Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Grupo Televisa, S.A.B. |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000912892 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Series "A" Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Series “A” Shares, without par value |
No Trading Symbol Flag | false |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 113,019,216,542 |
Series "B" Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Series “B” Shares, without par value |
No Trading Symbol Flag | false |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 50,928,412,611 |
Series "L" Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Series “L” Shares, without par value |
No Trading Symbol Flag | false |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 81,022,416,386 |
Series "D" Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Dividend Preferred Shares, without par value |
No Trading Symbol Flag | false |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 81,022,416,386 |
GDSs | |
Document Information [Line Items] | |
Title of 12(b) Security | Global Depositary Shares |
Trading Symbol | TV |
Security Exchange Name | NYSE |
CPOs | |
Document Information [Line Items] | |
Title of 12(b) Security | CPO |
No Trading Symbol Flag | false |
Security Exchange Name | NYSE |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 29,058,093 | $ 27,452,265 |
Trade notes and accounts receivable, net | 12,343,797 | 14,486,184 |
Other accounts, taxes and notes receivable, net | 12,655,479 | 10,692,867 |
Derivative financial instruments | 1,715 | |
Due from related parties | 786,952 | 814,427 |
Transmission rights and programming | 6,396,214 | 6,479,258 |
Inventories | 1,641,300 | 1,151,421 |
Contract costs | 1,598,447 | 1,379,400 |
Assets held for sale | 1,675,426 | |
Other current assets | 4,580,793 | 3,298,061 |
Total current assets | 69,061,075 | 67,431,024 |
Non-current assets: | ||
Derivative financial instruments | 2,877 | |
Transmission rights and programming | 7,982,796 | 7,901,590 |
Investments in financial instruments | 7,002,712 | 44,265,899 |
Investments in associates and joint ventures | 22,813,531 | 9,762,432 |
Property, plant and equipment, net | 83,281,627 | 83,329,232 |
Right-of-use assets, net | 7,212,165 | 7,553,052 |
Intangible assets and goodwill, net | 42,724,218 | 43,328,954 |
Deferred income tax assets | 27,999,693 | 24,185,148 |
Contract costs | 2,943,110 | 2,311,837 |
Other assets | 225,405 | 271,847 |
Total non-current assets | 202,185,257 | 222,912,868 |
Total assets | 271,246,332 | 290,343,892 |
Current liabilities: | ||
Current portion of long-term debt | 616,991 | 491,951 |
Interest payable | 1,934,656 | 1,943,863 |
Current portion of lease liabilities | 1,277,754 | 1,257,766 |
Current portion of other notes payable | 1,324,063 | |
Derivative financial instruments | 2,016,952 | 568,775 |
Trade accounts payable and accrued expenses | 21,943,227 | 20,909,655 |
Customer deposits and advances | 5,935,858 | 5,779,758 |
Income taxes payable | 2,013,648 | 2,470,249 |
Other taxes payable | 4,463,336 | 3,448,009 |
Employee benefits | 1,262,627 | 911,935 |
Due to related parties | 83,007 | 644,251 |
Liabilities related to assets held for sale | 432,812 | |
Other current liabilities | 2,161,610 | 1,981,855 |
Total current liabilities | 43,709,666 | 42,164,942 |
Non-current liabilities: | ||
Long-term debt, net of current portion | 121,935,980 | 120,444,744 |
Lease liabilities, net of current portion | 8,014,597 | 8,105,754 |
Derivative financial instruments | 1,459,271 | 346,515 |
Income taxes payable | 767,115 | 1,759,719 |
Deferred income tax liabilities | 1,786,311 | 7,052,233 |
Post-employment benefits | 2,080,651 | 1,468,112 |
Other long-term liabilities | 3,553,708 | 3,376,640 |
Total non-current liabilities | 139,597,633 | 142,553,717 |
Total liabilities | 183,307,299 | 184,718,659 |
EQUITY | ||
Capital stock | 4,907,765 | 4,907,765 |
Additional paid-in-capital | 15,889,819 | 15,889,819 |
Retained earnings | 84,280,397 | 82,652,278 |
Accumulated other comprehensive (loss) income, net | (15,556,848) | 1,320,451 |
Shares repurchased | (16,079,124) | (14,018,847) |
Equity attributable to stockholders of the Company | 73,442,009 | 90,751,466 |
Non-controlling interests | 14,497,024 | 14,873,767 |
Total equity | 87,939,033 | 105,625,233 |
Total liabilities and equity | $ 271,246,332 | $ 290,343,892 |
Consolidated Statements of Inco
Consolidated Statements of Income $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020MXN ($)$ / EquityInstruments | Dec. 31, 2019MXN ($)$ / EquityInstruments | Dec. 31, 2018MXN ($)$ / EquityInstruments | |
Consolidated Statements of Income | |||
Net sales | $ 97,361,634 | $ 101,757,181 | $ 101,282,333 |
Cost of sales | 56,989,655 | 59,067,362 | 57,839,268 |
Selling expenses | 10,366,582 | 11,099,011 | 11,023,466 |
Administrative expenses | 12,713,657 | 13,269,191 | 13,729,325 |
Income before other income or expense | 17,291,740 | 18,321,617 | 18,690,274 |
Other income (expense), net | 233,628 | (1,316,587) | 1,562,284 |
Operating income | 17,525,368 | 17,005,030 | 20,252,558 |
Finance expense | (10,482,168) | (11,275,198) | (10,566,966) |
Finance income | 4,227,192 | 2,464,403 | 1,787,249 |
Finance expense, net | (6,254,976) | (8,810,795) | (8,779,717) |
Share of (loss) income of associates and joint ventures, net | (5,739,668) | 581,023 | 532,933 |
Income before income taxes | 5,530,724 | 8,775,258 | 12,005,774 |
Income taxes | 5,227,900 | 2,668,445 | 4,390,504 |
Net income | 302,824 | 6,106,813 | 7,615,270 |
Net income attributable to: | |||
Stockholders of the Company | (1,250,342) | 4,626,139 | 6,009,414 |
Non-controlling interests | 1,553,166 | 1,480,674 | 1,605,856 |
Net income | $ 302,824 | $ 6,106,813 | $ 7,615,270 |
Basic and diluted earnings per share | |||
Basic (loss) earnings per CPO attributable to stockholders of the Company | $ / EquityInstruments | (0.44) | 1.60 | 2.07 |
Diluted (loss) earnings per CPO attributable to stockholders of the Company | $ / EquityInstruments | (0.41) | 1.53 | 1.96 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 302,824 | $ 6,106,813 | $ 7,615,270 |
Items that will not be reclassified to income: | |||
Remeasurement of post-employment benefit obligations | (344,313) | (247,092) | (97,086) |
Remeasurement of post-employment benefit obligations of assets held for sale | (3,445) | ||
Warrants issued by UHI, net of hedge | (21,899,164) | 257,306 | (1,347,698) |
Open Ended Fund, net of hedge | (904,423) | (351,202) | 215,957 |
Other equity instruments | (353,496) | (794,624) | 603,766 |
Items that may be subsequently reclassified to income: | |||
Exchange differences on translating foreign operations | 133,522 | (98,422) | (859,032) |
Cash flow hedges | (1,370,145) | (1,521,912) | 174,532 |
Other financial assets | 111 | (111) | |
Share of other comprehensive loss of associates and joint ventures | (61,033) | (236,159) | (47,313) |
Other comprehensive loss before income taxes | (24,799,052) | (2,995,439) | (1,356,985) |
Income tax benefit | 7,936,914 | 704,164 | 336,102 |
Other comprehensive loss | (16,862,138) | (2,291,275) | (1,020,883) |
Total comprehensive (loss) income | (16,559,314) | 3,815,538 | 6,594,387 |
Total comprehensive (loss) income attributable to: | |||
Stockholders of the Company | (18,127,641) | 2,356,623 | 5,009,822 |
Non-controlling interests | 1,568,327 | 1,458,915 | 1,584,565 |
Total comprehensive (loss) income | $ (16,559,314) | $ 3,815,538 | $ 6,594,387 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - MXN ($) $ in Thousands | Capital Stock Issued | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Shares Repurchased | Equity Attributable to Stockholders of the Company | Non-controlling Interests | Total |
Beginning Balance of period at Dec. 31, 2017 | $ 4,978,126 | $ 15,889,819 | $ 75,204,656 | $ 4,599,147 | $ (14,788,984) | $ 85,882,764 | $ 13,995,150 | $ 99,877,914 |
Cumulative adjustment for IFRS | Adoption of IFRS 9 - Expected credit losses | (167,028) | (167,028) | (35,436) | (202,464) | ||||
Cumulative adjustment for IFRS | Adoption of IFRS 15 | 1,599,452 | 1,599,452 | 785,203 | 2,384,655 | ||||
Cumulative adjustment for IFRS | Adoption of IFRS 9 - New classification of Financial Instruments | (827,932) | 827,932 | ||||||
Funding for acquisition of shares under the Long-term Retention Plan | (1,100,000) | (1,100,000) | (1,100,000) | |||||
Acquisition of non-controlling interests | (183,041) | (183,041) | (39,149) | (222,190) | ||||
Dividends | (1,068,868) | (1,068,868) | (1,276,562) | (2,345,430) | ||||
Cancellation of sale of shares | (70,361) | (2,694,201) | 2,764,562 | |||||
Repurchase of CPOs | (1,541,180) | (1,541,180) | (1,541,180) | |||||
Shares repurchased | (1,954,312) | (1,954,312) | (1,954,312) | |||||
Sale of shares | (446,542) | 2,400,854 | 1,954,312 | 1,954,312 | ||||
Share-based compensation | 1,305,999 | 1,305,999 | 1,305,999 | |||||
Comprehensive (loss) income | 6,009,414 | (999,592) | 5,009,822 | 1,584,565 | 6,594,387 | |||
End balance of period at Dec. 31, 2018 | 4,907,765 | 15,889,819 | 78,731,909 | 4,427,487 | (14,219,060) | 89,737,920 | 15,013,771 | 104,751,691 |
Acquisition of non-controlling interests | 766 | 766 | (766) | |||||
Dividends | (1,066,187) | (1,066,187) | (1,598,153) | (2,664,340) | ||||
Reclassification due to partial disposition of Open Ended Fund | 837,520 | (837,520) | ||||||
Repurchase of CPOs | (1,385,750) | (1,385,750) | (1,385,750) | |||||
Shares repurchased | (100,246) | (100,246) | (100,246) | |||||
Sale of shares | (1,585,963) | 1,686,209 | 100,246 | 100,246 | ||||
Share-based compensation | 1,108,094 | 1,108,094 | 1,108,094 | |||||
Comprehensive (loss) income | 4,626,139 | (2,269,516) | 2,356,623 | 1,458,915 | 3,815,538 | |||
End balance of period at Dec. 31, 2019 | 4,907,765 | 15,889,819 | 82,652,278 | 1,320,451 | (14,018,847) | 90,751,466 | 14,873,767 | 105,625,233 |
Funding for acquisition of shares under the Long-term Retention Plan | (97,000) | (97,000) | (97,000) | |||||
Disposition of non-controlling interests in Sistema Radipolis | (291,897) | (291,897) | ||||||
Dividends to non-controlling interests | (1,653,173) | (1,653,173) | ||||||
Share of income in OCEN (see Note 10) | 147,975 | 147,975 | 147,975 | |||||
Cancellation of sale of shares | 2,764,854 | (2,764,854) | ||||||
Repurchase of CPOs | (195,597) | (195,597) | (195,597) | |||||
Shares repurchased | (111,979) | (111,979) | (111,979) | |||||
Sale of shares | (997,174) | 1,109,153 | 111,979 | 111,979 | ||||
Share-based compensation | 962,806 | 962,806 | 962,806 | |||||
Comprehensive (loss) income | (1,250,342) | (16,877,299) | (18,127,641) | 1,568,327 | (16,559,314) | |||
End balance of period at Dec. 31, 2020 | $ 4,907,765 | $ 15,889,819 | $ 84,280,397 | $ (15,556,848) | $ (16,079,124) | $ 73,442,009 | $ 14,497,024 | $ 87,939,033 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Income before income taxes | $ 5,530,724 | $ 8,775,258 | $ 12,005,774 |
Adjustments to reconcile income before income taxes to net cash provided by operating activities: | |||
Share of loss (income) of associates and joint ventures | 5,739,668 | (581,023) | (532,933) |
Depreciation and amortization | 21,260,787 | 21,008,796 | 19,834,202 |
Other amortization of assets | 380,863 | 531,426 | 444,679 |
Impairment of long-lived assets | 40,803 | 67,574 | 135,750 |
(Income) loss on disposition of property and equipment | (74,175) | 270,381 | 912,317 |
Impairment loss on trade notes and accounts receivable, and other receivables | 1,387,431 | 1,446,568 | 1,479,511 |
Post-employment benefits | 292,026 | 259,064 | 171,156 |
Interest income | (72,861) | (102,675) | (120,134) |
Share-based compensation expense | 984,356 | 1,129,644 | 1,327,549 |
Provision for deferred compensation | 199,195 | 251,787 | |
Interest receivable for Asset Tax from prior years | (139,995) | ||
Other finance (income) loss, net | (89,323) | 872,291 | 859,642 |
Gain on disposition of investments, net | (789,873) | (627) | (3,553,463) |
Cancellation of provision | 691,221 | ||
Interest expense | 10,482,168 | 10,402,021 | 9,707,324 |
Unrealized foreign exchange gain, net | (2,596,198) | (1,120,958) | (318,087) |
Total | 43,167,617 | 43,016,940 | 42,605,074 |
Decrease in trade notes and accounts receivable | 634,108 | 4,785,389 | 3,483,695 |
(Increase) decrease in transmission rights and programming | (54,274) | 2,632,696 | (2,968,579) |
(Increase) decrease in due from related parties, net | (393,631) | 204,166 | (555,418) |
(Increase) decrease in inventories | (522,003) | (128,327) | 444,790 |
Increase in other accounts and notes receivable and other current assets | (2,469,724) | (2,789,811) | (1,144,721) |
Increase (decrease) in trade accounts payable and accrued expenses | 1,065,101 | (1,885,865) | 2,087,404 |
Increase (decrease) in customer deposits and advances | 185,143 | (7,778,497) | (5,176,499) |
(Decrease) increase in other liabilities and taxes payable | (96,832) | (1,848,715) | 1,579,450 |
Increase (decrease) in post-employment benefits | 326,892 | (122,261) | 82,070 |
Income taxes paid | (8,681,478) | (8,816,632) | (6,722,770) |
Total | (10,006,698) | (15,747,857) | (8,890,578) |
Net cash provided by operating activities | 33,160,919 | 27,269,083 | 33,714,496 |
Investing activities: | |||
Temporary investments | 30,992 | 40,186 | |
Investments in financial instruments | (72,723) | ||
Disposition of investments in financial instruments | 3,155,643 | 2,301,682 | 287,605 |
Disposition or investment in joint ventures | 125,624 | 149,390 | 209,775 |
Investment or disposition of other investment | (602,466) | (25,741) | 95,161 |
Dividends received | 772,400 | ||
Investments in property, plant and equipment | (20,131,738) | (19,108,284) | (18,499,662) |
Disposition of property, plant and equipment | 1,520,417 | 981,503 | 1,024,702 |
Payment for renewal of television broadcasting concessions | (5,754,038) | ||
Other investments in intangible assets | (1,235,177) | (2,106,750) | (2,020,243) |
Net cash used in investing activities | (15,919,697) | (17,004,808) | (23,898,235) |
Financing activities: | |||
Long-term loans from Mexican banks | 10,000,000 | ||
Repayment of Mexican peso debt | (492,489) | (989,156) | (307,489) |
Repayment of Mexican peso debt Sky | (2,750,000) | ||
Payments of lease liabilities | (668,277) | (559,623) | (540,448) |
Other payments of lease liabilities | (953,771) | (883,533) | |
Interest paid | (9,455,387) | (9,180,141) | (10,129,304) |
Funding for acquisition of shares of the Long-term Retention Plan | (197,000) | (1,100,000) | |
Repurchases of CPOs under a share repurchase program | (195,597) | (1,385,750) | (1,541,180) |
Repurchase of capital stock | (111,979) | (100,246) | (1,954,312) |
Sale of capital stock | 111,979 | 100,246 | 1,954,312 |
Dividends paid | (1,066,187) | (1,068,868) | |
Dividends paid and reduction of capital of non-controlling interests | (1,420,477) | (1,594,629) | (1,270,652) |
Acquisition of non-controlling interests | (54,256) | ||
Derivative financial instruments | 1,261,845 | (596,046) | 691,303 |
Net cash used in financing activities | (16,195,216) | (14,301,896) | (16,504,914) |
Effect of exchange rate changes on cash and cash equivalents | (11,516) | (60,449) | 21,995 |
Net increase (decrease) in cash and cash equivalents | 1,034,490 | (4,098,070) | (6,666,658) |
Cash and cash equivalents related to assets held for sale | 571,338 | (517,956) | |
Cash and cash equivalents at beginning of year | 27,452,265 | 32,068,291 | 38,734,949 |
Cash and cash equivalents at end of year | 29,058,093 | 27,452,265 | 32,068,291 |
Sistema Radiopolis, S.A. de C.V. (Radiopolis) and subsidiaries | |||
Investing activities: | |||
Disposition of investment | 1,248,000 | ||
Issuance of Senior Notes due 2049 | |||
Financing activities: | |||
Issuance of Notes | 14,247,544 | ||
Notes due 2020, 2021 and 2022 | |||
Financing activities: | |||
Prepayment of Notes | (21,000,000) | ||
Other notes payable | |||
Financing activities: | |||
Repayment and prepayment of other notes payable | $ (1,324,063) | $ (1,294,375) | (1,184,020) |
Axtel | |||
Investing activities: | |||
Acquisition of net assets of Axtel, net of acquired cash and cash equivalents | (5,465,872) | ||
Imagina | |||
Investing activities: | |||
Disposition of investment | $ 6,256,874 |
Corporate Information
Corporate Information | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information | |
Corporate Information | 1. Grupo Televisa, S.A.B. (the “Company”) is a limited liability public stock corporation (“Sociedad Anónima Bursátil” or “S.A.B.”), incorporated under the laws of Mexico. Pursuant to the terms of the Company’s bylaws (“Estatutos Sociales”), its corporate existence continues through 2106. The shares of the Company are listed and traded in the form of “Certificados de Participación Ordinarios”, or “CPOs,” on the Mexican Stock Exchange (“Bolsa Mexicana de Valores” or “BMV”) under the ticker symbol TLEVISA CPO, and in the form of Global Depositary Shares, or “GDSs,” on the New York Stock Exchange, or “NYSE,” under the ticker symbol TV. The Company’s principal executive offices are located at Av. Vasco de Quiroga No. 2000, Colonia Santa Fe, 01210, Mexico City, Mexico. Grupo Televisa, S.A.B., together with its subsidiaries (collectively, the “Group”), is a leading media company in the Spanish-speaking world, an important cable operator in Mexico, and an operator of a leading direct-to-home satellite pay television system in Mexico. The Group distributes the content it produces through several broadcast channels in Mexico and in over 70 countries through 25 pay-tv brands and television networks, cable operators and over-the-top or “OTT” services. In the United States, the Group´s audiovisual content is distributed through Univision Communications Inc. (“Univision”) the leading media company serving the Hispanic market. Univision broadcasts the Group’s audiovisual content through multiple platforms, in exchange for a royalty payment. In addition, beginning on December 29, 2020, the Group has equity representing 35.9% on a fully-diluted basis of the equity capital in Univision Holdings, Inc. or “UHI”, the controlling company of Univision (see Notes 9 and 10). The Group’s cable business offers integrated services, including video, high-speed data and voice services to residential and commercial customers as well as managed services to domestic and international carriers. The Group owns a majority interest in Sky, a leading direct-to-home satellite pay television system and broadband provider in Mexico, operating also in the Dominican Republic and Central America. The Group also has interests in magazine publishing and distribution, professional sports and live entertainment, feature- film production and distribution, and gaming. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
Accounting Policies | 2. The principal accounting policies followed by the Group and used in the preparation of these consolidated financial statements are summarized below. (a) Basis of Presentation The consolidated financial statements of the Group as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018, are presented in accordance with International Financial Reporting Standards (“IFRS Standards”), as issued by the International Accounting Standards Board (“IASB”). IFRS Standards comprise: (i) IFRS Standards; (ii) International Accounting Standards (“IAS Standards”); (iii) IFRS Interpretations Committee (“IFRIC”) Interpretations; and (iv) Standing Interpretations Committee (“SIC”) Interpretations. The consolidated financial statements have been prepared on a historical cost basis, except for the measurement at fair value of derivative financial instruments, financial assets, investments in equity financial instruments, plan assets of post-employment benefits and share-based payments, as described in the notes to the financial statements below. The preparation of consolidated financial statements in conformity with IFRS Standards, requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where estimates and assumptions are significant to the Group’s financial statements are disclosed in Note 5 to these consolidated financial statements. These consolidated financial statements were authorized for issuance on March 31, 2021, and were also authorized for issuance on April 30, 2021 including the events disclosed in Note 30, by the Group’s Corporate Vice President of Finance. (b) Consolidation The financial statements of the Group are prepared on a consolidated basis and include the assets, liabilities and results of operations of all companies in which the Company has a controlling interest (subsidiaries). All intercompany balances and transactions have been eliminated from the consolidated financial statements. Subsidiaries Subsidiaries are all entities over which the Company has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether or not the Company controls another entity. The subsidiaries are consolidated from the date on which control is obtained by the Company and cease to consolidate from the date on which said control is lost. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in income or loss. Changes in Ownership Interests in Subsidiaries without Change of Control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the interest acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity. Loss of Control of a Subsidiary When the Company ceases to have control of a subsidiary, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognized in income or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts previously recognized in other comprehensive income are reclassified to income or loss except for certain equity financial instruments designated irrevocably with changes in other comprehensive income or loss. At December 31, 2020 and 2019, the main direct and indirect subsidiaries of the Company were as follows: Company’s Ownership Business Subsidiaries Interest (1) Segment (2) Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, “Empresas Cablevisión”) (3) 51.2 % Cable Subsidiaries engaged in the Cablemás business (collectively, “Cablemás”) (4) 100 % Cable Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, “TVI”) (5) 100 % Cable Cablestar, S.A. de C.V. and subsidiaries (collectively, “Bestel”) (6) 66.2 % Cable Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, “Cablecom”) (7) 100 % Cable Subsidiaries engaged in the Telecable business (collectively, “Telecable”) (8) 100 % Cable FTTH de México, S.A. de C.V. (9) 100 % Cable Corporativo Vasco de Quiroga, S.A. de C.V. (“CVQ”) and subsidiaries (10) 100 % Cable and Sky Innova, S. de R.L. de C.V. (“Innova”) and subsidiaries (collectively, “Sky”) (11) 58.7 % Sky Grupo Telesistema, S.A. de C.V. ("Grupo Telesistema") and subsidiaries 100 % Content and Other Businesses Televisa, S.A. de C.V. (“Televisa”) (12) 100 % Content Televisión Independiente de México, S.A. de C.V. ("TIM") (12) 100 % Content G.Televisa-D, S.A. de C.V. (12) 100 % Content Multimedia Telecom, S.A. de C.V. (“Multimedia Telecom”) and subsidiary (13) 100 % Content Ulvik, S.A. de C.V. (14) 100 % Content and Other Businesses Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries 100 % Other Businesses Editorial Televisa, S.A. de C.V. and subsidiaries 100 % Other Businesses Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries 100 % Other Businesses Villacezán, S.A. de C.V. (“Villacezán”) and subsidiaries (15) 100 % Other Businesses Sistema Radiópolis, S.A. de C.V. ("Radiópolis") and subsidiaries (16) — Disposed operations (1) Percentage of equity interest directly or indirectly held by the Company. (2) See Note 26 for a description of each of the Group’s business segments. (3) Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ. (4) Some Cablemás subsidiaries are directly owned by CVQ and some other Cablemás subsidiaries are indirectly owned by CVQ. (5) Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ. (6) Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V. (7) Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ. (8) The Telecable subsidiaries are directly owned by CVQ. (9) FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ. (10) CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom, Telecable and Innova. (11) Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. (“Sky DTH”), and a direct majority-owned subsidiary of Innova Holdings, S. de R.L. de C.V. (“Innova Holdings”). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova’s equity and designates a majority of the members of Innova’s Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in the Group and Sky. These veto rights are protective in nature and do not affect decisions about relevant business activities of Innova. (12) Televisa, TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema. (13) Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. (“Tieren”), are indirect wholly-owned subsidiaries of Grupo Telesistema, through which the Company owns shares of the capital stock of UHI and maintained through December 29, 2020, an investment in warrants that were exercised for shares of common stock of UHI on that date. As of December 31, 2020 and 2019, Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group’s aggregate investment in shares of common stock and/or share warrants issued by UHI (see Notes 9, 10 and 20). (14) Direct subsidiary through which we conduct certain operations of our Content segment and certain operations of our Other Businesses segments. (15) Villacezán is an indirect subsidiary of Grupo Telesistema. (16) In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a direct subsidiary of the Company through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of Radiópolis. The Radio business was part the of the Group’s Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its operating results, were classified as held for sale in the Group’s consolidated financial statements through June 30, 2020 (see Notes 3 and 26). The Group’s Cable, Sky and Content segments, require governmental concessions and special authorizations for the provision of broadcasting and telecommunications services in Mexico. Such concessions are granted by the Mexican Institute of Telecommunications (“Instituto Federal de Telecomunicaciones” or “IFT”) for a fixed term, subject to renewal in accordance with the Mexican Telecommunications and Broadcasting Law (“Ley Federal de Telecomunicaciones y Radiodifusión” or “LFTR”). Renewal of concessions for the Content segment (Broadcasting) require, among others: (i) to request such renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; (iii) a declaration by IFT that there is no public interest in recovering the spectrum granted under the related concession; and (iv) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT, including the payment of a related fee. IFT shall resolve within the year following the presentation of the request, if there is public interest in recovering the spectrum granted under the related concession, in which case it will notify its determination and proceed with the termination of the concession at the end of its fixed term. If IFT determines that there is no public interest in recovering the spectrum, it will grant the requested extension within 180 business days, provided that the concessionaire accepts, in advance, the new conditions set by IFT, which will include the payment of the fee referred to above. Such fee will be determined by IFT for the relevant concessions, considering the following elements: (i) the frequency band; (ii) the amount of spectrum; (iii) coverage of the frequency band; (iv) domestic and international benchmark regarding the market value of frequency bands; and (v) upon request of IFT, an opinion issued by the Ministry of Finance and Public Credit of IFT´s proposal for calculation of the fee. Renewal of concessions for the Sky and Cable segments require, among others: (i) to request its renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; and (iii) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT. IFT shall resolve any request for renewal of the telecommunications concessions within 180 business days of its request. Failure to respond within such period of time shall be interpreted as if the request for renewal has been granted. The regulations of the broadcasting and the telecommunications concessions (including satellite pay TV) establish that at the end of the concession, the frequency bands or spectrum attached to the services provided in the concessions shall return to the Mexican government. In addition, at the end of the concession, the Mexican government will have the preferential right to acquire infrastructure, equipment and other goods directly used in the provision of the concession. If the Mexican government were to exercise its right to acquire infrastructure, equipment and other goods, it would be required to pay a price that is equivalent to a formula that is similar to fair value. To the knowledge of the Company’s management, no spectrum granted for broadcasting services in Mexico has been recovered by the Mexican government in at least the past three decades for public interest reasons. However, the Company’s management is unable to predict the outcome of any action by IFT in this regard. In addition, these assets, by themselves, would not be enough to immediately begin broadcasting or offering satellite pay TV services or telecommunications services, as no content producing assets or other equipment necessary to operate the business would be included. Also, the Group’s Gaming business, which is reported in the Other Businesses segment, requires a permit granted by the Mexican Federal Government for a fixed term, subject to renewal in accordance with Mexican law. Additionally, the Group’s Sky businesses in Central America and the Dominican Republic require concessions or permits granted by local regulatory authorities for a fixed term, subject to renewal in accordance with local laws. The accounting guidelines provided by IFRIC 12 Service Concession Arrangements, are not applicable to the Group due primarily to the following factors: (i) the Mexican government does not substantially control the Group’s infrastructure, what services are provided with the infrastructure and the price at which such services are offered; (ii) the Group’s broadcasting service does not constitute a public service as per the definition in IFRIC 12; and (iii) the Group is unable to divide its infrastructure among the public (telephony and possibly Internet services) and non-public (pay TV) service components. At December 31, 2020, the expiration dates of the Group’s concessions and permits were as follows: Segments Expiration Dates Cable Various from 2022 to 2048 Sky Various from 2021 to 2030 Content (broadcasting concessions) (1) In 2021 and the relevant renewals start in 2022 ending in 2042 Other Businesses: Gaming In 2030 (1) In November 2018, the IFT approved the renewal of the Group’s broadcasting concessions for all of its television stations in Mexico, for a term of 20 years after the existing expiration date in 2021. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized this payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13). The concessions or permits held by the Group are not subject to any significant pricing regulations in the ordinary course of business. (c) Investments in Associates and Joint Ventures Associates are those entities over which the Group has significant influence but not control or joint control, generally those entities with a shareholding of between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. Joint ventures are those joint arrangements where the Group exercises joint control with other stockholder or more stockholders without exercising control individually, and have rights to the net assets of the joint arrangements. Investments in associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the net assets of the investee after the date of acquisition. The Group’s investments in associates include an equity interest in UHI represented by approximately 35.9% and 10% of the outstanding total shares of UHI as of December 31, 2020 and 2019, respectively (see Notes 9 and 10). If the Group’s share of losses of an associate or a joint venture equals or exceeds its interest in the investee, the Group discontinues recognizing its share of further losses. The interest in an associate or a joint venture is the carrying amount of the investment in the investee under the equity method together with any other long-term investment that, in substance, form part of the Group’s net investment in the investee. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. (d) Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s Co-Chief Executive Officers (“chief operating decision makers”) who are responsible for allocating resources and assessing performance for each of the Group’s operating segments. (e) Foreign Currency Translation Functional and Presentation Currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The presentation and reporting currency of the Group’s consolidated financial statements is the Mexican peso, which is used for compliance with its legal and tax obligations. Transactions and Balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or measurement where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income as part of finance income or expense, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Changes in the fair value of monetary securities denominated in foreign currency classified as investments in financial instruments are analyzed between exchange differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in income or loss, and other changes in carrying amount are recognized in other comprehensive income or loss. Translation of Foreign Operations The financial statements of the Group’s foreign entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) assets and liabilities are translated at the closing rate at the date of the statement of financial position; (b) income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); (c) stockholders' equity accounts are translated at the prevailing exchange rate at the time capital contributions were made and earnings were generated and (d) all resulting translation differences are recognized in other comprehensive income or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Translation differences arising are recognized in other comprehensive income or loss. Assets and liabilities in foreign currencies of non-Mexican subsidiaries that use the Mexican Peso as a functional currency are initially converted to Mexican Pesos by utilizing the exchange rate of the statement of financial position date for monetary assets and liabilities, and historical exchange rates for non-monetary items, with the related adjustment included in the consolidated statement of income as finance income or expense. A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a hedge of a net investment in a foreign operation in connection with the Group’s investment in shares of common stock of UHI (hedged item), which amounted to U.S.$1,074.0 million (Ps.21,424,180) and U.S.$433.7 million (Ps.8,189,662) as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss as a cumulative result from foreign currency translation (see Note 10). A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item "Long-term debt, net of current portion" of the consolidated statement of financial position) was designated as a fair value hedge of foreign exchange exposure related to its investment in warrants that were exercisable for common stock of UHI (hedged item) through December 29, 2020, the date on which the Group exercised all of these warrants for common stock of UHI, which amounted to Ps.17,387,699 (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 (U.S.$1,788.6 million) as of December 31, 2019. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt was credited or charged directly to other comprehensive income or loss through December 29, 2020, along with the recognition in the same line item of any foreign currency gain or loss of this investment in warrants designated as a hedged item through that date (see Notes 9, 14 and 18). A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a fair value hedge of foreign exchange exposure related to its investment in Open-Ended Fund (hedged item), which amounted to Ps.1,135,803 (U.S.$56.9 million) and Ps.4,688,202 (U.S.$248.3 million), as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss, along with the recognition in the same line item of any foreign currency gain or loss of this investment in Open-Ended Fund designated as a hedged item (see Notes 9, 14 and 18). Beginning on January 1, 2018, the Group adopted the hedge accounting requirements of IFRS 9 Financial Instruments (“IFRS 9”) for all of its hedging relationships. This IFRS Standard became effective on that date. (f) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three months or less at the date of acquisition. Cash is stated at nominal value and cash equivalents are measured at fair value, and the changes in the fair value are recognized in the statement of income. As of December 31, 2020 and 2019, cash equivalents primarily consisted of fixed short-term deposits and corporate fixed income securities denominated in U.S. dollars and Mexican pesos, with an average yield of approximately 0.38% for U.S. dollar deposits and 5.40% for Mexican peso deposits in 2020, and approximately 2.20% for U.S. dollar deposits and 8.09% for Mexican peso deposits in 2019. (g) Transmission Rights and Programming Programming is comprised of programs, literary works, production talent advances and films. Transmission rights and literary works are valued at the lesser of acquisition cost and net realizable value. Programs and films are valued at the lesser of production cost, which consists of direct production costs and production overhead, and net realizable value. Payments for production talent advances are initially capitalized and subsequently included as direct or indirect costs of program production. Transmission rights are recognized from the point of which the legally enforceable license period begins. Until the license term commences and the programming rights are available, payments made are recognized as prepayments. The Group’s policy is to capitalize the production costs of programs which benefit more than one annual period and amortize them over the expected period of future program revenues based on the Company’s historical revenue patterns and usage for similar productions. Transmission rights, programs, literary works, production talent advances and films are recorded at acquisition or production cost. Cost of sales is calculated and recorded for the month in which such transmission rights, programs, literary works, production talent advances and films are matched with related revenues. Transmission rights are recognized in income over the lives of the contracts. Transmission rights in perpetuity are amortized on a straight-line basis over the period of the expected benefit as determined by past experience, but not exceeding 25 years. (h) Inventories Inventories of paper, magazines, materials and supplies for maintenance of technical equipment are recorded at the lower of cost or its net realization value. The net realization value is the estimated selling price in the normal course of business, less estimated costs to conduct the sale. Cost is determined using the average cost method. (i) Financial Assets Beginning on January 1, 2018, the Group classifies its financial assets in accordance with IFRS 9 which became effective on that date. Under the guidelines of IFRS 9, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or loss (“FVOCIL”), or fair value through income or loss ("FVIL"), based on the Company’s business model for managing the financial assets and the contractual cash flows characteristics of the financial asset. Financial Assets Measured at Amortized Cost Financial assets are measured at amortized cost when the objective of holding such financial assets is to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are only payments of principal and interest on the principal amount outstanding. These financial assets are initially recognized at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest rate method, with changes in carrying value recognized in the consolidated statement of income in the line which most appropriately reflects the nature of the item or transaction. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period that are included in non-current assets. The Group’s financial assets measured at amortized costs are primarily presented as “trade notes and accounts receivable”, “other accounts and notes receivable”, and “due from related parties” in the consolidated statement of financial position (see Note 7). Financial Assets Measured at FVOCIL Financial assets are measured at FVOCIL when the objective of holding such financial assets is both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group’s investments in certain equity instruments have been designated to be measured at FVOCIL, as permitted by IFRS 9 (see Note 28). In connection with this designation, any amounts presented in consolidated other comprehensive income are not subsequently transferred to consolidated income. Dividends from these equity instruments are recognized in consolidated income when the right to receive payment of the dividend is established, and such dividend is probable to be paid to the Group. Financial Assets at FVIL Financial assets at FVIL are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current. Impairment of Financial Assets From January 1, 2018, the Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at fair value through other comprehensive income or loss. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables (see Note 7). Offsetting of Financial Instruments Financial assets are offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Group: (i) currently has a legally enforceable right to set off the recognized amounts; and (ii) intends either to settle on a net basis, or to realize the assets and settle the liability simultaneously. (j) Property, Plant and Equipment Property, plant and equipment are recorded at acquisition cost. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to income or loss during the financial period in which they are incurred. Land is not depreciated. Depreciation of property, plant and equipment is based upon the carrying value of the assets in use and is computed using the straight-line method over the estimated useful lives of the asset, as follows: Estimated Useful Lives Buildings 20-65 years Building improvements 5-20 years Technical equipment 3-30 years Satellite transponders 15 years Furniture and fixtures 3-10 years Transportation equipment 4-8 years Computer equipment 3-6 years Leasehold improvements 5-30 years The assets’ residual values and use |
Acquisitions, Investments, Disp
Acquisitions, Investments, Dispositions and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions, Investments, Dispositions and Assets Held for Sale | |
Acquisitions, Investments, Dispositions and Assets Held for Sale | 3. In February 2018, the Company announced an agreement to sell its 19.9% stake in Imagina Media Audiovisual, S.L. (together with its subsidiaries, “Imagina”), a media and telecom company in Spain, which was subject to the fulfillment of certain conditions and regulatory approvals. In June 2018, this transaction was closed and the Company sold its stake in Imagina and received proceeds in the aggregate amount of €284.5 million (Ps.6,603,751), of which €251.3 million (Ps.5,832,360) were in cash and €33.2 million (Ps.771,391) were held in escrow, and will be paid to the Company over time subject to customary terms and conditions under escrow agreements. In the fourth quarter of 2018, a cash amount of €16.1 million (Ps.366,354) was released from escrow and an amount of €1.5 million (Ps.33,558) was used for escrow purposes. As of December 31, 2020 and 2019, the amount held in escrow from this transaction was €2.2 million (Ps.54,302) and €5.4 million (Ps.114,127), respectively. On December 17, 2018, the Group acquired from Axtel, S.A.B. de C.V. (“Axtel”) its residential fiber-to-home business and related assets in Mexico City, Zapopan, Monterrey, Aguascalientes, San Luis Potosi and Ciudad Juárez. The assets acquired comprise 553,226 revenue generating units consisting of 97,622 video, 227,802 broadband and 227,802 voice, revenue generating units. This transaction was paid in cash by the Group in the aggregate amount of Ps.5,466,872, including value added tax. Through this acquisition, the Group continues with its strategy to consolidate a cable company with national coverage that delivers more and better services for the benefit of end users. The following table summarizes the allocation of the total amount of cash paid by the Group in connection with the purchase of tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over those fair values was allocated to goodwill in the Cable segment. The Company’s management completed a final purchase price allocation for this acquisition in the first half of 2019, and there was no changes with the preliminary purchase price allocation made as of December 31, 2018. December 17, 2018 Cash and cash equivalents Ps. 1,000 Trade notes and accounts receivables 169,036 Other accounts receivable primarily value-added tax 875,331 Total current assets 1,045,367 Property and equipment 2,130,108 Intangible assets and goodwill 2,582,713 Total assets 5,758,188 Other current liabilities 291,316 Total liabilities 291,316 Total net assets Ps. 5,466,872 In July 2019, the Company announced an agreement with Live Nation Entertainment, Inc. (“Live Nation”) to dispose of its 40% equity interest in OCESA Entretenimiento, S.A. de C.V. (“OCEN”), a live entertainment company with operations in Mexico, Central America and Colombia. OCEN is (i) a direct associate of OISE Entretenimiento, S.A. de C.V. (“OISE Entretenimiento”), a wholly-owned subsidiary of the Company; and (ii) a subsidiary of Compañía Interamericana de Entretenimiento, S.A.B. de C.V. (“CIE”). The proposed disposal of OCEN was expected to be completed by the parties in the first half of 2020, through the sale of all of the outstanding shares of OISE Entretenimiento, which net assets are comprised primarily of the 40% equity stake in OCEN. This transaction was subject to customary closing conditions, including regulatory approvals and certain notifications, and to the closing of the proposed sale by CIE to Live Nation of a portion of its stake in OCEN. In consideration for the sale of the shares of OISE Entretenimiento, the Company expected to receive cash proceeds in the aggregate amount of Ps.5,206,000. As a result of this transaction, beginning on July 31, 2019, the Group classified the assets of OISE Entretenimiento, including the carrying value of its investment in OCEN as current assets held for sale in its consolidated statement of financial position. As of December 31, 2019, the carrying value of current assets held for sale in connection with this proposed transaction amounted to Ps.694,239, of which Ps.693,970, were related to the carrying value of the investment in OCEN. Live Nation and the Company have an open dispute in connection with a purported unilateral termination of the stock purchase agreement by Live Nation which was notified to the Company in May 2020. Beginning on May 31, 2020, the Company: (i) ceased to classify the assets of OISE Entretenimiento, including the investment in OCEN, as current assets held for sale; (ii) began to classify its equity interest in OCEN as an investment in associates and joint ventures in its consolidated statement of financial position; (iii) recognized its share of income of OCEN, which was discontinued from August 1, through December 31, 2019, in consolidated retained earnings as of January 1, 2020 in the amount of Ps.147,975; (iv) began to recognize its share of income or loss of OCEN for the year ended December 31, 2020; and (v) restated for comparison purposes its previously reported consolidated statement of financial position as of December 31, 2019, which included its investment in OCEN as current assets held for sale, to conform with the current classification of this asset as investments in associates and joint ventures (see Notes 10 and 20). In July 2019, the Company announced a stock purchase agreement with Corporativo Coral, S.A. de C.V. (“Coral”) and Miguel Alemán Magnani as Obligor to dispose of its 50% equity interest in Radiópolis, a direct subsidiary of the Company at that date which was engaged in the Radio business, for an aggregate amount of Ps.1,248,000, as well as the payment of a dividend by Radiópolis to the Company by the closing date of the transaction. While the sale of the Company’s equity interest in the Radio business was consummated for legal and tax purposes as of December 31, 2019, the total assets and related total liabilities of Radiópolis in the amount of Ps.1,675,426 and Ps.432,812, respectively, as of December 31, 2019, were classified as current assets and current liabilities held for sale in the Group's consolidated statement of financial position as of that date, as the voting interest of the Company in Radiópolis continued to be in place until the full payment of the purchase price was made by the acquirer. In March and June 2020, the Company entered into additional agreements with Coral an its Obligor to complete this transaction by which, among other things, the acquirer made two cash payments in March and June 2020, for the amount of Ps.603,395 and Ps.110,000, respectively, and a final cash payment in July 2020 for the amount of Ps.534,605, the Company concluded this transaction and received the payment of a dividend from Radiópolis in the amount of Ps.285,669. As a result of this transaction the Group recognized a pre-tax gain of disposition on Radiópolis of Ps. 932,449 in consolidated other income for the year ended December 31, 2020. Following this transaction, the Group classified its former Radio operations as disposed operations in the segment information of its consolidated statements of income for the years ended December 31, 2020, 2019 and 2018. The Group did not classify its former Radio operations as discontinued operations in these consolidated statements of income, as these operations did not represent a separate major line of business in any of those years, based on a materiality assessment performed by management (see Notes 2 (b), 22 and 26). |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Financial Risk Management | |
Financial Risk Management | 4. (a) Market Risk Market risk is the exposure to an adverse change in the value of financial instruments caused by market factors including changes in equity prices, interest rates, foreign currency exchange rates, commodity prices and inflation rates. The Group is exposed to market risks arising from changes in equity prices, interest rates, foreign currency exchange rates and inflation rates, in both the Mexican and U.S. markets. Market risk management activities are monitored by the Investments, Risk Management and Treasury Committee on a quarterly basis. (i) Foreign Exchange Risk The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the U.S. dollar and in those subsidiaries with functional currency other than the Mexican peso. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. Foreign currency exchange risk is monitored by assessing the net monetary liability position in U.S. dollars and the forecasted cash flow needs for anticipated U.S. dollar investments and servicing the Group’s U.S. dollar-denominated debt. Management has set up a policy to require Group companies to manage their foreign exchange risk against their functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use forward contracts. In compliance with the procedures and controls established by the Risk Management Committee, in 2020 and 2019, the Group entered into certain derivative transactions with certain financial institutions in order to manage its exposure to market risks resulting from changes in interest rates and foreign currency exchange rates. The objective in managing foreign currency fluctuations is to reduce earnings and cash flow volatility. Foreign Currency Position The foreign currency position of monetary items of the Group at December 31, 2020, was as follows: Foreign Currency Amounts Year-End (Thousands) Exchange Rate Mexican Pesos Assets: U.S. dollars 1,154,453 Ps. 19.9493 Ps. 23,030,529 Euros 19,260 24.3774 469,509 Swiss francs 438 22.5299 9,868 Argentinean pesos 66,482 15,763 Chilean pesos 327,357 9,166 Other currencies — — 7,713 Liabilities: U.S. dollars (1) 5,161,009 Ps. 19.9493 Ps. 102,958,517 Euros 1,151 24.3774 28,058 Swiss francs 659 22.5299 14,847 Chilean pesos 632,679 17,715 Colombian pesos 8,246,548 47,005 Other currencies — — 3,332 The foreign currency position of monetary items of the Group at December 31, 2019, was as follows: Foreign Currency Amounts Year-End (Thousands) Exchange Rate Mexican Pesos Assets: U.S. dollars 1,258,623 Ps. 18.8838 Ps. 23,767,585 Euros 51,398 21.1995 1,089,612 Swiss francs 3,071 19.5345 59,990 Colombian pesos 2,744,483 0.0058 15,918 Argentinean pesos 28,269 0.3154 8,916 Chilean pesos 110,984 0.0254 2,819 Other currencies — — 5,832 Liabilities: U.S. dollars (1) 5,257,954 Ps. 18.8838 Ps. 99,290,152 Swiss francs 4,069 19.5345 79,486 Euros 912 21.1995 19,334 Chilean pesos 689,094 0.0254 17,503 Colombian pesos 4,195,172 0.0058 24,332 Other currencies — — 3,075 (1) As of December 31, 2020 and 2019, monetary liabilities include U.S.$1,130.9 million (Ps.22,559,983) and U.S.$2,470.6 million (Ps.46,653,315), respectively, related to long-term debt designated as a hedging instrument of the Group’s investments in UHI and the investment in Open-Ended Fund (see Note 14). As of March 31, 2021, the exchange rate was Ps.20.4692 per U.S. dollar, which represents the interbank free market exchange rate on that date as reported by Banco Nacional de México, S.A. or Citibanamex. The Group is subject to the risk of foreign currency exchange rate fluctuations, resulting primarily from the net monetary position in U.S. dollars and U.S. dollar equivalent amounts of the Group’s Mexican operations, as follows (in millions of U.S. dollars): December 31, 2020 2019 U.S. dollar-denominated and U.S. dollar-equivalent monetary assets, primarily cash and cash equivalents, and non-current investments in financial instruments (1) U.S.$ 1,125.1 U.S.$ 1,253.3 U.S. dollar-denominated and U.S. dollar-equivalent monetary liabilities, primarily trade accounts payable, Senior debt securities, lease liabilities, and other liabilities (2) (3) (5,115.9) (5,231.8) Net liability position U.S.$ (3,990.8) U.S.$ (3,978.5) (1) As of December 31, 2020 and 2019, this line includes U.S. dollar equivalent amounts of U.S.$24.5 million and U.S.$57.6 million, respectively, related to other foreign currencies, primarily Euros. (2) As of December 31, 2020 and 2019, this line includes U.S. dollar equivalent amounts of U.S.$2.0 million and U.S.$5.0 million, respectively, related to other foreign currencies, primarily Euros. (3) As of December 31, 2020 and 2019, monetary liabilities include U.S.$1,130.9 million (Ps.22,559,983) and U.S.$2,470.6 million (Ps.46,653,315), respectively, related to long-term debt designated as a hedging instrument of the Group’s investments in UHI and the investment in Open-Ended Fund (see Note 14). At December 31, 2020, a hypothetical 10% appreciation/depreciation in the U.S. dollar to Mexican peso exchange rate would result in a foreign exchange gain/loss, net of hedge, of Ps.5,705,342, in the consolidated statement of income. At December 31, 2019, a hypothetical 10% appreciation/ depreciation in the U.S. dollar to Mexican peso exchange rate would result in a foreign exchange gain/loss, net of hedge, of Ps.2,847,471 in the consolidated statement of income. (ii) Cash Flow Interest Rate Risk The Group monitors the exposure to interest rate risk by: (i) evaluating differences between interest rates on its outstanding debt and short-term investments and market interest rates on similar financial instruments; (ii) reviewing its cash flow needs and financial ratios (indebtedness and interest coverage); (iii) assessing current and forecasted trends in the relevant markets; and (iv) evaluating peer Group and industry practices. This approach allows the Group to determine the interest rate “mix” between variable and fixed rate debt. The Group’s interest rate risk arises from long-term debt. Debt issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Debt issued at fixed rates expose the Group to fair value interest rate risk. During recent years the Group has maintained most of its debt in fixed rate instruments (see Note 14). Based on various scenarios, the Group manages its cash flow interest rate risk by using cross-currency interest rate swaps, exchange rate agreements and floating-to-fixed interest rate swaps. Cross-currency interest rate swap agreements allow the Group to hedge against Mexican peso depreciation on the interest payments for medium-term periods. Interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates. Sensitivity and Fair Value Analysis The sensitivity analyses that follow are intended to present the hypothetical change in fair value or loss in earnings due to changes in interest rates, inflation rates, foreign currency exchange rates and debt and equity market prices as they affect the Group’s financial instruments at December 31, 2020 and 2019. These analyses address market risk only and do not take into consideration other risks that the Group faces in the ordinary course of business, including country risk and credit risk. The hypothetical changes reflect management view of changes that are reasonably possible over a one-year period. For purposes of the following sensitivity analyses, the Group has made assumptions of a hypothetical change in fair value of 10% for expected near-term future changes in the United States interest rates, Mexican interest rates, inflation rates and Mexican peso to U.S. dollar exchange rate. The results of the analyses do not purport to represent actual changes in fair value or losses in earnings that the Group will incur. Difference between Fair Value and Carrying Value Assuming a Difference between Hypothetical Fair Value and 10% Increase in December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Assets: Long-term loan and interest receivable from GTAC Ps. 821,253 Ps. 824,092 Ps. 2,839 Ps. 85,248 Open-Ended Fund 1,135,803 1,135,803 — — Other equity instruments 5,397,504 5,397,504 — — Liabilities (2) (3) : U.S. dollar-denominated debt: Senior Notes due 2025 11,969,580 14,609,830 2,640,250 4,101,233 Senior Notes due 2026 5,984,790 6,840,854 856,064 1,540,149 Senior Notes due 2032 5,984,790 9,193,415 3,208,625 4,127,967 Senior Notes due 2040 11,969,580 16,780,992 4,811,412 6,489,511 Senior Notes due 2045 19,949,300 24,282,886 4,333,586 6,761,875 Senior Notes due 2046 17,954,370 24,970,938 7,016,568 9,513,662 Senior Notes due 2049 14,961,975 18,978,667 4,016,692 5,914,559 Peso-denominated debt: Notes due 2027 4,500,000 5,035,860 535,860 1,039,446 Senior Notes due 2037 4,500,000 4,087,575 (412,425) (3,668) Senior Notes due 2043 6,500,000 5,150,860 (1,349,140) (834,054) Long-term notes payable to Mexican banks 19,602,893 19,801,142 198,249 2,178,363 Lease liabilities 9,292,351 9,343,100 50,749 985,059 Derivative financial instruments (1) 3,476,223 3,476,223 — — Difference between Fair Value and Carrying Value Assuming a Difference between Hypothetical Fair Value and 10% Increase in December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Assets: Warrants issued by UHI Ps. 33,775,451 Ps. 33,775,451 Ps. — Ps. — Long-term loan and interest receivable from GTAC 872,317 875,585 3,268 90,827 Open-Ended Fund 4,688,202 4,688,202 — — Other equity instruments 5,751,001 5,751,001 — — Derivative financial instruments (1) 4,592 4,592 — — Liabilities (2) (3) : U.S. dollar-denominated debt: Senior Notes due 2025 11,330,280 13,243,624 1,913,344 3,237,706 Senior Notes due 2026 5,665,140 6,079,885 414,745 1,022,734 Senior Notes due 2032 5,665,140 7,571,346 1,906,206 2,663,341 Senior Notes due 2040 11,330,280 14,139,283 2,809,003 4,222,931 Senior Notes due 2045 18,883,800 19,739,047 855,247 2,829,152 Senior Notes due 2046 16,995,420 20,565,308 3,569,888 5,626,419 Senior Notes due 2049 14,162,850 15,364,426 1,201,576 2,738,019 Peso-denominated debt: Notes due 2027 4,500,000 4,656,375 156,375 622,013 Senior Notes due 2037 4,500,000 4,133,385 (366,615) 46,724 Senior Notes due 2043 6,500,000 4,853,485 (1,646,515) (1,161,167) Long-term notes payable to Mexican banks 22,845,382 23,012,707 167,325 2,468,596 Lease liabilities 9,363,520 9,120,903 (242,617) 669,473 Other notes payable 1,324,063 1,295,780 (28,283) 101,295 Derivative financial instruments (1) 915,290 915,290 — — (1) Given the nature and the tenor of these derivative financial instruments, an increase of 10% in the interest and/or exchange rates would not be an accurate sensitivity analysis on the fair value of these financial instruments. (2) The carrying value of debt is stated in this table at its principal amount. (3) The fair value of the Senior Notes and Notes due by the Group are within Level 1 of the fair value hierarchy as there is a quoted market price for them. The fair value of the lease liabilities are within Level 2 of the fair value hierarchy and has been estimated based on cash flows discounted using an estimated weighted average cost of capital. The fair value of held-to-maturity securities are within Level 1 of the fair value hierarchy, and were based on market interest rates to the listed securities. (iii) Price Risk The Group is exposed to equity securities price risk because of investments held by the Group and classified in the consolidated statements of financial position as non-current investments in financial instruments. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group. The Group is not exposed to commodity price risk. (b) Credit Risk Credit risk is managed on a Group basis, except for credit risk relating to accounts receivable balances. Each local entity is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposure to customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of “AA” in local scale for domestic institutions and “BBB” in global scale for foreign institutions are accepted. If customers are independently rated, these ratings are used. If there is no independent rating, the Group’s risk control function assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Company’s management. See Note 7 for further disclosure on credit risk. No credit limits were exceeded during the reporting period, and management does not expect any losses from non-performance by the counterparties. The Group historically has not had significant credit losses arising from customers. (c) Liquidity Risk Cash flow forecasting is performed in the operating entities of the Group and aggregated by corporate management. Corporate management monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal statement of financial position ratio targets and, if applicable external regulatory or legal requirements. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing investments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts. At December 31, 2020 and 2019, the Group held cash and cash equivalents of Ps.29,058,093 and Ps.27,452,265, respectively (see Note 6). The table below analyses the Group’s non-derivative and derivative financial liabilities as well as related contractual interest on debt and lease liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows. Less Than 12 Months 12-36 Months 36-60 Months Maturities January 1, 2021 to January 1, 2022 to January 1, 2024 to Subsequent to At December 31, 2020 December 31, 2021 December 31, 2023 December 31, 2025 December 31, 2025 Total Debt (1) Ps. 617,489 Ps. 8,985,404 Ps. 21,969,580 Ps. 92,304,805 Ps. 123,877,278 Lease liabilities 1,277,754 2,184,098 2,240,777 3,589,722 9,292,351 Trade and other liabilities 33,936,100 4,078,823 644,830 3,137,092 41,796,845 Interest on debt (2) 5,997,185 15,177,002 13,256,713 90,128,177 124,559,077 Interest on lease liabilities 668,461 1,169,317 853,741 925,566 3,617,085 Less Than 12 Months 12-36 Months 36-60 Months Maturities January 1, 2020 to January 1, 2021 to January 1, 2023 to Subsequent to At December 31, 2019 December 31, 2020 December 31, 2022 December 31, 2024 December 31, 2024 Total Debt (1) Ps. 492,489 Ps. 8,852,893 Ps. 13,500,000 Ps. 99,532,910 Ps. 122,378,292 Lease liabilities 1,257,766 2,491,539 2,381,812 3,232,403 9,363,520 Other notes payable 1,324,063 — — — 1,324,063 Trade and other liabilities 31,588,449 3,426,610 1,035,998 2,488,379 38,539,436 Interest on debt (2) 6,565,402 16,351,837 14,404,394 91,956,556 129,278,189 Interest on lease liabilities 731,591 1,417,722 984,003 755,862 3,889,178 Interest on other notes payable 5,938 — — — 5,938 (1) The amounts of debt are disclosed on a principal amount basis (see Note 14). (2) Interest to be paid in future years on outstanding debt as of December 31, 2020 and 2019, based on contractual interest rate and exchange rates as of that date. Capital Management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders and to maintain an optimal capital structure in order to minimize the cost of capital . |
Critical Accounting Estimates a
Critical Accounting Estimates and Assumptions | 12 Months Ended |
Dec. 31, 2020 | |
Critical Accounting Estimates and Assumptions | |
Critical Accounting Estimates and Assumptions | 5. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. By definition, the resulting accounting estimates will seldom equal the related actual results. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of consolidated assets and liabilities within the next financial year are addressed below: (a) Accounting for Programming The Group produces a significant portion of programming for initial broadcast over its television networks in Mexico, its primary market. Following the initial broadcast of this programming, the Group then licenses some of this programming for broadcast in secondary markets, such as Mexico, the United States, Latin America, Asia, Europe and Africa. Under IFRS, in order to properly capitalize and subsequently amortize production costs related to this programming, the Group must estimate the expected future benefit period over which a given program will generate revenues (generally, over a five-year period). The Group then amortizes the production costs related to a given program over the expected future benefit period. Under this policy, the Group generally expenses approximately 70% of the production costs related to a given program in its initial broadcast run and defers and expenses the remaining production costs over the remainder of the expected future benefit period (see Note 2 (g)). The Group estimates the expected future benefit periods based on past historical revenue patterns and usage for similar types of programming and any potential future events, such as new outlets through which the Group can exploit or distribute its programming, including its consolidated subsidiaries and equity investees. To the extent that a given future expected benefit period is shorter than the estimate, the Group may have to accelerate capitalized production costs sooner than anticipated. Conversely, to the extent that a given future expected benefit period is longer than the estimate, the Group may have to extend the amortization schedule for the remaining capitalized production costs. The Group also enters into license arrangements with various third party programming producers and providers, pursuant to which it receives the rights to broadcast programming produced by third parties over its television networks in Mexico. For programming licensed from third parties, the Group estimates the expected future benefit period based upon the term of the license. In addition, the Group may purchase programming from third parties, from time to time. In this case, the Group estimates the expected future benefit period based on the anticipated number of showings in Mexico. To the extent that a given future expected benefit period is shorter than the estimate, the Group may have to accelerate the amortization of the purchase price or the license fee sooner than anticipated. Conversely, to the extent that a given future expected benefit period is longer than the estimate, the Group may have to extend the amortization schedule for the remaining portion of the purchase price or the license fee. Assuming a hypothetical 10% decrease in expected future revenue from the Group’s programming as of December 31, 2020, the balance of such programming would decrease in the amount of Ps.349,704, with a corresponding increase in programming amortization expense. (b) Goodwill and Other Indefinite-lived Intangible Assets Goodwill and other intangible assets with indefinite useful lives are reviewed for impairment at least annually. When an impairment test is performed, the recoverable amount is assessed by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant CGU and the fair value less cost to sell. The recoverable amount of CGUs has been determined based on the higher of value in use and fair value less costs to disposal calculations. These calculations require the use of estimates, which include management’s expectations of future revenue growth, operating costs, profit margins and operating cash flows for each CGU, long-term growth rates and discount rates based on weighted average cost of capital, among others. During 2020 and 2019, the Group recorded impairment adjustments for other indefinite-lived intangible assets (trademarks) related to its Publishing business. See Note 2 (b) and (l) for disclosure regarding concession intangible assets. (c) Long-lived Assets The Group presents certain long-lived assets other than goodwill and indefinite-lived intangible assets in its consolidated statement of financial position. Long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may no longer be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Recoverability is analyzed based on projected cash flows. Estimates of future cash flows involve considerable management judgment. These estimates are based on historical data, future revenue growth, anticipated market conditions, management plans, and assumptions regarding projected rates of inflation and currency fluctuations, among other factors. If these assumptions are not correct, the Group would have to recognize a write-off or write-down or accelerate the amortization schedule related to the carrying value of these assets (see Notes 2 (m), 13 and 22). The Group has not recorded any significant impairment charges during any of the years presented herein. (d) Deferred Income Taxes The Group records its deferred tax assets based on the likelihood that these assets are realized in the future. This likelihood is assessed by taking into consideration the future taxable income. In the event the Group were to determine that it would be able to realize its deferred tax assets in the future in excess of the net recorded amount, an adjustment to the deferred tax asset would increase income in the period such determination was made. Should the Group determine that it would not be able to realize all or part of its net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. (e) Financial Assets Measured at Fair Value The Group has a significant amount of financial assets that are measured at fair value on a recurring basis. The degree of management’s judgment involved in determining the fair value of a financial asset varies depending upon the availability of quoted market prices. When observable quoted market prices exist, that is the fair value estimate the Group uses. To the extent such quoted market prices do not exist, management uses other means to determine fair value (see Notes 4 and 15). (f) Warrants issued by UHI The Company’s management applied significant judgment to determine the classification of the warrants issued by UHI and held by the Group through December 29, 2020. These warrants did not comply with the definition of a derivative financial instrument because the initial investment that the Group paid to acquire the original instrument (Convertible Debentures) was significant and a derivative requires no initial investment or one that is smaller than would be required for a contract with similar response to changes in market factors; therefore, the Group classified the warrants issued by UHI as equity instrument with changes in fair value recognized in other comprehensive income or loss in consolidated equity. Significant judgment was applied by the Company’s management in assessing that the characteristics of the warrants issued by UHI were closer to an equity instrument in accordance with the IAS 32 Financial Instruments: Presentation and IFRS 9 (see Notes 3, 9, 10 and 15). |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents | |
Cash and Cash Equivalents | 6. Cash and cash equivalents as of December 31, 2020 and 2019, consisted of: 2020 2019 Cash and bank accounts Ps. 5,094,610 Ps. 1,758,262 Short-term investments (1) 23,963,483 25,694,003 Total cash and cash equivalents Ps. 29,058,093 Ps. 27,452,265 (1) Highly-liquid investments with an original maturity of three months or less at the date of acquisition. |
Trade Notes and Accounts Receiv
Trade Notes and Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Trade Notes and Accounts Receivable, Net | |
Trade Notes and Accounts Receivable, Net | 7. Trade notes and accounts receivable, net as of December 31, 2020 and 2019, consisted of: 2020 2019 Non-interest bearing notes received from customers as deposits and advances mainly in connection with annual (“upfront basis”) and from time to time (“scatter basis”) prepayments (see Note 2 (p)) Ps. 3,327,579 Ps. 4,188,293 Trade accounts receivable 13,265,351 15,144,534 Loss allowance (4,249,133) (4,846,643) Ps. 12,343,797 Ps. 14,486,184 As of December 31, 2020 and 2019, the aging analysis of the trade notes and accounts receivable that were past due is as follows: 2020 2019 1 to 90 days Ps. 3,634,710 Ps. 4,180,830 91 to 180 days 1,386,243 1,182,634 More than 180 days 4,044,530 4,706,908 The carrying amounts of the Group’s trade notes and account receivables denominated in other than peso currencies are as follows: 2020 2019 U.S. dollar Ps. 2,905,396 Ps. 3,610,639 Other currencies 75,369 45,114 At December 31 Ps. 2,980,765 Ps. 3,655,753 Movements on the Group for loss allowance of trade notes and account receivables are as follows: 2020 2019 At January 1 Ps. (4,846,643) Ps. (4,379,316) Impairment provision (1,352,432) (1,549,801) Write-off of receivables 1,949,942 996,185 Reclassification to current assets held for sale — 86,289 At December 31 Ps. (4,249,133) Ps. (4,846,643) The maximum exposure to credit risk of the trade notes and accounts receivable as of December 31, 2020 and 2019 is the carrying value of each class of receivables mentioned above. |
Transmission Rights and Program
Transmission Rights and Programming | 12 Months Ended |
Dec. 31, 2020 | |
Transmission Rights and Programming. | |
Transmission Rights and Programming | 8. At December 31, 2020 and 2019, transmission rights and programming consisted of: 2020 2019 Transmission rights Ps. 9,695,030 Ps. 8,671,434 Programming 4,683,980 5,709,414 14,379,010 14,380,848 Non-current portion of: Transmission rights 5,257,926 4,630,513 Programming 2,724,870 3,271,077 7,982,796 7,901,590 Current portion of transmission rights and programming Ps. 6,396,214 Ps. 6,479,258 Transmission rights and programming charged to consolidated cost of sales for the years ended December 31, 2020, 2019 and 2018, amounted to Ps.12,691,287, Ps.14,515,285 and Ps.18,009,554, respectively (see Note 21). |
Investments in Financial Instru
Investments in Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Financial Instruments | |
Investments in Financial Instruments | 9. At December 31, 2020 and 2019, the Group had the following investments in financial instruments: 2020 2019 Equity instruments measured at FVOCIL: Warrants issued by UHI (1) Ps. — Ps. 33,775,451 Open-Ended Fund (2) 1,135,803 4,688,202 Other equity instruments (3) 5,397,504 5,751,001 6,533,307 44,214,654 Other 469,405 51,245 Ps. 7,002,712 Ps. 44,265,899 (1) Investment in warrants issued by UHI and exercisable for UHI’s common stock. The Group exercised these warrants for common stock of UHI on December 29, 2020, at an exercise price of U.S.$0.01 per warrant. The warrants did not entitle the holder to any voting rights or other rights as a stockholder of UHI. The warrants did not bear interest. As of December 29, 2020 and December 31, 2019, the Group owned 4,590,953 warrant shares, which upon their exercise and together with its investment in shares of UHI, represented 35.9% on a fully-diluted, as-converted basis of the equity capital in UHI. As of December 31, 2020, and resulting from the exercise of the warrants, the Group owns a total of 35.9% of the equity of UHI, on a fully-diluted, as-converted basis. In January 2017, in a Declaratory Ruling, the U.S. Federal Communications Commission (“FCC”) approved an increase in the authorized aggregate foreign ownership of UHI’s issued and outstanding shares of common stock from 25% to 49% and authorized the Group to hold up to 40% of the voting interest and 49% of the equity interest of UHI. In conjunction with the acquisition of the majority stock of UHI by a group of investors, which was announced on February 25, 2020, the Company’s management assessed the implicit value of UHI’s shares in comparison to the fair value of its warrants and concluded that such implicit value did not constitute evidence of a condition that existed as of December 31, 2019, and reviewed the assumptions and inputs related to its discounted cash flow model used to determine the fair value of its investment in warrants as of December 31, 2019, concluding that the fair value of the warrants at such date was appropriate. During the first quarter of 2020, as a result of revised cashflow forecasts and increasing uncertainty due to the COVID-19 pandemic, the Company’s management recognized: (i) a decline in the estimated fair value of the Group’s investment in warrants of UHI in the amount of Ps.21,937,152, which was accounted for in other comprehensive income or loss, net of income tax of Ps.6,581,146, for the year ended December 31, 2020; and (ii) an impairment loss that decreased the carrying value of the Group’s investment in shares of UHI in the amount of Ps.5,455,356, which was accounted for in share of income or loss of associates and joint ventures in the consolidated statement of income for the year ended December 31, 2020 (see Notes 2 (i), 10 and 15). (2) The Group has an investment in an Open-Ended Fund that has as a primary objective to achieve capital appreciation by using a broad range of strategies through investments in securities, including without limitation stock, debt and other financial instruments, a principal portion of which are considered as Level 1 financial instruments, in telecom, media and other sectors across global markets, including Latin America and other emerging markets. Shares may be redeemed on a quarterly basis at the Net Asset Value (“NAV”) per share as of such redemption date. The fair value of this fund is determined by using the NAV per share. The NAV per share is calculated by determining the value of the fund assets, all of which are measured at fair value, and subtracting all of the fund liabilities and dividing the result by the total number of issued shares. In July and November 2019, the Company redeemed a portion of its investment in Open-Ended Fund at the aggregate fair value amount of U.S.$121.6 million (Ps.2,301,682) and recognized cash proceeds from this redemption for such aggregate amount. In September and December 2020, the Company redeemed a portion of its investment in Open-Ended Fund at the aggregate fair value amount of U.S.$153.7 million (Ps.3,155,643) and recognized cash proceeds from this redemption for such aggregate amount (see Note 2 (i)). (3) Other equity instruments include publicly traded instruments, and their fair value is determined by using quoted market prices at the measurement date (see Note 2 (i)). A roll forward of investments in financial assets at FVOCIL for the years ended December 31, 2020 and 2019 is presented as follows: Warrants Open-Ended Other Equity Issued by UHI Fund Instruments Total At January 1, 2020 Ps. 33,775,451 Ps. 4,688,202 Ps. 5,751,001 Ps. 44,214,654 Disposition of investments — (3,159,970) — (3,159,970) Change in fair value in other comprehensive income (1) (16,387,752) (392,429) (353,497) (17,133,678) Warrants exercised for common stock of UHI (17,387,699) — — (17,387,699) At December 31, 2020 Ps. — Ps. 1,135,803 Ps. 5,397,504 Ps. 6,533,307 Warrants Open-Ended Other Equity Other Financial Issued by UHI Fund Instruments Assets Total At January 1, 2019 Ps. 34,921,530 Ps. 7,662,726 Ps. 6,545,625 Ps. 72,612 Ps. 49,202,493 Disposition of investments — (2,331,785) — (72,723) (2,404,508) Change in fair value in other comprehensive income (1) (1,146,079) (642,739) (794,624) 111 (2,583,331) At December 31, 2019 Ps. 33,775,451 Ps. 4,688,202 Ps. 5,751,001 Ps. — Ps. 44,214,654 (1) The foreign exchange gain in 2020 derived from the hedged warrants issued by UHI and the investment in Open-Ended Fund was hedged by foreign exchange loss in the consolidated statement of income for the year ended December 31, 2020, in the amount of Ps.5,511,412 and Ps.471,097, respectively. The foreign exchange loss in 2019 derived from the hedged warrants issued by UHI and the investment in Open-Ended Fund was hedged by foreign exchange gain in the consolidated statement of income for the year ended December 31, 2019 in the amount of Ps.1,403,384 and Ps.289,298, respectively (see Notes 14 and 23). The maximum exposure to credit risk of the investments in financial instruments as of December 31, 2020 and 2019 is the carrying value of the financial assets mentioned above. |
Investments in Associates and J
Investments in Associates and Joint Ventures | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Associates and Joint Ventures | |
