UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A (Amendment no. 1)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended October 2, 2011

Commission file number 1-15983

__________________________________

MERITOR, INC.

(Exact name of registrant as specified in its charter)

Indiana	38-3354643
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2135 West Maple RoadTroy, Michigan	48084-7186
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (248) 435-1000

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of each class	Name of each exchange on which registered
Common Stock, $1 Par Value	New York Stock Exchange

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes x No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding twelve months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer	x		Accelerated filer	¨
Non-accelerated filer	¨	(Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       

Yes ¨ No x

The aggregate market value of the registrant’s voting and non-voting common equity held by non-affiliates of the registrant on March 30, 2012 (the last business day of the most recently completed second fiscal quarter) was approximately $765,333,392.

96,487,135 shares of the registrant’s Common Stock, par value $1 per share, were outstanding on April 1, 2012.

DOCUMENTS INCORPORATED BY REFERENCE

Certain information contained in the Proxy Statement for the Annual Meeting of Shareowners of the registrant held on January 26, 2012 is incorporated by reference into Part III of the Annual Report on Form 10-K for the fiscal year ended October 2, 2011.

EXPLANATORY NOTE - AMENDMENT

Meritor, Inc. (the “company” or “Meritor”) is filing this Form 10-K/A to include in its Annual Report on Form 10-K for the fiscal year ended October 2, 2011 (the “Annual Report”), pursuant to Rule 3-09 of Regulation S-X under the Securities Exchange Act of 1934, financial statements and related notes of Master Sistemas Automotivos Ltda. (“MSA”) and Suspensys Sistemas Automotivos Ltda. (“SSA”), unconsolidated joint ventures incorporated in Brazil in which the company owns an interest. Meritor owns a 49% interest in MSA (directly) and a 50% interest in SSA (through both direct and indirect interests).

Rule 3-09 of Regulation S-X provides that if a 50% or less owned person accounted for by the equity method meets the first or third condition of the significant subsidiary tests set forth in Rule 1-02(w), substituting 20% for 10%, separate financial statements for such 50% or less owned person shall be filed. Such statements are required to be audited only in the years in which such person met such test.

Both MSA and SSA met such test for Meritor’s fiscal years 2011 and 2010 and did not meet such test for Meritor’s fiscal year 2009. Normally, therefore, under Rule 3-09 of Regulation S-X, the company would be required to file MSA’s and SSA’s audited financial statements for the fiscal years ended December 31, 2011 and 2010 (“2011” and “2010”) and to file unaudited financial statements for the fiscal year ended December 31, 2009 (“2009”).

Effective January 1, 2009, Brazil adopted International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The financial statements of MSA and SSA for 2011, 2010 and 2009 have been prepared in accordance with IFRS as issued by the IASB. As a result of the adoption of IFRS in 2009, MSA and SSA financial statements for 2009 have been audited.

Since the financial statement of MSA and SSA are presented in accordance with IFRS as issued by the IASB, reconciliations between local GAAP and U.S. GAAP are not required pursuant to SEC Release numbers 33-8879 and 34-57026 and have been omitted.

Item 15 is the only portion of the Annual Report being supplemented or amended by this Form 10-K/A. Additionally, in connection with the filing of this Form 10-K/A and pursuant to SEC rules, Meritor is including currently dated certifications. This Form 10-K/A does not otherwise update any exhibits as originally filed and does not otherwise reflect events occurring after the original filing date of the Annual Report. Accordingly, this Form 10-K/A should be read in conjunction with Meritor’s filings with the SEC subsequent to the filing of the Annual Report.

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PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a)Financial Statements, Financial Statement Schedules and Exhibits.

(1) Financial Statements.

Meritor

The following financial statements and related notes were filed as part of the Annual Report filed with the SEC on November 23, 2011 (all financial statements listed below are those of the company and its consolidated subsidiaries):

Consolidated Statement of Operations, years ended September 30, 2011, 2010 and 2009.

Consolidated Balance Sheet, September 30, 2011 and 2010.

Consolidated Statement of Cash Flows, years ended September 30, 2011, 2010 and 2009.

Consolidated Statement of Shareowners' Equity (Deficit) and Comprehensive Loss, years ended September 30, 2011, 2010 and 2009.

Notes to Consolidated Financial Statements.

Report of Independent Registered Public Accounting Firm.

Master Sistemas Automotivos Ltda.

The following financial statements and related notes of Master Sistemas Automotivos Ltda. are included in this Amendment No. 1 on Form 10-K/A pursuant to Rule 3-09 of Regulation S-X:

Balance Sheets, December 31, 2011, 2010 and 2009.

Statements of Income, Comprehensive Income, Changes in Shareholders’ Equity, and Cash Flows, years ended December 31, 2011, 2010 and 2009.

Independent Auditors’ Report.

Suspensys Sistemas Automotivos Ltda.

The following financial statements and related notes of Suspensys Sistemas Automotivos Ltda. are included in this Amendment No. 1 on Form 10-K/A pursuant to Rule 3-09 of Regulation S-X:

Balance Sheets, December 31, 2011, 2010 and 2009.

Statements of Income, Comprehensive Income, Changes in Shareholders’ Equity, and Cash Flows, years ended December 31, 2011, 2010 and 2009.

Independent Auditors’ Report.

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Master Sistemas Automotivos Ltda.

