discontinued operations Total Commercial Service and Other Corporate Results of Revenue 5,071.1 2,358.3 581.0 4.1 — 2,127.7 Cost of sales and services (4,303.1 ) (1,976.7 ) (389.4 ) (7.4 ) — (1,929.6 ) Gross profit 768.0 381.6 191.6 (3.3 ) — 198.1 Gross profit % 15.1 % 9.3 % Operating income (expense) (732.7 ) (229.1 ) (99.7 ) — 77.3 (481.2 ) Operating profit before financial income (expense) 35.3 152.2 91.9 (3.3 ) 77.3 (283.1 ) Operating margin % 0.7 % -13.3 % 12.31.2017 (-) Elimination of discontinued operations Total Commercial Service and Other Corporate Results of Revenue 5,859.4 2,771.4 523.9 17.6 — 2,546.5 Cost of sales and services (4,764.1 ) (2,178.1 ) (326.3 ) (11.1 ) — (2,248.6 ) Gross profit 1,095.3 593.3 197.6 6.5 — 297.9 Gross profit % 18.7 % 11.7 % Operating income (expense) (753.4 ) (230.5 ) (101.3 ) — 72.1 (493.7 ) Operating profit before financial income (expense) 341.9 362.8 96.3 6.5 72.1 (195.8 ) Operating margin % 5.8 % -7.7 % |
Operations - Additional Informa
Operations - Additional Information (Detail) | Jan. 24, 2019 | Dec. 17, 2018 |
Nature of operations [line items] | ||
Percentage of ownership interest held by subsidiaries in joint operations | 20.00% | 20.00% |
New markets [member] | ||
Nature of operations [line items] | ||
Percentage of ownership interest held by subsidiaries in joint operations | 51.00% | 51.00% |
Boeing company [member] | ||
Nature of operations [line items] | ||
Percentage of ownership interest held by subsidiaries in joint operations | 80.00% | 80.00% |
Boeing company [member] | New markets [member] | ||
Nature of operations [line items] | ||
Percentage of ownership interest held by subsidiaries in joint operations | 49.00% | 49.00% |
Presentation of the Financial_4
Presentation of the Financial Statements and Accounting Practices - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 24, 2019 | Dec. 17, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of basis of preparation of financial statements [line items] | |||||
Percentage of ownership interest held by subsidiaries in joint operations | 20.00% | 20.00% | |||
Equity interest | 34.00% | ||||
Low value assets leases individual amount | $ 5 | ||||
Reclassified from retained earnings to the financial instrument reserve | $ 1,300 | ||||
Lease liabilities | $ 38,600 | $ 57,600 | $ 57,600 | ||
Incremental weighted average borrowing rate | 6.30% | ||||
Bottom of range [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Warranty coverage period | 3 years | ||||
Top of range [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Warranty coverage period | 6 years | ||||
Low value assets leases individual amount | $ 5 | ||||
Computer software [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Description on tenure of benefits derived from intangible assets | Development costs directly attributable to identifiable and unique software, controlled by the Company and that is expected to generate benefits greater than the costs for more than one year, are recorded in intangible assets. | ||||
Employee profit sharing plan [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Percentage of employee profit sharing of net income | 8.50% | ||||
Percentage of total amount of profit sharing equally divided to employees | 50.00% | ||||
Percentage of other profit sharing proportion to employees salary | 50.00% | ||||
Brazil [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Nominal rate of current income tax | 34.00% | ||||
Percentage of income tax rate | 25.00% | ||||
Percentage of social contribution on net income | 9.00% | ||||
SAVIS Tecnologia e Sistemas S.A. [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Percentage of ownership interest held by subsidiaries in joint operations | 93.50% | ||||
Embraer S.A [member] | |||||
Disclosure of basis of preparation of financial statements [line items] | |||||
Percentage of ownership interest held by subsidiaries in joint operations | 6.50% |
Presentation of the Financial_5
Presentation of the Financial Statements and Accounting Practices - Summary of Company's Corporates Structure (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Airholding S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Airholding S.A. [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments in subsidiaries in Portugal |
OGMA - Industria Aeronautica de Portugal S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 65.00% |
OGMA - Industria Aeronautica de Portugal S.A. [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 65.00% |
Core activities | Aviation maintenance and production |
Country | Portugal |
Yaborã Indústria Aeronáutica S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Yaborã Indústria Aeronáutica S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Future commercial aviation joint venture with Boeing |
Embraer Commercial Aviation LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Commercial Aviation LLC [Member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Future company related to the Commercial Aviation segment |
Embraer Aircraft Customer Services Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aircraft Customer Services Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of spare parts and support services in North America and the Caribbean |
Embraer Aircraft Maintenance Services Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aircraft Maintenance Services Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Maintenance of aircraft and components |
Embraer Aviation France - EAF [membe] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Aviation France - EAF [membe] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Future company related to the Commercial Aviation segment |
ELEB - Equipamentos Ltda. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
ELEB - Equipamentos Ltda. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of hydraulic and mechanical equipment for the aviation industry |
Embraer Aircraft Holding Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aircraft Holding Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities in the USA |
Embraer Business Innovation Center, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Business Innovation Center, Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Develops technological innovation research in aviation and related areas |
Embraer Executive Jet Services, LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Executive Jet Services, LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | After sale support and aircraft maintenance |
Embraer Executive Aircraft, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Executive Aircraft, Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Final assembly and delivery of executive jets |
Embraer Engineering &Technology Center USA, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Engineering &Technology Center USA, Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Engineering services related to aircraft research and development |
Embraer Aero Seating Technologies, LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aero Seating Technologies, LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Production and maintenance of aircraft seats |
Embraer Defense and Security Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Defense and Security Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Supply of Super Tucano aircraft to the American Air Force (LAS) |
Embraer CAE Training Services LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer CAE Training Services LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Core activities | Pilot, mechanic and crew training |
EB Defense LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
EB Defense LLC [Member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Future joint venture with Boeing for the sale and promotion of C-390 Millennium |
Embraer Solutions, LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Solutions, LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of spare parts and support services for the Executive Aviation |
Embraer Aviation Europe EAE [member] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Aviation Europe EAE [member] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities abroad, specifically Europe |
Embraer Aviation International EAI [member] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Aviation International EAI [member] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of parts and after sale services in Europe, Africa and the Middle East |
Embraer Europe SARL [member] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Europe SARL [member] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Commercial representation of the Company in Europe, Africa and the Middle East |
Embraer Defesa And Seguranca Participacoes S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Embraer Defesa And Seguranca Participacoes S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments in the Defense & Security segments |
Atech Negocios em Tecnologias S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Atech Negocios em Tecnologias S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Development and control, communications, computer and intelligence services |
Visiona Tecnologia Espacial S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Country | Brazil |
Visiona Tecnologia Espacial S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Core activities | Supply of the Brazilian Government’s Geostationary Defense and Strategic Communications Satellite System (SGDC) |
Visiona Internacional B.V. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holanda |
Visiona Internacional B.V. [member] | Holanda [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Integration and supply of the Brazilian Government’s (SGDC) System |
SAVIS Tecnologia e Sistemas S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
SAVIS Tecnologia e Sistemas S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Operates in Defense and Security with the Brazilian Government |
Embraer GPX Ltda [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Embraer GPX Ltda [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | No operations |
Embraer Netherlands Finance BV [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holland |
Embraer Netherlands Finance BV [member] | Holland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Financial operations raising and investing funds of the Embraer Group |
Embraer Aviation Netherlands B.V. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holland |
Embraer Aviation Netherlands B.V. [member] | Holland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Future company responsible for Embraer’s commercial activities in Europe |
Embraer Netherlands B V [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holland |
Embraer Netherlands B V [member] | Holland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities abroad, leasing and selling used aircraft |
Embraer Asia Pacific PTE. Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Singapore |
Embraer Asia Pacific PTE. Ltd. [member] | Singapore [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | After sale services and support in Asia |
Embraer CAE Training Services (UK) Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | United Kingdom |
Embraer CAE Training Services (UK) Limited [member] | United Kingdom [Member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Core activities | No operations |
Embraer Portugal S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Embraer Portugal S.A. [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments and economic activities in subsidiaries in Portugal |
Embraer Portugal Estruturas Metalicas SA [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Embraer Portugal Estruturas Metalicas SA [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Fabrication of steel parts and products for the aviation industry |
Embraer Portugal Estruturas em Compositos SA [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Embraer Portugal Estruturas em Compositos SA [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Fabrication of composite parts and products for the aviation industry |
Embraer (China) Aircraft Technical Services Company Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | China |
Embraer (China) Aircraft Technical Services Company Limited [member] | China [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sales and maintenance for after sales support in China |
EZ Air Interior Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | Ireland |
EZ Air Interior Limited [member] | Ireland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 50.00% |
Core activities | Fabrication of interiors for commercial aircraft |
Embraer Overseas Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
Embraer Overseas Ltd. [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Financial operations raising and investing funds of the Embraer Group |
Embraer Spain Holding Co. SL [member] | |
Disclosure of subsidiaries [line items] | |
Country | Spain |
Embraer Spain Holding Co. SL [member] | Spain [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities abroad |
ECC Investment Switzerland AG [member] | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
ECC Investment Switzerland AG [member] | Switzerland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments in subsidiaries abroad |
ECC Insurance And Financial Company Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
ECC Insurance And Financial Company Limited [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Covers financial guarantees offered in aircraft sale structuring |
Embraer Finance Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
Embraer Finance Ltd. [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Support to the Company in structuring specific operations |
Refine, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
Refine, Inc. [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | SPE to finance sales of aircraft from the Commercial Aviation |
Fundo de Investimento em Participações Embraer Ventures [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Fundo de Investimento em Participações Embraer Ventures [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Exclusive fund created with the objective of technological and financial aggregation based on investment and support to small and medium-sized companies focused on disruptive innovation in areas related to the aerospace sector. |
Presentation of the Financial_6
Presentation of the Financial Statements and Accounting Practices - Summary of quantitative information about lease liability (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Quantitative Information About Lease Liability [Line Items] | |||
Lease Commitments | $ 78.1 | ||
- (Less): short-term leases recognized on a straight-line basis as expense | $ (1.9) | $ (1.9) | |
- (Less): low-value leases recognized on a straight-line basis as expense | (3.3) | (1.4) | |
- Discounted using the incremental borrowinig rate | (15.3) | ||
Lease liabilities | $ 57.6 | $ 38.6 | $ 57.6 |
Critical Accounting Estimates_3
Critical Accounting Estimates and Significant Judgements - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of changes in accounting estimates [abstract] | |
Estimation of revenue recognition increased | $ 309.4 |
Estimation of revenue recognition decreased | $ 462.7 |
Hypothetical scenario increase decrease in estimated cost percentage | 10.00% |
Depreciation and amortization expenses | $ 83.5 |
Critical Accounting Estimates_4
Critical Accounting Estimates and Significant Judgements - Summary of Residual Value Guarantees (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | $ 129.6 |
Total | 129.6 |
-50% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | (57.2) |
Total | (57.2) |
-25% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | (53.4) |
Total | (53.4) |
Probable scenario [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | (0.9) |
Total | (0.9) |
+25% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | 92.9 |
Total | 92.9 |
+50% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | 123.8 |
Total | $ 123.8 |
Critical Accounting Estimates_5
Critical Accounting Estimates and Significant Judgements - Summary of Residual Value Guarantees (Parenthectical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure of changes in accounting estimates [line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of changes in accounting estimates [line items] | |
Risk Variable | 50.00% |
Assets held for sale and disc_3
Assets held for sale and discontinued operations - Additional Information (Detail) - USD ($) $ in Billions | Feb. 26, 2019 | Jan. 24, 2019 | Dec. 17, 2018 | Dec. 31, 2019 |
Assets Held For Sale And Discontinued Operations [Line Items] | ||||
Net debt transferred | $ 1.8 | |||
Maximum net debt ratio | $ 3 | |||
Percentage of ownership interest held by subsidiaries in joint operations | 20.00% | 20.00% | ||
Master Transaction Agreement [Member] | ||||
Assets Held For Sale And Discontinued Operations [Line Items] | ||||
Proportion of voting rights held in joint operation | 96.80% | |||
New markets [member] | ||||
Assets Held For Sale And Discontinued Operations [Line Items] | ||||
Percentage of ownership interest held by subsidiaries in joint operations | 51.00% | 51.00% | ||
Boeing company [member] | ||||
Assets Held For Sale And Discontinued Operations [Line Items] | ||||
Percentage of ownership interest held by subsidiaries in joint operations | 80.00% | 80.00% | ||
Boeing company [member] | New markets [member] | ||||
Assets Held For Sale And Discontinued Operations [Line Items] | ||||
Percentage of ownership interest held by subsidiaries in joint operations | 49.00% | 49.00% |
Assets held for sale and disc_4
Assets held for sale and discontinued operations - Summary of assets and liabilities held for sale (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets Held For Sale [Abstract] | ||||
Cash and cash equivalents | $ 855.2 | $ 1,280.9 | $ 1,270.8 | |
Financial investments | 409.8 | 1,743.4 | ||
Trade accounts receivable, net | 149.4 | 318 | ||
Customer and commercial financing | 1.2 | |||
Contract assets | 461.9 | 358 | ||
Inventories | 1,304.4 | 2,507 | ||
Guarantee deposits | 0.1 | 339.9 | ||
Income tax and social contribution | 90.5 | 95.3 | ||
Other assets | 120.1 | 203.4 | ||
Deferred income tax and social contribution | 0.7 | 21.6 | ||
Property, plant and equipment | 968.9 | 1,964.7 | 2,104.9 | $ 2,154.2 |
Intangible assets | 894.1 | 1,898.8 | $ 1,882.4 | $ 1,664.6 |
Right of use | 37.8 | |||
Total asset held for sale | 5,174.6 | |||
Liabilities Held For Sale [Abstract] | ||||
Trade accounts payable | 358 | 892.1 | ||
Lease liability | 5 | |||
Loans and financing | 14.9 | 179.3 | ||
Other payables | 162.5 | 288.4 | ||
Contract liabilities | 649.1 | 1,045.4 | ||
Taxes and payroll charges payable | 54.9 | 68.4 | ||
Income tax and social contribution | 42.6 | 48 | ||
Financial guarantee and residual value guarantee | 0 | 101.1 | ||
Unearned income | 2 | 2 | ||
Provision | 103.1 | 116.9 | ||
Deferred income tax and social contribution | 272.3 | $ 254 | ||
Total liabilities held for sale | 4,984 | |||
Assets held for sale [Member] | ||||
Assets Held For Sale [Abstract] | ||||
Cash and cash equivalents | 1,452.5 | |||
Financial investments | 47.5 | |||
Trade accounts receivable, net | 144.7 | |||
Customer and commercial financing | 10.7 | |||
Contract assets | 33.8 | |||
Inventories | 1,079.6 | |||
Guarantee deposits | 0.5 | |||
Income tax and social contribution | 2.1 | |||
Other assets | 111.5 | |||
Deferred income tax and social contribution | 34.3 | |||
Property, plant and equipment | 1,089.7 | |||
Intangible assets | 1,157.5 | |||
Right of use | 10.2 | |||
Total asset held for sale | 5,174.6 | |||
Liabilities held for sale [Member] | ||||
Liabilities Held For Sale [Abstract] | ||||
Trade accounts payable | 474.7 | |||
Lease liability | 9.4 | |||
Loans and financing | 3,301.3 | |||
Other payables | 132.5 | |||
Contract liabilities | 746.1 | |||
Taxes and payroll charges payable | 8.9 | |||
Income tax and social contribution | 54.9 | |||
Financial guarantee and residual value guarantee | 140.3 | |||
Unearned income | 47.7 | |||
Provision | 39.5 | |||
Deferred income tax and social contribution | 28.7 | |||
Total liabilities held for sale | $ 4,984 |
Assets held for sale and disc_5
Assets held for sale and discontinued operations - Summary of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets | ||||
Cash and cash equivalents | $ 855.2 | $ 1,280.9 | $ 1,270.8 | |
Financial investments | 424.7 | 1,926.9 | ||
Trade accounts receivable, net of expected credit losses | 149.4 | 318 | ||
Guarantee Deposits | 0.6 | 349.7 | ||
Other assets | 181.9 | 309 | ||
Financial liabilities | ||||
Loans and financing | 11.7 | |||
Lease liability | 38.6 | $ 57.6 | 57.6 | |
Other payables | 175.2 | $ 317 | ||
AmortizedCost [member] | ||||
Financial assets | ||||
Cash and cash equivalents | 1,452.5 | |||
Financial investments | 47.5 | |||
Corporate bonds | 47.5 | |||
Trade accounts receivable, net of expected credit losses | 144.6 | |||
Customer and commercial financing | 10.7 | |||
Guarantee Deposits | 0.5 | |||
Other assets | 111.6 | |||
Financial liabilities | ||||
Loans and financing | 3,301.3 | |||
Notes | 2,949.9 | |||
Bonds | 5.4 | |||
Lease liability | 9.4 | |||
Trade accounts payable | 474.7 | |||
Other payables | 132.5 | |||
AmortizedCost [member] | Maturing On 2021 To 2030 [member] | ||||
Financial liabilities | ||||
Capital reserve | 325.4 | |||
AmortizedCost [member] | Maturing On 2023 To 2026 [member] | ||||
Financial liabilities | ||||
Capital reserve | 20.6 | |||
Fair Value Through Profit And Loss [member] | ||||
Financial liabilities | ||||
Residual value guarantee (Note 25) | 129.6 | |||
Carrying Value Book Value [member] | ||||
Financial assets | ||||
Cash and cash equivalents | 1,452.5 | |||
Financial investments | 47.5 | |||
Corporate bonds | 47.5 | |||
Trade accounts receivable, net of expected credit losses | 144.6 | |||
Customer and commercial financing | 10.7 | |||
Guarantee Deposits | 0.5 | |||
Other assets | 111.6 | |||
Financial liabilities | ||||
Loans and financing | 3,301.3 | |||
Notes | 2,949.9 | |||
Bonds | 5.4 | |||
Lease liability | 9.4 | |||
Trade accounts payable | 474.7 | |||
Residual value guarantee (Note 25) | 129.6 | |||
Other payables | 132.5 | |||
Carrying Value Book Value [member] | Maturing On 2021 To 2030 [member] | ||||
Financial liabilities | ||||
Capital reserve | 325.4 | |||
Carrying Value Book Value [member] | Maturing On 2023 To 2026 [member] | ||||
Financial liabilities | ||||
Capital reserve | 20.6 | |||
Carrying Fair Value [member] | ||||
Financial assets | ||||
Cash and cash equivalents | 1,452.5 | |||
Trade accounts receivable, net of expected credit losses | 144.6 | |||