Investments in Associates and Joint Ventures | 10. At December 31, 2020 and 2019, the Group had the following investments in associates and joint ventures accounted for by the equity method: Ownership as of December 31, 2020 2020 2019 Associates: UHI (1) 35.9 % Ps. 21,424,180 Ps. 8,189,662 OCEN and subsidiaries (2) 40.0 % 556,251 693,970 Other 113,905 115,161 Joint ventures: Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries (“GTAC”) (3) 33.3 % 514,731 567,165 Periódico Digital Sendero, S.A.P.I. de C.V. and subsidiary (collectively, “PDS”) (4) 50.0 % 204,464 196,474 Ps. 22,813,531 Ps. 9,762,432 (1) The Group accounts for its investment in common stock of UHI, the parent company of Univision, under the equity method due to the Group’s ability to exercise significant influence, as defined under IFRS Standards, over UHI’s operations. Beginning on December 29, 2020, the Group had the ability to exercise significant influence over the operating and financial policies of UHI because (i) it owns 5,701,335 Class "A" shares of common stock of UHI, representing 35.9% on a fully-diluted of the outstanding shares of UHI and 40.6% of the voting shares of UHI as of December 31, 2020, as a result of exercising all of its outstanding warrants for common stock of UHI on that date; and (ii) it has three officers of the Company designated as members of the Board of Directors of UHI, which is composed of nine directors. Before December 29, 2020, the Group had the ability to exercise significant influence over the operating and financial policies of UHI because (i) it owned 1,110,382 Class “C” shares of common stock of UHI, representing 10% of the outstanding total shares of UHI and 14% of the voting shares of UHI, and 4,590,953 warrants issued by UHI, which upon their exercise and together with the current investment in shares of UHI, represented approximately 36% on a fully-diluted, as-converted basis of the equity capital in UHI, subject to certain conditions, laws and regulations; and (ii) it had three officers and one director of the Company designated as members of the Board of Directors of UHI, which was composed of 19 directors of 22 available Board seats. The Group is also a party to a Program Licensing Agreement (“PLA”), as amended, with Univision, pursuant to which Univision has the right to broadcast certain Televisa content in the United States, and to another program license agreement pursuant to which the Group has the right to broadcast certain Univision’s content in Mexico, in each case through 7.5 years after the Group has voluntarily sold two-thirds of its initial investment made in UHI in December 2010. On February 25, 2020, UHI, Searchlight Capital Partners, LP ("Searchlight"), a global private investment firm, and ForgeLight LLC ("ForgeLight"), an operating and investment company focused on the media and consumer technology sectors, announced a definitive agreement in which Searchlight and ForgeLight would acquire a majority ownership interest in UHI from all stockholders of UHI other than the Group. Terms of the transaction were not disclosed. The Group elected to retain its approximately 36% stake in UHI's equity upon exercise of its warrants on a fully-diluted, as-converted basis. Under the terms of the acquisition, Searchlight and ForgeLight would purchase the remaining 64% ownership interest from the other stockholders of UHI. The transaction, which was subject to customary closing conditions including receipt of regulatory approvals, closed on December 29, 2020. In conjunction with this transaction and a related decline in the estimated fair value of the Group's investment in warrants issued by UHI, the Company's management recognized an impairment loss in the amount of Ps.5,455,356 that decreased the carrying value of the Group's investment in shares of UHI in the first quarter of 2020. This impairment adjustment was accounted for in share of income or loss of associates and joint ventures in the Group's consolidated statement of income for the year ended December 31, 2020 (see Notes 1, 2 (a), 9, 15, 20 and 23). (2) OCEN is a majority-owned subsidiary of CIE, and is engaged in the live entertainment business in Mexico, Central America and Colombia. In July 2019, the Group announced the sale of its 40% equity interest in OCEN to Live Nation Entertainment, Inc., and classified this non-current investment as current assets held for sale. As a result, the Group discontinued the use of the equity method to account for the investment in this associate beginning on August 1, 2019. In 2019, the stockholders of OCEN approved the payment of dividends in the aggregate amount of Ps.1,931,000, of which Ps.772,400 were paid to the Group, as well as a capital reduction in the amount of Ps.200,466, of which Ps.80,186 were paid to the Group. In 2020 and 2018, the stockholders of OCEN did not pay any dividends. Beginning on May 31, 2020, the Company (i) ceased to classify the assets of OISE Entretenimiento, including the investment in OCEN, as current assets held for sale; (ii) began to classify its equity interest in OCEN as an investment in associates and joint ventures in its consolidated statement of financial position; (iii) recognized its share of income of OCEN, which was discontinued from August 1, through December 31, 2019, in consolidated retained earnings as of January 1, 2020 in the amount of Ps.147,975; (iv) began to recognize its share of income or loss of OCEN for the year ended December 31, 2020; and (v) restated for comparison purposes its previously reported consolidated statement of financial position as of December 31, 2019, which included its investment in OCEN as current assets held for sale, to conform with the current classification of this asset as investments in associates and joint ventures. As of December 31, 2020 and 2019, the investment in OCEN included goodwill of Ps.359,613 (see Notes 3 and 20). (3) GTAC was granted a 20‑year contract for the lease of a pair of dark fiber wires held by the Mexican Federal Electricity Commission and a concession to operate a public telecommunications network in Mexico with an expiration date in 2030. GTAC is a joint venture in which a subsidiary of the Company, a subsidiary of Grupo de Telecomunicaciones Mexicanas, S.A. de C.V. and a subsidiary of Megacable, S.A. de C.V. have an equal equity participation of 33.3%. In June 2010, a subsidiary of the Company entered into a long-term credit facility agreement to provide financing to GTAC for up to Ps.688,217 , with an annual interest rate of the Mexican Interbank Interest Rate (“Tasa de Interés Interbancaria de Equilibrio” or “TIIE”) plus 200 basis points. Under the terms of this agreement, principal and interest are payable at dates agreed by the parties, between 2013 and 2021. As of December 31, 2020 and 2019, GTAC had used a principal amount of Ps.688,183, under this credit facility. During the year ended December 31, 2020, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.123,390 . During the year ended December 31, 2019, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.114,574. Also, a subsidiary of the Company entered into supplementary long-term loans to provide additional financing to GTAC for an aggregate principal amount of Ps.946,128, with an annual interest of TIIE plus 200 basis points computed on a monthly basis and payable on an annual basis or at dates agreed by the parties. Under the terms of these supplementary loans, principal amounts can be prepaid at dates agreed by the parties before their maturities between 2023 and 2030. During the years ended December 31, 2020 and 2019, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.122,656 and Ps.86,321, respectively. The net investment in GTAC as of December 31, 2020 and 2019, included amounts receivable in connection with this long-term credit facility and supplementary loans to GTAC in the aggregate amount of Ps.821,253 and Ps.872,317, respectively. These amounts receivable are in substance a part of the Group’s net investment in this investee (see Note 15). (4) The Group accounts for its investment in PDS under the equity method, due to its 50% interest in this joint venture. In September 2017, PDS acquired substantially all of the equity interest in Now New Media, S.A.P.I. de C.V., an online news website in Mexico City, in the aggregate amount of Ps.81,749. As of December 31, 2020 and 2019, the Group’s investment in PDS included intangible assets and goodwill in the aggregate amount of Ps.113,837 (see Note 3). A roll forward of investments in associates and joint ventures for the years ended December 31, 2020 and 2019, is presented as follows: 2020 2019 At January 1 Ps. 9,762,432 Ps. 10,546,728 Impairment loss in investment in shares of UHI (5,455,356) — Share of (loss) or income of associates and joint ventures, net (284,312) 581,023 Dividends from OCEN — (772,400) Long-term loans granted to GTAC, net 132,926 172,223 Foreign currency translation adjustments 1,360,735 (337,742) GTAC payments of principal and interest (246,046) (200,895) Capital stock reduction in OCEN — (80,186) Exercise of warrants for UHI shares 17,387,699 — Additional share of income of OCEN (see Note 3) 147,975 — Other 7,478 (146,319) At December 31 Ps. 22,813,531 Ps. 9,762,432 IFRS summarized financial information of UHI as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018, including adjustments made by the Group when using the equity method, such as purchase price adjustments at the time of acquisition, impairment adjustments and adjustments for differences in accounting policies, is set forth below. IFRS summarized financial information of UHI as of December 31, 2020 and 2019 (amounts in thousands of U.S. dollars): 2020 2019 Current assets U.S.$ 1,470,301 U.S.$ 1,199,800 Non-current assets 8,249,358 8,521,477 Total assets 9,719,659 9,721,277 Current liabilities 712,300 554,700 Non-current liabilities 8,630,459 8,720,377 Total liabilities 9,342,759 9,275,077 Total net assets U.S.$ 376,900 U.S.$ 446,200 The table below reconciles the summarized financial information of UHI to the carrying amount of the Group´s interest in UHI as of December 31, 2020 and 2019 (amounts in thousands of U.S. dollars): 2020 2019 Ownership as of December 31 35.9 % 10 % Group's share of net assets U.S.$ 135,307 U.S.$ 44,568 Group's share of net assets Ps. 2,699,282 Ps. 841,619 Goodwill 18,687,080 7,426,968 Adjustments for differences in accounting policies 37,818 (78,925) Carrying amount of the Group´s interest in UHI Ps. 21,424,180 Ps. 8,189,662 IFRS summarized financial information of UHI for the years ended December 31, 2020, 2019 and 2018 (amounts in thousands of U.S. dollars): 2020 2019 2018 Revenue U.S.$ 2,541,900 U.S.$ 2,687,900 U.S.$ 2,713,800 Profit from continuing operations 36,400 290,200 161,000 Post-tax loss from discontinued operations — (13,200) (148,900) Net income 36,400 277,000 12,100 Other comprehensive (loss) income (23,700) (99,000) 15,410 Total comprehensive income 12,700 178,000 27,510 Dividends received from UHI U.S.$ — U.S.$ — U.S.$ — The table below reconciles the summarized financial information of UHI to the carrying amount of the Group´s interest in UHI for the years ended December 31, 2020, 2019 and 2018 (amounts in thousands of U.S. dollars): 2020 2019 2018 Net income (10%) U.S.$ 3,635 U.S.$ 27,668 U.S.$ 1,208 Other comprehensive (loss) income (10%) (2,367) (9,889) 1,538 Net income (10%) Ps. 78,133 Ps. 532,896 Ps. 23,258 Other comprehensive (loss) income (10%) (50,872) (190,457) 29,620 Adjustments for differences in accounting policies: Net (loss) income (79,163) (55,058) 166,044 Other comprehensive loss (6,657) (45,263) (76,521) Group's interest in UHI: Net (loss) income (1,030) 477,838 189,302 Other comprehensive loss (57,529) (235,720) (46,901) Impairment loss in investment in shares of UHI Ps. (5,455,356) Ps. — Ps. — Combined condensed balance sheet information related to the Group’s share in associates other than UHI as of December 31, 2020 and 2019, including adjustments made by the Group when using the equity method, such as fair value adjustments made at the time of acquisition, is set forth below: 2020 2019 Current assets Ps. 923,784 Ps. 1,454,771 Non-current assets 967,584 920,140 Total assets 1,891,368 2,374,911 Current liabilities 1,229,246 1,439,238 Non-current liabilities 315,260 426,043 Total liabilities 1,544,506 1,865,281 Net assets Ps. 346,862 Ps. 509,630 Goodwill 359,613 359,613 Adjustments for differences in accounting policies (36,319) (60,112) Carrying amount of the Group´s interest in associates Ps. 670,156 Ps. 809,131 Combined condensed balance sheet information related to the Group’s share in joint ventures as of December 31, 2020 and 2019, including adjustments made by the Group when using the equity method, such as fair value adjustments made at the time of acquisition, is set forth below: 2020 2019 Current assets Ps. 151,151 Ps. 155,628 Non-current assets 541,861 599,856 Total assets 693,012 755,484 Current liabilities 45,320 43,556 Non-current liabilities 860,357 924,759 Total liabilities 905,677 968,315 Net assets Ps. (212,665) Ps. (212,831) Goodwill 113,837 113,837 Adjustments for differences in accounting policies (3,230) (9,684) Long-term loans granted to GTAC, net 821,253 872,317 Carrying amount of the Group´s interest in joint ventures Ps. 719,195 Ps. 763,639 The Group recognized its share of comprehensive (loss) income of associates and joint ventures other than UHI for the years ended December 31, 2020, 2019 and 2018, as follows: 2020 2019 2018 Share of (loss) income of associates and joint ventures, net Ps. (283,282) Ps. 103,185 Ps. 343,631 Share of other comprehensive (loss) income of associates and joint ventures: Foreign currency translation adjustments, net 1,757 (2,556) 2,987 Other items of comprehensive loss, net (5,261) 2,117 (3,399) (3,504) (439) (412) Share of comprehensive (loss) income of associates and joint ventures Ps. (286,786) Ps. 102,746 Ps. 343,219 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net | |
Property, Plant and Equipment, Net | 11. The analysis of the changes in property, plant and equipment is as follows: Construction Buildings Technical Satellite Furniture Transportation Computer Leasehold and Projects and Land Equipment Transponders and Fixtures Equipment Equipment Improvements in Progress (1) Total Cost: January 1, 2019 Ps. 14,635,604 Ps. 133,171,187 Ps. 10,301,713 Ps. 1,203,942 Ps. 3,085,762 Ps. 8,848,455 Ps. 3,215,239 Ps. 11,683,180 Ps. 186,145,082 Additions 25,132 11,152,691 — 55,434 74,684 199,749 37,213 7,563,381 19,108,284 Dismantling cost — 797,176 — — — — — — 797,176 Retirements and reclassifications to other accounts (266,687) (2,332,091) — (163,756) (199,494) (965,029) (36,943) (1,967,705) (5,931,705) Transfers to right-of-use asset — (1,896,682) (4,275,619) — — — — — (6,172,301) Transfers to intangibles assets — — — — — — — (1,487,056) (1,487,056) Transfers and reclassifications 94,791 1,188,429 — 64,380 39,724 470,161 220,219 (2,077,704) — Effect of translation 20,366 (114,068) — (1,255) (354) (5,071) (1,354) 272 (101,464) December 31, 2019 14,509,206 141,966,642 6,026,094 1,158,745 3,000,322 8,548,265 3,434,374 13,714,368 192,358,016 Additions 6,252 12,384,030 — 24,562 75,219 253,783 19,283 7,368,609 20,131,738 Dismantling cost — 71,241 — — — — — — 71,241 Retirements and reclassifications to other accounts (53,559) (547,789) — (2,426) (45,726) (72,113) (627) (2,575,544) (3,297,784) Transfers to intangibles assets — (2,725) — — — — — (1,042,340) (1,045,065) Transfers and reclassifications 415,289 3,381,566 — 82,855 92,370 467,754 152,591 (4,592,425) — Effect of translation 9,724 9,223 — 64 47 693 15 1,002 20,768 December 31, 2020 Ps. 14,886,912 Ps. 157,262,188 Ps. 6,026,094 Ps. 1,263,800 Ps. 3,122,232 Ps. 9,198,382 Ps. 3,605,636 Ps. 12,873,670 Ps. 208,238,914 Depreciation: January 1, 2019 Ps. (4,939,196) Ps. (78,108,278) Ps. (5,187,749) Ps. (648,264) Ps. (1,650,668) Ps. (6,192,249) Ps. (2,076,148) Ps. — Ps. (98,802,552) Depreciation of the year (239,066) (15,272,635) (282,414) (114,382) (309,376) (956,985) (262,942) — (17,437,800) Retirements 102,538 2,955,945 — 157,477 153,235 941,061 27,925 — 4,338,181 Transfers to right-of-use assets — 987,924 1,781,508 — — — — — 2,769,432 Reclassifications — 27,103 — — 1,481 (28,584) — — — Effect of translation 3,648 92,902 — 1,210 324 4,534 — December 31, 2019 (5,072,076) (89,317,039) (3,688,655) (603,959) (1,805,004) (6,232,223) (2,309,828) — (109,028,784) Depreciation of the year (268,684) (15,545,278) (282,414) (116,651) (267,356) (945,389) (263,731) — (17,689,503) Retirements 37,704 1,622,089 — 2,208 41,131 71,752 35 — 1,774,919 Reclassifications (1) — — — — — — — — — Effect of translation (4,703) (8,642) — (69) (37) (452) (16) — (13,919) December 31, 2020 Ps. (5,307,759) Ps. (103,248,870) Ps. (3,971,069) Ps. (718,471) Ps. (2,031,266) Ps. (7,106,312) Ps. (2,573,540) Ps. — Ps. (124,957,287) Carrying value: At January 1, 2019 Ps. 9,696,408 Ps. 55,062,909 Ps. 5,113,964 Ps. 555,678 Ps. 1,435,094 Ps. 2,656,206 Ps. 1,139,091 Ps. 11,683,180 Ps. 87,342,530 At December 31, 2019 Ps. 9,437,130 Ps. 52,649,603 Ps. 2,337,439 Ps. 554,786 Ps. 1,195,318 Ps. 2,316,042 Ps. 1,124,546 Ps. 13,714,368 Ps. 83,329,232 At December 31, 2020 Ps. 9,579,153 Ps. 54,013,318 Ps. 2,055,025 Ps. 545,329 Ps. 1,090,966 Ps. 2,092,070 Ps. 1,032,096 Ps. 12,873,670 Ps. 83,281,627 (1) Retirements and reclassifications to other accounts include (i) set-up box refurbishment projects that are subsequently reclassified to inventory in order to be assigned or sold to a customer; and (ii) projects in progress related to certain costs that are reclassified to programming when a specific program benefits from those costs. Depreciation charges are presented in Note 21. Property, plant and equipment include the following technical equipment leased to subscribers in the Cable and Sky segments as of December 31: 2020 2019 Subscriber leased set-top equipment Ps. 42,564,180 Ps. 34,923,489 Accumulated depreciation (26,885,031) (22,269,138) Ps. 15,679,149 Ps. 12,654,351 |
Right-of-use Assets, Net
Right-of-use Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Right-of-use Assets, Net | |
Right-of-use Assets, Net | 12. The analysis of the changes of right-of-use assets, net, is as follows: Satellite Technical Buildings Transponders Equipment Others Total Cost: January 1, 2019 Ps. 4,758,787 Ps. 4,275,619 Ps. 1,896,682 Ps. 38,525 Ps. 10,969,613 Additions or inflationary adjustments 480,222 — 82,568 25,263 588,053 Retirements (153,888) — (290,421) (5,767) (450,076) Effect of translation 121 — — — 121 December 31, 2019 5,085,242 4,275,619 1,688,829 58,021 11,107,711 Additions 655,135 — 195,153 66,791 917,079 Reclassifications (107,075) — — 107,075 — Retirements (169,899) — — (749) (170,648) Effect of translation 1,181 — — — 1,181 December 31, 2020 Ps. 5,464,584 Ps. 4,275,619 Ps. 1,883,982 Ps. 231,138 Ps. 11,855,323 Depreciation: January 1, 2019 Ps. — Ps. (1,781,508) Ps. (987,924) Ps. — Ps. (2,769,432) Depreciation of the year (618,374) (285,041) (134,775) (32,160) (1,070,350) Retirements 9,714 — 275,262 — 284,976 Effect of translation 147 — — — 147 December 31, 2019 (608,513) (2,066,549) (847,437) (32,160) (3,554,659) Depreciation of the year (607,791) (285,041) (140,985) (62,957) (1,096,774) Reclassifications 35,312 — — (35,312) — Retirements 4,211 — 156 3,806 8,173 Effect of translation 102 — — — 102 December 31, 2020 Ps. (1,176,679) Ps. (2,351,590) Ps. (988,266) Ps. (126,623) Ps. (4,643,158) Carrying value: At January 1, 2019 Ps. 4,758,787 Ps. 2,494,111 Ps. 908,758 Ps. 38,525 Ps. 8,200,181 At December 31, 2019 Ps. 4,476,729 Ps. 2,209,070 Ps. 841,392 Ps. 25,861 Ps. 7,553,052 At December 31, 2020 Ps. 4,287,905 Ps. 1,924,029 Ps. 895,716 Ps. 104,515 Ps. 7,212,165 Depreciation charges are presented in Note 21. |
Intangible Assets and Goodwill,
Intangible Assets and Goodwill, Net | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets and Goodwill, Net | |
Intangible Assets and Goodwill, Net | 13. As of December 31, 2020 and 2019, intangible assets and goodwill are summarized as follows: 2020 2019 Accumulated Accumulated Cost Amortization Carrying Value Cost Amortization Carrying Value Intangible assets and goodwill with indefinite useful lives: Trademarks Ps. 35,242 Ps. — Ps. 35,242 Ps. 175,444 Ps. — Ps. 175,444 Concessions 15,166,067 — 15,166,067 15,166,067 — 15,166,067 Goodwill 14,113,626 — 14,113,626 14,113,626 — 14,113,626 29,314,935 — 29,314,935 29,455,137 — 29,455,137 Intangible assets with finite useful lives: Trademarks 2,227,096 (1,971,314) 255,782 2,127,697 (1,899,187) 228,510 Concessions 553,505 (442,804) 110,701 553,505 (332,103) 221,402 Licenses and software 13,139,480 (8,446,906) 4,692,574 10,858,388 (6,843,169) 4,015,219 Subscriber lists 8,804,334 (7,258,070) 1,546,264 8,782,852 (6,632,419) 2,150,433 Payments for renewal of concessions 5,825,559 — 5,825,559 5,821,828 — 5,821,828 Other intangible assets 5,169,795 (4,191,392) 978,403 5,198,960 (3,762,535) 1,436,425 35,719,769 (22,310,486) 13,409,283 33,343,230 (19,469,413) 13,873,817 Ps. 65,034,704 Ps. (22,310,486) Ps. 42,724,218 Ps. 62,798,367 Ps. (19,469,413) Ps. 43,328,954 Changes in intangible assets and goodwill with indefinite useful lives in 2020 and 2019, were as follows: 2020 Trademarks Concessions Goodwill Total Cost: Balance at beginning of period Ps. 175,444 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,455,137 Impairment adjustments (40,803) — — (40,803) Transfers and reclassifications (99,399) — — (99,399) Balance at end of period Ps. 35,242 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,314,935 2019 Trademarks Concessions Goodwill Total Cost: Balance at beginning of period Ps. 479,409 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,759,102 Impairment adjustments (67,574) — — (67,574) Transfers and reclassifications (236,391) — — (236,391) Balance at end of period Ps. 175,444 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,455,137 Changes in intangible assets with finite useful lives in 2020 and 2019, were as follows: 2020 Licenses Payments for Other and Subscriber Renewal of Intangible Trademarks Concessions Software Lists Concessions Assets Total Cost: Balance at beginning of period Ps. 2,127,697 Ps. 553,505 Ps. 10,858,388 Ps. 8,782,852 Ps. 5,821,828 Ps. 5,198,960 Ps. 33,343,230 Additions — — 959,813 — 3,731 271,633 1,235,177 Transfers from property, plant and equipment — — 1,247,347 — — — 1,247,347 Transfers to property, plant and equipment — — — — — (202,282) (202,282) Retirements — — (28,127) — — (25,013) (53,140) Transfers and reclassifications 99,399 — 84,823 16,428 — (73,124) 127,526 Effect of translation — — 17,236 5,054 — (379) 21,911 Balance at end of period 2,227,096 553,505 13,139,480 8,804,334 5,825,559 5,169,795 35,719,769 Amortization: Balance at beginning of period (1,899,187) (332,103) (6,843,169) (6,632,419) — (3,762,535) (19,469,413) Amortization of the year (72,127) (110,701) (1,717,282) (523,878) — (50,522) (2,474,510) Other amortization of the year (1) — — — — — (380,863) (380,863) Retirements — — 28,127 — — 2,003 30,130 Reclassifications — — 96,304 (96,719) — 415 — Effect of translation — — (10,886) (5,054) — 110 (15,830) Balance at end of period (1,971,314) (442,804) (8,446,906) (7,258,070) — (4,191,392) (22,310,486) Ps. 255,782 Ps. 110,701 Ps. 4,692,574 Ps. 1,546,264 Ps. 5,825,559 Ps. 978,403 Ps. 13,409,283 2019 Licenses Payments for Other and Subscriber Renewal of Intangible Trademarks Concessions Software Lists Concessions Assets Total Cost: Balance at beginning of period Ps. 1,891,306 Ps. 553,505 Ps. 9,065,582 Ps. 8,785,423 Ps. 5,993,891 Ps. 4,099,750 Ps. 30,389,457 Additions — — 913,108 — 67,285 1,126,357 2,106,750 Transfers from property, plant and equipment — — 1,487,056 — — — 1,487,056 Retirements — — (526,166) — (239,348) (90,324) (855,838) Transfers and reclassifications 236,391 — (68,641) 1,162 — 67,479 236,391 Effect of translation — — (12,551) (3,733) — (4,302) (20,586) Balance at end of period 2,127,697 553,505 10,858,388 8,782,852 5,821,828 5,198,960 33,343,230 Amortization: Balance at beginning of period (1,569,786) (221,402) (5,934,647) (6,108,251) (15,454) (3,235,503) (17,085,043) Amortization of the year (329,401) (110,701) (1,490,841) (530,013) (7,773) (31,917) (2,500,646) Other amortization of the year (1) — — — — — (531,426) (531,426) Retirements — — 529,403 — 23,227 79,108 631,738 Reclassifications — — 44,824 2,112 — (46,936) — Effect of translation — — 8,092 3,733 — 4,139 15,964 Balance at end of period (1,899,187) (332,103) (6,843,169) (6,632,419) — (3,762,535) (19,469,413) Ps. 228,510 Ps. 221,402 Ps. 4,015,219 Ps. 2,150,433 Ps. 5,821,828 Ps. 1,436,425 Ps. 13,873,817 (1) Other amortization of the year relates primarily to amortization of soccer player rights, which is included in consolidated cost of sales. All of the amortization charges are presented in Note 21. The changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions for the year ended December 31, 2020 and 2019, were as follows: Foreign Balance as of Currency Balance as of January 1, Translation Impairment December 31, 2020 Acquisitions Retirements Adjustments Adjustments Transfers 2020 Goodwill: Cable Ps. 13,794,684 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 13,794,684 Content 241,973 — — — — — 241,973 Other Businesses 76,969 — — — — — 76,969 Ps. 14,113,626 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 14,113,626 Indefinite-lived trademarks (see Note 3): Cable Ps. 132,212 Ps. — Ps. — Ps. — Ps. — Ps. (99,399) Ps. 32,813 Other Businesses 43,232 — — — (40,803) — 2,429 Ps. 175,444 Ps. — Ps. — Ps. — Ps. (40,803) Ps. (99,399) Ps. 35,242 Indefinite-lived concessions (see Note 3): Cable Ps. 15,070,025 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 15,070,025 Sky 96,042 — — — — — 96,042 Ps. 15,166,067 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 15,166,067 Foreign Balance as of Currency Balance as of January 1, Translation Impairment December 31, 2019 Acquisitions Retirements Adjustments Adjustments Transfers 2019 Goodwill: Cable Ps. 13,794,684 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 13,794,684 Content 241,973 — — — — — 241,973 Other Businesses 76,969 — — — — — 76,969 Ps. 14,113,626 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 14,113,626 Indefinite-lived trademarks (see Note 3): Cable Ps. 368,603 Ps. — Ps. — Ps. — Ps. — Ps. (236,391) Ps. 132,212 Other Businesses 110,806 — — — (67,574) — 43,232 Ps. 479,409 Ps. — Ps. — Ps. — Ps. (67,574) Ps. (236,391) Ps. 175,444 Indefinite-lived concessions (see Note 3): Cable Ps. 15,070,025 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. Sky 96,042 — — — — — Ps. 15,166,067 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. During the second half of 2020 and 2019, the Group monitored the market associated with its Publishing business, which is classified into the Other Businesses segment, which has experienced a general slow-down in Latin America. Accordingly, the Group reduced its cash flow expectations for some of its foreign operations. As a result, the Group compared the fair value of the intangible assets in the reporting units with the related carrying value and recorded an aggregate impairment charge in connection with trademarks of Ps.40,803 and Ps.67,574, in other expense, net, in the consolidated statements of income for the years ended December 31, 2020 and 2019, respectively. The key assumptions used for either fair value or value in use calculations of goodwill and intangible assets in 2020, were as follows (see Note 15): Cable Minimum Maximum Value in use calculations: Long-term growth rate 3.70 % 3.90 % Discount rate 10.50 % 11.60 % Fair value calculations: Multiple of sales Multiple of EBITDA (as defined) The key assumptions used for fair value calculations of goodwill and intangible assets in 2019, were as follows (see Note 15): Cable Other Businesses Minimum Maximum Minimum Maximum Long-term growth rate % % % % Discount rate % % % % As described in Note 2 (l), in 2015, the Company’s management estimated the remaining useful life of four years for acquired trademarks in specific locations of Mexico, in connection with the migration to an internally developed trademark in the Group’s Cable segment. Amortization of trademarks with a finite useful life amounted to Ps.321,520 , for the year ended December 31, 2019. In the fourth quarter of 2017, the Company’s management reviewed the useful life of certain Group’s television concessions accounted for as intangible assets in conjunction with the payment made in 2018 for renewal of concessions expiring in 2021, which amount was determined by the IFT before the renewal date (see Note 2 (b)). Based on such review, the Group classified these concessions as intangible assets with a finite useful life and began to amortize the related net carrying amount of Ps.553,505 in a period ending in 2021. Amortization of these concessions with a finite useful life amounted to Ps.110,701 for each of the years ended December 31, 2020 and 2019. Assuming a remaining useful life of five years, amortization of these concessions in future years is estimated in the following amounts: Year ended December 31, 2021 Ps. 110,701 |
Debt, Lease Liabilities and Oth
Debt, Lease Liabilities and Other Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt, Lease Liabilities and Other Notes Payable | |
Debt, Lease Liabilities and Other Notes Payable | 14. Debt, lease liabilities and other notes payable outstanding as of December 31, 2020 and 2019, were as follows: 2020 2019 Principal, Net Effective Finance of Finance Interest Interest Rate Principal Costs Costs Payable Total Total U.S. dollar Senior Notes: 6.625% Senior Notes due 2025 (1) % Ps. 11,969,580 Ps. (162,815) Ps. 11,806,765 Ps. 224,679 Ps. 12,031,444 Ps. 11,341,835 4.625% Senior Notes due 2026 (1) % 5,984,790 (24,424) 5,960,366 138,398 6,098,764 5,766,754 8.50% Senior Notes due 2032 (1) % 5,984,790 (19,870) 5,964,920 155,438 6,120,358 5,790,640 6.625% Senior Notes due 2040 (1) % 11,969,580 (120,485) 11,849,095 431,736 12,280,831 11,612,104 5% Senior Notes due 2045 (1) % 19,949,300 (412,967) 19,536,333 144,079 19,680,412 18,590,304 6.125% Senior Notes due 2046 (1) % 17,954,370 (119,284) 17,835,086 549,853 18,384,939 17,391,833 5.25% Senior Notes due 2049 (1) % 14,961,975 (294,210) 14,667,765 78,550 14,746,315 13,932,641 Total U.S. dollar debt 88,774,385 (1,154,055) 87,620,330 1,722,733 89,343,063 84,426,111 Mexican peso debt: 8.79% Notes due 2027 (2) % (16,122) 8.49% Senior Notes due 2037 (1) % (11,903) 7.25% Senior Notes due 2043 (1) % (53,091) Bank loans (3) % (88,350) Bank loans (Sky) (4) % — Bank loans (TVI) (5) % 852,893 (786) 852,107 — 852,107 Total Mexican peso debt 35,102,893 (170,252) 34,932,641 211,923 35,144,564 Total debt (6) 123,877,278 (1,324,307) 122,552,971 1,934,656 124,487,627 Less: Current portion of long-term debt 617,489 (498) 616,991 1,934,656 2,551,647 Long-term debt, net of current portion Ps. 123,259,789 Ps. (1,323,809) Ps. 121,935,980 Ps. — Ps. 121,935,980 Ps. Lease liabilities: Satellite transponder lease liabilities (7) % Ps. 3,818,559 Ps. — Ps. 3,818,559 Ps. — Ps. 3,818,559 Ps. Other lease liabilities (8) % 728,500 — 728,500 — 728,500 Lease liabilities recognized as of January 1, 2019 (8) 4,745,292 — 4,745,292 — 4,745,292 Total lease liabilities 9,292,351 — 9,292,351 — 9,292,351 Less: Current portion 1,277,754 — 1,277,754 — 1,277,754 Lease liabilities, net of current portion Ps. 8,014,597 Ps. — Ps. 8,014,597 Ps. — Ps. 8,014,597 Ps. Other notes payable: Total other notes payable (9) % Ps. — Ps. — Ps. — Ps. — Ps. — Ps. Less: Current portion — — — — — Other notes payable, net of current portion Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — (1) The Senior Notes due between 2025 and 2049, in the aggregate outstanding principal amount of U.S.$4,450 million and Ps.11,000,000, are unsecured obligations of the Company, rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness of the Company, and are junior in right of payment to all of the existing and future liabilities of the Company’s subsidiaries. Interest rate on the Senior Notes due 2025, 2026, 2032, 2037, 2040, 2043, 2045, 2046 and 2049, including additional amounts payable in respect of certain Mexican withholding taxes, is 6.97%, 4.86%, 8.94%, 8.93%, 6.97%, 7.62%, 5.26%, 6.44% and 5.52% per annum, respectively, and is payable semi-annually. These Senior Notes may not be redeemed prior to maturity, except: (i) in the event of certain changes in law affecting the Mexican withholding tax treatment of certain payments on the securities, in which case the securities will be redeemable, in whole or in part, at the option of the Company; and (ii) in the event of a change of control, in which case the Company may be required to redeem the securities at 101% of their principal amount. Also, the Company may, at its own option, redeem the Senior Notes due 2025, 2026, 2037, 2040, 2043, 2046 and 2049, in whole or in part, at any time at a redemption price equal to the greater of the principal amount of these Senior Notes or the present value of future cash flows, at the redemption date, of principal and interest amounts of the Senior Notes discounted at a fixed rate of comparable U.S. or Mexican sovereign bonds. The Senior Notes due 2026, 2032, 2040, 2043, 2045, 2046 and 2049 were priced at 99.385%, 99.431%, 98.319%, 99.733%, 96.534%, 99.677% and 98.588%, respectively, for a yield to maturity of 4.70%, 8.553%, 6.755%, 7.27%, 5.227%, 6.147% and 5.345%, respectively. The Senior Notes due 2025 were issued in two aggregate principal amounts of U.S.$400 million and U.S.$200 million, and were priced at 98.081% and 98.632%, respectively, for a yield to maturity of 6.802% and 6.787%, respectively. The agreement of these Senior Notes contains covenants that limit the ability of the Company and certain restricted subsidiaries engaged in the Group’s Content segment, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations and similar transactions. The Senior Notes due 2025, 2026, 2032, 2037, 2040, 2045, 2046 and 2049, are registered with the U.S. Securities and Exchange Commission (“SEC”). The Senior Notes due 2043 are registered with both the SEC and the Mexican Banking and Securities Commission (“Comisión Nacional Bancaria y de Valores” or “CNBV”). (2) In 2010, 2014, 2015 and October 2017, the Company issued Notes (“Certificados Bursátiles”) due 2020, 2021, 2022 and 2027, respectively, through the BMV in the aggregate principal amount of Ps.10,000,000, Ps.6,000,000, Ps.5,000,000 and Ps.4,500,000, respectively. In July 2019, the Company prepaid all of the outstanding Notes due 2021 and 2022 in the aggregate principal amount of Ps.11,000,000. In October 2019, the Company prepaid all of the outstanding Notes due 2020 in the aggregate principal amount of Ps.10,000,000. Interest rate on the Notes due 2020 was 7.38% per annum and was payable semi-annually. Interest rate on the Notes due 2021 and 2022 was the TIIE plus 35 basis points per annum and was payable every 28 days. Interest rate on the Notes due 2027 is 8.79% per annum and is payable semi-annually. The Company may, at its own option, redeem the Notes due 2027, in whole or in part, at any semi-annual interest payment date at a redemption price equal to the greater of the principal amount of the outstanding Notes and the present value of future cash flows, at the redemption date, of principal and interest amounts of the Notes discounted at a fixed rate of comparable Mexican sovereign bonds. The agreement of the Notes contains covenants that limit the ability of the Company and certain restricted subsidiaries appointed by the Company’s Board of Directors, and engaged in the Group’s Content segment, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations and similar transactions. (3) In 2017, the Company entered into long-term credit agreements with three Mexican banks, in the aggregate principal amount of Ps.6,000,000, with an annual interest rate payable on a monthly basis of 28-day TIIE plus a range between 125 and 130 basis points , and principal maturities between 2022 and 2023. The proceeds of these loans were used primarily for the prepayment in full of the Senior Notes due 2018. Under the terms of these loan agreements, the Company is required to: (a) maintain certain financial coverage ratios related to indebtedness and interest expense; and (b) comply with the restrictive covenant on certain spin-offs, mergers and similar transactions. In July 2019, the Company entered into a credit agreement for a five-year term loan with a syndicate of banks in the aggregate principal amount of Ps.10,000,000. The funds from this loan were used for general corporate purposes, including the refinancing of the Company's indebtedness. This loan bears interest at a floating rate based on a spread of 105 or 130 basis points over the 28-day TIIE rate depending on the Group's net leverage ratio. The credit agreement of this loan requires the maintenance of financial ratios related to indebtedness and interest expense. During 2018, the Company executed a revolving credit facility with a syndicate of banks, for up to an amount equivalent to U.S.$618 million payable in Mexican pesos, which funds may be used for the repayment of existing indebtedness and other general corporate purposes. In March 2020, the Company drew down Ps.14,770,694 under this revolving credit facility, with a maturity in the first quarter of 2022, and interest payable on a monthly basis at a floating rate based on a spread of 87.5 or 112.5 basis points over the 28-day TIIE rate depending on the Group's net leverage ratio. This facility was used by the Company as a prudent and precautionary measure to increase the Group's cash position and preserve financial flexibility in light of uncertainty in the global and local markets resulting from the COVID-19 outbreak. On October 6, 2020, the Company prepaid in full without penalty the principal amount of Ps.14,770,694 under this revolving credit facility. The Company retained the right to reborrow the facility in an amount of up to the Mexican peso equivalent of U.S.$618 million, and the facility remains available through March 2022. (4) In March 2016, Sky entered into long-term credit agreements with two Mexican banks in the aggregate principal amount of Ps.5,500,000, with maturities between 2021 and 2023, and interest payable on a monthly basis with an annual interest rate in the range of 7.0% and 7.13%. In July 2020, Sky prepaid a portion of these loans in the aggregate cash amount of Ps.2,818,091, which included principal amount prepayments of Ps.2,750,000, and related accrued interest and transaction costs in the amount of Ps.68,091. Under the terms of these credit agreements, the Company is required to: (a) maintain certain financial coverage ratios related to indebtedness and interest expense; and (b) comply with the restrictive covenant on spin-offs, mergers and similar transactions. (5) In 2020 and 2019, included outstanding balances in the aggregate principal amount of Ps.852,893 and Ps.1,345,382, respectively, in connection with credit agreements entered into by TVI with Mexican banks, with maturities between 2019 and 2022, bearing interest at an annual rate of TIIE plus a range between 100 and 125 basis points, which is payable on a monthly basis. This TVI long-term indebtedness is guaranteed by the Company. Under the terms of these credit agreements, TVI is required to comply with certain restrictive covenants and financial coverage ratios. (6) Total debt as of December 31, 2019, is presented net of unamortized finance costs in the aggregate amount of Ps.1,441,597, interest payable in the aggregate amount of Ps.1,943,863. (7) Under a capital lease agreement entered into with Intelsat Global Sales & Marketing Ltd. (“Intelsat”) in March 2010, Sky is obligated to pay at an annual interest rate of 7.30%, a monthly fee through 2027 of U.S.$3.0 million for satellite signal reception and retransmission service from 24 KU-band transponders on satellite IS‑21, which became operational in October 2012. The service term for IS‑21 will end at the earlier of: (a) the end of 15 years or; (b) the date IS-21 is taken out of service (see Note 12). (8) In 2020, includes lease liabilities recognized beginning on January 1, 2019 under IFRS 16 for an aggregate amount of Ps.4,745,292. Also, includes minimum lease payments of property and equipment under leases that qualify as lease liabilities. In 2020 and 2019, includes Ps.728,500 and Ps.699,066, respectively, in connection with a lease agreement entered into by a subsidiary of the Company and GTAC for the right to use certain capacity of a telecommunications network through 2029 (see Note 20). This lease agreement provides for annual payments through 2029. Other lease liabilities had terms which expired at various dates between 2019 and 2020. (9) Notes payable issued by the Group in 2016, in connection with the acquisition of a non-controlling interest in TVI. The cash payments made between 2018 and 2020 related to these notes payable amounted to an aggregate of Ps.1,330,000 and Ps.2,624,375, respectively, including interest of Ps.142,500 and Ps.249,375, respectively. Accumulated accrued interest for this transaction amounted to Ps.136,563 and Ps.201,874, as of December 31, 2019 and 2018, respectively. This was regarded as a Level 2 debt, which was fair valued using a discounted cash flow approach, which discounts the contractual cash flows using discount rates derived from observable market price of other quoted debt instruments. In February 2020, the Group repaid all of its outstanding other notes payable as of December 31, 2019. As of December 31, 2020 and 2019, the outstanding principal amounts of Senior Notes of the Company that have been designated as hedging instruments of the Group’s investments in UHI and the investment in Open-Ended Fund (hedged items) were as follows (see Notes 2 (e) and 4): December 31, 2020 December 31, 2019 Millions of Thousands of Millions of Thousands of Hedged Items U.S. dollars Mexican pesos U.S. dollars Mexican pesos Investment in shares of UHI (net investment hedge) U.S.$ 1,074.0 Ps. 21,424,180 U.S.$ 433.7 Ps. 8,189,662 Warrants issued by UHI (foreign currency fair value hedge) — — 1,788.6 33,775,451 Open-Ended Fund (foreign currency fair value hedge) 56.9 1,135,803 248.3 4,688,202 Total U.S.$ 1,130.9 Ps. 22,559,983 U.S.$ 2,470.6 Ps. 46,653,315 The foreign exchange gain or loss derived from the Company’s U.S. dollar denominated long-term debt designated as a hedge, for the years ended December 31, 2020 and 2019, is analyzed as follows (see Notes 9 and 23): Foreign Exchange Gain or Loss Derived from Year Ended Year Ended Senior Notes Designated as Hedging Instruments December 31, 2020 December 31, 2019 Recognized in: Comprehensive income Ps. (7,343,244) Ps. 2,030,424 Total foreign exchange (loss) gain derived from hedging Senior Notes Ps. (7,343,244) Ps. 2,030,424 Offset against: Foreign currency translation gain (loss) derived from the hedged net investment in shares of UHI Ps. 1,360,735 Ps. (337,742) Foreign exchange gain (loss) derived from hedged warrants issued by UHI 5,511,412 (1,403,384) Foreign exchange gain (loss) derived from the hedged Open-Ended Fund 471,097 (289,298) Total foreign currency translation and foreign exchange gain (loss) derived from hedged assets Ps. 7,343,244 Ps. (2,030,424) Maturities of Debt and Lease Liabilities Debt maturities for the years subsequent to December 31, 2020, are as follows: Unamortized Nominal Finance Costs 2021 Ps. 617,489 Ps. (498) 2022 5,485,404 (8,213) 2023 3,500,000 (6,290) 2024 10,000,000 (74,135) 2025 11,969,580 (162,815) Thereafter 92,304,805 (1,072,356) Ps. 123,877,278 Ps. (1,324,307) Future minimum payments under lease liabilities for the years subsequent to December 31, 2020, are as follows: 2021 Ps. 1,946,215 2022 1,708,943 2023 1,644,473 2024 1,583,671 2025 1,510,847 Thereafter 4,515,287 12,909,436 Less: Amount representing interest (3,617,085) Ps. 9,292,351 A reconciliation of long-term debt and lease liabilities arising from financing activities in the Group’s consolidated statement of cash flows for the year ended December 31, 2020 and 2019, is as follows: Cash Flow Non-Cash Changes Foreign Balance as of New Debt Exchange Balance as of January 1, 2020 New Debt Payments and Leases Income Interest December 31, 2020 Debt Ps. 122,378,292 Ps. 14,770,694 Ps. (18,013,183) Ps. — Ps. 4,741,475 Ps. — Ps. 123,877,278 Satellite transponder lease liabilities 4,014,567 — (456,465) — 260,457 — 3,818,559 Other lease liabilities 707,248 — (211,812) 195,308 — 37,756 728,500 Lease liabilities 4,641,705 — (953,771) 540,477 20,102 496,779 4,745,292 Total debt and lease liabilities Ps. 131,741,812 Ps. 14,770,694 Ps. (19,635,231) Ps. 735,785 Ps. 5,022,034 Ps. 534,535 Ps. 133,169,629 Cash Flow Non-Cash Changes Foreign Balance as of New Debt Exchange Balance as of January 1, 2019 New Debt Payments and Leases Income Interest December 31, 2019 Debt Ps. 123,124,638 Ps. 24,298,075 Ps. (21,989,156) Ps. — Ps. (3,055,265) Ps. — Ps. 122,378,292 Finance Costs — — (50,531) — — — (50,531) Satellite transponder lease liabilities — (387,428) — (167,778) — 4,014,567 Other lease liabilities — (172,195) — 707,248 Lease liabilities recognized as of January 1, 2019 — (883,533) (34,984) — 4,641,705 Total debt and lease liabilities Ps. 133,239,894 Ps. 24,298,075 Ps. (23,482,843) Ps. 845,507 Ps. (3,258,027) Ps. Ps. 131,691,281 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Financial Instruments | 15. The Group’s financial instruments presented in the consolidated statements of financial position included cash and cash equivalents, accounts and notes receivable, a long-term loan receivable from GTAC, warrants that were exercised for UHI’s common stock, on December 29, 2020, non- current investments in debt and equity securities, and in securities in the form of an open-ended fund, accounts payable, outstanding debt, lease liabilities, other notes payable, and derivative financial instruments. For cash and cash equivalents, accounts receivable, accounts payable, and the current portion of notes payable due to banks and other financial institutions, the carrying amounts approximate fair value due to the short maturity of these instruments. The fair value of the Group’s long-term debt securities are based on quoted market prices. The fair value of long-term loans that the Group borrowed from leading Mexican banks (see Note 14), has been estimated using the borrowing rates currently available to the Group for bank loans with similar terms and average maturities. The fair value of non-current investments in financial instruments, and currency option and interest rate swap agreements were determined by using valuation techniques that maximize the use of observable market data. The carrying and estimated fair values of the Group’s non-derivative financial instruments as of December 31, 2020 and 2019, were as follows: 2020 2019 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents Ps. 29,058,093 Ps. 29,058,093 Ps. 27,452,265 Ps. 27,452,265 Trade notes and accounts receivable, net 12,343,797 12,343,797 14,486,184 14,486,184 Warrants issued by UHI (see Note 9) — — 33,775,451 33,775,451 Long-term loan and interests receivable from GTAC (see Note 10) 821,253 824,092 872,317 875,585 Open-Ended Fund (see Note 9) 1,135,803 1,135,803 4,688,202 4,688,202 Other equity instruments (see Note 9) 5,397,504 5,397,504 5,751,001 5,751,001 Liabilities: Senior Notes due 2025, 2032 and 2040 Ps. 29,923,950 Ps. 40,584,237 Ps. 28,325,700 Ps. 34,954,254 Senior Notes due 2045 19,949,300 24,282,886 18,883,800 19,739,047 Senior Notes due 2037 and 2043 11,000,000 9,238,435 11,000,000 8,986,870 Senior Notes due 2026 and 2046 23,939,160 31,811,792 22,660,560 26,645,193 Senior Notes due 2049 14,961,975 18,978,667 14,162,850 15,364,426 Notes due 2027 4,500,000 5,035,860 4,500,000 4,656,375 Long-term notes payable to Mexican banks 19,602,893 19,801,142 22,845,382 23,012,707 Lease liabilities 9,292,351 9,343,100 9,363,520 9,120,903 Other notes payable — — 1,324,063 1,295,780 The carrying values (based on estimated fair values), notional amounts, and maturity dates of the Group’s derivative financial instruments as of December 31, 2020 and 2019, were as follows: Notional Amount December 31, 2020: Carrying (U.S. Dollars in Derivative Financial Instruments Value Thousands) Maturity Date Liabilities: Derivatives recorded as accounting hedges (cash flow hedges): TVI’s interest rate swap (a) Ps. 1,759 Ps. 122,400 May 2022 TVI’s interest rate swap (b) 23,784 Ps. 730,493 April 2022 Interest rate swaps (c) 109,146 Ps. 2,000,000 October 2022 Interest rate swaps (d) 86,171 Ps. 1,500,000 October 2022 Interest rate swaps (e) 180,941 Ps. 2,500,000 February 2023 Interest rate swaps (f) 762,827 Ps. 10,000,000 June 2024 Forward (g) 714,763 U.S.$ 330,500 January 2021 through March 2022 Derivatives not recorded as accounting hedges: Interest rate swap (h) 204,250 Ps. 9,385,347 March 2022 TVI's forward (i) 176,868 U.S.$ 88,353 January 2021 through February 2022 Empresas Cablevisión’s forward (j) 190,726 U.S.$ 96,789 January 2021 through February 2022 Sky's forward (k) 318,701 U.S.$ 135,000 February 2021 through February 2022 Forward (l) 706,287 U.S.$ 344,898 January 2021 through February 2022 Total liabilities Ps. 3,476,223 Notional Amount December 31, 2019: Carrying (U.S. Dollars in Derivative Financial Instruments Value Thousands) Maturity Date Assets: Derivatives recorded as accounting hedges (cash flow hedges): TVI’s interest rate swap (a) Ps. 4,592 Ps. 407,200 May 2020 through May 2022 Total assets Ps. 4,592 Liabilities: Derivatives recorded as accounting hedges (cash flow hedges): TVI’s interest rate swap (b) Ps. 8,943 Ps. 938,182 April 2022 Interest rate swaps (c) 38,543 Ps. 2,000,000 October 2022 Interest rate swaps (d) 30,702 Ps. 1,500,000 October 2022 Interest rate swaps (e) 83,122 Ps. 2,500,000 February 2023 Interest rate swaps (f) 185,205 Ps. 6,000,000 June 2024 Forward (g) 144,466 U.S.$ 218,688 January 2020 through September 2020 Derivatives not recorded as accounting hedges: TVI's forward (i) 45,968 U.S.$ 66,000 January 2020 through October 2020 Empresas Cablevisión’s forward (j) 48,474 U.S.$ 73,000 January 2020 through October 2020 Sky's forward (k) 87,090 U.S.$ 127,850 January 2020 through September 2020 Forward (l) 242,777 U.S.$ 361,550 January 2020 through October 2020 Total liabilities Ps. 915,290 (a) TVI has entered into several derivative transaction agreements (interest rate swaps) with two financial institutions from August 2013 through May 2022 to hedge the variable interest rate exposure resulting from Mexican peso loans of a total principal amount of Ps.122,400 and Ps.407,200, as of December 31, 2020 and 2019, respectively. Under these agreements, the Company receives monthly payments based on aggregate notional amounts of Ps.122,400 and Ps.407,200 and makes payments based on the same notional amount at an annual weighted average fixed rate of 5.585%. TVI has recognized the change in fair value of this transaction as an accounting hedge, and recorded a loss of Ps.60,730 and Ps.54,383 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In the years ended as of December 31, 2020 and 2019, TVI recorded a gain of Ps.2,046 and Ps.26,962, respectively, in consolidated other finance income or expense. (b) In March and April 2017, TVI entered into several derivative transaction agreements (interest rate swaps) with two financial institutions through April 2022 to hedge the variable interest rate exposure resulting from Mexican peso loan of a total principal amount of Ps.730,493 and Ps.938,182, as of December 31, 2020 and 2019, respectively. Under these agreements, the Company receives monthly payments based on aggregate notional amounts of Ps.730,493 and Ps.938,182, as of December 31, 2020 and 2019, respectively, at an annual variable rate of 28- days TIIE and makes monthly payments based on the same notional amounts at an annual weighted average fixed rate of 7.2663%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a loss of Ps.23,784 and Ps.8,943 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. TVI recorded a (loss) gain of Ps.(11,700) and Ps.11,738 for this transaction agreement in consolidated other finance income or expense as of December 31, 2020 and 2019, respectively. (c) In November 2017, the Company entered into a derivative transaction agreement (interest rate swap) through October 2022, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.2,000,000. Under this transaction, the Company receives monthly payments based on an aggregate notional amount of Ps.2,000,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual fixed rate of 7.3275%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.107,884 and Ps.38,543 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In 2020 and 2019, the Company recorded a (loss) gain of Ps.(28,719) and Ps.20,933, respectively, in consolidated other finance income or expense. (d) In November and December 2017, the Company entered into a derivative transaction agreement (interest rate swap) through October 2022, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.1,500,000. Under this transaction, the Company receives monthly payments based on an aggregate notional amount of Ps.1,500,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual fixed rate of 7.35%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.85,217 and Ps.30,702, in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In 2020, the Company recorded a loss of Ps.21,741 in consolidated other finance income or expense. (e) In January 2018, the Company entered into a derivative transaction agreement (interest rate swap) through February 2023, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.2,500,000. Under this transaction, the Company receives monthly payments based on aggregate notional amount of Ps.2,500,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual fixed rate of 7.7485%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.175,498 and Ps.83,122 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In 2020, the Company recorded a loss of Ps.42,553 in consolidated other finance income or expense. (f) In June and July 2019 and October 2020, the Company entered into a derivative transaction agreements (interest rate swap) through June 2024, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.10,000,000 and Ps.6,000,000 as of December 31, 2020 and 2019, respectively. Under this agreements, the Company receives monthly payments based on aggregate notional amounts of Ps.10,000,000 and Ps.6,000,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual weighted average fixed rate of 6.7620%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.747,630 in other comprehensive income or loss as of December 31, 2020. In 2020, the Company recorded a loss of Ps.89,336 in consolidated other finance income or expense. (g) As of December 31, 2020 and 2019, the Company had entered into derivative contracts of foreign currency (forwards) to fix the exchange rate for the purchase of U.S.$330.5 million and U.S.$218.7 million, respectively, at an average exchange rate of Ps.22.5859 and Ps.19.9256, respectively. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.714,763 and Ps.144,466 for this transaction agreement in other comprehensive income or loss as of December 31, 2020, and 2019, respectively. In 2020 and 2019, the Company recorded a gain (loss) of Ps.308,562 and Ps.(107,440) in consolidated other finance income or expense, respectively. (h) In March 2020, the Company entered into a derivative transaction agreement (interest rate swap) through March 2022, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.9,385,347. Under this transaction, the Company receives monthly payments based on aggregate notional amounts of Ps.9,385,347, at an annual variable rate of 28 days of TIIE, and makes monthly payments based on the same notional amount at an annual fixed rate of 6.0246%. In 2020, the Company recorded a loss of Ps.274,285 in consolidated other finance income or expense. (i) As of December 31, 2020, TVI had foreign currency contracts (forwards) in the aggregate notional amount of U.S.$88.4 million at an average rate of Ps.22.4570. As a result of the change in fair value of these agreements in the year ended December 31, 2020, the Company recorded a loss of Ps.3,482 in consolidated other finance income or expense. (j) As of December 31, 2020, Empresas Cablevisión had foreign currency contracts (forwards) in the aggregate notional amount of U.S.$96.8 million at an average rate of Ps.22.4103 . As a result of the change in fair value of these agreements in the year ended December 31, 2020 the Company recorded a loss of Ps.300 in consolidated other finance income or expense. (k) As of December 31, 2020, Sky had foreign currency contracts (forwards) in the aggregate notional amount of U.S.$135.0 million at an average rate of Ps.22.8411. As a result of the change in fair value of these agreements in the year ended December 31, 2020 the Company recorded a gain of Ps.43,419 in consolidated other finance income or expense. (l) As of December 31, 2020 and 2019, the Company had foreign currency contracts (forward) in the aggregate notional amount of U.S.$344.9 million and U.S.$361.5 million at an average rate of Ps.22.4872 and Ps.19.9898 , respectively. As a result of the change in fair value of these agreements, in the years ended December 31, 2020 and 2019, the Company recorded a gain (loss) of Ps.207,412 and Ps.(820,585), in consolidated other finance income or expense, respectively. Fair Value Measurement Assets and Liabilities Measured at Fair Value on a Recurring Basis All fair value adjustments as of December 31, 2020 and 2019, represent assets or liabilities measured at fair value on a recurring basis. In determining fair value, the Group’s financial instruments are separated into two categories: investments in financial assets at FVOCIL and derivative financial instruments. Financial assets and liabilities measured at fair value as of December 31, 2020 and 2019: Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2020 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Assets: At FVOCIL: Open-Ended Fund Ps. 1,135,803 Ps. — Ps. 1,135,803 Ps. — Other equity instruments 5,397,504 5,397,504 — — Total Ps. 6,533,307 Ps. 5,397,504 Ps. 1,135,803 Ps. — Liabilities: Derivative financial instruments Ps. 3,476,223 Ps. — Ps. 3,476,223 Ps. — Total Ps. 3,476,223 Ps. — Ps. 3,476,223 Ps. — Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2019 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Assets: At FVOCIL: Open-Ended Fund Ps. 4,688,202 Ps. — Ps. 4,688,202 Ps. — Other equity instruments 5,751,001 5,751,001 — — Warrants issued by UHI 33,775,451 — — 33,775,451 Derivative financial instruments 4,592 — 4,592 — Total Ps. 44,219,246 Ps. 5,751,001 Ps. 4,692,794 Ps. 33,775,451 Liabilities: Derivative financial instruments Ps. 915,290 Ps. — Ps. 915,290 Ps. — Total Ps. 915,290 Ps. — Ps. 915,290 Ps. — The table below presents the reconciliation for all assets and liabilities measured at fair value using internal models with significant unobservable inputs (Level 3) during the years ended December 31, 2020 and 2019: 2020 2019 Balance at beginning of year Ps. 33,775,451 Ps. 34,921,530 Included in other comprehensive income (16,387,752) (1,146,079) Warrants exercised for common stock of UHI (17,387,699) — Balance at the end of year Ps. — Ps. 33,775,451 Non-current Financial Assets Investments in debt securities or with readily determinable fair values, are classified as non-current investments in financial instruments, and are recorded at fair value with unrealized gains and losses included in consolidated stockholders’ equity as accumulated other comprehensive result. Non-current financial assets are generally valued using quoted market prices or alternative pricing sources with reasonable levels of price transparency. Such instruments are classified in Level 1, Level 2, and Level 3, depending on the observability of the significant inputs. Open-Ended Fund The Group has an investment in an Open-Ended Fund that has as a primary objective to achieve capital appreciation by using a broad range of strategies through investments in securities, including without limitation stock, debt and other financial instruments, a principal portion of which are considered as Level 1 financial instruments, in telecom, media and other sectors across global markets, including Latin America and other emerging markets. Shares may be redeemed on a quarterly basis at the NAV per share as of such redemption date (see Notes 4 and 9). UHI Warrants In July 2015, the Group exchanged its investment in U.S.$1,125 million principal amount of Convertible Debentures due 2025 issued by UHI for 4,858,485 warrants that were exercisable for UHI’s common stock and exercised 267,532 of these warrants to increase its equity stake in UHI from 7.8% to 10%. On December 29, 2020, the Group exercised all of its remaining warrants for common shares of UHI to increase its equity stake in UHI from 10% to 35.9% on a fully diluted basis (see Notes 9 and 10). The carrying amount of these warrants included the original value of U.S.$1,063.1 million invested by the Group in December 2010 in the form of Convertible Debentures issued by UHI that were then exchanged for these warrants in July 2015. The Group determined the fair value of its investment in warrants by using the income approach based on post-tax discounted cash flows. The income approach requires management to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include long-term growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates based on weighted average cost of capital within a range of 8% to 9%, among others. The Group´s estimates for market growth were based on historical data, various internal estimates and observable external sources when available and are based on assumptions that are consistent with the strategic plans and estimates used to manage the underlying business. Since the described methodology is an internal model with significant unobservable inputs, the UHI warrants are classified as Level 3. Additionally, the Group determined the fair value of its investment in warrants by using the Black-Scholes model (“BSPM”). The BSPM involves the use of significant estimates and assumptions. The assumptions used as of December 29, 2020, December 31, 2019 and 2018, included the UHI stock´s spot price of U.S.$190, U.S.$390 and U.S.$387 per share on a fully-diluted, as–converted basis, respectively, and the UHI stock’s expected volatility of 64%, 40% and 36%, respectively. The Company's management applied significant judgment to determine the classification of the warrants issued by UHI that were exercisable for UHI's common stock. These warrants did not comply with the definition of a derivative financial instrument because the initial investment that the Group paid to acquire the original instrument (Convertible Debentures) was significant and a derivative requires no initial investment or one that is smaller than would be required for a contract with similar response to changes in market factors; therefore, the Group classified the warrants issued by UHI as equity instruments with changes in fair value recognized in other comprehensive income or loss in consolidated equity. Significant judgment was applied by the Company's management in assessing that the characteristics of the warrants issued by UHI are closer to an equity instrument in accordance with IAS 32 Financial Instruments: Presentation (see Note 9). Disclosures for Each Class of Assets and Liabilities Subject to Recurring Fair Value Measurements Categorized Within Level 3 The Corporate Finance Department of the Company has established rules for a proper portfolio asset classification according to the fair value hierarchy defined by the IFRS Standards. On a monthly basis, any new assets recognized in the portfolio are classified according to this criterion. Subsequently, there is a quarterly review of the portfolio in order to analyze the need for a change in classification of any of these assets. Sensitivity analysis is performed on the Group’s investments with significant unobservable inputs (Level 3) in order to obtain a reasonable range of possible alternative valuations. This analysis is carried out by the Corporate Finance Department of the Company. Derivative Financial Instruments Derivative financial instruments include swaps, forwards and options (see Notes 2 (w) and 4). The Group’s derivative portfolio is entirely over-the-counter (“OTC”). The Group’s derivatives are valued using industry standard valuation models; projecting future cash flows discounted to present value, using market-based observable inputs including interest rate curves, foreign exchange rates, and forward and spot prices for currencies. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit spreads considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. All derivatives are classified in Level 2. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The majority of the Group’s non-financial instruments, which include goodwill, intangible assets, inventories, transmission rights and programming, property, plant and equipment and right-of-use assets are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually in the fourth quarter for goodwill and indefinite-lived intangible assets) such that a non-financial instrument is required to be evaluated for impairment, a resulting asset impairment would require that, the non-financial instrument be recorded at the lower of carrying amount or its recoverable amount. The impairment test for goodwill involves a comparison of the estimated fair value of each of the Group’s reporting units to its carrying amount, including goodwill. The Group determines the fair value of a reporting unit using the higher between the value in use and the fair value less costs to sell, which utilize significant unobservable inputs (Level 3) within the fair value hierarchy. The impairment test for intangible assets not subject to amortization involves a comparison of the estimated fair value of the intangible asset with its carrying value. The Group determines the fair value of the intangible asset using a discounted cash flow analysis, which utilizes significant unobservable inputs (Level 3) within the fair value hierarchy. Determining fair value requires the exercise of significant judgment, including judgment about appropriate discount rates, perpetual growth rates, the amount and timing of expected future cash flows for a period of time that comprise five years, as well as relevant comparable company earnings multiples for the market-based approach. Once an asset has been impaired, it is not remeasured at fair value on a recurring basis; however, it is still subject to fair value measurements to test for recoverability of the carrying amount . |
Post-employment Benefits
Post-employment Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Post-employment Benefits | |
Post-employment Benefits | 16. Certain companies in the Group have collective bargaining contracts which include defined benefit pension plans and other retirement benefits for substantially all of their employees. Additionally, the Group has defined benefit pension plans for certain eligible executives and employees. All pension benefits are based on salary and years of service rendered. Under the provisions of the Mexican Labor Law, seniority premiums are payable based on salary and years of service to employees who resign or are terminated prior to reaching retirement age. Some companies in the Group have seniority premium benefits which are greater than the legal requirement. After retirement age employees are no longer eligible for seniority premiums. Post-employment benefits are actuarially determined by using nominal assumptions and attributing the present value of all future expected benefits proportionately over each year from date of hire to age 65. The Group used actuarial assumptions to determine the present value of defined benefit obligations, as follows: 2020 2019 Discount rate 6.6 % 7.0 % Salary increase 5.0 % 5.0 % Inflation rate 3.5 % 3.5 % Had the discount rate of 6.6% used by the Group in 2020 been decreased by 50 basis points, the impact on defined benefit obligation would have been an increase to Ps.3,382,711 as of December 31, 2020. Had the discount rate of 7.0% used by the Group in 2019 been decreased by 50 basis points, the impact on defined benefit obligation would have been an increase to Ps.3,037,398 as of December 31, 2019. The reconciliation between defined benefit obligations and post-employment benefit liability (asset) in the consolidated statements of financial position as of December 31, 2020 and 2019, is presented as follows: Seniority Pensions Premiums 2020 Vested benefit obligations Ps. 556,619 Ps. 376,122 Ps. 932,741 Unvested benefit obligations 2,077,506 266,153 2,343,659 Defined benefit obligations 2,634,125 642,275 3,276,400 Fair value of plan assets 909,324 286,425 1,195,749 Underfunded status of the plan assets 1,724,801 355,850 2,080,651 Post-employment benefit liability Ps. 1,724,801 Ps. 355,850 Ps. 2,080,651 Seniority Pensions Premiums 2019 Vested benefit obligations Ps. 449,752 Ps. 338,962 Ps. 788,714 Unvested benefit obligations 1,890,108 168,786 2,058,894 Defined benefit obligations 2,339,860 507,748 2,847,608 Fair value of plan assets 1,051,076 328,420 1,379,496 Underfunded status of the plan assets 1,288,784 179,328 1,468,112 Post-employment benefit liability Ps. 1,288,784 Ps. 179,328 Ps. 1,468,112 The components of net periodic pensions and seniority premiums cost for the years ended December 31, consisted of the following: 2020 2019 Service cost Ps. 148,987 Ps. 131,662 Interest cost 187,470 193,344 Prior service cost for plan amendments 40,542 46,846 Interest on plan assets (84,973) (112,788) Net periodic cost Ps. 292,026 Ps. 259,064 The Group’s defined benefit obligations, plan assets, funded status and balances in the consolidated statements of financial position as of December 31, 2020 and 2019, associated with post-employment benefits, are presented as follows: Seniority Pensions Premiums 2020 2019 Defined benefit obligations: Beginning of year Ps. 2,339,860 Ps. 507,748 Ps. 2,847,608 Ps. 2,477,527 Service cost 90,045 58,942 148,987 131,662 Interest cost 150,253 37,217 187,470 193,344 Benefits paid (154,542) (66,642) (221,184) (215,474) Remeasurement of post-employment benefit obligations 198,995 73,982 272,977 213,703 Past service cost 9,514 31,028 40,542 46,846 End of year 2,634,125 642,275 3,276,400 2,847,608 Fair value of plan assets: Beginning of year 1,051,076 328,420 1,379,496 1,515,030 Return on plan assets 63,478 21,495 84,973 112,788 Contributions 600 — 600 — Remeasurement on plan assets (51,288) (20,048) (71,336) (33,389) Benefits paid (154,542) (43,442) (197,984) (214,933) End of year 909,324 286,425 1,195,749 1,379,496 Unfunded status by the plan assets Ps. 1,724,801 Ps. 355,850 Ps. 2,080,651 Ps. 1,468,112 The changes in the net post-employment liability (asset) in the consolidated statements of financial position as of December 31, 2020 and 2019, are as follows: Seniority Pensions Premiums 2020 2019 Beginning of net post-employment liability (asset) Ps. 1,288,784 Ps. 179,328 Ps. 1,468,112 Ps. 962,497 Net periodic cost 186,334 105,692 292,026 259,064 Contributions (600) — (600) — Remeasurement of post-employment benefits 250,283 94,030 344,313 247,092 Benefits paid — (23,200) (23,200) (541) Ending net post-employment liability Ps. 1,724,801 Ps. 355,850 Ps. 2,080,651 Ps. 1,468,112 The post-employment benefits as of December 31, 2020 and 2019 and remeasurements adjustments for the years ended December 31, 2020 and 2019, are summarized as follows: 2020 2019 Pensions: Defined benefit obligations Ps. 2,634,125 Ps. 2,339,860 Plan assets 909,324 1,051,076 Unfunded status of plans 1,724,801 1,288,784 Remeasurements adjustments (1) 250,283 183,002 Seniority premiums: Defined benefit obligations Ps. 642,275 Ps. 507,748 Plan assets 286,425 328,420 Unfunded status of plans 355,850 179,328 Remeasurements adjustments (1) 94,030 64,090 (1) On defined benefit obligations and plan assets. Pensions and Seniority Premiums Plan Assets The plan assets are invested according to specific investment guidelines determined by the technical committees of the pension plan and seniority premiums trusts and in accordance with actuarial computations of funding requirements. These investment guidelines require a minimum investment of 30% of the plan assets in fixed rate instruments, or mutual funds comprised of fixed rate instruments. The plan assets that are invested in mutual funds are all rated “AA” or “AAA” by at least one of the main rating agencies. These mutual funds vary in liquidity characteristics ranging from one day to one month. The investment goals of the plan assets are to preserve principal, diversify the portfolio, maintain a high degree of liquidity and credit quality, and deliver competitive returns subject to prevailing market conditions. Currently, the plan assets do not engage in the use of financial derivative instruments. The Group’s target allocation in the foreseeable future is to maintain approximately 20% in equity securities and 80% in fixed rate instruments. The weighted average asset allocation by asset category as of December 31, 2020 and 2019, was as follows: 2020 2019 Equity securities (1) 28.8 % 28.6 % Fixed rate instruments 71.2 % 71.4 % Total 100.0 % 100.0 % (1) Included within plan assets at December 31, 2020 and 2019, are shares of the Company held by the trust with a fair value of Ps.101,690 and Ps.136,963, respectively. The weighted average expected long-term rate of return of plan assets of 6.59% and 7.02% were used in determining net periodic pension cost in 2020 and 2019, respectively. The rate used reflected an estimate of long-term future returns for the plan assets. This estimate was primarily a function of the asset classes (equities versus fixed income) in which the plan assets were invested and the analysis of past performance of these asset classes over a long period of time. This analysis included expected long-term inflation and the risk premiums associated with equity investments and fixed income investments. The following table summarizes the Group’s plan assets measured at fair value on a recurring basis as of December 31, 2020 and 2019: Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2020 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Common Stocks (1) Ps. 101,690 Ps. 101,690 Ps. — Ps. — Mutual funds (fixed rate instruments) (2) 231,837 231,837 — — Money market securities (3) 607,658 607,658 — — Other equity securities 254,564 254,564 — — Total investment assets Ps. 1,195,749 Ps. 1,195,749 Ps. — Ps. — Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2019 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Common Stocks (1) Ps. 136,963 Ps. 136,963 Ps. — Ps. — Mutual funds (fixed rate instruments) (2) 218,269 218,269 — — Money market securities (3) 766,181 766,181 — — Other equity securities 258,083 258,083 — — Total investment assets Ps. 1,379,496 Ps. 1,379,496 Ps. — Ps. — (1) Common stocks are valued at the closing price reported on the active market on which the individual securities are traded. All common stock included in this line item relate to the Company’s CPOs. (2) Mutual funds consist of fixed rate instruments. These are valued at the net asset value provided by the administrator of the fund. (3) Money market securities consist of government debt securities, which are valued based on observable prices from the new issue market, benchmark quotes, secondary trading and dealer quotes. The Group did not make significant contributions to its plan assets in 2020 and 2019, and does not expect to make significant contributions to its plan assets in 2021. The weighted average durations of the defined benefit plans as of December 31, 2020 and 2019, were as follows: 2020 2019 Seniority Premiums 8.6 years 8.2 years Pensions 5.7 years 7.0 years |
Capital Stock and Long-term Ret
Capital Stock and Long-term Retention Plan | 12 Months Ended |
Dec. 31, 2020 | |
Capital Stock and Long-term Retention Plan | |
Capital Stock and Long-term Retention Plan | 17. Capital Stock The Company has four classes of capital stock: Series “A” Shares, Series “B” Shares, Series “D” Shares and Series “L” Shares, with no par value. The Series “A” Shares and Series “B” Shares are common shares. The Series “D” Shares are limited-voting and preferred dividend shares, with a preference upon liquidation. The Series “L” Shares are limited-voting shares. The Company’s shares are publicly traded in Mexico, primarily in the form of Ordinary Participation Certificates (“CPOs”), each CPO representing 117 shares comprised of 25 Series “A” Shares, 22 Series “B” Shares, 35 Series “D” Shares and 35 Series “L” Shares; and in the United States in the form of Global Depositary Shares (“GDS”), each GDS representing five CPOs. Non-Mexican holders of CPOs do not have voting rights with respect to the Series “A”, Series “B” and Series “D” Shares. At December 31, 2020, shares of capital stock and CPOs consisted of (in millions): Repurchased Held by a Authorized and by the Company’s Issued (1) Company (2) Trust (3) Outstanding Series “A” Shares 122,179.4 (1,105.4) (8,054.8) 113,019.2 Series “B” Shares 58,019.7 (972.8) (6,118.4) 50,928.5 Series “D” Shares 88,554.1 (1,547.5) (5,984.2) 81,022.4 Series “L” Shares 88,554.1 (1,547.5) (5,984.2) 81,022.4 Total 357,307.3 (5,173.2) (26,141.6) 325,992.5 Shares in the form of CPOs 296,023.0 (5,173.2) (20,004.2) 270,845.6 Shares not in the form of CPOs 61,284.3 — (6,137.4) 55,146.9 Total 357,307.3 (5,173.2) (26,141.6) 325,992.5 CPOs 2,530.1 (44.2) (171.0) 2,314.9 (1) As of December 31, 2020, the authorized and issued capital stock amounted to Ps.4,907,765 (nominal Ps.2,459,154). (2) In 2020 and 2019, the Company repurchased, 616.0 million shares and 4,557.2 million shares, respectively, in the form of 5.3 million CPOs and 38.9 million CPOs, respectively, in the amount of Ps.195,597 and Ps.1,385,750, respectively, in connection with a share repurchase program that was approved by the Company’s stockholders and is exercised at the discretion of management. (3) In connection with the Company’s LTRP described below. A reconciliation of the number of shares and CPOs outstanding for the years ended December 31, 2020 and 2019, is presented as follows (in millions): Series “A” Series “B” Series “D” Series “L” Shares CPOs Shares Shares Shares Shares Outstanding Outstanding As of January 1, 2019 116,207.2 53,116.1 84,502.9 84,502.9 338,329.1 2,414.4 Repurchased (1) (973.7) (856.9) (1,363.3) (1,363.3) (4,557.2) (38.9) Acquired (2) (65.6) (57.7) (91.9) (91.9) (307.1) (2.7) Released (2) 1,056.0 651.3 1,036.1 1,036.1 3,779.5 29.6 As of December 31, 2019 116,223.9 52,852.8 84,083.8 84,083.8 337,244.3 2,402.4 Repurchased (1) (131.6) (115.8) (184.3) (184.3) (616.0) (5.3) Cancelled and forfeited (2) (3,097.4) (1,830.0) (2,911.3) (2,911.3) (10,750.0) (83.2) Acquired (2) (86.0) (75.6) (120.3) (120.3) (402.2) (3.4) Released (2) 110.3 97.1 154.5 154.5 516.4 4.4 As of December 31, 2020 113,019.2 50,928.5 81,022.4 81,022.4 325,992.5 2,314.9 (1) In connection with a share repurchase program. (2) By a Company’s trust in connection with the Company’s Long-Term Retention Plan described below. Under the Company’s bylaws, the Company’s Board of Directors consists of 20 members, of which the holders of Series “A” Shares, Series “B” Shares, Series “D” Shares and Series “L” Shares, each voting as a class, are entitled to elect eleven members, five members, two members and two members, respectively. Holders of Series “D” Shares are entitled to receive a preferred dividend equal to 5% of the nominal capital attributable to those Shares (nominal Ps.0.00034412306528 per share) before any dividends are payable in respect of Series “A” Shares, Series “B” Shares or Series “L” Shares. Holders of Series “A” Shares, Series “B” Shares and Series “L” Shares are entitled to receive the same dividends as holders of Series “D” Shares if stockholders declare dividends in addition to the preferred dividend that holders of Series “D” Shares are entitled to. If the Company is liquidated, Series “D” Shares are entitled to a liquidation preference equal to the nominal capital attributable to those Shares nominal Ps.0.00688246130560 per share before any distribution is made in respect of Series “A” Shares, Series “B” Shares and Series “L” Shares. At December 31, 2020, the restated for inflation tax value of the Company’s common stock was Ps.52,488,665. In the event of any capital reduction in excess of the tax value of the Company’s common stock, such excess will be treated as dividends for income tax purposes (see Note 18). Long-Term Retention Plan The Company has adopted a LTRP for the conditional sale of the Company’s capital stock to key Group officers and employees under a special purpose trust. At the Company’s annual general ordinary stockholders’ meeting held on April 2, 2013, the Company’s stockholders approved that the number of CPOs that may be granted annually under the LTRP shall be up to 1.5% of the capital of the Company. As of December 31, 2020, approximately 10.0 million CPOs or CPO equivalents that were transferred to LTRP participants were sold in the open market during 2018 and 2019. Additional sales will continue to take place during or after 2021. The special purpose trust created to implement the LTRP as of December 31, 2020 had approximately 223.4 million CPOs or CPO equivalents. This figure is net of approximately 34.3, 32.3 and 4.4 million CPOs or CPO equivalents vested in 2018, 2019 and 2020 respectively. Of the 223.4 million CPOs or CPO equivalents approximately 76.5% are in the form of CPOs and the remaining 23.5% are in the form of Series “A”, Series “B”, Series “D” and Series “L” Shares, not in the form of CPO units. As of December 31, 2020, approximately 137.0 million CPOs or CPO equivalents are held by a company trust and will become vested between 2021 and 2023 at prices ranging from Ps.52.05 to Ps.1.60 per CPO which may be reduced by dividends, a liquidity discount and the growth of the consolidated or relevant segment Operating Income Before Depreciation and Amortization, or OIBDA (including OIBDA affected by acquisitions) between the date of award and the vesting date, among others. In the fourth-quarter of 2019, the Company agreed to: (i) cancel 9,490.5 million shares that were conditionally sold to our officers and employees in 2015, 2016 and 2017, which conditions had not been complied with in full yet; and (ii) conditionally sell 4,745.3 million shares to the same officers and employees at a lower price and additional vesting periods of two and three years. In connection with these events, the Company recognized an additional expense that is included in the cost for the year ended December 31, 2019 (see Note 2 (y)). During the first half of 2020, the trust for the LTRP increased the number of shares and CPOs held for the purposes of this Plan in the amount of: (i) 5,526.3 million shares of the Company in the form of 47.2 million CPOs, and 666.9 million Series "A" Shares, not in the form of CPO units, in connection with the cancellation of these shares in the fourth quarter of 2019, which were conditionally sold to certain of the Company's officers and employees in 2015 and 2016 and (ii) 1,009.7 million shares in the form of 8.6 million CPOs, in connection with forfeited rights under this Plan. In the fourth quarter of 2020, the trust for the LTRP increased the number of shares and CPOs held for the purposes of this Plan in the amount of: 3,196.1 million shares in the form of 27.4 million CPOs, and 351.0 million Series "A" Shares, not in the form of CPO units, in connection with forfeited rights under this Plan. In the third quarter of 2020, the Company recognized as a decrease to the balance of shares repurchased as a result of a refund in the amount of Ps.100,000, which was made to the Company in 2019 by the trust for the LTRP. In the fourth quarter of 2020, the Company made a funding to the trust for the LTRP for acquisition of shares in the aggregate amount of Ps.197,000. As of December 31, 2020, the designated Retention Plan trust owned approximately 0.8 million CPOs or CPOs equivalents, which have been reserved to a group of employees, and may be sold at a price at least of Ps.36.52 per CPO, subject to certain conditions, in vesting periods between 2021 and 2023. The Group has determined its share-based compensation expense (see Note 2 (y)) by using the BSPM at the date on which the stock was conditionally sold to personnel under the Company’s LTRP, on the following arrangements and weighted-average assumptions: Long-Term Retention Plan Arrangements: Year of grant 2016 2017 2018 2019 2020 Number of CPOs or CPOs equivalent granted 39,000 37,000 32,500 72,558 39,200 Contractual life 3 years 3 years 3 years 2.67 years years Assumptions: Dividend yield 0.38 % 0.38 % 0.55 % 0.82 % % Expected volatility (1) 27.60 % 24.58 % 25.38 % 30.47 % % Risk-free interest rate 4.83 % 7.04 % 7.17 % 6.88 % % Expected average life of awards 3.00 years 2.96 years 3.00 years 2.67 years years (1) Volatility was determined by reference to historically observed prices of the Company’s CPOs. A summary of the stock conditionally sold to employees as of December 31, is presented below (in Mexican pesos and thousands of CPOs): 2020 2019 Weighted- Weighted- CPOs or CPOs Average Exercise CPOs or CPOs Average Exercise Equivalent Price Equivalent Price Long-Term Retention Plan: Outstanding at beginning of year 243,472 65.19 179,051 75.77 Conditionally sold 39,200 6.84 72,558 38.50 Paid by employees — — (3,107) 33.75 Forfeited (122,307) 81.36 (5,030) 73.20 Outstanding at end of year 160,365 39.36 243,472 65.19 To be paid by employees at end of year 23,361 80.72 110,828 81.26 As of December 31, 2020 and 2019, the weighted-average remaining contractual life of the stock conditionally sold to employees under the LTRP is 1.38 years and 1.70 years respectively. |
