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Intangible assets and goodwill

12 Months Ended

Dec. 31, 2018

Disclosure Of Intangible Assets And Goodwill [Abstract]

Disclosure of intangible assets and goodwill [text block]

Note 14

Intangible assets and goodwill

14.1

Balances

	12/31/2018		12/31/2017
	ThUS$		ThUS$
Intangible assets other than goodwill		188,283		113,787
Goodwill (1)		34,718		37,972
Total		223,001		151,759

The recoverable amount of the cash-generating unit has been determined based on a calculation of the value in use which used cash flow projections for a 5-year period, plus perpetuity.

The present value of the future cash flows generated by these assets has been estimated given a variance in sales volumes, market prices and costs, discounted at weighted average cost of capital (WACC) of 9.80%.

14.2

Disclosures on intangible assets and goodwill

Intangible assets relate to goodwill, water rights, trademarks, industrial patents, rights of way, software, and mining claims which correspond to exploitation rights acquired from third-parties.

Balances and movements in the main classes of intangible assets as of December 31, 2018 and December 31, 2017 are detailed as follows:

	12/31/2018
Intangible assets and goodwill	Useful life	Gross amount ThUS$	Accumulated Amortization ThUS$		Accumulated Impairment losses ThUS$		Net Value ThUS$

Software	Finite	28,833	(25,455	)	-		3,378
Intellectual property rights, patents and other industrial property rights, service	Finite	1,254	(1,096	)	(7	)	151
Mining property, water rights and rights of way.	Indefinite	184,849	(88	)	(1,729	)	183,032
Customer-related intangible assets	Indefinite	1,778	-		(205	)	1,573
Other intangible assets	Indefinite	149	-		-		149
Intangible assets other than goodwill		216,863	(26,639	)	(1,941	)	188,283
Goodwill	Indefinite	37,972	-		(3,254	)	34,718
Total intangible assets and goodwill		254,835	(26,639	)	(5,195	)	223,001

			12/31/2017
Intangible assets and goodwill	Useful life		Gross amount ThUS$		Accumulated Amortization ThUS$			Net Value ThUS$

Software		Finite		25,060		(19,769	)		5,291
Intellectual property rights, patents and other industrial property rights, service		Finite		1,250		(1,061	)		189
Mining property, water rights and rights of way		Indefinite		106,358		-			106,358
Customer-related intangible assets		Indefinite		1,778		-			1,778
Other intangible assets		Indefinite		171		-			171
Intangible assets other than goodwill				134,617		(20,830	)		113,787
Goodwill		Indefinite		37,972		-			37,972
Total intangible assets and goodwill				172,589		(20,830	)		151,759

Estimated useful lives or amortization rates used for finite identifiable intangible assets

Finite useful life measures the length of, or number of production or similar units constituting that useful life.

The estimated useful life for software is 2-6 years, for other assets with a finite useful life, the useful life over which they are amortized corresponds to the periods defined by the contracts or rights from which they originate.

Intellectual property rights, patents and other industrial property rights, service and exploitation rights, mainly relate to water rights and have a finite useful life to the extent to which they are subject to a fixed-term contract or otherwise they are considered to be indefinite.

The company owns mining claims granted by Corfo, which correspond to assets subject to restitution. For this reason, they are considered assets with a finite useful life and their useful life is assigned until the year 2030 when the contract ends.

Method used to assess identifiable intangible assets with indefinite useful life

The recoverable value of the cash-generating unit has been determined based on a calculation of value-in-use using cash flow projections for a period of 5 years, plus perpetuity. The present value of future cash flows generated by these assets was calculated given a variation in sales volumes, market prices and costs, discounted at a WACC rate of 8.04%.

This group of intangible assets includes water rights acquired in Chile, and mining concessions held by the company in Chile and Australia, and these rights are recorded at acquisition cost.

