• 
  • Consolidated Balance Sheets
  • Consolidated Statements of income Yeares Ended
  • Consolidated Statements of Comprehensive Income Years Ended
  • Consolidated Statements of Shareholders' Equity
  • Consolidated Statements of Cash Flow Years Ended
  • Notes To the Consolidated Financial Statements
    • 1. Operations
    • 2. Presentation of the Financial Statements and Accounting Practices
    • 3. Critical Accounting Estimates
    • 4. Accounting Pronouncements not yet Adopted
    • 5. First-time Adoption of IFRS
    • 6. Financial Instruments
    • 7. Cash and Cash Equivalents
    • 8. Financial Assets
    • 9. Trade Accounts Receivable, Net
    • 10. Customer and Commercial Financing
    • 11. Collateralized Accounts Receivable and Recourse and Non Recourse Debt
    • 12. Inventories
    • 13. Other Assets
    • 14. Guarantee Deposits
    • 15. Related Party Transactions
    • 16. Property, Plant and Equipment
    • 17. Intangible Assets
    • 18. Financial Liabilities by Category
    • 19. Loans and Financing
    • 20. Trade Accounts Payable
    • 21. Other Payables
    • 22. Contribution from Suppliers
    • 23. Advances from Customers
    • 24. Axes and Payroll Charges Payable and Income Tax Social Contribution
    • 25. Other Provisions
    • 26. Provisions for Contingencies
    • 27. Post-retirement Benefits
    • 28. Shareholders' Equity
    • 29. Stock Compensation
    • 30. Earnings Per Share
    • 31. Employee Profit Sharing-plan
    • 32. Other Operating (expense) Income, Net
    • 33. Revenue and (expenses) by Nature
    • 34. Financial Income (expense)
    • 35. Foreign Exchange Gains (losses), Net
    • 36. Income Taxesincome Taxes
    • 37. Impairment Test
    • 38. Financial Guarantees
    • 39. Financial Instruments
    • 40. Responsibilities and Commitments
    • 41. Insurance (unaudited)
    • 42. Additional Information of Cash Flow
    • 43. Segment Information
    • 44. Events After the Balance Sheet Date
  • Proposal to the Board of Directors
  • ANNUAL REPORT

Notes to the Consolidated Financial Statements
In millions of U.S. dollars, unless otherwise stated

9. TRADE ACCOUNTS RECEIVABLE, NET

	12.31.2010	12.31.2009	01.01.2009
Foreign customers	309.5	305.7	389.2
Brazilian Air Force (i)	64.0	124.6	95.4
Domestic customers	12.7	15.1	5.5
	386.2	445.4	490.1
Provision for doubtful accounts	(36.9)	(38.0)	(35.4)
	349.3	407.4	454.7
Less – current portion	348.6	406.9	448.8
Long – term portion	0.7	0.5	5.9

(i) Brazilian Air Force is considered a third party to the Company.

Unbilled accounts receivables recognized under the POC (Percentage-of-Completion) for defense and security business totaled US$134.5 at December 31, 2010 and revenues recorded in 2010 was US$455.4.

At December, 31 2010, the accounts receivable of US$172.8 (US$253.8 December 31, 2009 and US$290.9 January 1st, 2009) were fully performing.

At December 31, 2010, the accounts receivable of US$176.5 (December 31, 2009 US$153.6 – January 1st, 2009 US$163.8) are overdue, but not impaired. These accounts relate to independent customers with no recent default history. The analysis of past due accounts receivable is presented below:

	12.31.2010	12.31.2009	01.01.2009
Up to 90 days	153.7	103.3	109.5
From 91 to 180 days	13.3	23.5	18.8
More than 181 days	9.5	26.8	35.5
	176.5	153.6	163.8

The accounts receivable are determined in the following currencies:

	12.31.2010	12.31.2009	01.01.2009
Reais	44.7	108.2	52.0
U.S. Dollars	252.7	208.3	297.0
Euro	51.5	90.7	105.5
Other	0.4	0.2	0.2
	349.3	407.4	454.7

The changes to the allowance for doubtful accounts are summarized as follows:

	12.31.2010	12.31.2009
Beginning balance	(38.0)	(35.4)
Foreign exchange variation	1.5	(0.9)
Additions	(14.4)	(5.1)
Reversal	1.3	2.2
Disposals	12.7	1.2
Ending balance	(36.9)	(38.0)

The maximum exposure to credit risk at the latest balance sheet date is the carrying value of each class of accounts receivable. The Company does not hold any collateral as security.

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