Retained Earnings and Accumulat
Retained Earnings and Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Retained Earnings and Accumulated Other Comprehensive Income | |
Retained Earnings and Accumulated Other Comprehensive Income | 18. (a) Retained Earnings: Unappropriated Net Income for Retained Legal Reserve Earnings the Year Earnings Balance at January 1, 2019 Ps. 2,139,007 Ps. 70,583,488 Ps. 6,009,414 Ps. 78,731,909 Appropriation of net income relating to 2018 — (6,009,414) — Acquisition of non-controlling interests — — Dividends paid relating to 2018 — (1,066,187) — (1,066,187) Net gain on partial disposition of Open-Ended Fund — — Sale of repurchased shares — (1,585,963) — (1,585,963) Share-based compensation — — Net income for the year 2019 — — Balance at December 31, 2019 2,139,007 Appropriation of net income relating to 2019 — 4,626,139 (4,626,139) — Recognized share of income of OCEN (see Note 10) — 147,975 — 147,975 Sale of repurchased shares — (997,174) — (997,174) Cancellation of sale of shares — 2,764,854 — 2,764,854 Share-based compensation — 962,806 — 962,806 Net income for the year 2020 — — (1,250,342) (1,250,342) Balance at December 31, 2020 Ps. 2,139,007 Ps. 83,391,732 Ps. (1,250,342) Ps. In accordance with Mexican law, the legal reserve must be increased by 5% of annual net profits until it reaches 20% of the capital stock amount. As of December 31, 2020 and 2019, the Company’s legal reserve amounted to Ps.2,139,007 for both years, respectively and was classified into retained earnings in consolidated equity. As the legal reserve reached 20% of the capital stock amount, no additional increases were required in 2020, 2019 and 2018. This reserve is not available for dividends, but may be used to reduce a deficit or may be transferred to stated capital. Other appropriations of profits require the vote of the Company’s stockholders. In April 2018, the Company’s stockholders approved for the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series “A”, “B”, “D” and “L” Shares, not in the form of a CPO, which was paid in May 2018 in the aggregate amount of Ps.1,068,868 (see Note 17). In April 2019, the Company’s stockholders approved for the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series “A,” “B,” “D” and “L” Shares, not in the form of a CPO, which was paid in May 2019 in the aggregate amount of Ps.1,066,187 (see Note 17). In April 2020, to further maximize liquidity and as a precautionary measure, the Company's Board of Directors did not propose the payment of a 2020 dividend for approval of the Company's general stockholders' meeting held on April 28, 2020. In 2020 the Group identified that it had overstated Ps. 221,000 of a contingent payout obligation, which was presented as a component of consolidated other current liabilities as of December 31, 2019. This inmaterial correction of prior period financial statements had no impact to the consolidated statements of income and comprehensive income. The Company corrected the overstatement retrospectively for prior periods in the accompanying consolidated statements of financial position as of December 31, 2019, and of changes in stockholders equity as January 1, 2018. In February 2021, the Company’s Board of Directors approved a proposal for a dividend of Ps.0.35 per CPO payable in the second quarter of 2021, subject to approval of the Company’s stockholders. Dividends, either in cash or in other forms, paid by the Mexican companies in the Group will be subject to income tax if the dividends are paid from earnings that have not been subject to Mexican income tax computed on an individual company basis under the provisions of the Mexican Income Tax Law. In this case, dividends will be taxable by multiplying such dividends by a 1.4286 factor and applying to the resulting amount the income tax rate of 30%. This income tax will be paid by the company paying the dividends. In addition, the entities that distribute dividends to its stockholders who are individuals or foreign residents must withhold 10% thereof for income tax purposes, which will be paid in Mexico. The foregoing will not be applicable when distributed dividends arise from the “taxed net earnings account” computed on an individual company basis generated through December 31, 2013. As of December 31, 2020, cumulative earnings that have been subject to income tax and can be distributed by the Company free of Mexican income tax amounted to Ps.73,188,085. (b) Accumulated Other Comprehensive Income Exchange Remeasurement Derivative Share of Warrants Differences on of Post- Financial Income (Loss) Other Exercisable for Translating Employment Instruments of Associates Open-Ended Equity Other Financial Common Stock Foreign Benefit Cash Flow and Joint Changes Fund Instruments Assets of UHI Operations Obligations Hedges Ventures Income Tax Total Accumulated at January 1, 2019 Ps. 3,966,615 Ps. 1,786,526 Ps. (111) Ps. (1,960,362) Ps. 814,307 Ps. (763,835) Ps. 976,549 Ps. 160,744 Ps. (552,946) Ps. 4,427,487 Partial disposition of Open-Ended Fund (1,186,130) — — — — — — — 348,610 (837,520) Remeasurement of post-employment benefit obligations of assets held for sale — — — — — (1,721) — — 516 (1,205) Changes in other comprehensive income (351,202) (794,624) 111 257,306 (79,631) (244,576) (1,521,912) (236,159) 702,376 (2,268,311) Accumulated at December 31, 2019 2,429,283 991,902 — (1,703,056) 734,676 (1,010,132) (545,363) (75,415) 498,556 1,320,451 Changes in other comprehensive income (904,423) (353,496) — (21,899,164) 115,565 (340,319) (1,370,145) (61,033) 7,935,716 (16,877,299) Accumulated at December 31, 2020 Ps. 1,524,860 Ps. 638,406 Ps. — Ps. (23,602,220) Ps. 850,241 Ps. (1,350,451) Ps. (1,915,508) Ps. (136,448) Ps. 8,434,272 Ps. (15,556,848) |
Non-controlling Interests
Non-controlling Interests | 12 Months Ended |
Dec. 31, 2020 | |
Non-controlling Interests | |
Non-controlling Interests | 19. Non-controlling interests as of December 31, 2020 and 2019, consisted of: 2020 2019 Capital stock Ps. 1,102,334 Ps. 1,155,998 Additional paid-in capital 2,986,360 3,001,681 Legal reserve 216,071 164,832 Retained earnings from prior years (1) (2) (3) 8,483,413 8,930,063 Net income for the year 1,553,166 1,480,674 Accumulated other comprehensive income (loss): Cumulative result from foreign currency translation 166,275 148,318 Remeasurement of post-employment benefit obligations on defined benefit plans (10,595) (7,799) Ps. 14,497,024 Ps. 14,873,767 (1) In 2020, 2019 and 2018, the holding companies of the Sky segment paid a dividend to its equity owners in the aggregate amount of Ps.2,750,000, Ps.3,800,000 and Ps.3,000,000, respectively, of which Ps.1,134,808, Ps.1,570,659 and Ps.1,240,002, respectively, were paid to its non-controlling interests. (2) In 2020, the stockholders of Pantelion approved the payment of a dividend in the amount of Ps.394,269, of which Ps.193,192, were for its non-controlling interests. (3) In 2020, the stockholders of Radiopolis approved the payment of a dividend in the amount of Ps. 656,346, of which Ps. 325,173, were for its non-controlling interests, and of which only Ps.285,669 were paid. Amounts of consolidated current assets, non-current assets, current liabilities and non-current liabilities of Empresas Cablevisión and Sky as of December 31, 2020 and 2019, are set forth as follows: Empresas Cablevisión Sky 2020 2019 2020 2019 Assets: Current assets Ps. 6,046,592 Ps. 5,035,670 Ps. 6,632,763 Ps. 9,891,514 Non-current assets 22,499,913 19,371,687 18,515,500 17,930,006 Total assets 28,546,505 24,407,357 25,148,263 27,821,520 Liabilities: Current liabilities 5,267,184 5,565,268 5,182,302 3,586,272 Non-current liabilities 3,943,909 1,326,812 5,967,680 9,319,812 Total liabilities 9,211,093 6,892,080 11,149,982 12,906,084 Net assets Ps. 19,335,412 Ps. 17,515,277 Ps. 13,998,281 Ps. 14,915,436 Amounts of consolidated net sales, net income and total comprehensive income of Empresas Cablevisión and Sky for the years ended December 31, 2020 and 2019, are set forth as follows: Empresas Cablevisión Sky 2020 2019 2020 2019 Net sales Ps. 15,906,914 Ps. 14,465,512 Ps. 22,134,943 Ps. 21,347,241 Non-income 1,828,000 1,085,880 1,848,374 1,880,607 Total comprehensive income 1,820,135 1,084,162 1,864,408 1,850,735 As of December 31, 2020, the Group did not have dividends payable. Amounts of consolidated summarized cash flows of Sky and Empresas Cablevisión for the years ended December 31, 2020 and 2019, are set forth as follows: Empresas Cablevisión Sky 2020 2019 2020 2019 Cash flows from operating activities Ps. 3,959,679 Ps. 3,756,935 Ps. 8,645,025 Ps. 8,118,541 Cash flows used in investing activities (5,824,827) (3,301,043) (5,547,152) (4,006,732) Cash flows from (used in) financing activities 2,104,416 (1,855,636) (6,392,614) (5,172,976) Net increase (decrease) in cash and cash equivalents Ps. 239,268 Ps. (1,399,744) Ps. (3,294,741) Ps. (1,061,167) |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Transactions with Related Parties | |
Transactions with Related Parties | 20. The principal transactions carried out by the Group with affiliated companies, including equity investees, stockholders and entities in which stockholders have an equity interest, for the years ended December 31, 2020, 2019 and 2018, were as follows: 2020 2019 2018 Revenues, other income and interest income: Royalties (Univision) (a) Ps. 8,155,338 Ps. 7,527,364 Ps. 7,383,540 Programming production and transmission rights (b) 707,247 485,157 960,052 Telecom services (c) 97,754 71,979 17,951 Administrative services (d) 13,561 20,598 34,653 Advertising (e) 36,385 151,296 44,625 Interest income (f) 64,809 83,625 84,987 Ps. 9,075,094 Ps. 8,340,019 Ps. 8,525,808 Costs and expenses: Donations Ps. 26,729 Ps. 26,285 Ps. 32,111 Administrative services (d) 1,529 24,899 20,403 Technical services (g) 459,960 465,250 138,262 Programming production, transmission rights and telecom (h) 674,270 666,312 1,298,197 Ps. 1,162,488 Ps. 1,182,746 Ps. 1,488,973 (a) The Group receives royalties from Univision for programming provided pursuant to an amended PLA, pursuant to which Univision has the right to broadcast certain Televisa content in the United States for a term that commenced on January 1, 2011 and ends 7.5 years after the Group has sold two-thirds of its initial investment in UHI made in December 2010. The amended PLA includes a provision for certain yearly minimum guaranteed advertising, with a value of U.S.$42.6 million (Ps.909,159), U.S.$32.3 million (Ps.625,410) and U.S.$46.6 million (Ps.891,990), for the fiscal years 2020, 2019 and 2018, respectively, to be provided by Univision, at no cost, for the promotion of certain Group businesses. This advertising does not have commercial substance for the Group, as it is related to activities that are considered ancillary to Group’s normal operations in the United States (see Notes 3, 9 and 10). (b) Services rendered to Univision in 2020, 2019 and 2018. (c) Services rendered to a subsidiary of AT&T, Inc. (“AT&T”) in 2020, 2019 and 2018, and Univision in 2018. (d) The Group receives revenue from and is charged by affiliates for various services, such as: equipment rental, security and other services, at rates which are negotiated. The Group provides management services to affiliates, which reimburse the Group for the incurred payroll and related expenses. (e) Advertising services rendered to OCEN and Univision in 2020, OCEN, Univision and Editorial Clío, Libros y Videos, S.A. de C.V. (“Editorial Clío”) in 2019 and 2018. (f) Includes mainly interest income from GTAC. (g) In 2020, 2019 and 2018, Sky received services from a subsidiary of AT&T, Inc. for play-out, uplink and downlink of signals. (h) Paid mainly to Univision and GTAC in 2020, 2019 and 2018. The Group pays royalties to Univision for programming provided pursuant to a Mexico License Agreement, under which the Group has the right to broadcast certain Univision’s content in Mexico for the same term as that of the PLA (see Notes 3, 9 and 10). It also includes payments by telecom services to GTAC in 2020, 2019 and 2018. In 2018 includes payments by transmission rights to AT&T. Other transactions with related parties carried out by the Group in the normal course of business include the following: (1) A consulting firm controlled by a relative of one of the Company’s directors, has provided consulting services and research in connection with the effects of the Group’s programming on its viewing audience. Total fees for such services during 2020, 2019 and 2018 amounted to Ps.19,433, Ps.19,758 and Ps.15,414, respectively. (2) From time to time, two Mexican banks have made loans to the Group, on terms substantially similar to those offered by the banks to third parties. Some members of the Company’s Board serve as Board members of these banks. (3) Several other current members of the Company’s Board serve as members of the Boards and/or are stockholders of other companies, some of which purchased advertising services from the Group in connection with the promotion of their respective products and services, paying rates applicable to third-party advertisers for these advertising services. (4) During 2020, 2019 and 2018, a professional services firm in which the current Secretary of the Company´s Board maintains an interest, provided legal advisory services to the Group in connection with various corporate matters. Total fees for such services amounted to Ps.52,848, Ps.34,603 and Ps.26,547, respectively. (5) During 2020, 2019 and 2018, a professional services firm in which two current directors of the Company maintain an interest provided finance advisory services to the Group in connection with various corporate matters. Total fees for such services amounted to Ps.121,789, Ps.20,554 and Ps.19,431, respectively. (6) In 2020, 2019 and 2018, the Group entered into contracts leasing office space directly or indirectly from certain of our directors and officers for an aggregate annual amount of Ps.32,784, Ps.29,613 and Ps.28,155, respectively. During 2020, 2019 and 2018, the Group paid to its directors, alternate directors and officers an aggregate compensation of Ps.936,794, Ps.869,556 and Ps.568,347, respectively, for services in all capacities. This compensation included certain amounts related to the use of assets and services of the Group, as well as travel expenses reimbursed to directors and officers. Projected benefit obligations related to the Group’s directors, alternate directors and officers amounted to Ps.196,584, Ps.170,856 and Ps.148,651 as of December 31, 2020, 2019 and 2018, respectively. Cumulative contributions made by the Group to the pension and seniority premium plans on behalf of these directors and officers amounted to Ps.71,744, Ps.82,768 and Ps.90,901 as of December 31, 2020, 2019 and 2018, respectively. In addition, the Group has made conditional sales of the Company’s CPOs to its directors and officers under the LTRP. In 2015, the Group established a deferred compensation plan for certain officers of its Cable segment, which is payable in the event that certain revenue and EBITDA targets (as defined) of a five-year plan are met. The present value of this long-term employee benefit obligation as of December 31, 2020 and 2019 amounted to Ps.1,486,708 and Ps. 1,258,013, respectively, and the related service net cost for the years ended December 31, 2020, 2019 and 2018, amounted to Ps.225,804, Ps.199,195 and Ps.251,787, respectively. In 2020, 2019 and 2018, the Group made contributions to a trust (plan assets) for funding this deferred compensation in the aggregate amount of Ps.435,500, Ps.700,000 and Ps.350,000,respectively. In 2020, the Group paid an amount of Ps.470,000, related to this deferred compensation plan. The deferred compensation liability, net of related plan assets, amounted to Ps. 1,208 and Ps. 199,726 as of December 31, 2020 and 2019, respectively, and was presented in other current liabilities and other long-term liabilities in the Group’s consolidated statements of financial position as of those dates, respectively. The related expense was classified in other expense in the Group’s consolidated statements of income (see Note 22). In March 2021, the Group made a final payment of Ps. 1,106,525, related to this deferred compensation plan, which amount was funded by plan assets. The balances of receivables and payables between the Group and related parties as of December 31, 2020 and 2019, were as follows: 2020 2019 Current receivables: UHI, including Univision (1) Ps. 692,282 Ps. 748,844 OCEN 34,137 3,968 Editorial Clío 2,308 2,933 Other 58,225 58,682 Ps. 786,952 Ps. 814,427 Current payables: UHI, including Univision (1) Ps. — Ps. 594,254 AT&T 32,310 25,447 Other 50,697 24,550 Ps. 83,007 Ps. 644,251 (1) As of December 31, 2020 and 2019, receivables from UHI related primarily to the PLA amounted to Ps.692,282 and Ps.748,844, respectively. Through December 29, 2020, the Group recognized a provision associated with a consulting arrangement entered into by the Group, UHI and an entity controlled by the former chairman of the Board of Directors of UHI, by which upon consummation of a qualified initial public offering of the shares of UHI or an alternative exit plan for the main current investors in UHI, the Group would pay the entity a portion of a defined appreciation in excess of certain preferred returns and performance thresholds of UHI. In connection with the sale of shares by the former control stockholders of UHI, which was concluded on December 29, 2020, and the dissolution of the special-purpose entity for this arrangement, the Company cancelled this provision on that date, and recognized a non-cash other income in the amount of Ps.691,221 in the statement of income for the year ended December 31, 2020 (see Note 22). All significant account balances included in amounts due from affiliates bear interest. In 2020 and 2019, average interest rates of 6.9% and 9.6% were charged, respectively. Advances and receivables are short-term in nature; however, these accounts do not have specific due dates. Customer deposits and advances as of December 31, 2020 and 2019, included deposits and advances from affiliates and other related parties, in an aggregate amount of Ps.119,736 and Ps.144,672, respectively, which were primarily made by UHI, including Univision. In 2012, a subsidiary of the Company entered into an amended lease contract with GTAC for the right to use certain capacity in a telecommunication network. This amended lease agreement contemplates annual payments to GTAC in the amount of Ps.41,400 through 2029, with an annual interest rate of the lower of TIIE plus 122 basis points or 6% (see Notes 10, 11 and 14). |
Cost of Sales, Selling Expenses
Cost of Sales, Selling Expenses and Administrative Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Cost of Sales, Selling Expenses and Administrative Expenses | |
Cost of Sales, Selling Expenses and Administrative Expenses | 21. Cost of sales represents primarily the production cost of programming, acquired programming and transmission rights at the moment of broadcasting or at the time the produced programs are sold and became available for broadcast (see Note 8). Such cost of sales also includes benefits to employees and post-employment benefits, network maintenance and interconnections, satellite links, paper and printing, depreciation of property, plant and equipment, leases of real estate property, and amortization of intangible assets. Selling expenses and administrative expenses include primarily benefits to employees, sale commissions, postemployment benefits, share-based compensation to employees, depreciation of property, plant and equipment, leases of real estate property, and amortization of intangibles. The amounts of depreciation, amortization and other amortization included in cost of sales, selling expenses and administrative expenses for the years ended December 31, 2020, 2019 and 2018, were as follows: 2020 2019 2018 Cost of sales Ps. 16,775,214 Ps. 16,035,227 Ps. 14,147,169 Selling expenses 1,473,940 1,695,616 1,694,966 Administrative expenses 3,392,496 3,809,379 4,436,746 Ps. 21,641,650 Ps. 21,540,222 Ps. 20,278,881 The amounts of expenses related to IFRS 16 included in cost of sales, selling expenses and administrative expenses for the year ended December 31, 2020, were as follows: 2020 Expenses relating to variable lease payment not included in the measurement of the lease liability Ps. 103,340 Expenses relating to short-term leases and leases of low-value assets 234,673 Total Ps. 338,013 Expenses related to short -term employee benefits, share-based compensation and post-employment benefits and incurred by the Group for the years ended December 31, 2020, 2019 and 2018, were as follows: 2020 2019 2018 Short-term employee benefits Ps. 17,921,266 Ps. 16,821,651 Ps. 16,000,255 Other short-term employee benefits 1,396,804 1,210,671 949,294 Share-based compensation 984,356 1,129,644 1,327,549 Post-employment benefits 292,026 259,064 171,156 Ps. 20,594,452 Ps. 19,421,030 Ps. 18,448,254 |
Other Income or Expense, Net
Other Income or Expense, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income or Expense, Net | |
Other Income or Expense, Net | 22. Other income (expense) for the years ended December 31, 2020, 2019 and 2018, is analyzed as follows: 2020 2019 2018 Net gain on disposition of Radiópolis (see Note 3) Ps. 932,449 Ps. — Ps. — Net gain on disposition of investments (1) — 627 3,553,463 Donations (see Note 20) (62,155) (27,786) (56,019) Legal, financial, and accounting advisory and professional services (2) (534,448) (353,937) (212,527) Gain (loss) on disposition of property and equipment 57,949 (158,658) (268,532) Impairment adjustments (3) (40,803) (67,574) (135,750) Deferred compensation (see Note 20) (225,804) (199,195) (251,787) Dismissal severance expense (4) (273,281) (533,233) (530,560) Income for cash reimbursement received from Imagina (5) 167,619 — — Other taxes paid by Sky in Central America — — (148,271) Interest income for recovered Asset Tax from prior years — 139,995 — Other, net (6) 212,102 (116,826) (387,733) Ps. 233,628 Ps. (1,316,587) Ps. 1,562,284 (1) In 2018, included a gain of Ps.3,513,829 on disposition of the Group’s equity stake in Imagina, and a gain of Ps.85,000 on disposition of the Group’s 50% equity in Televisa CJ Grand, a joint venture for a home shopping channel in Mexico (see Note 3). (2) Includes primarily advisory and professional services in connection with certain litigation and other matters (see Notes 3 and 20). (3) Includes impairment adjustments in connection with trademarks in the Group’s Publishing business (see Note 13). (4) Includes severance expense in connection with the dismissals of personnel, as a part of a continued cost reduction plan. In 2019 includes Ps.150,000 related to an accrual for restructuring certain administrative areas in the first quarter of 2020. (5) In the second quarter of 2020, the Company received a cash reimbursement from Imagina Media Audiovisual, S.L. ("Imagina"), in connection with a legal outcome that was favorable to Imagina, a former associated company. (6) In 2018, included a loss on disposition of obsolete infrastructure in the Group´s Cable segment, in the amount of Ps.249,688 . |
Finance Expense, Net
Finance Expense, Net | 12 Months Ended |
Dec. 31, 2020 | |
Finance Expense, Net | |
Finance Expense, Net | 23. Finance (expense) income, net, for the years ended December 31, 2020, 2019 and 2018, included: 2020 2019 2018 Interest expense (1) Ps. (10,482,168) Ps. (10,402,021) Ps. (9,707,324) Other finance expense, net (3) — (873,177) (859,642) Finance expense (10,482,168) (11,275,198) (10,566,966) Interest income (4) 1,132,935 1,529,112 1,567,100 Foreign exchange gain, net (2) 3,004,934 935,291 220,149 Other finance income, net (3) 89,323 — — Finance income 4,227,192 2,464,403 1,787,249 Finance expense, net Ps. (6,254,976) Ps. (8,810,795) Ps. (8,779,717) (1) In 2020 and 2019, interest expense included interest in the aggregate amount of Ps.426,672 and Ps.426,541, respectively, related to additional lease liabilities recognized beginning on January 1, 2019, in connection with the adoption of IFRS 16, which became effective on that date (see Notes 2 and 14). (2) In 2020, 2019 and 2018, foreign exchange gain, net, included: (i) foreign exchange gain or loss resulted primarily from the appreciation or depreciation of the Mexican peso against the U.S. dollar on the Group’s U.S. dollar-denominated monetary liability position, excluding long-term debt designated as hedging instrument of the Group’s investments in UHI and Open-Ended Fund, during the years ended December 31, 2020, 2019 and 2018; and (ii) foreign exchange gain or loss resulted primarily from the appreciation or depreciation of the Mexican peso against the U.S. dollar on the Group’s U.S. dollar-denominated monetary asset position during the years ended December 31, 2020, 2019 and 2018 (see Notes 2 (e), 4 and 14). The exchange rate of the Mexican peso against the U.S. dollar as of December 31, 2020, 2019 and 2018 was of Ps.19.9493, Ps.18.8838 and Ps.19.6730, respectively. (3) In 2020, 2019 and 2018, other finance income or expense, net, included gain or loss from derivative financial instruments (see Note 15) and a loss from changes on fair value in other financial instruments in 2019. (4) In 2020, 2019 and 2018, included primarily interest income from cash equivalents. In 2018 included primarily interest income from temporary investments. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 24. The income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 was comprised of: 2020 2019 2018 Income taxes, current (1) Ps. 6,802,510 Ps. 5,267,157 Ps. 6,448,961 Income taxes, deferred (1,574,610) (2,598,712) (2,058,457) Ps. 5,227,900 Ps. 2,668,445 Ps. 4,390,504 (1) The current income tax of Mexican companies payable in Mexico represented 93%, 95% and 91% of total current income taxes in 2020, 2019 and 2018, respectively. The Mexican corporate income tax rate was 30% in 2020, 2019 and 2018, and will be 30% in 2021. 2014 Tax Reform As a result of a 2014 Mexican Tax Reform (the “2014 Tax Reform”), which included the elimination of the tax consolidation regime allowed for Mexican controlling companies, beginning on January 1, 2014, the Company is no longer allowed to consolidate income or loss of its Mexican subsidiaries for income tax purposes and: (i) accounted for an additional income tax liability for the elimination of the tax consolidation regime in the aggregate amount of Ps.6,813,595 as of December 31, 2013; (ii) recognized a benefit from tax loss carryforwards of Mexican companies in the Group in the aggregate amount of Ps.7,936,044 as of December 31, 2013; and (iii) adjusted the carrying amount of deferred income taxes from temporary differences by recognizing such effects on a separate company basis by using the enacted corporate income tax rate as of December 31, 2013. The income tax payable as of December 31, 2020 and 2019, in connection with the 2014 Tax Reform, is as follows: 2020 2019 Tax losses of subsidiaries, net Ps. 1,759,301 Ps. 3,230,248 Less: Current portion (a) 992,186 1,470,529 Non-current portion (b) Ps. 767,115 Ps. 1,759,719 (a) Accounted for as current income taxes payable in the consolidated statement of financial position as of December 31, 2020 and 2019. (b) Accounted for as non-current income taxes payable in the consolidated statement of financial position as of December 31, 2020 and 2019. Maturities of income tax payable as of December 31, 2020, in connection with the 2014 Mexican Tax Reform, are as follows: 2021 Ps. 992,186 2022 643,171 2023 123,944 Ps. 1,759,301 The following items represent the principal differences between income taxes computed at the statutory rate and the Group’s provision for income taxes. % % % 2020 2019 2018 Statutory income tax rate 30 30 30 Differences between accounting and tax bases, including tax inflation gain that is not recognized for accounting purposes 25 5 5 Asset tax — (2) — Tax loss carryforwards 7 (13) (4) 2014 Tax Reform — 1 2 Foreign operations (2) 8 3 Disposition of investments — 3 2 Disposition of Radiópolis 3 — — Share of income in associates and joint ventures, net 2 (2) (1) Impairment loss in investment in shares of UHI 30 — — Effective income tax rate 95 30 37 The Group has recognized the benefits from tax loss carryforwards of Mexican companies in the Group as of December 31, 2020 and 2019. The years of expiration of tax loss carryforwards as of December 31, 2020, are as follows: Tax Loss Carryforwards for Which Deferred Taxes Year of Expiration Were Recognized 2021 Ps. 157,193 2022 396,066 2023 117,080 2024 230,772 2025 8,706,619 Thereafter 12,328,495 Ps. 21,936,225 As of December 31, 2020, tax loss carryforwards of Mexican companies in the Group for which deferred tax assets were not recognized amounted to Ps.3,644,289, and will expire between 2021 and 2028. During 2020, 2019 and 2018, certain Mexican subsidiaries utilized operating tax loss carryforwards in the amounts of Ps.6,160,740, Ps.6,457,550 and Ps.14,072,331, respectively. In addition to the tax loss carryforwards of Mexican companies in the Group referred as of December 31, 2020, the Group has tax loss carryforwards derived from the disposal in 2014 of its former investment in GSF Telecom Holdings, S.A.P.I. de C.V. (“GSF”) in the amount of Ps.15,562,391. As of December 31, 2020, tax loss carryforwards derived from this disposal for which deferred taxes were recognized amounted to Ps.15,562,391, and will expire in 2025. As of December 31, 2020, tax loss carryforwards of subsidiaries in South America, the United States, and Europe amounted to Ps.3,034,191, and will expire between 2021 and 2037 . The deferred income taxes as of December 31, 2020 and 2019, were principally derived from the following temporary differences and tax loss carryforwards: 2020 2019 Assets: Accrued liabilities Ps. 6,219,312 Ps. 4,352,021 Loss allowance 1,235,658 1,550,482 Customer advances 1,600,334 1,499,462 Derivative financial instruments 972,991 273,210 Property, plant and equipment, net 2,084,550 1,650,860 Prepaid expenses and other items 5,868,717 3,700,673 Tax loss carryforwards: Operating 5,481,738 7,433,425 Capital (1) 5,767,847 5,591,581 Liabilities: Investments (729,910) (6,676,401) Derivative financial instruments — — Intangible assets and transmission rights (2,549,784) (2,406,145) Deferred income tax assets of Mexican companies 25,951,453 16,969,168 Deferred income tax assets of certain foreign subsidiaries 261,929 163,747 Deferred income tax assets, net Ps. 26,213,382 Ps. 17,132,915 (1) Net of the benefit from tax loss carryforwards derived from the disposal in 2014 of the Group’s investment in GSF, in the amount of Ps.4,668,717 and Ps.4,526,042 in 2020 and 2019, respectively. The deferred tax assets are in tax jurisdictions in which the Group considers that based on financial projections of its cash flows, results of operations and synergies between subsidiaries, will generate taxable income in subsequent periods. The gross rollforward of deferred income tax assets, net, is as follows: 2020 2019 At January 1 Ps. Ps. Statement of income credit 1,574,610 Other comprehensive income (“OCI”) credit 7,528,693 Retained earnings charge — (342,420) Disposed operations (22,836) (68,731) At December 31 Ps. 26,213,382 Ps. The rollforward of deferred income tax assets and liabilities for the year 2020, was as follows: Credit (Charge) Credit (Charge) to Consolidated to OCI and At January 1, Statement of Retained Disposed At December 31, 2020 Income Earnings Operations 2020 Assets: Accrued liabilities Ps. 4,352,021 Ps. 1,867,291 Ps. — Ps. — Ps. 6,219,312 Loss allowance 1,550,482 (314,824) — — 1,235,658 Customer advances 1,499,462 100,872 — — 1,600,334 Derivative financial instruments 273,210 288,737 411,044 — 972,991 Property, plant and equipment, net 1,650,860 433,690 — — 2,084,550 Prepaid expenses and other items 3,700,673 2,087,586 103,294 (22,836) 5,868,717 Tax loss carryforwards 13,025,006 (1,516,219) (259,202) — 11,249,585 Deferred income tax assets of foreign subsidiaries 163,747 98,182 — — 261,929 Liabilities: Investments (6,676,401) (1,327,066) 7,273,557 — (729,910) Derivative financial instruments — — — — — Intangible assets and transmission rights (2,406,145) (143,639) — — (2,549,784) Deferred income tax assets, net Ps. 17,132,915 Ps. 1,574,610 Ps. 7,528,693 Ps. (22,836) Ps. 26,213,382 The rollforward of deferred income tax assets and liabilities for the year 2019, was as follows: Reclassification Credit (Charge) Credit (Charge) to Current to Consolidated to OCI and Assets At January 1, Statement of Retained (Liabilities) At December 31, 2019 Income Earnings Held for Sale 2019 Assets: Accrued liabilities Ps. 3,619,288 Ps. 732,733 Ps. — Ps. — Ps. 4,352,021 Loss allowance 1,344,425 206,057 — — 1,550,482 Customer advances 1,799,330 (299,868) — — 1,499,462 Derivative financial instruments — (183,364) 456,574 — 273,210 Property, plant and equipment, net 1,570,890 79,970 — — 1,650,860 Prepaid expenses and other items 1,125,387 2,586,763 57,254 (68,731) 3,700,673 Tax loss carryforwards 13,015,397 334,122 (324,513) — 13,025,006 Deferred income tax assets of foreign subsidiaries 221,392 (57,645) — — 163,747 Liabilities: Investments (7,812,896) 514,133 622,362 — (6,676,401) Derivative financial instruments (248,547) 248,547 — — — Intangible assets and transmission rights (843,409) (1,562,736) — — (2,406,145) Deferred income tax assets, net Ps. 13,791,257 Ps. 2,598,712 Ps. 811,677 Ps. (68,731) Ps. 17,132,915 The tax (charge) credit relating to components of other comprehensive income is as follows: 2020 Tax (Charge) Before Tax Credit After Tax Remeasurement of post-employment benefit obligations Ps. (344,313) Ps. 103,294 Ps. (241,019) Exchange differences on translating foreign operations 133,522 408,221 541,743 Derivative financial instruments cash flow hedges (1,370,145) 411,044 (959,101) Warrants exercised for common stock of UHI (21,899,164) 6,639,400 (15,259,764) Open-Ended Fund (904,423) 268,906 (635,517) Other equity instruments (353,496) 106,049 (247,447) Share of loss of associates and joint ventures (61,033) — (61,033) Other comprehensive loss Ps. (24,799,052) Ps. 7,936,914 Ps. (16,862,138) Current tax Ps. 408,221 Deferred tax 7,528,693 Ps. 7,936,914 2019 Tax (Charge) Before Tax Credit After Tax Remeasurement of post-employment benefit obligations Ps. (247,092) Ps. 74,128 Ps. (172,964) Remeasurement of post-employment benefit obligations of assets held for sale (3,445) 1,033 (2,412) Exchange differences on translating foreign operations (98,422) (101,323) (199,745) Derivative financial instruments cash flow hedges (1,521,912) 456,574 (1,065,338) Warrants exercisable for common stock of UHI 257,306 (77,192) 180,114 Open-Ended Fund (351,202) 112,590 (238,612) Other equity instruments (794,624) 238,387 (556,237) Other financial assets 111 (33) 78 Share of loss of associates and joint ventures (236,159) — (236,159) Other comprehensive loss Ps. (2,995,439) Ps. 704,164 Ps. (2,291,275) Current tax Ps. (449,933) Deferred tax 1,154,097 Ps. 704,164 2018 Tax (Charge) Before Tax Credit After Tax Remeasurement of post-employment benefit obligations (1) Ps. (97,086) Ps. 230,623 Ps. 133,537 Exchange differences on translating foreign operations (859,032) (587) (859,619) Derivative financial instruments cash flow hedges 174,532 (52,359) 122,173 Warrants exercisable for common stock of UHI (1,347,698) 404,309 (943,389) Open-Ended Fund 215,957 (64,787) 151,170 Other equity instruments 603,766 (181,130) 422,636 Other financial assets (111) 33 (78) Share of loss of associates and joint ventures (47,313) — (47,313) Other comprehensive loss Ps. (1,356,985) Ps. 336,102 Ps. (1,020,883) Current tax Ps. (587) Deferred tax 336,689 Ps. 336,102 (1) During 2018, the Group recognized a deferred income tax benefit of Ps.201,497, related to remeasurement of post-employment benefit obligations of prior years. The Group does not recognize deferred income tax liabilities related to its investments in certain associates and joint ventures, as either i) the Group is able to control the timing of the reversal of temporary differences arising from these investments, and it is probable that these temporary differences will not reverse in the foreseeable future or ii) no temporary difference arises due to the application of Mexican income tax law. As of December 31, 2020 and 2019, the deferred tax liabilities in connection with the Group’s investments in these associates and joint ventures amounted to an aggregate of Ps. 44,820 and Ps.1,029,209, respectively. In 2019 included primarily the investment in UHI. As of December 31, 2020, this investment had ceased to generate a deferred income tax liability, because of the Group's excercise of the warrants and the resulting temporary difference becoming a deductible temporary difference which is unrecognized in the consolidated financial position. In December 2018, the Mexican Federal Congress approved reforms to the Economic Plan for 2019, which did not include relevant changes in the Mexican tax legislation, except for the limitation to use overpayments of taxes against the same kind of tax (Value Added Taxes (“VAT”) against VAT), and some incentives for taxpayers operating in the Northern border region of Mexico. Until December 2018, taxpayers were able to offset overpayments of different type of taxes against each other and against taxes withheld. With the tax reform, this ability was eliminated, and taxpayers are only allowed to offset tax overpayments that derive from the same tax. This limitation may affect some of our subsidiaries that recurrently have VAT or Income Tax overpayments but could offset those overpayments against each other (i.e. VAT against Income Tax). Beginning on January 1, 2019, they will only be able to: (i) to request a refund of the overpayment or (ii) to offset tax overpayments against the same tax. In December 2019, the Mexican Federal Congress approved reforms to the Economic Plan for 2020. These tax reforms included amendments to the Mexican Income Tax Law, Value Added Tax Law, Special Tax on Production and Services Law, and Federal Tax Code, and they became effective as of January 1, 2020. Some of the most relevant changes to the Mexican tax legislation incorporated some of the Actions included in the Base Erosion and Profit Shifting Final Report (BEPS) published by the OCDE in February 2013, such as: (i) limitations to the deduction of net interest paid by companies as well as to some other deductions, (ii) update of the Controlled Foreign Corporation (CFC) Rules, (iii) new provisions to tax transparent entities, (iv) modification of the definition of permanent establishment, and (v) incorporation of new rules to tax digital economy. Some other relevant amendments to avoid tax evasion included: (i) a new obligation of tax advisors and taxpayers to disclose reportable schemes, and (ii) inclusion of general anti-avoidance rule. In December 2020, the Mexican Federal Congress approved minimum amendments to the Income Tax Law, Value Added Tax Law and Federal Tax Code as part of the Economic Plan for 2021. Regarding the Income Tax Law several changes were made to the general regime applicable to Tax-Exempt Organizations, that aimed to control and restrict the application of such regime to ensure that only the companies that perform non-for-profit activities benefit from the dispositions of such Regime. Another important amendment was the decrease of the rate of annual withholding tax applicable to the capital that produces interest paid by the financial system, which changed from 1.45% to 0.97%. In terms of value added tax, derived from the entry into force of the digital economy dispositions, some more dispositions were included to specify the way to comply with those obligations, as well as penalties to ensure such compliance. |
Earnings per CPO_Share
Earnings per CPO/Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per CPO/Share | |
Earnings per CPO/Share | 25. At December 31, 2020 and 2019, the weighted average of outstanding total shares, CPOs and Series “A”, Series “B”, Series “D” and Series “L” Shares (not in the form of CPO units), was as follows (in thousands): 2020 2019 Total Shares 330,685,559 338,375,192 CPOs 2,351,464 2,412,794 Shares not in the form of CPO units: Series “A” Shares 55,563,596 56,077,584 Series “B” Shares 187 187 Series “D” Shares 239 239 Series “L” Shares 239 239 Basic earnings per CPO and per each Series “A”, Series “B”, Series “D” and Series “L” Share (not in the form of a CPO unit) for the years ended December 31, 2020, 2019 and 2018, are presented as follows: 2020 2019 2018 Per Per Per Per Per Per CPO Share (*) CPO Share (*) CPO Share (*) Net income attributable to stockholders of the Company Ps. (0.44) Ps. 0.00 Ps. 1.60 Ps. 0.01 Ps. 2.07 Ps. 0.02 (*) Series “A”, “B”, “D” and “L” Shares not in the form of CPO units. Diluted earnings per CPO and per Share attributable to stockholders of the Company calculated in connection with CPOs and shares in the LTRP, are as follows: 2020 2019 Total Shares 352,237,926 354,827,433 CPOs 2,486,783 2,508,916 Shares not in the form of CPO units: Series “A” Shares 58,926,613 58,926,613 Series “B” Shares 2,357,208 2,357,208 Series “D” Shares 239 239 Series “L” Shares 239 239 Diluted earnings per CPO and per each Series “A”, Series “B”, Series “D” and Series “L” Share (not in the form of a CPO unit) for the years ended December 31, 2020, 2019 and 2018, are presented as follows: 2020 2019 2018 Per Per Per Per Per Per CPO Share (*) CPO Share (*) CPO Share (*) Net income attributable to stockholders of the Company Ps. (0.41) Ps. 0.00 Ps. 1.53 Ps. 0.01 Ps. 1.96 Ps. 0.02 (*) Series “A”, “B”, “D” and “L” Shares not in the form of CPO units. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Segment Information | 26. Reportable segments are those that are based on the Group’s method of internal reporting. The Group is organized on the basis of services and products. The Group’s segments are strategic business units that offer different entertainment services and products. The Group’s reportable segments are as follows: Cable The Cable segment includes the operation of cable multiple systems covering the Mexico City metropolitan area, Monterrey and suburban areas, and over 200 other cities of Mexico; and the operation of telecommunication facilities through a fiber-optic network that covers the most important cities and economic regions of Mexico and the cities of San Antonio and San Diego in the United States (Bestel). The cable multiple system businesses derive revenues from cable subscribers, principally from basic and premium television services subscription, pay- per-view fees, installation fees, Internet services subscription, telephone and mobile services subscription as well as from local and national advertising sales. The telecommunication facilities business derives revenues from providing data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. Sky The Sky segment includes DTH broadcast satellite pay television services in Mexico, Central America and the Dominican Republic. Sky revenues are primarily derived from program services, installation fees and equipment rental to subscribers, and national advertising sales. Content The Content segment categorizes the Group’s sources of content revenue as follows: (a) Advertising; (b) Network Subscription Revenue; and (c) Licensing and Syndication. Given the cost structure of the Group’s Content business, operating segment income is reported as a single line item. The Advertising revenue is derived primarily from the sale of advertising time on the Group’s television broadcast operations, which include the production of television programming and broadcasting of Channels 2, 4, 5 and 9 (“television networks”), as well as the sale of advertising time on programs provided to pay television companies in Mexico and advertising revenue in the Group’s Internet business and the production of television programming and broadcasting for local television stations in Mexico. The broadcasting of television networks is performed by television repeater stations in Mexico, which are wholly-owned, majority-owned or minority-owned by the Group or otherwise affiliated with the Group’s networks. The Network Subscription revenue is derived from domestic and international programming services provided to independent cable television systems in Mexico and the Group’s direct-to-home (“DTH”) satellite and cable television businesses. These programming services for cable and pay-per- view television companies are provided in Mexico, other countries in Latin America, the United States and Europe. The programming services consist of both programming produced by the Group and programming produced by others. The Licensing and Syndication revenue is derived from international program licensing and syndication fees. The Group’s television programming is licensed and syndicated to customers abroad, including Univision. Other Businesses The Other Businesses segment includes the Group’s domestic operations in sports and show business promotion, soccer, feature film production and distribution, gaming, publishing and publishing distribution . Through the third quarter of 2019, the Radio business was classified in the Group's Other Businesses segment. Beginning in the fourth quarter of 2019, the Radio operating results were classified as held-for-sale operations through June 30, 2020, and as disposed operations following the disposition of this business in July 2020 (see Notes 2 (b) and 3). The table below presents information by segment and a reconciliation to consolidated total for the years ended December 31, 2020, 2019 and 2018: Intersegment Consolidated Segment Total Revenues Revenues Revenues Income 2020: Cable Ps. 45,367,108 Ps. 710,357 Ps. 44,656,751 Ps. 18,898,301 Sky 22,134,701 581,270 21,553,431 9,135,346 Content 32,613,007 4,679,805 27,933,202 12,360,797 Other Businesses 4,276,074 1,281,096 2,994,978 116,480 Segment totals 104,390,890 7,252,528 97,138,362 40,510,924 Reconciliation to consolidated amounts: Disposed operations (see Note 3) 223,272 — 223,272 (3,991) Eliminations and corporate expenses (7,252,528) (7,252,528) — (1,954,406) Depreciation and amortization expense — — — (21,260,787) Consolidated net sales and income before other income 97,361,634 — 97,361,634 17,291,740 (1) Other income, net — — — 233,628 Consolidated net sales and operating income Ps. 97,361,634 Ps. — Ps. 97,361,634 Ps. 17,525,368 (2) Intersegment Consolidated Segment Total Revenues Revenues Revenues Income 2019: Cable Ps. 41,701,982 Ps. 591,618 Ps. 41,110,364 Ps. 17,797,571 Sky 21,347,078 437,275 20,909,803 9,121,221 Content 35,060,534 3,589,407 31,471,127 12,649,135 Other Businesses 8,200,212 772,793 7,427,419 1,464,249 Segment totals 106,309,806 5,391,093 100,918,713 41,032,176 Reconciliation to consolidated amounts: Disposed operations (see Note 3) 841,437 2,969 838,468 258,885 Eliminations and corporate expenses (5,394,062) (5,394,062) — (1,960,648) Depreciation and amortization expense — — — (21,008,796) Consolidated net sales and income before other expense 101,757,181 — 101,757,181 18,321,617 (1) Other expense, net — — — (1,316,587) Consolidated net sales and operating income Ps. 101,757,181 Ps. — Ps. 101,757,181 Ps. 17,005,030 (2) Intersegment Consolidated Segment Total Revenues Revenues Revenues Income 2018: Cable Ps. 36,233,042 Ps. 560,186 Ps. 35,672,856 Ps. 15,302,500 Sky 22,002,216 420,979 21,581,237 9,767,329 Content 39,223,668 3,162,091 36,061,577 14,855,109 Other Businesses (3) 7,715,489 661,422 7,054,067 410,486 Segment totals 105,174,415 4,804,678 100,369,737 40,335,424 Reconciliation to consolidated amounts: Disposed operations (see Note 3) 920,009 7,413 912,596 343,799 Eliminations and corporate expenses (4,812,091) (4,812,091) — (2,154,747) Depreciation and amortization expense — — — (19,834,202) Consolidated net sales and income before other income 101,282,333 — 101,282,333 18,690,274 (1) Other income, net — — — 1,562,284 Consolidated net sales and operating income Ps. 101,282,333 Ps. — Ps. 101,282,333 Ps. 20,252,558 (2) (1) This amount represents income before other income or expense, net. (2) This amount represents consolidated operating income. (3) In 2018, the Radio operations were previously reported as part of the Other Businesses segment. In 2020, the Radio operations for 2019 and 2018, were classified as disposed operations for comparison purposes. Accounting Policies The accounting policies of the segments are the same as those described in the Group’s summary of significant accounting policies (see Note 2). The Group evaluates the performance of its segments and allocates resources to them based on operating income before depreciation and amortization. Intersegment Revenue Intersegment revenue consists of revenues derived from each of the segments principal activities as provided to other segments. The Group accounts for intersegment revenues as if the revenues were from third parties, that is, at current market prices. Allocation of Corporate Expenses Non-allocated corporate expenses primarily include share-based compensation expense for certain key officers and employees in connection with the Company’s LTRP, as well as other general expenses that because of their nature and characteristics are not subject to be allocated within the Group’s business segments. The table below presents segment information about assets, liabilities, and additions to property, plant and equipment as of and for the years ended December 31, 2020, 2019 and 2018: Segment Additions to Segment Assets Liabilities Property, Plant at Year-End at Year-End and Equipment 2020: Continuing operations: Cable Ps. 112,478,015 Ps. 22,295,808 Ps. 14,182,848 Sky 26,423,707 10,696,397 5,361,494 Content 80,237,558 27,427,941 479,731 Other Businesses 8,177,183 3,936,289 107,665 Total Ps. 227,316,463 Ps. 64,356,435 Ps. 20,131,738 2019: Continuing operations: Cable Ps. 105,841,104 Ps. 21,637,395 Ps. 12,995,448 Sky 27,755,967 12,902,845 4,039,020 Content 78,336,679 31,555,070 1,690,805 Other Businesses 10,268,185 4,530,712 383,011 Total Ps. 222,201,935 Ps. 70,626,022 Ps. 19,108,284 2018: Continuing operations: Cable Ps. 99,678,509 Ps. 21,294,108 Ps. 12,835,918 Sky 30,350,221 13,680,854 4,020,405 Content 83,525,004 39,960,653 1,349,954 Other Businesses 9,753,075 3,564,429 502,214 Total Ps. 223,306,809 Ps. 78,500,044 Ps. 18,708,491 Segment assets reconcile to total assets as of December 31, 2020 and 2019, as follows: 2020 2019 Segment assets Ps. 227,316,463 Ps. 222,201,935 Investments attributable to: Cable 515,002 567,435 Content (1) 29,096,777 53,264,422 Other Businesses 204,464 196,474 Goodwill attributable to: Cable 13,794,684 13,794,684 Content 241,973 241,973 Other Businesses 76,969 76,969 Total assets Ps. 271,246,332 Ps. 290,343,892 (1) Includes goodwill attributable to equity investments of Ps.359,613 in 2020 and 2019 (see Note 10). Equity method loss recognized in income for the years ended December 31, 2020, 2019 and 2018 attributable to equity investments in Cable, was Ps. 7,826, Ps.62,329 and Ps.47,024, respectively. Equity method (loss) gain recognized in income for the years ended December 31, 2020, 2019 and 2018 attributable to equity investments in Content, was Ps.(5,739,833), Ps.642,768 and Ps.564,226, respectively. Equity method gain recognized in income for the years ended December 31, 2020, 2019 and 2018 attributable to equity investments in Other Businesses, was Ps.7,991, Ps.584 and Ps.15,731, respectively. Segment liabilities reconcile to total liabilities as of December 31, 2020 and 2019, as follows: 2020 2019 Segment liabilities Ps. 64,356,435 Ps. 70,626,022 Debt not allocated to segments 118,950,864 114,092,637 Total liabilities Ps. 183,307,299 Ps. 184,718,659 Geographical segment information: Additions to Segment Assets at Property, Plant and Total Net Sales Year-End Equipment 2020: Mexico Ps. 84,664,293 Ps. 215,395,954 Ps. 19,707,436 Other countries (1) 12,697,341 11,920,509 424,302 Ps. 97,361,634 Ps. 227,316,463 Ps. 20,131,738 2019: Mexico Ps. 88,388,569 Ps. 211,592,987 Ps. 18,804,629 Other countries (1) 13,368,612 10,608,948 303,655 Ps. 101,757,181 Ps. 222,201,935 Ps. 19,108,284 2018: Mexico Ps. 85,011,567 Ps. 216,146,757 Ps. 18,696,116 Other countries (1) 16,270,766 7,160,052 12,375 Ps. 101,282,333 Ps. 223,306,809 Ps. 18,708,491 (1) The United States is the largest country from which revenue is derived. Net sales are attributed to geographical segment based on the location of customers. Disaggregation of Total Revenues The table below present total revenues for each reportable segment disaggregated by major service/product lines and primary geographical market for the years ended December 31, 2020, 2019 and 2018: Domestic Export Abroad Total 2020: Cable: Digital TV Service (a) Ps. 16,549,458 Ps. — Ps. — Ps. 16,549,458 Advertising 1,633,201 — — 1,633,201 Broadband Services (a) 16,540,687 — — 16,540,687 Telephony (a) 4,382,964 — — 4,382,964 Other Services 702,023 — — 702,023 Enterprise Operations 5,245,443 — 313,332 5,558,775 Sky: DTH Broadcast Satellite TV (a) 19,398,285 — 1,569,999 20,968,284 Advertising 1,112,662 — — 1,112,662 Pay-Per-View 42,291 — 11,464 53,755 Content: Advertising 16,180,397 169,362 — 16,349,759 Network Subscription Revenue 4,322,535 1,143,657 — 5,466,192 Licensing and Syndication 1,572,659 9,224,397 — 10,797,056 Other Businesses: Gaming 959,985 — — 959,985 Soccer, Sports and Show Business Promotion 1,382,708 146,324 — 1,529,032 Publishing - Magazines 269,768 — 942 270,710 Publishing - Advertising 173,645 — — 173,645 Publishing Distribution 309,673 — — 309,673 Feature Film Production and Distribution 915,165 — 117,864 1,033,029 Segment total 91,693,549 10,683,740 2,013,601 104,390,890 Disposed operations: Radio - Advertising (see Note 3) 223,272 — — 223,272 Intersegment eliminations (7,252,528) — — (7,252,528) Consolidated total revenues Ps. 84,664,293 Ps. 10,683,740 Ps. 2,013,601 Ps. 97,361,634 Domestic Export Abroad Total 2019: Cable: Digital TV Service (a) Ps. 16,298,079 Ps. — Ps. — Ps. 16,298,079 Advertising 1,507,831 — — 1,507,831 Broadband Services (a) 14,544,473 — — 14,544,473 Telephony (a) 3,658,121 — — 3,658,121 Other Services 801,937 — — 801,937 Enterprise Operations 4,626,396 — 265,145 4,891,541 Sky: DTH Broadcast Satellite TV (a) 18,918,077 — 1,359,079 20,277,156 Advertising 953,634 — — 953,634 Pay-Per-View 98,539 — 17,749 116,288 Content: Advertising 19,236,014 223,434 — 19,459,448 Network Subscription Revenue 3,832,716 1,160,459 — 4,993,175 Licensing and Syndication 1,794,636 8,813,275 — 10,607,911 Other Businesses: Gaming 2,974,284 — — 2,974,284 Soccer, Sports and Show Business Promotion 1,821,605 1,182,972 — 3,004,577 Publishing - Magazines 393,763 — 18,076 411,839 Publishing - Advertising 246,309 — 23,461 269,770 Publishing Distribution 337,685 — — 337,685 Feature Film Production and Distribution 890,927 787 310,343 1,202,057 Segment total 92,935,026 11,380,927 1,993,853 106,309,806 Disposed operations: Radio - Advertising (see Note 3) 841,437 — — 841,437 Intersegment eliminations (5,387,894) — (6,168) (5,394,062) Consolidated total revenues Ps. 88,388,569 Ps. 11,380,927 Ps. 1,987,685 Ps. 101,757,181 Domestic Export Abroad Total 2018: Cable: Digital TV Service (a) Ps. 14,281,536 Ps. — Ps. — Ps. 14,281,536 Advertising 1,260,117 — — 1,260,117 Broadband Services (a) 13,034,172 — — 13,034,172 Telephony (a) 2,588,767 — — 2,588,767 Other Services 544,347 — — 544,347 Telecommunications Networks 4,361,586 — 162,517 4,524,103 Sky: DTH Broadcast Satellite TV (a) 19,478,307 — 1,374,849 20,853,156 Advertising 968,853 — — 968,853 Pay-Per-View 152,129 — 28,078 180,207 Content: Advertising 20,932,533 222,369 — 21,154,902 Network Subscription Revenue 3,500,375 1,313,907 — 4,814,282 Licensing and Syndication 1,437,081 11,817,403 — 13,254,484 Other Businesses: Gaming 2,676,384 — — 2,676,384 Soccer, Sports and Show Business Promotion 1,639,073 145,462 — 1,784,535 Publishing - Magazines 550,777 — 104,281 655,058 Publishing - Advertising 482,943 — 181,514 664,457 Publishing Distribution 270,624 — 40,148 310,772 Feature Film Production and Distribution 735,928 3,569 884,786 1,624,283 Segment total 88,895,532 13,502,710 2,776,173 105,174,415 Disposed operations: Radio - Advertising (see Note 3) 920,009 — — 920,009 Intersegment eliminations (4,803,974) — (8,117) (4,812,091) Consolidated total revenues Ps. 85,011,567 Ps. 13,502,710 Ps. 2,768,056 Ps. 101,282,333 (a) Digital TV Service revenues include revenue from leasing set-top equipment to subscribers in the Cable segment in the amount of Ps. 5,514,984, Ps.5,289,996 and Ps.4,577,513, for the years ended December 31, 2020, 2019 and 2018, respectively. DTH Broadcast Satellite TV revenues include revenue from leasing set-top equipment to subscribers in the Sky segment in the amount of Ps.9,212,317, Ps.9,232,152 and Ps.9,971,318, for the years ended December 31, 2020, 2019 and 2018, respectively. Revenue from leasing set-top equipment to subscribers is recognized when services are rendered to such subscribers. Set-top equipment is part of the Group’s property, plant and equipment and is leased to subscribers through operating lease contracts. Net sales from external customers for the years ended December 31, 2020, 2019 and 2018 are presented by sale source, as follows: 2020 2019 2018 Services Ps. 71,745,105 Ps. 75,988,820 Ps. 72,737,313 Royalties 9,907,313 10,005,977 12,600,061 Goods 805,690 932,198 1,163,836 Leases (1) 14,903,526 14,830,186 14,781,123 Total Ps. 97,361,634 Ps. 101,757,181 Ps. 101,282,333 (1) This line includes primarily revenue from leasing set-top equipment to subscribers in the Cable and Sky segments, which is recognized when services are rendered to such subscribers. Set-top equipment is part of the Group’s property and equipment and is leased to subscribers through operating lease contracts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 27. Commitments As of December 31, 2020, the Group had commitments for programming and transmission rights to be acquired or licensed from third party producers and suppliers, mainly related to special events, in the aggregate amount of U.S.$82.2 million (Ps.1,639,297) and U.S.$818.9 million (Ps.16,337,216), respectively, with various payment commitments to be made between 2021 and 2030. As of December 31, 2020 the Group had third party commitments for transmission rights to be sublicensed by the Group in the aggregate amount of U.S.$88.7 million (Ps.1,769,602) with various cash payments to be received by the Group between 2021 and 2030. At December 31, 2020, the Group had commitments in an aggregate amount of Ps.1,732,382, of which Ps.10,086, were commitments related to gaming operations, Ps.120,956, were commitments to acquire television technical equipment, Ps.390,080, were commitments for the acquisition of software and related services, and Ps.1,211,260, were construction commitments for building improvements and technical facilities. In connection with a long-term credit facility, the Group expects to provide financing to GTAC in 2021 in the principal amount of Ps.49,000 and U.S.$4.0 million (Ps.79,797) (see Note 10). At December 31, 2020, the Group had the following aggregate minimum annual commitments (undiscounted) for the use of satellite transponders: Thousands of U.S. Dollars 2021 U.S.$ 6,410 2022 4,163 2023 2,988 2024 and thereafter 2,914 U.S.$ 16,475 A reconciliation of the non-cancellable lease commitments as of December 31, 2018 and the initial measurement of the lease liabilities under IFRS 16 were as follow: Operating lease commitments disclosed under IAS 17 in the Group's consolidated financial statements as of December 31, 2018 Ps. 7,160,431 Discounted using the incremental borrowing rate at January 1, 2019 (2,669,751) Finance lease liabilities recognized at December 31, 2018 5,317,944 Adjustments as a result of a different treatment of extension, termination options and short-term and low-value exemptions 306,632 Lease liabilities recognized at January 1, 2019 Ps. 10,115,256 Preponderant Economic Agent On March 6, 2014, the IFT issued a decision whereby it determined that the Company, together with certain subsidiaries with concessions that provide broadcast television, are preponderant economic agents in the broadcasting sector in Mexico (together, the “Preponderant Economic Agent”). The preponderance decision imposes on the Preponderant Economic Agent various measures, terms, conditions and restrictive obligations, some of which may adversely affect the activities and businesses of the Group’s broadcasting businesses, as well as their results of operations and financial condition. Among these measures, terms, conditions and restrictive obligations are included the following: Infrastructure sharing - The Preponderant Economic Agent must make its passive broadcasting infrastructure (as defined in the preponderance decision) available to third-party concessionaries of broadcast television (as defined in the preponderance decision) for commercial purposes in a non-discriminatory and non-exclusive manner, with the exception of broadcasters that, at the time the measures enter into force, have 12 MHz or more of radio-electric spectrum in the geographic area concerned. Advertising sales – The Preponderant Economic Agent must deliver to IFT and publish the terms and conditions of certain broadcast advertising services and fee structures, including, without limitation, commercials, packages, bonuses and discount plans and any other commercial practice, and publish them on its webpage. Prohibition on acquiring certain exclusive content - The Preponderant Economic Agent may not acquire transmission rights, on an exclusive basis, for any location within Mexico with respect to certain relevant content, determined by IFT in the Ruling whereby IFT identifies the relevant audiovisual contents in terms and for the purposes of the fourth measure and the second transitory article of the fourth attachment whereby the Preponderant Economic Agent in the telecommunication sector was resolved and the eighteenth and thirteenth transitory articles of the first attachment of the resolution whereby the Preponderant Economic Agent in the broadcasting sector as resolved (the “Relevant Content Ruling”), which may be updated every two years by IFT. Over-the-air channels - When the Preponderant Economic Agent offers any of its over-the-air channels, or channels that have at least 50% of the programming broadcasted between 6:00 a.m. and midnight on such channels in the same day, to its affiliates, subsidiaries, related partiers and third parties, for distribution through a different technological platform than over-the-air-broadcast television, the Preponderant Economic Agent must offer these channels to any other person that asks for distribution over the same platform as the Preponderant Economic Agent has offered, on the same terms and conditions. Prohibition on participating in “buyers’ clubs” or syndicates to acquire audiovisual content, without IFT’s prior approval - The Preponderant Economic Agent may not enter into or remain in any “buyers’ club” or syndicates of audiovisual content unless it has received the prior approval of IFT. There are currently no resolutions from the IFT, judgments or orders that would require the Group to divest any of the assets as a result of being declared a Preponderant Economic Agent in the broadcasting sector. On February 27, 2017, as part of a biennial review of the broadcasting sector preponderance rules, the IFT issued a ruling that amended some of the existing preponderance rules in broadcasting and included some additional obligations on the Company and some of its subsidiaries (the “New Preponderance Measures”), as follows: Infrastructure sharing - In addition to the previously imposed obligations regarding the sharing of passive infrastructure, the New Preponderance Measures have included the service of signal emissions only in the event that no passive infrastructure exists on the requested site. In addition, the New Preponderance Measures strengthen the supervision of the infrastructure services provided by the Group, including certain rules relating to the publicity of its tariffs. In addition, more specifications for the Electronic Management System as part of the new measures are included. Likewise, the IFT determined specific tariffs for our infrastructure offer. Prohibition to acquire certain exclusive content for broadcasting - This measure has been modified by enabling the Group to acquire relevant content under certain circumstances, as long as it obtains the right to sublicense such transmission rights to the other broadcasters in Mexico on non-discriminatory terms. In December 2018, the Relevant Content Ruling was updated. Advertising sales - IFT modified this measure mainly by including specific requirements to the Group in its provision of over-the-air advertising services, particularly, to telecommunications companies. Such requirements include, among others: a) publishing and delivering to IFT specific information regarding tariffs, discount plans, contracting and sales terms and conditions, contract forms and other relevant practices; and b) terms and conditions that prohibit discrimination or refusal to deal, conditioned sales and other conditions that inhibit competition. The Group began the process of providing very detailed information to IFT on a recurrent basis of over the air advertising services related to telecommunications companies. Accounting separation – The Group, as Preponderant Economic Agent, is required to implement an accounting separation methodology under the criteria defined by IFT, published in the Official Gazette of the Federation on December 29, 2017, as amended. On March 28, 2014, the Company, together with its subsidiaries determined to be the Preponderant Economic Agent in the broadcasting sector, filed an amparo proceeding challenging the constitutionality of the Preponderance Decision. The Supreme Court resolved the amparo proceeding, resolving the constitutionality of the Preponderance Resolution and therefore, it is still valid. Additionally, on March 31, 2017, the Company, together with its subsidiaries, filed an amparo proceeding challenging the constitutionality of the New Preponderance Measures. On November 21, 2019 the Second Court of the Supreme Court granted the amparo and revoked the New Preponderance Measures. Consequently, the valid and applicable measures in force are the resolved in accordance with the Preponderance Resolution. The earliest bi-annual review of the preponderance measures for broadcasting sector that began in 2019 was concluded as a result of the amparo resolution. The Company will continue to assess the extent and impact of the various measures, terms, conditions and restrictive obligations in connection with its designation by IFT as Preponderant Economic Agent, including the New Preponderance Measures, and will analyze carefully any actions and/or remedies (legal, business and otherwise) that the Company should take and/or implement regarding these matters. Substantial Power Economic Agent On November 26, 2020, the Company was declared by IFT to be an economic agent with substantial power in the market of restricted television and audio services in certain municipalities. The ruling does not imply that the Company entered into any anticompetitive practices. The IFT will now begin a new proceeding to determine if any asymmetric measures will be necessary, and the Company will be heard in this proceeding. The Company considers that IFT's ruling is inconsistent with resolutions previously issued by such institute in other investigations regarding substantial power in the same market. Therefore, it will consider all options in its defense. Contingencies On March 5, 2018, a purported stockholder class action lawsuit was filed in the United States District Court for the Southern District of New York alleging securities law violations in connection with allegedly misleading statements and/or omissions in the Company's public disclosures. The lawsuit alleges that the Company and two of its executives failed to disclose alleged involvement in bribery activities relating to certain executives of Fédération Internationale de Football Association ("FIFA"), and wrongfully failed to disclose weaknesses in the Company's internal control over its financial reporting as of December 31, 2016. On May 17, 2018, the Court appointed a lead plaintiff for the putative stockholder class. On August 6, 2018, the lead plaintiff filed an amended complaint. The Company thereupon filed a motion to dismiss the amended complaint. On March 25, 2019, the court issued a decision denying the Company's motion to dismiss, holding that plaintiff's allegations, if true, were sufficient to support a claim. The parties began to exchange discovery materials, and the discovery process has continued into 2021. On June 8, 2020, the court issued a decision denying class certification based on the inadequacy of the proposed class representative. On June 29, 2020, the court issued a decision granting class certification to a new class representative. The Company sought permission for leave to appeal the District Court's order. On October 6, 2020, the United States Court of Appeals for the Second Circuit denied Televisa's request for leave to appeal the District Court's class certification order. The Company continues to believe that the lawsuit, and the material allegations and claims therein, are without merit and intends to vigorously defend against the lawsuit. With regard to plaintiff's allegations regarding FIFA, outside counsel long previously investigated the circumstances surrounding the Company's acquisition of the Latin American media rights for the Canada, Mexico and USA 2026 FIFA World Cup and 2030 FIFA World Cup and uncovered no credible evidence that would form the basis for liability for the Company or for any executive, employee, agent or subsidiary thereof. In particular, the Company itself made no payment to any FIFA person and in no way knew of, or condoned, any payment by any third party to any FIFA person. The Company also notes that no proceedings have been initiated against it by any governmental agency. On April 27, 2017, the tax authorities, initiated a tax audit to the Company, with the purpose of verifying compliance with tax provisions for the fiscal period from January 1 to December 31, 2011, regarding federal taxes as direct subject of Income Tax (Impuesto sobre la Renta or ISR), Flat tax (Impuesto Empresarial a Tasa Única) and Value Added Tax (Impuesto al Valor Agregado). On April 25, 2018, the authorities informed the observations determined as a result of such audit, that could entail a default on the payment of the abovementioned taxes. On May 25, 2018, by a document submitted before the authority, the Company asserted arguments and offered evidence to undermine the authority’s observations. On June 27, 2019, the Company was notified of the outcome of the audit, in which a tax liability was determined for an amount of Ps.682 million for ISR, penalties, surcharges and inflation adjustments. On August 22, 2019, the Company filed an administrative proceeding ( recurso de revocación ) against such tax liability, before the Legal area of the Tax Authorities, which is in the process of being resolved. As of the date of this report, there are no elements to determine if the outcome would be adverse to the Company’s interests. On June 1, 2016, the tax authority initiated a tax audit to a Company’s indirect subsidiary that carries out operations in the Gaming business, which is presented in the Other Businesses segment, with the purpose of verifying compliance with tax provisions for the period from January 1, to December 31, 2014, regarding federal taxes as direct subject, as well as withholder. On April 24, 2017, the authorities informed the facts and omissions detected during the development of the verification process, that could entail a default on the payment of the abovementioned taxes. On May 30, 2017, by a document submitted before the authorities, the Company’s subsidiary asserted arguments and offered evidence to undermine the facts and omissions included in the authority’s last partial record. On June 21, 2019, such entity was notified of the outcome of the audit, in which a tax liability was determined for an amount of Ps.1,334 million, essentially related to IEPS (Impuesto Especial sobre Producción y Servicios or Excise Tax); on August 16, 2019, an administrative proceeding ( recurso de revocación ) was filed before the Legal area of the Tax Authorities. On January 7, 2021, the resolution to the administrative proceeding was notified, in which the appealed resolution was confirmed. On February 19, 2021 a claim (juicio de nulidad) against the resolution issued in the reffered administrative proceeding was filed in the Second Regional Court of Puebla of the Federal Court of Administrative Justice (Tribunal Federal de Justicia Administrativa), which is still pending of resolution. As of the date of this report, there are no elements to determine if the outcome would be adverse to the Company’s interests. On August 12, 2019 the tax authority initiated a Foreign Trade Audit of one of the Company's indirect subsidiaries (Cablebox. S.A. de C.V.), with the purpose of verifying the correct payment of the contributions and levies on the import of the merchandise, as well as compliance with non-customs regulations and restrictions applicable to 26 foreign trade operations carried out during fiscal year 2016. On April 30, 2020, the tax authority released the observations determined as a result of the aforementioned review, which could lead to non-compliance with the payment of the referred contributions. On April 30, 2020 the tax authority informed the facts and omissions detected during the development of the verification process, that could entail a default on several provisions of the Customs Act (Ley Aduanera). On June 2 and 29, 2020, by several documents submitted before the authorities, the Company's subsidiary asserted arguments and offered evidence to undermine the facts and omissions included in the tax authority's last partial record. On July 16 such entity was notified of the outcome of the audit, in which a tax liability was determined for an amount of Ps.289,821 for a fine consisting on 70% of the commercial value of the merchandise subject to review, due to the alleged failure to comply with the Norma Oficial Mexicana, or Official Mexican Standards (NOM-019-SCFI-1998), as well as on the amount of the commercial value of the merchandise due to the material impossibility of the merchandise becoming property of the Federal Treasury. On August 27, 2020 an administrative proceeding ( recurso de revocación ) was filed before the Legal department of the Tax Authority, which is in the process of being resolved. As of the date of this report, it is not possible to determine if the outcome would be adverse or favorable to the Company's interests. The matters discussed in the three paragraphs referred to above did not require the recognition of a provision as of December 31, 2020. There are several legal actions and claims pending against the Group, which are filed in the ordinary course of business. In the opinion of the Company’s management, none of these actions and claims is expected now to have a material adverse effect on the Group’s financial statements as a whole; however, the Company’s management is unable to predict the outcome of any of these legal actions and claims. |
Changes in Accounting Policies
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 | 12 Months Ended |
Dec. 31, 2020 | |
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 | |