Customer and commercial financing | 10.7 | |||
Guarantee Deposits | 0.5 | |||
Other assets | 111.6 | |||
Financial liabilities | ||||
Loans and financing | 3,614.1 | |||
Notes | 3,264.5 | |||
Bonds | 5.6 | |||
Lease liability | 9.4 | |||
Trade accounts payable | 474.7 | |||
Residual value guarantee (Note 25) | 129.6 | |||
Other payables | 132.5 | |||
Carrying Fair Value [member] | Maturing On 2021 To 2030 [member] | ||||
Financial liabilities | ||||
Capital reserve | 323.4 | |||
Carrying Fair Value [member] | Maturing On 2023 To 2026 [member] | ||||
Financial liabilities | ||||
Capital reserve | $ 20.6 |
Assets held for sale and disc_6
Assets held for sale and discontinued operations - Detailed information about in operating income expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
REVENUE | $ 2,618.1 | $ 2,127.7 | [1] | $ 2,546.5 | [1] |
Cost of sales and services | (2,259.9) | (1,929.6) | [1] | (2,248.6) | [1] |
GROSS PROFIT | 358.2 | 198.1 | [1] | 297.9 | [1] |
Operating Income (expense) | |||||
Administrative | (136.7) | (136.1) | [1] | (138.9) | [1] |
Research | (19.7) | (19.5) | [1] | (22.2) | [1] |
Other operating income (expense), net | (215.8) | (173.8) | [1] | (163.9) | [1] |
OPERATING LOSS BEFORE FINANCIAL RESULT | (162.4) | (283.1) | [1] | (195.8) | [1] |
Financial income, net | 61.5 | 6.1 | [1] | 95 | [1] |
Foreign exchange gain (loss) , net | (0.3) | (5) | [1] | 5.7 | [1] |
NET INCOME (LOSS) BEFORE TAXES ON INCOME | (101.2) | (282) | [1] | (95.1) | [1] |
NET INCOME (LOSS) OF THE DISCONTINUED OPERATIONS | (111.8) | 90.1 | [1] | 403.3 | [1] |
Commercial Aviation Business [Member] | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
REVENUE | 2,844.5 | 2,943.4 | 3,312.9 | ||
Cost of sales and services | (2,407.2) | (2,373.6) | (2,515.5) | ||
GROSS PROFIT | 437.3 | 569.8 | 797.4 | ||
Operating Income (expense) | |||||
Administrative | (53.5) | (46.5) | (40.2) | ||
Selling | (137.7) | (152.8) | (146) | ||
Research | (29.8) | (26.6) | (27) | ||
Other operating income (expense), net | (131) | (25.6) | (46.5) | ||
OPERATING LOSS BEFORE FINANCIAL RESULT | 85.3 | 318.3 | 537.7 | ||
Financial income, net | (177.5) | (177.7) | (135.6) | ||
Foreign exchange gain (loss) , net | 7.2 | 5.1 | 0.9 | ||
NET INCOME (LOSS) BEFORE TAXES ON INCOME | (85) | 145.7 | 403 | ||
Income tax expense | (26.8) | (55.6) | 0.3 | ||
NET INCOME (LOSS) OF THE DISCONTINUED OPERATIONS | $ (111.8) | $ 90.1 | $ 403.3 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Assets held for sale and disc_7
Assets held for sale and discontinued operations - Summary of information about in cash flows attribute to assets and liabilities held for sale discontinued operation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net cash generated by operating activities | $ 893.8 | $ 1,107.6 | $ 753 |
Net cash used by investing activities | 407.7 | (523.1) | (1,092.6) |
Net cash (used) generated by financing activities | (257) | (503.4) | 369.5 |
Discontinued operations [member] | Parent Company [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net cash generated by operating activities | 301.9 | 466.4 | 710.3 |
Net cash used by investing activities | (239.8) | (295.5) | (401.3) |
Net cash (used) generated by financing activities | (19.1) | (212.5) | 555.7 |
Total cash flow from discontinued operations | $ 43 | $ (41.6) | $ 864.7 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents [Line Items] | |||
Cash and banks | $ 585 | $ 125.4 | |
Cash | 585 | 125.4 | |
Cash equivalents | |||
Cash equivalents | 270.2 | 1,155.5 | |
Cash and cash equivalents | 855.2 | 1,280.9 | $ 1,270.8 |
Private securities [member] | |||
Cash equivalents | |||
Cash equivalents | 64.9 | 352.6 | |
Fixed deposits [member] | |||
Cash equivalents | |||
Cash equivalents | $ 205.3 | $ 802.9 |
Cash and Cash Equivalents - S_2
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed deposits [member] | ||
Cash and cash equivalents [Line Items] | ||
Borrowings, maturity | 90 days or less | 90 days or less |
Certificate of Deposit [member] | ||
Cash and cash equivalents [Line Items] | ||
Borrowings, maturity | 90 days or less | 90 days or less |
Financial Investments - Summary
Financial Investments - Summary of Financial Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Amortised cost | $ 48.8 | |
Fair value through other comprehensive income | 507.7 | |
Fair value through profit or loss | $ 424.7 | 1,370.4 |
Total | 424.7 | 1,926.9 |
Amortised cost, current portion | 1.1 | |
Amortised cost,non-current | 47.7 | |
Fair value through other comprehensive income, current portion | 507.7 | |
Fair value through profit or loss, current portion | 409.8 | 1,234.6 |
Fair value through profit or loss, non-current | 14.9 | 135.8 |
Current portion, total | 409.8 | 1,743.4 |
Non-current, total | 14.9 | 183.5 |
Private securities [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through other comprehensive income | 50.4 | |
Total | 50.4 | |
Structured notes [member] | ||
Disclosure of financial assets [line items] | ||
Amortised cost | 48.8 | |
Fair value through profit or loss | 358.8 | 1,308 |
Total | 358.8 | 1,356.8 |
Investment funds [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through profit or loss | 5.3 | 2.4 |
Total | 5.3 | 2.4 |
Fixed deposits [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through other comprehensive income | 457.3 | |
Fair value through profit or loss | 0.1 | |
Total | 457.4 | |
Other Financial Instruments [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through profit or loss | 60.6 | 59.9 |
Total | $ 60.6 | $ 59.9 |
Financial Investments - Summa_2
Financial Investments - Summary of Financial Investments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Investment on credit risk | $ 14.9 | $ 83.2 |
Private securities [member] | ||
Disclosure of financial assets [line items] | ||
Borrowings, maturity | More than 90 days | |
Fixed deposits [member] | ||
Disclosure of financial assets [line items] | ||
Borrowings, maturity | 90 days or less | |
Financial institution and Brazilian Government [member] | Structured notes [member] | ||
Disclosure of financial assets [line items] | ||
Credit risk | $ 222.5 | 1,103.7 |
Two Financial Institutions [Member] | Structured notes [member] | ||
Disclosure of financial assets [line items] | ||
Credit risk | $ 121.4 | $ 121 |
Financial Investments - Additio
Financial Investments - Additional Information (Detail) - Cash and Cash Equivalent and Financial Investments [member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Interbank Interest Equivalent Percent | 100.14% | 101.26% |
Brazil, Brazil Real [member] | ||
Disclosure of financial assets [line items] | ||
Weighted average interest rate | 5.96% | 6.56% |
United States of America, Dollars [member] | ||
Disclosure of financial assets [line items] | ||
Weighted average interest rate | 2.68% | 2.40% |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net - Summary of Trade Accounts Receivable, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade accounts receivables [line items] | ||||
Trade accounts receivable | $ 160.5 | $ 363 | ||
Allowance for doubtful accounts | (11.1) | (45) | $ (52.9) | $ (41.6) |
Trade accounts receivable, net | 149.4 | 318 | ||
Foreign customers [member] | ||||
Disclosure of trade accounts receivables [line items] | ||||
Trade accounts receivable | 149.6 | 325.7 | ||
Brazilian Air force [member] | ||||
Disclosure of trade accounts receivables [line items] | ||||
Trade accounts receivable | 7 | 21.8 | ||
Domestic customers [member] | ||||
Disclosure of trade accounts receivables [line items] | ||||
Trade accounts receivable | $ 3.9 | $ 15.5 |
Trade Accounts Receivable, Ne_3
Trade Accounts Receivable, Net - Summary of Past Due Accounts Receivable (Detail) - Financial assets past due but not impaired [member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of trade accounts receivables [line items] | ||
Current | $ 104.2 | $ 217 |
Trade accounts receivable, net | 160.5 | 363 |
Not later than three months [member] | ||
Disclosure of trade accounts receivables [line items] | ||
Trade accounts receivable, net | 25.6 | 52.6 |
From 91 to 180 days [member] | ||
Disclosure of trade accounts receivables [line items] | ||
Trade accounts receivable, net | 10.3 | 13.6 |
More than 180 days [member] | ||
Disclosure of trade accounts receivables [line items] | ||
Trade accounts receivable, net | $ 20.4 | $ 79.8 |
Trade Accounts Receivable, Ne_4
Trade Accounts Receivable, Net - Summary of Changes in Estimated Losses on Settlement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of trade accounts receivables [line items] | |||
Beginning balance | $ (45) | $ (52.9) | $ (41.6) |
Additions | (4.4) | 11.9 | (12.2) |
Write-off | 7.5 | 3.6 | 5.2 |
Foreign exchange variation | 0.8 | (7.6) | (4.3) |
Assets held for sale | 30 | ||
Ending balance | $ (11.1) | $ (45) | $ (52.9) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | $ (2.4) | $ 1.4 |
Equity investments [member] | Interest rate risk [member] | Settlement 2027 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2027 | |
Derivative financial instrument assets and liability | 2.3 | |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | Settlement 2019 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | (7.5) | |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | Settlement 2020 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2020 | |
Derivative financial instrument assets and liability | $ (0.1) | |
Real expenses [member] | Currency swap contract [member] | Other derivatives [member] | Currency risk [member] | Settlement 2019 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (4) | |
Export financing [member] | Currency swap contract [member] | Other derivatives [member] | Currency risk [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | $ 0.3 | |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Settlement 2019 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | 0.9 | |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Settlement 2022 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | 5.2 | |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Settlement 2023 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2023 | |
Derivative financial instrument assets and liability | $ 1.5 | 0.3 |
Recourse and non recourse debt [member] | Other derivatives [member] | Zero cost collar [member] | Interest rate risk [member] | Settlement 2019 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | 0.3 | |
Acquisition of property plant and equipment [member] | Interest swap [member] | Other derivatives [member] | Interest rate risk [member] | Settlement 2019 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ (0.1) | (0.1) |
Hedged item [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (3.8) | 0.2 |
Derivatives designated as hedge accounting [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | $ 1.4 | $ 1.2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Parenthetical) (Detail) R$ / shares in Units, R$ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)R$ / shares | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ | $ (2.4) | $ 1.4 | |
Forward contract [member] | US Dollar To Euro Currency [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | 16.5 | R$ 66.5 | |
Forward contract [member] | US dollar to purchase of Reais [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | 160 | 789.2 | |
Zero cost collar [member] | Cash flow [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 98.1 | 372.7 | |
Zero cost collar [member] | Written Put Options [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments options exercise price | R$ / shares | $ 3.80 | ||
Zero cost collar [member] | Sold Call Option [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments options exercise price | R$ / shares | $ 4.40 | ||
Interest swap [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average interest rate | 3.50% | ||
Interest swap [member] | floating interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average interest rate | 65.00% | ||
Annual interest rate based on interbank deposit certificate | 31.46% | ||
Interest swap [member] | Cash flow [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 41.1 | R$ 165.7 | |
Recourse and non recourse debt [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ | $ 2.8 | ||
Recourse and non recourse debt [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average interest rate | 5.23% | ||
Recourse and non recourse debt [member] | floating interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
LIBOR rate interest period | 1 month | ||
Annual interest rate based on LIBOR base rate plus | 2.4375% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair value hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortised cost | $ 89.5 | $ 3,647.6 |
Financial instruments designated as hedging instruments, at fair value | $ 90.9 | $ 3,648.4 |
Hedge effectiveness ratio | 100.00% | |
Hedge effectiveness ratio considering changes in discounted value of hedge instrument | 100.00% | 85.20% |
Cash flow [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Hedge effectiveness ratio | 100.00% | |
Hedge effectiveness ratio considering changes in discounted value of hedge instrument | 99.92% | 97.05% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Current portion | $ 1.4 | $ 5.4 |
Non-current | 0.7 | 4.1 |
Liabilities | ||
Current portion | (4.5) | (8.1) |
Net derivative financial instruments | $ (2.4) | $ 1.4 |
Collateralized Accounts Recei_3
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued operations [member] | Aircraft [member] | ||
Disclosure of fair value measurement [line items] | ||
Impairment losses | $ 32.8 | $ 32.2 |
Collateralized Accounts Recei_4
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Summary of Collateralized Accounts Receivable (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Collateralized Accounts Receivable and Recourse and Non Recourse Debt [abstract] | ||
Estimated residual value of leased assets | $ 215.8 | |
Minimum lease payments receivable | 122.6 | |
Guaranteed operation (cash inflow) | $ 17.6 | 27 |
Impairment | (129.5) | |
Investment in sales-type lease | 17.6 | 235.9 |
Current portion | 4 | 218.5 |
Non-current portion | $ 13.6 | $ 17.4 |
Collateralized Accounts Recei_5
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Summary of Recourse and Non-Recourse Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Recourse debt | $ 10.6 | $ 330.6 |
Non recourse debt | 7 | 10.8 |
Adjustments for decrease increase in non recourse and recourse debt | 17.6 | 341.4 |
Current portion | 4 | 324 |
Non-current portion | $ 13.6 | $ 17.4 |
Guarantee Deposits - Summary of
Guarantee Deposits - Summary of Guarantee Deposits (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of guarantee deposits [line items] | ||
Guarantee Deposits | $ 0.6 | $ 349.7 |
Current portion | 0.1 | 339.9 |
Non-current | 0.5 | 9.8 |
Sales financing guarantees [member] | ||
Disclosure of guarantee deposits [line items] | ||
Guarantee Deposits | 314.4 | |
Sales structure guarantees [member] | ||
Disclosure of guarantee deposits [line items] | ||
Guarantee Deposits | 25.3 | |
Other guarantees [member] | ||
Disclosure of guarantee deposits [line items] | ||
Guarantee Deposits | $ 0.6 | $ 10 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Classes of current inventories [abstract] | ||||
Raw materials | $ 499.2 | $ 897.6 | ||
Work in process | 439.7 | 891.6 | ||
Spare parts | 224.6 | 424.3 | ||
Finished goods | 106 | 146.4 | ||
Held by third parties | 50.7 | 108.7 | ||
Inventory in transit | 21 | 91.1 | ||
Consumption materials | 24.2 | 48.3 | ||
Used aircraft | 5.9 | 46 | ||
Advances to suppliers | 29.6 | 31.4 | ||
Loss on adjustment to market value | (0.9) | (7.7) | ||
Loss due to obsolescence | (95.6) | (170.7) | $ (153.2) | $ (138.1) |
Total | $ 1,304.4 | $ 2,507 |
Inventories - Summary of Inve_2
Inventories - Summary of Inventories (Parenthetical) (Detail) - Aircraft | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Legacy 450 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 2 | |
Number of aircraft held in inventory as available for sale | 1 | |
Lineage [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 1 | |
Number of aircraft held in inventory as available for sale | 1 | |
Phenom 300 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 3 | 3 |
Number of aircraft held in inventory as available for sale | 1 | 1 |
Legacy 500 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 4 | |
Phenom 100 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 1 | 1 |
Ipanema [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 2 | 2 |
Legacy 650 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 1 | |
Praetor 600 [Member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 3 | |
Praetor 500 [Member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 2 | |
Embraer 135 [Member] | Reclassification [Member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in inventory as held for sale | 2 | |
Embraer 145 [Member] | Reclassification [Member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in inventory as held for sale | 3 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - Events After Reporting Period [member] | May 18, 2020Aircraft |
Praetor 600 [Member] | |
Classes of inventories [line items] | |
Number of aircraft delivered | 1 |
Ipanema [member] | |
Classes of inventories [line items] | |
Number of aircraft delivered | 2 |
Inventories - Summary of Provis
Inventories - Summary of Provision Recorded for Adjustment to Realizable Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Inventory Provision Recorded for Adjustments to Realizable Value [line items] | |||
Beginning balance | $ 7.7 | ||
Ending balance | 0.9 | $ 7.7 | |
Aircraft [member] | |||
Reconciliation of Inventory Provision Recorded for Adjustments to Realizable Value [line items] | |||
Beginning balance | (7.7) | (17.2) | $ (19.9) |
Additions | (5.2) | (8.8) | (8.2) |
Disposals | 11.2 | 18.3 | 10.9 |
Assets held for sale | 0.8 | ||
Ending balance | $ (0.9) | $ (7.7) | $ (17.2) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories Provision for Obsolescence (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of inventories [abstract] | |||
Beginning balance | $ (170.7) | $ (153.2) | $ (138.1) |
Additions | (50.3) | (59.8) | (48.7) |
Disposals | 29.8 | 41.5 | 37 |
Foreign exchange loss | 0.9 | 0.8 | (3.4) |
Assets held for sale | 94.7 | ||
Ending balance | $ (95.6) | $ (170.7) | $ (153.2) |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Detailed Information About Other Assets [abstract] | ||
Taxes recoverable | $ 94.4 | $ 132.2 |
Court-mandated escrow deposits | 30.1 | 43 |
Prepaid expenses | 22.5 | 24.3 |
Advances for services to be rendered | 9.6 | 3.2 |
Other debtors | 4.9 | 61.6 |
Loan with a joint operation | 4.2 | 23.2 |
Advances to employees | 1.9 | 8.5 |
Other | 14.3 | 13 |
Total | 181.9 | 309 |
Current portion | 120.1 | 203.4 |
Non-current portion | 61.8 | 105.6 |
ICMS (State Value-added Tax) and IPI (Excise Tax) | 65.1 | 85.5 |
PIS (Social Integration Program) and COFINS | 12 | 24.5 |
Income tax and social security on net income | 7.5 | 7.7 |
ISS (Service tax) | 5.3 | 5.9 |
Other | 4.5 | 8.6 |
Total | 94.4 | 132.2 |
Current portion | 64.6 | 93.7 |
Non-current portion | $ 29.8 | $ 38.5 |
Interest in Entities - Summary
Interest in Entities - Summary of Subsidiaries with Participation of Non-Controlling Shareholders (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Non-controlling interest | $ 96.9 | $ 94.4 | |
Comprehensive income | $ (327.8) | (235.1) | $ 313 |
OGMA - Industria Aeronautica de Portugal S.A. [member] | |||
Disclosure of subsidiaries [line items] | |||
Country | Portugal | ||
Embraer Group interest | 65.00% | ||
Non-controlling interest (percentage) | 35.00% | ||
Non-controlling interest | $ 53.9 | $ 54.3 | |
Comprehensive income | $ 3 | ||
Embraer CAE Training Services Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Country | United Kingdom | ||
Embraer Group interest | 51.00% | ||
Non-controlling interest (percentage) | 49.00% | ||
Visiona Tecnologia Espacial S.A. [Member] | |||
Disclosure of subsidiaries [line items] | |||
Country | Brazil | ||
Embraer Group interest | 51.00% | ||
Non-controlling interest (percentage) | 49.00% | ||
Non-controlling interest | $ 20 | ||
Comprehensive income | $ (0.5) | ||
Embraer CAE Training Services [Member] | |||
Disclosure of subsidiaries [line items] | |||
Country | United States of America | ||
Embraer Group interest | 51.00% | ||
Non-controlling interest (percentage) | 49.00% | ||
Non-controlling interest | $ 23 | ||
Comprehensive income | $ 10.2 |
Interest in Entities - Addition
Interest in Entities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |
Proportion of profit before taxes by other entities | 5.00% |
Embraer CAE Training Services Ltd. [Member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Visiona Tecnologia Espacial S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Embraer CAE Training Services [Member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Interest in Entities - Summar_2
Interest in Entities - Summary of Financial Position of the Group Entities that have Non-Controlling Interest (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of subsidiaries [line items] | |||||
Cash and cash equivalents | $ 855.2 | $ 1,280.9 | $ 1,270.8 | ||
Current assets | 8,571.4 | 7,071 | |||
Non current assets | 2,001.1 | 4,222.3 | |||
Current liabilities | 6,386 | 3,028.6 | |||
Non current liabilities | 571.9 | 4,324.6 | |||
Noncontrolling interest | 96.9 | 94.4 | |||
Revenue | 2,618.1 | 2,127.7 | [1] | 2,546.5 | [1] |
Net income/loss for the year | (316.5) | (171.2) | [1] | $ 280 | [1] |
OGMA - Industria Aeronautica de Portugal S.A. [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Cash and cash equivalents | 24.3 | 12.9 | |||
Current assets | 180.2 | 168.9 | |||
Non current assets | 60.8 | 61 | |||
Current liabilities | 86.5 | 74.5 | |||
Non current liabilities | 0.4 | 0.1 | |||
Noncontrolling interest | 53.9 | 54.3 | |||
Revenue | 277.5 | 162.9 | |||
Net income/loss for the year | $ 3 | $ 6.6 | |||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Related Parties - Summary of Ba
Related Parties - Summary of Balances and Transactions With Related Parties (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of transactions between related parties [line items] | |||||
Current assets | $ 8,571.4 | $ 7,071 | |||
Current liabilities | 6,386 | 3,028.6 | |||
Non-current assets | 2,001.1 | 4,222.3 | |||
Non-current liabilities | 571.9 | 4,324.6 | |||
Financial results | (316.5) | (171.2) | [1] | $ 280 | [1] |
Operating results | (162.4) | (283.1) | [1] | (195.8) | [1] |
Related parties [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 453.3 | 369.4 | |||
Current liabilities | 256.1 | 493.9 | |||
