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Property, plant and equipment
 12 Months Ended
Dec. 31, 2018
Disclosure of detailed information about property, plant and equipment [abstract]  
Disclosure of property, plant and equipment [text block]
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, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)
 
 
(10,260,721
)
 
 
(10,182,025
)
 
 
(3,613,420
)
 
 
(720,676
)
 
 
(379,481
)
 
 
(1,605
)
 
 
(100,852
)
 
 
(29,900,847
)
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
)
 
 
(28,140,337
)
 
 
(23,072,705
)
 
 
(13,920,736
)
 
 
-
 
 
 
(6,262,416
)
 
 
(43,108
)
 
 
(1,002,696
)
 
 
(89,224,517
)
Conversion effect depreciation
 
 
609,002
 
 
 
4,833,334
 
 
 
6,522,113
 
 
 
3,733,259
 
 
 
-
 
 
 
92,238
 
 
 
519
 
 
 
54,154
 
 
 
15,844,619
 
Others increase (decreased)
 
 
(101,686
)
 
 
1,048,526
 
 
 
18,981
 
 
 
7,257
 
 
 
(1,189,435
)
 
 
(35,064
)
 
 
(138,391
)
 
 
59,875
 
 
 
(329,937
)
Divestitures (depreciation)
 
 
(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
 
Changes
 
 
8,321,277
 
 
 
11,372,981
 
 
 
(7,684,349
)
 
 
4,929,964
 
 
 
(6,168,151
)
 
 
3,802,639
 
 
 
(182,585
)
 
 
(583,070
)
 
 
13,808,706
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
123,230,196
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
123,230,196
 
Additions of historic cost by
business combination
 
 
12,734,666
 
 
 
7,481,173
 
 
 
4,940,095
 
 
 
3,656,444
 
 
 
99,432
 
 
 
824,392
 
 
 
-
 
 
 
-
 
 
 
29,736,202
 
Additions of acumulated depreciation by business combination
 
 
(762,783
)
 
 
(7,432,623
)
 
 
(2,384,378
)
 
 
(2,509,968
)
 
 
-
 
 
 
(752,521
)
 
 
-
 
 
 
-
 
 
 
(13,842,273
)
Transfers
 
 
39,838,515
 
 
 
45,234,574
 
 
 
26,616,253
 
 
 
16,798,523
 
 
 
(137,622,837
)
 
 
6,919,683
 
 
 
-
 
 
 
2,215,289
 
 
 
-
 
Conversion effect historic cost
 
 
(5,754,382
)
 
 
(14,801,093
)
 
 
(20,321,228
)
 
 
(6,309,411
)
 
 
(1,509,220
)
 
 
(583,483
)
 
 
(10,977
)
 
 
(159,909
)
 
 
(49,449,703
)
Write off (cost)
 
 
(72,907
)
 
 
(2,578,367
)
 
 
(3,449,791
)
 
 
(13,306,471
)
 
 
-
 
 
 
(1,797,179
)
 
 
-
 
 
 
-
 
 
 
(21,204,715
)
Write off (depreciation)
 
 
5,707
 
 
 
2,397,406
 
 
 
2,541,051
 
 
 
13,063,328
 
 
 
-
 
 
 
1,270,646
 
 
 
-
 
 
 
-
 
 
 
19,278,138
 
Capitalized interests
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
609,921
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
609,921
 
Depreciation
 
 
(17,056,082
)
 
 
(27,288,968
)
 
 
(23,911,356
)
 
 
(14,882,856
)
 
 
-
 
 
 
(6,023,071
)
 
 
(21,175
)
 
 
(1,017,002
)
 
 
(90,200,510
)
Conversion effect depreciation
 
 
707,133
 
 
 
6,290,990
 
 
 
12,688,447
 
 
 
5,358,799
 
 
 
-
 
 
 
285,779
 
 
 
2,406
 
 
 
92,393
 
 
 
25,425,947
 
Others increase (decreased) (1)
 
 
26,611,361
 
 
 
31,138,091
 
 
 
19,091,618
 
 
 
2,850,058
 
 
 