Financial Statements
For the Years
Ended December 31, 2011, 2010 and 2009 and Independent Auditor’s Report

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Shareholders of

Master Sistemas Automotivos Ltda.

Caxias do Sul, RS

We have audited the accompanying balance sheets of Master Sistemas Automotivos Ltda. (the “Company”), a company incorporated in Brazil, as of December 31, 2011, 2010 and 2009 and the related statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2011, 2010 and 2009 and the results of its operations and its cash flows for the years then ended in conformity with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

May 30, 2012

/s/ DELOITTE TOUCHE TOHMATSU

DELOITTE TOUCHE TOHMATSU

Auditores Independentes

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MASTER SISTEMAS AUTOMOTIVOS LTDA.

BALANCE SHEETS AS OF DECEMBER 31, 2011, 2010 AND 2009

(In thousands of Brazilian reais - R$)

ASSETS	Note	12/31/2011	12/31/2010	12/31/2009
CURRENT ASSETS
Cash and cash equivalents	4	108,055	105,273	58,080
Trade receivables	5	56,257	38,306	30,820
Recoverable taxes	6	3,822	1,464	3,254
Inventories	7	49,919	30,368	24,130
Dividends and interest on capital receivable	12	5,489	14,437	2,219
Prepaid expenses		342	133	153
Other receivables		2,282	1,627	559
Total current assets		226,166	191,608	119,215
NON-CURRENT ASSETS
Amounts due from parent company	12	44	96	354
Recoverable taxes	6	1,590	1,634	3,056
Retirement benefit plan	13	441	371	249
Escrow deposits		204	198	198
Investments:
Investment in associate	8	146,126	120,002	96,851
Other investments		26	25	25
Total investments		146,152	120,027	96,876
Property, plant and equipment	9	89,597	84,146	83,785
Intangible assets	10	10,177	4,418	344
Total non-current assets		248,205	210,890	184,862
TOTAL ASSETS		474,371	402,498	304,077
LIABILITIES AND SHAREHOLDERS' EQUITY	Note	12/31/2011	12/31/2010	12/31/2009
CURRENT LIABILITIES
Trade payables		23,942	11,213	8,780
Borrowings and financing	11	43,040	8,600	10,793
Taxes and contributions payable		4,546	2,226	2,152
Salaries payable		1,669	1,113	874
Accrued vacation and related charges		5,550	3,671	2,513
Dividends and interest on capital payable	17	11,850	22,021	4,930
Employee and management profit sharing		4,913	3,888	2,781
Advances from customers		46	295	294
Amounts due to related parties	12	150	151	—
Other payables		2,336	1,009	761
Total current liabilities		98,042	54,187	33,878
NON-CURRENT LIABILITIES
Borrowings and financing	11	62,504	74,444	51,308
Amounts due to related parties	12	1,054	1,205	1,043
Reserve for contingencies	14	690	443	—
Contributions payable		3,107	3,129	2,301
Deferred taxes	20	2,305	4,019	5,110
Other payables		93	520	594
Total long-term payables		69,753	83,760	60,356
SHAREHOLDERS' EQUITY
Capital	16	160,000	105,000	105,000
Earnings reserve		129,216	139,805	83,787
Retained earnings		17,360	19,746	21,056
Total shareholders' equity		306,576	264,551	209,843
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		474,371	402,498	304,077

The accompanying notes are an integral part of these financial statements.

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MASTER SISTEMAS AUTOMOTIVOS LTDA.

STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009

(In thousands of Brazilian reais - R$)

	Note	2011		2010		2009
NET OPERATING REVENUE	18	524,030		431,166		272,553
COST OF SALES AND SERVICES	19	(422,807	)	(347,602	)	(226,144	)
GROSS PROFIT		101,223		83,564		46,409
OPERATING INCOME (EXPENSES)
Selling expenses	19	(18,706	)	(14,520	)	(9,206	)
General and administrative expenses	19	(15,213	)	(10,623	)	(7,677	)
Equity in associate	8	52,946		43,316		27,296
Other operating expenses, net	19	(7,264	)	(5,655	)	(4,256	)
		11,763		12,518		6,157
OPERATING PROFIT BEFORE FINANCE INCOME (COSTS)		112,986		96,082		52,566
FINANCE INCOME (COSTS)
Finance income	21	17,073		11,282		6,922
Finance costs	21	(6,441	)	(5,387	)	(4,556	)
Foreign exchange gains	21	596		96		4,069
		11,228		5,991		6,435
PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION		124,214		102,073		59,001
INCOME TAX AND SOCIAL CONTRIBUTION
Current	20	(21,394	)	(16,467	)	(6,291	)
Deferred	20	1,713		1,107		(962	)
NET PROFIT FOR THE YEAR		104,533		86,713		51,748

The accompanying notes are an integral part of these financial statements.

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MASTER SISTEMAS AUTOMOTIVOS LTDA.

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009

(In thousands of Brazilian reais - R$)

	2011		2010		2009
NET PROFIT FOR THE YEAR	104,533		86,713		51,748
OTHER COMPREHENSIVE INCOME
Actuarial gains (losses) on retirement benefit plan	(1	)	46		244
Deferred income tax and social contribution on other comprehensive income	1		(16	)	(83	)
Other comprehensive income (loss) of associate accounted for under the equity method of accounting	—		32		149
	—		62		310
COMPREHENSIVE INCOME FOR THE YEAR	104,533		86,775		52,058

The accompanying notes are an integral part of these financial statements.