Non-current assets | 9.4 | ||||
Non-current liabilities | 30.6 | 163.2 | |||
Financial results | (5.7) | (14.8) | (18.1) | ||
Operating results | (51.7) | (203.2) | (54) | ||
Related parties [member] | Banco do Brasil S.A. [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 75.3 | 326.2 | |||
Current liabilities | 314.3 | ||||
Non-current assets | 9.4 | ||||
Financial results | 1.1 | (4.2) | (0.5) | ||
Related parties [member] | Banco Nacional De Desenvolvimento Econmico e Social BNDES [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 71.8 | ||||
Non-current liabilities | 119.7 | ||||
Financial results | (5.1) | (8.3) | (14.7) | ||
Related parties [member] | Brazilian Air force [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 364.4 | 42.3 | |||
Current liabilities | 226.9 | 90.3 | |||
Operating results | (35.9) | (176.2) | (23.7) | ||
Related parties [member] | Embraer Prev Sociedade De Previdncia Complementar [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 4.7 | 0.2 | |||
Operating results | (19.7) | (14.4) | (22.9) | ||
Related parties [member] | Brazilian Army [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 13 | ||||
Current liabilities | 7.4 | 4.3 | |||
Operating results | 6.8 | (1.2) | |||
Related parties [member] | Financiadora De EstudoE Projetos FINEP [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 12.7 | 13 | |||
Non-current liabilities | 30.6 | 43.5 | |||
Financial results | (1.7) | (2.3) | (2.9) | ||
Related parties [member] | Marinha Do Brasil [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 0.6 | 0.9 | |||
Current liabilities | 4.4 | ||||
Operating results | $ (2.9) | $ (12.6) | $ (6.2) | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Related Parties - Additional In
Related Parties - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Brazilian development bank [member] | |
Disclosure of transactions between related parties [line items] | |
Percentage of shares owned by stakeholders | 5.37% |
Related Parties - Summary of Re
Related Parties - Summary of Remuneration of Key Management Personnel (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure Of Remuneration Of Key Management Personnel [abstract] | |||
Short-term benefits | [1] | $ 9 | $ 10 |
Share based payment | 3.2 | 3.3 | |
Labor contract termination | 1.2 | 1 | |
Total | $ 13.4 | $ 14.3 | |
[1] | Includes wages, salaries, profit sharing, bonuses and indemnities. |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Weighted Average Rate (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Buildings and improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 3.50% | 3.80% |
Installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 8.40% | 4.90% |
Machinery and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 9.10% | 10.00% |
Furniture and fixtures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 12.00% | 9.30% |
Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 32.00% | 22.70% |
Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 8.90% | 11.00% |
Computers and peripherals [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 26.40% | 27.60% |
Tooling [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 13.90% | 16.50% |
Other assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 0.20% | 0.10% |
Exchange pool program assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 2.90% | 3.70% |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | $ 1,964.7 | $ 2,104.9 | $ 2,154.2 | |
Impairment | (55.2) | (58.4) | ||
Interest on capitalized assets | ||||
Ending balance | 968.9 | 1,964.7 | 2,104.9 | |
Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 3,654.8 | 3,757.8 | 3,724.2 | |
Additions | 284.5 | 154.3 | 237.7 | |
Disposals | (189.9) | (80.2) | (65.3) | |
Reclassifications | [1] | (62.1) | (147.6) | (163.9) |
Interest on capitalized assets | 4.8 | 22.1 | ||
Translation adjustments | (8.8) | (25.5) | 33.1 | |
Assets held for sale | (1,648.6) | |||
Ending balance | 2,009.4 | 3,654.8 | 3,757.8 | |
Gross carrying amount [member] | Republic airways [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | (20.5) | (8.8) | (30.1) | |
Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (1,690.1) | (1,652.9) | (1,570) | |
Depreciation | (103.4) | (159.2) | (196.5) | |
Disposals | 161.9 | 61.2 | 29.8 | |
Reclassifications | [1] | 28.6 | 51.4 | 92.3 |
Interest on capitalized assets | (1.6) | (1.5) | ||
Translation adjustments | 5.2 | 10.9 | (8.5) | |
Assets held for sale | 558.9 | |||
Ending balance | (1,040.5) | (1,690.1) | (1,652.9) | |
Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 11 | 11 | 11 | |
Ending balance | 5.1 | 11 | 11 | |
Land [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 11 | 11 | 11 | |
Additions | 0.4 | |||
Assets held for sale | (6.3) | |||
Ending balance | 5.1 | 11 | 11 | |
Buildings and improvements [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 530.7 | 532.9 | 465.8 | |
Ending balance | 327.6 | 530.7 | 532.9 | |
Buildings and improvements [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 750.1 | 741.8 | 657.1 | |
Additions | 5.3 | 1.3 | 4.1 | |
Disposals | (8.3) | (10.9) | (8.1) | |
Reclassifications | [1] | 30.3 | 19.3 | 85.5 |
Translation adjustments | (0.6) | (1.4) | 3.2 | |
Assets held for sale | (317.6) | |||
Ending balance | 459.2 | 750.1 | 741.8 | |
Buildings and improvements [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (219.4) | (208.9) | (191.3) | |
Depreciation | (15.2) | (20.2) | (21.3) | |
Disposals | 7.4 | 10.7 | 4.1 | |
Reclassifications | [1] | (2.9) | 0.1 | 0.6 |
Interest on capitalized assets | (1.6) | (1.5) | ||
Translation adjustments | (1.5) | 0.4 | (1) | |
Assets held for sale | 101.6 | |||
Ending balance | (131.6) | (219.4) | (208.9) | |
Installations [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 56.8 | 57.3 | 54.7 | |
Ending balance | 34.5 | 56.8 | 57.3 | |
Installations [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 162.4 | 161.4 | 156.1 | |
Disposals | (3.7) | (0.9) | ||
Reclassifications | [1] | 6.3 | 2.1 | 4.8 |
Translation adjustments | (0.1) | (0.2) | 0.5 | |
Assets held for sale | (104.8) | |||
Ending balance | 60.1 | 162.4 | 161.4 | |
Installations [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (105.6) | (104.1) | (101.4) | |
Depreciation | (3.7) | (2.8) | (3) | |
Disposals | 4.8 | 0.9 | ||
Reclassifications | [1] | 2.8 | 0.3 | 0.4 |
Translation adjustments | 0.1 | (0.1) | ||
Assets held for sale | 76.1 | |||
Ending balance | (25.6) | (105.6) | (104.1) | |
Machinery and equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 454.3 | 465.2 | 464.7 | |
Ending balance | 180.3 | 454.3 | 465.2 | |
Machinery and equipment [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 972.4 | 971.8 | 909.8 | |
Additions | 43.6 | 28.5 | 40.3 | |
Disposals | (60.2) | (36.5) | (10.1) | |
Reclassifications | [1] | 11.3 | 8.8 | 22.5 |
Translation adjustments | (1.9) | 0.1 | 11.5 | |
Assets held for sale | (469.3) | |||
Ending balance | 481.8 | 972.4 | 971.8 | |
Machinery and equipment [member] | Gross carrying amount [member] | Republic airways [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | (14.1) | (0.3) | (2.2) | |
Machinery and equipment [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (518.1) | (506.6) | (445.1) | |
Depreciation | (32.9) | (46.4) | (60.3) | |
Disposals | 67.7 | 33.5 | 7.5 | |
Reclassifications | [1] | 5.6 | 2.8 | |
Translation adjustments | 1.4 | (1.4) | (8.7) | |
Assets held for sale | 174.8 | |||
Ending balance | (301.5) | (518.1) | (506.6) | |
Furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 29.6 | 31.5 | 34.1 | |
Ending balance | 16.6 | 29.6 | 31.5 | |
Furniture and fixtures [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 74.2 | 74.9 | 74.1 | |
Additions | 5.6 | 1.9 | 3.6 | |
Disposals | (22.4) | (2.1) | (1.9) | |
Reclassifications | [1] | (1.4) | (0.1) | (1.4) |
Translation adjustments | (0.1) | (0.4) | 0.5 | |
Assets held for sale | (17.8) | |||
Ending balance | 38.1 | 74.2 | 74.9 | |
Furniture and fixtures [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (44.6) | (43.4) | (40) | |
Depreciation | (4.6) | (2.9) | (4) | |
Disposals | 19.1 | 1.5 | 1 | |
Translation adjustments | (0.1) | 0.2 | (0.4) | |
Assets held for sale | 8.7 | |||
Ending balance | (21.5) | (44.6) | (43.4) | |
Vehicles [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 3.5 | 4.1 | 4.1 | |
Ending balance | 1.9 | 3.5 | 4.1 | |
Vehicles [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 17.3 | 17.5 | 16.8 | |
Additions | 0.6 | 0.5 | 0.4 | |
Disposals | (3) | (0.5) | (0.7) | |
Reclassifications | [1] | 0.1 | 0.5 | |
Translation adjustments | (0.1) | (0.2) | 0.5 | |
Assets held for sale | (4.5) | |||
Ending balance | 10.4 | 17.3 | 17.5 | |
Vehicles [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (13.8) | (13.4) | (12.7) | |
Depreciation | (1) | (1) | (1.2) | |
Disposals | 3.3 | 0.4 | 0.6 | |
Reclassifications | [1] | 0.3 | ||
Translation adjustments | 0.1 | 0.2 | (0.4) | |
Assets held for sale | 2.9 | |||
Ending balance | (8.5) | (13.8) | (13.4) | |
Aircraft [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 37.5 | 111.9 | 162.8 | |
Ending balance | 10.6 | 37.5 | 111.9 | |
Aircraft [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 76.2 | 193.2 | 316.7 | |
Additions | 31.7 | 10.2 | 14.4 | |
Disposals | (0.3) | (8.1) | ||
Reclassifications | [1] | (40.4) | (120.8) | (104) |
Translation adjustments | (0.1) | |||
Assets held for sale | (48.2) | |||
Ending balance | 14.7 | 76.2 | 193.2 | |
Aircraft [member] | Gross carrying amount [member] | Republic airways [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | (4.6) | (6) | (25.8) | |
Aircraft [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (38.7) | (81.3) | (153.9) | |
Depreciation | (1.3) | (9.1) | (25.6) | |
Disposals | 0.3 | 6.9 | ||
Reclassifications | [1] | 16.9 | 51.4 | 91.3 |
Assets held for sale | 19 | |||
Ending balance | (4.1) | (38.7) | (81.3) | |
Computers and peripherals [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 35.5 | 41.9 | 43.1 | |
Ending balance | 12.8 | 35.5 | 41.9 | |
Computers and peripherals [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 190 | 190.3 | 179.3 | |
Additions | 5 | 6.3 | 11.4 | |
Disposals | (45.4) | (6.4) | (0.8) | |
Reclassifications | [1] | (6.6) | 0.9 | (0.7) |
Translation adjustments | (0.2) | (1.1) | 1.1 | |
Assets held for sale | (41.3) | |||
Ending balance | 101.5 | 190 | 190.3 | |
Computers and peripherals [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (154.5) | (148.4) | (136.2) | |
Depreciation | (7) | (11.5) | (12.1) | |
Disposals | 42.5 | 6.3 | 0.6 | |
Reclassifications | [1] | 1.7 | (1.7) | |
Translation adjustments | 0.2 | 0.8 | (0.7) | |
Assets held for sale | 28.4 | |||
Ending balance | (88.7) | (154.5) | (148.4) | |
Tooling [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 257.6 | 291.2 | 308.9 | |
Ending balance | 91.2 | 257.6 | 291.2 | |
Tooling [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 629.1 | 620.9 | 587.8 | |
Additions | 28.2 | 16.6 | 30.8 | |
Disposals | (26.1) | (1.7) | (1) | |
Reclassifications | [1] | 7 | 0.5 | 5.1 |
Translation adjustments | (4.7) | 0.3 | ||
Assets held for sale | (192.6) | |||
Ending balance | 443.8 | 629.1 | 620.9 | |
Tooling [member] | Gross carrying amount [member] | Republic airways [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairment | (1.8) | (2.5) | (2.1) | |
Tooling [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (371.5) | (329.7) | (278.9) | |
Depreciation | (25.2) | (48.1) | (50.8) | |
Disposals | 7.3 | 0.7 | 0.3 | |
Translation adjustments | (0.1) | 5.6 | (0.3) | |
Assets held for sale | 36.9 | |||
Ending balance | (352.6) | (371.5) | (329.7) | |
Other assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 16.2 | 16.1 | 20 | |
Ending balance | 7.1 | 16.2 | 16.1 | |
Other assets [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 27.6 | 26 | 29.4 | |
Additions | 10.3 | 1.4 | 8.6 | |
Disposals | (1) | |||
Reclassifications | [1] | (7.6) | 0.2 | (12) |
Assets held for sale | (3.8) | |||
Ending balance | 25.5 | 27.6 | 26 | |
Other assets [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (11.4) | (9.9) | (9.4) | |
Depreciation | (0.2) | |||
Disposals | 0.3 | |||
Reclassifications | [1] | (7.3) | (1.5) | (0.3) |
Ending balance | (18.4) | (11.4) | (9.9) | |
Exchange pool program assets [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 438.3 | 465.3 | 468.6 | |
Ending balance | 233 | 438.3 | 465.3 | |
Exchange pool program assets [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 650.8 | 672.5 | 669.7 | |
Additions | 91.8 | 46.3 | 43.6 | |
Disposals | (19) | (20.2) | (33.5) | |
Reclassifications | [1] | (21.8) | (31.8) | (22.2) |
Translation adjustments | (6.1) | (16) | 14.9 | |
Assets held for sale | (374.7) | |||
Ending balance | 321 | 650.8 | 672.5 | |
Exchange pool program assets [member] | Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | (212.5) | (207.2) | (201.1) | |
Depreciation | (12.5) | (17.2) | (18) | |
Disposals | 9.5 | 6.9 | 8.8 | |
Reclassifications | [1] | 11.8 | ||
Translation adjustments | 5.2 | 5 | 3.1 | |
Assets held for sale | 110.5 | |||
Ending balance | (88) | (212.5) | (207.2) | |
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 93.7 | 76.5 | 116.4 | |
Ending balance | 48.2 | 93.7 | 76.5 | |
Construction in progress [member] | Gross carrying amount [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Beginning balance | 93.7 | 76.5 | 116.4 | |
Additions | 62 | 41.3 | 80.5 | |
Disposals | (0.8) | (0.7) | (1.1) | |
Reclassifications | [1] | (39.3) | (26.7) | (142) |
Interest on capitalized assets | 4.8 | 22.1 | ||
Translation adjustments | 0.3 | (1.5) | 0.6 | |
Assets held for sale | (67.7) | |||
Ending balance | $ 48.2 | $ 93.7 | $ 76.5 | |
[1] | Non-cash transactions |
Right-of-use assets and lease_3
Right-of-use assets and lease liabilities - Summary of quantitative information about right of use assets (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | |
Adoption of right of use assets | 57.6 |
Additions | 18.1 |
Depreciation expense | (10.4) |
Disposals | (17.3) |
Assets and liabilities held for sale | (10.2) |
Ending balance | 37.8 |
Beginning balance, Lease liabilities | 57.6 |
Additions | 18.1 |
Disposals | (17.3) |
Interest expense | 6 |
Payments | (11.8) |
Translation adjustments | (4.6) |
Assets and liabilities held for sale | (9.4) |
Ending balance, Lease liabilities | 38.6 |
Current portion | 5 |
Non-current portion | 33.6 |
Land [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Additions | 4 |
Depreciation expense | (1.1) |
Assets and liabilities held for sale | (2.9) |
Building land and improvements [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 56.8 |
Additions | 13.5 |
Depreciation expense | (8.6) |
Disposals | (17.3) |
Assets and liabilities held for sale | (7.2) |
Ending balance | 37.2 |
Machinery and Equipment [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 0.1 |
Depreciation expense | (0.1) |
Vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 0.6 |
Additions | 0.3 |
Depreciation expense | (0.5) |
Assets and liabilities held for sale | (0.1) |
Ending balance | 0.3 |
Other assets [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 0.1 |
Additions | 0.3 |
Depreciation expense | (0.1) |
Ending balance | $ 0.3 |
Right-of-use assets and lease_4
Right-of-use assets and lease liabilities - Additional information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 |
Disclosure Of Right Of Use Assets And Lease Liabilities [Abstract] | ||
Short term lease expenses | $ 1.9 | $ 1.9 |
Low value of leases recognized operating expenses | $ 3.3 | $ 1.4 |
Right-of-use assets and lease_5
Right-of-use assets and lease liabilities - Summary of depreciation rate right of use assets (Detail) - Weighted average [member] | 12 Months Ended |
Dec. 31, 2019 | |
Land [member] | |
Disclosure of depreciation rates right of use assets [Line Items] | |
Right of use assets depreciation rate | 29.90% |
Building Improvements [Member] | |
Disclosure of depreciation rates right of use assets [Line Items] | |
Right of use assets depreciation rate | 12.20% |
Machinery and Equipment [member] | |
Disclosure of depreciation rates right of use assets [Line Items] | |
Right of use assets depreciation rate | 69.60% |
Vehicles [member] | |
Disclosure of depreciation rates right of use assets [Line Items] | |
Right of use assets depreciation rate | 51.00% |
Other assets [member] | |
Disclosure of depreciation rates right of use assets [Line Items] | |
Right of use assets depreciation rate | 19.90% |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets Internally Developed and Acquired From Third Party (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | $ 1,898.8 | $ 1,882.4 | $ 1,664.6 |
Ending balance | 894.1 | 1,898.8 | 1,882.4 |
Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 3,740.2 | 3,635 | 3,296.7 |
Additions | 283.3 | 290.3 | 470.5 |
Contributions from suppliers | (4.5) | (125.5) | (86) |
Disposals | (2) | (3.4) | (1.5) |
Reclassifications | (6.1) | ||
Impairment | (55.6) | (58.5) | (60.5) |
Interest on capitalized assets | 6.8 | 10 | 15.8 |
Assets held for sale | (2,314.5) | ||
Translation adjustments | (0.4) | (1.6) | |
Ending balance | 1,653.3 | 3,740.2 | 3,635 |
Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (1,841.4) | (1,752.6) | (1,632.1) |
Amortization | (95.9) | (112.8) | (146.2) |
Amortization of contribution from suppliers | 22.4 | 22 | 27.3 |
Disposals | 1.2 | 2.2 | |
Reclassifications | 1.4 | ||
Interest on capitalized assets | (2.4) | (1.6) | (1.6) |
Assets held for sale | 1,156.9 | ||
Ending balance | (759.2) | (1,841.4) | (1,752.6) |
Internally generated [member] | Commercial [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 862.7 | 793.4 | 522.7 |
Ending balance | 862.7 | 793.4 | |
Internally generated [member] | Commercial [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 1,916.3 | 1,825.2 | 1,515.1 |
Additions | 188.2 | 209.3 | 313.8 |
Contributions from suppliers | (4.5) | (125.5) | (86) |
Reclassifications | 71.3 | ||
Interest on capitalized assets | 4.9 | 7.3 | 11 |
Assets held for sale | (2,104.9) | ||
Ending balance | 1,916.3 | 1,825.2 | |
Internally generated [member] | Commercial [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (1,053.6) | (1,031.8) | (992.4) |
Amortization | (3.1) | (29.6) | (57.4) |
Amortization of contribution from suppliers | 1 | 8 | 13.5 |
Reclassifications | 4.5 | ||
Interest on capitalized assets | (0.2) | ||
Assets held for sale | 1,055.7 | ||
Ending balance | (1,053.6) | (1,031.8) | |
Internally generated [member] | Executive [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 829 | 882 | 895.4 |
Ending balance | 742.2 | 829 | 882 |
Internally generated [member] | Executive [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 1,341.2 | 1,355.7 | 1,320.3 |
Additions | 31.3 | 41.3 | 76.9 |
Reclassifications | 3.6 | ||
Impairment | (55.6) | (58.5) | (49.9) |
Interest on capitalized assets | 1.9 | 2.7 | 4.8 |
Assets held for sale | (26.5) | ||
Ending balance | 1,292.3 | 1,341.2 | 1,355.7 |
Internally generated [member] | Executive [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (512.2) | (473.7) | (424.9) |
Amortization | (75.1) | (51.1) | (56.7) |
Amortization of contribution from suppliers | 21.4 | 14 | 13.8 |
Reclassifications | (4.3) | ||
Interest on capitalized assets | (2.4) | (1.4) | (1.6) |
Assets held for sale | 18.2 | ||
Ending balance | (550.1) | (512.2) | (473.7) |
Internally generated [member] | Defense and Security [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 11 | 5.6 | 5.2 |
Ending balance | 16.5 | 11 | 5.6 |
Internally generated [member] | Defense and Security [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 43.4 | 33.5 | 30.8 |
Additions | 5.9 | 4 | 3 |
Reclassifications | 5.9 | (0.3) | |
Ending balance | 49.3 | 43.4 | 33.5 |
Internally generated [member] | Defense and Security [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (32.4) | (27.9) | (25.6) |
Amortization | (0.4) | (1.8) | (2.6) |
Reclassifications | (2.7) | 0.3 | |
Ending balance | (32.8) | (32.4) | (27.9) |
Internally generated [member] | All Other Segments [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 2.3 | 4.7 | 51.8 |
Ending balance | 2.3 | 2.3 | 4.7 |
Internally generated [member] | All Other Segments [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 3.5 | 5.8 | 51.8 |
Additions | 0.1 | 0.1 | 2.5 |
Reclassifications | (2.4) | (48.5) | |
Ending balance | 3.6 | 3.5 | 5.8 |
Internally generated [member] | All Other Segments [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (1.2) | (1.1) | |
Amortization | (0.1) | (0.1) | (0.1) |
Reclassifications | (1) | ||
Ending balance | (1.3) | (1.2) | (1.1) |
Not internally generated [member] | Development [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 3.4 | 7.1 | 7.8 |
Ending balance | 5.7 | 3.4 | 7.1 |
Not internally generated [member] | Development [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 6.3 | 13.9 | 13.5 |
Additions | 3.1 | 2.5 | 1.9 |
Disposals | (1.5) | ||
Reclassifications | (10.1) | ||
Ending balance | 9.4 | 6.3 | 13.9 |
Not internally generated [member] | Development [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (2.9) | (6.8) | (5.7) |
Amortization | (0.8) | (0.9) | (1.1) |
Reclassifications | 4.8 | ||
Ending balance | (3.7) | (2.9) | (6.8) |
Not internally generated [member] | Computer software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 117.5 | 136.4 | 131.6 |
Ending balance | 48.1 | 117.5 | 136.4 |
Not internally generated [member] | Computer software [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 350.3 | 343.3 | 311.4 |
Additions | 19.3 | 8 | 56.3 |
Disposals | (2) | (3.4) | |
Reclassifications | 2.4 | (24.4) | |
Assets held for sale | (153.9) | ||
Ending balance | 213.7 | 350.3 | 343.3 |
Not internally generated [member] | Computer software [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (232.8) | (206.9) | (179.8) |
Amortization | (14.4) | (28.1) | (27.1) |
Disposals | 1.2 | 2.2 | |
Assets held for sale | 80.4 | ||
Ending balance | (165.6) | (232.8) | (206.9) |
Not internally generated [member] | Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 10.4 | 12 | 21 |
Ending balance | 10 | 10.4 | 12 |
Not internally generated [member] | Goodwill [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 10.4 | 12 | 21 |
Impairment | (8.7) | ||
Translation adjustments | (0.4) | (1.6) | (0.3) |
Ending balance | 10 | 10.4 | 12 |
Not internally generated [member] | Goodwill [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Ending balance | 0 | ||
Not internally generated [member] | Other intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 62.5 | 41.2 | 29.1 |
Ending balance | 69.3 | 62.5 | 41.2 |
Not internally generated [member] | Other intangible assets [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 68.8 | 45.6 | 32.8 |
