6) INTANGIBLE ASSETS
The following table presents the breakdown of intangible assets at December 31, 2016 and 2017 and respective changes in the year:
| Thousands of U.S. dollars | |||||||||||||
| Balance at December 31, 2015 | Additions | Acquisitions from business combination | Disposals | Transfers | Translation differences | Balance at December 31, 2016 | |||||||
| Cost | |||||||||||||
| Development | 2,422 | 1,231 | - | (52) | - | 306 | 3,907 | ||||||
| Customer base | 254,110 | - | 2,522 | - | - | 7,525 | 264,157 | ||||||
| Software | 90,278 | 8,140 | 105 | (7,546) | - | 47,073 | 138,050 | ||||||
| Other intangible assets | 39,492 | 980 | 1 | (2,422) | - | 6,788 | 44,839 | ||||||
| Work in progress | 1,198 | 2,693 | - | (6) | - | (1,062) | 2,823 | ||||||
| Total cost | 387,500 | 13,044 | 2,628 | (10,026) | - | 60,630 | 453,776 | ||||||
| Accumulated amortization | |||||||||||||
| Development | (282) | (241) | - | 33 | - | 15 | (475) | ||||||
| Customer base | (77,443) | (24,175) | - | - | (872) | (2,806) | (105,296) | ||||||
| Software | (36,637) | (21,953) | - | 6,716 | - | (16,264) | (68,138) | ||||||
| Other intangible assets | (24,665) | (4,547) | - | 287 | 872 | (3,754) | (31,807) | ||||||
| Total accumulated amortization | (139,027) | (50,916) | - | 7,036 | - | (22,809) | (205,716) | ||||||
| Impairment | (22,213) | - | - | - | - | 706 | (21,507) | ||||||
| Net intangible assets | 226,260 | (37,872) | 2,628 | (2,990) | - | 38,527 | 226,553 | ||||||
| Thousands of U.S. dollars | |||||||||||||
| Balance at December 31, 2016 | Additions | Acquisitions from business combination (Note 5) | Disposals | Transfers | Translation differences | Balance at December 31, 2017 | |||||||
| Cost | |||||||||||||
| Development | 3,907 | 1,513 | - | (7) | (627) | (90) | 4,696 | ||||||
| Customer base | 264,157 | 2,552 | 14,931 | (9) | - | 10,267 | 291,898 | ||||||
| Software | 138,050 | 12,463 | 1,468 | (3,085) | 2,115 | 7,024 | 158,035 | ||||||
| Other intangible assets | 44,839 | 18,960 | 57 | (533) | 1,155 | 775 | 65,253 | ||||||
| Work in progress | 2,823 | - | - | (259) | (2,073) | (29) | 462 | ||||||
| Total cost | 453,776 | 35,488 | 16,456 | (3,893) | 570 | 17,947 | 520,344 | ||||||
| Accumulated amortization | |||||||||||||
| Development | (475) | (235) | - | 7 | (1) | 13 | (691) | ||||||
| Customer base | (105,296) | (25,222) | - | - | - | (3,140) | (133,658) | ||||||
| Software | (68,138) | (24,669) | - | 147 | (179) | (1,066) | (93,905) | ||||||
| Other intangible assets | (31,807) | (5,069) | - | 373 | (390) | (624) | (37,517) | ||||||
| Total accumulated amortization | (205,716) | (55,195) | - | 527 | (570) | (4,817) | (265,771) | ||||||
| Impairment | (21,507) | - | - | - | - | (2,962) | (24,469) | ||||||
| Net intangible assets | 226,553 | (19,706) | 16,456 | (3,366) | - | 10,168 | 230,104 | ||||||
“Customer base” represents the fair value, of the intangible assets arising from customer relationships (tacit or explicitly formulated in contracts) with Telefónica Group and with other customers identified in business combination transactions. The addition in 2017 of new entity in the customer base is related of the acquisition of Interfile, as mentioned in Note 5.
Of the total customer base in 2017, the fair value assigned to commercial relationships with Telefónica at the acquisition date amounts to 183,658 thousand U.S. dollars, while the remaining amount relates to other customers. In terms of geographic distribution, the total amount of customer base net of impairment corresponds to businesses in Brazil (131,321 thousand U.S. dollars), Spain (52,939 thousand U.S. dollars) net of impairment, Mexico (48,173 thousand U.S. dollars), Peru (16,295 thousand U.S. dollars), Colombia (3,383 thousand U.S. dollars), Chile (10,110 thousand U.S. dollars) and Argentina and Uruguay (5,208 thousand U.S. dollars).
“Other intangible assets” mainly include payment of loyalty incentives established with customers of the Atento Brasil S.A. and the intangible asset arising from the directory services business in Atento Teleservicios España.
“Work in progress” mainly include the ERP implementation costs which are currently in progress.
In 2016 and 2017, no impairment was recognized in respect of intangible assets.