Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | MEXICAN ECONOMIC DEVELOPMENT INC |
Entity Central Index Key | 0001061736 |
Current Fiscal Year End Date | --12-31 |
Entity Incorporation, State or Country Code | O5 |
Entity Address, Address Line One | General Anaya No. 601 Pte. |
Entity Address, Address Line Two | Colonia Bella Vista |
Entity Address, City or Town | Monterrey |
Entity Address, State or Province | NL |
Entity Address, Country | MX |
Entity Address, Postal Zip Code | 64410 |
Contact Personnel Name | Juan F. Fonseca |
Contact Personnel Email Address | investor@femsa.com.mx |
Contact Personnel Fax Number | 328-6167 |
Document Annual Report | true |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Accounting Standard | IFRS |
Document Transition Report | false |
Document Shell Company Report | false |
American depositary shares [member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing 10 BD Units, and each BD Unit consisting of one Series B Share, two Series D-B Shares and two Series D-L |
Trading Symbol | FMX |
Security Exchange Name | NASDAQ |
2.875% Senior Notes due 2023 | |
Document Information [Line Items] | |
Title of 12(b) Security | 2.875% Senior Notes due 2023 |
Trading Symbol | FMX23 |
Security Exchange Name | NASDAQ |
4.375% Senior Notes due 2043 | |
Document Information [Line Items] | |
Title of 12(b) Security | 4.375% Senior Notes due 2043 |
Trading Symbol | FMX43 |
Security Exchange Name | NASDAQ |
3.500% Senior Notes due 2050 | |
Document Information [Line Items] | |
Title of 12(b) Security | 3.500% Senior Notes due 2050 |
Trading Symbol | FMX50 |
Security Exchange Name | NASDAQ |
BD units [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,161,177,770 |
B units [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,417,048,500 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | [1] | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | |
Assets | ||||||
Cash and cash equivalents | $ 65,562 | $ 3,476 | $ 62,047 | [1] | ||
Investments | 12,366 | 656 | 30,924 | |||
Trade accounts receivables, net | 29,633 | 1,571 | 28,164 | |||
Inventories | 41,023 | 2,175 | 35,686 | |||
Recoverable taxes | 18,761 | 995 | 16,488 | |||
Other current financial assets | 1,146 | 61 | 878 | |||
Other current assets | 4,088 | 217 | 3,420 | |||
Total current assets | 172,579 | 9,151 | 177,607 | |||
NON CURRENT ASSETS | ||||||
Equity accounted investees | 97,470 | 5,168 | 94,315 | |||
Property, plant and equipment, net | 114,513 | 6,072 | 108,602 | |||
Right-of-use assets, net | 52,684 | 2,793 | 50,220 | |||
Intangible assets, net | 146,562 | 7,771 | 145,610 | |||
Deferred tax assets | 20,521 | 1,088 | 16,543 | |||
Other non-current financial assets | 22,680 | 1,203 | 23,387 | |||
Other non-current assets | 10,532 | 558 | 10,317 | |||
Total non-current assets | 464,962 | 24,653 | 398,774 | |||
TOTAL ASSETS | 637,541 | 33,804 | 576,381 | |||
Liabilities | ||||||
Bank loans and notes payable | 3,935 | 209 | 2,436 | |||
Current portion of non-current debt | 12,269 | 651 | 11,238 | |||
Current portion of lease liabilities | 7,387 | 392 | ||||
Interest payable | 895 | 47 | 964 | |||
Trade payable | 57,178 | 3,032 | 52,101 | |||
Accounts payable | 19,498 | 1,034 | 13,568 | |||
Taxes payable | 11,717 | 621 | 12,264 | |||
Other current financial liabilities | 23,655 | 1,254 | 8,893 | |||
Total current liabilities | 136,534 | 7,240 | 101,464 | |||
NON-CURRENTLIABILITIES | ||||||
Bank loans and notes payable | 101,747 | 5,395 | 114,990 | |||
Lease liabilities | 47,292 | 2,508 | ||||
Post-employment benefits | 6,347 | 337 | 4,699 | |||
Deferred tax liabilities | 6,946 | 368 | 5,886 | |||
Other non-current financial liabilities | 2,481 | 132 | 2,232 | |||
Provisions and other non-current liabilities | 10,443 | 552 | 11,568 | |||
Total non-current liabilities | 175,256 | 9,292 | 139,375 | |||
TOTAL LIABILITIES | 311,790 | 16,532 | 240,839 | |||
EQUITY | ||||||
Capital stock | 3,348 | 178 | 3,348 | |||
Additional paid-in capital | 18,162 | 963 | 26,850 | |||
Retained earnings | 229,794 | 12,184 | 217,802 | |||
Other comprehensive income | 685 | 36 | 9,053 | |||
Total controlling interest | 251,989 | 13,361 | 257,053 | |||
Non-controlling interest | 73,762 | 3,911 | 78,489 | |||
TOTAL EQUITY | 325,751 | 17,272 | 335,542 | |||
TOTAL LIABILITIES AND EQUITY | $ 637,541 | $ 33,804 | $ 576,381 | |||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Consolidated Income Statements
Consolidated Income Statements $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019MXN ($)$ / shares | [1] | Dec. 31, 2019USD ($)$ / shares | [2] | Dec. 31, 2018MXN ($)$ / shares | Dec. 31, 2017MXN ($)$ / shares | [3] | |
Statement [LineItems] | |||||||
Net sales | $ 504,059 | $ 26,726 | [1] | $ 468,894 | $ 439,239 | ||
Other operating revenues | 2,652 | 141 | [1] | 850 | 693 | ||
Total revenues | 506,711 | 26,867 | [1] | 469,744 | 439,932 | ||
Cost of goods sold | 315,230 | 16,714 | [1] | 294,574 | 277,842 | ||
Gross profit | 191,481 | 10,153 | [1] | 175,170 | 162,090 | ||
Administrative expenses | 19,930 | 1,057 | [1] | 17,313 | 15,222 | ||
Selling expenses | 121,871 | 6,462 | [1] | 114,573 | 105,880 | ||
Other income | 1,013 | 54 | [1] | 673 | 31,951 | ||
Other expenses | 4,905 | 260 | [1] | 2,947 | 33,866 | ||
Interest expense | 14,133 | 749 | [1] | 9,825 | 11,092 | ||
Interest income | 3,168 | 168 | [1] | 2,832 | 1,470 | ||
Foreign exchange (loss) gain, net | (2,467) | (131) | [1] | (248) | 4,934 | ||
Monetary position gain, net | 260 | 14 | [1] | 216 | 1,590 | ||
Market value loss on financial instruments | 320 | 17 | [1] | 355 | 204 | ||
Income before income taxes from continuing operations and share in the profit of equity accounted investees | 32,296 | 1,713 | [1] | 33,630 | 35,771 | ||
Income taxes | 10,476 | 555 | [1] | 10,169 | 10,213 | ||
Share in the profit of equity accounted investees, net of tax | 6,228 | 330 | [1] | 6,252 | 7,923 | ||
Net income from continuing operations | 28,048 | 1,488 | [1] | 29,713 | 33,481 | ||
Net income from discontinued operations | $ | 3,366 | 3,726 | |||||
CONSOLIDATED NET INCOME | 28,048 | 1,488 | 33,079 | 37,207 | |||
Controlling interest from continuing operations | 20,699 | 1,098 | [1] | 22,560 | 40,864 | ||
Controlling interest from discontinued operations | $ | 1,430 | 1,545 | |||||
Non-controlling interest from continuing operations | 7,349 | 390 | [1] | 7,153 | (7,383) | ||
Non-controlling interest from discontinued operations | $ | 1,936 | 2,181 | |||||
CONSOLIDATED NET INCOME | $ 28,048 | $ 1,488 | $ 33,079 | $ 37,207 | |||
Series B shares [member] | |||||||
Basic earnings per share of continuing operations | |||||||
Basic earnings per share of continuing operations | (per share) | $ 1.03 | $ 0.05 | [1] | $ 1.13 | $ 2.04 | ||
Basic earnings per share of discontinued operations | |||||||
Basic earnings per share of discontinued operations | 0.07 | 0.08 | |||||
Diluted earnings per share of continuing operations | |||||||
Diluted earnings per share of continuing operations | (per share) | 1.03 | 0.05 | [1] | 1.13 | 2.04 | ||
Diluted earnings per share of discontinued operations | |||||||
Diluted earnings per share of discontinued operations | 0.07 | 0.08 | |||||
Series D shares [member] | |||||||
Basic earnings per share of continuing operations | |||||||
Basic earnings per share of continuing operations | (per share) | 1.29 | 0.07 | [1] | 1.41 | 2.55 | ||
Basic earnings per share of discontinued operations | |||||||
Basic earnings per share of discontinued operations | 0.09 | 0.10 | |||||
Diluted earnings per share of continuing operations | |||||||
Diluted earnings per share of continuing operations | (per share) | $ 1.29 | $ 0.07 | [1] | 1.41 | 2.55 | ||
Diluted earnings per share of discontinued operations | |||||||
Diluted earnings per share of discontinued operations | $ 0.09 | $ 0.10 | |||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||||
Statement [Line Items] | ||||||||
CONSOLIDATED NET INCOME | $ 28,048 | [1] | $ 1,488 | $ 33,079 | $ 37,207 | [3] | ||
Items that will be reclassified to consolidated net income in subsequent periods, net of tax: | ||||||||
Valuation of the effective portion of derivative financial instruments | (980) | (52) | (592) | (439) | [3] | |||
Income (loss) on hedge of net investments in foreign operations | 991 | 53 | 724 | (1,259) | [3] | |||
Exchange differences on the translation of foreign operations and equity accounted investees | (12,556) | (666) | (13,174) | 14,482 | [3] | |||
Share of other comprehensive income (loss) of equity accounted investees | 1,058 | 56 | (360) | (2,013) | [3] | |||
Total items that will be reclassified | (11,487) | (609) | (13,402) | 10,771 | [3] | |||
Items that will not to be reclassified to consolidated net income in subsequent periods, net of tax: | ||||||||
Loss due to changes in the fair value in equity financial instruments | (1,039) | |||||||
Share of other comprehensive income (loss) of equity accounted investees | (389) | (21) | 597 | 69 | [3] | |||
Remeasurements of the net defined benefit liability | (1,090) | (58) | 551 | (7) | [3] | |||
Total items that will not be reclassified | (1,479) | (79) | 109 | 62 | [3] | |||
Other items of comprehensive (loss) income, net of tax | (12,966) | (688) | (13,293) | 10,833 | [3] | |||
Consolidated comprehensive income, net of tax | 15,082 | 800 | 19,786 | 48,039 | [3] | |||
Controlling interest comprehensive income | 12,331 | 654 | 14,776 | 46,052 | [3] | |||
Controlling interest comprehensive income | 12,285 | 651 | 14,776 | 46,001 | [3] | |||
Non-controlling interest comprehensive income | 2,751 | 146 | 5,010 | 1,987 | [3] | |||
Non-controlling interest comprehensive income | 2,797 | 149 | 5,010 | 2,038 | [3] | |||
Controlling comprehensive income from continuing operations, net of tax | 12,285 | 651 | 4,540 | 20,895 | [3] | |||
Controlling comprehensive income from discontinued operations, net of tax | 4,804 | 1,790 | [3] | |||||
Non-controlling comprehensive income from continuing operations, net of tax | 2,797 | 149 | 10,236 | 25,106 | [3] | |||
Consolidated comprehensive income, net of tax | 15,082 | 800 | 19,786 | 48,039 | [3] | |||
Non-controlling comprehensive income from discontinued operations, net of tax | $ 206 | 248 | [3] | |||||
Vonpar [member] | ||||||||
Items that will not to be reclassified to consolidated net income in subsequent periods, net of tax: | ||||||||
Reattribution to non-controlling interest of other comprehensive income by acquisition | [3] | (51) | ||||||
Reattribution from controlling interest of other comprehensive income by acquisition | [3] | $ 51 | ||||||
Farmacias Yza [member] | ||||||||
Items that will not to be reclassified to consolidated net income in subsequent periods, net of tax: | ||||||||
Reattribution to non-controlling interest of other comprehensive income by acquisition | 3 | |||||||
Reattribution from controlling interest of other comprehensive income by acquisition | (3) | |||||||
Grupo Socofar [member] | ||||||||
Items that will not to be reclassified to consolidated net income in subsequent periods, net of tax: | ||||||||
Reattribution to non-controlling interest of other comprehensive income by acquisition | (49) | (3) | ||||||
Reattribution from controlling interest of other comprehensive income by acquisition | $ 49 | $ 3 | ||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity $ in Millions, $ in Millions | MXN ($) | USD ($) | [3] | Capital stock [member]MXN ($) | Additional paid-in capital [member]MXN ($) | Retained earnings [member]MXN ($) | Fair value in equity financial instrument [member]MXN ($) | Valuation of the effective portion of derivative financial instrument [member]MXN ($) | Exchange differences on the translation of foreign operations and equity accounted investees [member]MXN ($) | Remeasurements of the net defined benefit liability [member]MXN ($) | Total controlling interest [member]MXN ($) | Non-controlling interest [member]MXN ($) | |
Beginning Balance at Dec. 31, 2016 | $ 286,170 | $ 3,348 | $ 25,733 | $ 168,796 | $ 2,663 | $ 14,553 | $ (3,189) | $ 211,904 | $ 74,266 | ||||
Consolidated net income | 37,207 | [1] | 42,408 | 42,408 | (5,202) | ||||||||
Other comprehensive income (loss), net | 10,833 | [1] | (47) | 3,607 | 33 | 3,593 | 7,240 | ||||||
Total other comprehensive income (loss) | 48,039 | [1] | 42,408 | (47) | 3,607 | 33 | 46,001 | 2,038 | |||||
Dividends declared and paid | (12,258) | (8,636) | (8,636) | (3,622) | |||||||||
Issuance (purchase) of share-based compensation plans | (39) | (89) | (89) | 50 | |||||||||
Capitalization of issued shares to former owners of Vonpar in Coca-Cola FEMSA | 4,082 | 1,164 | 2 | 47 | 2 | 1,215 | 2,867 | ||||||
Acquisition of non-controlling interest | (322) | (322) | |||||||||||
Contribution from non-controlling interest | 272 | 272 | |||||||||||
Recognition of non-controlling interest upon consolidation of CCFPI | 11,072 | 11,072 | |||||||||||
Recycling from net defined benefit liability on partial disposal of equity accounted investees | (596) | 596 | |||||||||||
Other movements in equity accounted investees, net of tax | (104) | (104) | (104) | ||||||||||
Ending Balance (Accounting standard adoption effects [member]) at Dec. 31, 2017 | (379) | (229) | (229) | (150) | |||||||||
Ending Balance (IAS 29 [member]) at Dec. 31, 2017 | 2,687 | 1,269 | 1,269 | 1,418 | |||||||||
Ending Balance (Adjusted balance [member]) at Dec. 31, 2017 | 339,220 | 3,348 | 26,808 | 202,908 | 2,618 | 18,207 | (2,558) | 251,331 | 87,889 | ||||
Ending Balance at Dec. 31, 2017 | 336,912 | 3,348 | 26,808 | 201,868 | 2,618 | 18,207 | (2,558) | 250,291 | 86,621 | ||||
Consolidated net income | 33,079 | 23,990 | 23,990 | 9,089 | |||||||||
Other comprehensive income (loss), net | (13,293) | $ (491) | (727) | (8,988) | 992 | (9,214) | (4,079) | ||||||
Total other comprehensive income (loss) | 19,786 | 23,990 | (491) | (727) | (8,988) | 992 | 14,776 | 5,010 | |||||
Dividends declared and paid | (12,933) | (9,220) | (9,220) | (3,713) | |||||||||
Issuance (purchase) of share-based compensation plans | 73 | 42 | 42 | 31 | |||||||||
Contribution from non-controlling interest | 412 | 412 | |||||||||||
Derecognition upon disposal of controlling interest in Philippines | (11,140) | (11,140) | |||||||||||
Other movements in equity accounted investees, net of tax | 124 | 124 | 124 | ||||||||||
Ending Balance (Accounting standard adoption effects [member]) at Dec. 31, 2018 | (162) | (93) | (93) | (69) | |||||||||
Ending Balance (Adjusted balance [member]) at Dec. 31, 2018 | 335,380 | 3,348 | 26,850 | 217,709 | (491) | 1,891 | 9,219 | (1,566) | 256,960 | 78,420 | |||
Ending Balance at Dec. 31, 2018 | 335,542 | 3,348 | 26,850 | 217,802 | (491) | 1,891 | 9,219 | (1,566) | 257,053 | 78,489 | |||
Consolidated net income | 28,048 | [2] | $ 1,488 | 20,699 | 0 | 0 | 0 | 20,699 | 7,349 | ||||
Other comprehensive income (loss), net | (12,966) | (688) | (562) | (6,647) | (1,205) | (8,414) | (4,552) | ||||||
Total other comprehensive income (loss) | 15,082 | 800 | 20,699 | (562) | (6,647) | (1,205) | 12,285 | 2,797 | |||||
Dividends declared and paid | (13,637) | (9,692) | (9,692) | (3,945) | |||||||||
Issuance (purchase) of share-based compensation plans | 21 | 33 | 0 | 33 | (12) | ||||||||
Other acquisitions and remeasurements | 32 | 32 | |||||||||||
Other acquisition of non-controlling interest | (12,205) | (8,721) | 32 | 17 | (3) | (8,675) | (3,530) | ||||||
Other movements in equity accounted investees, net of tax | 1,078 | 1,078 | 1,078 | ||||||||||
Ending Balance at Dec. 31, 2019 | $ 325,751 | [2] | $ 17,272 | $ 3,348 | $ 18,162 | $ 229,794 | $ (491) | $ 1,361 | $ 2,589 | $ (2,774) | $ 251,989 | $ 73,762 | |
[1] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 | ||||||||||||
[2] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||||||||
[3] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [3] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |||||
OPERATING ACTIVITIES | |||||||||
Income before income taxes from discontinued operations | $ 1,308 | $ 1,265 | [1] | ||||||
Income before income taxes from continuing operations | $ 38,524 | [2] | $ 2,043 | [2] | 39,882 | 43,694 | [1] | ||
Non-cash items adjustments: | |||||||||
Operating (income) expenses | (1,279) | [2] | (68) | [2] | 1,687 | 3,166 | [1] | ||
Non-operating expenses | [1] | 25,817 | |||||||
Depreciation | 23,361 | [2] | 1,239 | [2] | 14,698 | 13,799 | [1] | ||
Amortization | 2,449 | [2] | 130 | [2] | 2,539 | 1,841 | [1] | ||
Gain on sale of long-lived assets | 68 | [2] | 4 | [2] | (174) | (210) | [1] | ||
(Gain) loss on sale of shares | [1] | (30,112) | |||||||
Disposal of long-lived assets | 861 | [2] | 46 | [2] | 518 | 451 | [1] | ||
Impairment of long-lived assets | 1,018 | [2] | 54 | [2] | 432 | 2,063 | [1] | ||
Share of the profit of equity accounted investees, net of taxes | (6,228) | [2] | (330) | [2] | (6,252) | (7,923) | [1] | ||
Interest income | (3,168) | [2] | (168) | [2] | (2,832) | (1,470) | [1] | ||
Interest expense | 14,133 | [2] | 749 | [2] | 9,825 | 11,092 | [1] | ||
Foreign exchange loss (gain), net | 2,467 | [2] | 131 | [2] | 248 | (4,934) | [1] | ||
Monetary position (gain), net | (260) | [2] | (14) | [2] | (216) | (1,590) | [1] | ||
Market value loss on financial instruments | 320 | [2] | 17 | [2] | 355 | 204 | [1] | ||
Net cash flow from operating activities before changes in operating accounts | 72,266 | [2] | 3,833 | [2] | 60,710 | 55,888 | [1] | ||
Trade accounts receivable and other current assets | (2,818) | [2] | (149) | [2] | (2,426) | (11,182) | [1] | ||
Other current financial assets | (268) | [2] | (14) | [2] | 379 | 1,417 | [1] | ||
Inventories | (5,635) | [2] | (299) | [2] | (3,809) | (2,808) | [1] | ||
Derivative financial instruments | 41 | [2] | 2 | [2] | (23) | 18 | [1] | ||
Trade accounts payable and other accounts | 10,230 | [2] | 542 | [2] | 4,906 | 7,344 | [1] | ||
Other non-current liabilities | 345 | [2] | 18 | [2] | 752 | 309 | [1] | ||
Other current financial liabilities | 158 | [2] | 8 | [2] | (544) | 1,769 | [1] | ||
Employee benefits paid | (790) | [2] | (42) | [2] | (412) | (661) | [1] | ||
Net cash generated from operations | 73,529 | [2] | 3,899 | [2] | 59,532 | 52,094 | [1] | ||
Income taxes paid | (11,891) | [2] | (630) | [2] | (12,603) | (18,659) | [1] | ||
Net cash generated by operating activities from discontinued operations | 654 | 5,435 | [1] | ||||||
Net cash generated by operating activities from continuing operations | 61,638 | [2] | 3,268 | [2] | 46,929 | 33,435 | [1] | ||
INVESTING ACTIVITIES | |||||||||
Proceeds from the sale of subsidiary, net of cash disposed | 7,649 | ||||||||
Acquisition by Coca-Cola FEMSA, net of cash acquired (see Note 4) | (5,692) | ||||||||
Deconsolidation in Coca-Cola FEMSA Venezuela (see Note 3.3) | [1] | (170) | |||||||
Other acquisitions, net of cash acquired (see Note 4) | (7,136) | [2] | (374) | [2] | (321) | ||||
Equity accounted investees | (2,516) | [2] | (133) | [2] | (98) | (889) | [1] | ||
Other equity investments | [2] | (14,419) | (765) | ||||||
Partial disposal of investment in Heineken Group | [1] | 50,790 | |||||||
Disposal (purchase) of investments | 29,381 | [2] | 1,558 | [2] | (40,487) | (2,539) | [1] | ||
Interest received | 3,253 | [2] | 172 | [2] | 2,736 | 1,470 | [1] | ||
Derivative financial instruments | (203) | [2] | (11) | [2] | 99 | (35) | [1] | ||
Dividends received from equity accounted investees | 3,026 | [2] | 160 | [2] | 2,927 | 3,277 | [1] | ||
Property, plant and equipment acquisitions | (22,926) | [2] | (1,216) | [2] | (21,584) | (19,484) | [1] | ||
Proceeds from disposal of property, plant and equipment | 655 | [2] | 35 | [2] | 467 | 491 | [1] | ||
Acquisition of intangible assets | (2,197) | [2] | (117) | [2] | (1,793) | (3,003) | [1] | ||
Investment in other assets | (1,179) | [2] | (63) | [2] | (1,182) | (1,222) | [1] | ||
Collections of other assets | 415 | [2] | 22 | [2] | 166 | 94 | [1] | ||
Investment in other financial assets | (285) | [2] | (19) | [2] | (65) | (184) | [1] | ||
Net cash (used in) generated by investing activities from discontinued operations | (962) | 2,820 | [1] | ||||||
Net cash (used in) generated by investing activities from continuing operations | (14,132) | [2] | (751) | [2] | (57,178) | 28,596 | [1] | ||
FINANCING ACTIVITIES | |||||||||
Proceeds from borrowings | 18,280 | [2] | 788 | [2] | 16,155 | 13,599 | [1] | ||
Payments of bank loans | (26,301) | [2] | (1,213) | [2] | (17,182) | (18,130) | [1] | ||
Interest paid | (6,503) | [2] | (345) | [2] | (6,799) | (6,547) | [1] | ||
Derivative financial instruments | (690) | [2] | (37) | [2] | (2,288) | (1,579) | [1] | ||
Dividends paid | (13,629) | [2] | (723) | [2] | (12,933) | (12,450) | [1] | ||
Acquisition of non-controlling interest | (728) | [2] | (39) | [2] | (663) | [1] | |||
Interest paid derived from leases | [2] | (4,498) | (238) | ||||||
Payments of leases | [2] | (4,350) | (231) | ||||||
Other financing activities | (15) | [2] | (1) | [2] | 36 | 634 | [1] | ||
Financing from Vonpar's acquisition | [1] | 4,082 | |||||||
Net cash used in financing activities from discontinued operations | (37) | (485) | [1] | ||||||
Net cash (used) generated by financing activities from continuing operations | (38,433) | [2] | (2,040) | [2] | (23,011) | (21,054) | [1] | ||
Increase (decrease) in cash and cash equivalents from continuing operations | 9,073 | [2] | 477 | [2] | (33,258) | 40,977 | [1] | ||
Increase in cash and cash equivalents from discontinued operations | 963 | 9,035 | [1] | ||||||
Cash and cash equivalents at the beginning of the period | 62,047 | [2] | 3,290 | [2] | 96,944 | [1] | 43,637 | [1] | |
Effects of exchange rate changes and inflation effects on cash and cash equivalents held in foreign currencies | (5,558) | [2] | (291) | [2] | (2,602) | 3,295 | [1] | ||
Cash and cash equivalents at the end of the period | $ 65,562 | [2] | $ 3,476 | $ 62,047 | [2] | $ 96,944 | [1] | ||
[1] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 | ||||||||
[2] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||||
[3] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Company business
Company business | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Company business | Note 1. Company Business Fomento Económico Mexicano, S.A.B. de C.V. and subsidiaries (“FEMSA” or the Company), incorporated in 1936, is a public company established as a sociedad anónima bursátil de capital variable sub-holding The following is a description of the Company’s businesses, along with its interest ownership in each reportable segment: % Ownership Business 2019 2018 Activities Coca-Cola FEMSA, 47.2% (1) (56.0% of the voting shares) 47.2% (1) (63.0% of the voting shares) Production, distribution and marketing of certain FEMSA Comercio – Proximity Division (3) 100% 100% Small-box FEMSA Comercio – Fuel Division 100% 100% Retail service stations for fuels, motor oils, lubricants and car care products under the trade name “OXXO GAS” with operations in Mexico. FEMSA Comercio – Health Division 100% (2) Various (2) Drugstores operations in Chile, Colombia and Ecuador, mainly under the trademark “Cruz Verde”, “Fybeca” and “Sana Sana”; and in Mexico under various brands such as “YZA”,” La Moderna” and “Farmacon”. Heineken investment 14.8% 14.8% Heineken N.V. and Heineken Holding N.V. shares, which represents an aggregate of 14.8% economic interest in both entities (“Heineken Group”). Other businesses 100% 100% Companies engaged in the production and distribution of coolers, commercial refrigeration equipment, plastic cases, food processing, preservation and weighing equipment; logistic transportation and maintenance services to FEMSA’s subsidiaries and to third parties. (1) The Company controls Coca-Cola FEMSA’s relevant activities. On January 31, 2019, Coca-Cola FEMSA, S.A.B. de C.V. Extraordinary General Shareholders’ Meeting approved the following: (i) an eight-for-one (2) The former shareholders of Farmacias YZA had a 18.6% stake in Cadena Comercial de Farmacias, S.A.P.I. de C.V., a subsidiary of FEMSA that holds all pharmacy business in Mexico (which we refer to as “CCF”). On November 13, 2019, FEMSA completed the acquisition of the remaining interest in Farmacias YZA. In 2018, FEMSA had 60% interest on Grupo Socofar (“Socofar”). As of December 13, 2019, FEMSA recognized the remaining 40% interest in Grupo Socofar (“Socofar”) following the exercise of a put right by the minority partner to sell its non - controlling interest in Socofar. (3) In 2018, the Company made a change in its reporting segment previously named FEMSA Comercio – Retail Division in which the activities not directly related with FEMSA Comercio – Retail Division where eliminated from the Proximity stores, including restaurant and discount retail units, before including in this operating segment. The reclassified operations from this segments is now included in “Others”. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Basis of Preparation | Note 2. Basis of Preparation 2.1 Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Company’s consolidated financial statements and notes were authorized for issuance by the Company’s Chief Executive Officer Eduardo Padilla Silva and the Chief Corporate Financial Officer Gerardo Estrada Attolini on February 21, 2020. These consolidated financial statements and notes were then approved by the Company’s Board of Directors on February 27, 2020 and by the Shareholder meeting on March 20, 2020. The accompanying consolidated financial statements were approved for issuance in the Company’s annual report on form 20-F by the Company’s Chief Executive Officer and Chief Corporate Financial Officer on April 2 8 20 2.2 Basis of measurement and presentation The consolidated financial statements have been prepared on historical cost basis, except for the following: • Derivative financial instruments. • Trust assets of post-employment and other long-term employee benefit plans. • Investments in equity instruments and some financial liabilities. The carrying values of assets and liabilities designated as hedged items in fair value hedges that would otherwise be carried at amortized cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationship. The financial statements of subsidiaries whose functional currency is the currency of a hyperinflationary economy are restated in terms of the measuring unit at the end of the reporting period. 2.2.1 Presentation of consolidated income statement The Company’s consolidated income statement classifies its related costs and expenses by function accordingly within the industry practices in which the Company operates. 2.2.2 Presentation of consolidated statements of cash flows The Company’s consolidated statement of cash flows is presented using the indirect method. 2.2.3 Convenience translation to U.S. dollars ($) The consolidated financial statements are stated in millions of Mexican pesos (“Ps.”) and rounded to the nearest million unless stated otherwise. However, solely for the convenience of the readers, the consolidated statement of financial position, as of December 31, 2019 the consolidated income statement, the consolidated statement of comprehensive income and consolidated statement of cash flows for the year ended December 31, 2019 were converted into U.S. dollars at closing exchange rate of 18.8600 Mexican pesos per U.S. dollar as published by the Federal Reserve Bank of New York as of December 31, 2019. This arithmetic conversion should not be construed as representation that amounts expressed in Mexican pesos may be converted into U.S. dollars at that or any other exchange rate. As explained in Note 2.1 above, as of April 24, 2020 the exchange rate was Ps. 24.8225 per U.S. dollar, a devaluation of 32% since December 31, 2019. 2.3 Critical accounting judgments and estimates For the application of the Company’s accounting policies, as described in Note 3, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if it affects only such period or in the current or subsequent periods of the revision if this affects both. Judgements In the process of applying the Company’s accounting policies, management has made the following judgements, the most significant effects of which are included on consolidated financial statements. 2.3.1 Key sources of estimation uncertainty The following are the assumptions and other sources of estimation uncertainty as of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the subsequent financial period. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes would be included in the assumptions when they occur. 2.3.1.1 Impairment of indefinite lived intangible assets, goodwill and depreciable long-lived assets Intangible assets with indefinite lives including goodwill are subject to impairment tests annually or whenever indicators of impairment are present. An impairment exists when the carrying value of an asset or cash generating unit (“CGU”) exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales agreements in arm’s length transactions of similar assets or observable market prices less incremental costs for disposing of the asset. In order to determine whether such assets are impaired, the Company calculates an estimation of the value-in-use value-in-use The Company assesses at each reporting date whether there is an indication that a long-lived asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset or CGU is considered impaired and is written down to its recoverable amount. In assessing value-in-use, pre-tax If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators. The key assumptions used to determine the recoverable amount for the Company’s CGUs, including a sensitivity analysis, are further explained in Notes 3.20 and 13. 2.3.1.2 Useful lives of property, plant and equipment and intangible assets with definite useful lives Property, plant and equipment, including returnable bottles which are expected to provide benefits over a period of more than one year, as well as intangible assets with definite useful lives are depreciated/amortized over their estimated useful lives. The Company bases its estimates on the experience of its technical personnel as well as its experience in the industry for similar assets, see Notes 3.15, 3.18, 11 and 13. 2.3.1.3 Post-employment and other non-current The Company regularly evaluates the reasonableness of the assumptions used in its post-employment and other long-term employee benefit computations. Information about such assumptions is described in Note 17. 2.3.1.4 Income taxes Deferred income tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities. The Company recognizes deferred tax assets for unused tax losses and other credits and regularly reviews them for recoverability, based on its judgment regarding the probability of the timing and level of future taxable income, the expected timing of the reversals of existing taxable temporary differences and available tax planning strategies, see Note 25. 2.3.1.5 Tax, labor and legal contingencies and provisions The Company is subject to various claims and contingencies related to tax, labor and legal proceedings as described in Note 26. Due to their nature, such legal proceedings involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management periodically assesses the probability of loss for such contingencies and accrues a provision and/or discloses the relevant circumstances, as appropriate. If the potential loss of any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a provision for the estimated loss. Management’s judgment must be exercised to determine the likelihood of such a loss and an estimate of the amount, due to the subjective nature of the loss. 2.3.1.6 Valuation of financial instruments The Company measures all derivative financial instruments at fair value. The fair values of derivative financial instruments are determined considering quoted prices in recognized markets. If such instruments are not traded, fair value is determined by applying techniques based upon technical models supported by sufficient reliable and verifiable data, recognized in the financial sector. The Company bases its forward price curves upon market price quotations. Management believes that the chosen valuation techniques and assumptions used are appropriate in determining the fair value of financial instruments, see Note 21. 2.3.1.7 Business combinations Businesses combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company to, and liabilities assumed by the Company from the former owners of the acquiree, the amount of any non-controlling At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognized and measured at their fair value, except that: • Deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12, Income Taxes Employee Benefits, • Liabilities or equity instruments related to share-based compensation arrangements of the acquiree or share-based compensation arrangements of the Company entered into to replace share-based compensation arrangements of the acquiree are measured in accordance with IFRS 2, Share-based Payment • Assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5, Non-current • Indemnifiable assets are recognized at the acquisition date on the same basis as the indemnified liability subject to any contractual limitations. For each acquisition, management’s judgment must be exercised to determine the fair value of the assets acquired, the liabilities assumed and any non-controlling 2.3.1.8 Equity accounted investees If the Company holds, directly or indirectly, 20 per cent or more of the voting power of the investee, it is presumed that it has significant influence, unless it can be clearly demonstrated that this is not the case. If the Company holds, directly or indirectly, less than 20 per cent of the voting power of the investee, it is presumed that the Company does not have significant influence, unless such influence can be clearly demonstrated. Decisions regarding the propriety of utilizing the equity method of accounting for a less than 20 per cent-owned corporate investee requires a careful evaluation of voting rights and their impact on the Company’s ability to exercise significant influence. Management considers the existence of the following circumstances which may indicate that the Company is in a position to exercise significant influence over a less than 20 per cent-owned corporate investee: • Representation on the board of directors or equivalent governing body of the investee; • Participation in policy-making processes, including participation in decisions about dividends or other distributions; • Material transactions between the Company and the investee; • Interchange of managerial personnel; or • Provision of essential technical information. Management also considers the existence and effect of potential voting rights that are currently exercisable or currently convertible when assessing whether the Company has significant influence. In addition, the Company evaluates certain indicators that provide evidence of significant influence, such as: • Whether the extent of the Company’s ownership is significant relative to other shareholders (i.e., a lack of concentration of other shareholders); • Whether the Company’s significant shareholders, fellow subsidiaries, or officers hold additional investment in the investee; and • Whether the Company is a part of significant investee’s board of director committees, such as the executive committee or the finance committee. An arrangement can be a joint arrangement even though not all of its parties have joint control of the arrangement. When the Company is a party to an arrangement it assesses whether the contractual arrangement gives all the parties, or a group of the parties, control of the arrangement collectively; joint control exists only when decisions about the relevant activities require the unanimous consent of the parties that control the arrangement collectively. Management needs to apply judgment when assessing whether all the parties, or a group of the parties, have joint control of an arrangement. When assessing joint control, management considers the following facts and circumstances such as: a) Whether all the parties or a group of the parties, control the arrangement, considering definition of joint control, as described in Note 3.14; and b) Whether decisions about the relevant activities require the unanimous consent of all the parties, or of a group of the parties. As mentioned in Note 4, until January 2017, Coca-Cola FEMSA accounted for its 51% investment in Coca-Cola FEMSA Philippines, Inc. (“CCFPI”) as a joint venture, this was based on the facts that Coca-Cola FEMSA and TCCC: (i) make all operating decisions jointly during the initial four-year period and (ii) potential voting rights to acquire the remaining 49% of CCFPI were not probable to be exercised in the foreseeable future and the fact that the call option remains “out of the money” as of December 31, 2017. In January 2017, the arrangement between Coca-Cola FEMSA and TCCC for joint control of CCFPI expired; therefore, Coca-Cola FEMSA started to consolidate the operations of CCFPI effective February 2017. On August 16, 2018, Coca-Cola FEMSA announced the exercise of the put option to sell its 51% stake in CCFPI back to TCCC. Therefore, its operations for the years ended December 31, 2018 and 2017 were classified as discontinued operations in the consolidated income statements. 2.3.1.9 Venezuela exchange rates and deconsolidation As is explained in Note 3.3 below, effective December 31, 2017, the Company deconsolidated its Coca-Cola FEMSA subsidiary’s operations in Venezuela due to the political and economic environment in that country and began accounting for its investments under the fair value method. Consequently, beginning January 1, 2018, all changes in the fair value of the investment, including foreign currency translation differences are recognized for Venezuela’s operations in “Other comprehensive income, net of tax.” 2.3.1.10 Leases Information on assumptions and estimates that have a significant risk of resulting in an adjustment to the carrying value of right-of-use • If the Company is reasonably certain to exercise an option to extend a lease agreement or not to exercise an option to terminate a lease agreement before its termination date, considering all the facts and circumstances that create an economic incentive for the Company to exercise, or not, such options, taking into account whether the lease option is enforceable, when the Company has the unilateral right to apply the option in question. • Determination of the non-cancellable 2.4 Application of recently issued accounting standards The Company has applied the following amendments to IFRS during 2019: 2.4.1 IFRS 16 Leases IFRS 16 supersedes International Accounting Standard (IAS) 17, Leases Determining whether an Arrangement contains a Lease Operating Leases-Incentives Evaluating the Substance of Transactions Involving the Legal Form of a Lease on-balance right-of-use Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have an impact for leases where the Group is the lessor. The Company applied the modified retrospective approach, under which, the cumulative effect of initial application is recognized in retained earnings as from January 1, 2019. The main changes on leases accounting policy is disclosed below. Definition of a lease Previously, the Company had determined at each contract inception whether an arrangement is or contains a lease under “IAS 17 – Leases” and “IFRIC 4 – Determining whether an arrangement contains a lease”. Under IFRS 16, the Company assesses whether a contract is or contains a lease based on the definition of a lease, as explained in Note 3. The Company elected to apply the transition practical expedient known as “Grandfather” which allows at the date of initial application to consider as a lease only those contracts previously identified as such in accordance with IAS 17 and IFRIC 4. Therefore, the definition of a lease under IFRS 16 applies only to those contracts entered into or modified on or after January 1, 2019. Accounting as a lessee As a lessee, the Company previously classified leases as either operating or finance leases based on its assessment of whether substantially all the rights and risk incidental to ownership of an asset are transferred from the lessor to the lessee. Under IFRS 16, the Company recognizes a right-of-use At transition date, the Company recognized a lease liability measured at the present value of the remaining lease payments during the non-cancellable Right-of-use The following practical expedients permitted by IFRS 16 were applied to lease contracts previously accounted for as operating leases under IAS 17 at the transition date only: • A single discount rate to a portfolio of leases with similar characteristics. • Not to recognize right-of-use low-value • Exclude initial direct costs from measuring the right-of-use • Use hindsight information when de termining the lease term if the contract contains options to extend or terminate the lease. As of January 1, 2019, the main effects in the relevant line items of FEMSA’s statement of financial position were as follows: Operating lease commitments as of December 31, 2018 Ps. 82,216 Discounted operating lease commitments 50,827 Less: Commitments relating to short-term leases and low-value 699 Add: Commitments relating to leases previously classified as finance leases 92 Lease liabilities and right-of-use Ps. 50,220 As of the date of the adoption, the weighted average incremental borrowing rate was 9.84%. 2.4.2 IFRIC 23 Uncertainty over income tax treatments The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 and does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following: a) Whether an entity considers uncertain tax treatments separately, b) The assumptions an entity makes about the examination of tax treatments by taxation authorities, c) How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, and d) How an entity considers changes in facts and circumstances. An entity must determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The interpretation is effective for annual reporting periods beginning on or after January 1, 2019 and has been adopted in preparing these Consolidated Financial Statements. The Company applied the modified retrospective approach and has performed a qualitative and quantitative evaluation of the impacts in the consolidated financial statements derived from IFRIC 23 adoption. Such evaluation includes the following activities described below: i) Review of the Company’s policies through which tax treatments are revised and accounted, this includes evidence from business units delivered to external advisors. ii) Analysis of the tax memorandums prepared by the external tax advisor which support the Company’s tax treatment over an uncertain tax position about a) how tax earnings (losses) are calculated, b) tax basis or losses are applied, c) tax credits are applied, and d) how tax rates in different jurisdictions are considered. iii) Documentation of the tax correspondence received in the Company’s and subsidiaries business units in order to analyze any recent resolution adopted from the tax authority regarding tax positions. iv) Analysis of the tax position report of the Company on a monthly basis. The Company concluded that there were no significant impacts on the consolidated financial statements from the adoption of the IFRIC 23. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant Accounting Policies | Note 3. Significant Accounting Policies 3.1 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); • Exposure, or rights, to variable returns from its involvement with the investee; and • The ability to use its power over the investee to affect its returns. When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangements with the other vote holders of the investee; • Rights arising from other contractual arrangements; and • The Company’s voting rights and potential voting rights. The Company re-assesses Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Company and to the non-controlling non-controlling When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it: • Derecognizes the assets (including goodwill) and liabilities of the subsidiary. • Derecognizes the carrying amount of any non-controlling • Derecognizes the cumulative translation differences recorded in equity. • Recognizes the fair value of the consideration received. • Recognizes the fair value of any investment retained. • Recognizes any surplus or deficit in profit or loss. • Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Company had directly disposed of the related assets or liabilities. 3.1.1 Acquisitions of non-controlling Acquisitions of non-controlling non-controlling paid-in 3.2 Business combinations Business combinations are accounted for using the acquisition method at the acquisition date, which is the date on which control is transferred to the Company. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling non-controlling Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling non-controlling Costs, other than those associated with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent considerations are recognized in consolidated net income. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items in which the accounting is incomplete and discloses that its allocation is preliminary in nature. Those provisional amounts are adjusted retrospectively during the measurement period (not greater than 12 months from the acquisition date), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. Sometimes obtaining control of an acquiree in which equity interest is held immediately before the acquisition date is considered as a business combination achieved in stages also referred to as a step acquisition. The Company remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if any, in profit or loss. Also, the changes in the value of equity interest in the acquiree recognized in other comprehensive income shall be recognized on the same basis as required if the Company had disposed directly of the previously held equity interest, see Note 3.14. The Company sometimes obtains control of an acquiree without transferring consideration. The acquisition method of accounting for a business combination, applies to those combinations as follows: (a) The acquiree repurchases a sufficient number of its own shares for the Company to obtain control. (b) Minority veto rights lapse that previously kept the Company from controlling an acquiree in which it held the majority voting rights. (c) The Company and the acquiree agree to combine their businesses by contract alone in which it transfers no consideration in exchange for control and no equity interest is held in the acquiree, either on the acquisition date or previously. 3.3 Foreign currencies, consolidation of foreign subsidiaries and accounting of equity accounted investees In preparing the financial statements of each individual subsidiary and accounting for equity accounted investees, transactions in currencies other than the individual entity’s functional currency (foreign currencies) are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary Exchange differences on monetary items are recognized in consolidated net income in the period in which they arise except for: • The variations in the net investment in foreign subsidiaries generated by exchange rate fluctuation which are included in other comprehensive income, which is recorded in equity as part of cumulative translation adjustment within the accumulated other comprehensive income; • Intercompany financing balances with foreign subsidiaries are considered as long-term investments when there is no plan to pay such financing in the foreseeable future. Monetary position and exchange rate fluctuation regarding this financing is recorded in the exchange differences on translation of foreign operations within the accumulated other comprehensive income (loss) item, which is recorded in equity; and • Exchange differences on transactions entered into in order to hedge certain foreign currency risks. Foreign exchange differences on monetary items are recognized in profit or loss. Their classification in the income statement depends on their nature. Differences arising from fluctuations related to operating activities are presented in the “ other expenses non-operating For incorporation into the Company’s consolidated financial statements, each foreign subsidiary, associates or joint venture’s individual financial statements are translated into Mexican pesos, as follows: • For entities operating in hyperinflationary economic environments, the inflation effects of the origin country are recognized pursuant IAS 29 Financial Reporting in Hyperinflationary Economies year-end • For entities operating in non-hyperinflationary year-end In addition, in relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed non-controlling Goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Foreign exchange differences arising are recognized in equity as part of the cumulative translation adjustment. The translation of assets and liabilities denominated in foreign currencies into Mexican pesos is for consolidation purposes and does not indicate that the Company could realize or settle the reported value of those assets and liabilities in Mexican pesos. Additionally, this does not indicate that the Company could return or distribute the reported Mexican peso value in equity to its shareholders. Exchange Rates of Local Currencies Translated to Mexican Pesos (1) Functional / Average Exchange Rate for Exchange Rate as of Country or Zone 2019 2018 2017 December 31, December 31, Guatemala Quetzal 2.50 2.56 2.57 2.45 2.54 Costa Rica Colon 0.03 0.03 0.03 0.03 0.03 Panama U.S. dollar 19.26 19.24 18.93 18.85 19.68 Colombia Colombian peso 0.01 0.01 0.01 0.01 0.01 Nicaragua Cordoba 0.58 0.62 0.63 0.56 0.61 Argentina Argentine peso 0.41 0.73 1.15 0.31 0.52 Venezuela a) Bolivar — — a ) — — Brazil Reais 4.89 5.29 5.94 4.68 5.08 Chile Chilean peso 0.03 0.03 0.03 0.03 0.03 Euro Zone Euro (€) 21.56 22.71 21.32 21.12 22.54 Peru Nuevo Sol 5.77 5.85 5.78 5.68 5.83 Ecuador U.S. dollar 19.26 19.24 18.93 18.85 19.68 Philippines Philippine peso — 0.37 0.38 — 0.37 Uruguay Uruguayan peso 0.55 0.63 0.66 0.51 0.61 (1) Exchange rates published by the Central Bank of each country where the Company operates. a) Venezuela Effective December 31, 2017, the Company determined that the deteriorating conditions in Venezuela had led Coca-Cola FEMSA to no longer meet the accounting criteria to consolidate its Venezuelan subsidiary. Such deteriorating conditions had significantly impacted Coca-Cola FEMSA’s ability to manage its capital structure, its capacity to purchase raw materials and limitations of portfolio dynamics. In addition, certain government controls over pricing, restriction over labor practices, acquisition of U.S. dollars and imports, has affected the normal course of business. Therefore, and due to the fact that its Venezuelan subsidiary will continue doing operations in Venezuela, as of December 31, 2017, Coca-Cola FEMSA changed the method of accounting for its investment in Venezuela from consolidation to fair value measured using a Level 3 concept. As a result of the deconsolidation, Coca-Cola FEMSA also recorded loss within other expenses for an amount of Ps. 28,176 for the year ended December 31, 2017. Such effect includes the reclassification of Ps. 26,123 previously recorded as exchange differences on translation of foreign subsidiaries and equity accounted investees in equity, impairment equal to Ps. 745 and Ps. 1,098 mainly from distribution rights and property, plant and equipment, respectively, and Ps. 210 for the remeasurement at fair-value of Venezuelan investment. Prior to deconsolidation, during 2017, Coca-Cola FEMSA’s Venezuelan operations contributed Ps. 4,005 to net sales, and losses of Ps. 2,223 to net income. Its total assets were Ps. 4,138 and the total liabilities were Ps. 2,889. Beginning on January 1, 2018, Coca-Cola FEMSA recognizes its investment in Venezuela under the fair value through OCI method following the IFRS 9 Financial Instruments Exchange rate Until December 31, 2017, Coca-Cola FEMSA’s recognition of its Venezuelan operations involved a two-step Step-one.- non-bolivar Step-two.- In December 2017, Coca-Cola FEMSA translated the Venezuela entity figures at an exchange rate of 22,793 bolivars per U.S. dollar, as such exchange rate better represents the economic conditions in Venezuela. Coca-Cola FEMSA considers that this exchange rate provides more useful and relevant information with respect to Venezuela’s financial position, financial performance and cash flows. On January 30, 2018, a new auction of the DICOM celebrated by Venezuela’s government resulted on an estimated exchange rate of 25,000 bolivar per U.S. dollar. 3.4 Recognition of the effects of inflation in countries with hyperinflationary economic environments The Company recognizes the effects of inflation on the financial information of its subsidiaries that operates in hyperinflationary economic environments (when cumulative inflation of the three preceding years is approaching, or exceeds, 100% or more in addition to other qualitative factors), which consists of: • Using inflation factors to restate non-monetary • Applying the appropriate inflation factors to restate capital stock, additional paid-in • Including the monetary position gain or loss in consolidated net income. The Company restates the financial information of subsidiaries that operate in hyperinflationary economic environment using the consumer price index of each country (“CPI”). As disclosed in Note 3.3, Coca-Cola FEMSA deconsolidated its Venezuelan operations. Consequently, the Venezuelan investment is no longer consolidated by Coca-Cola FEMSA, however, Coca-Cola FEMSA’s Venezuelan subsidiary will continue operating. As of December 31, 2019, 2018, and 2017, the operations of the Company are classified as follows: Country Cumulative Type of Economy Cumulative Type of Economy Cumulative Type of Economy Mexico 13.2 % Non-hyperinflationary 15.7 % Non-hyperinflationary 12.7 % Non-hyperinflationary Guatemala 11.8 % Non-hyperinflationary 12.2 % Non-hyperinflationary 13.5 % Non-hyperinflationary Costa Rica 5.8 % Non-hyperinflationary 5.7 % Non-hyperinflationary 2.5 % Non-hyperinflationary Panama 0.5 % Non-hyperinflationary 2.1 % Non-hyperinflationary 2.3 % Non-hyperinflationary Colombia 11.0 % Non-hyperinflationary 13.4 % Non-hyperinflationary 17.5 % Non-hyperinflationary Nicaragua 15.6 % Non-hyperinflationary 13.1 % Non-hyperinflationary 12.3 % Non-hyperinflationary Argentina (a) 179.4 % Hyperinflationary 158.4 % Hyperinflationary 101.5 % Hyperinflationary Venezuela — — — — 30,690.0 % Hyperinflationary Brazil 11.1 % Non-hyperinflationary 25.0 % Non-hyperinflationary 21.1 % Non-hyperinflationary Philippines — — 11.9 % Non-hyperinflationary 7.5 % Non-hyperinflationary Euro Zone 3.6 % Non-hyperinflationary 2.7 % Non-hyperinflationary 2.7 % Non-hyperinflationary Chile 8.3 % Non-hyperinflationary 9.7 % Non-hyperinflationary 9.7 % Non-hyperinflationary Peru 5.2 % Non-hyperinflationary 9.3 % Non-hyperinflationary 9.3 % Non-hyperinflationary Ecuador 0.3 % Non-hyperinflationary 30.3 % Non-hyperinflationary 30.3 % Non-hyperinflationary Uruguay 22.0 % Non-hyperinflationary 25.3 % Non-hyperinflationary — – a) Argentina Beginning on July 1, 2018, Argentina was classified as hyperinflationary economy based on several consumer price indexes of the country. Therefore, the financial statements of the subsidiary were remeasured in its functional currency (Argentine peso) but they were not restated in its presentation currency (Mexican pesos) as it is not stated as a hyperinflationary economy. In addition, the Company’s financial statements for prior periods were not restated for comparative purposes. For being considered hyperinflationary, the financial information for our Argentine subsidiary has been adjusted to recognize the inflationary effects since January 1, 2018 through: • Using inflation factors to restate non-monetary • Recognize the monetary position gain or loss in consolidated net income. The Federacion Argentina de Consejos Profesionales de Ciencias Económicas (“FACPCE”) approved on September 29, 2018 and published on October 5, 2018, a resolution which defines, among other things, that the index price to determine the restatement coefficient (Based on a series that applies the NCPI from January with the IPIM until this date, and computing November and December 2015 using the CPI – of Ciudad del Gran Buenos Aires (“CGBA”) variation). 3.5 Cash and cash equivalents and restricted cash Cash is comprised of deposits in bank accounts which generate an interest on the available balance. Cash equivalents are mainly represented by short-term bank deposits and fixed-income investments (overnight), both with maturities of three months or less and their carrying values approximate fair value. The Company also maintains restricted cash which is insured as collateral to meet certain contractual obligations. Restricted cash is presented within other current financial assets given that, by their nature, the restrictions are short-term. 3.6 Investments The investments include debt securities and bank deposits with a maturity of more than three months as of the acquisition date. Management determines the appropriate classification of investments at the time of purchase and evaluates that classification at the date of each statement of financial position, see Notes 6 and 14. 3.7 Financial assets Financial assets are classified within the following business models depending on management’s objective: (i) “held to maturity to recover cash flows”, (ii) “held to maturity and to sell financial assets” and (iii) “others or held for trading”, including derivatives assigned in hedging instruments with efficient hedge, as appropriate. The classification depends on the nature and purpose of holding the financial assets and is determined at the time of initial recognition. The Company performs a portfolio – level assessment of the business model in which a financial asset is managed to accomplish with Company’s risk management purposes. The information that is considered within the evaluation includes: • The policies and objectives of the Company in relation to the portfolio and the practical implementation of policies; • Performance and evaluation of the Company’s portfolio including accounts receivable; • Risks that affect the performance of the business model and how those risks are managed; • Any compensation related to the performance of the portfolio; and • Frequency, volume and timing of sales of financial assets in previous periods together with the reasons for said sales and expectations regarding future sales activities. The Company’s financial assets include cash, cash equivalents and restricted cash, investments with maturities of more than three months, loans and accounts receivable, derivative financial instruments and other financial assets. For the initial recognition of a financial asset, the Company measures it at fair value plus the transaction costs that are directly attributable to the purchase thereof, in the event that said asset is not measured at fair value through profit or loss. Accounts receivable that do not have a significant financing component are measured and recognized at the transaction price when they are generated. The rest of the financial assets are recognized only when the Company is part of the contractual provisions of the instrument. The fair value of an asset is measured using assumptions that would be used by market participants when valuing the asset, assuming that the transaction is orderly and takes place in the principal or the most advantageous market for the asset. During the initial recognition, the financial asset is also classified as measured at: amortized cost, fair value with changes in other comprehensive income – debt or equity investments – and fair value through profit or loss. The classification depends on the objective by which the financial asset is acquired. Financial assets are not reclassified after their initial recognition unless the Company changes the business model to manage the financial assets; in which case, all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. 3.7.1 Financial assets at amortized cost A financial asset is measured at amortized cost if it meets the following two conditions and is not designated as fair value through profit and loss (“FVTPL”): • Its managed within a business model whose objective is to maintain financial assets to recover the contractual cash flows; and • The contractual terms are only payments at specified dates of the principal and interest on the amount of the outstanding principal. The amortized cost of a financial asset is the amount of the initial recognition less the principal payments, plus or less the accumulated amortization using the effective interest rate method of any difference between the initial amount and the amount as of the maturity and, for financial assets, adjusted for loss of impairment. The financial product, exchange fluctuation and impairment are recognized in results. Any profit or loss is also recognized in the same way in results. 3.7.2 Effective interest rate method (“ERR”) The effective interest rate method consists in calculating the amortized cost of loans and accounts receivables and other financial assets (measured at amortized cost) and allocating interest income/expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. 3.7.3 Financial assets at fair value with changes in other comprehensive income (“FVOCI”) A financial asset is measured in FVOCI if it meets the following two conditions and is not designated as FVTPL: • Its managed within a business model whose objective is achieved through the collection of contractual cash flows and the sale of financial assets; and • The contractual terms are only payments of the principal and interest on the amount of the outstanding principal. These assets are subsequently measured at fair value. The financial product calculated using the internal rate of return (“IRR”), the exchange fluctuation and the impairment are recognized in profit and loss. Other gains and losses, related to changes in fair value, are recognized in OCI. In case of disposals, the accumulated gains and losses in OCI are reclassified to profit and loss. In the initial recognition of an equity instrument that is not held for trading, under the “other” business model, the Company may irrevocably choose to present changes in the fair value of the investment in OCI. This choice has to be made for each investment. Equity instruments are subsequently measured at fair value. Dividends are recognized as profit in results unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses, related to changes in fair value, are recognized in OCI and are considered items that will not be reclassified to consolidated net income in subsequent periods. 3.7.4 Financial assets at fair value through profit or loss Financial assets designated as fair value through profit and loss include financial assets held for trading and financial assets designated at initial recognition as fair value through profit and loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the short term. Derivatives, including embedded derivatives are also classified as held for trading unless they are allocated as effective hedging instruments. Financial assets at fair value through profit or loss are recorded in the balance sheet with changes in fair value presented as financial costs (net negative changes in fair value) or financial products (net positive changes in fair value) in profit or loss, including any dividend income. 3.7.5 Evaluation that contractual cash flows are solely principal and interest payments (“SPPI”) In order to classify a financial asset within one of the three different categories, the Company determines whether the contractual cash flows of the asset are only principal and interest payments. The Company considers the contractual terms of the financial instrument and whether the financial asset contains any contractual term that could change the timing or amount of the contractual cash flows in such a way that it would not meet the SPPI criteria. In making this evaluation, the Company considers the following: • Contingent events that would change the amount or timing of cash flows; • Terms that can adjust the contractual coupon rate, including variable interest rate characteristics; • Payment and extension features; and • Characteristics that limit the Company’s right to obtain cash flows from certain assets. A prepaid feature is consistent with the characteristics of only principal and interest payments if the prepayment amount substantially represents the amounts of the principal and interest pending payment, which could include reasonable compensation for early termination of the contract. Additionally, a financial asset acquired or originated with a premium or discount to its contractual amount and in the initial recognition the fair value of the prepaid characteristic is insignificant, the asset will pass the test of the contractual characteristics of cash flow if the amount of prepaid represents substantially the contractual amount and accrued interest (but not paid); which may include additional compensation for the early termination of the contract. 3.7.6 Impairment of financial assets The Company recognizes impairment due to expected credit loss (“ECL”) in: • Financial assets measured at amortized cost; • Debt investments measured at FVOCI; and • Other contractual assets. Impairment losses on accounts receivable, contractual assets and leasing receivables are measured at the amount that equals the lifetime expected loss of credit, whether or not it has a significant component. The Company applies the criteria to all accounts receivable, contractual assets and leasing credits, together or separately. The Company measures impairment losses at an amount that equals to lifetime ECL, except for the following: • Debt instruments classified as low credit risk; and • Other debt instruments in which the credit risk (irrecoverability risk over the financial instrument expected life) has not increased significantly since the initial recognition. In determining whether the credit risk of a financial asset has increased significantly since initial recognition and estimating the ECL, the Company considers reasonable and sustainable information that is relevant and available without undue cost or effort. It includes qualitative and quantitative analysis based on Company’s experience and credit assessment. The impairment loss is a weighted estimate of the probability of expected loss. The amount of impairment loss is measured as the present value of any lack of liquidity (the difference between the contractual cash flows that correspond to the Company and the cash flows that management expects to receive). The expected credit loss is discounted at the original effective interest rate of the financial asset. The Company annually evaluates if there was evidence of an impairment. Some observable data that financial assets were impaired includes: • Significant financial difficulty of the issuer or the borrower; • A breach of contract, such as default or past due event; • Granting concessions due to the borrower’s financial difficulties in which Company would not consider in other circumstances. • It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; • The disappearance of an active market for a financial instrument because of financial difficulties; or • Information indicating that there was a measurable decrease in the expected cash flows of a group of financial assets. For a capital instrument, evidence of impairment includes a significant decrease in its fair value even lower than its carrying value. The impairment loss on financial assets measured at amortized cost is reduced from the book value and for financial assets measured at FVOCI, the impairment loss is recognized as profit or loss within OCI. 3.7.7 Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: • The rights to receive cash flows from the financial asset have expired; or • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. 3.7.8 Offsetting of financial instruments Financial assets are required to be offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Company: • Currently has an enforceable legal right to offset the recognized amounts; and • Intends to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. 3.8 Other financial assets Other financial assets include long term accounts receivable, derivative financial instruments and recoverable contingencies acquired from business combinations. Long term accounts receivable with a stated term are measured at amortized cost using the effective interest method, less any impairment. 3.9 Derivative financial instruments The Company is exposed to different risks related to cash flows, liquidity, market and third-party credit. As a result, the Company contracts different derivative financial instruments in order to reduce its exposure to the risk of exchange rate fluctuations between the Mexican peso and other currencies, and interest rate fluctuations associated with its borrowings denominated in foreign currencies and the exposure to the risk of fluctuation in the costs of certain raw materials. The Company values and records all derivative financial instruments and hedging activities, in the consolidated statement of financial position as either an asset or liability measured at FVTPL or FVOCI, considering quoted prices in recognized markets. If such instruments are not traded in a formal market, fair value is determined by applying techniques based upon technical models supported by sufficient, reliable and verifiable market data. Changes in the fair value of derivative financial instruments are recorded each period in current earnings otherwise as a component of cumulative other comprehensive income based on the item being hedged and the effectiveness of the hedge. 3.9.1 Hedge accounting The Company designates certain hedging instruments, which include derivatives to cover foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. 3.9.2 Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading valuation of the effective portion of derivative financial instruments. The gain or loss relating to the ineffective portion is recognized immediately in consolidated net income and is included in the market value (gain) loss on financial instruments line item within the consolidated income statements. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to consolidated net income in the periods when the hedged item is recognized in consolidated net income, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial non-financial non-financial non-financial Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no l |
Mergers, Acquisitions and Dispo
Mergers, Acquisitions and Disposals | 12 Months Ended |
Dec. 31, 2019 | |
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Mergers, Acquisitions and Disposals | Note 4. Mergers, Acquisitions and Disposals 4.1 Mergers and acquisitions The Company has consummated certain mergers and acquisitions during 2019, 2018 and 2017; which were recorded using the acquisition method of accounting. The results of the acquired operations have been included in the consolidated financial statements since the date on which the Company obtained control of the business, as disclosed below. Therefore, the consolidated income statements and the consolidated statements of financial position in the year of such acquisitions are not comparable with previous periods. The consolidated statements of cash flows for the years ended December 31, 2019, 2018 and 2017 show the cash outflow and inflow for the merged and acquired operations net of the cash acquired related to those mergers and acquisitions. 4.1.1 Acquisitions of Coca-Cola FEMSA Coca-Cola FEMSA finalized the allocation of the purchase price to the fair values of the identifiable assets acquired and liabilities assumed for acquisitions completed during the prior year, with no significant variations to the preliminary allocation to the fair value of the net assets acquired, which were included in its audited annual consolidated financial statements as at and for the year ended December 31, 2018, primarily related to the following: (1) acquisition of 100% of the Alimentos y Bebidas del Atlántico, S.A. (“ABASA”) in Guatemala, included in the Company results since May, 2018; (2) acquisition of 100% of Comercializadora y Distribuidora Los Volcanes, S.A. (“Los Volcanes”) in Guatemala included in the Company’ consolidated results beginning on May, 2018; and (3) acquisition of 100% of Montevideo Refrescos, S.R.L. (“MONRESA”) in Uruguay which is included in the consolidated financial results beginning on July 2018. The final allocation on the purchase prices to the fair value of the net assets acquired is as follows: 2018 Total current assets (including cash acquired of Ps. 860) Ps. 1,864 Total non-current 4,031 Distribution rights 1,715 Total assets 7,610 Total liabilities (3,691 ) Net assets acquired 3,649 Goodwill (1) 2,903 Total consideration transferred 6,552 Cash acquired (860 ) Net cash paid Ps. 5,692 (1) As a result of the purchase price allocation which was finalized in 2019, additional fair value adjustments from those recognized in 2018 have been recognized as follows: decrease in total non-current Coca-Cola FEMSA expects to recover the registered amounts recorded as goodwill through the synergies related to the available production capacity. The income statement information of these acquisitions for the period from the acquisition date through to December 31, 2018 is as follows: Income Statement 2018 Total revenues Ps. 4,628 Income before income taxes 496 Net income Ps. 413 4.1.2 Other acquisitions During 2019, the Company completed acquisitions which in the aggregate amounted to Ps. 7,671. These acquisitions, among other smaller acquisitions, were primarily related to the following: 1) as of April 30, 2019, the Company completed through FEMSA Comercio S.A. de C.V., the acquisition of 100% of the Ecuadorian company Corporación Grupo FYBECA S.A. (“GPF”), pharmaceutic leader in Quito, Ecuador, mainly under the brands of Fybeca and SanaSana, which is included in the Company’s results since May, 2019; and (2) in December 2019, the Company completed through one of its logistic’s subsidiaries, the acquisition of 100% of Brazilian company AGV Group (“AGV”) founded in 1998, leader in integral logistic services in Brazil which operates a value-added warehousing and distribution platform of warehousing space located across 15 states in Brazil and over 2,600 employees. The Company is in the process of finalizing the allocation of the purchase price to the fair values of the identifiable assets acquired and liabilities assumed. This process is expected to be completed for each acquisition within 12 months of the acquisition date. The preliminary allocation on the aggregated purchase prices to the fair value of the net assets acquired is as follows: 2019 Total current assets (including cash acquired of Ps. 389) Ps. 4,085 Total non-current 5,250 Total assets 9,335 Total liabilities 8,153 Net assets acquired 1,182 Goodwill 6,542 Non-controlling (53 ) Total consideration transferred 7,671 Amount to be paid (147 ) Cash acquired (389 ) Net cash paid 7,135 During 2019, FEMSA Comercio has been allocated goodwill in the acquisitions in FEMSA Comercio- Health Division in Ecuador and Colombia. FEMSA Comercio expects to recover the amount recorded through synergies related to the adoption of the Company’s economic current value proposition, the ability to apply the successful operational processes and expansion planning designed for each unit. The income statement information of these acquisitions for the period from the acquisition date through to December 31, 2019 is as follows: Income Statement 2019 Total revenues Ps. 8,594 Income before income taxes 37 Net loss Ps. 1 Unaudited Pro Forma Financial Data The following unaudited consolidated pro forma financial data represent the Company’s historical financial statements, adjusted to give effect to (i) the acquisitions of GPF and AGV; and (ii) certain accounting adjustments mainly related to the pro forma depreciation of fixed assets of the acquired company. Unaudited pro forma financial data for the acquisitions, is as follow: Unaudited pro forma financial December 31, 2019 Total revenues Ps. 516,496 Income before income taxes and share of the profit of equity accounted investees 33,823 Net income 29,516 Basic net controlling interest income per share Series “B” Ps. 1.11 Basic net controlling interest income per share Series “D” 1.38 On May 22, 2018, the Company acquired an additional 10% its participation in Café del Pacífico, S.A.P.I. de C.V. (“Caffenio”), a Mexican company founded in 1941 whose main activities includes the production of coffee and beverages formulas, commercialization of beverages and whole foods and trading of commercial contracts, for an amount of Ps. 370 and reaching a controlling interest of 50% of ownership, through an agreement with other shareholders assuming control of the subsidiary. The following unaudited consolidated pro forma financial data represent the Company’s historical financial statements, adjusted to give effect to (i) the acquisitions of Coca-Cola FEMSA and Caffenio as if these acquisitions has occurred on January 1, 2018; and (ii) certain accounting adjustments mainly related to the pro forma depreciation of fixed assets of the acquired company. Unaudited pro forma financial data for the acquisitions, is as follow: Unaudited pro forma financial Total revenues Ps. 473,420 Income before income taxes and share of the profit of equity accounted investees 34,266 Net income 33,521 Basic net controlling interest income per share Series “B” Ps. 1.22 Basic net controlling interest income per share Series “D” 1.52 The following unaudited consolidated pro forma financial data represent the Company’s historical financial statements, adjusted to give effect to (i) the acquisition of Coca-Cola FEMSA Philippines as if this acquisition has occurred on January 1, 2017; and (ii) certain accounting adjustments mainly related to the pro forma depreciation of fixed assets of the acquired company. Unaudited pro forma financial data for the acquisition included, is as follow: Unaudited pro forma financial Total revenues Ps. 462,112 Income before income taxes and share of the profit of equity accounted investees 39,917 Net income 37,311 Basic net controlling interest income per share Series “B” Ps. 2.12 Basic net controlling interest income per share Series “D” 2.65 4.2. Disposals 4.2.1 Discontinued operations (Coca-Cola On August 16, 2018, Coca-Cola FEMSA announced its decision to exercise the put option to sell its 51% stake in CCFPI to The Coca-Cola Company. Such decision was approved by the Company’s board on August 6, 2018. Consequently beginning August 31, 2018 CCFPI had been classified as an asset held for sale and its operations as a discontinued operation in the financial statements for December 31, 2017 and 2018. Previously CCFPI represented the Asia division and was considered an independent segment until December 31, 2017. Coca-Cola FEMSA Philippines operations was sold on December 13, 2018. In addition, the income statement as of December 2017 was restated. Income statement of discontinued operations For the years ended December 31, 2018 and 2017, the income statement of discontinued operations was as follows: 2018 2017 Total revenues Ps. 24,167 Ps. 20,524 Cost of goods sold 17,360 12,346 Gross profit 6,807 8,178 Operating expenses 5,750 6,865 Other expenses, net 7 134 Financial income, net (185 ) (64 ) Foreign exchange gain, net (73 ) (22 ) Income before income taxes 1,308 1,265 Income taxes 466 370 Net income for discontinued operations Ps. 842 Ps. 895 Less: non-controlling 391 469 Controlling interest in discontinued operations Ps. 451 Ps . 426 Accumulated currency translation effect for the subsidiary disposal (811 ) 2,830 Gain from sale 3,335 — Net income for subsidiary disposal – controlling interest 2,975 3,256 Net income from discontinued operations Ps. 3,366 Ps. 3,725 4.2.2 Heineken During 2017, the Company sold a portion of its investment in Heineken Group, representing 5.2% of economic interest for Ps. 53,051 in an all cash transaction. With this transaction the Company took advantage of a Repatriation of Capital Decree issued by the Mexican government which was valid from January 19 until October 19, 2017; through this decree, a fiscal benefit was attributed to the Company due to repatriated resources obtained from the sale of shares. The Company recognized a gain of Ps. 29,989, as a result of the sales of shares within other income, which is the difference between the fair value of the consideration received and the book value of the net assets disposed. The gain is net of transaction related costs of Ps. 160 and includes reclassification from other comprehensive income of exchange differences on translation which amount to Ps. 6,632. Also, the Company reclassified from other comprehensive income to consolidated net income a total loss of Ps. 2,431, relating to the Company’s share of hedging reserve and translation reserve of Heineken investment attributable to the portion of shares sold. None of the Company’s other disposals was individually significant, see Note 20. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
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Cash and Cash Equivalents | Note 5. Cash and Cash Equivalents Includes cash on hand and in bank deposits and cash equivalents, which are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value, with a maturity date of three months or less at their acquisition date. Cash and cash equivalents at the end of the reporting period as shown in the consolidated statements of financial position and cash flows is comprised of the following: December 31, December 31, Cash and bank balances Ps. 31,905 Ps. 31,768 Cash equivalents (see Note 3.5) 33,657 30,279 Ps. 65,562 Ps. 62,047 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
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Investments | Note 6. Investments As of December 31, 2019 and 2018, current investments with maturity greater than three-month period but less than twelve-month period are classified at amortized cost, and their carrying value is similar to their fair value. The following is a detail of such investments: Fixed rate Corporate debt securities 2019 2018 Acquisition cost Ps. 1,048 Ps. 906 Accrued interest 4 4 Total fixed rate 1,052 910 Variable rate Government debt securities Acquisition cost — 8,660 Accrued interest — 28 Corporate debt securities Acquisition cost 11,307 21,259 Accrued interest 7 67 Total variable rate 11,314 30,014 Total investments Ps. 12,366 Ps. 30,924 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