Additions | 35.4 | 25.1 | 16.1 |
Reclassifications | (1.9) | (1.7) | |
Impairment | (1.9) | ||
Assets held for sale | (29.2) | ||
Translation adjustments | 0.3 | ||
Ending balance | 75 | 68.8 | 45.6 |
Not internally generated [member] | Other intangible assets [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (6.3) | (4.4) | (3.7) |
Amortization | (2) | (1.2) | (1.2) |
Reclassifications | (0.7) | 0.5 | |
Assets held for sale | 2.6 | ||
Ending balance | $ (5.7) | $ (6.3) | $ (4.4) |
Impairment of assets - Disclosu
Impairment of assets - Disclosure Of Detailed Information About Sensitivity Analysis Of Impairment Test (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Useful Life [Member] | |
Statement [Line Items] | |
Sensitivity | 5.00% |
Useful Life [Member] | Bottom of range [member] | |
Statement [Line Items] | |
Factor | 1 |
Useful Life [Member] | Top of range [member] | |
Statement [Line Items] | |
Factor | 1.100 |
Discount rate [Member] | |
Statement [Line Items] | |
Factor | 11.30% |
Sensitivity | 1.00% |
Foreign exchange rate [Member] | |
Statement [Line Items] | |
Factor | 4.0307 |
Sensitivity | 10.00% |
Platform [Member] | |
Statement [Line Items] | |
Impact in impairment test | Increase or decrease of impairment loss by US$ 65 if the level of aircrafts deliveries fluctuates positively or negatively in 5%. |
Increase In One Pp [Member] | |
Statement [Line Items] | |
Impact in impairment test | Increase of 1 pp. in discount rate would increase impairment loss by US$ 64. |
Decrease In One Pp [Member] | |
Statement [Line Items] | |
Impact in impairment test | Reduction of 1 pp. in discount rate would change impairment loss recognized of US$ 71.6 to zero. |
Decrease In Spot Rate [Member] | |
Statement [Line Items] | |
Impact in impairment test | Reduction of 10% in spot rate as of 12/31/2019 would increase impairment loss by US$ 55. |
Increase In Spot Rate [Member] | |
Statement [Line Items] | |
Impact in impairment test | Increase of 10% in spot rate as of 12/31/2019 would decrease impairment loss by US$ 45. |
Impairment of assets - Disclo_2
Impairment of assets - Disclosure Of Detailed Information About Sensitivity Analysis Of Impairment Test (Detail) (Parenthetical) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Increase In One Pp [Member] | |
Statement [Line Items] | |
Increase Decrease In Impairment Loss | $ 64 |
Decrease In One Pp [Member] | |
Statement [Line Items] | |
Increase Decrease In Impairment Loss | 0 |
Impairment loss recognised in profit or loss | 71.6 |
Decrease In Spot Rate [Member] | |
Statement [Line Items] | |
Increase Decrease In Impairment Loss | 55 |
Increase In Spot Rate [Member] | |
Statement [Line Items] | |
Increase Decrease In Impairment Loss | $ 45 |
Platform [Member] | |
Statement [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 30 years |
Increase Decrease In Impairment Loss | $ 65 |
Impairment of assets - Addition
Impairment of assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Impairment losses | $ 71.6 | $ 61.3 | $ 64.8 |
Weighted average capital cost rate | 11.30% | 11.40% | |
Bottom of range [member] | |||
Statement [Line Items] | |||
Percentage Of Value In Use | 45.00% | ||
Top of range [member] | |||
Statement [Line Items] | |||
Percentage Of Value In Use | 500.00% | ||
Development [member] | |||
Statement [Line Items] | |||
Impairment losses | $ 55.7 | ||
Machinery and equipment [member] | |||
Statement [Line Items] | |||
Impairment losses | 14.1 | ||
Tolling [Member] | |||
Statement [Line Items] | |||
Impairment losses | 1.8 | ||
Lineage [member] | |||
Statement [Line Items] | |||
Impairment losses | $ 61.3 | ||
Legacy 650 [member] | |||
Statement [Line Items] | |||
Impairment losses | $ 62 | ||
Monitoring sensoring and radars CGU [member] | |||
Statement [Line Items] | |||
Impairment losses | $ 71.6 |
Trade Accounts Payable - Summar
Trade Accounts Payable - Summary of Trade Accounts Payable (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other payables [abstract] | |||
Foreign suppliers | $ 300.9 | $ 574 | |
Risk partners | [1] | 0.6 | 200.2 |
Domestic suppliers | 56.5 | 117.9 | |
Trade accounts payable | $ 358 | $ 892.1 | |
[1] | The Company’s risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components, and fuselage parts. Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners. Outstanding transactions related to Commercial Aviation were reclassified to liabilities held for sale Note 4. |
Loans and Financing - Summary o
Loans and Financing - Summary of Loans and Financing (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about loans and financing [line items] | ||||
Loans and financing | $ 91,000 | $ 3,647,600 | $ 4,198,300 | $ 3,759,900 |
Current portion | 14,900 | 179,300 | ||
Non-current portion | 76,100 | 3,468,400 | ||
Local currency [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Loans and financing | $ 43,100 | 286,500 | ||
2027 [member] | Working capital [member] | Other currencies [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2027 | |||
Loans and financing | $ 0 | 2,941,800 | ||
2027 [member] | Bottom of range [member] | Working capital [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 5.05% | |||
Borrowing effective interest rate | 5.15% | |||
2027 [member] | Top of range [member] | Working capital [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 6.38% | |||
Borrowing effective interest rate | 6.74% | |||
2030 [member] | Working capital one [member] | Other currencies [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2030 | |||
Loans and financing | $ 0 | 124,100 | ||
2030 [member] | Bottom of range [member] | Working capital one [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 3.07% | |||
Borrowing effective interest rate | 3.11% | |||
2030 [member] | Top of range [member] | Working capital one [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 5.87% | |||
Borrowing effective interest rate | 5.87% | |||
2021 [member] | Working capital two [member] | London inter bank offered rate one [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Contractual interest rate | Libor 6M + 2.60% | |||
Borrowings contractual interest rate | 2.60% | |||
Effective interest rate | Libor 6M + 2.60% | |||
Borrowing effective interest rate | 2.60% | |||
2021 [member] | Working capital two [member] | Other currencies [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2021 | |||
Loans and financing | $ 0 | 219,800 | ||
2026 [member] | Working capital [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 0.00% | |||
Borrowing effective interest rate | 0.00% | |||
2026 [member] | Working capital [member] | Other currencies [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2026 | |||
Loans and financing | $ 0 | 19,600 | ||
2037 [member] | Property, plant and equipment [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 1.90% | |||
Borrowing effective interest rate | 1.90% | |||
2037 [member] | Property, plant and equipment [member] | Other currencies [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2037 | |||
Loans and financing | $ 47,900 | 55,800 | ||
2024 [member] | Finance leasing [member] | London inter bank offered rate one [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Contractual interest rate | Libor 1M + 2.44% a 2.5% | |||
Effective interest rate | Libor 1M + 2.44% a 2.5% | |||
2024 [member] | Finance leasing [member] | Other currencies [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2024 | |||
Loans and financing | $ 47,900 | 3,361,100 | ||
2024 [member] | Bottom of range [member] | Finance leasing [member] | London inter bank offered rate one [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 2.44% | |||
Borrowing effective interest rate | 2.44% | |||
2024 [member] | Top of range [member] | Finance leasing [member] | London inter bank offered rate one [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 2.50% | |||
Borrowing effective interest rate | 2.50% | |||
2023 [member] | Project development [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 3.50% | |||
Borrowing effective interest rate | 3.50% | |||
2023 [member] | Project development [member] | Local currency [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2023 | |||
Loans and financing | $ 43,100 | 248,000 | ||
2022 [member] | Project development [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Contractual interest rate | TJLP + 0.00% to 6.00% | |||
Effective interest rate | TJLP + 0.00% to 6.00% | |||
2022 [member] | Project development [member] | Local currency [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2022 | |||
2022 [member] | Bottom of range [member] | Project development [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 0.00% | |||
Borrowing effective interest rate | 0.00% | |||
2022 [member] | Top of range [member] | Project development [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 6.00% | |||
Borrowing effective interest rate | 6.00% | |||
2019 [member] | Export Credit Note [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings contractual interest rate | 11.00% | |||
Borrowing effective interest rate | 11.00% | |||
2019 [member] | Top of range [member] | Export Credit Note [member] | Local currency [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Borrowings, maturity | 2019 | |||
Loans and financing | $ 0 | $ 38,500 |
Loans and Financing - Additiona
Loans and Financing - Additional Information (Detail) - USD ($) $ in Millions | Mar. 10, 2020 | Jun. 15, 2012 | Feb. 28, 2017 | Jun. 30, 2015 | Oct. 31, 2009 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about loans and financing [line items] | |||||||
Assets pledged and bank guarantees as collateral for loans | $ 164 | $ 339.4 | |||||
U.S. dollar [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Proportion of loans denominated in foreign currency subject to fixed interest rate | 52.60% | ||||||
Weighted average interest rate | 2.43% | 5.57% | |||||
Brazilian Real [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Proportion of loans denominated in foreign currency subject to fixed interest rate | 47.40% | ||||||
Weighted average interest rate | 1.52% | 2.47% | |||||
Euro [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Proportion of loans denominated in foreign currency subject to fixed interest rate | 0.00% | 0.50% | |||||
Embraer S.A [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Guaranteed notes issued | $ 500,000 | ||||||
Borrowing interest rate | 5.15% | ||||||
Borrowings, maturity date | June 15, 2022 | ||||||
Yaborã Indústria Aeronáutica S.A. [member] | Supplemental Indentures [Member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Proportion of ownership interest in subsidiary | 100.00% | ||||||
Existing Notes [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Description of exchange of existing bonds | Between August and September 2013, through its subsidiary Embraer Overseas Limited, Embraer S.A. made an offer to exchange existing bonds maturing in 2017 (settled in January 2017) and 2020 for “New Notes” maturing in 2023. | ||||||
Aggregate principal amount of notes exchange | $ 146,399 | ||||||
6.375% p.a., due on January 15, 2020 [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Aggregate principal amount of notes exchange | $ 337,168 | ||||||
Percentage of aggregate principal notes exchange | 54.95% | ||||||
6.375% p.a., due on January 15, 2020 [member] | Embraer Overseas Ltd. [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Guaranteed notes issued | $ 500,000 | ||||||
Borrowing interest rate | 6.375% | ||||||
5.696%, maturing on September 16, 2023 [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Guaranteed notes issued | $ 540,518 | ||||||
Borrowing interest rate | 5.696% | ||||||
Borrowings, maturity date | September 16, 2023 | ||||||
5.05% p.a., due on June 15, 2025 [member] | Embraer Netherlands Finance BV [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Guaranteed notes issued | $ 1,000,000 | ||||||
Borrowing interest rate | 5.05% | ||||||
5.40% p.a., due on February 01, 2027 [member] | Embraer Netherlands Finance BV [member] | |||||||
Disclosure of detailed information about loans and financing [line items] | |||||||
Guaranteed notes issued | $ 750,000 | ||||||
Borrowing interest rate | 5.40% | ||||||
Borrowings, maturity date | February 1, 2027 |
Loans and Financing - Summary_2
Loans and Financing - Summary of Maturities of Long term Financing Agreements (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about loans and financing [line items] | |||
Opening balance | $ 3,647.6 | $ 4,198.3 | $ 3,759.9 |
Principal addition | 400.5 | 124 | 972.9 |
Interest addition | 186.3 | 218 | 192.7 |
Principal payment | (645.9) | (596.3) | (540.2) |
Interest payment | (188.1) | (212.7) | (186.4) |
Foreing exchange | (8.2) | (83.7) | (0.6) |
Reclassification to held for sale | (3,301.2) | ||
Ending balance | 91 | 3,647.6 | $ 4,198.3 |
Maturities of the long-term financing agreements | 76.1 | $ 3,468.4 | |
2021 [member] | |||
Disclosure of detailed information about loans and financing [line items] | |||
Maturities of the long-term financing agreements | 27.7 | ||
2022 [member] | |||
Disclosure of detailed information about loans and financing [line items] | |||
Maturities of the long-term financing agreements | 11.7 | ||
2023 [member] | |||
Disclosure of detailed information about loans and financing [line items] | |||
Maturities of the long-term financing agreements | 8.5 | ||
2024 [member] | |||
Disclosure of detailed information about loans and financing [line items] | |||
Maturities of the long-term financing agreements | 0.1 | ||
After 2024 [member] | |||
Disclosure of detailed information about loans and financing [line items] | |||
Maturities of the long-term financing agreements | $ 28.1 |
Loans and financing - Summary_3
Loans and financing - Summary of Maturity of Loans and Financing (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | $ 11.7 | |
Non-current assets held for sale [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | $ 3,301.3 | |
Non-current assets held for sale [member] | 2020 [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | 200.1 | |
Non-current assets held for sale [member] | 2021 [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | 203 | |
Non-current assets held for sale [member] | 2022 [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | 503.4 | |
Non-current assets held for sale [member] | 2023 [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | 517.8 | |
Non-current assets held for sale [member] | 2024 [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | 12.9 | |
Non-current assets held for sale [member] | After 2024 [member] | ||
Disclosure Of Maturity Analysis Of Loans And Financing [Line Items] | ||
Loans and financing | $ 1,864.1 |
Other Payables - Schedule of Ot
Other Payables - Schedule of Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of other payables [abstract] | ||
Provisions related to payroll | $ 58.4 | $ 92.8 |
Provision for employee profit sharing | 20.9 | 34.3 |
Other accounts payable | 54 | 114.6 |
Mutual with jointly controlled operation | 23.2 | |
Long-term incentive | 16.4 | 16.9 |
Insurance | 7.1 | 6.2 |
Contractual obligations | 6.7 | 17.5 |
Commission payable | 11.3 | 10.9 |
Brazilian air force | 0.4 | 0.6 |
Other payables | 175.2 | 317 |
Current portion | 162.5 | 288.4 |
Non-current portion | $ 12.7 | $ 28.6 |
Taxes and Payroll Charges Pay_3
Taxes and Payroll Charges Payable - Schedule of Taxes and Payroll Charges Payable (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Taxes And Payroll Charges [abstract] | ||
INSS (social security contribution) | $ 52.6 | $ 105.2 |
IPI (manufacturing tax) | 4.2 | 0.3 |
PIS and COFINS | 3.6 | 1.6 |
IRRF (withholding tax) | 1.4 | 11.8 |
Others | 6.5 | 7.7 |
Total | 68.3 | 126.6 |
Current portion | 54.9 | 68.4 |
Non-current portion | $ 13.4 | $ 58.2 |
Taxes and Payroll Charges Pay_4
Taxes and Payroll Charges Payable - Schedule of Taxes and Payroll Charges Payable (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Taxes And Payroll Charges [abstract] | |||
Amount related to accident insurance | $ 47.7 | ||
Reduction on provisions payable on social security | $ 2.5 | ||
Remaining amount of provisions payable on social security | 13 | 10 | |
Amount of injunction guaranteeing right to not collect social security contributions | $ 37.3 | $ 31.6 | |
Write Off Of Insurance Liability | $ 46.6 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of income taxes [line items] | ||||
Differences between basis: account x tax | $ 71.3 | $ 5.2 | $ 10.8 | |
Deferred tax assets (liabilities), net | (271.6) | (232.4) | (244.6) | $ (253.6) |
Components of deferred tax assets and liabilities [Member] | ||||
Disclosure of income taxes [line items] | ||||
Temporarily non-deductibleprovisions | 65.2 | 39.7 | (76.1) | |
Tax loss carryforwards | 0.2 | 0.5 | 4.5 | |
Functional currency effect of the non monetary assets | (297.4) | (323.4) | (206) | |
Gains not realized from sales of the Company to subsidiairies | 23.1 | 22.7 | 15.4 | |
Effect of differences by fixed asset | (12) | 7.5 | (8.1) | |
Differences between basis: account x tax | (50.7) | 20.6 | 25.7 | |
Deferred tax assets (liabilities), net | (271.6) | (232.4) | (244.6) | |
Total deferred tax asset | 0.7 | 21.6 | 13.4 | |
Total deferred tax liability | $ (272.3) | $ (254) | $ (258) |
Income Taxes - Changes in Defer
Income Taxes - Changes in Deferred Income Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of income taxes [line items] | |||
Beginning balance | $ (232.4) | $ (244.6) | $ (253.6) |
Temporarily non-deductible provisions | 14.3 | 115.8 | 26.6 |
Tax loss carryforwards | 1.1 | (4) | (23.8) |
Functional currency effect of the non monetary assets | 16.4 | (117.4) | (5) |
Gains not realized from sales of Parent Company to subsidiairies | 0.4 | 7.3 | (1) |
Effect of differences by fixed asset | (47.7) | 15.6 | 23 |
Differences between basis: account x tax | (71.3) | (5.2) | (10.8) |
Discontinued operation | 47.6 | 0.1 | |
Ending balance | (271.6) | (232.4) | (244.6) |
From the statement of income [member] | |||
Disclosure of income taxes [line items] | |||
Beginning balance | (250.2) | (279.5) | (292.4) |
Temporarily non-deductible provisions | 14.3 | 115.8 | 26.6 |
Tax loss carryforwards | 1.1 | (4) | (23.8) |
Functional currency effect of the non monetary assets | 16.4 | (117.4) | (5) |
Gains not realized from sales of Parent Company to subsidiairies | 0.4 | 7.3 | (1) |
Effect of differences by fixed asset | (47.7) | 15.6 | 23 |
Differences between basis: account x tax | (70.3) | 3.9 | (6.9) |
Discontinued operation | 19.8 | 8.1 | |
Ending balance | (316.2) | (250.2) | (279.5) |
Other comprehensive income [member] | |||
Disclosure of income taxes [line items] | |||
Beginning balance | 17.8 | 34.9 | 38.8 |
Differences between basis: account x tax | (1) | (9.1) | (3.9) |
Discontinued operation | 27.8 | (8) | |
Ending balance | $ 44.6 | $ 17.8 | $ 34.9 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of income tax reconciliation [abstract] | |||||
Loss before income tax | $ (101.2) | $ (282) | [1] | $ (95.1) | [1] |
Income tax and social contribution at the nominal Brazilian enacted tax rate - 34% | 34.4 | 95.9 | 32.3 | ||
Tax on profits of overseas subsidiaries | (72.3) | (33.2) | (9.8) | ||
Functional currency effect of the non monetary assets | 16.4 | (117.4) | (5) | ||
Research and development tax incentives | 23 | 27.1 | 42.8 | ||
Interest on own capital | 3 | 16.9 | |||
Fiscal credits (recognized and non recognized) | 0.2 | (8.5) | 9.1 | ||
Tax rate diference | (5.3) | 26.8 | 3 | ||
Other difference between IFRS and fiscal basis | (99.9) | 27 | (117.5) | ||
Total income tax expense | (137.9) | (75.2) | (60.5) | ||
Income tax and social contribution income (expense) benefit as reported | (103.5) | 20.7 | [1] | (28.2) | [1] |
Current income tax and social contribution expense as reported | (37.5) | (8.6) | (41.1) | ||
Deferred income tax and social contribution income (expense) benefit as reported | $ (66) | $ 29.3 | $ 12.9 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Financial Guarantees and Resi_3
Financial Guarantees and Residual Value Guarantees - Schedule of Financial Guarantees and Residual Guarantees (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial guarantees and residual guarantees [line items] | |||
Financial guarantees and residual value guarantees | $ 152.1 | $ 156.8 | $ 210.8 |
Current portion | 51 | ||
Non-current portion | 101.1 | ||
Financial guarantee of residual value [member] | |||
Disclosure of financial guarantees and residual guarantees [line items] | |||
Financial guarantees and residual value guarantees | 125.4 | 108.9 | 122.2 |
Accounts payable [member] | |||
Disclosure of financial guarantees and residual guarantees [line items] | |||
Financial guarantees and residual value guarantees | 15.1 | 30.8 | 65.9 |
Financial guarantee [member] | |||
Disclosure of financial guarantees and residual guarantees [line items] | |||
Financial guarantees and residual value guarantees | $ 11.6 | $ 17.1 | $ 22.7 |
Financial Guarantees and Resi_4
Financial Guarantees and Residual Value Guarantees - Activity on Financial Guarantees and Residual Guarantees (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | $ 152.1 | $ 156.8 | $ 210.8 |
Additions | 4.9 | ||
Interest Additions | 0.6 | 1.5 | 2 |
Disposals | (15.7) | (17.2) | (40.8) |
Market value | 4.2 | 16.5 | (13.3) |
Guarantee amortization | (0.9) | (5.5) | (6.8) |
Liabilities held for sale | (140.3) | ||
Ending balance | 152.1 | 156.8 | |
Financial guarantee [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 11.6 | 17.1 | 22.7 |
Additions | 1.2 | ||
Guarantee amortization | (0.9) | (5.5) | (6.8) |
Liabilities held for sale | (10.7) | ||
Ending balance | 11.6 | 17.1 | |
Financial guarantee of residual value [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 125.4 | 108.9 | 122.2 |
Market value | 4.2 | 16.5 | (13.3) |
Liabilities held for sale | (129.6) | ||
Ending balance | 125.4 | 108.9 | |
Accounts payable [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 15.1 | 30.8 | 65.9 |
Additions | 3.7 | ||
Interest Additions | 0.6 | 1.5 | 2 |
Disposals | $ (15.7) | (17.2) | (40.8) |
Ending balance | $ 15.1 | $ 30.8 |
Provisions and Contingent Lia_3
Provisions and Contingent Liabilities - Summary of Provision (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of provisions [line items] | ||
Provision | $ 202.9 | $ 242.4 |
Current portion | 103.1 | 116.9 |
Non-current portion | 99.8 | 125.5 |
Product warranties [member] | ||
Disclosure of provisions [line items] | ||
Provision | 67.1 | 98 |
Provisions labor, taxes and civil [member] | ||
Disclosure of provisions [line items] | ||
Provision | 66.4 | 58.4 |
Current portion | 21.4 | 20.7 |
Non-current portion | 45 | 37.7 |
Taxes [member] | ||
Disclosure of provisions [line items] | ||
Provision | 41.7 | 31.4 |
