Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Composition of Intangible Assets

The composition of the balance at December 31, 2018 and 2017 is as follow:


	2018							2017
	Historical cost		Accumulated amortization			Residual value		Historical cost		Accumulated amortization			Residual value
In service
Useful life defined
Temporary easements		11		(3	)		8		12		(2	)		10
Onerous concession		19		(12	)		7		19		(11	)		8
Assets of concession		18,674		(7,994	)		10,680		17,837		(7,402	)		10,435
Others		85		(66	)		19		82		(65	)		17

		18,789		(8,075	)		10,714		17,950		(7,480	)		10,470
In progress		63					63		686		—			686

Net intangible assets		18,852		(8,075	)		10,777		18,636		(7,480	)		11,156

(1)	The rights of authorization to generate wind power granted to the investees, which are considered in the financial statements of Cemig GT as investments, are classified in the consolidated statement of financial position of Cemig GT and of the Company under Intangible assets.

Summary of Changes in Intangible Assets

Changes in Intangible assets are as follow:


	2017		Assets arising from business combination (2)		Additions		Disposals			Effects of first- time adoption of IFRS 15 (1)			Amortization			Transfer to Held for sale			Transfers			2018
In service
Useful life defined
Temporary easements		10		—		—		—			—			(1	)		—			—			9
Onerous concession		8		—		—		—			—			(1	)		—			—			7
Assets of concession		10,435		162		—		(23	)		—			(668	)		—			774			10,680
Others		17		4		1		—			—			(5	)		(7	)		8			18

		10,470		166		1		(23	)		—			(675	)		(7	)		782			10,714
In progress		686		—		33		(4	)		(621	)		—			—			(31	)		63

Net intangible assets		11,156		166		34		(27	)		(621	)		(675	)		(7	)		751			10,777

(1)	Amount transferred to Concession contract assets on January 1, 2018, as a result of the first-time adoption of IFRS 15, as described in Note 16.

(2)	The added value of the wind generation concessions, in the amount of R$162, acquired in a business combination, as per Note 17.2, refers to the rights of authorization of commercial operation, which are considered the consolidated statement of financial position as intangible assets.


	2016		Additions		Disposals			Amortization			Transfer (1)			2017
In service
Useful life defined
Temporary easements		10		—		—			—			—			10
Onerous concession		9		—		—			(1	)		—			8
Assets of concession		9,248		—		(11	)		(638	)		1,836			10,435
Others		18		—		—			(7	)		6			17

		9,285		—		(11	)		(646	)		1,842			10,470
In progress		1,535		1,105		(8	)		—			(1,946	)		686

Net intangible assets		10,820		1,105		(19	)		(646	)		(104	)		11,156

(1)	Balances transferred to financial assets.


	2015		Additions		Special obligations – write-down (1)		Disposals			Amortization			Transfers (2)			2016
In service
Useful life defined
Temporary easements		10		—		—		—			—			—			10
Onerous concession		9		—		—		—			—			—			9
Assets of concession		8,967		6		98		(32	)		(595	)		804			9,248
Others		14		—		—		—			(4	)		8			18

		9,000		6		98		(32	)		(599	)		812			9,285
In progress		1,275		1,157		—		(8	)		—			(889	)		1,535

Net intangible assets		10,275		1,163		98		(40	)		(599	)		(77	)		10,820

(1)

The write-down of a Special Obligation arises from signature of a Debt Recognition Contract by Eletrobras, in the amount of R$ 98, for restitution of amounts calculated in the final settlement of Financing and Subsidy Contracts for the Luz Para Todos (‘Light for All’) program, with funds from the CDE account, and return of funds related to the Global Reversion Reserve (RGR).

(2)	Balances transferred to financial assets.

Disclosure of Intangible Assets Principal Amortization Rates

The annual average amortization rate is 4.12%. The main amortization rates, which take into account the useful life that management expects for the asset, and reflect the expected pattern of their consumption, are as follows:


Energy	(%)		Administration	(%)
System cable – below 69 KV		6.67	Software		20
System cable – below 69 KV		3.57	Vehicles		14.29
Structure – Posts		3.57	General equipment		6.25
Overhead distribution transformer		4	Buildings		3.33
Circuit breaker – up to 69 kV		3.03
Capacitor bank – up to 69 kV		6.67
Voltage regulator – up to 69 kV		4.35


Gas	(%)		Administration	(%)
Tubing		3.33	Software		20
Buildings, works and improvements		4	Vehicles		20
Improvements in leased properties		10	Data processing equipment		20
Machinery and equipment		5 a 20	Furniture		10