Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

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Summary of Movement of Intangible Assets and That of Their Related Accumulated Amortization

The movement in intangible assets and the related accumulated amortization as of December 31, 2016, 2017 and 2018 is as follows:

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Development costs			Land use rights		Other assets			Total
At January 1, 2016
Cost		192,227			96,751			716,125			82,134			42,761			326,723			3,623			13,288		15,425			1,489,057
Accumulated amortization and impairment		(21,995	)		(217	)		(298,232	)		(57,940	)		(32,543	)		(192,460	)		(3,623	)		—		(3,761	)		(610,771	)
Net carrying amount		170,232			96,534			417,893			24,194			10,218			134,263			—			13,288		11,664			878,286
Net initial carrying amount		170,232			96,534			417,893			24,194			10,218			134,263			—			13,288		11,664			878,286
Additions		—			—			118,222			—			16,477			17,772			—			—		19,255			171,726
Acquisition of subsidiary – Adexus (Note 33 a)		930			9,088			6,090			12,822			—			—			—			—		4,203			33,133
Transfers from assets under construction (Note 17)		—			—			—			—			—			—			—			—		1,257			1,257
Reclasifications		—			—			5,258			—			345			—			—			—		(5,603	)		—
Disposals – net cost		—			—			(1,395	)		—			—			(2,395	)		—			—		—			(3,790	)
Amortization		—			—			(28,206	)		(4,376	)		(8,043	)		(40,918	)		—			—		(1,200	)		(82,743	)
Impairment loss		(38,680	)		(15,628	)		—			—			—			—			—			—		—			(54,308	)
Translations adjustments		12,038			3,672			(102	)		171			1,024			—			—			—		(78	)		16,725
Net final carrying amount		144,520			93,666			517,760			32,811			20,021			108,722			—			13,288		29,498			960,286
At December 31, 2016
Cost		205,195			109,511			844,213			95,127			60,607			342,100			3,623			13,288		34,294			1,707,958
Accumulated amortization and impairment		(60,675	)		(15,845	)		(326,453	)		(62,316	)		(40,586	)		(233,378	)		(3,623	)		—		(4,796	)		(747,672	)
Net carrying amount		144,520			93,666			517,760			32,811			20,021			108,722			—			13,288		29,498			960,286

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Development costs			Land use rights		Other assets			Total
At January 1, 2017
Cost		205,195			109,511			844,213			95,127			60,607			342,100			3,623			13,288		34,294			1,707,958
Accumulated amortization and impairment		(60,675	)		(15,845	)		(326,453	)		(62,316	)		(40,586	)		(233,378	)		(3,623	)		—		(4,796	)		(747,672	)
Net cost		144,520			93,666			517,760			32,811			20,021			108,722			—			13,288		29,498			960,286
Net initial cost		144,520			93,666			517,760			32,811			20,021			108,722			—			13,288		29,498			960,286
Additions		—			—			38,156			5,274			3,330			49,698			—			—		20,832			117,290
Capitalization of interest		—			—			26,015			—			—			—			—			—		—			26,015
Deconsolidation, net		(3,524	)		—			(17,354	)		—			(21	)		—			—			—		(2,767	)		(23,666	)
Transfers from assets under construction (Note 17)		—			—			(11,217	)		—			2,761			5,008			—			—		3,617			169
Derecognition - cost		—			—			(537	)		—			(1,572	)		—			—			—		(355	)		(2,464	)
Amortization		—			—			(24,609	)		(4,189	)		(8,091	)		(46,695	)		—			—		(2,973	)		(86,557	)
Impairment		(20,068	)		(29,541	)		—			—			—			—			—			—		—			(49,609	)
Translations adjustments		(4,124	)		975			13			369			1,196			—			—			—		177			(1,394	)
Net final cost		116,804			65,100			528,227			34,265			17,624			116,733			—			13,288		48,029			940,070
At December 31, 2017
Cost		197,547			110,486			841,229			98,607			59,913			396,806			3,623			13,288		55,701			1,777,200
Accumulated amortization and impairment		(80,743	)		(45,386	)		(313,002	)		(64,342	)		(42,289	)		(280,073	)		(3,623	)		—		(7,672	)		(837,130	)
Net cost		116,804			65,100			528,227			34,265			17,624			116,733			—			13,288		48,029			940,070