Post retirement benefits [member] | ||
Disclosure of provisions [line items] | ||
Provision | 11.7 | 31.7 |
Other environment related provision [member] | ||
Disclosure of provisions [line items] | ||
Provision | 0.3 | 2.4 |
Other [member] | ||
Disclosure of provisions [line items] | ||
Provision | $ 15.7 | $ 20.5 |
Provisions and Contingent Lia_4
Provisions and Contingent Liabilities - Summary of Change in Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of provisions [line items] | |||
Beginning balance | $ 242.4 | $ 260.3 | $ 302.8 |
Additions | 144.2 | 74.1 | 89.5 |
Interest | 7.4 | 8 | 16.9 |
Used/payments | (92.9) | (45.8) | (134.2) |
Reversals | (55.6) | (29.2) | (15.5) |
Translation adjustments | (3.1) | (25) | 0.8 |
Liabilities held for sale | (39.5) | ||
Ending balance | 202.9 | 242.4 | 260.3 |
Product warranties [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 98 | 101.1 | 94.1 |
Additions | 54.2 | 38.1 | 42.5 |
Used/payments | (29.7) | (24.9) | (26.8) |
Reversals | (43.2) | (16.2) | (8.8) |
Translation adjustments | (0.2) | (0.1) | 0.1 |
Liabilities held for sale | (12) | ||
Ending balance | 67.1 | 98 | 101.1 |
Provisions labor, taxes and civil [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 58.4 | 54.2 | 93.1 |
Additions | 23.8 | 24.6 | 12.7 |
Interest | 5.2 | 5.1 | 12.5 |
Used/payments | (7.1) | (6.4) | (61.1) |
Reversals | (10.6) | (11.8) | (2.3) |
Translation adjustments | (1.9) | (7.3) | (0.7) |
Liabilities held for sale | (1.4) | ||
Ending balance | 66.4 | 58.4 | 54.2 |
Post retirement benefits [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 31.7 | 36.1 | 46 |
Additions | 0.6 | 3.2 | |
Interest | 2.2 | 2.9 | 4.4 |
Used/payments | (3.3) | (15.3) | |
Reversals | (1.8) | (0.2) | (1.4) |
Translation adjustments | (0.7) | (4.4) | (0.8) |
Liabilities held for sale | (19.7) | ||
Ending balance | 11.7 | 31.7 | 36.1 |
Taxes [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 31.4 | 41.8 | 28.5 |
Additions | 63.9 | 0.8 | 14 |
Used/payments | (54) | (11.2) | |
Translation adjustments | 0.4 | (0.7) | |
Ending balance | 41.7 | 31.4 | 41.8 |
Voluntary redundancy scheme [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 25.3 | ||
Additions | 7 | ||
Used/payments | (31) | ||
Reversals | (1) | ||
Translation adjustments | (0.3) | ||
Ending balance | |||
Other environment related provision [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 2.4 | 1.8 | 1 |
Additions | 2.3 | 2 | 3 |
Used/payments | (1.7) | ||
Reversals | (1) | (2) | |
Translation adjustments | (0.1) | (0.4) | (0.2) |
Liabilities held for sale | (2.6) | ||
Ending balance | 0.3 | 2.4 | 1.8 |
Other [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 20.5 | 25.3 | 14.8 |
Additions | 8 | 7.1 | |
Used/payments | (0.4) | ||
Translation adjustments | (0.6) | (12.8) | 3.4 |
Liabilities held for sale | (3.8) | ||
Ending balance | $ 15.7 | $ 20.5 | $ 25.3 |
Provisions and Contingent Lia_5
Provisions and Contingent Liabilities - Summary of Labor, Tax and Civil Provisions (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of provisions [line items] | ||
Provisions | $ 202.9 | $ 242.4 |
Current portion | 103.1 | 116.9 |
Non-current portion | 99.8 | 125.5 |
Tax related provision on IRPJ [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 13.6 | 9.2 |
Tax related provision on PIS and COFINS [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 5.3 | 5.3 |
Tax related provision on Social security contributions [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 2.4 | 2.4 |
Tax related provision on Import taxes [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 0.8 | 0.8 |
Tax related provision on FUNDAF [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 0.1 | |
Others tax related provisions [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 0.2 | |
Tax related provision [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 22.1 | 18 |
Labor related provision on Plurimas [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 9.6 | 10 |
Labor related provision on reintegration [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 6 | 7 |
Overtime provision [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 7.6 | 6 |
Dangerousness related provision [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 1.4 | 1 |
Labor related provision on indemnity [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 4.9 | 3.1 |
Labor related provision on third parties [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 1.5 | 0.5 |
Other labor related provision [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 12.9 | 12.4 |
Labor related provision [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 43.9 | 40 |
Civil related provision on Indemnity claims [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 0.4 | 0.4 |
Civil related provision [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 0.4 | 0.4 |
Provisions labor, taxes and civil [member] | ||
Disclosure of provisions [line items] | ||
Provisions | 66.4 | 58.4 |
Current portion | 21.4 | 20.7 |
Non-current portion | $ 45 | $ 37.7 |
Provisions and Contingent Lia_6
Provisions and Contingent Liabilities - Additional Information (Detail) R$ in Millions, $ in Millions | Jul. 28, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) |
Disclosure of other provisions [line items] | ||||
Contingent tax liability related to legal dispute | $ 60 | $ 55.9 | ||
Contingent tax liability | 99.6 | 119.6 | ||
Contingent liabilities | 20.9 | 36.4 | ||
Amount paid in relation to transactions in collaboration agreement | $ 7 | |||
Dispute On Sat Agentes Nocivos [Member] | ||||
Disclosure of other provisions [line items] | ||||
Estimated financial effect of contingent liabilities | 7.7 | 8.1 | ||
Transfer Price Calculation From Two Thousand And Nine Dispute [Member] | ||||
Disclosure of other provisions [line items] | ||||
Estimated financial effect of contingent liabilities | 9 | 8.4 | ||
Disputed Income Tax Liability Transfer Pricing In Loans Between SubsidariesAssociates [Member] | BRAZIL | ||||
Disclosure of other provisions [line items] | ||||
Estimated financial effect of contingent liabilities | 161 | 163.9 | ||
Disputed Income Tax Liability Relating To Credit Disallowance [Member] | BRAZIL | ||||
Disclosure of other provisions [line items] | ||||
Estimated financial effect of contingent liabilities | 51 | 37.5 | ||
Other Tax Lawsuits [Member] | ||||
Disclosure of other provisions [line items] | ||||
Estimated financial effect of contingent liabilities | 0.6 | $ 0.6 | ||
United states securities and exchange commission [member] | ||||
Disclosure of other provisions [line items] | ||||
Payment made as disgorgement of profits | 98.2 | |||
Brazilian Securities And Exchange Commission [member] | ||||
Disclosure of other provisions [line items] | ||||
Payment made as disgorgement of profits | 20 | R$ 64.0 | ||
Ministerio publico federal [member] | ||||
Disclosure of other provisions [line items] | ||||
Payment made as disgorgement of profits | 20 | R$ 64.0 | ||
Department of justice - DOJ [member] | ||||
Disclosure of other provisions [line items] | ||||
Amount of penalty payable for misconduct | $ 107.3 | |||
Deferred prosecution agreement term | 3 years | 3 years |
Post Retirement Benefits - Summ
Post Retirement Benefits - Summary of Post Retirement Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | ||
Post-retirement benefits | $ 11.7 | $ 31.7 |
Medical benefits plan Brazil [member] | ||
Disclosure of defined benefit plans [line items] | ||
Post-retirement benefits | 9 | 27.9 |
Medical benefits plan subsidiaries abroad [member] | ||
Disclosure of defined benefit plans [line items] | ||
Post-retirement benefits | $ 2.7 | $ 3.8 |
Post-Retirement Benefits - Addi
Post-Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of summary of retirement benefit plans other benefits post retirement [line items] | ||
Provisions for retirement benefits | $ 58.4 | $ 92.8 |
Non-current assets held for sale [member] | Commercial Aviation [member] | ||
Disclosure of summary of retirement benefit plans other benefits post retirement [line items] | ||
Provisions for retirement benefits | 19.7 | |
Multi-employer defined benefit plans [member] | Medical benefits plan subsidiaries abroad [member] | ||
Disclosure of summary of retirement benefit plans other benefits post retirement [line items] | ||
Defined contribution pension plan by employer | $ 19 | $ 14.1 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Instrument by Category (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||||
Cash and cash equivalents | $ 855.2 | $ 1,280.9 | $ 1,270.8 | ||
Financial investments | 424.7 | 1,926.9 | |||
Guarantee Deposits | 0.6 | 349.7 | |||
Collateralized accounts receivable | 17.6 | 235.9 | |||
Contract assets | 461.9 | 358 | |||
Trade accounts receivable, net | 149.4 | 318 | |||
Customer and commercial financing | 11.7 | ||||
Derivative financial instruments | 2.1 | 9.5 | |||
Other Assets | 34.5 | 66.2 | |||
Financial assets | 1,946 | 4,556.8 | |||
LIABILITIES | |||||
Loans and financing | 91 | 3,647.6 | $ 4,198.3 | $ 3,759.9 | |
Trade accounts payable and others liabilities | 550.8 | 1,550.5 | |||
Financial guarantee and residual value | 140.4 | ||||
Lease liability | 38.6 | $ 57.6 | 57.6 | ||
Derivative financial instruments | 4.5 | 8.1 | |||
Financial liabilities | 684.9 | 5,346.7 | |||
Financial Instruments at amortized cost [member] | |||||
ASSETS | |||||
Cash and cash equivalents | 855.2 | 1,280.9 | |||
Financial investments | 48.8 | ||||
Guarantee Deposits | 0.6 | 349.7 | |||
Collateralized accounts receivable | 17.6 | 235.9 | |||
Contract assets | 461.9 | 358 | |||
Trade accounts receivable, net | 149.4 | 318 | |||
Customer and commercial financing | 11.7 | ||||
Other Assets | 34.5 | 66.2 | |||
Financial assets | 1,519.2 | 2,669.2 | |||
LIABILITIES | |||||
Loans and financing | 91 | 3,647.7 | |||
Trade accounts payable and others liabilities | 550.8 | 1,550.5 | |||
Financial guarantee and residual value | 15 | ||||
Lease liability | 38.6 | ||||
Financial liabilities | 680.4 | 5,213.2 | |||
Financial instruments at fair value through other comprehensive income [member] | |||||
ASSETS | |||||
Financial investments | 507.8 | ||||
Financial assets | 507.8 | ||||
Financial instruments measured or designated at fair value through profit or loss [member] | |||||
ASSETS | |||||
Financial investments | 424.7 | 1,370.3 | |||
Derivative financial instruments | 2.1 | 9.5 | |||
Financial assets | 426.8 | 1,379.8 | |||
LIABILITIES | |||||
Financial guarantee and residual value | 125.4 | ||||
Derivative financial instruments | 4.5 | 8.1 | |||
Financial liabilities | $ 4.5 | $ 133.5 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||||
Cash and cash equivalents | $ 855.2 | $ 1,280.9 | $ 1,270.8 | ||
Financial investments | 1,946 | 4,556.8 | |||
Guarantee deposits | 0.6 | 349.7 | |||
Collateralized accounts receivable | 17.6 | 235.9 | |||
Contract assets | 461.9 | 358 | |||
Trade accounts receivable, net | 149.4 | 318 | |||
Customer and commercial financing | 11.7 | ||||
Derivative financial instruments | 2.1 | 9.5 | |||
Other assets | 181.9 | 309 | |||
TOTAL ASSETS | 10,572.5 | 11,293.3 | |||
LIABILITIES | |||||
Loans and financing | 91 | 3,647.6 | 4,198.3 | $ 3,759.9 | |
Trade accounts payable and others liabilities | 550.8 | 1,550.5 | |||
Lease liability | 38.6 | $ 57.6 | 57.6 | ||
Derivative financial instruments | 4.5 | 8.1 | |||
Liabilities | 6,957.9 | 7,353.2 | |||
Level 3 [member] | |||||
ASSETS | |||||
TOTAL ASSETS | 60.6 | 59.9 | 59.6 | ||
LIABILITIES | |||||
Liabilities | 125.4 | $ 108.9 | |||
Financial instruments at fair value through profit or loss, category [member] | |||||
ASSETS | |||||
Cash and cash equivalents | 855.2 | 1,280.9 | |||
Financial investments | 424.7 | 1,926.9 | |||
Guarantee deposits | 0.6 | 349.7 | |||
Collateralized accounts receivable | 17.6 | 235.9 | |||
Contract assets | 461.9 | 358 | |||
Trade accounts receivable, net | 149.4 | 318 | |||
Customer and commercial financing | 11.7 | ||||
Derivative financial instruments | 2.1 | 9.5 | |||
Other assets | 34.5 | 66.2 | |||
TOTAL ASSETS | 1,946 | 4,556.8 | |||
LIABILITIES | |||||
Loans and financing | 91 | 3,647.7 | |||
Trade accounts payable and others liabilities | 550.8 | 1,550.5 | |||
Lease liability | 38.6 | ||||
Financial guarantee and residual value | 140.4 | ||||
Derivative financial instruments | 4.5 | 8.1 | |||
Liabilities | 684.9 | 5,346.7 | |||
Financial instruments at fair value through profit or loss, category [member] | Other categories of financial instruments [member] | |||||
ASSETS | |||||
Cash and cash equivalents | 855.2 | 1,280.9 | |||
Financial investments | 48.8 | ||||
Guarantee deposits | 0.6 | 349.7 | |||
Collateralized accounts receivable | 17.6 | 235.9 | |||
Contract assets | 461.9 | 358 | |||
Trade accounts receivable, net | 149.4 | 318 | |||
Customer and commercial financing | 11.7 | ||||
Other assets | 34.5 | 66.2 | |||
TOTAL ASSETS | 1,519.2 | 2,669.2 | |||
LIABILITIES | |||||
Loans and financing | 91 | 3,647.7 | |||
Trade accounts payable and others liabilities | 550.8 | 1,550.5 | |||
Lease liability | 38.6 | ||||
Financial guarantee and residual value | 15 | ||||
Liabilities | 680.4 | 5,213.2 | |||
Financial instruments at fair value through profit or loss, category [member] | Fair value [member] | |||||
ASSETS | |||||
Cash and cash equivalents | 855.2 | 1,280.9 | |||
Financial investments | 424.7 | 1,926.1 | |||
Guarantee deposits | 0.6 | 349.7 | |||
Collateralized accounts receivable | 17.6 | 235.9 | |||
Contract assets | 461.9 | 358 | |||
Trade accounts receivable, net | 149.4 | 318 | |||
Customer and commercial financing | 11.7 | ||||
Derivative financial instruments | 2.1 | 9.5 | |||
Other assets | 34.5 | 66.2 | |||
TOTAL ASSETS | 1,946 | 4,556 | |||
LIABILITIES | |||||
Loans and financing | 85.1 | 3,756.8 | |||
Trade accounts payable and others liabilities | 550.8 | 1,550.5 | |||
Lease liability | 38.6 | ||||
Financial guarantee and residual value | 140.4 | ||||
Derivative financial instruments | 4.5 | 8.1 | |||
Liabilities | 679 | 5,455.8 | |||
Financial instruments at fair value through profit or loss, category [member] | Fair value of financial instruments measured at fair value through profit or loss [member] | |||||
ASSETS | |||||
Financial investments | 424.7 | 1,878.1 | |||
Derivative financial instruments | 2.1 | 9.5 | |||
TOTAL ASSETS | 426.8 | 1,887.6 | |||
LIABILITIES | |||||
Financial guarantee and residual value | 125.4 | ||||
Derivative financial instruments | 4.5 | 8.1 | |||
Liabilities | 4.5 | 133.5 | |||
Financial instruments at fair value through profit or loss, category [member] | Fair value of financial instruments measured at fair value through profit or loss [member] | Level 2 [member] | |||||
ASSETS | |||||
Financial investments | 364.1 | 1,818.2 | |||
Derivative financial instruments | 2.1 | 9.5 | |||
TOTAL ASSETS | 366.2 | 1,827.7 | |||
LIABILITIES | |||||
Derivative financial instruments | 4.5 | 8.1 | |||
Liabilities | 4.5 | 8.1 | |||
Financial instruments at fair value through profit or loss, category [member] | Fair value of financial instruments measured at fair value through profit or loss [member] | Level 3 [member] | |||||
ASSETS | |||||
Financial investments | 60.6 | 59.9 | |||
TOTAL ASSETS | $ 60.6 | 59.9 | |||
LIABILITIES | |||||
Financial guarantee and residual value | 125.4 | ||||
Liabilities | $ 125.4 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Fair Value of Liabilities Measurement Using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Opening balance | $ 11,293.3 | ||
Ending balance | 10,572.5 | $ 11,293.3 | |
Opening balance | 7,353.2 | ||
Ending balance | 6,957.9 | 7,353.2 | |
Level 3 [member] | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Adding Shares | $ 1.3 | ||
Disposal Claim | (0.5) | ||
Opening balance | 59.9 | 59.6 | |
Changes in fair value | 0.7 | 0.3 | |
Ending balance | 60.6 | 59.9 | 59.6 |
Opening balance | 125.4 | 108.9 | |
Changes in fair value | 4.2 | 16.5 | |
Reclassification to held for sale | $ (129.6) | ||
Ending balance | $ 125.4 | $ 108.9 |
Financial Instruments - Additio
Financial Instruments - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Lower and surpassed in financial indebtedness | $ 612.4 | $ 439.9 |
Financial indebtedness of short term | 16.35% | (4.90%) |
Average weighted term | 10 years 14 days | 5 years 6 months |
Percentage of expected credit loss | 1.40% | |
Discontinued operations [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Net debt | $ 1,801.3 | |
Net Cash and cash equivalents and financial instruments | $ 1,188.9 | |
Bottom of range [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 25.00% | |
Bottom of range [member] | Methodology [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 25.00% | |
Bottom of range [member] | Sensitivity analysis [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 25.00% | |
Top of range [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 50.00% | |
Top of range [member] | Methodology [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 50.00% | |
Top of range [member] | Sensitivity analysis [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 50.00% |
Financial Instruments - Summa_4
Financial Instruments - Summary of Additional Information Related to Authorization of Undiscounted Contractual Obligations and Commercial Commitments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of liquidity risk [line items] | |||||
Loans and financing | $ 91 | $ 3,647.6 | $ 4,198.3 | $ 3,759.9 | |
Capital Lease | 38.6 | $ 57.6 | 57.6 | ||
Liquidity risk [member] | Less than one year [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 45.8 | 321 | |||
Trade accounts payable | 358 | 892.1 | |||
Recourse and non recourse debt | 4 | 324 | |||
Financial guarantees | 51 | ||||
Other liabilities | 3.2 | 5.4 | |||
Capital Lease | 7.4 | ||||
Total | 418.4 | 1,593.5 | |||
Liquidity risk [member] | One to three years [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 58.5 | 867.3 | |||
Recourse and non recourse debt | 7.9 | 7.6 | |||
Financial guarantees | 39.9 | ||||
Other liabilities | 52.8 | 92.2 | |||
Capital Lease | 12.1 | ||||
Total | 131.3 | 1,007 | |||
Liquidity risk [member] | Three to five years [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 10.5 | 1,345.7 | |||
Recourse and non recourse debt | 4.4 | 6.6 | |||
Financial guarantees | 31.3 | ||||
Other liabilities | 70.4 | 95.3 | |||
Capital Lease | 5 | ||||
Total | 90.3 | 1,478.9 | |||
Liquidity risk [member] | More than five years [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 33.7 | 2,167.3 | |||
Recourse and non recourse debt | 1.3 | 3.2 | |||
Financial guarantees | 29.9 | ||||
Other liabilities | 1.7 | 34.4 | |||
Capital Lease | 14 | ||||
Total | 50.7 | 2,234.8 | |||
Liquidity risk [member] | Cash flow [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 148.5 | 4,701.3 | |||
Trade accounts payable | 358 | 892.1 | |||
Recourse and non recourse debt | 17.6 | 341.4 | |||
Financial guarantees | 152.1 | ||||
Other liabilities | 128.1 | 227.3 | |||
Capital Lease | 38.5 | ||||
Total | $ 690.7 | $ 6,314.2 |
Financial Instruments - Summa_5
Financial Instruments - Summary of Company's Cash, Cash Equivalents, Financial Investments and Loans and Financing (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Cash Cash Equivalents Financing Investments And Loans And Financing [line items] | ||||
Total amount | $ 91 | $ 3,647.6 | $ 4,198.3 | $ 3,759.9 |
Without the effect of derivative transactions [member] | ||||
Disclosure Of Cash Cash Equivalents Financing Investments And Loans And Financing [line items] | ||||
Pre-fixed amount | $ 1,149.6 | |||
Pre-fixed percentage | 89.81% | |||
Post-fixed amount | $ 130.4 | |||
Post-fixed percentage | 10.19% | |||
Total amount | $ 1,280 | |||
Total percentage | 100.00% | |||
Pre-fixed amount | $ 42.4 | |||
Pre-fixed percentage | 46.59% | |||
Post-fixed amount | $ 48.6 | |||
Post-fixed percentage | 53.41% | |||
Total amount | $ 91 | |||
Total percentage | 100.00% | |||
With the effect of derivative transactions [member] | ||||
Disclosure Of Cash Cash Equivalents Financing Investments And Loans And Financing [line items] | ||||
Pre-fixed amount | $ 1,149.6 | |||
Pre-fixed percentage | 89.81% | |||
Post-fixed amount | $ 130.4 | |||
Post-fixed percentage | 10.19% | |||
Total amount | $ 1,280 | |||
Total percentage | 100.00% | |||
Pre-fixed amount | $ 2.2 | |||
Pre-fixed percentage | 2.42% | |||
Post-fixed amount | $ 88.8 | |||
Post-fixed percentage | 97.58% | |||
Total amount | $ 91 | |||
Total percentage | 100.00% |
Financial Instruments - Summa_6
Financial Instruments - Summary of Company's Cash Equivalents and Post Fixed Financing (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Without the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Cash equivalents and financial investments | $ 130.4 |
Loans and financing | $ 48.6 |
Cash equivalents and financial investments | 100.00% |
Loans and financing | 53.41% |
With the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Cash equivalents and financial investments | $ 130.4 |
Loans and financing | $ 88.8 |
Cash equivalents and financial investments | 100.00% |
Loans and financing | 97.58% |
CDI [member] | Without the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Cash equivalents and financial investments | $ 64.9 |
Cash equivalents and financial investments | 100.00% |
Loans and financing | 0.00% |
CDI [member] | With the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Cash equivalents and financial investments | $ 64.9 |
Loans and financing | $ 42.4 |
Cash equivalents and financial investments | 100.00% |
Loans and financing | 47.75% |
Libor [member] | Without the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Loans and financing | $ 19.8 |
Cash equivalents and financial investments | 0.00% |
Loans and financing | 40.74% |
Libor [member] | With the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Loans and financing | $ 17.6 |
Cash equivalents and financial investments | 0.00% |
Loans and financing | 19.82% |
TJLP [member] | Without the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Loans and financing | $ 0.7 |
Loans and financing | 1.44% |
TJLP [member] | With the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Loans and financing | $ 0.7 |
Loans and financing | 0.79% |
SIFMA [member] | Without the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Loans and financing | $ 28.1 |
Loans and financing | 57.82% |
SIFMA [member] | With the effect of derivative transactions [member] | |
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | |
Loans and financing | $ 28.1 |
Loans and financing | 31.64% |
Financial Instruments - Summa_7
Financial Instruments - Summary of Changes in Foreign Exchange Rates (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade accounts receivable: | ||
Trade accounts receivable | $ 149.4 | $ 318 |