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MASTER SISTEMAS AUTOMOTIVOS LTDA.

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009

(In thousands of Brazilian reais - R$)

	Note	Capital	Earnings reserve		Retained earnings		Total
BALANCES AT JANUARY 01, 2009		105,000	73,921		22,129		201,050
Net profit for the year		—	—		51,748		51,748
Other comprehensive income		—	—		310		310
Comprehensive income for the year		—	—		52,058		52,058
Interest on capital	17	—	—		(10,358	)	(10,358	)
Payments of dividends	17	—	(21,107	)	(11,800	)	(32,907	)
Earnings reserve		—	30,973		(30,973	)	—
BALANCES AT DECEMBER 31, 2009		105,000	83,787		21,056		209,843
Net profit for the year		—	—		86,713		86,713
Other comprehensive income		—	—		62		62
Comprehensive income for the year		—	—		86,775		86,775
Interest on capital	17	—	—		(10,990	)	(10,990	)
Payments of dividends	17	—	(8,400	)	(12,677	)	(21,077	)
Earnings reserve		—	64,418		(64,418	)	—
BALANCES AT DECEMBER 31, 2010		105,000	139,805		19,746		264,551
Net profit for the year		—	—		104,533		104,533
Comprehensive income for the year		—	—		104,533		104,533
Capital increase	16	55,000	(55,000	)	—		—
Payment of dividends	17	—	—		(27,088	)	(27,088	)
Interest on capital	17	—	—		(13,943	)	(13,943	)
Supplementary dividends	17	—	(21,477	)	—		(21,477	)
Earnings reserve		—	65,888		(65,888	)	—
BALANCES AT DECEMBER 31, 2011		160,000	129,216		17,360		306,576

The accompanying notes are an integral part of these financial statements.

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MASTER SISTEMAS AUTOMOTIVOS LTDA.

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009

(In thousands of Brazilian reais - R$)

	Note	2011		2010		2009
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax and social contribution		124,214		102,073		59,001
Adjustments to reconcile profit before income tax and social contribution to cash generated by operating activities:
Proceeds from sale of property, plant and equipment		288		45		4
Depreciation of property, plant and equipment	9	8,916		8,317		7,963
Amortization of intangible assets	10	109		135		157
Exchange differences on borrowings		4,025		7,002		(4,896	)
Share of profits of associate	8	(52,946	)	(43,316	)	(27,296	)
Changes in assets and liabilities
Decrease (increase) in other receivables		(17,952	)	(7,486	)	3,542
Decrease (increase) in inventories		(19,551	)	(6,238	)	5,585
Decrease (increase) in other receivables		(2,682	)	1,886		5,313
Increase in trade payables		12,729		2,433		1,540
Increase in payables and provisions		6,861		3,343		1,769
Redemption of investments		—		—		32,222
Income tax and social contribution paid		(21,394	)	(16,466	)	(6,291	)
Dividends and interest on capital received		34,801		7,215		24,930
Interest paid on borrowings		(4,691	)	(3,552	)	(3,775	)
Net cash generated by operating activities		72,727		55,391		99,768
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	9	(14,658	)	(8,725	)	(7,190	)
Purchase of intangible assets	10	(5,868	)	(4,208	)	(30	)
Net cash used in investing activities		(20,526	)	(12,933	)	(7,220	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of dividends and interest on capital		(70,585	)	(13,328	)	(51,099	)
Borrowings from related parties		(94	)	570		(864	)
Third-party borrowings		29,917		27,987		37,379
Repayment of borrowings and financing		(8,657	)	(10,494	)	(32,870	)
Net cash provided by (used in) used in financing activities		(49,419	)	4,735		(47,454	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		2,782		47,193		45,094
Cash and cash equivalents at the beginning of the year	4	105,273		58,080		12,986
Cash and cash equivalents at the end of the year	4	108,055		105,273		58,080

The accompanying notes are an integral part of these financial statements.

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MASTER SISTEMAS AUTOMOTIVOS LTDA.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009

(Amounts in thousands of Brazilian reais - R$, unless otherwise stated)

1. GENERAL INFORMATION

Master Sistemas Automotivos Ltda. (“Company”) is a limited liability company established in Brazil with its head office and principal place of business at Rua Atílio Andreazza 3520, in Caxias do Sul, RS, and is a jointly controlled entity of Randon S.A. Implementos e Participações (“Randon”) and Meritor do Brasil Sistemas Automotivos Ltda. (“Meritor”) whereby Randon owns 51% and Meritor owns 49%. The Company was incorporated on April 24, 1986, having started its operations in April 1987, and is engaged in the development, manufacture, sale, assembly, distribution, import and export of movement control systems for buses, trailers and trucks and their parts and components.

The Company holds a 53.177% interest in Suspensys Sistemas Automotivos Ltda. (“Suspensys”), which has its registered office and principal place of business in Caxias do Sul, RS and is engaged in the manufacture and sale of air and mechanical suspension systems for trucks, buses and trailers, axles for trailers, third axles, hubs and drums for trucks, buses and trailers, and the provision of technical assistance services for its products.

