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Intangible Assets and Goodwill, Net | 12 Months Ended
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Dec. 31, 2020
Intangible Assets and Goodwill, Net |
Intangible Assets and Goodwill, Net | 13.Intangible Assets and Goodwill, Net As of December 31, 2020 and 2019, intangible assets and goodwill are summarized as follows:
|  | 2020 |  | 2019
|  |  |  |  | Accumulated |  |  |  |  |  |  |  | Accumulated |  |  |
|  | Cost |  | Amortization |  | Carrying Value |  | Cost |  | Amortization |  | Carrying Value
Intangible assets and goodwill with indefinite useful lives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  | Ps. | 35,242 |  | Ps. | — |  | Ps. | 35,242 |  | Ps. | 175,444 |  | Ps. | — |  | Ps. | 175,444
Concessions |  |  | 15,166,067 |  |  | — |  |  | 15,166,067 |  |  | 15,166,067 |  |  | — |  |  | 15,166,067
Goodwill |  |  | 14,113,626 |  |  | — |  |  | 14,113,626 |  |  | 14,113,626 |  |  | — |  |  | 14,113,626
|  |  | 29,314,935 |  |  | — |  |  | 29,314,935 |  |  | 29,455,137 |  |  | — |  |  | 29,455,137
Intangible assets with finite useful lives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  | 2,227,096 |  |  | (1,971,314) |  |  | 255,782 |  |  | 2,127,697 |  |  | (1,899,187) |  |  | 228,510
Concessions |  |  | 553,505 |  |  | (442,804) |  |  | 110,701 |  |  | 553,505 |  |  | (332,103) |  |  | 221,402
Licenses and software |  |  | 13,139,480 |  |  | (8,446,906) |  |  | 4,692,574 |  |  | 10,858,388 |  |  | (6,843,169) |  |  | 4,015,219
Subscriber lists |  |  | 8,804,334 |  |  | (7,258,070) |  |  | 1,546,264 |  |  | 8,782,852 |  |  | (6,632,419) |  |  | 2,150,433
Payments for renewal of concessions |  |  | 5,825,559 |  |  | — |  |  | 5,825,559 |  |  | 5,821,828 |  |  | — |  |  | 5,821,828
Other intangible assets |  |  | 5,169,795 |  |  | (4,191,392) |  |  | 978,403 |  |  | 5,198,960 |  |  | (3,762,535) |  |  | 1,436,425
|  |  | 35,719,769 |  |  | (22,310,486) |  |  | 13,409,283 |  |  | 33,343,230 |  |  | (19,469,413) |  |  | 13,873,817
|  | Ps. | 65,034,704 |  | Ps. | (22,310,486) |  | Ps. | 42,724,218 |  | Ps. | 62,798,367 |  | Ps. | (19,469,413) |  | Ps. | 43,328,954
Changes in intangible assets and goodwill with indefinite useful lives in 2020 and 2019, were as follows:
|  | 2020
|  | Trademarks |  | Concessions |  | Goodwill |  | Total
Cost: |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | Ps. | 175,444 |  | Ps. | 15,166,067 |  | Ps. | 14,113,626 |  | Ps. | 29,455,137
Impairment adjustments |  |  | (40,803) |  |  | — |  |  | — |  |  | (40,803)
Transfers and reclassifications |  |  | (99,399) |  |  | — |  |  | — |  |  | (99,399)
Balance at end of period |  | Ps. | 35,242 |  | Ps. | 15,166,067 |  | Ps. | 14,113,626 |  | Ps. | 29,314,935
|  | 2019
|  | Trademarks |  | Concessions |  | Goodwill |  | Total
Cost: |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | Ps. | 479,409 |  | Ps. | 15,166,067 |  | Ps. | 14,113,626 |  | Ps. | 29,759,102
Impairment adjustments |  |  | (67,574) |  |  | — |  |  | — |  |  | (67,574)
Transfers and reclassifications |  |  | (236,391) |  |  | — |  |  | — |  |  | (236,391)
Balance at end of period |  | Ps. | 175,444 |  | Ps. | 15,166,067 |  | Ps. | 14,113,626 |  | Ps. | 29,455,137
Changes in intangible assets with finite useful lives in 2020 and 2019, were as follows:
|  | 2020
|  |  |  |  |  |  |  | Licenses |  |  |  |  | Payments for |  | Other |  |  |
|  |  |  |  |  |  |  | and |  | Subscriber |  | Renewal of |  | Intangible |  |  |
|  | Trademarks |  | Concessions |  | Software |  | Lists |  | Concessions |  | Assets |  | Total
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | Ps. | 2,127,697 |  | Ps. | 553,505 |  | Ps. | 10,858,388 |  | Ps. | 8,782,852 |  | Ps. | 5,821,828 |  | Ps. | 5,198,960 |  | Ps. | 33,343,230
Additions |  |  | — |  |  | — |  |  | 959,813 |  |  | — |  |  | 3,731 |  |  | 271,633 |  |  | 1,235,177
Transfers from property, plant and equipment |  |  | — |  |  | — |  |  | 1,247,347 |  |  | — |  |  | — |  |  | — |  |  | 1,247,347
Transfers to property, plant and equipment |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (202,282) |  |  | (202,282)
Retirements |  |  | — |  |  | — |  |  | (28,127) |  |  | — |  |  | — |  |  | (25,013) |  |  | (53,140)
Transfers and reclassifications |  |  | 99,399 |  |  | — |  |  | 84,823 |  |  | 16,428 |  |  | — |  |  | (73,124) |  |  | 127,526
