Note 19 Property, plant and equipment

Property, plant and equipment movements are detailed as follows:

	Land, buildings and contruction		Machinery and equipment		Bottles and containers		Other Equipment		Assets under contruction		Furniture, accesories and vehicles		Assets under finance lease		Under production vines		Total
	ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$		ThCh$
As of January 1, 2016
Historic cost		569,642,008		428,398,944		185,024,437		117,920,217		102,094,511		60,844,400		16,447,490		29,639,562		1,510,011,569
Accumulated depreciation		(149,128,169)		(248,562,463)		(102,580,240)		(77,349,328)		-		(42,694,930)		(3,014,569)		(14,014,660)		(637,344,359)
Book Value		420,513,839		179,836,481		82,444,197		40,570,889		102,094,511		18,149,470		13,432,921		15,624,902		872,667,210

As of December 31, 2016
Additions		-		-		-		-		128,712,863		-		-		-		128,712,863
Additions for business combination		-		79,126		-		-		-		-		-		-		79,126
Transfers		22,834,409		40,559,020		26,734,419		11,477,889		(115,555,005)		12,571,079		-		1,378,189		-
Conversion effect historic cost		(5,161,938)		(9,794,457)		(10,440,956)		(3,309,017)		(716,066)		(63,653)		(1,927)		(100,704)		(29,588,718)
Write off (cost)		(421,820)		(1,114,726)		(963,296)		(602,003)		164,887		(1,425,485)		-		-		(4,362,443)
Write off (depreciation)		16,882		1,045,213		1,211,494		557,191		-		809,775		-		-		3,640,555
Capitalized interests		-		-		-		-		853,832		-		-		-		853,832
Depreciation		(16,446,343)		(22,298,558)		(20,154,538)		(9,709,915)		-		(9,495,693)		(235,007)		(1,025,552)		(79,365,606)
Conversion effect depreciation		1,743,342		4,080,872		3,082,501		4,139,993		-		252,389		578		66,872		13,366,547
Others increase (decreased)		(40,372)		1,960,728		(1,217,118)		(313,368)		(779,982)		792,760		(620,991)		-		(218,343)
Divestitures (depreciation)		(1,973,792)		(4,671,503)		(919,611)		(105,417)		-		(479,526)		-		(1,480,301)		(9,630,150)
Divestitures (depreciation)		1,366,357		4,474,718		699,573		23,026		-		375,766		-		1,010,409		7,949,849
Book Value		422,430,564		194,156,914		80,476,665		42,729,268		114,775,040		21,486,882		12,575,574		15,473,815		904,104,722

As of December 31, 2016
Historic cost		584,830,357		453,735,402		196,174,306		129,190,151		114,775,040		70,251,593		13,926,785		29,436,746		1,592,320,380
Accumulated depreciation		(162,399,793)		(259,578,488)		(115,697,641)		(86,460,883)		-		(48,764,711)		(1,351,211)		(13,962,931)		(688,215,658)
Book Value		422,430,564		194,156,914		80,476,665		42,729,268		114,775,040		21,486,882		12,575,574		15,473,815		904,104,722

As of December 31, 2017
Additions		-		-		-		-		118,850,131		-		-		-		118,850,131
Transfers		29,368,004		43,963,753		20,642,995		18,784,331		(124,150,216)		10,802,816		-		588,317		-
Conversion effect historic cost		(4,642,067)		(10,260,723)		(10,182,025)		(3,613,420)		(720,676)		(379,481)		(1,605)		(100,852)		(29,900,849)
Write off (cost)		(144,577)		(681,120)		(2,192,467)		(2,301,087)		-		(778,317)		-		-		(6,097,568)
Write off (depreciation)		122,890		609,546		1,942,571		2,241,388		-		613,585		-		-		5,529,980
Capitalized interests		-		-		-		-		1,042,045		-		-		-		1,042,045
Depreciation		(16,782,519)		(26,444,714)		(20,351,615)		(12,375,545)		-		(6,262,416)		(43,108)		(1,002,696)		(83,262,613)
Conversion effect depreciation		609,002		3,137,711		3,801,023		2,188,068		-		92,238		519		54,154		9,882,715
Others increase (decreased)		(101,686)		1,048,528		18,981		7,257		(1,189,435)		(35,064)		(138,391)		59,875		(329,935)
Divestitures (cost)		(434,512)		(322,483)		(45,081,934)		(27,295)		-		(614,206)		-		(521,685)		(47,002,115)
Divestitures (depreciation)		326,742		322,483		43,718,122		26,267		-		363,484		-		339,817		45,096,915
Book Value		430,751,841		205,529,895		72,792,316		47,659,232		108,606,889		25,289,521		12,392,989		14,890,745		917,913,428

As of December 31, 2017
Historic cost		608,854,028		485,770,049		159,541,057		142,280,575		108,606,889		79,120,713		13,816,109		29,367,600		1,627,357,020
Accumulated depreciation		(178,102,187)		(280,240,154)		(86,748,741)		(94,621,343)		-		(53,831,192)		(1,423,120)		(14,476,855)		(709,443,592)
Book Value		430,751,841		205,529,895		72,792,316		47,659,232		108,606,889		25,289,521		12,392,989		14,890,745		917,913,428

The balance of the land at the end of each year is as follows:

	As of December 31, 2017		As of December 31, 2016
	ThCh$		ThCh$
Land		225,840,815		226,136,602
Total		225,840,815		226,136,602

Capitalized interest as of December 31, 2017, amounted 1,042,045 (ThCh$ 853,832 in 2016), using an annually capitalization rate of 4.25% (4.17% in 2016).

The Company, through its subsidiary Viña San Pedro Tarapacá S.A., has biological assets corresponding to vines that produce grapes. The vines are segmented into those under formation and those under production, and they are grown both on leased and owned land. The grapes harvested from these vines are used in the manufacturing of wine, which is marketed both in the domestic market and abroad.

As of December 31, 2017, the Company maintained approximately 4,219 hectares of which 3,765 are for vines in production stage. Of the total hectares mentioned above, 3,427 correspond to own land and 338 to leased land.

The vines under formation are recorded at historic cost, and only start being depreciated when they are transferred to the production phase, which occurs in the majority of cases in the third year after plantation, when they start producing grapes commercially (in volumes that justify their production-oriented handling and later harvest).

During 2017, the production plant vines yield approximately 43.9 million kilos of grapes (49.8 million kilos of grapes in 2016).

By the nature of business of the Company, in the value of the assets it is not considered to start an allowance for cost of dismantling, removal or restoration.

In relation to the impairment losses of property, plant and equipment, the Managment has not perceived evidence of impairment with respect to these at December 31, 2017.

Assets under finance lease:

The carrying amount of land and buildings relates to finance lease agreements for the Company and its subsidiaries. Such assets will not be owned by the Company until the corresponding purchase options are exercised.

	As of December 31, 2017		As of December 31, 2016
	ThCh$		ThCh$
Land		3,215,075		3,130,181
Buildings		9,101,182		9,217,312
Machinery and equipment		76,732		228,081
Total		12,392,989		12,575,574

In Note 21, letter B) includes the detail of the lease agreements, and it also reconciles the total amount of the future minimum lease payments and their current value as regards such assets, the purchase options originated at CCU S.A. and Cervecería Kunstmann S.A.