3.2 INTANGIBLE ASSETS
At 2017 year-end, the balance of intangible assets other than infrastructure projects amounted to EUR 431 million (2016 year-end: EUR 544 million). The changes in “Intangible Assets” in the consolidated statement of financial position were as follows:
CHANGES IN 2017 |
RIGHTS ON CONCESSIONS |
COMPUTER SOFTWARE |
CUSTOMER CONTRACTS AND BUSINESS RELATIONSHIPS |
TOTAL |
||
|
||||||
Investment: |
|
|
|
|
||
Balance at 31/12/16 (*) |
62 |
199 |
578 |
838 |
||
Additions |
1 |
16 |
2 |
19 |
||
Disposals |
0 |
-3 |
-123 |
-126 |
||
Transfers and other |
-26 |
0 |
0 |
-25 |
||
Changes in the scope of consolidation |
0 |
0 |
24 |
25 |
||
Exchange rate effect |
0 |
-12 |
-23 |
-35 |
||
Balance at 31/12/17 |
37 |
201 |
458 |
696 |
||
Accumulated amortisation: |
|
|
|
|
||
Balance at 31/12/16 (*) |
-34 |
-55 |
-206 |
-295 |
||
Additions |
-2 |
-26 |
-100 |
-128 |
||
Disposals |
0 |
2 |
122 |
124 |
||
Transfers and other |
21 |
-1 |
0 |
20 |
||
Changes in the scope of consolidation |
0 |
0 |
0 |
0 |
||
Exchange rate effect |
0 |
6 |
8 |
14 |
||
Balance at 31/12/17 |
-15 |
-73 |
-176 |
-265 |
||
Carrying amount at 31/12/17 |
22 |
128 |
282 |
431 |
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“Rights on Concessions” includes the rights to operate the tenders won in the Services industry in Spain that are not classified as projects (see definition in Note 1.1.2), amounting to EUR 22 million (31 December 2016: EUR 28 million).
The carrying amount of software was EUR 128 million (31 December 2016: EUR 145 million).
On the other hand, in relation to the "Customer contracts and commercial relationships", the net value of the commercial portfolio, customer databases and other intangible assets associated with various acquisition processes, carried out mainly in the Services Division, is included for a net value of EUR 282 million (31 December 2016: EUR 372 million). The most significant balance corresponds to Broadspectrum for EUR 108 million (31 December 2016: EUR 191 million).
Also, FBSerwis acquired Trans-Formers Wroclaw and Trans-Formers Kapatia, companies belonging to the Trans-Formers TFH Sp. z.o.o. Group, and this transaction gave rise to an increase in the balance of this line item of EUR 17 million, see Note 3.1. Thus, the value of FBSerwis’s concession arrangements amounted to EUR 32 million (31 December 2016: EUR 17 million).
Furthermore, acquisition of Grupo Maviva had a net value impact on the commercial portfolio of EUR 7 million, see Note 3.1.
In 2017, fully amortised intangible assets were derecognised for a total of EUR 126 million, of which EUR 87 million related to the Tubelines Secondment concession and EUR 21 million to concession arrangements in Australia.
The cash flow impact of the additions to intangible assets amounted to EUR -3 million (see Note 5.3), an amount lower than the additions recognised in the consolidated statement of financial position, due mainly to investments made in computer software which have not been paid in full.
No impairment losses were recognised or reversed in relation to these assets in 2017.