AMERICA MOVIL SAB DE CV/ | CIK:0001129137 | 3

  • Filed: 4/26/2018
  • Entity registrant name: AMERICA MOVIL SAB DE CV/ (CIK: 0001129137)
  • Generator: Donnelley Financial Solutions
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    • ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory

    10. Property, Plant and Equipment, net

    a) An analysis of property, plant and equipment, net at December 31, 2015, 2016 and 2017 is as follows:

     

        At
    December 31,
    2014    		     Additions     Retirements     Business
    combinations    		     Spin-off
    effects
    (Note 12)    		     Effect of
    translation of
    foreign
    subsidiaries    		     Depreciation
    of
    the year    		     At
    December 31,
    2015    		  

    Cost

    		                

    Network in operation and equipment

    		   Ps.  642,617,237     Ps. 78,632,899     Ps. (16,061,956 )    Ps. 4,293,671     Ps. —     Ps. (68,097,149 )    Ps. —     Ps.  641,384,702  

    Land and buildings

    		     56,463,536       2,559,088       (2,492,288 )      54,902       —         (1,790,852 )      —         54,794,386  

    Other assets

    		     105,550,807       27,711,493       (10,169,829 )      820,329       (12,643,381 )      (4,800,817 )      —         106,468,602  

    Construction in process and advances plant suppliers (1)

    		     39,107,185       72,899,705       (68,666,020 )      160,311       (348,395 )      (4,302,010 )      —         38,850,776  

    Inventories for operation of the network

    		     20,848,714       44,423,898       (43,911,307 )      —         —         (1,018,916 )      —         20,342,389  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		     864,587,479       226,227,083       (141,301,400 )      5,329,213       (12,991,776 )      (80,009,744 )      —         861,840,855  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Accumulated depreciation

    		                

    Network in operation and equipment

    		     234,527,131       —         (31,529,529 )      —         (7,403,656 )      (51,082,202 )      92,219,984       236,731,728  

    Buildings

    		     3,728,405       —         (433,368 )      —         —         (1,334,962 )      2,607,513       4,567,588  

    Other assets

    		     38,276,028       —         (4,533,893 )      —         —         (1,995,119 )      15,310,068       47,057,084  

    Inventories for operation of the network

    		     (50,265 )      —         (13,405 )      —         —         1,409       17,838       (44,423 ) 
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		   Ps.  276,481,299     Ps. —     Ps. (36,510,195 )    Ps.         —     Ps. (7,403,656 )    Ps. (54,410,874 )    Ps. 110,155,403     Ps.  288,311,977  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Net Cost

    		   Ps.  588,106,180     Ps.  226,227,083     Ps.  (104,791,205 )    Ps.  5,329,213     Ps. (5,588,120 )    Ps.  (25,598,870 )    Ps.  (110,155,403 )    Ps.  573,528,878  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

        At
    December 31,
    2015    		     Additions     Retirements     Business
    combinations    		     Effect of
    translation of
    foreign
    subsidiaries    		     Depreciation
    of
    the year    		     At
    December 31,
    2016    		  

    Cost

    		              

    Network in operation and equipment

    		     Ps. 641,384,702     Ps. 101,794,197       Ps.     (8,963,076)     Ps. 1,873,445       Ps. 235,186,745     Ps.             —       Ps. 971,276,013  

    Land and buildings

    		     54,794,386       2,900,511       (2,845,298 )      3,839       7,281,973       —         62,135,411  

    Other assets

    		     106,468,602       24,368,918       (10,717,096 )      69,937       24,736,655       —         144,927,016  

    Construction in process and
    advances plant suppliers (1)

    		     38,850,776       70,517,319       (70,911,593 )      11,255       11,252,127       —         49,719,884  

    Inventories for operation of the network

    		     20,342,389       34,010,751       (27,641,919 )      5,520       1,566,307       —         28,283,048  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		     861,840,855       233,591,696       (121,078,982)       1,963,996       280,023,807       —         1,256,341,372  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Accumulated depreciation

    		              

    Network in operation and equipment

    		     236,731,728                     —         (1,968,376 )                  —         153,147,349       107,976,385       495,887,086  

    Buildings

    		     4,567,588       —         (975,284 )      —         3,709,952       3,179,066       10,481,322  

    Other assets

    		     47,057,084       —         (25,099,710 )      —         10,396,438       16,105,885       48,459,697  

    Inventories for operation of the network

    		     (44,423 )      —         (54,280 )      —         20,896       401,008       323,201  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		     Ps. 288,311,977     Ps.              —       Ps.    (28,097,650 )    Ps.             —       Ps. 167,274,635     Ps. 127,662,344       Ps. 555,151,306  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Net Cost