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Trade Accounts Receivable, Net | Note 7. Trade Accounts Receivable, Net December 31, December 31, Trade accounts receivables Ps. 26,942 Ps. 25,615 The Coca-Cola Company (see Note 15) 813 1,173 Loans to employees 115 108 Heineken Group (see Note 15) 749 768 Others 3,203 2,614 Allowance for expected credit losses (2,189 ) (2,114 ) Ps. 29,633 Ps. 28,164 7.1 Trade receivables Trade receivables representing rights arising from sales and loans to employees or any other similar concept, are presented net of discounts and the allowance for expected credit losses. Coca-Cola FEMSA has accounts receivable from The Coca-Cola Company arising from the latter’s participation in advertising and promotional programs.. Because less than 9% of the trade accounts receivables is unrecoverable, the Company does not have customers classified as “high risk”, which would be eligible to have special management conditions for the credit risk. As of December 31, 2019, the main customers of the Company represent, in aggregate form, the expected loss on 14%. The allowance is calculated under an expected loss model that recognizes the impairment losses throughout the life of the contract. For this particular case, because the accounts receivable is generally less than one year, the Company defined an impairment estimation model under a simplified approach of expected loss through a parametric model. The parameters used within the model are: • Breach probability; • Losses severity; • Financing rate; • Special recovery rate; and • Breach exposure. Aging of accounts receivable (days current or outstanding) December 31, December 31, Current Ps. 24,696 Ps. 22,789 0-30 3,278 4,081 31-60 1,345 869 61-90 668 598 91-120 244 241 120+ days 1,591 1,700 Total Ps. 31,822 Ps. 30,278 7.2 Changes in the allowance for expected credit losses 2019 2018 2017 Balance at the beginning of the period Ps. 2,114 Ps. 1,375 Ps. 1,193 Effect of adoption of IFRS 9 — 468 — Adjusted balance at the beginning of the period 2,114 1,843 1,193 Allowance for the period 709 348 530 Additions (write-offs) of uncollectible accounts (1) (269 ) (402 ) (400 ) Addition from business combinations — 1 86 Effects of changes in foreign exchange rates (365 ) 324 (32 ) Effect of Venezuela deconsolidation — — (2 ) Balance at the end of the period Ps. 2,189 Ps. 2,114 Ps. 1,375 (1) In 2018, includes the effect of Coca-Cola In determining the recoverability of trade receivables, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited due to the customer base being large and disperse. 7.3 Receivable from The Coca-Cola Company The Coca-Cola Company participates in certain advertising and promotional programs as well as in the Coca-Cola FEMSA’s refrigeration equipment and returnable bottles investment program. Contributions received by Coca-Cola FEMSA for advertising and promotional incentives are recognized as a reduction in selling expenses and contributions received for the refrigeration equipment and returnable bottles investment program are recorded as a reduction in the carrying amount of refrigeration equipment and returnable bottles items. For the years ended December 31, 2019, 2018 and 2017 contributions due were Ps. 2,274, Ps. 3,542 and Ps. 3,436, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
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Inventories | Note 8. Inventories December 31, December 31, Finished products Ps. 32,853 Ps. 27,145 Raw materials 5,331 5,363 Spare parts 1,198 1,362 Work in process 113 225 Inventories in transit 1,528 1,591 Ps. 41,023 Ps. 35,686 For the years ended 2019, 2018 and 2017, the Company recognized write-downs of its inventories for Ps. 2,992, Ps. 2,006 and Ps. 308 to net realizable value, respectively. For the years ended 2019, 2018 and 2017, changes in inventories are comprised as follows and included in the consolidated income statement under the cost of goods sold caption: 2019 2018 2017 Changes in inventories of finished goods and work in progress Ps. 221,540 Ps. 204,688 Ps. 188,022 Raw materials and consumables used 84,502 79,825 85,568 Total Ps. 306,042 Ps. 284,513 Ps. 273,590 |
Other Current Assets and Other
Other Current Assets and Other Current Financial Assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other Current Assets and Other Current Financial Assets | Note 9. Other Current Assets and Other Current Financial Assets 9.1 Other current assets December 31, December 31, Prepaid expenses Ps. 2,201 Ps. 2,714 Recoverable taxes 268 316 Agreements with customers 294 146 Licenses 575 146 Assets classified as held for sale 197 49 Other 553 49 Ps. 4,088 Ps. 3,420 As of December 31, 2019 and 2018, Company’s prepaid expenses are as follows: December 31, December 31, Advances for inventories Ps. 1,359 Ps. 1,500 Advertising and promotional expenses paid in advance 89 510 Advances to service suppliers 60 236 Prepaid leases 239 211 Prepaid insurance 129 117 Others 325 140 Ps. 2,201 Ps. 2,714 For the years ended December 31, 2019, 2018 and 2017, Company’s advertising and promotional expenses amounted to Ps. 8,840, Ps. 7,695 and Ps. 6,148, respectively. 9.2 Other current financial assets December 31, December 31, Restricted cash Ps. 92 Ps. 101 Derivative financial instruments (see Note 21) 1,008 735 Note receivables (1) 46 42 Ps. 1,146 Ps. 878 (1) The carrying value approximates its fair value as of December 31, 2019 and 2018. The Company has pledged part of its cash in order to fulfill the collateral requirements for the accounts payable in different currencies. As of December 31, 2019 and 2018, the carrying of restricted cash pledged were: December 31, December 31, Brazilian reais Ps. 89 Ps. 98 Chilean pesos 3 3 Ps. 92 Ps. 101 The restricted cash in Brazil consist in current deposits as requirements to guarantee the notes payable. |
Equity Accounted Investees
Equity Accounted Investees | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Equity Accounted Investees | Note 10. Equity Accounted Investees As of December 31, 2019 and 2018, Company’s equity accounted investees are as follows: Ownership Percentage Carrying Value Investee Principal Place of Incorporation December 31, 2019 December 31, December 31, December 31, Heineken (1) (2) Beverages The Netherlands 14.8 % 14.8 % Ps. 83,789 Ps. 83,461 Coca-Cola FEMSA: Joint ventures: Compañía Panameña de Bebidas, S.A.P.I. de C.V. Beverages Mexico 50.0 % 50.0 % 486 1,550 Dispensadoras de Café, S.A.P.I. de C.V. Services Mexico 50.0 % 50.0 % 172 162 Fountain Agua Mineral, L.T.D.A. Beverages Brazil 50.0 % 50.0 % 851 826 Associates Promotora Industrial Azucarera, S.A. Sugar Mexico 36.4 % 36.4 % 3,274 3,120 Industria Envasadora de Querétaro, S.A. Canned Mexico 26.5 % 26.5 % 194 179 Industria Mexicana de Reciclaje, S.A. de C.V. (“IMER”) Recycling Mexico 35.0 % 35.0 % 121 129 Jugos del Valle, S.A.P.I. de C.V. Beverages Mexico 28.8 % 26.3 % 1,929 1,571 Leao Alimentos e Bebidas, L.T.D.A. Beverages Brazil 24.7 % 24.7 % 1,931 2,084 Other investments in Coca-Cola FEMSA’s companies Various Various Various Various 793 897 FEMSA Comercio: Raizen Conveniências (4) Proximity Brazil 50.0 % — 3,410 — Other investments (1) (3) Various Various Various Various 520 336 Ps. 97,470 Ps. 94,315 (1) Associate. (2) As of December 31, 2019 and 2018 comprised of 8.63% of Heineken, N.V. and 12.26% of Heineken Holding, N.V., which represents an economic interest of 14.76% in Heineken Group. The Company has significant influence, mainly, due to the fact that it participates in the Board of Directors of Heineken Holding, N.V. and the Supervisory Board of Heineken N.V.; and for the material transactions between the Company and Heineken Group. (3) Joint ventures. (4) On November 1, 2019, FEMSA Comercio – Proximity Division closed the acquisition of a 50% interest of Raízen Conveniências. The consideration amounted to R$ 357 million paid in cash and R$367 through notes payable, and such amounts include FEMSA Comercio’s prorrata portion of the investment requirements for the initial period of operations of the joint venture. Raízen is a company formed in 2010 from Cosan and Royal Dutch Shell in Brazil. The Joint Venture between FEMSA Comercio – Proximity Division and Raízen is limited to the convenience and proximity store business and excludes any other Raízen operations. During 2019, Coca-Cola FEMSA received dividends from Promotora Mexicana de Embotelladores, S.A. de C.V. for the amount of Ps. 1 and during 2018, Coca-Cola FEMSA received dividends from Industria Envasadora de Querétaro, S.A. de C.V. for the amount of Ps. 8. During 2019 Coca-Cola FEMSA made capital contributions to Jugos del Valle, S.A.P.I. de C.V. and Promotora Industrial Azucarera, S.A. de C.V. in the amounts of Ps. 204 and Ps. 111, respectively, there were no changes in the ownership percentage of Promotora Industrial Azucarera, S.A. de C.V. as a result of capital contributions made by the other shareholders. During 2018 the Company made capital contributions to Jugos del Valle, S.A.P.I. de C.V. and Promotora Industrial Azucarera, S.A. de C.V. in the amounts of Ps. 73 and Ps. 146, respectively, there were no changes in the ownership percentage as a result of capital contributions made by the other shareholders. During 2018, there was a spin-off As of December 31, 2019 and On April 30, 2010, the Company acquired an economic interest of 20% of Heineken Group. Heineken’s main activities are the production, distribution and marketing of beer worldwide. On September 18, 2017, the Company concluded the sale of a portion of its investment, representing 5.2% combined economic interest, consisting of 22,485,000 Heineken N.V. shares and 7,700,000 Heineken Holding N.V. shares at the price of €. 84.50 and €. 78.00 per share, respectively, see Note 4.2. The Company recognized an equity income of Ps. 6,428, Ps. 6,478 and Ps. 7,847 net of taxes based on its economic interest in Heineken Group for the years ended December 31, 2019, 2018 and 2017, respectively. The economic interest for the year 2019 and 2018 was 14.8%. The Company’s share of the net income attributable to equity holders of Heineken Group exclusive of amortization of adjustments amounted to Ps. 6,885 (€. 319 million), Ps. 6,320 (€. 281 million) and Ps. 7,656 (€. 357 million), for the years ended December 31, 2019, 2018 and 2017, respectively. Summarized financial information in respect of the associate Heineken Group accounted for under the equity method is set out below. December 31, 2019 December 31, 2018 Amounts in millions Peso Euro Peso Euro Total current assets Ps. 177,829 €. 8,419 Ps. 205,662 €. 9,125 Total non-current 804,443 38,085 744,350 33,026 Total current liabilities 259,952 12,307 235,052 10,429 Total non-current 356,671 16,886 360,928 16,014 Total equity 365,648 17,311 354,032 15,708 Equity attributable to equity holders (1) 341,062 16,147 327,369 14,525 Total revenue and other income Ps. 511,125 €. 24,064 Ps. 517,528 €. 22,564 Total cost and expenses 433,959 20,431 445,945 19,443 Net income Ps. 50,424 €. 2,374 Ps. 48,280 €. 2,105 Net income attributable to equity holders 46,006 2,166 43,877 1,913 Other comprehensive income 3,951 186 (1,170 ) (51 ) Total comprehensive income Ps. 54,375 €. 2,560 Ps. 47,111 €. 2,054 Total comprehensive income attributable to equity holders 49,447 2,328 42,615 1,858 (1) Following the IFRS Interpretations Committee agenda decision in January 2019 regarding tax deposits (relating to taxes other than income tax), Heineken Group changed its accounting policy with regards to payments relating to contingent liabilities. This change in accounting policy has been recognised retrospectively in Heineken Financial Statements and increased equity as at 1 January 2018 by €.157 million. The impact on 2018 profit amounts to an increase of €.10 million. For further information please refer to Heineken’s Annual Report. Reconciliation from the equity of the associate Heineken Group to the investment of the Company. December 31, 2019 December 31, 2018 Amounts in millions Peso Euro Peso Euro Equity attributable to equity holders of Heineken (1) Ps. 341,062 €. 16,147 Ps. 323,608 €. 14,358 Economic ownership percentage 14.76 % 14.76 % 14.76 % 14.76 % Investment in Heineken investment exclusive of goodwill and other adjustments Ps. 50,341 €. 2,383 Ps. 47,765 €. 2,119 Effects of fair value determined by purchase price allocation 14,839 703 15,846 703 Goodwill 18,609 881 19,850 881 Heineken investment Ps. 83,789 €. 3,967 Ps. 83,461 €. 3,703 (1) Related to the change in Heineken’s accounting policy mentioned in the table above, the Company recognized the accumulated effects as of January 1, 2019. As of December 31, 2019 and 2018, the fair value of Company’s investment in Heineken N.V. Holding and Heineken N.V. represented by shares equivalent to 14.8% of its outstanding shares amounted to Ps. 164,504 (€. 7,769 million) and Ps. 145,177(€. 6,441 million) based on quoted market prices of those dates. As of April 24 152 During the years ended December 31, 2019, 2018 and 2017, the Company received dividends distributions from Heineken Group, amounting to Ps. 3,031, Ps. 2,872 and Ps. 3,250, respectively. For the years ended December 31, 2019, 2018 and 2017 the equity earnings recognized for associates of Coca-Cola FEMSA was Ps. 84, Ps. 44 and Ps. 235, respectively. For the years ended December 31, 2019, 2018 and 2017 the equity (loss) earnings recognized for joint ventures of Coca-Cola FEMSA was a loss of Ps. 215, Ps. 270 and Ps. 175, respectively. For the year ended December 31, 2019, 2018 and 2017, the Company’s share of other comprehensive income from equity investees, net of taxes are as follows: 2019 2018 2017 Items that may be reclassified to consolidated net income: Valuation of the effective portion of derivative financial instruments Ps. — Ps. (355 ) Ps. 252 Exchange differences on translating foreign operations 1,058 (5 ) (2,265 ) Total Ps. 1,058 Ps. (360 ) Ps. (2,013 ) Items that may not be reclassified to consolidated net income in subsequent periods: Remeasurements of the net defined benefit liability Ps. (389 ) Ps. 597 Ps. 69 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Property, Plant and Equipment, Net | Note 11. Property, Plant and Equipment, Net Cost Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Cost as of January 1, 2017 Ps. 9,182 Ps. 24,541 Ps. 70,367 Ps. 16,978 Ps. 15,943 Ps. 6,978 Ps. 17,368 Ps. 2,086 Ps. 163,443 Additions 465 1,474 6,150 389 3,201 8,878 57 224 20,838 Additions from business acquisitions 5,115 1,634 5,988 482 3,324 821 145 — 17,509 Transfer of completed projects in progress 6 676 3,073 1,967 558 (8,572 ) 2,295 (3 ) — Transfer (to)/from assets classified as held for sale — — (42 ) — — — — (58 ) (100 ) Disposals (144 ) (588 ) (3,147 ) (800 ) (193 ) — (352 ) (12 ) (5,236 ) Effects of changes in foreign exchange rates (1,018 ) (1,964 ) (2,817 ) (1,523 ) (1,216 ) (720 ) 153 (1,201 ) (10,306 ) Changes in value on the recognition of inflation effects 527 1,016 2,030 689 (2 ) 226 — 638 5,124 Venezuela deconsolidation effect (see Note 3.3) (544 ) (817 ) (1,300 ) (717 ) (83 ) (221 ) — (646 ) (4,328 ) Cost as of December 31, 2017 Ps. 13,589 Ps. 25,972 Ps. 80,302 Ps. 17,465 Ps. 21,532 Ps. 7,390 Ps. 19,666 Ps. 1,028 Ps. 186,944 Cost Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Cost as of January 1, 2018 Ps. 13,589 Ps. 25,972 Ps. 80,302 Ps. 17,465 Ps. 21,532 Ps. 7,390 Ps. 19,666 Ps. 1,028 Ps. 186,944 Additions 334 877 6,926 644 2,888 6,482 3,322 111 21,584 Additions from business acquisitions 25 451 4,128 537 393 290 2 41 5,867 Transfer of completed projects in progress 526 567 2,193 1,711 3 (4,927 ) (93 ) 20 — Transfer (to)/from assets classified as held for sale — — (127 ) — — — — — (127 ) Disposals (93 ) (152 ) (4,623 ) (614 ) (312 ) (633 ) (748 ) (21 ) (7,196 ) Philippines disposal (4,654 ) (2,371 ) (11,621 ) (2,415 ) (10,116 ) (489 ) (236 ) — (31,902 ) Effects of changes in foreign exchange rates (401 ) (1,079 ) (3,526 ) (759 ) (251 ) (330 ) (354 ) (293 ) (6,993 ) Effects on the recognition of inflation effects 242 816 2,552 465 612 66 – 9 4,762 Cost as of December 31, 2018 Ps. 9,568 Ps. 25,081 Ps. 76,204 Ps. 17,034 Ps. 14,749 Ps. 7,849 Ps. 21,559 Ps. 895 Ps. 172,939 Cost Land Buildings Machinery Refrigeration Returnable Investments Leasehold Improvements Other Total Cost as of January 1, 2019 Ps. 9,568 Ps. 25,081 Ps. 76,204 Ps. 17,034 Ps. 14,749 Ps. 7,849 Ps. 21,559 Ps. 895 Ps. 172,939 Additions 309 1,134 6,826 636 2,581 8,421 2,907 112 22,926 Additions from business acquisitions 146 806 686 — — — 466 — 2,104 Changes in the fair value of past acquisitions 142 227 50 (13 ) — — 7 (8 ) 405 Transfer of completed projects in progress (253 ) 581 3,694 1,396 359 (6,284 ) 496 11 — Transfer (to)/from assets classified as held for sale — — (410 ) — — — — (49 ) (459 ) Disposals (15 ) (254 ) (3,195 ) (1,032 ) (1,056 ) (33 ) (170 ) (38 ) (5,793 ) Effects of changes in foreign exchange rates (329 ) (1,147 ) (2,463 ) (961 ) (833 ) (370 ) 26 (130 ) (6,207 ) Effects on the recognition of inflation effects 114 366 1,254 241 352 18 — — 2,345 Cost as of December 31, 2019 Ps. 9,682 Ps. 26,794 Ps. 82,646 Ps. 17,301 Ps. 16,152 Ps. 9,601 Ps. 25,291 Ps. 793 Ps. 188,260 Accumulated Depreciation Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Accumulated Depreciation as of January 1, 2017 Ps. — Ps. (5,553 ) Ps. (30,263 ) Ps. (8,723 ) Ps. (10,266 ) Ps. — Ps. (5,556 ) Ps. (859 ) Ps. (61,220 ) Depreciation for the year — (887 ) (6,928 ) (2,186 ) (3,365 ) — (1,562 ) (685 ) (15,613 ) Transfer to/(from) assets classified as held for sale — 44 7 – — — — — 51 Disposals — 40 3,125 683 103 — 300 5 4,256 Effects of changes in foreign exchange rates — 518 437 1,157 93 — (138 ) 940 3,007 Venezuela deconsolidation effect — 481 1,186 626 56 — — 335 2,684 Venezuela impairment — (257 ) (841 ) — — — — — (1,098 ) Changes in value on the recognition of inflation effects — (437 ) (1,031 ) (553 ) (44 ) — — (234 ) (2,299 ) Accumulated Depreciation as of December 31, 2017 Ps. — Ps. (6,051 ) Ps. (34,308 ) Ps. (8,996 ) Ps. (13,423 ) Ps. — Ps. (6,956 ) Ps. (498 ) Ps. (70,232 ) Accumulated Depreciation Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Accumulated Depreciation as of January 1, 2018 Ps. — Ps. (6,051 ) Ps. (34,308 ) Ps. (8,996 ) Ps. (13,423 ) Ps. — Ps. (6,956 ) Ps. (498 ) Ps. (70,232 ) Depreciation for the year — (786 ) (7,437 ) (1,752 ) (2,827 ) — (1,763 ) (133 ) (14,698 ) Transfer to/(from) assets classified as held for sale — — 78 — — — — — 78 Disposals — 69 4,970 579 204 — 571 — 6,393 Philippines disposal — 700 6,125 2,083 7,225 — 77 — 16,210 Effects of changes in foreign exchange rates — 112 404 250 631 — 141 143 1,681 Changes in value on the recognition of inflation effects — (223 ) (2,692 ) (338 ) (516 ) — — — (3,769 ) Accumulated Depreciation as of December 31, 2018 Ps. — Ps. (6,179 ) Ps. (32,860 ) Ps. (8,174 ) Ps. (8,706 ) Ps. — Ps. (7,930 ) Ps. (488 ) Ps. (64,337 ) Accumulated Depreciation Land Buildings Machinery Refrigeration Returnable Investments Leasehold Improvements Other Total Accumulated Depreciation as of January 1, 2019 Ps. — Ps. (6,179 ) Ps. (32,860 ) Ps. (8,174 ) Ps. (8,706 ) Ps. — Ps. (7,930 ) Ps. (488 ) Ps. (64,337 ) Depreciation for the year — (937 ) (7,862 ) (1,862 ) (2,734 ) — (1,985 ) (88 ) (15,468 ) Transfer to/(from) assets classified as held for sale — — 262 — — — — — 262 Disposals — 46 1,967 966 1,079 — 115 31 4,204 Effects of changes in foreign exchange rates — 264 1,249 583 572 — 64 63 2,795 Changes in value on the recognition of inflation effects — (92 ) (629 ) (164 ) (302 ) — (2 ) (14 ) (1,203 ) Accumulated Depreciation as of December 31, 2019 Ps. — Ps. (6,898 ) Ps. (37,873 ) Ps. (8,651 ) Ps. (10,091 ) Ps. — Ps. (9,738 ) Ps. (496 ) Ps. (73,747 ) Carrying Amount Land Buildings Machinery Refrigeration Returnable Investments Leasehold Improvements Other Total As of December 31, 2017 Ps. 13,589 Ps. 19,921 Ps. 45,994 Ps. 8,469 Ps. 8,109 Ps. 7,390 Ps. 12,710 Ps. 530 Ps. 116,712 As of December 31, 2018 Ps. 9,568 Ps. 18,902 Ps. 43,344 Ps. 8,860 Ps. 6,043 Ps. 7,849 Ps. 13,629 Ps. 407 Ps. 108,602 As of December 31, 2019 Ps. 9,682 Ps. 19,896 Ps. 44,773 Ps. 8,650 Ps. 6,061 Ps. 9,601 Ps. 15,553 Ps. 297 Ps. 114,513 For the years ended December 31, 2019, 2018 and 2017, the Company did not recognize any capitalization of borrowing costs. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Leases | Note 12. Leases As of December 31, 2019, consolidated right-of-use Land and Other (1) Total Cost as of January 1, 2019 Ps. 49,112 1,108 50,220 Additions 7,406 96 7,502 Additions from business combinations 2,187 — 2,187 Disposals (827 ) (5 ) (832 ) Remeasurements 2,299 (9 ) 2,290 Depreciation (7,492 ) (401 ) (7,893 ) Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies (759 ) (31 ) (790 ) Right-of-use Ps. 51,926 758 52,684 (1) Other assets mailny include transportation equipment and servers. As of December 31, 2019, the lease liabilites are integrated as follows: December 31, 2019 Maturity analysis - contractual undiscounted cash flows Less than one year Ps. 10,655 One to five years 40,262 Five to ten years 24,053 More than ten years 11,884 Total undiscounted lease liabilities at December 31 86,854 Lease liabilities included in the statement of financial position at December 31 54,679 Current 7,387 Non-Current Ps. 47,292 The interest expense for leases reported in the income statements for the twelve-month period ended December 31, 2019 was Ps. 4,774. The expense relating to short-term leases and leases of low-value For the year ended December 31, 2019, the amounts recognized in the consolidated statement of cash flows related to leases is Ps. 8,848. 12.1 Land and buildings leases The Company leases land for constructions of its retail stores mainly and some buildings for its office space. The leases of retail stores typically run for an average useful life of 15 years, and leases of office space for three to five years. Some leases include an option to renew the lease for additional period at the end of the contract term. Some leases provide for additional rent payments that are based on changes in the National Consumer and Price Index, or sales that the Company makes at the leased store in the period. Variable lease payments based on sales Some leases of retail stores contain variable lease payments that are based on sales that the Company makes at the store. Variable rental payments in the Company do not represent a significant impact in profit and loss amounts for the year ended December 31, 2019. The Company expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years. Extension options Some leases of office buildings, cellars and retail stores contain extension options exercisable by the Company up to one year before the end of the non-cancellable right-of-use 12.2 Other leases The Company leases vehicles, servers and equipment, with lease terms from three to five years. In some cases, the Company has options to purchase the assets at the end of the contract term. At the commencement date, the Company does not expect to exercise the purchase option. FEMSA also leases IT equipment and machinery with contract terms from one to three years. These leases are short-term and/or leases of low-value right-of-use |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Intangible Assets | Note 13. Intangible Assets Rights to Goodwill Trademark Other Indefinite Total Technology Systems in Alcohol Other Total Total Cost as of January 1, 2017 Ps. 85,338 Ps. 51,857 Ps. 6,225 Ps. 2,151 Ps. 145,571 Ps. 6,124 Ps. 798 Ps. 1,416 Ps. 2,338 Ps. 10,676 Ps. 156,247 Additions 1,288 — — 6 1,294 464 920 221 445 2,050 3,344 Acquisitions from business combinations (see Note 4) 4,144 140 5 — 4,289 6 — — 80 86 4,375 Changes in fair value of past acquisitions 5,167 (7,022 ) 836 9 (1,010 ) (188 ) — — 892 704 (306 ) Transfer of completed development systems — — — — — 412 (412 ) — — — — Disposals — — — — — 110 — — — 110 110 Effect of movements in exchange rates (2,563 ) (1,526 ) 119 91 (3,879 ) 175 (15 ) — 52 212 (3,667 ) Changes in value on the recognition of inflation effects (727 ) — — — (727 ) — — — 175 175 (552 ) Venezuela deconsolidation effect (745 ) — — — (745 ) — — — (139 ) (139 ) (884 ) Cost as of December 31, 2017 Ps. 91,902 Ps. 43,449 Ps. 7,185 Ps. 2,257 Ps. 144,793 Ps. 7,103 Ps. 1,291 Ps. 1,637 Ps. 3,843 Ps. 13,874 Ps. 158,667 Rights to Goodwill Trademark Other Indefinite Total Technology Systems in Alcohol Other Total Total Cost as of January 1, 2018 Ps. 91,902 Ps. 43,449 Ps. 7,185 Ps. 2,257 Ps. 144,793 Ps. 7,103 Ps. 1,291 Ps. 1,637 Ps. 3,843 Ps. 13,874 Ps. 158,667 Additions — 75 — 71 146 1,051 371 131 94 1,647 1,793 Acquisitions from business combinations (see Note 4) 4,602 842 170 — 5,614 35 57 — 291 383 5,997 Changes in fair value of past acquisitions — 272 — — 272 — — — — — 272 Internal development — — — — — — — — 41 41 41 Transfer of completed development systems — — — — — 904 (904 ) — — — — Disposals — — — (2 ) (2 ) (43 ) — — (146 ) (189 ) (191 ) Philippines disposal (3,882 ) — — — (3,882 ) — — — (596 ) (596 ) (4,478 ) Effect of movements in exchange rates (5,005 ) (4,108 ) (656 ) (349 ) (10,118 ) (343 ) (38 ) — (311 ) (692 ) (10,810 ) Changes in value on the recognition of inflation effects — — — — — — — — 57 57 57 Cost as of December 31, 2018 Ps. 87,617 Ps. 40,530 Ps. 6,699 Ps. 1,977 Ps. 136,823 Ps. 8,707 Ps. 777 Ps. 1,768 Ps. 3,273 Ps. 14,525 Ps. 151,348 Rights to Goodwill Trademark Other Indefinite Total Technology Systems in Development Alcohol Other Total Total Cost as of January 1, 2019 Ps. 87,617 40,530 Ps. 6,699 Ps. 1,977 Ps. 136,823 Ps. 8,707 Ps. 777 Ps. 1,768 Ps. 3,273 Ps. 14,525 Ps. 151,348 Additions — — — 164 164 824 334 191 685 2,034 2,198 Acquisitions from business combinations (see Note 4) — 6,542 469 — 7,011 759 — — 12 771 7,782 Changes in the fair value of past acquisitions (2,887 ) 2,903 — 153 169 (6 ) — — (185 ) (191 ) (22 ) Transfer of completed development systems — — — — — 412 (413 ) — 1 — — Disposals — — (48 ) — (48 ) (580 ) — (130 ) — (710 ) (758 ) Effect of movements in exchange rates (3,475 ) (2,069 ) (520 ) (134 ) (6,198 ) (553 ) (23 ) — (337 ) (913 ) (7,111 ) Changes in value on the recognition of inflation effects — — — — — — — — (6 ) (6 ) (6 ) Cost as of December 31, 2019 Ps. 81,255 Ps. 47,906 Ps. 6,600 Ps. 2,160 Ps. 137,921 Ps. 9,563 Ps. 675 Ps. 1,829 Ps. 3,443 Ps. 15,510 Ps. 153,431 Amortization and Impairment Losses Rights to Goodwill Trademark Other Total Technology Systems in Alcohol Other Total Total Amortization as of January 1, 2017 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (1,937 ) Ps. — Ps. (376 ) Ps. (666 ) Ps. (2,979 ) Ps. (2,979 ) Amortization expense — — — — — (961 ) — (81 ) (217 ) (1,259 ) (1,259 ) Impairment losses — — — — — (110 ) — — — (110 ) (110 ) Venezuela deconsolidation effect — — — — — — — — (120 ) (120 ) (120 ) Effect of movements in exchange rates — — — — — (254 ) — — 148 (106 ) (106 ) Amortization as of December 31, 2017 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (3,262 ) Ps. — Ps. (457 ) Ps. (855 ) Ps. (4,574 ) Ps. (4,574 ) Amortization as of January 1, 2018 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (3,262 ) Ps. — Ps. (457 ) Ps. (855 ) Ps. (4,574 ) Ps. (4,574 ) Amortization expense — — — — — (1,453 ) — (87 ) (373 ) (1,913 ) (1,913 ) Disposals — — — — — 93 — — 98 191 191 Philippines disposal — — — — — — — — 375 375 375 Effect of movements in exchange rates — — — — — 236 — — (1 ) 235 235 Changes in value on the recognition of inflation effects — — — — — (51 ) — — (1 ) (52 ) (52 ) Amortization as of December 31, 2018 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (4,437 ) Ps. — Ps. (544 ) Ps. (757 ) Ps. (5,738 ) Ps. (5,738 ) Amortization as of January 1, 2019 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (4,437 ) Ps. — Ps. (544 ) Ps. (757 ) Ps. (5,738 ) Ps. (5,738 ) Amortization expense — — — — — (1,351 ) — (123 ) (337 ) (1,811 ) (1,811 ) Disposals — — — — — 445 — 30 — 475 475 Effect of movements in exchange rates — — — — — 165 — — 68 233 233 Changes in value on the recognition of inflation effects — — — — — (29 ) — — 1 (28 ) (28 ) Amortization as of December 31, 2019 Ps. — Ps. — Ps. — Ps. — Ps. Ps. (5,207 ) Ps. — Ps. (637 ) Ps. (1,025 ) Ps. (6,869 ) Ps. (6,869 ) Carrying Amount Rights to Coca-Cola Goodwill Trademark Other Total Technology Systems in Alcohol Other Total Total As of December 31, 2017 Ps. 91,902 Ps. 43,449 Ps. 7,185 Ps. 2,257 Ps. 144,793 Ps. 3,841 Ps. 1,291 Ps. 1,180 Ps. 2,988 Ps. 9,300 Ps. 154,093 As of December 31, 2018 Ps. 87,617 Ps. 40,530 Ps. 6,699 Ps. 1,977 Ps. 136,823 Ps. 4,270 Ps. 777 Ps.1,224 Ps.2,516 Ps. 8,787 Ps. 145,610 As of December 31, 2019 Ps. 81,255 Ps. 47,906 Ps. 6,600 Ps. 2,160 Ps. 137,921 Ps. 4,356 Ps. 675 Ps.1,192 Ps.2,418 Ps. 8,641 Ps. 146,562 For the years ended December 31, 2019 and 2018, the Company did not recognize any capitalization of borrowing costs. On March 28, 2017 Coca-Cola FEMSA acquired distribution rights and other intangibles of AdeS soy-based 2019 2018 2017 Cost of goods sold Ps. 317 Ps. 399 Ps. 132 Administrative expenses 953 858 627 Selling expenses 542 656 500 Ps. 1,812 Ps. 1,913 Ps. 1,259 The average remaining period for the Company’s intangible assets that are subject to amortization is as follows: Years Technology Costs and Management Systems 3 - 10 Alcohol Licenses 12 - 15 Coca-Cola FEMSA Impairment Tests for Cash-Generating Units Containing Goodwill and Distribution Rights For the purpose of impairment testing, goodwill and distribution rights are allocated and monitored on an individual country basis, which is considered to be a CGU. The aggregate carrying amounts of goodwill and distribution rights allocated to each CGU are as follows: December 31, December 31, Mexico Ps. 56,352 Ps. 56,352 Guatemala 1,679 1,853 Nicaragua 420 460 Costa Rica 1,442 1,417 Panama 1,131 1,182 Colombia 4,367 4,600 Brazil 38,765 42,153 Argentina 306 327 Uruguay 2,626 3,003 Total Ps. 107,088 Ps. 111,347 Goodwill and distribution rights are tested for impairments annually. The recoverable amounts are based on value in use. The value in use of a CGU is determined based on the discounted cash flows method. The key assumptions used in projecting cash flows are: volume, expected annual long-term inflation, and the weighted average cost of capital (WACC) used to discount the projected cash flows. The cash flow forecasts could differ from the results obtained over time; however, Coca-Cola FEMSA prepares its estimates based on the current situation of each of the CGUs. To determine the discount rate, Coca-Cola FEMSA uses the WACC as determined for each of the cash generating units in real terms and as described in following paragraphs. The estimated discount rates to perform impairment test for each CGU consider market participants’ assumptions. Market participants were selected taking into consideration the size, operations and characteristics of the businesses that are similar to those of Coca-Cola FEMSA. The discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the opportunity cost to a market participant, considering the specific circumstances of Coca-Cola FEMSA and its operating segments and is derived from its WACC. The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by Company’s investors. The cost of debt is estimated based on the interest-bearing borrowings Coca-Cola FEMSA is obliged to service, which is equivalent to the cost of debt based on the conditions that a creditor in the market would consider. Segment-specific risk is incorporated by applying beta factors which are evaluated annually based on publicly available market data. Market participant assumptions are important because, not only do they include industry data for growth rates, management also assesses how the CGU’s position, relative to its competitors, might change over the forecasted period. The key assumptions used for the value-in-use • Cash flows were projected based on actual operating results and the five-year business plan. Cash flows for a further five-year were forecasted maintaining the same stable growth and margins per country of the last year base. Coca-Cola FEMSA believes that this forecasted period is justified due to the non-current • Cash flows after the first ten-year • A per CGU-specific The key assumptions by CGU for impairment test as of December 31, 2019 were as follows: CGU Pre-tax WACC Post-tax WACC Expected Annual Long-Term Inflation Expected Volume Mexico 7.3 % 5.2 % 3.5 % 0.7 % Colombia 8.9 % 6.2 % 3.1 % 4.0 % Costa Rica 13.8 % 9.7 % 2.2 % 2.1 % Guatemala 9.1 % 7.1 % 4.0 % 8.5 % Nicaragua 21.1 % 12.4 % 4.4 % 3.0 % Panamá 8.5 % 6.6 % 2.0 % 5.4 % Argentina 21.6 % 14.8 % 39.2 % 3.7 % Brazil 9.3 % 5.6 % 3.6 % 2.0 % Uruguay 9.4 % 6.8 % 7.4 % 2.0 % The key assumptions by CGU for impairment test as of December 31, 2018 were as follows: CGU Pre-tax WACC Post-tax Expected Annual Long-Term Inflation Expected Volume Mexico 7.4 % 5.3 % 4.0 % 1.4 % Colombia 7.8 % 5.2 % 3.1 % 4.0 % Costa Rica 13.9 % 9.2 % 4.0 % 1.6 % Guatemala 9.4 % 7.5 % 3.2 % 7.3 % Nicaragua 21.2 % 11.0 % 6.2 % 3.8 % Panama 9.2 % 7.0 % 2.4 % 3.0 % Argentina 19.6 % 11.3 % 21.9 % 2.7 % Brazil 10.7 % 6.6 % 3.8 % 1.7 % The values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external sources and internal sources (historical data). Coca-Cola FEMSA consistently applied its methodology to determine CGU specific WACC’s to perform its annual impairment testing. During the year ended December 31, 2017 and because the economic and operational conditions worsened in Venezuela, Coca-Cola FEMSA has recognized an impairment of the distribution rights in such country for an amount of Ps 745, such charge has been recorded in other expenses line in the consolidated income statement. Sensitivity to Changes in Assumptions At December 31, 2019, Coca-Cola FEMSA performed an additional impairment sensitivity calculation, taking into account an adverse change in post-tax Change in Volume CGU Change in WACC Growth CAGR (1) Effect on Valuation Mexico +0.4 % -1.0 % Passes by 4.9x Colombia +0.3 % -1.0 % Passes by 4.7x Costa Rica +0.8 % -1.0 % Passes by 3.4x Guatemala +0.4 % -1.0 % Passes by 38.5x Nicaragua +1.4 % -1.0 % Passes by 1.1x Panamá +0.2 % -1.0 % Passes by 9.7x Argentina +1.9 % -1.0 % Passes by 13.9x Brazil +0.5 % -1.0 % Passes by 1.6x Uruguay +0.3 % -1.0 % Passes by 3x (1) Compound Annual Growth Rate (“CAGR”). FEMSA Comercio Proximity Division, FEMSA Comercio – Health Division and FEMSA Comercio – Fuel Division Impairment Test for Cash-Generating Units Containing Goodwill For the purpose of impairment testing, goodwill is allocated and monitored on an individual country basis by operating segment. The Company has integrated its cash generating units as follow: (i) FEMSA Comercio – Proximity Division is integrated as Mexico, and (ii) FEMSA Comercio – Health Division are integrated as Mexico, Chile, Colombia and Ecuador for each of them and (iii) FEMSA Comercio – Fuel Division includes only Mexico. As of December 31, 2019 in FEMSA Comercio – Health Division there is a significant carrying amount of goodwill allocated in Chile and Colombia as a group of cash generating (South America) with a total carrying amount of Ps. 4,743. The recoverable amounts are based on value in use. The value in use of CGUs is determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are: sales, expected annual long-term inflation, and the weighted average cost of capital (“WACC”) used to discount the projected cash flows. The cash flow forecasts could differ from the results obtained over time; however, the Company prepares its estimates based on the current situation of each of the CGUs or group of CGUs. To determine the discount rate, the Company uses the WACC as determined for each of the cash generating units or group of the cash generating units in real terms and as described in following paragraphs. The estimated discount rates to perform the IAS 36 “Impairment of assets”, The discount rates represent the current market assessment of the risks specific to each CGU or group of CGUs, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the opportunity cost to a market participant, considering the specific circumstances of the Company and its operating segments and is derived from its WACC. The WACC takes into account both debt and cost of equity. The cost of equity is derived from the expected return on investment by Company’s investors. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service, which is equivalent to the cost of debt based on the conditions that a creditor would assess in the market. Segment-specific risk is incorporated by applying beta factors which are evaluated annually based on publicly available market data. Market participant assumptions are important because, not only do they include industry data for growth rates, management also assesses how the CGU’s position, relative to its competitors, might change over the forecasted period. The key assumptions used for the value-in-use • Cash flows were projected based on actual operating results and the five-year business plan. The Company believes that this forecasted period is justified due to the non-current • Cash flows projected based on actual operating results and five-year business plan were calculated using a perpetual growth rate equal to the expected annual population growth, in order to calculate the terminal recoverable amount. • A per CGU-specific The key assumptions by CGU for impairment test as of December 31, 2019 were as follows: CGU Pre-tax WACC Post-tax Expected Annual Long-Term Inflation Expected Volume South America (FEMSA Comercio – Health Division) 9.4 % 6.6 % 3.0 % 0.3 % The key assumptions by CGU for impairment test as of December 31, 2018 were as follows: CGU Pre-tax WACC Post-tax Expected Annual Long-Term Inflation Expected Volume South America (FEMSA Comercio – Health Division) 9.0 % 6.3 % 3.0 % 0.4 % The values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external sources and internal sources (historical data). The Company consistently applied its methodology to determine CGU specific WACC’s to perform its annual impairment testing. Sensitivity to Changes in Assumptions At December 31, 2019, the Company performed an additional impairment sensitivity calculation, taking into account an adverse change in post-tax Change in Sales CGU Change in WACC Growth CAGR (1) Effect on Valuation FEMSA Comercio – Health Division (South America) +0.2 % -0.5 % Passes by 1.34x (1) Compound Annual Growth Rate. |
Other Assets and Other Financia
Other Assets and Other Financial Assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other Assets and Other Financial Assets | Note 14. Other Assets and Other Financial Assets 14.1 Other non-current December 31, 2019 December 31, Agreement with customers Ps. 953 Ps. 897 Long term prepaid advertising expenses 341 388 Guarantee deposits (1) 2,407 2,910 Prepaid bonuses 226 248 Advances to acquire property, plant and equipment 203 233 Recoverable taxes 2,111 1,289 Indemnifiable assets from business combinations (2) 2,948 3,336 Recoverable taxes from business combinations — 395 Others 1,343 621 Ps. 10,532 Ps. 10,317 (1) As it is customary in Brazil, the Company is required to guarantee tax, legal and labor contingencies by guarantee deposits including those related to business acquisitions. See Note 26.7. (2) Corresponds to indemnifiable assets that are warranted by former Vonpar owners as per the share purchase agreement. See Note 4.1.3 14.2 Other non-current December 31, December 31, Non-current Ps. 938 Ps. 724 Derivative financial instruments (see Note 21) 8,260 10,752 Investments (1) — 11,810 Others 172 101 Other investments in equity instruments (2) 13,310 — Ps. 22,680 Ps. 23,387 (1) It represents an investment in corporate debt securities with variable interest rates, measured at amortized cost. The carrying value approximates its fair value as of December 31, 2019. (2) Corresponds to the acquisition of a minority stake in Jetro Restaurant Depot as of November 8, 2019. Refer to note 3.7.3. As of December 31, 2019 and 2018, the fair value of non-current |
Balances and Transactions with
Balances and Transactions with Related Parties and Affiliated Companies | 12 Months Ended |
Dec. 31, 2019 | |
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Balances and Transactions with Related Parties and Affiliated Companies | Note 15. Balances and Transactions with Related Parties and Affiliated Companies Balances and transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. The consolidated statements of financial positions and consolidated income statements include the following balances and transactions with related parties and affiliated companies: December 31, December 31, Balances Due from The Coca-Cola Company (see Note 7) (1) (8) Ps. 802 Ps. 1,173 Balance with BBVA, S.A. de C.V. (2) 6,798 11,509 Balance with JP Morgan Chase & Co. (2) — 27 Balance with Grupo Scotiabank Inverlat, S.A. (3) 510 503 Grupo Industrial Saltillo S.A.B. de C.V. (3) — 169 Due from Heineken Group (1) (3) (7) 2,915 2,572 Other receivables (1) (4) 390 565 Due to The Coca-Cola Company (5) (6) (8) Ps. 4,417 Ps. 3,893 Due to BBVA, S.A. de C.V. (5) 1,696 4,093 Due to Heineken Group (6) (7) 4,308 4,753 Due to Grupo Financiero Scotiabank Inverlat, S.A. (5) 104 170 Other payables (6) 2,003 1,402 (1) Presented within accounts receivable. (2) Presented within cash and cash equivalents. (3) Presented within other financial assets. (4) Presented within other current financial assets. (5) Recorded within bank loans and notes payable. (6) Recorded within accounts payable. (7) Associates. (8) Non-controlling Balances due from related parties are considered to be recoverable. Accordingly, for the years ended December 31, 2019, 2018 and 2017, there was no expense resulting from uncollectible balances due from related parties. Transactions 2019 2018 2017 Income: Services to Heineken Group (1) Ps.3,380 Ps.3,265 Ps.3,570 Logistic services to Grupo Industrial Saltillo, S.A. de C.V. (3) — 255 457 Logistic services to Jugos del Valle (1) 553 369 587 Interest revenues from BBVA, S.A. de C.V. (3) 1,456 1,469 1,002 Interest revenues from Grupo Financiero Scotiabank Inverlat, S.A. (3) 447 — — Other revenues from related parties 404 242 243 Expenses: Purchase of concentrate from The Coca-Cola Company (2) Ps.34,063 Ps.32,379 Ps.30,758 Purchases of beer from Heineken Group (1) (6) 25,215 27,999 24,942 Purchase of coffee from Caffenio (5) — — 2,397 Purchase of baked goods and snacks from Grupo Bimbo, S.A.B. de C.V. (3) 6,194 5,763 4,802 Advertisement expense paid to The Coca-Cola Company (2) (4) 1,756 2,193 1,392 Purchase of juices from Jugos del Valle, S.A.P.I. de C.V. (1) 4,477 4,537 3,905 Purchase of sugar from Promotora Industrial Azucarera, S.A. de C.V. (1) 2,728 2,604 1,885 Interest expense and fees paid to BBVA, S.A. de C.V. (3) 144 230 53 Purchase of sugar from Beta San Miguel (3) 655 651 1,827 Purchase of sugar, cans and aluminum lids from Promotora Mexicana de Embotelladores, S.A. de C.V. (3) — 739 839 Purchase of canned products from IEQSA (1) 682 596 804 Purchases to AdeS Alimentos y Bebidas (1) 497 592 — Purchase of inventories to Leao Alimentos e Bebidas, L.T.D.A. (1) 1,867 2,654 4,010 Advertising paid to Grupo Televisa, S.A.B. (3) 115 113 107 Insurance premiums for policies with Grupo Nacional Provincial, S.A.B. (3) — 12 32 Donations to Fundación FEMSA, A.C. (3) 195 232 23 Donations to Difusión y Fomento Cultural, A.C. (3) 61 63 44 Donations to ITESM (3) 215 192 108 Other expenses with related parties 319 423 742 (1) Associates. (2) Non-controlling (3) Members of the board of directors in FEMSA participate in board of directors of this entity. (4) Net of the contributions from The Coca-Cola Company of Ps. 2,274, Ps. 3,542 and Ps. 3,436, for the years ended in 2019, 2018 and 2017, respectively. (5) On May 22, 2018 the Company completed the acquisition of an additional 10% of non-controlling (6) Favorable resolution of Arbitration in Brazil on October 31, 2019, the arbitration tribunal in charge of the arbitration proceeding between Coca-Cola FEMSA and Cervejarias Kaiser Brasil, S.A., a subsidiary of Heineken, N.V. (“Kaiser”), issued an award confirming that the distribution agreement pursuant to which Coca-Cola FEMSA distribute Kaiser’s portfolio in the country, including Heineken beer, shall continue in full force and effect until and including March 19, 2022. Commitments with related parties Related Party Commitment Conditions Heineken Group Supply Supply of all beer products in Mexico’s OXXO stores. The contract may be renewed for five years or additional periods. At the end of the contract OXXO will not hold exclusive contract with another supplier of beer for the next 3 years. Commitment term, Jan 1 st On February 26, 2019, the Company through its subsidiary Cadena Comercial OXXO, S.A. de C.V. (“OXXO”) signed an agreement with HEINEKEN Group (“Cervezas Cuauhtémoc Moctezuma, S.A. de C.V.”) and both companies agreed to an extension of their existing commercial relationship with certain important changes. Under the terms of the agreement, signed in April 2019 and following a gradual process, OXXO started selling the beer brands of Grupo Modelo in certain regions of Mexico, covering the entire Mexican territory by the end of 2022. The aggregate compensation paid to executive officers and senior management of the Company were as follows: 2019 2018 2017 Short-term employee benefits paid Ps. 2,163 Ps. 1,885 Ps. 1,699 Postemployment benefits 48 37 48 Termination benefits 411 88 74 Share based payments 610 401 351 |
Balances and Transactions in Fo
Balances and Transactions in Foreign Currencies | 12 Months Ended |
Dec. 31, 2019 | |
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Balances and Transactions in Foreign Currencies | Note 16. Balances and Transactions in Foreign Currencies Assets, liabilities and transactions denominated in foreign currencies are those realized in a currency different than the functional currency of the Company. As of December 31, 2019 and for each of the three years ended on December 31, 2019, 2018 and 2017, respectively; the assets, liabilities and transactions denominated in foreign currencies, expressed in Mexican pesos (contractual amounts) are as follows: Assets Liabilities Balances Short-Term Long-Term Short-Term Long-Term As of December 31, 2019 U.S. dollars Ps. 58,151 Ps. 452 Ps. 5,597 Ps. 57,075 Euros 877 — 363 21,122 Other currencies 620 1,593 58 1 Total Ps. 59,648 Ps. 2,045 Ps. 6,018 Ps. 78,198 As of December 31, 2018 U.S. dollars Ps. 69,281 Ps. 12,026 Ps. 4,625 Ps. 63,112 Euros 749 — 417 22,538 Other currencies 46 1,605 24 1 Total Ps. 70,076 Ps. 13,631 Ps. 5,066 Ps. 85,651 Transactions Revenues Other Purchases Interest Consulting Asset Other For the year ended December 31, 2019 U.S. dollars Ps. 5,487 Ps. 5,612 Ps. 17,941 Ps. 2,183 Ps. 718 Ps. 3,388 Ps. 4,348 Euros — — 538 397 33 5 2 Other currencies 1 982 — — 2 — 132 Total Ps. 5,488 Ps. 6,594 Ps. 18,479 Ps. 2,580 Ps. 753 Ps. 3,393 Ps. 4,482 For the year ended December 31, 2018 U.S. dollars Ps. 7,228 Ps. 130 Ps. 21,460 Ps. 2,309 Ps. 752 Ps. 2,166 Ps. 2,676 Euros — — 63 434 20 — 1 Other currencies — 9 — — 2 — — Total Ps. 7,228 Ps. 139 Ps. 21,523 Ps. 2,743 Ps. 774 Ps. 2,166 Ps. 2,677 For the year ended December 31, 2017 U.S. dollars Ps. 1,909 Ps. 1,677 Ps. 16,320 Ps. 2,534 Ps. 267 Ps. 272 Ps. 4,052 Euros — 2 87 452 23 4 20 Other currencies — — — — 12 — — Total Ps. 1,909 Ps. 1,679 Ps. 16,407 Ps. 2,986 Ps. 302 Ps. 276 Ps. 4,072 Mexican peso exchange rates effective at the dates of the consolidated statements of financial position and at the issuance date of the Company’s consolidated financial statements were as follows: December 31, April 24 2019 2018 2020 U.S. dollar 18.8452 19.6829 24.5 883 Euro 21. 1 22.5383 26. 5 50 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Employee Benefits | Note 17. Employee Benefits The Company has various labor liabilities for employee benefits in connection with pension, seniority and post-retirement medical benefits. Benefits vary depending upon the country where the individual employees are located. Presented below is a discussion of the Company’s labor liabilities in Mexico, which comprise the substantial majority of those recorded in the consolidated financial statements. 17.1 Assumptions The Company annually evaluates the reasonableness of the assumptions used in its labor liability for post-employment and other non-current Actuarial calculations for pension and retirement plans, seniority premiums and post-retirement medical benefits, as well as the associated cost for the period, were determined using the following long-term assumptions for Mexico: Mexico December 31, December 31, December 31, Financial: Discount rate used to calculate the defined benefit obligation 7.50 % 9.40 % 7.60 % Salary increase 4.50 % 4.60 % 4.50 % Future pension increases 3.50 % 3.60 % 3.50 % Healthcare cost increase rate 5.10 % 5.10 % 5.10 % Biometric: Mortality (1) EMSSA 2009 EMSSA 2009 EMSSA 2009 Disability (2) IMSS-97 IMSS-97 IMSS-97 Normal retirement age 60 years 60 years 60 years Employee turnover table (3) BMAR 2007 BMAR 2007 BMAR 2007 Measurement date December: (1) EMSSA. Mexican Experience of social security. (2) IMSS. Mexican Experience of Instituto Mexicano del Seguro Social. (3) BMAR. Actuary experience. In Mexico, the methodology used to determine the discount rate was the Yield or Internal Rate of Return (IRR) which involves a yield curve. In this case, the expected rates of each period were taken from a yield curve of Mexican Federal Government Treasury Bonds (known as CETES in Mexico) because there is no deep market in high quality corporate obligations in Mexican pesos. In Mexico upon retirement, the Company purchases an annuity for the employee, which will be paid according to the option chosen by the employee. Based on these assumptions, the amounts of benefits expected to be paid out in the following years are as follows: Pension and Seniority Post-Retirement Total 2020 Ps. 767 Ps. 129 Ps. 20 Ps. 916 2021 332 111 21 464 2022 340 107 22 469 2023 414 106 22 542 2024 405 107 23 535 2025 to 2029 3,192 594 124 3,910 17.2 Balances of the liabilities for employee benefits December 31, 2019 December 31, Pension and Retirement Plans: Defined benefit obligation Ps. 7,193 Ps. 6,189 Pension plan funds at fair value (2,678 ) (2,501 ) Net defined benefit liability Ps. 4,515 Ps. 3,688 Seniority Premiums: Defined benefit obligation Ps. 1,237 Ps. 772 Seniority premium plan funds at fair value (127 ) (111 ) Net defined benefit liability Ps. 1,110 Ps. 661 Postretirement Medical Services: Defined benefit obligation Ps. 797 Ps. 418 Medical services funds at fair value (75 ) (68 ) Net defined benefit liability Ps. 722 Ps. 350 Total Employee Benefits Ps. 6,347 Ps. 4,699 17.3 Trust assets Trust assets consist of fixed and variable return financial instruments recorded at fair value (Level 1), which are invested as follows: December 31, December 31, Fixed return: Traded securities 9 % 19 % Bank instruments 23 % 6 % Federal government instruments of the respective countries 33 % 60 % Variable return: Publicly traded shares 35 % 15 % 100 % 100 % In Mexico, the regulatory framework for pension plans is established in the Income Tax Law and its Regulations, the Federal Labor Law and the Mexican Social Security Institute Law. None of these laws establish minimum funding levels or a minimum required level of contributions. In Mexico, the Income Tax Law requires that, in the case of private plans, certain notifications must be submitted to the authorities and a certain level of instruments must be invested in Federal Government securities among others. The Company’s various pension plans have a technical committee that is responsible for verifying the correct operation of the plan with regard to the payment of benefits, actuarial valuations of the plan, and supervise the trustee. The committee is responsible for determining the investment portfolio and the types of instruments the fund will be invested in. This technical committee is also responsible for reviewing the correct operation of the plans in all of the countries in which the Company has these benefits. The risks related to the Company’s employee benefit plans are primarily attributable to the plan assets. The Company’s plan assets are invested in a diversified portfolio, which considers the term of the plan so as to invest in assets whose expected return coincides with the estimated future payments. Since the Mexican Tax Law limits the plan asset investment to 10% for related parties, this risk is not considered to be significant for purposes of the Company’s Mexican subsidiaries. In Mexico, the Company’s policy is to invest at least 30% of the fund assets in Mexican Federal Government instruments. Guidelines for the target portfolio have been established for the remaining percentage and investment decisions are made to comply with these guidelines insofar as the market conditions and available funds allow. In Mexico, the amounts and types of securities of the Company in related parties included in portfolio fund are as follows: December 31, December 31, Debt: El Puerto de Liverpool, S.A.B. de C.V. Ps. 30 Ps. 30 Grupo Industrial Bimbo, S.A.B. de C. V. 31 27 BBVA Bancomer, S.A de C.V. 20 19 Grupo Financiero Banorte, S.A.B. de C.V. 8 8 Grupo Financiero Scotiabank Inverlat, S.A. de C.V. 10 — Grupo Televisa, S.A.B. de C.V. — 45 Gentera, S.A.B. de C.V. — 4 Equity: CEMEX, S.A.B. de C.V. 12 3 Alfa, S.A.B. de C.V. 6 — El Puerto de Liverpool, S.A.B. de C.V. 2 3 Others 3 — Grupo Televisa, S.A.B. de C.V. — 1 Grupo Aeroportuario del Suereste, S.A.B. de C.V. — 2 For the years ended December 31, 2019 and 2018, the Company did not make significant contributions to the plan assets and does not expect to make material contributions to the plan assets during the following fiscal year. There are no restrictions placed on the trustee’s ability to sell those securities. As of December 31, 2019 and 2018, the plan assets did not include securities of the Company in portfolio funds. 17.4 Amounts recognized in the consolidated income statements and the consolidated statement of comprehensive income Income Statement AOCI (1) December 31, 2019 Current Past Service Gain or Net Interest on Remeasurements Pension and retirement plans Ps. 279 Ps. (45 ) Ps. 2 Ps. 290 Ps. 1,608 Seniority premiums 139 161 — 57 162 Postretirement medical services 15 — — 32 396 Total Ps. 433 Ps. 116 Ps. 2 Ps. 379 Ps. 2,166 December 31, 2018 Pension and retirement plans Ps. 318 Ps. — Ps. (5 ) Ps. 304 Ps. 668 Seniority premiums 125 — (8 ) 49 (63 ) Postretirement medical services 25 — (1 ) 34 41 Total Ps. 468 Ps. — Ps. (14 ) Ps. 387 Ps. 646 December 31, 2017 Current Past Service Gain or Net Interest on Remeasurements Pension and retirement plans Ps. 244 Ps. 10 Ps. (2 ) Ps. 248 Ps. 1,061 Seniority premiums 106 — (1 ) 41 46 Postretirement medical services 24 — — 30 184 Total Ps. 374 Ps. 10 Ps. (3 ) Ps. 319 Ps. 1,291 (1) Amounts accumulated in other comprehensive income as of the end of the period. For the years ended December 31, 2019, 2018 and 2017, labor costs of Ps.433, Ps.468 and Ps.374 have been included in the consolidated income statements under the allocation of costs of goods sold, administrative expenses and selling expenses. Remeasurements of the net defined benefit liability recognized in accumulated other comprehensive income are as follows: December 31, 2019 December 31, December 31, Amount accumulated in other comprehensive income as of the beginning of the period, net of tax Ps. 475 Ps. 892 Ps. 966 Actuarial (gains) arising from exchange rates (30 ) (21 ) (2 ) Remeasurements during the year, net of tax 100 221 295 Actuarial losses and (gains) arising from changes in financial assumptions 1,071 (617 ) (367 ) Effect on settlement 8 — — Amount accumulated in other comprehensive income as of the end of the period, net of tax Ps. 1,624 Ps. 475 Ps. 892 Remeasurements of the net defined benefit liability include the following: • The return on plan assets, excluding amounts included in net interest expense. • Actuarial gains and losses arising from changes in demographic assumptions. • Actuarial gains and losses arising from changes in financial assumptions. 17.5 Changes in the balance of the defined benefit obligation for post-employment December 31, December 31, December 31, Pension and Retirement Plans: Initial balance Ps. 6,189 Ps. 7,370 Ps. 5,702 Current service cost 279 318 341 Past service (credit) cost (45 ) — 10 Interest expense 530 484 491 Settlement / Curtailment 2 (5 ) (2 ) Remeasurements of the net defined benefit obligation 859 (740 ) 263 Foreign exchange loss (gain) (69 ) (86 ) (79 ) Benefits paid (582 ) (450 ) (550 ) (Derecognition) acquisitions 30 (702 ) 1,194 Ending balance Ps. 7,193 Ps. 6,189 Ps. 7,370 Seniority Premiums: Initial balance Ps. 772 Ps. 783 Ps. 663 Current service cost 139 125 106 Past service cost 161 — — Interest expense 68 57 49 Settlement — (8 ) (1 ) Remeasurements of the net defined benefit obligation 230 (115 ) 28 Benefits paid (133 ) (77 ) (68 ) Acquisitions — 7 6 Ending balance Ps. 1,237 Ps. 772 Ps. 783 Postretirement Medical Services: Initial balance Ps. 418 Ps. 524 Ps. 460 Current service cost 15 25 24 Interest expense 38 39 34 Curtailment / Settlement — (1 ) — Remeasurements of the net defined benefit obligation 356 (143 ) 32 Benefits paid (30 ) (26 ) (26 ) Ending balance Ps. 797 Ps. 418 Ps. 524 17.6 Changes in the balance of plan assets December 31, December 31, December 31, Total Plan Assets: Initial balance Ps. 2,680 Ps. 3,304 Ps. 2,378 Actual return on trust assets 174 47 213 Foreign exchange loss (gain) 2 (1 ) 86 Life annuities 24 35 65 Benefits paid — (1 ) (136 ) (Derecognition) acquisitions — (704 ) 698 Ending balance Ps. 2,880 Ps. 2,680 Ps. 3,304 As a result of the Company’s investments in life annuities plan, management does not expect it will need to make material contributions to plan assets in order to meet its future obligations. 17.7 Variation in assumptions The Company decided that the relevant actuarial assumptions that are subject to sensitivity and valuated through the projected unit credit method, are the discount rate, the salary increase rate and healthcare cost increase rate. The reasons for choosing these assumptions are as follows: • Discount rate: The rate that determines the value of the obligations over time. • Salary increase rate: The rate that considers the salary increase which implies an increase in the benefit payable. • Healthcare cost increase rate: The rate that considers the trends of health care costs which implies an impact on the postretirement medical service obligations and the cost for the year. The following table presents the amount of defined benefit plan expense and OCI impact in absolute terms of a variation of 1% in the assumptions on the net defined benefit liability associated with the Company’s defined benefit plans. The sensitivity of this 1% on the significant actuarial assumptions is based on a projected long-term discount rates for Mexico and a yield curve projection of long-term Mexican government bonds—CETES: +1%: Income Statement OCI (1) Discount rate used to calculate the defined benefit obligation Current Gain or Loss Effect of Net Remeasurements Pension and retirement plans Ps. 180 Ps. 1 Ps. 237 Ps. 1,379 Seniority premiums 283 — 52 147 Postretirement medical services 6 — 29 335 Total Ps. 469 Ps. 1 Ps. 318 Ps. 1,861 Expected salary increase Pension and retirement plans Ps. 205 Ps. 2 Ps. 329 Ps. 1,493 Seniority premiums 320 — 62 178 Total Ps. 525 Ps. 2 Ps. 391 Ps. 1,671 Assumed rate of increase in healthcare costs Postretirement medical services Ps. 8 Ps. — Ps. 40 Ps. 431 +1%: Discount rate used to calculate the defined benefit obligation Current Gain or Loss Effect of Net Remeasurements Pension and retirement plans Ps. 199 Ps. 2 Ps. 356 Ps. 1,528 Seniority premiums 317 — 63 1 Postretirement medical services 8 — 41 429 Total Ps. 524 Ps. 2 Ps. 460 Ps. 1,958 Expected salary increase Pension and retirement plans Ps. 178 Ps. 1 Ps. 267 Ps. 1,408 Seniority premiums 281 — 53 147 Total Ps. 459 Ps. 1 Ps. 320 Ps. 1,555 Assumed rate of increase in healthcare costs Postretirement medical services Ps. 6 Ps. — Ps. 30 Ps. 333 (1) Amounts accumulated in other comprehensive income as of the end of the period. 17.8 Employee benefits expense For the years ended December 31, 2019, 2018 and 2017, employee benefits expenses recognized in the consolidated income statements as cost of goods sold, administrative and selling expenses are as follows: 2019 2018 2017 Wages and salaries Ps. 64,776 Ps. 58,745 Ps. 51,874 Social security costs 11,494 10,486 9,800 Employee profit sharing 1,205 1,294 1,209 Post-employment benefits 795 842 700 Share-based payments 200 405 351 Termination benefits 169 132 159 Ps. 78,639 Ps. 71,904 Ps. 64,093 |
Bonus Programs
Bonus Programs | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Bonus Programs | Note 18. Bonus Programs 18.1 Quantitative and qualitative objectives The bonus program for executives is based on complying with certain goals established annually by management, which include quantitative and qualitative objectives, and special projects. The quantitative objectives represent approximately 50% of the bonus and are based on the Economic Value Added (“EVA”) methodology. The objective established for the executives at each entity is based on a combination of the EVA generated per entity and the EVA generated by the Company, calculated at approximately 70% and 30%, respectively. The qualitative objectives and special projects represent the remaining 50% of the annual bonus and are based on the critical success factors established at the beginning of the year for each executive. The bonus amount is determined based on each eligible participant’s level of responsibility and based on the EVA generated by the applicable business unit the employee works for. This formula is established by considering the level of responsibility within the organization, the employees’ evaluation and competitive compensation in the market. The bonus is paid to the eligible employee on an annual basis and after withholding applicable taxes. 18.2 Share-based payment bonus plan The Company has implemented a stock incentive plan for the benefit of its senior executives. As discussed above, this plan uses as its main evaluation metric the EVA. Under the EVA stock incentive plan, eligible employees are entitled to receive a special annual bonus (fixed amount), to be paid in shares of FEMSA or Coca-Cola FEMSA, as applicable or stock options (the plan considers providing stock options to employees; however, since inception only shares of FEMSA or Coca-Cola FEMSA have been granted). The plan is managed by FEMSA’s chief executive officer (“CEO”), with the support of the board of directors, together with the CEO of the respective sub-holding sub-holding six-year The Company contributes the individual employee’s special bonus (after taxes) in cash to the Administrative Trust (which is controlled and consolidated by FEMSA), who then uses the funds to purchase FEMSA or Coca-Cola FEMSA shares (as instructed by the Administrative Trust’s Technical Committee), which are then allocated to such employee. The Administrative Trust tracks the individual employees’ account balance. FEMSA created the Administrative Trust with the objective of conducting the purchase of FEMSA and Coca-Cola FEMSA shares by each of its subsidiaries with eligible executives participating in the stock incentive plan. The Administrative Trust’s objectives are to acquire FEMSA shares or shares of Coca-Cola FEMSA and to manage the shares granted to the individual employees based on instructions set forth by the Technical Committee. Once the shares are acquired following the Technical Committee’s instructions, the Administrative Trust assigns to each participant their respective rights. As the trust is controlled and therefore consolidated by FEMSA, shares purchased in the market and held within the Administrative Trust are presented as treasury stock (as it relates to FEMSA’s shares) or as a reduction of the noncontrolling interest (as it relates to Coca-Cola FEMSA’s shares) in the consolidated statement of changes in equity, on the line issuance (purchase) of shares associated with share-based payment plans. Should an employee leave prior to their shares vesting, they would lose the rights to such shares, which would then remain within the Administrative Trust and be able to be reallocated to other eligible employees as determined by the Company. The incentive plan target is expressed in months of salary, and the final amount payable is computed based on a percentage of compliance with the goals established every year. For the years ended December 31, 2019, 2018 and 2017, the compensation expense recorded in the consolidated income statement amounted to Ps. 610, Ps. 401 and Ps. 351, respectively. All shares held in the Administrative Trust are considered outstanding for diluted earnings per share purposes and dividends on shares held by the trust are charged to retained earnings. As of December 31, 2019 and 2018, the number of shares held by the trust associated with the Company’s share-based payment plans are as follows: Number of Shares FEMSA UBD KOF UBL 2019 2018 2019 2018 Beginning balance 2,278,460 2,945,209 697,226 935,899 Shares acquired by the administrative trust to employees 1,441,838 913,846 456,077 262,909 Shares released from administrative trust to employees upon vesting (1,470,633 ) (1,580,595 ) (400,456 ) (501,582 ) Ending balance 2,249,665 2,278,460 752,847 697,226 |
Bank Loans and Notes Payable
Bank Loans and Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Bank Loans and Notes Payable | Note 19. Bank Loans and Notes Payable At December 31, (1) (in millions 2020 2021 2022 2023 2024 2025 Carrying Fair Carrying (1) Short-term debt: Fixed rate debt: Colombian pesos Bank loans Ps. 769 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 769 Ps. 769 Ps. — Interest rate 5.1 % — — — — — 5.1 % — — Argentine pesos Bank loans 126 — — — — — 126 126 157 Interest rate 63.5 % — — — — — 63.5 % — 36.8 % Chilean pesos Bank loans 977 — — — — — 977 977 594 Interest rate 2.6 % — — — — — 2.6 % — 3.2 % U.S. dollars Bank loans 1,038 — — — — — 1,038 1,038 — Interest rate 2.6 % — — — — — 2.6 % — — Capital leases — — — — — — — — 10 Interest rate — — — — — — — — 3.3 % Uruguayan pesos Bank loans 63 — — — — — 63 63 771 Interest rate 11.6 % — — — — — 11.6 % — 10 % Variable rate debt: Mexican pesos x Bank loans 100 — — — — — 100 100 450 Interest rate 7.9 % — — — — — 7.9 % — 9.2 % Colombian pesos Bank loans 431 — — — — — 431 431 454 Interest rate 4.7 % — — — — — 4.7 % — 5.6 % Argentine pesos Bank loans 32 — — — — — 32 32 — Interest rate 54.3 % — — — — — 54.3 % — — Brazilian reals Bank loans 399 — — — — — 399 399 — Interest rate 9.4 % — — — — — 9.4 % — — Total short-term debt Ps. 3,935 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 3,935 Ps. 3,935 Ps. 2,436 (in millions 2020 2021 2022 2023 2024 2025 Carrying Fair Carrying (1) Long-term debt: Fixed rate debt: Euro Senior unsecured notes Ps. — Ps. — Ps. — Ps. 21,046 Ps. — Ps. — Ps. 21,046 Ps. 22,181 Ps. 22,439 Interest rate — — — 1.7 % — — 1.7 % — 1.7 % U.S. dollars Yankee bond 9,421 — — 16,840 — 11,314 37,575 41,231 39,204 Interest rate 4.6 % — — 3.9 % — 5.3 % 4.5 % — 4.5 % U.S. dollars Promissory Note — — — — — — — — 4,652 Interest rate (1) — — — — — — — — 0.4 % Bank of NY — — — 5,593 — — 5,593 5,715 5,849 Interest rate (1) — — — 2.9 % — — 2.9 % — 2.9 % Bank of NY — — — — — 12,943 12,943 14,611 13,504 Interest rate (1) — — — — — 4.4 % 4.4 % — 4.4 % Bank loans 439 437 437 436 436 — 2,185 2,185 — Interest rate 3.6 % 3.6 % 3.6 % 3.6 % 3.6 % — 3.6 % — — Mexican pesos Domestic senior notes — 2,499 — 7,496 — 8,489 18,484 18,066 18,481 Interest rate — 8.3 % — 5.5 % — 7.9 % 6.9 % — 6.9 % Bank loans 49 31 20 12 3 — 115 116 77 Interest rate 8.2 % 9.3 % 11.0 % 11.0 % 11.0 % — 9.3 % — 6.4 % Brazilian reais Bank loans 118 197 61 35 23 — 434 434 545 Interest rate 5.9 % 8.8 % 6.1 % 6.4 % 6.6 % — 7.3 % — 6.0 % Chilean pesos Capital leases 26 14 — — — — 40 39 — Interest rate 3.5 % 3.2 % — — — — 3.4 % — — Uruguayan pesos Bank loans 477 788 — — — — 1,265 1,265 573 Interest rate 10.2 % 9.9 % — — — — 5.8 % — 10.2 % Subtotal Ps. 10,530 Ps. 3,966 Ps. 518 Ps. 51,458 Ps. 462 Ps. 32,746 Ps. 99,680 Ps. 105,842 Ps. 105,405 (1) All interest rates shown in this table are weighted average contractual annual rates. (in millions 2020 2021 2022 2023 2024 2025 Carrying Fair Carrying (1) Variable rate debt: U.S. dollars Bank loans Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 4,025 Interest rate (1) — — — — — — — — 3.3 % Mexican pesos Domestic senior notes — — 1,459 — — — 1,459 1,385 1,497 Interest rate (1) — — 8.0 % — — — 8.0 % — 8.6 % Bank Loans 263 119 81 34 9 9,358 9,864 9,864 10,731 Interest rate (1) 8.5 % 9.0 % 8.9 % 9.0 % 9.5 % 8.2 % 8.4 % — 8.6 % Brazilian reais Bank loans 184 52 6 — — — 242 242 505 Interest rate 7.8 % 7.8 % 7.8 % — — — 7.8 % — 9.5 % Notes payable (2) — — — — — — — — 5 Interest rate — — — — — — — — 0.4 % Colombian pesos Bank loans 417 4 1 — — — 422 422 848 Interest rate 5.7 % 6.8 % 6.8 % — — — 5.7 % — 5.7 % Chilean pesos Bank loans 875 577 593 304 — — 2,349 2,348 3,212 Interest rate 3.9 % 4.0 % 4.3 % 4.1 % — — 4.1 % — 4.1 % Subtotal Ps. 1,739 Ps. 752 Ps. 2,140 Ps. 338 Ps. 9 Ps. 9,358 Ps. 14,336 Ps. 14,261 Ps. 20,823 Total long-term debt Ps. 12,269 Ps. 4,718 Ps. 2,658 Ps. 51,796 Ps. 471 Ps. 42,104 Ps. 114,016 Ps. 120,103 Ps. 126,228 Current portion of long term debt (12,269 ) (11,238 ) Ps. 101,747 Ps. 114,990 (1) All interest rates shown in this table are weighted average contractual annual rates. (2) Promissory note denominated and payable in Brazilian reais; however, it is linked to the performance of the exchange rate between the Brazilian real and the U.S. dollar. As a result, the principal amount under the promissory note may be increased or reduced based on the depreciation or appreciation of the Brazilian real relative to the U.S. dollar. Hedging Derivative Financial Instruments (1) 2020 2021 2022 2023 2024 2025 and Total 2019 Total (notional amounts in millions of Mexican pesos) Cross currency swaps: U.S. dollars to Mexican pesos Fixed to variable (3) Ps. — Ps. — Ps. — Ps. 11,403 Ps. — — Ps. 11,403 Ps. 11,403 Interest pay rate — — — 8.8 % — — 8.8 % 9.8 % Interest receive rate — — — 4.0 % — — 4.0 % 4.0 % Fixed to fixed 9,423 — — 2,963 — 6,596 18,982 19,768 Interest pay rate 9.0 % — — 7.6 % — 9.7 % 9.0 % 9.1 % Interest receive rate 3.9 % — — 3.9 % — 4.0 % 3.9 % 3.9 % Fixed to fixed (2) Interest pay rate — — — — — 9.4 % 9.4 % — Interest receive rate — — — — — 4.4 % 4.4 % — U.S. dollars to Brazilian reais Fixed to variable — — — — — — — 4,652 Interest pay rate — — — — — — — 4.7 % Interest receive rate — — — — — — — 0.4 % Fixed to fixed 4,365 — — — — — 4,365 4,559 Interest pay rate 8.3 % — — — — — 8.3 % 8.3 % Interest receive rate 2.9 % — — — — — 2.9 % 2.9 % Variable to fixed — — — 9,046 — — 9,046 13,483 Interest pay rate — — — 9.5 % — — 9.5 % 9.0 % Interest receive rate — — — 3.9 % — — 3.9 % 3.6 % Chilean pesos Variable to fixed 163 — — — — — 163 364 Interest pay rate 6.9 % — — — — — 6.9 % 6.9 % Interest receive rate 4.7 % — — — — — 4.7 % 4.6 % Interest rate swap: Mexican pesos Variable to fixed rate: — 405 414 1,367 2,167 — 4,353 2,847 Interest pay rate — 7.6 % 6.6 % 5.8 % 3.6 % — 4.9 % 6.3 % Interest receive rate — 2.8 % 4.9 % 4.1 % 3.7 % — 3.9 % 4.0 % Variable to fixed rate (3) Interest pay rate — — — 7.2 % — — 7.2 % 7.2 % Interest receive rate — — — 8.8 % — — 8.8 % 9.8 % (1) All interest rates shown in this table are weighted average contractual annual rates. (2) Cross Currency swaps which covers U.S. dollars to Mexican pesos with a notional of Ps.8,869, that have a starting date in 2023; receiving a fixed rate of 4.4% and pay a variable rate of 9.4%. (3) Interest rate swaps with a notional amount of Ps. 11,403 that receive a variable rate of 8.8% and pay a fixed rate of 7.2%; joined with a cross currency swap, which covers U.S. dollars to Mexican pesos, that receives a fixed rate of 4.0% and pay a variable rate of 8.8%. For the years ended December 31, 2019, 2018 and 2017, the interest expense is comprised as follows: 2019 2018 2017 Interest on debts and borrowings Ps. 6,434 Ps. 6,760 Ps. 6,377 Capitalized interest — (5 ) (10 ) Finance charges for employee benefits 382 373 317 Derivative instruments 2,300 2,649 4,339 Finance operating charges 243 48 69 Finance charges payable for leases 4,774 — — Ps. 14,133 Ps. 9,825 Ps. 11,092 In March 14, 2016, the Company issued long-term debt on the Irish Stock Exchange (“ISE”) in the amount of €. 1,000, which was made up of senior notes with a maturity of 7 years, a fixed interest rate of 1.75% and a spread of 155 basis points over the relevant benchmark mid-swap, non-derivative . Coca-Cola FEMSA has the following bonds: a) registered with the Mexican stock exchange: i) Ps. 2,500 (nominal amount) with a maturity date in 2021 and fixed interest rate of 8.27%; ii) Ps. 7,500 (nominal amount) with a maturity date in 2023 and fixed interest rate of 5.46%; iii) Ps. 1,500 (nominal amount) with a maturity date 2022 and floating interest rate of TIIE + 0.25%; and iv) Ps. 8,500 (nominal amount) with a maturity date 2027 and fixed interest rate of 7.87%. b) registered with the SEC: i) Senior notes of U.S. $500 with interest at a fixed rate of 4.63% and maturity date on February 15, 2020; ii) Senior notes of U.S. $900 with interest at a fixed rate of 3.88% and maturity date on November 26, 2023; iii) Senior notes of U.S. $600 with interest at a fixed rate of 5.25% and maturity date on November 26, 2043. The mentioned bonds are guaranteed by Coca-Cola FEMSA subsidiaries: Propimex, S. de R.L. de C.V., Comercializadora La Pureza de Bebidas, S. de R.L. de C.V., Controladora Interamericana de Bebidas, S. de R.L. de C.V., Grupo Embotellador Cimsa, S. de R.L. de C.V., Refrescos Victoria del Centro, S. de R.L. de C.V., Distribuidora y Manufacturera del Valle de Mexico, S. de R.L. de C.V (as successor guarantor of Servicios Integrados Inmuebles del Golfo, S. de R.L. de C.V.) and Yoli de Acapulco, S. de R.L. de C.V. (“Guarantors”). During 2018 Coca-Cola FEMSA had credit contracts in Mexican and Uruguayan peso with some banks for Ps. 10,100 and Ps. 1,344, respectively. On November 26, 2018, The Company paid the total balance of its bond in USD for USD 445 million and the total balance of Mexican debt for Ps. 10,100. During 2019 Coca-Cola FEMSA celebrated bank loans in Mexico for an amount of Ps. 9,400 at an interest rate of 8.39% and 7.91%, such loans were used to settled bank loans denominated in USD and for general corporate purposes. Additionally, the Company obtained during 2019 bank loans in Uruguay, Colombia and Argentina for an amount of Ps. 1,670. The Company has financing from different institutions under agreements that stipulate different restrictions and covenants, which mainly consist of maximum levels of leverage and capitalization as well as minimum consolidated net worth and debt and interest coverage ratios. As of the date of these consolidated financial statements, the Company was in compliance with all restrictions and covenants contained in its financing agreements. 19.1 Reconciliation of liabilities arising from financing activities Carrying Cash Flows Non-cash Carrying Value at Acquisition New leases Foreign Others Bank loans Ps. 22,944 Ps. (2,999 ) Ps. 1,917 Ps. — Ps. (397 ) Ps. (658 ) Ps. 20,807 Notes payable 105,720 (5,022 ) — — (1,244 ) (2,310 ) 97,144 Total liabilities from financing activities 128,664 (8,021 ) 1,917 — (1,641 ) (2,968 ) 117,951 Financial leases 50,220 (8,848 ) 2,187 7,490 (10 ) 3,640 54,679 Total financing activities Ps. 178,884 Ps. (16,869 ) Ps. 4,104 Ps. 7,490 Ps. (1,651 ) Ps. 672 Ps. 172,630 Carrying Cash Flows Non-cash Carrying Value at Acquisition New leases Foreign Others Bank loans Ps. 13,669 Ps. 8,313 Ps. 1,147 Ps. — Ps. 417 Ps. (602 ) Ps. 22,944 Notes payable 117,551 (9,314 ) — — (769 ) (1,840 ) 105,628 Lease liabilities 128 (26 ) — — (10 ) — 92 Total liabilities from financing activities 131,348 (1,027 ) 1,147 — (362 ) (2,442 ) 128,664 Carrying Cash Flows Non-cash Carrying Value at Acquisition New leases Foreign Others Bank loans Ps. 14,497 Ps. (949 ) Ps. — Ps. — Ps. 190 Ps. (69 ) Ps. 13,669 Notes payable 123,859 (3,574 ) — — 4,954 (7,688 ) 117,551 Lease liabilities 892 (8 ) — — — (756 ) 128 Total liabilities from financing activities 139,248 (4,531 ) — — 5,144 (8,513 ) 131,348 |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other Income and Expenses | Note 20. Other Income and Expenses 2019 2018 2017 Gain on sale of shares Ps. — Ps. — Ps. 123 Gain on sale of Heineken Group shares (see Note 4.2) — — 29,989 Gain on sale of other assets — 344 — Gain on sale of long-lived assets — 174 210 Sale of waste material 21 13 3 Insurance rebates — 10 6 Foreign exchange gain 26 123 — Recoveries of prior years (1) 896 — — Others 70 9 1,620 Other income Ps. 1,013 Ps. 673 Ps. 31,951 Contingencies associated with prior acquisitions or disposals Ps. 149 Ps. 138 Ps. 39 Loss on sale of property, plant and equipment 67 — — Loss on sale of other assets — — 148 Recoveries of prior years 44 116 35 Impairment of long-lived assets (2) 1,018 432 2,063 Disposal of long-lived assets (3) 861 518 451 Suppliers provisions — — 398 Foreign exchange losses related to operating activities — — 2,524 Contingencies 589 518 636 Severance payments (4) 1,207 264 243 Donations 489 528 242 Legal fees and other expenses from past acquisitions 17 149 612 Venezuela deconsolidation effect — — 26,123 Other 464 284 352 Other expenses Ps. 4,905 Ps. 2,947 Ps. 33,866 (1) Following a favorable decision from Brazilian tax authorities received during 2019, Coca-Cola FEMSA has been entitled to reclaim indirect tax payments made in prior years in Brazil, resulting in the recognition of a tax credit and a positive effect in the operating revenues and other income captions of the condensed consolidated income statements. See Note 25.1.1. (2) Includes impairment loss related to Compañía Panameña de Bebibas, S.A.P.I. de C.V., for an amount of Ps. 948 and Ps. 432 million in 2019 and 2018, respectively (see Note 10), and impairment loss in Venezuela of Ps. 2,053 in 2017 (see Note 3.3). (3) Charges related to fixed assets retirement from ordinary operations and other long-lived assets. (4) During 2019, the Company incurred restructuring costs related to some of their operations as part of an efficiency program. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial Instruments | Note 21. Financial Instruments Fair Value of Financial Instruments The Company’s financial assets and liabilities that are measured at fair value are based on level 2 applying the income approach method, which estimates the fair value based on expected cash flows discounted to net present value. The following table summarizes the Company’s financial assets and liabilities measured at fair value, as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Level 1 Level 2 Level 1 Level 2 Financial instrument (current asset) 91 917 — 735 Financial instrument (non-current 2,880 21,570 2,680 10,752 Financial instrument (current liability) 47 801 236 147 Financial instrument (non-current — 1,672 — 1,262 21.1 Total debt The fair value of bank loans is calculated based on the discounted value of contractual cash flows whereby the discount rate is estimated using rates currently offered for debt of similar amounts and maturities, which is considered to be level 2 in the fair value hierarchy. The fair value of the Company’s publicly traded debt is based on quoted market prices as of December 31, 2018 and 2017, which is considered to be level 1 in the fair value hierarchy. 2019 2018 Carrying value Ps. 117,951 Ps. 128,664 Fair value 124,038 128,741 21.2 Interest rate swaps The Company uses interest rate swaps to offset the interest rate risk associated with its borrowings, pursuant to which it pays amounts based on a fixed rate and receives amounts based on a floating rate. These instruments have been designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value. The fair value is estimated using formal technical models. The valuation method involves discounting to present value the expected cash flows of interest, calculated from the rate curve of the cash flow currency, and expresses the net result in the reporting currency. Changes in fair value are recorded in cumulative other comprehensive income, net of taxes until such time as the hedged amount is recorded in the consolidated income statements. At December 31, 2019, the Company has the following outstanding interest rate swap agreements: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 4,365 Ps. (142 ) Ps. — 2021 405 (24 ) — 2022 414 (20 ) — 2023 12,770 (79 ) 245 2024 3 — — At December 31, 2018, the Company has the following outstanding interest rate swap agreements: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 Ps. 4,032 Ps. (49 ) Ps. — 2020 4,559 (112 ) — 2021 4,548 (151 ) — 2022 617 (18 ) — 2023 13,101 (49 ) 1,143 The net effect of expired contracts treated as hedges are recognized as interest expense within the consolidated income statements. 