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 | 28. Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 (a) IFRS 9 IFRS 9 addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 requires financial assets to be classified into two measurement categories: those measured at amortized cost and those measured at fair value, with changes in fair value either through income or loss, or through other comprehensive income or loss. The determination is made at initial recognition. The basis of classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics of the financial assets. For financial liabilities, this IFRS Standard retained most of the IAS 39 Financial Instruments: Recognition and Measurement requirements. IFRS 9 considers under a new impairment approach that is no longer necessary for a credit event to have occurred before credit losses are recognized, instead, an entity always accounts for expected credit losses, and change in those expected losses to profit or loss; in respect to hedging activities, IFRS 9 aligns hedge accounting more closely with an entity’s risk management through a principles-based approach, by means of which the range from 0.8 to 1.25 to declare a maintaining hedge is eliminated an in its place, an effective hedging instrument will be declared only if it supports the entity’s risk management strategy and maintain an effective hedge, and in lieu thereof, an instrument of effective hedge could be deemed this way if it is aligned with the entity’s management risks strategy; IFRS 9 establishes that an entity making an irrevocable election to present in other comprehensive income changes in fair value of an investment in an equity instrument that is not held for trading, should not transfer to profit or loss any amounts presented in other comprehensive income, but may transfer the cumulative gain or loss within equity. The Company’s management used the retrospective cumulative effect, which consists in recognizing any cumulative adjustment resulting from the new standard at the date of initial adoption in consolidated equity. In connection with the initial adoption of IFRS 9 in the first quarter of 2018, and based on the Group’s exist in financial instruments, related contracts on hedge relationships as of December 31, 2017, the implementation of the new standard did not have a material impact on the Group’s consolidated financial statements upon adoption. (i) The adoption of IFRS 9 Financial Instruments from January 1, 2018 resulted in changes in accounting policies and adjustments to the amounts recognized in the financial statements. The new accounting policies are set out in Note 2 (i) and (w) above. In connection with expected credit losses of trade notes and accounts receivable, in conformity with the guidelines provided by IFRS 9, the Group applied the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables, and the Group recognized cumulative adjustments that decreased consolidated retained earnings as of January 1, 2018, as follows: Earnings Income Tax (Losses) Benefit Net Controlling interest Ps. (234,129) Ps. 67,101 Ps. (167,028) Non-controlling interests (47,465) 12,029 (35,436) Effect on equity at January 1, 2018 Ps. (281,594) Ps. 79,130 Ps. (202,464) In connection with the initial adoption of IFRS 9 which became effective on January 1, 2018, the Company classified financial assets as current temporary investments with changes in fair value through income or loss. Beginning on January 1, 2018, the Company classified these financial assets as non-current financial instruments with changes in fair value through other comprehensive income, based on its business model for managing financial assets and the contractual cash flow characteristics of these financial assets. In accordance with IFRS 9, this new classification the Group recognized cumulative adjustments in consolidated retained earnings as of January 1, 2018, as follows: Earnings Income Tax (Losses) Benefit Net Effect on equity at January 1, 2018 Ps. (1,182,760) Ps. 354,828 Ps. (827,932) (ii) On January 1, 2018 (the date of initial application of IFRS 9), the Group’s management assessed which business models applied to the financial assets held by the Group and classified its financial instruments into the appropriate IFRS 9 categories. The main effects resulting from this reclassification were as follows: Measurement Category Carrying Amount Original New Original New (IAS 39) (IFRS 9) (IAS 39) (IFRS 9) Difference Current assets Cash and cash equivalents: Cash and bank accounts Ps. 1,761,260 Ps. 1,761,260 Ps. — Short-term investments FVIL FVIL 37,021,338 37,021,338 — Other financial assets (classified as non-current financial assets) FVIL FVOCIL 5,942,500 5,942,500 — Current maturities of non-current financial assets Amortized cost Amortized cost 23,529 23,529 — Trade notes and accounts receivable: Trade notes and accounts receivable Amortized cost Amortized cost 24,727,073 24,727,073 — Derivative financial instruments: TVI’s options FVIL FVIL 100,700 100,700 — Empresas Cablevisión' options FVIL FVIL 110,137 110,137 — Options FVIL FVIL 795,010 795,010 — Forward FVIL FVIL 397,037 397,037 — Non-current assets Derivative financial instruments: TVI’s interest rate swaps Hedge accounting Hedge accounting 84,109 84,109 — Interest rate swaps Hedge accounting Hedge accounting 664,724 664,724 — Forward Hedge accounting Hedge accounting 112,157 112,157 — Investments in financial instruments: Warrants issued by UHI FVOCIL FVOCIL 36,395,183 36,395,183 — Open-Ended Fund FVOCIL FVOCIL 7,297,577 7,297,577 — Financial assets held to maturity Amortized cost Amortized cost 287,605 287,605 — Other 16,487 16,487 — Current liabilities Debt, lease liabilities and other notes payable: Current portion of long-term debt Amortized cost Amortized cost 2,103,870 2,103,870 — Non-current liabilities Debt, lease liabilities and other notes payable: Long-term debt Amortized cost Amortized cost 121,993,128 121,993,128 — (b) IFRS 15 IFRS 15 provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. This IFRS Standard contains principles that an entity applies to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity recognizes revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. In connection with the initial adoption of IFRS 15 in the first quarter of 2018, the Company’s management: (i) reviewed significant revenue streams and identified certain effects on the Group’s revenue recognition in the Cable and Sky segments; (ii) used the retrospective cumulative effect, which consists in recognizing any cumulative adjustment resulting from the new standard at the date of initial adoption in consolidated equity; and (iii) did not restate the comparative information for the years ended December 31, 2017 and 2016, which was reported under the financial reporting standards in effect in those periods. Based on the Group’s existing customer contracts and relationships, the implementation of the new standard did not have a material impact on the Group’s consolidated financial statements upon adoption. The more significant effects to the Group’s revenue recognition are described as follows: (i) Cable Beginning on January 1, 2018, in accordance with the new standard, incremental costs of obtaining contracts with customers, primarily commissions, are recognized as assets in the Group’s consolidated statement of financial position and amortized in the expected life of contracts with customers. In the telecommunications business of this segment, as required by the new standard, the Company’s management reviewed the terms and conditions of the most significant contracts on an individual basis, and concluded that the effects of applying IFRS 15 were not significant at the adoption date. Sky Beginning on January 1, 2018, in accordance with the new standard, incremental costs of obtaining contracts with customers, primarily commissions, are recognized as assets in the Group´s consolidated statement of financial position and amortized in the expected life of contracts with customers. Content The Group recognizes customer deposits and advance agreements for advertising services in the consolidated statement of financial position when these agreements are executed either with a consideration in cash paid by customers or with short-term non-interest bearing notes received from customers in connection with annual (“upfront basis”) and from time to time (“scatter basis”) prepayments. In connection with the initial adoption of IFRS 15, customer deposits and advances agreements are presented by the Group as a contract liability in the consolidated statement of financial position when a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional, before the Group transfers advertising services to the customer. Under the guidelines of IFRS 15, a contract liability is a Group’s obligation to transfer services or goods to a customer for which the Group has received consideration, or an amount of consideration is due, from the customer. The Company’s management has consistently recognized that an amount of consideration is due, for legal, finance and accounting purposes, when a short-term non- interest bearing note is received from a customer in connection with a deposit or advance agreement entered into with the customer for advertising services to be rendered by the Group in the short term. Accordingly, there was no effect in the recognition of a contract liability for deposits and advances agreements with customers in the Group’s consolidated statement of financial position at the adoption date of IFRS 15. The Group has recognized assets from incremental costs of obtaining a contract with customers, primarily commissions, which are classified as current and non-current other assets in its consolidated financial statements as of January 1 and December 31, 2020 and 2019, as follows: Cable Sky Total Contract costs: At January 1, 2020 Ps. 1,436,758 Ps. 2,254,479 Ps. 3,691,237 Additions 1,163,038 1,335,300 2,498,338 Amortization (572,105) (1,075,913) (1,648,018) Total Contract Costs at December 31, 2020 2,027,691 2,513,866 4,541,557 Less: Current Contract Costs 640,656 957,792 1,598,447 Total Non-current Contract Costs Ps. 1,387,035 Ps. 1,556,074 Ps. 2,943,110 Cable Sky Total Contract costs: At January 1, 2019 Ps. 1,133,727 Ps. 2,236,932 Ps. 3,370,659 Additions 753,473 1,017,006 1,770,479 Amortization (450,442) (999,459) (1,449,901) Total Contract Costs at December 31, 2019 1,436,758 2,254,479 3,691,237 Less: Current Contract Costs 477,167 902,233 1,379,400 Total Non-current Contract Costs Ps. 959,591 Ps. 1,352,246 Ps. 2,311,837 In connection with the assets from incremental costs of obtaining a contract with customers referred to above and the initial adoption of IFRS 15, the Group recognized cumulative adjustments that increased consolidated retained earnings as of January 1, 2018, as follows: Retained Earnings Income Taxes Net Controlling interest Ps. 2,272,350 Ps. (672,898) Ps. 1,599,452 Non-controlling interests 1,112,854 (327,651) 785,203 Effect on equity at January 1, 2018 Ps. 3,385,204 Ps. (1,000,549) Ps. 2,384,655 (c) IFRS 16 IFRS 16 Leases was issued in January 2016, replaced IAS 17, and became effective on January 1, 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the former IFRS Standard: lessors continue to classify leases as finance or operating leases. Beginning in the first quarter of 2019, the Group adopted the guidelines of IFRS 16 by using the retrospective cumulative effect, which consists of recognizing any cumulative adjustment due to the new IFRS Standard at the date of initial adoption in consolidated assets and liabilities. Accordingly, as a lessee, the Group recognized lease liabilities as of January 1, 2019, for leases classified as operating leases through December 31, 2018, and measured these lease liabilities at the present value of the remaining lease payments, discounted using the incremental borrowing rate as of January 1, 2019. The carrying amounts of leases classified as a finance leases through December 31, 2018, became the initial carrying amounts of right-of-use assets and lease liabilities under the guidelines of IFRS 16 beginning on January 1, 2019. The initial impact of recording lease liabilities, and the corresponding right-of-use assets in accordance with the guidelines of IFRS 16, increased the Group’s consolidated total assets and liabilities as of January 1, 2019, as described below. Also, as a result of the adoption of IFRS 16, the Group recognizes a depreciation of rights-of-use assets for long-term lease agreements, and a finance expense for interest from related lease liabilities, instead of affecting consolidated operating costs and expenses for lease payments made, as they were recognized through December 31, 2018, under the guidelines of the former IFRS Standard. The Company’s management has concluded the analysis and assessment of any changes to be made in the Group’s accounting policies for long-term lease agreements as a lessee, including the implementation of controls over financial reporting in the different business segments of the Group, in connection with the measurement and disclosures required by IFRS 16. As a result of the adoption of IFRS 16, the Group recognized as right-of-use assets and lease liabilities in its consolidated statements of financial position as of December 31, 2020, December 31 and January 1, 2019, long-term lease agreements that were recognized as operating leases through December 31, 2018, as follows: December 31, 2020 December 31, 2019 January 1, 2019 Long-term Lease Agreements Assets (Liabilities) Assets (Liabilities) Assets (Liabilities) Right-of-use assets, net Ps. 4,392,420 Ps. 4,502,590 Ps. 4,797,312 Lease liabilities (1) (4,745,292) (4,641,705) (4,797,312) Net effect Ps. (352,872) Ps. (139,115) Ps. — (1) Current portion of lease liabilities as of December 31 , 2020, December 31 and January 1, 2019, amounted to Ps.524,458, Ps.533,260 and Ps.462,513, respectively. Depreciation of right-of-use assets referred to in the table above and charged to income for the year ended December 31, 2020 and 2019, amounted to Ps.670,749 and Ps.651,675, respectively. The Group also classified as right-of-use assets and lease liabilities in its consolidated statements of financial position as of December 31, 2020, December 31 and January 1, 2019, property and equipment and obligations under long-term lease agreements that were recognized as finance leases through December 31, 2018, as follows: December 31, 2020 December 31, 2019 January 1, 2019 Long-term Lease Agreements Assets (Liabilities) Assets (Liabilities) Assets (Liabilities) Right-of-use assets, net Ps. 2,819,745 Ps. 3,050,462 Ps. 3,402,869 Lease liabilities (1) (4,547,059) (4,721,815) (5,317,944) Net effect Ps. (1,727,314) Ps. (1,671,353) Ps. (1,915,075) (1) Current portion of lease liabilities as of December 31, 2020, December 31 and January 1, 2019, amounted to Ps. 753,296, Ps.754,506 and Ps.651,800 , respectively. Depreciation of right-of-use assets referred to in the table above and charged to income for the years ended December 31, 2020 and 2019, amounted to Ps.426,025 and Ps.418,675, respectively. In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: · Applying a single discount rate to a portfolio of leases with reasonably similar characteristics · Relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as at January 1, 2019 · Accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases · Excluding initial direct cost for the measurement of the right-of-use asset at the date of initial application, and · Using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. |
COVID-19 Impact
COVID-19 Impact | 12 Months Ended |
Dec. 31, 2020 | |
COVID-19 Impact | |
COVID-19 Impact | 29. Impact of COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of Coronavirus (“COVID-19”) as a pandemic. Most governments in the world have been implementing different restrictive measures to contain the spread of this pandemic. This situation is significantly affecting the global economy, including Mexico, due to the disruption or slowdown of supply chains and the increase in economic uncertainty, as evidenced by the increase in volatility of asset prices, exchange rates and decreases in long-term interest rates. During 2020, the Company's management made an assessment of potential adverse impacts of COVID-19 in its business segments, primarily in connection with impairment indicators and testing of significant long-lived assets, expected credit losses for accounts receivable, recovery of deferred income tax assets and workforce considerations. The Company's management will continue to assess the potential adverse impacts of COVID-19, including the monitoring of impairment indicators and testing, forecasts and budgets, fair values and/or estimated future cash flows related to the recoverability of significant financial and non-financial assets of its business segments. As of the authorization date of these consolidated financial statements, the Company’s management cannot predict the adverse impact of COVID-19 in the Group’s consolidated financial statements for the year ending December 31, 2021. The Company´s management cannot guarantee that conditions in the bank lending, capital and other financial markets will not continue to deteriorate as a result of the pandemic, or that its access to capital and other sources of funding will not become constrained, which could adversely affect the availability and terms of future borrowings, renewals or refinancings. In addition, the deterioration of global economic conditions as a result of the pandemic may ultimately reduce the demand for the Group´s products across its segments, as its clients and customers reduce or defer their spending. The Mexican Government is still implementing the plan to reactivate economic activities in accordance with color-based phases determined on a weekly basis in every state of the country. Most non-essential economic activities are open with some limitations, mainly with reduced capacity and hours of operation. However, a significant part of the population is still implementing social distancing and shelter-in-place policies. As a result, during the quarter ended December 31, 2020, this has affected, and is still affecting the ability of the Group´s employees, suppliers and customers to conduct their functions and businesses in their typical manner. As of this date given that they are considered essential economic activities, the Group has continued operating its media and telecommunications businesses uninterrupted to continue benefiting the country with connectivity, entertainment and information, and during the quarter ended December 31, 2020, the Group continued producing of new content following the requirements and health guidelines imposed by the Mexican Government. During the quarter ended December 31, 2020, the Group´s Content segment recovered in relation to the previous quarters during the pandemic as a result of the easing of lockdown restrictions in some jurisdictions in which its customers are located. Notwithstanding the foregoing, we are partially dependent on the demand for advertising from consumer-focused companies, and the COVID-19 pandemic has caused, and could further cause, advertisers to reduce or postpone their advertisement spending on its platforms. In the Group´s Other Businesses segment, sporting and other entertainment events for which it has broadcast rights, or which it organizes, promotes and/or is located in venues it owns, has started to operate again with some limitations and taking the corresponding sanitary measures, and to date most of its casinos have resumed operations with reduced capacity and hours of operation. When local authorities approve the re-opening of these venues that are still not operating, rules may be enacted including limitations on capacity and operating hours; these may affect the results of its Other Businesses segment in the following months. Notwithstanding the foregoing, the authorities may impose restrictions on non-essential activities, including but not limited to temporary shutdowns or additional guidelines which could be expensive or burdensome to implement, which may affect the Group´s operations. The magnitude of the impact on the Group's businesses will depend on the duration and extent of the COVID-19 pandemic and the impact of federal, state, local and foreign governmental actions, including continued or future social distancing, and consumer behavior in response to the COVID-19 pandemic and such governmental actions. Due to the evolving and uncertain nature of this situation, the Company´s management is not able to estimate the full extent of the impact of the COVID-19 pandemic, but it may continue affecting the Group´s businesses, financial position and results of operations over the near, medium or long-term . |
Events after the Reporting Peri
Events after the Reporting Period | 12 Months Ended |
Dec. 31, 2020 | |
Events after the Reporting Period | |
Events after the Reporting Period | 30. Events after the Reporting Period Transaction announced on April 13, 2021 On April 13, 2021, the Group and UHI announced a definitive transaction agreement in which the Group’s content and media assets will be combined with UHI to create the largest Spanish-language media company in the world. The Group will continue to participate in UHI’s growth potential by remaining the largest shareholder in UHI, with an equity stake of approximately 45% following the transaction . The Group will also retain ownership of its Cable, Sky and Other Businesses segments, as well as the main real estate associated with the production facilities, the broadcasting concessions and transmission infrastructure in Mexico. The Group will contribute the assets specified in the Transaction Agreement including, subject to certain exceptions , its Content business included in its Content business segment to UHI for U.S.$4.5 billion, in a combination of cash (U.S.$3.0 billion) and (U.S.$1.5 billion) of common and preferred shares of UHI. In connection with the transaction, UHI will receive all assets, IP and library related to the News division of the Group’s Content business, but will outsource production of news content for Mexico to a company owned by the Azcárraga family. The Boards of Directors of the Company and UHI have approved the combination. The transaction is expected to close in 2021, subject to customary closing conditions, including receipt of regulatory approvals in the United States, Mexico, and Colombia, among others, and approval of the Company’s shareholders. As a result of the transaction, the Group expects that its cash and cash equivalents will increase by U.S.$3,000 million, and its investment in common and preferred shares of UHI will increase by U.S.$1,500 million, when the transaction is completed. The Group expects to recognize a net gain on disposition of discontinued operations in its consolidated statement of income in connection with the disposition of its Content business segment and the related assets specified in the Transaction Agreement, Additionally, after the transaction is completed, the Group expects increases in its consolidated share of income in associates derived from a larger ownership in UHI and in consolidated finance income derived from the returns from its investments in preferred shares issued by UHI to the Group in the transaction. These expected effects will be partially offset in the Group’s consolidated statement of income by a reduction in its consolidated operating income resulting primarily from the disposal of its Content business segment. The Group will continue to consolidate the results of its Content business segment until the Group ceases to have control of this business segment, in accordance with the terms of the Transaction Agreement. Company´s stockholder approvals On April 28, 2021, the Company’s stockholders approved, among other resolutions, (i) the audited consolidated financial statements of the Company as of December 31, 2020, and for the year ended on that date; (ii) the payment of a dividend of Ps.0.35 per CPO and Ps.0.002991452991 per share of Series “A,” “B,” ”D,” and “L” Shares, not in the form of a CPO, which will be paid in May 2021; and (iii) the cancellation in May 2021 of 5,173.2 million shares of the Company’s capital stock in the form of 44.2 million CPOs, which were repurchased by the Company in 2019 and 2020. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation The consolidated financial statements of the Group as of December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018, are presented in accordance with International Financial Reporting Standards (“IFRS Standards”), as issued by the International Accounting Standards Board (“IASB”). IFRS Standards comprise: (i) IFRS Standards; (ii) International Accounting Standards (“IAS Standards”); (iii) IFRS Interpretations Committee (“IFRIC”) Interpretations; and (iv) Standing Interpretations Committee (“SIC”) Interpretations. The consolidated financial statements have been prepared on a historical cost basis, except for the measurement at fair value of derivative financial instruments, financial assets, investments in equity financial instruments, plan assets of post-employment benefits and share-based payments, as described in the notes to the financial statements below. The preparation of consolidated financial statements in conformity with IFRS Standards, requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. Changes in assumptions may have a significant impact on the consolidated financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgment or complexity, or areas where estimates and assumptions are significant to the Group’s financial statements are disclosed in Note 5 to these consolidated financial statements. These consolidated financial statements were authorized for issuance on March 31, 2021, and were also authorized for issuance on April 30, 2021 including the events disclosed in Note 30, by the Group’s Corporate Vice President of Finance. |
Consolidation | (b) Consolidation The financial statements of the Group are prepared on a consolidated basis and include the assets, liabilities and results of operations of all companies in which the Company has a controlling interest (subsidiaries). All intercompany balances and transactions have been eliminated from the consolidated financial statements. Subsidiaries Subsidiaries are all entities over which the Company has control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether or not the Company controls another entity. The subsidiaries are consolidated from the date on which control is obtained by the Company and cease to consolidate from the date on which said control is lost. The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in income or loss. Changes in Ownership Interests in Subsidiaries without Change of Control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the interest acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity. Loss of Control of a Subsidiary When the Company ceases to have control of a subsidiary, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognized in income or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This means that amounts previously recognized in other comprehensive income are reclassified to income or loss except for certain equity financial instruments designated irrevocably with changes in other comprehensive income or loss. At December 31, 2020 and 2019, the main direct and indirect subsidiaries of the Company were as follows: Company’s Ownership Business Subsidiaries Interest (1) Segment (2) Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, “Empresas Cablevisión”) (3) 51.2 % Cable Subsidiaries engaged in the Cablemás business (collectively, “Cablemás”) (4) 100 % Cable Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, “TVI”) (5) 100 % Cable Cablestar, S.A. de C.V. and subsidiaries (collectively, “Bestel”) (6) 66.2 % Cable Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, “Cablecom”) (7) 100 % Cable Subsidiaries engaged in the Telecable business (collectively, “Telecable”) (8) 100 % Cable FTTH de México, S.A. de C.V. (9) 100 % Cable Corporativo Vasco de Quiroga, S.A. de C.V. (“CVQ”) and subsidiaries (10) 100 % Cable and Sky Innova, S. de R.L. de C.V. (“Innova”) and subsidiaries (collectively, “Sky”) (11) 58.7 % Sky Grupo Telesistema, S.A. de C.V. ("Grupo Telesistema") and subsidiaries 100 % Content and Other Businesses Televisa, S.A. de C.V. (“Televisa”) (12) 100 % Content Televisión Independiente de México, S.A. de C.V. ("TIM") (12) 100 % Content G.Televisa-D, S.A. de C.V. (12) 100 % Content Multimedia Telecom, S.A. de C.V. (“Multimedia Telecom”) and subsidiary (13) 100 % Content Ulvik, S.A. de C.V. (14) 100 % Content and Other Businesses Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries 100 % Other Businesses Editorial Televisa, S.A. de C.V. and subsidiaries 100 % Other Businesses Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries 100 % Other Businesses Villacezán, S.A. de C.V. (“Villacezán”) and subsidiaries (15) 100 % Other Businesses Sistema Radiópolis, S.A. de C.V. ("Radiópolis") and subsidiaries (16) — Disposed operations (1) Percentage of equity interest directly or indirectly held by the Company. (2) See Note 26 for a description of each of the Group’s business segments. (3) Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ. (4) Some Cablemás subsidiaries are directly owned by CVQ and some other Cablemás subsidiaries are indirectly owned by CVQ. (5) Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ. (6) Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V. (7) Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ. (8) The Telecable subsidiaries are directly owned by CVQ. (9) FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ. (10) CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom, Telecable and Innova. (11) Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. (“Sky DTH”), and a direct majority-owned subsidiary of Innova Holdings, S. de R.L. de C.V. (“Innova Holdings”). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova’s equity and designates a majority of the members of Innova’s Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in the Group and Sky. These veto rights are protective in nature and do not affect decisions about relevant business activities of Innova. (12) Televisa, TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema. (13) Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. (“Tieren”), are indirect wholly-owned subsidiaries of Grupo Telesistema, through which the Company owns shares of the capital stock of UHI and maintained through December 29, 2020, an investment in warrants that were exercised for shares of common stock of UHI on that date. As of December 31, 2020 and 2019, Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group’s aggregate investment in shares of common stock and/or share warrants issued by UHI (see Notes 9, 10 and 20). (14) Direct subsidiary through which we conduct certain operations of our Content segment and certain operations of our Other Businesses segments. (15) Villacezán is an indirect subsidiary of Grupo Telesistema. (16) In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a direct subsidiary of the Company through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of Radiópolis. The Radio business was part the of the Group’s Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its operating results, were classified as held for sale in the Group’s consolidated financial statements through June 30, 2020 (see Notes 3 and 26). The Group’s Cable, Sky and Content segments, require governmental concessions and special authorizations for the provision of broadcasting and telecommunications services in Mexico. Such concessions are granted by the Mexican Institute of Telecommunications (“Instituto Federal de Telecomunicaciones” or “IFT”) for a fixed term, subject to renewal in accordance with the Mexican Telecommunications and Broadcasting Law (“Ley Federal de Telecomunicaciones y Radiodifusión” or “LFTR”). Renewal of concessions for the Content segment (Broadcasting) require, among others: (i) to request such renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; (iii) a declaration by IFT that there is no public interest in recovering the spectrum granted under the related concession; and (iv) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT, including the payment of a related fee. IFT shall resolve within the year following the presentation of the request, if there is public interest in recovering the spectrum granted under the related concession, in which case it will notify its determination and proceed with the termination of the concession at the end of its fixed term. If IFT determines that there is no public interest in recovering the spectrum, it will grant the requested extension within 180 business days, provided that the concessionaire accepts, in advance, the new conditions set by IFT, which will include the payment of the fee referred to above. Such fee will be determined by IFT for the relevant concessions, considering the following elements: (i) the frequency band; (ii) the amount of spectrum; (iii) coverage of the frequency band; (iv) domestic and international benchmark regarding the market value of frequency bands; and (v) upon request of IFT, an opinion issued by the Ministry of Finance and Public Credit of IFT´s proposal for calculation of the fee. Renewal of concessions for the Sky and Cable segments require, among others: (i) to request its renewal to IFT prior to the last fifth period of the fixed term of the related concession; (ii) to be in compliance with the concession holder’s obligations under the LFTR, other applicable regulations, and the concession title; and (iii) the acceptance by the concession holder of any new conditions for renewing the concession as set forth by IFT. IFT shall resolve any request for renewal of the telecommunications concessions within 180 business days of its request. Failure to respond within such period of time shall be interpreted as if the request for renewal has been granted. The regulations of the broadcasting and the telecommunications concessions (including satellite pay TV) establish that at the end of the concession, the frequency bands or spectrum attached to the services provided in the concessions shall return to the Mexican government. In addition, at the end of the concession, the Mexican government will have the preferential right to acquire infrastructure, equipment and other goods directly used in the provision of the concession. If the Mexican government were to exercise its right to acquire infrastructure, equipment and other goods, it would be required to pay a price that is equivalent to a formula that is similar to fair value. To the knowledge of the Company’s management, no spectrum granted for broadcasting services in Mexico has been recovered by the Mexican government in at least the past three decades for public interest reasons. However, the Company’s management is unable to predict the outcome of any action by IFT in this regard. In addition, these assets, by themselves, would not be enough to immediately begin broadcasting or offering satellite pay TV services or telecommunications services, as no content producing assets or other equipment necessary to operate the business would be included. Also, the Group’s Gaming business, which is reported in the Other Businesses segment, requires a permit granted by the Mexican Federal Government for a fixed term, subject to renewal in accordance with Mexican law. Additionally, the Group’s Sky businesses in Central America and the Dominican Republic require concessions or permits granted by local regulatory authorities for a fixed term, subject to renewal in accordance with local laws. The accounting guidelines provided by IFRIC 12 Service Concession Arrangements, are not applicable to the Group due primarily to the following factors: (i) the Mexican government does not substantially control the Group’s infrastructure, what services are provided with the infrastructure and the price at which such services are offered; (ii) the Group’s broadcasting service does not constitute a public service as per the definition in IFRIC 12; and (iii) the Group is unable to divide its infrastructure among the public (telephony and possibly Internet services) and non-public (pay TV) service components. At December 31, 2020, the expiration dates of the Group’s concessions and permits were as follows: Segments Expiration Dates Cable Various from 2022 to 2048 Sky Various from 2021 to 2030 Content (broadcasting concessions) (1) In 2021 and the relevant renewals start in 2022 ending in 2042 Other Businesses: Gaming In 2030 (1) In November 2018, the IFT approved the renewal of the Group’s broadcasting concessions for all of its television stations in Mexico, for a term of 20 years after the existing expiration date in 2021. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized this payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13). The concessions or permits held by the Group are not subject to any significant pricing regulations in the ordinary course of business. |
Investments in Associates and Joint Ventures | (c) Investments in Associates and Joint Ventures Associates are those entities over which the Group has significant influence but not control or joint control, generally those entities with a shareholding of between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. Joint ventures are those joint arrangements where the Group exercises joint control with other stockholder or more stockholders without exercising control individually, and have rights to the net assets of the joint arrangements. Investments in associates and joint ventures are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognized at cost, and the carrying amount is increased or decreased to recognize the investor’s share of the net assets of the investee after the date of acquisition. The Group’s investments in associates include an equity interest in UHI represented by approximately 35.9% and 10% of the outstanding total shares of UHI as of December 31, 2020 and 2019, respectively (see Notes 9 and 10). If the Group’s share of losses of an associate or a joint venture equals or exceeds its interest in the investee, the Group discontinues recognizing its share of further losses. The interest in an associate or a joint venture is the carrying amount of the investment in the investee under the equity method together with any other long-term investment that, in substance, form part of the Group’s net investment in the investee. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. |
Segment Reporting | (d) Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s Co-Chief Executive Officers (“chief operating decision makers”) who are responsible for allocating resources and assessing performance for each of the Group’s operating segments. |
Foreign Currency Translation | (e) Foreign Currency Translation Functional and Presentation Currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The presentation and reporting currency of the Group’s consolidated financial statements is the Mexican peso, which is used for compliance with its legal and tax obligations. Transactions and Balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or measurement where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income as part of finance income or expense, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Changes in the fair value of monetary securities denominated in foreign currency classified as investments in financial instruments are analyzed between exchange differences resulting from changes in the amortized cost of the security and other changes in the carrying amount of the security. Translation differences related to changes in amortized cost are recognized in income or loss, and other changes in carrying amount are recognized in other comprehensive income or loss. Translation of Foreign Operations The financial statements of the Group’s foreign entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (a) assets and liabilities are translated at the closing rate at the date of the statement of financial position; (b) income and expenses are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); (c) stockholders' equity accounts are translated at the prevailing exchange rate at the time capital contributions were made and earnings were generated and (d) all resulting translation differences are recognized in other comprehensive income or loss. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Translation differences arising are recognized in other comprehensive income or loss. Assets and liabilities in foreign currencies of non-Mexican subsidiaries that use the Mexican Peso as a functional currency are initially converted to Mexican Pesos by utilizing the exchange rate of the statement of financial position date for monetary assets and liabilities, and historical exchange rates for non-monetary items, with the related adjustment included in the consolidated statement of income as finance income or expense. A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a hedge of a net investment in a foreign operation in connection with the Group’s investment in shares of common stock of UHI (hedged item), which amounted to U.S.$1,074.0 million (Ps.21,424,180) and U.S.$433.7 million (Ps.8,189,662) as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss as a cumulative result from foreign currency translation (see Note 10). A portion of the Group's outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item "Long-term debt, net of current portion" of the consolidated statement of financial position) was designated as a fair value hedge of foreign exchange exposure related to its investment in warrants that were exercisable for common stock of UHI (hedged item) through December 29, 2020, the date on which the Group exercised all of these warrants for common stock of UHI, which amounted to Ps.17,387,699 (U.S.$871.6 million) as of December 29, 2020 and Ps.33,775,451 (U.S.$1,788.6 million) as of December 31, 2019. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt was credited or charged directly to other comprehensive income or loss through December 29, 2020, along with the recognition in the same line item of any foreign currency gain or loss of this investment in warrants designated as a hedged item through that date (see Notes 9, 14 and 18). A portion of the Group’s outstanding principal amount of its U.S. dollar denominated long-term debt (hedging instrument, disclosed in the line item “Long-term debt, net of current portion” of the consolidated statement of financial position) has been designated as a fair value hedge of foreign exchange exposure related to its investment in Open-Ended Fund (hedged item), which amounted to Ps.1,135,803 (U.S.$56.9 million) and Ps.4,688,202 (U.S.$248.3 million), as of December 31, 2020 and 2019, respectively. Consequently, any foreign exchange gain or loss attributable to this designated hedging long-term debt is credited or charged directly to other comprehensive income or loss, along with the recognition in the same line item of any foreign currency gain or loss of this investment in Open-Ended Fund designated as a hedged item (see Notes 9, 14 and 18). Beginning on January 1, 2018, the Group adopted the hedge accounting requirements of IFRS 9 Financial Instruments (“IFRS 9”) for all of its hedging relationships. This IFRS Standard became effective on that date. |
Cash and Cash Equivalents | (f) Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three months or less at the date of acquisition. Cash is stated at nominal value and cash equivalents are measured at fair value, and the changes in the fair value are recognized in the statement of income. As of December 31, 2020 and 2019, cash equivalents primarily consisted of fixed short-term deposits and corporate fixed income securities denominated in U.S. dollars and Mexican pesos, with an average yield of approximately 0.38% for U.S. dollar deposits and 5.40% for Mexican peso deposits in 2020, and approximately 2.20% for U.S. dollar deposits and 8.09% for Mexican peso deposits in 2019. |
Transmission Rights and Programming | (g) Transmission Rights and Programming Programming is comprised of programs, literary works, production talent advances and films. Transmission rights and literary works are valued at the lesser of acquisition cost and net realizable value. Programs and films are valued at the lesser of production cost, which consists of direct production costs and production overhead, and net realizable value. Payments for production talent advances are initially capitalized and subsequently included as direct or indirect costs of program production. Transmission rights are recognized from the point of which the legally enforceable license period begins. Until the license term commences and the programming rights are available, payments made are recognized as prepayments. The Group’s policy is to capitalize the production costs of programs which benefit more than one annual period and amortize them over the expected period of future program revenues based on the Company’s historical revenue patterns and usage for similar productions. Transmission rights, programs, literary works, production talent advances and films are recorded at acquisition or production cost. Cost of sales is calculated and recorded for the month in which such transmission rights, programs, literary works, production talent advances and films are matched with related revenues. Transmission rights are recognized in income over the lives of the contracts. Transmission rights in perpetuity are amortized on a straight-line basis over the period of the expected benefit as determined by past experience, but not exceeding 25 years. |
Inventories | (h) Inventories Inventories of paper, magazines, materials and supplies for maintenance of technical equipment are recorded at the lower of cost or its net realization value. The net realization value is the estimated selling price in the normal course of business, less estimated costs to conduct the sale. Cost is determined using the average cost method. |
Financial Assets | (i) Financial Assets Beginning on January 1, 2018, the Group classifies its financial assets in accordance with IFRS 9 which became effective on that date. Under the guidelines of IFRS 9, the Group classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or loss (“FVOCIL”), or fair value through income or loss ("FVIL"), based on the Company’s business model for managing the financial assets and the contractual cash flows characteristics of the financial asset. Financial Assets Measured at Amortized Cost Financial assets are measured at amortized cost when the objective of holding such financial assets is to collect contractual cash flows, and the contractual terms of the financial asset give rise on specified dates to cash flows that are only payments of principal and interest on the principal amount outstanding. These financial assets are initially recognized at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest rate method, with changes in carrying value recognized in the consolidated statement of income in the line which most appropriately reflects the nature of the item or transaction. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period that are included in non-current assets. The Group’s financial assets measured at amortized costs are primarily presented as “trade notes and accounts receivable”, “other accounts and notes receivable”, and “due from related parties” in the consolidated statement of financial position (see Note 7). Financial Assets Measured at FVOCIL Financial assets are measured at FVOCIL when the objective of holding such financial assets is both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group’s investments in certain equity instruments have been designated to be measured at FVOCIL, as permitted by IFRS 9 (see Note 28). In connection with this designation, any amounts presented in consolidated other comprehensive income are not subsequently transferred to consolidated income. Dividends from these equity instruments are recognized in consolidated income when the right to receive payment of the dividend is established, and such dividend is probable to be paid to the Group. Financial Assets at FVIL Financial assets at FVIL are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current. Impairment of Financial Assets From January 1, 2018, the Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at fair value through other comprehensive income or loss. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables (see Note 7). Offsetting of Financial Instruments Financial assets are offset against financial liabilities and the net amount reported in the consolidated statement of financial position if, and only when the Group: (i) currently has a legally enforceable right to set off the recognized amounts; and (ii) intends either to settle on a net basis, or to realize the assets and settle the liability simultaneously. |
Property, Plant and Equipment | (j) Property, Plant and Equipment Property, plant and equipment are recorded at acquisition cost. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to income or loss during the financial period in which they are incurred. Land is not depreciated. Depreciation of property, plant and equipment is based upon the carrying value of the assets in use and is computed using the straight-line method over the estimated useful lives of the asset, as follows: Estimated Useful Lives Buildings 20-65 years Building improvements 5-20 years Technical equipment 3-30 years Satellite transponders 15 years Furniture and fixtures 3-10 years Transportation equipment 4-8 years Computer equipment 3-6 years Leasehold improvements 5-30 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income or expense in the consolidated statement of income. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. |
Right-of-use Assets | (k) Right-of-use Assets Right-of-use assets are measured at cost comprising the following: the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs and restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight – line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Payments associated with short-term leases of equipment and vehicles and mostly leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. |
Intangible Assets and Goodwill | (l) Intangible Assets and Goodwill Intangible assets and goodwill are recognized at acquisition cost. Intangible assets and goodwill acquired through business combinations are recorded at fair value at the date of acquisition. Intangible assets with indefinite useful lives, which include, trademarks, concessions, and goodwill, are not amortized, and subsequently recognized at cost less accumulated impairment losses. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives, as follows: Estimated Useful Lives Trademarks with finite useful lives 4 years Licenses 3-10 years Subscriber lists 4-5 years Payments for renewal of concessions 20 years Other intangible assets 3-20 years Trademarks The Group determines its acquired trademarks to have an indefinite life when they are expected to generate net cash inflows for the Group indefinitely. Additionally, the Group considers that there are no legal, regulatory or contractual provisions that limit the useful lives of trademarks. The Group has not capitalized any amounts associated with internally developed trademarks. Concessions The Group defined concessions to have an indefinite life due to the fact that the Group has a history of renewing its concessions upon expiration, has maintained the concessions granted by the Mexican government, and has no foreseeable limit to the period over which the assets are expected to generate net cash inflows. In addition, the Group is committed to continue to invest for the long term to extend the period over which the broadcasting and telecommunications concessions are expected to continue to provide economic benefits. Any fees paid by the Group to regulatory authorities for concessions renewed are determined to have finite useful lives and are amortized on a straight-live basis over the fixed term of the related concession. Goodwill Goodwill arises on the acquisition of a business and represents the excess of the consideration transferred over the Group’s interest in net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash generating units (“CGUs”), or groups of CGUs, that are expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher between the value in use and the fair value less costs to sell. Any impairment of goodwill is recognized as an expense in the consolidated statement of income and is not subject to be reversed in subsequent periods. |
Impairment of Long-lived Assets | (m) Impairment of Long-lived Assets The Group reviews for impairment the carrying amounts of its long-lived assets, tangible and intangible, including goodwill (see Note 13), at least once a year, or whenever events or changes in business circumstances indicate that these carrying amounts may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. To determine whether an impairment exists, the carrying value of the reporting unit is compared with its recoverable amount. Fair value estimates are based on quoted market values in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including discounted value of estimated future cash flows, market multiples or third-party appraisal valuations. Any impairment of long-lived assets other than goodwill may be subsequently reversed under certain circumstances. (n) |
Trade Accounts Payable and Accrued Expenses | Trade accounts payable and accrued expenses are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade accounts payable and accrued expenses are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade accounts payable and accrued expenses are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. Trade accounts payable and accrued expenses are presented as a single item of consolidated current liabilities in the consolidated statements of financial position as of December 31, 2020 and 2019. |
Debt | (o) Debt Debt is recognized initially at fair value, net of transaction costs incurred. Debt is subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated statement of income over the period on which the debt is outstanding using the effective interest method. Fees paid on the establishment of debt facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates. Current portion of long-term debt and interest payable are presented as a separate line item in the consolidated statements of financial position as of December 31, 2020 and 2019. Debt early redemption costs are recognized as finance expense in the consolidated statement of income. |
Customer Deposits and Advances | (p) Customer Deposits and Advances Customer deposits and advance agreements for advertising services provide that customers receive prices that are fixed for the contract period for advertising time in the Group’s platforms based on rates established by the Group. Such rates vary depending on when the advertisement is made, including the season, hour, day and type of programming. The Group recognizes customer deposits and advance agreements for advertising services in the consolidated statement of financial position when these agreements are executed either with a consideration in cash paid by customers or with short-term non-interest bearing notes received from customers in connection with annual (“upfront basis”) and from time to time (“scatter basis”) prepayments (see Note 7). In connection with the initial adoption of IFRS 15 Revenues from Contracts with Customers (“IFRS 15”) in the first quarter of 2018 (see Note 2 (s)), customer deposits and advances agreements are presented by the Group as a contract liability in the consolidated statement of financial position when a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional, before the Group transfers services to the customer. Under the guidelines of this standard, a contract liability is a Group’s obligation to transfer services or goods to a customer for which the Group has received consideration, or an amount of consideration is due, from the customer. In addition, the Group recognizes contract asset upon the approval of non-cancellable contracts that generate an unconditional right to receive cash consideration prior to services being rendered. The Company’s management has consistently recognized that an amount of consideration is due, for legal, finance and accounting purposes, when a short-term non-interest bearing note is received from a customer in connection with a deposit or advance agreement entered into with the customer for advertising services to be rendered by the Group in the short term. |
Provisions | (q) Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognized for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provisions due to passage of time is recognized as interest expense. |
Equity | (r) Equity The capital stock and other equity accounts include the effect of restatement through December 31, 1997, determined by applying the change in the Mexican National Consumer Price Index between the dates capital was contributed or net results were generated and December 31, 1997, the date through which the Mexican economy was considered hyperinflationary under the guidelines of IFRS Standards. The restatement represented the amount required to maintain the contributions and accumulated results in Mexican Pesos in purchasing power as of December 31, 1997. Where any company in the Group purchases shares of the Company’s capital stock (shares repurchased), the consideration paid, including any directly attributable incremental costs is deducted from equity attributable to stockholders of the Company until the shares are cancelled, reissued, or sold. Where such shares repurchased are subsequently reissued or sold, any consideration received, net of any directly attributable incremental transaction costs, is included in equity attributable to stockholders of the Company. |
Revenue Recognition | (s) Revenue Recognition In connection with the initial adoption of IFRS 15, in the first quarter of 2018, the Company’s management: (i) reviewed significant revenue streams and identified certain effects on revenue recognition in the Group’s Cable and Sky segments, as discussed below; (ii) used the retrospective cumulative effect, which consists in recognizing any cumulative adjustment resulting from the new standard at the date of initial adoption in consolidated equity; and (iii) did not restate the comparative information for prior years, which was reported under the revenue recognition IFRS Standard in effect in those periods (see Note 28). Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided. The Group recognizes revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the Group’s activities, as described below. The Group bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. The Group derives the majority of its revenues from media and entertainment-related business activities both in Mexico and internationally. Revenues are recognized when the service is provided and collection is probable. A summary of revenue recognition policies by significant activity is as follows: · Cable television, internet and telephone subscription, and pay-per-view and installation fees are recognized in the period in which the services are rendered. Beginning on January 1, 2018, in accordance with IFRS 15, incremental costs for obtaining contracts with customers, primarily commissions, are recognized as assets in the Group’s consolidated statement of financial position and amortized in the expected life of contracts with customers. · Revenues from other telecommunications and data services are recognized in the period in which these services are provided. Other telecommunications services include long distance and local telephony, as well as leasing and maintenance of telecommunications facilities. · Sky program service revenues, including advances from customers for future direct-to-home (“DTH”) program services, are recognized at the time the service is provided. Beginning on January 1, 2018, in accordance with IFRS 15, certain incremental costs for obtaining contracts with customers, primarily commissions, are recognized as assets in the Group’s consolidated statement of financial position and amortized in the expected life of contracts with customers. · Advertising revenues, including deposits and advances from customers for future advertising, are recognized at the time the advertising services are rendered. · Revenues from program services for network subscription and licensed and syndicated television programs are recognized when the programs are sold and become available for broadcast. · Revenues from magazine subscriptions are initially deferred and recognized proportionately as products are delivered to subscribers. Revenues from the sales of magazines are recognized on the date of circulation of delivered merchandise, net of a provision for estimated returns. · Revenues from publishing distribution are recognized upon distribution of the products. · Revenues from attendance to soccer games, including revenues from advance ticket sales for soccer games and other promotional events, are recognized on the date of the relevant event. · Motion picture production and distribution revenues are recognized as the films are exhibited. · Gaming revenues consist of the net win from gaming activities, which is the difference between amounts wagered and amounts paid to winning patrons and are recognized at the time of such net win. In respect to sales of multiple products or services, the Group evaluates whether it has fair value evidence for each deliverable in the transaction. For example, the Group sells cable television, internet and telephone subscription to subscribers in a bundled package at a rate lower than if the subscriber purchases each product on an individual basis. Subscription revenues received from such subscribers are allocated to each product in a pro-rata manner based on the fair value of each of the respective services. |
Interest Income | (t) Interest Income Interest income is recognized using the effective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is recognized using the original effective interest rate. |
Employee Benefits | (u) Employee Benefits Pension and Seniority Premium Obligations Plans exist for pensions and seniority premiums (post-employment benefits), for most of the Group’s employees funded through irrevocable trusts. Increases or decreases in the consolidated liability or asset for post-employment benefits are based upon actuarial calculations. Contributions to the trusts are determined in accordance with actuarial estimates of funding requirements. Payments of post-employment benefits are made by the trust administrators. The defined benefit obligation is calculated annually using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. Remeasurement of post-employment benefit obligations related to experience adjustments and changes in actuarial assumptions of post-employment benefits are recognized in the period in which they are incurred as part of other comprehensive income or loss in consolidated equity. Profit Sharing The employees’ profit sharing required to be paid under certain circumstances in Mexico, is recognized as a direct benefit to employees in the consolidated statements of income in the period in which it is incurred. Termination Benefits Termination benefits, which mainly represent severance payments by law, are recorded in the consolidated statement of income. The Group recognizes termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that involves the payment of termination benefits. |
Income Taxes | (v) Income Taxes The income tax expense for the period comprises current and deferred income tax. Income tax is recognized in the consolidated statement of income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the income tax is recognized in other comprehensive income. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial position date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction (other than in a business combination) that at the time of the transaction affects neither accounting nor taxable income or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply when the related deferred income tax asset is recovered or the deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences and tax loss carryforwards can be utilized. For this purpose, the Group takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, projected taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, and future reversals of existing temporary differences. Deferred income tax liabilities are provided on taxable temporary differences associated with investments in subsidiaries, joint ventures and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are provided on deductible temporary differences associated with investments in subsidiaries, joint ventures and associates, to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefit of the temporary difference and it is expected to reverse in the foreseeable future. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. |
Derivative Financial Instruments | (w) Derivative Financial Instruments The Group recognizes derivative financial instruments as either assets or liabilities in the consolidated statements of financial position and measures such instruments at fair value. The accounting for changes in the fair value of a derivative financial instrument depends on the intended use of the derivative financial instrument and the resulting designation. For a derivative financial instrument designated as a cash flow hedge, the effective portion of such derivative’s gain or loss is initially reported as a component of other comprehensive income or loss and subsequently reclassified into income when the hedged exposure affects income. The ineffective portion of the gain or loss is reported in income immediately. For a derivative financial instrument designated as a fair value hedge, the gain or loss is recognized in income in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. When a hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income remains in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately reclassified to income or loss. For derivative financial instruments that are not designated as accounting hedges, changes in fair value are recognized in income in the period of change. During the years ended December 31, 2020, 2019 and 2018, certain derivative financial instruments qualified for hedge accounting (see Note 15). |
Comprehensive Income | (x) Comprehensive Income Comprehensive income for the period includes the net income for the period presented in the consolidated statement of income plus other comprehensive income for the period reflected in the consolidated statement of comprehensive income. |
Share-based Payment Agreements | (y) Share-based Payment Agreements Key officers and employees of certain subsidiaries of the Company have entered into agreements for the conditional sale of Company’s shares under the Company’s Long-Term Retention Plan ("LTRP"). The share-based compensation expense is measured at fair value at the date the equity benefits are conditionally sold to these officers and employees, and is recognized as a charge to consolidated income (administrative expense) over the vesting period. The Group recognized a share-based compensation expense of Ps.984,356, Ps.1,129,644 and Ps.1,327,549 for the years ended December 31, 2020, 2019 and 2018, respectively, of which Ps.962,806, Ps.1,108,094 and Ps.1,305,999 was credited in consolidated stockholders’ equity for those years, respectively (see Note 17). |
Leases | (z) Leases Through December 31, 2018: · The determination of whether an arrangement was, or contained, a lease was based on the substance of the arrangement and required an assessment of whether the fulfillment of the arrangement was dependent on the use of a specific asset or assets and whether the arrangement conveyed the right to use the asset. · Leases of property, plant and equipment and other assets where the Group held substantially all the risks and rewards of ownership were classified as finance leases. Finance lease assets were capitalized at the commencement of the lease term at the lower of the present value of the minimum lease payments or the fair value of the lease asset. The obligations relating to finance leases, net of finance charges in respect of future periods, were recognized as liabilities. The interest element of the finance cost was charged to the consolidated statement of income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases was depreciated over the shorter of the useful life of the asset and the lease term. · Leases where a significant portion of the risks and rewards were held by the lessor were classified as operating leases. Rentals were charged to the consolidated statement of income on a straight line basis over the period of the lease. · Leasehold improvements were depreciated at the lesser of its useful life or contract term. In the first quarter of 2019, the Group adopted IFRS 16 Leases (“IFRS 16”), which became effective for annual periods beginning on January 1, 2019 (see Note 28). The Group does not apply this new IFRS Standard to short-term leases and leases for which the underlying asset is of low value, as permitted by the guidelines of IFRS 16. On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as operating leases under the principles of IAS 17 Leases ("IAS 17") . These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee´s incremental borrowing rate as of January 1, 2019. The average lessee's incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 4.7% and 10.6% for U.S. dollars leases and Mexican pesos leases, respectively. |
New and Amended IFRS Standards | (aa) New and Amended IFRS Standards The Group adopted IFRS 16 in 2019, which became effective on January 1, 2019 (see Notes 2 (k), 2 (z) and 28). The Group adopted IFRS 15 and IFRS 9 in 2018, which became effective on January 1, 2018 (see Notes 2 (i), 2 (t) and 28). Some other amendments and improvements to certain IFRS Standards became effective on January 1, 2020, 2019 and 2018, and they did not have any significant impact on the Group’s consolidated financial statements. Below is a list of the new and amended IFRS Standards that have been issued by the IASB and are effective for annual periods starting on or after June 1, 2021. Effective for Annual Periods Beginning New or Amended IFRS Standard Title of the IFRS Standard On or After Amendments to IFRS 10 and IAS 28 (1) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Postponed IFRS 17 (2) Insurance Contracts January 1, 2023 Amendments to IAS 1 (1) Classification of Liabilities as Current or Non-current January 1, 2023 Annual Improvements (1) Annual Improvements to IFRS Standards 2018-2020 January 1, 2022 Amendments to IAS 16 (1) Property, Plant and Equipment: Proceeds before Intended Use January 1, 2022 Amendments to IAS 37 (1) Onerous Contracts – Cost of Fulfilling a Contract January 1, 2022 Amendments to IFRS 3 (1) Reference to the Conceptual Framework January 1, 2022 Amendment to IFRS 16 (1) COVID-19-Related Rent Concessions June 1, 2020 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (2) Interest Rate Benchmark Reform – Phase 2 January 1, 2021 Amendments to IAS 8 Definition of Accounting Estimates January 1, 2023 Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies January 1, 2023 (1) This new or amended IFRS Standard is not expected to have a significant impact on the Group’s consolidated financial statements. (2) This new or amended IFRS Standard is not expected to be applicable to the Group’s consolidated financial statements. Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture , were issued in September 2014 and address and acknowledge inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involved a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involved assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015, the IASB postponed the effective date of these amendments indefinitely pending the outcome of its research project on the equity method of accounting. IFRS 17 Insurance Contracts (“IFRS 17”) was issued in May 2017 and amended in June 2020. IFRS 17 supersedes IFRS 4 Insurance Contracts (“IFRS 4”), which has given companies dispensation to carry on accounting for insurance contracts using national accounting standards, resulting in a multitude of different approaches. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosures of insurance contracts issued. It also requires similar principles to be applied to reinsurance contracts with discretionary participation features issued. IFRS 17 solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Under the provisions of IFRS 17, insurance obligations will be accounted for using current values instead of historical cost. Amendments to IFRS 17 were issued in June 2020 aimed at helping companies implement the Standard and making it easier for them to explain their financial performance. The fundamental principles introduced when IFRS 17 was issued in May 2017 remained unaffected. IFRS 17 is effective on January 1, 2023, and earlier application is permitted. Amendments to IAS 1 Classification of Liabilities as Current or Non-current were issued in January 2020, and clarify one of the criteria in IAS 1 for classifying a liability as non-current that is, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. An entity shall apply these amendments for annual reporting periods beginning on or after January 1, 2023 retrospectively in accordance with IAS 8. Earlier application is permitted. Annual Improvements to IFRS Standards 2018-2020, were issued in May 2020, and make minor amendments to certain IFRS Standards. The amendments are effective for annual periods beginning on or after January 1, 2022. Earlier application is permitted. The following table shows the IFRS Standards amended and the subject of the amendments. Standard Subject of Amendment IFRS 1 First-time Adoption of International Reporting Standards Subsidiary as a First-time Adopter IFRS 9 Financial Instruments Fees in the “10 per cent” Test for Derecognition of Financial Liabilities Illustrative Examples accompanying IFRS 16 Leases Lease Incentives IAS 41 Agriculture Taxation in Fair Value Measurements Amendments to IFRS 3 Reference to the Conceptual Framework , were issued in May 2020, and update a reference in IFRS 3 Business Combinations to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use , were issued in May 2020, and prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in income or loss. Amendments to IAS 37 Onerous Contracts – Cost of Fulfilling a Contract , were issued in May 2020, and specify which costs a company includes when assessing whether a contract will be loss-making, under the guidelines of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Amendment to IFRS 16 Covid-19-Related Rent Concessions was issued in May 2020, and exempts lessees from having to consider individual lease contracts to determine whether rent concessions (i.e. temporary rent reductions) occurring as a direct consequence of the Covid-19 pandemic are lease modifications, and allows lessees to account for such rent concessions as if they were not lease modifications. It applies to Covid-19-related rent concessions that reduce lease payments due on or before June 30, 2021. IFRS 16 specifies how lessees should account for changes in lease payments, including concessions. However, applying those requirements to a potentially large volume of Covid-19-related rent concessions could be practically difficult, especially in the light of the many challenges stakeholders face during the pandemic. This optional exemption gives timely relief to lessees and enables them to continue providing information about their leases that is useful to investors. The amendment does not affect lessors. The amendment is effective for annual reporting periods beginning on or after June 1, 2020. Earlier application is permitted, including in financial statements not authorized for issue. Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 , were issued in August 2020 as a complement to those amendments issued in September 2019 (Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform, which were focused on the accounting effects of uncertainty in the period leading up to the reform). The “interest rate benchmark reform” refers to the market-wide reform of an interest rate benchmark (such as an interbank offered rate or IBOR), including the replacement of an interest rate benchmark with an alternative benchmark rate. Phase 2 amendments focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform, The amendments in this final phase relate to: (i) changes to contractual cash flows – a company will not have to derecognize or adjust the carrying amount of financial instruments for changes required by the reform, but will instead update the effective interest rate to reflect the change to the alternative benchmark rate; (ii) hedge accounting – a company will not have to discontinue its hedge accounting solely because it makes changes required by the reform, if the hedge meets other hedge accounting criteria; and (iii) disclosures – a company will be required to disclose information about new risks arising from the reform and how it manages the transition to alternative benchmark rates. Amendments to IAS 8 Definition of Accounting Estimates, were issued in February 2021, the amendments introduced the definition of accounting estimates and included other amendments to IAS 8 to help entities distinguish changes in accounting estimates from changes in accounting policies. Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies, were issued in February 2021, the Board amended paragraphs 117–122 of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policy information rather than their significant accounting policies. To support this amendment the Board also amended IFRS Practice Statement 2 Making Materiality Judgements (Materiality Practice Statement) to explain and demonstrate the application of the ‘four-step materiality process’ to accounting policy disclosures. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
Schedule of interests in direct and indirect subsidiaries | At December 31, 2020 and 2019, the main direct and indirect subsidiaries of the Company were as follows: Company’s Ownership Business Subsidiaries Interest (1) Segment (2) Empresas Cablevisión, S.A.B. de C.V. and subsidiaries (collectively, “Empresas Cablevisión”) (3) 51.2 % Cable Subsidiaries engaged in the Cablemás business (collectively, “Cablemás”) (4) 100 % Cable Televisión Internacional, S.A. de C.V. and subsidiaries (collectively, “TVI”) (5) 100 % Cable Cablestar, S.A. de C.V. and subsidiaries (collectively, “Bestel”) (6) 66.2 % Cable Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, “Cablecom”) (7) 100 % Cable Subsidiaries engaged in the Telecable business (collectively, “Telecable”) (8) 100 % Cable FTTH de México, S.A. de C.V. (9) 100 % Cable Corporativo Vasco de Quiroga, S.A. de C.V. (“CVQ”) and subsidiaries (10) 100 % Cable and Sky Innova, S. de R.L. de C.V. (“Innova”) and subsidiaries (collectively, “Sky”) (11) 58.7 % Sky Grupo Telesistema, S.A. de C.V. ("Grupo Telesistema") and subsidiaries 100 % Content and Other Businesses Televisa, S.A. de C.V. (“Televisa”) (12) 100 % Content Televisión Independiente de México, S.A. de C.V. ("TIM") (12) 100 % Content G.Televisa-D, S.A. de C.V. (12) 100 % Content Multimedia Telecom, S.A. de C.V. (“Multimedia Telecom”) and subsidiary (13) 100 % Content Ulvik, S.A. de C.V. (14) 100 % Content and Other Businesses Controladora de Juegos y Sorteos de México, S.A. de C.V. and subsidiaries 100 % Other Businesses Editorial Televisa, S.A. de C.V. and subsidiaries 100 % Other Businesses Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries 100 % Other Businesses Villacezán, S.A. de C.V. (“Villacezán”) and subsidiaries (15) 100 % Other Businesses Sistema Radiópolis, S.A. de C.V. ("Radiópolis") and subsidiaries (16) — Disposed operations (1) Percentage of equity interest directly or indirectly held by the Company. (2) See Note 26 for a description of each of the Group’s business segments. (3) Empresas Cablevisión, S.A.B. de C.V., is a direct majority-owned subsidiary of CVQ. (4) Some Cablemás subsidiaries are directly owned by CVQ and some other Cablemás subsidiaries are indirectly owned by CVQ. (5) Televisión Internacional, S.A. de C.V., is a direct subsidiary of CVQ. (6) Cablestar, S.A. de C.V., is an indirect majority-owned subsidiary of CVQ and Empresas Cablevisión, S.A.B. de C.V. (7) Arretis, S.A.P.I. de C.V., is a direct subsidiary of CVQ. (8) The Telecable subsidiaries are directly owned by CVQ. (9) FTTH de México, S. A. de C.V., is an indirect subsidiary of CVQ. (10) CVQ is a direct subsidiary of the Company and the parent company of Empresas Cablevisión, Cablemás, TVI, Bestel, Cablecom, Telecable and Innova. (11) Innova is an indirect majority-owned subsidiary of the Company, CVQ and Sky DTH, S.A. de C.V. (“Sky DTH”), and a direct majority-owned subsidiary of Innova Holdings, S. de R.L. de C.V. (“Innova Holdings”). Sky is a satellite television provider in Mexico, Central America and the Dominican Republic. Although the Company holds a majority of Innova’s equity and designates a majority of the members of Innova’s Board of Directors, the non-controlling interest has certain governance and veto rights in Innova, including the right to block certain transactions between the companies in the Group and Sky. These veto rights are protective in nature and do not affect decisions about relevant business activities of Innova. (12) Televisa, TIM and G.Televisa-D, S.A. de C.V., are direct subsidiaries of Grupo Telesistema. (13) Multimedia Telecom and its direct subsidiary, Comunicaciones Tieren, S.A. de C.V. (“Tieren”), are indirect wholly-owned subsidiaries of Grupo Telesistema, through which the Company owns shares of the capital stock of UHI and maintained through December 29, 2020, an investment in warrants that were exercised for shares of common stock of UHI on that date. As of December 31, 2020 and 2019, Multimedia Telecom and Tieren have investments representing 95.3% and 4.7%, respectively, of the Group’s aggregate investment in shares of common stock and/or share warrants issued by UHI (see Notes 9, 10 and 20). (14) Direct subsidiary through which we conduct certain operations of our Content segment and certain operations of our Other Businesses segments. (15) Villacezán is an indirect subsidiary of Grupo Telesistema. (16) In July 2020, the Company concluded the sale of its 50% equity interest in Radiópolis. Through June 2020, Radiópolis was a direct subsidiary of the Company through which the Group conducted the operations of its former Radio business. The Company controlled Radiópolis as it had the right to appoint the majority of the members of the Board of Directors of Radiópolis. The Radio business was part the of the Group’s Other Businesses segment through the third quarter of 2019. Beginning in the fourth quarter of 2019, the assets and related liabilities of the Radio Business, as well as its operating results, were classified as held for sale in the Group’s consolidated financial statements through June 30, 2020 (see Notes 3 and 26). |
Schedule of expiration dates of the Group's concessions and permits | Segments Expiration Dates Cable Various from 2022 to 2048 Sky Various from 2021 to 2030 Content (broadcasting concessions) (1) In 2021 and the relevant renewals start in 2022 ending in 2042 Other Businesses: Gaming In 2030 (1) In November 2018, the IFT approved the renewal of the Group’s broadcasting concessions for all of its television stations in Mexico, for a term of 20 years after the existing expiration date in 2021. In November 2018, the Group paid for such renewal an aggregate amount of Ps.5,754,543 in cash, which included a payment of Ps.1,194 for administrative expenses and recognized this payment as an intangible asset in its consolidated statement of financial position. This amount will be amortized in a period of 20 years beginning on January 1, 2022, by using the straight-line method (see Note 13). |
Schedule of property, plant and equipment, estimated useful lives | Estimated Useful Lives Buildings 20-65 years Building improvements 5-20 years Technical equipment 3-30 years Satellite transponders 15 years Furniture and fixtures 3-10 years Transportation equipment 4-8 years Computer equipment 3-6 years Leasehold improvements 5-30 years |
Schedule of intangible assets, estimated useful lives | Estimated Useful Lives Trademarks with finite useful lives 4 years Licenses 3-10 years Subscriber lists 4-5 years Payments for renewal of concessions 20 years Other intangible assets 3-20 years |
Schedule of new or amended standards issued by IASB | Effective for Annual Periods Beginning New or Amended IFRS Standard Title of the IFRS Standard On or After Amendments to IFRS 10 and IAS 28 (1) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Postponed IFRS 17 (2) Insurance Contracts January 1, 2023 Amendments to IAS 1 (1) Classification of Liabilities as Current or Non-current January 1, 2023 Annual Improvements (1) Annual Improvements to IFRS Standards 2018-2020 January 1, 2022 Amendments to IAS 16 (1) Property, Plant and Equipment: Proceeds before Intended Use January 1, 2022 Amendments to IAS 37 (1) Onerous Contracts – Cost of Fulfilling a Contract January 1, 2022 Amendments to IFRS 3 (1) Reference to the Conceptual Framework January 1, 2022 Amendment to IFRS 16 (1) COVID-19-Related Rent Concessions June 1, 2020 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (2) Interest Rate Benchmark Reform – Phase 2 January 1, 2021 Amendments to IAS 8 Definition of Accounting Estimates January 1, 2023 Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies January 1, 2023 (1) This new or amended IFRS Standard is not expected to have a significant impact on the Group’s consolidated financial statements. (2) This new or amended IFRS Standard is not expected to be applicable to the Group’s consolidated financial statements. Standard Subject of Amendment IFRS 1 First-time Adoption of International Reporting Standards Subsidiary as a First-time Adopter IFRS 9 Financial Instruments Fees in the “10 per cent” Test for Derecognition of Financial Liabilities Illustrative Examples accompanying IFRS 16 Leases Lease Incentives IAS 41 Agriculture Taxation in Fair Value Measurements |
Acquisitions, Investments, Di_2
Acquisitions, Investments, Dispositions and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Axtel | |
Detailed information about business combination | |
Schedule of business combination | December 17, 2018 Cash and cash equivalents Ps. 1,000 Trade notes and accounts receivables 169,036 Other accounts receivable primarily value-added tax 875,331 Total current assets 1,045,367 Property and equipment 2,130,108 Intangible assets and goodwill 2,582,713 Total assets 5,758,188 Other current liabilities 291,316 Total liabilities 291,316 Total net assets Ps. 5,466,872 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Risk Management | |