Although the Company has a 53.177% equity interest in Suspensys, the Company does not have voting control due to the following factors:

▪ Suspensys is jointly controlled as there is an agreement between Suspensys shareholders’ (the Company, Randon and Meritor) that Suspensys’ Consultative Board (i.e., governing body) is comprised of six members, which makes the significant decisions associated with Suspensys’ operations. Three members of the consultative board are elected by Randon and the other three by Meritor and all decisions need to be agreed by at least four board members.

▪ In accordance with the articles of association, each matter discussed in Suspensys’ shareholders meeting are approved by at least 80% of the shareholders.

2. PRESENTATION OF FINANCIAL STATEMENTS

The Company’s Financial Statements for the years ended on December 31, 2011, 2010 and 2009 have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB).

The Company adopted all rules, revision of rules, and interpretations issued by IASB and that are applicable for the year ended on December 31, 2011.

The summary of the principal accounting policies adopted by the Company is detailed in note 3.

The financial statements were approved by the Company’s executive committee and authorized for issue on May 28, 2012.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Basis of preparation

The financial statements have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

3.2 Functional and presentation currency

The financial statements are presented in thousands of reais, which is the Company’s functional currency. All financial information presented in thousands of reais was rounded to the closest number.

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3.3 Critical accounting judgments and key estimates and assumptions

In the application of accounting policies, Management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Significant assets and liabilities subject to these estimates and assumptions include the residual value and useful lives of property, plant and equipment, the allowance for doubtful debts, impairment of inventories, the realization of deferred taxes, and the provision for labor and social security risks. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revision affects only that period. Actual results may differ from these estimates due to uncertainties inherent in such estimates.

3.4 Revenue recognition

Revenue is recognized on an accrual basis.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.

Revenue from the sale of goods is recognized when all the following conditions are satisfied:

• the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits associated with the transaction will flow to the Company; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Specifically, revenue from the sale of goods is recognized when goods are delivered and legal title is passed.

3.5 Foreign currencies

In preparing the Company’s financial statements, transactions in currencies other than the Company’s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date.

Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

3.6 Current and non-current assets

•Cash and cash equivalents

Include cash on hand and in banks and short-term investments redeemable in up to 90 days from the investment date. Short-term investments are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These investments are carried at cost plus yield accrued through the end of the reporting period, which approximates their fair values.

•Trade receivables

Trade receivables are recognized at the billed amount, including the related taxes and reduced to their present value at the end of the reporting period, when applicable.

Allowances for doubtful debts are recognized based on estimated irrecoverable amounts determined by reference to the Company’s past default experience and an analysis of the debtor’s current financial position.

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•Inventories

Inventories are stated at the lower of cost and net realizable value. Costs of inventories are determined under the weighted average cost method. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

The allowances for slow-moving or obsolete inventories are recognized when considered necessary by Management.

•Investments in associates

An associate is an entity over which the Company has significant influence and that does not qualify as a subsidiary or a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The profit or loss, assets, and liabilities of associates are included in the financial statements by the equity method of accounting. Under the equity method of accounting, investments in associates are initially recognized at cost and subsequently adjusted for purposes of recognition of the Company’s share in profit or loss and other comprehensive income of an associate. When the Company’s share of losses of an associate exceeds its interest in the associate (including any long-term investment which, in substance, is included in the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Further losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

When the Company’s subsidiary conducts a transaction with an associate, the resulting profits or losses are recognized only proportionately to the interests held in the associate not related to the Company.

•Property, plant and equipment

Carried at cost of acquisition, formation or construction, less accumulated depreciation and accumulated impairment losses. Properties in the course of construction are carried at cost. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Company's accounting policy (note 3.9). Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Land is not depreciated. For the other classes of property, plant and equipment, depreciation is calculated using the straight-line method at the rates mentioned in note 9, which take into consideration the estimated useful lives of assets. The estimated useful life and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of a property and equipment item is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

•Intangible assets

Intangible assets with finite useful lives that are acquired separately are carried at cost, less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from use. Gain or loss arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in profit or loss when the asset is derecognized.

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3.7 Impairment of tangible and intangible assets

At the end of each reporting period (or earlier when the need is identified), the Company reviews the carrying amount of its tangible and intangible assets to determine where there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, as long as the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years/periods. A reversal of an impairment loss is recognized immediately in profit or loss.

3.8 Discount to present value

Monetary assets and liabilities are discounted to present value when the effect is considered material in relation to the financial statements taken as a whole. The discount to present value is calculated based on an interest rate that reflects the timing and risk of each transaction.

Trade receivables are discounted to present value with a corresponding entry in sales revenue in the statement of income, and the difference between the present value of a transaction and the face value of the billing is considered as financial income and will be recognized based on the amortized cost and the effective long-term rate of the transaction.

The discount to present value of purchases is recorded in “trade payables” and “inventories”, and its realization has a corresponding entry in line item “financial expenses” over the term of their suppliers.

3.9 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets.

Income on investments earned on the short-term investment of funds of specific borrowings not yet spent on the qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the year in which they are incurred.

3.10 Retirement benefit plan

The Company is the sponsor of a defined contribution plan with minimum guaranteed benefits and the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. Actuarial gains and losses are immediately recognized in equity (in line item ‘Carrying value adjustments’) according to the available option in paragraph 93A IAS 19 - Employee Benefits.