21.3 Forward agreements to purchase foreign currency The Company has entered into forward agreements to reduce its exposure to the risk of exchange rate fluctuations between the Mexican peso and other currencies. Foreign exchange forward contracts measured at fair value are designated hedging instruments in cash flow hedges of forecast inflows in Euros and forecast purchases of raw materials in U.S. dollars. These forecast transactions are highly probable. These instruments have been designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value which is determined based on prevailing market exchange rates to terminate the contracts at the end of the period. The price agreed in the instrument is compared to the current price of the market forward currency and is discounted to present value of the rate curve of the relevant currency. Changes in the fair value of these forwards are recorded as part of cumulative other comprehensive income, net of taxes. Net gain/loss on expired contracts is recognized as part of cost of goods sold when the raw material is included in sale transaction, and as a part of foreign exchange when the inflow in Euros are received. At December 31, 2019, the Company had the following outstanding forward agreements to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 8,447 Ps. (292 ) Ps. 34 2021 215 — 27 2022 52 — Ps. 5 At December 31, 2018, the Company had the following outstanding forward agreements to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 Ps. 5,808 Ps. (65 ) Ps. 133 21.4 Options to purchase foreign currency The Company has executed call option and collar strategies to reduce its exposure to the risk of exchange rate fluctuations. A call option is an instrument that limits the loss in case of foreign currency depreciation. A collar is a strategy that combines call and put options, limiting the exposure to the risk of exchange rate fluctuations in a similar way as a forward agreement. These instruments have been designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value which is determined based on prevailing market exchange rates to terminate the contracts at the end of the period. Changes in the fair value of these options, corresponding to the intrinsic value, are initially recorded as part of “cumulative other comprehensive income”. Changes in the fair value, corresponding to the extrinsic value, are recorded in the consolidated income statements under the caption “market value gain/ (loss) on financial instruments,” as part of the consolidated net income. Net gain/(loss) on expired contracts including the net premium paid, is recognized as part of cost of goods sold when the hedged item is recorded in the consolidated income statements. At December 31, 2019, the Company paid a net premium of Ps. 43 million for the following outstanding collar options to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 107 Ps. — Ps. 2 At December 31, 2018, the Company paid a net premium of Ps. 43 million for the following outstanding collar options to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 Ps. 1,734 Ps. (33 ) Ps. 57 21.5 Cross-currency swaps The Company has contracted for a number of cross-currency swaps to reduce its exposure to risks of exchange rate and interest rate fluctuations associated with its borrowings denominated in U.S. dollars and other foreign currencies. Cross-Currency swaps contracts are designated as hedging instruments through which the Company changes the debt profile to its functional currency to reduce exchange exposure. These instruments are recognized in the consolidated statement of financial position at their estimated fair value which is estimated using formal technical models. The valuation method involves discounting to present value the expected cash flows of interest, calculated from the rate curve of the cash foreign currency, and expresses the net result in the reporting currency. These contracts are designated as financial instruments at fair value through profit or loss. The fair values changes related to those cross-currency swaps are recorded under the caption “market value gain (loss) on financial instruments,” net of changes related to the long-term liability, within the consolidated income statements. The Company has cross-currency contracts designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value. Changes in fair value are recorded in cumulative other comprehensive income, net of taxes until such time as the hedge amount is recorded in the consolidated income statement. At December 31, 2019, the Company had the following outstanding cross – currency swap agreements: Maturity Date Notional Fair Value 2019 Fair Value Asset 2020 Ps. 17,252 Ps. (307 ) Ps. 883 2021 702 — 49 2022 375 — 3 2023 23,466 (594 ) 7,122 2024 1,788 (53 ) — 2026 772 (63 ) — 2027 6,596 (843 ) — 2029 1,371 — 121 2043 8,869 — 576 At December 31, 2018, the Company had the following outstanding cross – currency swap agreements: Maturity Date Notional Fair Value Fair Value Asset 2019 Ps. 4,738 Ps. — Ps. 502 2020 18,126 (378 ) 1,015 2021 4,774 — 615 2022 396 (7 ) — 2023 23,948 (396 ) 7,818 2026 813 (154 ) — 2027 6,889 (42 ) 202 21.6 Commodity price contracts The Company has entered into various commodity price contracts to reduce its exposure to the risk of fluctuation in the costs of certain raw material. The fair value is estimated based on the market valuations to terminate the contracts at the end of the period. These instruments are designated as Cash Flow Hedges and the changes in the fair value are recorded as part of “cumulative other comprehensive income.” The fair value of expired commodity price contract was recorded in cost of goods sold where the hedged item was recorded also in cost of goods sold. At December 31, 2019, Coca-Cola FEMSA had the following sugar price contracts: Maturity Date Notional Fair Value Asset 2020 Ps. 1,554 Ps. 53 2021 Ps. 98 Ps. 15 At December 31, 2018, Coca-Cola FEMSA had the following sugar price contracts: Maturity Date Notional Fair Value Liability 2019 Ps. 1,223 Ps. (88 ) At December 31, 2019, Coca-Cola FEMSA had the following aluminum price contracts: Maturity Date Notional Fair Value Asset 2020 Ps. 394 Ps. 4 At December 31, 2018, Coca-Cola FEMSA had the following aluminum price contracts: Maturity Date Notional Fair Value Liability 2019 Ps. 265 Ps. (17 ) At December 31, 2019, Coca-Cola FEMSA had the following PX+MEG (resine) contracts: Maturity Date Notional Fair Value Liability 2020 Ps. 320 Ps. (28) At December 31, 2018, Coca-Cola FEMSA had the following PX+MEG (resine) contracts: Maturity Date Notional Fair Value Liability 2019 Ps. 1,303 Ps. (131) 21.7 Treasury Lock contracts The Company has contracted a number of treasury locks to reduce its exposure to interest rate fluctuations associated with its USD debt. These treasury locks, for accounting purposes are recorded as Cash Flow Hedges and the interest rate variation is recorded in the consolidated balance sheet as “cumulative other comprehensive income”. At December 31, 2019, the Company had the following outstanding treasury locks agreements: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 10,365 Ps. — Ps. 102 21.8 Option embedded in the Promissory Note to fund the Vonpar’s acquisition On December 6, 2016, as part of the purchase price paid for the Coca-Cola FEMSA’s acquisition of Vonpar, Spal issued and delivered a three-year promissory note to the sellers, for a total amount of 1,166 million Brazilian reais which was partially offset on November 14, 2018, as a result of the occurrence of certain contingencies for which the sellers agreed to indemnify Coca-Cola FEMSA. The promissory note beards interest at an annual rate of 0.375% and was denominated and payable in Brazilian reais,but linked to the performance of the exchange rate between the Brazilian real and the U.S. dollar. On December 6, 2019 the promissory note matured and was paid in full in cash for the outstanding amount of 1,002 million Brazilian reais, which was at the time equivalent to US $236 million (Ps. 4,670 million as of December 31, 2019). 21.9 Net effects of expired contracts that met hedging criteria Impact in Consolidated 2019 2018 2017 Cross currency swap (1) Interest expense Ps. 199 Ps. 157 Ps. 2,102 Cross currency swap (1) Foreign exchange 480 642 — Interest rate swaps Interest expense 515 — — Forward agreements to purchase foreign currency Foreign exchange (116 ) (87 ) (40 ) Commodity price contracts Cost of goods sold (391 ) (258 ) (6 ) Options to purchase foreign currency Cost of goods sold (63 ) (8 ) — Forward agreements to purchase foreign currency Cost of goods sold (163 ) 240 89 (1) This amount corresponds to the settlement of cross currency swaps portfolio in Brazil presented as part of the other financial activities. 21.10 Net effect of changes in fair value of derivative financial instruments that did not meet the hedging criteria for accounting purposes. Derivative Impact in Consolidated Income Statement 2019 2018 2017 Forward agreements to purchase foreign currency Market value gain (loss) on financial statements Ps. 4 Ps. (12 ) Ps. 12 Cross currency swaps Market value (loss) gain on financial statements Ps. (293 ) (116 ) 337 21.11 Net effect of expired contracts that did not meet the hedging criteria for accounting purposes Type of Derivatives Impact in Consolidated Income Statement 2019 2018 2017 Cross-currency swaps Market value loss on financial instruments Ps. (293 ) Ps. (186 ) Ps. (104 ) Embedded derivatives Market value gain on financial instruments 4 — 1 21.12 Risk management The Company has exposure to the following financial risks: • Market risk; • Interest rate risk; • Liquidity risk; and • Credit risk. The Company determines the existence of an economic relationship between the hedging instruments and the hedged item based on the currency, amount and timing of their respective cash flows. The Company evaluates whether the derivative designated in each hedging relationship is expected to be effective and that it has been effective to offset changes in the cash flows of the hedged item using the hypothetical derivative method. In these hedging relationships, the main sources of inefficiency are: • The effect of the credit risk of the counterparty and the Company on the fair value of foreign currency forward contracts which is not reflected in the change in the fair value of the hedged cash flows attributable to change in the types of change; and • Changes in the periodicity of covered. 21.12.1 Market risk Market risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market prices include currency risk and commodity price risk. The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and commodity prices. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk, and commodity prices risk including: • Forward Agreements to Purchase Foreign Currency in order to reduce its exposure to the risk of exchange rate fluctuations. • Cross-Currency Swaps in order to reduce its exposure to the risk of exchange rate fluctuations. • Commodity price contracts in order to reduce its exposure to the risk of fluctuation in the costs of certain raw materials. The Company tracks the fair value (mark to market) of its derivative financial instruments and its possible changes using scenario analyses. The following disclosures provide a sensitivity analysis of the market risks management considered to be reasonably possible at the end of the reporting period based on a stress test of the exchange rates according to an annualized volatility estimated with historic prices obtained for the underlying asset over a period of time, in the cases of derivative financial instruments related to foreign currency risk, which the Company is exposed to as it relates to in its existing hedging strategy: Foreign Currency Risk Change in Exchange Rate Effect on Equity 2019 FEMSA (1) +9% MXN/EUR Ps. 57 -9% MXN/EUR (57 ) +13% BRL/USD 202 -13% BRL/USD (202 ) Coca-Cola FEMSA +9% MXN/USD 739 -9% MXN/USD (739 ) +13% BRL/USD 155 -13% BRL/USD (155 ) +5% UYU/USD 23 -5% UYU/USD (23 ) +10% COP/USD 54 -10% COP/USD (54 ) +25% ARS/USD 88 -25% ARS/USD (88 ) 2018 FEMSA (1) +12 MXN/EUR Ps. 116 -12% MXN/EUR (116 ) Coca-Cola FEMSA +13% MXN/USD 668 -13% MXN/USD (668 ) +16% BRL/USD 413 -16% BRL/USD (413 ) +8% UYU/USD 46 -8% UYU/USD (46 ) +12% COP/USD 2 -12% COP/USD (2 ) +27% ARS/USD 522 -27% ARS/USD (522 ) 2017 FEMSA (1) +13% MXN/EUR Ps. 141 -13% MXN/EUR (141 ) +8% CLP/USD 2 -8% CLP/USD (2 ) Coca-Cola FEMSA +12% MXN/USD 626 -12% MXN/USD (626 ) +14% BRL/USD 234 -14% BRL/USD (234 ) +9% COP/USD 73 -9% COP/USD (73 ) +10% ARS/USD 29 -10% ARS/USD (29 ) (1) Does not include Coca-Cola FEMSA. Cross Currency Swaps (1) (2) Change in Exchange Rate Effect on Effect on 2019 FEMSA (3) +11% CLP/USD Ps. — Ps. 546 -11% CLP/USD — (546 ) +9% MXN/USD — 1,805 -9% MXN/USD — (1,805 ) +10% COP/USD — 286 -10% COP/USD — (286 ) +13% MXN/BRL — 177 -13% MXN/BRL — (177 ) Coca-Cola FEMSA +9% MXN/USD 2,315 — -9% MXN/USD (2,315 ) — +13% BRL/USD 645 — -13% BRL/USD (645 ) — 2018 FEMSA (3) +10% CLP/USD Ps. — Ps. 368 -10% CLP/USD — (368 ) +13% MXN/USD — 2,706 -13% MXN/USD — (2,706 ) +12% COP/USD — 283 -12% COP/USD — (283 ) +15% MXN/BRL — 27 -15% MXN/BRL — (27 ) Coca-Cola FEMSA +13% MXN/USD 3,130 — -13% MXN/USD (3,130 ) — +16% BRL/USD 9,068 — -16% BRL/USD (9,068 ) — 2017 FEMSA (3) +8% CLP/USD Ps. — Ps. 373 -8% CLP/USD — (373 ) +12% MXN/USD — 3,651 -12% MXN/USD — (3,651 ) +9% COP/USD — 304 -9% COP/USD — (304 ) +14% MXN/BRL — 23 -14% MXN/BRL — (23 ) Coca-Cola FEMSA +12% MXN/USD 3,540 — -12% MXN/USD (3,540 ) — +14% BRL/USD 7,483 — -14% BRL/USD (7,483 ) — (1) The sensitivity analysis effects include all subsidiaries of the Company. (2) Includes the sensitivity analysis effects of all derivative financial instruments related to foreign exchange risk. (3) Does not include Coca-Cola FEMSA. Net Cash in Foreign Currency (1) Change in Exchange Rate Effect on 2019 FEMSA (2) +9% EUR/+9 % USD Ps. 3,833 -9% EUR/ -9 % (3,833 ) Coca-Cola FEMSA +8% USD 940 -8% USD (940 ) 2018 FEMSA (2) +12% EUR/+13 % USD Ps. 8,596 -12% EUR/ -13 % (8,596 ) Coca-Cola FEMSA f+13% USD 1,868 -13% USD (1,868 ) 2017 FEMSA (2) +13% EUR/+12% USD Ps. 8,077 -13% EUR/ -12% USD (8,077 ) Coca-Cola FEMSA +12% USD 553 -12% USD (553 ) (1) The sensitivity analysis effects include all subsidiaries of the Company. (2) Does not include Coca-Cola FEMSA. Commodity Price Contracts (1) Change in Effect on 2019 Coca-Cola FEMSA Sugar - 24 % Ps. (255 ) Aluminum - 15 % Ps. (1,164 ) 2018 Coca-Cola FEMSA Sugar -30 % Ps. (341 ) Aluminum - 22 % Ps. (55 ) 2017 Coca-Cola FEMSA Sugar - % Ps. (32 ) (1) Effects on commodity price contracts are only in Coca-Cola FEMSA. 21.12.2 Interest rate risk Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because it and its subsidiaries borrow funds at both fixed and variable interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and variable rate borrowings, and by the use of the different derivative financial instruments. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied. The following disclosures provide a sensitivity analysis of the interest rate risks management considered to be reasonably possible at the end of the reporting period, which the Company is exposed to as it relates to its fixed and floating rate borrowings, which it considers in its existing hedging strategy: Interest Rate Swap (1) Change in Effect on 2019 FEMSA (2) (100 Bps. ) Ps. (432 ) Coca-Cola FEMSA (100 Bps. ) (37 ) 2018 FEMSA (2) (100 Bps. ) Ps. (359 ) Coca-Cola FEMSA (100 Bps. ) (1,976 ) 2017 FEMSA (2) (100 Bps. ) Ps. (452 ) Coca-Cola FEMSA (100 Bps. ) (234 ) (1) The sensitivity analysis effects include all subsidiaries of the Company. (2) Does not include Coca-Cola FEMSA. Interest Effect of Unhedged Portion Bank Loans 2019 2018 2017 Change in interest rate +100 Bps. +100 Bps. +100 Bps. Effect on profit loss Ps. (50 ) Ps. 145 Ps. (251 ) 21.12.3 Liquidity risk Each of the Company’s sub-holding sub-holding sub-holding sub-holdings The Company’s principal source of liquidity has generally been cash generated from its operations. The Company has traditionally been able to rely on cash generated from operations because a significant majority of the sales of Coca-Cola FEMSA and FEMSA Comercio – Proximity, FEMSA Comercio – Health and FEMSA Comercio – Fuel Divisions are on a cash or short-term credit basis, and FEMSA Comercio’s OXXO stores are able to finance a significant portion of their initial and ongoing inventories with supplier credit. The Company’s principal use of cash has generally been for capital expenditure programs, acquisitions, debt repayment and dividend payments. Ultimate responsibility for liquidity risk management rests with the Company’s board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-, medium- and long-term funding and liquidity requirements. The Company manages liquidity risk by maintaining adequate cash reserves and continuously monitoring forecast and actual cash flows, and with a low concentration of maturities per year. The Company has access to credit from national and international banking institutions in order to meet treasury needs; besides, the Company has the highest rating for Mexican companies (AAA) given by independent rating agencies, allowing the Company to evaluate capital markets in case it needs resources. As part of the Company’s financing policy, management expects to continue financing its liquidity needs with cash from operations. Nonetheless, as a result of regulations in certain countries in which the Company operates, it may not be beneficial practicable to remit cash generated in local operations to fund cash requirements in other countries. In the event that cash from operations in these countries is not sufficient to fund future working capital requirements and capital expenditures, management may decide, or be required, to fund cash requirements in these countries through local borrowings rather than remitting funds from another country. In the future the Company management may finance its working capital and capital expenditure needs with short-term or other borrowings. The Company’s management continuously evaluates opportunities to pursue acquisitions or engage in joint ventures or other transactions. We would expect to finance any significant future transactions with a combination of cash from operations, long-term indebtedness and capital stock. The Company’s sub-holding sub-holding sub-holding The Company presents the maturity dates associated with its long-term financial liabilities as of December 31, 2019, see Note 19. The Company generally makes payments associated with its long-term financial liabilities with cash generated from its operations. The following table reflects all contractually fixed pay-offs 2020 2021 2022 2023 2024 2025 and Non-derivative Notes and bonds Ps. 10,598 Ps. 1,130 Ps. 1,154 Ps. 29,446 Ps. 600 Ps. 44,328 Loans from Banks 5,745 809 902 542 4,711 — IFRS 16 lease obligation 244 153 82 35 13 — Derivative financial liabilities 1,291 1,337 1,192 (1,011 ) 671 (7,314 ) The Company generally makes payments associated with its non-current 21.12.4 Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the Company uses other publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee. The Company has a high receivable turnover; hence management believes credit risk is minimal due to the nature of its businesses, which have a large portion of their sales settled in cash. The Company’s maximum exposure to credit risk for the components of the statement of financial position at December 31, 2019 and 2018 is the carrying amounts, see Note 7. The Company manages the credit risk related to its derivative portfolio by only entering into transactions with reputable and credit-worthy counterparties as well as by maintaining in some cases a Credit Support Annex (“CSA”) that establishes margin requirements, which could change upon changes to the credit ratings given to the Company by independent rating agencies. As of December 31, 2019, the Company concluded that the maximum exposure to credit risk related with derivative financial instruments is not significant given the high credit rating of its counterparties. 21.13 Cash flows hedges As of December 31, 2019, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates as follows: Maturity 1-6 months 6-12 months More than 12 Foreign exchange currency risk Foreign exchange currency forward contracts Net exposure 4,373 2,086 — Average exchange rate MXN/USD 20.00 20.20 — Net exposure 746 378 267 Average exchange rate BRL/USD 4.05 4.19 4.44 Net exposure 220 85 — Average exchange rate COP/USD 3,491 3,460 — Net exposure 137 — — Average exchange rate ARS/USD 79.23 — — Net exposure 335 87 — Average exchange rate URY/USD 37.55 40.03 — Foreign exchange currency option contracts Net exposure 107 — — Average exchange rate COP/USD 3,252 — — Foreign exchange currency swap contracts Net exposure 9,423 — 18,428 Average exchange rate MXN/USD 19.54 — 15.93 Net exposure — 4,365 9,140 Average exchange rate BRL/USD — 3.41 4.00 Net exposure — 84 1,195 Average exchange rate BRL/MXN — 0.21 0.21 Net exposure — — 2,403 Average exchange rate COP/USD — — 3,075 Net exposure — 3,007 1,371 Average exchange rate CLP/USD — 696.02 677.00 Interest rate risk Interest rate swaps Net exposure — 4,365 — Interest rate average BRL — 8.34 % — Net exposure — — 11,403 Interest rate average MXN — — 7.17 % Net exposure — — 2,197 Average exchange rate CLP — — 6.26 % Commodities risk Aluminum 276 118 — Average price (USD/Ton) 1,796 1,812 — Sugar 1,192 361 98 Average price (USD cent/Lb) 13.09 12.73 13.45 PX+MEG 160 160 — Average price (USD /Ton) 848 848 — As of December 31, 2018, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates as follows: Maturity 1-6 months 6-12 months More than 12 Foreign exchange currency risk Foreign exchange currency forward contracts Net exposure Ps. 1,022 Ps. — Ps. — Average exchange rate MXN/EUR 23.78 — — Net exposure 3,484 683 — Average exchange rate MXN/USD 20.19 20.75 — Net exposure 805 337 — Average exchange rate BRL/USD 3.75 3.83 — Net exposure 429 63 — Average exchange rate COP/USD 2,851 2,976 — Net exposure 339 — — Average exchange rate ARS/USD 43.31 — — Net exposure 196 159 — Average exchange rate URY/USD 32.9 33.97 — Foreign exchange currency swap contracts Net exposure — — 31,172 Average exchange rate MXN/USD — — 16.08 Net exposure — 4,652 18,042 Average exchange rate BRL/USD — 3.36 3.59 Net exposure — 86 79 Average exchange rate BRL/MXN — 0.18 0.19 Net exposure — — 1,928 Average exchange rate COP/USD — — 3,043.59 Net exposure — — 3,725 Average exchange rate CLP/USD — — 693.10 Interest rate risk Interest rate swaps Net exposure — 4,013 8,594 Interest rate average BRL — 6.29 % 8.15 % Net exposure — — 11,403 Interest rate average MXN — — 7.17 % Net exposure 19 — 2,828 Average exchange rate CLP 6.45 % — 5.56 % Commodities risk Aluminum 189 75,250 — Average price (USD/Ton) 1,975 1,986 — Sugar 725 498 — Average price (USD cent/Lb) 12.86 13.11 — PX+MEG 739 565 — Average price (USD /Ton) 1,077 1,040 — As of December 31, 2019, the Company does not have any cash flows hedge exposures. As of December 31, 2018, the Company maintained the following cash flows hedge exposures: Cash flow hedge Cash flow hedge Remained balances of cash flow Foreign exchange currency risk Purchase of stock 1 22 — As of December 31, 2017, the Company maintained the following cash flows hedge exposures: Cash flow hedge Cash flow hedge Remained balances of cash flow Foreign exchange currency risk Purchase of stock — 11 — As of December 31, 2019, a reconciliation per category of equity components and an analysis of OCI components, net of tax; generated by the cash flow hedges were as follows: Hedging Costs of hedging Balances at beginning of the period Ps. 812 Ps. 12 Cash flows hedges Fair value changes: Foreign exchange currency risk – Purchase of stock (333 ) (12 ) Foreign exchange currency risk – Other stock (6,202 ) — Interest rate risk 5,327 — The amounts included in non-financial Taxes due to changes in reserves during the period 363 — Balances at the end of the period Ps. (33 ) Ps. — |
Non-ControllingInterest in Cons
Non-ControllingInterest in Consolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Non-ControllingInterest in Consolidated Subsidiaries | Note 22. Non-Controlling An analysis of FEMSA’s non-controlling December 31, December 31, Coca-Cola FEMSA Ps. 72,649 Ps. 73,776 Other 1,113 4,713 Ps. 73,762 Ps. 78,489 The changes in the FEMSA’s non-controlling 2019 2018 2017 Balance at beginning of the period Ps. 78,489 Ps. 86,621 Ps. 74,266 Net income of non-controlling 7,349 9,089 (5,202 ) Other comprehensive income (loss): (4,552 ) (4,080 ) 7,240 Exchange differences on translation of foreign operation (3,833 ) (4,016 ) 7,349 Remeasurements of the net defined benefits liability (271 ) 155 30 Valuation of the effective portion of derivative financial instruments (448 ) (219 ) (139 ) Dividends (3,945 ) (3,713 ) (3,622 ) Share based payment (12 ) 31 50 Acquisition of Socofar non-controlling (3,530 ) — — Other acquisitions and remeasurements 32 413 (50 ) (Derecognition) contribution from non-controlling — (11,140 ) 11,072 Accounting standard adoption effects (“IFRIC 23 and IFRS 9”) (69 ) (150 ) — Adoption of IAS 29 for Argentina — 1,418 — Capitalization of issued shares to former owners of Vonpar in — — 2,867 Balance at end of the period Ps. 73,762 Ps. 78,489 Ps. 86,621 Non-controlling December 31, December 31, Exchange differences on translation foreign operation Ps. (699 ) Ps. 3,134 Remeasurements of the net defined benefits liability (390 ) (119 ) Valuation of the effective portion of derivative financial instruments (611 ) (163 ) Accumulated other comprehensive income Ps. (1,700 ) Ps. 2,852 Coca-Cola FEMSA shareholders, especially the Coca-Cola Company which hold Series D shares, have some protective rights about investing in or disposing of significant businesses. However, these rights do not limit the continued normal operations of Coca-Cola FEMSA. Summarized financial information in respect of Coca-Cola FEMSA is set out below: December 31, December 31, Total current assets Ps. 56,796 Ps. 57,490 Total non-current 201,043 206,297 Total current liabilities 51,010 45,524 Total non-current 77,144 86,513 Total revenue Ps. 194,471 Ps. 182,342 Consolidated net (loss) income for continuing operations 12,630 11,704 Consolidated net income from discontinued operations — 3,366 Consolidated comprehensive income for continuing operations Ps. 5,489 Ps. 3,563 Consolidated comprehensive income from discontinued operations — 3,056 Net cash flow generated from operating activities for continuing operations 31,289 27,581 Net cash flow generated from operating activities from discontinued operations — 1,308 Net cash flow used in investing activities for continuing operations (10,744 ) (8,291 ) Net cash flow used in investing activities from discontinued operations — (962 ) Net cash flow used in financing activities for continuing operations (22,794 ) (14,235 ) Net cash flow used in financing activities from discontinued operations — (37 ) 22.1 Options embedded from past acquisitions FEMSA Comercio – Health Division entered into option transactions regarding the remaining 40% non-controlling 42-months non-controlling On December 13, 2019, the former controlling shareholders of Socofar exercised their put option to sell the remaining 40% non-controlling The former controlling shareholders of Open Market retain a put for their remaining 20% non-controlling non-controlling |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Equity | Note 23. Equity 23.1 Equity accounts The capital stock of FEMSA is comprised of 2,161,177,770 BD units and 1,417,048,500 B units. As of December 31, 2019 and 2018, the common stock of FEMSA was comprised of 17,891,131,350 common shares, without par value and with no foreign ownership restrictions. Fixed capital stock amounts to Ps. 300 (nominal value) and the variable capital may not exceed 10 times the minimum fixed capital stock amount. The characteristics of the common shares are as follows: • Series “B” shares, with unlimited voting rights, which at all times must represent a minimum of 51% of total capital stock; • Series “L” shares, with limited voting rights, which may represent up to 25% of total capital stock; and • Series “D” shares, with limited voting rights, which individually or jointly with series “L” shares may represent up to 49% of total capital stock. The Series “D” shares are comprised as follows: • Subseries “D-L” • Subseries “D-B” • The non-cumulative The Series “B” and “D” shares are linked together in related units as follows: • “B units” each of which represents five series “B” shares, and which are traded on the BMV; and • “BD units” each of which represents one series “B” share, two subseries “D-B” “D-L” As of December 31, 2019 and 2018, FEMSA’s capital stock is comprised as follows: “B” Units “BD” Units Total Units 1,417,048,500 2,161,177,770 3,578,226,270 Shares: Series “B” 7,085,242,500 2,161,177,770 9,246,420,270 Series “D” — 8,644,711,080 8,644,711,080 Subseries “D-B” — 4,322,355,540 4,322,355,540 Subseries “D-L” — 4,322,355,540 4,322,355,540 Total shares 7,085,242,500 10,805,888,850 17,891,131,350 The net income of the Company is subject to the legal requirement that 5% thereof be transferred to a legal reserve until such reserve equals 20% of common stock at nominal value. This reserve may not be distributed to shareholders during the existence of the Company, except as a stock dividend. As of December 31, 2019 and 2018, this reserve amounted to Ps. 596. Retained earnings and other reserves distributed as dividends, as well as the effects derived from capital reductions, are subject to income tax at the rate in effect at the date of distribution, except when capital reductions come from restated shareholder contributions (“CUCA”) and when the distributions of dividends come from net taxable income, denominated Cuenta de Utilidad Fiscal Neta (“CUFIN”). Dividends paid in excess of CUFIN are subject to income tax at a grossed-up The foregoing will not be applicable when distributed dividends arise from the accumulated CUFIN balances as December 31, 2013. At an ordinary shareholders’ meeting of FEMSA held on March 16, 2017, the shareholders approved a dividend ofPs. 8,636 that was paid 50% on May 5, 2017 and other 50% on November 3, 2017; and a reserve for share repurchase of a maximum of Ps. 7,000. As of December 31, 2017, the Company has not repurchased shares. Treasury shares resulted from share-based payment bonus plan are disclosed in Note 18. At an ordinary shareholders’ meeting of Coca-Cola FEMSA held on March 16, 2017, the shareholders approved a dividend of Ps. 6,991 that was paid 50% on May 3, 2017 and other 50% on November 1, 2017. The corresponding payment to the non-controlling At an ordinary shareholders’ meeting of FEMSA held on March 16, 2018, the shareholders approved a dividend ofPs. 9,220 that was paid 50% on May 4, 2018 and other 50% on November 6, 2018; and a reserve for share repurchase of a maximum of Ps. 7,000. As of December 31, 2018, the Company has not repurchased shares. Treasury shares resulted from share-based payment bonus plan are disclosed in Note 18. At an ordinary shareholders’ meeting of Coca-Cola FEMSA held on March 9, 2018, the shareholders approved a dividend of Ps. 7,038 that was paid 50% on May 3, 2018 and other 50% on November 1, 2018. The corresponding payment to the non-controlling At an ordinary shareholders’ meeting of FEMSA held on March 22, 2019, the shareholders approved a dividend ofPs. 9,692 that was paid 50% on May 7, 2019 and other 50% on November 5, 2019; and a reserve for share repurchase of a maximum of Ps. 7,000. As of December 31, 2019, the Company has not repurchased shares. Treasury shares resulted from share-based payment bonus plan are disclosed in Note 18. At an ordinary shareholders’ meeting of Coca-Cola FEMSA held on March 14, 2019, the shareholders approved a dividend of Ps. 7,437 that was paid 50% on May 3, 2019 and other 50% on November 1, 2019. The corresponding payment to the non-controlling For the years ended December 31, 2019, 2018 and 2017 the dividends declared and paid by the Company and Coca-Cola FEMSA were as follows: 2019 2018 2017 FEMSA Ps. 9,692 Ps. 9,220 Ps. 8,636 Coca-Cola FEMSA (100% of dividend) 7,437 7,038 6,991 For the years ended December 31, 2019 and 2018 the dividends declared and paid per share by the Company are as follows: Series of Shares 2019 2018 “B” Ps. 0.48333 Ps. 0.45980 “D” 0.60417 0.57480 23.2 Capital management The Company manages its capital to ensure that its subsidiaries will be able to continue as going concerns while maximizing the return to shareholders through the optimization of its debt and equity balance in order to obtain the lowest cost of capital available. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2019 and 2018. The Company is not subject to any externally imposed capital requirements, other than the legal reserve (see Note 23.1) and debt covenants (see Note 19). The Company’s Finance, Planning and the Corporate Practices Committees reviews the capital structure of the Company on a quarterly basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. In conjunction with this objective, the Company seeks to maintain the highest credit rating both national and international, currently rated AAA and A- |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Earnings per Share | Note 24. Earnings per Share Basic earnings per share amounts are calculated by dividing consolidated net income for the year attributable to controlling interest by the weighted average number of shares outstanding during the period adjusted for the weighted average of own shares purchased in the period. Diluted earnings per share amounts are calculated by dividing consolidated net income for the year attributable to controlling interest by the weighted average number of shares outstanding during the period adjusted for the effects of dilutive potential shares (originated by the Company’s share-based payment program). 2019 2018 2017 Per Series Per Series Per Series Per Series Per Series Per Series (in millions of shares) Weighted average number of shares for basic earnings per share 9,244.16 8,635.65 9,243.81 8,634.26 9,243.14 8,631.57 Effect of dilution associated with non-vested 2.26 9.06 2.61 10.45 3.29 13.14 Weighted average number of shares adjusted for the effect of dilution (Shares outstanding) 9,246.42 8,644.71 9,246.42 8,644.71 9,246.42 8,644.71 Dividend rights per series 100 % 125 % 100 % 125 % 100 % 125 % Weighted average number of shares further adjusted to reflect dividend rights 9,246.42 10,805.89 9,246.42 10,805.89 9,246.42 10,805.89 Basic earnings per share from continuing operations 1.03 1.29 1.13 1.41 2.04 2.55 Basic earnings per share from discontinued operations — — 0.07 0.09 0.08 0.10 Diluted earnings per share from continuing operations 1.03 1.29 1.13 1.41 2.04 2.55 Diluted earnings per share from discontinued operations — — 0.07 0.09 0.08 0.10 Allocation of earnings, weighted 46.11 % 53.89 % 46.11 % 53.89 % 46.11 % 53.89 % Net controlling interest income allocated from continuing operations Ps. 9,545 Ps. 11,154 Ps. 10,403 Ps. 12,157 Ps. 18,842 Ps. 22,021 Net controlling interest income allocated from discontinued operations Ps. — Ps. — Ps. 660 Ps. 770 Ps. 713 Ps. 832 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Income Taxes | Note 25. Taxes 25.1 Recoverable taxes Recoverable taxes are mainly integrated by higher provisional payments of income tax during 2019 in comparison to prior year, which will be compensated in future years. The operations in Guatemala, Panama, Nicaragua and Colombia are subject to a minimum tax. In Guatemala and Colombia this tax is recoverable under certain circumstances only. Guatemala tax basis is determined considering the highest between total assets and net income; in Colombia tax basis is equity. 25.1.1 Exclusion of the State VAT (ICMS) on the federal sale taxes (PIS / COFINS) calculate basis On March 15, 2017 the Brazilian Federal Supreme Court (STF) ruled that the inclusion of the VAT (ICMS) on federal sales taxes (PIS and COFINS) taxable basis is unconstitutional. During 2019, our companies in Brazil obtained conclusive favorable motions over this exclusion of VAT (ICMS) over PIS / COFINS calculation. The net favorable effects of each case are to be recorded at the time all formalities and legal procedures are finalized and the asset become virtually certain. During 2019, it was concluded the administrative formalities for one of the motions and the recoverable taxes for this motion were recorded in the income statement. As of December 31, 2019 and 2018 the amount of recoverable taxes in Brazil including PIS and COFINS is Ps. 4,223 and Ps. 2,361. 25.2 Tax Reform On January 1, 2020, a new tax regime in Mexico will be effective regarding foreign transparent vehicles and changes were made to the preferential tax regime, as a result of such changes, the dividends from Heineken Group will be subject to a 30% income tax in Mexico when received. Starting January 1, 2020, the excise tax increased from 5.0% to 7.0% to carbonated beverages added with sugar or any caloric sweetener. Drinkable foods based on dairy products, grains or cereals, nectars, fruit juices and vegetables with natural fruit concentrates are exempt from this tax. In addition to the above, on October 30, 2019, Mexico approved a new Tax Reform, which will be effective on January 1, 2020. The most relevant changes are: (i) Taxpayers will be limited to a net interest deduction equal to 30% of the entity’s Adjusted Taxable Income (ATI). ATI will be determined similarly to EBITDA (earnings before interest, taxes, depreciation and amortization). A $20,000,000 pesos (approximately USD 1M) exception applies for deductible interest at a Mexican group level. The non-deductible On January 1, 2019, the Mexican government eliminated the right to offset any tax credit against any payable tax (general offset or compensación universal On January 1, 2019, a new tax reform became effective in Colombia. This reform reduced the income tax rate from 33.0% to 32.0% for 2020, to 31.0% for 2021 and to 30.0% for 2022. The minimum assumed income tax ( renta presuntiva sobre el patrimonio added-tax added-tax The Tax Reform increases the dividend tax on distributions to foreign nonresidents entities and individuals from 5% to 7.5%. In addition, the tax reform establishes a 7.5% dividend tax on distributions between Colombian companies. The tax will be charged only on the first distribution of dividends between Colombian entities and may be credited against the dividend tax due once the ultimate Colombian company makes a distribution to its shareholders nonresident shareholders (individuals or entities) or to Colombian individual residents. In October 2019, the Colombian Constitutional Court declared unconstitutional the tax reform of 2018 (Law 1943). On December 27, 2019, the Senate enacted a new tax reform through the Economic Growth Law, which became effective as of January 1, 2020. In general, the reform maintains the provisions introduced under Law 1943 with certain changes as follow: (i) reduction of the minimum assumed income tax rate (renta presuntiva sobre el patrimonio) from 1.5% to 0.5% for 2020 and maintained the 0% rate for year 2021 and onwards; (ii). reduction of dividends tax rate applicable to Colombian resident individuals from 15% to 10%; (iii) increasing of dividends tax rate applicable to foreign nonresidents (individuals and companies) from 7.5% to 10%; (iv) it postponed to 2022 the possibility of taxpayers to claim 100% of municipality sales tax as a credit against their income tax liability; and (v) gave more flexibility to recover VAT of imported goods from free trade zones. On January 1, 2019 a tax reform became effective in Costa Rica. This reform will allow that tax on sales not only be applied to the first sale, but also to be applied and transferred for each sale; therefore, the tax credits on tax on sales will be recorded not only on goods related to production and on administrative services, but on a greater number of goods and services. Value-added tax on services provided within Costa Rica will be charged at tax rate of 13.0% if provided by local suppliers or withheld at the same rate if provided by foreigner suppliers. Although a territorial principle is still applicable in Costa Rica for operations abroad, a tax rate of 15.0% has been imposed on capital gains from the sale of assets located in Costa Rica. New income tax withholding rates were imposed on salaries and compensations of employees, at the rates of 25.0% and 20.0% (which will be applicable depending on the employee’s salary), respectively. Finally, the thin capitalization rules were adjusted to provide that the interest expenses (generated with non-members On November 18, 2019, Panama’s National Assembly voted through a national health program that included a tax on sugar-sweetened beverages. It imposed a 5.0% of excise tax (Impuesto Selectivo al Consumo) to non-carbonated Since 2016, the Brazilian federal production and sales tax rates have been modified. However, the Supreme Court decided in early 2017 that the value-added tax will not be used as the basis for calculating the federal sales tax, which resulted in a reduction of the federal sales tax. Notwithstanding the above, the tax authorities appealed the Supreme Court’s decision and are still waiting for a final resolution. For 2019, the federal production and sales taxes together resulted in an average of 16.3% tax over net sales. In addition, the excise tax on concentrate in Brazil was reduced from 20.0% to 4.0% from September 1, 2018 to December 31, 2018. Temporarily the excise tax rate on concentrate increased from 4.0% to 12.0% from January 1, 2019 to June 30, 2019, then it will be reduced to 8.0% from July 1, 2019 to September 30, 2019, and increased to 10% from October 1, 2019 to December 31, 2019. On January 1st, 2020 the excise tax rate will be reduced back to 4.0%. On January 1, 2018, a tax reform became effective in Argentina. This reform reduced the income tax rate from 35.0% to 30.0% for 2018 and 2019, and then to 25.0% for the following years. In addition, such reform imposed a new tax on dividends paid to non-resident However, on December 23, 2019, Argentina enacted a tax reform that became effective since January 2020, keeping the corporate income tax rate of 30% and the dividend withholding tax of 7% for two more years. Besides, beginning on 1 January 2020, taxpayers may deduct 100% of the negative or positive inflation adjustment the year in which the adjustment is calculated, instead of a six years period allocation. In addition, this reform imposed a new tax applicable for 2020-2024 period, to purchases of foreign currency by Argentine residents to pay goods, services or obligations from abroad. The tax rate will be 30% and will apply to the amount of the taxable purchases. The tax will be withheld at the time of payment for the purchases. For sales taxes in the province of Buenos Aires, the tax rate decreased from 1.75% to 1.5% in 2018; however, in the City of Buenos Aires, the tax rate increased from 1.0% to 2.0% in 2018, and will be reduced to 1.5% in 2019, 1.0% in 2020, 0.5% in 2021 and null in 2022. On January 1, 2017, a general tax reform became effective in Colombia. This reform reduced the income tax rate from 35.0% to 34% for 2017 and then to 33% for the following years. In addition, this reform includes an extra income tax rate of 6.0% for 2017 and 4.0% for 2018, for entities located outside free trade zone. Regarding taxpayers located in free trade zone, the special income tax rate increase to from 15% to 20% for 2017. Additionally, the reform eliminated the temporary tax on net equity, the supplementary income tax (9.0 %) as contribution to social programs and the temporary contributions to social programs at a rate of 5.0%, 6.0%, 8.0% and 9.0% for the years 2015, 2016, 2017 and 2018, respectively. During 2017, the Mexican government issued the Repatriation of Capital Decree which was valid from January 19 until October 19, 2017. Through this decree, a fiscal benefit was attributed to residents in Mexico by applying an income tax of 8% (instead of the statutory rate of 30% normally applicable) to the total amount of income returned to the country resulting from foreign investments held until December 2016. Additionally, the Repatriation of Capital Decree sustains that the benefit will solely apply to income and investments returned to the country throughout the period of the decree. The resources repatriated must be invested during the fiscal year of 2017 and remain in national territory for a period of at least two years from the return date. 25.3 Income Tax The major components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are: 2019 2018 2017 Current tax expense Ps. 11,652 Ps. 10,480 Ps. 18,592 Deferred tax expense (income): Origination and reversal of temporary differences 127 491 (7,546 ) (Recognition) of tax losses, net (1,201 ) (927 ) (823 ) Change in the statutory rate (102 ) 125 (10 ) Total deferred tax income expense (benefit) (1,176 ) (311 ) (8,379 ) Total income taxes Ps. 10,476 Ps. 10,169 Ps. 10,213 Recognized in Consolidated Statement of Other Comprehensive Income (“OCI”) Income tax related to items charged or 2019 2018 2017 Unrealized loss on cash flow hedges Ps. (391 ) Ps. (293 ) Ps. (191 ) Exchange differences on translation of foreign operations (1,667 ) (2,647 ) 387 Remeasurements of the net defined benefit liability (371 ) 287 (154 ) Share of the other comprehensive income of equity accounted investees 288 989 (1,465 ) Total income tax benefit recognized in OCI Ps. (2,141 ) Ps. (1,664 ) Ps. (1,423 ) A reconciliation between tax expense and income before income taxes and share of the profit or loss of associates and joint ventures accounted for using the equity method multiplied by the Mexican domestic tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 Mexican statutory income tax rate 30.0 % 30.0 % 30.0 % Difference between book and tax inflationary values and translation effects (2.2 %) (4.0 %) (5.7 %) Annual inflation tax adjustment 0.2 % (1.2 %) 0.5 % Difference between statutory income tax rates 0.9 % 1.8 % 1.2 % Repatriation of capital benefit decree — — (22.6 %) Non-deductible 4.5 % 3.2 % 2.6 % Non-taxable (1.0 %) (0.5 %) — Effect of changes in Argentina tax law (0.3 %) (0.9 %) — Income tax credits — — (2.0 %) Venezuela deconsolidation effect — — 28.6 % Others 0.3 % 1.8 % (4.1 %) 32.4 % 30.2 % 28.6 % Deferred Income Tax Related to: Consolidated Statement Consolidated Statement December 31, December 31, 2019 2018 2017 Allowance for doubtful accounts Ps. (437 ) Ps. (416 ) Ps. (43 ) Ps. 93 Ps. 16 Inventories 76 80 (6 ) (27 ) (71 ) Other current assets 256 75 182 (31 ) 34 Property, plant and equipment, net (4,068 ) (3,841 ) (320 ) (851 ) (2,349 ) Investments in equity accounted investees (5,482 ) (5,979 ) 7 40 (5,094 ) Other assets 137 212 59 (82 ) (155 ) Finite useful lived intangible assets (111 ) 271 (345 ) 627 207 Indefinite lived intangible assets 10,788 10,331 1,220 758 968 Post-employment and other long-term employee benefits (1,067 ) (1,058 ) (2 ) (148 ) (77 ) Derivative financial instruments (9 ) 21 (31 ) (63 ) (171 ) Provisions (1,216 ) (2,761 ) 1,359 1,122 (636 ) Temporary non-deductible (3,183 ) (1,400 ) (1,797 ) (293 ) (144 ) Employee profit sharing payable (430 ) (403 ) 8 (27 ) (11 ) Tax loss carryforwards (10,309 ) (9,558 ) (1,201 ) (927 ) (547 ) Tax credits to recover (2) (1,855 ) (1,855 ) (122 ) (109 ) (1,059 ) Other comprehensive income (1) (596 ) 229 29 (54 ) (224 ) Exchange differences on translation of foreign operations in OCI 3,959 5,202 — — — Other liabilities 533 193 (3 ) (324 ) 948 Right of use from leases, net (561 ) — (577 ) — — Deferred tax income Ps. (1,583 ) Ps. (296 ) Ps. (8,355 ) Deferred tax income net recorded in share of the profit of equity accounted investees 407 (15 ) (24 ) Deferred tax income, net Ps. (1,176 ) Ps. (311 ) Ps. (8,379 ) Deferred income taxes, net (13,575 ) (10,657 ) Deferred tax asset (20,521 ) (16,543 ) Deferred tax liability Ps. 6,946 Ps. 5,886 (1) Deferred tax related to derivative financial instruments and remeasurements of the net defined benefit liability. (2) Correspond to income tax credits arising from dividends received from foreign subsidiaries to be recovered within the next ten years accordingly to the Mexican Income Tax law as well as effects of the exchange of foreign currencies with a related and non-related Deferred tax related to Accumulated Other Comprehensive Income (“AOCI”) Income tax related to items charged or 2019 2018 Unrealized loss on derivative financial instruments Ps. (36 ) Ps. 361 Remeasurements of the net defined benefit liability (560 ) (132 ) Total deferred tax loss related to AOCI Ps. (596 ) Ps. 229 The changes in the balance of the net deferred income tax asset are as follows: 2019 2018 2017 Balance at the beginning of the period Ps. (10,657 ) Ps. (9,720 ) Ps. (1,016 ) Deferred tax provision for the period (1,176 ) (311 ) (8,218 ) Deferred tax income net recorded in share of the profit of equity accounted investees (406 ) 165 (67 ) Acquisition of subsidiaries (382 ) (316 ) (367 ) Effects in equity: Unrealized (gain) on cash flow hedges (391 ) (445 ) (83 ) Exchange differences on translation of foreign operations (2,121 ) (1,762 ) (1,472 ) Remeasurements of the net defined benefit liability (204 ) 543 131 Retained earnings of equity accounted investees 384 54 (38 ) Cash flow hedges in foreign investments 425 310 (540 ) Restatement effect of the period and beginning balances associated with hyperinflationary economies 953 438 1,689 Disposal of subsidiaries — 387 — Deconsolidation of subsidiaries — — 261 Balance at the end of the period Ps. (13,575 ) Ps. (10,657 ) Ps. (9,720 ) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes are levied by the same tax authority. Tax Loss Carryforwards The subsidiaries in Mexico, Colombia and Brazil have tax loss carryforwards. The tax losses carryforwards and corresponding years of expiration are as follows: Year Tax Loss 2020 Ps. 825 2021 351 2022 221 2023 227 2024 610 2025 4,876 2026 4,706 2027 35 2028 2,247 2029 3,984 No expiration (Brazil and Colombia) 14,454 Ps. 32,536 The Company recorded certain goodwill balances due to acquisitions that are deductible for Brazilian income tax reporting purposes. The deduction of such goodwill amortization has resulted in the creation of NOLs in Brazil which NOLs have no expiration, but their usage is limited to 30% of Brazilian taxable income in any given year. As of December 31, 2019, the Company believes that it is more likely than not that it will ultimately recover such NOLs through the reversal of temporary differences and future taxable income. Accordingly the related deferred tax assets have been fully recognized. Additionally as of December 31, 2019 and 2018, Coca-Cola FEMSA has unused tax losses in Colombia for an amount of Ps. 2 and Ps. 2, respectively. The changes in the balance of tax loss carryforwards are as follows: 2019 2018 Balance at beginning of the period Ps. 29,941 Ps. 29,487 Derecognized (377 ) (306 ) Additions 7,194 4,124 Usage of tax losses (2,947 ) (1,385 ) Translation effect of beginning balances (1,275 ) (1,979 ) Balance at end of the period Ps. 32,536 Ps. 29,941 There were no withholding taxes associated with the payment of dividends in either 2019, 2018 or 2017 by the Company to its shareholders. The Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future. As of December 31, 2019, 2018 and 2017, the temporary differences associated with investments in subsidiaries, associates and joint ventures, for which a deferred tax liability has not been recognized aggregate to Ps. 49,255, Ps. 45,305 and Ps. 41,915, respectively. |
Other Liabilities, Provisions,
Other Liabilities, Provisions, Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other Liabilities, Provisions, Contingencies and Commitments | Note 26. Other Liabilities, Provisions, Contingencies and Commitments 26.1 Other current financial liabilities December 31, December 31, Sundry creditors Ps. 11,509 Ps. 8,489 Derivative financial instruments (see Note 21) 848 384 Other notes payable (1) 11,294 — Others 4 20 Total Ps. 23,655 Ps. 8,893 (1) Related to Socofar’s put option exercised on December 13, 2019. 26.2 Provisions and other non-current December 31, December 31, Contingencies Ps. 8,854 Ps. 9,928 Payable taxes 710 873 Others 879 767 Total Ps. 10,443 Ps. 11,568 26.3 Other financial liabilities December 31, December 31, Derivative financial instruments (see Note 21) Ps. 1,672 Ps. 1,262 Security deposits 809 970 Total Ps. 2,481 Ps. 2,232 26.4 Provisions recorded in the consolidated statement of financial position The Company has various loss contingencies and has recorded reserves as other liabilities for those legal proceedings for which it believes an unfavorable resolution is probable. Most of these contingencies are the result of the Company’s business acquisitions. The following table presents the nature and amount of the contingencies recorded as of December 31, 2019 and 2018: December 31, December 31, Indirect taxes Ps. 5,062 Ps. 5,421 Labor 2,455 2,601 Legal 1,337 1,906 Total Ps. 8,854 Ps. 9,928 26.5 Changes in the balance of provisions recorded 26.5.1 Indirect taxes December 31, December 31, December 31, Balance at beginning of the period Ps. 5,421 Ps. 6,836 Ps. 11,065 Penalties and other charges 1 123 362 New contingencies 486 178 91 Contingencies added in business combination — 104 861 Cancellation and expiration (247 ) 106 (796 ) Payments (174 ) (112 ) (947 ) Brazil amnesty adoption — — (3,321 ) Effects of changes in foreign exchange rates (425 ) (951 ) (479 ) Effects due to derecognition of Philippines — (863 ) — Balance at end of the period Ps. 5,062 Ps. 5,421 Ps. 6,836 26.5.2 Labor December 31, December 31, December 31, Balance at beginning of the period Ps. 2,601 Ps. 2,723 Ps. 2,578 Penalties and other charges 293 310 56 New contingencies 521 330 283 Contingencies added in business combination 44 289 — Cancellation and expiration (283 ) (133 ) (32 ) Payments (500 ) (193 ) (92 ) Effects of changes in foreign exchange rates (221 ) (725 ) (69 ) Venezuela deconsolidation effect — — (1 ) Balance at end of the period Ps. 2,455 Ps. 2,601 Ps. 2,723 26.5.3 Legal December 31, December 31, December 31, Balance at beginning of the period Ps. 1,906 Ps. 3,296 Ps. 2,785 Penalties and other charges 94 86 121 New contingencies 213 72 186 Contingencies added in business combination 77 67 783 Cancellation and expiration (542 ) (146 ) (16 ) Payments (318 ) (251 ) (417 ) Brazil amnesty adoption — — 7 Effects of changes in foreign exchange rates (93 ) (335 ) (151 ) Venezuela deconsolidation effect — — (2 ) Effects due to derecognition of Philippines — (883 ) — Balance at end of the period Ps. 1,337 Ps. 1,906 Ps. 3,296 While provision for all claims has already been made, the actual outcome of the disputes and the timing of the resolution cannot be estimated by the Company at this time. 26.6 Unsettled lawsuits The Company has entered into several proceedings with its labor unions, tax authorities and other parties that primarily involve Coca-Cola FEMSA and its subsidiaries. These proceedings have resulted in the ordinary course of business and are common to the industry in which the Company operates. The aggregate amount being claimed against the Company resulting from such proceedings as of December 31, 2019 is Ps. 81,683. Such contingencies were classified by legal counsel as less than probable but more than remote of being settled against the Company. However, the Company believes that the ultimate resolution of such several proceedings will not have a material effect on its consolidated financial position or result of operations. Included in this amount Coca-Cola FEMSA has tax contingencies, most of which are related to its Brazilian operations, with loss expectations assessed by management and supported by the analysis of legal counsel considered as possible. The main possible contingencies of Brazilian operations amount to approximately Ps. 53,937. This refers to various tax disputes related primarily to: (i) Ps. 10,378 of credits for ICMS (“VAT”); (ii) Ps. 34,102 related to tax credits of “IPI” over raw materials acquired from Free Trade Zone Manaus; (iii) claims of Ps. 6,274 related to compensation of federal taxes not approved by the IRS (Tax authorities) and (iv) Ps. 3,183 related to the requirement by the Tax Authorities of State of São Paulo for ICMS (“VAT”), interest and penalty due to the alleged underpayment of tax arrears for the period 1994-1996. Coca-Cola FEMSA is defending its position in these matters and final decision is pending in court. In recent years in its Mexican and Brazilian territories, Coca-Cola FEMSA has been requested to present certain information regarding possible monopolistic practices. These requests are commonly generated in the ordinary course of business in the soft drink industry where this subsidiaries operates. The Company does not expect any material liability to arise from these contingencies. 26.7 Collateralized contingencies As is customary in Brazil, Coca-Cola FEMSA has been required by the tax authorities there to collateralize tax contingencies currently in litigation amounting to Ps. 10,471, Ps. 7,739 and Ps. 9,433 as of December 31, 2019, 2018 and 2017, respectively, by pledging fixed assets and entering into available lines of credit covering the contingencies, see Note 14. Also, as disclosed in Note 9.2, there is some restricted cash in Brazil related to current deposits in order to fulfill the collateral requirements for accounts payable. 26.8 Commitments The Company has firm commitments for the purchase of property, plant and equipment of Ps. 556 as of December 31, 2019. |
Information by Segment
Information by Segment | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Information by Segment | Note 27. Information by Segment The information by segment is presented considering the Company’s business units (as defined in Note 1) based on its products and services, which is consistent with the internal reporting presented to the Chief Operating Decision Maker. A segment is a component of the Company that engages in business activities from which it earns revenues, and incurs the related costs and expenses, including revenues, costs and expenses that relate to transactions with any of Company’s other components. All segments’ operating results are reviewed regularly by the Chief Operating Decision Maker, which makes decisions about the resources that would be allocated to the segment and to assess its performance, and for which financial information is available. In 2018, FEMSA made a change to the disclosure related to the businesses segments formerly named as FEMSA Comercio’s “Retail Division” by removing those operations that are not directly related to Proximity store business, including restaurant and discount retail units, from this segment. The business segment is now named the FEMSA Comercio – “Proximity Division” and will only include Proximity and Proximity-related Inter-segment transfers or transactions are entered into and presented under accounting policies of each segment, which are the same to those applied by the Company. Intercompany operations are eliminated and presented within the consolidation adjustment column included in the tables below. a) By Business Unit: 2019 Coca-Cola FEMSA FEMSA Proximity FEMSA Health FEMSA Heineken Other (1) Consolidation Consolidated Total revenues Ps. 194,471 Ps. 184,810 Ps. 58,922 Ps. 47,852 Ps. — Ps. 41,788 Ps. (21,132 ) Ps. 506,711 Intercompany revenue 5,688 325 — 11 — 15,108 (21,132 ) — Gross profit 87,507 75,099 17,645 4,775 — 11,551 (5,096 ) 191,481 Administrative expenses — — — — — — — 19,930 Selling expenses — — — — — — — 121,871 Other income — — — — — — — 1,013 Other expenses — — — — — — — 4,905 Interest expense 6,904 5,733 1,226 1,175 1 2,303 (3,209 ) 14,133 Interest income 1,230 338 10 114 23 4,563 (3,110 ) 3,168 Other net finance loss (3) — — — — — — — (2,527 ) Income before income taxes and share of the profit of equity accounted investees 18,409 11,458 1,487 124 10 449 359 32,296 Income taxes 5,648 923 556 49 (491 ) 3,791 — 10,476 Share of the profit of equity accounted investees, net of tax (131 ) 9 — — 6,428 (78 ) — 6,228 Net income from continuing operations — — — — — — — 28,048 Net income from discontinued operations — — — — — — — — Consolidated net income — — — — — — — 28,048 Depreciation and amortization (2) 10,642 9,604 3,112 855 — 1,708 (112 ) 25,810 Non-cash 1,083 529 23 105 — 755 — 2,495 Investments in equity accounted investees 9,751 3,719 — — 83,789 211 — 97,470 Total assets 257,841 117,229 54,366 17,701 86,639 158,746 (54,981 ) 637,541 Total liabilities 128,154 98,468 53,468 16,754 3,151 66,812 (55,017 ) 311,790 Investments in fixed assets (4) 11,465 10,374 1,529 706 — 1,685 (180 ) 25,579 (1) Includes other companies and corporate (see Note 1). (2) Includes bottle breakage. (3) Includes foreign exchange loss, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments. (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets. 2018 Coca-Cola FEMSA FEMSA Proximity FEMSA Health Division FEMSA Heineken Other (1) Consolidation Consolidated Total revenues Ps. 182,342 Ps. 167,458 Ps. 51,739 Ps. 46,936 Ps .— Ps. 42,293 Ps. (21,024 ) Ps. 469,744 Intercompany revenue 5,160 290 — — — 15,574 (21,024 ) — Gross profit 83,938 65,529 15,865 4,231 — 10,233 (4,626 ) 175,170 Administrative expenses — — — — — — — 17,313 Selling expenses — — — — — — — 114,573 Other income — — — — — — — 673 Other expenses — — — — — — — 2,947 Interest expense 7,568 1,806 678 211 1 2,057 (2,496 ) 9,825 Interest income 1,004 372 14 159 22 3,757 (2,496 ) 2,832 Other net finance income (3) — — — — — — — (387 ) Income before income taxes and share of the profit of equity accounted investees 17,190 13,335 1,438 407 11 1,219 30 33,630 Income taxes 5,260 1,124 652 123 4 3,006 — 10,169 Share of the profit of equity accounted investees, net of tax (226 ) (17 ) — — 6,478 17 — 6,252 Net income from continuing operations — — — — — — — 29,713 Net income from discontinued operations — — — — — — — 3,366 Consolidated net income — — — — — — — 33,079 Depreciation and amortization (2) 10,028 4,971 983 152 — 1,103 — 17,237 Non-cash 755 367 22 11 — 490 — 1,645 Investments in equity accounted investees 10,518 84 — — 83,461 252 — 94,315 Total assets 263,787 75,146 35,881 7,015 86,340 150,674 (42,462 ) 576,381 Total liabilities 132,037 56,468 23,357 6,142 4,054 61,340 (42,559 ) 240,839 Investments in fixed assets (4) 11,069 9,441 1,162 520 — 2,391 (317 ) 24,266 (1) Includes other companies and corporate (see Note 1). (2) Includes bottle breakage. (3) Includes foreign exchange loss, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments. (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets. 2017 (Revised ) (5) Coca-Cola FEMSA FEMSA FEMSA FEMSA Fuel Division Heineken Other (1) Consolidation Consolidated Total revenues Ps. 183,256 Ps. 149,833 Ps. 47,421 Ps. 38,388 Ps. — Ps. 39,732 Ps. (18,698 ) Ps. 439,932 Intercompany revenue 4,679 202 — — — 13,817 (18,698 ) — Gross profit 83,508 56,127 14,213 2,767 — 9,307 (3,832 ) 162,090 Administrative expenses — — — — — — — 15,222 Selling expenses — — — — — — — 105,880 Other income — — — — — — — 31,951 Other expenses — — — — — — — 33,866 Interest expense 8,778 1,313 685 156 — 2,372 (2,212 ) 11,092 Interest income 791 306 23 47 23 2,492 (2,212 ) 1,470 Other net finance expenses (3) — — — — — — — 6,320 Income before income taxes and share of the profit of equity accounted investees (11,255 ) 11,723 956 146 30,000 4,265 (64 ) 35,771 Income taxes 4,184 762 434 23 (5,132 ) 9,942 — 10,213 Share of the profit of equity accounted investees, net of tax 60 5 — — 7,847 11 — 7,923 Net income from continuing operations — — — — — — — 33,480 Net income from discontinued operations — — — — — — — 3,726 Consolidated net income — — — — — — — 37,206 Depreciation and amortization (2) 9,632 4,144 942 118 — 804 — 15,640 Non-cash 1,663 285 31 18 — 267 — 2,264 Investments in equity accounted investees 11,501 642 — — 83,720 234 — 96,097 Total assets 285,677 64,717 38,496 4,678 76,555 154,930 (36,512 ) 588,541 Total liabilities 144,967 49,101 25,885 4,091 1,343 62,754 (36,512 ) 251,629 Investments in fixed assets (4) 12,917 8,396 774 291 — 1,479 (371 ) 23,486 (1) Includes other companies and corporate (see Note 1). (2) Includes bottle breakage. (3) Includes foreign exchange gain, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments. (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets. (5) Disclosure has been revised for the restructuring of FEMSA Comercio – Proximity Division and for 2017 the discontinued Philippines operations of Coca-Cola FEMSA Philippines. The assets (Ps. 28,272) and liabilities (Ps. 9,945) for the discontinued operation for 2017 of Philippines segment are included in Mexico and Central America. b) By Geographic Area: The Company aggregates geographic areas into the following for the purposes of its consolidated financial statements: (i) Mexico and Central America division (comprising the following countries: Mexico, Guatemala, Nicaragua, Costa Rica and Panama) and (ii) the South America division (comprising the following countries: Brazil, Argentina, Colombia, Chile, Ecuador, Peru and Uruguay). (iii) Europe (comprised of the Company’s equity method investment in Heineken Group). For further information related with aggregates geographic areas see Note 28.2 Disaggregation of revenue. Geographic disclosure for the Company non-current 2019 2018 Mexico and Central America (1) Ps. 244,199 Ps. 195,310 South America (2) 136,480 120,003 Europe 83,789 83,461 Consolidated Ps. 464,468 Ps. 398,774 (1) Domestic (Mexico only) non-current (2) South America non-current non-current non-current non-current non-current non-current |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
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Revenues | Note 28. Revenues 28.1 Nature of goods sold and services The information sets below described the core activities of the business units from which the Company generates its revenues. According to the standard, the performance obligation for the Company’s business units are satisfied in a point in time that the control of good and services are totally transferred to the customers. For detail information about business segments, see Note 27. Segment Product or Service Nature, timing to fulfill the performance obligation and significant payment terms Coca-Cola FEMSA Beverages sales Includes the delivery of beverages to customers and wholesalers. The transaction prices are assigned to each product on sale based on its own sale price separately, net of promotions and discounts. The performance obligation is satisfied at the point in time the product on sale is delivered to the customer. Services revenues Includes the rendering of manufacturing services, logistic and administrative services. The transaction prices are assigned to each product on sale based on its own sale price if sold separately. The performance obligation is satisfied at the point in time the product on sale is delivered to the customer. FEMSA Comercio – Proximity Division Products sales Operates the largest chain of small-format stores in Mexico and Latin America including as some of its principal products as beers, cigarettes, sodas, other beverages and snacks. The performance obligation is satisfied at the time of the sale or at the moment the control of the product is transferred and the payment is made by the customer. Commercial revenues Includes mainly the commercialization of spaces into within stores, and revenues related to promotions and financial services. The performance obligation is satisfied at the point in time the service is render to the customer. FEMSA Comercio – Health Division Product sales The core products include patent and generic formulas of medicines, beauty products, medical supplements, housing and personnel care products. The performance obligation is satisfied at the point in time of the sale or at the moment the control of the product is transferred to the customer. Services revenues Rending of services adding value as financial institutions, medical consultation and some financial services. The performance obligation is satisfied at the point in time of the rendering or the control is transferred to the customer. FEMSA Comercio – Fuel Division Services revenues The core products are sold in the retail service stations as fuels, diesel, motor oils and other car care products. The performance obligation is satisfied at the point in time on sale and/or the control is transferred to the customer. Others Integral logistic services Rendering a wide range of logistic services and maintenance of vehicles to subsidiaries and customers. The operations are on a daily, monthly or based upon the customer request. The revenue is recognized progressively during the time the service is rendered in a period no greater than a month. Production and sale of commercial refrigeration, plastic solutions and sale of equipment for food processing. Involves the production, commercialization of refrigerators including its delivery and installation and offering of integral maintenance services at the point of sale. Design, manufacturing and recycling of plastic products. In addition, it includes the sale of equipment for food processing, storage and weighing. The revenue recognition is performed at the time in which the corresponding installation is concluded. The recognition of other business lines is performed at the point of sale or in time the control of the product is transferred to the customer. 28.2 Disaggregation of revenue The information sets below described the disaggregation of revenue by geographic area, business unit and products and services categories in which the Company operates. The timing in which the revenues is recognized by the business units in the Company, is the point in the time in which control of goods and services is transferred in its entirely to the customer. Coca-Cola FEMSA FEMSA Comercio – FEMSA Comercio – FEMSA Comercio – Other Segments Total 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 By geographic areas: Mexico and Central America (2) Ps. 109,249 Ps. 100,162 Ps. 92,643 Ps. 182,864 Ps. 166,040 Ps. 148,652 Ps. 8,170 Ps. 7,898 Ps. 7,359 Ps. 47,852 Ps. 46,936 Ps. 38,388 Ps. 32,217 Ps. 31,918 Ps. 29,211 Ps. 380,352 Ps. 352,954 Ps. 316,253 South America (3) 85,223 82,180 86,608 1,946 1,418 1,181 50,752 43,841 40,062 — — — 9,552 10,350 10,467 147,473 137,789 138,318 Venezuela — — 4,005 — — — — — — — — — 18 25 54 18 25 4,059 Total revenues 194,472 182,342 183,256 184,810 167,458 149,833 58,922 51,739 47,421 47,852 46,936 38,388 41,787 42,293 39,732 527,843 490,768 458,630 Consolidation adjustments 5,688 5,160 4,678 325 290 202 — — — 11 — — 15,108 15,574 13,818 21,132 21,024 18,698 Consolidated revenues 188,784 177,182 178,578 184,485 167,168 149,632 58,922 51,739 47,421 47,841 46,936 38,388 26,679 26,719 25,913 506,711 469,744 439,932 By products and/or services Products sold in the point-of-sale Ps. 194,472 Ps. 182,342 Ps. 183,256 Ps. 184,810 Ps 167,458 Ps. 149,834 Ps. 58,922 Ps. 51,739 Ps. 47,421 Ps. 47,852 Ps. 46,936 Ps. 38,388 Ps. 13,198 Ps. 13,240 Ps. 12,667 Ps. 499,254 Ps. 461,715 Ps. 431,566 Services revenues — — — — — — — — — — — — 28,589 29,053 27,064 28,589 29,053 27,064 Consolidation adjustments 5,688 5,160 4,678 325 290 202 — — — 11 — — 15,108 15,574 13,818 21,132 21,024 18,698 Consolidated revenues 188,784 177,182 178,578 184,485 167,168 149,632 58,922 51,739 47,421 47,841 46,936 38,388 26,679 26,719 25,913 506,711 469,744 439,932 (1) For IFRS 15 adoption purposes, the Company applies the modified retrospective method in which no comparative information is restated for previous periods. The Company recognized no adjustment as a result of adopting IFRS 15. (2) Central America includes Guatemala, Nicaragua, Costa Rica and Panama. Domestic (Mexico only) revenues were Ps. 346,659, Ps. 319,792 and Ps. 288,783 and during the years ended December 31, 2019, 2018 and 2017, respectively. (3) South America includes Brazil, Argentina, Colombia, Chile, Uruguay, Ecuador and Venezuela, although Venezuela is shown separately above for 2017. South America revenues include Brazilian revenues of Ps. 67,076, Ps. 63,601 and Ps. 64,345 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Colombia revenues of Ps. 16,440, Ps. 19,245 and Ps. 17,545 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Argentina revenues of Ps. 6,857, Ps. 9,237 and Ps. 13,938 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Chile revenues of Ps. 45,276, Ps. 44,576 and Ps. 40,660 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Uruguay revenue of Ps. 3,421 and Ps. 1,925 during the years ended in December 31, 2019 and 2018, respectively. South America revenues include Ecuador revenue of Ps. 6,539 during the year ended in December 31, 2019. 28.3 Contract balances As of December 31, 2019, no significant cost was identified incurred to obtain or accomplished a contract that might be capitalized as assets. No significant contacts have been entered into for which the Company has not performed all the obligations as well as additional costs associate to it. 28.4 Transaction price assigned to remained performance obligations No performance obligations were identified in customer contracts that are not included in the transaction price, as a result of identified variable considerations per each business unit are part of the transaction price through be consider highly probable that not occurs a significant reversion of the revenue amount. |
Future Impact of Recently Issue
Future Impact of Recently Issued Accounting Standards not yet in Effect | 12 Months Ended |
Dec. 31, 2019 | |
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Future Impact of Recently Issued Accounting Standards not yet in Effect | Note 29. Future Impact of Recently Issued Accounting Standards not yet in Effect The Company has not applied the following standards, amendments and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements. The Company intends to adopt these standards, if applicable, when they become effective. Modifications to the Conceptual Framework The Conceptual Framework for Financial Information (“Conceptual Framework”) have been issued on March 2018 replacing the previous version of the Conceptual Framework issued on 2010. The Conceptual Framework describes the purpose and concepts of general purpose for the financial information. The purpose of the Conceptual Framework is to: a) Help to the IASB to develop standards that are based on consistent concepts; b) Assist to preparers to develop congruent accounting policies when no Standard is applicable to a specific transaction or event, or when a Standard allows an accounting policy option; and c) Help to all parties to understand and interpret the Standards. The Conceptual Framework is not a Standard. No content of the Conceptual Framework prevails over any Standard or requirement of a Standard. The Conceptual Framework is effective immediately for the IASB and the IFRIC, and is effective for periods beginning on or after January 1, 2020, and its early application is permitted, for companies that use the Conceptual Framework to develop their policies Accountants when IFRS are not applicable for a particular transaction. As long as the Company’s accounting policy is in line with these modifications, the Company does not expect any effect on its consolidated financial statements. Modifications to IFRS 3 Definition of a Business (“IFRS 3”) The IASB issued an amendment to IFRS 3 in October 2018 that revises the definition of a business. The modified definition emphasizes that the purpose of a business is to provide goods and services to the customers, while the previous definition was focus on returns in dividends, lower costs or other economic benefits for investors and others. The distinction between a business and a group of assets is important because an acquirer recognizes a goodwill when a business is acquired. The amendments to IFRS 3 are effective beginning on January 1, 2020 and their early application is allowed. As long as the Company’s accounting policy is aligned with these modifications, the Company does not expect any effect on its consolidated financial statements. Modifications to IAS 1 and IAS 8 Definition of Material or relative importance (“IAS 1” and “IAS 8”) The definition of material or relative importance helps to the Company to determine whether information about an item, transaction or other event should be provided to the users of the financial statements. However, the Companies had difficulty using the above definition of material or with relative importance in making materiality judgments or with relative importance in the preparation of the financial statements. Accordingly, the IASB published the Definition of Material or Relative Importance (Amendments to IAS 1 and IAS 8) in October 2018. The amendments to IAS 1 and IAS 8 will be effective on January 1, 2020 and its early application is allowed. The Company does not expect to have significant effects on its consolidated financial statements. Interest Rate Benchmark Reform — Amendments to IFRS 9, IAS 39 and IFRS 7 In September 2019, the IASB issued amendments to IFRS 9, IAS 39 and IFRS 7 Financial Instruments: Disclosures The amendments to IFRS 9 The amendments include a number of reliefs, which apply to all hedging relationships that are directly affected by the interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument. Application of the reliefs is mandatory. The first three reliefs provide for: • The assessment of whether a forecast transaction (or component thereof) is highly probable • Assessing when to reclassify the amount in the cash flow hedge reserve to profit and loss • The assessment of the economic relationship between the hedged item and the hedging instrument For each of these reliefs, it is assumed that the benchmark on which the hedged cash flows are based (whether or not contractually specified) and/or, for relief three, the benchmark on which the cash flows of the hedging instrument are based, are not altered as a result of IBOR reform. A fourth relief provides that, for a benchmark component of interest rate risk that is affected by IBOR reform, the requirement that the risk component is separately identifiable need be met only at the inception of the hedging relationship. Where hedging instruments and hedged items may be added to or removed from an open portfolio in a continuous hedging strategy, the separately identifiable requirement need only be met when hedged items are initially designated within the hedging relationship. To the extent that a hedging instrument is altered so that its cash flows are based on an RFR, but the hedged item is still based on IBOR (or vice versa), there is no relief from measuring and recording any ineffectiveness that arises due to differences in their changes in fair value. The reliefs continue indefinitely in the absence of any of the events described in the amendments. When an entity designates a group of items as the hedged item, the requirements for when the reliefs cease are applied separately to each individual item within the designated group of items. The amendments also introduce specific disclosure requirements for hedging relationships to which the reliefs are applied. The amendments are effective for annual periods beginning on or after January 1, 2020 and must be applied retrospectively. However, any hedge relationships that have previously been de-designated |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
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Subsequent Events | Note 30. Subsequent Events On January 9, 2020, FEMSA completed the acquisition of the remaining 40% interest in Grupo Socofar (“Socofar”) following the exercise of a put right by FEMSA’s minority partner on December 13, 2019 to sell its remaining interest in Socofar. On January 16, 2020, the Company issued U.S. $1,500 million 3.500% senior unsecured notes at an anual rate of 130 basis points over the relevant benchmark. In addition, on February 12, 2020, the Company placed a re-tap US-denominated SEC-registered On January 22, 2020, Coca – Cola FEMSA issued US 1,250 million aggregate principal amount of 2.750% senior notes due January 22, 2030. These notes were used to prepaid Senior Note of $ 900 with an interest rate of 3.88% with due date on November 26, 2023. These notes are guaranteed by the Guarantors. The indenture governing these notes imposes, among others, certain conditions upon a consolidation or merger by Coca – Cola FEMSA and restricts the incurrence of liens and the entering into sale and leaseback transactions by Coca – Cola FEMSA and our significant subsidiaries. On February 7, 2020, Coca – Cola FEMSA issued (i) Ps.3,000 million aggregate amount of 8-year 5.5-year 28-day On March 9, 2020, the Company has entered into definitive agreements with the shareholders of WAXIE Sanitary Supply (“WAXIE”) and North American Corporation (“North American”) to form a new platform within the Jan-San, In March 2020, we entered into certain short-term bank loan in Mexican pesos for an aggregate principal amount of Ps.15,000 million. On March 12, 2020, the Company’s Board of Directors agreed to propose the payment of a cash ordinary dividend in the amount of Ps. 10,360, which will be split in a number of installments and dates during 2020 and will be determined by the Board of Directors. This ordinary dividend was approved by the Annual Shareholders meeting on March 20, 2020. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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Basis of consolidation | 3.1 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); • Exposure, or rights, to variable returns from its involvement with the investee; and • The ability to use its power over the investee to affect its returns. When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangements with the other vote holders of the investee; • Rights arising from other contractual arrangements; and • The Company’s voting rights and potential voting rights. The Company re-assesses Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Company and to the non-controlling non-controlling When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it: • Derecognizes the assets (including goodwill) and liabilities of the subsidiary. • Derecognizes the carrying amount of any non-controlling • Derecognizes the cumulative translation differences recorded in equity. • Recognizes the fair value of the consideration received. • Recognizes the fair value of any investment retained. • Recognizes any surplus or deficit in profit or loss. • Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Company had directly disposed of the related assets or liabilities. 3.1.1 Acquisitions of non-controlling Acquisitions of non-controlling non-controlling paid-in |
Business combinations | 3.2 Business combinations Business combinations are accounted for using the acquisition method at the acquisition date, which is the date on which control is transferred to the Company. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling non-controlling Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling non-controlling Costs, other than those associated with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent considerations are recognized in consolidated net income. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items in which the accounting is incomplete and discloses that its allocation is preliminary in nature. Those provisional amounts are adjusted retrospectively during the measurement period (not greater than 12 months from the acquisition date), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. Sometimes obtaining control of an acquiree in which equity interest is held immediately before the acquisition date is considered as a business combination achieved in stages also referred to as a step acquisition. The Company remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recognizes the resulting gain or loss, if any, in profit or loss. Also, the changes in the value of equity interest in the acquiree recognized in other comprehensive income shall be recognized on the same basis as required if the Company had disposed directly of the previously held equity interest, see Note 3.14. The Company sometimes obtains control of an acquiree without transferring consideration. The acquisition method of accounting for a business combination, applies to those combinations as follows: (a) The acquiree repurchases a sufficient number of its own shares for the Company to obtain control. (b) Minority veto rights lapse that previously kept the Company from controlling an acquiree in which it held the majority voting rights. (c) The Company and the acquiree agree to combine their businesses by contract alone in which it transfers no consideration in exchange for control and no equity interest is held in the acquiree, either on the acquisition date or previously. |