Without the effect of derivative transactions [member] | ||
Loans and financing | ||
Loans and financing | 91 | 3,647.7 |
Trade accounts payable | ||
Trade accounts payable | 358 | 892.1 |
Total | 449 | 4,539.8 |
Cash and cash equivalents and financial investments | ||
Cash and cash equivalents and financial investments | 1,279.9 | 3,207.8 |
Trade accounts receivable: | ||
Trade accounts receivable | 149.4 | 318 |
Total | 1,429.3 | 3,525.8 |
Brazil, Brazil Real [member] | Without the effect of derivative transactions [member] | ||
Loans and financing | ||
Loans and financing | 43.1 | 286.5 |
Trade accounts payable | ||
Trade accounts payable | 73.3 | 77.1 |
Cash and cash equivalents and financial investments | ||
Cash and cash equivalents and financial investments | 128.7 | 406.5 |
Trade accounts receivable: | ||
Trade accounts receivable | 6.3 | 10.7 |
Net exposure (1-2): | ||
Net exposure | (18.6) | (53.6) |
United States of America, Dollars [member] | Without the effect of derivative transactions [member] | ||
Loans and financing | ||
Loans and financing | 47.9 | 3,341.6 |
Trade accounts payable | ||
Trade accounts payable | 248 | 715.6 |
Cash and cash equivalents and financial investments | ||
Cash and cash equivalents and financial investments | 1,044 | 2,746.8 |
Trade accounts receivable: | ||
Trade accounts receivable | 120 | 274.2 |
Net exposure (1-2): | ||
Net exposure | (868.1) | 1,036.2 |
Euro Member Countries, Euro [member] | Without the effect of derivative transactions [member] | ||
Loans and financing | ||
Loans and financing | 19.6 | |
Trade accounts payable | ||
Trade accounts payable | 35.3 | 27.2 |
Cash and cash equivalents and financial investments | ||
Cash and cash equivalents and financial investments | 105.7 | 47.7 |
Trade accounts receivable: | ||
Trade accounts receivable | 23.1 | 33.1 |
Net exposure (1-2): | ||
Net exposure | (93.5) | (34) |
Other currencies [member] | Without the effect of derivative transactions [member] | ||
Trade accounts payable | ||
Trade accounts payable | 1.4 | 72.2 |
Cash and cash equivalents and financial investments | ||
Cash and cash equivalents and financial investments | 1.5 | 6.8 |
Net exposure (1-2): | ||
Net exposure | $ (0.1) | $ 65.4 |
Financial Instruments - Summa_8
Financial Instruments - Summary of Interest Risk Factor (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of interest risk factor [line items] | ||||
Loans and financing | $ 91 | $ 3,647.6 | $ 4,198.3 | $ 3,759.9 |
Interbank deposit certificate CDI rate [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Cash equivalents and financial investments | 64.9 | |||
Net impact | $ 64.9 | |||
Rates considered | 4.40% | |||
Libor [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Net impact | $ (19.8) | |||
Loans and financing | $ (19.8) | |||
Rates considered | 1.93% | |||
TJLP [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Net impact | $ (0.7) | |||
Loans and financing | $ (0.7) | |||
Rates considered | 5.95% | |||
-50% [member] | Interbank deposit certificate CDI rate [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Cash equivalents and financial investments | $ (1.5) | |||
Net impact | $ (1.5) | |||
Rates considered | 2.15% | |||
-50% [member] | Libor [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Net impact | $ 0.2 | |||
Loans and financing | $ 0.2 | |||
Rates considered | 0.89% | |||
-50% [member] | TJLP [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Rates considered | 2.79% | |||
-25% [member] | Interbank deposit certificate CDI rate [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Cash equivalents and financial investments | $ (0.8) | |||
Net impact | $ (0.8) | |||
Rates considered | 3.23% | |||
-25% [member] | Libor [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Net impact | $ 0.1 | |||
Loans and financing | $ 0.1 | |||
Rates considered | 1.34% | |||
-25% [member] | TJLP [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Rates considered | 4.18% | |||
Probable scenario [member] | Interbank deposit certificate CDI rate [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Cash equivalents and financial investments | $ (0.1) | |||
Net impact | $ (0.1) | |||
Rates considered | 4.30% | |||
Probable scenario [member] | Libor [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Rates considered | 1.79% | |||
Probable scenario [member] | TJLP [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Rates considered | 5.57% | |||
+25% [member] | Interbank deposit certificate CDI rate [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Cash equivalents and financial investments | $ 0.6 | |||
Net impact | $ 0.6 | |||
Rates considered | 5.38% | |||
+25% [member] | Libor [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Net impact | $ (0.1) | |||
Loans and financing | $ (0.1) | |||
Rates considered | 2.24% | |||
+25% [member] | TJLP [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Rates considered | 6.96% | |||
+50% [member] | Interbank deposit certificate CDI rate [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Cash equivalents and financial investments | $ 1.3 | |||
Net impact | $ 1.3 | |||
Rates considered | 6.45% | |||
+50% [member] | Libor [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Net impact | $ (0.1) | |||
Loans and financing | $ (0.1) | |||
Rates considered | 2.68% | |||
+50% [member] | TJLP [member] | ||||
Disclosure of interest risk factor [line items] | ||||
Rates considered | 8.36% |
Financial Instruments - Summa_9
Financial Instruments - Summary of Interest Risk Factor (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure of interest risk factor [line items] | |
Risk Variable | 25.00% |
Bottom of range [member] | Interest rate risk [member] | |
Disclosure of interest risk factor [line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of interest risk factor [line items] | |
Risk Variable | 50.00% |
Top of range [member] | Interest rate risk [member] | |
Disclosure of interest risk factor [line items] | |
Risk Variable | 50.00% |
Financial Instruments - Summ_10
Financial Instruments - Summary of Foreign Exchange Risk Factor (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | $ 1,946 | $ 4,556.8 |
Liabilities | 684.9 | $ 5,346.7 |
BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 39.7 | |
Liabilities | (34.3) | |
Net impact | $ 74 | |
Exchange rate considered | 4,030,700 | |
BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (43.1) | |
BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 8.8 | |
BRL [member] | Cash and cash equivalents and financial [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 128.7 | |
BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (89) | |
-50% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 19.8 | |
Liabilities | (17.1) | |
Net impact | $ 2.7 | |
Exchange rate considered | 2,020,000 | |
-50% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (21.5) | |
-50% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 4.4 | |
-50% [member] | BRL [member] | Cash and cash equivalents and financial [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 64.2 | |
-50% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (44.4) | |
-25% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 9.9 | |
Liabilities | (8.5) | |
Net impact | $ 1.4 | |
Exchange rate considered | 3,030,000 | |
-25% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (10.7) | |
-25% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 2.2 | |
-25% [member] | BRL [member] | Cash and cash equivalents and financial [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 32 | |
-25% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (22.1) | |
Probable scenario [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (0.1) | |
Liabilities | $ 0.1 | |
Exchange rate considered | 4,040,000 | |
Probable scenario [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ 0.1 | |
Probable scenario [member] | BRL [member] | Cash and cash equivalents and financial [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (0.3) | |
Probable scenario [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 0.2 | |
+25% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (10) | |
Liabilities | 8.7 | |
Net impact | $ (1.3) | |
Exchange rate considered | 5,050,000 | |
+25% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ 10.9 | |
+25% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | (2.2) | |
+25% [member] | BRL [member] | Cash and cash equivalents and financial [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (32.5) | |
+25% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 22.5 | |
+50% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (20.1) | |
Liabilities | 17.3 | |
Net impact | $ (2.8) | |
Exchange rate considered | 6,060,000 | |
+50% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ 21.7 | |
+50% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | (4.4) | |
+50% [member] | BRL [member] | Cash and cash equivalents and financial [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (64.9) | |
+50% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | $ 44.8 |
Financial Instruments - Summ_11
Financial Instruments - Summary of Foreign Exchange Risk Factor (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure of Foreign Exchange Risk Factor [Line items] | |
Risk Variable | 25.00% |
Bottom of range [member] | Foreign exchange risk [member] | |
Disclosure of Foreign Exchange Risk Factor [Line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of Foreign Exchange Risk Factor [Line items] | |
Risk Variable | 50.00% |
Top of range [member] | Foreign exchange risk [member] | |
Disclosure of Foreign Exchange Risk Factor [Line items] | |
Risk Variable | 50.00% |
Financial Instruments - Summ_12
Financial Instruments - Summary of Derivative Contracts (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (2.5) |
Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.93% |
CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.40% |
Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.031% |
London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.121% |
Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 1.5 |
Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.1) |
Hedge designated as cash flow [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | |
Interest swap [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.1) |
Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 0.3 |
Foreign exchange option two [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (4) |
Other derivatives [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.1) |
-50% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 143.4 |
-50% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 0.89% |
-50% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.15% |
-50% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.02% |
-50% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 0.56% |
-50% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 0.6 |
-50% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 65.5 |
-50% [member] | Hedge designated as cash flow [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | |
-50% [member] | Interest swap [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.1) |
-50% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (2.3) |
-50% [member] | Foreign exchange option two [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 79.8 |
-50% [member] | Other derivatives [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.1) |
-25% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 63.6 |
-25% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.34% |
-25% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 3.23% |
-25% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 3.03% |
-25% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 0.84% |
-25% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 0.3 |
-25% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 24.9 |
-25% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (1.3) |
-25% [member] | Foreign exchange option two [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 39.7 |
Probable scenario [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (3.2) |
Probable scenario [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.79% |
Probable scenario [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.30% |
Probable scenario [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.04% |
Probable scenario [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.12% |
Probable scenario [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (2.5) |
Probable scenario [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.3) |
Probable scenario [member] | Foreign exchange option two [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.4) |
+25% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (77.6) |
+25% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.24% |
+25% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 5.38% |
+25% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 5.05% |
+25% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.40% |
+25% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (0.3) |
+25% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (37.6) |
+25% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 0.8 |
+25% [member] | Foreign exchange option two [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (40.5) |
+50% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (161) |
+50% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.68% |
+50% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 6.45% |
+50% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 6.06% |
+50% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.68% |
+50% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (0.6) |
+50% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (81.6) |
+50% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 1.8 |
+50% [member] | Foreign exchange option two [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (80.6) |
Financial Instruments - Summ_13
Financial Instruments - Summary of Derivative Contracts (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure of Derivative Contracts [Line items] | |
Risk Variable | 25.00% |
Bottom of range [member] | Derivative contract [member] | |
Disclosure of Derivative Contracts [Line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of Derivative Contracts [Line items] | |
Risk Variable | 50.00% |
Top of range [member] | Derivative contract [member] | |
Disclosure of Derivative Contracts [Line items] | |
Risk Variable | 50.00% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Shareholders equity [line items] | |||
Common shares authorized | 1,000,000,000 | ||
Subscribed and paid up capital | $ 1,551.6 | $ 1,551.6 | |
Subscribed and paid up capital, shares | 740,465,044 | ||
Shares held in Treasury | 4,385,218 | 4,977,698 | |
Description of common stock voting right | each common share generally empowered with one vote at general shareholders’ meeting, considering that no shareholder or group of shareholders, may exercise votes representing more than 5% of the quantity of share into which our capital stock is divided. Votes that exceed this 5% threshold will not be considered. | ||
Amount of shares held in Treasury | $ 26.5 | $ 31.4 | |
Market value of treasury shares | $ 21.4 | $ 27.5 | |
Percentage of net profit on statutory reserve | 5.00% | ||
Percentage of dividend and interest on capital on net income | 25.00% | ||
Top of range [member] | |||
Shareholders equity [line items] | |||
Percentage of reserve on capital | 20.00% | ||
Percentage of reserve on capital and capital reserve | 30.00% |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Treasury Shares (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shareholders Equity[abstract] | |
Beginning balance | $ 31.4 |
Used for stock options plan | (4.9) |
Ending balance | $ 26.5 |
Quantity, Beginning balance | shares | 4,977,698 |
Quantity, Used for stock options plan | shares | (592,480) |
Quantity, Ending balance | shares | 4,385,218 |
Share value, Beginning balance | $ / shares | $ 6.3 |
Share value, Used for stock options plan | $ / shares | 8.3 |
Share value, Ending balance | $ / shares | $ 6 |
Net income of uses, Used for stock options plan | $ 2.7 |
Net income of uses, Ending balance | $ 2.7 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Class_of_Stock | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Description of share based compensation | The Company currently has two LTI modes: stock options and virtual shares. |
Option grant date | last sixty trading days |
Number of trading days | 10 trading days |
Restricted virtual shares [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of third anniversary grant date | 33.00% |
Percentage of fourth anniversary grant date | 33.00% |
Percentage of fifth anniversary grant date | 34.00% |
Top of range [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage adjusted to offset speculation | 30.00% |
Top of range [member] | Option Granted For Others [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Option exercise period | P7Y |
Phantom Share Plans [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of trading days | 30 trading days |
Number of classes | 2 |
Phantom Share Plans [member] | Restricted virtual shares [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of shares issued | 50.00% |
Phantom Share Plans [member] | Virtual performance shares [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Percentage of shares issued | 50.00% |
Grant Date Four [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting, Conditions | 33% after 3 years |
Grant Date Five [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting, Conditions | 33% after 4 years |
Grant Date Six [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting, Conditions | 34% after 5 years |
Share-based Compensation - Summ
Share-based Compensation - Summary of Grants Awarded (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2019shares$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grants | 9,354,000 |
Exercised | (6,733,782) |
Canceled | (2,325,010) |
Outstanding | 295,208 |
Exercible | $ / shares | $ 27.2 |
Grants on January 23, 2012 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grants | 4,860,000 |
Exercised | (3,850,900) |
Canceled | (1,009,100) |
Exercible | $ / shares | $ 11.5 |
Grants on March 20, 2013 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grants | 4,494,000 |
Exercised | (2,882,882) |
Canceled | (1,315,910) |
Outstanding | 295,208 |
Exercible | $ / shares | $ 15.7 |
Share-based Compensation - Disc
Share-based Compensation - Disclosure of Number and Weighted Average Exercise Prices of Share Options (Detail) - 12 months ended Dec. 31, 2019 shares in Thousands, R$ in Millions, $ in Millions | USD ($)shares | BRL (R$)shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | last sixty trading days | last sixty trading days |
Grants on March 03, 2015 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 03, 2015 | March 03, 2015 |
Grants on March 10, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 10, 2016 | March 10, 2016 |
Grants on June 09, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | June 09, 2016 | June 09, 2016 |
Grants on August 25, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | August 25, 2016 | August 25, 2016 |
Grants on August 24, 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | August 24, 2017 | August 24, 2017 |
Grants on April 12, 2018 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 12, 2018 | April 12, 2018 |
Grants on March 12, 2019 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 12, 2019 | March 12, 2019 |
Restricted virtual shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 147.8 | |
Amount of virtual stock | 6,977,316 | 6,977,316 |
Restricted virtual shares [member] | Grants on March 03, 2015 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 30.2 | |
Amount of virtual stock | 1,237,090 | 1,237,090 |
Restricted virtual shares [member] | Grants on March 10, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 31.1 | |
Amount of virtual stock | 1,095,720 | 1,095,720 |
Restricted virtual shares [member] | Grants on June 09, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 1.1 | |
Amount of virtual stock | 55,994 | 55,994 |
Restricted virtual shares [member] | Grants on August 25, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 1.1 | |
Amount of virtual stock | 70,978 | 70,978 |
Restricted virtual shares [member] | Grants on August 24, 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 30.5 | |
Amount of virtual stock | 1,930,350 | 1,930,350 |
Restricted virtual shares [member] | Grants on April 12, 2018 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 35.2 | |
Amount of virtual stock | 1,622,986 | 1,622,986 |
Restricted virtual shares [member] | Grants on March 12, 2019 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 18.6 | |
Amount of virtual stock | 964,198 | 964,198 |
Virtual performance shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 4,002,315 | 4,002,315 |
Fair value of shares | R$ | R$ 75.7 | |
Virtual performance shares [member] | Grants on March 03, 2015 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 650,178 | 650,178 |
Fair value of shares | R$ | R$ 12.3 | |
Virtual performance shares [member] | Grants on March 10, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 685,272 | 685,272 |
Fair value of shares | R$ | R$ 13.0 | |
Virtual performance shares [member] | Grants on June 09, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 43,325 | 43,325 |
Fair value of shares | R$ | R$ 0.8 | |
Virtual performance shares [member] | Grants on August 25, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 59,172 | 59,172 |
Fair value of shares | R$ | R$ 1.1 | |
Virtual performance shares [member] | Grants on August 24, 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 1,535,154 | 1,535,154 |
Fair value of shares | R$ | R$ 29.1 | |
Virtual performance shares [member] | Grants on April 12, 2018 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 794,616 | 794,616 |
Fair value of shares | R$ | R$ 15.0 | |
Virtual performance shares [member] | Grants on March 12, 2019 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 234,598 | 234,598 |
Fair value of shares | R$ | R$ 4.4 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Earnings per share [line items] | |||||
Net income (loss) attributable to owners of Embraer | $ (322.3) | $ (178.2) | [1] | $ 264 | [1] |
Net income attributable to owners of Embraer | $ (322.3) | $ (178.2) | [1] | $ 264 | [1] |
Weighted average number of shares (in thousands) | 735,850 | 734,065 | 734,264 | ||
Basic earnings per share - U.S. dollars | $ (0.44) | $ (0.24) | [1] | $ 0.36 | [1] |
Net income (loss) attributable to owners of Embraer | $ (322.3) | $ (178.2) | $ 264 | ||
