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Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2017
Intangible Assets, Net |
Intangible Assets, Net | 12.Intangible Assets, Net The analysis of the changes in intangible assets is as follows:
|  | Intangible Assets with Indefinite Useful Lives |  |  |  | Intangible Assets with Finite Useful Lives |  |  |  |  |
Changes |  | Goodwill |  | Trademarks |  | Concessions |  | Trademarks |  | Concessions |  | Licenses |  | Subscriber Lists |  | Other Intangible Assets |  | Total |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1, 2016 |  | Ps. | 14,112,626 |  | Ps. | 782,958 |  | Ps. | 15,719,572 |  | Ps. | 1,891,306 |  | Ps | — |  | Ps. | 5,366,912 |  | Ps. | 6,207,405 |  | Ps. | 3,014,421 |  | Ps. | 47,095,200 |
Additions |  | — |  | — |  | — |  | — |  | — |  | 2,112,768 |  | — |  | 676,322 |  | 2,789,090 |
Retirements |  | — |  | — |  | — |  | — |  | — |  | (1,026,954 | ) | — |  | (68,138 | ) | (1,095,092 | )
Impairment adjustments |  | — |  | (6,851 | ) | — |  | — |  | — |  | — |  | — |  | — |  | (6,851 | )
Transfers and reclassifications |  | — |  | — |  | — |  | — |  | — |  | (761 | ) | — |  | 761 |  | — |
Effect of translation |  | — |  | 165 |  | — |  | — |  | — |  | 52,485 |  | (210 | ) | 46,134 |  | 98,574 |
December 31, 2016 |  | 14,112,626 |  | 776,272 |  | 15,719,572 |  | 1,891,306 |  | — |  | 6,504,450 |  | 6,207,195 |  | 3,669,500 |  | 48,880,921 |
Additions |  | — |  | — |  | — |  | — |  | — |  | 1,222,802 |  | — |  | 558,766 |  | 1,781,568 |
Retirements |  | — |  | (71,157 | ) | — |  | — |  | — |  | (257,513 | ) | — |  | (274,815 | ) | (603,485 | )
Impairment adjustments |  | — |  | (89,597 | ) | — |  | — |  | — |  | — |  | — |  | — |  | (89,597 | )
Transfers and reclassifications |  | — |  | — |  | (553,505 | ) | — |  | 553,505 |  | — |  | — |  | — |  | — |
Effect of translation |  | — |  | (371 | ) | — |  | — |  | — |  | 930 |  | (3,320 | ) | (12,759 | ) | (15,520 | )
December 31, 2017 |  | Ps. | 14,112,626 |  | Ps. | 615,147 |  | Ps. | 15,166,067 |  | Ps. | 1,891,306 |  | Ps | 553,505 |  | Ps. | 7,470,669 |  | Ps. | 6,203,875 |  | Ps. | 3,940,692 |  | Ps. | 49,953,887 |
Amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 1, 2016 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (151,305 | ) | Ps | — |  | Ps. | (3,489,143 | ) | Ps. | (3,520,650 | ) | Ps. | (1,827,777 | ) | Ps. | (8,988,875 | )
Amortization of the year |  | — |  | — |  | — |  | (472,827 | ) | — |  | (979,238 | ) | (960,716 | ) | (112,903 | ) | (2,525,684 | )
Other amortization of the year(1) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | (352,654 | ) | (352,654 | )
Retirements |  | — |  | — |  | — |  | — |  | — |  | 710,199 |  | — |  | 67,926 |  | 778,125 |
Effect of translation |  | — |  | — |  | — |  | — |  | — |  | (40,820 | ) | — |  | (16,242 | ) | (57,062 | )
December 31, 2016 |  | — |  | — |  | — |  | (624,132 | ) | — |  | (3,799,002 | ) | (4,481,366 | ) | (2,241,650 | ) | (11,146,150 | )
Amortization of the year |  | — |  | — |  | — |  | (472,827 | ) | (110,701 | ) | (1,116,080 | ) | (926,676 | ) | (37,956 | ) | (2,664,240 | )
Other amortization of the year |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | (504,674 | ) | (504,674 | )
Retirements |  | — |  | — |  | — |  | — |  | — |  | 236,111 |  | — |  | 3,351 |  | 239,462 |
Reclassifications |  | — |  | — |  | — |  | — |  | — |  | 4,673 |  | — |  | (4,673 | ) | — |