Foreign currencies, consolidation of foreign subsidiaries and accounting equity accounted investees | 3.3 Foreign currencies, consolidation of foreign subsidiaries and accounting of equity accounted investees In preparing the financial statements of each individual subsidiary and accounting for equity accounted investees, transactions in currencies other than the individual entity’s functional currency (foreign currencies) are recognized at the exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary Exchange differences on monetary items are recognized in consolidated net income in the period in which they arise except for: • The variations in the net investment in foreign subsidiaries generated by exchange rate fluctuation which are included in other comprehensive income, which is recorded in equity as part of cumulative translation adjustment within the accumulated other comprehensive income; • Intercompany financing balances with foreign subsidiaries are considered as long-term investments when there is no plan to pay such financing in the foreseeable future. Monetary position and exchange rate fluctuation regarding this financing is recorded in the exchange differences on translation of foreign operations within the accumulated other comprehensive income (loss) item, which is recorded in equity; and • Exchange differences on transactions entered into in order to hedge certain foreign currency risks. Foreign exchange differences on monetary items are recognized in profit or loss. Their classification in the income statement depends on their nature. Differences arising from fluctuations related to operating activities are presented in the “ other expenses non-operating For incorporation into the Company’s consolidated financial statements, each foreign subsidiary, associates or joint venture’s individual financial statements are translated into Mexican pesos, as follows: • For entities operating in hyperinflationary economic environments, the inflation effects of the origin country are recognized pursuant IAS 29 Financial Reporting in Hyperinflationary Economies year-end • For entities operating in non-hyperinflationary year-end In addition, in relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed non-controlling Goodwill and fair value adjustments on identifiable assets and liabilities acquired arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Foreign exchange differences arising are recognized in equity as part of the cumulative translation adjustment. The translation of assets and liabilities denominated in foreign currencies into Mexican pesos is for consolidation purposes and does not indicate that the Company could realize or settle the reported value of those assets and liabilities in Mexican pesos. Additionally, this does not indicate that the Company could return or distribute the reported Mexican peso value in equity to its shareholders. Exchange Rates of Local Currencies Translated to Mexican Pesos (1) Functional / Average Exchange Rate for Exchange Rate as of Country or Zone 2019 2018 2017 December 31, December 31, Guatemala Quetzal 2.50 2.56 2.57 2.45 2.54 Costa Rica Colon 0.03 0.03 0.03 0.03 0.03 Panama U.S. dollar 19.26 19.24 18.93 18.85 19.68 Colombia Colombian peso 0.01 0.01 0.01 0.01 0.01 Nicaragua Cordoba 0.58 0.62 0.63 0.56 0.61 Argentina Argentine peso 0.41 0.73 1.15 0.31 0.52 Venezuela a) Bolivar — — a ) — — Brazil Reais 4.89 5.29 5.94 4.68 5.08 Chile Chilean peso 0.03 0.03 0.03 0.03 0.03 Euro Zone Euro (€) 21.56 22.71 21.32 21.12 22.54 Peru Nuevo Sol 5.77 5.85 5.78 5.68 5.83 Ecuador U.S. dollar 19.26 19.24 18.93 18.85 19.68 Philippines Philippine peso — 0.37 0.38 — 0.37 Uruguay Uruguayan peso 0.55 0.63 0.66 0.51 0.61 (1) Exchange rates published by the Central Bank of each country where the Company operates. a) Venezuela Effective December 31, 2017, the Company determined that the deteriorating conditions in Venezuela had led Coca-Cola FEMSA to no longer meet the accounting criteria to consolidate its Venezuelan subsidiary. Such deteriorating conditions had significantly impacted Coca-Cola FEMSA’s ability to manage its capital structure, its capacity to purchase raw materials and limitations of portfolio dynamics. In addition, certain government controls over pricing, restriction over labor practices, acquisition of U.S. dollars and imports, has affected the normal course of business. Therefore, and due to the fact that its Venezuelan subsidiary will continue doing operations in Venezuela, as of December 31, 2017, Coca-Cola FEMSA changed the method of accounting for its investment in Venezuela from consolidation to fair value measured using a Level 3 concept. As a result of the deconsolidation, Coca-Cola FEMSA also recorded loss within other expenses for an amount of Ps. 28,176 for the year ended December 31, 2017. Such effect includes the reclassification of Ps. 26,123 previously recorded as exchange differences on translation of foreign subsidiaries and equity accounted investees in equity, impairment equal to Ps. 745 and Ps. 1,098 mainly from distribution rights and property, plant and equipment, respectively, and Ps. 210 for the remeasurement at fair-value of Venezuelan investment. Prior to deconsolidation, during 2017, Coca-Cola FEMSA’s Venezuelan operations contributed Ps. 4,005 to net sales, and losses of Ps. 2,223 to net income. Its total assets were Ps. 4,138 and the total liabilities were Ps. 2,889. Beginning on January 1, 2018, Coca-Cola FEMSA recognizes its investment in Venezuela under the fair value through OCI method following the IFRS 9 Financial Instruments Exchange rate Until December 31, 2017, Coca-Cola FEMSA’s recognition of its Venezuelan operations involved a two-step Step-one.- non-bolivar Step-two.- In December 2017, Coca-Cola FEMSA translated the Venezuela entity figures at an exchange rate of 22,793 bolivars per U.S. dollar, as such exchange rate better represents the economic conditions in Venezuela. Coca-Cola FEMSA considers that this exchange rate provides more useful and relevant information with respect to Venezuela’s financial position, financial performance and cash flows. On January 30, 2018, a new auction of the DICOM celebrated by Venezuela’s government resulted on an estimated exchange rate of 25,000 bolivar per U.S. dollar. |
Recognition of the effects of inflation in countries with hyperinflationary economic environments | 3.4 Recognition of the effects of inflation in countries with hyperinflationary economic environments The Company recognizes the effects of inflation on the financial information of its subsidiaries that operates in hyperinflationary economic environments (when cumulative inflation of the three preceding years is approaching, or exceeds, 100% or more in addition to other qualitative factors), which consists of: • Using inflation factors to restate non-monetary • Applying the appropriate inflation factors to restate capital stock, additional paid-in • Including the monetary position gain or loss in consolidated net income. The Company restates the financial information of subsidiaries that operate in hyperinflationary economic environment using the consumer price index of each country (“CPI”). As disclosed in Note 3.3, Coca-Cola FEMSA deconsolidated its Venezuelan operations. Consequently, the Venezuelan investment is no longer consolidated by Coca-Cola FEMSA, however, Coca-Cola FEMSA’s Venezuelan subsidiary will continue operating. As of December 31, 2019, 2018, and 2017, the operations of the Company are classified as follows: Country Cumulative Type of Economy Cumulative Type of Economy Cumulative Type of Economy Mexico 13.2 % Non-hyperinflationary 15.7 % Non-hyperinflationary 12.7 % Non-hyperinflationary Guatemala 11.8 % Non-hyperinflationary 12.2 % Non-hyperinflationary 13.5 % Non-hyperinflationary Costa Rica 5.8 % Non-hyperinflationary 5.7 % Non-hyperinflationary 2.5 % Non-hyperinflationary Panama 0.5 % Non-hyperinflationary 2.1 % Non-hyperinflationary 2.3 % Non-hyperinflationary Colombia 11.0 % Non-hyperinflationary 13.4 % Non-hyperinflationary 17.5 % Non-hyperinflationary Nicaragua 15.6 % Non-hyperinflationary 13.1 % Non-hyperinflationary 12.3 % Non-hyperinflationary Argentina (a) 179.4 % Hyperinflationary 158.4 % Hyperinflationary 101.5 % Hyperinflationary Venezuela — — — — 30,690.0 % Hyperinflationary Brazil 11.1 % Non-hyperinflationary 25.0 % Non-hyperinflationary 21.1 % Non-hyperinflationary Philippines — — 11.9 % Non-hyperinflationary 7.5 % Non-hyperinflationary Euro Zone 3.6 % Non-hyperinflationary 2.7 % Non-hyperinflationary 2.7 % Non-hyperinflationary Chile 8.3 % Non-hyperinflationary 9.7 % Non-hyperinflationary 9.7 % Non-hyperinflationary Peru 5.2 % Non-hyperinflationary 9.3 % Non-hyperinflationary 9.3 % Non-hyperinflationary Ecuador 0.3 % Non-hyperinflationary 30.3 % Non-hyperinflationary 30.3 % Non-hyperinflationary Uruguay 22.0 % Non-hyperinflationary 25.3 % Non-hyperinflationary — – a) Argentina Beginning on July 1, 2018, Argentina was classified as hyperinflationary economy based on several consumer price indexes of the country. Therefore, the financial statements of the subsidiary were remeasured in its functional currency (Argentine peso) but they were not restated in its presentation currency (Mexican pesos) as it is not stated as a hyperinflationary economy. In addition, the Company’s financial statements for prior periods were not restated for comparative purposes. For being considered hyperinflationary, the financial information for our Argentine subsidiary has been adjusted to recognize the inflationary effects since January 1, 2018 through: • Using inflation factors to restate non-monetary • Recognize the monetary position gain or loss in consolidated net income. The Federacion Argentina de Consejos Profesionales de Ciencias Económicas (“FACPCE”) approved on September 29, 2018 and published on October 5, 2018, a resolution which defines, among other things, that the index price to determine the restatement coefficient (Based on a series that applies the NCPI from January with the IPIM until this date, and computing November and December 2015 using the CPI – of Ciudad del Gran Buenos Aires (“CGBA”) variation). |
Cash and cash equivalents and restricted cash | 3.5 Cash and cash equivalents and restricted cash Cash is comprised of deposits in bank accounts which generate an interest on the available balance. Cash equivalents are mainly represented by short-term bank deposits and fixed-income investments (overnight), both with maturities of three months or less and their carrying values approximate fair value. The Company also maintains restricted cash which is insured as collateral to meet certain contractual obligations. Restricted cash is presented within other current financial assets given that, by their nature, the restrictions are short-term. |
Investments | 3.6 Investments The investments include debt securities and bank deposits with a maturity of more than three months as of the acquisition date. Management determines the appropriate classification of investments at the time of purchase and evaluates that classification at the date of each statement of financial position, see Notes 6 and 14. |
Financial assets | 3.7 Financial assets Financial assets are classified within the following business models depending on management’s objective: (i) “held to maturity to recover cash flows”, (ii) “held to maturity and to sell financial assets” and (iii) “others or held for trading”, including derivatives assigned in hedging instruments with efficient hedge, as appropriate. The classification depends on the nature and purpose of holding the financial assets and is determined at the time of initial recognition. The Company performs a portfolio – level assessment of the business model in which a financial asset is managed to accomplish with Company’s risk management purposes. The information that is considered within the evaluation includes: • The policies and objectives of the Company in relation to the portfolio and the practical implementation of policies; • Performance and evaluation of the Company’s portfolio including accounts receivable; • Risks that affect the performance of the business model and how those risks are managed; • Any compensation related to the performance of the portfolio; and • Frequency, volume and timing of sales of financial assets in previous periods together with the reasons for said sales and expectations regarding future sales activities. The Company’s financial assets include cash, cash equivalents and restricted cash, investments with maturities of more than three months, loans and accounts receivable, derivative financial instruments and other financial assets. For the initial recognition of a financial asset, the Company measures it at fair value plus the transaction costs that are directly attributable to the purchase thereof, in the event that said asset is not measured at fair value through profit or loss. Accounts receivable that do not have a significant financing component are measured and recognized at the transaction price when they are generated. The rest of the financial assets are recognized only when the Company is part of the contractual provisions of the instrument. The fair value of an asset is measured using assumptions that would be used by market participants when valuing the asset, assuming that the transaction is orderly and takes place in the principal or the most advantageous market for the asset. During the initial recognition, the financial asset is also classified as measured at: amortized cost, fair value with changes in other comprehensive income – debt or equity investments – and fair value through profit or loss. The classification depends on the objective by which the financial asset is acquired. Financial assets are not reclassified after their initial recognition unless the Company changes the business model to manage the financial assets; in which case, all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. 3.7.1 Financial assets at amortized cost A financial asset is measured at amortized cost if it meets the following two conditions and is not designated as fair value through profit and loss (“FVTPL”): • Its managed within a business model whose objective is to maintain financial assets to recover the contractual cash flows; and • The contractual terms are only payments at specified dates of the principal and interest on the amount of the outstanding principal. The amortized cost of a financial asset is the amount of the initial recognition less the principal payments, plus or less the accumulated amortization using the effective interest rate method of any difference between the initial amount and the amount as of the maturity and, for financial assets, adjusted for loss of impairment. The financial product, exchange fluctuation and impairment are recognized in results. Any profit or loss is also recognized in the same way in results. 3.7.2 Effective interest rate method (“ERR”) The effective interest rate method consists in calculating the amortized cost of loans and accounts receivables and other financial assets (measured at amortized cost) and allocating interest income/expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. 3.7.3 Financial assets at fair value with changes in other comprehensive income (“FVOCI”) A financial asset is measured in FVOCI if it meets the following two conditions and is not designated as FVTPL: • Its managed within a business model whose objective is achieved through the collection of contractual cash flows and the sale of financial assets; and • The contractual terms are only payments of the principal and interest on the amount of the outstanding principal. These assets are subsequently measured at fair value. The financial product calculated using the internal rate of return (“IRR”), the exchange fluctuation and the impairment are recognized in profit and loss. Other gains and losses, related to changes in fair value, are recognized in OCI. In case of disposals, the accumulated gains and losses in OCI are reclassified to profit and loss. In the initial recognition of an equity instrument that is not held for trading, under the “other” business model, the Company may irrevocably choose to present changes in the fair value of the investment in OCI. This choice has to be made for each investment. Equity instruments are subsequently measured at fair value. Dividends are recognized as profit in results unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses, related to changes in fair value, are recognized in OCI and are considered items that will not be reclassified to consolidated net income in subsequent periods. 3.7.4 Financial assets at fair value through profit or loss Financial assets designated as fair value through profit and loss include financial assets held for trading and financial assets designated at initial recognition as fair value through profit and loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the short term. Derivatives, including embedded derivatives are also classified as held for trading unless they are allocated as effective hedging instruments. Financial assets at fair value through profit or loss are recorded in the balance sheet with changes in fair value presented as financial costs (net negative changes in fair value) or financial products (net positive changes in fair value) in profit or loss, including any dividend income. 3.7.5 Evaluation that contractual cash flows are solely principal and interest payments (“SPPI”) In order to classify a financial asset within one of the three different categories, the Company determines whether the contractual cash flows of the asset are only principal and interest payments. The Company considers the contractual terms of the financial instrument and whether the financial asset contains any contractual term that could change the timing or amount of the contractual cash flows in such a way that it would not meet the SPPI criteria. In making this evaluation, the Company considers the following: • Contingent events that would change the amount or timing of cash flows; • Terms that can adjust the contractual coupon rate, including variable interest rate characteristics; • Payment and extension features; and • Characteristics that limit the Company’s right to obtain cash flows from certain assets. A prepaid feature is consistent with the characteristics of only principal and interest payments if the prepayment amount substantially represents the amounts of the principal and interest pending payment, which could include reasonable compensation for early termination of the contract. Additionally, a financial asset acquired or originated with a premium or discount to its contractual amount and in the initial recognition the fair value of the prepaid characteristic is insignificant, the asset will pass the test of the contractual characteristics of cash flow if the amount of prepaid represents substantially the contractual amount and accrued interest (but not paid); which may include additional compensation for the early termination of the contract. 3.7.6 Impairment of financial assets The Company recognizes impairment due to expected credit loss (“ECL”) in: • Financial assets measured at amortized cost; • Debt investments measured at FVOCI; and • Other contractual assets. Impairment losses on accounts receivable, contractual assets and leasing receivables are measured at the amount that equals the lifetime expected loss of credit, whether or not it has a significant component. The Company applies the criteria to all accounts receivable, contractual assets and leasing credits, together or separately. The Company measures impairment losses at an amount that equals to lifetime ECL, except for the following: • Debt instruments classified as low credit risk; and • Other debt instruments in which the credit risk (irrecoverability risk over the financial instrument expected life) has not increased significantly since the initial recognition. In determining whether the credit risk of a financial asset has increased significantly since initial recognition and estimating the ECL, the Company considers reasonable and sustainable information that is relevant and available without undue cost or effort. It includes qualitative and quantitative analysis based on Company’s experience and credit assessment. The impairment loss is a weighted estimate of the probability of expected loss. The amount of impairment loss is measured as the present value of any lack of liquidity (the difference between the contractual cash flows that correspond to the Company and the cash flows that management expects to receive). The expected credit loss is discounted at the original effective interest rate of the financial asset. The Company annually evaluates if there was evidence of an impairment. Some observable data that financial assets were impaired includes: • Significant financial difficulty of the issuer or the borrower; • A breach of contract, such as default or past due event; • Granting concessions due to the borrower’s financial difficulties in which Company would not consider in other circumstances. • It is becoming probable that the borrower will enter bankruptcy or other financial reorganization; • The disappearance of an active market for a financial instrument because of financial difficulties; or • Information indicating that there was a measurable decrease in the expected cash flows of a group of financial assets. For a capital instrument, evidence of impairment includes a significant decrease in its fair value even lower than its carrying value. The impairment loss on financial assets measured at amortized cost is reduced from the book value and for financial assets measured at FVOCI, the impairment loss is recognized as profit or loss within OCI. 3.7.7 Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: • The rights to receive cash flows from the financial asset have expired; or • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. 3.7.8 Offsetting of financial instruments Financial assets are required to be offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Company: • Currently has an enforceable legal right to offset the recognized amounts; and • Intends to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. |
Other financial assets | 3.8 Other financial assets Other financial assets include long term accounts receivable, derivative financial instruments and recoverable contingencies acquired from business combinations. Long term accounts receivable with a stated term are measured at amortized cost using the effective interest method, less any impairment. |
Derivative financial instruments | 3.9 Derivative financial instruments The Company is exposed to different risks related to cash flows, liquidity, market and third-party credit. As a result, the Company contracts different derivative financial instruments in order to reduce its exposure to the risk of exchange rate fluctuations between the Mexican peso and other currencies, and interest rate fluctuations associated with its borrowings denominated in foreign currencies and the exposure to the risk of fluctuation in the costs of certain raw materials. The Company values and records all derivative financial instruments and hedging activities, in the consolidated statement of financial position as either an asset or liability measured at FVTPL or FVOCI, considering quoted prices in recognized markets. If such instruments are not traded in a formal market, fair value is determined by applying techniques based upon technical models supported by sufficient, reliable and verifiable market data. Changes in the fair value of derivative financial instruments are recorded each period in current earnings otherwise as a component of cumulative other comprehensive income based on the item being hedged and the effectiveness of the hedge. 3.9.1 Hedge accounting The Company designates certain hedging instruments, which include derivatives to cover foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. 3.9.2 Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading valuation of the effective portion of derivative financial instruments. The gain or loss relating to the ineffective portion is recognized immediately in consolidated net income and is included in the market value (gain) loss on financial instruments line item within the consolidated income statements. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to consolidated net income in the periods when the hedged item is recognized in consolidated net income, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial non-financial non-financial non-financial Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in cumulative other comprehensive income in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in consolidated net income. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in consolidated net income. 3.9.2.1 Fair value hedges For hedged items carried at fair value, the change in the fair value of a hedging derivative is recognized in the consolidated income statement as foreign exchange gain or loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognized in the consolidated income statement as foreign exchange gain or loss. For fair value hedges relating to items carried at amortized cost, change in the fair value of the effective portion of the hedge is recognized first as an adjustment to the carrying value of the hedged item and then is amortized through profit or loss over the remaining term of the hedge using the EIR method. EIR amortization may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged. If the hedged item is derecognized, the unamortized fair value is recognized immediately in profit or loss. When an unrecognized firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognized as an asset or liability with a corresponding gain or loss recognized in profit and loss. 3.9.2.2 Hedge of net investment in a foreign business The Company designates debt securities as a hedge of certain net investment in foreign subsidiaries and applies hedge accounting to foreign currency differences arising between the functional currency of its investments abroad and the functional currency of the holding company (Mexican peso), regardless of whether the net investment is held directly or through a sub-holding Differences in foreign currency that arise in the conversion of a financial liability designated as a hedge of a net investment in a foreign operation are recognized in other comprehensive income in the exchange differences on the translation of foreign operations and associates caption, to the extent that the hedge is effective. To the extent that the hedge is ineffective, such differences are recognized as market value gain or loss on financial instruments within the consolidated income statements. When part of the hedge of a net investment is disposed, the corresponding accumulated foreign currency translation effect is recognized as part of the gain or loss on disposal within the consolidated income statement. |
Fair value measurement | 3.10 Fair value measurement The Company measures financial instruments, such as derivatives, and certain non-financial Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. A fair value measurement of a non-financial The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 — Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 — Are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing The Company determines the policies and procedures for both recurring fair value measurements, such as those described in Note 21 and unquoted liabilities such as debt described in Note 19. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. |
Inventories and cost of goods sold | 3.11 Inventories and cost of goods sold Inventories are measured at the lower of cost and net realizable value. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Inventories represent the acquisition or production cost which is incurred when purchasing or producing a product and are based on the weighted average cost formula. The operating segments of the Company use inventory costing methodologies to value their inventories, such as the weighted average cost method in Coca-Cola FEMSA, retail method (a method to estimate the average cost) in FEMSA Comercio – Proximity, FEMSA Comercio – Health Division; and acquisition method in FEMSA Comercio – Fuel Division, except for the distribution centers which are valued with average cost method. Cost of goods sold includes expenses related to the purchase of raw materials used in the production process, as well as labor costs (wages and other benefits), depreciation of production facilities, equipment and other costs, including fuel, electricity, equipment maintenance and inspection; expenses related to the purchase of goods and services used in the sale process of the Company’s products and expenses related to the purchase of gasoline, diesel and all engine lubricants used in the sale process of the Company. |
Loans and receivables | 3.12 Loans and receivables The instruments under this category includes loans, trade receivables, and other accounts receivables measured at amortized cost which represents future cash flows discounted at the effective interest rate of the transaction date. In addition, an expected credit loss model is applied to this category, which is reported net of this impairment allowance in the financial statements. The allowance amount is not significant because the trade accounts receivable are usually recovered in the short term. Interest income is recognized by applying the effective interest rate except for current receivables, considering that the recognition of interest is immaterial. For the years ended December 31, 2019, 2018 and 2017 there was no interest income on loans and receivables. |
Other current assets | 3.13 Other current assets Other current assets, which will be realized within a period of less than one year from the reporting date, are comprised of prepaid assets and product promotion agreements with customers. Prepaid assets principally consist of advances to suppliers of raw materials, advertising, promotional, leasing and insurance costs, and are recognized as other current assets at the time of the cash disbursement. Prepaid assets are carried to the appropriate caption in the income statement when inherent benefits and risks have already been transferred to the Company or services have been received, respectively. The Company has prepaid advertising costs which consist of television and radio advertising airtime in advance. These expenses are generally amortized over the period based on the transmission of the television and radio spots. The related production costs are recognized in consolidated income statement as incurred. Coca-Cola FEMSA has agreements with customers for the right to sell and promote Coca-Cola FEMSA’s products over a certain period. The majority of these agreements have terms of more than one year, and the related costs are amortized using the straight-line method over the term of the contract, with amortization presented as a reduction of net sales. During the years ended December 31, 2019, 2018 and 2017, such amortization aggregated to Ps. 273, Ps. 277 and Ps. 759, respectively. |
Equity accounted investees | 3.14 Equity accounted investees Associates are those entities over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but it is not control over those policies. Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value. Investments in associates are accounted for using the equity method and initially recognized at cost, which comprises the investment’s purchase price and any directly attributable expenditure necessary to acquire it. The carrying value of the investment is adjusted to recognize changes in the Company’s shareholding of the associate since the acquisition date. The financial statements of the associates are prepared for the same reporting period as the Company. The consolidated financial statements include the Company’s share of the consolidated net income and other comprehensive income, after adjustments to align the accounting policies with those of the Company, from the date that significant influence commences until the date that significant influence ceases. Profits and losses resulting from ‘upstream’ and ‘downstream’ transactions between the Company (including its consolidated subsidiaries) and an associate are recognized in the consolidated financial statements only to the extent of unrelated investors’ interests in the associate. ‘Upstream’ transactions are, for example, sales of assets from an associate to the Company. ‘Downstream’ transactions are, for example, sales of assets from the Company to an associate. The Company’s share in the associate’s profits and losses resulting from these transactions is eliminated. When the Company’s share of losses exceeds the carrying amount of the associate, including any advances, the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Company has a legal or constructive obligation to pay the associate or has to make payments on behalf of the associate. Goodwill identified at the acquisition date is presented as part of the investment in shares of the associate in the consolidated statement of financial position. Any goodwill arising on the acquisition of the Company’s interest in an associate is measured in accordance with the Company’s accounting policy for goodwill arising in a business combination, see Note 3.2. After application of the equity method, the Company determines whether it is necessary to recognize an additional impairment loss on its investment in its associate. The Company determines at each reporting date whether there is any objective evidence that the investment in the associates is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the share of the profit or loss of associates and joint ventures accounted for using the equity method in the consolidated income statements. If an investment interest is reduced, but continues to be classified as an associate, the Company reclassifies to profits or losses the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest if the gain or loss would be required to be reclassified to consolidated net income on the disposal of the related investment. The Company reclassifies in each case proportionate to the interest disposed of recognized in other comprehensive income: i) foreign exchange differences, ii) accumulated hedging gains and losses, iii) any other amount previously recognized that would had been recognized in net income if the associate had directly disposed of the asset to which it relates. Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value. A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Company classifies its interests in joint arrangements as either joint operations or joint ventures depending on the Company’s rights to the assets and obligations for the liabilities of the arrangements. Joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. The Company recognizes its interest in the joint ventures as an investment and accounts for that investment using the equity method. As of December 31, 2019 and 2018 the Company does not have an interest in joint operations. If an investment interest is reduced, but continues to be classified as joint arrangement, the Company reclassifies to profits or losses the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest if the gain or loss would be required to be reclassified to consolidated net income on the partial disposal of the related investment. The Company reclassifies the proportion to the interest disposed of in joint ventures investment interest reduction. During the years ended December 31, 2019, 2018 and 2017 the Company does not have a significant disposal or partial disposal in joint arrangements. Upon loss of joint control over the joint venture, the Company measures and recognizes any retained investment at its fair value. |
Property, plant and equipment | 3.15 Property, plant and equipment Property, plant and equipment are initially recorded at their cost of acquisition and/or construction and are presented net of accumulated depreciation and accumulated impairment losses, if any. The borrowing costs related to the acquisition or construction of qualifying asset is capitalized as part of the cost of that asset, if material. Major maintenance costs are capitalized as part of total acquisition cost. Routine maintenance and repair costs are expensed as incurred. Investments in progress consist of long-lived assets not yet in service, in other words, that are not yet ready for the purpose that they were bought, built or developed. The Company expects to complete those investments during the following 12 months. Depreciation is computed using the straight-line method over the asset’s estimated useful life. Where an item of property, plant and equipment comprises major components having different useful lives, they are accounted and depreciated for as separate items (major components) of property, plant and equipment. The Company estimates depreciation rates, considering the estimated useful lives of the assets. The estimated useful lives of the Company’s assets are as follows: Years Buildings 25-50 Machinery and equipment 10-20 Distribution equipment 7-15 Refrigeration equipment 5-7 Returnable bottles 1.5-3 Leasehold improvements The shorter of lease term or 15 years Information technology equipment 3-5 Other equipment 3-10 The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds (if any) and the carrying amount of the asset and is recognized in consolidated income statement. Returnable and non-returnable Coca-Cola FEMSA has two types of bottles: returnable and non-returnable. • Non-returnable: • Returnable: Are classified as long-lived assets as a component of property, plant and equipment. Returnable bottles are recorded at acquisition cost and for countries with hyperinflationary economies, restated according to IAS 29, Depreciation of returnable bottles is computed using the straight-line method considering their estimated useful lives. There are two types of returnable bottles: • Those that are in Coca-Cola FEMSA’s control within its facilities, plants and distribution centers; and • Those that have been placed in the hands of customers, and still belong to Coca-Cola FEMSA. Returnable bottles that have been placed in the hands of customers are subject to an agreement with a retailer pursuant to which Coca-Cola FEMSA retains ownership. These bottles are monitored by sales personnel during periodic visits to retailers and Coca-Cola FEMSA has the right to charge any breakage identified to the retailer. Bottles that are not subject to such agreements are expensed when placed in the hands of retailers. Coca-Cola FEMSA’s returnable bottles are depreciated according to their estimated useful lives (3 years for glass bottles and 1.5 years for PET bottles). Deposits received from customers are amortized over the same useful estimated lives of the bottles. |
Leases | 3.16 Leases Under IFRS 16, the Company assesses at its inception whether a contract is, or contains, a lease when the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration. The Company assesses whether a contract is a lease arrangement, when: • The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all the capacity of a physically distinct asset. If the lessor has substantive substitution rights, then the asset is not identified; • The Company has the right to obtain substantially all the economic benefits from the use of the asset throughout the period of use; and • The Company has the right to direct the use of the asset when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. When the use of the asset is predetermined, the Company has the right to direct the use of the asset if either: i) it has the right to operate the asset; or ii) the design of the asset predetermines how and for what purpose it will be used. The Company enters into leases mainly for land and buildings for its retail stores and other buildings for its offices. In general, lease agreements for retail stores last 15 years, and office space agreements last between three and five years. As a lessee Initial recognition At the lease commencement date, the Company recognizes a right-of-use right-of-use right-of-use The lease liability is initially measured at the present value of the lease payments to be made over the lease term. The future lease payments are discounted using the Company’s incremental borrowing rate, which is considered as the rate that the Company would negotiate when financing for a similar period, and with a similar guarantee, to obtain an asset of a similar value to the lease asset. For the Company, the discount rate used to measure the right of use asset and its lease liability is the rate related to the cost of financing for the Company from the consolidated perspective (“ Ultimate Parent Company”) Lease payments included in the measurement of the lease liability, comprise the following: • Fixed payments, including in-substance • Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; and • The exercise price under a purchase option that the Company is reasonably certain to exercise, an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. • Amounts expected to be payable to the lessor under residual value guarantees. The Company does not recognize a right-of-use low-value Subsequent measurement The right-of-use right-of-use right-of-use The lease liability is subsequently measured at amortized cost using the effective interest rate method. The Company remeasures the lease liability when there is a modification in the lease term or amounts of expected payments under a residual value guarantee and when it is arising from a change in an index or rate, without modifying the incremental borrowing rate (unless it results from a change in a floating rate). The lease liability is remeasured using a new incremental borrowing rate at the date of the modification when: • An extension or termination option is exercised modifying the non-cancellable • The Company changes its assessment of whether it will exercise a purchase option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying value amount of the right-of-use right-of-use A modification to the lease agreement is accounted for as a separate lease if both of the following conditions are met: i) the modification increases the scope of the lease by adding the right-to-use In the consolidated statement of income and consolidated statement of comprehensive income, the interest expense from the lease liability is recognized as a component of finance costs, unless it is directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company’s accounting policy on borrowing costs. Depreciation of the right-of-use Leasehold improvements on lease agreements are recognized as a part of property, plant and equipment in the consolidated financial statements and are amortized using the straight-line method over the shorter of either the useful life of the assets or the related lease term contract. The Company has recognized a significant amount of right-of-use As a lessor If the Company acts as a lessor, it determines at lease inception if each arrangement is either a finance lease or an operating lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the underlying asset. If not, all other leases are classified as operating leases. The Company considers certain relevant indicators, amongst others, to determine if all the risks and rewards are substantially transferred, such as: • Whether the lease is for the major part of the economic life of the asset, or • Whether the minimum future lease payments compare with the fair value of the underlying asset. The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of the consolidated statement of income, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The Company also recognizes costs, including depreciation of the leased assets, incurred in earning the lease revenue. The Company initially recognizes an amount equal to the net investment of the lease, that is, the present value of future lease payments plus any guarantee of residual value that is granted; and it includes the distinction between the current portion of the receivables with maturity less than or equal to a term of 12 months and the non-current (i) fixed payments, including those that are in substance fixed payments, which may include a variability, but that are unavoidable in essence, less any lease incentive to be received; (ii) payments for variable rent that depend on an index or a rate at the start date of the lease contract; (iii) amounts payable by the lessee under residual value guarantees (if applicable); (iv) the price related to a purchase option if the lessee is reasonably certain to exercise the option (if applicable); and (v) payments for penalties derived from the termination of the lease, if the term of the lease reflects that the lessee will exercise an option to terminate the lease. All intra-group right-of-use |
Borrowing costs | 3.17 Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Borrowing costs may include: • Interest expense; and • Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in consolidated income statement in the period in which they are incurred. |
Intangible assets | 3.18 Intangible assets Intangible assets are identifiable non-monetary Intangible assets with finite useful lives are amortized and mainly consist of: • Information technology and management system costs incurred during the development stage which are currently in use. Such amounts are capitalized and then amortized using the straight-line method over their expected useful lives, with a range in useful lives from 3 to 10 years. Expenditures that do not fulfill the requirements for capitalization are expensed as incurred. • Long-term alcohol licenses are amortized using the straight-line method over their estimated useful lives, which range between 12 and 15 years, and are presented as part of intangible assets with finite useful lives. Amortized intangible assets, such as finite lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable through its expected future cash flows. Intangible assets with an indefinite life are not amortized and are subject to impairment tests on an annual basis as well as whenever certain circumstances indicate that the carrying amount of those intangible assets may exceed their recoverable value. The Company’s intangible assets with an indefinite life mainly consist of rights to produce and distribute Coca-Cola trademark products in the Company’s territories. These rights are contained in agreements that are standard contracts that The Coca-Cola Company has with its bottlers. Additionally, the Company’s intangible assets with an indefinite life also consist of FEMSA Comercio – Health Division’s trademark rights which consist of standalone beauty store retail banners, pharmaceutical distribution to third-party clients and the production of generic and bioequivalent pharmaceuticals. As of December 31, 2019, and in regards to a joint restructure with TCCC for the bottling agreements, Coca-Cola FEMSA had four bottler agreements in Mexico: (i) the agreements for the Valley of Mexico territory, which are up for renewal in June 2023, (ii) the agreement for the Southeast territory, which is up for renewal in June 2023, (iii) one agreement for the Bajio territory, which is up for renewal in May 2025 and (iv) the agreement for the Golfo territory, which is up for renewal in May 2025. As of December 31, 2019, and in regards to a joint restructure with TCCC for the bottling agreements, Coca-Cola FEMSA had two bottler agreements in Brazil which are up for renewal in October 2027; and three bottler agreements in Guatemala, which are up for renewal in March 2025 and April 2028 (two contracts). In addition, Coca-Cola FEMSA had one bottler agreement in each country which are up for renewal as follows: Argentina, which is up for renewal in September 2024; Colombia which is up for renewal in June 2024; Panama which is up for renewal in November 2024; Costa Rica which is up for renewal in September 2027; Nicaragua which is up for renewal in May 2026; and Uruguay which is up for renewal in June 2028. The bottler agreements are automatically renewable for ten-year |
Non-current assets held for sale and discontinued operations | 3.19 Non-current Non-current non-current • The appropriate level of management must be committed to a plan to sell the asset (or disposal group); • An active programme to locate a buyer and complete the plan must have been initiated; • The active (disposal group) must be actively marketed for sale at a price is reasonable in relation to its current fair value; and • The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification. Non-current The discontinued operations are operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity, that either has been disposed of, or is classified as held for sale, and: • Represents a separate major line of business or geographical area of operations; • Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or • Is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the continuing operations and are also presented as a single entity as earnings (loss) after income taxes of discontinued operations in the income statement. For further information, please see Note 4. In addition, the information included elsewhere in this report, includes only continuing operations otherwise it would be indicated the opposite. |
Impairment of long-lived assets | 3.20 Impairment of long-lived assets At the end of each reporting period, the Company reviews the carrying amounts of its long-lived tangible and intangible assets with finite lives to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual CGU, or otherwise they are allocated to the smallest CGU for which a reasonable and consistent allocation basis can be identified. For the purpose of impairment testing goodwill acquired in a business combination, from the acquisition date, is allocated to each of the group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. For goodwill and other indefinite lived intangible assets, the Company tests for impairment on an annual basis and whenever certain circumstances indicate that the carrying amount of related CGU might exceed its recoverable amount. Recoverable amount is the higher of fair value less costs to sell and value-in-use. value-in-use, pre-tax If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in consolidated net income. Where the conditions leading to an impairment loss no longer exist, it is subsequently reversed, that is, the carrying amount of the asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in consolidated net income. Impairment losses related to goodwill are not reversible. For the year ended December 31, 2019, 2018 and 2017, the Company recognized impairment losses of Ps. 1,018, Ps. 432 and 2,063, respectively (see Note 20). |
Financial liabilities and equity instruments | 3.21 Financial liabilities and equity instruments 3.21.1 Classification as debt or equity Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3.21.2 Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. 3.21.3 Financial liabilities Initial recognition and measurement Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at amortized cost, except for derivatives instruments designated as hedging instruments in an effective hedge, financial liabilities arising from transfer of a financial asset that does not qualify for derecognition, financial guarantee contracts and contingent consideration obligation in a business combination, as appropriate, which are recognized at FVTPL. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value less, in the case of loans and borrowings, directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings, and derivative financial instruments, see Note 3.9. Subsequent measurement The subsequent measurement of the Company’s financial liabilities depends on their classification as described below. 3.21.4 Loans and borrowings After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the consolidated income statements when the liabilities are derecognized as well as through the effective interest method amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest method. The effective interest method amortization is included in interest expense in the consolidated income statements, see Note 19. 3.21.5 Derecognition A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated income statements. |
Provisions | 3.22 Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount of the receivable can be measured reliably. The Company recognizes a provision for a loss contingency when it is probable (i.e., the probability that the event will occur is greater than the probability that it will not) that certain effects related to past events, would materialize and can be reasonably quantified. These events and their financial impact are also disclosed as loss contingencies in the consolidated financial statements when the risk of loss is deemed to be other than remote. The Company does not recognize an asset for a gain contingency until the gain is realized, see Note 26. Restructuring provisions are recognized only when the recognition criteria for provisions are fulfilled. The Company has a constructive obligation when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline. Furthermore, the employees affected must have been notified of the plan’s main features. |
Post-employment and other long-term employee benefits | 3.23 Post-employment and other long-term employee benefits Post-employment and other long-term employee benefits, which are considered to be monetary items, include obligations for pension and retirement plans, seniority premiums and postretirement medical services. In Mexico, the economic benefits from employee benefits and retirement pensions are granted to employees with 10 years of service and minimum age of 60. In accordance with Mexican Labor Law, the Company provides seniority premium benefits to its employees under certain circumstances. These benefits consist of a one-time For defined benefit retirement plans and other long-term employee benefits, such as the Company’s sponsored pension and retirement plans, seniority premiums and postretirement medical service plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each reporting period. All remeasurements effects of the Company’s defined benefit obligation such as actuarial gains and losses are recognized directly in OCI. The Company presents service costs within cost of goods sold, administrative and selling expenses in the consolidated income statements. The Company presents net interest cost within interest expense in the consolidated income statements. The projected benefit obligation recognized in the consolidated statement of financial position represents the present value of the defined benefit obligation as of the end of each reporting period. Certain subsidiaries of the Company have established plan assets for the payment of pension benefits, seniority premiums and postretirement medical services through irrevocable trusts of which the employees are named as beneficiaries, which serve to decrease the funded status of such plans’ related obligations. Costs related to compensated absences, such as vacations and vacation premiums, are recognized on an accrual basis. The Company recognizes a liability and expense for termination benefits at the earlier of the following dates: a) When it can no longer withdraw the offer of those benefits; or b) When it recognizes costs for a restructuring that is within the scope of IAS 37 “ Provisions, Contingent Liabilities and Contingent Assets The Company is demonstrably committed to a termination when, and only when, the entity has a detailed formal plan for the termination and is without realistic possibility of withdrawal. A settlement occurs when an employer enters into a transaction that eliminates all further legal for constructive obligations for part or all of the benefits provided under a defined benefit plan. A curtailment arises from an isolated event such as closing of a plant, discontinuance of an operation or termination or suspension of a plan. Gains or losses on the settlement or curtailment of a defined benefit plan are recognized when the settlement or curtailment occurs. |
Revenue recognition | 3.24 Revenue recognition The Company recognizes revenue when the control of performance obligations included in the contract are transferred to the customer. Control refers to the ability that customer has to direct the use and also to obtain substantially all the benefits of the goods or services exchanged. Management defined the following as indicators to analyze the timing and circumstances as well as the amount by which the revenues would be recognized: • Identify the contract(s) with a customer (written, oral or any other according with business practices); • Evaluating the goods and services committed in the contract and identify how each performance obligation in the contract will be transferred to the customer; • Considering the contractual terms jointly with business practices to determinate the transaction price. The transaction price is the amount of the consideration the Company expects to receive in exchange for transferring the committed goods and services to the customer, excluding tax on sales. The expected consideration in a contract should include fixed or variable amounts, or both; • Allocate the transaction price to each performance obligations in the contract (to each good and service that is different) for an amount that represents the consideration to which the entity expects to receive in exchange to the goods and services arranged with the customer; and • Recognise revenue when (or as) the entity satisfies a performance obligation in exchange for committed goods and services. All of the above conditions are typically met at the point in time that goods are delivered to the customer at the customers’ facilities. Net sales reflect units delivered at list prices reduced by promotional allowances and discounts. The benefits granted from supplier to the Company as discounts and incentives are recognized as benefit in the cost of goods sold, because they do not represent an additional revenue by mean of which a separate performance obligation is to be satisfied, with a separate reasonable fair value to be identified by the Company. The Company generates revenues for the following activities: Sale of goods It includes the sales of goods by all the subsidiaries of the Company, mainly the sale of beverages of the leading brand of Coca-Cola and the sale or consumption of goods in the small-format stores of the FEMSA Comercio – Proximity, FEMSA Comercio – Health and FEMSA Comercio – Fuel Divisions; in which the revenue is recognized in the point of time those products were sold to the customers. See Note 28. Rendering of services It includes the revenues of distribution services, maintenance services and packing of raw materials that the Company recognizes as revenues as the related performance obligation is satisfied. The Company recognizes revenues for rendering of services during the time period in which the performance obligation is satisfied according with the following conditions: • The customer receives and consume simultaneously the benefits, as the Company satisfies the obligation; • The customer controls related assets, even if the Company improve them; • The revenues can be measured reliably; and • Is probable that economic benefits will flow to the Company. Financial products It includes interest generated on related financial assets used by third parties which includes accounts receivables recorded when the following conditions are accomplished: • The revenues can be measured reliably; and • It is probable that economic benefits will flow to the Company. In addition, the Company evaluates the revenue recognition based on the classification previously defined for the financial asset that generates the related financial product, according with the business models establishes for the financial instruments classified by the Company. See Note 3.9. The main financial instruments of the Company that could generate a financial product are trade accounts receivables classified as financial assets held to maturity to cover cash flows which are measured at amortized cost through the effective interest rate method, applying EIR, which is the rate that exactly discounts the collections of cash flows to the expected life of the related financial asset. Rewards programs The Company recognizes a provision for the obligation to award additional benefits to its customers. Management considers for those effects, the expectation that some percentage of its customers would not redeem their rewards points in future based on previous experience. Variable allowances granted to customers The Company adjust the transaction price based on its estimated amount of rebates and promotional allowances, among others. Those estimations include commercial commitments with customers and previous expected performance. The variable allowances are assigned to each related performance obligation. Contracts costs The incremental costs to obtain a contract with a customer are recognized as an asset (capitalized) if the Company expect to recover those costs. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. The Company recognizes those costs as an expense in the income statement when the income associated with those costs is incurred for a period equal to or less than a year. For any other cost that is related with the fulfillment of a contract with a customer, but it is not part of the own revenue recognition, then this will be considered as an asset including related costs, but only if those costs are related with a contract or with a contract that the Company expects to identify specifically and also, those costs generates or improves the resources of the Company that will be applied to satisfy, or continue satisfying; the performance obligations in the future and that is expected to recover those costs. The asset recognized is amortized progressively in the same manner as the exchange of the goods and services are transferred to the customer, accordingly, the asset is recognized in the income statement through its amortization in the same period of time in which the revenue is recognized. |
Administrative and selling expenses | 3.25 Administrative and selling expenses Administrative expenses include labor costs (salaries and other benefits, including employee profit sharing (“PTU”)) of employees not directly involved in the sale or production of the Company’s products, as well as professional service fees, the depreciation of office facilities, amortization of capitalized information technology system implementation costs and any other similar costs. Selling expenses include: • Distribution: labor costs, outbound freight costs, warehousing costs of finished products, write off of returnable bottles in the distribution process, depreciation and maintenance of trucks and other distribution facilities and equipment. For the years ended December 31, 2019, 2018 and 2017, these distribution costs amounted to Ps. 25,068, Ps. 23,421 and Ps. 25,041, respectively; • Sales: labor costs and sales commissions paid to sales personnel; and • Marketing: promotional expenses and advertising costs. PTU is paid by the Company’s Mexican subsidiaries to eligible employees. In Mexico, employee profit sharing is computed at the rate of 10% of the individual company taxable income. PTU in Mexico is calculated from the same taxable income for income tax, except for the following: a) neither tax losses from prior years nor the PTU paid during the year are deductible; and b) payments exempt from taxes for the employees are fully deductible in the PTU computation. |
Income taxes | 3.26 Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. Income taxes are charged to consolidated income statements as they are incurred, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively. 3.26.1 Current income taxes Income taxes are recorded in the results of the year they are incurred. 3.26.2 Deferred income taxes Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, including tax loss carryforwards and certain tax credits, to the extent that it is probable that future taxable profits, reversal of existing taxable temporary differences and future tax planning strategies that will create taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from initial recognition of goodwill (no recognition of deferred tax liabilities) or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In the case of Brazil, where certain goodwill amounts are at times deductible for tax purposes, the Company recognizes in connection with the acquisition accounting a deferred tax asset for the tax effect of the excess of the tax basis over the related carrying value. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred income taxes are classified as a long-term asset or liability, regardless of when the temporary differences are expected to reverse. Deferred tax relating to items recognized in the other comprehensive income are recognized in correlation to the underlying transaction in OCI. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. In Mexico, the income tax rate is 30%, for 2019, 2018 and 2017, and it is expected to remain at 30% for the following years. |
Share-based payments arrangements | 3.27 Share-based payments arrangements Senior executives of the Company receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments. The equity instruments are granted and then held by a trust controlled by the Company until vesting. They are accounted for as equity settled transactions. The award of equity instruments is a fixed monetary value on the grant date. Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity-settled share-based payments is expensed and recognized based on the graded vesting method over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in consolidated income statements such that the cumulative expense reflects the revised estimate. |
Earnings per share | 3.28 Earnings per share The Company presents basic and diluted earnings per share (“EPS”) data for its shares. Basic EPS is calculated by dividing the net income attributable to controlling interest by the weighted average number of shares outstanding during the period adjusted for the weighted average of own shares purchased in the year. Diluted EPS is determined by adjusting the weighted average number of shares outstanding including the weighted average of own shares purchased in the year for the effects of all potentially dilutive securities, which comprise share rights granted to employees described above. |
Issuance of subsidiary common shares | 3.29 Issuance of subsidiary common shares The Company recognizes the issuance of a subsidiary’s common shares as an equity transaction. The difference between the book value of the shares issued and the amount contributed by the non-controlling paid-in |
Company business (Tables)
Company business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Significant Investments in Subsidiaries | The following is a description of the Company’s businesses, along with its interest ownership in each reportable segment: % Ownership Business 2019 2018 Activities Coca-Cola FEMSA, 47.2% (1) (56.0% of the voting shares) 47.2% (1) (63.0% of the voting shares) Production, distribution and marketing of certain FEMSA Comercio – Proximity Division (3) 100% 100% Small-box FEMSA Comercio – Fuel Division 100% 100% Retail service stations for fuels, motor oils, lubricants and car care products under the trade name “OXXO GAS” with operations in Mexico. FEMSA Comercio – Health Division 100% (2) Various (2) Drugstores operations in Chile, Colombia and Ecuador, mainly under the trademark “Cruz Verde”, “Fybeca” and “Sana Sana”; and in Mexico under various brands such as “YZA”,” La Moderna” and “Farmacon”. Heineken investment 14.8% 14.8% Heineken N.V. and Heineken Holding N.V. shares, which represents an aggregate of 14.8% economic interest in both entities (“Heineken Group”). Other businesses 100% 100% Companies engaged in the production and distribution of coolers, commercial refrigeration equipment, plastic cases, food processing, preservation and weighing equipment; logistic transportation and maintenance services to FEMSA’s subsidiaries and to third parties. (1) The Company controls Coca-Cola FEMSA’s relevant activities. On January 31, 2019, Coca-Cola FEMSA, S.A.B. de C.V. Extraordinary General Shareholders’ Meeting approved the following: (i) an eight-for-one (2) The former shareholders of Farmacias YZA had a 18.6% stake in Cadena Comercial de Farmacias, S.A.P.I. de C.V., a subsidiary of FEMSA that holds all pharmacy business in Mexico (which we refer to as “CCF”). On November 13, 2019, FEMSA completed the acquisition of the remaining interest in Farmacias YZA. In 2018, FEMSA had 60% interest on Grupo Socofar (“Socofar”). As of December 13, 2019, FEMSA recognized the remaining 40% interest in Grupo Socofar (“Socofar”) following the exercise of a put right by the minority partner to sell its non - controlling interest in Socofar. (3) In 2018, the Company made a change in its reporting segment previously named FEMSA Comercio – Retail Division in which the activities not directly related with FEMSA Comercio – Retail Division where eliminated from the Proximity stores, including restaurant and discount retail units, before including in this operating segment. The reclassified operations from this segments is now included in “Others”. |
Basis of Preparation (Tables)
Basis of Preparation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Reconciliation Operating Lease Commitments | As of January 1, 2019, the main effects in the relevant line items of FEMSA’s statement of financial position were as follows: Operating lease commitments as of December 31, 2018 Ps. 82,216 Discounted operating lease commitments 50,827 Less: Commitments relating to short-term leases and low-value 699 Add: Commitments relating to leases previously classified as finance leases 92 Lease liabilities and right-of-use Ps. 50,220 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of Exchange Rates of Local Currencies Translated to Mexican Pesos | Exchange Rates of Local Currencies Translated to Mexican Pesos (1) Functional / Average Exchange Rate for Exchange Rate as of Country or Zone 2019 2018 2017 December 31, December 31, Guatemala Quetzal 2.50 2.56 2.57 2.45 2.54 Costa Rica Colon 0.03 0.03 0.03 0.03 0.03 Panama U.S. dollar 19.26 19.24 18.93 18.85 19.68 Colombia Colombian peso 0.01 0.01 0.01 0.01 0.01 Nicaragua Cordoba 0.58 0.62 0.63 0.56 0.61 Argentina Argentine peso 0.41 0.73 1.15 0.31 0.52 Venezuela a) Bolivar — — a ) — — Brazil Reais 4.89 5.29 5.94 4.68 5.08 Chile Chilean peso 0.03 0.03 0.03 0.03 0.03 Euro Zone Euro (€) 21.56 22.71 21.32 21.12 22.54 Peru Nuevo Sol 5.77 5.85 5.78 5.68 5.83 Ecuador U.S. dollar 19.26 19.24 18.93 18.85 19.68 Philippines Philippine peso — 0.37 0.38 — 0.37 Uruguay Uruguayan peso 0.55 0.63 0.66 0.51 0.61 (1) Exchange rates published by the Central Bank of each country where the Company operates. |
Disclosure of Recognition of Effects of Inflation in Countries with Hyperinflationary Economic Environments | As of December 31, 2019, 2018, and 2017, the operations of the Company are classified as follows: Country Cumulative Type of Economy Cumulative Type of Economy Cumulative Type of Economy Mexico 13.2 % Non-hyperinflationary 15.7 % Non-hyperinflationary 12.7 % Non-hyperinflationary Guatemala 11.8 % Non-hyperinflationary 12.2 % Non-hyperinflationary 13.5 % Non-hyperinflationary Costa Rica 5.8 % Non-hyperinflationary 5.7 % Non-hyperinflationary 2.5 % Non-hyperinflationary Panama 0.5 % Non-hyperinflationary 2.1 % Non-hyperinflationary 2.3 % Non-hyperinflationary Colombia 11.0 % Non-hyperinflationary 13.4 % Non-hyperinflationary 17.5 % Non-hyperinflationary Nicaragua 15.6 % Non-hyperinflationary 13.1 % Non-hyperinflationary 12.3 % Non-hyperinflationary Argentina (a) 179.4 % Hyperinflationary 158.4 % Hyperinflationary 101.5 % Hyperinflationary Venezuela — — — — 30,690.0 % Hyperinflationary Brazil 11.1 % Non-hyperinflationary 25.0 % Non-hyperinflationary 21.1 % Non-hyperinflationary Philippines — — 11.9 % Non-hyperinflationary 7.5 % Non-hyperinflationary Euro Zone 3.6 % Non-hyperinflationary 2.7 % Non-hyperinflationary 2.7 % Non-hyperinflationary Chile 8.3 % Non-hyperinflationary 9.7 % Non-hyperinflationary 9.7 % Non-hyperinflationary Peru 5.2 % Non-hyperinflationary 9.3 % Non-hyperinflationary 9.3 % Non-hyperinflationary Ecuador 0.3 % Non-hyperinflationary 30.3 % Non-hyperinflationary 30.3 % Non-hyperinflationary Uruguay 22.0 % Non-hyperinflationary 25.3 % Non-hyperinflationary — – |
Disclosure of Estimated Useful Lives of Company's Assets | The estimated useful lives of the Company’s assets are as follows: Years Buildings 25-50 Machinery and equipment 10-20 Distribution equipment 7-15 Refrigeration equipment 5-7 Returnable bottles 1.5-3 Leasehold improvements The shorter of lease term or 15 years Information technology equipment 3-5 Other equipment 3-10 |
Mergers, Acquisitions and Dis_2
Mergers, Acquisitions and Disposals (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Unaudited Pro Forma Financial Information | Unaudited pro forma financial data for the acquisitions, is as follow: Unaudited pro forma financial December 31, 2019 Total revenues Ps. 516,496 Income before income taxes and share of the profit of equity accounted investees 33,823 Net income 29,516 Basic net controlling interest income per share Series “B” Ps. 1.11 Basic net controlling interest income per share Series “D” 1.38 The following unaudited consolidated pro forma financial data represent the Company’s historical financial statements, adjusted to give effect to (i) the acquisitions of Coca-Cola FEMSA and Caffenio as if these acquisitions has occurred on January 1, 2018; and (ii) certain accounting adjustments mainly related to the pro forma depreciation of fixed assets of the acquired company. Unaudited pro forma financial data for the acquisitions, is as follow: Unaudited pro forma financial Total revenues Ps. 473,420 Income before income taxes and share of the profit of equity accounted investees 34,266 Net income 33,521 Basic net controlling interest income per share Series “B” Ps. 1.22 Basic net controlling interest income per share Series “D” 1.52 The following unaudited consolidated pro forma financial data represent the Company’s historical financial statements, adjusted to give effect to (i) the acquisition of Coca-Cola FEMSA Philippines as if this acquisition has occurred on January 1, 2017; and (ii) certain accounting adjustments mainly related to the pro forma depreciation of fixed assets of the acquired company. Unaudited pro forma financial data for the acquisition included, is as follow: Unaudited pro forma financial Total revenues Ps. 462,112 Income before income taxes and share of the profit of equity accounted investees 39,917 Net income 37,311 Basic net controlling interest income per share Series “B” Ps. 2.12 Basic net controlling interest income per share Series “D” 2.65 |
Summary of Income Statement of Discontinued Operations | For the years ended December 31, 2018 and 2017, the income statement of discontinued operations was as follows: 2018 2017 Total revenues Ps. 24,167 Ps. 20,524 Cost of goods sold 17,360 12,346 Gross profit 6,807 8,178 Operating expenses 5,750 6,865 Other expenses, net 7 134 Financial income, net (185 ) (64 ) Foreign exchange gain, net (73 ) (22 ) Income before income taxes 1,308 1,265 Income taxes 466 370 Net income for discontinued operations Ps. 842 Ps. 895 Less: non-controlling 391 469 Controlling interest in discontinued operations Ps. 451 Ps . 426 Accumulated currency translation effect for the subsidiary disposal (811 ) 2,830 Gain from sale 3,335 — Net income for subsidiary disposal – controlling interest 2,975 3,256 Net income from discontinued operations Ps. 3,366 Ps. 3,725 |
Coca-Cola FEMSA [member] | |
Statement [LineItems] | |
Summary of Preliminary Estimate of Fair Value of Net Assets Acquired and Reconciliation of Cash Flows | The final allocation on the purchase prices to the fair value of the net assets acquired is as follows: 2018 Total current assets (including cash acquired of Ps. 860) Ps. 1,864 Total non-current 4,031 Distribution rights 1,715 Total assets 7,610 Total liabilities (3,691 ) Net assets acquired 3,649 Goodwill (1) 2,903 Total consideration transferred 6,552 Cash acquired (860 ) Net cash paid Ps. 5,692 (1) As a result of the purchase price allocation which was finalized in 2019, additional fair value adjustments from those recognized in 2018 have been recognized as follows: decrease in total non-current |
Summary of Selected Income Statement for Period from Acquisition Date | The income statement information of these acquisitions for the period from the acquisition date through to December 31, 2018 is as follows: Income Statement 2018 Total revenues Ps. 4,628 Income before income taxes 496 Net income Ps. 413 |
Other acquisitions [member] | |
Statement [LineItems] | |
Summary of Preliminary Estimate of Fair Value of Net Assets Acquired and Reconciliation of Cash Flows | The preliminary allocation on the aggregated purchase prices to the fair value of the net assets acquired is as follows: 2019 Total current assets (including cash acquired of Ps. 389) Ps. 4,085 Total non-current 5,250 Total assets 9,335 Total liabilities 8,153 Net assets acquired 1,182 Goodwill 6,542 Non-controlling (53 ) Total consideration transferred 7,671 Amount to be paid (147 ) Cash acquired (389 ) Net cash paid 7,135 |
Summary of Selected Income Statement for Period from Acquisition Date | The income statement information of these acquisitions for the period from the acquisition date through to December 31, 2019 is as follows: Income Statement 2019 Total revenues Ps. 8,594 Income before income taxes 37 Net loss Ps. 1 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents at the end of the reporting period as shown in the consolidated statements of financial position and cash flows is comprised of the following: December 31, December 31, Cash and bank balances Ps. 31,905 Ps. 31,768 Cash equivalents (see Note 3.5) 33,657 30,279 Ps. 65,562 Ps. 62,047 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Schedule of Investments Classified as Amortized Cost | The following is a detail of such investments: Fixed rate Corporate debt securities 2019 2018 Acquisition cost Ps. 1,048 Ps. 906 Accrued interest 4 4 Total fixed rate 1,052 910 Variable rate Government debt securities Acquisition cost — 8,660 Accrued interest — 28 Corporate debt securities Acquisition cost 11,307 21,259 Accrued interest 7 67 Total variable rate 11,314 30,014 Total investments Ps. 12,366 Ps. 30,924 |
Trade Accounts Receivable, Net
Trade Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Disclosure of Accounts Receivable, Net | December 31, December 31, Trade accounts receivables Ps. 26,942 Ps. 25,615 The Coca-Cola Company (see Note 15) 813 1,173 Loans to employees 115 108 Heineken Group (see Note 15) 749 768 Others 3,203 2,614 Allowance for expected credit losses (2,189 ) (2,114 ) Ps. 29,633 Ps. 28,164 |
Disclosure of Aging of Accounts Receivable (Days Current or Outstanding) | Aging of accounts receivable (days current or outstanding) December 31, December 31, Current Ps. 24,696 Ps. 22,789 0-30 3,278 4,081 31-60 1,345 869 61-90 668 598 91-120 244 241 120+ days 1,591 1,700 Total Ps. 31,822 Ps. 30,278 |
Disclosure of Changes in Allowance for Expected Credit Losses | 7.2 Changes in the allowance for expected credit losses 2019 2018 2017 Balance at the beginning of the period Ps. 2,114 Ps. 1,375 Ps. 1,193 Effect of adoption of IFRS 9 — 468 — Adjusted balance at the beginning of the period 2,114 1,843 1,193 Allowance for the period 709 348 530 Additions (write-offs) of uncollectible accounts (1) (269 ) (402 ) (400 ) Addition from business combinations — 1 86 Effects of changes in foreign exchange rates (365 ) 324 (32 ) Effect of Venezuela deconsolidation — — (2 ) Balance at the end of the period Ps. 2,189 Ps. 2,114 Ps. 1,375 (1) In 2018, includes the effect of Coca-Cola |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Inventories | December 31, December 31, Finished products Ps. 32,853 Ps. 27,145 Raw materials 5,331 5,363 Spare parts 1,198 1,362 Work in process 113 225 Inventories in transit 1,528 1,591 Ps. 41,023 Ps. 35,686 |
Summary of Changes in Inventories | For the years ended 2019, 2018 and 2017, changes in inventories are comprised as follows and included in the consolidated income statement under the cost of goods sold caption: 2019 2018 2017 Changes in inventories of finished goods and work in progress Ps. 221,540 Ps. 204,688 Ps. 188,022 Raw materials and consumables used 84,502 79,825 85,568 Total Ps. 306,042 Ps. 284,513 Ps. 273,590 |
Other Current Assets and Othe_2
Other Current Assets and Other Current Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Current Assets | 9.1 Other current assets December 31, December 31, Prepaid expenses Ps. 2,201 Ps. 2,714 Recoverable taxes 268 316 Agreements with customers 294 146 Licenses 575 146 Assets classified as held for sale 197 49 Other 553 49 Ps. 4,088 Ps. 3,420 |
Summary of Prepaid Expenses | As of December 31, 2019 and 2018, Company’s prepaid expenses are as follows: December 31, December 31, Advances for inventories Ps. 1,359 Ps. 1,500 Advertising and promotional expenses paid in advance 89 510 Advances to service suppliers 60 236 Prepaid leases 239 211 Prepaid insurance 129 117 Others 325 140 Ps. 2,201 Ps. 2,714 |
Summary of Other Current Financial Assets | 9.2 Other current financial assets December 31, December 31, Restricted cash Ps. 92 Ps. 101 Derivative financial instruments (see Note 21) 1,008 735 Note receivables (1) 46 42 Ps. 1,146 Ps. 878 (1) The carrying value approximates its fair value as of December 31, 2019 and 2018. |