4,240,542
 
 
 
297,792
 
 
 
(43,183
)
 
 
673,686
 
 
 
84,859,965
 
Divestitures (cost)
 
 
(2,476,636
)
 
 
(790,001
)
 
 
(5,687,343
)
 
 
(2,573,198
)
 
 
(226,716
)
 
 
(4,051,693
)
 
 
-
 
 
 
(1,206,401
)
 
 
(17,011,988
)
Divestitures (depreciation)
 
 
85,208
 
 
 
264,080
 
 
 
4,249,122
 
 
 
2,417,657
 
 
 
-
 
 
 
3,960,623
 
 
 
-
 
 
 
945,333
 
 
 
11,922,023
 
Changes
 
 
53,859,800
 
 
 
39,915,262
 
 
 
14,372,490
 
 
 
4,562,905
 
 
 
(11,178,682
)
 
 
350,968
 
 
 
(72,929
)
 
 
1,543,389
 
 
 
103,353,203
 
Book Value
 
 
484,611,641
 
 
 
245,445,157
 
 
 
87,164,806
 
 
 
52,222,137
 
 
 
97,428,207
 
 
 
25,640,489
 
 
 
12,320,060
 
 
 
16,434,134
 
 
 
1,021,266,631
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Historic cost
 
 
679,853,030
 
 
 
551,888,633
 
 
 
180,757,354
 
 
 
143,550,263
 
 
 
97,428,207
 
 
 
80,841,052
 
 
 
13,842,797
 
 
 
30,862,740
 
 
 
1,779,024,076
 
Accumulated depreciation
 
 
(195,241,389
)
 
 
(306,443,476
)
 
 
(93,592,548
)
 
 
(91,328,126
)
 
 
-
 
 
 
(55,200,563
)
 
 
(1,522,737
)
 
 
(14,428,606
)
 
 
(757,757,445
)
Book Value
 
 
484,611,641
 
 
 
245,445,157
 
 
 
87,164,806
 
 
 
52,222,137
 
 
 
97,428,207
 
 
 
25,640,489
 
 
 
12,320,060
 
 
 
16,434,134
 
 
 
1,021,266,631
 
 
(1) Corresponds to the financial effect of the application IAS 29 "Financial reporting in hyperinflationary economies”. See
Note 4 - Accounting changes, letter b)
.
 
 
The balance of the land at the end of each year is as follows:
 
 
 
As of December
31, 2018
 
 
As of December
31, 2017
 
 
 
ThCh
$
 
 
ThCh
$
 
Land
 
 
249,548,928
 
 
 
225,840,815
 
Total
 
 
249,548,928
 
 
 
225,840,815
 
 
Capitalized interest
as of
December 31, 2018
,
amountedThCh$
609,921
(ThCh$
1,042,045
in
2017
), using an annually capitalization rate of 3.71% (4.25% in 2017).
 
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, 2018
, the Company maintained approximately 4,917 hectares of which 3,884 are for vines in production stage. Of the total hectares mentioned above, 3,546 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 2018, the production plant vines yield approximately 52.4 million kilos of grapes (43.9 million kilos of grapes in 2017).
 
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, 2018
.
 
The depreciation for the year ended as of December 31, 2018 and 2017, recognized in net incomes and other assets is as follows:
 
 
 
As of December
31, 2018
 
 
As of December
31, 2017
 
 
 
ThCh
$
 
 
ThCh
$
 
Recognized in net incomes
 
 
87,471,320
 
 
 
86,557,532
 
Recognized in others assets
 
 
2,729,190
 
 
 
2,666,985
 
Total
 
 
90,200,510
 
 
 
89,224,517
 
 
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, 2018
 
 
As of December
31, 2017
 
 
 
ThCh
$
 
 
ThCh
$
 
Land
 
 
3,266,096
 
 
 
3,215,075
 
Buildings
 
 
8,985,051
 
 
 
9,101,182
 
Machinery and equipment
 
 
68,913
 
 
 
76,732
 
Total
 
 
12,320,060
 
 
 
12,392,989
 
In
Note 21 – Other financial liabilities, 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.