AMERICA MOVIL SAB DE CV/ | CIK:0001129137 |

Filed: 4/26/2018

Entity registrant name: AMERICA MOVIL SAB DE CV/ (CIK: 0001129137)

Generator: Donnelley Financial Solutions

SEC filing page: http://www.sec.gov/Archives/edgar/data/1129137/000119312518135124/0001193125-18-135124-index.htm

XBRL Instance: http://www.sec.gov/Archives/edgar/data/1129137/000119312518135124/amx-20171231.xml

XBRL Cloud Viewer: Click to open XBRL Cloud Viewer

EDGAR Dashboard: https://edgardashboard.xbrlcloud.com/edgar-dashboard/?cik=0001129137

Open this page in separate window: Click

11. Intangible assets, net and goodwill

a) An analysis of intangible assets at December 31, 2015, 2016 and 2017 is as follows:

 

		For the year ended December 31, 2015
		Balance at beginning of year				Acquisitions				Acquisitions in business combinations				Disposals and other				Amortization of the year				Effect of translation of foreign subsidiaries				Balance at end of year
Licenses and rights of use		Ps.	174,795,094			Ps.	19,507,462			Ps.	448,364			Ps.	1,109,172			Ps.	—			Ps.	(20,564,317	)		Ps.	175,295,775
Accumulated amortization			(91,231,249	)			—				—				(25,976	)			(7,419,551	)			13,830,252				(84,846,524	)
Net			83,563,845				19,507,462				448,364				1,083,196				(7,419,551	)			(6,734,065	)			90,449,251
Trademarks			22,274,991				—				252,728				207,251				—				89,043				22,824,013
Accumulated amortization			(10,829,402	)			—				—				—				(936,606	)			242,301				(11,523,707	)
Net			11,445,589				—				252,728				207,251				(936,606	)			331,344				11,300,306
Customer relationships			15,306,167				—				949,915				791,548				—				1,346,777				18,394,407
Accumulated amortization			(485,951	)			—				—				—				(3,452,760	)			(24,164	)			(3,962,875	)
Net			14,820,216				—				949,915				791,548				(3,452,760	)			1,322,613				14,431,532
Software licenses			7,297,177				2,245,027				42,760				(307,955	)			—				(494,241	)			8,782,768
Accumulated amortization			(1,510,514	)			—				—				1,434,129				(2,921,767	)			573,554				(2,424,598	)
Net			5,786,663				2,245,027				42,760				1,126,174				(2,921,767	)			79,313				6,358,170
Content rights			1,862,030				768,888				—				—				—				3,609				2,634,527
Accumulated amortization			(158,555	)			—				—				—				(270,191	)			—				(428,746	)
Net			1,703,475				768,888				—				—				(270,191	)			3,609				2,205,781
Total of intangibles, net		Ps.	117,319,788			Ps.	22,521,377			Ps.	1,693,767			Ps.	3,208,169			Ps.	(15,000,875	)		Ps.	(4,997,186	)		Ps.	124,745,040
Goodwill (Note 12)		Ps.	140,903,391			Ps.	220,124			Ps.	711,723			Ps.	—			Ps.	—			Ps.	(4,721,522	)		Ps.	137,113,716

 

		For the year ended December 31, 2016
		Balance at beginning of year				Acquisitions				Acquisitions in business combinations				Disposals and other				Amortization of the year				Effect of translation of foreign subsidiaries				Balance at end of year
Licenses and rights of use		Ps.	175,295,775			Ps.	9,129,949			Ps.	360,144			Ps.	1,269,478			Ps.	—			Ps.	56,684,016			Ps.	242,739,362
Accumulated amortization			(84,846,524	)			—				—				—				(10,255,271	)			(31,606,303	)			(126,708,098	)
Net			90,449,251				9,129,949				360,144				1,269,478				(10,255,271	)			25,077,713				116,031,264
Trademarks			22,824,013				—				101,655				(13,820	)			—				4,877,302				27,789,150
Accumulated amortization			(11,523,707	)			—				—				—				(330,576	)			(3,367,974	)			(15,222,257	)
Net			11,300,306				—				101,655				(13,820	)			(330,576	)			1,509,328				12,566,893
Customer relationships			18,394,407				—				1,904,503				—				—				5,946,598				26,245,508
Accumulated amortization			(3,962,875	)			—				—				—				(3,231,518	)			(5,240,681	)			(12,435,074	)
Net			14,431,532				—				1,904,503				—				(3,231,518	)			705,917				13,810,434
Software licenses			8,782,768				3,854,066				26,871				(829,680	)			—				1,040,771				12,874,796
Accumulated amortization			(2,424,598	)			(41,185	)			(8,367	)			829,680				(3,469,461	)			(9,809	)			(5,123,740	)
Net			6,358,170				3,812,881				18,504				—				(3,469,461	)			1,030,962				7,751,056
Content rights			2,634,527				2,242,556				—				(217,057	)			—				216,272				4,876,298
Accumulated amortization			(428,746	)			—				—				(1,612	)			(2,236,141	)			—				(2,666,499	)
Net			2,205,781				2,242,556				—				(218,669	)			(2,236,141	)			216,272				2,209,799
Total of intangibles, net		Ps.	124,745,040			Ps.	15,185,386			Ps.	2,384,806			Ps.	1,036,989			Ps.	(19,522,967	)		Ps.	28,540,192			Ps.	152,369,446
Goodwill (Note 12)		Ps.	137,113,716			Ps.	—			Ps.	3,953,023			Ps.	(356,832)			Ps.	—			Ps.	11,922,728			Ps.	152,632,635