Summary of Carrying of Restricted Cash Pledged | As of December 31, 2019 and 2018, the carrying of restricted cash pledged were: December 31, December 31, Brazilian reais Ps. 89 Ps. 98 Chilean pesos 3 3 Ps. 92 Ps. 101 |
Equity Accounted Investees (Tab
Equity Accounted Investees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Equity Accounted Investees | As of December 31, 2019 and 2018, Company’s equity accounted investees are as follows: Ownership Percentage Carrying Value Investee Principal Place of Incorporation December 31, 2019 December 31, December 31, December 31, Heineken (1) (2) Beverages The Netherlands 14.8 % 14.8 % Ps. 83,789 Ps. 83,461 Coca-Cola FEMSA: Joint ventures: Compañía Panameña de Bebidas, S.A.P.I. de C.V. Beverages Mexico 50.0 % 50.0 % 486 1,550 Dispensadoras de Café, S.A.P.I. de C.V. Services Mexico 50.0 % 50.0 % 172 162 Fountain Agua Mineral, L.T.D.A. Beverages Brazil 50.0 % 50.0 % 851 826 Associates Promotora Industrial Azucarera, S.A. Sugar Mexico 36.4 % 36.4 % 3,274 3,120 Industria Envasadora de Querétaro, S.A. Canned Mexico 26.5 % 26.5 % 194 179 Industria Mexicana de Reciclaje, S.A. de C.V. (“IMER”) Recycling Mexico 35.0 % 35.0 % 121 129 Jugos del Valle, S.A.P.I. de C.V. Beverages Mexico 28.8 % 26.3 % 1,929 1,571 Leao Alimentos e Bebidas, L.T.D.A. Beverages Brazil 24.7 % 24.7 % 1,931 2,084 Other investments in Coca-Cola FEMSA’s companies Various Various Various Various 793 897 FEMSA Comercio: Raizen Conveniências (4) Proximity Brazil 50.0 % — 3,410 — Other investments (1) (3) Various Various Various Various 520 336 Ps. 97,470 Ps. 94,315 (1) Associate. (2) As of December 31, 2019 and 2018 comprised of 8.63% of Heineken, N.V. and 12.26% of Heineken Holding, N.V., which represents an economic interest of 14.76% in Heineken Group. The Company has significant influence, mainly, due to the fact that it participates in the Board of Directors of Heineken Holding, N.V. and the Supervisory Board of Heineken N.V.; and for the material transactions between the Company and Heineken Group. (3) Joint ventures. (4) On November 1, 2019, FEMSA Comercio – Proximity Division closed the acquisition of a 50% interest of Raízen Conveniências. The consideration amounted to R$ 357 million paid in cash and R$367 through notes payable, and such amounts include FEMSA Comercio’s prorrata portion of the investment requirements for the initial period of operations of the joint venture. Raízen is a company formed in 2010 from Cosan and Royal Dutch Shell in Brazil. The Joint Venture between FEMSA Comercio – Proximity Division and Raízen is limited to the convenience and proximity store business and excludes any other Raízen operations. |
Summarized Financial Information in Respect of Associate Accounted for Under Equity Method | Summarized financial information in respect of the associate Heineken Group accounted for under the equity method is set out below. December 31, 2019 December 31, 2018 Amounts in millions Peso Euro Peso Euro Total current assets Ps. 177,829 €. 8,419 Ps. 205,662 €. 9,125 Total non-current 804,443 38,085 744,350 33,026 Total current liabilities 259,952 12,307 235,052 10,429 Total non-current 356,671 16,886 360,928 16,014 Total equity 365,648 17,311 354,032 15,708 Equity attributable to equity holders (1) 341,062 16,147 327,369 14,525 Total revenue and other income Ps. 511,125 €. 24,064 Ps. 517,528 €. 22,564 Total cost and expenses 433,959 20,431 445,945 19,443 Net income Ps. 50,424 €. 2,374 Ps. 48,280 €. 2,105 Net income attributable to equity holders 46,006 2,166 43,877 1,913 Other comprehensive income 3,951 186 (1,170 ) (51 ) Total comprehensive income Ps. 54,375 €. 2,560 Ps. 47,111 €. 2,054 Total comprehensive income attributable to equity holders 49,447 2,328 42,615 1,858 (1) Following the IFRS Interpretations Committee agenda decision in January 2019 regarding tax deposits (relating to taxes other than income tax), Heineken Group changed its accounting policy with regards to payments relating to contingent liabilities. This change in accounting policy has been recognised retrospectively in Heineken Financial Statements and increased equity as at 1 January 2018 by €.157 million. The impact on 2018 profit amounts to an increase of €.10 million. For further information please refer to Heineken’s Annual Report. |
Reconciliation from Equity of Associate to Investment of Company | Reconciliation from the equity of the associate Heineken Group to the investment of the Company. December 31, 2019 December 31, 2018 Amounts in millions Peso Euro Peso Euro Equity attributable to equity holders of Heineken (1) Ps. 341,062 €. 16,147 Ps. 323,608 €. 14,358 Economic ownership percentage 14.76 % 14.76 % 14.76 % 14.76 % Investment in Heineken investment exclusive of goodwill and other adjustments Ps. 50,341 €. 2,383 Ps. 47,765 €. 2,119 Effects of fair value determined by purchase price allocation 14,839 703 15,846 703 Goodwill 18,609 881 19,850 881 Heineken investment Ps. 83,789 €. 3,967 Ps. 83,461 €. 3,703 (1) Related to the change in Heineken’s accounting policy mentioned in the table above, the Company recognized the accumulated effects as of January 1, 2019. |
Schedule of Company's Share of Other Comprehensive Income from Equity Investees, Net of Taxes | For the year ended December 31, 2019, 2018 and 2017, the Company’s share of other comprehensive income from equity investees, net of taxes are as follows: 2019 2018 2017 Items that may be reclassified to consolidated net income: Valuation of the effective portion of derivative financial instruments Ps. — Ps. (355 ) Ps. 252 Exchange differences on translating foreign operations 1,058 (5 ) (2,265 ) Total Ps. 1,058 Ps. (360 ) Ps. (2,013 ) Items that may not be reclassified to consolidated net income in subsequent periods: Remeasurements of the net defined benefit liability Ps. (389 ) Ps. 597 Ps. 69 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Property, Plant and Equipment, Net | Cost Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Cost as of January 1, 2017 Ps. 9,182 Ps. 24,541 Ps. 70,367 Ps. 16,978 Ps. 15,943 Ps. 6,978 Ps. 17,368 Ps. 2,086 Ps. 163,443 Additions 465 1,474 6,150 389 3,201 8,878 57 224 20,838 Additions from business acquisitions 5,115 1,634 5,988 482 3,324 821 145 — 17,509 Transfer of completed projects in progress 6 676 3,073 1,967 558 (8,572 ) 2,295 (3 ) — Transfer (to)/from assets classified as held for sale — — (42 ) — — — — (58 ) (100 ) Disposals (144 ) (588 ) (3,147 ) (800 ) (193 ) — (352 ) (12 ) (5,236 ) Effects of changes in foreign exchange rates (1,018 ) (1,964 ) (2,817 ) (1,523 ) (1,216 ) (720 ) 153 (1,201 ) (10,306 ) Changes in value on the recognition of inflation effects 527 1,016 2,030 689 (2 ) 226 — 638 5,124 Venezuela deconsolidation effect (see Note 3.3) (544 ) (817 ) (1,300 ) (717 ) (83 ) (221 ) — (646 ) (4,328 ) Cost as of December 31, 2017 Ps. 13,589 Ps. 25,972 Ps. 80,302 Ps. 17,465 Ps. 21,532 Ps. 7,390 Ps. 19,666 Ps. 1,028 Ps. 186,944 Cost Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Cost as of January 1, 2018 Ps. 13,589 Ps. 25,972 Ps. 80,302 Ps. 17,465 Ps. 21,532 Ps. 7,390 Ps. 19,666 Ps. 1,028 Ps. 186,944 Additions 334 877 6,926 644 2,888 6,482 3,322 111 21,584 Additions from business acquisitions 25 451 4,128 537 393 290 2 41 5,867 Transfer of completed projects in progress 526 567 2,193 1,711 3 (4,927 ) (93 ) 20 — Transfer (to)/from assets classified as held for sale — — (127 ) — — — — — (127 ) Disposals (93 ) (152 ) (4,623 ) (614 ) (312 ) (633 ) (748 ) (21 ) (7,196 ) Philippines disposal (4,654 ) (2,371 ) (11,621 ) (2,415 ) (10,116 ) (489 ) (236 ) — (31,902 ) Effects of changes in foreign exchange rates (401 ) (1,079 ) (3,526 ) (759 ) (251 ) (330 ) (354 ) (293 ) (6,993 ) Effects on the recognition of inflation effects 242 816 2,552 465 612 66 – 9 4,762 Cost as of December 31, 2018 Ps. 9,568 Ps. 25,081 Ps. 76,204 Ps. 17,034 Ps. 14,749 Ps. 7,849 Ps. 21,559 Ps. 895 Ps. 172,939 Cost Land Buildings Machinery Refrigeration Returnable Investments Leasehold Improvements Other Total Cost as of January 1, 2019 Ps. 9,568 Ps. 25,081 Ps. 76,204 Ps. 17,034 Ps. 14,749 Ps. 7,849 Ps. 21,559 Ps. 895 Ps. 172,939 Additions 309 1,134 6,826 636 2,581 8,421 2,907 112 22,926 Additions from business acquisitions 146 806 686 — — — 466 — 2,104 Changes in the fair value of past acquisitions 142 227 50 (13 ) — — 7 (8 ) 405 Transfer of completed projects in progress (253 ) 581 3,694 1,396 359 (6,284 ) 496 11 — Transfer (to)/from assets classified as held for sale — — (410 ) — — — — (49 ) (459 ) Disposals (15 ) (254 ) (3,195 ) (1,032 ) (1,056 ) (33 ) (170 ) (38 ) (5,793 ) Effects of changes in foreign exchange rates (329 ) (1,147 ) (2,463 ) (961 ) (833 ) (370 ) 26 (130 ) (6,207 ) Effects on the recognition of inflation effects 114 366 1,254 241 352 18 — — 2,345 Cost as of December 31, 2019 Ps. 9,682 Ps. 26,794 Ps. 82,646 Ps. 17,301 Ps. 16,152 Ps. 9,601 Ps. 25,291 Ps. 793 Ps. 188,260 Accumulated Depreciation Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Accumulated Depreciation as of January 1, 2017 Ps. — Ps. (5,553 ) Ps. (30,263 ) Ps. (8,723 ) Ps. (10,266 ) Ps. — Ps. (5,556 ) Ps. (859 ) Ps. (61,220 ) Depreciation for the year — (887 ) (6,928 ) (2,186 ) (3,365 ) — (1,562 ) (685 ) (15,613 ) Transfer to/(from) assets classified as held for sale — 44 7 – — — — — 51 Disposals — 40 3,125 683 103 — 300 5 4,256 Effects of changes in foreign exchange rates — 518 437 1,157 93 — (138 ) 940 3,007 Venezuela deconsolidation effect — 481 1,186 626 56 — — 335 2,684 Venezuela impairment — (257 ) (841 ) — — — — — (1,098 ) Changes in value on the recognition of inflation effects — (437 ) (1,031 ) (553 ) (44 ) — — (234 ) (2,299 ) Accumulated Depreciation as of December 31, 2017 Ps. — Ps. (6,051 ) Ps. (34,308 ) Ps. (8,996 ) Ps. (13,423 ) Ps. — Ps. (6,956 ) Ps. (498 ) Ps. (70,232 ) Accumulated Depreciation Land Buildings Machinery Refrigeration Returnable Investments Leasehold Other Total Accumulated Depreciation as of January 1, 2018 Ps. — Ps. (6,051 ) Ps. (34,308 ) Ps. (8,996 ) Ps. (13,423 ) Ps. — Ps. (6,956 ) Ps. (498 ) Ps. (70,232 ) Depreciation for the year — (786 ) (7,437 ) (1,752 ) (2,827 ) — (1,763 ) (133 ) (14,698 ) Transfer to/(from) assets classified as held for sale — — 78 — — — — — 78 Disposals — 69 4,970 579 204 — 571 — 6,393 Philippines disposal — 700 6,125 2,083 7,225 — 77 — 16,210 Effects of changes in foreign exchange rates — 112 404 250 631 — 141 143 1,681 Changes in value on the recognition of inflation effects — (223 ) (2,692 ) (338 ) (516 ) — — — (3,769 ) Accumulated Depreciation as of December 31, 2018 Ps. — Ps. (6,179 ) Ps. (32,860 ) Ps. (8,174 ) Ps. (8,706 ) Ps. — Ps. (7,930 ) Ps. (488 ) Ps. (64,337 ) Accumulated Depreciation Land Buildings Machinery Refrigeration Returnable Investments Leasehold Improvements Other Total Accumulated Depreciation as of January 1, 2019 Ps. — Ps. (6,179 ) Ps. (32,860 ) Ps. (8,174 ) Ps. (8,706 ) Ps. — Ps. (7,930 ) Ps. (488 ) Ps. (64,337 ) Depreciation for the year — (937 ) (7,862 ) (1,862 ) (2,734 ) — (1,985 ) (88 ) (15,468 ) Transfer to/(from) assets classified as held for sale — — 262 — — — — — 262 Disposals — 46 1,967 966 1,079 — 115 31 4,204 Effects of changes in foreign exchange rates — 264 1,249 583 572 — 64 63 2,795 Changes in value on the recognition of inflation effects — (92 ) (629 ) (164 ) (302 ) — (2 ) (14 ) (1,203 ) Accumulated Depreciation as of December 31, 2019 Ps. — Ps. (6,898 ) Ps. (37,873 ) Ps. (8,651 ) Ps. (10,091 ) Ps. — Ps. (9,738 ) Ps. (496 ) Ps. (73,747 ) |
Summary of Interest Expense, Interest Income and Net Foreign Exchange Losses and Gains | Carrying Amount Land Buildings Machinery Refrigeration Returnable Investments Leasehold Improvements Other Total As of December 31, 2017 Ps. 13,589 Ps. 19,921 Ps. 45,994 Ps. 8,469 Ps. 8,109 Ps. 7,390 Ps. 12,710 Ps. 530 Ps. 116,712 As of December 31, 2018 Ps. 9,568 Ps. 18,902 Ps. 43,344 Ps. 8,860 Ps. 6,043 Ps. 7,849 Ps. 13,629 Ps. 407 Ps. 108,602 As of December 31, 2019 Ps. 9,682 Ps. 19,896 Ps. 44,773 Ps. 8,650 Ps. 6,061 Ps. 9,601 Ps. 15,553 Ps. 297 Ps. 114,513 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of right-of-use assets | As of December 31, 2019, consolidated right-of-use Land and Other (1) Total Cost as of January 1, 2019 Ps. 49,112 1,108 50,220 Additions 7,406 96 7,502 Additions from business combinations 2,187 — 2,187 Disposals (827 ) (5 ) (832 ) Remeasurements 2,299 (9 ) 2,290 Depreciation (7,492 ) (401 ) (7,893 ) Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies (759 ) (31 ) (790 ) Right-of-use Ps. 51,926 758 52,684 (1) Other assets mailny include transportation equipment and servers. |
Schedule of lease liabilities | As of December 31, 2019, the lease liabilites are integrated as follows: December 31, 2019 Maturity analysis - contractual undiscounted cash flows Less than one year Ps. 10,655 One to five years 40,262 Five to ten years 24,053 More than ten years 11,884 Total undiscounted lease liabilities at December 31 86,854 Lease liabilities included in the statement of financial position at December 31 54,679 Current 7,387 Non-Current Ps. 47,292 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Reconciliation of Changes in Intangible Assets and Goodwill | Rights to Goodwill Trademark Other Indefinite Total Technology Systems in Alcohol Other Total Total Cost as of January 1, 2017 Ps. 85,338 Ps. 51,857 Ps. 6,225 Ps. 2,151 Ps. 145,571 Ps. 6,124 Ps. 798 Ps. 1,416 Ps. 2,338 Ps. 10,676 Ps. 156,247 Additions 1,288 — — 6 1,294 464 920 221 445 2,050 3,344 Acquisitions from business combinations (see Note 4) 4,144 140 5 — 4,289 6 — — 80 86 4,375 Changes in fair value of past acquisitions 5,167 (7,022 ) 836 9 (1,010 ) (188 ) — — 892 704 (306 ) Transfer of completed development systems — — — — — 412 (412 ) — — — — Disposals — — — — — 110 — — — 110 110 Effect of movements in exchange rates (2,563 ) (1,526 ) 119 91 (3,879 ) 175 (15 ) — 52 212 (3,667 ) Changes in value on the recognition of inflation effects (727 ) — — — (727 ) — — — 175 175 (552 ) Venezuela deconsolidation effect (745 ) — — — (745 ) — — — (139 ) (139 ) (884 ) Cost as of December 31, 2017 Ps. 91,902 Ps. 43,449 Ps. 7,185 Ps. 2,257 Ps. 144,793 Ps. 7,103 Ps. 1,291 Ps. 1,637 Ps. 3,843 Ps. 13,874 Ps. 158,667 Rights to Goodwill Trademark Other Indefinite Total Technology Systems in Alcohol Other Total Total Cost as of January 1, 2018 Ps. 91,902 Ps. 43,449 Ps. 7,185 Ps. 2,257 Ps. 144,793 Ps. 7,103 Ps. 1,291 Ps. 1,637 Ps. 3,843 Ps. 13,874 Ps. 158,667 Additions — 75 — 71 146 1,051 371 131 94 1,647 1,793 Acquisitions from business combinations (see Note 4) 4,602 842 170 — 5,614 35 57 — 291 383 5,997 Changes in fair value of past acquisitions — 272 — — 272 — — — — — 272 Internal development — — — — — — — — 41 41 41 Transfer of completed development systems — — — — — 904 (904 ) — — — — Disposals — — — (2 ) (2 ) (43 ) — — (146 ) (189 ) (191 ) Philippines disposal (3,882 ) — — — (3,882 ) — — — (596 ) (596 ) (4,478 ) Effect of movements in exchange rates (5,005 ) (4,108 ) (656 ) (349 ) (10,118 ) (343 ) (38 ) — (311 ) (692 ) (10,810 ) Changes in value on the recognition of inflation effects — — — — — — — — 57 57 57 Cost as of December 31, 2018 Ps. 87,617 Ps. 40,530 Ps. 6,699 Ps. 1,977 Ps. 136,823 Ps. 8,707 Ps. 777 Ps. 1,768 Ps. 3,273 Ps. 14,525 Ps. 151,348 Rights to Goodwill Trademark Other Indefinite Total Technology Systems in Development Alcohol Other Total Total Cost as of January 1, 2019 Ps. 87,617 40,530 Ps. 6,699 Ps. 1,977 Ps. 136,823 Ps. 8,707 Ps. 777 Ps. 1,768 Ps. 3,273 Ps. 14,525 Ps. 151,348 Additions — — — 164 164 824 334 191 685 2,034 2,198 Acquisitions from business combinations (see Note 4) — 6,542 469 — 7,011 759 — — 12 771 7,782 Changes in the fair value of past acquisitions (2,887 ) 2,903 — 153 169 (6 ) — — (185 ) (191 ) (22 ) Transfer of completed development systems — — — — — 412 (413 ) — 1 — — Disposals — — (48 ) — (48 ) (580 ) — (130 ) — (710 ) (758 ) Effect of movements in exchange rates (3,475 ) (2,069 ) (520 ) (134 ) (6,198 ) (553 ) (23 ) — (337 ) (913 ) (7,111 ) Changes in value on the recognition of inflation effects — — — — — — — — (6 ) (6 ) (6 ) Cost as of December 31, 2019 Ps. 81,255 Ps. 47,906 Ps. 6,600 Ps. 2,160 Ps. 137,921 Ps. 9,563 Ps. 675 Ps. 1,829 Ps. 3,443 Ps. 15,510 Ps. 153,431 Amortization and Impairment Losses Rights to Goodwill Trademark Other Total Technology Systems in Alcohol Other Total Total Amortization as of January 1, 2017 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (1,937 ) Ps. — Ps. (376 ) Ps. (666 ) Ps. (2,979 ) Ps. (2,979 ) Amortization expense — — — — — (961 ) — (81 ) (217 ) (1,259 ) (1,259 ) Impairment losses — — — — — (110 ) — — — (110 ) (110 ) Venezuela deconsolidation effect — — — — — — — — (120 ) (120 ) (120 ) Effect of movements in exchange rates — — — — — (254 ) — — 148 (106 ) (106 ) Amortization as of December 31, 2017 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (3,262 ) Ps. — Ps. (457 ) Ps. (855 ) Ps. (4,574 ) Ps. (4,574 ) Amortization as of January 1, 2018 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (3,262 ) Ps. — Ps. (457 ) Ps. (855 ) Ps. (4,574 ) Ps. (4,574 ) Amortization expense — — — — — (1,453 ) — (87 ) (373 ) (1,913 ) (1,913 ) Disposals — — — — — 93 — — 98 191 191 Philippines disposal — — — — — — — — 375 375 375 Effect of movements in exchange rates — — — — — 236 — — (1 ) 235 235 Changes in value on the recognition of inflation effects — — — — — (51 ) — — (1 ) (52 ) (52 ) Amortization as of December 31, 2018 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (4,437 ) Ps. — Ps. (544 ) Ps. (757 ) Ps. (5,738 ) Ps. (5,738 ) Amortization as of January 1, 2019 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. (4,437 ) Ps. — Ps. (544 ) Ps. (757 ) Ps. (5,738 ) Ps. (5,738 ) Amortization expense — — — — — (1,351 ) — (123 ) (337 ) (1,811 ) (1,811 ) Disposals — — — — — 445 — 30 — 475 475 Effect of movements in exchange rates — — — — — 165 — — 68 233 233 Changes in value on the recognition of inflation effects — — — — — (29 ) — — 1 (28 ) (28 ) Amortization as of December 31, 2019 Ps. — Ps. — Ps. — Ps. — Ps. Ps. (5,207 ) Ps. — Ps. (637 ) Ps. (1,025 ) Ps. (6,869 ) Ps. (6,869 ) Carrying Amount Rights to Coca-Cola Goodwill Trademark Other Total Technology Systems in Alcohol Other Total Total As of December 31, 2017 Ps. 91,902 Ps. 43,449 Ps. 7,185 Ps. 2,257 Ps. 144,793 Ps. 3,841 Ps. 1,291 Ps. 1,180 Ps. 2,988 Ps. 9,300 Ps. 154,093 As of December 31, 2018 Ps. 87,617 Ps. 40,530 Ps. 6,699 Ps. 1,977 Ps. 136,823 Ps. 4,270 Ps. 777 Ps.1,224 Ps.2,516 Ps. 8,787 Ps. 145,610 As of December 31, 2019 Ps. 81,255 Ps. 47,906 Ps. 6,600 Ps. 2,160 Ps. 137,921 Ps. 4,356 Ps. 675 Ps.1,192 Ps.2,418 Ps. 8,641 Ps. 146,562 |
Schedule of Allocation of Amortization Expenses | For the years ended 2019, 2018 and 2017, allocation for amortization expense is as follows: 2019 2018 2017 Cost of goods sold Ps. 317 Ps. 399 Ps. 132 Administrative expenses 953 858 627 Selling expenses 542 656 500 Ps. 1,812 Ps. 1,913 Ps. 1,259 |
Summary of Average Remaining Period for Company's Intangible Assets Subject to Amortization | The average remaining period for the Company’s intangible assets that are subject to amortization is as follows: Years Technology Costs and Management Systems 3 - 10 Alcohol Licenses 12 - 15 |
Disclosure of Aggregate Carrying Amounts of Goodwill and Distribution Rights Allocated to Each CGU | The aggregate carrying amounts of goodwill and distribution rights allocated to each CGU are as follows: December 31, December 31, Mexico Ps. 56,352 Ps. 56,352 Guatemala 1,679 1,853 Nicaragua 420 460 Costa Rica 1,442 1,417 Panama 1,131 1,182 Colombia 4,367 4,600 Brazil 38,765 42,153 Argentina 306 327 Uruguay 2,626 3,003 Total Ps. 107,088 Ps. 111,347 |
Details of Key Assumptions by CGU for Impairment Test | The key assumptions by CGU for impairment test as of December 31, 2019 were as follows: CGU Pre-tax WACC Post-tax WACC Expected Annual Long-Term Inflation Expected Volume Mexico 7.3 % 5.2 % 3.5 % 0.7 % Colombia 8.9 % 6.2 % 3.1 % 4.0 % Costa Rica 13.8 % 9.7 % 2.2 % 2.1 % Guatemala 9.1 % 7.1 % 4.0 % 8.5 % Nicaragua 21.1 % 12.4 % 4.4 % 3.0 % Panamá 8.5 % 6.6 % 2.0 % 5.4 % Argentina 21.6 % 14.8 % 39.2 % 3.7 % Brazil 9.3 % 5.6 % 3.6 % 2.0 % Uruguay 9.4 % 6.8 % 7.4 % 2.0 % The key assumptions by CGU for impairment test as of December 31, 2018 were as follows: CGU Pre-tax WACC Post-tax Expected Annual Long-Term Inflation Expected Volume Mexico 7.4 % 5.3 % 4.0 % 1.4 % Colombia 7.8 % 5.2 % 3.1 % 4.0 % Costa Rica 13.9 % 9.2 % 4.0 % 1.6 % Guatemala 9.4 % 7.5 % 3.2 % 7.3 % Nicaragua 21.2 % 11.0 % 6.2 % 3.8 % Panama 9.2 % 7.0 % 2.4 % 3.0 % Argentina 19.6 % 11.3 % 21.9 % 2.7 % Brazil 10.7 % 6.6 % 3.8 % 1.7 % |
Disclosure of Detailed Information About Sensitivity to Changes in Assumptions | Change in Volume CGU Change in WACC Growth CAGR (1) Effect on Valuation Mexico +0.4 % -1.0 % Passes by 4.9x Colombia +0.3 % -1.0 % Passes by 4.7x Costa Rica +0.8 % -1.0 % Passes by 3.4x Guatemala +0.4 % -1.0 % Passes by 38.5x Nicaragua +1.4 % -1.0 % Passes by 1.1x Panamá +0.2 % -1.0 % Passes by 9.7x Argentina +1.9 % -1.0 % Passes by 13.9x Brazil +0.5 % -1.0 % Passes by 1.6x Uruguay +0.3 % -1.0 % Passes by 3x (1) Compound Annual Growth Rate (“CAGR”). |
FEMSA Comercio - Health Division [member] | |
Statement [LineItems] | |
Details of Key Assumptions by CGU for Impairment Test | The key assumptions by CGU for impairment test as of December 31, 2019 were as follows: CGU Pre-tax WACC Post-tax Expected Annual Long-Term Inflation Expected Volume South America (FEMSA Comercio – Health Division) 9.4 % 6.6 % 3.0 % 0.3 % The key assumptions by CGU for impairment test as of December 31, 2018 were as follows: CGU Pre-tax WACC Post-tax Expected Annual Long-Term Inflation Expected Volume South America (FEMSA Comercio – Health Division) 9.0 % 6.3 % 3.0 % 0.4 % |
Disclosure of Detailed Information About Sensitivity to Changes in Assumptions | Change in Sales CGU Change in WACC Growth CAGR (1) Effect on Valuation FEMSA Comercio – Health Division (South America) +0.2 % -0.5 % Passes by 1.34x (1) Compound Annual Growth Rate. |
Other Assets and Other Financ_2
Other Assets and Other Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Disclosure of Other Non-Current Assets | 14.1 Other non-current December 31, 2019 December 31, Agreement with customers Ps. 953 Ps. 897 Long term prepaid advertising expenses 341 388 Guarantee deposits (1) 2,407 2,910 Prepaid bonuses 226 248 Advances to acquire property, plant and equipment 203 233 Recoverable taxes 2,111 1,289 Indemnifiable assets from business combinations (2) 2,948 3,336 Recoverable taxes from business combinations — 395 Others 1,343 621 Ps. 10,532 Ps. 10,317 (1) As it is customary in Brazil, the Company is required to guarantee tax, legal and labor contingencies by guarantee deposits including those related to business acquisitions. See Note 26.7. (2) Corresponds to indemnifiable assets that are warranted by former Vonpar owners as per the share purchase agreement. See Note 4.1.3 |
Disclosure of Other Non-Current Financial Assets | 14.2 Other non-current December 31, December 31, Non-current Ps. 938 Ps. 724 Derivative financial instruments (see Note 21) 8,260 10,752 Investments (1) — 11,810 Others 172 101 Other investments in equity instruments (2) 13,310 — Ps. 22,680 Ps. 23,387 (1) It represents an investment in corporate debt securities with variable interest rates, measured at amortized cost. The carrying value approximates its fair value as of December 31, 2019. (2) Corresponds to the acquisition of a minority stake in Jetro Restaurant Depot as of November 8, 2019. Refer to note 3.7.3. |
Balances and Transactions wit_2
Balances and Transactions with Related Parties and Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Balances and Transactions with Related Parties and Affiliated Companies | The consolidated statements of financial positions and consolidated income statements include the following balances and transactions with related parties and affiliated companies: December 31, December 31, Balances Due from The Coca-Cola Company (see Note 7) (1) (8) Ps. 802 Ps. 1,173 Balance with BBVA, S.A. de C.V. (2) 6,798 11,509 Balance with JP Morgan Chase & Co. (2) — 27 Balance with Grupo Scotiabank Inverlat, S.A. (3) 510 503 Grupo Industrial Saltillo S.A.B. de C.V. (3) — 169 Due from Heineken Group (1) (3) (7) 2,915 2,572 Other receivables (1) (4) 390 565 Due to The Coca-Cola Company (5) (6) (8) Ps. 4,417 Ps. 3,893 Due to BBVA, S.A. de C.V. (5) 1,696 4,093 Due to Heineken Group (6) (7) 4,308 4,753 Due to Grupo Financiero Scotiabank Inverlat, S.A. (5) 104 170 Other payables (6) 2,003 1,402 (1) Presented within accounts receivable. (2) Presented within cash and cash equivalents. (3) Presented within other financial assets. (4) Presented within other current financial assets. (5) Recorded within bank loans and notes payable. (6) Recorded within accounts payable. (7) Associates. (8) Non-controlling |
Summary of Transaction with Related Parties | Balances due from related parties are considered to be recoverable. Accordingly, for the years ended December 31, 2019, 2018 and 2017, there was no expense resulting from uncollectible balances due from related parties. Transactions 2019 2018 2017 Income: Services to Heineken Group (1) Ps.3,380 Ps.3,265 Ps.3,570 Logistic services to Grupo Industrial Saltillo, S.A. de C.V. (3) — 255 457 Logistic services to Jugos del Valle (1) 553 369 587 Interest revenues from BBVA, S.A. de C.V. (3) 1,456 1,469 1,002 Interest revenues from Grupo Financiero Scotiabank Inverlat, S.A. (3) 447 — — Other revenues from related parties 404 242 243 Expenses: Purchase of concentrate from The Coca-Cola Company (2) Ps.34,063 Ps.32,379 Ps.30,758 Purchases of beer from Heineken Group (1) (6) 25,215 27,999 24,942 Purchase of coffee from Caffenio (5) — — 2,397 Purchase of baked goods and snacks from Grupo Bimbo, S.A.B. de C.V. (3) 6,194 5,763 4,802 Advertisement expense paid to The Coca-Cola Company (2) (4) 1,756 2,193 1,392 Purchase of juices from Jugos del Valle, S.A.P.I. de C.V. (1) 4,477 4,537 3,905 Purchase of sugar from Promotora Industrial Azucarera, S.A. de C.V. (1) 2,728 2,604 1,885 Interest expense and fees paid to BBVA, S.A. de C.V. (3) 144 230 53 Purchase of sugar from Beta San Miguel (3) 655 651 1,827 Purchase of sugar, cans and aluminum lids from Promotora Mexicana de Embotelladores, S.A. de C.V. (3) — 739 839 Purchase of canned products from IEQSA (1) 682 596 804 Purchases to AdeS Alimentos y Bebidas (1) 497 592 — Purchase of inventories to Leao Alimentos e Bebidas, L.T.D.A. (1) 1,867 2,654 4,010 Advertising paid to Grupo Televisa, S.A.B. (3) 115 113 107 Insurance premiums for policies with Grupo Nacional Provincial, S.A.B. (3) — 12 32 Donations to Fundación FEMSA, A.C. (3) 195 232 23 Donations to Difusión y Fomento Cultural, A.C. (3) 61 63 44 Donations to ITESM (3) 215 192 108 Other expenses with related parties 319 423 742 (1) Associates. (2) Non-controlling (3) Members of the board of directors in FEMSA participate in board of directors of this entity. (4) Net of the contributions from The Coca-Cola Company of Ps. 2,274, Ps. 3,542 and Ps. 3,436, for the years ended in 2019, 2018 and 2017, respectively. (5) On May 22, 2018 the Company completed the acquisition of an additional 10% of non-controlling (6) Favorable resolution of Arbitration in Brazil on October 31, 2019, the arbitration tribunal in charge of the arbitration proceeding between Coca-Cola FEMSA and Cervejarias Kaiser Brasil, S.A., a subsidiary of Heineken, N.V. (“Kaiser”), issued an award confirming that the distribution agreement pursuant to which Coca-Cola FEMSA distribute Kaiser’s portfolio in the country, including Heineken beer, shall continue in full force and effect until and including March 19, 2022. |
Commitments with Related Parties | Commitments with related parties Related Party Commitment Conditions Heineken Group Supply Supply of all beer products in Mexico’s OXXO stores. The contract may be renewed for five years or additional periods. At the end of the contract OXXO will not hold exclusive contract with another supplier of beer for the next 3 years. Commitment term, Jan 1 st |
Schedule of Key Management Remuneration | The aggregate compensation paid to executive officers and senior management of the Company were as follows: 2019 2018 2017 Short-term employee benefits paid Ps. 2,163 Ps. 1,885 Ps. 1,699 Postemployment benefits 48 37 48 Termination benefits 411 88 74 Share based payments 610 401 351 |
Balances and Transactions in _2
Balances and Transactions in Foreign Currencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Assets, Liabilities and Transactions in Foreign Currencies | As of December 31, 2019 and for each of the three years ended on December 31, 2019, 2018 and 2017, respectively; the assets, liabilities and transactions denominated in foreign currencies, expressed in Mexican pesos (contractual amounts) are as follows: Assets Liabilities Balances Short-Term Long-Term Short-Term Long-Term As of December 31, 2019 U.S. dollars Ps. 58,151 Ps. 452 Ps. 5,597 Ps. 57,075 Euros 877 — 363 21,122 Other currencies 620 1,593 58 1 Total Ps. 59,648 Ps. 2,045 Ps. 6,018 Ps. 78,198 As of December 31, 2018 U.S. dollars Ps. 69,281 Ps. 12,026 Ps. 4,625 Ps. 63,112 Euros 749 — 417 22,538 Other currencies 46 1,605 24 1 Total Ps. 70,076 Ps. 13,631 Ps. 5,066 Ps. 85,651 Transactions Revenues Other Purchases Interest Consulting Asset Other For the year ended December 31, 2019 U.S. dollars Ps. 5,487 Ps. 5,612 Ps. 17,941 Ps. 2,183 Ps. 718 Ps. 3,388 Ps. 4,348 Euros — — 538 397 33 5 2 Other currencies 1 982 — — 2 — 132 Total Ps. 5,488 Ps. 6,594 Ps. 18,479 Ps. 2,580 Ps. 753 Ps. 3,393 Ps. 4,482 For the year ended December 31, 2018 U.S. dollars Ps. 7,228 Ps. 130 Ps. 21,460 Ps. 2,309 Ps. 752 Ps. 2,166 Ps. 2,676 Euros — — 63 434 20 — 1 Other currencies — 9 — — 2 — — Total Ps. 7,228 Ps. 139 Ps. 21,523 Ps. 2,743 Ps. 774 Ps. 2,166 Ps. 2,677 For the year ended December 31, 2017 U.S. dollars Ps. 1,909 Ps. 1,677 Ps. 16,320 Ps. 2,534 Ps. 267 Ps. 272 Ps. 4,052 Euros — 2 87 452 23 4 20 Other currencies — — — — 12 — — Total Ps. 1,909 Ps. 1,679 Ps. 16,407 Ps. 2,986 Ps. 302 Ps. 276 Ps. 4,072 |
Summary of Exchange Rates | Mexican peso exchange rates effective at the dates of the consolidated statements of financial position and at the issuance date of the Company’s consolidated financial statements were as follows: December 31, April 24 2019 2018 2020 U.S. dollar 18.8452 19.6829 24.5 883 Euro 21. 1 22.5383 26. 5 50 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Actuarial Assumptions | Actuarial calculations for pension and retirement plans, seniority premiums and post-retirement medical benefits, as well as the associated cost for the period, were determined using the following long-term assumptions for Mexico: Mexico December 31, December 31, December 31, Financial: Discount rate used to calculate the defined benefit obligation 7.50 % 9.40 % 7.60 % Salary increase 4.50 % 4.60 % 4.50 % Future pension increases 3.50 % 3.60 % 3.50 % Healthcare cost increase rate 5.10 % 5.10 % 5.10 % Biometric: Mortality (1) EMSSA 2009 EMSSA 2009 EMSSA 2009 Disability (2) IMSS-97 IMSS-97 IMSS-97 Normal retirement age 60 years 60 years 60 years Employee turnover table (3) BMAR 2007 BMAR 2007 BMAR 2007 Measurement date December: (1) EMSSA. Mexican Experience of social security. (2) IMSS. Mexican Experience of Instituto Mexicano del Seguro Social. (3) BMAR. Actuary experience. |
Summary of Defined Benefit Plan Expected Future Benefit Payments | Based on these assumptions, the amounts of benefits expected to be paid out in the following years are as follows: Pension and Seniority Post-Retirement Total 2020 Ps. 767 Ps. 129 Ps. 20 Ps. 916 2021 332 111 21 464 2022 340 107 22 469 2023 414 106 22 542 2024 405 107 23 535 2025 to 2029 3,192 594 124 3,910 |
Summary of Balances of the Liabilities for Employee Benefits | December 31, 2019 December 31, Pension and Retirement Plans: Defined benefit obligation Ps. 7,193 Ps. 6,189 Pension plan funds at fair value (2,678 ) (2,501 ) Net defined benefit liability Ps. 4,515 Ps. 3,688 Seniority Premiums: Defined benefit obligation Ps. 1,237 Ps. 772 Seniority premium plan funds at fair value (127 ) (111 ) Net defined benefit liability Ps. 1,110 Ps. 661 Postretirement Medical Services: Defined benefit obligation Ps. 797 Ps. 418 Medical services funds at fair value (75 ) (68 ) Net defined benefit liability Ps. 722 Ps. 350 Total Employee Benefits Ps. 6,347 Ps. 4,699 |
Summary of Trust Assets | Trust assets consist of fixed and variable return financial instruments recorded at fair value (Level 1), which are invested as follows: December 31, December 31, Fixed return: Traded securities 9 % 19 % Bank instruments 23 % 6 % Federal government instruments of the respective countries 33 % 60 % Variable return: Publicly traded shares 35 % 15 % 100 % 100 % |
Summary of Amounts and Types of Securities in Related Parties Included in Portfolio Fund | In Mexico, the amounts and types of securities of the Company in related parties included in portfolio fund are as follows: December 31, December 31, Debt: El Puerto de Liverpool, S.A.B. de C.V. Ps. 30 Ps. 30 Grupo Industrial Bimbo, S.A.B. de C. V. 31 27 BBVA Bancomer, S.A de C.V. 20 19 Grupo Financiero Banorte, S.A.B. de C.V. 8 8 Grupo Financiero Scotiabank Inverlat, S.A. de C.V. 10 — Grupo Televisa, S.A.B. de C.V. — 45 Gentera, S.A.B. de C.V. — 4 Equity: CEMEX, S.A.B. de C.V. 12 3 Alfa, S.A.B. de C.V. 6 — El Puerto de Liverpool, S.A.B. de C.V. 2 3 Others 3 — Grupo Televisa, S.A.B. de C.V. — 1 Grupo Aeroportuario del Suereste, S.A.B. de C.V. — 2 |
Summary of Amount Recognized in Consolidated Income Statements and Consolidated Statements of Comprehensive Income | Income Statement AOCI (1) December 31, 2019 Current Past Service Gain or Net Interest on Remeasurements Pension and retirement plans Ps. 279 Ps. (45 ) Ps. 2 Ps. 290 Ps. 1,608 Seniority premiums 139 161 — 57 162 Postretirement medical services 15 — — 32 396 Total Ps. 433 Ps. 116 Ps. 2 Ps. 379 Ps. 2,166 December 31, 2018 Pension and retirement plans Ps. 318 Ps. — Ps. (5 ) Ps. 304 Ps. 668 Seniority premiums 125 — (8 ) 49 (63 ) Postretirement medical services 25 — (1 ) 34 41 Total Ps. 468 Ps. — Ps. (14 ) Ps. 387 Ps. 646 December 31, 2017 Current Past Service Gain or Net Interest on Remeasurements Pension and retirement plans Ps. 244 Ps. 10 Ps. (2 ) Ps. 248 Ps. 1,061 Seniority premiums 106 — (1 ) 41 46 Postretirement medical services 24 — — 30 184 Total Ps. 374 Ps. 10 Ps. (3 ) Ps. 319 Ps. 1,291 (1) Amounts accumulated in other comprehensive income as of the end of the period. |
Summary of Remeasurements of Net Defined Benefit Liability Recognized in Accumulated Other Comprehensive Income | Remeasurements of the net defined benefit liability recognized in accumulated other comprehensive income are as follows: December 31, 2019 December 31, December 31, Amount accumulated in other comprehensive income as of the beginning of the period, net of tax Ps. 475 Ps. 892 Ps. 966 Actuarial (gains) arising from exchange rates (30 ) (21 ) (2 ) Remeasurements during the year, net of tax 100 221 295 Actuarial losses and (gains) arising from changes in financial assumptions 1,071 (617 ) (367 ) Effect on settlement 8 — — Amount accumulated in other comprehensive income as of the end of the period, net of tax Ps. 1,624 Ps. 475 Ps. 892 |
Summary of Changes in the Balance of the Defined Benefit Obligation for Post-employment | December 31, December 31, December 31, Pension and Retirement Plans: Initial balance Ps. 6,189 Ps. 7,370 Ps. 5,702 Current service cost 279 318 341 Past service (credit) cost (45 ) — 10 Interest expense 530 484 491 Settlement / Curtailment 2 (5 ) (2 ) Remeasurements of the net defined benefit obligation 859 (740 ) 263 Foreign exchange loss (gain) (69 ) (86 ) (79 ) Benefits paid (582 ) (450 ) (550 ) (Derecognition) acquisitions 30 (702 ) 1,194 Ending balance Ps. 7,193 Ps. 6,189 Ps. 7,370 Seniority Premiums: Initial balance Ps. 772 Ps. 783 Ps. 663 Current service cost 139 125 106 Past service cost 161 — — Interest expense 68 57 49 Settlement — (8 ) (1 ) Remeasurements of the net defined benefit obligation 230 (115 ) 28 Benefits paid (133 ) (77 ) (68 ) Acquisitions — 7 6 Ending balance Ps. 1,237 Ps. 772 Ps. 783 Postretirement Medical Services: Initial balance Ps. 418 Ps. 524 Ps. 460 Current service cost 15 25 24 Interest expense 38 39 34 Curtailment / Settlement — (1 ) — Remeasurements of the net defined benefit obligation 356 (143 ) 32 Benefits paid (30 ) (26 ) (26 ) Ending balance Ps. 797 Ps. 418 Ps. 524 |
Summary of Changes in the Balance of Plan Assets | December 31, December 31, December 31, Total Plan Assets: Initial balance Ps. 2,680 Ps. 3,304 Ps. 2,378 Actual return on trust assets 174 47 213 Foreign exchange loss (gain) 2 (1 ) 86 Life annuities 24 35 65 Benefits paid — (1 ) (136 ) (Derecognition) acquisitions — (704 ) 698 Ending balance Ps. 2,880 Ps. 2,680 Ps. 3,304 |
Summary of Amount of Defined Benefit Plan Expense and OCI Impact in Absolute Terms of Variation on Net Defined Benefit Liability | The following table presents the amount of defined benefit plan expense and OCI impact in absolute terms of a variation of 1% in the assumptions on the net defined benefit liability associated with the Company’s defined benefit plans. The sensitivity of this 1% on the significant actuarial assumptions is based on a projected long-term discount rates for Mexico and a yield curve projection of long-term Mexican government bonds—CETES: +1%: Income Statement OCI (1) Discount rate used to calculate the defined benefit obligation Current Gain or Loss Effect of Net Remeasurements Pension and retirement plans Ps. 180 Ps. 1 Ps. 237 Ps. 1,379 Seniority premiums 283 — 52 147 Postretirement medical services 6 — 29 335 Total Ps. 469 Ps. 1 Ps. 318 Ps. 1,861 Expected salary increase Pension and retirement plans Ps. 205 Ps. 2 Ps. 329 Ps. 1,493 Seniority premiums 320 — 62 178 Total Ps. 525 Ps. 2 Ps. 391 Ps. 1,671 Assumed rate of increase in healthcare costs Postretirement medical services Ps. 8 Ps. — Ps. 40 Ps. 431 +1%: Discount rate used to calculate the defined benefit obligation Current Gain or Loss Effect of Net Remeasurements Pension and retirement plans Ps. 199 Ps. 2 Ps. 356 Ps. 1,528 Seniority premiums 317 — 63 1 Postretirement medical services 8 — 41 429 Total Ps. 524 Ps. 2 Ps. 460 Ps. 1,958 Expected salary increase Pension and retirement plans Ps. 178 Ps. 1 Ps. 267 Ps. 1,408 Seniority premiums 281 — 53 147 Total Ps. 459 Ps. 1 Ps. 320 Ps. 1,555 Assumed rate of increase in healthcare costs Postretirement medical services Ps. 6 Ps. — Ps. 30 Ps. 333 (1) Amounts accumulated in other comprehensive income as of the end of the period. |
Summary of Employee Benefit Expenses Recognized in Consolidated Income Statements | For the years ended December 31, 2019, 2018 and 2017, employee benefits expenses recognized in the consolidated income statements as cost of goods sold, administrative and selling expenses are as follows: 2019 2018 2017 Wages and salaries Ps. 64,776 Ps. 58,745 Ps. 51,874 Social security costs 11,494 10,486 9,800 Employee profit sharing 1,205 1,294 1,209 Post-employment benefits 795 842 700 Share-based payments 200 405 351 Termination benefits 169 132 159 Ps. 78,639 Ps. 71,904 Ps. 64,093 |
Bonus Programs (Tables)
Bonus Programs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Number of Shares Held by the Trust | As of December 31, 2019 and 2018, the number of shares held by the trust associated with the Company’s share-based payment plans are as follows: Number of Shares FEMSA UBD KOF UBL 2019 2018 2019 2018 Beginning balance 2,278,460 2,945,209 697,226 935,899 Shares acquired by the administrative trust to employees 1,441,838 913,846 456,077 262,909 Shares released from administrative trust to employees upon vesting (1,470,633 ) (1,580,595 ) (400,456 ) (501,582 ) Ending balance 2,249,665 2,278,460 752,847 697,226 |
Bank Loans and Notes Payable (T
Bank Loans and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Detailed Information About Borrowings | At December 31, (1) (in millions 2020 2021 2022 2023 2024 2025 Carrying Fair Carrying (1) Short-term debt: Fixed rate debt: Colombian pesos Bank loans Ps. 769 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 769 Ps. 769 Ps. — Interest rate 5.1 % — — — — — 5.1 % — — Argentine pesos Bank loans 126 — — — — — 126 126 157 Interest rate 63.5 % — — — — — 63.5 % — 36.8 % Chilean pesos Bank loans 977 — — — — — 977 977 594 Interest rate 2.6 % — — — — — 2.6 % — 3.2 % U.S. dollars Bank loans 1,038 — — — — — 1,038 1,038 — Interest rate 2.6 % — — — — — 2.6 % — — Capital leases — — — — — — — — 10 Interest rate — — — — — — — — 3.3 % Uruguayan pesos Bank loans 63 — — — — — 63 63 771 Interest rate 11.6 % — — — — — 11.6 % — 10 % Variable rate debt: Mexican pesos x Bank loans 100 — — — — — 100 100 450 Interest rate 7.9 % — — — — — 7.9 % — 9.2 % Colombian pesos Bank loans 431 — — — — — 431 431 454 Interest rate 4.7 % — — — — — 4.7 % — 5.6 % Argentine pesos Bank loans 32 — — — — — 32 32 — Interest rate 54.3 % — — — — — 54.3 % — — Brazilian reals Bank loans 399 — — — — — 399 399 — Interest rate 9.4 % — — — — — 9.4 % — — Total short-term debt Ps. 3,935 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 3,935 Ps. 3,935 Ps. 2,436 (in millions 2020 2021 2022 2023 2024 2025 Carrying Fair Carrying (1) Long-term debt: Fixed rate debt: Euro Senior unsecured notes Ps. — Ps. — Ps. — Ps. 21,046 Ps. — Ps. — Ps. 21,046 Ps. 22,181 Ps. 22,439 Interest rate — — — 1.7 % — — 1.7 % — 1.7 % U.S. dollars Yankee bond 9,421 — — 16,840 — 11,314 37,575 41,231 39,204 Interest rate 4.6 % — — 3.9 % — 5.3 % 4.5 % — 4.5 % U.S. dollars Promissory Note — — — — — — — — 4,652 Interest rate (1) — — — — — — — — 0.4 % Bank of NY — — — 5,593 — — 5,593 5,715 5,849 Interest rate (1) — — — 2.9 % — — 2.9 % — 2.9 % Bank of NY — — — — — 12,943 12,943 14,611 13,504 Interest rate (1) — — — — — 4.4 % 4.4 % — 4.4 % Bank loans 439 437 437 436 436 — 2,185 2,185 — Interest rate 3.6 % 3.6 % 3.6 % 3.6 % 3.6 % — 3.6 % — — Mexican pesos Domestic senior notes — 2,499 — 7,496 — 8,489 18,484 18,066 18,481 Interest rate — 8.3 % — 5.5 % — 7.9 % 6.9 % — 6.9 % Bank loans 49 31 20 12 3 — 115 116 77 Interest rate 8.2 % 9.3 % 11.0 % 11.0 % 11.0 % — 9.3 % — 6.4 % Brazilian reais Bank loans 118 197 61 35 23 — 434 434 545 Interest rate 5.9 % 8.8 % 6.1 % 6.4 % 6.6 % — 7.3 % — 6.0 % Chilean pesos Capital leases 26 14 — — — — 40 39 — Interest rate 3.5 % 3.2 % — — — — 3.4 % — — Uruguayan pesos Bank loans 477 788 — — — — 1,265 1,265 573 Interest rate 10.2 % 9.9 % — — — — 5.8 % — 10.2 % Subtotal Ps. 10,530 Ps. 3,966 Ps. 518 Ps. 51,458 Ps. 462 Ps. 32,746 Ps. 99,680 Ps. 105,842 Ps. 105,405 (1) All interest rates shown in this table are weighted average contractual annual rates. (in millions 2020 2021 2022 2023 2024 2025 Carrying Fair Carrying (1) Variable rate debt: U.S. dollars Bank loans Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 4,025 Interest rate (1) — — — — — — — — 3.3 % Mexican pesos Domestic senior notes — — 1,459 — — — 1,459 1,385 1,497 Interest rate (1) — — 8.0 % — — — 8.0 % — 8.6 % Bank Loans 263 119 81 34 9 9,358 9,864 9,864 10,731 Interest rate (1) 8.5 % 9.0 % 8.9 % 9.0 % 9.5 % 8.2 % 8.4 % — 8.6 % Brazilian reais Bank loans 184 52 6 — — — 242 242 505 Interest rate 7.8 % 7.8 % 7.8 % — — — 7.8 % — 9.5 % Notes payable (2) — — — — — — — — 5 Interest rate — — — — — — — — 0.4 % Colombian pesos Bank loans 417 4 1 — — — 422 422 848 Interest rate 5.7 % 6.8 % 6.8 % — — — 5.7 % — 5.7 % Chilean pesos Bank loans 875 577 593 304 — — 2,349 2,348 3,212 Interest rate 3.9 % 4.0 % 4.3 % 4.1 % — — 4.1 % — 4.1 % Subtotal Ps. 1,739 Ps. 752 Ps. 2,140 Ps. 338 Ps. 9 Ps. 9,358 Ps. 14,336 Ps. 14,261 Ps. 20,823 Total long-term debt Ps. 12,269 Ps. 4,718 Ps. 2,658 Ps. 51,796 Ps. 471 Ps. 42,104 Ps. 114,016 Ps. 120,103 Ps. 126,228 Current portion of long term debt (12,269 ) (11,238 ) Ps. 101,747 Ps. 114,990 (1) All interest rates shown in this table are weighted average contractual annual rates. (2) Promissory note denominated and payable in Brazilian reais; however, it is linked to the performance of the exchange rate between the Brazilian real and the U.S. dollar. As a result, the principal amount under the promissory note may be increased or reduced based on the depreciation or appreciation of the Brazilian real relative to the U.S. dollar. |
Summary of Financial Instruments by Type of Interest Rate | Hedging Derivative Financial Instruments (1) 2020 2021 2022 2023 2024 2025 and Total 2019 Total (notional amounts in millions of Mexican pesos) Cross currency swaps: U.S. dollars to Mexican pesos Fixed to variable (3) Ps. — Ps. — Ps. — Ps. 11,403 Ps. — — Ps. 11,403 Ps. 11,403 Interest pay rate — — — 8.8 % — — 8.8 % 9.8 % Interest receive rate — — — 4.0 % — — 4.0 % 4.0 % Fixed to fixed 9,423 — — 2,963 — 6,596 18,982 19,768 Interest pay rate 9.0 % — — 7.6 % — 9.7 % 9.0 % 9.1 % Interest receive rate 3.9 % — — 3.9 % — 4.0 % 3.9 % 3.9 % Fixed to fixed (2) Interest pay rate — — — — — 9.4 % 9.4 % — Interest receive rate — — — — — 4.4 % 4.4 % — U.S. dollars to Brazilian reais Fixed to variable — — — — — — — 4,652 Interest pay rate — — — — — — — 4.7 % Interest receive rate — — — — — — — 0.4 % Fixed to fixed 4,365 — — — — — 4,365 4,559 Interest pay rate 8.3 % — — — — — 8.3 % 8.3 % Interest receive rate 2.9 % — — — — — 2.9 % 2.9 % Variable to fixed — — — 9,046 — — 9,046 13,483 Interest pay rate — — — 9.5 % — — 9.5 % 9.0 % Interest receive rate — — — 3.9 % — — 3.9 % 3.6 % Chilean pesos Variable to fixed 163 — — — — — 163 364 Interest pay rate 6.9 % — — — — — 6.9 % 6.9 % Interest receive rate 4.7 % — — — — — 4.7 % 4.6 % Interest rate swap: Mexican pesos Variable to fixed rate: — 405 414 1,367 2,167 — 4,353 2,847 Interest pay rate — 7.6 % 6.6 % 5.8 % 3.6 % — 4.9 % 6.3 % Interest receive rate — 2.8 % 4.9 % 4.1 % 3.7 % — 3.9 % 4.0 % Variable to fixed rate (3) Interest pay rate — — — 7.2 % — — 7.2 % 7.2 % Interest receive rate — — — 8.8 % — — 8.8 % 9.8 % (1) All interest rates shown in this table are weighted average contractual annual rates. (2) Cross Currency swaps which covers U.S. dollars to Mexican pesos with a notional of Ps.8,869, that have a starting date in 2023; receiving a fixed rate of 4.4% and pay a variable rate of 9.4%. (3) Interest rate swaps with a notional amount of Ps. 11,403 that receive a variable rate of 8.8% and pay a fixed rate of 7.2%; joined with a cross currency swap, which covers U.S. dollars to Mexican pesos, that receives a fixed rate of 4.0% and pay a variable rate of 8.8%. |
Summary of Interest Expense | For the years ended December 31, 2019, 2018 and 2017, the interest expense is comprised as follows: 2019 2018 2017 Interest on debts and borrowings Ps. 6,434 Ps. 6,760 Ps. 6,377 Capitalized interest — (5 ) (10 ) Finance charges for employee benefits 382 373 317 Derivative instruments 2,300 2,649 4,339 Finance operating charges 243 48 69 Finance charges payable for leases 4,774 — — Ps. 14,133 Ps. 9,825 Ps. 11,092 |
Summary of Liabilities Arising from Financing Activities | 19.1 Reconciliation of liabilities arising from financing activities Carrying Cash Flows Non-cash Carrying Value at Acquisition New leases Foreign Others Bank loans Ps. 22,944 Ps. (2,999 ) Ps. 1,917 Ps. — Ps. (397 ) Ps. (658 ) Ps. 20,807 Notes payable 105,720 (5,022 ) — — (1,244 ) (2,310 ) 97,144 Total liabilities from financing activities 128,664 (8,021 ) 1,917 — (1,641 ) (2,968 ) 117,951 Financial leases 50,220 (8,848 ) 2,187 7,490 (10 ) 3,640 54,679 Total financing activities Ps. 178,884 Ps. (16,869 ) Ps. 4,104 Ps. 7,490 Ps. (1,651 ) Ps. 672 Ps. 172,630 Carrying Cash Flows Non-cash Carrying Value at Acquisition New leases Foreign Others Bank loans Ps. 13,669 Ps. 8,313 Ps. 1,147 Ps. — Ps. 417 Ps. (602 ) Ps. 22,944 Notes payable 117,551 (9,314 ) — — (769 ) (1,840 ) 105,628 Lease liabilities 128 (26 ) — — (10 ) — 92 Total liabilities from financing activities 131,348 (1,027 ) 1,147 — (362 ) (2,442 ) 128,664 Carrying Cash Flows Non-cash Carrying Value at Acquisition New leases Foreign Others Bank loans Ps. 14,497 Ps. (949 ) Ps. — Ps. — Ps. 190 Ps. (69 ) Ps. 13,669 Notes payable 123,859 (3,574 ) — — 4,954 (7,688 ) 117,551 Lease liabilities 892 (8 ) — — — (756 ) 128 Total liabilities from financing activities 139,248 (4,531 ) — — 5,144 (8,513 ) 131,348 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Income and Expenses | 2019 2018 2017 Gain on sale of shares Ps. — Ps. — Ps. 123 Gain on sale of Heineken Group shares (see Note 4.2) — — 29,989 Gain on sale of other assets — 344 — Gain on sale of long-lived assets — 174 210 Sale of waste material 21 13 3 Insurance rebates — 10 6 Foreign exchange gain 26 123 — Recoveries of prior years (1) 896 — — Others 70 9 1,620 Other income Ps. 1,013 Ps. 673 Ps. 31,951 Contingencies associated with prior acquisitions or disposals Ps. 149 Ps. 138 Ps. 39 Loss on sale of property, plant and equipment 67 — — Loss on sale of other assets — — 148 Recoveries of prior years 44 116 35 Impairment of long-lived assets (2) 1,018 432 2,063 Disposal of long-lived assets (3) 861 518 451 Suppliers provisions — — 398 Foreign exchange losses related to operating activities — — 2,524 Contingencies 589 518 636 Severance payments (4) 1,207 264 243 Donations 489 528 242 Legal fees and other expenses from past acquisitions 17 149 612 Venezuela deconsolidation effect — — 26,123 Other 464 284 352 Other expenses Ps. 4,905 Ps. 2,947 Ps. 33,866 (1) Following a favorable decision from Brazilian tax authorities received during 2019, Coca-Cola FEMSA has been entitled to reclaim indirect tax payments made in prior years in Brazil, resulting in the recognition of a tax credit and a positive effect in the operating revenues and other income captions of the condensed consolidated income statements. See Note 25.1.1. (2) Includes impairment loss related to Compañía Panameña de Bebibas, S.A.P.I. de C.V., for an amount of Ps. 948 and Ps. 432 million in 2019 and 2018, respectively (see Note 10), and impairment loss in Venezuela of Ps. 2,053 in 2017 (see Note 3.3). (3) Charges related to fixed assets retirement from ordinary operations and other long-lived assets. (4) During 2019, the Company incurred restructuring costs related to some of their operations as part of an efficiency program. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Financial Assets and Liabilities Measured at Fair Value | The following table summarizes the Company’s financial assets and liabilities measured at fair value, as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Level 1 Level 2 Level 1 Level 2 Financial instrument (current asset) 91 917 — 735 Financial instrument (non-current 2,880 21,570 2,680 10,752 Financial instrument (current liability) 47 801 236 147 Financial instrument (non-current — 1,672 — 1,262 |
Fair Value of Company's Publicly Traded Debt | The fair value of the Company’s publicly traded debt is based on quoted market prices as of December 31, 2018 and 2017, which is considered to be level 1 in the fair value hierarchy. 2019 2018 Carrying value Ps. 117,951 Ps. 128,664 Fair value 124,038 128,741 |
Disclosure of Outstanding Interest Rate Swap Agreements | At December 31, 2019, the Company has the following outstanding interest rate swap agreements: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 2020 Ps. 4,365 Ps. (142) Ps. — 2021 405 (24 ) — 2022 414 (20 ) — 2023 12,770 (79 ) 245 2024 3 — — At December 31, 2018, the Company has the following outstanding interest rate swap agreements: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 Ps .4,032 Ps. (49 ) Ps. — 2020 4,559 (112 ) — 2021 4,548 (151 ) — 2022 617 (18 ) — 2023 13,101 (49 ) 1,143 |
Disclosure of Outstanding Forward Agreements to Purchase Foreign Currency | At December 31, 2019, the Company had the following outstanding forward agreements to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 8,447 Ps. (292) Ps. 34 2021 215 — 27 2022 52 — Ps. 5 At December 31, 2018, the Company had the following outstanding forward agreements to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 Ps. 5,808 Ps. (65) Ps. 133 |
Summary of Outstanding Colar Options to Purchase Foreign Currency | At December 31, 2019, the Company paid a net premium of Ps. 43 million for the following outstanding collar options to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 107 Ps. — Ps. 2 At December 31, 2018, the Company paid a net premium of Ps. 43 million for the following outstanding collar options to purchase foreign currency: Maturity Date Notional Fair Value Liability Fair Value Asset 2019 Ps. 1,734 Ps. (33) Ps. 57 |
Disclosure of Outstanding Cross Currency Swap Agreements | At December 31, 2019, the Company had the following outstanding cross – currency swap agreements: Maturity Date Notional Fair Value Liability 2019 Fair Value Asset 2020 Ps. 17,252 Ps. (307) Ps. 883 2021 702 — 49 2022 375 — 3 2023 23,466 (594 ) 7,122 2024 1,788 (53 ) — 2026 772 (63 ) — 2027 6,596 (843 ) — 2029 1,371 — 121 2043 8,869 — 576 At December 31, 2018, the Company had the following outstanding cross – currency swap agreements: Maturity Date Notional Fair Value Fair Value Asset 2019 Ps. 4,738 Ps. — Ps. 502 2020 18,126 (378 ) 1,015 2021 4,774 — 615 2022 396 (7 ) — 2023 23,948 (396 ) 7,818 2026 813 (154 ) — 2027 6,889 (42 ) 202 |
Disclosure of Fair Value of Commodity Price Contracts | At December 31, 2019, Coca-Cola FEMSA had the following sugar price contracts: Maturity Date Notional Fair Value Asset 2020 Ps. 1,554 Ps. 53 2021 Ps. 98 Ps. 15 At December 31, 2018, Coca-Cola FEMSA had the following sugar price contracts: Maturity Date Notional Fair Value Liability 2019 Ps. 1,223 Ps. (88 ) At December 31, 2019, Coca-Cola FEMSA had the following aluminum price contracts: Maturity Date Notional Fair Value Asset 2020 Ps. 394 Ps. 4 At December 31, 2018, Coca-Cola FEMSA had the following aluminum price contracts: Maturity Date Notional Fair Value Liability 2019 Ps. 265 Ps. (17 ) At December 31, 2019, Coca-Cola FEMSA had the following PX+MEG (resine) contracts: Maturity Date Notional Fair Value Liability 2020 Ps. 320 Ps. (28) At December 31, 2018, Coca-Cola FEMSA had the following PX+MEG (resine) contracts: Maturity Date Notional Fair Value Liability 2019 Ps. 1,303 Ps. (131) |
Disclosure of Detailed Information about Treasury Lock Contracts | At December 31, 2019, the Company had the following outstanding treasury locks agreements: Maturity Date Notional Fair Value Liability Fair Value Asset 2020 Ps. 10,365 Ps. — Ps. 102 |
Disclosure of Net Effects of Expired Contracts Met Hedging Criteria | Net effects of expired contracts that met hedging criteria Impact in Consolidated 2019 2018 2017 Cross currency swap (1) Interest expense Ps. 199 Ps. 157 Ps. 2,102 Cross currency swap (1) Foreign exchange 480 642 — Interest rate swaps Interest expense 515 — — Forward agreements to purchase foreign currency Foreign exchange (116) (87) (40 ) Commodity price contracts Cost of goods sold (391 ) (258 ) (6 ) Options to purchase foreign currency Cost of goods sold (63 ) (8 ) — Forward agreements to purchase foreign currency Cost of goods sold (163 ) 240 89 (1) This amount corresponds to the settlement of cross currency swaps portfolio in Brazil presented as part of the other financial activities. |
Disclosure of Net Effect of Changes in Fair Value of Derivative Financial Instruments Did Not Meet Hedging Criteria for Accounting Purposes | 21.10 Net effect of changes in fair value of derivative financial instruments that did not meet the hedging criteria for accounting purposes. Derivative Impact in Consolidated Income Statement 2019 2018 2017 Forward agreements to purchase foreign currency Market value gain (loss) on financial statements Ps. 4 Ps. (12 ) Ps. 12 Cross currency swaps Market value (loss) gain on financial statements Ps. (293 ) (116 ) 337 21.11 Net effect of expired contracts that did not meet the hedging criteria for accounting purposes Type of Derivatives Impact in Consolidated Income Statement 2019 2018 2017 Cross-currency swaps Market value loss on financial instruments Ps. (293 ) Ps. (186 ) Ps. (104 ) Embedded derivatives Market value gain on financial instruments 4 — 1 |
Summary of Sensitivity Analysis of Interest Rate Risks Management | The following disclosures provide a sensitivity analysis of the interest rate risks management considered to be reasonably possible at the end of the reporting period, which the Company is exposed to as it relates to its fixed and floating rate borrowings, which it considers in its existing hedging strategy: Interest Rate Swap (1) Change in Effect on 2019 FEMSA (2) (100 Bps. ) Ps. (432 ) Coca-Cola FEMSA (100 Bps. ) (37 ) 2018 FEMSA (2) (100 Bps. ) Ps. (359 ) Coca-Cola FEMSA (100 Bps. ) (1,976 ) 2017 FEMSA (2) (100 Bps. ) Ps. (452 ) Coca-Cola FEMSA (100 Bps. ) (234 ) (1) The sensitivity analysis effects include all subsidiaries of the Company. (2) Does not include Coca-Cola FEMSA. Interest Effect of Unhedged Portion Bank Loans 2019 2018 2017 Change in interest rate +100 Bps. +100 Bps. +100 Bps. Effect on profit loss Ps. (50 ) Ps. 145 Ps. (251 ) |
Summary of Maturity Analysis for Non-derivative and Derivative Financial Liabilities | The amounts disclosed are undiscounted net cash outflows for the respective upcoming fiscal years, based on the earliest date on which the Company could be required to pay. Cash outflows for financial liabilities (including interest) without fixed amount or timing are based on economic conditions (like interest rates and foreign exchange rates) existing at December 31, 2019. 2020 2021 2022 2023 2024 2025 and Non-derivative Notes and bonds Ps. 10,598 Ps. 1,130 Ps. 1,154 Ps. 29,446 Ps. 600 Ps. 44,328 Loans from Banks 5,745 809 902 542 4,711 — IFRS 16 lease obligation 244 153 82 35 13 — Derivative financial liabilities 1,291 1,337 1,192 (1,011 ) 671 (7,314 ) |
Summary of Financial Instruments to Hedge Exposure to Foreign Exchange Rates and Interest Rates | As of December 31, 2019, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates as follows: Maturity 1-6 months 6-12 months More than 12 Foreign exchange currency risk Foreign exchange currency forward contracts Net exposure 4,373 2,086 — Average exchange rate MXN/USD 20.00 20.20 — Net exposure 746 378 267 Average exchange rate BRL/USD 4.05 4.19 4.44 Net exposure 220 85 — Average exchange rate COP/USD 3,491 3,460 — Net exposure 137 — — Average exchange rate ARS/USD 79.23 — — Net exposure 335 87 — Average exchange rate URY/USD 37.55 40.03 — Foreign exchange currency option contracts Net exposure 107 — — Average exchange rate COP/USD 3,252 — — Foreign exchange currency swap contracts Net exposure 9,423 — 18,428 Average exchange rate MXN/USD 19.54 — 15.93 Net exposure — 4,365 9,140 Average exchange rate BRL/USD — 3.41 4.00 Net exposure — 84 1,195 Average exchange rate BRL/MXN — 0.21 0.21 Net exposure — — 2,403 Average exchange rate COP/USD — — 3,075 Net exposure — 3,007 1,371 Average exchange rate CLP/USD — 696.02 677.00 Interest rate risk Interest rate swaps Net exposure — 4,365 — Interest rate average BRL — 8.34 % — Net exposure — — 11,403 Interest rate average MXN — — 7.17 % Net exposure — — 2,197 Average exchange rate CLP — — 6.26 % Commodities risk Aluminum 276 118 — Average price (USD/Ton) 1,796 1,812 — Sugar 1,192 361 98 Average price (USD cent/Lb) 13.09 12.73 13.45 PX+MEG 160 160 — Average price (USD /Ton) 848 848 — As of December 31, 2018, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates as follows: Maturity 1-6 months 6-12 months More than 12 Foreign exchange currency risk Foreign exchange currency forward contracts Net exposure Ps. 1,022 Ps. — Ps. — Average exchange rate MXN/EUR 23.78 — — Net exposure 3,484 683 — Average exchange rate MXN/USD 20.19 20.75 — Net exposure 805 337 — Average exchange rate BRL/USD 3.75 3.83 — Net exposure 429 63 — Average exchange rate COP/USD 2,851 2,976 — Net exposure 339 — — Average exchange rate ARS/USD 43.31 — — Net exposure 196 159 — Average exchange rate URY/USD 32.9 33.97 — Foreign exchange currency swap contracts Net exposure — — 31,172 Average exchange rate MXN/USD — — 16.08 Net exposure — 4,652 18,042 Average exchange rate BRL/USD — 3.36 3.59 Net exposure — 86 79 Average exchange rate BRL/MXN — 0.18 0.19 Net exposure — — 1,928 Average exchange rate COP/USD — — 3,043.59 Net exposure — — 3,725 Average exchange rate CLP/USD — — 693.10 Interest rate risk Interest rate swaps Net exposure — 4,013 8,594 Interest rate average BRL — 6.29 % 8.15 % Net exposure — — 11,403 Interest rate average MXN — — 7.17 % Net exposure 19 — 2,828 Average exchange rate CLP 6.45 % — 5.56 % Commodities risk Aluminum 189 75,250 — Average price (USD/Ton) 1,975 1,986 — Sugar 725 498 — Average price (USD cent/Lb) 12.86 13.11 — PX+MEG 739 565 — Average price (USD /Ton) 1,077 1,040 — |
Summary of Cash Flows Hedge Exposures | As of December 31, 2018, the Company maintained the following cash flows hedge exposures: Cash flow hedge reserve Cash flow hedge Remained balances of cash flow Foreign exchange currency risk Purchase of stock 1 22 — As of December 31, 2017, the Company maintained the following cash flows hedge exposures: Cash flow hedge reserve Cash flow hedge Remained balances of cash flow Foreign exchange currency risk Purchase of stock — 11 — |
Reconciliation Per Category of Equity Components and Analysis of OCI Components, Net of Tax Generated by Cash Flow Hedges | As of December 31, 2019, a reconciliation per category of equity components and an analysis of OCI components, net of tax; generated by the cash flow hedges were as follows: Hedging Costs of hedging Balances at beginning of the period Ps. 812 Ps. 12 Cash flows hedges Fair value changes: Foreign exchange currency risk – Purchase of stock (333 ) (12 ) Foreign exchange currency risk – Other stock (6,202 ) — Interest rate risk 5,327 — The amounts included in non-financial Taxes due to changes in reserves during the period 363 — Balances at the end of the period Ps. (33 ) Ps. — |
Market risk [member] | |
Statement [LineItems] | |
Disclosure of Sensitivity Analysis of Market Risks Management | The following disclosures provide a sensitivity analysis of the market risks management considered to be reasonably possible at the end of the reporting period based on a stress test of the exchange rates according to an annualized volatility estimated with historic prices obtained for the underlying asset over a period of time, in the cases of derivative financial instruments related to foreign currency risk, which the Company is exposed to as it relates to in its existing hedging strategy: Foreign Currency Risk Change in Exchange Rate Effect on Equity 2019 FEMSA (1) +9% MXN/EUR Ps. 57 -9% MXN/EUR (57 ) +13% BRL/USD 202 -13% BRL/USD (202 ) Coca-Cola FEMSA +9% MXN/USD 739 -9% MXN/USD (739 ) +13% BRL/USD 155 -13% BRL/USD (155 ) +5% UYU/USD 23 -5% UYU/USD (23 ) +10% COP/USD 54 -10% COP/USD (54 ) +25% ARS/USD 88 -25% ARS/USD (88 ) 2018 FEMSA (1) +12 MXN/EUR Ps. 116 -12% MXN/EUR (116 ) Coca-Cola FEMSA +13% MXN/USD 668 -13% MXN/USD (668 ) +16% BRL/USD 413 -16% BRL/USD (413 ) +8% UYU/USD 46 -8% UYU/USD (46 ) +12% COP/USD 2 -12% COP/USD (2 ) +27% ARS/USD 522 -27% ARS/USD (522 ) 2017 FEMSA (1) +13% MXN/EUR Ps. 141 -13% MXN/EUR (141 ) +8% CLP/USD 2 -8% CLP/USD (2 ) Coca-Cola FEMSA +12% MXN/USD 626 -12% MXN/USD (626 ) +14% BRL/USD 234 -14% BRL/USD (234 ) +9% COP/USD 73 -9% COP/USD (73 ) +10% ARS/USD 29 -10% ARS/USD (29 ) (1) Does not include Coca-Cola FEMSA. Cross Currency Swaps (1) (2) Change in Exchange Rate Effect on Effect on 2019 FEMSA (3) +11% CLP/USD Ps. — Ps. 546 -11% CLP/USD — (546 ) +9% MXN/USD — 1,805 -9% MXN/USD — (1,805 ) +10% COP/USD — 286 -10% COP/USD — (286 ) +13% MXN/BRL — 177 -13% MXN/BRL — (177 ) Coca-Cola FEMSA +9% MXN/USD 2,315 — -9% MXN/USD (2,315 ) — +13% BRL/USD 645 — -13% BRL/USD (645 ) — 2018 FEMSA (3) +10% CLP/USD Ps. — Ps. 368 -10% CLP/USD — (368 ) +13% MXN/USD — 2,706 -13% MXN/USD — (2,706 ) +12% COP/USD — 283 -12% COP/USD — (283 ) +15% MXN/BRL — 27 -15% MXN/BRL — (27 ) Coca-Cola FEMSA +13% MXN/USD 3,130 — -13% MXN/USD (3,130 ) — +16% BRL/USD 9,068 — -16% BRL/USD (9,068 ) — 2017 FEMSA (3) +8% CLP/USD Ps. — Ps. 373 -8% CLP/USD — (373 ) +12% MXN/USD — 3,651 -12% MXN/USD — (3,651 ) +9% COP/USD — 304 -9% COP/USD — (304 ) +14% MXN/BRL — 23 -14% MXN/BRL — (23 ) Coca-Cola FEMSA +12% MXN/USD 3,540 — -12% MXN/USD (3,540 ) — +14% BRL/USD 7,483 — -14% BRL/USD (7,483 ) — (1) The sensitivity analysis effects include all subsidiaries of the Company. (2) Includes the sensitivity analysis effects of all derivative financial instruments related to foreign exchange risk. (3) Does not include Coca-Cola FEMSA. Net Cash in Foreign Currency (1) Change in Exchange Rate Effect on 2019 FEMSA (2) +9% EUR/+9 % USD Ps. 3,833 -9% EUR/ -9 % (3,833 ) Coca-Cola FEMSA +8% USD 940 -8% USD (940 ) 2018 FEMSA (2) +12% EUR/+13 % USD Ps. 8,596 -12% EUR/ -13 % (8,596 ) Coca-Cola FEMSA f+13% USD 1,868 -13% USD (1,868 ) 2017 FEMSA (2) +13% EUR/+12% USD Ps. 8,077 -13% EUR/ -12% USD (8,077 ) Coca-Cola FEMSA +12% USD 553 -12% USD (553 ) (1) The sensitivity analysis effects include all subsidiaries of the Company. (2) Does not include Coca-Cola FEMSA. Commodity Price Contracts (1) Change in Effect on 2019 Coca-Cola FEMSA Sugar - 24 % Ps. (255 ) Aluminum - 15 % Ps. (1,164 ) 2018 Coca-Cola FEMSA Sugar -30 % Ps. (341 ) Aluminum - 22 % Ps. (55 ) 2017 Coca-Cola FEMSA Sugar - % Ps. (32 ) (1) Effects on commodity price contracts are only in Coca-Cola FEMSA. |
Non-Controlling Interest in Con
Non-Controlling Interest in Consolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Analysis of FEMSAs Non-Controlling Interest in its Consolidated Subsidiaries | An analysis of FEMSA’s non-controlling December 31, December 31, Coca-Cola FEMSA Ps. 72,649 Ps. 73,776 Other 1,113 4,713 Ps. 73,762 Ps. 78,489 |
Summary of Changes in the FEMSA's Non-Controlling Interest | The changes in the FEMSA’s non-controlling 2019 2018 2017 Balance at beginning of the period Ps. 78,489 Ps. 86,621 Ps. 74,266 Net income of non-controlling 7,349 9,089 (5,202 ) Other comprehensive income (loss): (4,552 ) (4,080 ) 7,240 Exchange differences on translation of foreign operation (3,833 ) (4,016 ) 7,349 Remeasurements of the net defined benefits liability (271 ) 155 30 Valuation of the effective portion of derivative financial instruments (448 ) (219 ) (139 ) Dividends (3,945 ) (3,713 ) (3,622 ) Share based payment (12 ) 31 50 Acquisition of Socofar non-controlling (3,530 ) — — Other acquisitions and remeasurements 32 413 (50 ) (Derecognition) contribution from non-controlling — (11,140 ) 11,072 Accounting standard adoption effects (“IFRIC 23 and IFRS 9”) (69 ) (150 ) — Adoption of IAS 29 for Argentina — 1,418 — Capitalization of issued shares to former owners of Vonpar in — — 2,867 Balance at end of the period Ps. 73,762 Ps. 78,489 Ps. 86,621 |
Summary of Non-Controlling Interest's Accumulated Other Comprehensive Loss | Non-controlling December 31, December 31, Exchange differences on translation foreign operation Ps. (699 ) Ps. 3,134 Remeasurements of the net defined benefits liability (390 ) (119 ) Valuation of the effective portion of derivative financial instruments (611 ) (163 ) Accumulated other comprehensive income Ps. (1,700 ) Ps. 2,852 |
Summary of Financial Information of Coca-Cola FEMSA | Summarized financial information in respect of Coca-Cola FEMSA is set out below: December 31, December 31, Total current assets Ps. 56,796 Ps. 57,490 Total non-current 201,043 206,297 Total current liabilities 51,010 45,524 Total non-current 77,144 86,513 Total revenue Ps. 194,471 Ps. 182,342 Consolidated net (loss) income for continuing operations 12,630 11,704 Consolidated net income from discontinued operations — 3,366 Consolidated comprehensive income for continuing operations Ps. 5,489 Ps. 3,563 Consolidated comprehensive income from discontinued operations — 3,056 Net cash flow generated from operating activities for continuing operations 31,289 27,581 Net cash flow generated from operating activities from discontinued operations — 1,308 Net cash flow used in investing activities for continuing operations (10,744 ) (8,291 ) Net cash flow used in investing activities from discontinued operations — (962 ) Net cash flow used in financing activities for continuing operations (22,794 ) (14,235 ) Net cash flow used in financing activities from discontinued operations — (37 ) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Capital Stock | As of December 31, 2019 and 2018, FEMSA’s capital stock is comprised as follows: “B” Units “BD” Units Total Units 1,417,048,500 2,161,177,770 3,578,226,270 Shares: Series “B” 7,085,242,500 2,161,177,770 9,246,420,270 Series “D” — 8,644,711,080 8,644,711,080 Subseries “D-B” — 4,322,355,540 4,322,355,540 Subseries “D-L” — 4,322,355,540 4,322,355,540 Total shares 7,085,242,500 10,805,888,850 17,891,131,350 |
Summary of Dividends Declared and Paid | For the years ended December 31, 2019, 2018 and 2017 the dividends declared and paid by the Company and Coca-Cola FEMSA were as follows: 2019 2018 2017 FEMSA Ps. 9,692 Ps. 9,220 Ps. 8,636 Coca-Cola FEMSA (100% of dividend) 7,437 7,038 6,991 For the years ended December 31, 2019 and 2018 the dividends declared and paid per share by the Company are as follows: Series of Shares 2019 2018 “B” Ps. 0.48333 Ps. 0.45980 “D” 0.60417 0.57480 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Calculation of Basic and Dilued Earnings Per Share Amounts | Diluted earnings per share amounts are calculated by dividing consolidated net income for the year attributable to controlling interest by the weighted average number of shares outstanding during the period adjusted for the effects of dilutive potential shares (originated by the Company’s share-based payment program). 2019 2018 2017 Per Series Per Series Per Series Per Series Per Series Per Series (in millions of shares) Weighted average number of shares for basic earnings per share 9,244.16 8,635.65 9,243.81 8,634.26 9,243.14 8,631.57 Effect of dilution associated with non-vested 2.26 9.06 2.61 10.45 3.29 13.14 Weighted average number of shares adjusted for the effect of dilution (Shares outstanding) 9,246.42 8,644.71 9,246.42 8,644.71 9,246.42 8,644.71 Dividend rights per series 100 % 125 % 100 % 125 % 100 % 125 % Weighted average number of shares further adjusted to reflect dividend rights 9,246.42 10,805.89 9,246.42 10,805.89 9,246.42 10,805.89 Basic earnings per share from continuing operations 1.03 1.29 1.13 1.41 2.04 2.55 Basic earnings per share from discontinued operations — — 0.07 0.09 0.08 0.10 Diluted earnings per share from continuing operations 1.03 1.29 1.13 1.41 2.04 2.55 Diluted earnings per share from discontinued operations — — 0.07 0.09 0.08 0.10 Allocation of earnings, weighted 46.11 % 53.89 % 46.11 % 53.89 % 46.11 % 53.89 % Net controlling interest income allocated from continuing operations Ps. 9,545 Ps. 11,154 Ps. 10,403 Ps. 12,157 Ps. 18,842 Ps. 22,021 Net controlling interest income allocated from discontinued operations Ps. — Ps. — Ps. 660 Ps. 770 Ps. 713 Ps. 832 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Major Components of Income Tax Expense | The major components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are: 2019 2018 2017 Current tax expense Ps. 11,652 Ps. 10,480 Ps. 18,592 Deferred tax expense (income): Origination and reversal of temporary differences 127 491 (7,546 ) (Recognition) of tax losses, net (1,201 ) (927 ) (823 ) Change in the statutory rate (102 ) 125 (10 ) Total deferred tax income expense (benefit) (1,176 ) (311 ) (8,379 ) Total income taxes Ps. 10,476 Ps. 10,169 Ps. 10,213 |
Schedule of Recognized in Consolidated Statement of Other Comprehensive Income | Recognized in Consolidated Statement of Other Comprehensive Income (“OCI”) Income tax related to items charged or recognized directly in OCI during the period: 2019 2018 2017 Unrealized loss on cash flow hedges Ps. (391 ) Ps. (293 ) Ps. (191 ) Exchange differences on translation of foreign operations (1,667 ) (2,647 ) 387 Remeasurements of the net defined benefit liability (371 ) 287 (154 ) Share of the other comprehensive income of equity accounted investees 288 989 (1,465 ) Total income tax benefit recognized in OCI Ps. (2,141 ) Ps. (1,664 ) Ps. (1,423 ) |
Schedule of Domestic Tax Rate | A reconciliation between tax expense and income before income taxes and share of the profit or loss of associates and joint ventures accounted for using the equity method multiplied by the Mexican domestic tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 Mexican statutory income tax rate 30.0 % 30.0 % 30.0 % Difference between book and tax inflationary values and translation effects (2.2 %) (4.0 %) (5.7 %) Annual inflation tax adjustment 0.2 % (1.2 %) 0.5 % Difference between statutory income tax rates 0.9 % 1.8 % 1.2 % Repatriation of capital benefit decree — — (22.6 %) Non-deductible 4.5 % 3.2 % 2.6 % Non-taxable (1.0 %) (0.5 %) — Effect of changes in Argentina tax law (0.3 %) (0.9 %) — Income tax credits — — (2.0 %) Venezuela deconsolidation effect — — 28.6 % Others 0.3 % 1.8 % (4.1 %) 32.4 % 30.2 % 28.6 % |
Schedule of Deferred Income Tax | Deferred Income Tax Related to: Consolidated Statement Consolidated Statement December 31, December 31, 2019 2018 2017 Allowance for doubtful accounts Ps. (437 ) Ps. (416 ) Ps. (43 ) Ps. 93 Ps. 16 Inventories 76 80 (6 ) (27 ) (71 ) Other current assets 256 75 182 (31 ) 34 Property, plant and equipment, net (4,068 ) (3,841 ) (320 ) (851 ) (2,349 ) Investments in equity accounted investees (5,482 ) (5,979 ) 7 40 (5,094 ) Other assets 137 212 59 (82 ) (155 ) Finite useful lived intangible assets (111 ) 271 (345 ) 627 207 Indefinite lived intangible assets 10,788 10,331 1,220 758 968 Post-employment and other long-term employee benefits (1,067 ) (1,058 ) (2 ) (148 ) (77 ) Derivative financial instruments (9 ) 21 (31 ) (63 ) (171 ) Provisions (1,216 ) (2,761 ) 1,359 1,122 (636 ) Temporary non-deductible (3,183 ) (1,400 ) (1,797 ) (293 ) (144 ) Employee profit sharing payable (430 ) (403 ) 8 (27 ) (11 ) Tax loss carryforwards (10,309 ) (9,558 ) (1,201 ) (927 ) (547 ) Tax credits to recover (2) (1,855 ) (1,855 ) (122 ) (109 ) (1,059 ) Other comprehensive income (1) (596 ) 229 29 (54 ) (224 ) Exchange differences on translation of foreign operations in OCI 3,959 5,202 — — — Other liabilities 533 193 (3 ) (324 ) 948 Right of use from leases, net (561 ) — (577 ) — — Deferred tax income Ps. (1,583 ) Ps. (296 ) Ps. (8,355 ) Deferred tax income net recorded in share of the profit of equity accounted investees 407 (15 ) (24 ) Deferred tax income, net Ps. (1,176 ) Ps. (311 ) Ps. (8,379 ) Deferred income taxes, net (13,575 ) (10,657 ) Deferred tax asset (20,521 ) (16,543 ) Deferred tax liability Ps. 6,946 Ps. 5,886 (1) Deferred tax related to derivative financial instruments and remeasurements of the net defined benefit liability. (2) Correspond to income tax credits arising from dividends received from foreign subsidiaries to be recovered within the next ten years accordingly to the Mexican Income Tax law as well as effects of the exchange of foreign currencies with a related and non-related |
Schedule of Deferred Tax related to Other Comprehensive Income (AOCI) | Deferred tax related to Accumulated Other Comprehensive Income (“AOCI”) Income tax related to items charged or 2019 2018 Unrealized loss on derivative financial instruments Ps. (36 ) Ps. 361 Remeasurements of the net defined benefit liability (560 ) (132 ) Total deferred tax loss related to AOCI Ps. (596 ) Ps. 229 |
Schedule of Changes in Net Deferred Income Tax Asset | The changes in the balance of the net deferred income tax asset are as follows: 2019 2018 2017 Balance at the beginning of the period Ps. (10,657 ) Ps. (9,720 ) Ps. (1,016 ) Deferred tax provision for the period (1,176 ) (311 ) (8,218 ) Deferred tax income net recorded in share of the profit of equity accounted investees (406 ) 165 (67 ) Acquisition of subsidiaries (382 ) (316 ) (367 ) Effects in equity: Unrealized (gain) on cash flow hedges (391 ) (445 ) (83 ) Exchange differences on translation of foreign operations (2,121 ) (1,762 ) (1,472 ) Remeasurements of the net defined benefit liability (204 ) 543 131 Retained earnings of equity accounted investees 384 54 (38 ) Cash flow hedges in foreign investments 425 310 (540 ) Restatement effect of the period and beginning balances associated with hyperinflationary economies 953 438 1,689 Disposal of subsidiaries — 387 — Deconsolidation of subsidiaries — — 261 Balance at the end of the period Ps. (13,575 ) Ps. (10,657 ) Ps. (9,720 ) |
Schedule of Tax Loss Carryforwards | The subsidiaries in Mexico, Colombia and Brazil have tax loss carryforwards. The tax losses carryforwards and corresponding years of expiration are as follows: Year Tax Loss 2020 Ps. 825 2021 351 2022 221 2023 227 2024 610 2025 4,876 2026 4,706 2027 35 2028 2,247 2029 3,984 No expiration (Brazil and Colombia) 14,454 Ps. 32,536 |
Summary of Changes in the Balance of Tax Loss Carryforwards | The changes in the balance of tax loss carryforwards are as follows: 2019 2018 Balance at beginning of the period Ps. 29,941 Ps. 29,487 Derecognized (377 ) (306 ) Additions 7,194 4,124 Usage of tax losses (2,947 ) (1,385 ) Translation effect of beginning balances (1,275 ) (1,979 ) Balance at end of the period Ps. 32,536 Ps. 29,941 |
Other Liabilities, Provisions_2
Other Liabilities, Provisions, Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Other Current Financial Liabilities | 26.1 Other current financial liabilities December 31, December 31, Sundry creditors Ps. 11,509 Ps. 8,489 Derivative financial instruments (see Note 21) 848 384 Other notes payable (1) 11,294 — Others 4 20 Total Ps. 23,655 Ps. 8,893 (1) Related to Socofar’s put option exercised on December 13, 2019. |
Schedule of Provisions and Other Non-Current Liabilities | 26.2 Provisions and other non-current December 31, December 31, Contingencies Ps. 8,854 Ps. 9,928 Payable taxes 710 873 Others 879 767 Total Ps. 10,443 Ps. 11,568 |
Schedule of Other Financial Liabilities | 26.3 Other financial liabilities December 31, December 31, Derivative financial instruments (see Note 21) Ps. 1,672 Ps. 1,262 Security deposits 809 970 Total Ps. 2,481 Ps. 2,232 |
Schedule of Provisions Recorded in Consolidated Statement of Financial Position | The following table presents the nature and amount of the contingencies recorded as of December 31, 2019 and 2018: December 31, December 31, Indirect taxes Ps. 5,062 Ps. 5,421 Labor 2,455 2,601 Legal 1,337 1,906 Total Ps. 8,854 Ps. 9,928 |
Summary of Changes in Provisions | 26.5 Changes in the balance of provisions recorded 26.5.1 Indirect taxes December 31, December 31, December 31, Balance at beginning of the period Ps. 5,421 Ps. 6,836 Ps. 11,065 Penalties and other charges 1 123 362 New contingencies 486 178 91 Contingencies added in business combination — 104 861 Cancellation and expiration (247 ) 106 (796 ) Payments (174 ) (112 ) (947 ) Brazil amnesty adoption — — (3,321 ) Effects of changes in foreign exchange rates (425 ) (951 ) (479 ) Effects due to derecognition of Philippines — (863 ) — Balance at end of the period Ps. 5,062 Ps. 5,421 Ps. 6,836 26.5.2 Labor December 31, December 31, December 31, Balance at beginning of the period Ps. 2,601 Ps. 2,723 Ps. 2,578 Penalties and other charges 293 310 56 New contingencies 521 330 283 Contingencies added in business combination 44 289 — Cancellation and expiration (283 ) (133 ) (32 ) Payments (500 ) (193 ) (92 ) Effects of changes in foreign exchange rates (221 ) (725 ) (69 ) Venezuela deconsolidation effect — — (1 ) Balance at end of the period Ps. 2,455 Ps. 2,601 Ps. 2,723 26.5.3 Legal December 31, December 31, December 31, Balance at beginning of the period Ps. 1,906 Ps. 3,296 Ps. 2,785 Penalties and other charges 94 86 121 New contingencies 213 72 186 Contingencies added in business combination 77 67 783 Cancellation and expiration (542 ) (146 ) (16 ) Payments (318 ) (251 ) (417 ) Brazil amnesty adoption — — 7 Effects of changes in foreign exchange rates (93 ) (335 ) (151 ) Venezuela deconsolidation effect — — (2 ) Effects due to derecognition of Philippines — (883 ) — Balance at end of the period Ps. 1,337 Ps. 1,906 Ps. 3,296 |
Information by Segment (Tables)
