12. Intangible assets

(a)	Intangible assets are composed as follows:


	December 31, 2017
	Cost		Accumulated amortization			Net
Expenditures related to software and technology (i)		241,490		(115,665	)		125,825
Software licenses		9,510		(2,043	)		7,467
Customer relationships		1,981		(91	)		1,890
Goodwill (ii)		23,686		-			23,686

		276,667		(117,799	)		158,868

	December 31, 2016
	Cost		Accumulated amortization			Net
Expenditures related to software and technology (i)		143,989		(61,858	)		82,131
Software licenses		5,393		(1,416	)		3,977

		149,382		(63,274	)		86,108

(i) PagSeguro Group capitalizes the expenses incurred with the development of platforms, which are amortized over the useful lives, within a range from three to five years.

(ii) Goodwill provided on the acquisition of the companies R2TECH and BIVA as described in Note 10.

(b)	The changes in cost and accumulated amortization were as follows:


	Expenditures with software and technology (i)			Software licenses			Customer relationships			Goodwill (ii)			Total
At December 31, 2016
Cost		143,989			5,393			-			-			149,382
Accumulated amortization		(61,858	)		(1,416	)		-			-			(63,274	)

Net book value		82,131			3,977			-			-			86,108

At December 31, 2017
Opening balance		82,131			3,977			-			-			86,108
Cost
Additions		97,491			1,210			971			26,184			125,856
Acquisition of subsidiary		10			1,419			-			-			1,429
Transfer		-			1,488			1,010			(2,498	)		-
Amortization
Amortization		(53,807	)		(627	)		(91	)		-			(54,526	)

Net book value		125,825			7,467			1,890			23,686			158,868

At December 31, 2017
Cost		241,490			9,510			1,981			23,686			276,667
Accumulated amortization		(115,665	)		(2,043	)		(91	)		-			(117,799	)

Net book value		125,825			7,467			1,890			23,686			158,868