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3.11 Financial instruments

(a)Classification and measurement

The classification depends on the purpose for which the financial assets and liabilities were acquired or contracted. The Company’s management classifies its financial assets and liabilities at the time of initial contracting.

Loans and receivables measured at amortized cost

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables (including trade receivables and cash and cash equivalents) are measured at amortized cost using the effective interest method, less any impairment.

Financial liabilities measured at amortized cost

Borrowings are initially recognized, upon receipt of funds, net of transaction costs. They are subsequently measured at amortized cost. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument.

3.12 Provisions

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Provisions for the expected cost of warranty obligations are recognized at the date of sale of the relevant products, at Management's best estimate of the expenditure required to settle the Company's obligation.

3.13 Tax incentive (FUNDOPEM)

Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Subsidized loans, directly or indirectly provided by the Government, obtained at interest rates lower than market, are treated as government grants, measured at the difference between the amounts raised and the fair value of the borrowing calculated using market interest rates.

3.14 Income tax and social contribution

Current taxes

The provision for income and social contribution is based on the taxable profit for the year. Taxable profit differs from profit as reported in the statement of income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The provision for income tax and social contribution is calculated based on rates prevailing at the end of the reporting period (15% plus a 10% surtax on taxable profit exceeding R$ 20 per month for Income Tax and 9% on taxable profit for Social Contribution on Net Profit).

Deferred taxes

Deferred taxes are recognized on temporary differences at the end of each annual reporting period between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred taxes for the period

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

3.15 Standards, interpretations and amendments to existing standards effective at December 31, 2011 which did not have a material impact on the Company’s financial statements.

Standard	Main requirements	Effective date
Improvements to IFRSs – 2010	Amendments to several standards.	Effective for annual periods beginning on or after January 1, 2011
Amendments to IFRS 1	Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters	Effective for annual periods beginning on or after July 1, 2010
Amendments to IAS 24	Related-party disclosures	Effective for annual periods beginning on or after January 1, 2011
Amendments to IFRIC 14	Prepayments of a minimum funding requirement	Effective for annual periods beginning on or after January 1, 2011
Amendments to IAS 32	Classification of rights issues	Effective for annual periods beginning on or after February 1, 2010
IFRIC 19	Extinguishing financial liabilities with equity instruments	Effective for annual periods beginning on or after July 1, 2010

3.16 Standards, interpretations and amendments to existing standards not yet effective and which were not early adopted by the Company

The following standards and amendments to existing standards have been issued by the IASB, and are mandatory for annual periods beginning on or after July 1, 2011. The Company is currently evaluating the impact, if any, of the new requirements on its consolidated financial statements resulting from these standards:

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Standard	Main requirements	Effective date
IFRS 9 (as amended in 2010)	Financial instruments	Effective for annual periods beginning on or after January 1, 2015
Amendments to IFRS 1	Removal of fixed dates for first-time adopters	Effective for annual periods beginning on or after July 1, 2011
Amendments to IFRS 7	Disclosures - transfers of financial assets	Effective for annual periods beginning on or after July 1, 2011
Amendments to IAS 12	Deferred taxes - recovery of the underlying assets when an asset is measured using the fair value model in IAS 40	Effective for annual periods beginning on or after January 1, 2012
IAS 28 (revised in 2011) Investments in Associates and Joint Ventures	Revision of IAS 28 to include the amendments introduced by IFRSs 10, 11 and 12.	Effective for annual periods beginning on or after January 1, 2013
IAS 27 (revised in 2011) Separate Financial Statements	IAS 27 requirements related to consolidated financial statements are replaced by IFRS 10. The requirements for separate financial statements are maintained.	Effective for annual periods beginning on or after January 1, 2013
IFRS 10 Consolidated Financial Statements	Replaces the IAS 27 requirements applicable to consolidated financial statements and SIC 12. IFRS 10 provides a single consolidation model that identifies control as the basis for consolidation for all types of entities.	Effective for annual periods beginning on or after January 1, 2013
IFRS 11 Joint Arrangements	Eliminates the proportionate consolidation model for jointly controlled entities and maintains equity method model only. It also eliminates the concept of ‘jointly controlled assets’ and maintains only ‘jointly controlled operations’ and ‘jointly controlled entities’.	Effective for annual periods beginning on or after January 1, 2013
IFRS 12 Disclosure of Interests in Other Entities	Expands the current disclosure requirements in respect of entities, whether or not consolidated, where the entities have influence.	Effective for annual periods beginning on or after January 1, 2013
IFRS 13 Fair Value Measurement	Replaces and consolidates in a single standard all the guidance and requirements in respect of fair value measurement contained in other IFRSs. IFRS 13 defines fair value and provides guidance on how to measure fair value and requirements for disclosure relating to fair value measurement. However, it does not introduce any new requirement or amendment with respect to items to be measured at fair value, which remain as originally issued.	Effective for annual periods beginning on or after January 1, 2013
Amendments to IAS 19 Employee Benefits	Eliminates the corridor approach and requires recognition of actuarial gains and losses as other comprehensive income for pension plans and other long-term benefits in profit or loss, when earned or incurred, among other changes.	Effective for annual periods beginning on or after January 1, 2013
Amendments to IFRS 7	Introduces the requirement that information regarding offset financial assets be disclosed.	Effective for annual periods beginning on or after January 1, 2013
Amendments to IAS 32	Clarifies aspects and requirements regarding the offset of financial assets.	Effective for annual periods beginning on or after January 1, 2014
Amendments to IAS 1 Presentation of Financial Statements	Introduces the requirement that all items recognized in other comprehensive income be separated into and totaled as items that are and items that are not subsequently reclassified to profit or loss.	Effective for annual periods beginning on or after July 1, 2012
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine	Clarifies the requirements to account for costs associated to the removal of surface mining waste, including when such stripping costs shall be recognized as an asset, how the asset is initially recognized, and subsequent measurements.	Effective for annual periods beginning on or after January 1, 2013

