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10. INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2017
Intangible Assets Tables  
Intangible assets

                          Consolidated
  Goodwill   Customer relationships   Software   Trademarks
and
patents		   Rights and licenses (*)   Others   Total
Balance at December 31, 2015   3,604,022         413,276       75,237        143,636     3,185,700           395    7,422,266
 Cost       3,974,128             549,302         173,154            143,636         3,185,700               395        8,026,315
 Accumulated amortization        (260,776)           (136,026)          (97,917)                      (494,719)
 Adjustment for accumulated recoverable value        (109,330)                              (109,330)
Balance at December 31, 2015   3,604,022         413,276       75,237        143,636     3,185,700           395    7,422,266
Effect of foreign exchange differences               (74,167)           (236)        (27,440)                (79)      (101,922)
Acquisitions and expenditures               2,995                   124           3,119
Transfer of property, plant and equipment             16,538                     16,538
Writte-of      (13,091)                   (3)                    (13,094)
Amortization (note 22)           (41,449)      (26,093)                 (776)            (68,318)
Aquisition of control - CGPAR                    47                            47
Transfer of Metalic - Held for sale                 (232)                         (232)
Balance at December 31, 2016   3,590,931         297,660       68,253        116,196     3,184,924           440    7,258,404
 Cost       3,834,234             444,635         183,166            116,196         3,185,700               440        7,764,371
 Accumulated amortization        (133,973)           (146,975)        (114,913)                     (776)              (396,637)
 Adjustment for accumulated recoverable value        (109,330)                              (109,330)
Balance at December 31, 2016   3,590,931         297,660       68,253        116,196     3,184,924           440    7,258,404
Effect of foreign exchange differences                 41,916            183          17,941                 65         60,105
Acquisitions and expenditures                  622                          622
Transfer of property, plant and equipment             26,183                     26,183
Disposals                       (70)                           (70)
Amortization (note 22)           (38,701)      (21,986)                (12,455)            (73,142)
Aquisition of control - CGPAR                              (56)               (56)
Balance at December 31,2017   3,590,931         300,875       73,185        134,137     3,172,469           449    7,272,046
 Cost   3,834,234         513,068     167,162        134,137     3,185,701           449    7,834,751
 Accumulated amortization    (133,973)       (212,193)      (93,977)                (13,232)          (453,375)
 Adjustment for accumulated recoverable value    (109,330)                          (109,330)
Balance at December 31,2017   3,590,931         300,875       73,185        134,137     3,172,469           449    7,272,046

Estimated useful lives

The estimated average useful lives by nature are as follows (in years):

      Consolidated
  12/31/2017   12/31/2016
Software 8   8
Customer relationships 13   13
Cash generating units

The CGU with intangible assets in this situation are as follows:

 

                        Consolidated
        Goodwill   Trademarks   Total
Cash generating unity   Segment   12/31/2017   12/31/2016   12/31/2017   12/31/2016   12/31/2017   12/31/2016
Packaging   Steel   158,748   158,748           158,748   158,748
Long steel (2)   Steel   235,595   235,595   134,137   116,196   369,732   351,791
Mining (3)   Mining   3,196,588   3,196,588           3,196,588   3,196,588
        3,590,931   3,590,931   134,137   116,196   3,725,068   3,707,127

 

(2) The goodwill and trademark that are recorded in line item intangible assets at long steel segment, those transactions are derived from the business combination of Stahlwerk Thuringen GmbH ("SWT") and Gallardo Sections CSN. The assets mentioned are considered to have indefinite useful lives as they are expected to contribute indefinitely to the Company's cash flows.

 

(3) Refers to the goodwill based on expectations for future profitability, resulting from the acquisition of Namisa by CSN Mineração, an operation that was concluded in December 2015. From 2016, the balance started to be tested annually for impairment analysis.
Assumptions for impairment test

The main assumptions used in calculations of value in use at December 31, 2017 are as follows:

 

   Metal Packaging   Long Steel (**)   Mining 
Measurement of recoverable value Discounted Cash Flow Discounted Cash Flow Discounted Cash Flow
Cash flow projection Until 2028 Until 2028 Until 2056
Gross Margin Gross margin updated based on historical data, impacts of business restructuring and market trends Gross margin updated based on historical data and market trends. Average of the gross margin of each Cash generating units based on the history and projections to the next 39 years and long-term price and exchange rate curves from industry reports.
Cost Atualization Cost based on historical data of each product and impacts of business restructuring. Costs based on historical data and market trends. Costs based on historical data, mix of products and market trends.
Growth rate Without growth in real terms, only updated by long term inflation of 4.0% . Without growth in real terms, only updated by long term inflation of 2.0% , Euro zone. The growth rate was not considered.
Discount rate These cash flows were considered using a discount rate after taxes between 7% and 13% in real terms. The discount rate was based on the weighted average cost of capital ("WACC") that reflects the specific risk of each segment.

(*) Refer to assets of subsidiary SWT, located in Germany. The discount rate was applied on the discounted cash flow prepared in Euros, the functional currency of this subsidiary.