 

		For the year ended December 31, 2017
		Balance at beginning of year				Acquisitions				Acquisitions in business combinations				Disposals and other				Amortization of the year				Effect of translation of foreign subsidiaries				Balance at end of year
Licenses and rights of use		Ps.	242,739,362			Ps.	12,347,051			Ps.	53,923			Ps.	(1,037,458	)		Ps.	—			Ps.	(6,689,054	)		Ps.	247,413,824
Accumulated amortization			(126,708,098	)			—				—				244,564				(11,879,489	)			4,233,585				(134,109,438	)
Net			116,031,264				12,347,051				53,923				(792,894	)			(11,879,489	)			(2,455,469	)			113,304,386
Trademarks			27,789,150				127,823				82,868				(29,804	)			—				809,175				28,779,212
Accumulated amortization			(15,222,257	)			—				—				34,464				(3,179,461	)			(474,151	)			(18,841,405	)
Net			12,566,893				127,823				82,868				4,660				(3,179,461	)			335,024				9,937,807
Customer relationships			26,245,508				—				512,667				(882,338	)			—				1,109,877				26,985,714
Accumulated amortization			(12,435,074	)			—				—				882,338				(3,769,777	)			(806,982	)			(16,129,495	)
Net			13,810,434				—				512,667				—				(3,769,777	)			302,895				10,856,219
Software licenses			12,874,796				3,351,200				—				(1,698,118	)			—				527,720				15,055,598
Accumulated amortization			(5,123,740	)			—				—				1,212,669				(3,699,363	)			(204,727	)			(7,815,161	)
Net			7,751,056				3,351,200				—				(485,449	)			(3,699,363	)			322,993				7,240,437
Content rights			4,876,298				2,099,084				—				(63,137	)			—				(194,803	)			6,717,442
Accumulated amortization			(2,666,499	)			—				—				(195,658	)			(1,820,092	)			165,584				(4,516,665	)
Net			2,209,799				2,099,084				—				(258,795	)			(1,820,092	)			(29,219	)			2,200,777
Total of intangibles, net		Ps.	152,369,446			Ps.	17,925,158			Ps.	649,458			Ps.	(1,532,478	)		Ps.	(24,348,182	)		Ps.	(1,523,776	)		Ps.	143,539,626
Goodwill (Note 12)		Ps.	152,632,635			Ps.	—			Ps.	951,348			Ps.	(134,525	)		Ps.	—			Ps.	(1,986,226	)		Ps.	151,463,232

 

b) The aggregate carrying amount of goodwill is allocated as follows:

 

		December 31,
		2016				2017
Europe (7 countries)		Ps.	52,207,877			Ps.	53,143,542
Brazil (Fixed, wireless and TV)			26,106,623				24,708,740
Puerto Rico			17,463,393				17,463,394
Dominican Republic			14,186,724				14,186,723
Mexico (includes Telmex)			9,936,857				9,852,912
Ecuador			2,155,385				2,155,385
Peru			3,792,950				3,958,110
El Salvador			2,510,596				2,510,577
Chile			2,758,653				2,834,134
Colombia			14,659,892				13,981,033
Other countries			6,853,685				6,668,682
		Ps.	152,632,635			Ps.	151,463,232

c) The following is a description of the major changes in the”Licenses and rights of use” caption during the years ended December 31, 2015, 2016 and 2017:

2015 Acquisitions

i) In October 2015, Radiomóvil Dipsa renewed a license to provide cellular service in the 800 MHz frequency band. The frequency band expires in 2030. The amount paid was Ps. 1,007,410.

ii) In May 2015, Claro Ecuador acquired licenses related to 4G/LTE services. The frequency band expires in 2023. The amount paid was Ps. 2,861,060.

iii) In 2015, Claro Brasil obtained renewals related with the frequency bands of national 700Mhz. Funding for these procedures must be transmitted by operators in four annual installments adjusted by the IGP-ID of Ps. 4,412,730 (R$ 1,001,414) for which the corresponding renewal was performed.

iv) In November 2015, Vipnet located in Croatia acquired 2 x 3 MHz and 2 x 4.8 MHz in the 1.800 MHz spectrum for EUR 18,513. Vipnet already holds 2 x 29.4 MHz in the lower frequency band (below 1 GHz), 2 x 25.0 in the higher frequency band (above 1 GHz) as well as 5.0 MHz TDD spectrum. The amount paid was Ps. 321,915.

v) In November 2015, Vip mobile, the Serbian subsidiary acquired 2 x 5 MHz of the 800 MHz spectrum. The new spectrum will be used by VIP mobile for the LTE rollout and will enhance the high-speed data service in rural areas as well as data usage in connection with smartphones. Vip mobile already holds a 2 x 4.2 MHz in the lower frequency band (below 1 GHz) as well as 2 x 45.0 MHz in the higher frequency band (above 1 GHz). The amount paid was Ps. 1,129,988 (EUR 60,942).

As a part of the business combinations, the Company recognized licenses for an amount of Ps. 448,364. The Company holds licenses provided by the regulatory authorities in those jurisdictions. These licenses are estimated to have a remaining useful life of 10 years.

vi) In 2015, Argentina paid Ps. 5,599,745 (AR$ 3,269,312) for the acquisition of 4G licenses to increase the service throughout the country.

vii) Additionally the Company acquired other licenses in Puerto Rico, Panama and others countries in the amount of Ps. 4,174,614.

 

2016 Acquisitions

i) In February 2016, the Company´s subsidiary in Paraguay was granted with the use of 30 MHz of spectrum in the 1700/2100 Mhz frequency. The total cost was Ps. 830,719 (US$ 46,000).

ii) In February 2016, the Company through its subsidiary Radiomóvil Dipsa, S.A. de C.V. (Telcel), acquired through an auction a total of 20MHz in the national wide AWS-1 band and 40 MHz in the AWS-3 band. The concession expires in October 2030. The Company paid an amount of Ps. 2,098,060.

iii) In May 2016, Mtel, located in Bulgaria, acquired 2 x 5 MHz in the 1,800-MHz spectrum for Ps. 135,441 (EUR 6,212). During 2016, Telekom Austria paid Ps. 410,713 (EUR 18,837) for the renewals referring to an obligation obtained from concessions granted in previous years.

iv) On May 26, 2016, the Company’s subsidiary in Peru acquired spectrum in a public auction of the 700 MHz band. The frequency band expires in 2036. The cost of the spectrum was Ps. 5,627,316 (PEN$. 1,002,523).

v) In July 2016, Ecuador Telecom acquired a license to operate TV in Ecuador for a period that ends in 2031. The amount paid was Ps. 27,700 (US$ 1,500).

2017 Acquisitions

i) In 2017, Claro Brasil increased its licenses value by Ps. 3,592,034 due to the cleaning process of the 700 MHz national frequency acquired in September 2014.

ii) On February 24, 2017 Radiomóvil Dipsa renewed its 8.4 MHz national license by paying Ps. 917,431, and on July 14, 2017, it acquired 43 concession titles for frequencies of 2.5 GHz in the amount of Ps. 5,305,498.

iii) Additionally in 2017, the Company acquired other licenses in Chile, Europe, Uruguay and others countries in the amount of Ps. 2,532,088.

Amortization of intangibles for the years ended December 31, 2015, 2016 and 2017 amounted to Ps. 15,000,875, Ps. 19,522,968 and Ps. 24,348,182, respectively.

In September 2017, the Company decided to consolidate the brands in Telekom Austria Group. Depending on the respective markets, the Austrian brand “A1” will be rolled out to all the subsidiaries through the third quarter 2019, at the latest, and the local brands are amortized accordingly.

Some of the jurisdictions in which the Company operates can revoke their concessions under certain circumstances such as imminent danger to national security, national economy and natural disasters.