Schedule of foreign currency position of monetary items | The foreign currency position of monetary items of the Group at December 31, 2020, was as follows: Foreign Currency Amounts Year-End (Thousands) Exchange Rate Mexican Pesos Assets: U.S. dollars 1,154,453 Ps. 19.9493 Ps. 23,030,529 Euros 19,260 24.3774 469,509 Swiss francs 438 22.5299 9,868 Argentinean pesos 66,482 15,763 Chilean pesos 327,357 9,166 Other currencies — — 7,713 Liabilities: U.S. dollars (1) 5,161,009 Ps. 19.9493 Ps. 102,958,517 Euros 1,151 24.3774 28,058 Swiss francs 659 22.5299 14,847 Chilean pesos 632,679 17,715 Colombian pesos 8,246,548 47,005 Other currencies — — 3,332 The foreign currency position of monetary items of the Group at December 31, 2019, was as follows: Foreign Currency Amounts Year-End (Thousands) Exchange Rate Mexican Pesos Assets: U.S. dollars 1,258,623 Ps. 18.8838 Ps. 23,767,585 Euros 51,398 21.1995 1,089,612 Swiss francs 3,071 19.5345 59,990 Colombian pesos 2,744,483 0.0058 15,918 Argentinean pesos 28,269 0.3154 8,916 Chilean pesos 110,984 0.0254 2,819 Other currencies — — 5,832 Liabilities: U.S. dollars (1) 5,257,954 Ps. 18.8838 Ps. 99,290,152 Swiss francs 4,069 19.5345 79,486 Euros 912 21.1995 19,334 Chilean pesos 689,094 0.0254 17,503 Colombian pesos 4,195,172 0.0058 24,332 Other currencies — — 3,075 (1) As of December 31, 2020 and 2019, monetary liabilities include U.S.$1,130.9 million (Ps.22,559,983) and U.S.$2,470.6 million (Ps.46,653,315), respectively, related to long-term debt designated as a hedging instrument of the Group’s investments in UHI and the investment in Open-Ended Fund (see Note 14). |
Schedule of foreign currency of monetary items with net position | The Group is subject to the risk of foreign currency exchange rate fluctuations, resulting primarily from the net monetary position in U.S. dollars and U.S. dollar equivalent amounts of the Group’s Mexican operations, as follows (in millions of U.S. dollars): December 31, 2020 2019 U.S. dollar-denominated and U.S. dollar-equivalent monetary assets, primarily cash and cash equivalents, and non-current investments in financial instruments (1) U.S.$ 1,125.1 U.S.$ 1,253.3 U.S. dollar-denominated and U.S. dollar-equivalent monetary liabilities, primarily trade accounts payable, Senior debt securities, lease liabilities, and other liabilities (2) (3) (5,115.9) (5,231.8) Net liability position U.S.$ (3,990.8) U.S.$ (3,978.5) (1) As of December 31, 2020 and 2019, this line includes U.S. dollar equivalent amounts of U.S.$24.5 million and U.S.$57.6 million, respectively, related to other foreign currencies, primarily Euros. (2) As of December 31, 2020 and 2019, this line includes U.S. dollar equivalent amounts of U.S.$2.0 million and U.S.$5.0 million, respectively, related to other foreign currencies, primarily Euros. (3) As of December 31, 2020 and 2019, monetary liabilities include U.S.$1,130.9 million (Ps.22,559,983) and U.S.$2,470.6 million (Ps.46,653,315), respectively, related to long-term debt designated as a hedging instrument of the Group’s investments in UHI and the investment in Open-Ended Fund (see Note 14). |
Schedule of hypothetical changes in fair value or losses in earnings | Difference between Fair Value and Carrying Value Assuming a Difference between Hypothetical Fair Value and 10% Increase in December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value Assets: Long-term loan and interest receivable from GTAC Ps. 821,253 Ps. 824,092 Ps. 2,839 Ps. 85,248 Open-Ended Fund 1,135,803 1,135,803 — — Other equity instruments 5,397,504 5,397,504 — — Liabilities (2) (3) : U.S. dollar-denominated debt: Senior Notes due 2025 11,969,580 14,609,830 2,640,250 4,101,233 Senior Notes due 2026 5,984,790 6,840,854 856,064 1,540,149 Senior Notes due 2032 5,984,790 9,193,415 3,208,625 4,127,967 Senior Notes due 2040 11,969,580 16,780,992 4,811,412 6,489,511 Senior Notes due 2045 19,949,300 24,282,886 4,333,586 6,761,875 Senior Notes due 2046 17,954,370 24,970,938 7,016,568 9,513,662 Senior Notes due 2049 14,961,975 18,978,667 4,016,692 5,914,559 Peso-denominated debt: Notes due 2027 4,500,000 5,035,860 535,860 1,039,446 Senior Notes due 2037 4,500,000 4,087,575 (412,425) (3,668) Senior Notes due 2043 6,500,000 5,150,860 (1,349,140) (834,054) Long-term notes payable to Mexican banks 19,602,893 19,801,142 198,249 2,178,363 Lease liabilities 9,292,351 9,343,100 50,749 985,059 Derivative financial instruments (1) 3,476,223 3,476,223 — — Difference between Fair Value and Carrying Value Assuming a Difference between Hypothetical Fair Value and 10% Increase in December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Assets: Warrants issued by UHI Ps. 33,775,451 Ps. 33,775,451 Ps. — Ps. — Long-term loan and interest receivable from GTAC 872,317 875,585 3,268 90,827 Open-Ended Fund 4,688,202 4,688,202 — — Other equity instruments 5,751,001 5,751,001 — — Derivative financial instruments (1) 4,592 4,592 — — Liabilities (2) (3) : U.S. dollar-denominated debt: Senior Notes due 2025 11,330,280 13,243,624 1,913,344 3,237,706 Senior Notes due 2026 5,665,140 6,079,885 414,745 1,022,734 Senior Notes due 2032 5,665,140 7,571,346 1,906,206 2,663,341 Senior Notes due 2040 11,330,280 14,139,283 2,809,003 4,222,931 Senior Notes due 2045 18,883,800 19,739,047 855,247 2,829,152 Senior Notes due 2046 16,995,420 20,565,308 3,569,888 5,626,419 Senior Notes due 2049 14,162,850 15,364,426 1,201,576 2,738,019 Peso-denominated debt: Notes due 2027 4,500,000 4,656,375 156,375 622,013 Senior Notes due 2037 4,500,000 4,133,385 (366,615) 46,724 Senior Notes due 2043 6,500,000 4,853,485 (1,646,515) (1,161,167) Long-term notes payable to Mexican banks 22,845,382 23,012,707 167,325 2,468,596 Lease liabilities 9,363,520 9,120,903 (242,617) 669,473 Other notes payable 1,324,063 1,295,780 (28,283) 101,295 Derivative financial instruments (1) 915,290 915,290 — — (1) Given the nature and the tenor of these derivative financial instruments, an increase of 10% in the interest and/or exchange rates would not be an accurate sensitivity analysis on the fair value of these financial instruments. (2) The carrying value of debt is stated in this table at its principal amount. (3) The fair value of the Senior Notes and Notes due by the Group are within Level 1 of the fair value hierarchy as there is a quoted market price for them. The fair value of the lease liabilities are within Level 2 of the fair value hierarchy and has been estimated based on cash flows discounted using an estimated weighted average cost of capital. The fair value of held-to-maturity securities are within Level 1 of the fair value hierarchy, and were based on market interest rates to the listed securities. |
Schedule of contractual undiscounted cash flows | Less Than 12 Months 12-36 Months 36-60 Months Maturities January 1, 2021 to January 1, 2022 to January 1, 2024 to Subsequent to At December 31, 2020 December 31, 2021 December 31, 2023 December 31, 2025 December 31, 2025 Total Debt (1) Ps. 617,489 Ps. 8,985,404 Ps. 21,969,580 Ps. 92,304,805 Ps. 123,877,278 Lease liabilities 1,277,754 2,184,098 2,240,777 3,589,722 9,292,351 Trade and other liabilities 33,936,100 4,078,823 644,830 3,137,092 41,796,845 Interest on debt (2) 5,997,185 15,177,002 13,256,713 90,128,177 124,559,077 Interest on lease liabilities 668,461 1,169,317 853,741 925,566 3,617,085 Less Than 12 Months 12-36 Months 36-60 Months Maturities January 1, 2020 to January 1, 2021 to January 1, 2023 to Subsequent to At December 31, 2019 December 31, 2020 December 31, 2022 December 31, 2024 December 31, 2024 Total Debt (1) Ps. 492,489 Ps. 8,852,893 Ps. 13,500,000 Ps. 99,532,910 Ps. 122,378,292 Lease liabilities 1,257,766 2,491,539 2,381,812 3,232,403 9,363,520 Other notes payable 1,324,063 — — — 1,324,063 Trade and other liabilities 31,588,449 3,426,610 1,035,998 2,488,379 38,539,436 Interest on debt (2) 6,565,402 16,351,837 14,404,394 91,956,556 129,278,189 Interest on lease liabilities 731,591 1,417,722 984,003 755,862 3,889,178 Interest on other notes payable 5,938 — — — 5,938 (1) The amounts of debt are disclosed on a principal amount basis (see Note 14). (2) Interest to be paid in future years on outstanding debt as of December 31, 2020 and 2019, based on contractual interest rate and exchange rates as of that date. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents | |
Schedule of cash and cash equivalents | 2020 2019 Cash and bank accounts Ps. 5,094,610 Ps. 1,758,262 Short-term investments (1) 23,963,483 25,694,003 Total cash and cash equivalents Ps. 29,058,093 Ps. 27,452,265 (1) Highly-liquid investments with an original maturity of three months or less at the date of acquisition. |
Trade Notes and Accounts Rece_2
Trade Notes and Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade Notes and Accounts Receivable, Net | |
Schedule of trade notes and accounts receivables, net | 2020 2019 Non-interest bearing notes received from customers as deposits and advances mainly in connection with annual (“upfront basis”) and from time to time (“scatter basis”) prepayments (see Note 2 (p)) Ps. 3,327,579 Ps. 4,188,293 Trade accounts receivable 13,265,351 15,144,534 Loss allowance (4,249,133) (4,846,643) Ps. 12,343,797 Ps. 14,486,184 |
Schedule of aging analysis of current trade receivables past due | 2020 2019 1 to 90 days Ps. 3,634,710 Ps. 4,180,830 91 to 180 days 1,386,243 1,182,634 More than 180 days 4,044,530 4,706,908 |
Schedule of carrying amount of trade notes and accounts receivable in foreign currencies | 2020 2019 U.S. dollar Ps. 2,905,396 Ps. 3,610,639 Other currencies 75,369 45,114 At December 31 Ps. 2,980,765 Ps. 3,655,753 |
Schedule of loss allowance of trade notes and account receivables | 2020 2019 At January 1 Ps. (4,846,643) Ps. (4,379,316) Impairment provision (1,352,432) (1,549,801) Write-off of receivables 1,949,942 996,185 Reclassification to current assets held for sale — 86,289 At December 31 Ps. (4,249,133) Ps. (4,846,643) |
Transmission Rights and Progr_2
Transmission Rights and Programming (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transmission Rights and Programming. | |
Schedule of transmission rights and programming | 2020 2019 Transmission rights Ps. 9,695,030 Ps. 8,671,434 Programming 4,683,980 5,709,414 14,379,010 14,380,848 Non-current portion of: Transmission rights 5,257,926 4,630,513 Programming 2,724,870 3,271,077 7,982,796 7,901,590 Current portion of transmission rights and programming Ps. 6,396,214 Ps. 6,479,258 |
Investments in Financial Inst_2
Investments in Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Financial Instruments | |
Schedule of investments in financial instruments | 2020 2019 Equity instruments measured at FVOCIL: Warrants issued by UHI (1) Ps. — Ps. 33,775,451 Open-Ended Fund (2) 1,135,803 4,688,202 Other equity instruments (3) 5,397,504 5,751,001 6,533,307 44,214,654 Other 469,405 51,245 Ps. 7,002,712 Ps. 44,265,899 (1) Investment in warrants issued by UHI and exercisable for UHI’s common stock. The Group exercised these warrants for common stock of UHI on December 29, 2020, at an exercise price of U.S.$0.01 per warrant. The warrants did not entitle the holder to any voting rights or other rights as a stockholder of UHI. The warrants did not bear interest. As of December 29, 2020 and December 31, 2019, the Group owned 4,590,953 warrant shares, which upon their exercise and together with its investment in shares of UHI, represented 35.9% on a fully-diluted, as-converted basis of the equity capital in UHI. As of December 31, 2020, and resulting from the exercise of the warrants, the Group owns a total of 35.9% of the equity of UHI, on a fully-diluted, as-converted basis. In January 2017, in a Declaratory Ruling, the U.S. Federal Communications Commission (“FCC”) approved an increase in the authorized aggregate foreign ownership of UHI’s issued and outstanding shares of common stock from 25% to 49% and authorized the Group to hold up to 40% of the voting interest and 49% of the equity interest of UHI. In conjunction with the acquisition of the majority stock of UHI by a group of investors, which was announced on February 25, 2020, the Company’s management assessed the implicit value of UHI’s shares in comparison to the fair value of its warrants and concluded that such implicit value did not constitute evidence of a condition that existed as of December 31, 2019, and reviewed the assumptions and inputs related to its discounted cash flow model used to determine the fair value of its investment in warrants as of December 31, 2019, concluding that the fair value of the warrants at such date was appropriate. During the first quarter of 2020, as a result of revised cashflow forecasts and increasing uncertainty due to the COVID-19 pandemic, the Company’s management recognized: (i) a decline in the estimated fair value of the Group’s investment in warrants of UHI in the amount of Ps.21,937,152, which was accounted for in other comprehensive income or loss, net of income tax of Ps.6,581,146, for the year ended December 31, 2020; and (ii) an impairment loss that decreased the carrying value of the Group’s investment in shares of UHI in the amount of Ps.5,455,356, which was accounted for in share of income or loss of associates and joint ventures in the consolidated statement of income for the year ended December 31, 2020 (see Notes 2 (i), 10 and 15). (2) The Group has an investment in an Open-Ended Fund that has as a primary objective to achieve capital appreciation by using a broad range of strategies through investments in securities, including without limitation stock, debt and other financial instruments, a principal portion of which are considered as Level 1 financial instruments, in telecom, media and other sectors across global markets, including Latin America and other emerging markets. Shares may be redeemed on a quarterly basis at the Net Asset Value (“NAV”) per share as of such redemption date. The fair value of this fund is determined by using the NAV per share. The NAV per share is calculated by determining the value of the fund assets, all of which are measured at fair value, and subtracting all of the fund liabilities and dividing the result by the total number of issued shares. In July and November 2019, the Company redeemed a portion of its investment in Open-Ended Fund at the aggregate fair value amount of U.S.$121.6 million (Ps.2,301,682) and recognized cash proceeds from this redemption for such aggregate amount. In September and December 2020, the Company redeemed a portion of its investment in Open-Ended Fund at the aggregate fair value amount of U.S.$153.7 million (Ps.3,155,643) and recognized cash proceeds from this redemption for such aggregate amount (see Note 2 (i)). (3) Other equity instruments include publicly traded instruments, and their fair value is determined by using quoted market prices at the measurement date (see Note 2 (i)). |
Reconciliation of investments in financial assets at FVOCIL | Warrants Open-Ended Other Equity Issued by UHI Fund Instruments Total At January 1, 2020 Ps. 33,775,451 Ps. 4,688,202 Ps. 5,751,001 Ps. 44,214,654 Disposition of investments — (3,159,970) — (3,159,970) Change in fair value in other comprehensive income (1) (16,387,752) (392,429) (353,497) (17,133,678) Warrants exercised for common stock of UHI (17,387,699) — — (17,387,699) At December 31, 2020 Ps. — Ps. 1,135,803 Ps. 5,397,504 Ps. 6,533,307 Warrants Open-Ended Other Equity Other Financial Issued by UHI Fund Instruments Assets Total At January 1, 2019 Ps. 34,921,530 Ps. 7,662,726 Ps. 6,545,625 Ps. 72,612 Ps. 49,202,493 Disposition of investments — (2,331,785) — (72,723) (2,404,508) Change in fair value in other comprehensive income (1) (1,146,079) (642,739) (794,624) 111 (2,583,331) At December 31, 2019 Ps. 33,775,451 Ps. 4,688,202 Ps. 5,751,001 Ps. — Ps. 44,214,654 (1) The foreign exchange gain in 2020 derived from the hedged warrants issued by UHI and the investment in Open-Ended Fund was hedged by foreign exchange loss in the consolidated statement of income for the year ended December 31, 2020, in the amount of Ps.5,511,412 and Ps.471,097, respectively. The foreign exchange loss in 2019 derived from the hedged warrants issued by UHI and the investment in Open-Ended Fund was hedged by foreign exchange gain in the consolidated statement of income for the year ended December 31, 2019 in the amount of Ps.1,403,384 and Ps.289,298, respectively (see Notes 14 and 23). |
Investments in Associates and_2
Investments in Associates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Associates And Joint Ventures [Line Items] | |
Schedule of investments in associates and joint ventures accounted for by the equity method | Ownership as of December 31, 2020 2020 2019 Associates: UHI (1) 35.9 % Ps. 21,424,180 Ps. 8,189,662 OCEN and subsidiaries (2) 40.0 % 556,251 693,970 Other 113,905 115,161 Joint ventures: Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries (“GTAC”) (3) 33.3 % 514,731 567,165 Periódico Digital Sendero, S.A.P.I. de C.V. and subsidiary (collectively, “PDS”) (4) 50.0 % 204,464 196,474 Ps. 22,813,531 Ps. 9,762,432 (1) The Group accounts for its investment in common stock of UHI, the parent company of Univision, under the equity method due to the Group’s ability to exercise significant influence, as defined under IFRS Standards, over UHI’s operations. Beginning on December 29, 2020, the Group had the ability to exercise significant influence over the operating and financial policies of UHI because (i) it owns 5,701,335 Class "A" shares of common stock of UHI, representing 35.9% on a fully-diluted of the outstanding shares of UHI and 40.6% of the voting shares of UHI as of December 31, 2020, as a result of exercising all of its outstanding warrants for common stock of UHI on that date; and (ii) it has three officers of the Company designated as members of the Board of Directors of UHI, which is composed of nine directors. Before December 29, 2020, the Group had the ability to exercise significant influence over the operating and financial policies of UHI because (i) it owned 1,110,382 Class “C” shares of common stock of UHI, representing 10% of the outstanding total shares of UHI and 14% of the voting shares of UHI, and 4,590,953 warrants issued by UHI, which upon their exercise and together with the current investment in shares of UHI, represented approximately 36% on a fully-diluted, as-converted basis of the equity capital in UHI, subject to certain conditions, laws and regulations; and (ii) it had three officers and one director of the Company designated as members of the Board of Directors of UHI, which was composed of 19 directors of 22 available Board seats. The Group is also a party to a Program Licensing Agreement (“PLA”), as amended, with Univision, pursuant to which Univision has the right to broadcast certain Televisa content in the United States, and to another program license agreement pursuant to which the Group has the right to broadcast certain Univision’s content in Mexico, in each case through 7.5 years after the Group has voluntarily sold two-thirds of its initial investment made in UHI in December 2010. On February 25, 2020, UHI, Searchlight Capital Partners, LP ("Searchlight"), a global private investment firm, and ForgeLight LLC ("ForgeLight"), an operating and investment company focused on the media and consumer technology sectors, announced a definitive agreement in which Searchlight and ForgeLight would acquire a majority ownership interest in UHI from all stockholders of UHI other than the Group. Terms of the transaction were not disclosed. The Group elected to retain its approximately 36% stake in UHI's equity upon exercise of its warrants on a fully-diluted, as-converted basis. Under the terms of the acquisition, Searchlight and ForgeLight would purchase the remaining 64% ownership interest from the other stockholders of UHI. The transaction, which was subject to customary closing conditions including receipt of regulatory approvals, closed on December 29, 2020. In conjunction with this transaction and a related decline in the estimated fair value of the Group's investment in warrants issued by UHI, the Company's management recognized an impairment loss in the amount of Ps.5,455,356 that decreased the carrying value of the Group's investment in shares of UHI in the first quarter of 2020. This impairment adjustment was accounted for in share of income or loss of associates and joint ventures in the Group's consolidated statement of income for the year ended December 31, 2020 (see Notes 1, 2 (a), 9, 15, 20 and 23). (2) OCEN is a majority-owned subsidiary of CIE, and is engaged in the live entertainment business in Mexico, Central America and Colombia. In July 2019, the Group announced the sale of its 40% equity interest in OCEN to Live Nation Entertainment, Inc., and classified this non-current investment as current assets held for sale. As a result, the Group discontinued the use of the equity method to account for the investment in this associate beginning on August 1, 2019. In 2019, the stockholders of OCEN approved the payment of dividends in the aggregate amount of Ps.1,931,000, of which Ps.772,400 were paid to the Group, as well as a capital reduction in the amount of Ps.200,466, of which Ps.80,186 were paid to the Group. In 2020 and 2018, the stockholders of OCEN did not pay any dividends. Beginning on May 31, 2020, the Company (i) ceased to classify the assets of OISE Entretenimiento, including the investment in OCEN, as current assets held for sale; (ii) began to classify its equity interest in OCEN as an investment in associates and joint ventures in its consolidated statement of financial position; (iii) recognized its share of income of OCEN, which was discontinued from August 1, through December 31, 2019, in consolidated retained earnings as of January 1, 2020 in the amount of Ps.147,975; (iv) began to recognize its share of income or loss of OCEN for the year ended December 31, 2020; and (v) restated for comparison purposes its previously reported consolidated statement of financial position as of December 31, 2019, which included its investment in OCEN as current assets held for sale, to conform with the current classification of this asset as investments in associates and joint ventures. As of December 31, 2020 and 2019, the investment in OCEN included goodwill of Ps.359,613 (see Notes 3 and 20). (3) GTAC was granted a 20‑year contract for the lease of a pair of dark fiber wires held by the Mexican Federal Electricity Commission and a concession to operate a public telecommunications network in Mexico with an expiration date in 2030. GTAC is a joint venture in which a subsidiary of the Company, a subsidiary of Grupo de Telecomunicaciones Mexicanas, S.A. de C.V. and a subsidiary of Megacable, S.A. de C.V. have an equal equity participation of 33.3%. In June 2010, a subsidiary of the Company entered into a long-term credit facility agreement to provide financing to GTAC for up to Ps.688,217 , with an annual interest rate of the Mexican Interbank Interest Rate (“Tasa de Interés Interbancaria de Equilibrio” or “TIIE”) plus 200 basis points. Under the terms of this agreement, principal and interest are payable at dates agreed by the parties, between 2013 and 2021. As of December 31, 2020 and 2019, GTAC had used a principal amount of Ps.688,183, under this credit facility. During the year ended December 31, 2020, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.123,390 . During the year ended December 31, 2019, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.114,574. Also, a subsidiary of the Company entered into supplementary long-term loans to provide additional financing to GTAC for an aggregate principal amount of Ps.946,128, with an annual interest of TIIE plus 200 basis points computed on a monthly basis and payable on an annual basis or at dates agreed by the parties. Under the terms of these supplementary loans, principal amounts can be prepaid at dates agreed by the parties before their maturities between 2023 and 2030. During the years ended December 31, 2020 and 2019, GTAC paid principal and interest to the Group in connection with this credit facility in the aggregate principal amount of Ps.122,656 and Ps.86,321, respectively. The net investment in GTAC as of December 31, 2020 and 2019, included amounts receivable in connection with this long-term credit facility and supplementary loans to GTAC in the aggregate amount of Ps.821,253 and Ps.872,317, respectively. These amounts receivable are in substance a part of the Group’s net investment in this investee (see Note 15). (4) The Group accounts for its investment in PDS under the equity method, due to its 50% interest in this joint venture. In September 2017, PDS acquired substantially all of the equity interest in Now New Media, S.A.P.I. de C.V., an online news website in Mexico City, in the aggregate amount of Ps.81,749. As of December 31, 2020 and 2019, the Group’s investment in PDS included intangible assets and goodwill in the aggregate amount of Ps.113,837 (see Note 3). |
Schedule of roll forward of investments in associates and joint ventures | 2020 2019 At January 1 Ps. 9,762,432 Ps. 10,546,728 Impairment loss in investment in shares of UHI (5,455,356) — Share of (loss) or income of associates and joint ventures, net (284,312) 581,023 Dividends from OCEN — (772,400) Long-term loans granted to GTAC, net 132,926 172,223 Foreign currency translation adjustments 1,360,735 (337,742) GTAC payments of principal and interest (246,046) (200,895) Capital stock reduction in OCEN — (80,186) Exercise of warrants for UHI shares 17,387,699 — Additional share of income of OCEN (see Note 3) 147,975 — Other 7,478 (146,319) At December 31 Ps. 22,813,531 Ps. 9,762,432 |
Summarized financial information of UHI to the carrying amount of the Groups interest in UHI | The table below reconciles the summarized financial information of UHI to the carrying amount of the Group´s interest in UHI as of December 31, 2020 and 2019 (amounts in thousands of U.S. dollars): 2020 2019 Ownership as of December 31 35.9 % 10 % Group's share of net assets U.S.$ 135,307 U.S.$ 44,568 Group's share of net assets Ps. 2,699,282 Ps. 841,619 Goodwill 18,687,080 7,426,968 Adjustments for differences in accounting policies 37,818 (78,925) Carrying amount of the Group´s interest in UHI Ps. 21,424,180 Ps. 8,189,662 IFRS summarized financial information of UHI for the years ended December 31, 2020, 2019 and 2018 (amounts in thousands of U.S. dollars): 2020 2019 2018 Revenue U.S.$ 2,541,900 U.S.$ 2,687,900 U.S.$ 2,713,800 Profit from continuing operations 36,400 290,200 161,000 Post-tax loss from discontinued operations — (13,200) (148,900) Net income 36,400 277,000 12,100 Other comprehensive (loss) income (23,700) (99,000) 15,410 Total comprehensive income 12,700 178,000 27,510 Dividends received from UHI U.S.$ — U.S.$ — U.S.$ — |
Summarized financial information of UHI to the carrying amount of the Groups interest in UHI | The table below reconciles the summarized financial information of UHI to the carrying amount of the Group´s interest in UHI for the years ended December 31, 2020, 2019 and 2018 (amounts in thousands of U.S. dollars): 2020 2019 2018 Net income (10%) U.S.$ 3,635 U.S.$ 27,668 U.S.$ 1,208 Other comprehensive (loss) income (10%) (2,367) (9,889) 1,538 Net income (10%) Ps. 78,133 Ps. 532,896 Ps. 23,258 Other comprehensive (loss) income (10%) (50,872) (190,457) 29,620 Adjustments for differences in accounting policies: Net (loss) income (79,163) (55,058) 166,044 Other comprehensive loss (6,657) (45,263) (76,521) Group's interest in UHI: Net (loss) income (1,030) 477,838 189,302 Other comprehensive loss (57,529) (235,720) (46,901) Impairment loss in investment in shares of UHI Ps. (5,455,356) Ps. — Ps. — |
Schedule of share of comprehensive (loss) income of associates and joint ventures | 2020 2019 2018 Share of (loss) income of associates and joint ventures, net Ps. (283,282) Ps. 103,185 Ps. 343,631 Share of other comprehensive (loss) income of associates and joint ventures: Foreign currency translation adjustments, net 1,757 (2,556) 2,987 Other items of comprehensive loss, net (5,261) 2,117 (3,399) (3,504) (439) (412) Share of comprehensive (loss) income of associates and joint ventures Ps. (286,786) Ps. 102,746 Ps. 343,219 |
Investments accounted for using equity method | |
Disclosure of Associates And Joint Ventures [Line Items] | |
Schedule of combined condensed balance sheet information related to the Group's share in associates and joint ventures | 2020 2019 Current assets Ps. 151,151 Ps. 155,628 Non-current assets 541,861 599,856 Total assets 693,012 755,484 Current liabilities 45,320 43,556 Non-current liabilities 860,357 924,759 Total liabilities 905,677 968,315 Net assets Ps. (212,665) Ps. (212,831) Goodwill 113,837 113,837 Adjustments for differences in accounting policies (3,230) (9,684) Long-term loans granted to GTAC, net 821,253 872,317 Carrying amount of the Group´s interest in joint ventures Ps. 719,195 Ps. 763,639 |
UHI | |
Disclosure of Associates And Joint Ventures [Line Items] | |
Schedule of combined condensed balance sheet information related to the Group's share in associates and joint ventures | IFRS summarized financial information of UHI as of December 31, 2020 and 2019 (amounts in thousands of U.S. dollars): 2020 2019 Current assets U.S.$ 1,470,301 U.S.$ 1,199,800 Non-current assets 8,249,358 8,521,477 Total assets 9,719,659 9,721,277 Current liabilities 712,300 554,700 Non-current liabilities 8,630,459 8,720,377 Total liabilities 9,342,759 9,275,077 Total net assets U.S.$ 376,900 U.S.$ 446,200 |
Associated other than UHI | |
Disclosure of Associates And Joint Ventures [Line Items] | |
Schedule of combined condensed balance sheet information related to the Group's share in associates and joint ventures | 2020 2019 Current assets Ps. 923,784 Ps. 1,454,771 Non-current assets 967,584 920,140 Total assets 1,891,368 2,374,911 Current liabilities 1,229,246 1,439,238 Non-current liabilities 315,260 426,043 Total liabilities 1,544,506 1,865,281 Net assets Ps. 346,862 Ps. 509,630 Goodwill 359,613 359,613 Adjustments for differences in accounting policies (36,319) (60,112) Carrying amount of the Group´s interest in associates Ps. 670,156 Ps. 809,131 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net | |
Schedule of analysis of changes in property, plant and equipment | Construction Buildings Technical Satellite Furniture Transportation Computer Leasehold and Projects and Land Equipment Transponders and Fixtures Equipment Equipment Improvements in Progress (1) Total Cost: January 1, 2019 Ps. 14,635,604 Ps. 133,171,187 Ps. 10,301,713 Ps. 1,203,942 Ps. 3,085,762 Ps. 8,848,455 Ps. 3,215,239 Ps. 11,683,180 Ps. 186,145,082 Additions 25,132 11,152,691 — 55,434 74,684 199,749 37,213 7,563,381 19,108,284 Dismantling cost — 797,176 — — — — — — 797,176 Retirements and reclassifications to other accounts (266,687) (2,332,091) — (163,756) (199,494) (965,029) (36,943) (1,967,705) (5,931,705) Transfers to right-of-use asset — (1,896,682) (4,275,619) — — — — — (6,172,301) Transfers to intangibles assets — — — — — — — (1,487,056) (1,487,056) Transfers and reclassifications 94,791 1,188,429 — 64,380 39,724 470,161 220,219 (2,077,704) — Effect of translation 20,366 (114,068) — (1,255) (354) (5,071) (1,354) 272 (101,464) December 31, 2019 14,509,206 141,966,642 6,026,094 1,158,745 3,000,322 8,548,265 3,434,374 13,714,368 192,358,016 Additions 6,252 12,384,030 — 24,562 75,219 253,783 19,283 7,368,609 20,131,738 Dismantling cost — 71,241 — — — — — — 71,241 Retirements and reclassifications to other accounts (53,559) (547,789) — (2,426) (45,726) (72,113) (627) (2,575,544) (3,297,784) Transfers to intangibles assets — (2,725) — — — — — (1,042,340) (1,045,065) Transfers and reclassifications 415,289 3,381,566 — 82,855 92,370 467,754 152,591 (4,592,425) — Effect of translation 9,724 9,223 — 64 47 693 15 1,002 20,768 December 31, 2020 Ps. 14,886,912 Ps. 157,262,188 Ps. 6,026,094 Ps. 1,263,800 Ps. 3,122,232 Ps. 9,198,382 Ps. 3,605,636 Ps. 12,873,670 Ps. 208,238,914 Depreciation: January 1, 2019 Ps. (4,939,196) Ps. (78,108,278) Ps. (5,187,749) Ps. (648,264) Ps. (1,650,668) Ps. (6,192,249) Ps. (2,076,148) Ps. — Ps. (98,802,552) Depreciation of the year (239,066) (15,272,635) (282,414) (114,382) (309,376) (956,985) (262,942) — (17,437,800) Retirements 102,538 2,955,945 — 157,477 153,235 941,061 27,925 — 4,338,181 Transfers to right-of-use assets — 987,924 1,781,508 — — — — — 2,769,432 Reclassifications — 27,103 — — 1,481 (28,584) — — — Effect of translation 3,648 92,902 — 1,210 324 4,534 — December 31, 2019 (5,072,076) (89,317,039) (3,688,655) (603,959) (1,805,004) (6,232,223) (2,309,828) — (109,028,784) Depreciation of the year (268,684) (15,545,278) (282,414) (116,651) (267,356) (945,389) (263,731) — (17,689,503) Retirements 37,704 1,622,089 — 2,208 41,131 71,752 35 — 1,774,919 Reclassifications (1) — — — — — — — — — Effect of translation (4,703) (8,642) — (69) (37) (452) (16) — (13,919) December 31, 2020 Ps. (5,307,759) Ps. (103,248,870) Ps. (3,971,069) Ps. (718,471) Ps. (2,031,266) Ps. (7,106,312) Ps. (2,573,540) Ps. — Ps. (124,957,287) Carrying value: At January 1, 2019 Ps. 9,696,408 Ps. 55,062,909 Ps. 5,113,964 Ps. 555,678 Ps. 1,435,094 Ps. 2,656,206 Ps. 1,139,091 Ps. 11,683,180 Ps. 87,342,530 At December 31, 2019 Ps. 9,437,130 Ps. 52,649,603 Ps. 2,337,439 Ps. 554,786 Ps. 1,195,318 Ps. 2,316,042 Ps. 1,124,546 Ps. 13,714,368 Ps. 83,329,232 At December 31, 2020 Ps. 9,579,153 Ps. 54,013,318 Ps. 2,055,025 Ps. 545,329 Ps. 1,090,966 Ps. 2,092,070 Ps. 1,032,096 Ps. 12,873,670 Ps. 83,281,627 (1) Retirements and reclassifications to other accounts include (i) set-up box refurbishment projects that are subsequently reclassified to inventory in order to be assigned or sold to a customer; and (ii) projects in progress related to certain costs that are reclassified to programming when a specific program benefits from those costs. |
Schedule of leased technical equipment | 2020 2019 Subscriber leased set-top equipment Ps. 42,564,180 Ps. 34,923,489 Accumulated depreciation (26,885,031) (22,269,138) Ps. 15,679,149 Ps. 12,654,351 |
Right-of-use Assets, Net (Table
Right-of-use Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Right-of-use Assets, Net | |
Schedule of right of use assets, net | Satellite Technical Buildings Transponders Equipment Others Total Cost: January 1, 2019 Ps. 4,758,787 Ps. 4,275,619 Ps. 1,896,682 Ps. 38,525 Ps. 10,969,613 Additions or inflationary adjustments 480,222 — 82,568 25,263 588,053 Retirements (153,888) — (290,421) (5,767) (450,076) Effect of translation 121 — — — 121 December 31, 2019 5,085,242 4,275,619 1,688,829 58,021 11,107,711 Additions 655,135 — 195,153 66,791 917,079 Reclassifications (107,075) — — 107,075 — Retirements (169,899) — — (749) (170,648) Effect of translation 1,181 — — — 1,181 December 31, 2020 Ps. 5,464,584 Ps. 4,275,619 Ps. 1,883,982 Ps. 231,138 Ps. 11,855,323 Depreciation: January 1, 2019 Ps. — Ps. (1,781,508) Ps. (987,924) Ps. — Ps. (2,769,432) Depreciation of the year (618,374) (285,041) (134,775) (32,160) (1,070,350) Retirements 9,714 — 275,262 — 284,976 Effect of translation 147 — — — 147 December 31, 2019 (608,513) (2,066,549) (847,437) (32,160) (3,554,659) Depreciation of the year (607,791) (285,041) (140,985) (62,957) (1,096,774) Reclassifications 35,312 — — (35,312) — Retirements 4,211 — 156 3,806 8,173 Effect of translation 102 — — — 102 December 31, 2020 Ps. (1,176,679) Ps. (2,351,590) Ps. (988,266) Ps. (126,623) Ps. (4,643,158) Carrying value: At January 1, 2019 Ps. 4,758,787 Ps. 2,494,111 Ps. 908,758 Ps. 38,525 Ps. 8,200,181 At December 31, 2019 Ps. 4,476,729 Ps. 2,209,070 Ps. 841,392 Ps. 25,861 Ps. 7,553,052 At December 31, 2020 Ps. 4,287,905 Ps. 1,924,029 Ps. 895,716 Ps. 104,515 Ps. 7,212,165 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets and Goodwill, Net | |
Schedule of changes in intangible assets | 2020 2019 Accumulated Accumulated Cost Amortization Carrying Value Cost Amortization Carrying Value Intangible assets and goodwill with indefinite useful lives: Trademarks Ps. 35,242 Ps. — Ps. 35,242 Ps. 175,444 Ps. — Ps. 175,444 Concessions 15,166,067 — 15,166,067 15,166,067 — 15,166,067 Goodwill 14,113,626 — 14,113,626 14,113,626 — 14,113,626 29,314,935 — 29,314,935 29,455,137 — 29,455,137 Intangible assets with finite useful lives: Trademarks 2,227,096 (1,971,314) 255,782 2,127,697 (1,899,187) 228,510 Concessions 553,505 (442,804) 110,701 553,505 (332,103) 221,402 Licenses and software 13,139,480 (8,446,906) 4,692,574 10,858,388 (6,843,169) 4,015,219 Subscriber lists 8,804,334 (7,258,070) 1,546,264 8,782,852 (6,632,419) 2,150,433 Payments for renewal of concessions 5,825,559 — 5,825,559 5,821,828 — 5,821,828 Other intangible assets 5,169,795 (4,191,392) 978,403 5,198,960 (3,762,535) 1,436,425 35,719,769 (22,310,486) 13,409,283 33,343,230 (19,469,413) 13,873,817 Ps. 65,034,704 Ps. (22,310,486) Ps. 42,724,218 Ps. 62,798,367 Ps. (19,469,413) Ps. 43,328,954 |
Schedule of changes in net carrying amount of goodwill, indefinite-lived trademarks and concessions | Foreign Balance as of Currency Balance as of January 1, Translation Impairment December 31, 2020 Acquisitions Retirements Adjustments Adjustments Transfers 2020 Goodwill: Cable Ps. 13,794,684 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 13,794,684 Content 241,973 — — — — — 241,973 Other Businesses 76,969 — — — — — 76,969 Ps. 14,113,626 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 14,113,626 Indefinite-lived trademarks (see Note 3): Cable Ps. 132,212 Ps. — Ps. — Ps. — Ps. — Ps. (99,399) Ps. 32,813 Other Businesses 43,232 — — — (40,803) — 2,429 Ps. 175,444 Ps. — Ps. — Ps. — Ps. (40,803) Ps. (99,399) Ps. 35,242 Indefinite-lived concessions (see Note 3): Cable Ps. 15,070,025 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 15,070,025 Sky 96,042 — — — — — 96,042 Ps. 15,166,067 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 15,166,067 Foreign Balance as of Currency Balance as of January 1, Translation Impairment December 31, 2019 Acquisitions Retirements Adjustments Adjustments Transfers 2019 Goodwill: Cable Ps. 13,794,684 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 13,794,684 Content 241,973 — — — — — 241,973 Other Businesses 76,969 — — — — — 76,969 Ps. 14,113,626 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 14,113,626 Indefinite-lived trademarks (see Note 3): Cable Ps. 368,603 Ps. — Ps. — Ps. — Ps. — Ps. (236,391) Ps. 132,212 Other Businesses 110,806 — — — (67,574) — 43,232 Ps. 479,409 Ps. — Ps. — Ps. — Ps. (67,574) Ps. (236,391) Ps. 175,444 Indefinite-lived concessions (see Note 3): Cable Ps. 15,070,025 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. Sky 96,042 — — — — — Ps. 15,166,067 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. |
Schedule of fair value calculations of goodwill and intangible assets | Cable Minimum Maximum Value in use calculations: Long-term growth rate 3.70 % 3.90 % Discount rate 10.50 % 11.60 % Fair value calculations: Multiple of sales Multiple of EBITDA (as defined) The key assumptions used for fair value calculations of goodwill and intangible assets in 2019, were as follows (see Note 15): Cable Other Businesses Minimum Maximum Minimum Maximum Long-term growth rate % % % % Discount rate % % % % |
Schedule of intangible assets amortization expense | Year ended December 31, 2021 Ps. 110,701 |
Intangible Assets with Finite Useful Lives | |
Intangible Assets and Goodwill, Net | |
Schedule of changes in intangible assets | 2020 Licenses Payments for Other and Subscriber Renewal of Intangible Trademarks Concessions Software Lists Concessions Assets Total Cost: Balance at beginning of period Ps. 2,127,697 Ps. 553,505 Ps. 10,858,388 Ps. 8,782,852 Ps. 5,821,828 Ps. 5,198,960 Ps. 33,343,230 Additions — — 959,813 — 3,731 271,633 1,235,177 Transfers from property, plant and equipment — — 1,247,347 — — — 1,247,347 Transfers to property, plant and equipment — — — — — (202,282) (202,282) Retirements — — (28,127) — — (25,013) (53,140) Transfers and reclassifications 99,399 — 84,823 16,428 — (73,124) 127,526 Effect of translation — — 17,236 5,054 — (379) 21,911 Balance at end of period 2,227,096 553,505 13,139,480 8,804,334 5,825,559 5,169,795 35,719,769 Amortization: Balance at beginning of period (1,899,187) (332,103) (6,843,169) (6,632,419) — (3,762,535) (19,469,413) Amortization of the year (72,127) (110,701) (1,717,282) (523,878) — (50,522) (2,474,510) Other amortization of the year (1) — — — — — (380,863) (380,863) Retirements — — 28,127 — — 2,003 30,130 Reclassifications — — 96,304 (96,719) — 415 — Effect of translation — — (10,886) (5,054) — 110 (15,830) Balance at end of period (1,971,314) (442,804) (8,446,906) (7,258,070) — (4,191,392) (22,310,486) Ps. 255,782 Ps. 110,701 Ps. 4,692,574 Ps. 1,546,264 Ps. 5,825,559 Ps. 978,403 Ps. 13,409,283 2019 Licenses Payments for Other and Subscriber Renewal of Intangible Trademarks Concessions Software Lists Concessions Assets Total Cost: Balance at beginning of period Ps. 1,891,306 Ps. 553,505 Ps. 9,065,582 Ps. 8,785,423 Ps. 5,993,891 Ps. 4,099,750 Ps. 30,389,457 Additions — — 913,108 — 67,285 1,126,357 2,106,750 Transfers from property, plant and equipment — — 1,487,056 — — — 1,487,056 Retirements — — (526,166) — (239,348) (90,324) (855,838) Transfers and reclassifications 236,391 — (68,641) 1,162 — 67,479 236,391 Effect of translation — — (12,551) (3,733) — (4,302) (20,586) Balance at end of period 2,127,697 553,505 10,858,388 8,782,852 5,821,828 5,198,960 33,343,230 Amortization: Balance at beginning of period (1,569,786) (221,402) (5,934,647) (6,108,251) (15,454) (3,235,503) (17,085,043) Amortization of the year (329,401) (110,701) (1,490,841) (530,013) (7,773) (31,917) (2,500,646) Other amortization of the year (1) — — — — — (531,426) (531,426) Retirements — — 529,403 — 23,227 79,108 631,738 Reclassifications — — 44,824 2,112 — (46,936) — Effect of translation — — 8,092 3,733 — 4,139 15,964 Balance at end of period (1,899,187) (332,103) (6,843,169) (6,632,419) — (3,762,535) (19,469,413) Ps. 228,510 Ps. 221,402 Ps. 4,015,219 Ps. 2,150,433 Ps. 5,821,828 Ps. 1,436,425 Ps. 13,873,817 Other amortization of the year relates primarily to amortization of soccer player rights, which is included in consolidated cost of sales. |
Intangible Assets with Indefinite Useful Lives | |
Intangible Assets and Goodwill, Net | |
Schedule of changes in intangible assets | 2020 Trademarks Concessions Goodwill Total Cost: Balance at beginning of period Ps. 175,444 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,455,137 Impairment adjustments (40,803) — — (40,803) Transfers and reclassifications (99,399) — — (99,399) Balance at end of period Ps. 35,242 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,314,935 2019 Trademarks Concessions Goodwill Total Cost: Balance at beginning of period Ps. 479,409 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,759,102 Impairment adjustments (67,574) — — (67,574) Transfers and reclassifications (236,391) — — (236,391) Balance at end of period Ps. 175,444 Ps. 15,166,067 Ps. 14,113,626 Ps. 29,455,137 |
Debt, Lease Liabilities and O_2
Debt, Lease Liabilities and Other Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt, Lease Liabilities and Other Notes Payable | |
Schedule of outstanding Debt, Lease Liabilities and Other Notes Payable | 2020 2019 Principal, Net Effective Finance of Finance Interest Interest Rate Principal Costs Costs Payable Total Total U.S. dollar Senior Notes: 6.625% Senior Notes due 2025 (1) % Ps. 11,969,580 Ps. (162,815) Ps. 11,806,765 Ps. 224,679 Ps. 12,031,444 Ps. 11,341,835 4.625% Senior Notes due 2026 (1) % 5,984,790 (24,424) 5,960,366 138,398 6,098,764 5,766,754 8.50% Senior Notes due 2032 (1) % 5,984,790 (19,870) 5,964,920 155,438 6,120,358 5,790,640 6.625% Senior Notes due 2040 (1) % 11,969,580 (120,485) 11,849,095 431,736 12,280,831 11,612,104 5% Senior Notes due 2045 (1) % 19,949,300 (412,967) 19,536,333 144,079 19,680,412 18,590,304 6.125% Senior Notes due 2046 (1) % 17,954,370 (119,284) 17,835,086 549,853 18,384,939 17,391,833 5.25% Senior Notes due 2049 (1) % 14,961,975 (294,210) 14,667,765 78,550 14,746,315 13,932,641 Total U.S. dollar debt 88,774,385 (1,154,055) 87,620,330 1,722,733 89,343,063 84,426,111 Mexican peso debt: 8.79% Notes due 2027 (2) % (16,122) 8.49% Senior Notes due 2037 (1) % (11,903) 7.25% Senior Notes due 2043 (1) % (53,091) Bank loans (3) % (88,350) Bank loans (Sky) (4) % — Bank loans (TVI) (5) % 852,893 (786) 852,107 — 852,107 Total Mexican peso debt 35,102,893 (170,252) 34,932,641 211,923 35,144,564 Total debt (6) 123,877,278 (1,324,307) 122,552,971 1,934,656 124,487,627 Less: Current portion of long-term debt 617,489 (498) 616,991 1,934,656 2,551,647 Long-term debt, net of current portion Ps. 123,259,789 Ps. (1,323,809) Ps. 121,935,980 Ps. — Ps. 121,935,980 Ps. Lease liabilities: Satellite transponder lease liabilities (7) % Ps. 3,818,559 Ps. — Ps. 3,818,559 Ps. — Ps. 3,818,559 Ps. Other lease liabilities (8) % 728,500 — 728,500 — 728,500 Lease liabilities recognized as of January 1, 2019 (8) 4,745,292 — 4,745,292 — 4,745,292 Total lease liabilities 9,292,351 — 9,292,351 — 9,292,351 Less: Current portion 1,277,754 — 1,277,754 — 1,277,754 Lease liabilities, net of current portion Ps. 8,014,597 Ps. — Ps. 8,014,597 Ps. — Ps. 8,014,597 Ps. Other notes payable: Total other notes payable (9) % Ps. — Ps. — Ps. — Ps. — Ps. — Ps. Less: Current portion — — — — — Other notes payable, net of current portion Ps. — Ps. — Ps. — Ps. — Ps. — Ps. — (1) The Senior Notes due between 2025 and 2049, in the aggregate outstanding principal amount of U.S.$4,450 million and Ps.11,000,000, are unsecured obligations of the Company, rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness of the Company, and are junior in right of payment to all of the existing and future liabilities of the Company’s subsidiaries. Interest rate on the Senior Notes due 2025, 2026, 2032, 2037, 2040, 2043, 2045, 2046 and 2049, including additional amounts payable in respect of certain Mexican withholding taxes, is 6.97%, 4.86%, 8.94%, 8.93%, 6.97%, 7.62%, 5.26%, 6.44% and 5.52% per annum, respectively, and is payable semi-annually. These Senior Notes may not be redeemed prior to maturity, except: (i) in the event of certain changes in law affecting the Mexican withholding tax treatment of certain payments on the securities, in which case the securities will be redeemable, in whole or in part, at the option of the Company; and (ii) in the event of a change of control, in which case the Company may be required to redeem the securities at 101% of their principal amount. Also, the Company may, at its own option, redeem the Senior Notes due 2025, 2026, 2037, 2040, 2043, 2046 and 2049, in whole or in part, at any time at a redemption price equal to the greater of the principal amount of these Senior Notes or the present value of future cash flows, at the redemption date, of principal and interest amounts of the Senior Notes discounted at a fixed rate of comparable U.S. or Mexican sovereign bonds. The Senior Notes due 2026, 2032, 2040, 2043, 2045, 2046 and 2049 were priced at 99.385%, 99.431%, 98.319%, 99.733%, 96.534%, 99.677% and 98.588%, respectively, for a yield to maturity of 4.70%, 8.553%, 6.755%, 7.27%, 5.227%, 6.147% and 5.345%, respectively. The Senior Notes due 2025 were issued in two aggregate principal amounts of U.S.$400 million and U.S.$200 million, and were priced at 98.081% and 98.632%, respectively, for a yield to maturity of 6.802% and 6.787%, respectively. The agreement of these Senior Notes contains covenants that limit the ability of the Company and certain restricted subsidiaries engaged in the Group’s Content segment, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations and similar transactions. The Senior Notes due 2025, 2026, 2032, 2037, 2040, 2045, 2046 and 2049, are registered with the U.S. Securities and Exchange Commission (“SEC”). The Senior Notes due 2043 are registered with both the SEC and the Mexican Banking and Securities Commission (“Comisión Nacional Bancaria y de Valores” or “CNBV”). (2) In 2010, 2014, 2015 and October 2017, the Company issued Notes (“Certificados Bursátiles”) due 2020, 2021, 2022 and 2027, respectively, through the BMV in the aggregate principal amount of Ps.10,000,000, Ps.6,000,000, Ps.5,000,000 and Ps.4,500,000, respectively. In July 2019, the Company prepaid all of the outstanding Notes due 2021 and 2022 in the aggregate principal amount of Ps.11,000,000. In October 2019, the Company prepaid all of the outstanding Notes due 2020 in the aggregate principal amount of Ps.10,000,000. Interest rate on the Notes due 2020 was 7.38% per annum and was payable semi-annually. Interest rate on the Notes due 2021 and 2022 was the TIIE plus 35 basis points per annum and was payable every 28 days. Interest rate on the Notes due 2027 is 8.79% per annum and is payable semi-annually. The Company may, at its own option, redeem the Notes due 2027, in whole or in part, at any semi-annual interest payment date at a redemption price equal to the greater of the principal amount of the outstanding Notes and the present value of future cash flows, at the redemption date, of principal and interest amounts of the Notes discounted at a fixed rate of comparable Mexican sovereign bonds. The agreement of the Notes contains covenants that limit the ability of the Company and certain restricted subsidiaries appointed by the Company’s Board of Directors, and engaged in the Group’s Content segment, to incur or assume liens, perform sale and leaseback transactions, and consummate certain mergers, consolidations and similar transactions. (3) In 2017, the Company entered into long-term credit agreements with three Mexican banks, in the aggregate principal amount of Ps.6,000,000, with an annual interest rate payable on a monthly basis of 28-day TIIE plus a range between 125 and 130 basis points , and principal maturities between 2022 and 2023. The proceeds of these loans were used primarily for the prepayment in full of the Senior Notes due 2018. Under the terms of these loan agreements, the Company is required to: (a) maintain certain financial coverage ratios related to indebtedness and interest expense; and (b) comply with the restrictive covenant on certain spin-offs, mergers and similar transactions. In July 2019, the Company entered into a credit agreement for a five-year term loan with a syndicate of banks in the aggregate principal amount of Ps.10,000,000. The funds from this loan were used for general corporate purposes, including the refinancing of the Company's indebtedness. This loan bears interest at a floating rate based on a spread of 105 or 130 basis points over the 28-day TIIE rate depending on the Group's net leverage ratio. The credit agreement of this loan requires the maintenance of financial ratios related to indebtedness and interest expense. During 2018, the Company executed a revolving credit facility with a syndicate of banks, for up to an amount equivalent to U.S.$618 million payable in Mexican pesos, which funds may be used for the repayment of existing indebtedness and other general corporate purposes. In March 2020, the Company drew down Ps.14,770,694 under this revolving credit facility, with a maturity in the first quarter of 2022, and interest payable on a monthly basis at a floating rate based on a spread of 87.5 or 112.5 basis points over the 28-day TIIE rate depending on the Group's net leverage ratio. This facility was used by the Company as a prudent and precautionary measure to increase the Group's cash position and preserve financial flexibility in light of uncertainty in the global and local markets resulting from the COVID-19 outbreak. On October 6, 2020, the Company prepaid in full without penalty the principal amount of Ps.14,770,694 under this revolving credit facility. The Company retained the right to reborrow the facility in an amount of up to the Mexican peso equivalent of U.S.$618 million, and the facility remains available through March 2022. (4) In March 2016, Sky entered into long-term credit agreements with two Mexican banks in the aggregate principal amount of Ps.5,500,000, with maturities between 2021 and 2023, and interest payable on a monthly basis with an annual interest rate in the range of 7.0% and 7.13%. In July 2020, Sky prepaid a portion of these loans in the aggregate cash amount of Ps.2,818,091, which included principal amount prepayments of Ps.2,750,000, and related accrued interest and transaction costs in the amount of Ps.68,091. Under the terms of these credit agreements, the Company is required to: (a) maintain certain financial coverage ratios related to indebtedness and interest expense; and (b) comply with the restrictive covenant on spin-offs, mergers and similar transactions. (5) In 2020 and 2019, included outstanding balances in the aggregate principal amount of Ps.852,893 and Ps.1,345,382, respectively, in connection with credit agreements entered into by TVI with Mexican banks, with maturities between 2019 and 2022, bearing interest at an annual rate of TIIE plus a range between 100 and 125 basis points, which is payable on a monthly basis. This TVI long-term indebtedness is guaranteed by the Company. Under the terms of these credit agreements, TVI is required to comply with certain restrictive covenants and financial coverage ratios. (6) Total debt as of December 31, 2019, is presented net of unamortized finance costs in the aggregate amount of Ps.1,441,597, interest payable in the aggregate amount of Ps.1,943,863. (7) Under a capital lease agreement entered into with Intelsat Global Sales & Marketing Ltd. (“Intelsat”) in March 2010, Sky is obligated to pay at an annual interest rate of 7.30%, a monthly fee through 2027 of U.S.$3.0 million for satellite signal reception and retransmission service from 24 KU-band transponders on satellite IS‑21, which became operational in October 2012. The service term for IS‑21 will end at the earlier of: (a) the end of 15 years or; (b) the date IS-21 is taken out of service (see Note 12). (8) In 2020, includes lease liabilities recognized beginning on January 1, 2019 under IFRS 16 for an aggregate amount of Ps.4,745,292. Also, includes minimum lease payments of property and equipment under leases that qualify as lease liabilities. In 2020 and 2019, includes Ps.728,500 and Ps.699,066, respectively, in connection with a lease agreement entered into by a subsidiary of the Company and GTAC for the right to use certain capacity of a telecommunications network through 2029 (see Note 20). This lease agreement provides for annual payments through 2029. Other lease liabilities had terms which expired at various dates between 2019 and 2020. (9) Notes payable issued by the Group in 2016, in connection with the acquisition of a non-controlling interest in TVI. The cash payments made between 2018 and 2020 related to these notes payable amounted to an aggregate of Ps.1,330,000 and Ps.2,624,375, respectively, including interest of Ps.142,500 and Ps.249,375, respectively. Accumulated accrued interest for this transaction amounted to Ps.136,563 and Ps.201,874, as of December 31, 2019 and 2018, respectively. This was regarded as a Level 2 debt, which was fair valued using a discounted cash flow approach, which discounts the contractual cash flows using discount rates derived from observable market price of other quoted debt instruments. In February 2020, the Group repaid all of its outstanding other notes payable as of December 31, 2019. |
Schedule of outstanding principal amounts of hedged items | December 31, 2020 December 31, 2019 Millions of Thousands of Millions of Thousands of Hedged Items U.S. dollars Mexican pesos U.S. dollars Mexican pesos Investment in shares of UHI (net investment hedge) U.S.$ 1,074.0 Ps. 21,424,180 U.S.$ 433.7 Ps. 8,189,662 Warrants issued by UHI (foreign currency fair value hedge) — — 1,788.6 33,775,451 Open-Ended Fund (foreign currency fair value hedge) 56.9 1,135,803 248.3 4,688,202 Total U.S.$ 1,130.9 Ps. 22,559,983 U.S.$ 2,470.6 Ps. 46,653,315 |
Schedule of foreign exchange gain or loss derived from senior notes designated as a hedge | Foreign Exchange Gain or Loss Derived from Year Ended Year Ended Senior Notes Designated as Hedging Instruments December 31, 2020 December 31, 2019 Recognized in: Comprehensive income Ps. (7,343,244) Ps. 2,030,424 Total foreign exchange (loss) gain derived from hedging Senior Notes Ps. (7,343,244) Ps. 2,030,424 Offset against: Foreign currency translation gain (loss) derived from the hedged net investment in shares of UHI Ps. 1,360,735 Ps. (337,742) Foreign exchange gain (loss) derived from hedged warrants issued by UHI 5,511,412 (1,403,384) Foreign exchange gain (loss) derived from the hedged Open-Ended Fund 471,097 (289,298) Total foreign currency translation and foreign exchange gain (loss) derived from hedged assets Ps. 7,343,244 Ps. (2,030,424) |
Schedule of debt maturities | Debt maturities for the years subsequent to December 31, 2020, are as follows: Unamortized Nominal Finance Costs 2021 Ps. 617,489 Ps. (498) 2022 5,485,404 (8,213) 2023 3,500,000 (6,290) 2024 10,000,000 (74,135) 2025 11,969,580 (162,815) Thereafter 92,304,805 (1,072,356) Ps. 123,877,278 Ps. (1,324,307) |
Schedule of future minimum payments under lease liabilities | Future minimum payments under lease liabilities for the years subsequent to December 31, 2020, are as follows: 2021 Ps. 1,946,215 2022 1,708,943 2023 1,644,473 2024 1,583,671 2025 1,510,847 Thereafter 4,515,287 12,909,436 Less: Amount representing interest (3,617,085) Ps. 9,292,351 |
Schedule of reconciliation of long-term debt and lease liabilities arising from financing activities | Cash Flow Non-Cash Changes Foreign Balance as of New Debt Exchange Balance as of January 1, 2020 New Debt Payments and Leases Income Interest December 31, 2020 Debt Ps. 122,378,292 Ps. 14,770,694 Ps. (18,013,183) Ps. — Ps. 4,741,475 Ps. — Ps. 123,877,278 Satellite transponder lease liabilities 4,014,567 — (456,465) — 260,457 — 3,818,559 Other lease liabilities 707,248 — (211,812) 195,308 — 37,756 728,500 Lease liabilities 4,641,705 — (953,771) 540,477 20,102 496,779 4,745,292 Total debt and lease liabilities Ps. 131,741,812 Ps. 14,770,694 Ps. (19,635,231) Ps. 735,785 Ps. 5,022,034 Ps. 534,535 Ps. 133,169,629 Cash Flow Non-Cash Changes Foreign Balance as of New Debt Exchange Balance as of January 1, 2019 New Debt Payments and Leases Income Interest December 31, 2019 Debt Ps. 123,124,638 Ps. 24,298,075 Ps. (21,989,156) Ps. — Ps. (3,055,265) Ps. — Ps. 122,378,292 Finance Costs — — (50,531) — — — (50,531) Satellite transponder lease liabilities — (387,428) — (167,778) — 4,014,567 Other lease liabilities — (172,195) — 707,248 Lease liabilities recognized as of January 1, 2019 — (883,533) (34,984) — 4,641,705 Total debt and lease liabilities Ps. 133,239,894 Ps. 24,298,075 Ps. (23,482,843) Ps. 845,507 Ps. (3,258,027) Ps. Ps. 131,691,281 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Schedule of carrying value and estimated fair value of financial instruments | The carrying and estimated fair values of the Group’s non-derivative financial instruments as of December 31, 2020 and 2019, were as follows: 2020 2019 Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents Ps. 29,058,093 Ps. 29,058,093 Ps. 27,452,265 Ps. 27,452,265 Trade notes and accounts receivable, net 12,343,797 12,343,797 14,486,184 14,486,184 Warrants issued by UHI (see Note 9) — — 33,775,451 33,775,451 Long-term loan and interests receivable from GTAC (see Note 10) 821,253 824,092 872,317 875,585 Open-Ended Fund (see Note 9) 1,135,803 1,135,803 4,688,202 4,688,202 Other equity instruments (see Note 9) 5,397,504 5,397,504 5,751,001 5,751,001 Liabilities: Senior Notes due 2025, 2032 and 2040 Ps. 29,923,950 Ps. 40,584,237 Ps. 28,325,700 Ps. 34,954,254 Senior Notes due 2045 19,949,300 24,282,886 18,883,800 19,739,047 Senior Notes due 2037 and 2043 11,000,000 9,238,435 11,000,000 8,986,870 Senior Notes due 2026 and 2046 23,939,160 31,811,792 22,660,560 26,645,193 Senior Notes due 2049 14,961,975 18,978,667 14,162,850 15,364,426 Notes due 2027 4,500,000 5,035,860 4,500,000 4,656,375 Long-term notes payable to Mexican banks 19,602,893 19,801,142 22,845,382 23,012,707 Lease liabilities 9,292,351 9,343,100 9,363,520 9,120,903 Other notes payable — — 1,324,063 1,295,780 The carrying values (based on estimated fair values), notional amounts, and maturity dates of the Group’s derivative financial instruments as of December 31, 2020 and 2019, were as follows: Notional Amount December 31, 2020: Carrying (U.S. Dollars in Derivative Financial Instruments Value Thousands) Maturity Date Liabilities: Derivatives recorded as accounting hedges (cash flow hedges): TVI’s interest rate swap (a) Ps. 1,759 Ps. 122,400 May 2022 TVI’s interest rate swap (b) 23,784 Ps. 730,493 April 2022 Interest rate swaps (c) 109,146 Ps. 2,000,000 October 2022 Interest rate swaps (d) 86,171 Ps. 1,500,000 October 2022 Interest rate swaps (e) 180,941 Ps. 2,500,000 February 2023 Interest rate swaps (f) 762,827 Ps. 10,000,000 June 2024 Forward (g) 714,763 U.S.$ 330,500 January 2021 through March 2022 Derivatives not recorded as accounting hedges: Interest rate swap (h) 204,250 Ps. 9,385,347 March 2022 TVI's forward (i) 176,868 U.S.$ 88,353 January 2021 through February 2022 Empresas Cablevisión’s forward (j) 190,726 U.S.$ 96,789 January 2021 through February 2022 Sky's forward (k) 318,701 U.S.$ 135,000 February 2021 through February 2022 Forward (l) 706,287 U.S.$ 344,898 January 2021 through February 2022 Total liabilities Ps. 3,476,223 Notional Amount December 31, 2019: Carrying (U.S. Dollars in Derivative Financial Instruments Value Thousands) Maturity Date Assets: Derivatives recorded as accounting hedges (cash flow hedges): TVI’s interest rate swap (a) Ps. 4,592 Ps. 407,200 May 2020 through May 2022 Total assets Ps. 4,592 Liabilities: Derivatives recorded as accounting hedges (cash flow hedges): TVI’s interest rate swap (b) Ps. 8,943 Ps. 938,182 April 2022 Interest rate swaps (c) 38,543 Ps. 2,000,000 October 2022 Interest rate swaps (d) 30,702 Ps. 1,500,000 October 2022 Interest rate swaps (e) 83,122 Ps. 2,500,000 February 2023 Interest rate swaps (f) 185,205 Ps. 6,000,000 June 2024 Forward (g) 144,466 U.S.$ 218,688 January 2020 through September 2020 Derivatives not recorded as accounting hedges: TVI's forward (i) 45,968 U.S.$ 66,000 January 2020 through October 2020 Empresas Cablevisión’s forward (j) 48,474 U.S.$ 73,000 January 2020 through October 2020 Sky's forward (k) 87,090 U.S.$ 127,850 January 2020 through September 2020 Forward (l) 242,777 U.S.$ 361,550 January 2020 through October 2020 Total liabilities Ps. 915,290 (a) TVI has entered into several derivative transaction agreements (interest rate swaps) with two financial institutions from August 2013 through May 2022 to hedge the variable interest rate exposure resulting from Mexican peso loans of a total principal amount of Ps.122,400 and Ps.407,200, as of December 31, 2020 and 2019, respectively. Under these agreements, the Company receives monthly payments based on aggregate notional amounts of Ps.122,400 and Ps.407,200 and makes payments based on the same notional amount at an annual weighted average fixed rate of 5.585%. TVI has recognized the change in fair value of this transaction as an accounting hedge, and recorded a loss of Ps.60,730 and Ps.54,383 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In the years ended as of December 31, 2020 and 2019, TVI recorded a gain of Ps.2,046 and Ps.26,962, respectively, in consolidated other finance income or expense. (b) In March and April 2017, TVI entered into several derivative transaction agreements (interest rate swaps) with two financial institutions through April 2022 to hedge the variable interest rate exposure resulting from Mexican peso loan of a total principal amount of Ps.730,493 and Ps.938,182, as of December 31, 2020 and 2019, respectively. Under these agreements, the Company receives monthly payments based on aggregate notional amounts of Ps.730,493 and Ps.938,182, as of December 31, 2020 and 2019, respectively, at an annual variable rate of 28- days TIIE and makes monthly payments based on the same notional amounts at an annual weighted average fixed rate of 7.2663%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a loss of Ps.23,784 and Ps.8,943 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. TVI recorded a (loss) gain of Ps.(11,700) and Ps.11,738 for this transaction agreement in consolidated other finance income or expense as of December 31, 2020 and 2019, respectively. (c) In November 2017, the Company entered into a derivative transaction agreement (interest rate swap) through October 2022, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.2,000,000. Under this transaction, the Company receives monthly payments based on an aggregate notional amount of Ps.2,000,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual fixed rate of 7.3275%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.107,884 and Ps.38,543 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In 2020 and 2019, the Company recorded a (loss) gain of Ps.(28,719) and Ps.20,933, respectively, in consolidated other finance income or expense. (d) In November and December 2017, the Company entered into a derivative transaction agreement (interest rate swap) through October 2022, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.1,500,000. Under this transaction, the Company receives monthly payments based on an aggregate notional amount of Ps.1,500,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual fixed rate of 7.35%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.85,217 and Ps.30,702, in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In 2020, the Company recorded a loss of Ps.21,741 in consolidated other finance income or expense. (e) In January 2018, the Company entered into a derivative transaction agreement (interest rate swap) through February 2023, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.2,500,000. Under this transaction, the Company receives monthly payments based on aggregate notional amount of Ps.2,500,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual fixed rate of 7.7485%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.175,498 and Ps.83,122 in other comprehensive income or loss as of December 31, 2020 and 2019, respectively. In 2020, the Company recorded a loss of Ps.42,553 in consolidated other finance income or expense. (f) In June and July 2019 and October 2020, the Company entered into a derivative transaction agreements (interest rate swap) through June 2024, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.10,000,000 and Ps.6,000,000 as of December 31, 2020 and 2019, respectively. Under this agreements, the Company receives monthly payments based on aggregate notional amounts of Ps.10,000,000 and Ps.6,000,000, at an annual variable rate of 28 days of TIIE and makes monthly payments based on the same notional amount at an annual weighted average fixed rate of 6.7620%. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.747,630 in other comprehensive income or loss as of December 31, 2020. In 2020, the Company recorded a loss of Ps.89,336 in consolidated other finance income or expense. (g) As of December 31, 2020 and 2019, the Company had entered into derivative contracts of foreign currency (forwards) to fix the exchange rate for the purchase of U.S.$330.5 million and U.S.$218.7 million, respectively, at an average exchange rate of Ps.22.5859 and Ps.19.9256, respectively. The Company has recognized the change in fair value of this transaction as an accounting hedge, and recorded a cumulative loss of Ps.714,763 and Ps.144,466 for this transaction agreement in other comprehensive income or loss as of December 31, 2020, and 2019, respectively. In 2020 and 2019, the Company recorded a gain (loss) of Ps.308,562 and Ps.(107,440) in consolidated other finance income or expense, respectively. (h) In March 2020, the Company entered into a derivative transaction agreement (interest rate swap) through March 2022, to hedge the variable interest rate exposure resulting from a Mexican peso loan of a total principal amount of Ps.9,385,347. Under this transaction, the Company receives monthly payments based on aggregate notional amounts of Ps.9,385,347, at an annual variable rate of 28 days of TIIE, and makes monthly payments based on the same notional amount at an annual fixed rate of 6.0246%. In 2020, the Company recorded a loss of Ps.274,285 in consolidated other finance income or expense. (i) As of December 31, 2020, TVI had foreign currency contracts (forwards) in the aggregate notional amount of U.S.$88.4 million at an average rate of Ps.22.4570. As a result of the change in fair value of these agreements in the year ended December 31, 2020, the Company recorded a loss of Ps.3,482 in consolidated other finance income or expense. (j) As of December 31, 2020, Empresas Cablevisión had foreign currency contracts (forwards) in the aggregate notional amount of U.S.$96.8 million at an average rate of Ps.22.4103 . As a result of the change in fair value of these agreements in the year ended December 31, 2020 the Company recorded a loss of Ps.300 in consolidated other finance income or expense. (k) As of December 31, 2020, Sky had foreign currency contracts (forwards) in the aggregate notional amount of U.S.$135.0 million at an average rate of Ps.22.8411. As a result of the change in fair value of these agreements in the year ended December 31, 2020 the Company recorded a gain of Ps.43,419 in consolidated other finance income or expense. (l) As of December 31, 2020 and 2019, the Company had foreign currency contracts (forward) in the aggregate notional amount of U.S.$344.9 million and U.S.$361.5 million at an average rate of Ps.22.4872 and Ps.19.9898 , respectively. As a result of the change in fair value of these agreements, in the years ended December 31, 2020 and 2019, the Company recorded a gain (loss) of Ps.207,412 and Ps.(820,585), in consolidated other finance income or expense, respectively. |
Schedule of reconciliation for all assets and liabilities measured at fair value | Financial assets and liabilities measured at fair value as of December 31, 2020 and 2019: Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2020 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Assets: At FVOCIL: Open-Ended Fund Ps. 1,135,803 Ps. — Ps. 1,135,803 Ps. — Other equity instruments 5,397,504 5,397,504 — — Total Ps. 6,533,307 Ps. 5,397,504 Ps. 1,135,803 Ps. — Liabilities: Derivative financial instruments Ps. 3,476,223 Ps. — Ps. 3,476,223 Ps. — Total Ps. 3,476,223 Ps. — Ps. 3,476,223 Ps. — Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2019 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Assets: At FVOCIL: Open-Ended Fund Ps. 4,688,202 Ps. — Ps. 4,688,202 Ps. — Other equity instruments 5,751,001 5,751,001 — — Warrants issued by UHI 33,775,451 — — 33,775,451 Derivative financial instruments 4,592 — 4,592 — Total Ps. 44,219,246 Ps. 5,751,001 Ps. 4,692,794 Ps. 33,775,451 Liabilities: Derivative financial instruments Ps. 915,290 Ps. — Ps. 915,290 Ps. — Total Ps. 915,290 Ps. — Ps. 915,290 Ps. — The table below presents the reconciliation for all assets and liabilities measured at fair value using internal models with significant unobservable inputs (Level 3) during the years ended December 31, 2020 and 2019: 2020 2019 Balance at beginning of year Ps. 33,775,451 Ps. 34,921,530 Included in other comprehensive income (16,387,752) (1,146,079) Warrants exercised for common stock of UHI (17,387,699) — Balance at the end of year Ps. — Ps. 33,775,451 |
Post-employment Benefits (Table
Post-employment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Post-employment Benefits | |
Schedule of actuarial assumptions-present value of defined benefit obligations | 2020 2019 Discount rate 6.6 % 7.0 % Salary increase 5.0 % 5.0 % Inflation rate 3.5 % 3.5 % |
Schedule of reconciliation between defined benefit obligations and post-employment benefit liability (asset) | The reconciliation between defined benefit obligations and post-employment benefit liability (asset) in the consolidated statements of financial position as of December 31, 2020 and 2019, is presented as follows: Seniority Pensions Premiums 2020 Vested benefit obligations Ps. 556,619 Ps. 376,122 Ps. 932,741 Unvested benefit obligations 2,077,506 266,153 2,343,659 Defined benefit obligations 2,634,125 642,275 3,276,400 Fair value of plan assets 909,324 286,425 1,195,749 Underfunded status of the plan assets 1,724,801 355,850 2,080,651 Post-employment benefit liability Ps. 1,724,801 Ps. 355,850 Ps. 2,080,651 Seniority Pensions Premiums 2019 Vested benefit obligations Ps. 449,752 Ps. 338,962 Ps. 788,714 Unvested benefit obligations 1,890,108 168,786 2,058,894 Defined benefit obligations 2,339,860 507,748 2,847,608 Fair value of plan assets 1,051,076 328,420 1,379,496 Underfunded status of the plan assets 1,288,784 179,328 1,468,112 Post-employment benefit liability Ps. 1,288,784 Ps. 179,328 Ps. 1,468,112 |
Schedule of net periodic pension and seniority premium cost | 2020 2019 Service cost Ps. 148,987 Ps. 131,662 Interest cost 187,470 193,344 Prior service cost for plan amendments 40,542 46,846 Interest on plan assets (84,973) (112,788) Net periodic cost Ps. 292,026 Ps. 259,064 |
Schedule of defined benefit obligations, plan assets and funded status | Seniority Pensions Premiums 2020 2019 Defined benefit obligations: Beginning of year Ps. 2,339,860 Ps. 507,748 Ps. 2,847,608 Ps. 2,477,527 Service cost 90,045 58,942 148,987 131,662 Interest cost 150,253 37,217 187,470 193,344 Benefits paid (154,542) (66,642) (221,184) (215,474) Remeasurement of post-employment benefit obligations 198,995 73,982 272,977 213,703 Past service cost 9,514 31,028 40,542 46,846 End of year 2,634,125 642,275 3,276,400 2,847,608 Fair value of plan assets: Beginning of year 1,051,076 328,420 1,379,496 1,515,030 Return on plan assets 63,478 21,495 84,973 112,788 Contributions 600 — 600 — Remeasurement on plan assets (51,288) (20,048) (71,336) (33,389) Benefits paid (154,542) (43,442) (197,984) (214,933) End of year 909,324 286,425 1,195,749 1,379,496 Unfunded status by the plan assets Ps. 1,724,801 Ps. 355,850 Ps. 2,080,651 Ps. 1,468,112 |
Schedule of post-employment benefits | The changes in the net post-employment liability (asset) in the consolidated statements of financial position as of December 31, 2020 and 2019, are as follows: Seniority Pensions Premiums 2020 2019 Beginning of net post-employment liability (asset) Ps. 1,288,784 Ps. 179,328 Ps. 1,468,112 Ps. 962,497 Net periodic cost 186,334 105,692 292,026 259,064 Contributions (600) — (600) — Remeasurement of post-employment benefits 250,283 94,030 344,313 247,092 Benefits paid — (23,200) (23,200) (541) Ending net post-employment liability Ps. 1,724,801 Ps. 355,850 Ps. 2,080,651 Ps. 1,468,112 The post-employment benefits as of December 31, 2020 and 2019 and remeasurements adjustments for the years ended December 31, 2020 and 2019, are summarized as follows: 2020 2019 Pensions: Defined benefit obligations Ps. 2,634,125 Ps. 2,339,860 Plan assets 909,324 1,051,076 Unfunded status of plans 1,724,801 1,288,784 Remeasurements adjustments (1) 250,283 183,002 Seniority premiums: Defined benefit obligations Ps. 642,275 Ps. 507,748 Plan assets 286,425 328,420 Unfunded status of plans 355,850 179,328 Remeasurements adjustments (1) 94,030 64,090 (1) On defined benefit obligations and plan assets. |
Schedule of plan asset allocation | 2020 2019 Equity securities (1) 28.8 % 28.6 % Fixed rate instruments 71.2 % 71.4 % Total 100.0 % 100.0 % (1) Included within plan assets at December 31, 2020 and 2019, are shares of the Company held by the trust with a fair value of Ps.101,690 and Ps.136,963, respectively. |
Schedule of plan assets measured at fair value | The following table summarizes the Group’s plan assets measured at fair value on a recurring basis as of December 31, 2020 and 2019: Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2020 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Common Stocks (1) Ps. 101,690 Ps. 101,690 Ps. — Ps. — Mutual funds (fixed rate instruments) (2) 231,837 231,837 — — Money market securities (3) 607,658 607,658 — — Other equity securities 254,564 254,564 — — Total investment assets Ps. 1,195,749 Ps. 1,195,749 Ps. — Ps. — Quoted Prices in Internal Models Internal Models Balance as of Active Markets with Significant with Significant December 31, for Identical Observable Unobservable 2019 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Common Stocks (1) Ps. 136,963 Ps. 136,963 Ps. — Ps. — Mutual funds (fixed rate instruments) (2) 218,269 218,269 — — Money market securities (3) 766,181 766,181 — — Other equity securities 258,083 258,083 — — Total investment assets Ps. 1,379,496 Ps. 1,379,496 Ps. — Ps. — (1) Common stocks are valued at the closing price reported on the active market on which the individual securities are traded. All common stock included in this line item relate to the Company’s CPOs. (2) Mutual funds consist of fixed rate instruments. These are valued at the net asset value provided by the administrator of the fund. (3) Money market securities consist of government debt securities, which are valued based on observable prices from the new issue market, benchmark quotes, secondary trading and dealer quotes. |
Schedule of the weighted average durations of the defined benefit plans | 2020 2019 Seniority Premiums 8.6 years 8.2 years Pensions 5.7 years 7.0 years |
Capital Stock and Long-term R_2
Capital Stock and Long-term Retention Plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capital Stock and Long-term Retention Plan | |
Schedule of shares of capital stock and CPOs | At December 31, 2020, shares of capital stock and CPOs consisted of (in millions): Repurchased Held by a Authorized and by the Company’s Issued (1) Company (2) Trust (3) Outstanding Series “A” Shares 122,179.4 (1,105.4) (8,054.8) 113,019.2 Series “B” Shares 58,019.7 (972.8) (6,118.4) 50,928.5 Series “D” Shares 88,554.1 (1,547.5) (5,984.2) 81,022.4 Series “L” Shares 88,554.1 (1,547.5) (5,984.2) 81,022.4 Total 357,307.3 (5,173.2) (26,141.6) 325,992.5 Shares in the form of CPOs 296,023.0 (5,173.2) (20,004.2) 270,845.6 Shares not in the form of CPOs 61,284.3 — (6,137.4) 55,146.9 Total 357,307.3 (5,173.2) (26,141.6) 325,992.5 CPOs 2,530.1 (44.2) (171.0) 2,314.9 (1) As of December 31, 2020, the authorized and issued capital stock amounted to Ps.4,907,765 (nominal Ps.2,459,154). (2) In 2020 and 2019, the Company repurchased, 616.0 million shares and 4,557.2 million shares, respectively, in the form of 5.3 million CPOs and 38.9 million CPOs, respectively, in the amount of Ps.195,597 and Ps.1,385,750, respectively, in connection with a share repurchase program that was approved by the Company’s stockholders and is exercised at the discretion of management. (3) In connection with the Company’s LTRP described below. |
Schedule of reconciliation of the number of shares and CPOs outstanding | A reconciliation of the number of shares and CPOs outstanding for the years ended December 31, 2020 and 2019, is presented as follows (in millions): Series “A” Series “B” Series “D” Series “L” Shares CPOs Shares Shares Shares Shares Outstanding Outstanding As of January 1, 2019 116,207.2 53,116.1 84,502.9 84,502.9 338,329.1 2,414.4 Repurchased (1) (973.7) (856.9) (1,363.3) (1,363.3) (4,557.2) (38.9) Acquired (2) (65.6) (57.7) (91.9) (91.9) (307.1) (2.7) Released (2) 1,056.0 651.3 1,036.1 1,036.1 3,779.5 29.6 As of December 31, 2019 116,223.9 52,852.8 84,083.8 84,083.8 337,244.3 2,402.4 Repurchased (1) (131.6) (115.8) (184.3) (184.3) (616.0) (5.3) Cancelled and forfeited (2) (3,097.4) (1,830.0) (2,911.3) (2,911.3) (10,750.0) (83.2) Acquired (2) (86.0) (75.6) (120.3) (120.3) (402.2) (3.4) Released (2) 110.3 97.1 154.5 154.5 516.4 4.4 As of December 31, 2020 113,019.2 50,928.5 81,022.4 81,022.4 325,992.5 2,314.9 (1) In connection with a share repurchase program. (2) By a Company’s trust in connection with the Company’s Long-Term Retention Plan described below. |
Schedule of arrangements and weighted-average assumptions | Long-Term Retention Plan Arrangements: Year of grant 2016 2017 2018 2019 2020 Number of CPOs or CPOs equivalent granted 39,000 37,000 32,500 72,558 39,200 Contractual life 3 years 3 years 3 years 2.67 years years Assumptions: Dividend yield 0.38 % 0.38 % 0.55 % 0.82 % % Expected volatility (1) 27.60 % 24.58 % 25.38 % 30.47 % % Risk-free interest rate 4.83 % 7.04 % 7.17 % 6.88 % % Expected average life of awards 3.00 years 2.96 years 3.00 years 2.67 years years (1) Volatility was determined by reference to historically observed prices of the Company’s CPOs. |
Summary of the stock awards for employees | A summary of the stock conditionally sold to employees as of December 31, is presented below (in Mexican pesos and thousands of CPOs): 2020 2019 Weighted- Weighted- CPOs or CPOs Average Exercise CPOs or CPOs Average Exercise Equivalent Price Equivalent Price Long-Term Retention Plan: Outstanding at beginning of year 243,472 65.19 179,051 75.77 Conditionally sold 39,200 6.84 72,558 38.50 Paid by employees — — (3,107) 33.75 Forfeited (122,307) 81.36 (5,030) 73.20 Outstanding at end of year 160,365 39.36 243,472 65.19 To be paid by employees at end of year 23,361 80.72 110,828 81.26 |
Retained Earnings and Accumul_2
Retained Earnings and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retained Earnings and Accumulated Other Comprehensive Income | |
Schedule of retained earnings | Unappropriated Net Income for Retained Legal Reserve Earnings the Year Earnings Balance at January 1, 2019 Ps. 2,139,007 Ps. 70,583,488 Ps. 6,009,414 Ps. 78,731,909 Appropriation of net income relating to 2018 — (6,009,414) — Acquisition of non-controlling interests — — Dividends paid relating to 2018 — (1,066,187) — (1,066,187) Net gain on partial disposition of Open-Ended Fund — — Sale of repurchased shares — (1,585,963) — (1,585,963) Share-based compensation — — Net income for the year 2019 — — Balance at December 31, 2019 2,139,007 Appropriation of net income relating to 2019 — 4,626,139 (4,626,139) — Recognized share of income of OCEN (see Note 10) — 147,975 — 147,975 Sale of repurchased shares — (997,174) — (997,174) Cancellation of sale of shares — 2,764,854 — 2,764,854 Share-based compensation — 962,806 — 962,806 Net income for the year 2020 — — (1,250,342) (1,250,342) Balance at December 31, 2020 Ps. 2,139,007 Ps. 83,391,732 Ps. (1,250,342) Ps. |
Schedule of accumulated other comprehensive income | Exchange Remeasurement Derivative Share of Warrants Differences on of Post- Financial Income (Loss) Other Exercisable for Translating Employment Instruments of Associates Open-Ended Equity Other Financial Common Stock Foreign Benefit Cash Flow and Joint Changes Fund Instruments Assets of UHI Operations Obligations Hedges Ventures Income Tax Total Accumulated at January 1, 2019 Ps. 3,966,615 Ps. 1,786,526 Ps. (111) Ps. (1,960,362) Ps. 814,307 Ps. (763,835) Ps. 976,549 Ps. 160,744 Ps. (552,946) Ps. 4,427,487 Partial disposition of Open-Ended Fund (1,186,130) — — — — — — — 348,610 (837,520) Remeasurement of post-employment benefit obligations of assets held for sale — — — — — (1,721) — — 516 (1,205) Changes in other comprehensive income (351,202) (794,624) 111 257,306 (79,631) (244,576) (1,521,912) (236,159) 702,376 (2,268,311) Accumulated at December 31, 2019 2,429,283 991,902 — (1,703,056) 734,676 (1,010,132) (545,363) (75,415) 498,556 1,320,451 Changes in other comprehensive income (904,423) (353,496) — (21,899,164) 115,565 (340,319) (1,370,145) (61,033) 7,935,716 (16,877,299) Accumulated at December 31, 2020 Ps. 1,524,860 Ps. 638,406 Ps. — Ps. (23,602,220) Ps. 850,241 Ps. (1,350,451) Ps. (1,915,508) Ps. (136,448) Ps. 8,434,272 Ps. (15,556,848) |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated subsidiaries information | |
