Financial Statements - Entel

EMPRESA NACIONAL DE TELECOMUNICACIONES S.A. & SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor Translation Purposes OnlyDuring these periods, there have been no allocations against inventories for adjustments to salevalue.During 2012 and 2011, Th. CLP $7,139,316 and Th. CLP $2,455,276 were recorded under income forimpairment in the inventories value due to technological and market obsolescence. The values atthe end of each period for this item were Th. CLP $6,450,645 and Th. CLP $1,776,231 respectively.No reversals of impairment recorded in previous years have been made during the period coveredby the financial statements.11. INTANGIBLE ASSETSThis item corresponds to assets represented by licenses, easements, and other items, detailed in thefollowing tables:12/31/2012 12/31/2011Th. CLP$Th. CLP$Total intangible assets, net 30,371,241 31,118,433Intangible assets with a finite life, net 30,371,241 31,118,433Identifiable intangible assets, net 30,371,241 31,118,433Patents trademarks and other rights, net 8,948,392 13,141,890Other identifiable intangible assets, net 21,422,849 17,976,543Total intangible assets, gross 64,762,909 60,546,713Identifiable intangible assets, gross 64,762,909 60,546,713Patents trademarks and other rights, gross 39,024,480 39,148,124Other identifiable intangible assets, gross 25,738,429 21,398,589Total cumulative amortization and impairment, intangible assets ( 34,391,668 ) ( 29,428,280 )Cumulative amortization and impairment, identifiable intangible assets (34,391,668) ( 29,428,280 )Cumulative amortization and impairment, patents trademarks and other rights (30,076,088) ( 26,006,234 )Cumulative amortization and impairment, other identifiable intangible assets (4,315,580) ( 3,422,046 )As of December 31, 2012, the net value of the main components of intangible assets is as follows.Patents, trademarks and other rights:Net valueProviderTerm(months)Residualterm(months)– Customer relations 5,730,899 CIENTEC and TRANSAM merger 180 144– Easements 2,466,676 Real estate owners 240 157– Fiber optic cable usage rights 598,085 Global crossing 84-168 35–47– Brands 100,219 CIENTEC and TRANSAM merger 48 12– Other 52,513Total 8,948,392Other identifiable intangible assets:– 900 MHz band concession 12,764,441 Chilean State 480 453– 2,600 MHz band concession (4G tender) 4,254,113 Chilean State 360 358– Wireless license (3.5 MHz) 4,158,337 Peruvian State 240 240– Other 245,958Total 21,422,849Cumulative losses for impairment included in the above table mainly affect assets for usage rightsfor fiber optic cable capacities. Cumulative losses for this concept were Th. CLP $2,857,281 as ofDecember 31, 2012. These losses originated in previous years and were mainly adjustments to therecoverable value of these assets caused by a decrease in market demand.- 26 -