Information by Segment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Inter Segment Policies for Segment | 2019 Coca-Cola FEMSA FEMSA Proximity FEMSA Health FEMSA Heineken Other (1) Consolidation Consolidated Total revenues Ps. 194,471 Ps. 184,810 Ps. 58,922 Ps. 47,852 Ps. — Ps. 41,788 Ps. (21,132 ) Ps. 506,711 Intercompany revenue 5,688 325 — 11 — 15,108 (21,132 ) — Gross profit 87,507 75,099 17,645 4,775 — 11,551 (5,096 ) 191,481 Administrative expenses — — — — — — — 19,930 Selling expenses — — — — — — — 121,871 Other income — — — — — — — 1,013 Other expenses — — — — — — — 4,905 Interest expense 6,904 5,733 1,226 1,175 1 2,303 (3,209 ) 14,133 Interest income 1,230 338 10 114 23 4,563 (3,110 ) 3,168 Other net finance loss (3) — — — — — — — (2,527 ) Income before income taxes and share of the profit of equity accounted investees 18,409 11,458 1,487 124 10 449 359 32,296 Income taxes 5,648 923 556 49 (491 ) 3,791 — 10,476 Share of the profit of equity accounted investees, net of tax (131 ) 9 — — 6,428 (78 ) — 6,228 Net income from continuing operations — — — — — — — 28,048 Net income from discontinued operations — — — — — — — — Consolidated net income — — — — — — — 28,048 Depreciation and amortization (2) 10,642 9,604 3,112 855 — 1,708 (112 ) 25,810 Non-cash 1,083 529 23 105 — 755 — 2,495 Investments in equity accounted investees 9,751 3,719 — — 83,789 211 — 97,470 Total assets 257,841 117,229 54,366 17,701 86,639 158,746 (54,981 ) 637,541 Total liabilities 128,154 98,468 53,468 16,754 3,151 66,812 (55,017 ) 311,790 Investments in fixed assets (4) 11,465 10,374 1,529 706 — 1,685 (180 ) 25,579 (1) Includes other companies and corporate (see Note 1). (2) Includes bottle breakage. (3) Includes foreign exchange loss, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments. (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets. 2018 Coca-Cola FEMSA FEMSA Proximity FEMSA Health Division FEMSA Heineken Other (1) Consolidation Consolidated Total revenues Ps. 182,342 Ps. 167,458 Ps. 51,739 Ps. 46,936 Ps .— Ps. 42,293 Ps. (21,024 ) Ps. 469,744 Intercompany revenue 5,160 290 — — — 15,574 (21,024 ) — Gross profit 83,938 65,529 15,865 4,231 — 10,233 (4,626 ) 175,170 Administrative expenses — — — — — — — 17,313 Selling expenses — — — — — — — 114,573 Other income — — — — — — — 673 Other expenses — — — — — — — 2,947 Interest expense 7,568 1,806 678 211 1 2,057 (2,496 ) 9,825 Interest income 1,004 372 14 159 22 3,757 (2,496 ) 2,832 Other net finance income (3) — — — — — — — (387 ) Income before income taxes and share of the profit of equity accounted investees 17,190 13,335 1,438 407 11 1,219 30 33,630 Income taxes 5,260 1,124 652 123 4 3,006 — 10,169 Share of the profit of equity accounted investees, net of tax (226 ) (17 ) — — 6,478 17 — 6,252 Net income from continuing operations — — — — — — — 29,713 Net income from discontinued operations — — — — — — — 3,366 Consolidated net income — — — — — — — 33,079 Depreciation and amortization (2) 10,028 4,971 983 152 — 1,103 — 17,237 Non-cash 755 367 22 11 — 490 — 1,645 Investments in equity accounted investees 10,518 84 — — 83,461 252 — 94,315 Total assets 263,787 75,146 35,881 7,015 86,340 150,674 (42,462 ) 576,381 Total liabilities 132,037 56,468 23,357 6,142 4,054 61,340 (42,559 ) 240,839 Investments in fixed assets (4) 11,069 9,441 1,162 520 — 2,391 (317 ) 24,266 (1) Includes other companies and corporate (see Note 1). (2) Includes bottle breakage. (3) Includes foreign exchange loss, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments. (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets. 2017 (Revised ) (5) Coca-Cola FEMSA FEMSA FEMSA FEMSA Fuel Division Heineken Other (1) Consolidation Consolidated Total revenues Ps. 183,256 Ps. 149,833 Ps. 47,421 Ps. 38,388 Ps. — Ps. 39,732 Ps. (18,698 ) Ps. 439,932 Intercompany revenue 4,679 202 — — — 13,817 (18,698 ) — Gross profit 83,508 56,127 14,213 2,767 — 9,307 (3,832 ) 162,090 Administrative expenses — — — — — — — 15,222 Selling expenses — — — — — — — 105,880 Other income — — — — — — — 31,951 Other expenses — — — — — — — 33,866 Interest expense 8,778 1,313 685 156 — 2,372 (2,212 ) 11,092 Interest income 791 306 23 47 23 2,492 (2,212 ) 1,470 Other net finance expenses (3) — — — — — — — 6,320 Income before income taxes and share of the profit of equity accounted investees (11,255 ) 11,723 956 146 30,000 4,265 (64 ) 35,771 Income taxes 4,184 762 434 23 (5,132 ) 9,942 — 10,213 Share of the profit of equity accounted investees, net of tax 60 5 — — 7,847 11 — 7,923 Net income from continuing operations — — — — — — — 33,480 Net income from discontinued operations — — — — — — — 3,726 Consolidated net income — — — — — — — 37,206 Depreciation and amortization (2) 9,632 4,144 942 118 — 804 — 15,640 Non-cash 1,663 285 31 18 — 267 — 2,264 Investments in equity accounted investees 11,501 642 — — 83,720 234 — 96,097 Total assets 285,677 64,717 38,496 4,678 76,555 154,930 (36,512 ) 588,541 Total liabilities 144,967 49,101 25,885 4,091 1,343 62,754 (36,512 ) 251,629 Investments in fixed assets (4) 12,917 8,396 774 291 — 1,479 (371 ) 23,486 (1) Includes other companies and corporate (see Note 1). (2) Includes bottle breakage. (3) Includes foreign exchange gain, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments. (4) Includes acquisitions and disposals of property, plant and equipment, intangible assets and other long-lived assets. (5) Disclosure has been revised for the restructuring of FEMSA Comercio – Proximity Division and for 2017 the discontinued Philippines operations of Coca-Cola FEMSA Philippines. The assets (Ps. 28,272) and liabilities (Ps. 9,945) for the discontinued operation for 2017 of Philippines segment are included in Mexico and Central America. |
Summary of Geographic Disclosure | Geographic disclosure for the Company non-current 2019 2018 Mexico and Central America (1) Ps. 244,199 Ps. 195,310 South America (2) 136,480 120,003 Europe 83,789 83,461 Consolidated Ps. 464,468 Ps. 398,774 (1) Domestic (Mexico only) non-current (2) South America non-current non-current non-current non-current non-current non-current |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Disaggregation of Revenue by Geographic Area, Business Unit and Products and Services Categories | The information sets below described the disaggregation of revenue by geographic area, business unit and products and services categories in which the Company operates. The timing in which the revenues is recognized by the business units in the Company, is the point in the time in which control of goods and services is transferred in its entirely to the customer. Coca-Cola FEMSA FEMSA Comercio – FEMSA Comercio – FEMSA Comercio – Other Segments Total 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 2019 2018 (1) 2017 By geographic areas: Mexico and Central America (2) Ps. 109,249 Ps. 100,162 Ps. 92,643 Ps. 182,864 Ps. 166,040 Ps. 148,652 Ps. 8,170 Ps. 7,898 Ps. 7,359 Ps. 47,852 Ps. 46,936 Ps. 38,388 Ps. 32,217 Ps. 31,918 Ps. 29,211 Ps. 380,352 Ps. 352,954 Ps. 316,253 South America (3) 85,223 82,180 86,608 1,946 1,418 1,181 50,752 43,841 40,062 — — — 9,552 10,350 10,467 147,473 137,789 138,318 Venezuela — — 4,005 — — — — — — — — — 18 25 54 18 25 4,059 Total revenues 194,472 182,342 183,256 184,810 167,458 149,833 58,922 51,739 47,421 47,852 46,936 38,388 41,787 42,293 39,732 527,843 490,768 458,630 Consolidation adjustments 5,688 5,160 4,678 325 290 202 — — — 11 — — 15,108 15,574 13,818 21,132 21,024 18,698 Consolidated revenues 188,784 177,182 178,578 184,485 167,168 149,632 58,922 51,739 47,421 47,841 46,936 38,388 26,679 26,719 25,913 506,711 469,744 439,932 By products and/or services Products sold in the point-of-sale Ps. 194,472 Ps. 182,342 Ps. 183,256 Ps. 184,810 Ps 167,458 Ps. 149,834 Ps. 58,922 Ps. 51,739 Ps. 47,421 Ps. 47,852 Ps. 46,936 Ps. 38,388 Ps. 13,198 Ps. 13,240 Ps. 12,667 Ps. 499,254 Ps. 461,715 Ps. 431,566 Services revenues — — — — — — — — — — — — 28,589 29,053 27,064 28,589 29,053 27,064 Consolidation adjustments 5,688 5,160 4,678 325 290 202 — — — 11 — — 15,108 15,574 13,818 21,132 21,024 18,698 Consolidated revenues 188,784 177,182 178,578 184,485 167,168 149,632 58,922 51,739 47,421 47,841 46,936 38,388 26,679 26,719 25,913 506,711 469,744 439,932 (1) For IFRS 15 adoption purposes, the Company applies the modified retrospective method in which no comparative information is restated for previous periods. The Company recognized no adjustment as a result of adopting IFRS 15. (2) Central America includes Guatemala, Nicaragua, Costa Rica and Panama. Domestic (Mexico only) revenues were Ps. 346,659, Ps. 319,792 and Ps. 288,783 and during the years ended December 31, 2019, 2018 and 2017, respectively. (3) South America includes Brazil, Argentina, Colombia, Chile, Uruguay, Ecuador and Venezuela, although Venezuela is shown separately above for 2017. South America revenues include Brazilian revenues of Ps. 67,076, Ps. 63,601 and Ps. 64,345 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Colombia revenues of Ps. 16,440, Ps. 19,245 and Ps. 17,545 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Argentina revenues of Ps. 6,857, Ps. 9,237 and Ps. 13,938 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Chile revenues of Ps. 45,276, Ps. 44,576 and Ps. 40,660 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Uruguay revenue of Ps. 3,421 and Ps. 1,925 during the years ended in December 31, 2019 and 2018, respectively. South America revenues include Ecuador revenue of Ps. 6,539 during the year ended in December 31, 2019. |
Company Business - Summary of S
Company Business - Summary of Significant Investments in Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Coca-Cola FEMSA [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of ownership in subsidiary | 47.20% | 47.20% |
Activities | Production, distribution and marketing of certain Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina and Uruguay (see Note 4). As of December 31, 2019, The Coca-Cola Company (“TCCC”) indirectly owns 27.8% of Coca-Cola FEMSA’s capital stock. In addition, shares representing 25% of Coca-Cola FEMSA’s capital stock are traded on the Bolsa Mexicana de Valores (Mexican Stock Exchange “BMV”) and on the New York Stock Exchange, Inc. (“NYSE”) in the form of American Depositary Shares (“ADS”). | |
S.A.B. de C.V. and subsidiaries [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of voting share in subsidiary | 56.00% | 63.00% |
Activities | Production, distribution and marketing of certain Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina and Uruguay (see Note 4). As of December 31, 2019, The Coca-Cola Company (“TCCC”) indirectly owns 27.8% of Coca-Cola FEMSA’s capital stock. In addition, shares representing 25% of Coca-Cola FEMSA’s capital stock are traded on the Bolsa Mexicana de Valores (Mexican Stock Exchange “BMV”) and on the New York Stock Exchange, Inc. (“NYSE”) in the form of American Depositary Shares (“ADS”). | |
FEMSA Comercio - Proximity Division [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of ownership in subsidiary | 100.00% | 100.00% |
Activities | Small-box retail chain format operations in Mexico, Colombia, Peru, United States, Chile and Brazil, mainly under the trade name "OXXO". | |
FEMSA Comercio - Fuel Division [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of ownership in subsidiary | 100.00% | 100.00% |
Activities | Retail service stations for fuels, motor oils, lubricants and car care products under the trade name "OXXO GAS" with operations in Mexico. | |
FEMSA Comercio - Health Division [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of ownership in subsidiary | 100.00% | |
Activities | Drugstores operations in Chile, Colombia and Ecuador, mainly under the trademark "Cruz Verde", "Fybeca" and "Sana Sana"; and in Mexico under various brands such as YZA, La Moderna and Farmacon. | |
Ownership interest description | Various | |
Heineken investment [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of ownership in subsidiary | 14.80% | 14.80% |
Activities | Heineken N.V. and Heineken Holding N.V. shares, which represents an aggregate of 14.8% economic interest in both entities (Heineken Group). | |
Other businesses [member] | ||
Disclosure Of Parent Entity Information [line items] | ||
Percentage of ownership in subsidiary | 100.00% | 100.00% |
Activities | Companies engaged in the production and distribution of coolers, commercial refrigeration equipment, plastic cases, food processing, preservation and weighing equipment; logistic transportation and maintenance services to FEMSA's subsidiaries and to third parties. |
Company Business - Summary of_2
Company Business - Summary of Significant Investments in Subsidiaries (Parenthetical) (Detail) | Dec. 13, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Parent Entity Information [line items] | |||
Country of incorporation | Mexico | ||
Farmacias Yza [member] | |||
Disclosure Of Parent Entity Information [line items] | |||
Percent of ownership interest | 18.60% | ||
Grupo Socofar [member] | |||
Disclosure Of Parent Entity Information [line items] | |||
Percent of ownership interest | 40.00% | 100.00% | 60.00% |
Basis of Preparation - Addition
Basis of Preparation - Additional Information (Detail) - $ / $ | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 24, 2020 | Jan. 01, 2019 | |
Disclosure of detailed information about investment property [line items] | |||||
Conversion rate of Mexican pesos to U.S. dollars | 18.8600 | ||||
Description of significant influence | If the Company holds, directly or indirectly, 20 per cent or more of the voting power of the investee, it is presumed that it has significant influence, unless it can be clearly demonstrated that this is not the case. If the Company holds, directly or indirectly, less than 20 per cent of the voting power of the investee, it is presumed that the Company does not have significant influence, unless such influence can be clearly demonstrated. | ||||
Weighted average incremental borrowing rate | 9.84% | ||||
Changes in foreign exchange rates [member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Conversion rate of Mexican pesos to U.S. dollars | 24.8225 | ||||
Increase decrease in foreign currency exchange rate | 32.00% | ||||
CCFPI [member] | |||||
Disclosure of detailed information about investment property [line items] | |||||
Percentage of ownership interest in joint venture | 51.00% | ||||
Percentage of ownership interest in joint venture to be acquired | 49.00% | ||||
Sale of ownership percentage | 51.00% |
Basis of Preparation - Summary
Basis of Preparation - Summary of Reconciliation Operating Lease Commitments (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure Basis Of Preparation Summary Of Reconciliation Operating Lease Commitments Abstract [Abstract] | ||
Operating lease commitments as of December 31, 2018 | $ 82,216 | |
Discounted operating lease commitments | 50,827 | |
Less: Commitments relating to short-term leases and low-value assets | 699 | |
Add: Commitments relating to leases previously classified as finance leases | 92 | |
Lease liabilities and right-of-use asset as of January 1, 2019 | $ 54,679 | $ 50,220 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) Bs. / $ in Millions, $ in Millions, $ in Millions | Oct. 19, 2017 | Dec. 31, 2019MXN ($)$ / $yrAge | Dec. 31, 2019USD ($)yrAge | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($)Bs. / $ | Dec. 31, 2016 | Dec. 31, 2019USD ($)$ / $ | Jan. 30, 2018Bs. / $ | |||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Goodwill recognized | $ 0 | ||||||||||||
Sale percentage of investment | 5.20% | ||||||||||||
Other comprehensive income to consolidated net income | $ 6,632 | ||||||||||||
Other expenses amount | 4,905 | $ 2,947 | 33,866 | ||||||||||
Exchange differences on translation of foreign subsidiaries and equity accounted investees in equity | (12,556) | $ (666) | [1] | (13,174) | 14,482 | [2] | |||||||
Net sale | 504,059 | [3] | 26,726 | [1],[3] | 468,894 | 439,239 | [2] | ||||||
Income (loss) | 28,048 | [3] | $ 1,488 | [1] | 33,079 | 37,207 | [2] | ||||||
Assets | 637,541 | [3] | 576,381 | 588,541 | $ 33,804 | [1] | |||||||
Liabilities | $ 311,790 | [3] | 240,839 | 251,629 | $ 16,532 | [1] | |||||||
Exchange rate | $ / $ | 18.8600 | 18.8600 | |||||||||||
Cumulative inflation percentage | 100.00% | 100.00% | |||||||||||
Amortization expense | $ 1,812 | 1,913 | 1,259 | ||||||||||
Impairment recognized | [4] | $ 1,018 | 432 | 2,063 | |||||||||
Minimum year of service for retirement benefits | yr | 10 | 10 | |||||||||||
Minimum age for retirement benefits | Age | 60 | 60 | |||||||||||
Minimum wages or salary for service | 12 days | 12 days | |||||||||||
Maximum wages or salary for service | 15 years | 15 years | |||||||||||
Distribution costs | $ 25,068 | $ 23,421 | $ 25,041 | ||||||||||
Profit sharing computation ratio on income | 10.00% | 10.00% | |||||||||||
Income tax rate | 8.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |||||||
Retail Stores [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Operating lease term | 15 years | 15 years | |||||||||||
Bottom of range [member] | Office Space [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Operating lease term | 3 years | 3 years | |||||||||||
Bottom of range [member] | Information technology and management system costs [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Estimated useful lives | 3 years | 3 years | |||||||||||
Bottom of range [member] | Long-term alcohol licenses [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Estimated useful lives | 12 years | 12 years | |||||||||||
Top of range [member] | Office Space [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Operating lease term | 5 years | 5 years | |||||||||||
Top of range [member] | Information technology and management system costs [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Estimated useful lives | 10 years | 10 years | |||||||||||
Top of range [member] | Long-term alcohol licenses [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Estimated useful lives | 15 years | 15 years | |||||||||||
Coca-Cola FEMSA [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Exchange rate | Bs. / $ | 25,000 | ||||||||||||
Amortization expense | $ 273 | $ 277 | $ 759 | ||||||||||
Coca-Cola FEMSA [member] | PET bottles [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Estimated useful lives | 1 year 6 months | 1 year 6 months | |||||||||||
Coca-Cola FEMSA [member] | Glass bottles [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Estimated useful lives | 3 years | 3 years | |||||||||||
Coca-Cola FEMSA [member] | DICOM [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Exchange rate | Bs. / $ | 22,793 | ||||||||||||
Venezuela [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Impairment recognized | $ 948 | $ 432 | $ 2,053 | ||||||||||
Venezuela [member] | Coca-Cola FEMSA [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Other expenses amount | 28,176 | ||||||||||||
Exchange differences on translation of foreign subsidiaries and equity accounted investees in equity | 26,123 | ||||||||||||
Impairment charge | 1,098 | ||||||||||||
Remeasurement at fair-value of Venezuelan investment | 210 | ||||||||||||
Net sale | 4,005 | ||||||||||||
Income (loss) | (2,223) | ||||||||||||
Assets | 4,138 | ||||||||||||
Liabilities | 2,889 | ||||||||||||
Impairment recognized | $ 745 | ||||||||||||
Mexico [member] | |||||||||||||
Disclosure of significant accounting policies [line items] | |||||||||||||
Income tax rate | 30.00% | 30.00% | 30.00% | 30.00% | |||||||||
[1] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||||||||
[2] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 | ||||||||||||
[3] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||||||||
[4] | Includes impairment loss related to Compañía Panameña de Bebibas, S.A.P.I. de C.V., for an amount of Ps. 948 and Ps. 432 million in 2019 and 2018, respectively (see Note 10), and impairment loss in Venezuela of Ps. 2,053 in 2017 (see Note 3.3). |
Significant Accounting Polici_5
Significant Accounting Policies - Disclosure of Exchange Rates of Local Currencies Translated to Mexican Pesos (Detail) | 12 Months Ended | ||
Dec. 31, 2019$ / $ | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of significant accounting policies [line items] | |||
Exchange Rate as of | 18.8600 | ||
Guatemala [member] | Guatemala, Quetzal [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Quetzal | ||
Average Exchange Rate for | 250 | 256 | 257 |
Exchange Rate as of | 2.45 | 2.54 | |
Costa Rica [member] | Costa Rica, Colon [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Colon | ||
Average Exchange Rate for | 3 | 3 | 3 |
Exchange Rate as of | 0.03 | 0.03 | |
Panama [member] | U S dollar [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | U.S. dollar | ||
Average Exchange Rate for | 1,926 | 1,924 | 1,893 |
Exchange Rate as of | 18.85 | 19.68 | |
Colombia [member] | Colombian peso [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Colombian peso | ||
Average Exchange Rate for | 1 | 1 | 1 |
Exchange Rate as of | 0.01 | 0.01 | |
Nicaragua [member] | Nicaragua, Cordoba [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Cordoba | ||
Average Exchange Rate for | 58 | 62 | 63 |
Exchange Rate as of | 0.56 | 0.61 | |
Argentina [member] | Argentine peso [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Argentine peso | ||
Average Exchange Rate for | 41 | 73 | 115 |
Exchange Rate as of | 0.31 | 0.52 | |
Venezuela [member] | Venezuelan bolivar fuerte [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Bolivar | ||
Average Exchange Rate for | 0 | ||
Exchange Rate as of | 0 | ||
Brazil [member] | Brazilian reais [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Reais | ||
Average Exchange Rate for | 489 | 529 | 594 |
Exchange Rate as of | 4.68 | 5.08 | |
Chile [member] | Chilean peso [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Chilean peso | ||
Average Exchange Rate for | 3 | 3 | 3 |
Exchange Rate as of | 0.03 | 0.03 | |
Euro Zone [member] | Euro [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Euro (€) | ||
Average Exchange Rate for | 2,156 | 2,271 | 2,132 |
Exchange Rate as of | 21.12 | 22.54 | |
Peru [member] | Peru, Nuevo Sol [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Nuevo Sol | ||
Average Exchange Rate for | 577 | 585 | 578 |
Exchange Rate as of | 5.68 | 5.83 | |
Ecuador [member] | U S dollar [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | U.S. dollar | ||
Average Exchange Rate for | 1,926 | 1,924 | 1,893 |
Exchange Rate as of | 18.85 | 19.68 | |
Philippines [member] | Philippine peso [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Philippine peso | ||
Average Exchange Rate for | 0 | 37 | 38 |
Exchange Rate as of | 0 | 0.37 | |
Uruguay [member] | Uruguay Peso en Unidades Indexadas (UPUI) [member] | |||
Disclosure of significant accounting policies [line items] | |||
Functional / Recording Currency | Uruguayan peso | ||
Average Exchange Rate for | 55 | 63 | 66 |
Exchange Rate as of | 0.51 | 0.61 |
Significant Accounting Polici_6
Significant Accounting Policies - Disclosure of Recognition of Effects of Inflation in Countries with Hyperinflationary Economic Environments (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2016- 2018 [member] | Mexico [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 15.70% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Guatemala [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 12.20% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Costa Rica [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 5.70% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Panama [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 2.10% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Colombia [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 13.40% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Nicaragua [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 13.10% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Argentina [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 158.40% | ||
Type of Economy | Hyperinflationary | ||
2016- 2018 [member] | Brazil [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 25.00% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Philippines [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 11.90% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Euro Zone [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 2.70% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Chile [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 9.70% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Peru [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 9.30% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Ecuador [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 30.30% | ||
Type of Economy | Non-hyperinflationary | ||
2016- 2018 [member] | Uruguay [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 25.30% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Mexico [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 12.70% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Guatemala [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 13.50% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Costa Rica [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 2.50% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Panama [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 2.30% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Colombia [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 17.50% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Nicaragua [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 12.30% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Argentina [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 101.50% | ||
Type of Economy | Hyperinflationary | ||
2015 - 2017 [member] | Venezuela [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 30690.00% | ||
Type of Economy | Hyperinflationary | ||
2015 - 2017 [member] | Brazil [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 21.10% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Philippines [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 7.50% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Euro Zone [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 2.70% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Chile [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 9.70% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Peru [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 9.30% | ||
Type of Economy | Non-hyperinflationary | ||
2015 - 2017 [member] | Ecuador [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 30.30% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Mexico [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 13.20% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Guatemala [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 11.80% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Costa Rica [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 5.80% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Panama [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 0.50% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Colombia [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 11.00% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Nicaragua [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 15.60% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Argentina [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 179.40% | ||
Type of Economy | Hyperinflationary | ||
2017-2019 [member] | Brazil [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 11.10% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Euro Zone [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 3.60% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Chile [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 8.30% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Peru [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 5.20% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Ecuador [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 0.30% | ||
Type of Economy | Non-hyperinflationary | ||
2017-2019 [member] | Uruguay [member] | |||
Disclosure of Hyperinflationary Reporting [line items] | |||
Cumulative Inflation | 22.00% | ||
Type of Economy | Non-hyperinflationary |
Significant Accounting Polici_7
Significant Accounting Policies - Disclosure of Estimated Useful Lives of Company's Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 15 years |
Bottom of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 25 years |
Bottom of range [member] | Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 10 years |
Bottom of range [member] | Distribution equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 7 years |
Bottom of range [member] | Refrigeration equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 5 years |
Bottom of range [member] | Returnable bottles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 1 year 6 months |
Bottom of range [member] | Information technology equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 3 years |
Bottom of range [member] | Other equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 3 years |
Top of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 50 years |
Top of range [member] | Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 20 years |
Top of range [member] | Distribution equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 15 years |
Top of range [member] | Refrigeration equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 7 years |
Top of range [member] | Returnable bottles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 3 years |
Top of range [member] | Information technology equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 5 years |
Top of range [member] | Other equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of principal assets | 10 years |
Mergers, Acquisitions and Dis_3
Mergers, Acquisitions and Disposals - Additional Information (Detail) $ in Millions | May 22, 2018MXN ($) | Dec. 31, 2019MXN ($)Employees | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Aug. 16, 2018 |
Disclosure of detailed information about business combination [line items] | |||||
Sale percentage of investment | 5.20% | ||||
Proceeds from investment property | $ 53,051 | ||||
Gain on sale of investment | 29,989 | ||||
Gain is net of transaction related costs | 160 | ||||
Other comprehensive income to consolidated net income | 6,632 | ||||
Other comprehensive income to consolidated net income a total loss | $ 2,431 | ||||
Increase in Goodwill | $ 0 | ||||
Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of ownership interest of subsidiary | 47.20% | 47.20% | |||
CCFPI [member] | Written put options [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of ownership interest | 51.00% | ||||
Cafe Del Pacifico SAPI De CV Caffenio [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of voting equity interests acquired | 10.00% | ||||
Business acquisition, consideration transferred | $ 370 | ||||
Business acquisition, percentage of ownership interest of subsidiary | 50.00% | ||||
Other acquisitions [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, consideration transferred | $ 7,671 | ||||
Other acquisitions [member] | Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, consideration transferred | $ 6,552 | ||||
Decrease in Non-Current Assets | 4,031 | ||||
Increase in Goodwill | $ 2,903 | ||||
Abasa [member] | Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of voting equity interests acquired | 100.00% | ||||
Los Volcanes [member] | Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of voting equity interests acquired | 100.00% | ||||
MONRESA [member] | Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of voting equity interests acquired | 100.00% | ||||
Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Decrease in Non-Current Assets | $ 236 | ||||
Increase in Goodwill | 2,903 | ||||
Deferred tax liabilities recognised as of acquisition date | 0 | ||||
Coca-Cola FEMSA [member] | Distribution rights [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Intangible assets recognised as of acquisition date | $ 2,887 | ||||
GPF [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of voting equity interests acquired | 100.00% | ||||
AGV [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Business acquisition, percentage of voting equity interests acquired | 100.00% | ||||
Number of employees | Employees | 2,600 |
Mergers, Acquisitions and Dis_4
Mergers, Acquisitions and Disposals - Summary of Purchase Price to Fair Value of Net Assets Acquired and Reconciliation of Cash Flows (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Disclosure of detailed information about business combination [line items] | ||||||
Total liabilities | $ (311,790) | [1] | $ (16,532) | $ (240,839) | $ (251,629) | |
Goodwill | 0 | |||||
Other acquisitions [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Total current assets | 4,085 | |||||
Total non-current assets | 5,250 | |||||
Total assets | 9,335 | |||||
Total liabilities | 8,153 | |||||
Net assets acquired | 1,182 | |||||
Goodwill | 6,542 | |||||
Non-controlling interest | (53) | |||||
Total consideration transferred | 7,671 | |||||
Amount to be paid | (147) | |||||
Cash acquired | (389) | |||||
Net cash paid | 7,135 | |||||
Other acquisitions [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Total consideration transferred | $ 7,671 | |||||
Cash acquired | (860) | |||||
Other acquisitions [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Total current assets | 1,864 | |||||
Total non-current assets | 4,031 | |||||
Total assets | 7,610 | |||||
Total liabilities | (3,691) | |||||
Net assets acquired | 3,649 | |||||
Goodwill | 2,903 | |||||
Total consideration transferred | 6,552 | |||||
Cash acquired | (860) | |||||
Net cash paid | 5,692 | |||||
Other acquisitions [member] | Distribution rights [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Intangible assets recognised as of acquisition date | $ 1,715 | |||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Mergers, Acquisitions and Dis_5
Mergers, Acquisitions and Disposals - Summary of Selected Income Statement Information Related to Business Acquisition (Detail) - Other acquisitions [member] - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about business combination [line items] | ||
Total revenues | $ 8,594 | |
Income before income taxes | 37 | |
Net income (loss) | $ (1) | |
Coca-Cola FEMSA [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Total revenues | $ 4,628 | |
Income before income taxes | 496 | |
Net income (loss) | $ 413 |
Mergers, Acquisitions and Dis_6
Mergers, Acquisitions and Disposals - Summary of Purchase Price to Fair Value of Net Assets Acquired and Reconciliation of Cash Flows (Parenthetical) (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other acquisitions [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash acquired | $ 389 | |
Other Acquisitions [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash acquired | $ 860 |
Mergers, Acquisitions and Dis_7
Mergers, Acquisitions and Disposals - Summary of Unaudited Pro Forma Financial Information (Detail) - MXN ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about business combination [line items] | |||
Total revenues | $ 516,496 | $ 473,420 | $ 462,112 |
Income before income taxes and share of the profit of equity accounted investees | 33,823 | 34,266 | 39,917 |
Net income | $ 29,516 | $ 33,521 | $ 37,311 |
Series B [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Basic net controlling interest income per share | $ 1.11 | $ 1.22 | $ 2.12 |
Series D [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Basic net controlling interest income per share | $ 1.38 | $ 1.52 | $ 2.65 |
Mergers, Acquisitions and Dis_8
Mergers, Acquisitions and Disposals - Summary of Income Statement of Discontinued Operations (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019MXN ($) | [1] | Dec. 31, 2019USD ($) | [1],[2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||||
Total revenues | $ 506,711 | $ 26,867 | $ 469,744 | $ 439,932 | [3] | ||
Cost of goods sold | 315,230 | 16,714 | 294,574 | 277,842 | [3] | ||
Gross profit | 191,481 | 10,153 | 175,170 | 162,090 | [3] | ||
Foreign exchange gain, net | $ 2,467 | $ 131 | 248 | (4,934) | [3] | ||
Less: non-controlling interest in discontinued operations | 1,936 | 2,181 | [3] | ||||
Net income from discontinued operations | 3,366 | 3,726 | [3] | ||||
Discontinued operations [member] | |||||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||||
Total revenues | 24,167 | 20,524 | |||||
Cost of goods sold | 17,360 | 12,346 | |||||
Gross profit | 6,807 | 8,178 | |||||
Operating expenses | 5,750 | 6,865 | |||||
Other expenses, net | 7 | 134 | |||||
Financial income, net | (185) | (64) | |||||
Foreign exchange gain, net | (73) | (22) | |||||
Income before income taxes | 1,308 | 1,265 | |||||
Income taxes | 466 | 370 | |||||
Net income for discontinued operations | 842 | 895 | |||||
Less: non-controlling interest in discontinued operations | 391 | 469 | |||||
Controlling interest in discontinued operations | 451 | 426 | |||||
Accumulated currency translation effect for the subsidiary disposal | (811) | 2,830 | |||||
Gain from sale | 3,335 | ||||||
Net income for subsidiary disposal – controlling interest | 2,975 | 3,256 | |||||
Net income from discontinued operations | $ 3,366 | $ 3,725 | |||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2018USD ($) | [1],[2] | Dec. 31, 2017MXN ($) | [3] | Dec. 31, 2016MXN ($) | [3] | ||
Cash and cash equivalents [abstract] | ||||||||||||
Cash and bank balances | $ 31,905 | $ 31,768 | ||||||||||
Cash equivalents (see Note 3.5) | 33,657 | 30,279 | ||||||||||
Cash and cash equivalents | $ 65,562 | [1] | $ 3,476 | $ 62,047 | [1] | $ 3,290 | $ 96,944 | $ 43,637 | ||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Investments - Schedule of Inves
Investments - Schedule of Investments Classified as Amortized Cost (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | |
Disclosure Of Investments [line items] | |||||
Total investments | $ 12,366 | [1] | $ 656 | $ 30,924 | |
Fixed rate debt [member] | |||||
Disclosure Of Investments [line items] | |||||
Total fixed rate/variable rate | 1,052 | 910 | |||
Fixed rate debt [member] | Corporate debt securities [member] | |||||
Disclosure Of Investments [line items] | |||||
Acquisition cost | 1,048 | 906 | |||
Accrued interest | 4 | 4 | |||
Variable rate debt [member] | |||||
Disclosure Of Investments [line items] | |||||
Total fixed rate/variable rate | 11,314 | 30,014 | |||
Variable rate debt [member] | US Government agencies debt securities [member] | |||||
Disclosure Of Investments [line items] | |||||
Acquisition cost | 8,660 | ||||
Accrued interest | 28 | ||||
Variable rate debt [member] | Corporate debt securities [member] | |||||
Disclosure Of Investments [line items] | |||||
Acquisition cost | 11,307 | 21,259 | |||
Accrued interest | $ 7 | $ 67 | |||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net - Disclosure of Trade Accounts Receivable, Net (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Trade accounts receivables | $ 26,942 | $ 25,615 |
Loans to employees | 115 | 108 |
Others | 3,203 | 2,614 |
Allowance for expected credit losses | (2,189) | (2,114) |
Trade accounts receivable, Net | 29,633 | 28,164 |
The Coca-Cola company [member] | ||
Disclosure of financial assets [line items] | ||
Receivables from related parties | 813 | 1,173 |
Heineken [member] | ||
Disclosure of financial assets [line items] | ||
Receivables from related parties | $ 749 | $ 768 |
Trade Accounts Receivable, Ne_3
Trade Accounts Receivable, Net - Additional Information (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Accounts Receivable [line items] | |||
Expected credit loss percentage | 14.00% | ||
Top of range [member] | |||
Disclosure Of Accounts Receivable [line items] | |||
Percentage of unrecoverable trade accounts receivables | 9.00% | ||
The Coca-Cola company [member] | |||
Disclosure Of Accounts Receivable [line items] | |||
Contributions from related parties | $ 2,274 | $ 3,542 | $ 3,436 |
Trade Accounts Receivable, Ne_4
Trade Accounts Receivable, Net - Disclosure of Aging of Accounts Receivable (Days Current or Outstanding) (Detail) - Trade receivables [member] - Financial assets past due but not impaired [member] - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | $ 31,822 | $ 30,278 |
Current [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | 24,696 | 22,789 |
0-30 days [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | 3,278 | 4,081 |
31-60 days [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | 1,345 | 869 |
60-90 days [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | 668 | 598 |
90-120 days [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | 244 | 241 |
120+ days [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Accounts receivable , days current or outstanding | $ 1,591 | $ 1,700 |
Trade Accounts Receivable, Ne_5
Trade Accounts Receivable, Net - Disclosure of Changes in Allowance for Expected Credit Losses (Detail) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of financial assets [line items] | ||||
Balance at the beginning of the period | $ 2,114 | |||
Balance at the end of the period | 2,189 | $ 2,114 | ||
Trade receivables [member] | ||||
Disclosure of financial assets [line items] | ||||
Balance at the beginning of the period | 2,114 | 1,375 | $ 1,193 | |
Effect of adoption of IFRS 9 | 468 | |||
Adjusted balance at the beginning of the period | 2,114 | 1,843 | 1,193 | |
Allowance for the period | 709 | 348 | 530 | |
Additions (write-offs) of uncollectible accounts | [1] | (269) | (402) | (400) |
Addition from business combinations | 1 | 86 | ||
Effects of changes in foreign exchange rates | (365) | 324 | (32) | |
Effect of Venezuela deconsolidation | (2) | |||
Balance at the end of the period | $ 2,189 | $ 2,114 | $ 1,375 | |
[1] | In 2018, includes the effect of Coca-Cola FEMSA Philippines, Inc. sale for an aggregate amount of $ 82. |
Trade Accounts Receivable, Ne_6
Trade Accounts Receivable, Net - Disclosure of Changes in Allowance for Expected Credit Losses (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |
Sale of Coca-Cola FEMSA Philippines, Inc | $ 82 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | |
Classes of current inventories [abstract] | |||||
Finished products | $ 32,853 | $ 27,145 | |||
Raw materials | 5,331 | 5,363 | |||
Spare parts | 1,198 | 1,362 | |||
Work in process | 113 | 225 | |||
Inventories in transit | 1,528 | 1,591 | |||
Total inventories | $ 41,023 | [1] | $ 2,175 | $ 35,686 | |
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of current inventories [abstract] | |||
Inventory write-downs | $ 2,992 | $ 2,006 | $ 308 |
Inventories - Summary of Change
Inventories - Summary of Changes in Inventories (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of current inventories [abstract] | |||
Changes in inventories of finished goods and work in progress | $ 221,540 | $ 204,688 | $ 188,022 |
Raw materials and consumables used | 84,502 | 79,825 | 85,568 |
Total | $ 306,042 | $ 284,513 | $ 273,590 |
Other Current Assets and Othe_3
Other Current Assets and Other Current Financial Assets - Summary of Other Current Assets (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Other Current Assets [abstract] | ||
Prepaid expenses | $ 2,201 | $ 2,714 |
Recoverable taxes | 268 | 316 |
Agreements with customers | 294 | 146 |
Licenses | 575 | 146 |
Assets classified as held for sale | 197 | 49 |
Other | 553 | 49 |
Other current assets | $ 4,088 | $ 3,420 |
Other Current Assets and Othe_4
Other Current Assets and Other Current Financial Assets - Summary of Prepaid Expenses (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Prepaid Expense Current [abstract] | ||
Advances for inventories | $ 1,359 | $ 1,500 |
Advertising and promotional expenses paid in advance | 89 | 510 |
Advances to service suppliers | 60 | 236 |
Prepaid leases | 239 | 211 |
Prepaid insurance | 129 | 117 |
Others | 325 | 140 |
Current prepaid expenses | $ 2,201 | $ 2,714 |
Other Current Assets and Othe_5
Other Current Assets and Other Financial Assets - Additional Information (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of carrying amount and value in use of investments in associates and joint ventures [abstract] | |||
Prepaid advertising and promotional expenses | $ 8,840 | $ 7,695 | $ 6,148 |
Other Current Assets and Othe_6
Other Current Assets and Other Current Financial Assets - Summary of Other Current Financial Assets (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [3] | Dec. 31, 2018MXN ($) | ||
Disclosure Of Other Current Financial Assets [abstract] | ||||||
Restricted cash | $ 92 | $ 101 | ||||
Derivative financial instruments (see Note 21) | 1,008 | 735 | ||||
Note receivables | [1] | 46 | 42 | |||
Other current financial assets | $ 1,146 | [2] | $ 61 | $ 878 | ||
[1] | The carrying value approximates its fair value as of December 31, 2019 and 2018. | |||||
[2] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[3] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Other Current Assets and Othe_7
Other Current Assets and Other Current Financial Assets - Summary of Carrying of Restricted Cash Pledged (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Restricted Cash and Cash Equivalents [line items] | ||
Current restricted cash | $ 92 | $ 101 |
Brazilian reais [member] | ||
Disclosure of Restricted Cash and Cash Equivalents [line items] | ||
Current restricted cash | 89 | 98 |
Chilean pesos [member] | ||
Disclosure of Restricted Cash and Cash Equivalents [line items] | ||
Current restricted cash | $ 3 | $ 3 |
Equity Accounted Investees - Su
Equity Accounted Investees - Summary of Equity Accounted Investees (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2017MXN ($) | ||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Ownership Percentage | 14.80% | 14.80% | ||||
Carrying Value | $ 97,470 | [1] | $ 94,315 | $ 5,168 | $ 96,097 | |
Promotora Industrial Azucarera, S.A. de C.V. ("PIASA") [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Promotora Industrial Azucarera, S.A. de C.V. ("PIASA") | |||||
Principal Activity | Sugar production | |||||
Place of Incorporation | Mexico | |||||
Ownership Percentage | 36.40% | 36.40% | ||||
Carrying Value | $ 3,274 | $ 3,120 | ||||
Industria Envasadora De Queretaro SA De CVIEQSA [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Industria Envasadora de Querétaro, S.A. de C.V. (“IEQSA”) | |||||
Principal Activity | Canned bottling | |||||
Place of Incorporation | Mexico | |||||
Ownership Percentage | 26.50% | 26.50% | ||||
Carrying Value | $ 194 | $ 179 | ||||
Industria Mexicana de Reciclaje, S.A. de C.V. ("IMER") [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Industria Mexicana de Reciclaje, S.A. de C.V. (“IMER”) | |||||
Principal Activity | Recycling | |||||
Place of Incorporation | Mexico | |||||
Ownership Percentage | 35.00% | 35.00% | ||||
Carrying Value | $ 121 | $ 129 | ||||
Jugos del Valle, S.A.P.I. de C.V. [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Jugos del Valle, S.A.P.I. de C.V. | |||||
Principal Activity | Beverages | |||||
Place of Incorporation | Mexico | |||||
Ownership Percentage | 28.80% | 26.30% | ||||
Carrying Value | $ 1,929 | $ 1,571 | ||||
Leao Alimentos e Bebidas, LTDA [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Leao Alimentos e Bebidas, L.T.D.A. | |||||
Principal Activity | Beverages | |||||
Place of Incorporation | Brazil | |||||
Ownership Percentage | 24.70% | 24.70% | ||||
Carrying Value | $ 1,931 | $ 2,084 | ||||
Other Investments In Coca Cola FEMSAs Companies [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Other investments in Coca-Cola FEMSA’s companies | |||||
Principal Activity | Various | |||||
Place of Incorporation | Various | |||||
Carrying Value | $ 793 | 897 | ||||
Raizen Convenincias [Member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Raizen Conveniências | |||||
Principal Activity | Proximity | |||||
Place of Incorporation | Brazil | |||||
Ownership Percentage | 50.00% | |||||
Carrying Value | $ 3,410 | |||||
Compania Panamena de Bebidas, S.A.P.I. de C.V. [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Carrying Value | $ 486 | $ 1,550 | ||||
Joint ventures | Compañía Panameña de Bebidas, S.A.P.I. de C.V. | |||||
Principal Activity | Beverages | |||||
Place of Incorporation | Mexico | |||||
Ownership Percentage | 50.00% | 50.00% | ||||
Dispensadoras de Cafe, S.A.P.I. de C.V. [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Dispensadoras de Café, S.A.P.I. de C.V. | |||||
Carrying Value | $ 172 | $ 162 | ||||
Principal Activity | Services | |||||
Place of Incorporation | Mexico | |||||
Ownership Percentage | 50.00% | 50.00% | ||||
Fountain Agua Mineral, LTDA [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Carrying Value | $ 851 | $ 826 | ||||
Joint ventures | Fountain Agua Mineral, L.T.D.A. | |||||
Principal Activity | Beverages | |||||
Place of Incorporation | Brazil | |||||
Ownership Percentage | 50.00% | 50.00% | ||||
Other investments [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Other investments | |||||
Principal Activity | Various | |||||
Place of Incorporation | Various | |||||
Carrying Value | $ 520 | $ 336 | ||||
Heineken [member] | ||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||
Joint ventures | Heineken | |||||
Principal Activity | Beverages | |||||
Place of Incorporation | The Netherlands | |||||
Ownership Percentage | 14.80% | 14.80% | ||||
Carrying Value | $ 83,789 | $ 83,461 | ||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Equity Accounted Investees - _2
Equity Accounted Investees - Summary of Equity Accounted Investees (Parenthetical) (Detail) € in Millions, R$ in Millions, $ in Millions, $ in Millions | Jan. 01, 2018EUR (€) | Apr. 30, 2010 | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | [3] | Nov. 01, 2019BRL (R$) | ||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||||||
Proportion of ownership interest in associate | 14.80% | 14.80% | 14.80% | |||||||
Increase (decrease) in profit | $ 28,048 | [1] | $ 1,488 | [2] | $ 33,079 | $ 37,207 | ||||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||||||
Increase (decrease) in profit | € | € 10 | |||||||||
Increase (decrease) in equity | € | € 157 | |||||||||
Heineken Company [member] | ||||||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||||||
Proportion of ownership interest in associate | 8.63% | 8.63% | 8.63% | |||||||
Heineken Holding N.V. [member] | ||||||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||||||
Proportion of ownership interest in associate | 12.26% | 12.26% | 12.26% | |||||||
Heineken [member] | ||||||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||||||
Proportion of ownership interest in associate | 20.00% | 14.76% | 14.76% | 14.76% | ||||||
Raizen Convenincias [Member] | FEMSA Comercio [member] | ||||||||||
Disclosure of Investments in Associates and Joint Ventures [line items] | ||||||||||
Percentage of stake acquired | 50.00% | |||||||||
Notes payable on acquisition | R$ | R$ 367 | |||||||||
Cash paid, Acquisition | R$ | R$ 357 | |||||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Equity Accounted Investees - Ad
Equity Accounted Investees - Additional Information (Detail) € / shares in Units, € in Millions, $ in Millions, $ in Millions | Sep. 18, 2017€ / sharesshares | Apr. 30, 2010 | Dec. 31, 2019MXN ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018MXN ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017MXN ($) | Dec. 31, 2017EUR (€) | Apr. 24, 2020EUR (€) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Capital contribution | $ 3,348 | [1] | $ 3,348 | $ 178 | ||||||||||
Capitalization of borrowing costs | $ 333 | |||||||||||||
Ownership Percentage | 14.80% | 14.80% | 14.80% | 14.80% | ||||||||||
Amortisation expense related to net income attributable to equity holders | $ 1,812 | $ 1,913 | $ 1,259 | |||||||||||
Net income corresponding to the immaterial associates | 84 | 44 | 235 | |||||||||||
Net income (loss) corresponding to the immaterial joint ventures | (215) | (270) | (175) | |||||||||||
Promotora Mexicana de Embotelladores, S.A. de C.V. [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Dividends received | 1 | |||||||||||||
Compania Panamena de Bebidas, S.A.P.I. de C.V. [member] | Other expense [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Impairment loss on investments | 948 | 432 | ||||||||||||
Industria Envasadora de Quertaro, S.A. de C.V. (IEQSA) [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Dividends received | 8 | |||||||||||||
Promotora Industrial Azucarera, S.A. de C.V. ("PIASA") [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Capital contribution | $ 111 | $ 146 | ||||||||||||
Ownership Percentage | 36.40% | 36.40% | 36.40% | 36.40% | ||||||||||
Heineken [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Dividends received | $ 3,031 | $ 2,872 | 3,250 | |||||||||||
Ownership Percentage | 20.00% | 14.76% | 14.76% | 14.76% | 14.76% | |||||||||
Portion of investment sold | 5.20% | |||||||||||||
Equity income recognized from ownership interest, net of tax | $ 6,428 | $ 6,478 | 7,847 | |||||||||||
Amortisation expense related to net income attributable to equity holders | $ 6,885 | € 319 | $ 6,320 | € 281 | $ 7,656 | € 357 | ||||||||
Heineken Company [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Ownership Percentage | 8.63% | 8.63% | 8.63% | 8.63% | ||||||||||
Number of shares sold | shares | 22,485,000 | |||||||||||||
Share price | € / shares | € 84.50 | |||||||||||||
Fair value of investments in accociates representing 20% of its outstanding shares | $ 164,504 | $ 145,177 | € 7,769 | € 6,441 | ||||||||||
Heineken Company [member] | Actuarial assumption of retirement age [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Fair value of investment in joint ventures | € | € 6,152 | |||||||||||||
Heineken Holding N.V. [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Ownership Percentage | 12.26% | 12.26% | 12.26% | 12.26% | ||||||||||
Number of shares sold | shares | 7,700,000 | |||||||||||||
Share price | € / shares | € 78 | |||||||||||||
Jugos del Valle, S.A.P.I. de C.V. [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Capital contribution | $ 204 | |||||||||||||
Ownership Percentage | 28.80% | 28.80% | 26.30% | 26.30% | ||||||||||
UBI 3 Participacoes, LTDA [member] | ||||||||||||||
Disclosure of Investments in Subsidiaries Joint Ventures and Associates [Line items] | ||||||||||||||
Capitalization of borrowing costs | $ 73 | |||||||||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Equity Accounted Investees - _3
Equity Accounted Investees - Summarized Financial Information in Respect of Associate Accounted for Under Equity Method (Detail) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2019EUR (€) | Dec. 31, 2018MXN ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2016MXN ($) | |||
Disclosure of associates and joint ventures [line items] | ||||||||||||||
Total current assets | $ 172,579 | [1] | $ 177,607 | $ 9,151 | ||||||||||
Total non-current assets | 464,962 | [1] | 398,774 | 24,653 | ||||||||||
Total current liabilities | 136,534 | [1] | 101,464 | 7,240 | ||||||||||
Total non-current liabilities | 175,256 | [1] | 139,375 | 9,292 | ||||||||||
Total equity | 325,751 | [1] | 335,542 | $ 336,912 | 17,272 | $ 286,170 | ||||||||
Equity attributable to equity holders | 251,989 | [1] | 257,053 | $ 13,361 | ||||||||||
Net income | 28,048 | [1] | $ 1,488 | [1] | 29,713 | 33,481 | [3] | |||||||
Other comprehensive income | (12,966) | (688) | (13,293) | 10,833 | [3] | |||||||||
Total comprehensive income | 15,082 | 800 | 19,786 | 48,039 | [3] | |||||||||
Total comprehensive income attributable to equity holders | 12,285 | $ 651 | 14,776 | $ 46,001 | [3] | |||||||||
Heineken [member] | ||||||||||||||
Disclosure of associates and joint ventures [line items] | ||||||||||||||
Total current assets | 177,829 | 205,662 | € 8,419 | € 9,125 | ||||||||||
Total non-current assets | 804,443 | 744,350 | 38,085 | 33,026 | ||||||||||
Total current liabilities | 259,952 | 235,052 | 12,307 | 10,429 | ||||||||||
Total non-current liabilities | 356,671 | 360,928 | 16,886 | 16,014 | ||||||||||
Total equity | 365,648 | 354,032 | 17,311 | 15,708 | ||||||||||
Equity attributable to equity holders | 341,062 | 327,369 | € 16,147 | € 14,525 | ||||||||||
Total revenue and other income | 511,125 | € 24,064 | 517,528 | € 22,564 | ||||||||||
Total cost and expenses | 433,959 | 20,431 | 445,945 | 19,443 | ||||||||||
Net income | 50,424 | 2,374 | 48,280 | 2,105 | ||||||||||
Net income attributable to equity holders | 46,006 | 2,166 | 43,877 | 1,913 | ||||||||||
Other comprehensive income | 3,951 | 186 | (1,170) | (51) | ||||||||||
Total comprehensive income | 54,375 | 2,560 | 47,111 | 2,054 | ||||||||||
Total comprehensive income attributable to equity holders | $ 49,447 | € 2,328 | $ 42,615 | € 1,858 | ||||||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Equity Accounted Investees - Re
Equity Accounted Investees - Reconciliation from Equity of Associate to Investment of Company (Detail) € in Millions, $ in Millions | Apr. 30, 2010 | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) |
Disclosure of associates and joint ventures [line items] | |||||
Economic ownership percentage | 14.80% | 14.80% | |||
Goodwill | $ 0 | ||||
Heineken [member] | |||||
Disclosure of associates and joint ventures [line items] | |||||
Equity attributable to equity holders of Heineken | $ 341,062 | $ 323,608 | € 16,147 | € 14,358 | |
Economic ownership percentage | 20.00% | 14.76% | 14.76% | ||
Investment in Heineken investment exclusive of goodwill and other adjustments | $ 50,341 | $ 47,765 | 2,383 | 2,119 | |
Effects of fair value determined by purchase price allocation | 14,839 | 15,846 | 703 | 703 | |
Goodwill | 18,609 | 19,850 | 881 | 881 | |
Heineken investment | $ 83,789 | $ 83,461 | € 3,967 | € 3,703 |
Equity Accounted Investees - Sc
Equity Accounted Investees - Schedule of Companys Share of Other comprehensive Income from Equity Investees, Net of Taxes (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||
Items that may be reclassified to consolidated net income: | ||||||
Total | $ 1,058 | $ 56 | $ (360) | $ (2,013) | [2] | |
Items that may not be reclassified to consolidated net income in subsequent periods: | ||||||
Remeasurements of the net defined benefit liability | (1,090) | $ (58) | 551 | (7) | [2] | |
Equity investments [member] | ||||||
Items that may be reclassified to consolidated net income: | ||||||
Valuation of the effective portion of derivative financial instruments | (355) | 252 | ||||
Exchange differences on translating foreign operations | 1,058 | (5) | (2,265) | |||
Total | 1,058 | (360) | (2,013) | |||
Items that may not be reclassified to consolidated net income in subsequent periods: | ||||||
Remeasurements of the net defined benefit liability | $ (389) | $ 597 | $ 69 | |||
[1] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||
[2] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, Net (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | $ 108,602 | $ 116,712 | ||||
Ending balance | 114,513 | [1] | $ 6,072 | 108,602 | $ 116,712 | |
Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 172,939 | 186,944 | 163,443 | |||
Additions | 22,926 | 21,584 | 20,838 | |||
Additions from business acquisitions | 2,104 | 5,867 | 17,509 | |||
Changes in fair value of past acquisitions | 405 | |||||
Transfer (to)/from assets classified as held for sale | (459) | (127) | (100) | |||
Disposals | (5,793) | (7,196) | (5,236) | |||
Effects of changes in foreign exchange rates | (6,207) | (6,993) | (10,306) | |||
Changes in value on the recognition of inflation effects | 2,345 | 4,762 | 5,124 | |||
Venezuela deconsolidation effect | (4,328) | |||||
Ending balance | 188,260 | 172,939 | 186,944 | |||
Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (31,902) | |||||
Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (64,337) | (70,232) | (61,220) | |||
Depreciation for the year | (15,468) | (14,698) | (15,613) | |||
Transfer (to)/from assets classified as held for sale | 262 | 78 | 51 | |||
Disposals | 4,204 | 6,393 | 4,256 | |||
Effects of changes in foreign exchange rates | 2,795 | 1,681 | 3,007 | |||
Changes in value on the recognition of inflation effects | (1,203) | (3,769) | (2,299) | |||
Venezuela deconsolidation effect | 2,684 | |||||
Venezuela impairment | (1,098) | |||||
Ending balance | (73,747) | (64,337) | (70,232) | |||
Accumulated depreciation, amortisation and impairment [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | 16,210 | |||||
Land [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 9,568 | 13,589 | ||||
Ending balance | 9,682 | 9,568 | 13,589 | |||
Land [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 9,568 | 13,589 | 9,182 | |||
Additions | 309 | 334 | 465 | |||
Additions from business acquisitions | 146 | 25 | 5,115 | |||
Changes in fair value of past acquisitions | 142 | |||||
Transfer of completed projects in progress | (253) | 526 | 6 | |||
Disposals | (15) | (93) | (144) | |||
Effects of changes in foreign exchange rates | (329) | (401) | (1,018) | |||
Changes in value on the recognition of inflation effects | 114 | 242 | 527 | |||
Venezuela deconsolidation effect | (544) | |||||
Ending balance | 9,682 | 9,568 | 13,589 | |||
Land [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (4,654) | |||||
Buildings [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 18,902 | 19,921 | ||||
Ending balance | 19,896 | 18,902 | 19,921 | |||
Buildings [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 25,081 | 25,972 | 24,541 | |||
Additions | 1,134 | 877 | 1,474 | |||
Additions from business acquisitions | 806 | 451 | 1,634 | |||
Changes in fair value of past acquisitions | 227 | |||||
Transfer of completed projects in progress | 581 | 567 | 676 | |||
Disposals | (254) | (152) | (588) | |||
Effects of changes in foreign exchange rates | (1,147) | (1,079) | (1,964) | |||
Changes in value on the recognition of inflation effects | 366 | 816 | 1,016 | |||
Venezuela deconsolidation effect | (817) | |||||
Ending balance | 26,794 | 25,081 | 25,972 | |||
Buildings [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (2,371) | |||||
Buildings [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (6,179) | (6,051) | (5,553) | |||
Depreciation for the year | (937) | (786) | (887) | |||
Transfer (to)/from assets classified as held for sale | 44 | |||||
Disposals | 46 | 69 | 40 | |||
Effects of changes in foreign exchange rates | 264 | 112 | 518 | |||
Changes in value on the recognition of inflation effects | (92) | (223) | (437) | |||
Venezuela deconsolidation effect | 481 | |||||
Venezuela impairment | (257) | |||||
Ending balance | (6,898) | (6,179) | (6,051) | |||
Buildings [member] | Accumulated depreciation, amortisation and impairment [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | 700 | |||||
Machinery and equipment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 43,344 | 45,994 | ||||
Ending balance | 44,773 | 43,344 | 45,994 | |||
Machinery and equipment [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 76,204 | 80,302 | 70,367 | |||
Additions | 6,826 | 6,926 | 6,150 | |||
Additions from business acquisitions | 686 | 4,128 | 5,988 | |||
Changes in fair value of past acquisitions | 50 | |||||
Transfer of completed projects in progress | 3,694 | 2,193 | 3,073 | |||
Transfer (to)/from assets classified as held for sale | (410) | (127) | (42) | |||
Disposals | (3,195) | (4,623) | (3,147) | |||
Effects of changes in foreign exchange rates | (2,463) | (3,526) | (2,817) | |||
Changes in value on the recognition of inflation effects | 1,254 | 2,552 | 2,030 | |||
Venezuela deconsolidation effect | (1,300) | |||||
Ending balance | 82,646 | 76,204 | 80,302 | |||
Machinery and equipment [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (11,621) | |||||
Machinery and equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (32,860) | (34,308) | (30,263) | |||
Depreciation for the year | (7,862) | (7,437) | (6,928) | |||
Transfer (to)/from assets classified as held for sale | 262 | 78 | 7 | |||
Disposals | 1,967 | 4,970 | 3,125 | |||
Effects of changes in foreign exchange rates | 1,249 | 404 | 437 | |||
Changes in value on the recognition of inflation effects | (629) | (2,692) | (1,031) | |||
Venezuela deconsolidation effect | 1,186 | |||||
Venezuela impairment | (841) | |||||
Ending balance | (37,873) | (32,860) | (34,308) | |||
Machinery and equipment [member] | Accumulated depreciation, amortisation and impairment [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | 6,125 | |||||
Refrigeration equipment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 8,860 | 8,469 | ||||
Ending balance | 8,650 | 8,860 | 8,469 | |||
Refrigeration equipment [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 17,034 | 17,465 | 16,978 | |||
Additions | 636 | 644 | 389 | |||
Additions from business acquisitions | 537 | 482 | ||||
Changes in fair value of past acquisitions | (13) | |||||
Transfer of completed projects in progress | 1,396 | 1,711 | 1,967 | |||
Disposals | (1,032) | (614) | (800) | |||
Effects of changes in foreign exchange rates | (961) | (759) | (1,523) | |||
Changes in value on the recognition of inflation effects | 241 | 465 | 689 | |||
Venezuela deconsolidation effect | (717) | |||||
Ending balance | 17,301 | 17,034 | 17,465 | |||
Refrigeration equipment [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (2,415) | |||||
Refrigeration equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (8,174) | (8,996) | (8,723) | |||
Depreciation for the year | (1,862) | (1,752) | (2,186) | |||
Disposals | 966 | 579 | 683 | |||
Effects of changes in foreign exchange rates | 583 | 250 | 1,157 | |||
Changes in value on the recognition of inflation effects | (164) | (338) | (553) | |||
Venezuela deconsolidation effect | 626 | |||||
Ending balance | (8,651) | (8,174) | (8,996) | |||
Refrigeration equipment [member] | Accumulated depreciation, amortisation and impairment [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | 2,083 | |||||
Returnable bottles [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 6,043 | 8,109 | ||||
Ending balance | 6,061 | 6,043 | 8,109 | |||
Returnable bottles [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 14,749 | 21,532 | 15,943 | |||
Additions | 2,581 | 2,888 | 3,201 | |||
Additions from business acquisitions | 393 | 3,324 | ||||
Transfer of completed projects in progress | 359 | 3 | 558 | |||
Disposals | (1,056) | (312) | (193) | |||
Effects of changes in foreign exchange rates | (833) | (251) | (1,216) | |||
Changes in value on the recognition of inflation effects | 352 | 612 | (2) | |||
Venezuela deconsolidation effect | (83) | |||||
Ending balance | 16,152 | 14,749 | 21,532 | |||
Returnable bottles [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (10,116) | |||||
Returnable bottles [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (8,706) | (13,423) | (10,266) | |||
Depreciation for the year | (2,734) | (2,827) | (3,365) | |||
Disposals | 1,079 | 204 | 103 | |||
Effects of changes in foreign exchange rates | 572 | 631 | 93 | |||
Changes in value on the recognition of inflation effects | (302) | (516) | (44) | |||
Venezuela deconsolidation effect | 56 | |||||
Ending balance | (10,091) | (8,706) | (13,423) | |||
Returnable bottles [member] | Accumulated depreciation, amortisation and impairment [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | 7,225 | |||||
Investments in Fixed Assets in Progress [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 7,849 | 7,390 | ||||
Ending balance | 9,601 | 7,849 | 7,390 | |||
Investments in Fixed Assets in Progress [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 7,849 | 7,390 | 6,978 | |||
Additions | 8,421 | 6,482 | 8,878 | |||
Additions from business acquisitions | 290 | 821 | ||||
Transfer of completed projects in progress | (6,284) | (4,927) | (8,572) | |||
Disposals | (33) | (633) | ||||
Effects of changes in foreign exchange rates | (370) | (330) | (720) | |||
Changes in value on the recognition of inflation effects | 18 | 66 | 226 | |||
Venezuela deconsolidation effect | (221) | |||||
Ending balance | 9,601 | 7,849 | 7,390 | |||
Investments in Fixed Assets in Progress [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (489) | |||||
Leasehold improvements [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 13,629 | 12,710 | ||||
Ending balance | 15,553 | 13,629 | 12,710 | |||
Leasehold improvements [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 21,559 | 19,666 | 17,368 | |||
Additions | 2,907 | 3,322 | 57 | |||
Additions from business acquisitions | 466 | 2 | 145 | |||
Changes in fair value of past acquisitions | 7 | |||||
Transfer of completed projects in progress | 496 | (93) | 2,295 | |||
Disposals | (170) | (748) | (352) | |||
Effects of changes in foreign exchange rates | 26 | (354) | 153 | |||
Changes in value on the recognition of inflation effects | 0 | |||||
Ending balance | 25,291 | 21,559 | 19,666 | |||
Leasehold improvements [member] | Cost [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | (236) | |||||
Leasehold improvements [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (7,930) | (6,956) | (5,556) | |||
Depreciation for the year | (1,985) | (1,763) | (1,562) | |||
Disposals | 115 | 571 | 300 | |||
Effects of changes in foreign exchange rates | 64 | 141 | (138) | |||
Changes in value on the recognition of inflation effects | (2) | |||||
Ending balance | (9,738) | (7,930) | (6,956) | |||
Leasehold improvements [member] | Accumulated depreciation, amortisation and impairment [member] | Philippines [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Disposals | 77 | |||||
Other [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 407 | 530 | ||||
Ending balance | 297 | 407 | 530 | |||
Other [member] | Cost [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | 895 | 1,028 | 2,086 | |||
Additions | 112 | 111 | 224 | |||
Additions from business acquisitions | 41 | |||||
Changes in fair value of past acquisitions | (8) | |||||
Transfer of completed projects in progress | 11 | 20 | (3) | |||
Transfer (to)/from assets classified as held for sale | (49) | (58) | ||||
Disposals | (38) | (21) | (12) | |||
Effects of changes in foreign exchange rates | (130) | (293) | (1,201) | |||
Changes in value on the recognition of inflation effects | 0 | 9 | 638 | |||
Venezuela deconsolidation effect | (646) | |||||
Ending balance | 793 | 895 | 1,028 | |||
Other [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||||
Beginning balance | (488) | (498) | (859) | |||
Depreciation for the year | (88) | (133) | (685) | |||
Disposals | 31 | 5 | ||||
Effects of changes in foreign exchange rates | 63 | 143 | 940 | |||
Changes in value on the recognition of inflation effects | (14) | (234) | ||||
Venezuela deconsolidation effect | 335 | |||||
Ending balance | $ (496) | $ (488) | $ (498) | |||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Leases - Schedule of right-of-u
Leases - Schedule of right-of-use assets (Detail) - 12 months ended Dec. 31, 2019 $ in Millions, $ in Millions | MXN ($) | USD ($) | [2] | ||
Statement [Line Items] | |||||
Right-of-use assets | $ 50,220 | ||||
Additions | 7,502 | ||||
Additions from business combinations | 2,187 | ||||
Disposals | (832) | ||||
Remeasurements | 2,290 | ||||
Depreciation | (7,893) | ||||
Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies | (790) | ||||
Right-of-use assets | 52,684 | [1] | $ 2,793 | ||
Land and buildings [member] | |||||
Statement [Line Items] | |||||
Right-of-use assets | 49,112 | ||||
Additions | 7,406 | ||||
Additions from business combinations | 2,187 | ||||
Disposals | (827) | ||||
Remeasurements | 2,299 | ||||
Depreciation | (7,492) | ||||
Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies | (759) | ||||
Right-of-use assets | 51,926 | ||||
Other property, plant and equipment [member] | |||||
Statement [Line Items] | |||||
Right-of-use assets | [3] | 1,108 | |||
Additions | [3] | 96 | |||
Disposals | [3] | (5) | |||
Remeasurements | [3] | (9) | |||
Depreciation | [3] | (401) | |||
Effects of changes in foreign exchange rates and restatement effects associated with hyperinflationary economies | [3] | (31) | |||
Right-of-use assets | [3] | $ 758 | |||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||
[3] | Other assets mailny include transportation equipment and servers. |
Leases - Schedule of lease liab
Leases - Schedule of lease liability (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Jan. 01, 2019MXN ($) | |
Disclosure Of Leases Line Items [Line Items] | |||||
Total undiscounted lease liabilities | $ 86,854 | ||||
Lease liabilities included in the statement of financial position at December 31 | 54,679 | $ 50,220 | |||
Current | 7,387 | [1] | $ 392 | ||
Non-Current | 47,292 | [1] | $ 2,508 | ||
0-1 years [member] | |||||
Disclosure Of Leases Line Items [Line Items] | |||||
Total undiscounted lease liabilities | 10,655 | ||||
1-5 years [Member] | |||||
Disclosure Of Leases Line Items [Line Items] | |||||
Total undiscounted lease liabilities | 40,262 | ||||
Later than five years and not later than ten years [member] | |||||
Disclosure Of Leases Line Items [Line Items] | |||||
Total undiscounted lease liabilities | 24,053 | ||||
Later than 10 years [member] | |||||
Disclosure Of Leases Line Items [Line Items] | |||||
Total undiscounted lease liabilities | $ 11,884 | ||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Leases - Additional information
Leases - Additional information (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Interest expense on lease liabilities | $ 4,774 | ||
Expense relating to leases of low-value assets for which recognition exemption has been used | 430 | ||
Cash Flows | 16,869 | $ 1,027 | $ 4,531 |
Financial leases [member] | |||
Statement [Line Items] | |||
Cash Flows | $ 8,848 | $ 26 | $ 8 |
Retail Stores [Member] | |||
Statement [Line Items] | |||
Operating Lease Term | 15 years | ||
Office Space [Member] | Top of range [member] | |||
Statement [Line Items] | |||
Operating Lease Term | 5 years | ||
Office Space [Member] | Bottom of range [member] | |||
Statement [Line Items] | |||
Operating Lease Term | 3 years | ||
IT Equipment [Member] | Top of range [member] | |||
Statement [Line Items] | |||
Operating Lease Term | 1 year | ||
IT Equipment [Member] | Bottom of range [member] | |||
Statement [Line Items] | |||
Operating Lease Term | 3 years |
Intangible Assets - Summary of
Intangible Assets - Summary of Reconciliation of Changes in Intangible Assets and Goodwill (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | $ 145,610 | $ 154,093 | ||||
Ending balance | 146,562 | [1] | $ 7,771 | 145,610 | $ 154,093 | |
Right to produce and distribute trademark products [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 87,617 | 91,902 | ||||
Ending balance | 81,255 | 87,617 | 91,902 | |||
Goodwill [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 40,530 | 43,449 | ||||
Ending balance | 47,906 | 40,530 | 43,449 | |||
Trademark rights [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 6,699 | 7,185 | ||||
Ending balance | 6,600 | 6,699 | 7,185 | |||
Other indefinite lived intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 1,977 | 2,257 | ||||
Ending balance | 2,160 | 1,977 | 2,257 | |||
Total unamortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 136,823 | 144,793 | ||||
Ending balance | 137,921 | 136,823 | 144,793 | |||
Technology costs and management systems [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 4,270 | 3,841 | ||||
Ending balance | 4,356 | 4,270 | 3,841 | |||
Systems in Development [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 777 | 1,291 | ||||
Ending balance | 675 | 777 | 1,291 | |||
Alcohol licenses [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 1,224 | 1,180 | ||||
Ending balance | 1,192 | 1,224 | 1,180 | |||
Other [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 2,516 | 2,988 | ||||
Ending balance | 2,418 | 2,516 | 2,988 | |||
Total amortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 8,787 | 9,300 | ||||
Ending balance | 8,641 | 8,787 | 9,300 | |||
Cost [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 151,348 | 158,667 | 156,247 | |||
Additions | 2,198 | 1,793 | 3,344 | |||
Acquisitions from business combinations (see Note 4) | 7,782 | 5,997 | 4,375 | |||
Changes in fair value of past acquisitions | (22) | 272 | (306) | |||
Internal development | 41 | |||||
disposals | (758) | (191) | 110 | |||
Effect of movements in exchange rates | (7,111) | (10,810) | (3,667) | |||
Changes in value on the recognition of inflation effects | (6) | 57 | (552) | |||
Venezuela deconsolidation effect | (884) | |||||
Ending balance | 153,431 | 151,348 | 158,667 | |||
Cost [member] | Right to produce and distribute trademark products [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 87,617 | 91,902 | 85,338 | |||
Additions | 1,288 | |||||
Acquisitions from business combinations (see Note 4) | 4,602 | 4,144 | ||||
Changes in fair value of past acquisitions | (2,887) | 5,167 | ||||
Effect of movements in exchange rates | (3,475) | (5,005) | (2,563) | |||
Changes in value on the recognition of inflation effects | (727) | |||||
Venezuela deconsolidation effect | (745) | |||||
Ending balance | 81,255 | 87,617 | 91,902 | |||
Cost [member] | Goodwill [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 40,530 | 43,449 | 51,857 | |||
Additions | 75 | |||||
Acquisitions from business combinations (see Note 4) | 6,542 | 842 | 140 | |||
Changes in fair value of past acquisitions | 2,903 | 272 | (7,022) | |||
Effect of movements in exchange rates | (2,069) | (4,108) | (1,526) | |||
Ending balance | 47,906 | 40,530 | 43,449 | |||
Cost [member] | Trademark rights [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 6,699 | 7,185 | 6,225 | |||
Acquisitions from business combinations (see Note 4) | 469 | 170 | 5 | |||
Changes in fair value of past acquisitions | 836 | |||||
disposals | (48) | |||||
Effect of movements in exchange rates | (520) | (656) | 119 | |||
Ending balance | 6,600 | 6,699 | 7,185 | |||
Cost [member] | Other indefinite lived intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 1,977 | 2,257 | 2,151 | |||
Additions | 164 | 71 | 6 | |||
Changes in fair value of past acquisitions | 153 | 9 | ||||
disposals | (2) | |||||
Effect of movements in exchange rates | (134) | (349) | 91 | |||
Ending balance | 2,160 | 1,977 | 2,257 | |||
Cost [member] | Total unamortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 136,823 | 144,793 | 145,571 | |||
Additions | 164 | 146 | 1,294 | |||
Acquisitions from business combinations (see Note 4) | 7,011 | 5,614 | 4,289 | |||
Changes in fair value of past acquisitions | 169 | 272 | (1,010) | |||
disposals | (48) | (2) | ||||
Effect of movements in exchange rates | (6,198) | (10,118) | (3,879) | |||
Changes in value on the recognition of inflation effects | (727) | |||||
Venezuela deconsolidation effect | (745) | |||||
Ending balance | 137,921 | 136,823 | 144,793 | |||
Cost [member] | Technology costs and management systems [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 8,707 | 7,103 | 6,124 | |||
Additions | 824 | 1,051 | 464 | |||
Acquisitions from business combinations (see Note 4) | 759 | 35 | 6 | |||
Changes in fair value of past acquisitions | (6) | (188) | ||||
Transfer of completed development systems | 412 | 904 | 412 | |||
disposals | (580) | (43) | 110 | |||
Effect of movements in exchange rates | (553) | (343) | 175 | |||
Changes in value on the recognition of inflation effects | 0 | |||||
Ending balance | 9,563 | 8,707 | 7,103 | |||
Cost [member] | Systems in Development [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 777 | 1,291 | 798 | |||
Additions | 334 | 371 | 920 | |||
Acquisitions from business combinations (see Note 4) | 57 | |||||
Transfer of completed development systems | (413) | (904) | (412) | |||
Effect of movements in exchange rates | (23) | (38) | (15) | |||
Ending balance | 675 | 777 | 1,291 | |||
Cost [member] | Alcohol licenses [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 1,768 | 1,637 | 1,416 | |||
Additions | 191 | 131 | 221 | |||
disposals | (130) | |||||
Ending balance | 1,829 | 1,768 | 1,637 | |||
Cost [member] | Other [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 3,273 | 3,843 | 2,338 | |||
Additions | 685 | 94 | 445 | |||
Acquisitions from business combinations (see Note 4) | 12 | 291 | 80 | |||
Changes in fair value of past acquisitions | (185) | 892 | ||||
Internal development | 41 | |||||
Transfer of completed development systems | 1 | |||||
disposals | (146) | |||||
Effect of movements in exchange rates | (337) | (311) | 52 | |||
Changes in value on the recognition of inflation effects | (6) | 57 | 175 | |||
Venezuela deconsolidation effect | (139) | |||||
Ending balance | 3,443 | 3,273 | 3,843 | |||
Cost [member] | Total amortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | 14,525 | 13,874 | 10,676 | |||
Additions | 2,034 | 1,647 | 2,050 | |||
Acquisitions from business combinations (see Note 4) | 771 | 383 | 86 | |||
Changes in fair value of past acquisitions | (191) | 704 | ||||
Internal development | 41 | |||||
disposals | (710) | (189) | 110 | |||
Effect of movements in exchange rates | (913) | (692) | 212 | |||
Changes in value on the recognition of inflation effects | (6) | 57 | 175 | |||
Venezuela deconsolidation effect | (139) | |||||
Ending balance | 15,510 | 14,525 | 13,874 | |||
Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | (5,738) | (4,574) | (2,979) | |||
Amortization expense | (1,811) | (1,913) | (1,259) | |||
Impairment losses | (110) | |||||
disposals | 475 | 191 | ||||
Effect of movements in exchange rates | 233 | 235 | (106) | |||
Changes in value on the recognition of inflation effects | (28) | (52) | ||||
Venezuela deconsolidation effect | (120) | |||||
Ending balance | (6,869) | (5,738) | (4,574) | |||
Accumulated depreciation, amortisation and impairment [member] | Technology costs and management systems [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | (4,437) | (3,262) | (1,937) | |||
Amortization expense | (1,351) | (1,453) | (961) | |||
disposals | 445 | 93 | ||||
Effect of movements in exchange rates | 165 | 236 | (254) | |||
Changes in value on the recognition of inflation effects | (29) | (51) | ||||
Ending balance | (5,207) | (4,437) | (3,262) | |||
Accumulated depreciation, amortisation and impairment [member] | Alcohol licenses [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | (544) | (457) | (376) | |||
Amortization expense | (123) | (87) | (81) | |||
disposals | 30 | |||||
Ending balance | (637) | (544) | (457) | |||
Accumulated depreciation, amortisation and impairment [member] | Other [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | (757) | (855) | (666) | |||
Amortization expense | (337) | (373) | (217) | |||
disposals | 98 | |||||
Effect of movements in exchange rates | 68 | (1) | 148 | |||
Changes in value on the recognition of inflation effects | 1 | (1) | ||||
Venezuela deconsolidation effect | (120) | |||||
Ending balance | (1,025) | (757) | (855) | |||
Accumulated depreciation, amortisation and impairment [member] | Total amortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
Beginning balance | (5,738) | (4,574) | (2,979) | |||
Amortization expense | (1,811) | (1,913) | (1,259) | |||
disposals | 475 | 191 | ||||
Effect of movements in exchange rates | 233 | 235 | (106) | |||
Changes in value on the recognition of inflation effects | (28) | (52) | ||||
Venezuela deconsolidation effect | (120) | |||||
Ending balance | $ (6,869) | (5,738) | $ (4,574) | |||
Philippines [member] | Cost [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | (4,478) | |||||
Philippines [member] | Cost [member] | Right to produce and distribute trademark products [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | (3,882) | |||||
Philippines [member] | Cost [member] | Total unamortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | (3,882) | |||||
Philippines [member] | Cost [member] | Other [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | (596) | |||||
Philippines [member] | Cost [member] | Total amortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | (596) | |||||
Philippines [member] | Accumulated depreciation, amortisation and impairment [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | 375 | |||||
Philippines [member] | Accumulated depreciation, amortisation and impairment [member] | Other [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | 375 | |||||
Philippines [member] | Accumulated depreciation, amortisation and impairment [member] | Total amortized intangible assets [member] | ||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||||
disposals | $ 375 | |||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2019MXN ($)BasisPoint | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Mar. 28, 2017MXN ($) | ||
Disclosure of detailed information about intangible assets [line items] | |||||
Borrowing costs capitalized | $ 333,000,000 | ||||
Impairment recognized | [1] | $ 1,018,000,000 | $ 432,000,000 | $ 2,063,000,000 | |
Risk premium basis points | BasisPoint | 100 | ||||
Total carrying amount of goodwill | $ 0 | ||||
Impairment charge on goodwill | 0 | ||||
Vonpar [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Cash acquired | $ 1,664,000,000 | ||||
FEMSA Comercio - Health Division [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Total carrying amount of goodwill | $ 4,743,000,000 | ||||
Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Risk premium basis points | BasisPoint | 100 | ||||
Venezuela [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Impairment recognized | $ 948,000,000 | 432,000,000 | 2,053,000,000 | ||
Venezuela [member] | Coca-Cola FEMSA [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Impairment recognized | 745,000,000 | ||||
Intangible assets and goodwill [member] | |||||
Disclosure of detailed information about intangible assets [line items] | |||||
Borrowing costs capitalized | $ 0 | $ 0 | $ 0 | ||
[1] | Includes impairment loss related to Compañía Panameña de Bebibas, S.A.P.I. de C.V., for an amount of Ps. 948 and Ps. 432 million in 2019 and 2018, respectively (see Note 10), and impairment loss in Venezuela of Ps. 2,053 in 2017 (see Note 3.3). |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Allocation for Amortization Expense (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Allocation Of Amortisation Expenses [abstract] | |||
Cost of goods sold | $ 317 | $ 399 | $ 132 |
Administrative expenses | 953 | 858 | 627 |
Selling expenses | 542 | 656 | 500 |
Total | $ 1,812 | $ 1,913 | $ 1,259 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Average Remaining Period for Company's Intangible Assets Subject to Amortization (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | Technology costs and management systems [member] | |
Disclosure of intangible assets material to entity [line items] | |
Average Remaining Period Intangible Assets Subject to Amortization | 3 years |
Bottom of range [member] | Alcohol licenses [member] | |
Disclosure of intangible assets material to entity [line items] | |
Average Remaining Period Intangible Assets Subject to Amortization | 12 years |
Top of range [member] | Technology costs and management systems [member] | |
Disclosure of intangible assets material to entity [line items] | |
Average Remaining Period Intangible Assets Subject to Amortization | 10 years |
Top of range [member] | Alcohol licenses [member] | |
Disclosure of intangible assets material to entity [line items] | |
Average Remaining Period Intangible Assets Subject to Amortization | 15 years |
Intangible Assets - Disclosure
Intangible Assets - Disclosure of Aggregate Carrying Amounts of Goodwill and Distribution Rights Allocated to Each CGU (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | $ 146,562 | [1] | $ 7,771 | $ 145,610 | $ 154,093 | |
Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 107,088 | 111,347 | ||||
Mexico [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 56,352 | 56,352 | ||||
Guatemala [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 1,679 | 1,853 | ||||
Nicaragua [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 420 | 460 | ||||
Costa Rica [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 1,442 | 1,417 | ||||
Panama [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 1,131 | 1,182 | ||||
Colombia [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 4,367 | 4,600 | ||||
Brazil [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 38,765 | 42,153 | ||||
Argentina [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | 306 | 327 | ||||
Uruguay [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||||||
Disclosure of information for cash-generating units [line items] | ||||||
Goodwill and distribution rights allocated | $ 2,626 | $ 3,003 | ||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Intangible Assets - Details of
Intangible Assets - Details of Key Assumptions by CGU for Impairment Test (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Mexico [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 7.30% | 7.40% |
Post-tax WACC | 5.20% | 5.30% |
Colombia [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 8.90% | 7.80% |
Post-tax WACC | 6.20% | 5.20% |
Costa Rica [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 13.80% | 13.90% |
Post-tax WACC | 9.70% | 9.20% |
Guatemala [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 9.10% | 9.40% |
Post-tax WACC | 7.10% | 7.50% |
Nicaragua [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 21.10% | 21.20% |
Post-tax WACC | 12.40% | 11.00% |
Panama [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 8.50% | 9.20% |
Post-tax WACC | 6.60% | 7.00% |
Argentina [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 21.60% | 19.60% |
Post-tax WACC | 14.80% | 11.30% |
Brazil [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 9.30% | 10.70% |
Post-tax WACC | 5.60% | 6.60% |
South America [member] | FEMSA Comercio - Health Division [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 9.40% | 9.00% |
Post-tax WACC | 6.60% | 6.30% |
Expected Annual Long- Term | 3.00% | 3.00% |
Expected Volume Growth Rates | 0.30% | 0.40% |
Uruguay [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax WACC | 9.40% | |
Post-tax WACC | 6.80% | |
2020-2029 [member] | Mexico [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 3.50% | |
Expected Volume Growth Rates | 0.70% | |
2020-2029 [member] | Colombia [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 3.10% | |
Expected Volume Growth Rates | 4.00% | |
2020-2029 [member] | Costa Rica [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 2.20% | |
Expected Volume Growth Rates | 2.10% | |
2020-2029 [member] | Guatemala [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 4.00% | |
Expected Volume Growth Rates | 8.50% | |
2020-2029 [member] | Nicaragua [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 4.40% | |
Expected Volume Growth Rates | 3.00% | |
2020-2029 [member] | Panama [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 2.00% | |
Expected Volume Growth Rates | 5.40% | |
2020-2029 [member] | Argentina [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 39.20% | |
Expected Volume Growth Rates | 3.70% | |
2020-2029 [member] | Brazil [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 3.60% | |
Expected Volume Growth Rates | 2.00% | |
2020-2029 [member] | Uruguay [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 7.40% | |
Expected Volume Growth Rates | 2.00% | |
2019 - 2028 [member] | Mexico [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 4.00% | |
Expected Volume Growth Rates | 1.40% | |
2019 - 2028 [member] | Colombia [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 3.10% | |
Expected Volume Growth Rates | 4.00% | |
2019 - 2028 [member] | Costa Rica [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 4.00% | |
Expected Volume Growth Rates | 1.60% | |
2019 - 2028 [member] | Guatemala [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 3.20% | |
Expected Volume Growth Rates | 7.30% | |
2019 - 2028 [member] | Nicaragua [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 6.20% | |
Expected Volume Growth Rates | 3.80% | |
2019 - 2028 [member] | Panama [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 2.40% | |
Expected Volume Growth Rates | 3.00% | |
2019 - 2028 [member] | Argentina [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 21.90% | |
Expected Volume Growth Rates | 2.70% | |
2019 - 2028 [member] | Brazil [member] | Cash Generating Units [member] | Coca-Cola FEMSA [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Expected Annual Long- Term | 3.80% | |
Expected Volume Growth Rates | 1.70% |
Intangible Assets - Detailed In
Intangible Assets - Detailed Information About Sensitivity to Changes in Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.20% |
Change in Sales Growth CAGR | (0.50%) |
Effect on Valuation | Passes by 1.34x |
Cash Generating Units [member] | Mexico [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.40% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 4.9x |
Cash Generating Units [member] | Colombia [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.30% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 4.7x |
Cash Generating Units [member] | Costa Rica [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.80% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 3.4x |
Cash Generating Units [member] | Guatemala [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.40% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 38.5x |
Cash Generating Units [member] | Nicaragua [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 1.40% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 1.1x |
Cash Generating Units [member] | Panama [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.20% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 9.7x |
Cash Generating Units [member] | Argentina [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 1.90% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 13.9x |
Cash Generating Units [member] | Brazil [member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.50% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 1.6x |
Cash Generating Units [member] | Uruguay [Member] | Coca-Cola FEMSA [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Change in WACC | 0.30% |
Change in Sales Growth CAGR | (1.00%) |
Effect on Valuation | Passes by 3x |
Other Assets and Other Financ_3
Other Assets and Other Financial Assets - Disclosure of Other Non-Current Assets (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [4] | Dec. 31, 2018MXN ($) | ||
Miscellaneous assets [abstract] | ||||||
Agreement with customers | $ 953 | $ 897 | ||||
Long term prepaid advertising expenses | 341 | 388 | ||||
Guarantee deposits | [1] | 2,407 | 2,910 | |||
Prepaid bonuses | 226 | 248 | ||||
Advances to acquire property, plant and equipment | 203 | 233 | ||||
Recoverable taxes | 2,111 | 1,289 | ||||
Indemnifiable assets from business combinations | [2] | 2,948 | 3,336 | |||
Recoverable taxes from business combinations | 395 | |||||
Others | 1,343 | 621 | ||||
Total other assets | $ 10,532 | [3] | $ 558 | $ 10,317 | ||
[1] | As it is customary in Brazil, the Company is required to guarantee tax, legal and labor contingencies by guarantee deposits including those related to business acquisitions. See Note 26.7. | |||||
[2] | Corresponds to indemnifiable assets that are warranted by former Vonpar owners as per the share purchase agreement. See Note 4.1.3 | |||||
[3] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[4] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Other Assets and Other Financ_4
Other Assets and Other Financial Assets - Disclosure of Other Non-Current Financial Assets (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | |
Categories of financial assets [abstract] | |||||
Non-current accounts receivable | $ 938 | $ 724 | |||
Derivative financial instruments (see Note 21) | 8,260 | 10,752 | |||
Investments | 11,810 | ||||
Others | 172 | 101 | |||
Other investments in equity instruments | 13,310 | ||||
Total other financial assets | $ 22,680 | [1] | $ 1,203 | $ 23,387 | |
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Other Assets and Other Financ_5
Other Assets and Other Financial Assets - Additional Information (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Other Assets And Other Financial Assets [line items] | ||
Non-current accounts receivables | $ 938 | $ 724 |
Fair value [member] | ||
Disclosure Of Other Assets And Other Financial Assets [line items] | ||
Non-current accounts receivables | $ 724 | $ 740 |
Balances and Transactions wit_3
Balances and Transactions with Related Parties and Affiliated Companies - Summary of Balances and Transactions with Related Parties and Affiliated Companies (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Balances | ||
Account receivable with related party transaction | $ 802 | $ 1,173 |
Other receivables | 390 | 565 |
Other payables | 2,003 | 1,402 |
The Coca-Cola company [member] | Bank loans and notes payables and accounts payable [Member] | ||
Balances | ||
Account payables with related party transactions | 4,417 | 3,893 |
BBVA Bancomer, S.A. de C.V. [member] | Bank loans and notes payables [member] | ||
Balances | ||
Account payables with related party transactions | 1,696 | 4,093 |
BBVA Bancomer, S.A. de C.V. [member] | Cash and cash equivalent [member] | ||
Balances | ||
Assets balance with related party transaction | 6,798 | 11,509 |
JP Morgan Chase & Co. [member] | Cash and cash equivalent [member] | ||
Balances | ||
Assets balance with related party transaction | 27 | |
Grupo Industrial Saltillo S.A.B. de C.V [member] | Other financial asset [member] | ||
Balances | ||
Assets balance with related party transaction | 169 | |
Heineken [member] | Accounts payable [member] | ||
Balances | ||
Account payables with related party transactions | 4,308 | 4,753 |
Heineken [member] | Accounts receivable and other financial assets [Member] | ||
Balances | ||
Assets balance with related party transaction | 2,915 | 2,572 |
Grupo Financiero Scotiabank Inverlat SA [Member] | ||
Balances | ||
Assets balance with related party transaction | 510 | 503 |
Account payables with related party transactions | $ 104 | $ 170 |
Balances and Transactions wit_4
Balances and Transactions with Related Parties and Affiliated Companies - Additional Information (Detail) - MXN ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Expense resulting from the uncollectibility of balances due from related parties | $ 0 | $ 0 | $ 0 |
Balances and Transactions wit_5
Balances and Transactions with Related Parties and Affiliated Companies - Summary of Transaction with Related Parties (Detail) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Expenses: | ||||
Other expenses with related parties | $ 319 | $ 423 | $ 742 | |
Other revenue [member] | ||||
Income: | ||||
Income from related party transaction | 404 | 242 | 243 | |
The Coca-Cola company [member] | Concentrate [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [1] | 34,063 | 32,379 | 30,758 |
The Coca-Cola company [member] | Advertising [member] | ||||
Expenses: | ||||
Services received to related party transaction | [1],[2] | 1,756 | 2,193 | 1,392 |
Heineken [member] | ||||
Income: | ||||
Income from related party transaction | [3] | 3,380 | 3,265 | 3,570 |
Heineken [member] | Beer [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [3],[4] | 25,215 | 27,999 | 24,942 |
Grupo Industrial Saltillo, S.A. de C.V. [member] | Logistic services [member] | ||||
Income: | ||||
Income from related party transaction | [5] | 255 | 457 | |
Jugos del Valle, S.A.P.I. de C.V. [member] | Logistic services [member] | ||||
Income: | ||||
Income from related party transaction | [3] | 553 | 369 | 587 |
Jugos del Valle, S.A.P.I. de C.V. [member] | Juices [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [3] | 4,477 | 4,537 | 3,905 |
Caffenio [member] | Coffee [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [6] | 2,397 | ||
Grupo Industrial Bimbo, S.A.B. de C. V. [member] | Baked goods and snacks [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [5] | 6,194 | 5,763 | 4,802 |
Promotora Industrial Azucarera, S.A. de C.V. [member] | Sugar [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [3] | 2,728 | 2,604 | 1,885 |
BBVA Bancomer, S.A. de C.V. [member] | ||||
Expenses: | ||||
Interest expense and fee paid to related party transaction | [5] | 144 | 230 | 53 |
BBVA Bancomer, S.A. de C.V. [member] | Interest Revenue [Member] | ||||
Expenses: | ||||
Interest expense and fee paid to related party transaction | [5] | 1,456 | 1,469 | 1,002 |
Beta San Miguel [member] | Sugar [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [5] | 655 | 651 | 1,827 |
Promotora Mexicana de Embotelladores, S.A. de C.V. [member] | Sugar, cans and aluminum lids [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [5] | 739 | 839 | |
Industria Envasadora De Queretaro SA De CVIEQSA [member] | Canned products [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [3] | 682 | 596 | 804 |
Leao Alimentos e Bebidas, LTDA [member] | Inventories [member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [3] | 1,867 | 2,654 | 4,010 |
Grupo Televisa, S.A.B. de C.V. [member] | Advertising [member] | ||||
Expenses: | ||||
Services received to related party transaction | [5] | 115 | 113 | 107 |
Grupo Nacional Provincial, S.A.B. [Member] | ||||
Expenses: | ||||
Insurance premiums for policies with Grupo Nacional Provincial, S.A.B. (3) | [5] | 12 | 32 | |
Fundacion FEMSA, A.C. [member] | ||||
Expenses: | ||||
Donations to related party transactions | [5] | 195 | 232 | 23 |
Difusion y Fomento Cultural, A.C. [member] | ||||
Expenses: | ||||
Donations to related party transactions | [5] | 61 | 63 | 44 |
Donations to ITESM [member] | ||||
Expenses: | ||||
Donations to related party transactions | [5] | 215 | 192 | $ 108 |
Grupo Financiero Scotiabank Inverlat SA [Member] | Interest Revenue [Member] | ||||
Expenses: | ||||
Interest expense and fee paid to related party transaction | [5] | 447 | ||
AdeS Alimentos y Bebidas [Member] | ||||
Expenses: | ||||
Purchase of goods from related party transaction | [3] | $ 497 | $ 592 | |
[1] | Non-controlling interest. | |||
[2] | Net of the contributions from The Coca-Cola Company of Ps. 2,274, Ps. 3,542 and Ps. 3,436, for the years ended in 2019, 2018 and 2017, respectively. | |||
[3] | Associates. | |||
[4] | Favorable resolution of Arbitration in Brazil on October 31, 2019, the arbitration tribunal in charge of the arbitration proceeding between Coca-Cola FEMSA and Cervejarias Kaiser Brasil, S.A., a subsidiary of Heineken, N.V. (“Kaiser”), issued an award confirming that the distribution agreement pursuant to which Coca-Cola FEMSA distribute Kaiser’s portfolio in the country, including Heineken beer, shall continue in full force and effect until and including March 19, 2022. | |||
[5] | Members of the board of directors in FEMSA participate in board of directors of this entity. | |||
[6] | On May 22, 2018 the Company completed the acquisition of an additional 10% of non-controlling interest of Café del Pacífico S.A.P.I. de C.V. (Caffenio). |
Balances and Transactions wit_6
Balances and Transactions with Related Parties and Affiliated Companies - Summary of Transaction with Related Parties (Parenthetical) (Detail) - MXN ($) $ in Millions | 1 Months Ended | |||
May 22, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cafe Del Pacifico SAPI De CV Caffenio [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Non-controlling interest rate | 10.00% | |||
The Coca-Cola company [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Contributions | $ 2,274 | $ 3,542 | $ 3,436 |
Balances and Transactions wit_7
Balances and Transactions with Related Parties and Affiliated Companies - Commitments with Related Parties (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Commitment | Supply |
Conditions | st</div>, 2010 to Jun 30, 2020." id="sjs-B5">Supply of all beer products in Mexico’s OXXO stores. The contract may be renewed for five years or additional periods. At the end of the contract OXXO will not hold exclusive contract with another supplier of beer for the next 3 years. Commitment term, Jan 1<div style="font-size: 7.4pt; vertical-align: top; line-height: 5.476pt;;vertical-align: super;font-size: smaller;display:inline;">st</div>, 2010 to Jun 30, 2020. |
Balances and Transactions wit_8
Balances and Transactions with Related Parties and Affiliated Companies - Commitments with Related Parties (Parenthetical) (Detail) - Heineken [member] | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | |
Renewal option for supply contract | 5 years |
Restriction period from holding exclusive contract with another supplier at the end of the contract term | 3 years |
Balances and Transactions wit_9
Balances and Transactions with Related Parties and Affiliated Companies - Benefits and Aggregate Compensation Paid to Executive Officers and Senior Management (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits paid | $ 2,163 | $ 1,885 | $ 1,699 |
Postemployment benefits | 48 | 37 | 48 |
Termination benefits | 411 | 88 | 74 |
Share based payments | $ 610 | $ 401 | $ 351 |
Balances and Transactions in _3
Balances and Transactions in Foreign Currencies - Summary of Assets, Liabilities Foreign Currencies (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Balances and Transactions in Foreign Currencies [line items] | ||
Short-Term Assets | $ 59,648 | $ 70,076 |
Long-Term Assets | 2,045 | 13,631 |
Short-Term Liabilities | 6,018 | 5,066 |
Long-Term Liabilities | 78,198 | 85,651 |
U.S. dollars [member] | ||
Disclosure of Balances and Transactions in Foreign Currencies [line items] | ||
Short-Term Assets | 58,151 | 69,281 |
Long-Term Assets | 452 | 12,026 |
Short-Term Liabilities | 5,597 | 4,625 |
Long-Term Liabilities | 57,075 | 63,112 |
Euro [member] | ||
Disclosure of Balances and Transactions in Foreign Currencies [line items] | ||
Short-Term Assets | 877 | 749 |
Short-Term Liabilities | 363 | 417 |
Long-Term Liabilities | 21,122 | 22,538 |
Other currencies [member] | ||
Disclosure of Balances and Transactions in Foreign Currencies [line items] | ||
Short-Term Assets | 620 | 46 |
Long-Term Assets | 1,593 | 1,605 |
Short-Term Liabilities | 58 | 24 |
Long-Term Liabilities | $ 1 | $ 1 |
Balances and Transactions in _4
Balances and Transactions in Foreign Currencies - Summary of Transactions in Foreign Currencies (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Balances and Transactions in Foreign Currencies [line items] | |||
Revenues | $ 5,488 | $ 7,228 | $ 1,909 |
Other Operating Revenues | 6,594 | 139 | 1,679 |
Purchases of Raw Materials | 18,479 | 21,523 | 16,407 |
Interest Expense | 2,580 | 2,743 | 2,986 |
Consulting Fees | 753 | 774 | 302 |
Asset Acquisitions | 3,393 | 2,166 | 276 |
Other | 4,482 | 2,677 | 4,072 |
U.S. dollars [member] | |||
Disclosure of Balances and Transactions in Foreign Currencies [line items] | |||
Revenues | 5,487 | 7,228 | 1,909 |
Other Operating Revenues | 5,612 | 130 | 1,677 |
Purchases of Raw Materials | 17,941 | 21,460 | 16,320 |
Interest Expense | 2,183 | 2,309 | 2,534 |
Consulting Fees | 718 | 752 | 267 |
Asset Acquisitions | 3,388 | 2,166 | 272 |
Other | 4,348 | 2,676 | 4,052 |
Euro [member] | |||
Disclosure of Balances and Transactions in Foreign Currencies [line items] | |||
Other Operating Revenues | 2 | ||
Purchases of Raw Materials | 538 | 63 | 87 |
Interest Expense | 397 | 434 | 452 |
Consulting Fees | 33 | 20 | 23 |
Asset Acquisitions | 5 | 4 | |
Other | 2 | 1 | 20 |
Other currencies [member] | |||
Disclosure of Balances and Transactions in Foreign Currencies [line items] | |||
Revenues | 1 | ||
Other Operating Revenues | 982 | 9 | |
Consulting Fees | 2 | $ 2 | $ 12 |
Other | $ 132 |
Balances and Transactions in _5
Balances and Transactions in Foreign Currencies - Summary of Exchange Rates (Detail) - $ / $ | Apr. 24, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of exchange rates [Line Items] | |||
Closing foreign exchange rate | 18.8600 | ||
U.S. dollars [member] | |||
Disclosure of exchange rates [Line Items] | |||
Closing foreign exchange rate | 24.5883 | 18.8452 | 19.6829 |
Euro [member] | |||
Disclosure of exchange rates [Line Items] | |||
Closing foreign exchange rate | 26.5350 | 21.1223 | 22.5383 |
Employee Benefits - Summary of
Employee Benefits - Summary of Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial: | |||
Discount rate used to calculate the defined benefit obligation | 7.50% | 9.40% | 7.60% |
Salary increase | 4.50% | 4.60% | 4.50% |
Future pension increases | 3.50% | 3.60% | 3.50% |
Healthcare cost increase rate | 5.10% | 5.10% | 5.10% |
Biometric: | |||
Mortality | EMSSA 2009 | EMSSA 2009 | EMSSA 2009 |
Disability | IMSS-97 | IMSS-97 | IMSS-97 |
Normal retirement age | 60 years | 60 years | 60 years |
Employee turnover table | BMAR 2007 | BMAR 2007 | BMAR 2007 |
Employee Benefits - Summary o_2
Employee Benefits - Summary of Defined Benefit Plan Expected Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2019MXN ($) |
Disclosure of defined benefit plans [line items] | |
2020 | $ 916 |
2021 | 464 |
2022 | 469 |
2023 | 542 |
2024 | 535 |
2025 to 2029 | 3,910 |
Pension and retirement plans [member] | |
Disclosure of defined benefit plans [line items] | |
2020 | 767 |
2021 | 332 |
2022 | 340 |
2023 | 414 |
2024 | 405 |
2025 to 2029 | 3,192 |
Seniority premiums [member] | |
Disclosure of defined benefit plans [line items] | |
2020 | 129 |
2021 | 111 |
2022 | 107 |
2023 | 106 |
2024 | 107 |
2025 to 2029 | 594 |
Post retirement medical services [member] | |
Disclosure of defined benefit plans [line items] | |
2020 | 20 |
2021 | 21 |
2022 | 22 |
2023 | 22 |
2024 | 23 |
2025 to 2029 | $ 124 |
Employee Benefits - Summary o_3
Employee Benefits - Summary of Balances of the Liabilities for Employee Benefits (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | |
Disclosure of defined benefit plans [line items] | |||||
Total Employee Benefits | $ 6,347 | [1] | $ 337 | $ 4,699 | |
Pension and retirement plans [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Defined benefit obligation | 7,193 | 6,189 | |||
Defined benefit obligation funds at fair value | (2,678) | (2,501) | |||
Net defined benefit liability | 4,515 | 3,688 | |||
Seniority premiums [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Defined benefit obligation | 1,237 | 772 | |||
Defined benefit obligation funds at fair value | (127) | (111) | |||
Net defined benefit liability | 1,110 | 661 | |||
Post retirement medical services [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Defined benefit obligation | 797 | 418 | |||
Defined benefit obligation funds at fair value | (75) | (68) | |||
Net defined benefit liability | $ 722 | $ 350 | |||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Employee Benefits - Summary o_4
Employee Benefits - Summary of Trust Assets (Detail) - Level 1 [member] | Dec. 31, 2019 | Dec. 31, 2018 |
Variable return: | ||
Trust assets fixed and variable return percentage | 100.00% | 100.00% |
Traded Securities [member] | ||
Fixed return: | ||
Trust assets fixed return percentage | 9.00% | 19.00% |
Bank instruments [member] | ||
Fixed return: | ||
Trust assets fixed return percentage | 23.00% | 6.00% |
Federal government instruments of the respective countries [member] | ||
Fixed return: | ||
Trust assets fixed return percentage | 33.00% | 60.00% |
Publicly traded shares [member] | ||
Variable return: | ||
Trust assets variable return percentage | 35.00% | 15.00% |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | ||
Cost of sales [member] | |||
Disclosure of defined benefit plans [line items] | |||
Labor expense | $ 433 | ||
Administrative expenses [member] | |||
Disclosure of defined benefit plans [line items] | |||
Labor expense | $ 468 | ||
Selling expenses [member] | |||
Disclosure of defined benefit plans [line items] | |||
Labor expense | $ 374 | ||
Mexican subsidiaries [member] | |||
Disclosure of defined benefit plans [line items] | |||
Plan asset investment for related parties, percentage | 10.00% | ||
Discount rates [member] | |||
Disclosure of defined benefit plans [line items] | |||
Impact on absolute terms of variation in the assumptions on net defined benefit liability | 1.00% | ||
Bottom of range [member] | Mexican Federal Government instruments [member] | |||
Disclosure of defined benefit plans [line items] | |||
Fund assets, percentage | 30.00% |
Employee Benefits - Summary o_5
Employee Benefits - Summary of Amounts and Types of Securities in Related Parties Included in Portfolio Fund (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt [member] | El Puerto de Liverpool, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | $ 30 | $ 30 |
Debt [member] | Grupo Industrial Bimbo, S.A.B. de C. V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 31 | 27 |
Debt [member] | Grupo Financiero Banorte, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 8 | 8 |
Debt [member] | Grupo Financiero Scotiabank Inverlat, S.A. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 10 | |
Debt [member] | Grupo Televisa, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 45 | |
Debt [member] | Gentera, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 4 | |
Debt [member] | Grupo BBVA Bancomer, S.A. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 20 | 19 |
Capital [member] | El Puerto de Liverpool, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 2 | 3 |
Capital [member] | Otros [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 3 | |
Capital [member] | Grupo Televisa, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 1 | |
Capital [member] | CEMEX, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | 12 | 3 |
Capital [member] | Alfa, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | $ 6 | |
Capital [member] | Grupo Aeroportuario del Suereste, S.A.B. de C.V. [member] | ||
Disclosure of defined benefit plans [line items] | ||
Investments in securities | $ 2 |
Employee Benefits - Summary o_6
Employee Benefits - Summary of Amount Recognized in Consolidated Income Statements and Consolidated Statements of Comprehensive Income (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Remeasurements on the Net Defined Benefit Liability | $ (1,090) | $ (58) | $ 551 | $ (7) | [2] | |
Net benefit cost recognized in the consolidated statements of income [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 433 | 468 | 374 | |||
Past service cost | 116 | 10 | ||||
Gain or Loss on Settlement or Curtailment | 2 | (14) | (3) | |||
Net Interest on the Net Defined Benefit Liability | 379 | 387 | 319 | |||
Net benefit cost recognized in the consolidated statements of income [member] | Pension and retirement plans [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 279 | 318 | 244 | |||
Past service cost | (45) | 10 | ||||
Gain or Loss on Settlement or Curtailment | 2 | (5) | (2) | |||
Net Interest on the Net Defined Benefit Liability | 290 | 304 | 248 | |||
Net benefit cost recognized in the consolidated statements of income [member] | Seniority premiums [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 139 | 125 | 106 | |||
Past service cost | 161 | |||||
Gain or Loss on Settlement or Curtailment | (8) | (1) | ||||
Net Interest on the Net Defined Benefit Liability | 57 | 49 | 41 | |||
Net benefit cost recognized in the consolidated statements of income [member] | Post retirement medical services [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Current service cost | 15 | 25 | 24 | |||
Gain or Loss on Settlement or Curtailment | (1) | |||||
Net Interest on the Net Defined Benefit Liability | 32 | 34 | 30 | |||
Net benefit cost recognized in consolidated statements of accumulated other comprehensive income [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Remeasurements on the Net Defined Benefit Liability | 2,166 | 646 | 1,291 | |||
Net benefit cost recognized in consolidated statements of accumulated other comprehensive income [member] | Pension and retirement plans [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Remeasurements on the Net Defined Benefit Liability | 1,608 | 668 | 1,061 | |||
Net benefit cost recognized in consolidated statements of accumulated other comprehensive income [member] | Seniority premiums [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Remeasurements on the Net Defined Benefit Liability | 162 | (63) | 46 | |||
Net benefit cost recognized in consolidated statements of accumulated other comprehensive income [member] | Post retirement medical services [member] | ||||||
Disclosure of net defined benefit liability (asset) [line items] | ||||||
Remeasurements on the Net Defined Benefit Liability | $ 396 | $ 41 | $ 184 | |||
[1] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||
[2] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Employee Benefits - Summary o_7
Employee Benefits - Summary of Remeasurements of Employee Benefit Plans (Detail) - Net benefit cost recognized in consolidated statements of accumulated other comprehensive income [member] - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Amount accumulated in other comprehensive income as of the beginning of the period, net of tax | $ 475 | $ 892 | $ 966 |
Actuarial (gains) arising from exchange rates | (30) | (21) | (2) |
Remeasurements during the year, net of tax | 100 | 221 | 295 |
Actuarial losses and (gains) arising from changes in financial assumptions | 1,071 | (617) | (367) |
Effect on settlement | 8 | ||
Amount accumulated in other comprehensive income as of the end of the period, net of tax | $ 1,624 | $ 475 | $ 892 |
Employee Benefits - Summary o_8
Employee Benefits - Summary of Changes in the Balance of the Defined Benefit Obligation for Post-employment (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Initial balance | $ 6,189 | ||
Ending balance | 7,193 | $ 6,189 | |
Pension and retirement plans [member] | Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Initial balance | 6,189 | 7,370 | $ 5,702 |
Current service cost | 279 | 318 | 341 |
Past service (credit) cost | (45) | 10 | |
Interest expense | 530 | 484 | 491 |
Settlement / Curtailment | 2 | (5) | (2) |
Remeasurements of the net defined benefit obligation | 859 | (740) | 263 |
Foreign exchange loss (gain) | (69) | (86) | (79) |
Benefits paid | (582) | (450) | (550) |
(Derecognition) acquisitions | 30 | (702) | 1,194 |
Ending balance | 7,193 | 6,189 | 7,370 |
Seniority premiums [member] | Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Initial balance | 772 | 783 | 663 |
Current service cost | 139 | 125 | 106 |
Past service (credit) cost | 161 | ||
Interest expense | 68 | 57 | 49 |
Settlement / Curtailment | (8) | (1) | |
Remeasurements of the net defined benefit obligation | 230 | (115) | 28 |
Benefits paid | (133) | (77) | (68) |
Acquisitions | 7 | 6 | |
Ending balance | 1,237 | 772 | 783 |
Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Initial balance | 418 | ||
Ending balance | 797 | 418 | |
Post retirement medical services [member] | Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Initial balance | 418 | 524 | 460 |
Current service cost | 15 | 25 | 24 |
Interest expense | 38 | 39 | 34 |
Settlement / Curtailment | (1) | ||
Remeasurements of the net defined benefit obligation | 356 | (143) | 32 |
Benefits paid | (30) | (26) | (26) |
Ending balance | $ 797 | $ 418 | $ 524 |
Employee Benefits - Summary o_9
Employee Benefits - Summary of Changes in the Balance of Plan Assets (Detail) - Plan assets [member] - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Initial balance | $ 2,680 | $ 3,304 | $ 2,378 |
Actual return on trust assets | 174 | 47 | 213 |
Foreign exchange loss (gain) | 2 | (1) | 86 |
Life annuities | 24 | 35 | 65 |
Benefits paid | (1) | (136) | |
(Derecognition) acquisitions | (704) | 698 | |
Ending balance | $ 2,880 | $ 2,680 | $ 3,304 |
Employee Benefits - Summary _10
Employee Benefits - Summary of Net Defined Benefit Liability Asset (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | $ 4,515 | $ 3,688 | |
Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,110 | 661 | |
Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 722 | 350 | |
Net benefit cost recognized in the consolidated statements of income [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 433 | 468 | $ 374 |
Gain or Loss on Settlement or Curtailment | 2 | (14) | (3) |
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 379 | 387 | 319 |
Net benefit cost recognized in the consolidated statements of income [member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 279 | 318 | 244 |
Gain or Loss on Settlement or Curtailment | 2 | (5) | (2) |
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 290 | 304 | 248 |
Net benefit cost recognized in the consolidated statements of income [member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 139 | 125 | 106 |
Gain or Loss on Settlement or Curtailment | (8) | (1) | |
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 57 | 49 | 41 |
Net benefit cost recognized in the consolidated statements of income [member] | Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 15 | 25 | 24 |
Gain or Loss on Settlement or Curtailment | (1) | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 32 | $ 34 | $ 30 |
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Discount rates [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 469 | ||
Gain or Loss on Settlement or Curtailment | 1 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 318 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Discount rates [member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 180 | ||
Gain or Loss on Settlement or Curtailment | 1 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 237 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Discount rates [member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 283 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 52 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Discount rates [member] | Postretirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 6 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 29 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Future salary growth [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 525 | ||
Gain or Loss on Settlement or Curtailment | 2 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 391 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Future salary growth [Member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 205 | ||
Gain or Loss on Settlement or Curtailment | 2 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 329 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Future salary growth [Member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 320 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 62 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate +1% [member] | Medical cost trend rates [Member] | Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 8 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 40 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Discount rates [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 524 | ||
Gain or Loss on Settlement or Curtailment | 2 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 460 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Discount rates [member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 199 | ||
Gain or Loss on Settlement or Curtailment | 2 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 356 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Discount rates [member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 317 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 63 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Discount rates [member] | Postretirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 8 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 41 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Future salary growth [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 459 | ||
Gain or Loss on Settlement or Curtailment | 1 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 320 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Future salary growth [Member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 178 | ||
Gain or Loss on Settlement or Curtailment | 1 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 267 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Future salary growth [Member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 281 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 53 | ||
Net benefit cost recognized in the consolidated statements of income [member] | Discount rate -1% [member] | Medical cost trend rates [Member] | Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Current service cost | 6 | ||
Effect of Net Interest on the Net Defined Benefit Liability (Asset) | 30 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Discount rates [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,861 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Discount rates [member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,379 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Discount rates [member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 147 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Discount rates [member] | Postretirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 335 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Future salary growth [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,671 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Future salary growth [Member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,493 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Future salary growth [Member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 178 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate +1% [member] | Medical cost trend rates [Member] | Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 431 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Discount rates [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,958 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Discount rates [member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,528 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Discount rates [member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Discount rates [member] | Postretirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 429 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Future salary growth [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,555 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Future salary growth [Member] | Pension and retirement plans [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 1,408 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Future salary growth [Member] | Seniority premiums [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | 147 | ||
Net benefit cost recognized in consolidated statements of other comprehensive income [member] | Discount rate -1% [member] | Medical cost trend rates [Member] | Post retirement medical services [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Remeasurements of the Net Defined Benefit Liabilility (Assets) | $ 333 |
Employee Benefits - Summary _11
Employee Benefits - Summary of Employee Benefit Expenses (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of employee benefits expense [abstract] | |||
Wages and salaries | $ 64,776 | $ 58,745 | $ 51,874 |
Social security costs | 11,494 | 10,486 | 9,800 |
Employee profit sharing | 1,205 | 1,294 | 1,209 |
Post-employment benefits | 795 | 842 | 700 |
Share-based payments | 610 | 401 | 351 |
Termination benefits | 169 | 132 | 159 |
Employee benefits expense | $ 78,639 | $ 71,904 | $ 64,093 |
Bonus Programs - Additional Inf
Bonus Programs - Additional Information (Detail) - MXN ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Percentage of bonus | 50.00% | ||
Percentage of annual bonus | 50.00% | ||
Compensation expense | $ 610 | $ 401 | $ 351 |
Fair value of shares held by trust | 488 | 468 | |
Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Percentage of economic value added | 70.00% | ||
Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Percentage of economic value added | 30.00% |
Bonus Programs - Summary of Num
Bonus Programs - Summary of Number of Shares Held by the Trust (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
FEMSA UBD [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance | 2,278,460 | 2,945,209 |
Shares acquired by the administrative trust to employees | 1,441,838 | 913,846 |
Shares released from administrative trust to employees upon vesting | 1,470,633 | 1,580,595 |
Ending balance | 2,249,665 | 2,278,460 |
KOFL UBL [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance | 697,226 | 935,899 |
Shares acquired by the administrative trust to employees | 456,077 | 262,909 |
Shares released from administrative trust to employees upon vesting | 400,456 | 501,582 |
Ending balance | 752,847 | 697,226 |
Bank Loans and Notes Payable -
Bank Loans and Notes Payable - Summary of Detailed Information About Borrowings (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018MXN ($) | ||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 114,016 | $ 126,228 | |||
Current portion of long term debt | (12,269) | [1] | $ (651) | [2] | $ (11,238) |
Interest rate | 0.40% | ||||
Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 9,864 | $ 10,731 | |||
Notes payable [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 5 | ||||
Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 3,935 | 2,436 | |||
Long-term debt | 14,336 | 20,823 | |||
Current portion of long term debt | (12,269) | (11,238) | |||
Non-current portion of long-term debt | 101,747 | 114,990 | |||
Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 99,680 | 105,405 | |||
Less than 1 year [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 12,269 | ||||
Less than 1 year [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 3,935 | ||||
Long-term debt | 1,739 | ||||
Less than 1 year [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 10,530 | ||||
1-2 years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 4,718 | ||||
1-2 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 752 | ||||
1-2 years [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 3,966 | ||||
2-3 years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 2,658 | ||||
2-3 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 2,140 | ||||
2-3 years [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 518 | ||||
3-4 years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 51,796 | ||||
3-4 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 338 | ||||
3-4 years [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 51,458 | ||||
4-5 years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 471 | ||||
4-5 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 9 | ||||
4-5 years [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 462 | ||||
Later than 5 years [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 42,104 | ||||
Later than 5 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 9,358 | ||||
Later than 5 years [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 32,746 | ||||
U S dollar [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 3.60% | 3.60% | |||
U S dollar [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 4,025 | ||||
Interest rate | 3.30% | ||||
U S dollar [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 2,185 | ||||
Interest rate | 2.60% | 2.60% | |||
U S dollar [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 1,038 | ||||
U S dollar [member] | Fixed rate debt [member] | Capital leases [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 10 | ||||
Interest rate | 3.30% | ||||
U S dollar [member] | Fixed rate debt [member] | Long term borrowings Yankee bond [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 37,575 | $ 39,204 | |||
Interest rate | 4.50% | 4.50% | 4.50% | ||
U S dollar [member] | Fixed rate debt [member] | Long term borrowings promissory note [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 4,652 | ||||
Interest rate | 0.40% | ||||
U S dollar [member] | Fixed rate debt [member] | Long term borrowings Bank of NY (FEMSA USD 2023) [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 5,593 | $ 5,849 | |||
Interest rate | 2.90% | 2.90% | 2.90% | ||
U S dollar [member] | Fixed rate debt [member] | Long term borrowings Bank of NY (FEMSA USD 2043) [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 12,943 | $ 13,504 | |||
Interest rate | 4.40% | 4.40% | 4.40% | ||
U S dollar [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 439 | ||||
Interest rate | 3.60% | 3.60% | |||
U S dollar [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 1,038 | ||||
Interest rate | 2.60% | 2.60% | |||
U S dollar [member] | Less than 1 year [member] | Fixed rate debt [member] | Long term borrowings Yankee bond [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 9,421 | ||||
Interest rate | 4.60% | 4.60% | |||
U S dollar [member] | 1-2 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 437 | ||||
Interest rate | 3.60% | 3.60% | |||
U S dollar [member] | 2-3 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 437 | ||||
Interest rate | 3.60% | 3.60% | |||
U S dollar [member] | 3-4 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 436 | ||||
Interest rate | 3.60% | 3.60% | |||
U S dollar [member] | 3-4 years [member] | Fixed rate debt [member] | Long term borrowings Yankee bond [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 16,840 | ||||
Interest rate | 3.90% | 3.90% | |||
U S dollar [member] | 3-4 years [member] | Fixed rate debt [member] | Long term borrowings Bank of NY (FEMSA USD 2023) [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 5,593 | ||||
U S dollar [member] | 4-5 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 436 | ||||
Interest rate | 3.60% | 3.60% | |||
U S dollar [member] | Later than 5 years [member] | Fixed rate debt [member] | Long term borrowings Yankee bond [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 11,314 | ||||
Interest rate | 5.30% | 5.30% | |||
U S dollar [member] | Later than 5 years [member] | Fixed rate debt [member] | Long term borrowings Bank of NY (FEMSA USD 2043) [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 12,943 | ||||
Mexican peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 9,864 | $ 10,731 | |||
Interest rate | 8.40% | 8.40% | 8.60% | ||
Mexican peso [member] | Variable rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 1,459 | $ 1,497 | |||
Interest rate | 8.00% | 8.00% | 8.60% | ||
Mexican peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 100 | $ 450 | |||
Interest rate | 7.90% | 7.90% | 9.20% | ||
Mexican peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 115 | $ 77 | |||
Interest rate | 9.30% | 9.30% | 6.40% | ||
Mexican peso [member] | Fixed rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 18,484 | $ 18,481 | |||
Interest rate | 6.90% | 6.90% | 6.90% | ||
Mexican peso [member] | Less than 1 year [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 263 | ||||
Interest rate | 8.50% | 8.50% | |||
Mexican peso [member] | Less than 1 year [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 100 | ||||
Interest rate | 7.90% | 7.90% | |||
Mexican peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 49 | ||||
Interest rate | 8.20% | 8.20% | |||
Mexican peso [member] | 1-2 years [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 119 | ||||
Interest rate | 9.00% | 9.00% | |||
Mexican peso [member] | 1-2 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 31 | ||||
Interest rate | 9.30% | 9.30% | |||
Mexican peso [member] | 1-2 years [member] | Fixed rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 2,499 | ||||
Interest rate | 8.30% | 8.30% | |||
Mexican peso [member] | 2-3 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 8.00% | 8.00% | |||
Mexican peso [member] | 2-3 years [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 81 | ||||
Interest rate | 8.90% | 8.90% | |||
Mexican peso [member] | 2-3 years [member] | Variable rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 1,459 | ||||
Mexican peso [member] | 2-3 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 20 | ||||
Interest rate | 11.00% | 11.00% | |||
Mexican peso [member] | 3-4 years [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 34 | ||||
Interest rate | 9.00% | 9.00% | |||
Mexican peso [member] | 3-4 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 12 | ||||
Interest rate | 11.00% | 11.00% | |||
Mexican peso [member] | 3-4 years [member] | Fixed rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 7,496 | ||||
Interest rate | 5.50% | 5.50% | |||
Mexican peso [member] | 4-5 years [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 9 | ||||
Interest rate | 9.50% | 9.50% | |||
Mexican peso [member] | 4-5 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 3 | ||||
Interest rate | 11.00% | 11.00% | |||
Mexican peso [member] | Later than 5 years [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 9,358 | ||||
Interest rate | 8.20% | 8.20% | |||
Mexican peso [member] | Later than 5 years [member] | Fixed rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 8,489 | ||||
Interest rate | 7.90% | 7.90% | |||
Brazilian reais [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 242 | ||||
Interest rate | 7.80% | 7.80% | 9.50% | ||
Brazilian reais [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 242 | $ 505 | |||
Interest rate | 9.40% | 9.40% | |||
Brazilian reais [member] | Variable rate debt [member] | Notes payable [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 5 | ||||
Brazilian reais [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 399 | ||||
Brazilian reais [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 434 | $ 545 | |||
Interest rate | 7.30% | 7.30% | 6.00% | ||
Brazilian reais [member] | Less than 1 year [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 184 | ||||
Interest rate | 7.80% | 7.80% | |||
Brazilian reais [member] | Less than 1 year [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 399 | ||||
Brazilian reais [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 118 | ||||
Interest rate | 5.90% | 5.90% | |||
Brazilian reais [member] | 1-2 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 52 | ||||
Interest rate | 7.80% | 7.80% | |||
Brazilian reais [member] | 1-2 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 197 | ||||
Interest rate | 8.80% | 8.80% | |||
Brazilian reais [member] | 2-3 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 6 | ||||
Interest rate | 7.80% | 7.80% | |||
Brazilian reais [member] | 2-3 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 61 | ||||
Interest rate | 6.10% | 6.10% | |||
Brazilian reais [member] | 3-4 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 35 | ||||
Interest rate | 6.40% | 6.40% | |||
Brazilian reais [member] | 4-5 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 23 | ||||
Interest rate | 6.60% | 6.60% | |||
Colombian peso [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 5.70% | 5.70% | 5.70% | ||
Colombian peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 422 | $ 848 | |||
Interest rate | 4.70% | 4.70% | 5.60% | ||
Colombian peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 431 | $ 454 | |||
Colombian peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 5.10% | 5.10% | |||
Colombian peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 769 | ||||
Colombian peso [member] | Less than 1 year [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 417 | ||||
Interest rate | 5.70% | 5.70% | |||
Colombian peso [member] | Less than 1 year [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 431 | ||||
Colombian peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 5.10% | 5.10% | |||
Colombian peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 769 | ||||
Colombian peso [member] | 1-2 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 4 | ||||
Interest rate | 6.80% | 6.80% | |||
Colombian peso [member] | 2-3 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 1 | ||||
Interest rate | 6.80% | 6.80% | |||
Chilean peso [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 4.10% | 4.10% | 4.10% | ||
Chilean peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 2,349 | $ 3,212 | |||
Chilean peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.60% | 2.60% | 3.20% | ||
Chilean peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 977 | $ 594 | |||
Chilean peso [member] | Fixed rate debt [member] | Long term borrowings capital lease [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 40 | ||||
Interest rate | 3.40% | 3.40% | |||
Chilean peso [member] | Less than 1 year [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 875 | ||||
Interest rate | 3.90% | 3.90% | |||
Chilean peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 2.60% | 2.60% | |||
Chilean peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 977 | ||||
Chilean peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Long term borrowings capital lease [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 26 | ||||
Interest rate | 3.50% | 3.50% | |||
Chilean peso [member] | 1-2 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 577 | ||||
Interest rate | 4.00% | 4.00% | |||
Chilean peso [member] | 1-2 years [member] | Fixed rate debt [member] | Long term borrowings capital lease [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 14 | ||||
Interest rate | 3.20% | 3.20% | |||
Chilean peso [member] | 2-3 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 593 | ||||
Interest rate | 4.30% | 4.30% | |||
Chilean peso [member] | 3-4 years [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 304 | ||||
Interest rate | 4.10% | 4.10% | |||
Argentine peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 54.30% | 54.30% | |||
Argentine peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 32 | ||||
Argentine peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 63.50% | 63.50% | 36.80% | ||
Argentine peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 126 | $ 157 | |||
Argentine peso [member] | Less than 1 year [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 32 | ||||
Argentine peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 63.50% | 63.50% | |||
Argentine peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 126 | ||||
Uruguayan peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 1,265 | $ 573 | |||
Interest rate | 5.80% | 5.80% | 10.20% | ||
Uruguayan peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 63 | $ 771 | |||
Interest rate | 11.60% | 11.60% | 10.00% | ||
Uruguayan peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 477 | ||||
Interest rate | 10.20% | 10.20% | |||
Uruguayan peso [member] | Less than 1 year [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | $ 63 | ||||
Interest rate | 11.60% | 11.60% | |||
Uruguayan peso [member] | 1-2 years [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 788 | ||||
Interest rate | 9.90% | 9.90% | |||
Euro [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 21,046 | $ 22,439 | |||
Euro [member] | Fixed rate debt [member] | Senior unsecured notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 1.70% | 1.70% | 1.70% | ||
Euro [member] | 3-4 years [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 21,046 | ||||
Fair value [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 120,103 | ||||
Fair value [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 3,935 | ||||
Long-term debt | 14,261 | ||||
Fair value [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 9,864 | ||||
Fair value [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 105,842 | ||||
Fair value [member] | U S dollar [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 2,185 | ||||
Fair value [member] | U S dollar [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 1,038 | ||||
Fair value [member] | U S dollar [member] | Fixed rate debt [member] | Long term borrowings Yankee bond [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 41,231 | ||||
Fair value [member] | U S dollar [member] | Fixed rate debt [member] | Long term borrowings Bank of NY (FEMSA USD 2023) [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 5,715 | ||||
Fair value [member] | U S dollar [member] | Fixed rate debt [member] | Long term borrowings Bank of NY (FEMSA USD 2043) [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 14,611 | ||||
Fair value [member] | Mexican peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 9,864 | ||||
Fair value [member] | Mexican peso [member] | Variable rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 1,385 | ||||
Fair value [member] | Mexican peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 100 | ||||
Fair value [member] | Mexican peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 116 | ||||
Fair value [member] | Mexican peso [member] | Fixed rate debt [member] | Domestic senior notes [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 18,066 | ||||
Fair value [member] | Brazilian reais [member] | Variable rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 242 | ||||
Fair value [member] | Brazilian reais [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 242 | ||||
Fair value [member] | Brazilian reais [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 399 | ||||
Fair value [member] | Brazilian reais [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 434 | ||||
Fair value [member] | Colombian peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 422 | ||||
Fair value [member] | Colombian peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 431 | ||||
Fair value [member] | Colombian peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 769 | ||||
Fair value [member] | Chilean peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 2,348 | ||||
Fair value [member] | Chilean peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 977 | ||||
Fair value [member] | Chilean peso [member] | Fixed rate debt [member] | Long term borrowings capital lease [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 39 | ||||
Fair value [member] | Argentine peso [member] | Variable rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 32 | ||||
Fair value [member] | Argentine peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 126 | ||||
Fair value [member] | Uruguayan peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | 1,265 | ||||
Fair value [member] | Uruguayan peso [member] | Fixed rate debt [member] | Bank loans [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Short-term debt | 63 | ||||
Fair value [member] | Euro [member] | Fixed rate debt [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long-term debt | $ 22,181 | ||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Bank Loans and Notes Payable _2
Bank Loans and Notes Payable - Summary of Financial Instruments by Type of Interest Rate (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.40% | ||
Interest receive rate | 4.40% | ||
Notional amount | $ 8,869 | ||
Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | 7.4% fixed to 7.2% variable interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | [1] | $ 11,403 | $ 11,403 |
Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | Fixed to variable interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 8.80% | 9.80% | |
Interest receive rate | 4.00% | 4.00% | |
Notional amount | $ 18,982 | $ 19,768 | |
Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | Fixed to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.00% | 9.10% | |
Interest receive rate | 3.90% | 3.90% | |
Cross-currency swaps [member] | U.S. dollars to Brazilian reais [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.50% | ||
Interest receive rate | 3.90% | ||
Notional amount | $ 9,046 | ||
Cross-currency swaps [member] | U.S. dollars to Brazilian reais [member] | Fixed to variable interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 4.70% | ||
Interest receive rate | 0.40% | ||
Notional amount | $ 4,652 | ||
Cross-currency swaps [member] | U.S. dollars to Brazilian reais [member] | Fixed to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 8.30% | 8.30% | |
Interest receive rate | 2.90% | 2.90% | |
Notional amount | $ 4,365 | $ 4,559 | |
Cross-currency swaps [member] | U.S. dollars to Brazilian reais [member] | Variable to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.00% | ||
Interest receive rate | 3.60% | ||
Notional amount | $ 13,483 | ||
Cross-currency swaps [member] | Chilean peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 6.90% | ||
Interest receive rate | 4.70% | ||
Notional amount | $ 163 | ||
Cross-currency swaps [member] | Chilean peso [member] | Variable to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 6.90% | ||
Interest receive rate | 4.60% | ||
Notional amount | $ 364 | ||
Interest rate swap [member] | U.S. dollars to Mexican pesos [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 11,403 | ||
Interest rate swap [member] | Mexican peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 4.90% | ||
Interest receive rate | 3.90% | ||
Notional amount | $ 4,353 | ||
Interest rate swap [member] | Mexican peso [member] | 6.0% variable to 5.9% fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 6.30% | ||
Interest receive rate | 4.00% | ||
Notional amount | $ 2,847 | ||
Interest rate swap [member] | Mexican peso [member] | 7.4% variable to 7.2% fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 7.20% | 7.20% | |
Interest receive rate | 8.80% | 9.80% | |
Less than 1 year [member] | Cross-currency swaps [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 17,252 | $ 4,738 | |
Less than 1 year [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 9,423 | ||
Less than 1 year [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | Fixed to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.00% | ||
Interest receive rate | 3.90% | ||
Less than 1 year [member] | Cross-currency swaps [member] | U.S. dollars to Brazilian reais [member] | Fixed to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 8.30% | ||
Interest receive rate | 2.90% | ||
Notional amount | $ 4,365 | ||
Less than 1 year [member] | Cross-currency swaps [member] | Chilean peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 6.90% | ||
Interest receive rate | 4.70% | ||
Notional amount | $ 163 | ||
1-2 years [member] | Cross-currency swaps [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 702 | 18,126 | |
1-2 years [member] | Interest rate swap [member] | Mexican peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 7.60% | ||
Interest receive rate | 2.80% | ||
Notional amount | $ 405 | ||
2-3 years [member] | Cross-currency swaps [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 375 | 4,774 | |
2-3 years [member] | Interest rate swap [member] | Mexican peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 6.60% | ||
Interest receive rate | 4.90% | ||
Notional amount | $ 414 | ||
3-4 years [member] | Cross-currency swaps [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | 23,466 | ||
3-4 years [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | 2,963 | ||
3-4 years [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | 7.4% fixed to 7.2% variable interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | [1] | $ 11,403 | |
3-4 years [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | Fixed to variable interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 8.80% | ||
Interest receive rate | 4.00% | ||
3-4 years [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | Fixed to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 7.60% | ||
Interest receive rate | 3.90% | ||
3-4 years [member] | Cross-currency swaps [member] | U.S. dollars to Brazilian reais [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.50% | ||
Interest receive rate | 3.90% | ||
Notional amount | $ 9,046 | ||
3-4 years [member] | Interest rate swap [member] | Mexican peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 1,367 | ||
3-4 years [member] | Interest rate swap [member] | Mexican peso [member] | 6.0% variable to 5.9% fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 5.80% | ||
Interest receive rate | 4.10% | ||
3-4 years [member] | Interest rate swap [member] | Mexican peso [member] | 7.4% variable to 7.2% fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 7.20% | ||
Interest receive rate | 8.80% | ||
4-5 years [member] | Cross-currency swaps [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Notional amount | $ 1,788 | $ 396 | |
4-5 years [member] | Interest rate swap [member] | Mexican peso [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 3.60% | ||
Interest receive rate | 3.70% | ||
Notional amount | $ 2,167 | ||
Later than 5 years [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.40% | ||
Interest receive rate | 4.40% | ||
Notional amount | $ 6,596 | ||
Later than 5 years [member] | Cross-currency swaps [member] | U.S. dollars to Mexican pesos [member] | Fixed to fixed interest rate [member] | |||
Disclosure of financial instruments by type of interest rate [line items] | |||
Interest pay rate | 9.70% | ||
Interest receive rate | 4.00% | ||
[1] | Interest rate swaps with a notional amount of Ps. 11,403 that receive a variable rate of 8.8% and pay a fixed rate of 7.2%; joined with a cross currency swap, which covers U.S. dollars to Mexican pesos, that receives a fixed rate of 4.0% and pay a variable rate of 8.8%. |
Bank Loans and Notes Payable _3
Bank Loans and Notes Payable - Summary of Financial Instruments by Type of Interest Rate (Parenthetical) (Detail) - U.S. dollars to Mexican pesos [member] $ in Millions | 12 Months Ended |
Dec. 31, 2019MXN ($) | |
Cross-currency swaps [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Notional amount | $ 8,869 |
Cross-currency swaps [member] | 9.4% variable to 4.4% fixed interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate percentage | 4.4 |
Cross-currency swaps [member] | 9.4% fixed to 4.4% variable interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate percentage | 9.4 |
Cross-currency swaps [member] | 8.8% variable to 4.0% fixed interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate percentage | 4.0 |
Cross-currency swaps [member] | 8.8% fixed to 4.0% variable interest rate [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate percentage | 8.8 |
Interest rate swap [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Notional amount | $ 11,403 |
Interest rate swap [member] | Fixed rate debt [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate percentage | 7.2 |
Interest rate swap [member] | Variable rate debt [member] | |
Disclosure of financial instruments by type of interest rate [line items] | |
Interest rate percentage | 8.8 |
Bank Loans and Notes Payable _4
Bank Loans and Notes Payable - Summary of Interest Expense (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1],[2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |||
Disclosure of detailed information about borrowings [abstract] | |||||||
Interest on debts and borrowings | $ 6,434 | $ 6,760 | $ 6,377 | ||||
Capitalized interest | (5) | (10) | |||||
Finance charges for employee benefits | 382 | 373 | 317 | ||||
Derivative instruments | 2,300 | 2,649 | 4,339 | ||||
Finance operating charges | 243 | 48 | 69 | ||||
Finance charges payable for leases | 4,774 | ||||||
Total | $ 14,133 | [1] | $ 749 | $ 9,825 | $ 11,092 | [3] | |
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Bank Loans and Notes Payable _5
Bank Loans and Notes Payable - Additional Information (Detail) $ in Thousands, $ in Thousands | Nov. 26, 2018MXN ($) | Nov. 26, 2018USD ($) | Mar. 14, 2016MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2019USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||
Fixed interest rate | 0.40% | |||||
Mexico, Pesos | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Credit contracts | $ 9,400 | $ 10,100 | ||||
Repayment of borrowings | $ 10,100 | |||||
Mexico, Pesos | Top of range [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Fixed interest rate | 8.39% | 8.39% | ||||
Mexico, Pesos | Bottom of range [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Fixed interest rate | 7.91% | 7.91% | ||||
Uruguay, Pesos | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Credit contracts | 1,344 | |||||
United States of America, Dollars | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Credit contracts | $ 1,670 | |||||
Repayment of borrowings | $ 445 | |||||
1.75% Senior Notes [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 1,000,000 | |||||
Maturity date | 7 | |||||
Fixed interest rate | 1.75% | |||||
Basis points over the relevant benchmark mid-swap | 155 | |||||
Total yield percentage | 1.824% | |||||
8.27% Debt Bonds Maturing on 2021 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 2,500,000 | |||||
Maturity date | 2021 | |||||
Fixed interest rate | 8.27% | |||||
5.46% Debt Bonds Maturing on 2023 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 7,500 | |||||
Maturity date | 2023 | |||||
Fixed interest rate | 5.46% | 5.46% | ||||
4.63% Senior Notes Maturing on February Fifteen Two Thousand Twenty [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 500,000 | |||||
Maturity date | February 15, 2020 | |||||
Fixed interest rate | 4.63% | |||||
Two Point Three Eight Percentage Senior Notes Maturing On November Twenty Six Two Thousand Eighteen [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Maturity date | November 26, 2018 | |||||
Three Point Eight Eight Percentage Senior Notes Maturing On November Twenty Six Two Thousand Twenty Three [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 900,000 | |||||
Maturity date | November 26, 2023 | |||||
Fixed interest rate | 3.88% | |||||
5.25% Senior Notes Maturing On November 26, 2045 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 600 | |||||
Maturity date | November 26, 2043 | |||||
Fixed interest rate | 5.25% | 5.25% | ||||
TIIE plus 0.5% debt bonds maturing on 2022 [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 1,500 | |||||
Maturity date | 2022 | |||||
Basis points over the relevant benchmark mid-swap | 0.25 | |||||
7.87% debt bonds maturing on 2027 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount | $ 8,500 | |||||
Maturity date | 2027 | |||||
Fixed interest rate | 7.87% | 7.87% |
Bank Loans and Notes Payable _6
Bank Loans and Notes Payable - Summary of Liabilities Arising from Financing Activities (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | $ 128,664 | $ 131,348 | $ 139,248 |
Cash Flows | (16,869) | (1,027) | (4,531) |
Non-cash flows, Acquisition | 4,104 | 1,147 | |
Non-cash flows, New leases | 7,490 | ||
Non-cash flows, Foreign Exchange movement | (1,651) | (362) | 5,144 |
Non-cash flows, Others | 672 | (2,442) | (8,513) |
Ending balance | 172,630 | 128,664 | 131,348 |
Bank loans [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 22,944 | 13,669 | 14,497 |
Cash Flows | (2,999) | 8,313 | (949) |
Non-cash flows, Acquisition | 1,917 | 1,147 | |
Non-cash flows, Foreign Exchange movement | (397) | 417 | 190 |
Non-cash flows, Others | (658) | (602) | (69) |
Ending balance | 20,807 | 22,944 | 13,669 |
Notes payable [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 105,628 | 117,551 | 123,859 |
Cash Flows | (5,022) | (9,314) | (3,574) |
Non-cash flows, Foreign Exchange movement | (1,244) | (769) | 4,954 |
Non-cash flows, Others | (2,310) | (1,840) | (7,688) |
Ending balance | 97,144 | 105,628 | 117,551 |
Total liabilities from financing activities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 128,664 | ||
Cash Flows | (8,021) | ||
Non-cash flows, Acquisition | 1,917 | ||
Non-cash flows, Foreign Exchange movement | (1,641) | ||
Non-cash flows, Others | (2,968) | ||
Ending balance | 117,951 | 128,664 | |
Financial leases [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 92 | 128 | 892 |
Cash Flows | (8,848) | (26) | (8) |
Non-cash flows, Acquisition | 2,187 | ||
Non-cash flows, New leases | 7,490 | ||
Non-cash flows, Foreign Exchange movement | (10) | (10) | |
Non-cash flows, Others | 3,640 | (756) | |
Ending balance | $ 54,679 | $ 92 | $ 128 |
Other Income and Expenses - Sum
Other Income and Expenses - Summary of Other Income and Expenses (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2],[3] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||||
Disclosure of Other Operating Income Expense [Line Items] | ||||||||
Gain on sale of shares | $ 123 | |||||||
Gain on sale of other assets | $ 344 | |||||||
Gain on sale of long-lived assets | 174 | 210 | ||||||
Sale of waste material | $ 21 | 13 | 3 | |||||
Insurance rebates | 10 | 6 | ||||||
Foreign exchange gain | 26 | 123 | ||||||
Recoveries of prior years | [1] | 896 | ||||||
Others | 70 | 9 | 1,620 | |||||
Other income | 1,013 | [2] | $ 54 | 673 | 31,951 | [4] | ||
Contingencies associated with prior acquisitions or disposals | 149 | 138 | 39 | |||||
Loss on sale of property, plant and equipment | (68) | [2] | $ (4) | 174 | 210 | [4] | ||
Loss on sale of other assets | 148 | |||||||
Recoveries of prior years | 44 | 116 | 35 | |||||
Impairment of long-lived assets | [5] | 1,018 | 432 | 2,063 | ||||
Disposal of long-lived assets | [6] | 861 | 518 | 451 | ||||
Suppliers provisions | 398 | |||||||
Foreign exchange losses related to operating activities | 2,524 | |||||||
Contingencies | 589 | 518 | 636 | |||||
Severance payments | [7] | 1,207 | 264 | 243 | ||||
Donations | 489 | 528 | 242 | |||||
Legal fees and other expenses from past acquisitions | 17 | 149 | 612 | |||||
Venezuela deconsolidation effect | 26,123 | |||||||
Other | 464 | 284 | 352 | |||||
Other expenses | $ 4,905 | $ 2,947 | 33,866 | |||||
Heineken group shares [member] | ||||||||
Disclosure of Other Operating Income Expense [Line Items] | ||||||||
Gain on sale of shares | $ 29,989 | |||||||
[1] | Following a favorable decision from Brazilian tax authorities received during 2019, Coca-Cola FEMSA has been entitled to reclaim indirect tax payments made in prior years in Brazil, resulting in the recognition of a tax credit and a positive effect in the operating revenues and other income captions of the condensed consolidated income statements. See Note 25.1.1. | |||||||
[2] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||
[3] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||
[4] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 | |||||||
[5] | Includes impairment loss related to Compañía Panameña de Bebibas, S.A.P.I. de C.V., for an amount of Ps. 948 and Ps. 432 million in 2019 and 2018, respectively (see Note 10), and impairment loss in Venezuela of Ps. 2,053 in 2017 (see Note 3.3). | |||||||
[6] | Charges related to fixed assets retirement from ordinary operations and other long-lived assets. | |||||||
[7] | During 2019, the Company incurred restructuring costs related to some of their operations as part of an efficiency program. |
Other Income and Expenses - S_2
Other Income and Expenses - Summary of Other Income and Expenses (Parenthetical) (Detail) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of Other Operating Income Expense [Line Items] | ||||
Impairment of long-lived assets | [1] | $ 1,018 | $ 432 | $ 2,063 |
Venezuela [member] | ||||
Disclosure of Other Operating Income Expense [Line Items] | ||||
Impairment of long-lived assets | $ 948 | $ 432 | $ 2,053 | |
[1] | Includes impairment loss related to Compañía Panameña de Bebibas, S.A.P.I. de C.V., for an amount of Ps. 948 and Ps. 432 million in 2019 and 2018, respectively (see Note 10), and impairment loss in Venezuela of Ps. 2,053 in 2017 (see Note 3.3). |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Financial instrument (current asset) | $ 1,008 | $ 735 |
Financial instrument (non-current asset) | 8,260 | 10,752 |
Financial instrument (current liability) | 848 | 384 |
Level 1 [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Financial instrument (current asset) | 91 | |
Financial instrument (non-current asset) | 2,880 | 2,680 |
Financial instrument (current liability) | 47 | 236 |
Level 2 [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Financial instrument (current asset) | 917 | 735 |
Financial instrument (non-current asset) | 21,570 | 10,752 |
Financial instrument (current liability) | 801 | 147 |
Financial instrument (non-current liability) | $ 1,672 | $ 1,262 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Company's Publicly Traded Debt (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||||
Carrying value | $ 172,630 | $ 128,664 | $ 131,348 | $ 139,248 |
Level 1 [member] | ||||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||||
Carrying value | 117,951 | 128,664 | ||
Fair value | $ 124,038 | $ 128,741 |
Financial Instruments - Disclos
Financial Instruments - Disclosure of Outstanding Interest Rate Swap Agreements (Detail) - Interest rate swap [member] - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
1-2 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | $ 4,365 | $ 4,032 |
Fair Value Liability | (142) | (49) |
2-3 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | 405 | 4,559 |
Fair Value Liability | (24) | (112) |
3-4 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | 414 | 4,548 |
Fair Value Liability | (20) | (151) |
4-5 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | 12,770 | 617 |
Fair Value Liability | (79) | (18) |
Fair Value Asset | 245 | |
Later than 5 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | $ 3 | 13,101 |
Fair Value Liability | (49) | |
Fair Value Asset | $ 1,143 |
Financial Instruments - Discl_2
Financial Instruments - Disclosure of Outstanding Forward Agreements to Purchase Foreign Currency (Detail) - Forward agreements to purchase foreign currency [member] - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
0-1 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | $ 8,447 | $ 5,808 |
Fair Value Liability | (292) | (65) |
Fair Value Asset | 34 | $ 133 |
1-2 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | 215 | |
Fair Value Asset | 27 | |
2-3 years [member] | ||
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | 52 | |
Fair Value Asset | $ 5 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) R$ in Millions, $ in Millions, $ in Millions | Dec. 06, 2019USD ($) | Dec. 06, 2019BRL (R$) | Dec. 06, 2016BRL (R$) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||||||
Borrowings | $ 114,016 | $ 126,228 | ||||
Borrowings, interest rate | 0.40% | |||||
Brazil, Brazil Real | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Promissory notes paid | R$ | R$ 1002 | |||||
United States of America, Dollars | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Promissory notes paid | $ 236 | |||||
Mexico, Pesos | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Promissory notes paid | $ 4,670 | |||||
Liquidity risk [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Percentage of outstanding consolidated total indebtedness at the level of its sub-holding companies | 64.30% | 68.20% | ||||
Options to purchase foreign currency [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Net premium paid | $ 43 | $ 43 | ||||
Vonpar [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Date of acquisition | Dec. 6, 2016 | |||||
Vonpar [member] | Promissory notes [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Borrowings, interest rate | 0.375% | |||||
Vonpar [member] | Spal [member] | Promissory notes [member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Borrowings, maturity | three-year | |||||
Borrowings | R$ | R$ 1166 | |||||
Borrowings, interest rate | 0.375% | 0.375% |
Financial Instruments - Summa_2
Financial Instruments - Summary of Outstanding Collar Options to Purchase Foreign Currency (Detail) - Less than 1 year [member] - Options to purchase foreign currency [Member] - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Financial Assets and Financial Liabilities [Line Items] | ||
Notional amount | $ 107 | $ 1,734 |
Fair value Liability | (33) | |
Fair Value Asset | $ 2 | $ 57 |
Financial Instruments - Discl_3
Financial Instruments - Disclosure of Outstanding Cross Currency Swap Agreements (Detail) - Cross-currency swaps [member] - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Less than 1 year [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | $ 17,252 | $ 4,738 |