Effect of translation |  |  | — |  |  | — |  |  | 17,236 |  |  | 5,054 |  |  | — |  |  | (379) |  |  | 21,911
Balance at end of period |  |  | 2,227,096 |  |  | 553,505 |  |  | 13,139,480 |  |  | 8,804,334 |  |  | 5,825,559 |  |  | 5,169,795 |  |  | 35,719,769
Amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  |  | (1,899,187) |  |  | (332,103) |  |  | (6,843,169) |  |  | (6,632,419) |  |  | — |  |  | (3,762,535) |  |  | (19,469,413)
Amortization of the year |  |  | (72,127) |  |  | (110,701) |  |  | (1,717,282) |  |  | (523,878) |  |  | — |  |  | (50,522) |  |  | (2,474,510)
Other amortization of the year (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (380,863) |  |  | (380,863)
Retirements |  |  | — |  |  | — |  |  | 28,127 |  |  | — |  |  | — |  |  | 2,003 |  |  | 30,130
Reclassifications |  |  | — |  |  | — |  |  | 96,304 |  |  | (96,719) |  |  | — |  |  | 415 |  |  | —
Effect of translation |  |  | — |  |  | — |  |  | (10,886) |  |  | (5,054) |  |  | — |  |  | 110 |  |  | (15,830)
Balance at end of period |  |  | (1,971,314) |  |  | (442,804) |  |  | (8,446,906) |  |  | (7,258,070) |  |  | — |  |  | (4,191,392) |  |  | (22,310,486)
|  | Ps. | 255,782 |  | Ps. | 110,701 |  | Ps. | 4,692,574 |  | Ps. | 1,546,264 |  | Ps. | 5,825,559 |  | Ps. | 978,403 |  | Ps. | 13,409,283
|  | 2019
|  |  |  |  |  |  |  | Licenses |  |  |  |  | Payments for |  | Other |  |  |
|  |  |  |  |  |  |  | and |  | Subscriber |  | Renewal of |  | Intangible |  |  |
|  | Trademarks |  | Concessions |  | Software |  | Lists |  | Concessions |  | Assets |  | Total
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | Ps. | 1,891,306 |  | Ps. | 553,505 |  | Ps. | 9,065,582 |  | Ps. | 8,785,423 |  | Ps. | 5,993,891 |  | Ps. | 4,099,750 |  | Ps. | 30,389,457
Additions |  |  | — |  |  | — |  |  | 913,108 |  |  | — |  |  | 67,285 |  |  | 1,126,357 |  |  | 2,106,750
Transfers from property, plant and equipment |  |  | — |  |  | — |  |  | 1,487,056 |  |  | — |  |  | — |  |  | — |  |  | 1,487,056
Retirements |  |  | — |  |  | — |  |  | (526,166) |  |  | — |  |  | (239,348) |  |  | (90,324) |  |  | (855,838)
Transfers and reclassifications |  |  | 236,391 |  |  | — |  |  | (68,641) |  |  | 1,162 |  |  | — |  |  | 67,479 |  |  | 236,391
Effect of translation |  |  | — |  |  | — |  |  | (12,551) |  |  | (3,733) |  |  | — |  |  | (4,302) |  |  | (20,586)
Balance at end of period |  |  | 2,127,697 |  |  | 553,505 |  |  | 10,858,388 |  |  | 8,782,852 |  |  | 5,821,828 |  |  | 5,198,960 |  |  | 33,343,230
Amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  |  | (1,569,786) |  |  | (221,402) |  |  | (5,934,647) |  |  | (6,108,251) |  |  | (15,454) |  |  | (3,235,503) |  |  | (17,085,043)
Amortization of the year |  |  | (329,401) |  |  | (110,701) |  |  | (1,490,841) |  |  | (530,013) |  |  | (7,773) |  |  | (31,917) |  |  | (2,500,646)
Other amortization of the year (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (531,426) |  |  | (531,426)
Retirements |  |  | — |  |  | — |  |  | 529,403 |  |  | — |  |  | 23,227 |  |  | 79,108 |  |  | 631,738
Reclassifications |  |  | — |  |  | — |  |  | 44,824 |  |  | 2,112 |  |  | — |  |  | (46,936) |  |  | —
Effect of translation |  |  | — |  |  | — |  |  | 8,092 |  |  | 3,733 |  |  | — |  |  | 4,139 |  |  | 15,964
Balance at end of period |  |  | (1,899,187) |  |  | (332,103) |  |  | (6,843,169) |  |  | (6,632,419) |  |  | — |  |  | (3,762,535) |  |  | (19,469,413)
|  | Ps. | 228,510 |  | Ps. | 221,402 |  | Ps. | 4,015,219 |  | Ps. | 2,150,433 |  | Ps. | 5,821,828 |  | Ps. | 1,436,425 |  | Ps. | 13,873,817
| (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 21. The changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions for the year ended December 31, 2020 and 2019, were as follows:
|  |  |  |  |  |  |  |  |  |  | Foreign |  |  |  |  |  |  |  |  |
|  | Balance as of |  |  |  |  |  |  |  | Currency |  |  |  |  |  |  |  | Balance as of
|  | January 1, |  |  |  |  |  |  |  | Translation |  | Impairment |  |  |  |  | December 31,
|  | 2020 |  | Acquisitions |  | Retirements |  | Adjustments |  | Adjustments |  | Transfers |  | 2020
Goodwill: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 13,794,684 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 13,794,684
