UNITED BREWERIES CO INC | CIK:0000888746 |

Note 17 Intangible assets other than goodwill

 

The intangible assets movement are detailed as follows:

 

		Trademarks			Software programs			Water rights			Distribution rights			Total
		ThCh$			ThCh$			ThCh$			ThCh$			ThCh$
As of January 1, 2016
Historic cost			60,966,038			24,212,125			1,914,139			904,007			87,996,309
Accumulated amortization			-			(15,928,101)			-			(200,201)			(16,128,302)
Book Value			60,966,038			8,284,024			1,914,139			703,806			71,868,007
As of December 31, 2016
Additions			40,000			4,533,631			219,163			-			4,792,794
Additions for joint operations (1)			5,614,575			-			-			-			5,614,575
Additions for business combination (2)			259,712			-			-			-			259,712
Divestitures (cost)			-			(167,825)			(42,243)			-			(210,068)
Divestitures (amortization)			-			197,910			-			-			197,910
Amortization of year			-			(2,472,425)			-			(389,166)			(2,861,591)
Conversion effect			(1,719,397)			(213,166)			-			(140,990)			(2,073,553)
Effect of conversion (amortization)			-			130,442			-			215,927			346,369
Book Value			65,160,928			10,292,591			2,091,059			389,577			77,934,155
As of December 31, 2016
Historic cost			65,160,928			28,364,765			2,091,059			763,017			96,379,769
Accumulated amortization			-			(18,072,174)			-			(373,440)			(18,445,614)
Book Value			65,160,928			10,292,591			2,091,059			389,577			77,934,155
As of December 31, 2017
Additions			-			3,498,499			158,968			-			3,657,467
Divestitures (cost)			(226)			(103,675)			-			-			(103,901)
Divestitures (amortization)			-			103,675			-			-			103,675
Amortization of year			-			(2,873,115)			-			(173,294)			(3,046,409)
Conversion effect			(1,355,703)			(260,268)			-			(103,287)			(1,719,258)
Effect of conversion (amortization)			-			167,026			-			39,725			206,751
Book Value			63,804,999			10,824,733			2,250,027			152,721			77,032,480
As of December 31, 2017
Historic cost			63,804,999			31,499,321			2,250,027			659,730			98,214,077
Accumulated amortization			-			(20,674,588)			-			(507,009)			(21,181,597)
Book Value			63,804,999			10,824,733			2,250,027			152,721			77,032,480

 

(1) See Note 1, point (2).

(2) See Note 1, point (2).

 

There are no restrictions or pledges on intangible assets.

 

The cash generating unit associates to the trademarks are detailed as follows:

 

Segment		Cash Generating Unit		As of December 31, 2017			As of December 31, 2016
		(CGU)		ThCh$			ThCh$
Chile		Embotelladoras Chilenas Unidas S.A.			31,476,163			31,476,163
		Manantial S.A.			1,166,000			1,166,000
		Compañía Pisquera de Chile S.A.			1,363,782			1,363,782
		Compañía Cervecería Kunstmann S.A.			286,518			286,744
		Subtotal			34,292,463			34,292,689
International Business		CCU Argentina S.A. and subsidiaries			3,735,289			4,774,066
		Marzurel S.A., Coralina S.A. and Milotur S.A.			2,639,301			2,822,016
		Bebidas del Paraguay S.A. y Distribuidora del Paraguay S.A.			3,356,895			3,489,969
		Subtotal			9,731,485			11,086,051
Wines		Viña San Pedro Tarapacá S.A.			19,781,051			19,782,188
		Subtotal			19,781,051			19,782,188
Total					63,804,999			65,160,928

 

Management has not found any evidence of impairment of intangible assets. The same methodology described in Note 18., has been used for trademarks with indefinite useful lives.