NOTE 13
PROPERTY, PLANT, AND EQUIPMENT
a) As of December 31, 2017 and 2016, the composition of property, plant, and equipment balances are composed as follows:
| As of December 31, 2017 | ||||
Net opening balance as of January 1, 2017 |
Gross balance |
Accumulated depreciation | Net balance | |
| MCh$ | MCh$ | MCh$ | MCh$ | |
| Land and buildings | 169,809 | 274,079 | (114,727) | 159,352 |
| Equipment | 66,506 | 193,689 | (130,173) | 63,516 |
| Ceded under operating leases | 4,230 | 4,888 | (667) | 4,221 |
| Other | 16,834 | 60,822 | (45,364) | 15,458 |
| Total | 257,379 | 533,478 | (290,931) | 242,547 |
| As of December 31, 2016 | ||||
Net opening balance as of January 1, 2016 |
Gross balance |
Accumulated depreciation | Net balance | |
| MCh$ | MCh$ | MCh$ | MCh$ | |
| Land and buildings | 158,434 | 264,016 | (94,207) | 169,809 |
| Equipment | 59,908 | 168,124 | (101,618) | 66,506 |
| Ceded under operating leases | 4,238 | 4,888 | (658) | 4,230 |
| Other | 18,079 | 55,973 | (39,139) | 16,834 |
| Total | 240,659 | 493,001 | (235,622) | 257,379 |
| b) | The changes in the value of property, plant, and equipment as of December 31, 2017 and 2016 is as follows: |
b. 1) Gross balance
| 2017 | Land and buildings | Equipment | Ceded under operating leases | Other | Total |
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |
| Balances as of January 1, 2017 | 264,016 | 168,124 | 4,888 | 55,973 | 493,001 |
| Additions | 27,592 | 26,278 | - | 4,902 | 58,772 |
| Disposals | (17,529) | (359) | - | (53) | (17,941) |
| Impairment due to damage | - | (354) | - | - | (354) |
| Other | - | - | - | - | 0 |
| Balances as of December 31, 2017 | 274,079 | 193,689 | 4,888 | 60,822 | 533,478 |
| 2016 | Land and buildings | Equipment | Ceded under operating leases | Other | Total |
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |
| Balances as of January 1, 2016 | 237,449 | 137,621 | 4,888 | 51,482 | 431,440 |
| Additions | 26,567 | 30,965 | - | 4,823 | 62,355 |
| Disposals | - | (228) | - | (332) | (560) |
| Impairment due to damage | - | (234) | - | - | (234) |
| Other | - | - | - | - | - |
| Balances as of December 31, 2016 | 264,016 | 168,124 | 4,888 | 55,973 | 493,001 |
b. 2) Accumulated depreciation
| 2017 | Land and buildings | Equipment | Ceded under operating leases | Other | Total |
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |
| Balances as of January 1, 2017 | (94,207) | (101,618) | (658) | (39,139) | (235,622) |
| Depreciation charges in the period | (20,744) | (28,592) | (9) | (6,277) | (55,622) |
| Sales and disposals in the period | 224 | 37 | - | 52 | 313 |
| Transfers | - | - | - | - | 0 |
| Other | - | - | - | - | 0 |
| Balances as of December 31, 2017 | (114,727) | (130,173) | (667) | (45,364) | (290,931) |
| 2016 | Land and buildings | Equipment | Ceded under operating leases | Other | Total |
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |
| Balances as of January 1, 2016 | (79,015) | (77,713) | (650) | (33,403) | (190,781) |
| Depreciation charges in the period | (15,192) | (23,976) | (8) | (5,849) | (45,025) |
| Sales and disposals in the period | - | 71 | - | 113 | 184 |
| Transfers | - | - | - | - | - |
| Other | - | - | - | - | - |
| Balances as of December 31, 2016 | (94,207) | (101,618) | (658) | (39,139) | (235,622) |
c) Operational leases – lessor
As of December 31, 2017 and 2016, the future minimum lease cash inflows under non-cancellable operating leases are as follows:
| As of December 31, | |||
| 2017 | 2016 | ||
| MCh$ | MCh$ | ||
| Due within 1 year | 567 | 506 | |
| Due after 1 year but within 2 years | 749 | 1,029 | |
| Due after 2 years but within 3 years | 480 | 502 | |
| Due after 3 years but within 4 years | 348 | 473 | |
| Due after 4 years but within 5 years | 308 | 344 | |
| Due after 5 years | 1,792 | 2,067 | |
| Total | 4,244 | 4,921 | |
| d) | Operational leases – lessee |
Certain Bank’s premises and equipment are leased under various operating leases. Future minimum rental payments under non-cancellable leases are as follows:
| As of December 31, | |||
| 2017 | 2016 | ||
| MCh$ | MCh$ | ||
| Due within 1 year | 26,059 | 26,455 | |
| Due after 1 year but within 2 years | 21,343 | 24,903 | |
| Due after 2 year but within 3 years | 18,091 | 20,582 | |
| Due after 3 years but within 4 years | 15,736 | 17,321 | |
| Due after 4 years but within 5 years | 12,734 | 14,569 | |
| Due after 5 years | 51,502 | 53,694 | |
| Total | 145,465 | 157,524 | |
| e) | As of December 31, 2017 and 2016, the Bank has no financial leases which cannot be unilaterally rescinded. |
| f) | The Bank has no restriction on property, plant and equipment as of December 31, 2017 and 2016. Additionally, the property, plant and equipment have not been provided as guarantees of financial liabilities. The Bank has no debt in connection with property, plant and equipment. |