Content |  |  | 241,973 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 241,973
Other Businesses |  |  | 76,969 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 76,969
|  | Ps. | 14,113,626 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 14,113,626
Indefinite-lived trademarks (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 132,212 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (99,399) |  | Ps. | 32,813
Other Businesses |  |  | 43,232 |  |  | — |  |  | — |  |  | — |  |  | (40,803) |  |  | — |  |  | 2,429
|  | Ps. | 175,444 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (40,803) |  | Ps. | (99,399) |  | Ps. | 35,242
Indefinite-lived concessions (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 15,070,025 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 15,070,025
Sky |  |  | 96,042 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 96,042
|  | Ps. | 15,166,067 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 15,166,067
|  |  |  |  |  |  |  |  |  |  | Foreign |  |  |  |  |  |  |  |  |
|  | Balance as of |  |  |  |  |  |  |  | Currency |  |  |  |  |  |  |  | Balance as of
|  | January 1, |  |  |  |  |  |  |  | Translation |  | Impairment |  |  |  |  | December 31,
|  | 2019 |  | Acquisitions |  | Retirements |  | Adjustments |  | Adjustments |  | Transfers |  | 2019
Goodwill: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 13,794,684 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 13,794,684
Content |  |  | 241,973 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 241,973
Other Businesses |  |  | 76,969 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 76,969
|  | Ps. | 14,113,626 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 14,113,626
Indefinite-lived trademarks (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 368,603 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (236,391) |  | Ps. | 132,212
Other Businesses |  |  | 110,806 |  |  | — |  |  | — |  |  | — |  |  | (67,574) |  |  | — |  |  | 43,232
|  | Ps. | 479,409 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | (67,574) |  | Ps. | (236,391) |  | Ps. | 175,444
Indefinite-lived concessions (see Note 3): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cable |  | Ps. | 15,070,025 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 15,070,025
Sky |  |  | 96,042 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 96,042
|  | Ps. | 15,166,067 |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | — |  | Ps. | 15,166,067
During the second half of 2020 and 2019, 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 impairment charge in connection with trademarks of Ps.40,803 and Ps.67,574, in other expense, net, in the consolidated statements of income for the years ended December 31, 2020 and 2019, respectively. The key assumptions used for either fair value or value in use calculations of goodwill and intangible assets in 2020, were as follows (see Note 15):
|  | Cable |
|  | Minimum |  | Maximum |
Value in use calculations: |  |  |  |  |
Long-term growth rate |  | 3.70 | % | 3.90 | %
Discount rate |  | 10.50 | % | 11.60 | %
Fair value calculations: |  |  |  |  |
Multiple of sales |  | 2.3 |  | 3.4 |
Multiple of EBITDA (as defined) |  | 6.3 |  | 8.2 |
The key assumptions used for fair value calculations of goodwill and intangible assets in 2019, were as follows (see Note 15):
|  | Cable |  | Other Businesses |
|  | Minimum |  | Maximum |  | Minimum |  | Maximum |
Long-term growth rate |  | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | %
Discount rate |  | 10.90 | % | 11.20 | % | 14.60 | % | 15.60 | %
As described in Note 2 (l), in 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.321,520 , for the year ended December 31, 2019. In 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 the payment made in 2018 for renewal of concessions expiring in 2021, which amount was determined by the IFT before the renewal date (see Note 2 (b)). 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 Ps.553,505 in a period ending in 2021. Amortization of these concessions with a finite useful life amounted to Ps.110,701 for each of the years ended December 31, 2020 and 2019. 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,
2021 |  | Ps. | 110,701

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