Schedule of information about non-controlling interests | 2020 2019 Capital stock Ps. 1,102,334 Ps. 1,155,998 Additional paid-in capital 2,986,360 3,001,681 Legal reserve 216,071 164,832 Retained earnings from prior years (1) (2) (3) 8,483,413 8,930,063 Net income for the year 1,553,166 1,480,674 Accumulated other comprehensive income (loss): Cumulative result from foreign currency translation 166,275 148,318 Remeasurement of post-employment benefit obligations on defined benefit plans (10,595) (7,799) Ps. 14,497,024 Ps. 14,873,767 (1) In 2020, 2019 and 2018, the holding companies of the Sky segment paid a dividend to its equity owners in the aggregate amount of Ps.2,750,000, Ps.3,800,000 and Ps.3,000,000, respectively, of which Ps.1,134,808, Ps.1,570,659 and Ps.1,240,002, respectively, were paid to its non-controlling interests. (2) In 2020, the stockholders of Pantelion approved the payment of a dividend in the amount of Ps.394,269, of which Ps.193,192, were for its non-controlling interests. (3) In 2020, the stockholders of Radiopolis approved the payment of a dividend in the amount of Ps. 656,346, of which Ps. 325,173, were for its non-controlling interests, and of which only Ps.285,669 were paid. |
Empresas Cablevision And Sky | |
Consolidated subsidiaries information | |
Schedule of consolidated assets and liabilities of subsidiaries | Empresas Cablevisión Sky 2020 2019 2020 2019 Assets: Current assets Ps. 6,046,592 Ps. 5,035,670 Ps. 6,632,763 Ps. 9,891,514 Non-current assets 22,499,913 19,371,687 18,515,500 17,930,006 Total assets 28,546,505 24,407,357 25,148,263 27,821,520 Liabilities: Current liabilities 5,267,184 5,565,268 5,182,302 3,586,272 Non-current liabilities 3,943,909 1,326,812 5,967,680 9,319,812 Total liabilities 9,211,093 6,892,080 11,149,982 12,906,084 Net assets Ps. 19,335,412 Ps. 17,515,277 Ps. 13,998,281 Ps. 14,915,436 |
Schedule of consolidated net sales, net income and comprehensive income of subsidiaries | Empresas Cablevisión Sky 2020 2019 2020 2019 Net sales Ps. 15,906,914 Ps. 14,465,512 Ps. 22,134,943 Ps. 21,347,241 Non-income 1,828,000 1,085,880 1,848,374 1,880,607 Total comprehensive income 1,820,135 1,084,162 1,864,408 1,850,735 |
Schedule of consolidated cash flows of subsidiaries | Empresas Cablevisión Sky 2020 2019 2020 2019 Cash flows from operating activities Ps. 3,959,679 Ps. 3,756,935 Ps. 8,645,025 Ps. 8,118,541 Cash flows used in investing activities (5,824,827) (3,301,043) (5,547,152) (4,006,732) Cash flows from (used in) financing activities 2,104,416 (1,855,636) (6,392,614) (5,172,976) Net increase (decrease) in cash and cash equivalents Ps. 239,268 Ps. (1,399,744) Ps. (3,294,741) Ps. (1,061,167) |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transactions with Related Parties | |
Summary of principal transactions carried out by Group with affiliated companies, including equity investees, stockholders and entities in which stockholders have an equity interest | 2020 2019 2018 Revenues, other income and interest income: Royalties (Univision) (a) Ps. 8,155,338 Ps. 7,527,364 Ps. 7,383,540 Programming production and transmission rights (b) 707,247 485,157 960,052 Telecom services (c) 97,754 71,979 17,951 Administrative services (d) 13,561 20,598 34,653 Advertising (e) 36,385 151,296 44,625 Interest income (f) 64,809 83,625 84,987 Ps. 9,075,094 Ps. 8,340,019 Ps. 8,525,808 Costs and expenses: Donations Ps. 26,729 Ps. 26,285 Ps. 32,111 Administrative services (d) 1,529 24,899 20,403 Technical services (g) 459,960 465,250 138,262 Programming production, transmission rights and telecom (h) 674,270 666,312 1,298,197 Ps. 1,162,488 Ps. 1,182,746 Ps. 1,488,973 (a) The Group receives royalties from Univision for programming provided pursuant to an amended PLA, pursuant to which Univision has the right to broadcast certain Televisa content in the United States for a term that commenced on January 1, 2011 and ends 7.5 years after the Group has sold two-thirds of its initial investment in UHI made in December 2010. The amended PLA includes a provision for certain yearly minimum guaranteed advertising, with a value of U.S.$42.6 million (Ps.909,159), U.S.$32.3 million (Ps.625,410) and U.S.$46.6 million (Ps.891,990), for the fiscal years 2020, 2019 and 2018, respectively, to be provided by Univision, at no cost, for the promotion of certain Group businesses. This advertising does not have commercial substance for the Group, as it is related to activities that are considered ancillary to Group’s normal operations in the United States (see Notes 3, 9 and 10). (b) Services rendered to Univision in 2020, 2019 and 2018. (c) Services rendered to a subsidiary of AT&T, Inc. (“AT&T”) in 2020, 2019 and 2018, and Univision in 2018. (d) The Group receives revenue from and is charged by affiliates for various services, such as: equipment rental, security and other services, at rates which are negotiated. The Group provides management services to affiliates, which reimburse the Group for the incurred payroll and related expenses. (e) Advertising services rendered to OCEN and Univision in 2020, OCEN, Univision and Editorial Clío, Libros y Videos, S.A. de C.V. (“Editorial Clío”) in 2019 and 2018. (f) Includes mainly interest income from GTAC. (g) In 2020, 2019 and 2018, Sky received services from a subsidiary of AT&T, Inc. for play-out, uplink and downlink of signals. (h) Paid mainly to Univision and GTAC in 2020, 2019 and 2018. The Group pays royalties to Univision for programming provided pursuant to a Mexico License Agreement, under which the Group has the right to broadcast certain Univision’s content in Mexico for the same term as that of the PLA (see Notes 3, 9 and 10). It also includes payments by telecom services to GTAC in 2020, 2019 and 2018. In 2018 includes payments by transmission rights to AT&T. |
Summary of balances of receivables and payables between the Group and related parties | 2020 2019 Current receivables: UHI, including Univision (1) Ps. 692,282 Ps. 748,844 OCEN 34,137 3,968 Editorial Clío 2,308 2,933 Other 58,225 58,682 Ps. 786,952 Ps. 814,427 Current payables: UHI, including Univision (1) Ps. — Ps. 594,254 AT&T 32,310 25,447 Other 50,697 24,550 Ps. 83,007 Ps. 644,251 (1) As of December 31, 2020 and 2019, receivables from UHI related primarily to the PLA amounted to Ps.692,282 and Ps.748,844, respectively. Through December 29, 2020, the Group recognized a provision associated with a consulting arrangement entered into by the Group, UHI and an entity controlled by the former chairman of the Board of Directors of UHI, by which upon consummation of a qualified initial public offering of the shares of UHI or an alternative exit plan for the main current investors in UHI, the Group would pay the entity a portion of a defined appreciation in excess of certain preferred returns and performance thresholds of UHI. In connection with the sale of shares by the former control stockholders of UHI, which was concluded on December 29, 2020, and the dissolution of the special-purpose entity for this arrangement, the Company cancelled this provision on that date, and recognized a non-cash other income in the amount of Ps.691,221 in the statement of income for the year ended December 31, 2020 (see Note 22). |
Cost of Sales, Selling Expens_2
Cost of Sales, Selling Expenses and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cost of Sales, Selling Expenses and Administrative Expenses | |
Schedule of depreciation, amortization and other amortization included in cost of sales, selling expenses, administrative expenses and other expenses | 2020 2019 2018 Cost of sales Ps. 16,775,214 Ps. 16,035,227 Ps. 14,147,169 Selling expenses 1,473,940 1,695,616 1,694,966 Administrative expenses 3,392,496 3,809,379 4,436,746 Ps. 21,641,650 Ps. 21,540,222 Ps. 20,278,881 |
Schedule of expenses related to IFRS 16 included in cost of sales, selling expenses and administrative expenses | 2020 Expenses relating to variable lease payment not included in the measurement of the lease liability Ps. 103,340 Expenses relating to short-term leases and leases of low-value assets 234,673 Total Ps. 338,013 |
Schedule of employee benefits | 2020 2019 2018 Short-term employee benefits Ps. 17,921,266 Ps. 16,821,651 Ps. 16,000,255 Other short-term employee benefits 1,396,804 1,210,671 949,294 Share-based compensation 984,356 1,129,644 1,327,549 Post-employment benefits 292,026 259,064 171,156 Ps. 20,594,452 Ps. 19,421,030 Ps. 18,448,254 |
Other Income or Expense, Net (T
Other Income or Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income or Expense, Net | |
Schedule of other income (expense) | 2020 2019 2018 Net gain on disposition of Radiópolis (see Note 3) Ps. 932,449 Ps. — Ps. — Net gain on disposition of investments (1) — 627 3,553,463 Donations (see Note 20) (62,155) (27,786) (56,019) Legal, financial, and accounting advisory and professional services (2) (534,448) (353,937) (212,527) Gain (loss) on disposition of property and equipment 57,949 (158,658) (268,532) Impairment adjustments (3) (40,803) (67,574) (135,750) Deferred compensation (see Note 20) (225,804) (199,195) (251,787) Dismissal severance expense (4) (273,281) (533,233) (530,560) Income for cash reimbursement received from Imagina (5) 167,619 — — Other taxes paid by Sky in Central America — — (148,271) Interest income for recovered Asset Tax from prior years — 139,995 — Other, net (6) 212,102 (116,826) (387,733) Ps. 233,628 Ps. (1,316,587) Ps. 1,562,284 (1) In 2018, included a gain of Ps.3,513,829 on disposition of the Group’s equity stake in Imagina, and a gain of Ps.85,000 on disposition of the Group’s 50% equity in Televisa CJ Grand, a joint venture for a home shopping channel in Mexico (see Note 3). (2) Includes primarily advisory and professional services in connection with certain litigation and other matters (see Notes 3 and 20). (3) Includes impairment adjustments in connection with trademarks in the Group’s Publishing business (see Note 13). (4) Includes severance expense in connection with the dismissals of personnel, as a part of a continued cost reduction plan. In 2019 includes Ps.150,000 related to an accrual for restructuring certain administrative areas in the first quarter of 2020. (5) In the second quarter of 2020, the Company received a cash reimbursement from Imagina Media Audiovisual, S.L. ("Imagina"), in connection with a legal outcome that was favorable to Imagina, a former associated company. (6) In 2018, included a loss on disposition of obsolete infrastructure in the Group´s Cable segment, in the amount of Ps.249,688 . |
Finance Expense, Net (Tables)
Finance Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finance Expense, Net | |
Schedule of finance (expense) income, net | 2020 2019 2018 Interest expense (1) Ps. (10,482,168) Ps. (10,402,021) Ps. (9,707,324) Other finance expense, net (3) — (873,177) (859,642) Finance expense (10,482,168) (11,275,198) (10,566,966) Interest income (4) 1,132,935 1,529,112 1,567,100 Foreign exchange gain, net (2) 3,004,934 935,291 220,149 Other finance income, net (3) 89,323 — — Finance income 4,227,192 2,464,403 1,787,249 Finance expense, net Ps. (6,254,976) Ps. (8,810,795) Ps. (8,779,717) (1) In 2020 and 2019, interest expense included interest in the aggregate amount of Ps.426,672 and Ps.426,541, respectively, related to additional lease liabilities recognized beginning on January 1, 2019, in connection with the adoption of IFRS 16, which became effective on that date (see Notes 2 and 14). (2) In 2020, 2019 and 2018, foreign exchange gain, net, included: (i) foreign exchange gain or loss resulted primarily from the appreciation or depreciation of the Mexican peso against the U.S. dollar on the Group’s U.S. dollar-denominated monetary liability position, excluding long-term debt designated as hedging instrument of the Group’s investments in UHI and Open-Ended Fund, during the years ended December 31, 2020, 2019 and 2018; and (ii) foreign exchange gain or loss resulted primarily from the appreciation or depreciation of the Mexican peso against the U.S. dollar on the Group’s U.S. dollar-denominated monetary asset position during the years ended December 31, 2020, 2019 and 2018 (see Notes 2 (e), 4 and 14). The exchange rate of the Mexican peso against the U.S. dollar as of December 31, 2020, 2019 and 2018 was of Ps.19.9493, Ps.18.8838 and Ps.19.6730, respectively. (3) In 2020, 2019 and 2018, other finance income or expense, net, included gain or loss from derivative financial instruments (see Note 15) and a loss from changes on fair value in other financial instruments in 2019. (4) In 2020, 2019 and 2018, included primarily interest income from cash equivalents. In 2018 included primarily interest income from temporary investments. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of income tax provision | 2020 2019 2018 Income taxes, current (1) Ps. 6,802,510 Ps. 5,267,157 Ps. 6,448,961 Income taxes, deferred (1,574,610) (2,598,712) (2,058,457) Ps. 5,227,900 Ps. 2,668,445 Ps. 4,390,504 (1) The current income tax of Mexican companies payable in Mexico represented 93%, 95% and 91% of total current income taxes in 2020, 2019 and 2018, respectively. |
Schedule of maturities of income tax payable | 2021 Ps. 992,186 2022 643,171 2023 123,944 Ps. 1,759,301 |
Schedule of principal differences between income taxes computed at the statutory rate and the Group's provision for income taxes | % % % 2020 2019 2018 Statutory income tax rate 30 30 30 Differences between accounting and tax bases, including tax inflation gain that is not recognized for accounting purposes 25 5 5 Asset tax — (2) — Tax loss carryforwards 7 (13) (4) 2014 Tax Reform — 1 2 Foreign operations (2) 8 3 Disposition of investments — 3 2 Disposition of Radiópolis 3 — — Share of income in associates and joint ventures, net 2 (2) (1) Impairment loss in investment in shares of UHI 30 — — Effective income tax rate 95 30 37 |
Schedule of years of expiration of tax loss carryforwards | Tax Loss Carryforwards for Which Deferred Taxes Year of Expiration Were Recognized 2021 Ps. 157,193 2022 396,066 2023 117,080 2024 230,772 2025 8,706,619 Thereafter 12,328,495 Ps. 21,936,225 |
Schedule of deferred income taxes | The deferred income taxes as of December 31, 2019 and 2018, were principally derived from the following temporary differences and tax loss carryforwards: 2020 2019 Assets: Accrued liabilities Ps. 6,219,312 Ps. 4,352,021 Loss allowance 1,235,658 1,550,482 Customer advances 1,600,334 1,499,462 Derivative financial instruments 972,991 273,210 Property, plant and equipment, net 2,084,550 1,650,860 Prepaid expenses and other items 5,868,717 3,700,673 Tax loss carryforwards: Operating 5,481,738 7,433,425 Capital (1) 5,767,847 5,591,581 Liabilities: Investments (729,910) (6,676,401) Derivative financial instruments — — Intangible assets and transmission rights (2,549,784) (2,406,145) Deferred income tax assets of Mexican companies 25,951,453 16,969,168 Deferred income tax assets of certain foreign subsidiaries 261,929 163,747 Deferred income tax assets, net Ps. 26,213,382 Ps. 17,132,915 (1) Net of the benefit from tax loss carryforwards derived from the disposal in 2014 of the Group’s investment in GSF, in the amount of Ps.4,526,042 and Ps.3,301,222 in 2019 and 2018, respectively. The gross rollforward of deferred income tax assets, net, is as follows: 2020 2019 At January 1 Ps. Ps. Statement of income credit 1,574,610 Other comprehensive income (“OCI”) credit 7,528,693 Retained earnings charge — (342,420) Disposed operations (22,836) (68,731) At December 31 Ps. 26,213,382 Ps. The rollforward of deferred income tax assets and liabilities for the year 2019, was as follows: Credit (Charge) Credit (Charge) to Consolidated to OCI and At January 1, Statement of Retained Disposed At December 31, 2020 Income Earnings Operations 2020 Assets: Accrued liabilities Ps. 4,352,021 Ps. 1,867,291 Ps. — Ps. — Ps. 6,219,312 Loss allowance 1,550,482 (314,824) — — 1,235,658 Customer advances 1,499,462 100,872 — — 1,600,334 Derivative financial instruments 273,210 288,737 411,044 — 972,991 Property, plant and equipment, net 1,650,860 433,690 — — 2,084,550 Prepaid expenses and other items 3,700,673 2,087,586 103,294 (22,836) 5,868,717 Tax loss carryforwards 13,025,006 (1,516,219) (259,202) — 11,249,585 Deferred income tax assets of foreign subsidiaries 163,747 98,182 — — 261,929 Liabilities: Investments (6,676,401) (1,327,066) 7,273,557 — (729,910) Derivative financial instruments — — — — — Intangible assets and transmission rights (2,406,145) (143,639) — — (2,549,784) Deferred income tax assets, net Ps. 17,132,915 Ps. 1,574,610 Ps. 7,528,693 Ps. (22,836) Ps. 26,213,382 The rollforward of deferred income tax assets and liabilities for the year 2018, was as follows: Reclassification Credit (Charge) Credit (Charge) to Current to Consolidated to OCI and Assets At January 1, Statement of Retained (Liabilities) At December 31, 2019 Income Earnings Held for Sale 2019 Assets: Accrued liabilities Ps. 3,619,288 Ps. 732,733 Ps. — Ps. — Ps. 4,352,021 Loss allowance 1,344,425 206,057 — — 1,550,482 Customer advances 1,799,330 (299,868) — — 1,499,462 Derivative financial instruments — (183,364) 456,574 — 273,210 Property, plant and equipment, net 1,570,890 79,970 — — 1,650,860 Prepaid expenses and other items 1,125,387 2,586,763 57,254 (68,731) 3,700,673 Tax loss carryforwards 13,015,397 334,122 (324,513) — 13,025,006 Deferred income tax assets of foreign subsidiaries 221,392 (57,645) — — 163,747 Liabilities: Investments (7,812,896) 514,133 622,362 — (6,676,401) Derivative financial instruments (248,547) 248,547 — — — Intangible assets and transmission rights (843,409) (1,562,736) — — (2,406,145) Deferred income tax assets, net Ps. 13,791,257 Ps. 2,598,712 Ps. 811,677 Ps. (68,731) Ps. 17,132,915 The tax (charge) credit relating to components of other comprehensive income is as follows: 2020 Tax (Charge) Before Tax Credit After Tax Remeasurement of post-employment benefit obligations Ps. (344,313) Ps. 103,294 Ps. (241,019) Exchange differences on translating foreign operations 133,522 408,221 541,743 Derivative financial instruments cash flow hedges (1,370,145) 411,044 (959,101) Warrants exercised for common stock of UHI (21,899,164) 6,639,400 (15,259,764) Open-Ended Fund (904,423) 268,906 (635,517) Other equity instruments (353,496) 106,049 (247,447) Share of loss of associates and joint ventures (61,033) — (61,033) Other comprehensive loss Ps. (24,799,052) Ps. 7,936,914 Ps. (16,862,138) Current tax Ps. 408,221 Deferred tax 7,528,693 Ps. 7,936,914 2019 Tax (Charge) Before Tax Credit After Tax Remeasurement of post-employment benefit obligations Ps. (247,092) Ps. 74,128 Ps. (172,964) Remeasurement of post-employment benefit obligations of assets held for sale (3,445) 1,033 (2,412) Exchange differences on translating foreign operations (98,422) (101,323) (199,745) Derivative financial instruments cash flow hedges (1,521,912) 456,574 (1,065,338) Warrants exercisable for common stock of UHI 257,306 (77,192) 180,114 Open-Ended Fund (351,202) 112,590 (238,612) Other equity instruments (794,624) 238,387 (556,237) Other financial assets 111 (33) 78 Share of loss of associates and joint ventures (236,159) — (236,159) Other comprehensive loss Ps. (2,995,439) Ps. 704,164 Ps. (2,291,275) Current tax Ps. (449,933) Deferred tax 1,154,097 Ps. 704,164 (1) During 2018, the Group recognized a deferred income tax benefit o f Ps.201,497 related to remeasurement of post-employment benefit obligations of prior year. 2018 Tax (Charge) Before Tax Credit After Tax Remeasurement of post-employment benefit obligations (1) Ps. (97,086) Ps. 230,623 Ps. 133,537 Exchange differences on translating foreign operations (859,032) (587) (859,619) Derivative financial instruments cash flow hedges 174,532 (52,359) 122,173 Warrants exercisable for common stock of UHI (1,347,698) 404,309 (943,389) Open-Ended Fund 215,957 (64,787) 151,170 Other equity instruments 603,766 (181,130) 422,636 Other financial assets (111) 33 (78) Share of loss of associates and joint ventures (47,313) — (47,313) Other comprehensive loss Ps. (1,356,985) Ps. 336,102 Ps. (1,020,883) Current tax Ps. (587) Deferred tax 336,689 Ps. 336,102 |
2014 Tax Reform | |
Income Taxes | |
Schedule of effects of income tax payable | 2020 2019 Tax losses of subsidiaries, net Ps. 1,759,301 Ps. 3,230,248 Less: Current portion (a) 992,186 1,470,529 Non-current portion (b) Ps. 767,115 Ps. 1,759,719 (a) Accounted for as current income taxes payable in the consolidated statement of financial position as of December 31, 2020 and 2019. (b) Accounted for as non-current income taxes payable in the consolidated statement of financial position as of December 31, 2020 and 2019. |
Earnings per CPO_Share (Tables)
Earnings per CPO/Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per CPO/Share | |
Summary of weighted average of outstanding total shares, CPOs and Series "A", Series "B", Series "D" and Series "L" Shares (not in the form of CPO units) | At December 31, 2020 and 2019, the weighted average of outstanding total shares, CPOs and Series “A”, Series “B”, Series “D” and Series “L” Shares (not in the form of CPO units), was as follows (in thousands): 2020 2019 Total Shares 330,685,559 338,375,192 CPOs 2,351,464 2,412,794 Shares not in the form of CPO units: Series “A” Shares 55,563,596 56,077,584 Series “B” Shares 187 187 Series “D” Shares 239 239 Series “L” Shares 239 239 |
Summary of basic earnings per CPO and per each Series "A", Series "B", Series "D" and Series "L" Share (not in the form of a CPO unit) | 2020 2019 2018 Per Per Per Per Per Per CPO Share (*) CPO Share (*) CPO Share (*) Net income attributable to stockholders of the Company Ps. (0.44) Ps. 0.00 Ps. 1.60 Ps. 0.01 Ps. 2.07 Ps. 0.02 (*) Series “A”, “B”, “D” and “L” Shares not in the form of CPO units. |
Summary of diluted earnings per CPO and per Share attributable to stockholders of the Company | 2020 2019 Total Shares 352,237,926 354,827,433 CPOs 2,486,783 2,508,916 Shares not in the form of CPO units: Series “A” Shares 58,926,613 58,926,613 Series “B” Shares 2,357,208 2,357,208 Series “D” Shares 239 239 Series “L” Shares 239 239 |
Summary of diluted earnings per CPO and per each Series "A", Series "B", Series "D" and Series "L" Share (not in the form of a CPO unit) | 2020 2019 2018 Per Per Per Per Per Per CPO Share (*) CPO Share (*) CPO Share (*) Net income attributable to stockholders of the Company Ps. (0.41) Ps. 0.00 Ps. 1.53 Ps. 0.01 Ps. 1.96 Ps. 0.02 (*) Series “A”, “B”, “D” and “L” Shares not in the form of CPO units. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Information | |
Schedule of information by segment and a reconciliation to consolidated total | Intersegment Consolidated Segment Total Revenues Revenues Revenues Income 2020: Cable Ps. 45,367,108 Ps. 710,357 Ps. 44,656,751 Ps. 18,898,301 Sky 22,134,701 581,270 21,553,431 9,135,346 Content 32,613,007 4,679,805 27,933,202 12,360,797 Other Businesses 4,276,074 1,281,096 2,994,978 116,480 Segment totals 104,390,890 7,252,528 97,138,362 40,510,924 Reconciliation to consolidated amounts: Disposed operations (see Note 3) 223,272 — 223,272 (3,991) Eliminations and corporate expenses (7,252,528) (7,252,528) — (1,954,406) Depreciation and amortization expense — — — (21,260,787) Consolidated net sales and income before other income 97,361,634 — 97,361,634 17,291,740 (1) Other income, net — — — 233,628 Consolidated net sales and operating income Ps. 97,361,634 Ps. — Ps. 97,361,634 Ps. 17,525,368 (2) Intersegment Consolidated Segment Total Revenues Revenues Revenues Income 2019: Cable Ps. 41,701,982 Ps. 591,618 Ps. 41,110,364 Ps. 17,797,571 Sky 21,347,078 437,275 20,909,803 9,121,221 Content 35,060,534 3,589,407 31,471,127 12,649,135 Other Businesses 8,200,212 772,793 7,427,419 1,464,249 Segment totals 106,309,806 5,391,093 100,918,713 41,032,176 Reconciliation to consolidated amounts: Disposed operations (see Note 3) 841,437 2,969 838,468 258,885 Eliminations and corporate expenses (5,394,062) (5,394,062) — (1,960,648) Depreciation and amortization expense — — — (21,008,796) Consolidated net sales and income before other expense 101,757,181 — 101,757,181 18,321,617 (1) Other expense, net — — — (1,316,587) Consolidated net sales and operating income Ps. 101,757,181 Ps. — Ps. 101,757,181 Ps. 17,005,030 (2) Intersegment Consolidated Segment Total Revenues Revenues Revenues Income 2018: Cable Ps. 36,233,042 Ps. 560,186 Ps. 35,672,856 Ps. 15,302,500 Sky 22,002,216 420,979 21,581,237 9,767,329 Content 39,223,668 3,162,091 36,061,577 14,855,109 Other Businesses (3) 7,715,489 661,422 7,054,067 410,486 Segment totals 105,174,415 4,804,678 100,369,737 40,335,424 Reconciliation to consolidated amounts: Disposed operations (see Note 3) 920,009 7,413 912,596 343,799 Eliminations and corporate expenses (4,812,091) (4,812,091) — (2,154,747) Depreciation and amortization expense — — — (19,834,202) Consolidated net sales and income before other income 101,282,333 — 101,282,333 18,690,274 (1) Other income, net — — — 1,562,284 Consolidated net sales and operating income Ps. 101,282,333 Ps. — Ps. 101,282,333 Ps. 20,252,558 (2) (1) This amount represents income before other income or expense, net. (2) This amount represents consolidated operating income. (3) In 2018, the Radio operations were previously reported as part of the Other Businesses segment. In 2020, the Radio operations for 2019 and 2018, were classified as disposed operations for comparison purposes. |
Schedule of segment information about assets, liabilities, and additions to property, plant and equipment | Segment Additions to Segment Assets Liabilities Property, Plant at Year-End at Year-End and Equipment 2020: Continuing operations: Cable Ps. 112,478,015 Ps. 22,295,808 Ps. 14,182,848 Sky 26,423,707 10,696,397 5,361,494 Content 80,237,558 27,427,941 479,731 Other Businesses 8,177,183 3,936,289 107,665 Total Ps. 227,316,463 Ps. 64,356,435 Ps. 20,131,738 2019: Continuing operations: Cable Ps. 105,841,104 Ps. 21,637,395 Ps. 12,995,448 Sky 27,755,967 12,902,845 4,039,020 Content 78,336,679 31,555,070 1,690,805 Other Businesses 10,268,185 4,530,712 383,011 Total Ps. 222,201,935 Ps. 70,626,022 Ps. 19,108,284 2018: Continuing operations: Cable Ps. 99,678,509 Ps. 21,294,108 Ps. 12,835,918 Sky 30,350,221 13,680,854 4,020,405 Content 83,525,004 39,960,653 1,349,954 Other Businesses 9,753,075 3,564,429 502,214 Total Ps. 223,306,809 Ps. 78,500,044 Ps. 18,708,491 |
Schedule of segment assets reconciliation to total assets | 2020 2019 Segment assets Ps. 227,316,463 Ps. 222,201,935 Investments attributable to: Cable 515,002 567,435 Content (1) 29,096,777 53,264,422 Other Businesses 204,464 196,474 Goodwill attributable to: Cable 13,794,684 13,794,684 Content 241,973 241,973 Other Businesses 76,969 76,969 Total assets Ps. 271,246,332 Ps. 290,343,892 (1) Includes goodwill attributable to equity investments of Ps.359,613 in 2020 and 2019 (see Note 10). |
Schedule of segment liabilities reconciliation to total liabilities | 2020 2019 Segment liabilities Ps. 64,356,435 Ps. 70,626,022 Debt not allocated to segments 118,950,864 114,092,637 Total liabilities Ps. 183,307,299 Ps. 184,718,659 |
Schedule of geographical segment information | Geographical segment information: Additions to Segment Assets at Property, Plant and Total Net Sales Year-End Equipment 2020: Mexico Ps. 84,664,293 Ps. 215,395,954 Ps. 19,707,436 Other countries (1) 12,697,341 11,920,509 424,302 Ps. 97,361,634 Ps. 227,316,463 Ps. 20,131,738 2019: Mexico Ps. 88,388,569 Ps. 211,592,987 Ps. 18,804,629 Other countries (1) 13,368,612 10,608,948 303,655 Ps. 101,757,181 Ps. 222,201,935 Ps. 19,108,284 2018: Mexico Ps. 85,011,567 Ps. 216,146,757 Ps. 18,696,116 Other countries (1) 16,270,766 7,160,052 12,375 Ps. 101,282,333 Ps. 223,306,809 Ps. 18,708,491 (1) The United States is the largest country from which revenue is derived. Net sales are attributed to geographical segment based on the location of customers. Disaggregation of Total Revenues The table below present total revenues for each reportable segment disaggregated by major service/product lines and primary geographical market for the years ended December 31, 2020, 2019 and 2018: Domestic Export Abroad Total 2020: Cable: Digital TV Service (a) Ps. 16,549,458 Ps. — Ps. — Ps. 16,549,458 Advertising 1,633,201 — — 1,633,201 Broadband Services (a) 16,540,687 — — 16,540,687 Telephony (a) 4,382,964 — — 4,382,964 Other Services 702,023 — — 702,023 Enterprise Operations 5,245,443 — 313,332 5,558,775 Sky: DTH Broadcast Satellite TV (a) 19,398,285 — 1,569,999 20,968,284 Advertising 1,112,662 — — 1,112,662 Pay-Per-View 42,291 — 11,464 53,755 Content: Advertising 16,180,397 169,362 — 16,349,759 Network Subscription Revenue 4,322,535 1,143,657 — 5,466,192 Licensing and Syndication 1,572,659 9,224,397 — 10,797,056 Other Businesses: Gaming 959,985 — — 959,985 Soccer, Sports and Show Business Promotion 1,382,708 146,324 — 1,529,032 Publishing - Magazines 269,768 — 942 270,710 Publishing - Advertising 173,645 — — 173,645 Publishing Distribution 309,673 — — 309,673 Feature Film Production and Distribution 915,165 — 117,864 1,033,029 Segment total 91,693,549 10,683,740 2,013,601 104,390,890 Disposed operations: Radio - Advertising (see Note 3) 223,272 — — 223,272 Intersegment eliminations (7,252,528) — — (7,252,528) Consolidated total revenues Ps. 84,664,293 Ps. 10,683,740 Ps. 2,013,601 Ps. 97,361,634 Domestic Export Abroad Total 2019: Cable: Digital TV Service (a) Ps. 16,298,079 Ps. — Ps. — Ps. 16,298,079 Advertising 1,507,831 — — 1,507,831 Broadband Services (a) 14,544,473 — — 14,544,473 Telephony (a) 3,658,121 — — 3,658,121 Other Services 801,937 — — 801,937 Enterprise Operations 4,626,396 — 265,145 4,891,541 Sky: DTH Broadcast Satellite TV (a) 18,918,077 — 1,359,079 20,277,156 Advertising 953,634 — — 953,634 Pay-Per-View 98,539 — 17,749 116,288 Content: Advertising 19,236,014 223,434 — 19,459,448 Network Subscription Revenue 3,832,716 1,160,459 — 4,993,175 Licensing and Syndication 1,794,636 8,813,275 — 10,607,911 Other Businesses: Gaming 2,974,284 — — 2,974,284 Soccer, Sports and Show Business Promotion 1,821,605 1,182,972 — 3,004,577 Publishing - Magazines 393,763 — 18,076 411,839 Publishing - Advertising 246,309 — 23,461 269,770 Publishing Distribution 337,685 — — 337,685 Feature Film Production and Distribution 890,927 787 310,343 1,202,057 Segment total 92,935,026 11,380,927 1,993,853 106,309,806 Disposed operations: Radio - Advertising (see Note 3) 841,437 — — 841,437 Intersegment eliminations (5,387,894) — (6,168) (5,394,062) Consolidated total revenues Ps. 88,388,569 Ps. 11,380,927 Ps. 1,987,685 Ps. 101,757,181 Domestic Export Abroad Total 2018: Cable: Digital TV Service (a) Ps. 14,281,536 Ps. — Ps. — Ps. 14,281,536 Advertising 1,260,117 — — 1,260,117 Broadband Services (a) 13,034,172 — — 13,034,172 Telephony (a) 2,588,767 — — 2,588,767 Other Services 544,347 — — 544,347 Telecommunications Networks 4,361,586 — 162,517 4,524,103 Sky: DTH Broadcast Satellite TV (a) 19,478,307 — 1,374,849 20,853,156 Advertising 968,853 — — 968,853 Pay-Per-View 152,129 — 28,078 180,207 Content: Advertising 20,932,533 222,369 — 21,154,902 Network Subscription Revenue 3,500,375 1,313,907 — 4,814,282 Licensing and Syndication 1,437,081 11,817,403 — 13,254,484 Other Businesses: Gaming 2,676,384 — — 2,676,384 Soccer, Sports and Show Business Promotion 1,639,073 145,462 — 1,784,535 Publishing - Magazines 550,777 — 104,281 655,058 Publishing - Advertising 482,943 — 181,514 664,457 Publishing Distribution 270,624 — 40,148 310,772 Feature Film Production and Distribution 735,928 3,569 884,786 1,624,283 Segment total 88,895,532 13,502,710 2,776,173 105,174,415 Disposed operations: Radio - Advertising (see Note 3) 920,009 — — 920,009 Intersegment eliminations (4,803,974) — (8,117) (4,812,091) Consolidated total revenues Ps. 85,011,567 Ps. 13,502,710 Ps. 2,768,056 Ps. 101,282,333 (a) Digital TV Service revenues include revenue from leasing set-top equipment to subscribers in the Cable segment in the amount of Ps. 5,514,984, Ps.5,289,996 and Ps.4,577,513, for the years ended December 31, 2020, 2019 and 2018, respectively. DTH Broadcast Satellite TV revenues include revenue from leasing set-top equipment to subscribers in the Sky segment in the amount of Ps.9,212,317, Ps.9,232,152 and Ps.9,971,318, for the years ended December 31, 2020, 2019 and 2018, respectively. Revenue from leasing set-top equipment to subscribers is recognized when services are rendered to such subscribers. Set-top equipment is part of the Group’s property, plant and equipment and is leased to subscribers through operating lease contracts. |
Schedule of net sales from external customers | 2020 2019 2018 Services Ps. 71,745,105 Ps. 75,988,820 Ps. 72,737,313 Royalties 9,907,313 10,005,977 12,600,061 Goods 805,690 932,198 1,163,836 Leases (1) 14,903,526 14,830,186 14,781,123 Total Ps. 97,361,634 Ps. 101,757,181 Ps. 101,282,333 (1) This line includes primarily revenue from leasing set-top equipment to subscribers in the Cable and Sky segments, which is recognized when services are rendered to such subscribers. Set-top equipment is part of the Group’s property and equipment and is leased to subscribers through operating lease contracts. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Schedule of aggregate minimum annual commitments (undiscounted) | At December 31, 2020, the Group had the following aggregate minimum annual commitments (undiscounted) for the use of satellite transponders: Thousands of U.S. Dollars 2021 U.S.$ 6,410 2022 4,163 2023 2,988 2024 and thereafter 2,914 U.S.$ 16,475 |
Schedule of reconciliation of the non-cancellable lease commitments to the lease liabilities | A reconciliation of the non-cancellable lease commitments as of December 31, 2018 and the initial measurement of the lease liabilities under IFRS 16 were as follow: Operating lease commitments disclosed under IAS 17 in the Group's consolidated financial statements as of December 31, 2018 Ps. 7,160,431 Discounted using the incremental borrowing rate at January 1, 2019 (2,669,751) Finance lease liabilities recognized at December 31, 2018 5,317,944 Adjustments as a result of a different treatment of extension, termination options and short-term and low-value exemptions 306,632 Lease liabilities recognized at January 1, 2019 Ps. 10,115,256 |
Changes in Accounting Policie_2
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of initial application of standards or interpretations [line items] | |
Schedule of cumulative adjustments for adoption of IFRS 9 - Expected credit losses | Earnings Income Tax (Losses) Benefit Net Controlling interest Ps. (234,129) Ps. 67,101 Ps. (167,028) Non-controlling interests (47,465) 12,029 (35,436) Effect on equity at January 1, 2018 Ps. (281,594) Ps. 79,130 Ps. (202,464) |
Schedule of cumulative adjustments for adoption of IFRS 9 - New classification of financial instruments | Earnings Income Tax (Losses) Benefit Net Effect on equity at January 1, 2018 Ps. (1,182,760) Ps. 354,828 Ps. (827,932) |
Schedule of main effects from reclassification of financial instruments | On January 1, 2018 (the date of initial application of IFRS 9), the Group’s management assessed which business models applied to the financial assets held by the Group and classified its financial instruments into the appropriate IFRS 9 categories. The main effects resulting from this reclassification were as follows: Measurement Category Carrying Amount Original New Original New (IAS 39) (IFRS 9) (IAS 39) (IFRS 9) Difference Current assets Cash and cash equivalents: Cash and bank accounts Ps. 1,761,260 Ps. 1,761,260 Ps. — Short-term investments FVIL FVIL 37,021,338 37,021,338 — Other financial assets (classified as non-current financial assets) FVIL FVOCIL 5,942,500 5,942,500 — Current maturities of non-current financial assets Amortized cost Amortized cost 23,529 23,529 — Trade notes and accounts receivable: Trade notes and accounts receivable Amortized cost Amortized cost 24,727,073 24,727,073 — Derivative financial instruments: TVI’s options FVIL FVIL 100,700 100,700 — Empresas Cablevisión' options FVIL FVIL 110,137 110,137 — Options FVIL FVIL 795,010 795,010 — Forward FVIL FVIL 397,037 397,037 — Non-current assets Derivative financial instruments: TVI’s interest rate swaps Hedge accounting Hedge accounting 84,109 84,109 — Interest rate swaps Hedge accounting Hedge accounting 664,724 664,724 — Forward Hedge accounting Hedge accounting 112,157 112,157 — Investments in financial instruments: Warrants issued by UHI FVOCIL FVOCIL 36,395,183 36,395,183 — Open-Ended Fund FVOCIL FVOCIL 7,297,577 7,297,577 — Financial assets held to maturity Amortized cost Amortized cost 287,605 287,605 — Other 16,487 16,487 — Current liabilities Debt, lease liabilities and other notes payable: Current portion of long-term debt Amortized cost Amortized cost 2,103,870 2,103,870 — Non-current liabilities Debt, lease liabilities and other notes payable: Long-term debt Amortized cost Amortized cost 121,993,128 121,993,128 — |
Schedule of costs to obtain contracts with customers | Cable Sky Total Contract costs: At January 1, 2020 Ps. 1,436,758 Ps. 2,254,479 Ps. 3,691,237 Additions 1,163,038 1,335,300 2,498,338 Amortization (572,105) (1,075,913) (1,648,018) Total Contract Costs at December 31, 2020 2,027,691 2,513,866 4,541,557 Less: Current Contract Costs 640,656 957,792 1,598,447 Total Non-current Contract Costs Ps. 1,387,035 Ps. 1,556,074 Ps. 2,943,110 Cable Sky Total Contract costs: At January 1, 2019 Ps. 1,133,727 Ps. 2,236,932 Ps. 3,370,659 Additions 753,473 1,017,006 1,770,479 Amortization (450,442) (999,459) (1,449,901) Total Contract Costs at December 31, 2019 1,436,758 2,254,479 3,691,237 Less: Current Contract Costs 477,167 902,233 1,379,400 Total Non-current Contract Costs Ps. 959,591 Ps. 1,352,246 Ps. 2,311,837 |
Schedule of cumulative adjustment for adoption of IFRS 15 | Retained Earnings Income Taxes Net Controlling interest Ps. 2,272,350 Ps. (672,898) Ps. 1,599,452 Non-controlling interests 1,112,854 (327,651) 785,203 Effect on equity at January 1, 2018 Ps. 3,385,204 Ps. (1,000,549) Ps. 2,384,655 |
Schedule of operating leases and finance leases | December 31, 2020 December 31, 2019 January 1, 2019 Long-term Lease Agreements Assets (Liabilities) Assets (Liabilities) Assets (Liabilities) Right-of-use assets, net Ps. 4,392,420 Ps. 4,502,590 Ps. 4,797,312 Lease liabilities (1) (4,745,292) (4,641,705) (4,797,312) Net effect Ps. (352,872) Ps. (139,115) Ps. — (1) Current portion of lease liabilities as of December 31 , 2020, December 31 and January 1, 2019, amounted to Ps.524,458, Ps.533,260 and Ps.462,513, respectively. |
Property, plant and equipment, net | |
Disclosure of initial application of standards or interpretations [line items] | |
Schedule of operating leases and finance leases | December 31, 2020 December 31, 2019 January 1, 2019 Long-term Lease Agreements Assets (Liabilities) Assets (Liabilities) Assets (Liabilities) Right-of-use assets, net Ps. 2,819,745 Ps. 3,050,462 Ps. 3,402,869 Lease liabilities (1) (4,547,059) (4,721,815) (5,317,944) Net effect Ps. (1,727,314) Ps. (1,671,353) Ps. (1,915,075) (1) Current portion of lease liabilities as of December 31, 2020, December 31 and January 1, 2019, amounted to Ps. 753,296, Ps.754,506 and Ps.651,800 , respectively. |
Corporate Information (Details)
Corporate Information (Details) - item | Dec. 29, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Corporate Information | |||
Number of countries in which the group distributes content | 70 | ||
Number of pay tv channels | 25 | ||
Proportion of warrants exercisable for common stock | 35.90% | 35.90% | 35.90% |
Accounting Policies - Subsidiar
Accounting Policies - Subsidiaries (Details) - MXN ($) $ in Thousands | Nov. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated subsidiaries information | ||||
Administrative expenses | $ 12,713,657 | $ 13,269,191 | $ 13,729,325 | |
Sistema Radiopolis, S.A. de C.V. (Radiopolis) and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Ownership interest in subsidiary sold (as a percent) | 50.00% | 50.00% | ||
Content and Other Businesses | Grupo Telesistema, S.A. de C.V. and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Content and Other Businesses | Ulvik, S.A. de C.V. | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Content | Televisa, S.A. de C.V. ("Televisa") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Content | Television Independiente de Mxico, S.A. de C.V. | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Content | G.Televisa-D, S.A. de C.V. | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Content | Multimedia Telecom, S.A. de C.V. ("Multimedia Telecom") and subsidiary | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Sky | Innova, S. de R.L. de C.V. ("Innova") and subsidiaries (collectively, "Sky") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 58.70% | 58.70% | 58.70% | |
Cable and Sky | Corporativo Vasco de Quiroga, S.A. de C.V. ("CVQ") and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Cable | Empresas Cablevision, S.A.B. de C.V. and subsidiaries (collectively, "Empresas Cablevision") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 51.20% | 51.20% | 51.20% | |
Cable | Subsidiaries engaged in the Cablemas business (collectively, "Cablemas") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Cable | Televisin Internacional, S.A. de C.V. and subsidiaries (collectively, "TVI") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Cable | Cablestar, S.A. de C.V. and subsidiaries (collectively, "Bestel") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 66.20% | 66.20% | 66.20% | |
Cable | Arretis, S.A.P.I. de C.V. and subsidiaries (collectively, "Cablecom") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Cable | Subsidiaries engaged in the Telecable business (collectively, "Telecable") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Cable | FTTH de Mxico, S.A. de C.V. | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Other Businesses | Controladora de Juegos y Sorteos de Mxico, S.A. de C.V. and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Other Businesses | Editorial Televisa, S.A. de C.V. and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Other Businesses | Grupo Distribuidoras Intermex, S.A. de C.V. and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Other Businesses | Villacezan, S.A. de C.V. ("Villacezan") and subsidiaries | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 100.00% | 100.00% | 100.00% | |
Broadcasting concessions | ||||
Consolidated subsidiaries information | ||||
Renewal cost for concession | $ 5,754,543 | |||
Administrative expenses | $ 1,194 | |||
Useful lives | 20 years | |||
Common shares | Content | Multimedia Telecom, S.A. de C.V. ("Multimedia Telecom") and subsidiary | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 95.30% | |||
Common shares | Content | Comunicaciones Tieren, S.A. de C.V. ("Tieren") | ||||
Consolidated subsidiaries information | ||||
Company's ownership interest | 4.70% |
Accounting Policies - Investmen
Accounting Policies - Investments in Associates and Joint Ventures (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
UHI | ||
Disclosure of associates | ||
Equity stake | 35.90% | 10.00% |
Accounting Policies - Translati
Accounting Policies - Translation of Foreign Operations (Details) $ in Thousands, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) |
Net investment | UHI | ||||
Detailed information about hedges | ||||
Financial instruments designated as hedging instruments, at fair value | $ 1,074 | $ 21,424,180 | $ 433.7 | $ 8,189,662 |
Fair value hedge of foreign currency | UHI | ||||
Detailed information about hedges | ||||
Financial instruments designated as hedging instruments, at fair value | 871.6 | 17,387,699 | 1,788.6 | 33,775,451 |
Open Ended Fund | Fair value hedge of foreign currency | ||||
Detailed information about hedges | ||||
Financial instruments designated as hedging instruments, at fair value | $ 56.9 | $ 1,135,803 | $ 248.3 | $ 4,688,202 |
Accounting Policies - Cash and
Accounting Policies - Cash and Cash Equivalents (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. dollar | ||
Cash and Cash Equivalents and Temporary Investments | ||
Average yield for cash equivalents and temporary investments | 0.38% | 2.20% |
Mexican peso | ||
Cash and Cash Equivalents and Temporary Investments | ||
Average yield for cash equivalents and temporary investments | 5.40% | 8.09% |
Accounting Policies - Transmiss
Accounting Policies - Transmission Rights and Programming (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Transmission rights | |
Transmission Rights and Programming | |
Estimated useful lives | 25 years |
Accounting Policies - Property,
Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 20 years |
Buildings | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 65 years |
Building Improvements | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Building Improvements | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 20 years |
Technical Equipment | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Technical Equipment | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 30 years |
Satellite Transponders | |
Property, plant and equipment | |
Estimated useful lives | 15 years |
Furniture and Fixtures | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Furniture and Fixtures | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 10 years |
Transportation Equipment | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 4 years |
Transportation Equipment | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 8 years |
Computer Equipment | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Computer Equipment | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 6 years |
Leasehold Improvements | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Leasehold Improvements | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 30 years |
Accounting Policies - Intangibl
Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Trademarks | |
Intangible Assets and Goodwill | |
Estimated useful lives | 4 years |
Licenses | Minimum | |
Intangible Assets and Goodwill | |
Estimated useful lives | 3 years |
Licenses | Maximum | |
Intangible Assets and Goodwill | |
Estimated useful lives | 10 years |
Subscriber lists | Minimum | |
Intangible Assets and Goodwill | |
Estimated useful lives | 4 years |
Subscriber lists | Maximum | |
Intangible Assets and Goodwill | |
Estimated useful lives | 5 years |
Payments for renewal of concessions | |
Intangible Assets and Goodwill | |
Estimated useful lives | 20 years |
Other intangible assets | Minimum | |
Intangible Assets and Goodwill | |
Estimated useful lives | 3 years |
Other intangible assets | Maximum | |
Intangible Assets and Goodwill | |
Estimated useful lives | 20 years |
Accounting Policies - Share-bas
Accounting Policies - Share-based Payment Agreements (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Agreements | |||
Share-based compensation expense | $ 984,356 | $ 1,129,644 | $ 1,327,549 |
Share-based compensation credited in consolidated stockholder's equity | $ 962,806 | $ 1,108,094 | $ 1,305,999 |
Accounting Policies - Leases (D
Accounting Policies - Leases (Details) | Jan. 01, 2019 |
U.S. dollars leases | |
Leases | |
Lessee's incremental borrowing rate applied to the lease liabilities on adoption of IFRS 16 | 4.70% |
Mexican peso leases | |
Leases | |
Lessee's incremental borrowing rate applied to the lease liabilities on adoption of IFRS 16 | 10.60% |
Acquisitions, Investments, Di_3
Acquisitions, Investments, Dispositions and Assets Held for Sale - Imagina Media Audiovisual, S.L. (Details) - Imagina $ in Thousands, € in Millions | 1 Months Ended | ||||||||
Feb. 28, 2018 | Dec. 31, 2020EUR (€) | Dec. 31, 2020MXN ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019MXN ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018MXN ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018MXN ($) | |
Disclosure of associates | |||||||||
Proportion of sale of ownership interest in associate | 19.90% | ||||||||
Sale consideration | € 284.5 | $ 6,603,751 | |||||||
Cash consideration received for the disposal of assets and liabilities | 251.3 | 5,832,360 | |||||||
Amount held in Escrow for litigation costs | € 2.2 | $ 54,302 | € 5.4 | $ 114,127 | € 33.2 | $ 771,391 | |||
Amount released from escrow | € 16.1 | $ 366,354 | |||||||
Amount used for escrow | € 1.5 | $ 33,558 |
Acquisitions, Investments, Di_4
Acquisitions, Investments, Dispositions and Assets Held for Sale - Axtel (Details) - Axtel $ in Thousands | Dec. 17, 2018MXN ($)item |
Detailed information about business combination | |
Cash transferred | $ 5,466,872 |
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed | |
Cash and cash equivalents | 1,000 |
Trade notes and accounts receivables | 169,036 |
Other accounts receivable primarily value-added tax | 875,331 |
Total current assets | 1,045,367 |
Property and equipment | 2,130,108 |
Intangible assets and goodwill | 2,582,713 |
Total assets | 5,758,188 |
Other current liabilities | 291,316 |
Total liabilities | 291,316 |
Total net assets | $ 5,466,872 |
Cable | |
Detailed information about business combination | |
Revenue generating units | item | 553,226 |
Cable | Video Service | |
Detailed information about business combination | |
Revenue generating units | item | 97,622 |
Cable | Broadband Services | |
Detailed information about business combination | |
Revenue generating units | item | 227,802 |
Cable | Voice Service | |
Detailed information about business combination | |
Revenue generating units | item | 227,802 |
Acquisitions, Investments, Di_5
Acquisitions, Investments, Dispositions and Assets Held for Sale - Ocen (Details) - OCEN and subsidiaries - MXN ($) $ in Thousands | Jan. 01, 2020 | Jul. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of associates [line items] | ||||
Proportion of sale of ownership interest in associate | 40.00% | |||
Cash consideration received for the disposal of assets and liabilities | $ 5,206,000 | |||
Assets held for sale | $ 694,239 | |||
Carrying value of investments in OCEN | $ 693,970 | |||
Share of income in OCEN for 2019 | $ 147,975 | $ 147,975 |
Acquisitions, Investments, Di_6
Acquisitions, Investments, Dispositions and Assets Held for Sale - Radiopolis (Details) $ in Thousands | Jul. 31, 2020MXN ($) | Jun. 30, 2020MXN ($)item | Mar. 31, 2020MXN ($)item | Jul. 31, 2019MXN ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018 |
Disclosure of subsidiaries [line items] | |||||||
Assets | $ 271,246,332 | $ 290,343,892 | |||||
Liabilities | 183,307,299 | $ 184,718,659 | |||||
Pre-tax gain of disposition on Radipolis | 932,449 | ||||||
Sistema Radiopolis, S.A. de C.V. (Radiopolis) and subsidiaries | |||||||
Disclosure of subsidiaries [line items] | |||||||
Ownership interest in subsidiary sold (as a percent) | 50.00% | 50.00% | |||||
Aggregate cash proceeds | $ 1,248,000 | ||||||
Assets | $ 1,675,426 | ||||||
Liabilities | $ 432,812 | ||||||
Number of cash payments | item | 2 | 2 | |||||
Cash payment | $ 534,605 | $ 110,000 | $ 603,395 | ||||
Dividends received | $ 285,669 | ||||||
Pre-tax gain of disposition on Radipolis | $ 932,449 |
Financial Risk Management (Deta
Financial Risk Management (Details) € in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Mar. 31, 2021$ / $ | Dec. 31, 2020COP ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2020CLP ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2020CHF (SFr)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2020ARS ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2020EUR (€)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2020USD ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2020MXN ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019COP ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019CLP ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019CHF (SFr)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019ARS ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019EUR (€)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019USD ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2019MXN ($)$ / €$ / $$ / $$ / SFr$ / $$ / $ | Dec. 31, 2018$ / $ |
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Foreign exchange rate | $ / $ | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 19.6730 | |
Assets | $ | $ 271,246,332 | $ 290,343,892 | ||||||||||||||
Liabilities | $ | 183,307,299 | 184,718,659 | ||||||||||||||
Foreign currency risk | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Foreign exchange rate | $ / $ | 20.4692 | |||||||||||||||
Foreign currency risk | U.S. dollar | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | $ 1,154,453 | 23,030,529 | $ 1,258,623 | 23,767,585 | ||||||||||||
Risk exposure on liabilities | $ 5,161,009 | $ 102,958,517 | $ 5,257,954 | $ 99,290,152 | ||||||||||||
Foreign exchange rate | $ / $ | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 19.9493 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | 18.8838 | ||
Foreign currency risk | U.S. dollar | Long-term Debt Designated as Hedging Instrument of the Group's Investment in UHI | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on liabilities | $ 1,130,900 | $ 22,559,983 | $ 2,470,600 | $ 46,653,315 | ||||||||||||
Foreign currency risk | Euros | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | € 19,260 | 469,509 | € 51,398 | 1,089,612 | ||||||||||||
Risk exposure on liabilities | € 1,151 | $ 28,058 | € 912 | $ 19,334 | ||||||||||||
Foreign exchange rate | $ / € | 24.3774 | 24.3774 | 24.3774 | 24.3774 | 24.3774 | 24.3774 | 24.3774 | 21.1995 | 21.1995 | 21.1995 | 21.1995 | 21.1995 | 21.1995 | 21.1995 | ||
Foreign currency risk | Swiss francs | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | SFr 438 | $ 9,868 | SFr 3,071 | $ 59,990 | ||||||||||||
Risk exposure on liabilities | SFr 659 | $ 14,847 | SFr 4,069 | $ 79,486 | ||||||||||||
Foreign exchange rate | $ / SFr | 22.5299 | 22.5299 | 22.5299 | 22.5299 | 22.5299 | 22.5299 | 22.5299 | 19.5345 | 19.5345 | 19.5345 | 19.5345 | 19.5345 | 19.5345 | 19.5345 | ||
Foreign currency risk | Chilean pesos | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | $ 327,357 | $ 9,166 | $ 110,984 | $ 2,819 | ||||||||||||
Risk exposure on liabilities | $ 632,679 | $ 17,715 | $ 689,094 | $ 17,503 | ||||||||||||
Foreign exchange rate | $ / $ | 0.0280 | 0.0280 | 0.0280 | 0.0280 | 0.0280 | 0.0280 | 0.0280 | 0.0254 | 0.0254 | 0.0254 | 0.0254 | 0.0254 | 0.0254 | 0.0254 | ||
Foreign currency risk | Colombian pesos | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | $ 2,744,483 | $ 15,918 | ||||||||||||||
Risk exposure on liabilities | $ 8,246,548 | $ 47,005 | $ 4,195,172 | $ 24,332 | ||||||||||||
Foreign exchange rate | $ / $ | 0.0057 | 0.0057 | 0.0057 | 0.0057 | 0.0057 | 0.0057 | 0.0057 | 0.0058 | 0.0058 | 0.0058 | 0.0058 | 0.0058 | 0.0058 | 0.0058 | ||
Foreign currency risk | Argentinean pesos | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | $ 66,482 | $ 15,763 | $ 28,269 | $ 8,916 | ||||||||||||
Foreign exchange rate | $ / $ | 0.2371 | 0.2371 | 0.2371 | 0.2371 | 0.2371 | 0.2371 | 0.2371 | 0.3154 | 0.3154 | 0.3154 | 0.3154 | 0.3154 | 0.3154 | 0.3154 | ||
Foreign currency risk | Other currencies | ||||||||||||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||||||||||||
Risk exposure on assets | $ | $ 5,832 | |||||||||||||||
Risk exposure on liabilities | $ | $ 3,075 | |||||||||||||||
Assets | $ | $ 7,713 | |||||||||||||||
Liabilities | $ | $ 3,332 |
Financial Risk Management - Net
Financial Risk Management - Net Monetary Position (Details) - Foreign currency risk $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | |
Disclosure of nature and extent of risks arising from financial instruments | ||||||
U.S. dollar equivalent monetary assets | $ 1,125.1 | $ 1,253.3 | ||||
U.S. dollar equivalent monetary liabilities | (5,115.9) | (5,231.8) | ||||
Net liability position | (3,990.8) | (3,978.5) | ||||
Euros | ||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||
U.S. dollar equivalent monetary assets | 24.5 | 57.6 | ||||
U.S. dollar equivalent monetary liabilities | $ (2) | $ (5) | ||||
U.S. dollar | ||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||
Percentage of reasonably possible increase in risk assumption | 10.00% | 10.00% | 10.00% | 10.00% | ||
Percentage of reasonably possible decrease in risk assumption | 10.00% | 10.00% | 10.00% | 10.00% | ||
Hypothetical foreign exchange gain | $ 5,705,342 | $ 2,847,471 | ||||
Hypothetical foreign exchange loss | $ 5,705,342 | $ 2,847,471 | ||||
Long-term Debt Designated as Hedging Instrument of the Group's Investment in UHI | ||||||
Disclosure of nature and extent of risks arising from financial instruments | ||||||
U.S. dollar equivalent monetary liabilities | $ (1,130.9) | $ (22,559,983) | $ (2,470.6) | $ (46,653,315) |
Financial Risk Management - Cas
Financial Risk Management - Cash Flow Interest Rate Risk (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Warrants issued by UHI | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of assets | $ 33,775,451 | |
Assets at fair value | 33,775,451 | |
Long-term loan and interest receivable from GTAC | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of assets | $ 821,253 | 872,317 |
Assets at fair value | 824,092 | 875,585 |
Increase (Decrease) of Fair Value Over Carrying Value of assets | 2,839 | 3,268 |
Open Ended Fund | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of assets | 1,135,803 | 4,688,202 |
Assets at fair value | 1,135,803 | 4,688,202 |
Other Equity Instruments | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of assets | 5,397,504 | 5,751,001 |
Assets at fair value | 5,397,504 | 5,751,001 |
6.625% Senior Notes due 2025 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 11,330,280 | |
Liabilities at fair value | 13,243,624 | |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 1,913,344 | |
4.625% Senior Notes due 2026 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 5,665,140 | |
Liabilities at fair value | 6,079,885 | |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 414,745 | |
Senior Notes Due 2049 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 14,961,975 | 14,162,850 |
Liabilities at fair value | 18,978,667 | 15,364,426 |
Notes due 2027 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 4,500,000 | 4,500,000 |
Liabilities at fair value | 5,035,860 | 4,656,375 |
Long-term notes payable to Mexican banks | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 19,602,893 | 22,845,382 |
Liabilities at fair value | 19,801,142 | 23,012,707 |
Other notes payable | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 1,324,063 | |
Liabilities at fair value | 1,295,780 | |
Derivative financial instruments | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of assets | 4,592 | |
Assets at fair value | 4,592 | |
Interest rate risk | Long-term loan and interest receivable from GTAC | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Assets Assuming a Hypothetical 10% Increase in Fair Value | 85,248 | 90,827 |
Interest rate risk | 6.625% Senior Notes due 2025 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 3,237,706 | |
Interest rate risk | 4.625% Senior Notes due 2026 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 1,022,734 | |
U.S. dollar | 6.625% Senior Notes due 2025 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 11,969,580 | |
Liabilities at fair value | 14,609,830 | |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 2,640,250 | |
U.S. dollar | 4.625% Senior Notes due 2026 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 5,984,790 | |
Liabilities at fair value | 6,840,854 | |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 856,064 | |
U.S. dollar | 8.50% Senior Notes due 2032 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 5,984,790 | 5,665,140 |
Liabilities at fair value | 9,193,415 | 7,571,346 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 3,208,625 | 1,906,206 |
U.S. dollar | 6.625% Senior Notes due 2040 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 11,969,580 | 11,330,280 |
Liabilities at fair value | 16,780,992 | 14,139,283 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 4,811,412 | 2,809,003 |
U.S. dollar | 5% Senior Notes due 2045 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 19,949,300 | 18,883,800 |
Liabilities at fair value | 24,282,886 | 19,739,047 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 4,333,586 | 855,247 |
U.S. dollar | 6.125% Senior Notes due 2046 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 17,954,370 | 16,995,420 |
Liabilities at fair value | 24,970,938 | 20,565,308 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 7,016,568 | 3,569,888 |
U.S. dollar | Senior Notes Due 2049 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 14,961,975 | 14,162,850 |
Liabilities at fair value | 18,978,667 | 15,364,426 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 4,016,692 | 1,201,576 |
U.S. dollar | Interest rate risk | 6.625% Senior Notes due 2025 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 4,101,233 | |
U.S. dollar | Interest rate risk | 4.625% Senior Notes due 2026 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 1,540,149 | |
U.S. dollar | Interest rate risk | 8.50% Senior Notes due 2032 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 4,127,967 | 2,663,341 |
U.S. dollar | Interest rate risk | 6.625% Senior Notes due 2040 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 6,489,511 | 4,222,931 |
U.S. dollar | Interest rate risk | 5% Senior Notes due 2045 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 6,761,875 | 2,829,152 |
U.S. dollar | Interest rate risk | 6.125% Senior Notes due 2046 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 9,513,662 | 5,626,419 |
U.S. dollar | Interest rate risk | Senior Notes Due 2049 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 5,914,559 | 2,738,019 |
Mexican peso | Notes due 2027 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 4,500,000 | 4,500,000 |
Liabilities at fair value | 5,035,860 | 4,656,375 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 535,860 | 156,375 |
Mexican peso | 8.49% Senior Notes due 2037 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 4,500,000 | 4,500,000 |
Liabilities at fair value | 4,087,575 | 4,133,385 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | (412,425) | (366,615) |
Mexican peso | 7.25% Senior Notes due 2043 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 6,500,000 | 6,500,000 |
Liabilities at fair value | 5,150,860 | 4,853,485 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | (1,349,140) | (1,646,515) |
Mexican peso | Long-term notes payable to Mexican banks | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 19,602,893 | 22,845,382 |
Liabilities at fair value | 19,801,142 | 23,012,707 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 198,249 | 167,325 |
Mexican peso | Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 9,292,351 | 9,363,520 |
Liabilities at fair value | 9,343,100 | 9,120,903 |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | 50,749 | (242,617) |
Mexican peso | Other notes payable | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 1,324,063 | |
Liabilities at fair value | 1,295,780 | |
Increase (Decrease) of Fair Value Over Carrying Value of liabilities | (28,283) | |
Mexican peso | Derivative financial instruments | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Carrying value of liabilities | 3,476,223 | 915,290 |
Liabilities at fair value | 3,476,223 | 915,290 |
Mexican peso | Interest rate risk | Notes due 2027 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 1,039,446 | 622,013 |
Mexican peso | Interest rate risk | 8.49% Senior Notes due 2037 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | (3,668) | 46,724 |
Mexican peso | Interest rate risk | 7.25% Senior Notes due 2043 | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | (834,054) | (1,161,167) |
Mexican peso | Interest rate risk | Long-term notes payable to Mexican banks | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | 2,178,363 | 2,468,596 |
Mexican peso | Interest rate risk | Lease liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | $ 985,059 | 669,473 |
Mexican peso | Interest rate risk | Other notes payable | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Increase (Decrease) of Fair Value Over Carrying Value of Liabilities Assuming a Hypothetical 10% Increase in Fair Value | $ 101,295 |
Financial Risk Management - Liq
Financial Risk Management - Liquidity Risk (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments | ||||
Cash and cash equivalents | $ 29,058,093 | $ 27,452,265 | $ 32,068,291 | $ 38,734,949 |
Debt | 123,877,278 | 122,378,292 | ||
Lease liabilities | 9,292,351 | 9,363,520 | ||
Other notes payable | 1,324,063 | |||
Trade and other liabilities | 41,796,845 | 38,539,436 | ||
Interest on debt | 124,559,077 | 129,278,189 | ||
Interest on lease liabilities | 3,617,085 | 3,889,178 | ||
Interest on other notes payable | 5,938 | |||
2021 | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Debt | 617,489 | 492,489 | ||
Lease liabilities | 1,277,754 | 1,257,766 | ||
Other notes payable | 1,324,063 | |||
Trade and other liabilities | 33,936,100 | 31,588,449 | ||
Interest on debt | 5,997,185 | 6,565,402 | ||
Interest on lease liabilities | 668,461 | 731,591 | ||
Interest on other notes payable | 5,938 | |||
12-36 Months | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Debt | 8,985,404 | 8,852,893 | ||
Lease liabilities | 2,184,098 | 2,491,539 | ||
Trade and other liabilities | 4,078,823 | 3,426,610 | ||
Interest on debt | 15,177,002 | 16,351,837 | ||
Interest on lease liabilities | 1,169,317 | 1,417,722 | ||
36-60 Months | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Debt | 21,969,580 | 13,500,000 | ||
Lease liabilities | 2,240,777 | 2,381,812 | ||
Trade and other liabilities | 644,830 | 1,035,998 | ||
Interest on debt | 13,256,713 | 14,404,394 | ||
Interest on lease liabilities | 853,741 | 984,003 | ||
Thereafter | ||||
Disclosure of nature and extent of risks arising from financial instruments | ||||
Debt | 92,304,805 | 99,532,910 | ||
Lease liabilities | 3,589,722 | 3,232,403 | ||
Trade and other liabilities | 3,137,092 | 2,488,379 | ||
Interest on debt | 90,128,177 | 91,956,556 | ||
Interest on lease liabilities | $ 925,566 | $ 755,862 |
Critical Accounting Estimates_2
Critical Accounting Estimates and Assumptions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Accounting for Programming | |
Expected Future Benefit Period | 5 years |
Percentage Of Production Cost Expensed | 70.00% |
Hypothetical decrease in expected future revenue | 10.00% |
Expected Decrease In Revenue | $ (349,704) |
Expected increase in programming amortization expense | $ 349,704 |
Cash and Cash Equivalents - Cas
Cash and Cash Equivalents - Cash and Cash equivalents (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents | ||||
Cash and bank accounts | $ 5,094,610 | $ 1,758,262 | ||
Short-term investments | 23,963,483 | 25,694,003 | ||
Total cash and cash equivalents | $ 29,058,093 | $ 27,452,265 | $ 32,068,291 | $ 38,734,949 |
Trade Notes and Accounts Rece_3
Trade Notes and Accounts Receivable, Net (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Trade Notes and Accounts Receivable, Net | |||
Non-interest bearing notes received from customers as deposits and advances mainly in connection with annual ("upfront basis") and from time to time ("scatter basis") prepayments | $ 3,327,579 | $ 4,188,293 | |
Trade accounts receivable | 13,265,351 | 15,144,534 | |
Loss allowance | (4,249,133) | (4,846,643) | $ (4,379,316) |
Total trade notes and accounts receivable, net | $ 12,343,797 | $ 14,486,184 |
Trade Notes and Accounts Rece_4
Trade Notes and Accounts Receivable, Net - Aging Analysis (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | $ 12,343,797 | $ 14,486,184 |
1 to 90 days | ||
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | 3,634,710 | 4,180,830 |
91 to 180 days | ||
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | 1,386,243 | 1,182,634 |
More than 180 days | ||
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | $ 4,044,530 | $ 4,706,908 |
Trade Notes and Accounts Rece_5
Trade Notes and Accounts Receivable, Net - Carrying Amount (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | $ 12,343,797 | $ 14,486,184 |
U.S. dollar | ||
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | 2,905,396 | 3,610,639 |
Other currencies | ||
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | 75,369 | 45,114 |
Currencies other than Peso | ||
Disclosure of trade notes and accounts receivable | ||
Trade notes and accounts receivable, net | $ 2,980,765 | $ 3,655,753 |
Trade Notes and Accounts Rece_6
Trade Notes and Accounts Receivable, Net - Doubtful Accounts (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Trade Notes and Accounts Receivable, Net | ||
Beginning Balance | $ (4,846,643) | $ (4,379,316) |
Impairment provision | (1,352,432) | (1,549,801) |
Write-off of receivables | 1,949,942 | 996,185 |
Reclassification to current assets to held for sale | 86,289 | |
Ending Balance | $ (4,249,133) | $ (4,846,643) |
Transmission Rights and Progr_3
Transmission Rights and Programming (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Transmission Rights and Programming. | |||
Transmission rights | $ 9,695,030 | $ 8,671,434 | |
Programming | 4,683,980 | 5,709,414 | |
Total transmission rights and programming | 14,379,010 | 14,380,848 | |
Transmission rights | 5,257,926 | 4,630,513 | |
Programming | 2,724,870 | 3,271,077 | |
Total non-current transmission rights and programming | 7,982,796 | 7,901,590 | |
Current portion of transmission rights and programming | 6,396,214 | 6,479,258 | |
Amortization of transmission rights and programming | $ 12,691,287 | $ 14,515,285 | $ 18,009,554 |
Investments in Financial Inst_3
Investments in Financial Instruments (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments | |||
Non-current financial assets | $ 7,002,712 | $ 44,265,899 | |
Other | |||
Financial Instruments | |||
Non-current financial assets | 469,405 | 51,245 | |
FVOCIL | |||
Financial Instruments | |||
Non-current financial assets | 6,533,307 | 44,214,654 | $ 49,202,493 |
FVOCIL | Warrants issued by UHI | |||
Financial Instruments | |||
Non-current financial assets | 33,775,451 | 34,921,530 | |
FVOCIL | Open Ended Fund | |||
Financial Instruments | |||
Non-current financial assets | 1,135,803 | 4,688,202 | 7,662,726 |
FVOCIL | Other Equity Instruments | |||
Financial Instruments | |||
Non-current financial assets | 5,397,504 | 5,751,001 | 6,545,625 |
FVOCIL | Other Financial Assets | |||
Financial Instruments | |||
Non-current financial assets | $ 72,612 | ||
Equity instruments measured at fair value through other comprehensive income | Warrants issued by UHI | |||
Financial Instruments | |||
Non-current financial assets | 33,775,451 | ||
Equity instruments measured at fair value through other comprehensive income | Open Ended Fund | |||
Financial Instruments | |||
Non-current financial assets | 1,135,803 | 4,688,202 | |
Equity instruments measured at fair value through other comprehensive income | Other Equity Instruments | |||
Financial Instruments | |||
Non-current financial assets | $ 5,397,504 | $ 5,751,001 |
Investments in Financial Inst_4
Investments in Financial Instruments - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands, $ in Millions | Dec. 29, 2020$ / sharesshares | Dec. 28, 2020 | Mar. 31, 2020MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020MXN ($) | Mar. 31, 2020MXN ($) | Nov. 30, 2019USD ($) | Nov. 30, 2019MXN ($) | Jul. 31, 2019USD ($) | Jul. 31, 2019MXN ($) | Jan. 31, 2017 | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($)shares | Dec. 31, 2018MXN ($) |
Financial Instruments | ||||||||||||||||
Exercise price per warrant | $ / shares | $ 0.01 | |||||||||||||||
Exercised warrants shares | shares | 4,590,953 | 4,590,953 | ||||||||||||||
Proportion of warrants exercisable for common stock | 35.90% | 35.90% | 35.90% | |||||||||||||
Notional Amount | $ 123,877,278 | $ 123,877,278 | ||||||||||||||
Decline in estimated fair value of the Group's investment accounted for in other comprehensive income or loss, net of tax | 15,259,764 | $ (180,114) | $ 943,389 | |||||||||||||
Impairment loss on Group's investment in shares of UHI | 5,455,356 | |||||||||||||||
Fair value amount of Open ended fund | $ 153.7 | $ 3,155,643 | $ 153.7 | $ 3,155,643 | $ 121.6 | $ 2,301,682 | $ 121.6 | $ 2,301,682 | ||||||||
Equity stake percentage | 49.00% | |||||||||||||||
Increase in equity stake percentage | 40.00% | |||||||||||||||
Authorized aggregate foreign ownership of associate | 49.00% | |||||||||||||||
UHI | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Impairment loss on Group's investment in shares of UHI | $ 5,455,356 | $ 5,455,356 | ||||||||||||||
Ownership interest in associate | 10.00% | 35.90% | 10.00% | |||||||||||||
Warrants issued by UHI | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Decline in estimated fair value of the Group's investment accounted for in other comprehensive income or loss, net of tax | $ 21,937,152 | |||||||||||||||
Tax amount on decline in estimated fair value of the Group's investment accounted for in other comprehensive income or loss | $ 6,581,146 |
Investments in Financial Inst_5
Investments in Financial Instruments - Available-for-sale financial assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | $ 44,265,899 | |
Balance at the end of year | 7,002,712 | $ 44,265,899 |
Warrants issued by UHI | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | 5,511,412 | |
Open Ended Fund | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | 471,097 | |
Warrants issued by UHI | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | (1,403,384) | |
Open Ended Fund | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | (289,298) | |
FVOCIL | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | 44,214,654 | 49,202,493 |
Disposition of investments | (3,159,970) | (2,404,508) |
Change in fair value in other comprehensive income (1) | (17,133,678) | (2,583,331) |
Warrants exercised for common stock of UHI | (17,387,699) | |
Balance at the end of year | 6,533,307 | 44,214,654 |
FVOCIL | Warrants issued by UHI | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | 33,775,451 | 34,921,530 |
Change in fair value in other comprehensive income (1) | (16,387,752) | (1,146,079) |
Warrants exercised for common stock of UHI | (17,387,699) | |
Balance at the end of year | 33,775,451 | |
FVOCIL | Open Ended Fund | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | 4,688,202 | 7,662,726 |
Disposition of investments | (3,159,970) | (2,331,785) |
Change in fair value in other comprehensive income (1) | (392,429) | (642,739) |
Balance at the end of year | 1,135,803 | 4,688,202 |
FVOCIL | Other Equity Instruments | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | 5,751,001 | 6,545,625 |
Change in fair value in other comprehensive income (1) | (353,497) | (794,624) |
Balance at the end of year | $ 5,397,504 | 5,751,001 |
FVOCIL | Other Financial Assets | ||
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | 72,612 | |
Disposition of investments | (72,723) | |
Change in fair value in other comprehensive income (1) | $ 111 |
Investments in Associates and_3
Investments in Associates and Joint Ventures - Equity method (Details) - MXN ($) $ in Thousands | Dec. 28, 2020 | Feb. 25, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2017 |
Investments in associates and joint ventures | ||||||
Investments in associates and joint ventures | $ 22,813,531 | $ 9,762,432 | $ 10,546,728 | |||
Investment in intangible assets and goodwill | $ 42,724,218 | $ 43,328,954 | ||||
UHI | ||||||
Investments in associates and joint ventures | ||||||
Ownership interest in associate | 10.00% | 35.90% | 10.00% | |||
Percentage warrants if exercised on a fully diluted as converted basis | 36.00% | |||||
Investments in associates and joint ventures | $ 21,424,180 | $ 8,189,662 | ||||
OCEN and subsidiaries | ||||||
Investments in associates and joint ventures | ||||||
Ownership interest in associate | 40.00% | |||||
Investments in associates and joint ventures | $ 556,251 | 693,970 | ||||
Other | ||||||
Investments in associates and joint ventures | ||||||
Investments in associates and joint ventures | $ 113,905 | 115,161 | ||||
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") | ||||||
Investments in associates and joint ventures | ||||||
Ownership interest in joint venture | 33.30% | |||||
Investments in associates and joint ventures | $ 514,731 | 567,165 | ||||
Periodico Digital Sendero, S.A. P.I. de C.V. and subsidiary ("PDS") | ||||||
Investments in associates and joint ventures | ||||||
Ownership interest in joint venture | 50.00% | |||||
Investments in associates and joint ventures | $ 204,464 | 196,474 | ||||
Fair value of total consideration | $ 81,749 | |||||
Investment in intangible assets and goodwill | $ 113,837 | $ 113,837 |
Investments in Associates and_4
Investments in Associates and Joint Ventures - Associate Narrative (Details) $ in Thousands | Dec. 28, 2020itemdirectorshares | Mar. 31, 2020MXN ($) | Feb. 25, 2020 | Jan. 01, 2020MXN ($) | Dec. 31, 2020MXN ($)itemdirectorshares | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) |
Disclosure of associates | |||||||
Proportionate sale of initial investment in associate | 0.667 | ||||||
Impairment loss on Group's investment in shares of UHI | $ 5,455,356 | ||||||
UHI | |||||||
Disclosure of associates | |||||||
Number of shares owned | shares | 1,110,382 | 5,701,335 | |||||
Number of warrants held | shares | 4,590,953 | ||||||
Proportion of voting rights held in associate | 14.00% | 40.60% | |||||
Ownership interest in associate | 10.00% | 35.90% | 10.00% | ||||
Percentage warrants if exercised on a fully diluted as converted basis | 36.00% | ||||||
Ownership interest after dilution of warrants exercisable | 36.00% | ||||||
Number of officers designated as members of board of directors | item | 3 | 3 | |||||
Number of directors designated as members of board of directors | director | 1 | ||||||
Number of directors of the associate | director | 9 | ||||||
Total number of seats held by directors | director | 19 | ||||||
Number of available board seats | director | 22 | ||||||
Threshold period to broadcast after proportionate sale of initial investment In associate | 7 years 6 months | ||||||
Ownership interest not held in associate | 64.00% | ||||||
Impairment loss on Group's investment in shares of UHI | $ 5,455,356 | $ 5,455,356 | |||||
Share of income in OCEN for 2019 | 1,030 | $ (477,838) | $ (189,302) | ||||
Goodwill | $ 18,687,080 | 7,426,968 | |||||
OCEN and subsidiaries | |||||||
Disclosure of associates | |||||||
Ownership interest in associate | 40.00% | ||||||
Dividends paid | 1,931,000 | ||||||
Dividends received from associates | 772,400 | ||||||
Reduction in capital | 200,466 | ||||||
Reduction in capital received from subsidiary | (80,186) | ||||||
Share of income in OCEN for 2019 | $ 147,975 | $ 147,975 | |||||
Goodwill | $ 359,613 | $ 359,613 |
Investments in Associates and_5
Investments in Associates and Joint Ventures - Joint venture Narrative (Details) - Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") - MXN ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2010 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in Associates and Joint Ventures | |||
Lease term of contract | 20 years | ||
Ownership interest in joint venture | 33.30% | ||
Payment of principal and interest | $ (246,046) | $ (200,895) | |
Amounts receivable in connection with long-term credit facility and supplementary loans | 821,253 | 872,317 | |
Long-term credit facility | |||
Investments in Associates and Joint Ventures | |||
Long-term credit facility amount | $ 688,217 | ||
Interest rate basis | TIIE | ||
Basis points | 2.00% | ||
Used principal amount of the credit facility | 688,183 | 688,183 | |
Payment of principal and interest | 123,390 | $ 114,574 | |
Long term loans | |||
Investments in Associates and Joint Ventures | |||
Interest rate basis | TIIE | ||
Basis points | 2.00% | ||
Principal amount | $ 946,128 | ||
Payment of principal and interest | $ 122,656 | $ 86,321 |
Investments in Associates and_6
Investments in Associates and Joint Ventures - Roll forward (Details) - MXN ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Associate and Joint Ventures [Line Items] | |||||
At January 1 | $ 9,762,432 | $ 9,762,432 | $ 10,546,728 | ||
Impairment loss in investment in shares of UHI | (5,455,356) | ||||
Share of loss income of associates and joint ventures, net | (284,312) | 581,023 | |||
Foreign currency translation adjustments | 1,360,735 | (337,742) | |||
Other | 7,478 | (146,319) | |||
At December 31 | 22,813,531 | 9,762,432 | $ 10,546,728 | ||
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") | |||||
Disclosure of Associate and Joint Ventures [Line Items] | |||||
At January 1 | 567,165 | 567,165 | |||
Long-term loans granted to GTAC, net | 132,926 | 172,223 | |||
Payment of principal and interest | (246,046) | (200,895) | |||
At December 31 | 514,731 | 567,165 | |||
UHI | |||||
Disclosure of Associate and Joint Ventures [Line Items] | |||||
At January 1 | 8,189,662 | 8,189,662 | |||
Impairment loss in investment in shares of UHI | $ (5,455,356) | (5,455,356) | |||
Exercise of warrants for UHI shares | 17,387,699 | ||||
Share of income in OCEN for 2019 | 1,030 | (477,838) | $ (189,302) | ||
At December 31 | 21,424,180 | 8,189,662 | |||
OCEN and subsidiaries | |||||
Disclosure of Associate and Joint Ventures [Line Items] | |||||
At January 1 | 693,970 | 693,970 | |||
Dividends from OCEN | (772,400) | ||||
Capital stock reduction | (80,186) | ||||
Share of income in OCEN for 2019 | $ 147,975 | 147,975 | |||
At December 31 | $ 556,251 | $ 693,970 |
Investments in Associates and_7
Investments in Associates and Joint Ventures - Balance sheet information (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | |
Investments in associates and joint ventures | ||||||
Current assets | $ 69,061,075 | $ 67,431,024 | ||||
Non-current assets | 202,185,257 | 222,912,868 | ||||
Total assets | 271,246,332 | 290,343,892 | ||||
Current liabilities | 43,709,666 | 42,164,942 | ||||
Non-current liabilities | 139,597,633 | 142,553,717 | ||||
Total liabilities | 183,307,299 | 184,718,659 | ||||
UHI | ||||||
Investments in associates and joint ventures | ||||||
Current assets | $ 1,470,301 | $ 1,199,800 | ||||
Non-current assets | 8,249,358 | 8,521,477 | ||||
Total assets | 9,719,659 | 9,721,277 | ||||
Current liabilities | 712,300 | 554,700 | ||||
Non-current liabilities | 8,630,459 | 8,720,377 | ||||
Total liabilities | 9,342,759 | 9,275,077 | ||||
Net assets | $ 376,900 | $ 446,200 | ||||
Associated other than UHI | ||||||
Investments in associates and joint ventures | ||||||
Current assets | 923,784 | 1,454,771 | ||||
Non-current assets | 967,584 | 920,140 | ||||
Total assets | 1,891,368 | 2,374,911 | ||||
Current liabilities | 1,229,246 | 1,439,238 | ||||