Effect of translation |  | — |  | — |  | — |  | — |  | — |  | 1,337 |  | 3,320 |  | 3,492 |  | 8,149 |
December 31, 2017 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (1,096,959 | ) | Ps | (110,701 | ) | Ps. | (4,672,961 | ) | Ps. | (5,404,722 | ) | Ps. | (2,782,110 | ) | Ps. | (14,067,453 | )
Carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At January 1, 2016 |  | Ps. | 14,112,626 |  | Ps. | 782,958 |  | Ps. | 15,719,572 |  | Ps. | 1,740,001 |  | Ps. | — |  | Ps. | 1,877,769 |  | Ps. | 2,686,755 |  | Ps. | 1,186,644 |  | Ps. | 38,106,325 |
At December 31, 2016 |  | Ps. | 14,112,626 |  | Ps. | 776,272 |  | Ps. | 15,719,572 |  | Ps. | 1,267,174 |  | Ps. | — |  | Ps. | 2,705,448 |  | Ps. | 1,725,829 |  | Ps. | 1,427,850 |  | Ps. | 37,734,771 |
At December 31, 2017 |  | Ps. | 14,112,626 |  | Ps. | 615,147 |  | Ps. | 15,166,067 |  | Ps. | 794,347 |  | Ps. | 442,804 |  | Ps. | 2,797,708 |  | Ps. | 799,153 |  | Ps. | 1,158,582 |  | Ps. | 35,886,434 |
| (1) |  | Other amortization of the year relates primarily to amortization of soccer player rights, which is included in consolidated cost of sales.
All of the amortization charges are presented in Note 20. The changes in the net carrying amount of goodwill and indefinite-lived trademarks and concessions for the year ended December 31, 2017 and 2016, were as follows:
|  | Balance as of January 1, 2017 |  | Acquisitions |  | Retirements |  | Foreign Currency Translation Adjustments |  | Impairment Adjustments |  | Transfers |  | Balance as of December 31, 2017 |
Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Content |  | Ps. | 241,973 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 241,973 |
Cable |  | 13,793,684 |  | — |  | — |  | — |  | — |  | — |  | 13,793,684 |
Other Businesses |  | 76,969 |  | — |  | — |  | — |  | — |  | — |  | 76,969 |
|  | Ps. | 14,112,626 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 14,112,626 |
Indefinite-lived trademarks (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 368,603 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 368,603 |
Other Businesses |  | 407,669 |  | — |  | (71,157 | ) | (371 | ) | (89,597 | ) | — |  | 246,544 |
|  | Ps. | 776,272 |  | Ps. | — |  | Ps. | (71,157 | ) | Ps. | (371 | ) | Ps. | (89,597 | ) | Ps. | — |  | Ps. | 615,147 |
Indefinite-lived concessions (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Content |  | Ps. | 553,505 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (553,505 | ) | Ps. | — |
Cable |  | 15,070,025 |  | — |  | — |  | — |  | — |  | — |  | 15,070,025 |
Sky |  | 96,042 |  | — |  | — |  | — |  | — |  | — |  | 96,042 |
|  | Ps. | 15,719,572 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (553,505 | ) | Ps. | 15,166,067 |
|  | Balance as of January 1, 2016 |  | Acquisitions |  | Retirements |  | Foreign Currency Translation Adjustments |  | Impairment Adjustments |  | Transfers |  | Balance as of December 31, 2016 |
Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Content |  | Ps. | 241,973 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 241,973 |
Cable |  | 13,793,684 |  | — |  | — |  | — |  | — |  | — |  | 13,793,684 |
Other Businesses |  | 76,969 |  | — |  | — |  | — |  | — |  | — |  | 76,969 |
|  | Ps. | 14,112,626 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 14,112,626 |
Indefinite-lived trademarks (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 368,603 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 368,603 |
Other Businesses |  | 414,355 |  | — |  | — |  | 165 |  | (6,851 | ) | — |  | 407,669 |
