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Intangible assets and goodwill

12 Months Ended

Dec. 31, 2019

Disclosure Of Intangible Assets And Goodwill [Abstract]

Disclosure of intangible assets and goodwill [text block]

Note 14     Intangible assets and goodwill

14.1        Balances

Balances		As of December ‎31, 2019				As of December ‎31, 2018
		ThUS$				ThUS$
Intangible assets other than goodwill			188,358				189,350
Goodwill			34,726				34,866
Total			223,084				224,216

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, 2019 and December 31, 2018 are detailed as follows:

						As of December 31, 2019
Intangible assets and goodwill		Useful life				Gross Value				Accumulated ‎amortization				Accumulated ‎impairment				Net value
						ThUS$				ThUS$				ThUS$				ThUS$
IT programs			Finite				34,471				(28,460	)			-				6,011
Intellectual property rights, patents and other industrial property rights, service.			Finite				1,259				(1,131	)			(7	)			121
Mining property, water rights and rights of way			Indefinite				182,260				-				(2,642	)			179,618
Mining property			Finite				1,500				(206	)			-				1,294
Customer-related intangible assets			Finite				1,778				(505	)			-				1,273
Other intangible assets.			Finite				929				(888	)			-				41
Intangible assets other than goodwill							222,197				(31,190	)			(2,649	)			188,358
Goodwill			Indefinite				38,120				-				(3,394	)			34,726
Total Intangible Assets							260,317				(31,190	)			(6,043	)			223,084

						As of December 31, 2018
Intangible assets and goodwill		Useful life				Gross Value				Accumulated ‎amortization				Accumulated ‎impairment				Net value
						ThUS$				ThUS$				ThUS$				ThUS$
IT programs			Finite				29,137				(24,569	)			-				4,568
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				183,349				-				(1,729	)			181,620
Mining property			Finite				1,500				(88	)			-				1,412
Customer-related intangible assets			Finite				1,778				(205	)			-				1,573
Other intangible assets			Finite				911				(885	)			-				26
Intangible assets other than goodwill							217,929				(26,843	)			(1,736	)			189,350
Goodwill			Indefinite				38,120				-				(3,254	)			34,866
Total Intangible Assets							256,049				(26,843	)			(4,990	)			224,216

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

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

The estimated useful life for software 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, 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 property 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.

b) Method used to assess identifiable intangible assets with indefinite useful life

The recoverable value of the cash-generating unit has been determined annually based on a calculation of value-in-use using cash flow projections for a period of 5 years, plus perpetuity on December 31.

The current value of future cash flows generated by these assets has been estimated given the variation in sales volumes, market prices and costs, discounted at a weighted average cost of capital (WACC) rate of 8.48% as of December 31, 2019.

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

c) Minimum and maximum amortization life or rates of intangible assets:

Estimated useful life or amortization rate		Minimum Life or ‎Rate				Maximum Life or ‎Rate
Mining property, water rights and rights of way			Indefinite				Indefinite
Mining property			1 year				11 years
Intellectual property rights, patents and other industrial property rights, service			1 year				16 years
Commercial trademarks			1 year				5 years
IT programs			2 years				6 years

The following table shows the movements in goodwill as of December 31, 2019:

Company		Gross value ‎As of December ‎31, 2018				Additional ‎recognition				Accumulated ‎impairment ‎losses				Net value ‎As of December ‎31, 2019
		ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			3,214				-				(3,214	)			-
SQM S.A.			22,255				-				-				22,255
SQM Iberian S.A.			148				-				-				148
SQM Investment Corporation			86				-				-				86
Soquimich Comercial S.A.			320				-				(180	)			140
Soquimich European Holding			11,373				-				-				11,373
SQM Potasio S.A.			724				-				-				724
Total			38,120				-				(3,394	)			34,726

d) Information to be disclosed on assets generated internally

The Company has no intangible assets internally generated.

Impairment of goodwill and intangible assets

For the years ended December 31, 2019, 2018  and 2017, impairments of intangible assets and goodwill was recognized amounting ThUS$ 913, ThUS$1,941 and ThUS$1,164, respectively  and ThUS$ 140, ThUS$3,254 and zero, respectively.

e) Reconciliation of identifiable intangible assets as of December 31, 2019:

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				Mining ‎property finite				Customer-related ‎intangible assets				Other intangible ‎assets				Goodwill				Identifiable ‎intangible assets
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Opening Balance			29,137				1,254				183,349				1,500				1,778				911				38,120				256,049
Additions			2,606				5				227				-				-				18				-				2,856
Other increases / decreases of foreign currency			(7	)			-				(2	)			-				-				-				-				(9	)
Decreases through sale			-				-				(1,314	)			-				-				-				-				(1,314	)
Other increases (decreases)			2,735				-				-				-				-				-				-				2,735
Total increases (decreases)			5,334				5				(1,089	)			-				-				18				-				4,268
Closing balance			34,471				1,259				182,260				1,500				1,778				929				38,120				260,317