Profit used to determine diluted earnings per share | $ (322.3) | $ (178.2) | $ 264 | ||
Weighted average number of shares (in thousands) - diluted | 735,850 | 734,065 | 734,264 | ||
Dilution for the issuance of stock options (in thousands) | 545 | ||||
Weighted average number of shares (in thousands) - diluted | 735,850 | 734,065 | 734,809 | ||
Diluted earnings per share - U.S. dollars | $ (0.44) | $ (0.24) | [1] | $ 0.36 | [1] |
Continuing operations [member] | |||||
Earnings per share [line items] | |||||
Net income (loss) attributable to owners of Embraer | $ (210.5) | $ (268.3) | $ (139.3) | ||
Net income attributable to owners of Embraer | $ (210.5) | $ (268.3) | $ (139.3) | ||
Weighted average number of shares (in thousands) | 735,850 | 734,065 | 734,264 | ||
Basic earnings per share - U.S. dollars | $ (0.29) | $ (0.37) | $ (0.19) | ||
Net income (loss) attributable to owners of Embraer | $ (210.5) | $ (268.3) | $ (139.3) | ||
Profit used to determine diluted earnings per share | $ (210.5) | $ (268.3) | $ (139.3) | ||
Weighted average number of shares (in thousands) - diluted | 735,850 | 734,065 | 734,264 | ||
Weighted average number of shares (in thousands) - diluted | 735,850 | 734,065 | 734,264 | ||
Diluted earnings per share - U.S. dollars | $ (0.29) | $ (0.37) | $ (0.19) | ||
Discontinued operations [member] | |||||
Earnings per share [line items] | |||||
Net income (loss) attributable to owners of Embraer | $ (111.8) | $ 90.1 | $ 403.3 | ||
Net income attributable to owners of Embraer | $ (111.8) | $ 90.1 | $ 403.3 | ||
Weighted average number of shares (in thousands) | 735,850 | 734,065 | 734,264 | ||
Basic earnings per share - U.S. dollars | $ (0.15) | $ 0.12 | $ 0.55 | ||
Net income (loss) attributable to owners of Embraer | $ (111.8) | $ 90.1 | $ 403.3 | ||
Profit used to determine diluted earnings per share | $ (111.8) | $ 90.1 | $ 403.3 | ||
Weighted average number of shares (in thousands) - diluted | 735,850 | 734,065 | 734,264 | ||
Dilution for the issuance of stock options (in thousands) | 720 | 545 | |||
Weighted average number of shares (in thousands) - diluted | 735,850 | 734,785 | 734,809 | ||
Diluted earnings per share - U.S. dollars | $ (0.15) | $ 0.12 | $ 0.55 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | ||
Antidilutive securities excluded from the computation of earnings per share | 93,025 | 719,899 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue Disaggregation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | $ 2,618.1 | $ 2,127.7 | [1] | $ 2,546.5 | [1] |
Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,844.5 | 2,943.4 | 3,312.9 | ||
Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 5,462.6 | 5,071.1 | 5,859.4 | ||
Operating Segments [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 5,462.6 | 5,071.1 | 5,859.4 | ||
North America [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,601 | 1,245 | 1,266.1 | ||
North America [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,744.6 | 1,714 | 2,071.8 | ||
North America [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 3,345.6 | 2,959 | 3,337.9 | ||
North America [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 3,345.6 | 2,959 | 3,337.9 | ||
Latin America, except Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 46.4 | 120.3 | 28.1 | ||
Latin America, except Brazil [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 30 | 29.7 | 23.5 | ||
Latin America, except Brazil [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 76.4 | 150 | 51.6 | ||
Latin America, except Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 76.4 | 150 | 51.6 | ||
Asia Pacific [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 59.8 | 42.1 | 141.3 | ||
Asia Pacific [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 317.2 | 389.9 | 718.2 | ||
Asia Pacific [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 377 | 432 | 859.5 | ||
Asia Pacific [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 377 | 432 | 859.5 | ||
Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 570.5 | 367.5 | 700 | ||
Brazil [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 32.8 | 75.5 | 48.9 | ||
Brazil [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 603.3 | 443 | 748.9 | ||
Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 603.3 | 443 | 748.9 | ||
Europe [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 297.6 | 327 | 377.1 | ||
Europe [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 626.1 | 639 | 314.5 | ||
Europe [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 923.7 | 966 | 691.6 | ||
Europe [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 923.7 | 966 | 691.6 | ||
Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 42.8 | 25.8 | 33.9 | ||
Medical benefits plan subsidiaries abroad [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 93.8 | 95.3 | 136 | ||
Medical benefits plan subsidiaries abroad [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 136.6 | 121.1 | 169.9 | ||
Medical benefits plan subsidiaries abroad [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 136.6 | 121.1 | 169.9 | ||
Commercial Aviation [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,234.4 | 2,358.3 | 2,771.4 | ||
Commercial Aviation [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,234.4 | 2,358.3 | 2,771.4 | ||
Commercial Aviation [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,234.4 | 2,358.3 | 2,771.4 | ||
Commercial Aviation [member] | Operating Segments [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,234.4 | 2,358.3 | 2,771.4 | ||
Commercial Aviation [member] | North America [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,399.8 | 1,449.4 | 1,795.5 | ||
Commercial Aviation [member] | Latin America, except Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 17 | 11.9 | 0.5 | ||
Commercial Aviation [member] | Asia Pacific [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 256.9 | 324.1 | 670.3 | ||
Commercial Aviation [member] | Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.7 | 0.2 | 0.9 | ||
Commercial Aviation [member] | Europe [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 508.2 | 519.1 | 200.1 | ||
Commercial Aviation [member] | Medical benefits plan subsidiaries abroad [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 51.8 | 53.6 | 104.1 | ||
Defense and Security [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Defense and Security [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Defense and Security [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Defense and Security [member] | North America [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 202.8 | 145.7 | 93.3 | ||
Defense and Security [member] | Latin America, except Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2.7 | 68.3 | 5.4 | ||
Defense and Security [member] | Asia Pacific [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 4.3 | 1.6 | 13.7 | ||
Defense and Security [member] | Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 431.8 | 258.9 | 587.1 | ||
Defense and Security [member] | Europe [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 96.7 | 122.8 | 133.5 | ||
Defense and Security [member] | Medical benefits plan subsidiaries abroad [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 37 | 14.8 | 20.7 | ||
Executive Jets [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Executive Jets [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Executive Jets [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Executive Jets [member] | North America [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,181.6 | 936.7 | 1,006.8 | ||
Executive Jets [member] | Latin America, except Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 21.6 | 22.5 | 0.6 | ||
Executive Jets [member] | Asia Pacific [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 20.3 | 1.6 | 94.1 | ||
Executive Jets [member] | Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 54.7 | 16.1 | 17.1 | ||
Executive Jets [member] | Europe [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 118.8 | 127.4 | 161.7 | ||
Service and support [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 437.2 | 399.8 | 398.3 | ||
Service and support [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 609.5 | 581 | 523.9 | ||
Service and support [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,046.7 | 980.8 | 922.2 | ||
Service and support [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,046.7 | 980.8 | 922.2 | ||
Service and support [member] | Operating Segments [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 609.5 | 581 | 523.9 | ||
Service and support [member] | North America [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 560.7 | 422.2 | 421 | ||
Service and support [member] | Latin America, except Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 35.1 | 47.3 | 45.1 | ||
Service and support [member] | Asia Pacific [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 95.5 | 104.7 | 81.4 | ||
Service and support [member] | Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 107.6 | 157.2 | 133.3 | ||
Service and support [member] | Europe [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 200 | 196.7 | 196.3 | ||
Service and support [member] | Medical benefits plan subsidiaries abroad [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 47.8 | 52.7 | 45.1 | ||
All Other Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 8.6 | 11.5 | 14.2 | ||
All Other Segments [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.6 | 4.1 | 17.6 | ||
All Other Segments [member] | Aggregate continuing and discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 9.2 | 15.6 | 31.8 | ||
All Other Segments [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 9.2 | 15.6 | 31.8 | ||
All Other Segments [member] | Operating Segments [member] | Discontinued operations [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.6 | 4.1 | 17.6 | ||
All Other Segments [member] | North America [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.7 | 5 | 21.3 | ||
All Other Segments [member] | Brazil [member] | Operating Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 8.5 | 10.6 | 10.5 | ||
Aircraft [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 3,592.3 | 3,373 | 3,873.9 | ||
Aircraft [member] | North America [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,549 | 2,253.8 | 2,711.5 | ||
Aircraft [member] | Latin America, except Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 21.3 | 87 | 0.2 | ||
Aircraft [member] | Asia Pacific [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 272 | 318.2 | 754 | ||
Aircraft [member] | Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 59.1 | 40.3 | 20 | ||
Aircraft [member] | Europe [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 614.3 | 644.5 | 359.3 | ||
Aircraft [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 76.6 | 29.2 | 28.9 | ||
Aircraft [member] | Commercial Aviation [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2,184.7 | 2,276.2 | 2,691.8 | ||
Aircraft [member] | Defense and Security [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 89.9 | 92.5 | |||
Aircraft [member] | Executive Jets [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1,311.9 | 997.4 | 1,175 | ||
Aircraft [member] | Service and support [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.2 | ||||
Aircraft [member] | All Other Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 5.6 | 6.9 | 7.1 | ||
Long-term contracts (Defense BU) [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 399.1 | 267 | 651.8 | ||
Long-term contracts (Defense BU) [member] | North America [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.1 | 1.9 | 38 | ||
Long-term contracts (Defense BU) [member] | Latin America, except Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1.3 | 0.1 | 1.3 | ||
Long-term contracts (Defense BU) [member] | Asia Pacific [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 2.1 | 0.7 | 9.8 | ||
Long-term contracts (Defense BU) [member] | Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 378.8 | 243.3 | 558.4 | ||
Long-term contracts (Defense BU) [member] | Europe [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 13.5 | 12.6 | 33.7 | ||
Long-term contracts (Defense BU) [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 3.3 | 8.4 | 10.6 | ||
Long-term contracts (Defense BU) [member] | Defense and Security [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 397.9 | 267 | 651.8 | ||
Long-term contracts (Defense BU) [member] | Service and support [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 1.2 | ||||
Others [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 151.5 | 191 | 192.4 | ||
Others [member] | North America [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 98.6 | 66.6 | 104.1 | ||
Others [member] | Latin America, except Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 19.2 | 11.9 | 0.2 | ||
Others [member] | Asia Pacific [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 5.7 | 5.2 | 1.7 | ||
Others [member] | Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 8.6 | 74.7 | 11.9 | ||
Others [member] | Europe [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 12.5 | 8.9 | 0.3 | ||
Others [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 6.9 | 23.7 | 74.2 | ||
Others [member] | Commercial Aviation [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 49.7 | 82.1 | 79.6 | ||
Others [member] | Defense and Security [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 16 | 2 | 7.2 | ||
Others [member] | Executive Jets [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 85.1 | 106.9 | 105.3 | ||
Others [member] | Service and support [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.7 | 0.3 | |||
Service [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 882.8 | 806.1 | 801 | ||
Service [member] | North America [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 437.5 | 353.7 | 304.1 | ||
Service [member] | Latin America, except Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 26.6 | 42.2 | 36.9 | ||
Service [member] | Asia Pacific [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 72.6 | 92.3 | 75.4 | ||
Service [member] | Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 101.3 | 42.4 | 109.4 | ||
Service [member] | Europe [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 205.1 | 230.3 | 231.5 | ||
Service [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 39.7 | 45.2 | 43.7 | ||
Service [member] | Defense and Security [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 264.2 | 183.2 | 177.8 | ||
Service [member] | Service and support [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 618.5 | 622.7 | 622.2 | ||
Service [member] | All Other Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 0.1 | 0.2 | 1 | ||
Spare Parts [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 436.9 | 434 | 340.3 | ||
Spare Parts [member] | North America [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 260.4 | 283 | 180.2 | ||
Spare Parts [member] | Latin America, except Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 8 | 8.8 | 13 | ||
Spare Parts [member] | Asia Pacific [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 24.6 | 15.6 | 18.6 | ||
Spare Parts [member] | Brazil [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 55.5 | 42.3 | 49.2 | ||
Spare Parts [member] | Europe [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 78.3 | 69.7 | 66.8 | ||
Spare Parts [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 10.1 | 14.6 | 12.5 | ||
Spare Parts [member] | Defense and Security [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 7.3 | 67.4 | 16.9 | ||
Spare Parts [member] | Service and support [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 426.1 | 358.1 | 299.7 | ||
Spare Parts [member] | All Other Segments [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | $ 3.5 | $ 8.5 | $ 23.7 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Contract balances, including contract costs (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Contract assets | $ 461.9 | $ 358 | ||
Contract costs (Other assets) | 9.1 | 9.1 | ||
Contract liabilities | 683.4 | 1,243.6 | ||
Advances from customers | 435.4 | 1,057.4 | ||
Deferred revenue | $ 248 | 186.2 | ||
Financial Guarantee | 152.1 | $ 156.8 | $ 210.8 | |
Financial Guarantee [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Financial Guarantee | $ 11.6 | $ 17.1 | $ 22.7 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
Loss on contract assets | $ 0 | $ 0 | |||
REVENUE | 2,618.1 | 2,127.7 | [1] | $ 2,546.5 | |
Performance obligations partially achieved in prior year [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 57.4 | ||||
Impairment losses recognized for costs to obtain contracts | 0 | ||||
Performance obligations satisfied partially [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 16,800 | ||||
Performance obligations expected to be satisfied in next five years [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | 13,300 | ||||
Contract Liabilities [member] | |||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||
REVENUE | $ 822.6 | $ 785.9 | |||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Revenue from Contract with Cust
Revenue from Contract with Customers - Summary of Other Assets Related to Obtain Contracts (Detail) - Other assets [member] $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Beginning Balance | $ 9 |
Additions | 3.8 |
Disposals | (3.7) |
Ending Balance | 9.1 |
Sales Commission [member] | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Beginning Balance | 0.6 |
Additions | 3 |
Disposals | (2.5) |
Ending Balance | 1.1 |
Bank Guarantees [member] | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |
Beginning Balance | 8.4 |
Additions | 0.8 |
Disposals | (1.2) |
Ending Balance | $ 8 |
Revenue (Expenses) by Type - Su
Revenue (Expenses) by Type - Summary of Revenue Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure Of Revenue Expenses By Type [abstract] | |||||
Revenue | $ 2,618.1 | $ 2,127.7 | [1] | $ 2,546.5 | [1] |
Cost of sales and services | (2,259.9) | (1,929.6) | [1] | (2,248.6) | [1] |
Administrative | (136.7) | (136.1) | [1] | (138.9) | [1] |
Selling | (148.2) | (151.4) | [1] | (169.9) | [1] |
Research | (19.7) | (19.5) | [1] | (22.2) | [1] |
Other income (expenses), net | (215.8) | (173.8) | [1] | (163.9) | [1] |
Equity in losses on associates | (0.2) | (0.4) | [1] | 1.2 | [1] |
Operating profit before financial income | (162.4) | (283.1) | [1] | (195.8) | [1] |
Revenue (expenses) by nature: | |||||
Revenue from sales of goods | 2,207 | 1,797.1 | 2,011.2 | ||
Revenue from sales of services | 462.8 | 365.1 | 600.3 | ||
Sales deductions and tax on revenue | (51.7) | (34.5) | (65) | ||
General manufacturing costs | (2,104.3) | (1,788.2) | (2,016.5) | ||
Depreciation | (90.6) | (74) | (131.5) | ||
Amortization | (65) | (67.4) | (100.6) | ||
Personnel expenses | (146.2) | (158.5) | (156) | ||
Selling expenses | (37.5) | (39.1) | (33) | ||
Miscellaneous | (336.9) | (283.6) | (304.7) | ||
Operating profit before financial income | $ (162.4) | $ (283.1) | [1] | $ (195.8) | [1] |
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Other Operating Income (Expen_3
Other Operating Income (Expense), Net - Disclosure of Other Operating Income Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Other Operating Income Expense Net [abstract] | |||||
Corporate projects | $ (123.3) | $ (72.6) | $ (33) | ||
Impairment of assets | (71.6) | (61.3) | (64.8) | ||
Taxes on other outputs | (24.4) | (21.6) | (15.3) | ||
Expenses system project | (9.3) | (13.1) | (15.4) | ||
Training and development | (5.1) | (7.8) | (8.6) | ||
Provision for contingencies | (4.3) | (11.1) | (6.7) | ||
Flight safety standards | (3.7) | (4) | (4.1) | ||
Product modifications | (0.6) | ||||
Aircraft maintenance and flights costs-fleet | (1.7) | (2.6) | (1.9) | ||
Royalties | 2.9 | 4.4 | 2.8 | ||
Other sales | 4.2 | 5 | 8.6 | ||
Recovery of expenses | 2.2 | 9.4 | 3.5 | ||
Contractual fines revenue (expenses) | 5.7 | 8.3 | (0.5) | ||
Others | 13.2 | (6.8) | (28.5) | ||
Other operating income (expense) | $ (215.8) | $ (173.8) | [1] | $ (163.9) | [1] |
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Financial Income (Expense), N_3
Financial Income (Expense), Net - Schedule of Financial Income (Expense), Net (Detail) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Financial income: | |||||
Interest on cash and cash equivalents and financial investments | $ 54.6 | $ 80.3 | $ 122.6 | ||
Interest on receivables | 36.8 | 3.6 | 24.5 | ||
Taxes over financial revenue | (7) | (9.4) | (13.4) | ||
Other | 0.2 | 2.4 | |||
Total financial income | 84.6 | 74.5 | 136.1 | ||
Financial expenses: | |||||
IOF-(tax on financial transactions) | (1.5) | (1.4) | (3.6) | ||
Interest on taxes, social charges and contributions | (6) | (5.2) | (3.6) | ||
Residual value guarantee | |||||
Interest on loans and financing | (9.5) | (39.7) | (37.5) | ||
Other | (12.4) | (13.2) | (4) | ||
Total financial expenses | (29.4) | (59.5) | (48.7) | ||
Derivative financial instruments | 6.3 | (8.9) | 7.6 | ||
Financial income (expenses), net | $ 61.5 | $ 6.1 | [1] | $ 95 | [1] |
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Foreign Exchange Gain (Loss),_3
Foreign Exchange Gain (Loss), Net - Schedule of Foreign exchange gain (loss), net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||
Advances to suppliers | $ (1.3) | ||
Tax credits | $ (8.6) | $ (26.8) | (2.5) |
Trade accounts receivable and contract assets | (8.1) | (25.7) | (18.2) |
Cash and cash equivalents and financial investments | (16.9) | (63.9) | (0.6) |
Other | 11.1 | (15.8) | (0.7) |
Total Assets | (22.5) | (132.2) | (23.3) |
Liabilities: | |||
Loans and financing | 7.5 | 81.2 | 5.4 |
Advances from customers | 7.2 | ||
Provisions | 4.2 | 14.3 | 2.9 |
Taxes and charges payable | 0.8 | 6.3 | 0.8 |
Other payables | (9.2) | 10.6 | 3.1 |
Suppliers | 15.2 | (1.5) | 0.4 |
Provisions for contingencies | 5.4 | 3.1 | (1.3) |
Other | 2.4 | (3.8) | (1.6) |
Total Liabilities | 26.3 | 110.2 | 16.9 |
Net monetary and foreign exchange variations | 3.8 | (22) | (6.4) |
Derivative financial instruments | (4.1) | 17 | 12.1 |
Foreign exchange gain (loss), net | $ (0.3) | $ (5) | $ 5.7 |
Responsibilities and Commitme_3
Responsibilities and Commitments - Additional Information (Detail) $ in Billions | Dec. 31, 2019USD ($) |
Disclosure of contingent liabilities [abstract] | |
Insured amount to cover substantial damage to assets and loss of earnings | $ 7.8 |
Responsibilities and Commitme_4
Responsibilities and Commitments - Summary of Other Provisions, Contingent Liabilities and Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [abstract] | ||
Maximum financial guarantees | $ 35.9 | $ 66.6 |
Maximum residual value guarantees | 204.3 | 253.1 |