Non-current liabilities | 315,260 | 426,043 | ||||
Total liabilities | 1,544,506 | 1,865,281 | ||||
Net assets | 346,862 | 509,630 | ||||
Goodwill | 359,613 | 359,613 | ||||
Adjustments for differences in accounting policies | $ (36,319) | $ (60,112) | ||||
Carrying amount of the Groups interest in associates | 670,156 | 809,131 | ||||
Investments accounted for using equity method | ||||||
Investments in associates and joint ventures | ||||||
Current assets | 151,151 | 155,628 | ||||
Non-current assets | 541,861 | 599,856 | ||||
Total assets | 693,012 | 755,484 | ||||
Current liabilities | 45,320 | 43,556 | ||||
Non-current liabilities | 860,357 | 924,759 | ||||
Total liabilities | 905,677 | 968,315 | ||||
Net assets | (212,665) | (212,831) | ||||
Goodwill | 113,837 | 113,837 | ||||
Adjustments for differences in accounting policies | (3,230) | (9,684) | ||||
Long-term loans granted to GTAC, net | $ 821,253 | $ 872,317 | ||||
Carrying amount of the Groups interest in associates | $ 719,195 | $ 763,639 |
Investments in Associates and_8
Investments in Associates and Joint Ventures - Reconcilies Summary of Financial Information of UHI Carrying Amount (Details) $ in Thousands, $ in Thousands | Dec. 28, 2020 | Feb. 25, 2020 | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) |
Disclosure of associates [line items] | |||||||||
Investments in associates and joint ventures | $ 22,813,531 | $ 9,762,432 | $ 10,546,728 | ||||||
UHI | |||||||||
Disclosure of associates [line items] | |||||||||
Ownership interest in associate | 10.00% | 35.90% | 10.00% | ||||||
Percentage warrants if exercised on a fully diluted as converted basis | 36.00% | ||||||||
Group's share of net assets | $ 135,307 | 2,699,282 | $ 44,568 | 841,619 | |||||
Goodwill | 18,687,080 | 7,426,968 | |||||||
Adjustments for differences in accounting policies | $ 37,818 | $ (78,925) | |||||||
Investments in associates and joint ventures | $ 21,424,180 | $ 8,189,662 |
Investments in Associates and_9
Investments in Associates and Joint Ventures - Reconciles of Summary of Financial Information (Details) $ in Thousands, $ in Thousands | Mar. 31, 2020MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) |
Group's interest in UHI: | |||||||
Impairment loss in investment in shares of UHI | $ (5,455,356) | ||||||
UHI | |||||||
Disclosure of associates [line items] | |||||||
Net income (10%) | $ 3,635 | 78,133 | $ 27,668 | $ 532,896 | $ 1,208 | $ 23,258 | |
Other comprehensive (loss) income (10%) | $ (2,367) | (50,872) | $ (9,889) | (190,457) | $ 1,538 | 29,620 | |
Adjustments for differences in accounting policies: | |||||||
Net (loss) income | 79,163 | 55,058 | (166,044) | ||||
Other comprehensive loss | (6,657) | (45,263) | (76,521) | ||||
Group's interest in UHI: | |||||||
Net (loss) income | (1,030) | 477,838 | 189,302 | ||||
Other comprehensive loss | (57,529) | $ (235,720) | $ (46,901) | ||||
Impairment loss in investment in shares of UHI | $ (5,455,356) | $ (5,455,356) |
Investments in Associates an_10
Investments in Associates and Joint Ventures - Share of comprehensive (loss) income (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | |
Disclosure of Associate and Joint Ventures [Line Items] | ||||||
Share of (loss) income of associates and joint ventures, net | $ (5,739,668) | $ 581,023 | $ 532,933 | |||
Total | (61,033) | (236,159) | (47,313) | |||
Revenue | 97,361,634 | 101,757,181 | 101,282,333 | |||
Profit from continuing operations | 302,824 | 6,106,813 | 7,615,270 | |||
Net income | 302,824 | 6,106,813 | 7,615,270 | |||
Total comprehensive income | (16,559,314) | 3,815,538 | 6,594,387 | |||
Associates | Joint ventures | ||||||
Disclosure of Associate and Joint Ventures [Line Items] | ||||||
Share of (loss) income of associates and joint ventures, net | (283,282) | 103,185 | 343,631 | |||
Foreign currency translation adjustments, net | 1,757 | (2,556) | 2,987 | |||
Other items of comprehensive loss, net | (5,261) | 2,117 | (3,399) | |||
Total | (3,504) | (439) | (412) | |||
Share of comprehensive income of associates and joint ventures | (286,786) | 102,746 | 343,219 | |||
Share of total comprehensive income | $ (286,786) | $ 102,746 | $ 343,219 | |||
UHI | ||||||
Disclosure of Associate and Joint Ventures [Line Items] | ||||||
Revenue | $ 2,541,900 | $ 2,687,900 | $ 2,713,800 | |||
Profit from continuing operations | 36,400 | 290,200 | 161,000 | |||
Post-tax loss from discontinued operations | (13,200) | (148,900) | ||||
Net income | 36,400 | 277,000 | 12,100 | |||
Other comprehensive (loss) income | (23,700) | (99,000) | 15,410 | |||
Total comprehensive income | $ 12,700 | $ 178,000 | $ 27,510 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | $ 83,329,232 | $ 87,342,530 | |
Additions | 20,131,738 | 19,108,284 | $ 18,708,491 |
Balance at end of the period | 83,281,627 | 83,329,232 | 87,342,530 |
Buildings and Land | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 9,437,130 | 9,696,408 | |
Balance at end of the period | 9,579,153 | 9,437,130 | 9,696,408 |
Technical Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 52,649,603 | 55,062,909 | |
Balance at end of the period | 54,013,318 | 52,649,603 | 55,062,909 |
Satellite Transponders | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 2,337,439 | 5,113,964 | |
Balance at end of the period | 2,055,025 | 2,337,439 | 5,113,964 |
Furniture and Fixtures | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 554,786 | 555,678 | |
Balance at end of the period | 545,329 | 554,786 | 555,678 |
Transportation Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 1,195,318 | 1,435,094 | |
Balance at end of the period | 1,090,966 | 1,195,318 | 1,435,094 |
Computer Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 2,316,042 | 2,656,206 | |
Balance at end of the period | 2,092,070 | 2,316,042 | 2,656,206 |
Leasehold Improvements | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 1,124,546 | 1,139,091 | |
Balance at end of the period | 1,032,096 | 1,124,546 | 1,139,091 |
Construction and Projects in Progress | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 13,714,368 | 11,683,180 | |
Balance at end of the period | 12,873,670 | 13,714,368 | 11,683,180 |
Cost | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 192,358,016 | 186,145,082 | |
Additions | 20,131,738 | 19,108,284 | |
Dismantling cost | 71,241 | 797,176 | |
Retirements and reclassifications to other accounts | (3,297,784) | (5,931,705) | |
Transfers to right-of-use assets | (6,172,301) | ||
Transfers to intangibles assets | (1,045,065) | (1,487,056) | |
Effect of translation | 20,768 | (101,464) | |
Balance at end of the period | 208,238,914 | 192,358,016 | 186,145,082 |
Cost | Buildings and Land | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 14,509,206 | 14,635,604 | |
Additions | 6,252 | 25,132 | |
Retirements and reclassifications to other accounts | (53,559) | (266,687) | |
Transfers and reclassifications | 415,289 | 94,791 | |
Effect of translation | 9,724 | 20,366 | |
Balance at end of the period | 14,886,912 | 14,509,206 | 14,635,604 |
Cost | Technical Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 141,966,642 | 133,171,187 | |
Additions | 12,384,030 | 11,152,691 | |
Dismantling cost | 71,241 | 797,176 | |
Retirements and reclassifications to other accounts | (547,789) | (2,332,091) | |
Transfers to right-of-use assets | (1,896,682) | ||
Transfers and reclassifications | 3,381,566 | 1,188,429 | |
Transfers to intangibles assets | (2,725) | ||
Effect of translation | 9,223 | (114,068) | |
Balance at end of the period | 157,262,188 | 141,966,642 | 133,171,187 |
Cost | Satellite Transponders | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 6,026,094 | 10,301,713 | |
Transfers to right-of-use assets | (4,275,619) | ||
Balance at end of the period | 6,026,094 | 6,026,094 | 10,301,713 |
Cost | Furniture and Fixtures | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 1,158,745 | 1,203,942 | |
Additions | 24,562 | 55,434 | |
Retirements and reclassifications to other accounts | (2,426) | (163,756) | |
Transfers and reclassifications | 82,855 | 64,380 | |
Effect of translation | 64 | (1,255) | |
Balance at end of the period | 1,263,800 | 1,158,745 | 1,203,942 |
Cost | Transportation Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 3,000,322 | 3,085,762 | |
Additions | 75,219 | 74,684 | |
Retirements and reclassifications to other accounts | (45,726) | (199,494) | |
Transfers and reclassifications | 92,370 | 39,724 | |
Effect of translation | 47 | (354) | |
Balance at end of the period | 3,122,232 | 3,000,322 | 3,085,762 |
Cost | Computer Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 8,548,265 | 8,848,455 | |
Additions | 253,783 | 199,749 | |
Retirements and reclassifications to other accounts | (72,113) | (965,029) | |
Transfers and reclassifications | 467,754 | 470,161 | |
Effect of translation | 693 | (5,071) | |
Balance at end of the period | 9,198,382 | 8,548,265 | 8,848,455 |
Cost | Leasehold Improvements | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 3,434,374 | 3,215,239 | |
Additions | 19,283 | 37,213 | |
Retirements and reclassifications to other accounts | (627) | (36,943) | |
Transfers and reclassifications | 152,591 | 220,219 | |
Effect of translation | 15 | (1,354) | |
Balance at end of the period | 3,605,636 | 3,434,374 | 3,215,239 |
Cost | Construction and Projects in Progress | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | 13,714,368 | 11,683,180 | |
Additions | 7,368,609 | 7,563,381 | |
Retirements and reclassifications to other accounts | (2,575,544) | (1,967,705) | |
Transfers and reclassifications | (4,592,425) | (2,077,704) | |
Transfers to intangibles assets | (1,042,340) | (1,487,056) | |
Effect of translation | 1,002 | 272 | |
Balance at end of the period | 12,873,670 | 13,714,368 | 11,683,180 |
Accumulated Amortisation | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (109,028,784) | (98,802,552) | |
Depreciation, property, plant and equipment | (17,689,503) | (17,437,800) | |
Retirements and reclassifications to other accounts | 1,774,919 | 4,338,181 | |
Transfers to right-of-use assets | 2,769,432 | ||
Effect of translation | (13,919) | 103,955 | |
Balance at end of the period | (124,957,287) | (109,028,784) | (98,802,552) |
Accumulated Amortisation | Buildings and Land | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (5,072,076) | (4,939,196) | |
Depreciation, property, plant and equipment | (268,684) | (239,066) | |
Retirements and reclassifications to other accounts | 37,704 | 102,538 | |
Effect of translation | (4,703) | 3,648 | |
Balance at end of the period | (5,307,759) | (5,072,076) | (4,939,196) |
Accumulated Amortisation | Technical Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (89,317,039) | (78,108,278) | |
Depreciation, property, plant and equipment | (15,545,278) | (15,272,635) | |
Retirements and reclassifications to other accounts | 1,622,089 | 2,955,945 | |
Transfers to right-of-use assets | 987,924 | ||
Reclassifications | 27,103 | ||
Effect of translation | (8,642) | 92,902 | |
Balance at end of the period | (103,248,870) | (89,317,039) | (78,108,278) |
Accumulated Amortisation | Satellite Transponders | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (3,688,655) | (5,187,749) | |
Depreciation, property, plant and equipment | (282,414) | (282,414) | |
Transfers to right-of-use assets | 1,781,508 | ||
Balance at end of the period | (3,971,069) | (3,688,655) | (5,187,749) |
Accumulated Amortisation | Furniture and Fixtures | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (603,959) | (648,264) | |
Depreciation, property, plant and equipment | (116,651) | (114,382) | |
Retirements and reclassifications to other accounts | 2,208 | 157,477 | |
Effect of translation | (69) | 1,210 | |
Balance at end of the period | (718,471) | (603,959) | (648,264) |
Accumulated Amortisation | Transportation Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (1,805,004) | (1,650,668) | |
Depreciation, property, plant and equipment | (267,356) | (309,376) | |
Retirements and reclassifications to other accounts | 41,131 | 153,235 | |
Reclassifications | 1,481 | ||
Effect of translation | (37) | 324 | |
Balance at end of the period | (2,031,266) | (1,805,004) | (1,650,668) |
Accumulated Amortisation | Computer Equipment | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (6,232,223) | (6,192,249) | |
Depreciation, property, plant and equipment | (945,389) | (956,985) | |
Retirements and reclassifications to other accounts | 71,752 | 941,061 | |
Reclassifications | (28,584) | ||
Effect of translation | (452) | 4,534 | |
Balance at end of the period | (7,106,312) | (6,232,223) | (6,192,249) |
Accumulated Amortisation | Leasehold Improvements | |||
Property, Plant and Equipment, Net | |||
Balance at beginning of the period | (2,309,828) | (2,076,148) | |
Depreciation, property, plant and equipment | (263,731) | (262,942) | |
Retirements and reclassifications to other accounts | 35 | 27,925 | |
Effect of translation | (16) | 1,337 | |
Balance at end of the period | $ (2,573,540) | $ (2,309,828) | $ (2,076,148) |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Others (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment, Net | |||
Property, plant and equipment | $ 83,281,627 | $ 83,329,232 | $ 87,342,530 |
Cost | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment | 208,238,914 | 192,358,016 | 186,145,082 |
Accumulated Amortisation | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment | (124,957,287) | (109,028,784) | $ (98,802,552) |
Subscriber leased set-top equipment | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment | 15,679,149 | 12,654,351 | |
Subscriber leased set-top equipment | Cost | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment | 42,564,180 | 34,923,489 | |
Subscriber leased set-top equipment | Accumulated Amortisation | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment | $ (26,885,031) | $ (22,269,138) |
Right-of-use Assets, Net (Detai
Right-of-use Assets, Net (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use assets, net | ||
Beginning balance | $ 7,553,052 | $ 8,200,181 |
Ending balance | 7,212,165 | 7,553,052 |
Cost | ||
Right-of-use assets, net | ||
Beginning balance | 11,107,711 | 10,969,613 |
Additions or inflationary adjustments | 917,079 | 588,053 |
Retirements | (170,648) | (450,076) |
Effect of translation | 1,181 | 121 |
Ending balance | 11,855,323 | 11,107,711 |
Accumulated Amortisation | ||
Right-of-use assets, net | ||
Beginning balance | (3,554,659) | (2,769,432) |
Depreciation for the year | (1,096,774) | (1,070,350) |
Retirements | 8,173 | 284,976 |
Effect of translation | 102 | 147 |
Ending balance | (4,643,158) | (3,554,659) |
Buildings | ||
Right-of-use assets, net | ||
Beginning balance | 4,476,729 | 4,758,787 |
Ending balance | 4,287,905 | 4,476,729 |
Buildings | Cost | ||
Right-of-use assets, net | ||
Beginning balance | 5,085,242 | 4,758,787 |
Additions or inflationary adjustments | 655,135 | 480,222 |
Reclassifications | (107,075) | |
Retirements | (169,899) | (153,888) |
Effect of translation | 1,181 | 121 |
Ending balance | 5,464,584 | 5,085,242 |
Buildings | Accumulated Amortisation | ||
Right-of-use assets, net | ||
Beginning balance | (608,513) | |
Reclassifications | 35,312 | |
Depreciation for the year | (607,791) | (618,374) |
Retirements | 4,211 | 9,714 |
Effect of translation | 102 | 147 |
Ending balance | (1,176,679) | (608,513) |
Satellite Transponders | ||
Right-of-use assets, net | ||
Beginning balance | 2,209,070 | 2,494,111 |
Ending balance | 1,924,029 | 2,209,070 |
Satellite Transponders | Cost | ||
Right-of-use assets, net | ||
Beginning balance | 4,275,619 | 4,275,619 |
Ending balance | 4,275,619 | 4,275,619 |
Satellite Transponders | Accumulated Amortisation | ||
Right-of-use assets, net | ||
Beginning balance | (2,066,549) | (1,781,508) |
Depreciation for the year | (285,041) | (285,041) |
Ending balance | (2,351,590) | (2,066,549) |
Technical Equipment | ||
Right-of-use assets, net | ||
Beginning balance | 841,392 | 908,758 |
Ending balance | 895,716 | 841,392 |
Technical Equipment | Cost | ||
Right-of-use assets, net | ||
Beginning balance | 1,688,829 | 1,896,682 |
Additions or inflationary adjustments | 195,153 | 82,568 |
Retirements | (290,421) | |
Ending balance | 1,883,982 | 1,688,829 |
Technical Equipment | Accumulated Amortisation | ||
Right-of-use assets, net | ||
Beginning balance | (847,437) | (987,924) |
Depreciation for the year | (140,985) | (134,775) |
Retirements | 156 | 275,262 |
Ending balance | (988,266) | (847,437) |
Other | ||
Right-of-use assets, net | ||
Beginning balance | 25,861 | 38,525 |
Ending balance | 104,515 | 25,861 |
Other | Cost | ||
Right-of-use assets, net | ||
Beginning balance | 58,021 | 38,525 |
Additions or inflationary adjustments | 66,791 | 25,263 |
Reclassifications | 107,075 | |
Retirements | (749) | (5,767) |
Ending balance | 231,138 | 58,021 |
Other | Accumulated Amortisation | ||
Right-of-use assets, net | ||
Beginning balance | (32,160) | |
Reclassifications | (35,312) | |
Depreciation for the year | (62,957) | (32,160) |
Retirements | 3,806 | |
Ending balance | $ (126,623) | $ (32,160) |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill, Net - Summary of intangible assets and goodwill (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | $ 42,724,218 | $ 43,328,954 | |
Concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 15,166,067 | 15,166,067 | $ 15,166,067 |
Goodwill | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 14,113,626 | 14,113,626 | 14,113,626 |
Intangible Assets with Finite Useful Lives | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 13,409,283 | 13,873,817 | |
Intangible Assets with Finite Useful Lives | Trademarks | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 255,782 | 228,510 | |
Intangible Assets with Finite Useful Lives | Concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 110,701 | 221,402 | |
Intangible Assets with Finite Useful Lives | Licenses and software | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 4,692,574 | 4,015,219 | |
Intangible Assets with Finite Useful Lives | Subscriber lists | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 1,546,264 | 2,150,433 | |
Intangible Assets with Finite Useful Lives | Payments for renewal of concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 5,825,559 | 5,821,828 | |
Intangible Assets with Finite Useful Lives | Other intangible assets | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 978,403 | 1,436,425 | |
Intangible Assets with Indefinite Useful Lives | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 29,314,935 | 29,455,137 | |
Intangible Assets with Indefinite Useful Lives | Trademarks | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 35,242 | 175,444 | |
Intangible Assets with Indefinite Useful Lives | Concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 15,166,067 | 15,166,067 | |
Intangible Assets with Indefinite Useful Lives | Goodwill | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 14,113,626 | 14,113,626 | |
Cost | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 65,034,704 | 62,798,367 | |
Cost | Intangible Assets with Finite Useful Lives | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 35,719,769 | 33,343,230 | 30,389,457 |
Cost | Intangible Assets with Finite Useful Lives | Trademarks | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 2,227,096 | 2,127,697 | 1,891,306 |
Cost | Intangible Assets with Finite Useful Lives | Concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 553,505 | 553,505 | 553,505 |
Cost | Intangible Assets with Finite Useful Lives | Licenses and software | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 13,139,480 | 10,858,388 | 9,065,582 |
Cost | Intangible Assets with Finite Useful Lives | Subscriber lists | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 8,804,334 | 8,782,852 | |
Cost | Intangible Assets with Finite Useful Lives | Payments for renewal of concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 5,825,559 | 5,821,828 | 5,993,891 |
Cost | Intangible Assets with Finite Useful Lives | Other intangible assets | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 5,169,795 | 5,198,960 | 4,099,750 |
Cost | Intangible Assets with Indefinite Useful Lives | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 29,314,935 | 29,455,137 | 29,759,102 |
Cost | Intangible Assets with Indefinite Useful Lives | Trademarks | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 35,242 | 175,444 | 479,409 |
Cost | Intangible Assets with Indefinite Useful Lives | Concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 15,166,067 | 15,166,067 | 15,166,067 |
Cost | Intangible Assets with Indefinite Useful Lives | Goodwill | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | 14,113,626 | 14,113,626 | 14,113,626 |
Accumulated Amortisation | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (22,310,486) | (19,469,413) | |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (22,310,486) | (19,469,413) | (17,085,043) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Trademarks | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (1,971,314) | (1,899,187) | (1,569,786) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (442,804) | (332,103) | (221,402) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Licenses and software | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (8,446,906) | (6,843,169) | (5,934,647) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Subscriber lists | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (7,258,070) | (6,632,419) | |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Payments for renewal of concessions | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | (15,454) | ||
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Other intangible assets | |||
Summary of intangible assets and goodwill | |||
Intangible assets and goodwill, net | $ (4,191,392) | $ (3,762,535) | $ (3,235,503) |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill, Net - Changes in intangible assets and goodwill with indefinite useful lives (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | $ 43,328,954 | |
Balance at end of the period | 42,724,218 | $ 43,328,954 |
Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 15,166,067 | 15,166,067 |
Balance at end of the period | 15,166,067 | 15,166,067 |
Goodwill | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 14,113,626 | 14,113,626 |
Balance at end of the period | 14,113,626 | 14,113,626 |
Intangible Assets with Indefinite Useful Lives | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 29,455,137 | |
Balance at end of the period | 29,314,935 | 29,455,137 |
Intangible Assets with Indefinite Useful Lives | Trademarks | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 175,444 | |
Balance at end of the period | 35,242 | 175,444 |
Intangible Assets with Indefinite Useful Lives | Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 15,166,067 | |
Balance at end of the period | 15,166,067 | 15,166,067 |
Intangible Assets with Indefinite Useful Lives | Goodwill | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 14,113,626 | |
Balance at end of the period | 14,113,626 | 14,113,626 |
Cost | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 62,798,367 | |
Balance at end of the period | 65,034,704 | 62,798,367 |
Cost | Intangible Assets with Indefinite Useful Lives | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 29,455,137 | 29,759,102 |
Impairment adjustments | (40,803) | (67,574) |
Transfers and reclassifications | (99,399) | |
Effect of translation | (236,391) | |
Balance at end of the period | 29,314,935 | 29,455,137 |
Cost | Intangible Assets with Indefinite Useful Lives | Trademarks | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 175,444 | 479,409 |
Impairment adjustments | (40,803) | (67,574) |
Transfers and reclassifications | (99,399) | |
Effect of translation | (236,391) | |
Balance at end of the period | 35,242 | 175,444 |
Cost | Intangible Assets with Indefinite Useful Lives | Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 15,166,067 | 15,166,067 |
Balance at end of the period | 15,166,067 | 15,166,067 |
Cost | Intangible Assets with Indefinite Useful Lives | Goodwill | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 14,113,626 | 14,113,626 |
Balance at end of the period | $ 14,113,626 | $ 14,113,626 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill, Net - Changes in intangible assets with definite useful lives (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | $ 43,328,954 | |
Balance at end of the period | 42,724,218 | $ 43,328,954 |
Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 15,166,067 | 15,166,067 |
Balance at end of the period | 15,166,067 | 15,166,067 |
Intangible Assets with Finite Useful Lives | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 13,873,817 | |
Balance at end of the period | 13,409,283 | 13,873,817 |
Intangible Assets with Finite Useful Lives | Trademarks | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 228,510 | |
Amortization of the year | 321,520 | |
Balance at end of the period | 255,782 | 228,510 |
Intangible Assets with Finite Useful Lives | Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 221,402 | |
Amortization of the year | 110,701 | 110,701 |
Balance at end of the period | 110,701 | 221,402 |
Intangible Assets with Finite Useful Lives | Licenses and software | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 4,015,219 | |
Balance at end of the period | 4,692,574 | 4,015,219 |
Intangible Assets with Finite Useful Lives | List of subscribers | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 2,150,433 | |
Balance at end of the period | 1,546,264 | 2,150,433 |
Intangible Assets with Finite Useful Lives | Payments for renewal of concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 5,821,828 | |
Balance at end of the period | 5,825,559 | 5,821,828 |
Intangible Assets with Finite Useful Lives | Other intangible assets | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 1,436,425 | |
Balance at end of the period | 978,403 | 1,436,425 |
Cost | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 62,798,367 | |
Transfers to property, plant and equipment | 1,045,065 | 1,487,056 |
Balance at end of the period | 65,034,704 | 62,798,367 |
Cost | Intangible Assets with Finite Useful Lives | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 33,343,230 | 30,389,457 |
Additions | 1,235,177 | 2,106,750 |
Transfers from property, plant and equipment | 1,247,347 | 1,487,056 |
Transfers to property, plant and equipment | (202,282) | |
Retirements | (53,140) | (855,838) |
Transfers and reclassifications | 127,526 | 236,391 |
Effect of translation | 21,911 | (20,586) |
Balance at end of the period | 35,719,769 | 33,343,230 |
Cost | Intangible Assets with Finite Useful Lives | Trademarks | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 2,127,697 | 1,891,306 |
Transfers and reclassifications | 99,399 | 236,391 |
Balance at end of the period | 2,227,096 | 2,127,697 |
Cost | Intangible Assets with Finite Useful Lives | Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 553,505 | 553,505 |
Balance at end of the period | 553,505 | 553,505 |
Cost | Intangible Assets with Finite Useful Lives | Licenses and software | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 10,858,388 | 9,065,582 |
Additions | 959,813 | 913,108 |
Transfers from property, plant and equipment | 1,247,347 | 1,487,056 |
Retirements | (28,127) | (526,166) |
Transfers and reclassifications | 84,823 | (68,641) |
Effect of translation | 17,236 | (12,551) |
Balance at end of the period | 13,139,480 | 10,858,388 |
Cost | Intangible Assets with Finite Useful Lives | List of subscribers | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 8,782,852 | 8,785,423 |
Transfers and reclassifications | 16,428 | 1,162 |
Effect of translation | 5,054 | (3,733) |
Balance at end of the period | 8,804,334 | 8,782,852 |
Cost | Intangible Assets with Finite Useful Lives | Payments for renewal of concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 5,821,828 | 5,993,891 |
Additions | 3,731 | 67,285 |
Retirements | (239,348) | |
Balance at end of the period | 5,825,559 | 5,821,828 |
Cost | Intangible Assets with Finite Useful Lives | Other intangible assets | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | 5,198,960 | 4,099,750 |
Additions | 271,633 | 1,126,357 |
Transfers to property, plant and equipment | (202,282) | |
Retirements | (25,013) | (90,324) |
Transfers and reclassifications | (73,124) | 67,479 |
Effect of translation | (379) | (4,302) |
Balance at end of the period | 5,169,795 | 5,198,960 |
Accumulated Amortisation | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (19,469,413) | |
Balance at end of the period | (22,310,486) | (19,469,413) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (19,469,413) | (17,085,043) |
Amortization of the year | (2,474,510) | (2,500,646) |
Other amortization of the year | (380,863) | 531,426 |
Retirements | 30,130 | 631,738 |
Effect of translation | (15,830) | 15,964 |
Balance at end of the period | (22,310,486) | (19,469,413) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Trademarks | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (1,899,187) | (1,569,786) |
Amortization of the year | (72,127) | (329,401) |
Balance at end of the period | (1,971,314) | (1,899,187) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (332,103) | (221,402) |
Amortization of the year | (110,701) | (110,701) |
Balance at end of the period | (442,804) | (332,103) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Licenses and software | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (6,843,169) | (5,934,647) |
Amortization of the year | (1,717,282) | (1,490,841) |
Retirements | 28,127 | 529,403 |
Reclassifications | 96,304 | 44,824 |
Effect of translation | (10,886) | 8,092 |
Balance at end of the period | (8,446,906) | (6,843,169) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | List of subscribers | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (6,632,419) | (6,108,251) |
Amortization of the year | (523,878) | (530,013) |
Reclassifications | (96,719) | 2,112 |
Effect of translation | (5,054) | 3,733 |
Balance at end of the period | (7,258,070) | (6,632,419) |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Payments for renewal of concessions | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (15,454) | |
Amortization of the year | (7,773) | |
Retirements | 23,227 | |
Accumulated Amortisation | Intangible Assets with Finite Useful Lives | Other intangible assets | ||
Analysis of the changes in intangible assets | ||
Balance at beginning of the period | (3,762,535) | (3,235,503) |
Amortization of the year | (50,522) | (31,917) |
Other amortization of the year | (380,863) | 531,426 |
Retirements | 2,003 | 79,108 |
Reclassifications | 415 | (46,936) |
Effect of translation | 110 | 4,139 |
Balance at end of the period | $ (4,191,392) | $ (3,762,535) |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill, Net - Net carrying amount of goodwill, indefinite-lived trademarks and concessions (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | $ 43,328,954 | ||
Balance at end of the period | 42,724,218 | $ 43,328,954 | |
Impairment of long-lived assets | (1,387,431) | (1,446,568) | $ (1,479,511) |
Goodwill | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 14,113,626 | 14,113,626 | |
Balance at end of the period | 14,113,626 | 14,113,626 | 14,113,626 |
Goodwill | Cable | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 13,794,684 | 13,794,684 | |
Balance at end of the period | 13,794,684 | 13,794,684 | 13,794,684 |
Goodwill | Content | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 241,973 | 241,973 | |
Balance at end of the period | 241,973 | 241,973 | 241,973 |
Goodwill | Other Businesses | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 76,969 | 76,969 | |
Balance at end of the period | 76,969 | 76,969 | 76,969 |
Indefinite-lived trademarks | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 175,444 | 479,409 | |
Impairment adjustments | (40,803) | (67,574) | |
Transfers | (99,399) | (236,391) | |
Balance at end of the period | 35,242 | 175,444 | 479,409 |
Indefinite-lived trademarks | Cable | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 132,212 | 368,603 | |
Transfers | (99,399) | (236,391) | |
Balance at end of the period | 32,813 | 132,212 | 368,603 |
Indefinite-lived trademarks | Other Businesses | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 43,232 | 110,806 | |
Impairment adjustments | (40,803) | (67,574) | |
Balance at end of the period | 2,429 | 43,232 | 110,806 |
Concessions | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 15,166,067 | 15,166,067 | |
Balance at end of the period | 15,166,067 | 15,166,067 | 15,166,067 |
Concessions | Cable | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 15,070,025 | 15,070,025 | |
Balance at end of the period | 15,070,025 | 15,070,025 | 15,070,025 |
Concessions | Sky | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 96,042 | 96,042 | |
Balance at end of the period | 96,042 | 96,042 | $ 96,042 |
Trademarks | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Impairment of long-lived assets | (40,803) | (67,574) | |
Intangible Assets with Finite Useful Lives | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 13,873,817 | ||
Balance at end of the period | 13,409,283 | 13,873,817 | |
Intangible Assets with Finite Useful Lives | Concessions | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 221,402 | ||
Balance at end of the period | 110,701 | 221,402 | |
Intangible Assets with Finite Useful Lives | Trademarks | |||
Changes in the net carrying amount of goodwill, indefinite-lived trademarks and concessions | |||
Balance at beginning of the period | 228,510 | ||
Balance at end of the period | $ 255,782 | $ 228,510 |
Intangible Assets and Goodwil_7
Intangible Assets and Goodwill, Net - Assumptions used in fair value calculations of goodwill and intangible assets (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum | Other Businesses | ||
Intangible Assets and Goodwill, Net | ||
Long-term growth rate (as a percentage) | 3.50% | |
Discount rate (as a percentage) | 14.60% | |
Minimum | Cable | ||
Intangible Assets and Goodwill, Net | ||
Long-term growth rate (as a percentage) | 3.70% | 3.50% |
Discount rate (as a percentage) | 10.50% | 10.90% |
Multiple of sales | 2.3 | |
Multiple of EBITDA (as defined) | 6.3 | |
Maximum | Other Businesses | ||
Intangible Assets and Goodwill, Net | ||
Long-term growth rate (as a percentage) | 3.50% | |
Discount rate (as a percentage) | 15.60% | |
Maximum | Cable | ||
Intangible Assets and Goodwill, Net | ||
Long-term growth rate (as a percentage) | 3.90% | 3.50% |
Discount rate (as a percentage) | 11.60% | 11.20% |
Multiple of sales | 3.4 | |
Multiple of EBITDA (as defined) | 8.2 |
Intangible Assets and Goodwil_8
Intangible Assets and Goodwill, Net - Future amortization expense of trademarks (Details) - MXN ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets and Goodwill, Net | |||||
Intangible assets and goodwill, net | $ 42,724,218 | $ 43,328,954 | |||
Concessions | |||||
Intangible Assets and Goodwill, Net | |||||
Intangible assets and goodwill, net | 15,166,067 | 15,166,067 | $ 15,166,067 | ||
Intangible Assets with Finite Useful Lives | |||||
Intangible Assets and Goodwill, Net | |||||
Intangible assets and goodwill, net | 13,409,283 | 13,873,817 | |||
Intangible Assets with Finite Useful Lives | Trademarks | |||||
Intangible Assets and Goodwill, Net | |||||
Intangible assets and goodwill, net | 255,782 | 228,510 | |||
Estimated useful life (in years) | 4 years | ||||
Amortization | 321,520 | ||||
Intangible Assets with Finite Useful Lives | Concessions | |||||
Intangible Assets and Goodwill, Net | |||||
Intangible assets and goodwill, net | $ 110,701 | 221,402 | |||
Estimated useful life (in years) | 5 years | ||||
Amortization | $ 110,701 | $ 110,701 | |||
Intangible Assets with Finite Useful Lives | Concessions | 2021 | |||||
Intangible Assets and Goodwill, Net | |||||
Amortization | $ 110,701 | ||||
Intangible Assets with Finite Useful Lives | Concessions | 2023 | |||||
Intangible Assets and Goodwill, Net | |||||
Intangible assets and goodwill, net | $ 553,505 |
Debt, Lease Liabilities and O_3
Debt, Lease Liabilities and Other Notes Payable (Details) $ in Thousands, $ in Millions | Oct. 03, 2019MXN ($) | Jul. 31, 2019MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Oct. 31, 2017MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2014MXN ($) | Dec. 31, 2010MXN ($) |
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal amount | $ 123,877,278 | |||||||
Senior notes due between 2025 and 2049 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Unsecured outstanding principal amount | $ 4,450 | $ 11,000,000 | ||||||
Senior notes redemption price (as a percent) | 101.00% | |||||||
6.625% Senior Notes due 2025 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 6.97% | 6.97% | ||||||
6.625% Senior notes 1 due 2025 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Unsecured outstanding principal amount | $ 400 | |||||||
Senior Notes priced at yield to maturity (as a percent) | 98.081% | |||||||
Debt instrument yield to maturity (as a percent) | 6.802% | |||||||
6.625% Senior notes 2 due 2025 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Unsecured outstanding principal amount | $ 200 | |||||||
Senior Notes priced at yield to maturity (as a percent) | 98.632% | |||||||
Debt instrument yield to maturity (as a percent) | 6.787% | |||||||
4.625% Senior Notes due 2026 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 4.86% | 4.86% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 99.385% | |||||||
Debt instrument yield to maturity (as a percent) | 4.70% | |||||||
8.50% Senior Notes due 2032 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 8.94% | 8.94% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 99.431% | |||||||
Debt instrument yield to maturity (as a percent) | 8.553% | |||||||
8.49% Senior Notes due 2037 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 8.93% | 8.93% | ||||||
6.625% Senior Notes due 2040 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 6.97% | 6.97% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 98.319% | |||||||
Debt instrument yield to maturity (as a percent) | 6.755% | |||||||
7.25% Senior Notes due 2043 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 7.62% | 7.62% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 99.733% | |||||||
Debt instrument yield to maturity (as a percent) | 7.27% | |||||||
5% Senior Notes due 2045 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 5.26% | 5.26% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 96.534% | |||||||
Debt instrument yield to maturity (as a percent) | 5.227% | |||||||
6.125% Senior Notes due 2046 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 6.44% | 6.44% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 99.677% | |||||||
Debt instrument yield to maturity (as a percent) | 6.147% | |||||||
Senior Notes Due 2049 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Interest including withholding taxes (as a percent) | 5.52% | 5.52% | ||||||
Senior Notes priced at yield to maturity (as a percent) | 98.588% | |||||||
Debt instrument yield to maturity (as a percent) | 5.345% | |||||||
7.38% Notes due 2020 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal amount | $ 10,000,000 | |||||||
TIIE + 0.35% Notes due 2021 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal amount | $ 6,000,000 | |||||||
Number of days interest is payable | 28 days | |||||||
TIIE + 0.35% Notes due 2022 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal amount | $ 5,000,000 | |||||||
Number of days interest is payable | 28 days | |||||||
8.79% Notes due 2027 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal amount | $ 4,500,000 | |||||||
Notes due 2021 and 2022 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Prepayment of principal | $ 11,000,000 | |||||||
Notes due 2020 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Prepayment of principal | $ 10,000,000 | |||||||
TIIE | TIIE + 0.35% Notes due 2021 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Variable interest rate spread (as a percent) | 0.35% | 0.35% | ||||||
TIIE | TIIE + 0.35% Notes due 2022 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Variable interest rate spread (as a percent) | 0.35% | 0.35% |
Debt, Lease Liabilities and O_4
Debt, Lease Liabilities and Other Notes Payable - Other notes payable (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 |
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 123,877,278 | |||||||
Principal amount of current portion of long-term debt | 617,489 | |||||||
Principal amount of long-term debt, net of current portion | 123,259,789 | |||||||
Finance Costs | (1,324,307) | |||||||
Finance Cost on current portion of long-term debt | (498) | |||||||
Finance Cost on long-term debt, net of current portion | (1,323,809) | |||||||
Total debt, excluding interest payable | 122,552,971 | |||||||
Less: Current portion of long-term debt, excluding interest payable | 616,991 | |||||||
Long-term debt, net of current portion, excluding interest payable | 121,935,980 | |||||||
Interest Payable | 1,934,656 | $ 1,943,863 | ||||||
Interest Payable on current portion of long-term debt | 1,934,656 | |||||||
Total debt | 124,487,627 | 122,880,558 | ||||||
Less: Current portion of long-term debt | 2,551,647 | 2,435,814 | ||||||
Long-term debt, net of current portion | 121,935,980 | 120,444,744 | ||||||
Lease liabilities: | ||||||||
Total lease liabilities | 9,292,351 | 9,363,520 | ||||||
Less: Current portion | 1,277,754 | 1,257,766 | ||||||
Lease liabilities, net of current portion | $ 8,014,597 | 8,105,754 | ||||||
Other notes payable: | ||||||||
Less: Current portion | 1,324,063 | |||||||
Effective interest rate on other notes payable | 3.00% | |||||||
IFRS 16 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Total debt, excluding interest payable | 4,745,292 | |||||||
Lease liabilities: | ||||||||
Total lease liabilities | $ 4,745,292 | 4,745,292 | $ 10,115,256 | $ 4,641,705 | ||||
Satellite Transponders | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Total debt, excluding interest payable | $ 3,818,559 | |||||||
Effective Interest Rate | 7.30% | |||||||
Lease liabilities: | ||||||||
Total lease liabilities | $ 3,818,559 | 4,014,567 | ||||||
Other | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Total debt, excluding interest payable | $ 728,500 | |||||||
Effective Interest Rate | 7.94% | |||||||
Lease liabilities: | ||||||||
Total lease liabilities | $ 728,500 | 707,248 | ||||||
7.38% Notes due 2020 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 10,000,000 | |||||||
TIIE + 0.35% Notes due 2021 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 6,000,000 | |||||||
TIIE + 0.35% Notes due 2022 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 5,000,000 | |||||||
8.79% Notes due 2027 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 4,500,000 | |||||||
TIIE | TIIE + 0.35% Notes due 2021 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Variable interest rate spread (as a percent) | 0.35% | |||||||
TIIE | TIIE + 0.35% Notes due 2022 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Variable interest rate spread (as a percent) | 0.35% | |||||||
U.S. dollar | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 88,774,385 | |||||||
Finance Costs | (1,154,055) | |||||||
Total debt, excluding interest payable | 87,620,330 | |||||||
Interest Payable | 1,722,733 | |||||||
Total debt | $ 89,343,063 | 84,426,111 | ||||||
U.S. dollar | 6.625% Senior Notes due 2025 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 6.625% | |||||||
Principal | $ 11,969,580 | |||||||
Finance Costs | (162,815) | |||||||
Total debt, excluding interest payable | 11,806,765 | |||||||
Interest Payable | 224,679 | |||||||
Total debt | $ 12,031,444 | 11,341,835 | ||||||
Effective Interest Rate | 7.60% | |||||||
U.S. dollar | 4.625% Senior Notes due 2026 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 4.625% | |||||||
Principal | $ 5,984,790 | |||||||
Finance Costs | (24,424) | |||||||
Total debt, excluding interest payable | 5,960,366 | |||||||
Interest Payable | 138,398 | |||||||
Total debt | $ 6,098,764 | 5,766,754 | ||||||
Effective Interest Rate | 5.03% | |||||||
U.S. dollar | 8.50% Senior Notes due 2032 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 8.50% | |||||||
Principal | $ 5,984,790 | |||||||
Finance Costs | (19,870) | |||||||
Total debt, excluding interest payable | 5,964,920 | |||||||
Interest Payable | 155,438 | |||||||
Total debt | $ 6,120,358 | 5,790,640 | ||||||
Effective Interest Rate | 9.00% | |||||||
U.S. dollar | 6.625% Senior Notes due 2040 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 6.625% | |||||||
Principal | $ 11,969,580 | |||||||
Finance Costs | (120,485) | |||||||
Total debt, excluding interest payable | 11,849,095 | |||||||
Interest Payable | 431,736 | |||||||
Total debt | $ 12,280,831 | 11,612,104 | ||||||
Effective Interest Rate | 7.05% | |||||||
U.S. dollar | 5% Senior Notes due 2045 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 5.00% | |||||||
Principal | $ 19,949,300 | |||||||
Finance Costs | (412,967) | |||||||
Total debt, excluding interest payable | 19,536,333 | |||||||
Interest Payable | 144,079 | |||||||
Total debt | $ 19,680,412 | 18,590,304 | ||||||
Effective Interest Rate | 5.39% | |||||||
U.S. dollar | 5.25% Senior Notes due 2049 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 5.25% | |||||||
Principal | $ 14,961,975 | |||||||
Finance Costs | (294,210) | |||||||
Total debt, excluding interest payable | 14,667,765 | |||||||
Interest Payable | 78,550 | |||||||
Total debt | $ 14,746,315 | 13,932,641 | ||||||
Effective Interest Rate | 5.59% | |||||||
U.S. dollar | 6.125% Senior Notes due 2046 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 6.125% | |||||||
Principal | $ 17,954,370 | |||||||
Finance Costs | (119,284) | |||||||
Total debt, excluding interest payable | 17,835,086 | |||||||
Interest Payable | 549,853 | |||||||
Total debt | $ 18,384,939 | 17,391,833 | ||||||
Effective Interest Rate | 6.47% | |||||||
Mexican peso | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 35,102,893 | |||||||
Finance Costs | (170,252) | |||||||
Total debt, excluding interest payable | 34,932,641 | |||||||
Interest Payable | 211,923 | |||||||
Total debt | $ 35,144,564 | 38,454,447 | ||||||
Mexican peso | 8.79% Notes due 2027 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 8.79% | |||||||
Principal | $ 4,500,000 | |||||||
Finance Costs | (16,122) | |||||||
Total debt, excluding interest payable | 4,483,878 | |||||||
Interest Payable | 95,591 | |||||||
Total debt | $ 4,579,469 | 4,574,913 | ||||||
Effective Interest Rate | 8.84% | |||||||
Mexican peso | 8.49% Senior Notes due 2037 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 8.49% | |||||||
Principal | $ 4,500,000 | |||||||
Finance Costs | (11,903) | |||||||
Total debt, excluding interest payable | 4,488,097 | |||||||
Interest Payable | 31,838 | |||||||
Total debt | $ 4,519,935 | 4,519,209 | ||||||
Effective Interest Rate | 8.94% | |||||||
Mexican peso | 7.25% Senior Notes due 2043 | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Borrowing interest rate (as a percent) | 7.25% | |||||||
Principal | $ 6,500,000 | |||||||
Finance Costs | (53,091) | |||||||
Total debt, excluding interest payable | 6,446,909 | |||||||
Interest Payable | 65,451 | |||||||
Total debt | $ 6,512,360 | 6,517,845 | ||||||
Effective Interest Rate | 7.92% | |||||||
Mexican peso | Bank loans | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 16,000,000 | |||||||
Finance Costs | (88,350) | |||||||
Total debt, excluding interest payable | 15,911,650 | |||||||
Interest Payable | 6,672 | |||||||
Total debt | $ 15,918,322 | 15,971,960 | ||||||
Effective Interest Rate | 5.62% | |||||||
Mexican peso | Bank loans (Sky) | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 2,750,000 | |||||||
Total debt, excluding interest payable | 2,750,000 | |||||||
Interest Payable | 12,371 | |||||||
Total debt | $ 2,762,371 | 5,525,212 | ||||||
Effective Interest Rate | 7.04% | |||||||
Mexican peso | Bank loans (TVI) | ||||||||
Debt, lease liabilities and other notes payable outstanding | ||||||||
Principal | $ 852,893 | |||||||
Finance Costs | (786) | |||||||
Total debt, excluding interest payable | 852,107 | |||||||
Total debt | $ 852,107 | $ 1,345,308 | ||||||
Effective Interest Rate | 5.97% |
Debt, Lease Liabilities and O_5
Debt, Lease Liabilities and Other Notes Payable - Bank loans (Details) $ in Thousands, $ in Millions | Oct. 06, 2020MXN ($) | Jul. 31, 2020MXN ($) | Mar. 31, 2020MXN ($) | Jul. 31, 2019MXN ($) | Dec. 31, 2017MXN ($)company | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2016MXN ($) |
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Principal amount | $ 123,877,278 | ||||||||||
Amount drew down | $ 10,000,000 | ||||||||||
Repayment of debt | 492,489 | 989,156 | $ 307,489 | ||||||||
Unamortised finance costs | 1,441,597 | ||||||||||
Interest payable on total debt | 1,934,656 | 1,943,863 | |||||||||
Notional amount | 123,877,278 | ||||||||||
Bank loans maturities between 2022 and 2023 | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Number of Mexican banks, entered into long-term credit agreements | company | 3 | ||||||||||
Principal amount | $ 6,000,000 | ||||||||||
Base rate | TIIE | ||||||||||
Number of days interest is payable | 28 days | ||||||||||
Notional amount | $ 6,000,000 | ||||||||||
Bank loans mature in 2021 and 2023, (Sky) | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Principal amount | $ 5,500,000 | ||||||||||
Repayment of debt | $ 2,818,091 | ||||||||||
Notional amount | $ 5,500,000 | ||||||||||
Repayment of debt, principal component | 2,750,000 | ||||||||||
Payment of accrued interest and transaction costs on debt | $ 68,091 | ||||||||||
Bank loans maturities between 2019 And 2022 (TVI) | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Principal amount | $ 852,893 | 1,345,382 | |||||||||
Base rate | TIIE | ||||||||||
Notional amount | $ 852,893 | $ 1,345,382 | |||||||||
Syndicate of Banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Principal amount | $ 10,000,000 | ||||||||||
Base rate | TIIE | ||||||||||
Term of borrowings | 5 years | ||||||||||
Notional amount | $ 10,000,000 | ||||||||||
Revolving credit facility with a syndicate of banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Principal amount | $ 618 | ||||||||||
Amount drew down | $ 14,770,694 | ||||||||||
Repayment of debt | $ 14,770,694 | ||||||||||
Prepaid to the company | $ 618 | ||||||||||
Notional amount | $ 618 | ||||||||||
TIIE | Revolving credit facility with a syndicate of banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Base rate | TIIE | ||||||||||
Minimum | Bank loans maturities between 2022 and 2023 | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.25% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.25% | ||||||||||
Minimum | Bank loans 1 mature in 2021 and 2023, (Sky) | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Interest rate | 7.00% | ||||||||||
Minimum | Syndicate of Banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.05% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.05% | ||||||||||
Minimum | TIIE | Bank loans maturities between 2019 And 2022 (TVI) | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.00% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.00% | ||||||||||
Minimum | TIIE | Revolving credit facility with a syndicate of banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 87.50% | ||||||||||
Borrowings, adjustment to interest rate basis | 87.50% | ||||||||||
Maximum | Bank loans maturities between 2022 and 2023 | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.30% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.30% | ||||||||||
Maximum | Bank loans 2 mature in 2021 and 2023, (Sky) | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Interest rate | 7.13% | ||||||||||
Maximum | Syndicate of Banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.30% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.30% | ||||||||||
Maximum | TIIE | Bank loans maturities between 2019 And 2022 (TVI) | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.25% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.25% | ||||||||||
Maximum | TIIE | Revolving credit facility with a syndicate of banks | |||||||||||
Debt, lease liabilities and other notes payable outstanding | |||||||||||
Variable interest rate spread (as a percent) | 1.125% | ||||||||||
Borrowings, adjustment to interest rate basis | 1.125% |
Debt, Lease Liabilities and O_6
Debt, Lease Liabilities and Other Notes Payable - Finance leases and Other notes payable (Details) $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2019MXN ($) | Mar. 31, 2010USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Jan. 01, 2019MXN ($) | |
Debt, lease liabilities and other notes payable outstanding | ||||||
Lease liabilities | $ 9,292,351 | $ 9,363,520 | ||||
Other Notes Payable | 1,324,063 | |||||
Repayment of Mexican peso debt | 492,489 | 989,156 | $ 307,489 | |||
Notional amount | 123,877,278 | |||||
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Lease liabilities | 728,500 | 699,066 | ||||
IFRS 16 | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Lease liabilities | 4,745,292 | 4,745,292 | 4,641,705 | $ 10,115,256 | ||
Syndicate of Banks | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Term of borrowings | 5 years | |||||
Notional amount | $ 10,000,000 | |||||
Borrowings, interest rate basis | TIIE | |||||
Syndicate of Banks | Minimum | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Borrowings, adjustment to interest rate basis | 1.05% | |||||
Syndicate of Banks | Maximum | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Borrowings, adjustment to interest rate basis | 1.30% | |||||
TVI | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Other Notes Payable | 1,330,000 | 2,624,375 | ||||
Interest expense on other notes payable | 142,500 | 249,375 | ||||
Accumulated accrued interest | 136,563 | $ 201,874 | ||||
Satellite Transponders | ||||||
Debt, lease liabilities and other notes payable outstanding | ||||||
Obligated interest rate | 7.30% | |||||
Capital lease monthly fees (Sky) | $ 3 | |||||
Lease liabilities | $ 3,818,559 | $ 4,014,567 | ||||
Lease term | 15 years |
Debt, Lease Liabilities and O_7
Debt, Lease Liabilities and Other Notes Payable - Hedged Items (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | |
Disclosure of detailed information about hedged items [line items] | ||||||
Notional Amount | $ 123,877,278 | |||||
Warrants issued by UHI | ||||||
Offset against: | ||||||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | $ (1,403,384) | |||||
Open Ended Fund | ||||||
Offset against: | ||||||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | (289,298) | |||||
Designated as hedging instruments | ||||||
Disclosure of detailed information about hedged items [line items] | ||||||
Notional Amount | $ 1,130.9 | 22,559,983 | $ 2,470.6 | $ 46,653,315 | ||
Recognized in: | ||||||
Comprehensive income | $ (7,343,244) | 2,030,424 | ||||
Total foreign exchange (loss) gain derived from hedging Senior Notes | (7,343,244) | 2,030,424 | ||||
Offset against: | ||||||
Total foreign currency translation and foreign exchange gain (loss) derived from hedged assets | 7,343,244 | (2,030,424) | ||||
Designated as hedging instruments | Investment in shares of UHI | ||||||
Offset against: | ||||||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | 1,360,735 | (337,742) | ||||
Designated as hedging instruments | Warrants issued by UHI | ||||||
Disclosure of detailed information about hedged items [line items] | ||||||
Notional Amount | 1,788.6 | 33,775,451 | ||||
Offset against: | ||||||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | 5,511,412 | (1,403,384) | ||||
Designated as hedging instruments | Open Ended Fund | ||||||
Offset against: | ||||||
Foreign exchange gain (loss) derived from the hedged Warrants issued by UHI and investments in Open-Ended Fund | $ 471,097 | $ (289,298) | ||||
Designated as hedging instruments | Net investment | Investment in shares of UHI | ||||||
Disclosure of detailed information about hedged items [line items] | ||||||
Notional Amount | 1,074 | 21,424,180 | 433.7 | 8,189,662 | ||
Designated as hedging instruments | Fair value hedge of foreign currency | Open Ended Fund | ||||||
Disclosure of detailed information about hedged items [line items] | ||||||
Notional Amount | $ 56.9 | $ 1,135,803 | $ 248.3 | $ 4,688,202 |
Debt, Lease Liabilities and O_8
Debt, Lease Liabilities and Other Notes Payable - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2020MXN ($) |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | $ 123,877,278 |
Unamortized Finance Costs | (1,324,307) |
2021 | |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | 617,489 |
Unamortized Finance Costs | (498) |
2022 | |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | 5,485,404 |
Unamortized Finance Costs | (8,213) |
2023 | |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | 3,500,000 |
Unamortized Finance Costs | (6,290) |
2024 | |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | 10,000,000 |
Unamortized Finance Costs | (74,135) |
2025 | |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | 11,969,580 |
Unamortized Finance Costs | (162,815) |
Thereafter | |
Maturity analysis for non-derivative financial liabilities | |
Principal amount | 92,304,805 |
Unamortized Finance Costs | $ (1,072,356) |
Debt, Lease Liabilities and O_9
Debt, Lease Liabilities and Other Notes Payable - Maturities of Lease Liabilities (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | $ 12,909,436 | |
Less: Amount representing interest | (3,617,085) | |
Lease liabilities | 9,292,351 | $ 9,363,520 |
2021 | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | 1,946,215 | |
2022 | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | 1,708,943 | |
2023 | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | 1,644,473 | |
2024 | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | 1,583,671 | |
2025 | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | 1,510,847 | |
Thereafter | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Minimum future lease payments | $ 4,515,287 |
Debt, Lease Liabilities and _10
Debt, Lease Liabilities and Other Notes Payable - Reconciliation of long-term debt and lease liabilities arising from financing activities (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2018USD ($) | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Finance cost | $ 10,482,168 | $ 11,275,198 | $ 10,566,966 | |
Principal amount | 123,877,278 | |||
Revolving credit facility with a syndicate of banks | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Principal amount | $ 618 | |||
Total debt and lease liabilities | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Balance at beginning of the period | 131,691,281 | 133,239,894 | ||
Balance at beginning of the period | 131,741,812 | |||
New Debt and Leases | 14,770,694 | 24,298,075 | ||
Payments | (19,635,231) | (23,482,843) | ||
New Debt | (735,785) | 845,507 | ||
Foreign Exchange Income | 5,022,034 | (3,258,027) | ||
Interest | 534,535 | 48,675 | ||
Balance at end of the period | 133,169,629 | 131,691,281 | 133,239,894 | |
Debt | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Balance at beginning of the period | 122,378,292 | 123,124,638 | ||
Balance at beginning of the period | 122,378,292 | |||
New Debt and Leases | 14,770,694 | 24,298,075 | ||
Payments | (18,013,183) | (21,989,156) | ||
Foreign Exchange Income | 4,741,475 | (3,055,265) | ||
Balance at end of the period | 123,877,278 | 122,378,292 | 123,124,638 | |
Finance Costs | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Finance cost | 50,531 | |||
Payments | (50,531) | |||
Satellite transponder lease liabilities | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Balance at beginning of the period | 4,014,567 | 4,569,773 | ||
Balance at beginning of the period | 4,014,567 | |||
Payments | (456,465) | (387,428) | ||
Foreign Exchange Income | 260,457 | (167,778) | ||
Balance at end of the period | 3,818,559 | 4,014,567 | 4,569,773 | |
Other lease liabilities | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Balance at beginning of the period | 707,248 | 748,171 | ||
Balance at beginning of the period | 707,248 | |||
Payments | (211,812) | (172,195) | ||
New Debt | (195,308) | 82,597 | ||
Interest | 37,756 | 48,675 | ||
Balance at end of the period | 728,500 | 707,248 | 748,171 | |
Lease liabilities recognized as of January 1,2019 | ||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||
Balance at beginning of the period | 4,641,705 | 4,797,312 | ||
Balance at beginning of the period | 4,641,705 | |||
Payments | (953,771) | (883,533) | ||
New Debt | (540,477) | 762,910 | ||
Foreign Exchange Income | 20,102 | (34,984) | ||
Interest | 496,779 | |||
Balance at end of the period | $ 4,745,292 | $ 4,641,705 | $ 4,797,312 |
Financial Instruments - Non-Der
Financial Instruments - Non-Derivative (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents | ||
Financial Instruments | ||
Assets | $ 29,058,093 | $ 27,452,265 |
Assets at fair value | 29,058,093 | 27,452,265 |
Trade notes and accounts receivable, net | ||
Financial Instruments | ||
Assets | 12,343,797 | 14,486,184 |
Assets at fair value | 12,343,797 | 14,486,184 |
Warrants issued by UHI | ||
Financial Instruments | ||
Assets | 33,775,451 | |
Assets at fair value | 33,775,451 | |
Warrants issued by UHI | UHI | ||
Financial Instruments | ||
Assets | 33,775,451 | |
Assets at fair value | 33,775,451 | |
Long-term loan and interest receivable from GTAC | ||
Financial Instruments | ||
Assets | 821,253 | 872,317 |
Assets at fair value | 824,092 | 875,585 |
Long-term loan and interest receivable from GTAC | Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") | ||
Financial Instruments | ||
Assets | 821,253 | 872,317 |
Assets at fair value | 824,092 | 875,585 |
Open Ended Fund | ||
Financial Instruments | ||
Assets | 1,135,803 | 4,688,202 |
Assets at fair value | 1,135,803 | 4,688,202 |
Other Equity Instruments | ||
Financial Instruments | ||
Assets | 5,397,504 | 5,751,001 |
Assets at fair value | 5,397,504 | 5,751,001 |
Senior Notes due 2025, 2032 and 2040 | ||
Financial Instruments | ||
Liabilities | 29,923,950 | 28,325,700 |
Liabilities at fair value | 40,584,237 | 34,954,254 |
Senior Notes due 2045 | ||
Financial Instruments | ||
Liabilities | 19,949,300 | 18,883,800 |
Liabilities at fair value | 24,282,886 | 19,739,047 |
Senior Notes due 2037 and 2043 | ||
Financial Instruments | ||
Liabilities | 11,000,000 | 11,000,000 |
Liabilities at fair value | 9,238,435 | 8,986,870 |
Senior Notes due 2026 and 2046 | ||
Financial Instruments | ||
Liabilities | 23,939,160 | 22,660,560 |
Liabilities at fair value | 31,811,792 | 26,645,193 |
Senior Notes Due 2049 | ||
Financial Instruments | ||
Liabilities | 14,961,975 | 14,162,850 |
Liabilities at fair value | 18,978,667 | 15,364,426 |
Notes due 2027 | ||
Financial Instruments | ||
Liabilities | 4,500,000 | 4,500,000 |
Liabilities at fair value | 5,035,860 | 4,656,375 |
Long-term notes payable to Mexican banks | ||
Financial Instruments | ||
Liabilities | 19,602,893 | 22,845,382 |
Liabilities at fair value | 19,801,142 | 23,012,707 |
Lease liabilities | ||
Financial Instruments | ||
Liabilities | 9,292,351 | 9,363,520 |
Liabilities at fair value | $ 9,343,100 | 9,120,903 |
Other notes payable | ||
Financial Instruments | ||
Liabilities | 1,324,063 | |
Liabilities at fair value | $ 1,295,780 |
Financial Instruments - Derivat
Financial Instruments - Derivative (Detail) $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2020MXN ($)$ / $Institution | Dec. 31, 2019MXN ($)$ / $ | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Oct. 31, 2020MXN ($) | Mar. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Jul. 31, 2019MXN ($) | Jan. 31, 2018MXN ($) | Dec. 31, 2017MXN ($) | Nov. 30, 2017MXN ($) | |
Derivative Financial Instruments | ||||||||||||
Carrying Value, Assets | $ 4,592 | |||||||||||
Carrying Value, Liabilities | $ 3,476,223 | 915,290 | ||||||||||
Notional Amount | 123,877,278 | |||||||||||
Designated as hedging instruments | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Notional Amount | $ 1,130,900 | 22,559,983 | $ 2,470,600 | 46,653,315 | ||||||||
Designated as hedging instruments | Interest rate swap maturity at October 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 109,146 | 30,702 | ||||||||||
Notional Amount | 2,000,000 | 1,500,000 | $ 2,000,000 | |||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | $ 107,884 | $ 38,543 | ||||||||||
Gain (loss) on change in fair value of hedge instruments | (28,719) | 20,933 | ||||||||||
Designated as hedging instruments | Interest rate swap maturity in October 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 86,171 | 38,543 | ||||||||||
Notional Amount | $ 1,500,000 | $ 2,000,000 | $ 1,500,000 | |||||||||
Borrowing interest rate (as a percent) | 7.35% | 7.35% | 7.35% | 7.35% | ||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | 85,217 | 30,702 | ||||||||||
Gain (loss) on change in fair value of hedge instruments | 21,741 | |||||||||||
Designated as hedging instruments | Interest rate swap maturity at February 2023 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 180,941 | $ 83,122 | ||||||||||
Notional Amount | $ 2,500,000 | $ 2,500,000 | $ 2,500,000 | |||||||||
Borrowing interest rate (as a percent) | 7.7485% | 7.7485% | 7.7485% | 7.7485% | ||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | 175,498 | $ 83,122 | ||||||||||
Gain (loss) on change in fair value of hedge instruments | 42,553 | |||||||||||
Designated as hedging instruments | Interest rate swap maturity at June 2024 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 762,827 | $ 185,205 | ||||||||||
Notional Amount | $ 10,000,000 | $ 6,000,000 | $ 6,000,000 | $ 10,000,000 | ||||||||
Borrowing interest rate (as a percent) | 6.762% | 6.762% | 6.762% | 6.762% | ||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | (747,630) | |||||||||||
Gain (loss) on change in fair value of hedge instruments | $ 89,336 | |||||||||||
Designated as hedging instruments | Forward maturity at January 2020 through September 2020 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 144,466 | |||||||||||
Notional Amount | $ 218,688 | |||||||||||
Average foreign exchange rate | $ / $ | 19.9256 | |||||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | $ 144,466 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | (107,440) | |||||||||||
Designated as hedging instruments | Forwards maturity at January 2021 through March 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 714,763 | |||||||||||
Notional Amount | $ 330,500 | |||||||||||
Average foreign exchange rate | $ / $ | 22.5859 | |||||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | $ 714,763 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | 308,562 | |||||||||||
Designated as hedging instruments | TVI | Interest rate swap maturity between May 2020 through May 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Assets | 4,592 | |||||||||||
Notional Amount | 407,200 | |||||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | 54,383 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | 26,962 | |||||||||||
Designated as hedging instruments | TVI | Interest rate swap maturity at April 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 23,784 | 8,943 | ||||||||||
Notional Amount | $ 730,493 | 938,182 | ||||||||||
Borrowing interest rate (as a percent) | 7.2663% | 7.2663% | ||||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | 23,784 | 8,943 | ||||||||||
Gain (loss) on change in fair value of hedge instruments | $ (11,700) | $ 11,738 | ||||||||||
Designated as hedging instruments | TVI | Interest rate swap maturity at May 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 1,759 | |||||||||||
Notional Amount | $ 122,400 | |||||||||||
Number of financial institutions for derivative agreements | Institution | 2 | |||||||||||
Cumulative gain (loss) on change in fair value of hedge instruments | $ (60,730) | |||||||||||
Gain (loss) on change in fair value of hedge instruments | 2,046 | |||||||||||
Designated as hedging instruments | Average fixed rate | Interest rate swap maturity at October 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Borrowing interest rate (as a percent) | 7.3275% | 7.3275% | ||||||||||
Designated as hedging instruments | Average fixed rate | TVI | Interest rate swap maturity at May 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Borrowing interest rate (as a percent) | 5.585% | 5.585% | ||||||||||
Not designated as hedging instruments | Interest rate swap maturity at March 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 204,250 | |||||||||||
Notional Amount | $ 9,385,347 | $ 9,385,347 | ||||||||||
Borrowing interest rate (as a percent) | 6.0246% | 6.0246% | ||||||||||
Gain (loss) on change in fair value of hedge instruments | 274,285 | |||||||||||
Not designated as hedging instruments | Forward maturity at January 2020 through October 2020 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 242,777 | |||||||||||
Notional Amount | 361,550 | |||||||||||
Average foreign exchange rate | $ / $ | 19.9898 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | $ (207,412) | $ 820,585 | ||||||||||
Not designated as hedging instruments | Forward maturity at January 2021 through February 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 706,287 | |||||||||||
Notional Amount | $ 344,898 | 361,500 | ||||||||||
Average foreign exchange rate | $ / $ | 22.4872 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | $ 207,412 | |||||||||||
Not designated as hedging instruments | TVI | Forward maturity at January 2020 through October 2020 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 45,968 | |||||||||||
Notional Amount | 66,000 | |||||||||||
Not designated as hedging instruments | TVI | Forward maturity at January 2021 through February 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 176,868 | |||||||||||
Notional Amount | 88,353 | |||||||||||
Average foreign exchange rate | $ / $ | 22.4570 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | $ (3,482) | |||||||||||
Not designated as hedging instruments | Empresas Cablevision | Forward maturity at January 2020 through October 2020 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 48,474 | |||||||||||
Notional Amount | 73,000 | |||||||||||
Not designated as hedging instruments | Empresas Cablevision | Forward maturity at January 2021 through February 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | 190,726 | |||||||||||
Notional Amount | 96,789 | |||||||||||
Average foreign exchange rate | $ / $ | 22.4103 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | $ (300) | |||||||||||
Not designated as hedging instruments | Sky's forward | Forward maturity at January 2020 through September 2020 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 87,090 | |||||||||||
Notional Amount | $ 127,850 | |||||||||||
Not designated as hedging instruments | Sky's forward | Forward maturity at February 2021 through February 2022 | ||||||||||||
Derivative Financial Instruments | ||||||||||||
Carrying Value, Liabilities | $ 318,701 | |||||||||||
Notional Amount | $ 135,000 | |||||||||||
Average foreign exchange rate | $ / $ | 22.8411 | |||||||||||
Gain (loss) on change in fair value of hedge instruments | $ (43,419) |
Financial Instruments - Assets
Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative financial instruments | |||
Financial Instruments | |||
Assets at fair value | $ 4,592 | ||
Open Ended Fund | |||
Financial Instruments | |||
Assets at fair value | $ 1,135,803 | 4,688,202 | |
Other Equity Instruments | |||
Financial Instruments | |||
Assets at fair value | 5,397,504 | 5,751,001 | |
Warrants issued by UHI | |||
Financial Instruments | |||
Assets at fair value | 33,775,451 | ||
Recurring basis | |||
Financial Instruments | |||
Assets at fair value | 6,533,307 | 44,219,246 | |
Liabilities at fair value | 3,476,223 | ||
Recurring basis | Derivative financial instruments | |||
Financial Instruments | |||
Liabilities at fair value | 3,476,223 | ||
Recurring basis | FVOCIL | |||
Financial Instruments | |||
Liabilities at fair value | 915,290 | ||
Recurring basis | Open Ended Fund | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | 1,135,803 | 4,688,202 | |
Recurring basis | Other Equity Instruments | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | 5,397,504 | 5,751,001 | |
Recurring basis | Derivative financial instruments | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | 4,592 | ||
Liabilities at fair value | 915,290 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | |||
Financial Instruments | |||
Assets at fair value | 5,397,504 | 5,751,001 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | Other Equity Instruments | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | 5,397,504 | 5,751,001 | |
Internal Models with Significant Observable Inputs (Level 2) | Recurring basis | |||
Financial Instruments | |||
Assets at fair value | 1,135,803 | 4,692,794 | |
Liabilities at fair value | 3,476,223 | ||
Internal Models with Significant Observable Inputs (Level 2) | Recurring basis | Derivative financial instruments | |||
Financial Instruments | |||
Liabilities at fair value | 3,476,223 | ||
Internal Models with Significant Observable Inputs (Level 2) | Recurring basis | FVOCIL | |||
Financial Instruments | |||
Liabilities at fair value | 915,290 | ||
Internal Models with Significant Observable Inputs (Level 2) | Recurring basis | Open Ended Fund | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | $ 1,135,803 | 4,688,202 | |
Internal Models with Significant Observable Inputs (Level 2) | Recurring basis | Derivative financial instruments | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | 4,592 | ||
Liabilities at fair value | 915,290 | ||
Internal Models with Significant Unobservable Inputs (Level 3) | |||
Financial Instruments | |||
Assets at fair value | 33,775,451 | $ 34,921,530 | |
Internal Models with Significant Unobservable Inputs (Level 3) | Recurring basis | |||
Financial Instruments | |||
Assets at fair value | 33,775,451 | ||
UHI | Warrants issued by UHI | |||
Financial Instruments | |||
Assets at fair value | 33,775,451 | ||
UHI | Recurring basis | Warrants issued by UHI | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | 33,775,451 | ||
UHI | Internal Models with Significant Unobservable Inputs (Level 3) | Recurring basis | Warrants issued by UHI | FVOCIL | |||
Financial Instruments | |||
Assets at fair value | $ 33,775,451 |
Financial Instruments - Signifi
Financial Instruments - Significant Unobservable Inputs (Details) - Internal Models with Significant Unobservable Inputs (Level 3) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation for all assets and liabilities measured at fair value | ||
Balance at beginning of year | $ 33,775,451 | $ 34,921,530 |
Included in other comprehensive income | (16,387,752) | (1,146,079) |
Warrants exercised for common stock of UHI | $ (17,387,699) | |
Balance at the end of year | $ 33,775,451 |
Financial Instruments (Details)
Financial Instruments (Details) $ / shares in Units, $ in Millions | Dec. 29, 2020 | Jul. 31, 2015USD ($)shares | Dec. 31, 2020MXN ($)$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2010USD ($) |
Financial Instruments | ||||||
Principal amount | $ 123,877,278,000 | |||||
UHI | ||||||
Financial Instruments | ||||||
Principal amount | $ 1,063.1 | |||||
UHI | Warrants issued by UHI | ||||||
Financial Instruments | ||||||
Principal amount | $ 1,125 | |||||
Warrants exercisable for UHI's common stock | shares | 4,858,485 | |||||
Warrants exercised | shares | 267,532 | |||||
Stock spot price | $ / shares | $ 190 | $ 390 | $ 387 | |||
Expected volatility rate | 64.00% | 40.00% | 36.00% | |||
Minimum | UHI | Warrants issued by UHI | ||||||
Financial Instruments | ||||||
Equity stake | 10.00% | 7.80% | ||||
Minimum | UHI | Warrants issued by UHI | Weighted average cost of capital | ||||||
Financial Instruments | ||||||
Weighted average cost of capital | 8 | |||||
Exit multiple | 8 | |||||
Maximum | UHI | Warrants issued by UHI | ||||||
Financial Instruments | ||||||
Equity stake | 35.90% | 10.00% | ||||
Maximum | UHI | Warrants issued by UHI | Weighted average cost of capital | ||||||
Financial Instruments | ||||||
Weighted average cost of capital | 9 | |||||
Exit multiple | 9 |
Financial Instruments - Class o
Financial Instruments - Class of Assets and Liabilities Subject to Recurring Fair Value Measurements Categorized Within Level 3 (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Non-recurring basis | |
Financial Instruments | |
Expected future cash flow time period | 5 years |
Post-employment Benefits - Actu
Post-employment Benefits - Actuarial assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment Benefits | ||
Actuarial assumption of retirement age | 65 years | 65 years |
Discount rate (as a percent) | 6.60% | 7.00% |
Salary increase (as a percent) | 5.00% | 5.00% |
Inflation rate (as a percent) | 3.50% | 3.50% |
Post-employment Benefits - Sens
Post-employment Benefits - Sensitivity (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Sensitivity analysis | ||
Discount rate (as a percent) | 6.60% | 7.00% |
Discount rate | ||
Sensitivity analysis | ||
Decrease in actuarial assumption (in basis points) | 0.50% | 0.50% |
Increase in actuarial assumption | $ 3,382,711 | $ 3,037,398 |
Post-employment Benefits - Reco
Post-employment Benefits - Reconciliation (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Post-employment benefit plans | |||
Vested benefit obligations | $ 932,741 | $ 788,714 | |
Unvested benefit obligations | 2,343,659 | 2,058,894 | |
Defined benefit obligation | 3,276,400 | 2,847,608 | |
Fair value of plan assets | 1,195,749 | 1,379,496 | |
Underfunded status of the plan assets | 2,080,651 | 1,468,112 | |
Post-employment benefit liability (asset) | 2,080,651 | 1,468,112 | $ 962,497 |
Pensions | |||
Post-employment benefit plans | |||
Vested benefit obligations | 556,619 | 449,752 | |
Unvested benefit obligations | 2,077,506 | 1,890,108 | |
Defined benefit obligation | 2,634,125 | 2,339,860 | |
Fair value of plan assets | 909,324 | 1,051,076 | |
Underfunded status of the plan assets | 1,724,801 | 1,288,784 | |
Post-employment benefit liability (asset) | 1,724,801 | 1,288,784 | |
Seniority Premiums | |||
Post-employment benefit plans | |||
Vested benefit obligations | 376,122 | 338,962 | |
Unvested benefit obligations | 266,153 | 168,786 | |
Defined benefit obligation | 642,275 | 507,748 | |
Fair value of plan assets | 286,425 | 328,420 | |
Underfunded status of the plan assets | 355,850 | 179,328 | |
Post-employment benefit liability (asset) | $ 355,850 | $ 179,328 |
Post-employment Benefits - Net
Post-employment Benefits - Net periodic (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment Benefits | ||
Service cost | $ 148,987 | $ 131,662 |
Interest cost | 187,470 | 193,344 |
Prior service cost for plan amendments | 40,542 | 46,846 |
Interest on plan assets | (84,973) | (112,788) |
Net periodic cost | $ 292,026 | $ 259,064 |
Post-employment Benefits - Bene
Post-employment Benefits - Benefit obligation (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment pension plans. | ||
Beginning of year | $ 1,468,112 | $ 962,497 |
Service cost | 148,987 | 131,662 |
Interest cost | 187,470 | 193,344 |
Benefits paid | (23,200) | (541) |
Past service cost | 40,542 | 46,846 |
End of year | 2,080,651 | 1,468,112 |
Pensions | ||
Post-employment pension plans. | ||
Beginning of year | 1,288,784 | |
End of year | 1,724,801 | 1,288,784 |
Seniority Premiums | ||
Post-employment pension plans. | ||
Beginning of year | 179,328 | |
Benefits paid | (23,200) | |
End of year | 355,850 | 179,328 |
Defined benefit obligation | ||
Post-employment pension plans. | ||
Beginning of year | 2,847,608 | 2,477,527 |
Service cost | 148,987 | 131,662 |
Interest cost | 187,470 | 193,344 |
Benefits paid | (221,184) | (215,474) |
Remeasurement of post-employment benefit obligations | 272,977 | 213,703 |
Past service cost | 40,542 | 46,846 |
End of year | 3,276,400 | 2,847,608 |
Defined benefit obligation | Pensions | ||
Post-employment pension plans. | ||
Beginning of year | 2,339,860 | |
Service cost | 90,045 | |
Interest cost | 150,253 | |
Benefits paid | (154,542) | |
Remeasurement of post-employment benefit obligations | 198,995 | |
Past service cost | 9,514 | |
End of year | 2,634,125 | 2,339,860 |
Defined benefit obligation | Seniority Premiums | ||
Post-employment pension plans. | ||
Beginning of year | 507,748 | |
Service cost | 58,942 | |
Interest cost | 37,217 | |
Benefits paid | (66,642) | |
Remeasurement of post-employment benefit obligations | 73,982 | |
Past service cost | 31,028 | |
End of year | $ 642,275 | $ 507,748 |
Post-employment Benefits - Fair
Post-employment Benefits - Fair value of plan assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment pension plans. | ||
Beginning of year | $ 1,468,112 | $ 962,497 |
Return on plan assets | 84,973 | 112,788 |
Contributions | 600 | |
Benefits paid | 23,200 | 541 |
End of year | 2,080,651 | 1,468,112 |
Pensions | ||
Post-employment pension plans. | ||
Beginning of year | 1,288,784 | |
Contributions | 600 | |
End of year | 1,724,801 | 1,288,784 |
Seniority Premiums | ||
Post-employment pension plans. | ||
Beginning of year | 179,328 | |
End of year | 355,850 | 179,328 |
Plan assets | ||
Post-employment pension plans. | ||
Beginning of year | (1,379,496) | (1,515,030) |
Return on plan assets | 84,973 | 112,788 |
Contributions | 600 | |
Remeasurement on plan assets | (71,336) | (33,389) |
Benefits paid | (197,984) | (214,933) |
End of year | (1,195,749) | (1,379,496) |
Plan assets | Pensions | ||
Post-employment pension plans. | ||
Beginning of year | (1,051,076) | |
Return on plan assets | 63,478 | |
Contributions | 600 | |
Remeasurement on plan assets | (51,288) | |
Benefits paid | (154,542) | |
End of year | (909,324) | (1,051,076) |
Plan assets | Seniority Premiums | ||
Post-employment pension plans. | ||
Beginning of year | (328,420) | |
Return on plan assets | 21,495 | |
Remeasurement on plan assets | (20,048) | |
Benefits paid | (43,442) | |
End of year | $ (286,425) | $ (328,420) |
Post-employment Benefits - Fund
Post-employment Benefits - Funded status (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Post-employment pension plans. | |||
Unfunded status of the plan assets | $ 2,080,651 | $ 1,468,112 | $ 962,497 |
Pensions | |||
Post-employment pension plans. | |||
Unfunded status of the plan assets | 1,724,801 | 1,288,784 | |
Seniority Premiums | |||
Post-employment pension plans. | |||
Unfunded status of the plan assets | $ 355,850 | $ 179,328 |
Post-employment Benefits - Chan
Post-employment Benefits - Changes in net post-employment (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment pension plans. | ||