    		     Ps. 573,528,878     Ps.  233,591,696       Ps.    (92,981,332 )    Ps. 1,963,996       Ps. 112,749,172     Ps.  (127,662,344 )      Ps. 701,190,066  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

        At
    December 31,
    2016    		     Additions     Retirements     Business
    combinations    		     Effect of
    translation of
    foreign
    subsidiaries    		     Depreciation
    of
    the year    		     At
    December 31,
    2017    		  

    Cost

    		              

    Network in operation and equipment

    		   Ps.  971,276,013     Ps.    78,272,882     Ps.  (21,657,715 )    Ps. 599,306     Ps.  (38,824,540 )    Ps.                —       Ps. 989,665,946  

    Land and buildings

    		     62,135,411       2,858,996       (415,219 )      27,686       (2,022,685 )      —         62,584,189  

    Other assets

    		     144,927,016       19,287,525       (8,112,571 )      80,734       (5,866,897 )      —         150,315,807  

    Construction in process and advances plant suppliers (1)

    		     49,719,884       66,383,381       (41,279,573 )      34,705       (737,023 )      —         74,121,374  

    Inventories for operation of the network

    		     28,283,048       27,013,148       (27,979,816 )      3,576       (728,358 )      —         26,591,598  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		     1,256,341,372       193,815,932       (99,444,894 )      746,007       (48,179,503 )      —         1,303,278,914  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Accumulated depreciation

    		              

    Network in operation and equipment

    		     495,887,086       —         (21,214,724)       —         (32,860,339 )      110,533,486       552,345,509  

    Buildings

    		     10,481,322       —         (1,568,542 )      —         (940,054 )      2,682,559       10,655,285  

    Other assets

    		     48,459,697       —         (4,572,509 )      —         (2,251,958 )      21,724,299       63,359,529  

    Inventories for operation of the network

    		     323,201       —         (9,205 )      —         (4,339 )      265,736       575,393  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		   Ps.  555,151,306     Ps.                           Ps.  (27,364,980 )    Ps.       Ps.  (36,056,690 )    Ps.   135,206,080     Ps. 626,935,716
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Net Cost

    		   Ps.  701,190,066     Ps.  193,815,932     Ps.  (72,079,914 )    Ps.  746,007     Ps.  (12,122,813 )    Ps.  (135,206,080 )   Ps. 676,343,198
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

    (1)  Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed.

    The completion period of construction in progress is variable and depends upon the type of fixed assets under construction.

    b) At December 31, 2016 and 2017, property, plant and equipment include the following assets under capital leases:

     

         2016      2017  

    Assets under capital leases

    		      Ps.  8,210,557        Ps.  8,116,532  

    Accumulated depreciation

    		      (4,839,007 )       (3,475,014 ) 
      

     

     

    		     

     

     

    		  
         Ps.  3,371,550        Ps.  4,641,518  
      

     

     

    		     

     

     

    		  

    c) At December 31, 2017, Claro Brasil has land and buildings and other equipment that are pledged in guarantee of legal proceedings in the amount of Ps. 3,521,082 (Ps. 3,530,845 as of December 31, 2016).

    d) Relevant information related to the computation of the capitalized borrowing costs is as follows:

     

         Years ended December 31,  
         2015      2016      2017  

    Amount invested in the acquisition of qualifying assets

    		      Ps. 52,922,105            Ps. 52,974,400            Ps. 49,642,370       

    Capitalized interest

    		      3,524,841          2,861,307            2,875,034       

    Capitalization rate

    		      6.7%        5.4%        5.8%  

    Capitalized interest is being amortized over a period of seven years, which is the estimated useful life of the related assets.

    e) On October 20, 2017, our subsidiary Star One signed a contract with SSL — Space Systems Loral for construction of the Star One D2 satellite, which will be equipped with transponders 52 in the C and Ku bands, 20 Gbps of capacity in Band Ka and a certain capacity in X-band. The cost of this Project is estimated to be approximately Ps. 6,391,104 (US$ 323,000) and the launch will take place at the end of 2019. At December 31, 2017 the amount recorded in Construction in progress amounts to Ps. 916,240 (R$153,179).

    f) The Company’s concessions in Brazil establish certain conditions under which assets may be reverted to the government, as discussed in Note 16(c).

    g) During 2016, Claro Brasil reviewed the useful life of its set top boxes. Such review was supported by historical data, change in the economic environment in which Claro Brasil operates and based on a professional technical evaluation. Based on the review the Company shortened such useful lives and recorded an increase in depreciation expense for Ps. 2,468,415 (R$458,234).

    In some of the jurisdictions where the Company operates and under certain circumstances, the Company may be required to transfer certain assets covered by some of their concessions to the government pursuant to valuation methodologies that vary in each jurisdiction (assets reversion). It is uncertain whether reversion would ever be applied and how reversion provisions would be interpreted in practice.