Mutually exclusive exposure | (12.5) | (26.9) |
Provisions and liabilities recorded | (140.3) | (137) |
Off-balance sheet exposure | 87.4 | 155.8 |
Estimated proceeds from financial guarantees and underlying assets | $ 86.9 | $ 177.6 |
Supplemental Cash Flow inform_3
Supplemental Cash Flow information - Summary of Payments Made During Period and Transactions Not Affecting Cash and Cash Equivalents (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Payments made during the period: | |||
Interest | $ 184.2 | $ 200.6 | $ 186.4 |
Income tax and social contribution | 42.3 | 23.3 | 28.6 |
Non-cash financing and investing transactions | |||
Impairment of assets | (55.2) | (58.4) | |
Government grants | (4.3) | ||
Inventory [member] | |||
Non-cash financing and investing transactions | |||
Non-cash additions of property plant and equipment | (29.5) | (21.6) | |
Write off on Property, plant and equipment by transfer to pool parts inventory | (21.6) | ||
Property, plant and equipment, transfer for providing for the sale of inventory | $ (38.5) | $ (112.7) | $ (100.8) |
Segment Information - Summary o
Segment Information - Summary of Income Data By Operating Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of operating segments [line items] | |||||
REVENUE | $ 2,618.1 | $ 2,127.7 | [1] | $ 2,546.5 | [1] |
Cost of sales and services | (2,259.9) | (1,929.6) | [1] | (2,248.6) | [1] |
Gross Profit | 358.2 | 198.1 | [1] | 297.9 | [1] |
Financial income (expense), net | 61.5 | 6.1 | [1] | 95 | [1] |
Foreign exchange gain (loss), net | (0.3) | (5) | 5.7 | ||
Loss before taxes on income | (101.2) | (282) | [1] | (95.1) | [1] |
Income tax expense | (103.5) | 20.7 | [1] | (28.2) | [1] |
Net income | (316.5) | (171.2) | [1] | 280 | [1] |
Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 5,462.6 | 5,071.1 | 5,859.4 | ||
Cost of sales and services | (4,667.1) | (4,303.1) | (4,764.1) | ||
Gross Profit | $ 795.5 | $ 768 | $ 1,095.3 | ||
Gross profit % | 14.60% | 15.10% | 18.70% | ||
Operating income (expense) | $ (872.5) | $ (732.7) | $ (753.4) | ||
Operating profit before financial income (expense) | (77) | 35.3 | 341.9 | ||
Financial income (expense), net | (116.1) | (171.5) | (40.6) | ||
Foreign exchange gain (loss), net | 6.6 | ||||
Loss before taxes on income | (186.2) | (136.2) | 307.9 | ||
Income tax expense | (130.3) | (35) | (27.9) | ||
Net income | (316.5) | (171.2) | 280 | ||
Commercial Aviation [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 2,234.4 | 2,358.3 | 2,771.4 | ||
Cost of sales and services | (1,971.2) | (1,976.7) | (2,178.1) | ||
Gross Profit | $ 263.2 | $ 381.6 | $ 593.3 | ||
Gross profit % | 11.80% | 16.20% | 21.40% | ||
Operating income (expense) | $ (332.3) | $ (229.1) | $ (230.5) | ||
Operating profit before financial income (expense) | (69.1) | 152.5 | 362.8 | ||
Defense and Security [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Defense and Security [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Cost of sales and services | (711.4) | (702.3) | (792.9) | ||
Gross Profit | $ 63.9 | $ (90.2) | $ 60.8 | ||
Gross profit % | 8.20% | (14.70%) | 7.10% | ||
Operating income (expense) | $ (110.4) | $ (93) | $ (109.5) | ||
Operating profit before financial income (expense) | (46.5) | (183.2) | (48.7) | ||
Executive Jets [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Executive Jets [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Cost of sales and services | (1,211.2) | (914) | (1,126.4) | ||
Gross Profit | $ 185.8 | $ 190.3 | $ 153.9 | ||
Gross profit % | 13.30% | 17.20% | 12.00% | ||
Operating income (expense) | $ (235.2) | $ (235) | $ (206) | ||
Operating profit before financial income (expense) | (49.4) | (44.7) | (52.1) | ||
Service and support [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 437.2 | 399.8 | 398.3 | ||
Service and support [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 1,046.7 | 980.8 | 922.2 | ||
Cost of sales and services | (755.5) | (689) | (640.3) | ||
Gross Profit | $ 291.2 | $ 291.8 | $ 281.9 | ||
Gross profit % | 27.80% | 29.80% | 30.60% | ||
Operating income (expense) | $ (176.5) | $ (168.7) | $ (177) | ||
Operating profit before financial income (expense) | 114.7 | 123.1 | 104.9 | ||
All Other Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 8.6 | 11.5 | 14.2 | ||
All Other Segments [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 9.2 | 15.6 | 31.8 | ||
Cost of sales and services | (17.8) | (21.1) | (26.4) | ||
Gross Profit | $ (8.6) | $ (5.5) | $ 5.4 | ||
Gross profit % | (93.50%) | (35.30%) | 17.00% | ||
Operating income (expense) | $ (18.1) | $ (6.9) | $ (13.9) | ||
Operating profit before financial income (expense) | (26.7) | (12.4) | (8.5) | ||
Total reportable Segments [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
REVENUE | 5,462.6 | 5,071.1 | 5,859.4 | ||
Cost of sales and services | (4,667.1) | (4,303.1) | (4,764.1) | ||
Gross Profit | $ 795.5 | $ 768 | $ 1,095.3 | ||
Gross profit % | 14.60% | 15.10% | 18.70% | ||
Operating income (expense) | $ (872.5) | $ (732.7) | $ (736.9) | ||
Operating profit before financial income (expense) | (77) | 35.3 | $ 358.4 | ||
Unallocated [member] | Operating Segments [member] | |||||
Disclosure of operating segments [line items] | |||||
Gross profit % | 0.00% | ||||
Operating income (expense) | $ (16.5) | ||||
Operating profit before financial income (expense) | (16.5) | ||||
Financial income (expense), net | (116.1) | (171.5) | (40.6) | ||
Foreign exchange gain (loss), net | 6.9 | 6.6 | |||
Income tax expense | $ (130.3) | $ (35) | $ (27.9) | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Segment Information - Summary_2
Segment Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of geographical areas [line items] | |||||
REVENUE | $ 2,618.1 | $ 2,127.7 | [1] | $ 2,546.5 | [1] |
North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 1,601 | 1,245 | 1,266.1 | ||
Europe [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 297.6 | 327 | 377.1 | ||
Asia Pacific [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 59.8 | 42.1 | 141.3 | ||
Latin America, except Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 46.4 | 120.3 | 28.1 | ||
Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 570.5 | 367.5 | 700 | ||
Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 42.8 | 25.8 | 33.9 | ||
Operating Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 5,462.6 | 5,071.1 | 5,859.4 | ||
Operating Segments [member] | North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 3,345.6 | 2,959 | 3,337.9 | ||
Operating Segments [member] | Europe [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 923.7 | 966 | 691.6 | ||
Operating Segments [member] | Asia Pacific [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 377 | 432 | 859.5 | ||
Operating Segments [member] | Latin America, except Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 76.4 | 150 | 51.6 | ||
Operating Segments [member] | Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 603.3 | 443 | 748.9 | ||
Operating Segments [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 136.6 | 121.1 | 169.9 | ||
Commercial Aviation [member] | Operating Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 2,234.4 | 2,358.3 | 2,771.4 | ||
Commercial Aviation [member] | Operating Segments [member] | North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 1,399.8 | 1,449.4 | 1,795.5 | ||
Commercial Aviation [member] | Operating Segments [member] | Europe [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 508.2 | 519.1 | 200.1 | ||
Commercial Aviation [member] | Operating Segments [member] | Asia Pacific [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 256.9 | 324.1 | 670.3 | ||
Commercial Aviation [member] | Operating Segments [member] | Latin America, except Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 17 | 11.9 | 0.5 | ||
Commercial Aviation [member] | Operating Segments [member] | Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 0.7 | 0.2 | 0.9 | ||
Commercial Aviation [member] | Operating Segments [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 51.8 | 53.6 | 104.1 | ||
Defense and Security [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Defense and Security [member] | Operating Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 775.3 | 612.1 | 853.7 | ||
Defense and Security [member] | Operating Segments [member] | North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 202.8 | 145.7 | 93.3 | ||
Defense and Security [member] | Operating Segments [member] | Europe [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 96.7 | 122.8 | 133.5 | ||
Defense and Security [member] | Operating Segments [member] | Asia Pacific [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 4.3 | 1.6 | 13.7 | ||
Defense and Security [member] | Operating Segments [member] | Latin America, except Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 2.7 | 68.3 | 5.4 | ||
Defense and Security [member] | Operating Segments [member] | Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 431.8 | 258.9 | 587.1 | ||
Defense and Security [member] | Operating Segments [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 37 | 14.8 | 20.7 | ||
Executive Jets [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Executive Jets [member] | Operating Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 1,397 | 1,104.3 | 1,280.3 | ||
Executive Jets [member] | Operating Segments [member] | North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 1,181.6 | 936.7 | 1,006.8 | ||
Executive Jets [member] | Operating Segments [member] | Europe [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 118.8 | 127.4 | 161.7 | ||
Executive Jets [member] | Operating Segments [member] | Asia Pacific [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 20.3 | 1.6 | 94.1 | ||
Executive Jets [member] | Operating Segments [member] | Latin America, except Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 21.6 | 22.5 | 0.6 | ||
Executive Jets [member] | Operating Segments [member] | Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 54.7 | 16.1 | 17.1 | ||
Service and Support [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 437.2 | 399.8 | 398.3 | ||
Service and Support [member] | Operating Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 1,046.7 | 980.8 | 922.2 | ||
Service and Support [member] | Operating Segments [member] | North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 560.7 | 422.2 | 421 | ||
Service and Support [member] | Operating Segments [member] | Europe [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 200 | 196.7 | 196.3 | ||
Service and Support [member] | Operating Segments [member] | Asia Pacific [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 95.5 | 104.7 | 81.4 | ||
Service and Support [member] | Operating Segments [member] | Latin America, except Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 35.1 | 47.3 | 45.1 | ||
Service and Support [member] | Operating Segments [member] | Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 107.6 | 157.2 | 133.3 | ||
Service and Support [member] | Operating Segments [member] | Medical benefits plan subsidiaries abroad [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 47.8 | 52.7 | 45.1 | ||
All Other Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 8.6 | 11.5 | 14.2 | ||
All Other Segments [member] | Operating Segments [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 9.2 | 15.6 | 31.8 | ||
All Other Segments [member] | Operating Segments [member] | North America [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | 0.7 | 5 | 21.3 | ||
All Other Segments [member] | Operating Segments [member] | Brazil [member] | |||||
Disclosure of geographical areas [line items] | |||||
REVENUE | $ 8.5 | $ 10.6 | $ 10.5 | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Segment Information - Summary_3
Segment Information - Summary of Assets by Operating Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | $ 149.4 | $ 318 | ||
Property, plant and equipment | 968.9 | 1,964.7 | $ 2,104.9 | $ 2,154.2 |
Intangible assets | 894.1 | 1,898.8 | $ 1,882.4 | $ 1,664.6 |
Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 294.2 | 318 | ||
Property, plant and equipment | 2,058.6 | 1,964.7 | ||
Intangible assets | 2,051.7 | 1,898.8 | ||
Total | 4,404.5 | 4,181.5 | ||
Commercial Aviation [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 4.7 | 5.8 | ||
Property, plant and equipment | 859.5 | 688.8 | ||
Intangible assets | 1,048.8 | 862.5 | ||
Total | 1,913 | 1,557.1 | ||
Defense and Security [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 62 | 111.2 | ||
Property, plant and equipment | 261.6 | 295.6 | ||
Intangible assets | 16.5 | 11 | ||
Total | 340.1 | 417.8 | ||
Executive Jets [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 15.2 | 1.3 | ||
Property, plant and equipment | 456.6 | 544 | ||
Intangible assets | 750.5 | 829 | ||
Total | 1,222.3 | 1,374.3 | ||
Service and Support [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 208.6 | 192.2 | ||
Property, plant and equipment | 480.9 | 435.6 | ||
Total | 689.5 | 627.8 | ||
All Other Segments [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 3.7 | 7.5 | ||
Property, plant and equipment | 0.7 | |||
Intangible assets | 113.8 | 78.4 | ||
Total | 117.5 | 86.6 | ||
Total reportable Segments [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Trade accounts receivable | 294.2 | 318 | ||
Property, plant and equipment | 2,058.6 | 1,964.7 | ||
Intangible assets | 1,929.6 | 1,780.9 | ||
Total | 4,282.4 | 4,063.6 | ||
Unallocated [member] | Operating Segments [member] | ||||
Disclosure of geographical areas [line items] | ||||
Intangible assets | 122.1 | 117.9 | ||
Total | $ 122.1 | $ 117.9 |
Segment Information - Summary_4
Segment Information - Summary of Assets by Geographical Area (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of operating segments [line items] | ||||
Trade accounts receivable | $ 149.4 | $ 318 | ||
Property, plant and equipment | 968.9 | 1,964.7 | $ 2,104.9 | $ 2,154.2 |
Intangible assets | 894.1 | 1,898.8 | $ 1,882.4 | $ 1,664.6 |
Operating Segments [member] | ||||
Disclosure of operating segments [line items] | ||||
Trade accounts receivable | 294.2 | 318 | ||
Property, plant and equipment | 2,058.6 | 1,964.7 | ||
Intangible assets | 2,051.7 | 1,898.8 | ||
Total | 4,404.5 | 4,181.5 | ||
Operating Segments [member] | North America [member] | ||||
Disclosure of operating segments [line items] | ||||
Trade accounts receivable | 101.5 | 83.9 | ||
Property, plant and equipment | 371.5 | 351.1 | ||
Intangible assets | 79.5 | 53.6 | ||
Total | 552.5 | 488.6 | ||
Operating Segments [member] | Europe [member] | ||||
Disclosure of operating segments [line items] | ||||
Trade accounts receivable | 89.8 | 106.4 | ||
Property, plant and equipment | 556.9 | 501.6 | ||
Intangible assets | 10.4 | 5.7 | ||
Total | 657.1 | 613.7 | ||
Operating Segments [member] | Asia Pacific [member] | ||||
Disclosure of operating segments [line items] | ||||
Trade accounts receivable | 5.9 | 8.8 | ||
Property, plant and equipment | 48.3 | 57.1 | ||
Total | 54.2 | 65.9 | ||
Operating Segments [member] | Brazil [member] | ||||
Disclosure of operating segments [line items] | ||||
Trade accounts receivable | 97 | 118.9 | ||
Property, plant and equipment | 1,081.9 | 1,054.9 | ||
Intangible assets | 1,961.8 | 1,839.5 | ||
Total | $ 3,140.7 | $ 3,013.3 |
Segment Information - Summary_5
Segment Information - Summary of Reconciliation of Reportable Segments and Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | $ 2,618.1 | $ 2,127.7 | [1] | $ 2,546.5 | [1] |
Cost of sales and services | (2,259.9) | (1,929.6) | [1] | (2,248.6) | [1] |
Gross profit | 358.2 | 198.1 | [1] | 297.9 | [1] |
Service and Support [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 437.2 | 399.8 | 398.3 | ||
All Other Segments [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 8.6 | 11.5 | 14.2 | ||
Discontinued operations [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 2,844.5 | 2,943.4 | 3,312.9 | ||
Discontinued operations [member] | Commercial Aviation [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 2,234.4 | 2,358.3 | 2,771.4 | ||
Discontinued operations [member] | Service and Support [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 609.5 | 581 | 523.9 | ||
Discontinued operations [member] | All Other Segments [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 0.6 | 4.1 | 17.6 | ||
Operating segments [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 5,462.6 | 5,071.1 | 5,859.4 | ||
Cost of sales and services | (4,667.1) | (4,303.1) | (4,764.1) | ||
Gross profit | $ 795.5 | $ 768 | $ 1,095.3 | ||
Gross profit % | 14.60% | 15.10% | 18.70% | ||
Operating income (expense) | $ (872.5) | $ (732.7) | $ (753.4) | ||
Operating profit before financial income (expense) | $ (77) | $ 35.3 | $ 341.9 | ||
Operating margin % | (1.40%) | 0.70% | 5.80% | ||
Operating segments [member] | Commercial Aviation [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | $ 2,234.4 | $ 2,358.3 | $ 2,771.4 | ||
Cost of sales and services | (1,971.2) | (1,976.7) | (2,178.1) | ||
Gross profit | $ 263.2 | $ 381.6 | $ 593.3 | ||
Gross profit % | 11.80% | 16.20% | 21.40% | ||
Operating income (expense) | $ (332.3) | $ (229.1) | $ (230.5) | ||
Operating profit before financial income (expense) | (69.1) | 152.5 | 362.8 | ||
Operating segments [member] | Service and Support [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 1,046.7 | 980.8 | 922.2 | ||
Cost of sales and services | (755.5) | (689) | (640.3) | ||
Gross profit | $ 291.2 | $ 291.8 | $ 281.9 | ||
Gross profit % | 27.80% | 29.80% | 30.60% | ||
Operating income (expense) | $ (176.5) | $ (168.7) | $ (177) | ||
Operating profit before financial income (expense) | 114.7 | 123.1 | 104.9 | ||
Operating segments [member] | All Other Segments [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 9.2 | 15.6 | 31.8 | ||
Cost of sales and services | (17.8) | (21.1) | (26.4) | ||
Gross profit | $ (8.6) | $ (5.5) | $ 5.4 | ||
Gross profit % | (93.50%) | (35.30%) | 17.00% | ||
Operating income (expense) | $ (18.1) | $ (6.9) | $ (13.9) | ||
Operating profit before financial income (expense) | (26.7) | (12.4) | (8.5) | ||
Operating segments [member] | Discontinued operations [member] | Commercial Aviation [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 2,234.4 | 2,358.3 | 2,771.4 | ||
Cost of sales and services | (1,971.2) | (1,976.7) | (2,178.1) | ||
Gross profit | 263.2 | 381.6 | 593.3 | ||
Operating income (expense) | (332.3) | (229.1) | (230.5) | ||
Operating profit before financial income (expense) | (69.1) | 152.2 | 362.8 | ||
Operating segments [member] | Discontinued operations [member] | Service and Support [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 609.5 | 581 | 523.9 | ||
Cost of sales and services | (429.7) | (389.4) | (326.3) | ||
Gross profit | 179.8 | 191.6 | 197.6 | ||
Operating income (expense) | (101.1) | (99.7) | (101.3) | ||
Operating profit before financial income (expense) | 78.7 | 91.9 | 96.3 | ||
Operating segments [member] | Discontinued operations [member] | All Other Segments [member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 0.6 | 4.1 | 17.6 | ||
Cost of sales and services | (6.3) | (7.4) | (11.1) | ||
Gross profit | (5.7) | (3.3) | 6.5 | ||
Operating profit before financial income (expense) | (5.7) | (3.3) | 6.5 | ||
Operating segments [member] | Discontinued operations [member] | Corporate Expenses [Member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Operating income (expense) | 81.5 | 77.3 | 72.1 | ||
Operating profit before financial income (expense) | 77.3 | 72.1 | |||
Operating segments [member] | Continuing Operation [Member] | |||||
Disclosure of income reconciliation segment wise [line ltems] | |||||
Revenue | 2,618.1 | 2,127.7 | 2,546.5 | ||
Cost of sales and services | (2,259.9) | (1,929.6) | (2,248.6) | ||
Gross profit | $ 358.2 | $ 198.1 | $ 297.9 | ||
Gross profit % | 13.70% | 9.30% | 11.70% | ||
Operating income (expense) | $ (520.6) | $ (481.2) | $ (493.7) | ||
Operating profit before financial income (expense) | $ (162.4) | $ (283.1) | $ (195.8) | ||
Operating margin % | (6.20%) | (13.30%) | (7.70%) | ||
[1] | Consolidated statements of income for comparative years ended December 31, 2018 and 2017 were recasted to present the results of continuing operations separately from the results of the Commercial Aviation business unit and related services (discontinued operations) since the beginning of comparative periods (Note 4). |
Subsequent events - Additional
Subsequent events - Additional Information (Detail) $ in Millions | Apr. 30, 2020 | Mar. 31, 2020USD ($) | Mar. 13, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Disclosure of Events After Reporting Period [line items] | |||||||
Percentage of fleet placed in storage | 60.00% | ||||||
Impairment losses | $ 71.6 | $ 61.3 | $ 64.8 | ||||
Loan Credit And Guarantee Agreement [Member] | 3 Months LIBOR + 1.50% p.a., due on December 15, 2020 [member] | Embraer Netherlands Finance BV [member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Borrowings | $ 600 | ||||||
Effective interest rate | three months LIBOR plus 1.5% per year | ||||||
Borrowing effective interest rate | 1.50% | ||||||
Borrowings, maturity | December 15, 2020 | ||||||
COVID19 Pandemic [Member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Operating income loss increase decrease | $ 22.2 | ||||||
Expected Credit loss | $ 33.4 | ||||||
Increase decrease in currency exchange rate | 29.00% | ||||||
Announcement of plan to discontinue operation [member] | Weighted average cost of capital, measurement input [member] | Commercial Aviation Business [Member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Significant unobservable input, assets | 0.106 | ||||||
Forecast [Member] | Commercial Aviation Business [Member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Increase decrease in currency exchange rate | 10.00% | ||||||
Long-lived assets held for sale adjustments | $ 83.5 | ||||||
Forecast [Member] | Commercial Aviation Business [Member] | Bottom of range [member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Impairment losses | 163 | ||||||
Forecast [Member] | Commercial Aviation Business [Member] | Top of range [member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Impairment losses | 201 | ||||||
Announcement of plan to reclassify assets held for sale to assets held for continuous use [Member] | Commercial Aviation Business [Member] | Bottom of range [member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Impairment losses | 153 | ||||||
Announcement of plan to reclassify assets held for sale to assets held for continuous use [Member] | Commercial Aviation Business [Member] | Top of range [member] | |||||||
Disclosure of Events After Reporting Period [line items] | |||||||
Impairment losses | $ 526 |