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Development costs			Land use rights		Other assets			Total
At January 1, 2018
Cost		197,547			110,486			841,229			98,607			59,913			396,806			3,623			13,288		55,701			1,777,200
Accumulated amortization and impairment		(80,743	)		(45,386	)		(313,002	)		(64,342	)		(42,289	)		(280,073	)		(3,623	)		—		(7,672	)		(837,130	)
Net cost		116,804			65,100			528,227			34,265			17,624			116,733			—			13,288		48,029			940,070
Net initial cost		116,804			65,100			528,227			34,265			17,624			116,733			—			13,288		48,029			940,070
Additions		—			—			23,803			—			3,267			68,544			—			—		5,067			100,681
Capitalization of interest expenses		—			—			3,361			—			—			—			—			—		—			3,361
Desconsolidation, net		(20,086	)		(8,358	)		(22,758	)		(8,909	)		(10,153	)		—			—			—		(1,863	)		(72,127	)
Transfers from assets under construction (Note 17)		—			—			—			—			199			—			—			—		(199	)		—
Derecognition - cost		—			—			(16	)		—			(1,941	)		(4,126	)		—			—		—			(6,083	)
Amortization		—			—			(50,776	)		(7,996	)		(5,834	)		(41,930	)		—			—		(5,536	)		(112,072	)
Translations adjustments		(3,430	)		(4,301	)		199			(303	)		830			—			—			—		270			(6,735	)
Net final cost		93,288			52,441			482,040			17,057			3,992			139,221			—			13,288		45,768			847,095
At December 31, 2018
Cost		174,031			97,097			836,254			85,482			16,177			461,224			3,623			13,288		54,644			1,741,820
Accumulated amortization and impairment		(80,743	)		(44,656	)		(354,214	)		(68,425	)		(12,185	)		(322,003	)		(3,623	)		—		(8,876	)		(894,725	)
Net cost		93,288			52,441			482,040			17,057			3,992			139,221			—			13,288		45,768			847,095

Summary of Goodwill Allocated to Cash-Generating Units (CGU)

At December 31, the goodwill of the cash-generating units (CGUs) is distributed as follows:

	2016		2017		2018
Engineering and construction		98,587		75,051		71,621
Electromechanical		20,737		20,737		20,737
Mining and construction services		13,366		13,366		—
IT equipment and services		5,102		930		930
Telecommunications services		6,728		6,720		—
		144,520		116,804		93,288

Summary of Major Assumptions Used by the Group in Determining the Fair Value Less Cost of Disposal

The main assumptions used by the Group to determine fair value less disposal costs and value in use are as follows:

	Engineering and construction		Electro- mechanical		IT equipment and services		Telecommu- nication services
	%		%		%		%
2016
Gross margin		9.50% - 12.99%		11.10%		15.00% - 23.19%		11.75%
Terminal growth rate		3.00% - 4.00%		2.00%		2.00% - 3.00%		3.00%
Discount rate		9.66% - 12.72%		11.01%		21.74%		10.02%
2017
Gross margin		9.50%		8.00%		20.83%		4.26%
Terminal growth rate		3.00%		2.00%		2.90%		3.00%
Discount rate		11.18%		11.48%		10.17%		4.02%
2018
Gross margin		12.67%		7.63%		20.00%		—
Terminal growth rate		3.00%		2.00%		2.90%		—
Discount rate		12.55%		11.44%		15.39%		—

The main assumptions used by the Group to determine fair value less cost of sales are as follows:

	Engineering and construction						IT Equipment Services
	Morelco			Vial yVives- DSD			Adexus
	%			%			%
2016
Average revenue growth rate		14.39	%		24.53	%		12.60	%
Terminal growth rate		3.00	%		4.00	%		3.00	%
Discount rate		11.85	%		9.87	%		16.05	%
2017
Average revenue growth rate		9.60	%		25.00	%		9.19	%
Terminal growth rate		3.00	%		4.00	%		3.00	%
Discount rate		11.18	%		14.80	%		16.63	%
2018
Average revenue growth rate		12.25	%		19.58	%		17.93	%
Terminal growth rate		3.00	%		3.00	%		2.90	%
Discount rate		12.55	%		14.00	%		12.40	%

Summary of Amortization of Intangibles

Amortization of intangibles is broken down in the income statement as follows:

	2016		2017		2018
Cost of sales and services (Note 27)		59,682		67,381		98,318
Administrative expenses (Note 27)		4,890		3,002		4,856
(+) Amortization discontinued operations		18,171		16,174		8,898
		82,743		86,557		112,072