CONCHA Y TORO WINERY INC | CIK:0000930543 | 3

  • Filed: 4/27/2018
  • Entity registrant name: CONCHA Y TORO WINERY INC (CIK: 0000930543)
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    • ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory

    14.1       Classes of Property, Plant and Equipment, by class

    Balances of these items are as follows:

        As of December 31,
    2017    		     As of December 31,
    2016    		  
    Description of classes of property, plant and equipment   ThCh$     ThCh$  
                 
    Property, plant and equipment, net     381,736,948       361,938,676  
                     
    Work-in-progress, net     31,308,736       14,672,138  
    Land, net     123,638,387       120,701,487  
    Buildings, net     30,347,543       34,139,045  
    Plant and equipment, net     37,975,042       34,386,663  
    IT equipment, net     1,046,806       1,287,666  
    Fixed facilities and accessories, net     70,274,575       70,987,225  
    Vehicles, net     2,317,136       1,933,184  
    Improvements to leased properties, equipment and others, net     542,792       645,370  
    Other property, plant and equipment, net     3,843,732       4,455,425  
    Plantations, net     80,442,199       78,730,473  
                     
    Property, plant and equipment, gross     644,542,520       609,577,683  
                     
    Work-in-progress, gross     31,308,736       14,672,138  
    Land, gross     123,638,387       120,701,487  
    Buildings, gross     58,263,623       59,809,261  
    Plant and equipment, gross     114,488,966       107,969,230  
    IT equipment, gross     4,123,479       4,700,268  
    Fixed facilities and accessories, gross     176,572,198       170,607,166  
    Vehicles, gross     6,092,973       4,606,868  
    Improvements to leased properties, equipment and others, gross     863,311       946,980  
    Other property, plant and equipment, gross     9,876,424       10,975,868  
    Plantations, gross     119,314,423       114,588,417  
                     
    Accumulated depreciation of property, plant and equipment, total     (262,805,573 )     (247,639,007 )
                     
    Buildings     (27,916,080 )     (25,670,216 )
    Plant and equipment     (76,513,924 )     (73,582,567 )
    IT equipment     (3,076,673 )     (3,412,602 )
    Fixed facilities and accessories     (106,297,623 )     (99,619,941 )
    Vehicles     (3,775,837 )     (2,673,684 )
    Improvements to leased properties, equipment and others     (320,519 )     (301,610 )
    Other property, plant and equipment     (6,032,692 )     (6,520,443 )
    Plantations     (38,872,225 )     (35,857,944 )

      

    Changes in Property, Plant and equipment for the periods ended as of December 31, 2017 and 2016 are as follows.

    Reconciliation
    items of changes
    in property,
    plant and
    equipment,
    by classes    		   Work-in-
    progress
    ThCh$    		     Land
    ThCh$    		     Buildings,
    net
    ThCh$    		     Plant and
    equipment,
    net
    ThCh$    		     IT equipment,
    net
    ThCh$    		     Fixed
    facilities
    and
    accesories,
    net
    ThCh$    		     Motor
    Vehicles,
    net
    ThCh$    		     Improvements
    to leased
    goods,
    net
    ThCh$    		     Other
    property,
    plant and
    equipment,
    net
    ThCh$    		     Plantations,
    net
    ThCh$    		     Property,
    plant and
    equipment,
    net
    ThCh$    		  
    Opening balance as of January 1, 2017     14,672,138       120,701,487       34,139,045       34,386,663       1,287,666       70,987,225       1,933,184       645,370       4,455,425       78,730,473       361,938,676  
    Changes:                                                                                     —  
    Additions     23,538,520       4,344,017       97,080       7,384,684       278,230       7,187,926       420,999       —       252,400       7,306,285       50,810,141  
    4% credit on fixed assets     —       —       —       (41,082 )     (7 )     (6,930 )     (54 )     —       (766 )     —       (48,839 )
    Disposal     —       (105,087 )     —       (140,667 )     (462 )     (24,533 )     (23,968 )     (509 )     (59,269 )     —       (354,495 )
    Transfers  to (from) non-current assets  and disposal groups held for sale     —       —       —       (98,093 )     —       —       —       —       —       —       (98,093 )
    Reclassification of assets for work completion     (7,274,247 )     —       120,504       4,032,206       88,975       2,791,147       87,719       —       153,696       —       —  
    Write-offs     —       —       (51,620 )     (202,130 )     (4,966 )     (88,253 )     (10,900 )     —       (3,067 )     (233,067 )     (594,003 )
    Depreciation     —       —       (2,059,678 )     (6,173,655 )     (505,828 )     (10,278,655 )     (571,579 )     (49,318 )     (668,177 )     (4,343,827 )     (24,650,717 )
    Increase (decrease) in foreign currency exchange (*)     376,567       (1,302,030 )     (1,897,788 )     (1,170,126 )     (95,824 )     (296,110 )     481,735       (52,751 )     (286,510 )     (1,017,665 )     (5,260,502 )
    Other increase (decrease)     (4,242 )     —       —       (2,758 )     (978 )     2,758       —       —       —       —       (5,220 )
                                                                                             