Minimum and maximum amortization lives or rates of intangible assets:

Estimated useful lives or amortization rate	Minimum life or rate	Maximum life or rate

Mining property, water rights and rights of way	Indefinite	Indefinite
Intangible assets other than goodwill	Indefinite	Indefinite
Intellectual property rights, patents and other industrial property rights, service and exploitation rights	1 year	16 years
Trademarks	1 year	5 years
Software	2 years	6 years

The following table shows the movements in goodwill as of December 31, 2018

Company	Goodwill 01/01/2018		Additional recognition		Impairment losses			Transferred to available for sale		Goodwill 12/31/2018
	ThUS$		ThUS$		ThUS$			ThUS$		ThUS$
SQM Industrial S.A.		3,214		-		(3,214	)		-		-
SQM S.A.		22,255		-		-			-		22,255
SQM Investment Corporation		86		-		-			-		86
Soquimich Comercial S.A.		320		-		(40	)		-		280
Soquimich European Holding		11,373		-		-			-		11,373
SQM Potasio S.A.		724		-		-			-		724
Total		37,972		-		(3,254	)		-		34,718

Information to be disclosed on assets generated internally

The Company has no intangible assets generated internally.

Movements in identifiable intangible assets as of December 31, 2018:

Movements in identifiable intangible assets, gross	Trademarks			Software			Intellectual property rights, patents and other industrial property rights, service, rights of way			Mining property, water rights and rights of way Indefinite	Customer- related intangible assets		Other intangible assets			Goodwill		Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$	ThUS$		ThUS$			ThUS$		ThUS$
Opening Balance		25,060			1,250			106,358				1,778		171			37,972		172,589
Additions		1,159			5			77,201				-		11			-		78,376
Increases (decreases) for transfers		-			-			-				-		-			-		-
Other increases / decreases for foreign currency exchange rates		(5	)		(1	)		(4	)			-		-			-		(10	)
(-) Impairment losses recognized in profit or loss for the year		-			-			-				-		-			-		-
Transferred to available for sale		-			-			-				-		-			-		-
Other increases (decreases)		2,619			-			1,294				-		(33	)		-		3,880
Total increases (decreases)		3,773			4			78,491				1,778		(22	)		-		82,246
Final balance		28,833			1,254			184,849				1,778		149			37,972		254,835

Accumulated amortization Movements in Identifiable intangible assets	IT programs			Intellectual property rights, patents and other industrial property rights, service. Finite			Mining property, water rights and rights of way Indefinite			Customer- related intangible assets			Other intangible assets		Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening Balance		(19,769	)		(1,061	)		-			-			-		-			(20,830	)
Additions		-			-			-			-			-		-			-
Other increases / decreases for foreign currency exchange rates		4			-			-			-			-		-			4
(-) Impairment losses recognized in profit or loss for the year		-			(7	)		(1,729	)		(205	)		-		(3,254	)		(5,195	)
Amortization		(2,880	)		(35	)		(88	)		-			-		-			(3,003	)
Other increases (decreases)		(2,810	)		-			-			-			-		-			(2,810	)
Total increases (decreases)		(5,686	)		(42	)		(1,817	)		(205	)		-		(3,254	)		(11,004	)
Final balance		(25,455	)		(1,103	)		(1,817	)		(205	)		-		(3,254	)		(31,834	)

Movements in identifiable intangible assets as of December 31, 2018, continued

Net value Movements in Identifiable intangible assets	IT programs			Intellectual property rights, patents and other industrial property rights, service. Finite			Mining property, water rights and rights of way Indefinite			Customer- related intangible assets			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening Balance		5,291			189			106,358			1,778			171			37,972			151,759
Additions		1,159			5			77,201			-			11			-			78,376
Increases (decreases) for transfers		-			-			-						-			-			-
Amortization		(2,880	)		(35	)		(88	)		-			-			-			(3,003	)
Impairment losses recognized in profit or loss for the year		-			(7	)		(1,729	)		(205	)		-			(3,254	)		(5,195	)
Other increases / decreases for foreign currency exchange rates		(1	)		(1	)		(4	)		-			-			-			(6	)
Transferred to available for sale		-			-			-			-			-			-			-
Other increases (decreases)		(191	)		-			1,294			-			(33	)		-			1,070
Total increases (decreases)		(1,913	)		(38	)		76,674			(205	)		(22	)		(3,254	)		71,242
Final balance		3,378			151			183,032			1,573			149			34,718			223,001

Movements in identifiable intangible assets as of December 31, 2017:

Gross value Movements in Identifiable intangible assets	IT programs		Intellectual property rights, patents and other industrial property rights, service. Finite			Mining property, water rights and rights of way Indefinite			Customer- related intangible assets			Other intangible assets		Goodwill		Identifiable intangible assets
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$		ThUS$		ThUS$
Opening Balance		23,280		1,483			106,436			2,942			-		37,972		172,113
Additions		939		8			-			-			171		-		1,118
Increases (decreases) for transfers		-		-			(205	)		-			-		-		(205	)
(-) Impairment losses recognized in profit or loss for the year		-		-			-			-			-		-		-
Other increases (decreases)		841		(241	)		127			(1,164	)		-		-		(437	)
Total increases (decreases)		1,780		(233	)		(78	)		(1,164	)		171		-		476
Final balance		25,060		1,250			106,358			1,778			171		37,972		172,589

Movements in identifiable intangible assets as of December 31, 2017:

Movements in identifiable intangible assets, accumulated amortization	Software			Intellectual property rights, patents and other industrial property rights, service, rights of way			Mining property, water rights and rights of way. Indefinite.		Customer- related intangible assets		Other intangible assets		Goodwill		Identifiable intangible assets
	ThUS$			ThUS$			ThUS$				ThUS$		ThUS$		ThUS$
Opening balance		(16,234	)		(1,023	)		-		-		-		-		(17,257	)
Additions		-			-			-		-		-		-		-
Amortization		(2,653	)		(38	)		-		-		-		-		(2,691	)
Other increases (decreases)		(882	)		-			-		-		-		-		(882	)
Total Increases (decreases)		(3,535	)		(38	)		-		-		-		-		(3,573	)
Final balance		(19,769	)		(1,061	)		-				-		-		(20,830	)

Movements in identifiable intangible assets, net	Software			Intellectual property rights, patents and other industrial property rights, service, rights of way			Mining property, water rights and rights of way. Indefinite.			Customer- related intangible assets			Other intangible assets		Goodwill		Identifiable intangible assets
	ThUS$			ThUS$			ThUS$						ThUS$		ThUS$		ThUS$
Opening balance		7,046			460			106,436			2,942			-		37,972		154,856
Additions		939			8			-			-			171		-		1,118
Increases (decreases) for transfers		-			-			(205	)		-			-		-		(205	)
Amortization		(2,653	)		(38	)		-			-			-		-		(2,691	)
Impairment		-			-			-			-			-		-		-
Increases (decreases) for transfers		-			-			-						-		-		-
Other increases (decreases)		(41	)		(241	)		127			(1,164	)		-		-		(1,319	)

Total Increases (decreases)		(1,755	)		(271	)		(78	)		(1,164	)		171		-		(3,097	)
Final balance		5,291			189			106,358			1,778			171		37,972		151,759

Movements in identifiable intangible assets as of December 31, 2016:


Movements in identifiable intangible assets, gross	Trademarks			Software			Intellectual property rights, patents and other industrial property rights, service, rights of way		Intellectual property rights, patents and other industrial property rights, service, rights of way			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$
Opening balance		3,821			23,251			1,448		96,500			3,651			38,388			167,059
Additions		-			160			25		2,100			-			-			2,285
Other increases (decreases)		(3,821	)		(131	)		10		(4	)		(314	)		(416	)		(4,676	)

Final balance		-			23,280			1,483		98,596			3,337			37,972			164,668


Movements in identifiable intangible assets, accumulated amortization	Trademarks			Software			Intellectual property rights, patents and other industrial property rights, service, rights of way			Intellectual property rights, patents and other industrial property rights, service, rights of way		Other intangible assets		Goodwill		Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$		ThUS$		ThUS$		ThUS$
Opening balance		(3,821	)		(13,438	)		(984	)		-		-		-		(18,243	)
Additions		-			-			-			-		-		-		-
Amortization		-			(2,796	)		(38	)		-		-		-		(2,834	)
Other increases (decreases)		3,821			-			(1	)		-		-		-		3,820

Final balance		-			(16,234	)		(1,023	)		-		-		-		(17,257	)

Movements in identifiable intangible assets as of December 31, 2016:


Movements in identifiable intangible assets, net	Trademarks		Software			Intellectual property rights, patents and other industrial property rights, service rights of way			Intellectual property rights, patents and other industrial property rights, service rights of way			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance		-		9,813			464			96,500			3,651			38,388			148,816
Additions		-		160			25			2,100			-			-			2,285
Amortization		-		(2,796	)		(38	)		-			-			-			(2,834	)
Other increases (decreases)		-		(131	)		9			(4	)		(314	)		(416	)		(856	)

Final balance		-		7,046			460			98,596			3,337			37,972			147,411