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4. CASH AND CASH EQUIVALENTS

Short-term investments refer to bank certificates of deposit (CDBs), linked to the variation of the interbank certificates of deposit rate (CDI). The yield on these short-term investments is as follows:

	12/31/2011	12/31/2010	12/31/2009
Cash and banks	1,971	412	467
Cash in transit	2,751	1,708	—
Short-term investments:
CDB - 75.00% to 97.49% of CDI	2,006	—	—
CDB - 97.50% to 99.99% of CDI	64	87	33
CDB - 100.00% to 100.99% of CDI	3,465	25,309	10,079
CDB - 101.00% to 101.99% of CDI	—	—	1,547
CDB - 102.00% to 102.99% of CDI	36,643	—	521
CDB - 103.00% to 103.99% of CDI	5,531	6,413	9,475
CDB - 104.00% to 104.99% of CDI	2,565	35,927	30,540
CDB - 105.00% to 105.99% of CDI	46,016	35,417	5,418
CDB - 106.00% to 106.99% of CDI	7,043	—	—
	103,333	103,153	57,613
Total	108,055	105,273	58,080

5. TRADE RECEIVABLES

Trade receivables are as follows:

	12/31/2011	12/31/2010	12/31/2009
Trade receivables from third parties – domestic	32,555	23,313	19,437
Trade receivables from third parties – foreign	1,814	49	748
Trade receivables from related parties – domestic	14,829	11,066	3,994
Trade receivables from related parties – foreign	7,059	3,878	6,641
Total	56,257	38,306	30,820

Trade receivables include amounts that are past due at the end of the reporting period for which the Company has not recognized an allowance for doubtful debts because there has not been a significant change in credit quality and the amounts are still considered recoverable, through negotiation with customers. The aging of past-due trade receivables for which no allowance for doubtful debts was recognized is as follows:

	12/31/2011	12/31/2010	12/31/2009
1 to 30 days	16,815	4,231	6,157
31 to 60 days	1,302	1,400	455
61 to 90 days	739	281	617
91 to 180 days	512	477	345
Over 180 days	67	128	324
Past-due amounts	19,435	6,517	7,898
Current amounts	36,822	31,789	22,922
Total	56,257	38,306	30,820

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To determine whether or not trade receivables are recoverable, the Company takes into consideration any change in the customer’s creditworthiness from the date the credit was originally granted to the end of the reporting period. The credit risk concentration is limited because the customer base is comprehensive and there is no relationship between customers. The Company does not hold any collateral or other credit enhancement over these receivables.

6. RECOVERABLE TAXES

Recoverable taxes are as follows:

	12/31/2011	12/31/2010	12/31/2009
Federal VAT (IPI)	286	59	66
State VAT (ICMS)	2,782	781	1,442
ICMS on purchases of property, plant and equipment	280	1,153	2,747
Tax on revenue (PIS)	282	—	21
PIS on purchases of property, plant and equipment	83	197	343
Tax on revenue (COFINS)	1,317	—	112
COFINS on purchases of property, plant and equipment	382	908	1,579
Total	5,412	3,098	6,310
Current	3,822	1,464	3,254
Non-current	1,590	1,634	3,056

Recoverable taxes in non-current assets comprise ICMS, PIS and COFINS on purchases of property, plant and equipment for which the realization, pursuant to current relevant legislation, occurs in 48 monthly installments. Of the ICMS balance, R$ 699 at December 31, 2009 refers to the purchase of ICMS credit balance from Randon S/A and will be offset pursuant to the schedule prepared by the Rio Grande do Sul State Finance Department. There are no balances at December 31, 2010 and 2011.

7. INVENTORIES

Inventories comprise:

	12/31/2011	12/31/2010	12/31/2009
Finished products	7,636	3,812	1,413
Work in process	11,449	9,585	6,372
Raw materials	27,478	13,673	13,677
Inventories in transit	875	1,266	1,176
Advances to suppliers	558	121	245
Imports in transit	1,923	1,911	1,247
Total	49,919	30,368	24,130

The cost of inventories recognized as expenses during the year related to continuing operations was R$ 422,807 (R$ 347,602 for the year ended December 31, 2010 and R$ 226,144 for the year ended December 31, 2009).

Management expects that these inventories will be recovered in a period shorter than twelve (12) months.

