Note 18 Goodwill

The goodwill movements is detailed as follows:

	Goodwill
	ThCh$
As of January 1, 2016
Historic cost		99,490,372
Book Value		99,490,372

As of December 31, 2016
Additions for business combination (1)		234,476
Conversion effect		(2,798,297)
Book Value		96,926,551

As of December 31, 2016
Historic cost		96,926,551
Book Value		96,926,551

As of December 31, 2017
Conversion effect		(2,309,077)
Book Value		94,617,474

As of December 31, 2017
Historic cost		94,617,474
Book Value		94,617,474

(1) See Note 1, point (2).

Goodwill on investments acquired in business combinations is assigned as of the acquisition date to the Cash Generating Units (CGU), or group of CGUs that it is expected will benefit from the business combination synergies. The carrying amount of goodwill of the investments assigned to the CGUs within the Company’s segments is detailed as follows:

Segment	Cash Generating Unit	As of December 31, 2017		As of December 31, 2016
	(CGU)	ThCh$		ThCh$
Chile	Embotelladoras Chilenas Unidas S.A.		25,257,686		25,257,686
	Manantial S.A.		8,879,245		8,879,245
	Compañía Pisquera de Chile S.A.		9,808,550		9,808,550
	Los Huemules S.R.L.		47,443		47,443
	Subtotal		43,992,924		43,992,924
International Business	CCU Argentina S.A. and subsidiaries		5,355,254		6,851,916
	Marzurel S.A., Coralina S.A. and Milotur S.A.		6,956,760		7,260,675
	Bebidas del Paraguay S.A. y Distribuidora del Paraguay S.A.		5,896,392		6,404,892
	Subtotal		18,208,406		20,517,483
Wines	Viña San Pedro Tarapacá S.A.		32,416,144		32,416,144
	Subtotal		32,416,144		32,416,144
Total			94,617,474		96,926,551

Goodwill assigned to the CGU is subject to impairment tests annually or with a higher frequency in case there are indications that any of the CGU could experience impairment. The recoverable amount of each CGU is determined as the higher of value in use or fair value less costs to sell. To determine the value in use, the Company has used cash flow projections over a 5-year span, based on the budgets and projections reviewed by Management for the same term and with an average grown-rate of 3%. The rates used to discount the projected cash flows reflect the market assessment of the specific risks related to the corresponding CGU. The pre-tax discount rates used range from a 9.2% to 10.9%. Given the materiality of the amounts involved, it was not considered relevant to describe additional information in this Note. A reasonable change in assumptions would not result in an impairment to goodwill.

As December 31, 2017, the Company has not identified any evidence of impairment of goodwill.