    Total changes     16,636,598       2,936,900       (3,791,502 )     3,588,379       (240,860 )     (712,650 )     383,952       (102,578 )     (611,693 )     1,711,726       19,798,272  
                                                                                             
    Closing balance as of December 31, 2017     31,308,736       123,638,387       30,347,543       37,975,042       1,046,806       70,274,575       2,317,136       542,792       3,843,732       80,442,199       381,736,948  

     

    Items- reconciliation
    of changes
    in property,
    plant and
    equipment,
    by class    		   Work-in-
    progress
    ThCh$    		     Land
    ThCh$    		     Buildings,
    net
    ThCh$    		     Plant and
    equipment,
    net
    ThCh$    		     IT equipment,
    net
    ThCh$    		     Fixed
    facilities
    and
    accesories,
    net
    ThCh$    		     Motor
    Vehicles,
    net
    ThCh$    		     Improvements
    to leased
    goods,
    net
    ThCh$    		     Other
    property,
    plant and
    equipment,
    net
    ThCh$    		     Plantations,
    net
    ThCh$    		     Property,
    plant and
    equipment,
    net
    ThCh$    		  
    Opening balance as of January 1, 2016     6,436,537       113,805,322       38,237,219       35,550,261       837,427       68,810,766       1,829,375       743,192       4,980,305       76,532,180       347,762,584  
    Changes:                                                                                        
    Additions     14,488,416       8,005,707       1,315,509       5,676,543       678,915       8,014,525       631,920       —       567,552       7,910,060       47,289,147  
    4% credit on fixed assets     —       —       —       (42,738 )     (2,333 )     (3,297 )     (2,819 )     —       (286 )     —       (51,473 )
    Disposal     —       (212,222 )     (2,582,074 )     (1,090,163 )     (809 )     (59,930 )     (12,032 )     (455 )     (134,301 )     —       (4,091,986 )
    Transfers  to (from) non-current assets  and disposal groups held for sale     —       —       —       —       —       —       —       —       —       —       —  
    Reclassification of assets for work completion     (6,038,566 )     (45,804 )     (575,595 )     845,459       273,781       5,355,984       36,795       —       121,274       26,672       —  
    Write-offs     (8,121 )     —       (28,854 )     (19,257 )     (22,980 )     —       (24,846 )     —       2,285       (568,914 )     (670,687 )
    Depreciation     —       —       (2,305,874 )     (5,861,975 )     (467,829 )     (9,773,963 )     (511,533 )     (54,785 )     (903,103 )     (4,332,956 )     (24,212,018 )
    Increase (decrease) in foreign currency exchange (*)     (150,561 )     (840,738 )     80,569       (669,768 )     (8,506 )     (1,356,860 )     (13,676 )     (42,582 )     (178,301 )     (836,569 )     (4,016,992 )
    Other increase (decrease)     (55,567 )     (10,778 )     (1,855 )     (1,699 )     —       —       —       —       —       —       (69,899 )
                                                                                             
    Total changes     8,235,601       6,896,165       (4,098,174 )     (1,163,598 )     450,239       2,176,459       103,809       (97,822 )     (524,880 )     2,198,293       14,176,092  
                                                                                             
    Closing balance as of December 31, 2016     14,672,138       120,701,487       34,139,045       34,386,663       1,287,666       70,987,225       1,933,184       645,370       4,455,425       78,730,473       361,938,676  

     

    (*): For currency exchange differences of financial statements of foreign subsidiaries.

     

      14.2 Additional information

     

      a) Property, plant and equipment

     

    The Company has not identified any indicators of impairment which represent a loss in value of property, plant and equipment, other than those already recorded and presented in these consolidated financial statements.

     

      b) Commitments to acquire and restrictions on acquisition of property, plant and equipment

     

    As of December 31, 2017, commitments to acquire due to purchases of property, plant and equipment amounted to ThCh$4,046,887, net (ThCh$4,852,893 as of December 31, 2016).

    The Company does not have restrictions on property, plant and equipment, other than those reported in Note 34 Guarantees committed with third-parties.