|  | Ps. | 782,958 |  | Ps. | — |  | Ps. | — |  | Ps. | 165 |  | Ps. | (6,851 | ) | Ps. | — |  | Ps. | 776,272 |
Indefinite-lived concessions (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Content |  | Ps. | 553,505 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 553,505 |
Cable |  | 15,070,025 |  | — |  | — |  | — |  | — |  | — |  | 15,070,025 |
Sky |  | 96,042 |  | — |  | — |  | — |  | — |  | — |  | 96,042 |
|  | Ps. | 15,719,572 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 15,719,572 |
During the fourth quarter of 2017 and 2016, the Group monitored the market associated with its Publishing business, which is classified into the Other Businesses segment, which has experienced a general slow-down in Latin America. Accordingly, the Group reduced its cash flow expectations for some of its foreign operations. As a result, the Group compared the fair value of the intangible assets in the reporting units with the related carrying value and recorded an aggregate pre-tax impairment charge in connection with trademarks of Ps.89,597 and Ps.6,851, respectively, in other expense, net, in the consolidated statements of income for the years ended December 31, 2017 and 2016. The key assumptions used for fair value calculations of goodwill and intangible assets in 2017 were as follows (see Note 14):
|  | Other Business |  | Cable |
|  | Minimum |  | Maximum |  | Minimum |  | Maximum |
Long-term growth rate |  | 2.30 | % | 3.70 | % | 2.40 | % | 2.40 | %
Discount rate |  | 12.30 | % | 14.80 | % | 10.00 | % | 12.50 | %
The key assumptions used for fair value calculations of goodwill and intangible assets in 2016 were as follows (see Note 14):
|  | Other Business |  | Cable |
|  | Minimum |  | Maximum |  | Minimum |  | Maximum |
Long-term growth rate |  | 3.20 | % | 4.70 | % | 2.90 | % | 2.90 | %
Discount rate |  | 12.70 | % | 17.30 | % | 9.60 | % | 11.60 | %
As described in Note 2 (k), beginning in the third quarter of 2015, the Company’s management estimated the remaining useful life of four years for acquired trademarks in specific locations of Mexico in connection with the migration to an internally developed trademark in the Group’s Cable segment. Amortization of trademarks with a finite useful life amounted to Ps.472,827 for the years ended December 31, 2017 and 2016, in both years. Assuming a useful life of four years, amortization of these trademarks in future years is estimated in the following amounts:
|  | Year ended December 31, |
2018 |  | Ps. | 472,827 |
2019 |  | 321,520 |
During the fourth quarter of 2017, the Company’s management reviewed the useful life of certain Group’s television concessions accounted for as intangible assets in conjunction with an expected payment to be made for renewal in 2021, which amount will be determined by the IFT before the renewal date. Based on such review, the Group classified these concessions as intangible assets with a finite useful life and began to amortize the related net carrying amount of $553,505 in a period ending in 2021. Amortization of these concessions with a finite useful life amounted to Ps.110,701 for the year ended December 31, 2017. Assuming a remaining useful life of five years, amortization of these concessions in future years is estimated in the following amounts:
|  | Year ended December 31, |
2018 |  | Ps. | 110,701 |
2019 |  | 110,701 |
2020 |  | 110,701 |
2021 |  | 110,701 |

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