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8. INVESTMENTS – INVESTMENT IN ASSOCIATE

The movement in investment in associate Suspensys Sistemas Automotivos Ltda. is as follows:

	12/31/2011		12/31/2010		12/31/2009
Opening balance	120,002		96,851		85,456
Interest on capital receivable	(6,457	)	(5,100	)	(4,592	)
Reversal of dividends	—		—		1,216
Dividends receivable	—		(10,102	)	—
Dividends received	(20,363	)	(4,995	)	(12,674	)
Equity in associate (a)	52,946		43,316		27,296
Other comprehensive income	(2	)	32		149
Closing balance	146,126		120,002		96,851

(a)As established in the associate agreement and ratified by the shareholders in the minutes of meeting for approval of the profit allocation, Randon S.A. – Implementos e Participações, also shareholder of Suspensys, is entitled to receive disproportionate dividends, in an amount corresponding to the Fundopem tax benefit received by Suspensys (which amounted R$ 11,763 in 2010 and R$ 13,013 in 2009), which was a VAT reduction received by Suspensys until October, 2010 (when the benefit expired).

The Company adjusted net income of each year to eliminate the impact of the tax incentive as detailed below:

	12/31/2011		12/31/2010		12/31/2009
Suspensys’ net income	99,566		93,218		64,345
(Less) Disproportional dividend to Randon related to tax incentive	—		(11,763	)	(13,013	)
Basis for equity method	99,566		81,455		51,332
Master ownership on Suspensys	53.177	%	53.177	%	53.177	%
Equity in associate for the year	52,946		43,316		27,296

The summarized financial information on Suspensys Sistemas Automotivos is as follows:

	12/31/2011	12/31/2010	12/31/2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents	132,773	177,575	112,087
Trade receivables	141,114	90,027	71,776
Inventories	72,272	53,292	53,217
Other current assets	10,170	6,078	12,388
Total current assets	356,329	326,972	249,468
NON-CURRENT ASSETS
Property, plant and equipment	134,610	124,714	121,405
Other non-current assets	17,062	8,265	4,049
Total non-current assets	151,672	132,979	125,454
Total assets	508,001	459,951	374,922

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	12/31/2011	12/31/2010	12/31/2009
LIABILITIES
CURRENT LIABILITIES
Trade payables	52,139	35,654	48,915
Borrowings and financing	49,528	15,702	11,138
Dividends and interest on capital	10,321	37,022	4,174
Other current liabilities	32,888	26,042	18,355
Total current liabilities	144,876	114,420	82,582
NON-CURRENT LIABILITIES
Borrowings and financing	78,104	105,985	89,360
Deferred taxes	5,650	7,116	8,605
Other non-current liabilities	4,580	6,765	5,382
Total non-current liabilities	88,334	119,866	103,347
SHAREHOLDERS’ EQUITY	274,791	225,665	188,993
Total liabilities and shareholders’ equity	508,001	459,951	374,922

	2011		2010		2009
INCOME STATEMENT
Net operating revenue	1,168,437		1,011,273		643,835
Cost of sales	(957,958	)	(839,460	)	(539,112	)
GROSS PROFIT	210,479		171,813		104,723
Operating expenses, net	(86,085	)	(53,646	)	(25,858	)
Finance income, net	15,953		5,924		2,787
PROFIT BEFORE TAXES	140,347		124,091		81,652
Income tax and social contribution	(40,781	)	(30,873	)	(17,307	)
NET PROFIT FOR THE YEAR	99,566		93,218		64,345

9. PROPERTY, PLANT AND EQUIPMENT

	12/31/2011		12/31/2010		12/31/2009
Cost	168,301		159,274		152,191
Accumulated depreciation	(78,704	)	(75,128	)	(68,406	)
	89,597		84,146		83,785

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	Annual depreciation rate (%)		12/31/2011				12/31/2010	12/31/2009
			Cost	Accumulated depreciation		Net	Net	Net
Land	—	%	4,400	—		4,400	4,400	4,400
Buildings	1.69	%	28,015	(5,289	)	22,726	21,640	19,959
Machinery, equip. and molds	7.28	%	124,125	(69,076	)	55,049	52,406	55,549
Furniture and fixtures	9.53	%	6,162	(2,439	)	3,723	3,035	1,562
Vehicles	8.46	%	1,835	(1,219	)	616	767	937
Computer equipment	19.75	%	1,442	(681	)	761	358	273
Advances to suppliers	—	%	—	—		—	21	137
Property, plant and equipment in progress	—	%	2,322	—		2,322	1,519	968
Total			168,301	(78,704	)	89,597	84,146	83,785

a) Movement in cost

	Balances at						Balances at
	1/1/2009	Additions	Disposals		Transfers		12/31/2009
Land	4,400	—	—		—		4,400
Buildings	16,026	456	—		7,910		24,392
Machinery, equip. and molds	110,121	2,966	(12	)	2,407		115,482
Furniture and fixtures	3,084	283	—		13		3,380
Vehicles	2,190	44	—		—		2,234
Computer equipment	1,117	81	—		—		1,198
Advances to suppliers	614	73	—		(550	)	137
Property, plant and equipment in progress	7,461	3,287	—		(9,780	)	968
Total	145,013	7,190	(12	)	—		152,191

