Goodwill

12 Months Ended

Dec. 31, 2018

Intangible assets other than goodwill [abstract]

Note 18 Goodwill

The goodwill movements is detailed as follows:

	Goodwill
	ThCh $
As of January 1, 2017
Historic cost		96,926,551
Book Value		96,926,551

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

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

As of December 31, 2018
Additions for business combinations (1)		10,832,577
Other increases (decreases) (2)		21,881,066
Conversion effect		(4,286,216	)
Changes		28,427,427
Book Value		123,044,901

As of December 31, 2018
Historic cost		123,044,901
Book Value		123,044,901

(1) See

Note 15 – Business combinations

(2) Corresponds to the financial effect of the application IAS 29 "Financial reporting in hyperinflationary economies”. See

Note 4 - Accounting changes, letter b)

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, 2018		As of December 31, 2017
	(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.		8,679		47,443
	Cervecería Kunstmann S.A. (1)		456,007		-
	Sub-Total		44,410,167		43,992,924
International Business	CCU Argentina S.A. and subsidiaries		24,863,266		5,355,254
	Marzurel S.A., Coralina S.A. and Milotur S.A.		4,839,916		6,956,760
	Bebidas del Paraguay S.A. and Distribuidora del Paraguay S.A.		5,236,732		5,896,392
	Bebidas Bolivianas BBO S.A. (2)		11,278,676		-
	Sub-Total		46,218,590		18,208,406
Wines	Viña San Pedro Tarapacá S.A.		32,416,144		32,416,144
	Sub-Total		32,416,144		32,416,144
Total			123,044,901		94,617,474

(1)

See

Note 15 – Business combinations, letter b)

(2)

See

Note 15 – Business combinations, letter a)

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 8.99% to 13.28%. 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.

December 31, 2018

, t

he Company has not identified any evidence of impairment of goodwill