     

      c) Grapevines pledged as guarantee.
         

    Grapevines of Viña Concha y Toro S.A. and subsidiaries, either in production or formation stage are not subject to any kind of restrictions, nor have been constituted as guarantees of financial liabilities.

     

      d) Government Grants

     

    The company in Chile applies to government grants related to the agricultural activity in conformity with Law 18.450 to foster watering and drain, and for research and development activities in conformity with Law 20.570.

    These grants require certain conditions on its application. The company complies with these in order to obtain its benefits. Grants are issued one time only and are assigned to a specific watering project. During the period ended as of December 31, 2017, government grants received amounted to ThCh$150,074 (ThCh$74,508 as of December 31, 2016 and ThCh$50,430 as of December 31, 2015).

      14.3 Assets under finance lease

     

      a) Finance lease
         

    As of December 31, 2017 and 2016, there are no property, plant and equipment that are classified as finance leases.

      b) Obligations for contracts or financial leases

    As of December 31, 2017 and 2016, there are no obligations for contracts or finance leases.

     

      14.4 Costs of capitalized interests
         

    Rates and costs for capitalized interests are detailed as follows:

     

    Viña Concha y Toro S.A.

     

        As of December 31,
    2017    		     As of December 31,
    2016    		  
    Cost capitalization rate for capitalized interest, property, plant and equipment     4.03 %     5.12 % 
    Amount of capitalized interest, property, plant and equipment, (In ThCh$)     1,238,154       1,114,041  
     Total in ThCh$     1,238,154       1,114,041  

     

    Trivento Bodegas y Viñedos S. A.

        As of December 31,
    2017    		     As of December 31,
    2016    		  
    Cost capitalization rate for capitalized interest, property, plant and equipment     15.41 %     25.61 % 
    Amount of capitalized interest, property, plant and equipment. (In ThCh$)     56,942       29,886  
     Total in ThCh$     56,942       29,886  

     

      14.5 Distribution of hectares
         

    As of December 31, 2017 (unaudited):

        Vineyards in
    Production    		     Vineyards in
    development    		     Total Planted
    Vineyards    		     Land
    Rotation    		     Fruit trees     Total
    Agricultural
    Area    		  
     Chile                                                
     Limarí     928       161       1,089       223       —       1,312  
     Casablanca     391       30       421       —       —       421  
     Aconcagua     97       —       97       —       —       97  
     Leyda     130       —       130       —       —       130  
     Maipo     771       73       844       19       —       863  
     Cachapoal     1,234       296       1,530       70       —       1,600  
     Colchagua     1,955       248       2,202       102       —       2,304  
     Curicó     633       61       694       3       —       697  
     Maule     2,054       656       2,710       546       —       3,256  
     Bío - Bío     —       —       —       212       —       212  
     Total Chile     8,193       1,525       9,717       1,175       —       10,892  
     Argentina                                                
     Mendoza     1,117       23       1,140       285       —       1,425  
     Total Argentina     1,117       23       1,140       285       —       1,425  
     USA                                                
     Fetzer     390       72       462       1       3       466  
     Total USA     390       72       462       1       3       466  
     Total Holding     9,700       1,620       11,319       1,461       3       12,783  

      

    As of December 31, 2016 (unaudited):

        Vineyards in
    Production    		     Vineyards in
    development    		     Total Planted
    Vineyards    		     Land
    Rotation    		     Fruit trees     Total
    Agricultural
    Area    		  
    Chile                                                
     Limarí     921       85       1,006       244       —       1,250  
     Casablanca     380       44       424       —       —       424  
     Aconcagua     97       —       97       —       —       97  
     Leyda     130       —       130       —       —       130  
     Maipo     771       81       852       21       —       873  
     Cachapoal     1,178       324       1,502       97       —       1,599  
     Colchagua     1,947       208       2,155       150       —       2,305  
     Curicó     598       96       694       4       —       698  
     Maule     1,982       546       2,528       713       —       3,241  
    Total Chile     8,004       1,384       9,388       1,229       —       10,617  
    Argentina                                                
     Mendoza     1,117       23       1,140       285       —       1,425  
    Total Argentina     1,117       23       1,140       285       —       1,425  
    USA                                                
     Fetzer     403       66       469       1       3       473  
    Total USA     403       66       469       1       3       473  
     Total Holding     9,524       1,473       10,997       1,515       3       12,515  

     

    The total vineyards planted include certain long-term operating leases that the Company has in the valleys of Casablanca, Maipo, and Colchagua. (Please refer to Note 22).

    Company´s total land not usable for plantations such as hills, roads, etc., are not included in the total agricultural area.