Beginning of year | $ 1,468,112 | $ 962,497 |
Net periodic cost | 292,026 | 259,064 |
Contributions | (600) | |
Remeasurement adjustments | 344,313 | 247,092 |
Benefits paid | (23,200) | (541) |
End of year | 2,080,651 | 1,468,112 |
Pensions | ||
Post-employment pension plans. | ||
Beginning of year | 1,288,784 | |
Net periodic cost | 186,334 | |
Contributions | (600) | |
Remeasurement adjustments | 250,283 | 183,002 |
End of year | 1,724,801 | 1,288,784 |
Seniority Premiums | ||
Post-employment pension plans. | ||
Beginning of year | 179,328 | |
Net periodic cost | 105,692 | |
Remeasurement adjustments | 94,030 | 64,090 |
Benefits paid | (23,200) | |
End of year | $ 355,850 | $ 179,328 |
Post-employment Benefits - Post
Post-employment Benefits - Post-employment benefits (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment benefit plans | ||
Defined benefit obligation | $ 3,276,400 | $ 2,847,608 |
Plan assets | 1,195,749 | 1,379,496 |
Unfunded status of plans | 2,080,651 | 1,468,112 |
Remeasurement adjustments | 344,313 | 247,092 |
Pensions | ||
Post-employment benefit plans | ||
Defined benefit obligation | 2,634,125 | 2,339,860 |
Plan assets | 909,324 | 1,051,076 |
Unfunded status of plans | 1,724,801 | 1,288,784 |
Remeasurement adjustments | 250,283 | 183,002 |
Seniority Premiums | ||
Post-employment benefit plans | ||
Defined benefit obligation | 642,275 | 507,748 |
Plan assets | 286,425 | 328,420 |
Unfunded status of plans | 355,850 | 179,328 |
Remeasurement adjustments | $ 94,030 | $ 64,090 |
Post-employment Benefits - Plan
Post-employment Benefits - Plan assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Post-employment benefit plans | ||
Minimum investment required (as a percent) | 30.00% | |
Weighted average asset allocation (as a percent) | 100.00% | 100.00% |
Fair value os plan assets held by the trust | $ 101,690 | $ 136,963 |
Weighted average expected long-term rate of return of plan assets | 6.59% | 7.02% |
Minimum | ||
Post-employment benefit plans | ||
Term for liquidity of mutual funds | 1 day | |
Maximum | ||
Post-employment benefit plans | ||
Term for liquidity of mutual funds | 1 month | |
Equity securities | ||
Post-employment benefit plans | ||
Target allocation (as a percent) | 20.00% | |
Weighted average asset allocation (as a percent) | 28.80% | 28.60% |
Fixed rate instruments | ||
Post-employment benefit plans | ||
Target allocation (as a percent) | 80.00% | |
Weighted average asset allocation (as a percent) | 71.20% | 71.40% |
Post-employment Benefits - Fa_2
Post-employment Benefits - Fair value plan assets (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Plan assets measured at fair value | |||
Post-employment benefit liability (asset) | $ 2,080,651 | $ 1,468,112 | $ 962,497 |
Plan assets | |||
Plan assets measured at fair value | |||
Post-employment benefit liability (asset) | (1,195,749) | (1,379,496) | $ (1,515,030) |
Plan assets | Recurring basis | |||
Plan assets measured at fair value | |||
Mutual funds (fixed rate instruments) | 231,837 | 218,269 | |
Money market securities | 607,658 | 766,181 | |
Post-employment benefit liability (asset) | 1,195,749 | 1,379,496 | |
Plan assets | Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Plan assets measured at fair value | |||
Mutual funds (fixed rate instruments) | 231,837 | 218,269 | |
Money market securities | 607,658 | 766,181 | |
Post-employment benefit liability (asset) | 1,195,749 | 1,379,496 | |
Plan assets | Recurring basis | Trading equity securities - Common stock | |||
Plan assets measured at fair value | |||
Equity instruments | 101,690 | 136,963 | |
Plan assets | Recurring basis | Trading equity securities - Common stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Plan assets measured at fair value | |||
Equity instruments | 101,690 | 136,963 | |
Plan assets | Recurring basis | Other equity securities | |||
Plan assets measured at fair value | |||
Equity instruments | 254,564 | 258,083 | |
Plan assets | Recurring basis | Other equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Plan assets measured at fair value | |||
Equity instruments | $ 254,564 | $ 258,083 |
Post-employment Benefits - Weig
Post-employment Benefits - Weighted average durations (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Seniority Premiums | ||
Post-employment benefit plans | ||
Weighted average duration of defined benefit obligation | 8 years 7 months 6 days | 8 years 2 months 12 days |
Pensions | ||
Post-employment benefit plans | ||
Weighted average duration of defined benefit obligation | 5 years 8 months 12 days | 7 years |
Capital Stock and Long-term R_3
Capital Stock and Long-term Retention Plan - Capital Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020MXN ($)item$ / sharesshares | Dec. 31, 2019MXN ($)shares | Dec. 31, 2018MXN ($)shares | |
Classes of share capital | |||
Number of classes of capital stock | item | 4 | ||
Number of shares in each CPO | 117 | ||
Number of CPOs in each GDS | 5 | ||
Authorized (in shares) | 357,307,300,000 | ||
Total number of shares issued | 357,307,300,000 | ||
Repurchased (in shares) | (5,173,200,000) | ||
Held by trust (in shares) | (26,141,600,000) | ||
Outstanding (in shares) | 325,992,500,000 | 337,244,300,000 | 338,329,100,000 |
Shares in the form of CPOs, Authorized and Issued | 296,023,000,000 | ||
Shares in the form of CPOs, Repurchased | 5,173,200,000 | ||
Shares in the form of CPOs, Held by trust | 20,004,200,000 | ||
Shares in the form of CPOs, Outstanding | 270,845,600,000 | ||
Shares not in the form of CPOs, Authorized and Issued | 61,284,300,000 | ||
Shares not in the form of CPOs, Held by trust | 6,137,400,000 | ||
Shares not in the form of CPOs, Outstanding | 55,146,900,000 | ||
Issued capital | $ | $ 4,907,765 | $ 4,907,765 | |
Authorized capital | $ | 2,459,154 | ||
Shares repurchased | $ | $ 195,597 | $ 1,385,750 | $ 1,541,180 |
Series "A" Shares | |||
Classes of share capital | |||
Par value of shares | $ / shares | $ 0 | ||
Number of shares in each CPO | 25 | ||
Authorized (in shares) | 122,179,400,000 | ||
Total number of shares issued | 122,179,400,000 | ||
Repurchased (in shares) | (1,105,400,000) | ||
Held by trust (in shares) | (8,054,800,000) | ||
Outstanding (in shares) | 113,019,200,000 | 116,223,900,000 | 116,207,200,000 |
Series "B" Shares | |||
Classes of share capital | |||
Par value of shares | $ / shares | $ 0 | ||
Number of shares in each CPO | 22 | ||
Authorized (in shares) | 58,019,700,000 | ||
Total number of shares issued | 58,019,700,000 | ||
Repurchased (in shares) | (972,800,000) | ||
Held by trust (in shares) | (6,118,400,000) | ||
Outstanding (in shares) | 50,928,500,000 | 52,852,800,000 | 53,116,100,000 |
CPOs | |||
Classes of share capital | |||
Authorized (in shares) | 2,530,100,000 | ||
Total number of shares issued | 2,530,100,000 | ||
Repurchased (in shares) | (44,200,000) | ||
Held by trust (in shares) | (171,000,000) | ||
Outstanding (in shares) | 2,314,900,000 | 2,402,400,000 | 2,414,400,000 |
Shares in the form of CPOs, Repurchased | 616,000,000 | (4,557,200,000) | |
Shares repurchased | $ | $ 5,300 | $ 38,900 | |
Series "D" Shares | |||
Classes of share capital | |||
Par value of shares | $ / shares | $ 0 | ||
Number of shares in each CPO | 35 | ||
Authorized (in shares) | 88,554,100,000 | ||
Total number of shares issued | 88,554,100,000 | ||
Repurchased (in shares) | (1,547,500,000) | ||
Held by trust (in shares) | (5,984,200,000) | ||
Outstanding (in shares) | 81,022,400,000 | 84,083,800,000 | 84,502,900,000 |
Series "L" Shares | |||
Classes of share capital | |||
Par value of shares | $ / shares | $ 0 | ||
Number of shares in each CPO | 35 | ||
Authorized (in shares) | 88,554,100,000 | ||
Total number of shares issued | 88,554,100,000 | ||
Repurchased (in shares) | (1,547,500,000) | ||
Held by trust (in shares) | (5,984,200,000) | ||
Outstanding (in shares) | 81,022,400,000 | 84,083,800,000 | 84,502,900,000 |
Capital Stock and Long-term R_4
Capital Stock and Long-term Retention Plan - Reconciliation of shares (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the number of shares outstanding | ||
Outstanding at beginning of period (in shares) | 337,244.3 | 338,329.1 |
Under share repurchase program (in shares) | (616) | (4,557.2) |
Cancelled and forfeited | (10,750) | |
Acquired by trust under LTRP (in shares) | (402.2) | (307.1) |
Released (in shares) | 516.4 | 3,779.5 |
Outstanding at end of period (in shares) | 325,992.5 | 337,244.3 |
Series "D" Shares | ||
Reconciliation of the number of shares outstanding | ||
Outstanding at beginning of period (in shares) | 84,083.8 | 84,502.9 |
Under share repurchase program (in shares) | (184.3) | (1,363.3) |
Cancelled and forfeited | (2,911.3) | |
Acquired by trust under LTRP (in shares) | (120.3) | (91.9) |
Released (in shares) | 154.5 | 1,036.1 |
Outstanding at end of period (in shares) | 81,022.4 | 84,083.8 |
Series "L" Shares | ||
Reconciliation of the number of shares outstanding | ||
Outstanding at beginning of period (in shares) | 84,083.8 | 84,502.9 |
Under share repurchase program (in shares) | (184.3) | (1,363.3) |
Cancelled and forfeited | (2,911.3) | |
Acquired by trust under LTRP (in shares) | (120.3) | (91.9) |
Released (in shares) | 154.5 | 1,036.1 |
Outstanding at end of period (in shares) | 81,022.4 | 84,083.8 |
Series "A" Shares | ||
Reconciliation of the number of shares outstanding | ||
Outstanding at beginning of period (in shares) | 116,223.9 | 116,207.2 |
Under share repurchase program (in shares) | (131.6) | (973.7) |
Cancelled and forfeited | (3,097.4) | |
Acquired by trust under LTRP (in shares) | (86) | (65.6) |
Released (in shares) | 110.3 | 1,056 |
Outstanding at end of period (in shares) | 113,019.2 | 116,223.9 |
Series "B" Shares | ||
Reconciliation of the number of shares outstanding | ||
Outstanding at beginning of period (in shares) | 52,852.8 | 53,116.1 |
Under share repurchase program (in shares) | (115.8) | (856.9) |
Cancelled and forfeited | (1,830) | |
Acquired by trust under LTRP (in shares) | (75.6) | (57.7) |
Released (in shares) | 97.1 | 651.3 |
Outstanding at end of period (in shares) | 50,928.5 | 52,852.8 |
CPOs | ||
Reconciliation of the number of shares outstanding | ||
Outstanding at beginning of period (in shares) | 2,402.4 | 2,414.4 |
Under share repurchase program (in shares) | (5.3) | (38.9) |
Cancelled and forfeited | (83.2) | |
Acquired by trust under LTRP (in shares) | (3.4) | (2.7) |
Released (in shares) | 4.4 | 29.6 |
Outstanding at end of period (in shares) | 2,314.9 | 2,402.4 |
Capital Stock and Long-term R_5
Capital Stock and Long-term Retention Plan - Other (Details) | 12 Months Ended |
Dec. 31, 2020MXN ($)director$ / shares | |
Classes of share capital | |
Number of board of directors | 20 |
Restated for inflation tax value of common stock | $ | $ 52,488,665 |
Series "D" Shares | |
Classes of share capital | |
Number of directors can be elected by class of shareholders | 2 |
Preferred stock dividend percentage | 5.00% |
Preferred stock dividend proposed (in Ps. per share) | $ / shares | $ 0.00034412306528 |
Preferred stock liquidation preference (in Ps. per share) | $ / shares | $ 0.00688246130560 |
Series "L" Shares | |
Classes of share capital | |
Number of directors can be elected by class of shareholders | 2 |
Series "A" Shares | |
Classes of share capital | |
Number of directors can be elected by class of shareholders | 11 |
Series "B" Shares | |
Classes of share capital | |
Number of directors can be elected by class of shareholders | 5 |
Capital Stock and Long-term R_6
Capital Stock and Long-term Retention Plan - Long-Term Retention Plan (Details) EquityInstruments in Thousands, $ in Thousands, shares in Millions | Apr. 02, 2013 | Dec. 31, 2020MXN ($)EquityInstruments | Sep. 30, 2020MXN ($) | Dec. 31, 2019EquityInstrumentsMXN ($) | Dec. 31, 2020EquityInstruments$ / shares | Dec. 31, 2019EquityInstruments | Dec. 31, 2018EquityInstruments | Dec. 31, 2020MXN ($) | Dec. 31, 2020shares | Jun. 30, 2020shares |
Long-Term Retention Plan | ||||||||||
Share based payment arrangements | ||||||||||
Maximum percentage of capital granted annually in CPOs | 1.50% | |||||||||
Shares sold in open market | 10 | |||||||||
Shares vested | $ | 4,745,300 | |||||||||
Cash contributions to the trust held for Long-Term Retention Plan | $ | $ 197,000 | |||||||||
Number of other equity instruments forfeited in share-based payment arrangement | $ | 9,490,500 | |||||||||
Number of shares held in connection of with cancellation of shares | 5,526.3 | |||||||||
Number of shares held in connection of with forfeited rights | 3,196.1 | 1,009.7 | ||||||||
Refund for decrease to the balance of shares repurchased | $ | $ 100,000 | |||||||||
Funding made for acquisition of shares | $ | $ 197,000 | |||||||||
Retention Plan Trust | ||||||||||
Share based payment arrangements | ||||||||||
Percentage of CPOs or its equivalents held in the form of CPO by trust | 76.50% | |||||||||
Percentage of CPOs or its equivalents held in the form other than CPO by trust | 23.50% | |||||||||
Number reserved for future vesting | 137 | |||||||||
Vesting price (in pesos per CPO) | $ / shares | $ 36.52 | |||||||||
Number of CPOs owned by trust for employees | 0.8 | |||||||||
Series "A" Shares | Long-Term Retention Plan | ||||||||||
Share based payment arrangements | ||||||||||
Number of shares held in connection of with cancellation of shares | 666.9 | |||||||||
Number of shares held in connection of with forfeited rights | 351 | |||||||||
CPOs | Long-Term Retention Plan | ||||||||||
Share based payment arrangements | ||||||||||
Shares outstanding | EquityInstruments | 160,365 | 243,472 | 160,365 | 243,472 | 179,051 | |||||
Shares vested | EquityInstruments | 3,107 | |||||||||
Number of other equity instruments forfeited in share-based payment arrangement | EquityInstruments | 122,307 | 5,030 | ||||||||
Number of other equity instruments held in connection of with cancellation of shares | 47.2 | |||||||||
Number of other equity instruments held in connection of with forfeited rights | 27.4 | 8.6 | ||||||||
CPOs | Retention Plan Trust | ||||||||||
Share based payment arrangements | ||||||||||
Shares outstanding | 223,400 | 223,400 | 223,400 | |||||||
Shares vested | EquityInstruments | 4,400 | 32,300 | 34,300 | |||||||
Minimum | Long-Term Retention Plan | ||||||||||
Share based payment arrangements | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years | |||||||||
Minimum | Retention Plan Trust | ||||||||||
Share based payment arrangements | ||||||||||
Vesting price (in pesos per CPO) | $ / shares | $ 52.05 | |||||||||
Maximum | Long-Term Retention Plan | ||||||||||
Share based payment arrangements | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | |||||||||
Maximum | Retention Plan Trust | ||||||||||
Share based payment arrangements | ||||||||||
Vesting price (in pesos per CPO) | $ / shares | $ 1.60 |
Capital Stock and Long-term R_7
Capital Stock and Long-term Retention Plan - Weighted-average assumptions (Details) - Long-Term Retention Plan - EquityInstruments EquityInstruments in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions: | |||||
Dividend yield | 1.38% | 0.82% | 0.55% | 0.38% | 0.38% |
Expected volatility | 35.13% | 30.47% | 25.38% | 24.58% | 27.60% |
Risk-free interest rate | 5.74% | 6.88% | 7.17% | 7.04% | 4.83% |
Expected average life of awards | 3 years | 2 years 8 months 1 day | 3 years | 2 years 11 months 16 days | 3 years |
CPOs | |||||
Arrangements: | |||||
Number of CPOs or CPOs equivalent granted (in units) | 39,200 | 72,558 | 32,500 | 37,000 | 39,000 |
Contractual life | 3 years | 2 years 8 months 1 day | 3 years | 3 years | 3 years |
Capital Stock and Long-term R_8
Capital Stock and Long-term Retention Plan - Stock awards (Details) - Long-Term Retention Plan EquityInstruments in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019EquityInstrumentsMXN ($)$ / shares | Dec. 31, 2020EquityInstruments$ / shares | Dec. 31, 2019EquityInstruments$ / shares | Dec. 31, 2018EquityInstruments$ / shares | Dec. 31, 2017EquityInstruments | Dec. 31, 2016EquityInstruments | |
CPOs or CPOs Equivalent | ||||||
Paid by employees (in CPOs) | $ | (4,745.3) | |||||
Forfeited (in CPOs) | $ | (9,490.5) | |||||
Weighted-Average Exercise Price | ||||||
Weighted-average remaining contractual life of the awards | 1 year 4 months 17 days | 1 year 8 months 12 days | ||||
CPOs | ||||||
CPOs or CPOs Equivalent | ||||||
Outstanding at beginning of year (in CPOs) | EquityInstruments | 243,472 | 179,051 | ||||
Conditionally sold (in CPOs) | EquityInstruments | 39,200 | 72,558 | 32,500 | 37,000 | 39,000 | |
Paid by employees (in CPOs) | EquityInstruments | (3,107) | |||||
Forfeited (in CPOs) | EquityInstruments | (122,307) | (5,030) | ||||
Outstanding at end of year (in CPOs) | EquityInstruments | 243,472 | 160,365 | 243,472 | 179,051 | ||
To be paid by employees at end of year (in CPOs) | EquityInstruments | 110,828 | 23,361 | 110,828 | |||
Weighted-Average Exercise Price | ||||||
Outstanding at beginning of year (in pesos per CPO) | $ / shares | $ 65.19 | $ 75.77 | ||||
Conditionally sold | $ / shares | 6.84 | 38.50 | ||||
Paid by employees (in pesos per CPO) | $ / shares | 33.75 | |||||
Forfeited (in pesos per CPO) | $ / shares | 81.36 | 73.20 | ||||
Outstanding at end of year (in pesos per CPO) | $ / shares | $ 65.19 | 39.36 | 65.19 | $ 75.77 | ||
To be paid by employees at end of year (in pesos per CPO) | $ / shares | $ 81.26 | $ 80.72 | $ 81.26 |
Retained Earnings and Accumul_3
Retained Earnings and Accumulated Other Comprehensive Income - Retained Earnings (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at beginning | $ 82,652,278 | ||
Recognized share of income in OCEN (see Note 10) | 147,975 | ||
Acquisition of non-controlling interests | $ (222,190) | ||
Dividends paid | $ (2,664,340) | (2,345,430) | |
Sale of repurchased shares | 111,979 | 100,246 | 1,954,312 |
Share-based compensation | 962,806 | 1,108,094 | 1,305,999 |
Net income for the year | 302,824 | 6,106,813 | 7,615,270 |
Balance at ending | 84,280,397 | 82,652,278 | |
Adoption of IFRS 9 - Expected credit losses | |||
Cumulative adjustment for IFRS | (202,464) | ||
Adoption of IFRS 15 | |||
Cumulative adjustment for IFRS | 2,384,655 | ||
Retained Earnings | |||
Balance at beginning | 82,652,278 | 78,731,909 | |
Recognized share of income in OCEN (see Note 10) | 147,975 | ||
Acquisition of non-controlling interests | 766 | (183,041) | |
Dividends paid | (1,066,187) | (1,068,868) | |
Net gain on partial disposition of Open Ended Fund | 837,520 | ||
Sale of repurchased shares | (997,174) | (1,585,963) | (446,542) |
Cancellation of sale of shares | 2,764,854 | ||
Share-based compensation | 962,806 | 1,108,094 | 1,305,999 |
Net income for the year | (1,250,342) | 4,626,139 | |
Balance at ending | 84,280,397 | 82,652,278 | 78,731,909 |
Retained Earnings | Adoption of IFRS 9 - Expected credit losses | |||
Cumulative adjustment for IFRS | (167,028) | ||
Retained Earnings | Adoption of IFRS 9 - New classification of Financial Instruments | |||
Cumulative adjustment for IFRS | (827,932) | ||
Retained Earnings | Adoption of IFRS 15 | |||
Cumulative adjustment for IFRS | 1,599,452 | ||
Legal Reserve | |||
Balance at beginning | 2,139,007 | 2,139,007 | |
Balance at ending | 2,139,007 | 2,139,007 | 2,139,007 |
Unappropriated Earnings | |||
Balance at beginning | 75,887,132 | 70,583,488 | |
Appropriation of net income | 4,626,139 | 6,009,414 | |
Recognized share of income in OCEN (see Note 10) | 147,975 | ||
Acquisition of non-controlling interests | 766 | ||
Dividends paid | (1,066,187) | ||
Net gain on partial disposition of Open Ended Fund | 837,520 | ||
Sale of repurchased shares | (997,174) | (1,585,963) | |
Cancellation of sale of shares | 2,764,854 | ||
Share-based compensation | 962,806 | 1,108,094 | |
Balance at ending | 83,391,732 | 75,887,132 | 70,583,488 |
Net Income for the Year | |||
Balance at beginning | 4,626,139 | 6,009,414 | |
Appropriation of net income | (4,626,139) | (6,009,414) | |
Net income for the year | (1,250,342) | 4,626,139 | |
Balance at ending | $ (1,250,342) | $ 4,626,139 | $ 6,009,414 |
Retained Earnings and Accumul_4
Retained Earnings and Accumulated Other Comprehensive Income - Legal Reserve (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retained Earnings and Accumulated Other Comprehensive Income | |||
Increase in legal reserve as a percentage of annual net profits | 5.00% | ||
Threshold increase in legal reserve as a percentage of capital stock | 20.00% | ||
Statutory reserve | $ 2,139,007 | $ 2,139,007 | |
Increase in legal reserve as percentage of capital stock | 20.00% | ||
Additional increase in legal reserve as a percentage | 0.00% | 0.00% | 0.00% |
Retained Earnings and Accumul_5
Retained Earnings and Accumulated Other Comprehensive Income - Dividends (Details) - MXN ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2021 | May 31, 2019 | Apr. 30, 2019 | May 31, 2018 | Apr. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends recognised as distributions to owners | $ 2,664,340 | $ 2,345,430 | ||||||
Contingent payout obligation overstatement | $ 221,000 | |||||||
Multiplying factor | 1.4286 | |||||||
Applicable tax rate | 30.00% | 30.00% | 30.00% | |||||
Withholding tax rate | 10.00% | |||||||
Cumulative earnings | $ 73,188,085 | |||||||
Series A, B, D and L Shares | ||||||||
Dividends recognised as distributions to owners | $ 1,066,187 | $ 1,068,868 | ||||||
Series "D" Shares | ||||||||
Dividend per share | $ 0.002991452991 | $ 0.002991452991 | ||||||
Series "L" Shares | ||||||||
Dividend per share | 0.002991452991 | 0.002991452991 | ||||||
Series "A" Shares | ||||||||
Dividend per share | 0.002991452991 | 0.002991452991 | ||||||
Series "B" Shares | ||||||||
Dividend per share | 0.002991452991 | 0.002991452991 | ||||||
CPOs | ||||||||
Dividend per share | $ 0.35 | $ 0.35 | $ 0.35 |
Retained Earnings and Accumul_6
Retained Earnings and Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated at beginning | $ 1,320,451 | ||
Accumulated at ending | (15,556,848) | $ 1,320,451 | |
Accumulated Other Comprehensive Income (loss) | |||
Accumulated at beginning | 1,320,451 | 4,427,487 | |
Partial disposition of Open Ended Fund | (837,520) | ||
Remeasurement of post-employment benefit obligations of assets held for sale | 1,205 | ||
Changes in other comprehensive income | (16,877,299) | (2,268,311) | |
Accumulated at ending | (15,556,848) | 1,320,451 | $ 4,427,487 |
Open Ended Fund | |||
Accumulated at beginning | 2,429,283 | 3,966,615 | |
Partial disposition of Open Ended Fund | (1,186,130) | ||
Changes in other comprehensive income | (904,423) | (351,202) | |
Accumulated at ending | 1,524,860 | 2,429,283 | 3,966,615 |
Other Financial Assets | |||
Accumulated at beginning | (111) | ||
Changes in other comprehensive income | 111 | ||
Accumulated at ending | (111) | ||
Other Equity Instruments | |||
Accumulated at beginning | 991,902 | 1,786,526 | |
Changes in other comprehensive income | (353,496) | (794,624) | |
Accumulated at ending | 638,406 | 991,902 | 1,786,526 |
Warrants Exercisable for Common Stock of UHI | |||
Accumulated at beginning | (1,703,056) | (1,960,362) | |
Changes in other comprehensive income | (21,899,164) | 257,306 | |
Accumulated at ending | (23,602,220) | (1,703,056) | (1,960,362) |
Exchange Differences on Translating Foreign Operations | |||
Accumulated at beginning | 734,676 | 814,307 | |
Changes in other comprehensive income | 115,565 | (79,631) | |
Accumulated at ending | 850,241 | 734,676 | 814,307 |
Remeasurement of Post-Employment Benefit Obligations | |||
Accumulated at beginning | (1,010,132) | (763,835) | |
Remeasurement of post-employment benefit obligations of assets held for sale | 1,721 | ||
Changes in other comprehensive income | (340,319) | (244,576) | |
Accumulated at ending | (1,350,451) | (1,010,132) | (763,835) |
Derivative Financial Instruments Cash Flow Hedges | |||
Accumulated at beginning | (545,363) | 976,549 | |
Changes in other comprehensive income | (1,370,145) | (1,521,912) | |
Accumulated at ending | (1,915,508) | (545,363) | 976,549 |
Share of Income (Loss) of Associates and Joint Ventures | |||
Accumulated at beginning | (75,415) | 160,744 | |
Changes in other comprehensive income | (61,033) | (236,159) | |
Accumulated at ending | (136,448) | (75,415) | 160,744 |
Income Tax | |||
Accumulated at beginning | 498,556 | (552,946) | |
Partial disposition of Open Ended Fund | 348,610 | ||
Remeasurement of post-employment benefit obligations of assets held for sale | (516) | ||
Changes in other comprehensive income | 7,935,716 | 702,376 | |
Accumulated at ending | $ 8,434,272 | $ 498,556 | (552,946) |
Adoption of IFRS 9 - New classification of Financial Instruments | Accumulated Other Comprehensive Income (loss) | |||
Cumulative adjustment for IFRS | $ 827,932 |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EQUITY | |||
Capital stock | $ 4,907,765 | $ 4,907,765 | |
Additional paid-in-capital | 15,889,819 | 15,889,819 | |
Legal reserve | 2,139,007 | 2,139,007 | |
Retained earnings from prior years | 84,280,397 | 82,652,278 | |
Accumulated other comprehensive income (loss): | |||
Carrying value of the non-controlling interest | 14,497,024 | 14,873,767 | |
Aggregate amount of dividends paid | 2,664,340 | $ 2,345,430 | |
Non-controlling Interests | |||
EQUITY | |||
Capital stock | 1,102,334 | 1,155,998 | |
Additional paid-in-capital | 2,986,360 | 3,001,681 | |
Legal reserve | 216,071 | 164,832 | |
Retained earnings from prior years | 8,483,413 | 8,930,063 | |
Net income for the year | 1,553,166 | 1,480,674 | |
Accumulated other comprehensive income (loss): | |||
Cumulative result from foreign currency translation | 166,275 | 148,318 | |
Remeasurement of post-employment benefit obligations on defined benefit plans | (10,595) | (7,799) | |
Carrying value of the non-controlling interest | 14,497,024 | 14,873,767 | |
Aggregate amount of dividends paid | 1,598,153 | 1,276,562 | |
Non-controlling Interests | Sky | |||
Accumulated other comprehensive income (loss): | |||
Aggregate amount of dividends paid | 2,750,000 | 3,800,000 | 3,000,000 |
Dividends paid to non controlling interest | 1,134,808 | $ 1,570,659 | $ 1,240,002 |
Non-controlling Interests | Radiopolis | |||
Accumulated other comprehensive income (loss): | |||
Aggregate amount of dividends paid | 656,346 | ||
Dividends paid to non controlling interest | 325,173 | ||
Dividends received | 285,669 | ||
Non-controlling Interests | Pantelion | |||
Accumulated other comprehensive income (loss): | |||
Aggregate amount of dividends paid | 394,269 | ||
Dividends paid to non controlling interest | $ 193,192 |
Non-controlling Interests - Bal
Non-controlling Interests - Balance Sheets (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Current assets | $ 69,061,075 | $ 67,431,024 |
Non-current assets | 202,185,257 | 222,912,868 |
Total assets | 271,246,332 | 290,343,892 |
Liabilities: | ||
Current liabilities | 43,709,666 | 42,164,942 |
Non-current liabilities | 139,597,633 | 142,553,717 |
Total liabilities | 183,307,299 | 184,718,659 |
Empresas Cablevision | ||
Assets: | ||
Current assets | 6,046,592 | 5,035,670 |
Non-current assets | 22,499,913 | 19,371,687 |
Total assets | 28,546,505 | 24,407,357 |
Liabilities: | ||
Current liabilities | 5,267,184 | 5,565,268 |
Non-current liabilities | 3,943,909 | 1,326,812 |
Total liabilities | 9,211,093 | 6,892,080 |
Net assets | 19,335,412 | 17,515,277 |
Sky | ||
Assets: | ||
Current assets | 6,632,763 | 9,891,514 |
Non-current assets | 18,515,500 | 17,930,006 |
Total assets | 25,148,263 | 27,821,520 |
Liabilities: | ||
Current liabilities | 5,182,302 | 3,586,272 |
Non-current liabilities | 5,967,680 | 9,319,812 |
Total liabilities | 11,149,982 | 12,906,084 |
Net assets | $ 13,998,281 | $ 14,915,436 |
Non-controlling Interests - Inc
Non-controlling Interests - Income Statement (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated subsidiaries information | |||
Net sales | $ 97,361,634 | $ 101,757,181 | $ 101,282,333 |
Non-income | 302,824 | 6,106,813 | 7,615,270 |
Total comprehensive income | (16,559,314) | 3,815,538 | $ 6,594,387 |
Empresas Cablevision | |||
Consolidated subsidiaries information | |||
Net sales | 15,906,914 | 14,465,512 | |
Non-income | 1,828,000 | 1,085,880 | |
Total comprehensive income | 1,820,135 | 1,084,162 | |
Sky | |||
Consolidated subsidiaries information | |||
Net sales | 22,134,943 | 21,347,241 | |
Non-income | 1,848,374 | 1,880,607 | |
Total comprehensive income | $ 1,864,408 | $ 1,850,735 |
Non-controlling Interests - Cas
Non-controlling Interests - Cash Flows (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated subsidiaries information | |||
Cash flows from operating activities | $ 33,160,919 | $ 27,269,083 | $ 33,714,496 |
Cash flows from investing activities | (15,919,697) | (17,004,808) | (23,898,235) |
Cash flows from financing activities | (16,195,216) | (14,301,896) | (16,504,914) |
Net increase (decrease) in cash and cash equivalents | 1,034,490 | (4,098,070) | $ (6,666,658) |
Empresas Cablevision | |||
Consolidated subsidiaries information | |||
Cash flows from operating activities | 3,959,679 | 3,756,935 | |
Cash flows from investing activities | (5,824,827) | (3,301,043) | |
Cash flows from financing activities | 2,104,416 | (1,855,636) | |
Net increase (decrease) in cash and cash equivalents | 239,268 | (1,399,744) | |
Sky | |||
Consolidated subsidiaries information | |||
Cash flows from operating activities | 8,645,025 | 8,118,541 | |
Cash flows from investing activities | (5,547,152) | (4,006,732) | |
Cash flows from financing activities | (6,392,614) | (5,172,976) | |
Net increase (decrease) in cash and cash equivalents | $ (3,294,741) | $ (1,061,167) |
Transactions with Related Par_3
Transactions with Related Parties - Principal transactions (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | |
Revenues, other income and interest income: | ||||||
Royalties (Univision) | $ 8,155,338 | $ 7,527,364 | $ 7,383,540 | |||
Programming production and transmission rights | 707,247 | 485,157 | 960,052 | |||
Telecom services | 97,754 | 71,979 | 17,951 | |||
Administrative services | 13,561 | 20,598 | 34,653 | |||
Advertising | 36,385 | 151,296 | 44,625 | |||
Interest income | 64,809 | 83,625 | 84,987 | |||
Total revenues, other income and interest income | 9,075,094 | 8,340,019 | 8,525,808 | |||
Costs and expenses: | ||||||
Donations | 26,729 | 26,285 | 32,111 | |||
Administrative services | 1,529 | 24,899 | 20,403 | |||
Technical services | 459,960 | 465,250 | 138,262 | |||
Programming production, transmission rights and telecom | 674,270 | 666,312 | 1,298,197 | |||
Total | $ 1,162,488 | 1,182,746 | 1,488,973 | |||
UHI | ||||||
Related party transactions | ||||||
Broadcasting term in United States | 7 years 6 months | 7 years 6 months | ||||
Percentage sold of initial investment in UHI | 0.67% | 0.67% | ||||
Univision | ||||||
Related party transactions | ||||||
Provision for certain yearly minimum guaranteed advertising | $ 42.6 | $ 909,159 | $ 32.3 | $ 625,410 | $ 46.6 | $ 891,990 |
Transactions with Related Par_4
Transactions with Related Parties - Other transactions (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020MXN ($)itemdirector | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Transactions with related parties | |||
Number of Mexican banks that have made loans to Group | item | 2 | ||
Aggregate annual amount of contracts leasing office space | $ 32,784 | $ 29,613 | $ 28,155 |
Consulting firm | |||
Transactions with related parties | |||
Fees for services received | 19,433 | 19,758 | 15,414 |
Professional services firm secretary of Company's Board | |||
Transactions with related parties | |||
Fees for services received | 52,848 | 34,603 | 26,547 |
Professional services firm, two directors | |||
Transactions with related parties | |||
Fees for services received | $ 121,789 | $ 20,554 | $ 19,431 |
Number of directors that maintain an interest in a professional services firm | director | 2 |
Transactions with Related Par_5
Transactions with Related Parties - Compensation (Details) - MXN ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Transactions with related parties | |||||
Defined benefit obligation | $ 3,276,400 | $ 2,847,608 | |||
Service cost | 148,987 | 131,662 | |||
Contributions to plan, net defined benefit liability (asset) | 600 | ||||
Directors, alternate directors and officers | |||||
Transactions with related parties | |||||
Key management compensation | 936,794 | 869,556 | $ 568,347 | ||
Defined benefit obligation | 196,584 | 170,856 | 148,651 | ||
Cumulative contributions made by the Group to the pension and seniority premium plans on behalf of these directors and officers | 71,744 | 82,768 | 90,901 | ||
Directors, alternate directors and officers | Cable | |||||
Transactions with related parties | |||||
Deferred compensation paid | $ 1,106,525 | 1,208 | 199,726 | ||
Officers | Cable | |||||
Transactions with related parties | |||||
Defined benefit obligation | 1,486,708 | 1,258,013 | |||
Deferred compensation plan term | 5 years | ||||
Service cost | 225,804 | 199,195 | 251,787 | ||
Contributions to plan, net defined benefit liability (asset) | 435,500 | $ 700,000 | $ 350,000 | ||
Deferred compensation paid | $ 470,000 |
Transactions with Related Par_6
Transactions with Related Parties - Receivables and payables (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | |
Transactions with related parties | |||
Current receivables | $ 786,952 | $ 814,427 | |
Current payables | $ 83,007 | $ 644,251 | |
Average interest rates bearing from account balances | 6.90% | 9.60% | |
UHI, including Univision | |||
Transactions with related parties | |||
Current receivables | $ 692,282 | $ 748,844 | |
Current payables | 594,254 | ||
Provision recognized | 691,221 | ||
Receivables from related parties | 692,282 | 748,844 | |
OCEN | |||
Transactions with related parties | |||
Current receivables | 34,137 | 3,968 | |
Editorial Clio | |||
Transactions with related parties | |||
Current receivables | 2,308 | 2,933 | |
Other | |||
Transactions with related parties | |||
Current receivables | 58,225 | 58,682 | |
Current payables | 50,697 | 24,550 | |
AT&T | |||
Transactions with related parties | |||
Current payables | 32,310 | 25,447 | |
Affiliates and other related parties | |||
Transactions with related parties | |||
Deposits and advances from affiliates and other related parties | $ 119,736 | $ 144,672 | |
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") | Subsidiaries | |||
Transactions with related parties | |||
Annual payment in lease agreement | $ 41,400 | ||
Basis points | 1.22% | ||
Annual interest rate | 6.00% |
Cost of Sales, Selling Expens_3
Cost of Sales, Selling Expenses and Administrative Expenses (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of Sales, Selling Expenses and Administrative Expenses | |||
Cost of sales | $ 16,775,214 | $ 16,035,227 | $ 14,147,169 |
Selling expenses | 1,473,940 | 1,695,616 | 1,694,966 |
Administrative expenses | 3,392,496 | 3,809,379 | 4,436,746 |
Total depreciation, amortization and other amortization | 21,641,650 | 21,540,222 | 20,278,881 |
Expenses relating to variable lease payment not included in the measurement of the lease liability | 103,340 | ||
Expenses relating to short-term leases and leases of low-value assets | 234,673 | ||
Total | 338,013 | ||
Employee benefits | |||
Short-term employee benefits | 17,921,266 | 16,821,651 | 16,000,255 |
Other short-term employee benefits | 1,396,804 | 1,210,671 | 949,294 |
Share-based compensation | 984,356 | 1,129,644 | 1,327,549 |
Post-employment benefits | 292,026 | 259,064 | 171,156 |
Employee benefits | $ 20,594,452 | $ 19,421,030 | $ 18,448,254 |
Other Income or Expense, Net (D
Other Income or Expense, Net (Details) - MXN ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income or Expense, Net | ||||
Net gain on disposition of Radipolis | $ 932,449 | |||
Net gain on disposition of investments | $ 627 | $ 3,553,463 | ||
Donations | (62,155) | (27,786) | (56,019) | |
Legal, financial, and accounting advisory and professional services | (534,448) | (353,937) | (212,527) | |
Gain (loss) on disposition of property and equipment | 57,949 | (158,658) | (268,532) | |
Impairment adjustments | (40,803) | (67,574) | (135,750) | |
Deferred compensation | (225,804) | (199,195) | (251,787) | |
Dismissal severance expense | $ (150,000) | (273,281) | (533,233) | (530,560) |
Income for cash reimbursement received from Imagina | 167,619 | |||
Interest income for recovered Asset Tax from prior years | 139,995 | |||
Other, net | 212,102 | (116,826) | (387,733) | |
Total other income (expense) | $ 233,628 | $ (1,316,587) | 1,562,284 | |
Televisa CJ Grand, S.A. de C.V. ("Televisa CJ Grand") | ||||
Other Income or Expense, Net | ||||
Net gain on disposition of investments | $ 85,000 | |||
Ownership interest disposed (in percent) | 50.00% | |||
Imagina | ||||
Other Income or Expense, Net | ||||
Net gain on disposition of investments | $ 3,513,829 | |||
Sky | ||||
Other Income or Expense, Net | ||||
Other taxes paid by Sky in Central America | (148,271) | |||
Cable | ||||
Other Income or Expense, Net | ||||
Loss on disposition of property and equipment | $ 249,688 |
Finance Expense, Net (Details)
Finance Expense, Net (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020MXN ($)$ / $ | Dec. 31, 2019MXN ($)$ / $ | Dec. 31, 2018MXN ($)$ / $ | |
Finance Expense, Net | |||
Interest expense | $ (10,482,168) | $ (10,402,021) | $ (9,707,324) |
Other finance expense, net | (873,177) | (859,642) | |
Finance expense | (10,482,168) | (11,275,198) | (10,566,966) |
Interest income | 1,132,935 | 1,529,112 | 1,567,100 |
Foreign exchange gain, net | 3,004,934 | 935,291 | 220,149 |
Other finance income, net | 89,323 | ||
Finance income | 4,227,192 | 2,464,403 | 1,787,249 |
Finance expense, net | (6,254,976) | (8,810,795) | $ (8,779,717) |
Additional lease liabilities | $ 426,672 | $ 426,541 | |
Foreign exchange rate | $ / $ | 19.9493 | 18.8838 | 19.6730 |
Income Taxes (Details)
Income Taxes (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | ||||
Income taxes, current | $ 6,802,510 | $ 5,267,157 | $ 6,448,961 | |
Income taxes, deferred | (1,574,610) | (2,598,712) | (2,058,457) | |
Income tax provision | $ 5,227,900 | $ 2,668,445 | $ 4,390,504 | |
Current income tax of Mexican companies to the total current income taxes (as a percent) | 93.00% | 95.00% | 91.00% | |
Corporate income tax rate (as a percent) | 30.00% | 30.00% | 30.00% | |
Minimum | ||||
Income Taxes | ||||
Annual withholding tax rate | 0.97% | |||
Maximum | ||||
Income Taxes | ||||
Annual withholding tax rate | 1.45% | |||
Changes in tax rates or tax laws enacted or announced | ||||
Income Taxes | ||||
Corporate income tax rate (as a percent) | 30.00% |
Income Taxes - 2014 Tax Reform
Income Taxes - 2014 Tax Reform (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Less: Current portion | $ 2,013,648 | $ 2,470,249 | |
Non-current portion | 767,115 | 1,759,719 | |
2014 Tax Reform | |||
Income Taxes | |||
Aggregate additional income tax liability for the elimination of the tax consolidation regime | $ 6,813,595 | ||
Benefit from tax loss carryforwards of Mexican companies in the Group | $ 7,936,044 | ||
Tax losses of subsidiaries, net | 1,759,301 | 3,230,248 | |
Less: Current portion | 992,186 | 1,470,529 | |
Non-current portion | $ 767,115 | $ 1,759,719 |
Income Taxes - Maturities of in
Income Taxes - Maturities of income tax payable (Details) - 2014 Tax Reform $ in Thousands | Dec. 31, 2020MXN ($) |
Income Taxes | |
Income tax payable | $ 1,759,301 |
2021 | |
Income Taxes | |
Income tax payable | 992,186 |
2022 | |
Income Taxes | |
Income tax payable | 643,171 |
2023 | |
Income Taxes | |
Income tax payable | $ 123,944 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Principal differences between income taxes computed at the statutory rate and the Group's provision for income taxes (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | |||
Statutory income tax rate | 30.00% | 30.00% | 30.00% |
Differences between accounting and tax bases, includes tax inflation gain that is not recognized for accounting purposes | 25.00% | 5.00% | 5.00% |
Asset tax | (2.00%) | ||
Tax loss carryforwards | 7.00% | (13.00%) | (4.00%) |
2014 Tax Reform | 1.00% | 2.00% | |
Foreign operations | (2.00%) | 8.00% | 3.00% |
Disposition of investment | 3.00% | 2.00% | |
Disposition of Radipolis | 3.00% | ||
Share of income in associates and joint ventures, net | 2.00% | (2.00%) | (1.00%) |
Impairment loss in investment in shares of UHI | 30.00% | ||
Effective income tax rate | 95.00% | 30.00% | 37.00% |
Income Taxes - Expiration of ta
Income Taxes - Expiration of tax loss carryforwards (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | $ 21,936,225 | ||
Benefit from tax loss carryforwards derived from the disposal in 2014 of its investment in GSF | 4,668,717 | $ 4,526,042 | |
Tax loss carryforwards derived from disposal of GSF for which deferred taxes were recognized | 15,562,391 | ||
2021 | |||
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | 157,193 | ||
2022 | |||
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | 396,066 | ||
2023 | |||
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | 117,080 | ||
2024 | |||
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | 230,772 | ||
2025 | |||
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | 8,706,619 | ||
Thereafter | |||
Income Taxes | |||
Tax loss carryforwards for which deferred taxes were recognized | 12,328,495 | ||
Expires between 2021 and 2028 | |||
Income Taxes | |||
Unused tax loss carryforwards for which no deferred taxes were recognized | 3,644,289 | ||
Expires between 2021 and 2037 | |||
Income Taxes | |||
Tax loss carryforwards of subsidiaries in South America, the United States, and Europe | 3,034,191 | ||
Certain Mexican subsidiaries | |||
Income Taxes | |||
Utilized tax loss carryforwards | 6,160,740 | $ 6,457,550 | $ 14,072,331 |
Benefit from tax loss carryforwards derived from the disposal in 2014 of its investment in GSF | $ 15,562,391 |
Income Taxes - Temporary differ
Income Taxes - Temporary differences and tax loss carryforwards to arrive deferred income taxes (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | |||
Deferred income tax assets, net | $ 26,213,382 | $ 17,132,915 | $ 13,791,257 |
Accrued liabilities | |||
Income Taxes | |||
Deferred tax assets | 6,219,312 | 4,352,021 | |
Deferred income tax assets, net | 6,219,312 | 4,352,021 | 3,619,288 |
Loss allowance | |||
Income Taxes | |||
Deferred tax assets | 1,235,658 | 1,550,482 | |
Deferred income tax assets, net | 1,235,658 | 1,550,482 | 1,344,425 |
Customer advances | |||
Income Taxes | |||
Deferred tax assets | 1,600,334 | 1,499,462 | |
Deferred income tax assets, net | 1,600,334 | 1,499,462 | 1,799,330 |
Derivative financial instruments | |||
Income Taxes | |||
Deferred income tax assets, net | 972,991 | 273,210 | |
Property, plant and equipment, net | |||
Income Taxes | |||
Deferred tax assets | 2,084,550 | 1,650,860 | |
Deferred income tax assets, net | 2,084,550 | 1,650,860 | 1,570,890 |
Prepaid expenses and other items | |||
Income Taxes | |||
Deferred tax assets | 5,868,717 | 3,700,673 | |
Deferred income tax assets, net | 5,868,717 | 3,700,673 | 1,125,387 |
Operating tax losses | |||
Income Taxes | |||
Deferred tax assets | 5,481,738 | 7,433,425 | |
Capital tax losses | |||
Income Taxes | |||
Deferred tax assets | 5,767,847 | 5,591,581 | |
Investments | |||
Income Taxes | |||
Deferred tax liabilities | (729,910) | (6,676,401) | |
Deferred income tax assets, net | (729,910) | (6,676,401) | (7,812,896) |
Derivative financial instruments | |||
Income Taxes | |||
Deferred income tax assets, net | (248,547) | ||
Intangible assets and transmission rights | |||
Income Taxes | |||
Deferred tax liabilities | (2,549,784) | (2,406,145) | |
Deferred income tax assets, net | (2,549,784) | (2,406,145) | (843,409) |
Deferred income tax assets of Mexican companies | |||
Income Taxes | |||
Deferred income tax assets, net | 25,951,453 | 16,969,168 | |
Deferred income tax assets of foreign subsidiaries | |||
Income Taxes | |||
Deferred income tax assets, net | $ 261,929 | $ 163,747 | $ 221,392 |
Income Taxes - Gross rollforwar
Income Taxes - Gross rollforward of deferred income tax assets, net (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Gross rollforward of deferred income tax assets, net | ||
Deferred income tax account at beginning of period | $ 17,132,915 | $ 13,791,257 |
Statement of income credit | 1,574,610 | 2,598,712 |
Other comprehensive income ("OCI") credit | 7,528,693 | 1,154,097 |
Retained earnings charge | (342,420) | |
Disposed Operations | (22,836) | (68,731) |
Deferred income tax account at end of period | $ 26,213,382 | $ 17,132,915 |
Income Taxes - Rollforward of d
Income Taxes - Rollforward of deferred income tax assets and liabilities (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | $ 17,132,915 | $ 13,791,257 |
Credit (Charge) to Consolidated Statement of Income | 1,574,610 | 2,598,712 |
Credit (Charge) to Other Comprehensive Income and Equity | 7,528,693 | 811,677 |
Disposed Operations | (22,836) | (68,731) |
Reclassification to current assets (liabilities) held for sale | (68,731) | |
Deferred income tax account at end of period | 26,213,382 | 17,132,915 |
Assets | ||
Rollforward of deferred income tax assets and liabilities | ||
Credit (Charge) to Consolidated Statement of Income | 0 | |
Accrued liabilities | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 4,352,021 | 3,619,288 |
Credit (Charge) to Consolidated Statement of Income | 1,867,291 | 732,733 |
Deferred income tax account at end of period | 6,219,312 | 4,352,021 |
Loss allowance | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 1,550,482 | 1,344,425 |
Credit (Charge) to Consolidated Statement of Income | (314,824) | 206,057 |
Deferred income tax account at end of period | 1,235,658 | 1,550,482 |
Customer advances | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 1,499,462 | 1,799,330 |
Credit (Charge) to Consolidated Statement of Income | 100,872 | (299,868) |
Deferred income tax account at end of period | 1,600,334 | 1,499,462 |
Derivative financial instruments | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 273,210 | |
Credit (Charge) to Consolidated Statement of Income | 288,737 | (183,364) |
Credit (Charge) to Other Comprehensive Income and Equity | 411,044 | 456,574 |
Deferred income tax account at end of period | 972,991 | 273,210 |
Property, plant and equipment, net | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 1,650,860 | 1,570,890 |
Credit (Charge) to Consolidated Statement of Income | 433,690 | 79,970 |
Deferred income tax account at end of period | 2,084,550 | 1,650,860 |
Prepaid expenses and other items | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 3,700,673 | 1,125,387 |
Credit (Charge) to Consolidated Statement of Income | 2,087,586 | 2,586,763 |
Credit (Charge) to Other Comprehensive Income and Equity | 103,294 | 57,254 |
Disposed Operations | (22,836) | |
Reclassification to current assets (liabilities) held for sale | (68,731) | |
Deferred income tax account at end of period | 5,868,717 | 3,700,673 |
Tax loss carryforwards | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 13,025,006 | 13,015,397 |
Credit (Charge) to Consolidated Statement of Income | (1,516,219) | 334,122 |
Credit (Charge) to Other Comprehensive Income and Equity | (259,202) | (324,513) |
Deferred income tax account at end of period | 11,249,585 | 13,025,006 |
Deferred income tax assets of foreign subsidiaries | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | 163,747 | 221,392 |
Credit (Charge) to Consolidated Statement of Income | 98,182 | (57,645) |
Deferred income tax account at end of period | 261,929 | 163,747 |
Investments | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | (6,676,401) | (7,812,896) |
Credit (Charge) to Consolidated Statement of Income | (1,327,066) | 514,133 |
Credit (Charge) to Other Comprehensive Income and Equity | 7,273,557 | 622,362 |
Deferred income tax account at end of period | (729,910) | (6,676,401) |
Derivative financial instruments | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | (248,547) | |
Credit (Charge) to Consolidated Statement of Income | 0 | 248,547 |
Intangible assets and transmission rights | ||
Rollforward of deferred income tax assets and liabilities | ||
Deferred income tax account at beginning of period | (2,406,145) | (843,409) |
Credit (Charge) to Consolidated Statement of Income | (143,639) | (1,562,736) |
Deferred income tax account at end of period | $ (2,549,784) | $ (2,406,145) |
Income Taxes - Tax (charge) cre
Income Taxes - Tax (charge) credit relating to components of other comprehensive income (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive loss, Before Tax | |||
Remeasurement of post-employment benefit obligations | $ (344,313) | $ (247,092) | $ (97,086) |
Remeasurement of post-employment benefit obligations of assets held for sale | (3,445) | ||
Exchange differences on translating foreign operations | 133,522 | (98,422) | (859,032) |
Derivative financial instruments cash flow hedges, Before Tax | (1,370,145) | (1,521,912) | 174,532 |
Warrants exercisable for common stock of UHI | (21,899,164) | 257,306 | (1,347,698) |
Opend Ended Fund, Before Tax | (904,423) | (351,202) | 215,957 |
Other equity instruments, Before Tax | (353,496) | (794,624) | 603,766 |
Other financial assets, Before Tax | 111 | (111) | |
Share of loss of associates and joint ventures, Before Tax | (61,033) | (236,159) | (47,313) |
Other comprehensive loss before income taxes | (24,799,052) | (2,995,439) | (1,356,985) |
Other comprehensive loss, Tax (Charge) Credit | |||
Remeasurement of post-employment benefit obligations, Tax (Charge) Credit | 103,294 | 74,128 | 230,623 |
Remeasurement of post-employment benefit obligations of assets held for sale, Tax (Charge) Credit | 1,033 | ||
Exchange differences on translating foreign operations, Tax (Charge) Credit | 408,221 | (101,323) | (587) |
Derivative financial instruments cash flow hedges, Tax (Charge) Credit | 411,044 | 456,574 | (52,359) |
Warrants exercisable for common stock of UHI, Tax (Charge) Credit | 6,639,400 | (77,192) | 404,309 |
Open Ended Fund, Tax (Charge) Credit | 268,906 | 112,590 | (64,787) |
Other equity instruments, Tax (Charge) Credit | 106,049 | 238,387 | (181,130) |
Other financial assets, Tax (Charge) Credit | (33) | 33 | |
Other comprehensive income, Tax (Charge) Credit | 7,936,914 | 704,164 | 336,102 |
Current tax | 408,221 | (449,933) | (587) |
Deferred tax | 7,528,693 | 1,154,097 | 336,689 |
Other comprehensive loss, After Tax | |||
Remeasurement of post-employment benefit obligations, After Tax | (241,019) | (172,964) | 133,537 |
Remeasurement of post-employment benefit obligations of assets held for sale, after tax | (2,412) | ||
Exchange differences on translating foreign operations, After Tax | 541,743 | (199,745) | (859,619) |
Derivative financial instruments cash flow hedges, After Tax | (959,101) | (1,065,338) | 122,173 |
Warrants exercisable for common stock of UHI, After Tax | (15,259,764) | 180,114 | (943,389) |
Open Ended Fund, After Tax | (635,517) | (238,612) | 151,170 |
Other equity instruments, After Tax | (247,447) | (556,237) | 422,636 |
Other financial assets, After Tax | 78 | (78) | |
Share of loss of associates and joint ventures, After Tax | (61,033) | (236,159) | (47,313) |
Total other comprehensive income | (16,862,138) | (2,291,275) | (1,020,883) |
Deferred income tax liability related to associates and joint ventures | $ 44,820 | $ 1,029,209 | |
Deferred Tax Expense (Income) Relating to Remeasurement of Post Employment Benefit Obligations | $ 201,497 |
Earnings per CPO_Share (Details
Earnings per CPO/Share (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020$ / shares$ / EquityInstrumentsshares | Dec. 31, 2019$ / shares$ / EquityInstrumentsshares | Dec. 31, 2018$ / shares$ / EquityInstruments | |
Basic weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Total Shares | 330,685,559 | 338,375,192 | |
Basic earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Basic earnings per CPO attributable to stockholders of the Company | $ / EquityInstruments | (0.44) | 1.60 | 2.07 |
Diluted weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Total Shares | 352,237,926 | 354,827,433 | |
CPOs (in CPO units) | 2,486,783 | 2,508,916 | |
Diluted earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Diluted earnings per CPO attributable to stockholders of the Company | $ / EquityInstruments | (0.41) | 1.53 | 1.96 |
Series "A" Shares | |||
Basic weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 55,563,596 | 56,077,584 | |
Basic earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Basic earnings per share | $ / shares | $ 0 | $ 0.01 | $ 0.02 |
Diluted weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 58,926,613 | 58,926,613 | |
Diluted earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Diluted earnings per Share | $ / shares | $ 0 | $ 0.01 | 0.02 |
Series "B" Shares | |||
Basic weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 187 | 187 | |
Basic earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Basic earnings per share | $ / shares | $ 0 | $ 0.01 | 0.02 |
Diluted weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 2,357,208 | 2,357,208 | |
Diluted earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Diluted earnings per Share | $ / shares | $ 0 | $ 0.01 | 0.02 |
Series "D" Shares | |||
Basic weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 239 | 239 | |
Basic earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Basic earnings per share | $ / shares | $ 0 | $ 0.01 | 0.02 |
Diluted weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 239 | 239 | |
Diluted earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Diluted earnings per Share | $ / shares | $ 0 | $ 0.01 | 0.02 |
Series "L" Shares | |||
Basic weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 239 | 239 | |
Basic earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Basic earnings per share | $ / shares | $ 0 | $ 0.01 | 0.02 |
Diluted weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
Shares not in the form of CPO units | 239 | 239 | |
Diluted earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Diluted earnings per Share | $ / shares | $ 0 | $ 0.01 | $ 0.02 |
CPOs | |||
Basic weighted average of outstanding total shares, CPOs and Series of Shares (not in the form of CPO unit) | |||
CPOs (in CPO units) | 2,351,464 | 2,412,794 | |
Basic earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Basic earnings per CPO attributable to stockholders of the Company | $ / EquityInstruments | (0.44) | 1.60 | 2.07 |
Diluted earnings per CPO and per each Series of Shares (not in the form of a CPO unit) | |||
Diluted earnings per CPO attributable to stockholders of the Company | $ / EquityInstruments | (0.41) | 1.53 | 1.96 |
Segment Information - Revenue i
Segment Information - Revenue information by segment and a reconciliation to consolidated total (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Information | |||
Revenue | $ 97,361,634 | $ 101,757,181 | $ 101,282,333 |
Reconciliation to consolidated amounts: | |||
Disposed operations | 223,272 | 841,437 | 920,009 |
Eliminations and corporate expenses | (7,252,528) | (5,394,062) | (4,812,091) |
Depreciation and amortisation expense | (21,641,650) | (21,540,222) | (20,278,881) |
Income before other income or expense | 17,291,740 | 18,321,617 | 18,690,274 |
Operating income | 17,525,368 | 17,005,030 | 20,252,558 |
Reportable segments | |||
Segment Information | |||
Revenue | 104,390,890 | 106,309,806 | 105,174,415 |
Cable | |||
Segment Information | |||
Revenue | 45,367,108 | 41,701,982 | 36,233,042 |
Sky | |||
Segment Information | |||
Revenue | 22,134,701 | 21,347,078 | 22,002,216 |
Content | |||
Segment Information | |||
Revenue | 32,613,007 | 35,060,534 | 39,223,668 |
Other Businesses | |||
Segment Information | |||
Revenue | 4,276,074 | 8,200,212 | 7,715,489 |
Operating segment | |||
Segment Information | |||
Revenue | 97,361,634 | 101,757,181 | 101,282,333 |
Reconciliation to consolidated amounts: | |||
Disposed operations | (3,991) | 258,885 | 343,799 |
Eliminations and corporate expenses | (1,954,406) | (1,960,648) | (2,154,747) |
Depreciation and amortisation expense | (21,260,787) | (21,008,796) | (19,834,202) |
Income before other income or expense | 17,291,740 | 18,321,617 | 18,690,274 |
Other income, net | 233,628 | 1,562,284 | |
Other expense, net | (1,316,587) | ||
Operating income | 17,525,368 | 17,005,030 | 20,252,558 |
Operating segment | Reportable segments | |||
Segment Information | |||
Revenue | 104,390,890 | 106,309,806 | 105,174,415 |
Reconciliation to consolidated amounts: | |||
Operating income | 40,510,924 | 41,032,176 | 40,335,424 |
Operating segment | Cable | |||
Reconciliation to consolidated amounts: | |||
Operating income | 18,898,301 | 17,797,571 | 15,302,500 |
Operating segment | Sky | |||
Reconciliation to consolidated amounts: | |||
Operating income | 9,135,346 | 9,121,221 | 9,767,329 |
Operating segment | Content | |||
Reconciliation to consolidated amounts: | |||
Operating income | 12,360,797 | 12,649,135 | 14,855,109 |
Operating segment | Other Businesses | |||
Reconciliation to consolidated amounts: | |||
Operating income | 116,480 | 1,464,249 | 410,486 |
Intersegment Revenues | |||
Segment Information | |||
Revenue | (7,252,528) | (5,394,062) | (4,812,091) |
Reconciliation to consolidated amounts: | |||
Disposed operations | 2,969 | 7,413 | |
Eliminations and corporate expenses | (7,252,528) | (5,394,062) | (4,812,091) |
Intersegment Revenues | Reportable segments | |||
Segment Information | |||
Revenue | (7,252,528) | (5,391,093) | (4,804,678) |
Intersegment Revenues | Cable | |||
Segment Information | |||
Revenue | (710,357) | (591,618) | (560,186) |
Intersegment Revenues | Sky | |||
Segment Information | |||
Revenue | (581,270) | (437,275) | (420,979) |
Intersegment Revenues | Content | |||
Segment Information | |||
Revenue | (4,679,805) | (3,589,407) | (3,162,091) |
Intersegment Revenues | Other Businesses | |||
Segment Information | |||
Revenue | (1,281,096) | (772,793) | (661,422) |
Consolidated Revenues | |||
Segment Information | |||
Revenue | 97,361,634 | 101,757,181 | 101,282,333 |
Reconciliation to consolidated amounts: | |||
Disposed operations | 223,272 | 838,468 | 912,596 |
Consolidated Revenues | Reportable segments | |||
Segment Information | |||
Revenue | 97,138,362 | 100,918,713 | 100,369,737 |
Consolidated Revenues | Cable | |||
Segment Information | |||
Revenue | 44,656,751 | 41,110,364 | 35,672,856 |
Consolidated Revenues | Sky | |||
Segment Information | |||
Revenue | 21,553,431 | 20,909,803 | 21,581,237 |
Consolidated Revenues | Content | |||
Segment Information | |||
Revenue | 27,933,202 | 31,471,127 | 36,061,577 |
Consolidated Revenues | Other Businesses | |||
Segment Information | |||
Revenue | $ 2,994,978 | $ 7,427,419 | $ 7,054,067 |
Segment Information - Segment i
Segment Information - Segment information about assets, liabilities, and additions to property, plant and equipment (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Information | |||
Segment Assets | $ 271,246,332 | $ 290,343,892 | |
Segment Liabilities | 183,307,299 | 184,718,659 | |
Additions to Property, Plant and Equipment | 20,131,738 | 19,108,284 | $ 18,708,491 |
Reconciliation of segment assets to total assets | |||
Assets | 271,246,332 | 290,343,892 | |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 183,307,299 | 184,718,659 | |
Cable | |||
Segment Information | |||
Additions to Property, Plant and Equipment | 14,182,848 | 12,995,448 | 12,835,918 |
Reconciliation of segment assets to total assets | |||
Investments | 515,002 | 567,435 | |
Goodwill | 13,794,684 | 13,794,684 | |
Equity method loss recognized in income | 7,826 | 62,329 | 47,024 |
Sky | |||
Segment Information | |||
Additions to Property, Plant and Equipment | 5,361,494 | 4,039,020 | 4,020,405 |
Content | |||
Segment Information | |||
Additions to Property, Plant and Equipment | 479,731 | 1,690,805 | 1,349,954 |
Reconciliation of segment assets to total assets | |||
Investments | 29,096,777 | 53,264,422 | |
Goodwill | 241,973 | 241,973 | |
Equity method gain recognized in income | (5,739,833) | 642,768 | 564,226 |
Other Businesses | |||
Segment Information | |||
Additions to Property, Plant and Equipment | 107,665 | 383,011 | 502,214 |
Reconciliation of segment assets to total assets | |||
Investments | 204,464 | 196,474 | |
Goodwill | 76,969 | 76,969 | |
Equity method gain recognized in income | 7,991 | 584 | 15,731 |
Operating segment | |||
Segment Information | |||
Segment Assets | 227,316,463 | 222,201,935 | 223,306,809 |
Segment Liabilities | 64,356,435 | 70,626,022 | 78,500,044 |
Additions to Property, Plant and Equipment | 20,131,738 | 19,108,284 | 18,708,491 |
Reconciliation of segment assets to total assets | |||
Assets | 227,316,463 | 222,201,935 | 223,306,809 |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 64,356,435 | 70,626,022 | 78,500,044 |
Operating segment | Cable | |||
Segment Information | |||
Segment Assets | 112,478,015 | 105,841,104 | 99,678,509 |
Segment Liabilities | 22,295,808 | 21,637,395 | 21,294,108 |
Reconciliation of segment assets to total assets | |||
Assets | 112,478,015 | 105,841,104 | 99,678,509 |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 22,295,808 | 21,637,395 | 21,294,108 |
Operating segment | Sky | |||
Segment Information | |||
Segment Assets | 26,423,707 | 27,755,967 | 30,350,221 |
Segment Liabilities | 10,696,397 | 12,902,845 | 13,680,854 |
Reconciliation of segment assets to total assets | |||
Assets | 26,423,707 | 27,755,967 | 30,350,221 |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 10,696,397 | 12,902,845 | 13,680,854 |
Operating segment | Content | |||
Segment Information | |||
Segment Assets | 80,237,558 | 78,336,679 | 83,525,004 |
Segment Liabilities | 27,427,941 | 31,555,070 | 39,960,653 |
Reconciliation of segment assets to total assets | |||
Assets | 80,237,558 | 78,336,679 | 83,525,004 |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 27,427,941 | 31,555,070 | 39,960,653 |
Operating segment | Other Businesses | |||
Segment Information | |||
Segment Assets | 8,177,183 | 10,268,185 | 9,753,075 |
Segment Liabilities | 3,936,289 | 4,530,712 | 3,564,429 |
Reconciliation of segment assets to total assets | |||
Assets | 8,177,183 | 10,268,185 | 9,753,075 |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 3,936,289 | 4,530,712 | $ 3,564,429 |
Debt not allocated to segments | |||
Segment Information | |||
Segment Liabilities | 118,950,864 | 114,092,637 | |
Reconciliation of segment liabilities to total liabilities | |||
Liabilities | 118,950,864 | 114,092,637 | |
OCEN and subsidiaries | |||
Reconciliation of segment assets to total assets | |||
Goodwill | $ 359,613 | $ 359,613 |
Segment Information - Geographi
Segment Information - Geographical segment information (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Geographical segment information: | |||
Revenue | $ 97,361,634 | $ 101,757,181 | $ 101,282,333 |
Assets | 271,246,332 | 290,343,892 | |
Additions to Property, Plant and Equipment | 20,131,738 | 19,108,284 | 18,708,491 |
Mexico | |||
Geographical segment information: | |||
Revenue | 84,664,293 | 88,388,569 | 85,011,567 |
Additions to Property, Plant and Equipment | 19,707,436 | 18,804,629 | 18,696,116 |
Other countries | |||
Geographical segment information: | |||
Revenue | 12,697,341 | 13,368,612 | 16,270,766 |
Additions to Property, Plant and Equipment | 424,302 | 303,655 | 12,375 |
Operating segment | |||
Geographical segment information: | |||
Revenue | 97,361,634 | 101,757,181 | 101,282,333 |
Assets | 227,316,463 | 222,201,935 | 223,306,809 |
Additions to Property, Plant and Equipment | 20,131,738 | 19,108,284 | 18,708,491 |
Operating segment | Mexico | |||
Geographical segment information: | |||
Assets | 215,395,954 | 211,592,987 | 216,146,757 |
Operating segment | Other countries | |||
Geographical segment information: | |||
Assets | $ 11,920,509 | $ 10,608,948 | $ 7,160,052 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Total Revenues (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | $ 84,664,293 | $ 88,388,569 | $ 85,011,567 |
Export revenue | 10,683,740 | 11,380,927 | 13,502,710 |
Abroad revenue | 2,013,601 | 1,987,685 | 2,768,056 |
Total revenue | 97,361,634 | 101,757,181 | 101,282,333 |
Radio - Advertising | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 223,272 | 841,437 | 920,009 |
Total revenue | 223,272 | 841,437 | 920,009 |
Operating segment | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 97,361,634 | 101,757,181 | 101,282,333 |
Intersegment Revenues | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | (7,252,528) | (5,387,894) | (4,803,974) |
Abroad revenue | (6,168) | (8,117) | |
Total revenue | (7,252,528) | (5,394,062) | (4,812,091) |
Reportable segments | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 104,390,890 | 106,309,806 | 105,174,415 |
Reportable segments | Operating segment | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 91,693,549 | 92,935,026 | 88,895,532 |
Export revenue | 10,683,740 | 11,380,927 | 13,502,710 |
Abroad revenue | 2,013,601 | 1,993,853 | 2,776,173 |
Total revenue | 104,390,890 | 106,309,806 | 105,174,415 |
Reportable segments | Intersegment Revenues | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | (7,252,528) | (5,391,093) | (4,804,678) |
Cable | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 45,367,108 | 41,701,982 | 36,233,042 |
Cable | Operating segment | Digital TV Service | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 16,549,458 | 16,298,079 | 14,281,536 |
Total revenue | 16,549,458 | 16,298,079 | 14,281,536 |
Cable | Operating segment | Advertising | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 1,633,201 | 1,507,831 | 1,260,117 |
Total revenue | 1,633,201 | 1,507,831 | 1,260,117 |
Cable | Operating segment | Broadband Services | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 16,540,687 | 14,544,473 | 13,034,172 |
Total revenue | 16,540,687 | 14,544,473 | 13,034,172 |
Cable | Operating segment | Telephony | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 4,382,964 | 3,658,121 | 2,588,767 |
Total revenue | 4,382,964 | 3,658,121 | 2,588,767 |
Cable | Operating segment | Other Services | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 702,023 | 801,937 | 544,347 |
Total revenue | 702,023 | 801,937 | 544,347 |
Cable | Operating segment | Enterprise Operations | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 5,245,443 | ||
Abroad revenue | 313,332 | ||
Total revenue | 5,558,775 | ||
Cable | Operating segment | Telecommunications Networks | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 4,626,396 | 4,361,586 | |
Abroad revenue | 265,145 | 162,517 | |
Total revenue | 4,891,541 | 4,524,103 | |
Cable | Operating segment | Leasing set-top equipment | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 5,514,984 | 5,289,996 | 4,577,513 |
Cable | Intersegment Revenues | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | (710,357) | (591,618) | (560,186) |
Sky | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 22,134,701 | 21,347,078 | 22,002,216 |
Sky | Operating segment | Advertising | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 1,112,662 | 953,634 | 968,853 |
Total revenue | 1,112,662 | 953,634 | 968,853 |
Sky | Operating segment | DTH Broadcast Satellite TV | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 19,398,285 | 18,918,077 | 19,478,307 |
Abroad revenue | 1,569,999 | 1,359,079 | 1,374,849 |
Total revenue | 20,968,284 | 20,277,156 | 20,853,156 |
Sky | Operating segment | Pay-Per-View | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 42,291 | 98,539 | 152,129 |
Abroad revenue | 11,464 | 17,749 | 28,078 |
Total revenue | 53,755 | 116,288 | 180,207 |
Sky | Operating segment | Leasing set-top equipment | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 9,212,317 | 9,232,152 | 9,971,318 |
Sky | Intersegment Revenues | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | (581,270) | (437,275) | (420,979) |
Content | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 32,613,007 | 35,060,534 | 39,223,668 |
Content | Operating segment | Advertising | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 16,180,397 | 19,236,014 | 20,932,533 |
Export revenue | 169,362 | 223,434 | 222,369 |
Total revenue | 16,349,759 | 19,459,448 | 21,154,902 |
Content | Operating segment | Network Subscription Revenue | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 4,322,535 | 3,832,716 | 3,500,375 |
Export revenue | 1,143,657 | 1,160,459 | 1,313,907 |
Total revenue | 5,466,192 | 4,993,175 | 4,814,282 |
Content | Operating segment | Licensing and Syndication | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 1,572,659 | 1,794,636 | 1,437,081 |
Export revenue | 9,224,397 | 8,813,275 | 11,817,403 |
Total revenue | 10,797,056 | 10,607,911 | 13,254,484 |
Content | Intersegment Revenues | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | (4,679,805) | (3,589,407) | (3,162,091) |
Other Businesses | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | 4,276,074 | 8,200,212 | 7,715,489 |
Other Businesses | Operating segment | Gaming | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 959,985 | 2,974,284 | 2,676,384 |
Total revenue | 959,985 | 2,974,284 | 2,676,384 |
Other Businesses | Operating segment | Soccer, Sports and Show Business | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 1,382,708 | 1,821,605 | 1,639,073 |
Export revenue | 146,324 | 1,182,972 | 145,462 |
Total revenue | 1,529,032 | 3,004,577 | 1,784,535 |
Other Businesses | Operating segment | Publishing - Magazines | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 269,768 | 393,763 | 550,777 |
Abroad revenue | 942 | 18,076 | 104,281 |
Total revenue | 270,710 | 411,839 | 655,058 |
Other Businesses | Operating segment | Publishing - Advertising | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 173,645 | 246,309 | 482,943 |
Abroad revenue | 23,461 | 181,514 | |
Total revenue | 173,645 | 269,770 | 664,457 |
Other Businesses | Operating segment | Publishing Distribution | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 309,673 | 337,685 | 270,624 |
Abroad revenue | 40,148 | ||
Total revenue | 309,673 | 337,685 | 310,772 |
Other Businesses | Operating segment | Feature Film Production and Distribution | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Domestic revenue | 915,165 | 890,927 | 735,928 |
Export revenue | 787 | 3,569 | |
Abroad revenue | 117,864 | 310,343 | 884,786 |
Total revenue | 1,033,029 | 1,202,057 | 1,624,283 |
Other Businesses | Intersegment Revenues | |||
Revenues for each reportable segment disaggregated by major service/product lines and primary geographical market | |||
Total revenue | $ (1,281,096) | $ (772,793) | $ (661,422) |
Segment Information - Net sales
Segment Information - Net sales from external customers (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Information | |||
Services | $ 71,745,105 | $ 75,988,820 | $ 72,737,313 |
Royalties | 9,907,313 | 10,005,977 | 12,600,061 |
Goods | 805,690 | 932,198 | 1,163,836 |
Leases | 14,903,526 | 14,830,186 | 14,781,123 |
Total revenue | $ 97,361,634 | $ 101,757,181 | $ 101,282,333 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Thousands, $ in Thousands | Jul. 16, 2020MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2020MXN ($) | Jun. 27, 2019MXN ($) | Jun. 21, 2019MXN ($) |
Commitments and Contingencies | ||||||
Commitments for programming rights | $ 82,200 | $ 1,639,297 | ||||
Commitments for transmission rights | 818,900 | 16,337,216 | ||||
Commitments for transmission rights to be sublicensed | 88,700 | 1,769,602 | ||||
Total aggregate commitments | 1,732,382 | |||||
Commitments for gaming operations | 10,086 | |||||
Commitments to acquire television technical equipment | 120,956 | |||||
Commitments to acquire software and related services | 390,080 | |||||
Construction commitments for building improvements and technical facilities | $ 1,211,260 | |||||
Minimum annual commitments for the use of satellite transponders | $ 16,475 | |||||
Number of years in which the Preponderant Economic Agent can be updated | 2 years | 2 years | ||||
Minimum content of broadcast on daily basis to be offered | 50.00% | 50.00% | ||||
Estimated financial effect of contingent tax liabilities | $ 289,821 | $ 682,000 | ||||
Percentage on commercial value of merchandise | 70.00% | |||||
2021 | ||||||
Commitments and Contingencies | ||||||
Minimum annual commitments for the use of satellite transponders | $ 6,410 | |||||
2022 | ||||||
Commitments and Contingencies | ||||||
Minimum annual commitments for the use of satellite transponders | 4,163 | |||||
2023 | ||||||
Commitments and Contingencies | ||||||
Minimum annual commitments for the use of satellite transponders | 2,988 | |||||
2024 and thereafter | ||||||
Commitments and Contingencies | ||||||
Minimum annual commitments for the use of satellite transponders | 2,914 | |||||
IEPS | ||||||
Commitments and Contingencies | ||||||
Estimated financial effect of contingent tax liabilities | $ 1,334,000 | |||||
Long-term credit facility | ||||||
Commitments and Contingencies | ||||||
Amount of future financing expected to provide in 2021 | $ 79,797 | |||||
Grupo de Telecomunicaciones de Alta Capacidad, S.A.P.I. de C.V. and subsidiaries ("GTAC") | Long-term credit facility | ||||||
Commitments and Contingencies | ||||||
Amount of future financing expected to provide in 2021 | $ 4,000 | $ 49,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Reconciliation of the non-cancellable lease commitments (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Impact on Consolidated Financial Statements | ||||
Total lease liabilities | $ 9,292,351 | $ 9,363,520 | ||
IFRS 16 | ||||
Impact on Consolidated Financial Statements | ||||
Operating lease commitments disclosed under IAS 17 in the Group's consolidated financial statements as of December 31, 2018 | $ 7,160,431 | |||
Discounted using the incremental borrowing rate at January 1, 2019 | (2,669,751) | |||
Finance lease liabilities recognized at 31 December 2018 | 5,317,944 | |||
Adjustments as a result of a different treatment of extension, termination options and short term and low value exemptions | 306,632 | |||
Total lease liabilities | $ 4,745,292 | $ 4,745,292 | $ 10,115,256 | $ 4,641,705 |
Changes in Accounting Policie_3
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 - Recognition of cumulative adjustments, IFRS 9 (Details) $ in Thousands | Jan. 01, 2018MXN ($) |
Adoption of IFRS 9 | |
Recognition of cumulative adjustments | |
Retained Earnings | $ (281,594) |
Income Taxes | 79,130 |
Net | (202,464) |
Adoption of IFRS 9 | Equity Attributable to Stockholders of the Company | |
Recognition of cumulative adjustments | |
Retained Earnings | (234,129) |
Income Taxes | 67,101 |
Net | (167,028) |
Adoption of IFRS 9 | Non-controlling Interests | |
Recognition of cumulative adjustments | |
Retained Earnings | (47,465) |
Income Taxes | 12,029 |
Net | (35,436) |
Increase decrease in financial assets due to application Of IFRS 9 | |
Recognition of cumulative adjustments | |
Retained Earnings | (1,182,760) |
Income Taxes | 354,828 |
Net | $ (827,932) |
Changes in Accounting Policie_4
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 - Classification and measurement of financial instruments (Details) $ in Thousands | Dec. 31, 2017MXN ($) |
Current portion of long-term debt | Amortized cost | |
Financial Instruments | |
Financial liabilities, carrying amount immediately before initial application of IFRS 9 | $ 2,103,870 |
Financial liabilities, carrying amount immediately after initial application of IFRS 9 | 2,103,870 |
Long-term debt | Amortized cost | |
Financial Instruments | |
Financial liabilities, carrying amount immediately before initial application of IFRS 9 | 121,993,128 |
Financial liabilities, carrying amount immediately after initial application of IFRS 9 | 121,993,128 |
Cash and bank accounts | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 1,761,260 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 1,761,260 |
Short-term investments | FVIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 37,021,338 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 37,021,338 |
Other Financial Assets | FVIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 5,942,500 |
Other Financial Assets | FVOCIL | |
Financial Instruments | |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 5,942,500 |
Current maturities of non-current financial assets | Amortized cost | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 23,529 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 23,529 |
Trade notes and accounts receivable, net | Amortized cost | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 24,727,073 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 24,727,073 |
Options | FVIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 795,010 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 795,010 |
Forward | FVIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 397,037 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 397,037 |
Forward | Hedge accounting | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 112,157 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 112,157 |
Interest rate swap | Hedge accounting | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 664,724 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 664,724 |
Warrants issued by UHI | FVOCIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 36,395,183 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 36,395,183 |
Open Ended Fund | FVOCIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 7,297,577 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 7,297,577 |
Financial assets held to maturity | Amortized cost | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 287,605 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 287,605 |
Other | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 16,487 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 16,487 |
TVI | Options | FVIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 100,700 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 100,700 |
TVI | Interest rate swap | Hedge accounting | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 84,109 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | 84,109 |
Empresas Cablevision | Options | FVIL | |
Financial Instruments | |
Financial assets, carrying amount immediately before initial application of IFRS 9 | 110,137 |
Financial assets, carrying amount immediately after initial application of IFRS 9 | $ 110,137 |
Changes in Accounting Policie_5
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 - Contract Costs (Details) - Costs to obtain contract with customers - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Costs | ||
Beginning balance | $ 3,691,237 | $ 3,370,659 |
Additions | 2,498,338 | 1,770,479 |
Amortization | (1,648,018) | (1,449,901) |
Ending balance | 4,541,557 | 3,691,237 |
Current Contract Costs | 1,598,447 | 1,379,400 |
Total Non-current Contract Costs | 2,943,110 | 2,311,837 |
Cable | ||
Contract Costs | ||
Beginning balance | 1,436,758 | 1,133,727 |
Additions | 1,163,038 | 753,473 |
Amortization | (572,105) | (450,442) |
Ending balance | 2,027,691 | 1,436,758 |
Current Contract Costs | 640,656 | 477,167 |
Total Non-current Contract Costs | 1,387,035 | 959,591 |
Sky | ||
Contract Costs | ||
Beginning balance | 2,254,479 | 2,236,932 |
Additions | 1,335,300 | 1,017,006 |
Amortization | (1,075,913) | (999,459) |
Ending balance | 2,513,866 | 2,254,479 |
Current Contract Costs | 957,792 | 902,233 |
Total Non-current Contract Costs | $ 1,556,074 | $ 1,352,246 |
Changes in Accounting Policie_6
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 - Recognition of cumulative adjustments, IFRS 15 (Details) - Adoption of IFRS 15 $ in Thousands | Jan. 01, 2018MXN ($) |
Recognition of cumulative adjustments | |
Retained Earnings | $ 3,385,204 |
Income Taxes | (1,000,549) |
Net | 2,384,655 |
Equity Attributable to Stockholders of the Company | |
Recognition of cumulative adjustments | |
Retained Earnings | 2,272,350 |
Income Taxes | (672,898) |
Net | 1,599,452 |
Non-controlling Interests | |
Recognition of cumulative adjustments | |
Retained Earnings | 1,112,854 |
Income Taxes | (327,651) |
Net | $ 785,203 |
Changes in Accounting Policie_7
Changes in Accounting Policies Required by the Initial Application of IFRS 9, IFRS 15 and IFRS 16 - Operating Leases and Financial Leases (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Impact on Consolidated Financial Statements | ||||
Right-of-use assets, net | $ 7,212,165 | $ 7,553,052 | $ 8,200,181 | |
Lease liabilities | (9,292,351) | (9,363,520) | ||
Current portion of lease liabilities | 1,277,754 | 1,257,766 | ||
IFRS 16 | ||||
Impact on Consolidated Financial Statements | ||||
Lease liabilities | (4,745,292) | (4,745,292) | $ (10,115,256) | $ (4,641,705) |
Operating Leases | IFRS 16 | ||||
Impact on Consolidated Financial Statements | ||||
Right-of-use assets, net | 4,392,420 | 4,502,590 | 4,797,312 | |
Lease liabilities | (4,745,292) | (4,641,705) | (4,797,312) | |
Net effect | (352,872) | (139,115) | ||
Current portion of lease liabilities | 524,458 | 533,260 | 462,513 | |
Depreciation of right-of-use assets | 670,749 | 651,675 | ||
Finance Leases | IFRS 16 | ||||
Impact on Consolidated Financial Statements | ||||
Right-of-use assets, net | 2,819,745 | 3,050,462 | 3,402,869 | |
Lease liabilities | (4,547,059) | (4,721,815) | (5,317,944) | |
Net effect | (1,727,314) | (1,671,353) | (1,915,075) | |
Current portion of lease liabilities | 753,296 | 754,506 | $ 651,800 | |
Depreciation of right-of-use assets | $ 426,025 | $ 418,675 |
Events after the Reporting Pe_2
Events after the Reporting Period (Details) $ / shares in Units, shares in Millions, $ in Millions | Apr. 13, 2021USD ($) | Dec. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 28, 2021MXN ($)$ / sharesshares |
CPOs | |||||
Events after the reporting period | |||||
Number of shares held in connection of with cancellation of shares | shares | 5,173.2 | ||||
Number of other equity instruments held in connection of with cancellation of shares | shares | 44.2 | ||||
Non ordinary CPOs | |||||
Events after the reporting period | |||||
Dividends payable | $ 0.002991452813 | ||||
CPOs | |||||
Events after the reporting period | |||||
Dividends payable per CPO | $ / shares | $ 0.35 | ||||
Transaction Agreement | |||||
Events after the reporting period | |||||
Increase in Cash and cash equivalents | $ 3,000 | ||||
UHI | |||||
Events after the reporting period | |||||
Proportion of ownership interest in associate | 10.00% | 35.90% | 10.00% | ||
Increase in equity method investments | $ 1,500 | ||||
UHI | Transaction Agreement | |||||
Events after the reporting period | |||||
Proportion of ownership interest in associate | 45.00% | ||||
Consideration receivable | $ 4,500 | ||||
Increase in Cash and cash equivalents | 3,000 | ||||
Increase in equity method investments | $ 1,500 |