Note 7 – Inventories
Inventories consist of the following:
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|
|
As of December 31, |
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||
|
|
|
2017 |
|
2016 |
|
|
Mobile handsets and others |
|
1,631 |
|
1,321 |
|
|
Fixed telephones and equipment |
|
18 |
|
11 |
|
|
Inventories for construction projects |
|
252 |
|
- |
|
|
|
|
|
|
|
|
|
Subtotal |
|
1,901 |
|
1,332 |
|
|
Allowance for obsolescence of inventories |
|
(47) |
|
(54) |
|
|
|
|
|
|
|
|
|
|
|
1,854 |
|
1,278 |
|
|
|
|
|
|
|
|
Movements in the allowance for obsolescence of inventories are as follows:
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|
|
Years ended December 31, |
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||
|
|
|
2017 |
|
2016 |
|
|
At the beginning of the year |
|
(54) |
|
(86) |
|
|
Additions – Fees for services, maintenance and materials |
|
(17) |
|
(45) |
|
|
Uses |
|
24 |
|
77 |
|
|
|
|
|
|
|
|
|
At the end of the year |
|
(47) |
|
(54) |
|
|
|
|
|
|
|
|
Sale and cost of equipment and handsets by business segment is as follows:
|
|
|
Years ended December 31, |
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||||
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
Equipment sales Fixed Services |
|
663 |
|
91 |
|
61 |
|
|
Cost of equipment Fixed Services |
|
(524) |
|
(136) |
|
(82) |
|
|
|
|
|
|
|
|
|
|
|
Total equipment gain (loss) – Fixed Services |
|
139 |
|
(45) |
|
(21) |
|
|
|
|
|
|
|
|
|
|
|
Equipment and handsets sales Mobile Services - Personal |
|
7,446 |
|
7,535 |
|
5,796 |
|
|
Cost of equipment and handsets Mobile Services - Personal (net of SAC capitalizations) |
|
(6,035) |
|
(5,749) |
|
(4,328) |
|
|
|
|
|
|
|
|
|
|
|
Total equipment gain – Mobile Services – Personal |
|
1,411 |
|
1,786 |
|
1,468 |
|
|
|
|
|
|
|
|
|
|
|
Equipment and handsets sales Mobile Services - Núcleo |
|
106 |
|
260 |
|
159 |
|
|
Cost of equipment and handsets – Mobile Services Núcleo (net of SAC capitalizations) |
|
(125) |
|
(303) |
|
(185) |
|
|
|
|
|
|
|
|
|
|
|
Total equipment loss – Mobile Services – Núcleo |
|
(19) |
|
(43) |
|
(26) |
|
|
|
|
|
|
|
|
|
|
|
Total equipment and handsets sale |
|
8,215 |
|
7,886 |
|
6,016 |
|
|
Total cost of equipment and handsets (net of SAC capitalizations) |
|
(6,684) |
|
(6,188) |
|
(4,595) |
|
|
|
|
|
|
|
|
|
|
|
Total income for sale of equipment and handsets |
|
1,531 |
|
1,698 |
|
1,421 |
|
|
|
|
|
|
|
|
|
|
Cost of equipment and handsets is as follows:
|
|
|
Years ended December 31, |
|
||||
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
Inventories at the beginning of the year |
|
(1,332) |
|
(2,279) |
|
(794) |
|
|
Plus: |
|
|
|
|
|
|
|
|
Equipment acquisitions |
|
(7,416) |
|
(5,491) |
|
(6,233) |
|
|
SAC deferred costs (Note 3.j) |
|
80 |
|
130 |
|
93 |
|
|
Decreases net of allowance of obsolescence |
|
20 |
|
49 |
|
25 |
|
|
Handsets lent to customers at no cost |
|
56 |
|
54 |
|
32 |
|
|
Decreases not charged to cost of equipment |
|
7 |
|
17 |
|
3 |
|
|
Less: |
|
|
|
|
|
|
|
|
Inventories at the end of the year |
|
1,901 |
|
1,332 |
|
2,279 |
|
|
|
|
|
|
|
|
|
|
|
Cost of equipment and handsets |
|
(6,684) |
|
(6,188) |
|
(4,595) |
|
|
|
|
|
|
|
|
|
|