Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

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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, 2018, 2019 and 2020 is as follows:

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Land use rights		Other assets			Total
At January 1, 2018
Cost		193,862			110,486			879,289			100,640			66,301			400,429			13,288		51,983			1,816,278
Accumulated amortization and impairment		(77,058	)		(45,386	)		(351,062	)		(66,375	)		(48,677	)		(283,696	)		—		(3,954	)		(876,208	)
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		—			—			3,361			—			—			—			—		—			3,361
Desconsolidation, net		(20,086	)		—			(20,716	)		—			(10,153	)		—			—		(219	)		(51,174	)
Transfers from assets under construction		—			—			—			—			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			—			—		272			(6,733	)
Net final cost		93,288			60,799			484,082			25,966			3,992			139,221			13,288		47,414			868,050
At December 31, 2018
Cost		170,346			106,185			885,915			100,337			22,565			464,847			13,288		55,131			1,818,614
Accumulated amortization and impairment		(77,058	)		(45,386	)		(401,833	)		(74,371	)		(18,573	)		(325,626	)		—		(7,717	)		(950,564	)
Net cost		93,288			60,799			484,082			25,966			3,992			139,221			13,288		47,414			868,050

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Land use rights			Other assets			Total
At January 1, 2019
Cost		170,346			106,185			885,915			100,337			22,565			464,847			13,288			55,131			1,818,614
Accumulated amortization and impairment		(77,058	)		(45,386	)		(401,833	)		(74,371	)		(18,573	)		(325,626	)		—			(7,717	)		(950,564	)
Net cost		93,288			60,799			484,082			25,966			3,992			139,221			13,288			47,414			868,050
Net initial cost		93,288			60,799			484,082			25,966			3,992			139,221			13,288			47,414			868,050
Additions		—			—			26,645			—			5,016			102,022			—			5,212			138,895
Capitalization of interest expenses		—			—			2,725			—			—			—			—			802			3,527
Transfers from assets under construction		—			—			—			—			672			—			—			(672	)		—
Derecognition - net		(930	)		(8,358	)		—			(11,665	)		(2,015	)		—			—			(2,996	)		(25,964	)
Amortization		—			—			(50,102	)		(3,682	)		(7,529	)		(43,552	)		—			(2,634	)		(107,499	)
Impairment loss		(33,089	)		—			(3,213	)		—			—			—			(2,468	)		—			(38,770	)
Impairment reversal		—			20,676			—			—			—			—			—			—			20,676
Translations adjustments		(1,902	)		(2,422	)		(16,187	)		(10,118	)		21,251			(3,717	)		—			8,407			(4,688	)
Net final cost		57,367			70,695			443,950			501			21,387			193,974			10,820			55,533			854,227
At December 31, 2019		—			—			—			—			—			—			—			—			—
Cost		93,887			73,836			710,290			72,810			63,278			558,530			13,288			113,057			1,698,976
Accumulated amortization and impairment		(36,520	)		(3,141	)		(266,340	)		(72,309	)		(41,891	)		(364,556	)		(2,468	)		(57,524	)		(844,749	)
Net cost		57,367			70,695			443,950			501			21,387			193,974			10,820			55,533			854,227

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Land use rights			Other assets			Total
At January 1, 2020
Cost		93,887			73,836			710,290			72,810			63,278			558,530			13,288			113,057			1,698,976
Accumulated amortization and impairment		(36,520	)		(3,141	)		(266,340	)		(72,309	)		(41,891	)		(364,556	)		(2,468	)		(57,524	)		(844,749	)
Net cost		57,367			70,695			443,950			501			21,387			193,974			10,820			55,533			854,227
Net initial cost		57,367			70,695			443,950			501			21,387			193,974			10,820			55,533			854,227
Additions		—			—			4,412			—			1,526			37,994			—			6,473			50,405
Capitalization of interest expenses		—			—			—			—			—			—			—			1,105			1,105
Transfers from assets under construction		—			—			—			—			(64	)		(25	)		—			—			(89	)
Derecognition - net		—			—			—			—			(492	)		—			—			—			(492	)
Amortization		—			—			(52,408	)		—			(6,037	)		(36,942	)		—			(3,234	)		(98,621	)
Translations adjustments		1,579			7,810			—			22			201			—			—			—			9,612
Reclassifications		—			(84	)		(24,157	)		—			74			—			—			10			(24,157	)
Net final cost		58,946			78,421			371,797			523			16,595			195,001			10,820			59,887			791,990
At December 31, 2020
Cost		95,466			81,562			690,545			77,542			63,871			596,499			13,288			120,645			1,739,418
Accumulated amortization and impairment		(36,520	)		(3,141	)		(318,748	)		(77,019	)		(47,276	)		(401,498	)		(2,468	)		(60,758	)		(947,428	)
Net cost		58,946			78,421			371,797			523			16,595			195,001			10,820			59,887			791,990

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

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

	2018		2019		2020
Engineering and construction		71,621		36,632		38,211
Electromechanical		20,737		20,735		20,735
IT equipment and services		930		—		0
		93,288		57,367		58,946

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

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

	Engineering and construction			Electro- mechanical
	%			%
2018
Gross margin		12.67	%		7.63	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		12.55	%		11.44	%
2019
Gross margin		12.43	%		8.86	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		11.83	%		11.40	%
2020
Gross margin		12.50	%		9.36	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		11.06	%		11.77	%

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

	Engineering and construction
	Morelco			Vial y Vives- DSD
	%			%
2018
Average revenue growth rate		12.25	%		19.58	%
Terminal growth rate		3.00	%		3.00	%
Discount rate		12.55	%		14.00	%
2019
Average revenue growth rate		5.70	%		19.58	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		11.83	%		14.12	%
2020
Average revenue growth rate		7.60	%		5.00	%
Terminal growth rate		3.00	%		2.10	%
Discount rate		11.06	%		13.16	%

Summary of Amortization of Intangibles

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

	2018		2019		2020
Cost of sales and services (Note 26)		101,378		101,810		94,483
Administrative expenses (Note 26)		7,293		5,689		4,138
(+) Amortization discontinued operations		3,401		—		—
		112,072		107,499		98,621

Disclosure Of Detailed Information About Concessions

As of December 31, mainly include intangibles of Norvial S.A.:

	2019		2020
EPC Contract		62,319		54,506
Construction of the second tranch of the “Ancon- Huacho-Pativilca” highway		4,809		3,406
Cost of capitalized indebtedness at effective interest rates between 7.14% and 8.72%		950		—
Road improvement		14,449		12,922
Implementation for road safety		8,152		9,034
Work capitalization of second roadway		314,614		280,326
Disbursements for land adquisition		4,233		4,510
Other intangible assets contracted for the delivery process		7,477		5,026
Total Norvial S.A.		417,003		369,730
Other concessions		26,947		2,067
		443,950		371,797