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	Balance at 01/01/2010	Additions	Disposals		Transfers		Balance at 12/31/2010
Land	4,400	—	—		—		4,400
Buildings	24,392	667	—		1,422		26,481
Machinery, equip. and molds	115,482	4,033	(1,370	)	166		118,311
Furniture and fixtures	3,380	1,735	(41	)	221		5,295
Vehicles	2,234	95	(185	)	(231	)	1,913
Computer equipment	1,198	182	(46	)	—		1,334
Advances to suppliers	137	—	—		(116	)	21
Property, plant and equipment in progress	968	2,013	—		(1,462	)	1,519
Total	152,191	8,725	(1,642	)	—		159,274
	Balance at 01/01/2011	Additions	Disposals		Transfers		Balance at 12/31/2011
Land	4,400	—	—		—		4,400
Buildings	26,481	1,015	—		519		28,015
Machinery, equip. and molds	118,311	9,461	(4,759	)	1,112		124,125
Furniture and fixtures	5,295	1,206	(303	)	(36	)	6,162
Vehicles	1,913	32	(110	)	—		1,835
Computer equipment	1,334	567	(459	)	—		1,442
Advances to suppliers	21	—	—		(21	)	—
Property, plant and equipment in progress (*)	1,519	2,377	—		(1,574	)	2,322
Total	159,274	14,658	(5,631	)	—		168,301

* The amount of R$ 2,322 recognized in property, plant and equipment in progress refers to a machine that after being installed will be lent to Endosul Pintura Automotiva Ltda. under a free-lease agreement.

b) Movement in accumulated depreciation

	Balances at						Balances at
	1/1/2009		Additions		Disposals	Transfers	12/31/2009
Buildings	(4,164	)	(269	)	—	—	(4,433	)
Machinery, equip. and molds	(52,737	)	(7,205	)	9	—	(59,933	)
Furniture and fixtures	(1,544	)	(274	)	—	—	(1,818	)
Vehicles	(1,158	)	(139	)	—	—	(1,297	)
Computer equipment	(849	)	(76	)	—	—	(925	)
Total	(60,452	)	(7,963	)	9	—	(68,406	)

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	Balance at 01/01/2010		Additions		Disposals	Transfers		Balance at 12/31/2010
Buildings	(4,433	)	(408	)	—	—		(4,841	)
Machinery, equip. and molds	(59,933	)	(7,324	)	1,352	—		(65,905	)
Furniture and fixtures	(1,818	)	(371	)	38	(109	)	(2,260	)
Vehicles	(1,297	)	(118	)	160	109		(1,146	)
Computer equipment	(925	)	(96	)	45	—		(976	)
Total	(68,406	)	(8,317	)	1,595	—		(75,128	)
	Balance at 01/01/2011		Additions		Disposals	Transfers		Balance at 12/31/2011
Buildings	(4,841	)	(451	)	—	3		(5,289	)
Machinery, equip. and molds	(65,905	)	(7,737	)	4,595	(29	)	(69,076	)
Furniture and fixtures	(2,260	)	(481	)	276	26		(2,439	)
Vehicles	(1,146	)	(96	)	23	—		(1,219	)
Computer equipment	(976	)	(151	)	446	—		(681	)
Total	(75,128	)	(8,916	)	5,340	—		(78,704	)

c) Assets pledged as collateral

Machinery and equipment in the residual values of R$ 930 and R$ 1,360 (R$ 911 and R$ 1,048 in 2010) were pledged as collateral for the financing from the National Bank for Economic and Social Development (BNDES), by the Company and its associate Suspensys Sistemas Automotivos Ltda., respectively.

10. INTANGIBLE ASSETS

	Annual amortization rate		Balance at 01/01/2009		Additions		Balance at 12/31/2009		Additions		Balance at 12/31/2010		Additions		Balance at 12/31/2011
Software:
Cost	20	%	1,263		30		1,293		54		1,347		5		1,352
Accumulated amortization			(792	)	(157	)	(949	)	(135	)	(1,083	)	(109	)	(1,192	)
			471		(127	)	344		(81	)	264		(104	)	160
Intangible assets in progress			—		—		—		4,154		4,154		5,863		10,017
			471		(127	)	344		4,073		4,418		5,759		10,177

Intangible assets refer to software licenses and other expenses on the implementation of the Company’s new integrated management system (ERP), which was rolled-out in January 2012.

11. BORROWINGS AND FINANCING

The purpose of the financing was the installation of plants, development of quality processes, import financing, and financing of imported machines. The financing was obtained from several Financial Institutions by means of funds raised by these institutions with the National Bank for Economic and Social Development (BNDES).

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Borrowings and financing are as follows:

Type:	Annual financial charges	Payment frequency	Final maturity	12/31/2011	12/31/2010	12/31/2009
Working capital / exports
Advance of forex contract (ACC)	US dollar plus 2.90%	Monthly	09/2012	3,752	—	—
Bank Credit Note – Exin	4.50% to 9%	Monthly	11/2013	78,519	60,580	32,595
Financing
BNDES financing	TJLP plus 2.5% to 5%	Monthly	04/2013	6,973	12,202	18,377
FINEP	4% plus the amount exceeding 6% of TJLP	Monthly	12/2011	—	1,919	4,413
FINAME	4% to 5.5% plus the amount exceeding 6% of TJLP	Monthly	01/2011	—	12	495
FINAME	UMBNES (foreign currencies) plus 4%	Monthly	10/2010	—	—	144
FININP	US dollar plus LIBOR + 1% to 4.4%	Quarterly	12/2013	1,239	1,928	2,881
BNDES financing	US dollar plus 2.5% p.a.	Monthly	04/2013	653	1,011	1,508
FUNDOPEM – ICMS (a)	IPCA plus 3%	Monthly