Accumulated amortization and impairment ‎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				Mining property ‎finite				Customer-related ‎intangible assets				Other intangible ‎assets				Goodwill				Identifiable ‎intangible assets
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Opening Balance			(24,569	)			(1,103	)			(1,729	)			(88	)			(205	)			(885	)			(3,254	)			(31,833	)
Other increases / decreases of foreign currency			3				-				-				-				-				-				-				3
Other increases (decreases)			(256	)			-				-				-				-				-				-				(256	)
Impairment losses recognized in profit or loss for the year			-				-				(913	)			-				-				-				(140	)			(1,053	)
Amortization			(3,638	)			(35	)			-				(118	)			(300	)			(3	)			-				(4,094	)
Total increases (decreases)			(3,891	)			(35	)			(913	)			(118	)			(300	)			(3	)			(140	)			(5,400	)
Closing balance			(28,460	)			(1,138	)			(2,642	)			(206	)			(505	)			(888	)			(3,394	)			(37,233	)

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				Mining property ‎finite				Customer-related ‎intangible assets				Other intangible ‎assets				Goodwill				Identifiable ‎intangible assets
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Opening Balance			4,568				151				181,620				1,412				1,573				26				34,866				224,216
Additions			2,606				5				227				-				-				18				-				2,856
Amortization			(3,638	)			(35	)			-				(118	)			(300	)			(3	)			-				(4,094	)
Impairment losses recognized in profit or loss for the year			-				-				(913	)			-				-				-				(140	)			(1,053	)
Other increases / decreases of foreign currency			(4	)			-				(2	)			-				-				-				-				(6	)
Decreases through sale			-				-				(1,314	)			-				-				-				-				(1,314	)
Other increases (decreases)			2,479				-				-				-				-				-				-				2,479
Total increases (decreases)			1,443				(30	)			(2,002	)			(118	)			(300	)			15				(140	)			(1,132	)
Closing balance			6,011				121				179,618				1,294				1,273				41				34,726				223,084

Reconciliation of identifiable intangible assets as of December 31, 2018:

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				Mining property ‎finite				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				104,858				1,500				1,778				171				37,972				172,589
Additions			1,159				5				77,201				-				-				11				-				78,376
Other increases / decreases of foreign currency			(5	)			(1	)			(4	)			-				-				-				-				(10	)
Other increases (decreases)			2,923				-				1,294				-				-				729				148				5,094
Total increases (decreases)			4,077				4				78,491				-				-				740				148				83,460
Closing balance			29,137				1,254				183,349				1,500				1,778				911				38,120				256,049

Accumulated amortization and impairment 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				Mining property ‎finite				Customer-related ‎intangible assets				Other intangible ‎assets				Goodwill				Identifiable ‎intangible assets
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Opening Balance			(19,769	)			(1,061	)			-				-				-				-				-				(20,830	)
Other increases / decreases of foreign currency			4				-				-				-				-				-				-				4
Impairment losses recognized in profit or loss for the year			-				(7	)			(1,729	)			-				-				-				(3,254	)			(4,990	)
Amortization			(2,880	)			(35	)			-				(88	)			(205	)			-				-				(3,208	)
Other increases (decreases)			(1,924	)			-				-				-				-				(885	)			-				(2,809	)
Total increases (decreases)			(4,800	)			(42	)			(1,729	)			(88	)			(205	)			(885	)			(3,254	)			(11,003	)
Closing balance			(24,569	)			(1,103	)			(1,729	)			(88	)			(205	)			(885	)			(3,254	)			(31,833	)

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				Mining property ‎finite				Customer-related ‎intangible assets				Other intangible ‎assets				Goodwill				Identifiable ‎intangible assets
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Opening Balance			5,291				189				104,858				1,500				1,778				171				37,972				151,759
Additions			1,159				5				77,201				-				-				11				-				78,376
Amortization			(2,880	)			(35	)			-				(88	)			(205	)			-				-				(3,208	)
Impairment losses recognized in profit or loss for the year			-				(7	)			(1,729	)			-				-				-				(3,254	)			(4,990	)
Other increases / decreases of foreign currency			(1	)			(1	)			(4	)			-				-				-				-				(6	)
Other increases (decreases)			999				-				1,294				-				-				(156	)			148				2,285
Total increases (decreases)			(723	)			(38	)			76,762				(88	)			(205	)			(145	)			(3,106	)			72,457
Closing balance			4,568				151				181,620				1,412				1,573				26				34,866				224,216

g) Reconciliation of identifiable goodwill as of December 31, 2019:

Gross Value Movements in identifiable ‎goodwill		Goodwill at ‎the start of ‎the period ‎January 01, 2019				Additional ‎recognition				Recognition ‎subsequent to ‎deferred tax ‎assets (-)				Decreases for ‎classification ‎as held for ‎sale (-)				Goodwill write-off ‎without having been ‎included previously in ‎disposal groups ‎classified as held for ‎sale (-)				Impairment ‎losses ‎recognized in ‎profit or loss for ‎the year (-)				Increase ‎(decrease) for ‎net exchange ‎differences				Increase ‎(decrease) ‎due to other ‎changes				Total increase ‎(decrease)				Goodwill at ‎end of period
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			3,214				-				-				-				-				-				-				-				-				3,214
SQM S.A.			22,255				-				-				-				-				-				-				-				-				22,255
SQM Iberian S.A.			148				-				-				-				-				-				-				-				-				148
SQM Investment Corporation			86				-				-				-				-				-				-				-				-				86
Soquimich Comercial S.A.			320				-				-				-				-				-				-				-				-				320
Soquimich European Holding B.V.			11,373				-				-				-				-				-				-				-				-				11,373
SQM Potasio S.A.			724				-				-				-				-				-				-				-				-				724
Total increases (decreases)			38,120				-				-				-				-				-				-				-				-				38,120
Closing balance			38,120				-				-				-				-				-				-				-				-				38,120

Accumulated impairment ‎Movements in identifiable goodwill		Goodwill at ‎the start of ‎the period ‎January 01, 2019				Additional ‎recognition				Recognition ‎subsequent to ‎deferred tax ‎assets (-)				Decreases for ‎classification ‎as held for ‎sale (-)				Goodwill write-off ‎without having been ‎included previously in ‎disposal groups ‎classified as held for ‎sale (-)				Impairment ‎losses ‎recognized in ‎profit or loss for ‎the year (-)				Increase ‎(decrease) for ‎net exchange ‎differences				Increase ‎(decrease) ‎due to other ‎changes				Total increase ‎(decrease)				Goodwill at ‎end of period
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			(3,214	)			-				-				-				-				-				-				-				-				(3,214	)
SQM S.A.			-				-				-				-				-				-				-				-				-				-
SQM Iberian S.A.			-				-				-				-				-				-				-				-				-				-
SQM Investment Corporation			-				-				-				-				-				-				-				-				-				-
Soquimich Comercial S.A.			(40	)			-				-				-				-				(140	)			-				-				(140	)			(180	)
Soquimich European Holding B.V.			-				-				-				-				-				-				-				-				-				-
SQM Potasio S.A.			-				-				-				-				-				-				-				-				-				-
Total increases (decreases)			(3,254	)			-				-				-				-				(140	)			-				-				(140	)			(3,394	)
Closing balance			(3,254	)			-				-				-				-				(140	)			-				-				(140	)			(3,394	)

Net Value Movements in identifiable goodwill		Goodwill at ‎the start of ‎the period ‎January 01, 2019				Additional ‎recognition				Recognition ‎subsequent to ‎deferred tax ‎assets (-)				Decreases for ‎classification ‎as held for ‎sale (-)				Goodwill write-off ‎without having been ‎included previously in ‎disposal groups ‎classified as held for ‎sale (-)				Impairment ‎losses ‎recognized in ‎profit or loss for ‎the year (-)				Increase ‎(decrease) for ‎net exchange ‎differences				Increase ‎(decrease) ‎due to other ‎changes				Total increase ‎(decrease)				Goodwill at ‎end of period
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			-				-				-				-				-				-				-				-				-				-
SQM S.A.			22,255				-				-				-				-				-				-				-				-				22,255
SQM Iberian S.A.			148				-				-				-				-				-				-				-				-				148
SQM Investment Corporation			86				-				-				-				-				-				-				-				-				86
Soquimich Comercial S.A.			280				-				-				-				-				(140	)			-				-				(140	)			140
Soquimich European Holding B.V.			11,373				-				-				-				-				-				-				-				-				11,373
SQM Potasio S.A.			724				-				-				-				-				-				-				-				-				724
Total increases (decreases)			34,866				-				-				-				-				(140	)			-				-				(140	)			34,726
Closing balance			34,866				-				-				-				-				(140	)			-				-				(140	)			34,726

h) Reconciliation of identifiable goodwill as of December 31, 2018:

