9. Property, leasehold improvements and equipment
Property, leasehold improvements and equipment are as follows:
|
|
|
December 31, |
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|
|
|
2017 |
|
2016 |
|
2015 |
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|
Net carrying value: |
|
|
|
|
|
|
|
|
|
|
Land (note 10) |
|
Ps. |
1,709,508 |
|
Ps. |
1,707,236 |
|
Ps. |
1,715,636 |
|
Leasehold improvements |
|
|
660,589 |
|
|
456,505 |
|
|
424,511 |
|
Machinery and equipment |
|
|
116,117 |
|
|
130,349 |
|
|
146,626 |
|
Furniture and office equipment |
|
|
47,113 |
|
|
50,835 |
|
|
61,200 |
|
Transportation equipment |
|
|
36,246 |
|
|
9,042 |
|
|
8,548 |
|
Computer equipment |
|
|
9,483 |
|
|
12,020 |
|
|
14,454 |
|
Construction in progress for leasehold improvements |
|
|
22,341 |
|
|
78,218 |
|
|
— |
|
|
|
Ps. |
2,601,397 |
|
Ps. |
2,444,205 |
|
Ps. |
2,370,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery |
|
Furniture |
|
|
|
|
|
|
|
in progress of |
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|
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|||
|
|
|
|
|
|
Leasehold |
|
and |
|
and office |
|
Transportation |
|
Computer |
|
leasehold |
|
|
|
||||||
|
Cost |
|
Land |
|
improvements |
|
equipment |
|
equipment |
|
equipment |
|
equipment |
|
improvements |
|
Total |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2015 |
|
Ps. |
1,715,636 |
|
Ps. |
338,393 |
|
Ps. |
179,697 |
|
Ps. |
133,757 |
|
Ps. |
28,043 |
|
Ps. |
50,481 |
|
Ps. |
78,671 |
|
Ps. |
2,524,678 |
|
Acquisitions |
|
|
— |
|
|
— |
|
|
14,941 |
|
|
11,407 |
|
|
2,102 |
|
|
10,878 |
|
|
109,329 |
|
|
148,657 |
|
Disposals |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,024) |
|
|
— |
|
|
— |
|
|
(1,024) |
|
Transfers |
|
|
— |
|
|
188,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(188,000) |
|
|
— |
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
(181) |
|
|
— |
|
|
(1,172) |
|
|
— |
|
|
(1,353) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2015 |
|
|
1,715,636 |
|
|
526,393 |
|
|
194,638 |
|
|
144,983 |
|
|
29,121 |
|
|
60,187 |
|
|
— |
|
|
2,670,958 |
|
Acquisitions |
|
|
— |
|
|
12,963 |
|
|
2,223 |
|
|
2,787 |
|
|
6,227 |
|
|
4,040 |
|
|
124,878 |
|
|
153,118 |
|
Disposals |
|
|
(8,400) |
|
|
— |
|
|
— |
|
|
(625) |
|
|
(3,030) |
|
|
(31) |
|
|
— |
|
|
(12,086) |
|
Transfers |
|
|
— |
|
|
46,660 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(46,660) |
|
|
— |
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2016 |
|
|
1,707,236 |
|
|
586,016 |
|
|
196,861 |
|
|
147,145 |
|
|
32,318 |
|
|
64,196 |
|
|
78,218 |
|
|
2,811,990 |
|
Acquisitions |
|
|
2,272 |
|
|
107,735 |
|
|
4,502 |
|
|
6,393 |
|
|
34,531 |
|
|
3,805 |
|
|
75,853 |
|
|
235,091 |
|
Disposals |
|
|
— |
|
|
— |
|
|
(249) |
|
|
— |
|
|
(4,532) |
|
|
(62) |
|
|
— |
|
|
(4,843) |
|
Transfers |
|
|
— |
|
|
131,730 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(131,730) |
|
|
— |
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
(183) |
|
|
(1,274) |
|
|
(242) |
|
|
— |
|
|
(1,699) |
|
Balance as of December 31, 2017 |
|
Ps. |
1,709,508 |
|
Ps. |
825,481 |
|
Ps. |
201,114 |
|
Ps. |
153,355 |
|
Ps. |
61,043 |
|
Ps. |
67,697 |
|
Ps. |
22,341 |
|
Ps. |
3,040,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction in |
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and |
|
|
|
|
|
|
|
progress of |
|
|
|
||
|
Accumulated |
|
Leasehold |
|
Machinery and |
|
office |
|
Transportation |
|
Computer |
|
leasehold |
|
|
|
||||||
|
depreciation |
|
improvements |
|
equipment |
|
equipment |
|
equipment |
|
equipment |
|
improvements |
|
Total |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2015 |
|
Ps. |
(83,154) |
|
Ps. |
(29,980) |
|
Ps. |
(71,194) |
|
Ps. |
(15,554) |
|
Ps. |
(40,482) |
|
Ps. |
— |
|
Ps. |
(240,364) |
|
Disposals |
|
|
— |
|
|
— |
|
|
— |
|
|
890 |
|
|
— |
|
|
— |
|
|
890 |
|
Depreciation |
|
|
(18,728) |
|
|
(18,032) |
|
|
(12,768) |
|
|
(5,909) |
|
|
(6,428) |
|
|
— |
|
|
(61,865) |
|
Other |
|
|
— |
|
|
— |
|
|
179 |
|
|
— |
|
|
1,177 |
|
|
— |
|
|
1,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2015 |
|
|
(101,882) |
|
|
(48,012) |
|
|
(83,783) |
|
|
(20,573) |
|
|
(45,733) |
|
|
— |
|
|
(299,983) |
|
Disposals |
|
|
— |
|
|
— |
|
|
— |
|
|
3,007 |
|
|
31 |
|
|
|
|
|
3,038 |
|
Depreciation |
|
|
(27,629) |
|
|
(18,500) |
|
|
(12,527) |
|
|
(5,710) |
|
|
(6,474) |
|
|
— |
|
|
(70,840) |
|
Other |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2016 |
|
|
(129,511) |
|
|
(66,512) |
|
|
(96,310) |
|
|
(23,276) |
|
|
(52,176) |
|
|
— |
|
|
(367,785) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposals |
|
|
— |
|
|
— |
|
|
— |
|
|
4,532 |
|
|
47 |
|
|
— |
|
|
4,579 |
|
Depreciation |
|
|
(35,342) |
|
|
(18,674) |
|
|
(10,112) |
|
|
(7,264) |
|
|
(6,323) |
|
|
— |
|
|
(77,715) |
|
Other |
|
|
(39) |
|
|
189 |
|
|
180 |
|
|
1,211 |
|
|
238 |
|
|
— |
|
|
1,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2017 |
|
Ps. |
(164,892) |
|
Ps. |
(84,997) |
|
Ps. |
(106,242) |
|
Ps. |
(24,797) |
|
Ps. |
(58,214) |
|
Ps. |
— |
|
Ps. |
(439,142) |
Operation of the Terminal 2 NH Hotel: The recoverable amount of the CGU is determined by calculating its value in use, which requires cash flow projections based on financial budgets approved by the Company’s management for the remainder of the lease period. During the projection period, the Company’s management projects an occupancy level of 88% in 2018 and, according to current trends in occupancy levels, 82% for the subsequent four-year period (2019-2022). For the years 2023 and 2024, the potential stoppage of operations of the Mexico City airport leads to a decrease of projected occupancy levels to 53% and 63%, respectively. For the remaining periods, starting in 2025, the Company’s management extrapolated cash flows using an occupancy rate comparable to that of its competitors in the market with similar levels of infrastructure and expertise, which was 71%. Management considers that a reduction in the occupancy rate from 82% to 71%, the growth levels in revenues based on expected inflation in Mexico and the use of a discount rate before taxes of 24.53% would not significantly affect the value in use, such that it would continue to exceed the carrying amount of the CGU as of December 31, 2017. Management does not believe that a reasonable change in the key assumptions of its projections, such as the occupancy rate, average rate, and/or discount rate, would cause the carrying value of the investment in Terminal 2 NH Hotel to exceed its recoverable amount.