Fair Value Liability | (307) | |
Fair Value Asset | 883 | 502 |
1-2 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 702 | 18,126 |
Fair Value Liability | (378) | |
Fair Value Asset | 49 | 1,015 |
2-3 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 375 | 4,774 |
Fair Value Asset | 3 | 615 |
3-4 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 23,466 | |
Fair Value Liability | (594) | |
Fair Value Asset | 7,122 | |
4-5 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,788 | 396 |
Fair Value Liability | (53) | (7) |
Later than seven years and not later than eight years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 772 | 23,948 |
Fair Value Liability | (63) | (396) |
Fair Value Asset | 7,818 | |
8-9 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 6,596 | 813 |
Fair Value Liability | (843) | (154) |
9-10 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,371 | 6,889 |
Fair Value Liability | (42) | |
Fair Value Asset | 121 | $ 202 |
24-25 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 8,869 | |
Fair Value Asset | $ 576 |
Financial Instruments - Discl_4
Financial Instruments - Disclosure of Fair Value of Commodity Price Contracts (Detail) - Coca-Cola FEMSA [member] - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Sugar Price Contracts [member] | Less than 1 year [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | $ 1,554 | $ 1,223 |
Fair Value Asset | 53 | |
Fair Value Liability | (88) | |
Sugar Price Contracts [member] | 1-2 years [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 98 | |
Fair Value Asset | 15 | |
Aluminum price contracts [member] | Less than 1 year [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 394 | 265 |
Fair Value Asset | 4 | |
Fair Value Liability | (17) | |
PX MEG contracts [member] | Less than 1 year [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 320 | 1,303 |
Fair Value Liability | $ (28) | $ (131) |
Financial Instruments - Discl_5
Financial Instruments - Disclosure of Treasury Lock contracts (Detail) - Treasury Lock contracts [Member] - Less than 1 year [member] $ in Millions | Dec. 31, 2019MXN ($) |
Disclosure of detailed information about hedges [line items] | |
Notional | $ 10,365 |
Fair Value Asset | $ 102 |
Financial Instruments - Discl_6
Financial Instruments - Disclosure of Net Effects of Expired Contracts Met Hedging Criteria (Detail) - Derivative contracts that met hedging criteria [Member] - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cross-currency swaps [member] | Interest expense [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | $ 199 | $ 157 | $ 2,102 |
Cross-currency swaps [member] | Foreign exchange [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | 480 | 642 | |
Forward agreements to purchase foreign currency [member] | Foreign exchange [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | (116) | (87) | (40) |
Forward agreements to purchase foreign currency [member] | Cost of sales [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | (163) | 240 | 89 |
Commodity price contracts [Member] | Cost of sales [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | (391) | (258) | $ (6) |
Options to purchase foreign currency [Member] | Cost of sales [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | (63) | $ (8) | |
Interest rate swaps [member] | Interest expense [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | $ 515 |
Financial Instruments - Discl_7
Financial Instruments - Disclosure Of Net Effects Of Derivative Financial Instruments That Did Not Met Hedging Criteria (Detail) - Derivative Contract Not Met Hedging Criteria [member] - Unrealised Gain Losses on Derivative Financial Instruments [member] - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cross currency swaps [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivatives | $ (293) | $ (116) | $ 337 |
Forward agreements to purchase foreign currency [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivatives | $ 4 | $ 12 | $ 12 |
Financial Instruments - Discl_8
Financial Instruments - Disclosure of Net Effect of Expired Contracts Did Not Meet Hedging Criteria for Accounting Purposes (Detail) - Derivative financial instruments did not meet hedging criteria [member] - Market value gain on financial instruments [member] - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cross-currency swaps [member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | $ (293) | $ (186) | $ (104) |
Embedded Derivative [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Net effects derivative contracts hedging criteria | $ 4 | $ 1 |
Financial Instruments - Discl_9
Financial Instruments - Disclosure of Sensitivity Analysis of Market Risks Management (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FEMSA [member] | Forward agreements to purchase MXN currency against EUR [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (9.00%) | (12.00%) | (13.00%) |
Effect on Equity | $ (57) | $ (116) | $ (141) |
Change in Exchange Rate | 9.00% | 12.00% | 13.00% |
Effect on Equity | $ 57 | $ 116 | $ 141 |
FEMSA [member] | Forward agreements to purchase BRL currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (13.00%) | ||
Effect on Equity | $ (202) | ||
Change in Exchange Rate | 13.00% | ||
Effect on Equity | $ 202 | ||
FEMSA [member] | Forward agreements to purchase CLP currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (8.00%) | ||
Effect on Equity | $ (2) | ||
Change in Exchange Rate | 8.00% | ||
Effect on Equity | $ 2 | ||
FEMSA [member] | Cross currency swaps of CLP against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (11.00%) | (10.00%) | (8.00%) |
Effect on Profit or Loss | $ (546) | $ (368) | $ (373) |
Change in Exchange Rate | 11.00% | 10.00% | 8.00% |
Effect on Profit or Loss | $ 546 | $ 368 | $ 373 |
FEMSA [member] | Cross currency swaps of MXN against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (9.00%) | (13.00%) | (12.00%) |
Effect on Profit or Loss | $ (1,805) | $ (2,706) | $ (3,651) |
Change in Exchange Rate | 9.00% | 13.00% | 12.00% |
Effect on Profit or Loss | $ 1,805 | $ 2,706 | $ 3,651 |
FEMSA [member] | Cross Currency Swaps of COP Against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (10.00%) | (12.00%) | (9.00%) |
Effect on Profit or Loss | $ (286) | $ (283) | $ (304) |
Change in Exchange Rate | 10.00% | 12.00% | 9.00% |
Effect on Profit or Loss | $ 286 | $ 283 | $ 304 |
FEMSA [member] | Cross currency swaps Of MXN against BRL [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (13.00%) | (15.00%) | (14.00%) |
Effect on Profit or Loss | $ (177) | $ (27) | $ (23) |
Change in Exchange Rate | 13.00% | 15.00% | 14.00% |
Effect on Profit or Loss | $ 177 | $ 27 | $ 23 |
FEMSA [member] | Net Cash in Foreign Currency of Euro Against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (9.00%) | (12.00%) | (13.00%) |
Effect on Profit or Loss | $ (3,833) | $ (8,596) | $ (8,077) |
Change in Exchange Rate | 9.00% | 12.00% | 13.00% |
Effect on Profit or Loss | $ 3,833 | $ 8,596 | $ 8,077 |
Coca-Cola FEMSA [member] | Forward agreements to purchase MXN currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (9.00%) | (13.00%) | (12.00%) |
Effect on Equity | $ (739) | $ (668) | $ (626) |
Change in Exchange Rate | 9.00% | 13.00% | 12.00% |
Effect on Equity | $ 739 | $ 668 | $ 626 |
Coca-Cola FEMSA [member] | Forward agreements to purchase BRL currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (13.00%) | (16.00%) | (14.00%) |
Effect on Equity | $ (155) | $ (413) | $ (234) |
Change in Exchange Rate | 13.00% | 16.00% | 14.00% |
Effect on Equity | $ 155 | $ 413 | $ 234 |
Coca-Cola FEMSA [member] | Forward agreements to purchase UYU currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (5.00%) | (8.00%) | |
Effect on Equity | $ (23) | $ (46) | |
Change in Exchange Rate | 5.00% | 8.00% | |
Effect on Equity | $ 23 | $ 46 | |
Coca-Cola FEMSA [member] | Forward agreements to purchase COP currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (10.00%) | (12.00%) | (9.00%) |
Effect on Equity | $ (54) | $ (2) | $ (73) |
Change in Exchange Rate | 10.00% | 12.00% | 9.00% |
Effect on Equity | $ 54 | $ 2 | $ 73 |
Coca-Cola FEMSA [member] | Forward agreements to purchase ARS currency against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (25.00%) | (27.00%) | (10.00%) |
Effect on Equity | $ (88) | $ (522) | $ (29) |
Change in Exchange Rate | 25.00% | 27.00% | 10.00% |
Effect on Equity | $ 88 | $ 522 | $ 29 |
Coca-Cola FEMSA [member] | Cross currency swaps of MXN against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (9.00%) | (13.00%) | (12.00%) |
Effect on Equity | $ (2,315) | $ (3,130) | $ (3,540) |
Change in Exchange Rate | 9.00% | 13.00% | 12.00% |
Effect on Equity | $ 2,315 | $ 3,130 | $ 3,540 |
Coca-Cola FEMSA [member] | Cross currency swaps of BRL against USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (13.00%) | (16.00%) | (14.00%) |
Effect on Equity | $ (645) | $ (9,068) | $ (7,483) |
Change in Exchange Rate | 13.00% | 16.00% | 14.00% |
Effect on Equity | $ 645 | $ 9,068 | $ 7,483 |
Coca-Cola FEMSA [member] | Net Cash in Foreign Currency of USD [member] | Foreign currency risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Exchange Rate | (8.00%) | (13.00%) | (12.00%) |
Effect on Profit or Loss | $ (940) | $ (1,868) | $ (553) |
Change in Exchange Rate | 8.00% | 13.00% | 12.00% |
Effect on Profit or Loss | $ 940 | $ 1,868 | $ 553 |
Coca-Cola FEMSA [member] | Commodity Price Contracts of Sugar in USD [member] | Commodity price risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Rate | 24.00% | 30.00% | 30.00% |
Effect on Equity | $ (255) | $ (341) | $ (32) |
Coca-Cola FEMSA [member] | Commodity Price Contracts of Aluminium in USD [member] | Commodity price risk [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Change in Rate | 15.00% | 22.00% | |
Effect on Equity | $ (1,164) | $ (55) |
Financial Instruments - Summa_3
Financial Instruments - Summary of Sensitivity Analysis of Interest Rate Risks Management (Detail) - Interest rate risk [member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |
Interest rate swap [member] | FEMSA [member] | |||
Disclosure of Interest Rate Risk Exposure [line items] | |||
Change in Bps. | 100 | 100 | 100 |
Effect on Equity | $ (432) | $ (359) | $ (452) |
Interest rate swap [member] | Coca-Cola FEMSA [member] | |||
Disclosure of Interest Rate Risk Exposure [line items] | |||
Change in Bps. | 100 | 100 | 100 |
Effect on Equity | $ (37) | $ (1,976) | $ (234) |
Unhedged Portion Bank Loans [member] | |||
Disclosure of Interest Rate Risk Exposure [line items] | |||
Change in interest rate | 100 | 100 | 100 |
Effect on profit loss | $ (50) | $ 145 | $ (251) |
Financial Instruments - Summa_4
Financial Instruments - Summary of Maturity Analysis for Non-derivative and Derivative Financial Liabilities (Detail) $ in Millions | Dec. 31, 2019MXN ($) |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | $ 86,854 |
Less than 1 year [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | 10,655 |
Less than 1 year [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Notes and bonds | 10,598 |
Loans from banks | 5,745 |
Less than 1 year [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | IFRS 16 [Member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | 244 |
Less than 1 year [member] | Liquidity risk [member] | Derivative financial liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Derivative financial liabilities | 1,291 |
1-2 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Notes and bonds | 1,130 |
Loans from banks | 809 |
1-2 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | IFRS 16 [Member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | 153 |
1-2 years [member] | Liquidity risk [member] | Derivative financial liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Derivative financial liabilities | 1,337 |
2-3 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Notes and bonds | 1,154 |
Loans from banks | 902 |
2-3 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | IFRS 16 [Member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | 82 |
2-3 years [member] | Liquidity risk [member] | Derivative financial liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Derivative financial liabilities | 1,192 |
3-4 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Notes and bonds | 29,446 |
Loans from banks | 542 |
3-4 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | IFRS 16 [Member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | 35 |
3-4 years [member] | Liquidity risk [member] | Derivative financial liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Derivative financial liabilities | (1,011) |
4-5 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Notes and bonds | 600 |
Loans from banks | 4,711 |
4-5 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | IFRS 16 [Member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
IFRS 16 lease obligation | 13 |
4-5 years [member] | Liquidity risk [member] | Derivative financial liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Derivative financial liabilities | 671 |
Later than 5 years [member] | Liquidity risk [member] | Non-derivative Financial Liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Notes and bonds | 44,328 |
Later than 5 years [member] | Liquidity risk [member] | Derivative financial liabilities [member] | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [line items] | |
Derivative financial liabilities | $ (7,314) |
Financial Instruments - Summa_5
Financial Instruments - Summary of Financial Instruments to Hedge Exposure to Foreign Exchange Rates and Interest Rates (Detail) - Cash flow hedges [member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2019MXN ($)Tonlb | Dec. 31, 2018MXN ($)TonlbAge | Dec. 31, 2019USD ($) | |
1-6 months [member] | Commodity price risk [member] | Aluminium [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 276 | $ 189 | |
Average price | Ton | 1,796 | 1,975 | |
1-6 months [member] | Commodity price risk [member] | Sugar [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 1,192 | $ 725 | |
Average price | lb | 13.09 | 12.86 | |
1-6 months [member] | Commodity price risk [member] | PX+MEG [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 160 | $ 739 | |
Average price | Ton | 848 | 1,077 | |
1-6 months [member] | MXN/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 4,373 | $ 3,484 | |
Average exchage rate | 20 | 20.19 | |
1-6 months [member] | MXN/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 9,423 | ||
Average exchage rate | 19.54 | ||
1-6 months [member] | BRL/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 746 | $ 805 | |
Average exchage rate | 4.05 | 3.75 | |
1-6 months [member] | COP/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 220 | $ 429 | |
Average exchage rate | 3,491 | 2,851 | |
1-6 months [member] | COP/USD [member] | Foreign Exchange Currency Option Contracts [Member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 107 | ||
Average exchage rate | 3,252 | ||
1-6 months [member] | ARS/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 137 | $ 339 | |
Average exchage rate | 79.23 | 43.31 | |
1-6 months [member] | URY/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 335 | $ 196 | |
Average exchage rate | 37.55 | 32.9 | |
1-6 months [member] | MXN/EUR [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 1,022 | ||
Average exchage rate | 23.78 | ||
1-6 months [member] | Chilean peso [member] | Interest rate swaps [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 19 | ||
Average exchange rate | 6.45% | ||
Maturity 6-12 months [member] | Commodity price risk [member] | Aluminium [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 118 | $ 75,250 | |
Average price | Ton | 1,812 | 1,986 | |
Maturity 6-12 months [member] | Commodity price risk [member] | Sugar [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 361 | $ 498 | |
Average price | 12.73 | 13.11 | |
Maturity 6-12 months [member] | Commodity price risk [member] | PX+MEG [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 160 | $ 565 | |
Average price | Ton | 848 | 1,040 | |
Maturity 6-12 months [member] | MXN/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 2,086 | $ 683 | |
Average exchage rate | 20.20 | 20.75 | |
Maturity 6-12 months [member] | BRL/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 378 | $ 337 | |
Average exchage rate | 4.19 | 3.83 | |
Maturity 6-12 months [member] | BRL/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 4,365 | $ 4,652 | |
Average exchage rate | 3.41 | 3.36 | |
Maturity 6-12 months [member] | COP/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 85 | $ 63 | |
Average exchage rate | 3,460 | 2,976 | |
Maturity 6-12 months [member] | URY/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 87 | $ 159 | |
Average exchage rate | 40.03 | 33.97 | |
Maturity 6-12 months [member] | BRL/MXN [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 84 | $ 86 | |
Average exchage rate | 0.21 | 0.18 | |
Maturity 6-12 months [member] | CLP/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 3,007 | ||
Average exchage rate | 696.02 | ||
Maturity 6-12 months [member] | Brazilian reais [member] | Interest rate swaps [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 4,365 | $ 4,013 | |
Average exchage rate | 8.34 | ||
Average exchange rate | 6.29% | ||
More than 12 [member] | Commodity price risk [member] | Sugar [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 98 | ||
Average price | lb | 13.45 | ||
More than 12 [member] | MXN/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 18,428 | $ 31,172 | |
Average exchage rate | 15.93 | 16.08 | |
More than 12 [member] | BRL/USD [member] | Foreign exchange currency foward contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 267 | ||
Average exchage rate | 4.44 | ||
More than 12 [member] | BRL/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 9,140 | $ 18,042 | |
Average exchage rate | 4 | 3.59 | |
More than 12 [member] | COP/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 2,403 | $ 1,928 | |
Average exchage rate | 3,075 | 3,043.59 | |
More than 12 [member] | BRL/MXN [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 1,195 | $ 79 | |
Average exchage rate | 0.21 | 0.19 | |
More than 12 [member] | CLP/USD [member] | Foreign exchange currency swap contracts [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 1,371 | $ 3,725 | |
Average exchage rate | 677 | 693.10 | |
More than 12 [member] | Brazilian reais [member] | Interest rate swaps [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 8,594 | ||
Average exchange rate | 8.15% | ||
More than 12 [member] | Mexican peso [member] | Interest rate swaps [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 11,403 | $ 11,403 | |
Average exchage rate | 7.17 | ||
Average exchange rate | 7.17% | ||
More than 12 [member] | Chilean peso [member] | Interest rate swaps [member] | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Net exposure | $ 2,197 | $ 2,828 | |
Average exchage rate | 6.26 | ||
Average exchange rate | 5.56% |
Financial Instruments - Summa_6
Financial Instruments - Summary of Cash Flows Hedge Exposures (Detail) - Foreign exchange currency risk [member] - Purchase of stock [member] - MXN ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about hedged items [line items] | ||
Cash flow hedge reserve | $ 1 | |
Cash flow hedge costs | $ 22 | $ 11 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation Per Category of Equity Components and Analysis of OCI Components, Net of Tax Generated by Cash Flow Hedges (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about hedged items [line items] | |||
Taxes due to changes in reserves during the period | $ (391) | $ (293) | $ (191) |
Hedging reserve [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Balances at beginning of the period | 812 | ||
Taxes due to changes in reserves during the period | 363 | ||
Balances at the end of the period | (33) | 812 | |
Hedging reserve [member] | Foreign exchange currency risk [member] | Purchase of stock [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value changes | (333) | ||
Hedging reserve [member] | Foreign exchange currency risk [member] | Other stock [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value changes | (6,202) | ||
Hedging reserve [member] | Interest rate risk [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value changes | 5,327 | ||
Cost of hedging reserve [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Balances at beginning of the period | 12 | ||
Balances at the end of the period | $ 12 | ||
Cost of hedging reserve [member] | Foreign exchange currency risk [member] | Purchase of stock [member] | |||
Disclosure of detailed information about hedged items [line items] | |||
Fair value changes | $ (12) |
Non-Controlling Interest in C_2
Non-Controlling Interest in Consolidated Subsidiaries - Summary of Analysis of FEMSAs Non-Controlling Interest in its Consolidated Subsidiaries (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | |
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||
Non controlling interest | $ 73,762 | [1] | $ 3,911 | $ 78,489 | |
Coca-Cola FEMSA [member] | |||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||
Non controlling interest | 72,649 | 73,776 | |||
Other [Member] | |||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||
Non controlling interest | $ 1,113 | $ 4,713 | |||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Non-Controlling Interest in C_3
Non-Controlling Interest in Consolidated Subsidiaries - Summary of Changes in FEMSA's Non-Controlling Interest (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | ||||||
Balance at beginning of the period | $ 78,489 | |||||
Capitalization of issued shares to former owners of Vonpar in Coca-Cola FEMSA | $ 4,082 | |||||
Balance at end of the period | 73,762 | [1] | $ 3,911 | $ 78,489 | ||
Non-controlling interest [member] | ||||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | ||||||
Balance at beginning of the period | 78,489 | 86,621 | 74,266 | |||
Net income of non-controlling interest | 7,349 | 9,089 | (5,202) | |||
Other comprehensive income (loss): | (4,552) | (4,080) | 7,240 | |||
Exchange differences on translation of foreign operation | (3,833) | (4,016) | 7,349 | |||
Remeasurements of the net defined benefits liability | (271) | 155 | 30 | |||
Valuation of the effective portion of derivative financial instruments | (448) | (219) | (139) | |||
Dividends | (3,945) | (3,713) | (3,622) | |||
Share based payment | (12) | 31 | 50 | |||
Acquisition of Socofar non-controlling interest | (3,530) | |||||
Other acquisitions and remeasurements | 32 | 413 | (50) | |||
(Derecognition) contribution from non-controlling interest | (11,140) | 11,072 | ||||
Capitalization of issued shares to former owners of Vonpar in Coca-Cola FEMSA | 2,867 | |||||
Balance at end of the period | 73,762 | 78,489 | $ 86,621 | |||
Non-controlling interest [member] | IAS 29 [member] | ||||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | ||||||
Accounting standard adoption effects | 1,418 | |||||
Non-controlling interest [member] | Impact of adopting IFRIC 23 and IFRS 9 [member] | ||||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | ||||||
Accounting standard adoption effects | $ (69) | $ (150) | ||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Non-Controlling Interest in C_4
Non-Controlling Interest in Consolidated Subsidiaries - Summary of Non-Controlling Interest's Accumulated Other Comprehensive Income (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | [2] | Dec. 31, 2019USD ($) | [1] | ||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||||||
Remeasurements of the net defined benefits liability | $ (1,090) | $ (58) | $ 551 | $ (7) | |||||
Valuation of the effective portion of derivative financial instruments | (980) | $ (52) | (592) | $ (439) | |||||
Accumulated other comprehensive income | 685 | [3] | 9,053 | $ 36 | |||||
Non-controlling interest [member] | |||||||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||||||
Exchange differences on translation foreign operation | (699) | 3,134 | |||||||
Remeasurements of the net defined benefits liability | (390) | (119) | |||||||
Valuation of the effective portion of derivative financial instruments | (611) | (163) | |||||||
Accumulated other comprehensive income | $ (1,700) | $ 2,852 | |||||||
[1] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||||
[2] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 | ||||||||
[3] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 |
Non-Controlling Interest in C_5
Non-Controlling Interest in Consolidated Subsidiaries - Summary of Financial Information of Coca-Cola FEMSA (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | [3] | Dec. 31, 2019USD ($) | [2] | ||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||||||
Total current assets | $ 172,579 | [1] | $ 177,607 | $ 9,151 | |||||
Total non-current assets | 464,962 | [1] | 398,774 | 24,653 | |||||
Total current liabilities | 136,534 | [1] | 101,464 | 7,240 | |||||
Total non-current liabilities | 175,256 | [1] | 139,375 | $ 9,292 | |||||
Total revenue | 506,711 | [1] | $ 26,867 | [1] | 469,744 | $ 439,932 | |||
Consolidated net (loss) income for continuing operations | 28,048 | [1] | 1,488 | [1] | 29,713 | 33,481 | |||
Consolidated net income from discontinued operations | 3,366 | 3,726 | |||||||
Consolidated comprehensive income for continuing operations | 12,285 | 651 | 4,540 | 20,895 | |||||
Consolidated comprehensive income from discontinued operations | 4,804 | 1,790 | |||||||
Net cash flow generated from operating activities for continuing operations | 61,638 | [1] | 3,268 | [1] | 46,929 | 33,435 | |||
Net cash flow generated from operating activities from discontinued operations | 654 | 5,435 | |||||||
Net cash flow used in investing activities for continuing operations | 14,132 | [1] | 751 | [1] | 57,178 | (28,596) | |||
Net cash flow used in investing activities from discontinued operations | (962) | 2,820 | |||||||
Net cash flow used in financing activities for continuing operations | 38,433 | [1] | $ 2,040 | [1] | 23,011 | 21,054 | |||
Net cash flow used in financing activities from discontinued operations | (37) | $ (485) | |||||||
Coca-Cola FEMSA [member] | |||||||||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||||||||
Total current assets | 56,796 | 57,490 | |||||||
Total non-current assets | 201,043 | 206,297 | |||||||
Total current liabilities | 51,010 | 45,524 | |||||||
Total non-current liabilities | 77,144 | 86,513 | |||||||
Total revenue | 194,471 | 182,342 | |||||||
Consolidated net (loss) income for continuing operations | 12,630 | 11,704 | |||||||
Consolidated net income from discontinued operations | 3,366 | ||||||||
Consolidated comprehensive income for continuing operations | 5,489 | 3,563 | |||||||
Consolidated comprehensive income from discontinued operations | 3,056 | ||||||||
Net cash flow generated from operating activities for continuing operations | 31,289 | 27,581 | |||||||
Net cash flow generated from operating activities from discontinued operations | 1,308 | ||||||||
Net cash flow used in investing activities for continuing operations | (10,744) | (8,291) | |||||||
Net cash flow used in investing activities from discontinued operations | (962) | ||||||||
Net cash flow used in financing activities for continuing operations | $ (22,794) | (14,235) | |||||||
Net cash flow used in financing activities from discontinued operations | $ (37) | ||||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Non-Controlling Interest in C_6
Non-Controlling Interest in Consolidated Subsidiaries - Additional Information (Detail) | Dec. 13, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Grupo Socofar [member] | |||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||
Percentage of ownership in subsidiary | 40.00% | 100.00% | 60.00% |
FEMSA Comercio Health Division [member] | |||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||
Interest not held by non controlling interest | 40.00% | ||
Description of option contract with noncontrolling interest | (i) 42-months after the initial acquisition, upon the occurrence of certain events and (ii) 60 months after the initial acquisition, in any event, FEMSA Comercio – Health Division can call the remaining 40% non-controlling interest beginning on the seventh | ||
Solistica [member] | |||
Disclosure Of Non Controlling Interest In Consolidated Subsidiaries [line items] | |||
Description of option contract with noncontrolling interest | (i) at any time after the acquisition date upon the occurrence of certain events and (ii) annually from January through April, after the third anniversary of the acquisition date. In any event, the Company through one of its subsidiaries can call the remaining 20% non-controlling | ||
Interest held by non controlling interest | 20.00% |
Equity - Additional Information
Equity - Additional Information (Detail) - MXN ($) $ in Millions | Nov. 05, 2019 | Nov. 01, 2019 | May 07, 2019 | May 03, 2019 | Nov. 06, 2018 | Nov. 01, 2018 | May 04, 2018 | May 03, 2018 | Nov. 03, 2017 | Nov. 01, 2017 | May 05, 2017 | May 03, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 22, 2019 | Mar. 14, 2019 | Mar. 16, 2018 | Mar. 09, 2018 | Dec. 31, 2017 | Mar. 16, 2017 |
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Capital stock issued | 3,578,226,270 | |||||||||||||||||||
Common stock outstanding | 17,891,131,350 | 17,891,131,350 | ||||||||||||||||||
Fixed capital stock amounts | $ 300 | $ 300 | ||||||||||||||||||
Description of variable capital amount | the variable capital may not exceed 10 times the minimum fixed capital stock amount. | the variable capital may not exceed 10 times the minimum fixed capital stock amount. | ||||||||||||||||||
Reserve distributed as stock dividend | $ 596 | $ 596 | ||||||||||||||||||
Total CUFIN balance amount | $ 225,589 | |||||||||||||||||||
Description for dividend payable | Dividends distributed to its stockholders who are individuals and foreign residents must withhold 10% for LISR purposes, which will be paid in Mexico. | |||||||||||||||||||
Repurchased shares | $ 0 | $ 0 | $ 0 | |||||||||||||||||
BD units [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Capital stock issued | 2,161,177,770 | |||||||||||||||||||
Common stock outstanding | 10,805,888,850 | |||||||||||||||||||
B units [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Capital stock issued | 1,417,048,500 | |||||||||||||||||||
Common stock outstanding | 7,085,242,500 | |||||||||||||||||||
Series B shares [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Voting rights for common stock holder | unlimited | |||||||||||||||||||
Minimum percentage for voting | 51.00% | |||||||||||||||||||
Series L shares [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Voting rights for common stock holder | limited | |||||||||||||||||||
Maximum percentage for voting right | 25.00% | |||||||||||||||||||
Series D shares [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Voting rights for common stock holder | limited | |||||||||||||||||||
Maximum percentage for voting right | 49.00% | |||||||||||||||||||
Sub series D-L shares [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Maximum percentage for voting right | 25.00% | |||||||||||||||||||
Non cumulative premium [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Dividend payable | 125.00% | |||||||||||||||||||
Top of range [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Debt to earnings before interest, taxes, depreciation and amortization ratio | 1.50% | |||||||||||||||||||
Ordinary shares [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Dividend approved to be paid | $ 9,692 | $ 9,220 | $ 8,636 | |||||||||||||||||
Percentage of dividend paid | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||||||
Maximum reserve for share purchase | $ 7,000 | $ 7,000 | $ 7,000 | |||||||||||||||||
Ordinary shares [member] | Non-controlling interest [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Dividend approved to be paid | $ 3,925 | $ 3,713 | $ 3,622 | |||||||||||||||||
Ordinary shares [member] | Coca Cola FEMSA [member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Dividend approved to be paid | $ 7,437 | $ 7,038 | $ 6,991 | |||||||||||||||||
Percentage of dividend paid | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock (Detail) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | ||
Units | 3,578,226,270 | |
Series "B" | 9,246,420,270 | |
Series "D" | 8,644,711,080 | |
Subseries "D-B" | 4,322,355,540 | |
Subseries "D-L" | 4,322,355,540 | |
Total shares | 17,891,131,350 | 17,891,131,350 |
B units [member] | ||
Disclosure of classes of share capital [line items] | ||
Units | 1,417,048,500 | |
Series "B" | 7,085,242,500 | |
Total shares | 7,085,242,500 | |
BD units [member] | ||
Disclosure of classes of share capital [line items] | ||
Units | 2,161,177,770 | |
Series "B" | 2,161,177,770 | |
Series "D" | 8,644,711,080 | |
Subseries "D-B" | 4,322,355,540 | |
Subseries "D-L" | 4,322,355,540 | |
Total shares | 10,805,888,850 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared and Paid (Detail) - MXN ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | |||
Dividend declared and paid | $ 9,692 | $ 9,220 | $ 8,636 |
Series B shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Dividend declared and paid per share | $ 0.48333 | $ 0.45980 | |
Series D shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Dividend declared and paid per share | $ 0.60417 | $ 0.57480 | |
Coca Cola FEMSA [member] | |||
Disclosure of classes of share capital [line items] | |||
Dividend declared and paid | $ 7,437 | $ 7,038 | $ 6,991 |
Earnings per Share - Summary of
Earnings per Share - Summary of Calculation of Basic and Diluted Earnings Per Share Amounts (Detail) $ / shares in Units, shares in Thousands, $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019MXN ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018MXN ($)$ / sharesshares | Dec. 31, 2017MXN ($)$ / sharesshares | ||||
Earnings per share [line items] | |||||||
Net controlling interest income allocated from continuing operations | $ 20,699 | [1] | $ 1,098 | [1],[2] | $ 22,560 | $ 40,864 | [3] |
Net controlling interest income allocated from discontinued operations | $ | $ 1,430 | $ 1,545 | [3] | ||||
Series B shares [member] | |||||||
Earnings per share [line items] | |||||||
Weighted average number of shares for basic earnings per share | shares | 9,244,160 | 9,244,160 | 9,243,810 | 9,243,140 | |||
Effect of dilution associated with non-vested shares for share based payment plans | shares | 2,260 | 2,260 | 2,610 | 3,290 | |||
Weighted average number of shares adjusted for the effect of dilution (Shares outstanding) | shares | 9,246,420 | 9,246,420 | 9,246,420 | 9,246,420 | |||
Dividend rights per series (see Note 22.1) | 100.00% | 100.00% | 100.00% | 100.00% | |||
Weighted average number of shares further adjusted to reflect dividend rights | shares | 9,246,420 | 9,246,420 | 9,246,420 | 9,246,420 | |||
Basic earnings per share from continuing operations | $ / shares | $ 1.03 | $ 1.13 | $ 2.04 | ||||
Basic earnings per share from discontinued operations | $ / shares | 0.07 | 0.08 | |||||
Diluted earnings per share from continuing operations | $ / shares | $ 1.03 | 1.13 | 2.04 | ||||
Diluted earnings per share from discontinued operations | $ / shares | $ 0.07 | $ 0.08 | |||||
Allocation of earnings, weighted | 46.11% | 46.11% | 46.11% | 46.11% | |||
Net controlling interest income allocated from continuing operations | $ | $ 9,545 | $ 10,403 | $ 18,842 | ||||
Net controlling interest income allocated from discontinued operations | $ | $ 660 | $ 713 | |||||
Series D shares [member] | |||||||
Earnings per share [line items] | |||||||
Weighted average number of shares for basic earnings per share | shares | 8,635,650 | 8,635,650 | 8,634,260 | 8,631,570 | |||
Effect of dilution associated with non-vested shares for share based payment plans | shares | 9,060 | 9,060 | 10,450 | 13,140 | |||
Weighted average number of shares adjusted for the effect of dilution (Shares outstanding) | shares | 8,644,710 | 8,644,710 | 8,644,710 | 8,644,710 | |||
Dividend rights per series (see Note 22.1) | 125.00% | 125.00% | 125.00% | 125.00% | |||
Weighted average number of shares further adjusted to reflect dividend rights | shares | 10,805,890 | 10,805,890 | 10,805,890 | 10,805,890 | |||
Basic earnings per share from continuing operations | $ / shares | $ 1.29 | $ 1.41 | $ 2.55 | ||||
Basic earnings per share from discontinued operations | $ / shares | 0.09 | 0.10 | |||||
Diluted earnings per share from continuing operations | $ / shares | $ 1.29 | 1.41 | 2.55 | ||||
Diluted earnings per share from discontinued operations | $ / shares | $ 0.09 | $ 0.10 | |||||
Allocation of earnings, weighted | 53.89% | 53.89% | 53.89% | 53.89% | |||
Net controlling interest income allocated from continuing operations | $ | $ 11,154 | $ 12,157 | $ 22,021 | ||||
Net controlling interest income allocated from discontinued operations | $ | $ 770 | $ 832 | |||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Taxes - Additional Information
Taxes - Additional Information (Detail) $ in Millions | Jan. 01, 2020MXN ($) | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 01, 2018 | Oct. 19, 2017 | Jan. 01, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2022 | Jan. 01, 2021 | Dec. 23, 2019 | Nov. 28, 2019 |
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
NOLs usage limit | 30.00% | 30.00% | ||||||||||||||||||||
Withholding taxes associated with payment of dividends | $ 49,255 | $ 0 | $ 45,305 | $ 0 | $ 41,915 | $ 0 | ||||||||||||||||
Income tax recoveries | $ 4,223 | $ 2,361 | ||||||||||||||||||||
Income tax rate | 8.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | ||||||||||||||
Applicable tax rate | 8.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | ||||||||||||||
Foreign Nonresidents Individuals And Companies [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of Increase in dividend tax | 100.00% | |||||||||||||||||||||
NonCarbonated Beverages [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of exercise tax | 5.00% | |||||||||||||||||||||
Percentage of federal production and sales taxes | 16.30% | 16.30% | ||||||||||||||||||||
Bottom of range [member] | Colombian resident individuals [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of Increase in dividend tax | 10.00% | |||||||||||||||||||||
Bottom of range [member] | Foreign Nonresidents Individuals And Companies [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of Increase in dividend tax | 7.50% | |||||||||||||||||||||
Bottom of range [member] | Carbonated Beverages [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of increase in excise tax | 5.00% | |||||||||||||||||||||
Top of range [member] | Colombian resident individuals [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of Increase in dividend tax | 15.00% | |||||||||||||||||||||
Top of range [member] | Foreign Nonresidents Individuals And Companies [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of Increase in dividend tax | 10.00% | |||||||||||||||||||||
Top of range [member] | Carbonated Beverages [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of increase in excise tax | 7.00% | |||||||||||||||||||||
Argentina [member] | 1-4 months [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of reduction in excise tax | 4.00% | 20.00% | ||||||||||||||||||||
Colombia [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 33.00% | 33.00% | ||||||||||||||||||||
Minimum assumed income tax rate | 3.50% | 3.50% | ||||||||||||||||||||
New tax on dividends paid to non-resident stockholders and resident individuals | 5.00% | 7.50% | 7.50% | 5.00% | 5.00% | |||||||||||||||||
Percentage of reform extra income tax rate | 4.00% | 4.00% | 6.00% | 6.00% | ||||||||||||||||||
Income tax rate | 9.00% | 9.00% | 9.00% | 8.00% | 8.00% | 6.00% | 5.00% | |||||||||||||||
Applicable tax rate | 9.00% | 9.00% | 9.00% | 8.00% | 8.00% | 6.00% | 5.00% | |||||||||||||||
Colombia [member] | Coca Cola Fomento Economico Mexicano SABde CV [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Effect of unused tax losses | $ 2 | $ 2 | ||||||||||||||||||||
Colombia [member] | Less than 1 year [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 32.00% | 32.00% | ||||||||||||||||||||
Colombia [member] | Later than one year [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 31.00% | 31.00% | ||||||||||||||||||||
Percentage of reform income tax rate | 33.00% | |||||||||||||||||||||
Colombia [member] | Later than two year [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of reform income tax rate | 30.00% | 30.00% | ||||||||||||||||||||
Colombia [member] | Bottom of range [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of special increase in income tax rate | 15.00% | 15.00% | ||||||||||||||||||||
Colombia [member] | Bottom of range [member] | Less than 1 year [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 34.00% | |||||||||||||||||||||
Colombia [member] | Top of range [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 35.00% | |||||||||||||||||||||
Percentage of special increase in income tax rate | 20.00% | 20.00% | ||||||||||||||||||||
MX [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 30.00% | |||||||||||||||||||||
Applicable tax rate | 30.00% | |||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 30.00% | |||||||||||||||||||||
Applicable tax rate | 30.00% | |||||||||||||||||||||
Percentage of decrease in income tax | 0.00% | |||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Bottom of range [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of decrease in income tax | 0.50% | |||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Top of range [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of decrease in income tax | 1.50% | |||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Argentina [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
New tax on dividends paid to non-resident stockholders and resident individuals | 7.00% | 13.00% | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||||||||||
Percentage of reduction in excise tax | 4.00% | |||||||||||||||||||||
Income tax rate | 25.00% | 30.00% | 30.00% | 35.00% | 35.00% | |||||||||||||||||
Applicable tax rate | 25.00% | 30.00% | 30.00% | 35.00% | 35.00% | |||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Argentina [member] | Sales taxes in the province of Buenos Aires [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 1.50% | 1.50% | 1.75% | 1.75% | ||||||||||||||||||
Applicable tax rate | 1.50% | 1.50% | 1.75% | 1.75% | ||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Argentina [member] | Sales Tax in City of Buenos Aires [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 0.00% | 0.50% | 1.00% | 1.50% | 1.50% | 2.00% | 2.00% | 1.00% | 1.00% | |||||||||||||
Applicable tax rate | 0.00% | 0.50% | 1.00% | 1.50% | 1.50% | 2.00% | 2.00% | 1.00% | 1.00% | |||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Argentina [member] | 1-6 months [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Percentage of reduction in excise tax | 8.00% | |||||||||||||||||||||
Percentage of increase in excise tax | 12.00% | 4.00% | ||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Colombia [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Minimum assumed income tax rate | 1.50% | |||||||||||||||||||||
Municipality sales tax credited against payable income tax | 100.00% | 50.00% | 50.00% | |||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | Costa Rica [member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Value-added tax | 13.00% | |||||||||||||||||||||
Percentage of capital gains | 15.00% | |||||||||||||||||||||
Percentage of withholding taxes on salaries of employees | 25.00% | |||||||||||||||||||||
Percentage of withholding taxes on compensations of employees | 20.00% | |||||||||||||||||||||
Percentage of tax rate that exceeds EBITDA | 20.00% | |||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | MX [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Threshold limit on deductible interest | $ 20,000,000 | |||||||||||||||||||||
Expiration term of nondeductible interest exceeding limit | 10 years | |||||||||||||||||||||
Excise tax per litre | 1.17 | |||||||||||||||||||||
Excise tax rate | 2,500 | |||||||||||||||||||||
Changes in tax rates or tax laws enacted or announced [member] | AR [Member] | ||||||||||||||||||||||
Disclosure of income taxes [Line Items] | ||||||||||||||||||||||
Income tax rate | 30.00% | 30.00% | ||||||||||||||||||||
Applicable tax rate | 30.00% | 30.00% | ||||||||||||||||||||
Corporate income tax rate | 30.00% | |||||||||||||||||||||
Dividend withholding tax | 7.00% | 7.00% | ||||||||||||||||||||
Percentage on adjustments for current tax of prior periods | 100.00% |
Taxes - Summary of Major Compon
Taxes - Summary of Major Components of Income Tax Expense (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1],[2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |||
Major components of tax expense (income) [abstract] | |||||||
Current tax expense | $ 11,652 | $ 10,480 | $ 18,592 | ||||
Deferred tax expense (income): | |||||||
Origination and reversal of temporary differences | 127 | 491 | (7,546) | ||||
(Recognition) of tax losses, net | (1,201) | (927) | (823) | ||||
Change in the statutory rate | (102) | 125 | (10) | ||||
Total deferred tax income expense (benefit) | (1,176) | (311) | (8,379) | ||||
Total income taxes | $ 10,476 | [1] | $ 555 | $ 10,169 | $ 10,213 | [3] | |
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Taxes - Schedule of Recognized
Taxes - Schedule of Recognized in Consolidated Statement of Other Comprehensive Income (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Unrealized loss on cash flow hedges | $ (391) | $ (293) | $ (191) |
Exchange differences on translation of foreign operations | (1,667) | (2,647) | 387 |
Remeasurements of the net defined benefit liability | (371) | 287 | (154) |
Share of the other comprehensive income of equity accounted investees | 288 | 989 | (1,465) |
Total income tax benefit recognized in OCI | $ (2,141) | $ (1,664) | $ (1,423) |
Taxes - Schedule of Domestic Ta
Taxes - Schedule of Domestic Tax Rate (Detail) | Oct. 19, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Major components of tax expense (income) [abstract] | |||||
Mexican statutory income tax rate | 8.00% | 30.00% | 30.00% | 30.00% | 30.00% |
Difference between book and tax inflationary values and translation effects | (2.20%) | (4.00%) | (5.70%) | ||
Annual inflation tax adjustment | 0.20% | (1.20%) | 0.50% | ||
Difference between statutory income tax rates | 0.90% | 1.80% | 1.20% | ||
Repatriation of capital benefit decree | (22.60%) | ||||
Non-deductible expenses | 4.50% | 3.20% | 2.60% | ||
Non-taxable income | (1.00%) | (0.50%) | |||
Effect of changes in Argentina tax law | (0.30%) | (0.90%) | |||
Income tax credits | (2.00%) | ||||
Venezuela deconsolidation effect | 28.60% | ||||
Others | 0.30% | 1.80% | (4.10%) | ||
Total | 32.40% | 30.20% | 28.60% |
Taxes - Schedule of Deferred In
Taxes - Schedule of Deferred Income Tax (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2016MXN ($) | |||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | $ (13,575) | $ (10,657) | $ (9,720) | $ (1,016) | ||||
Deferred tax asset | (20,521) | [1] | (16,543) | $ (1,088) | ||||
Deferred tax liability | 6,946 | [1] | 5,886 | $ 368 | ||||
Deferred income tax related to consolidated statement of income | (1,583) | (296) | (8,355) | |||||
Deferred tax income net recorded in share of the profit of equity accounted investees | 407 | (15) | (24) | |||||
Deferred tax income, net | (1,176) | (311) | (8,379) | |||||
Allowance for doubtful accounts [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (437) | (416) | ||||||
Deferred income tax related to consolidated statement of income | (43) | 93 | 16 | |||||
Inventory [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | 76 | 80 | ||||||
Deferred income tax related to consolidated statement of income | (6) | (27) | (71) | |||||
Other current assets [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | 256 | 75 | ||||||
Deferred income tax related to consolidated statement of income | 182 | (31) | 34 | |||||
Property, plant and equipment [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (4,068) | (3,841) | ||||||
Deferred income tax related to consolidated statement of income | (320) | (851) | (2,349) | |||||
Investments in equity accounted investees [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (5,482) | (5,979) | ||||||
Deferred income tax related to consolidated statement of income | 7 | 40 | (5,094) | |||||
Other assets [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | 137 | 212 | ||||||
Deferred income tax related to consolidated statement of income | 59 | (82) | (155) | |||||
Finite useful lived intangible assets [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (111) | 271 | ||||||
Deferred income tax related to consolidated statement of income | (345) | 627 | 207 | |||||
Indefinite lived intangible assets [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | 10,788 | 10,331 | ||||||
Deferred income tax related to consolidated statement of income | 1,220 | 758 | 968 | |||||
Post-employment and other long-term employee benefits [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (1,067) | (1,058) | ||||||
Deferred income tax related to consolidated statement of income | (2) | (148) | (77) | |||||
Derivative financial instruments [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (9) | 21 | ||||||
Deferred income tax related to consolidated statement of income | (31) | (63) | (171) | |||||
Provisions [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (1,216) | (2,761) | ||||||
Deferred income tax related to consolidated statement of income | 1,359 | 1,122 | (636) | |||||
Temporary non-deductible provision [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (3,183) | (1,400) | ||||||
Deferred income tax related to consolidated statement of income | (1,797) | (293) | (144) | |||||
Employee profit sharing payable [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (430) | (403) | ||||||
Deferred income tax related to consolidated statement of income | 8 | (27) | (11) | |||||
Tax loss carry forwards [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (10,309) | (9,558) | ||||||
Deferred income tax related to consolidated statement of income | (1,201) | (927) | (547) | |||||
Tax credits to recover [Member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | [3] | (1,855) | (1,855) | |||||
Deferred income tax related to consolidated statement of income | [3] | (122) | (109) | (1,059) | ||||
Other comprehensive income [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | [4] | (596) | 229 | |||||
Deferred income tax related to consolidated statement of income | [4] | 29 | (54) | (224) | ||||
Exchange differences on translation of foreign operations in OCI [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | 3,959 | 5,202 | ||||||
Other liabilities [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | 533 | 193 | ||||||
Deferred income tax related to consolidated statement of income | (3) | $ (324) | $ 948 | |||||
Right of use assets from leases [member] | ||||||||
Disclosure of income taxes [Line Items] | ||||||||
Deferred income taxes, net | (561) | |||||||
Deferred income tax related to consolidated statement of income | $ (577) | |||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||
[3] | Correspond to income tax credits arising from dividends received from foreign subsidiaries to be recovered within the next ten years accordingly to the Mexican Income Tax law as well as effects of the exchange of foreign currencies with a related and non-related parties. | |||||||
[4] | Deferred tax related to derivative financial instruments and remeasurements of the net defined benefit liability. |
Taxes - Schedule of Deferred _2
Taxes - Schedule of Deferred Income Tax (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of income taxes [Line Items] | |
Deferred tax recovery period | 10 years |
Taxes - Schedule of Deferred Ta
Taxes - Schedule of Deferred Tax related to Other Comprehensive Income (AOCI) (Detail) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Major components of tax expense (income) [abstract] | ||
Unrealized loss on derivative financial instruments | $ (36) | $ 361 |
Remeasurements of the net defined benefit liability | (560) | (132) |
Total deferred tax loss related to AOCI | $ (596) | $ 229 |
Taxes - Schedule of Changes in
Taxes - Schedule of Changes in Net Deferred Income Tax Asset (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Balance at the beginning of the period | $ (10,657) | $ (9,720) | $ (1,016) |
Deferred tax provision for the period | (1,176) | (311) | (8,218) |
Deferred tax income net recorded in share of the profit of equity accounted investees | (406) | 165 | (67) |
Acquisition of subsidiaries | (382) | (316) | (367) |
Unrealized (gain) on cash flow hedges | (391) | (445) | (83) |
Exchange differences on translation of foreign operations | (2,121) | (1,762) | (1,472) |
Remeasurements of the net defined benefit liability | (204) | 543 | 131 |
Retained earnings of equity accounted investees | 384 | 54 | (38) |
Cash flow hedges in foreign investments | 425 | 310 | (540) |
Restatement effect of the period and beginning balances associated with hyperinflationary economies | 953 | 438 | 1,689 |
Disposal of subsidiaries | 387 | ||
Deconsolidation of subsidiaries | 261 | ||
Balance at the end of the period | $ (13,575) | $ (10,657) | $ (9,720) |
Taxes - Schedule of Tax Loss Ca
Taxes - Schedule of Tax Loss Carryforwards (Detail) $ in Millions | Dec. 31, 2019MXN ($) |
Major components of tax expense (income) [abstract] | |
2020 | $ 825 |
2021 | 351 |
2022 | 221 |
2023 | 227 |
2024 | 610 |
2025 | 4,876 |
2026 | 4,706 |
2027 | 35 |
2028 | 2,247 |
2029 and thereafter | 3,984 |
No expiration (Brazil and Colombia) | 14,454 |
Tax Loss Carryforwards | $ 32,536 |
Taxes - Schedule of Changes i_2
Taxes - Schedule of Changes in Balance of Tax Loss Carryforwards (Detail) - MXN ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Major components of tax expense (income) [abstract] | ||
Balance at beginning of the period | $ 29,941 | $ 29,487 |
Derecognized | (377) | (306) |
Additions | 7,194 | 4,124 |
Usage of tax losses | (2,947) | (1,385) |
Translation effect of beginning balances | (1,275) | (1,979) |
Balance at end of the period | $ 32,536 | $ 29,941 |
Other Liabilities, Provisions_3
Other Liabilities, Provisions, Contingencies and Commitments - Other Current Financial Liabilities (Detail) $ in Millions, $ in Millions | Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [3] | Dec. 31, 2018MXN ($) | ||
Disclosure of financial liabilities [abstract] | ||||||
Sundry creditors | $ 11,509 | $ 8,489 | ||||
Derivative financial instruments (see Note 21) | 848 | 384 | ||||
Other notes payable | [1] | 11,294 | ||||
Others | 4 | 20 | ||||
Total | $ 23,655 | [2] | $ 1,254 | $ 8,893 | ||
[1] | Related to Socofar’s put option exercized on December 13, 2019. | |||||
[2] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||
[3] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 |
Other Liabilities, Provisions_4
Other Liabilities, Provisions, Contingencies and Commitments - Schedule of Provisions and Other Non-Current Liabilities (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial liabilities [abstract] | ||
Contingencies | $ 8,854 | $ 9,928 |
Payable taxes | 710 | 873 |
Others | 879 | 767 |
Total | $ 10,443 | $ 11,568 |
Other Liabilities, Provisions_5
Other Liabilities, Provisions, Contingencies and Commitments - Other Financial Liabilities (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial liabilities [line items] | ||
Other financial liabilities | $ 2,481 | $ 2,232 |
Derivative financial instruments [Member] | ||
Disclosure of financial liabilities [line items] | ||
Other financial liabilities | 1,672 | 1,262 |
Security deposits [Member] | ||
Disclosure of financial liabilities [line items] | ||
Other financial liabilities | $ 809 | $ 970 |
Other Liabilities, Provisions_6
Other Liabilities, Provisions, Contingencies and Commitments - Nature and Amount of Loss Contingencies (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||||
Provisions | $ 8,854 | $ 9,928 | ||
Indirect taxes [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Provisions | 5,062 | 5,421 | $ 6,836 | $ 11,065 |
Labor [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Provisions | 2,455 | 2,601 | 2,723 | 2,578 |
Legal [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Provisions | $ 1,337 | $ 1,906 | $ 3,296 | $ 2,785 |
Other Liabilities, Provisions_7
Other Liabilities, Provisions, Contingencies and Commitments - Changes in Balance of Provisions Recorded (Detail) - MXN ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial liabilities [line items] | |||
Balance at beginning of the period | $ 9,928 | ||
Balance at end of the period | 8,854 | $ 9,928 | |
Indirect taxes [member] | |||
Disclosure of financial liabilities [line items] | |||
Balance at beginning of the period | 5,421 | 6,836 | $ 11,065 |
Penalties and other charges | 1 | 123 | 362 |
New contingencies | 486 | 178 | 91 |
Contingencies added in business combination | 104 | 861 | |
Cancellation and expiration | (247) | 106 | (796) |
Payments | (174) | (112) | (947) |
Brazil amnesty adoption | (3,321) | ||
Effects of changes in foreign exchange rates | (425) | (951) | (479) |
Effects due to derecognition of Philippines | (863) | ||
Balance at end of the period | 5,062 | 5,421 | 6,836 |
Labor [member] | |||
Disclosure of financial liabilities [line items] | |||
Balance at beginning of the period | 2,601 | 2,723 | 2,578 |
Penalties and other charges | 293 | 310 | 56 |
New contingencies | 521 | 330 | 283 |
Contingencies added in business combination | 44 | 289 | |
Cancellation and expiration | (283) | (133) | (32) |
Payments | (500) | (193) | (92) |
Effects of changes in foreign exchange rates | (221) | (725) | (69) |
Venezuela deconsolidation effect | (1) | ||
Balance at end of the period | 2,455 | 2,601 | 2,723 |
Legal [member] | |||
Disclosure of financial liabilities [line items] | |||
Balance at beginning of the period | 1,906 | 3,296 | 2,785 |
Penalties and other charges | 94 | 86 | 121 |
New contingencies | 213 | 72 | 186 |
Contingencies added in business combination | 77 | 67 | 783 |
Cancellation and expiration | (542) | (146) | (16) |
Payments | (318) | (251) | (417) |
Brazil amnesty adoption | 7 | ||
Effects of changes in foreign exchange rates | (93) | (335) | (151) |
Venezuela deconsolidation effect | (2) | ||
Effects due to derecognition of Philippines | (883) | ||
Balance at end of the period | $ 1,337 | $ 1,906 | $ 3,296 |
Other Liabilities, Provisions_8
Other Liabilities, Provisions, Contingencies and Commitments - Additional Information (Detail) - MXN ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Disclosure of financial liabilities [line items] | ||||
Aggregate amount claimed against company | $ 81,683 | |||
Capital Commitments | $ 556 | |||
Brazil [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Tax contingencies amount | 53,937 | |||
Litigation amount | 10,471 | $ 7,739 | $ 9,433 | |
Coca-Cola FEMSA [member] | ICMS [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Tax contingencies amount | 10,378 | |||
Coca-Cola FEMSA [member] | Tax credits [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Tax contingencies amount | 34,102 | |||
Coca-Cola FEMSA [member] | Federal taxes [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Tax contingencies amount | 6,274 | |||
Coca-Cola FEMSA [member] | Value added tax [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Tax contingencies amount | $ 3,183 |
Information by Segment - Summar
Information by Segment - Summary of Inter Segment Policies for Segment (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2019USD ($) | [2] | |||
Disclosure of operating segments [line items] | |||||||||
Total revenues | $ 506,711 | [1] | $ 26,867 | [1] | $ 469,744 | $ 439,932 | [3] | ||
Gross profit | 191,481 | [1] | 10,153 | [1] | 175,170 | 162,090 | [3] | ||
Administrative expenses | 19,930 | [1] | 1,057 | [1] | 17,313 | 15,222 | [3] | ||
Selling expenses | 121,871 | [1] | 6,462 | [1] | 114,573 | 105,880 | [3] | ||
Other income | 1,013 | [1] | 54 | [1] | 673 | 31,951 | [3] | ||
Other expenses | 4,905 | [1] | 260 | [1] | 2,947 | 33,866 | [3] | ||
Interest expense | 14,133 | [1] | 749 | [1] | 9,825 | 11,092 | [3] | ||
Interest income | 3,168 | 2,832 | 1,470 | ||||||
Other net finance loss | (2,527) | (387) | 6,320 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 32,296 | 33,630 | 35,771 | ||||||
Income taxes | 10,476 | [1] | 555 | [1] | 10,169 | 10,213 | [3] | ||
Share of the profit of equity accounted investees, net of tax | 6,228 | [1] | 330 | [1] | 6,252 | 7,923 | [3] | ||
Net income from continuing operations | 28,048 | [1] | 1,488 | [1] | 29,713 | 33,481 | [3] | ||
Net income from discontinued operations | 3,366 | 3,726 | [3] | ||||||
Consolidated net income | 28,048 | [1] | $ 1,488 | 33,079 | 37,207 | [3] | |||
Depreciation and amortization | 25,810 | 17,237 | 15,640 | ||||||
Non-cash items other than depreciation and amortization | 2,495 | 1,645 | 2,264 | ||||||
Investments in equity accounted investees | 97,470 | [1] | 94,315 | 96,097 | $ 5,168 | ||||
Total assets | 637,541 | [1] | 576,381 | 588,541 | 33,804 | ||||
Total liabilities | 311,790 | [1] | 240,839 | 251,629 | $ 16,532 | ||||
Investments in fixed assets | 25,579 | 24,266 | 23,486 | ||||||
Operating segments [member] | Coca-Cola FEMSA [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 194,471 | 182,342 | 183,256 | ||||||
Gross profit | 87,507 | 83,938 | 83,508 | ||||||
Interest expense | 6,904 | 7,568 | 8,778 | ||||||
Interest income | 1,230 | 1,004 | 791 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 18,409 | 17,190 | (11,255) | ||||||
Income taxes | 5,648 | 5,260 | 4,184 | ||||||
Share of the profit of equity accounted investees, net of tax | (131) | (226) | 60 | ||||||
Depreciation and amortization | 10,642 | 10,028 | 9,632 | ||||||
Non-cash items other than depreciation and amortization | 1,083 | 755 | 1,663 | ||||||
Investments in equity accounted investees | 9,751 | 10,518 | 11,501 | ||||||
Total assets | 257,841 | 263,787 | 285,677 | ||||||
Total liabilities | 128,154 | 132,037 | 144,967 | ||||||
Investments in fixed assets | 11,465 | 11,069 | 12,917 | ||||||
Operating segments [member] | FEMSA comercio proximity division [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 184,810 | 167,458 | 149,833 | ||||||
Gross profit | 75,099 | 65,529 | 56,127 | ||||||
Interest expense | 5,733 | 1,806 | 1,313 | ||||||
Interest income | 338 | 372 | 306 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 11,458 | 13,335 | 11,723 | ||||||
Income taxes | 923 | 1,124 | 762 | ||||||
Share of the profit of equity accounted investees, net of tax | 9 | (17) | 5 | ||||||
Depreciation and amortization | 9,604 | 4,971 | 4,144 | ||||||
Non-cash items other than depreciation and amortization | 529 | 367 | 285 | ||||||
Investments in equity accounted investees | 3,719 | 84 | 642 | ||||||
Total assets | 117,229 | 75,146 | 64,717 | ||||||
Total liabilities | 98,468 | 56,468 | 49,101 | ||||||
Investments in fixed assets | 10,374 | 9,441 | 8,396 | ||||||
Operating segments [member] | FEMSA Comercio Health Retail Division [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 58,922 | 51,739 | 47,421 | ||||||
Gross profit | 17,645 | 15,865 | 14,213 | ||||||
Interest expense | 1,226 | 678 | 685 | ||||||
Interest income | 10 | 14 | 23 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 1,487 | 1,438 | 956 | ||||||
Income taxes | 556 | 652 | 434 | ||||||
Depreciation and amortization | 3,112 | 983 | 942 | ||||||
Non-cash items other than depreciation and amortization | 23 | 22 | 31 | ||||||
Total assets | 54,366 | 35,881 | 38,496 | ||||||
Total liabilities | 53,468 | 23,357 | 25,885 | ||||||
Investments in fixed assets | 1,529 | 1,162 | 774 | ||||||
Operating segments [member] | FEMSA Comercio Fuel Retail Division [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 47,852 | 46,936 | 38,388 | ||||||
Gross profit | 4,775 | 4,231 | 2,767 | ||||||
Interest expense | 1,175 | 211 | 156 | ||||||
Interest income | 114 | 159 | 47 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 124 | 407 | 146 | ||||||
Income taxes | 49 | 123 | 23 | ||||||
Depreciation and amortization | 855 | 152 | 118 | ||||||
Non-cash items other than depreciation and amortization | 105 | 11 | 18 | ||||||
Total assets | 17,701 | 7,015 | 4,678 | ||||||
Total liabilities | 16,754 | 6,142 | 4,091 | ||||||
Investments in fixed assets | 706 | 520 | 291 | ||||||
Operating segments [member] | Heineken investment [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Interest expense | 1 | 1 | |||||||
Interest income | 23 | 22 | 23 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 10 | 11 | 30,000 | ||||||
Income taxes | (491) | 4 | (5,132) | ||||||
Share of the profit of equity accounted investees, net of tax | 6,428 | 6,478 | 7,847 | ||||||
Investments in equity accounted investees | 83,789 | 83,461 | 83,720 | ||||||
Total assets | 86,639 | 86,340 | 76,555 | ||||||
Total liabilities | 3,151 | 4,054 | 1,343 | ||||||
Operating segments [member] | Other [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 41,788 | 42,293 | 39,732 | ||||||
Gross profit | 11,551 | 10,233 | 9,307 | ||||||
Interest expense | 2,303 | 2,057 | 2,372 | ||||||
Interest income | 4,563 | 3,757 | 2,492 | ||||||
Income before income taxes and share of the profit of equity accounted investees | 449 | 1,219 | 4,265 | ||||||
Income taxes | 3,791 | 3,006 | 9,942 | ||||||
Share of the profit of equity accounted investees, net of tax | (78) | 17 | 11 | ||||||
Depreciation and amortization | 1,708 | 1,103 | 804 | ||||||
Non-cash items other than depreciation and amortization | 755 | 490 | 267 | ||||||
Investments in equity accounted investees | 211 | 252 | 234 | ||||||
Total assets | 158,746 | 150,674 | 154,930 | ||||||
Total liabilities | 66,812 | 61,340 | 62,754 | ||||||
Investments in fixed assets | 1,685 | 2,391 | 1,479 | ||||||
Consolidation adjustments [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | (21,132) | (21,024) | (18,698) | ||||||
Gross profit | (5,096) | (4,626) | (3,832) | ||||||
Interest expense | (3,209) | (2,496) | (2,212) | ||||||
Interest income | (3,110) | (2,496) | (2,212) | ||||||
Income before income taxes and share of the profit of equity accounted investees | 359 | 30 | (64) | ||||||
Depreciation and amortization | (112) | ||||||||
Total assets | (54,981) | (42,462) | (36,512) | ||||||
Total liabilities | (55,017) | (42,559) | (36,512) | ||||||
Investments in fixed assets | (180) | (317) | (371) | ||||||
Consolidation adjustments [member] | Coca-Cola FEMSA [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 5,688 | 5,160 | 4,679 | ||||||
Consolidation adjustments [member] | FEMSA comercio proximity division [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 325 | 290 | 202 | ||||||
Consolidation adjustments [member] | FEMSA Comercio Fuel Retail Division [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | 11 | ||||||||
Consolidation adjustments [member] | Other [member] | |||||||||
Disclosure of operating segments [line items] | |||||||||
Total revenues | $ 15,108 | $ 15,574 | $ 13,817 | ||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Information by Segment - Summ_2
Information by Segment - Summary of Inter Segment Policies for Segment (Parenthetical) (Detail) - Mexico and Central America [member] $ in Millions | Dec. 31, 2017MXN ($) |
Disclosure of operating segments [line items] | |
Assets of discontinued operations | $ 28,272 |
Liabilities of discontinued operations | $ 9,945 |
Information by Segment - Summ_3
Information by Segment - Summary of Geographic Disclosure (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | $ 464,468 | $ 398,774 |
Mexico and Central America [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 244,199 | 195,310 |
South America [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 136,480 | 120,003 |
Europe [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | $ 83,789 | $ 83,461 |
Information by Segment - Summ_4
Information by Segment - Summary of Geographic Disclosure (Parenthetical) (Detail) - MXN ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | $ 464,468 | $ 398,774 |
Mexico [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 236,915 | 185,857 |
Brazil [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 79,710 | 76,869 |
Colombia [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 16,463 | 16,664 |
Argentina [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 4,043 | 4,538 |
Chile [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | 31,487 | 16,787 |
Uruguay [member] | ||
Disclosure of geographical areas [line items] | ||
Total Non Current Assets | $ 4,781 | $ 5,145 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue by Geographic Area, Business Unit and Products and Services Categories (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1],[2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | $ 504,059 | [1] | $ 26,726 | $ 468,894 | $ 439,239 | [3] | ||
Operating segments [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 506,711 | 469,744 | 439,932 | |||||
Services revenues | 28,589 | 29,053 | 27,064 | |||||
Operating segments [member] | Mexico and Central America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [4] | 380,352 | [5] | 352,954 | 316,253 | |||
Operating segments [member] | South America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [6] | 147,473 | [5] | 137,789 | 138,318 | |||
Operating segments [member] | Venezuela [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 18 | 25 | 4,059 | |||||
Operating segments [member] | Goods or services transferred at point in time [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | 499,254 | [5] | 461,715 | 431,566 | ||||
Operating segments [member] | Coca-Cola FEMSA [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 188,784 | 177,182 | 178,578 | |||||
Operating segments [member] | Coca-Cola FEMSA [member] | Mexico and Central America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [4] | 109,249 | [5] | 100,162 | 92,643 | |||
Operating segments [member] | Coca-Cola FEMSA [member] | South America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [6] | 85,223 | [5] | 82,180 | 86,608 | |||
Operating segments [member] | Coca-Cola FEMSA [member] | Venezuela [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 4,005 | |||||||
Operating segments [member] | Coca-Cola FEMSA [member] | Goods or services transferred at point in time [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | 194,472 | [5] | 182,342 | 183,256 | ||||
Operating segments [member] | FEMSA Comercio Proximity Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 184,485 | 167,168 | 149,632 | |||||
Operating segments [member] | FEMSA Comercio Proximity Division [member] | Mexico and Central America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [4] | 182,864 | [5] | 166,040 | 148,652 | |||
Operating segments [member] | FEMSA Comercio Proximity Division [member] | South America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [6] | 1,946 | [5] | 1,418 | 1,181 | |||
Operating segments [member] | FEMSA Comercio Proximity Division [member] | Goods or services transferred at point in time [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | 184,810 | [5] | 167,458 | 149,834 | ||||
Operating segments [member] | FEMSA Comercio Health Retail Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 58,922 | 51,739 | 47,421 | |||||
Operating segments [member] | FEMSA Comercio Health Retail Division [member] | Mexico and Central America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [4] | 8,170 | [5] | 7,898 | 7,359 | |||
Operating segments [member] | FEMSA Comercio Health Retail Division [member] | South America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [6] | 50,752 | [5] | 43,841 | 40,062 | |||
Operating segments [member] | FEMSA Comercio Health Retail Division [member] | Venezuela [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 0 | |||||||
Operating segments [member] | FEMSA Comercio Health Retail Division [member] | Goods or services transferred at point in time [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | 58,922 | [5] | 51,739 | 47,421 | ||||
Operating segments [member] | FEMSA Comercio Fuel Retail Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 47,841 | 46,936 | 38,388 | |||||
Operating segments [member] | FEMSA Comercio Fuel Retail Division [member] | Mexico and Central America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [4] | 47,852 | [5] | 46,936 | 38,388 | |||
Operating segments [member] | FEMSA Comercio Fuel Retail Division [member] | Goods or services transferred at point in time [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | 47,852 | [5] | 46,936 | 38,388 | ||||
Operating segments [member] | Other [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 26,679 | 26,719 | 25,913 | |||||
Services revenues | 28,589 | 29,053 | 27,064 | |||||
Operating segments [member] | Other [member] | Mexico and Central America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [4] | 32,217 | [5] | 31,918 | 29,211 | |||
Operating segments [member] | Other [member] | South America [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | [6] | 9,552 | [5] | 10,350 | 10,467 | |||
Operating segments [member] | Other [member] | Venezuela [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 18 | 25 | 54 | |||||
Operating segments [member] | Other [member] | Goods or services transferred at point in time [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Products sold in the point-of-sale | 13,198 | [5] | 13,240 | 12,667 | ||||
Operating segments [member] | Total revenues [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 527,843 | 490,768 | 458,630 | |||||
Operating segments [member] | Total revenues [member] | Coca-Cola FEMSA [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 194,472 | 182,342 | 183,256 | |||||
Operating segments [member] | Total revenues [member] | FEMSA Comercio Proximity Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 184,810 | 167,458 | 149,833 | |||||
Operating segments [member] | Total revenues [member] | FEMSA Comercio Health Retail Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 58,922 | 51,739 | 47,421 | |||||
Operating segments [member] | Total revenues [member] | FEMSA Comercio Fuel Retail Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 47,852 | 46,936 | 38,388 | |||||
Operating segments [member] | Total revenues [member] | Other [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 41,787 | 42,293 | 39,732 | |||||
Operating segments [member] | Consolidation adjustments [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 21,132 | 21,024 | 18,698 | |||||
Operating segments [member] | Consolidation adjustments [member] | Coca-Cola FEMSA [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 5,688 | 5,160 | 4,678 | |||||
Operating segments [member] | Consolidation adjustments [member] | FEMSA Comercio Proximity Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 325 | 290 | 202 | |||||
Operating segments [member] | Consolidation adjustments [member] | FEMSA Comercio Health Retail Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 0 | |||||||
Operating segments [member] | Consolidation adjustments [member] | FEMSA Comercio Fuel Retail Division [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | 11 | |||||||
Operating segments [member] | Consolidation adjustments [member] | Other [member] | ||||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||||||
Consolidated revenues | $ 15,108 | $ 15,574 | $ 13,818 | |||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | |||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | |||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 | |||||||
[4] | Central America includes Guatemala, Nicaragua, Costa Rica and Panama. Domestic (Mexico only) revenues were Ps. 346,659, Ps. 319,792 and Ps. 288,783 and during the years ended December 31, 2019, 2018 and 2017, respectively. | |||||||
[5] | For IFRS 15 adoption purposes, the Company applies the modified retrospective method in which no comparative information is restated for previous periods. The Company recognized no adjustment as a result of adopting IFRS 15. | |||||||
[6] | South America includes Brazil, Argentina, Colombia, Chile, Uruguay, Ecuador and Venezuela, although Venezuela is shown separately above. South America revenues include Brazilian revenues of Ps. 67,076, Ps. 63,601 and Ps. 64,345 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Colombia revenues of Ps. 16,440, Ps. 19,245 and Ps. 17,545 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Argentina revenues of Ps. 6,857, Ps. 9,237 and Ps. 13,938 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Chile revenues of Ps. 45,276, Ps. 44,576 and Ps. 40,660 during the years ended December 31, 2019, 2018 and 2017, respectively. South America revenues include Uruguay revenue of Ps. 3,421 and Ps. 1,925 during the years ended in December 31, 2019 and 2018, respectively. South America revenues include Ecuador revenue of Ps. 6,539 during the year ended in December 31, 2019. |
Revenue - Summary of Disaggre_2
Revenue - Summary of Disaggregation of Revenue by Geographic Area, Business Unit and Products and Services Categories (Parenthetical) (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019MXN ($) | Dec. 31, 2019USD ($) | [1],[2] | Dec. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | $ 506,711 | [1] | $ 26,867 | $ 469,744 | $ 439,932 | [3] | |
Mexico [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | 346,659 | 319,792 | 288,783 | ||||
Brazil [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | 67,076 | 63,601 | 64,345 | ||||
Colombia [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | 16,440 | 19,245 | 17,545 | ||||
Argentina [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | 6,857 | 9,237 | 13,938 | ||||
Chile [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | 45,276 | 44,576 | $ 40,660 | ||||
Uruguay [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | 3,421 | $ 1,925 | |||||
Ecuador [member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Total revenues | $ 6,539 | ||||||
[1] | The Company initially adopted IFRS 16 at January 1st, 2019 using the modified retrospectively approach under which the comparative information is not restated. – See Note 2.4.1 | ||||||
[2] | Convenience translation to U.S. dollars ($) – See Note 2.2.3 | ||||||
[3] | Revised to reflect the discontinued operations of Coca-Cola FEMSA Philippines – See Note 4.2.1 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | Dec. 31, 2019MXN ($) |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | |
Transaction price allocated to remaining performance obligations | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions, $ in Millions | Mar. 12, 2020MXN ($) | Feb. 27, 2020 | Jan. 22, 2020USD ($) | Jan. 09, 2020 | Dec. 13, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020MXN ($) | Mar. 09, 2020USD ($) | Feb. 13, 2020USD ($) | Feb. 12, 2020USD ($) | Feb. 07, 2020MXN ($) | Jan. 16, 2020USD ($) |
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Interest rate | 0.40% | ||||||||||||
Fixed interest rate | 0.40% | ||||||||||||
Three Point Eight Eight Percentage Senior Notes Maturing On November Twenty Six Two Thousand Twenty Three [member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Interest rate | 3.88% | ||||||||||||
Maturity date | November 26, 2023 | ||||||||||||
Fixed interest rate | 3.88% | ||||||||||||
Coca-Cola FEMSA [member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Percent of ownership interest | 47.20% | 47.20% | |||||||||||
Grupo Socofar [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Percent of ownership interest | 40.00% | 100.00% | 60.00% | ||||||||||
Dividend announcement [member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Ordinary dividend payable | $ 10,360 | ||||||||||||
Dividends approved date | Mar. 20, 2020 | ||||||||||||
Events after reporting period [member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Notes issued | $ 1,800 | ||||||||||||
Interest rate | 3.577% | 3.50% | |||||||||||
Fixed interest rate | 3.577% | 3.50% | |||||||||||
short-term bank loan | $ 15,000 | ||||||||||||
Events after reporting period [member] | Senior Unsecured Notes [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Notes issued | $ 1,500 | ||||||||||||
Interest rate | 3.50% | ||||||||||||
Adjustment for reference rate | 1.30% | ||||||||||||
Fixed interest rate | 3.50% | ||||||||||||
Events after reporting period [member] | Senior Unsecured Notes Due Twenty Twenty [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Notes issued | $ 300 | ||||||||||||
Adjustment for reference rate | 1.375% | ||||||||||||
Events after reporting period [member] | Coca-Cola FEMSA [member] | Senior Unsecured Notes Due Two Thousand Thirty [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Notes issued | $ 1,250 | ||||||||||||
Interest rate | 2.75% | ||||||||||||
Fixed interest rate | 2.75% | ||||||||||||
Events after reporting period [member] | Coca-Cola FEMSA [member] | Eight Year Fixed Rate Promissory Note [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Notes issued | $ 3,000 | ||||||||||||
Interest rate | 7.35% | ||||||||||||
Fixed interest rate | 7.35% | ||||||||||||
Events after reporting period [member] | Coca-Cola FEMSA [member] | TIIE Plus Zero Point Eight Percentage Debt Bonds Maturing On Two Thousand Twenty Five [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Notes issued | $ 1,727 | ||||||||||||
Interest rate | 0.08% | ||||||||||||
Maturity date | August 2025 | ||||||||||||
Fixed interest rate | 0.08% | ||||||||||||
Events after reporting period [member] | Grupo Socofar [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Percent of ownership interest | 40.00% | ||||||||||||
Subsequent Event [Member] | Three Point Eight Eight Percentage Senior Notes Maturing On November Twenty Six Two Thousand Twenty Three [member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Interest rate | 3.88% | ||||||||||||
Maturity date | November 26, 2023 | ||||||||||||
Repayment of borrowings | $ 900 | ||||||||||||
Fixed interest rate | 3.88% | ||||||||||||
Major business combination [member] | WAXIE And North American [Member] | |||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||||||||
Acquired controlling interest | 90.00% | ||||||||||||
Business acquisition, consideration transferred | $ 900 |