Gross Value ‎Movements in identifiable goodwill		Goodwill at ‎the start of ‎the period ‎January 01, 2018				Additional ‎recognition				Recognition ‎subsequent to ‎deferred tax ‎assets (-)				Decreases for ‎classification ‎as held for ‎sale (-)				Goodwill write-off ‎without having been ‎included previously in ‎disposal groups ‎classified as held for ‎sale (-)				Impairment ‎losses ‎recognized in ‎profit or loss for ‎the year (-)				Increase ‎(decrease) for ‎net exchange ‎differences				Increase ‎(decrease) ‎due to other ‎changes				Total increase ‎(decrease)				Goodwill at ‎end of period
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			3,214				-				-				-				-				-				-				-				-				3,214
SQM S.A.			22,255				-				-				-				-				-				-				-				-				22,255
SQM Iberian S.A.			-				-				-				-				-				-				-				148				148				148
SQM Investment Corporation			86				-				-				-				-				-				-				-				-				86
Soquimich Comercial S.A.			320				-				-				-				-				-				-				-				-				320
Soquimich European Holding B.V.			11,373				-				-				-				-				-				-				-				-				11,373
SQM Potasio S.A.			724				-				-				-				-				-				-				-				-				724
Total increases (decreases)			37,972				-				-				-				-				-				-				148				148				38,120
Closing balance			37,972				-				-				-				-				-				-				148				148				38,120

Accumulated impairment ‎Movements in identifiable goodwill		Goodwill at ‎the start of ‎the period ‎January 01, 2018				Additional ‎recognition				Recognition ‎subsequent to ‎deferred tax ‎assets (-)				Decreases for ‎classification ‎as held for ‎sale (-)				Goodwill write-off ‎without having been ‎included previously in ‎disposal groups ‎classified as held for ‎sale (-)				Impairment ‎losses ‎recognized in ‎profit or loss for ‎the year (-)				Increase ‎(decrease) for ‎net exchange ‎differences				Increase ‎(decrease) ‎due to other ‎changes				Total increase ‎(decrease)				Goodwill at ‎end of period
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			-				-				-				-				-				-				-				(3,214	)			(3,214	)			(3,214	)
SQM S.A.			-				-				-				-				-				-				-				-				-				-
SQM Iberian S.A.			-				-				-				-				-				-				-				-				-				-
SQM Investment Corporation			-				-				-				-				-				-				-				-				-				-
Soquimich Comercial S.A.			-				-				-				-				-				-				-				(40	)			(40	)			(40	)
Soquimich European Holding B.V.			-				-				-				-				-				-				-				-				-				-
SQM Potasio S.A.			-				-				-				-				-				-				-				-				-				-
Total increases (decreases)			-				-				-				-				-				-				-				(3,254	)			(3,254	)			(3,254	)
Closing balance			-				-				-				-				-				-				-				(3,254	)			(3,254	)			(3,254	)

Net Value ‎Movements in identifiable goodwill		Goodwill at ‎the start of ‎the period ‎January 01, 2018				Additional ‎recognition				Recognition ‎subsequent to ‎deferred tax ‎assets (-)				Decreases for ‎classification ‎as held for ‎sale (-)				Goodwill write-off ‎without having been ‎included previously in ‎disposal groups ‎classified as held for ‎sale (-)				Impairment ‎losses ‎recognized in ‎profit or loss for ‎the year (-)				Increase ‎(decrease) for ‎net exchange ‎differences				Increase ‎(decrease) ‎due to other ‎changes				Total increase ‎(decrease)				Goodwill at ‎end of period
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
SQM Industrial S.A.			3,214				-				-				-				-				-				-				(3,214	)			(3,214	)			-
SQM S.A.			22,255				-				-				-				-				-				-				-				-				22,255
SQM Iberian S.A.			-				-				-				-				-				-				-				148				148				148
SQM Investment Corporation			86				-				-				-				-				-				-				-				-				86
Soquimich Comercial S.A.			320				-				-				-				-				-				-				(40	)			(40	)			280
Soquimich European Holding B.V.			11,373				-				-				-				-				-				-				-				-				11,373
SQM Potasio S.A.			724				-				-				-				-				-				-				-				-				724
Total increases (decreases)			37,972				-				-				-				-				-				-				(3,106	)			(3,106	)			34,866
Closing balance			37,972				-				-				-				-				-				-				(3,106	)			(3,106	)			34,866

X

- Definition

The disclosure of intangible assets and goodwill. [Refer: Intangible assets and goodwill]

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IAS
-Number 1
-IssueDate 2019-01-01
-Paragraph 10
-Subparagraph e
-URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2019-en-r&anchor=para_10_e&doctype=Standard
-URIDate 2019-03-27

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Data Type:	nonnum:textBlockItemType
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X

- References

No definition available.

+ Details

Name:	sqm_DisclosureOfIntangibleAssetsAndGoodwillAbstract
Namespace Prefix:	sqm_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration