Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Entity Registrant Name | Andina Bottling Co Inc |
Entity Central Index Key | 925,261 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Series A Shares | |
Entity Common Stock, Shares Outstanding | 473,289,301 |
Series B Shares | |
Entity Common Stock, Shares Outstanding | 473,281,303 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 136,242,116 | $ 141,263,880 |
Other financial assets | 14,138,161 | 60,152,627 |
Other non-financial assets | 5,611,861 | 8,601,209 |
Trade and other accounts receivable, net | 191,284,680 | 190,524,354 |
Accounts receivable from related companies | 5,370,232 | 5,788,683 |
Inventory | 131,363,000 | 144,709,348 |
Current tax assets | 1,702,296 | |
Total Current Assets | 484,010,050 | 552,742,397 |
Non-Current Assets: | ||
Other financial assets | 74,259,085 | 80,180,880 |
Other non-financial assets | 47,394,345 | 35,246,823 |
Trade and other receivables | 2,395,851 | 3,527,732 |
Accounts receivable from related parties | 156,492 | 147,682 |
Investments accounted for under the equity method | 86,809,069 | 77,197,781 |
Intangible assets other than goodwill | 663,272,878 | 680,996,062 |
Goodwill | 93,598,217 | 102,919,505 |
Property, plant and equipment | 659,750,499 | 666,150,885 |
Deferred income tax assets | 3,212,981 | |
Total Non-Current Assets | 1,630,849,417 | 1,646,367,350 |
Total Assets | 2,114,859,467 | 2,199,109,747 |
Current Liabilities: | ||
Other financial liabilities | 67,981,405 | 64,800,570 |
Trade and other accounts payable | 257,519,477 | 242,836,356 |
Accounts payable to related parties | 33,961,437 | 44,120,335 |
Provisions | 2,676,418 | 682,778 |
Income taxes payable | 3,184,965 | 10,828,593 |
Employee benefits current provisions | 35,955,643 | 35,653,431 |
Other non-financial liabilities | 27,007,977 | 20,612,791 |
Total Current Liabilities | 428,287,322 | 419,534,854 |
Other financial liabilities | 675,767,201 | 721,570,587 |
Trade and other payables | 1,132,926 | 9,509,827 |
Provisions | 62,947,748 | 72,399,115 |
Deferred income tax liabilities | 125,204,566 | 125,608,802 |
Post-employment benefit liabilities | 8,286,355 | 8,157,745 |
Other non-financial liabilities | 158,790 | |
Non-Current Liabilities: | 873,338,796 | 937,404,866 |
Equity: | ||
Issued capital | 270,737,574 | 270,737,574 |
Retained earnings | 335,523,254 | 295,708,512 |
Other reserves | 185,049,228 | 254,159,496 |
Equity attributable to equity holders of the parent | 791,310,056 | 820,605,582 |
Non-controlling interests | 21,923,293 | 21,564,445 |
Total Equity | 813,233,349 | 842,170,027 |
Total Liabilities And Equity | $ 2,114,859,467 | $ 2,199,109,747 |
Consolidated Statements of Inco
Consolidated Statements of Income by Function - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Income by Function | |||
Net sales | $ 1,848,878,619 | $ 1,777,459,320 | $ 1,877,394,256 |
Cost of sales | (1,069,024,964) | (1,033,910,027) | (1,106,706,146) |
Gross Profit | 779,853,655 | 743,549,293 | 770,688,110 |
Other income | 550,834 | 1,760,899 | 471,569 |
Distribution expenses | (192,927,875) | (183,676,895) | (202,490,792) |
Administrative expenses | (348,199,321) | (346,202,795) | (352,600,846) |
Other expenses | (16,701,471) | (22,765,167) | (21,983,048) |
Other (loss) gains | (2,537,269) | (3,387,377) | (6,301,121) |
Finance income | 11,194,375 | 9,661,692 | 10,118,375 |
Financial expenses | (55,220,369) | (51,374,971) | (55,669,217) |
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | (80,360) | (262,582) | (2,327,829) |
Foreign exchange differences | (1,370,910) | (67,518) | (2,856,370) |
Income by indexation units | (3,762,930) | (6,378,375) | (7,308,343) |
Net income before income taxes | 170,798,359 | 140,856,204 | 129,740,488 |
Income tax expense | (51,797,634) | (48,807,093) | (41,642,562) |
Net income | 119,000,725 | 92,049,111 | 88,097,926 |
Net income attributable to | |||
Equity holders of the parent | 117,835,790 | 90,525,991 | 87,863,484 |
Non-controlling interests | 1,164,935 | 1,523,120 | 234,442 |
Net income | $ 119,000,725 | $ 92,049,111 | $ 88,097,926 |
Series A Share | |||
Earnings per Share, basic and diluted | |||
Earnings per share | $ 118.56 | $ 91.08 | $ 88.40 |
Series B Share | |||
Earnings per Share, basic and diluted | |||
Earnings per share | $ 130.42 | $ 100.19 | $ 97.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 119,000,725 | $ 92,049,111 | $ 88,097,926 |
Components of other comprehensive income that will not be reclassified to net income for the period, before taxes | |||
Actuarial losses from defined benefit plans | (329,477) | (29,423) | (744,445) |
Components of other comprehensive income that will be reclassified to net income for the period, before taxes | |||
Gain (losses) from exchange rate translation differences | (68,831,435) | 148,686 | (119,212,803) |
Gain (losses) from cash flow hedges | (813,844) | (42,836,575) | 31,134,391 |
Income tax related to components of other comprehensive income that will not be reclassified to net income for the period | |||
Income tax benefit related to defined benefit plans | 84,017 | 7,060 | 148,877 |
Income tax related to components of other comprehensive income that will be reclassified to net income for the period | |||
Income tax related to exchange rate translation differences | 232,666 | (2,431,408) | 4,604,711 |
Income tax related to cash flow hedges | 167,348 | 13,301,186 | (10,172,792) |
Total comprehensive income | 49,510,000 | 60,208,637 | (6,144,135) |
Total comprehensive income attributable to: | |||
Equity holders of the parent | 48,725,522 | 59,704,657 | (5,894,668) |
Non-controlling interests | 784,478 | 503,980 | (249,467) |
Total comprehensive income | $ 49,510,000 | $ 60,208,637 | $ (6,144,135) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CLP ($) $ in Thousands | Issued capital | Total other reserves | Reserves for exchange rate differences | Cash flow hedge reserve | Actuarial gains or losses in employee benefits | Other reserves | Retained earnings | Controlling Equity | Non-Controlling interests. | Total |
Equity at beginning of period at Dec. 31, 2014 | $ 270,737,574 | $ 378,738,982 | $ (53,285,698) | $ 6,125,615 | $ (1,237,993) | $ 427,137,058 | $ 247,817,939 | $ 897,294,495 | $ 21,703,238 | $ 918,997,733 |
Comprehensive Income | ||||||||||
Net income | 87,863,484 | 87,863,484 | 234,442 | 88,097,926 | ||||||
Other comprehensive income | (93,758,152) | (114,161,459) | 20,961,599 | (558,292) | (93,758,152) | (483,909) | (94,242,061) | |||
Total comprehensive income | (93,758,152) | (114,161,459) | 20,961,599 | (558,292) | 87,863,484 | (5,894,668) | (249,467) | (6,144,135) | ||
Dividends | (60,925,992) | (60,925,992) | (393,306) | (61,319,298) | ||||||
Total changes in equity | (93,758,152) | (114,161,459) | 20,961,599 | (558,292) | 26,937,492 | (66,820,660) | (642,773) | (67,463,433) | ||
Equity at end of period at Dec. 31, 2015 | 270,737,574 | 284,980,830 | (167,447,157) | 27,087,214 | (1,796,285) | 427,137,058 | 274,755,431 | 830,473,835 | 21,060,465 | 851,534,300 |
Comprehensive Income | ||||||||||
Net income | 90,525,991 | 90,525,991 | 1,523,120 | 92,049,111 | ||||||
Other comprehensive income | (30,821,334) | (1,297,198) | (29,535,389) | 11,253 | (30,821,334) | (1,019,140) | (31,840,474) | |||
Total comprehensive income | (30,821,334) | (1,297,198) | (29,535,389) | 11,253 | 90,525,991 | 59,704,657 | 503,980 | 60,208,637 | ||
Dividends | (69,572,910) | (69,572,910) | (69,572,910) | |||||||
Total changes in equity | (30,821,334) | (1,297,198) | (29,535,389) | 11,253 | 20,953,081 | (9,868,253) | 503,980 | (9,364,273) | ||
Equity at end of period at Dec. 31, 2016 | 270,737,574 | 254,159,496 | (168,744,355) | (2,448,175) | (1,785,032) | 427,137,058 | 295,708,512 | 820,605,582 | 21,564,445 | 842,170,027 |
Comprehensive Income | ||||||||||
Net income | 117,835,790 | 117,835,790 | 1,164,935 | 119,000,725 | ||||||
Other comprehensive income | (69,110,268) | (68,333,217) | (646,496) | (130,555) | (69,110,268) | (380,457) | (69,490,725) | |||
Total comprehensive income | (69,110,268) | (68,333,217) | (646,496) | (130,555) | 117,835,790 | 48,725,522 | 784,478 | 49,510,000 | ||
Dividends | (78,021,048) | (78,021,048) | (425,630) | (78,446,678) | ||||||
Total changes in equity | (69,110,268) | (68,333,217) | (646,496) | (130,555) | 39,814,742 | (29,295,526) | 358,848 | (28,936,678) | ||
Equity at end of period at Dec. 31, 2017 | $ 270,737,574 | $ 185,049,228 | $ (237,077,572) | $ (3,094,671) | $ (1,915,587) | $ 427,137,058 | $ 335,523,254 | $ 791,310,056 | $ 21,923,293 | $ 813,233,349 |
Consolidated Statements of Dire
Consolidated Statements of Direct Cash Flows - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows provided by Operating Activities | |||
Receipts from the sale of goods and the rendering of services (including taxes) | $ 2,388,420,701 | $ 2,415,467,366 | $ 2,406,656,125 |
Payments for Operating Activities | |||
Payments to suppliers for goods and services (including taxes) | (1,495,009,304) | (1,624,748,620) | (1,569,343,254) |
Payments to and on behalf of employees | (221,146,637) | (210,545,781) | (213,532,202) |
Other payments for operating activities (value-added taxes on purchases, sales and others) | (333,155,023) | (280,846,689) | (275,697,786) |
Dividends received | 1,540,090 | 745,805 | 1,250,000 |
Interest payments | (53,103,434) | (49,931,807) | (57,963,479) |
Interest received | 8,240,023 | 8,610,102 | 7,463,013 |
Income tax payments | (40,654,077) | (25,721,727) | (26,322,106) |
Other cash movements (tax on bank debits Argentina and others) | (7,171,991) | (9,582,089) | (7,601,081) |
Net cash flows provided by (used in) Operating Activities | 247,960,348 | 223,446,560 | 264,909,230 |
Cash flows provided by (used in) Investing Activities | |||
Investment in associates | (15,570,161) | (17,586,575) | (915,069) |
Proceeds from sale of Property, plant and equipment | 99,421 | 70,431 | 1,969,878 |
Purchase of Property, plant and equipment | (168,857,680) | (128,217,485) | (112,399,528) |
Purchase of intangible | (11,923,449) | ||
Proceeds from other long term assets (term deposits over 90 days) | 81,258,426 | 109,824,298 | 106,609,849 |
Purchase of other long term assets (term deposits over 90 days) | (41,059,494) | (77,789,768) | (95,008,674) |
Payments on forward, term, option and financial exchange agreements. | 1,374,638 | (217,218) | (3,387,526) |
Other payments on acquisition of financial instruments | (14,153,111) | ||
Net cash flows provided by (used in) Investing Activities | (168,831,410) | (113,916,317) | (103,131,070) |
Cash Flows generated from (used in) Financing Activities | |||
Proceeds from short-term loans obtained | 71,801,741 | 22,188,721 | 89,423,068 |
Loan payments | (70,433,452) | (47,288,156) | (130,503,764) |
Financial lease liability payments | (4,745,884) | (5,533,160) | (3,160,000) |
Dividend payments by the reporting entity | (74,968,175) | (67,591,930) | (54,319,681) |
Net cash flows provided by (used in) generated by Financing Activities | (78,345,770) | (98,224,525) | (98,560,377) |
Net increase in cash and cash equivalents before exchange differences | 783,168 | 11,305,718 | 63,217,783 |
Effects of exchange differences on cash and cash equivalents | (5,804,932) | 797,223 | (13,571,278) |
Net decrease in cash and cash equivalents | (5,021,764) | 12,102,941 | 49,646,505 |
Cash and cash equivalents at beginning of period | 141,263,880 | 129,160,939 | 79,514,434 |
Cash and cash equivalents at end of period | $ 136,242,116 | $ 141,263,880 | $ 129,160,939 |
CORPORATE INFORMATION
CORPORATE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
CORPORATE INFORMATION | |
CORPORATE INFORMATION | NOTE 1 - CORPORATE INFORMATION Embotelladora Andina S.A. is registered under No. 00124 of the Securities Registry and is regulated by Chile’s Financial Market Commission (previously the Superintendence of Securities and Insurance pursuant to Law 18.046. The principal activities of Embotelladora Andina S.A. (hereafter “Andina,” and together with its subsidiaries, the “Company”) are to produce and sell Coca-Cola products and other Coca-Cola beverages. The Company has operations in Chile, Brazil, Argentina and Paraguay. In Chile, the geographic areas in which the Company has distribution franchises are regions II, III, IV, XI, XII, Metropolitan Region, Rancagua and San Antonio. In Brazil, the Company has distribution franchises in the states of Rio de Janeiro, Espírito Santo, Niteroi, Vitoria, Nova Iguaçu, part of Sao Paulo and part of Minas Gerais. In Argentina, the Company has distribution franchises in the provinces of Mendoza, Córdoba, San Luis, Entre Ríos, Santa Fe, Rosario, Santa Cruz, Neuquén, El Chubut, Tierra del Fuego, Río Negro, La Pampa and the western zone of the Province of Buenos Aires. In Paraguay, the franchised territory covers the whole country. The Company has distribution licenses from The Coca-Cola Company in all its territories: Chile, Brazil, Argentina and Paraguay. Licenses for the territories in Chile expire in 2018 and 2019. In Argentina in 2022; in Brazil in the renewal process and in Paraguay they expire in 2020. The Coca-Cola Company chooses to grant all these licenses, and they are expected to be renewed under similar conditions on the date of expiration. As of December 31, 2017, the Freire Group and its related companies hold 55.68% of the outstanding shares with voting rights, corresponding to the Series A shares. The head office of Embotelladora Andina S.A. is located on Miraflores 9153, municipality of Renca, Santiago, Chile. Its taxpayer identification number is 91.144.000-8. |
BASIS OF PREPARATION OF CONSOLI
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Periods covered These Consolidated financial statements encompass the following periods: Consolidated Statement of Financial Position: As of December 31, 2017, and December 31, 2016. Consolidated Income Statements by Function and Comprehensive Income: For the periods between January 1 and December 31, 2017, 2016 and 2015. Consolidated Statements of Direct Cash Flows: For the periods between January 1 and December 31, 2017, 2016 and 2015. Consolidated Statements of Changes in Equity : Balance and movements between January 1 and December 31, 2017, 2016 and 2015. 2.2 Basis of preparation The Company’s Consolidated Financial Statements were prepared in accordance with International Financial Reporting Standards (hereinafter “IFRS”) issued by the International Accounting Standards Board (hereinafter “IASB”). The consolidated financial statements are presented under the historical cost criteria, although modified by the revaluation of certain financial instruments and derivative instruments. The Company’s 2017 local statutory consolidated financial statements in spanish were approved by the Company’s Board of Directors on February 27, 2018, with subsequent events first being considered through that date. Those local statutory consolidated financial statements consisted of consolidated statement of financial position as of December 31, 2017 and 2016 along with consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows (and related disclosures), each for the two years then ended. Those consolidated financial statements were then subsequently approved by the Company’s shareholders during its April 19, 2018 meeting. Included in this 2017 consolidated financial statements are consolidated statement of financial position as of December 31, 2017 and 2016, along with consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows (and the related disclosures) for each of the three years ended December 31, 2017, 2016 and 2015. This three year presentation of operations, changes in equity and of cash flows is required by the rules of the United States Securities and Exchange Commission. The accompanying English language IFRS consolidated financial statements are consistent with the previously issued local statutory consolidated financial statements. This three year English language IFRS consolidated financial statements were approved for issuances by the Board of Directors during a session held on April 26, 2018, with subsequent events considered through this later date. These Consolidated Financial Statements have been prepared, based on accounting records kept by the Embotelladora Andina S.A. (“Parent Company”) and by other entities forming part thereof. 2.3 Basis of consolidation 2.3.1 Subsidiaries These consolidated financial statements incorporate the financial statements of the Company and the companies controlled by the Company (its subsidiaries). Control is obtained when the Company has power over the investee, when it has exposure or is entitled to variable returns from its involvement in the investee and when it has the ability to use its power to influence the amount of investor returns. They include assets and liabilities as of December 31, 2017 and 2016, and results of operations for the periods between January 1 and December 31, 2017, 2016 and 2015, and cash flows for the periods between January 1 and December 31, 2017, 2016 and 2015. Income or losses from subsidiaries acquired or sold are included in the consolidated financial statements from the effective date of acquisition through the effective date of disposal, as applicable. The acquisition method is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of the subsidiary is the fair value of assets transferred, equity securities issued, liabilities incurred or assumed on the date that control is obtained. Identifiable assets acquired, and identifiable liabilities and contingencies assumed in a business combination are accounted for initially at their fair values at the acquisition date. 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 the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the income statement. All acquisition related costs are expensed in the period incurred. Intercompany transactions, balances, income, expenses and unrealized gains and losses on transactions between Group companies are eliminated. Accounting policies of subsidiaries are changed to ensure consistency with the policies adopted by the Company, where necessary. The interest of non-controlling shareholders is presented in the consolidated statement of changes in equity and the consolidated statement of income by function under “Non-Controlling Interest” and “Earnings attributable to non-controlling interests”, respectively. The consolidated financial statements include all assets, liabilities, income, expenses, and cash flows after eliminating intercompany balances and transactions. The list of subsidiaries included in the consolidation is detailed as follows: Holding control (percentage) 12-31-2017 12-31-2016 Taxpayer ID Name of the Company Direct Indirect Total Direct Indirect Total 59.144.140-K Abisa Corp S.A. — — Foreign Aconcagua Investing Ltda. 96.842.970-1 Andina Bottling Investments S.A. 96.972.760-9 Andina Bottling Investments Dos S.A. Foreign Andina Empaques Argentina S.A. — — 96.836.750-1 Andina Inversiones Societarias S.A. 76.070.406-7 Embotelladora Andina Chile S.A. — — Foreign Embotelladora del Atlántico S.A. 96.705.990-0 Envases Central S.A. — — 96.971.280-6 Inversiones Los Andes Ltda. — — Foreign Paraguay Refrescos S.A. 76.276.604-3 Red de Transportes Comerciales Ltda. Foreign Rio de Janeiro Refrescos Ltda. — — 78.536.950-5 Servicios Multivending Ltda. 78.861.790-9 Transportes Andina Refrescos Ltda. 96.928.520-7 Transportes Polar S.A. — — 76.389.720-6 Vital Aguas S.A. — — 93.899.000-k Vital Jugos S.A. 2.3.2 Investments accounted for under the equity method Associates are all entities over which the Company exercises significant influence but does not have control. Investments in associates are accounted for using the equity method of accounting. The Company’s share in profit or loss in associates subsequent to the acquisition date is recognized in the income statement. Unrealized gains in transactions between the Company and its associates are eliminated to the extent of the Company´s interests in those associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment on the asset transferred. Accounting policies of the associates are changed, where necessary, to ensure conformity with the policies adopted by the Company. 2.4 Financial reporting by operating segment IFRS 8 requires that entities disclose information on the results of operating segments. In general, this is information that Management and the Board of Directors use internally to assess performance of segments and allocate resources to them. Therefore, the following operating segments have been determined based on geographic location: · Chilean operations · Brazilian operations · Argentinean operations · Paraguayan operations 2.5 Foreign currency translation 2.5.1 Functional currency and presentation currency Items included in the financial statements of each of the entities in the Company are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Chilean pesos, which is the parent company’s functional currency and the Company´s presentation currency. 2.5.2 Balances and transactions Foreign currency transactions are translated into the functional currency using the foreign exchange rates prevailing on the dates of the transactions. Losses and gains in foreign currency resulting from the liquidation of these transactions and the translation at the closing exchange rate of monetary assets and liabilities denominated in foreign currency are recognized in the income statements under foreign exchange rate differences, except when they correspond to cash flow hedges; in which case they are presented in the statement of comprehensive income. The exchange rates and value of the UF at the close of each of the periods presented were as follows: Exchange rate to the Chilean peso Date US$ R$ Brazilian A$ Argentine UF Unidad de Paraguayan € 12.31.2017 12.31.2016 12.31.2015 2.5.3 Translation of foreign subsidiaries The financial position and results of all entities in the Company (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities for the statement of financial position are translated at the closing exchange rate as of the reporting date; (ii) Revenue and expenses of the income statement are translated at average exchange rates for the period; and (iii) All resulting translation differences are recognized in other comprehensive income. The companies that have a functional currency different from the presentation currency of the parent company are: Company Functional currency Rio de Janeiro Refrescos Ltda. R$Brazilian Real Embotelladora del Atlántico S.A. A$Argentinean Peso Andina Empaques Argentina S.A. A$Argentinean Peso Paraguay Refrescos S.A. G$Paraguayan Guaraní In consolidation, translation differences arising from the translation of net investments in foreign entities are recognized in other comprehensive income. Exchange differences from accounts receivable, which are considered part of an equity investment, are recognized as comprehensive income net of deferred taxes, if applicable. On disposal of the investment, such translation differences are recognized in the income statement as part of the gain or loss on the disposal of the investment. 2.6 Property, plant, and equipment Assets included in Property, plant and equipment are recognized at their historical cost or fair value on the IFRS transition date, less depreciation and cumulative impairment losses. Historical cost of Property, plant and equipment includes expenditures that are directly attributable to the acquisition of the items less government subsidies resulting from the difference between the valuation of liabilities at fair value and the government´s preferential credit rates. Historical cost also includes revaluations and price-level restatements of opening balances (attributable cost) at January 1, 2009, in accordance with the exemptions in IFRS 1. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefits associated with the items of Property, plant and equipment will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. Repairs and maintenance are charged to the income statement in the reporting period in which they are incurred. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives. The estimated useful lives by asset category are: Assets Range in years Buildings 30-50 Plant and equipment 10-20 Warehouse installations and accessories 10-30 Furniture and supplies 4-5 Motor vehicles 5-7 Other Property, plant and equipment 3-8 Bottles and containers 2-8 The residual value and useful lives of assets are reviewed and adjusted at the end of each financial statement-reporting period, if appropriate. When the value of an asset is greater than its estimated recoverable amount, the value is written down immediately to its recoverable amount. Gains and losses on disposals of property, plant, and equipment are calculated by comparing the proceeds to the carrying amount and are charged to other expenses by function. If there are items available for sale and comply with the conditions of IFRS 5 “Non-current assets held for sale and discontinued operations” are separated from Property, plant and equipment and are presented within current assets at the lower value between the book value and its fair value less selling costs. 2.7 Intangible assets and Goodwill 2.7.1 Goodwill Goodwill represents the excess of the consideration transferred over the Company’s interest in the net fair value of the net identifiable assets of the subsidiary and the fair value of the non-controlling interest in the subsidiary on the acquisition date. Since goodwill is an intangible asset with indefinite useful life, it is recognized separately and tested annually for impairment. Goodwill is carried at cost less accumulated impairment losses. Gains and losses on the sale of an entity include the carrying amount of goodwill related to that entity. Goodwill is assigned to each cash generating unit (CGU) or group of cash-generating units, from where it is expected to benefit from the synergies arising from the business combination. Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internal management purposes. 2.7.2 Distribution rights Distribution rights are contractual rights to produce and/or distribute products under the Coca-Cola brand and other brands in certain territories in Argentina, Brazil, Chile and Paraguay that were acquired during Business Combination. Distribution rights are born from the process of valuation at fair value of the assets and liabilities of companies acquired in business combinations. Distribution rights have an indefinite useful life and are not amortized, as the Company believes that the agreements will be renewed indefinitely by the Coca-Cola Company with similar terms and conditions. They are subject to impairment tests on an annual basis. 2.7.3 Software Carrying amounts correspond to internal and external software development costs, which are capitalized once the recognition criteria in IAS 38, Intangible Assets , have been met. Software is amortized in administrative expenses in the consolidated income statement over a period of four years. 2.8 Impairments of non-financial assets Assets that have an indefinite useful life, such as intangibles related to distribution rights and goodwill, are not amortized and are tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization are tested for impairment whenever there is an event or change in circumstances indicating that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying value of the asset exceeds its recoverable amount. The recoverable amount is the greater of an asset’s fair value less costs to sell or its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). 2.9 Financial assets The Company classifies its financial assets into the following categories: financial assets at fair value through profit or loss, loans and receivables, financial assets held to maturity, and available for sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. At the close of each period, the Company assesses if there is evidence of impairment for any asset or group of financial assets. As of December 31, 2017 and 2016, there are no signs impairment in any of the Company’s financial assets. 2.9.1 Financial assets at fair value through profit or loss Fair value financial assets with changes in results are financial assets available for sale in the short term. A financial asset is classified under this category if it is acquired mainly for selling it in the short term. Assets in this category are classified in current assets. Derivatives are also categorized as held for trading unless they are designated as hedges. Gains or losses from changes in fair value of financial assets at fair value through profit and loss are recognized in the income statement under financial income or expense during the fiscal year in which they are generated. 2.9.2 Loans and receivables Loans and accounts receivable are financial assets with fixed and determinable payments that are not quoted in an active market period. Loans and receivables are not quoted in an active market. They are included in current assets, unless they are due more than 12 months from the reporting date, in which case they are classified as non-current assets. Loans and receivables are included in trade and other receivables in the consolidated statement of financial position and they are recorded at their amortized cost less a provision for impairment. An impairment is recorded on trade accounts receivable when there is objective evidence that the Company and its subsidiaries may not be able to collect the full amount according to the original terms of the receivable, based either on individual or on global aging analyses. The loss is recognized in consolidated administrative expenses. 2.9.3 Financial assets held to maturity Other financial assets correspond to bank deposits that the Company’s management has the positive intention and ability to hold until their maturity. They are recorded in current assets because they mature in less than 12 months from the reporting date and are carried at cost, which approximates their fair value considering their short-term nature. Accrued interest is recognized in the consolidated income statement under financial income. 2.10 Derivatives financial instruments and hedging activities The Company and its subsidiaries use derivative financial instruments to mitigate risks relating to changes in foreign currency and exchange rates associated with raw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. 2.10.1 Derivative financial instruments designated as cash flow hedges At the inception of the transaction, the group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement within “other gains (losses)” Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currency denominated financial liabilities are translated into their functional currencies). The gain or loss relating to the effective portion of cross currency swaps hedging the effects of changes in foreign exchange rates are recognized in the consolidated income statement within “foreign exchange differences”. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement. 2.10.2 Derivative financial instruments not designated for hedging The fair value of derivative financial instruments that do not qualify for hedge accounting pursuant to IFRS are immediately recognized in the consolidated income statement under “Other income and losses”. The fair value of these derivatives is recorded under “other current financial assets” or “other current financial liabilities” in the statement of financial position.” The Company also evaluates the existence of derivatives implicitly in financial instrument contracts to determine whether their characteristics and risks are closely related to the master agreement, as stipulated by IAS 39. As of December 31, 2017, 2016 and 2015, the Company had no implicit derivatives. Fair value hierarchy The Company records assets and liabilities as of December 31, 2017 and December 31, 2016, based on its derivative foreign exchange contracts, which are classified within other financial assets (current assets and non-current) and other current financial liabilities (current and non-current financial liabilities), respectively. These contracts are carried at fair value in the statement of financial position. The Company uses the following hierarchy for determining and disclosing financial instruments at fair value by valuation method: Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (that is, as prices) or indirectly (that is, derived from prices). Level 3: Inputs for the assets or liabilities that are not based on observable market data information. During the reporting periods there were no transfers of items between fair value measurement categories. All of which were valued during the period using Level 2. 2.11 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods and work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating capacity) to bring the goods to marketable condition, but it excludes interest expense. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts and supplies are stated at the lower of cost or net realizable value. Estimates are also made for obsolescence of raw materials and finished products based on turnover and age of the related goods. 2.12 Trade receivables Trade accounts receivables and other accounts receivable are recognized initially at fair value and subsequently measured at amortized cost less provision for impairment, given their short-term nature. A provision for impairment is made when there is objective evidence that the Company may not be able to collect the full amount according to the original terms of the receivable, based either on individual or on global aging analyses. The carrying amount of the asset is reduced by the provision amount and the loss is recognized in administrative expenses in the consolidated income statement by function. 2.13 Cash and cash equivalents Cash and cash equivalents includes cash on hand, bank balances, time deposits and other short-term highly liquid and low risk of change in value investments and mutual funds with original short-term maturities of less than 90 day. 2.14 Other financial liabilities Resources obtained from financial institutions as well as the issuance of debt securities are initially recognized at fair value, net of costs incurred during the transaction. Then, liabilities are valued by accruing interests in order to equal the current value with the future value of liabilities payable, using the effective interest rate method. General and specific borrowing costs directly attributable to the acquisition, construction or production of qualified assets, considered as those that require a substantial period of time in order to get ready for their forecasted use or sale, are added to the cost of those assets until the period in which the assets are substantially ready to be used or sold. 2.15 Government subsidies Government subsidies are recognized at fair value when it is certain that the subsidy will be received and that the Company will meet all the established conditions. Subsidies for operating costs are deferred and recognized on the income statement in the period that the operating costs are incurred. Subsidies for purchases of property, plant and equipment are deducted from the costs of the related asset in property, plant and equipment and depreciation is recognized on the income statement, on a straight-line basis during the estimated useful life of the related asset. 2.16 Income tax The Company and its subsidiaries in Chile account for income tax according to the net taxable income calculated based on the rules in the Income Tax Law. Subsidiaries in other countries account for income taxes according to the tax regulations of the country in which they operate. Deferred income taxes are calculated using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements, using the tax rates that have been enacted or substantively enacted on the balance sheet date and are expected to apply when the deferred income tax asset is realized, 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 profits will be available against which the temporary differences can be utilized. The Company does not recognize deferred income taxes for temporary differences from investments in subsidiaries in which the Company can control the timing of the reversal of the temporary differences and it is probable that they will not be reversed in the near future. 2.17 Employee benefits The Company has a provision to cover indemnities for years of service that will be paid to employees in accordance with individual and collective agreements subscribed with employees, which is recorded at actuarial value in accordance with IAS 19. Results from updated of actuarial variables are recorded within other comprehensive income in accordance with IAS 19. Additionally, the Company has retention plans for some officers, which have a provision pursuant to the guidelines of each plan. These plans grant the right to certain officers to receive a cash payment on a certain date once they have fulfilled with the required years of service. The Company and its subsidiaries have recorded a provision to account for the cost of vacations and other employee benefits on an accrual basis. These liabilities are recorded under current non-financial liabilities. 2.18 Provisions Provisions for litigation and other contingencies are recognized when the Company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. 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. 2.19 Leases a) Operating leases Operating lease payments are recognized as an expense on a straight-line basis over the term of the lease. b) Finance leases Leases of Property, plant and equipment where the Company has substantially all the risks and rewards of ownership are classified as finance leases that are capitalized at the inception of the lease of the item of Property, plant and equipment at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges. The interest element is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. 2.20 Deposits for returnable containers This liability comprises cash collateral, or deposit, received from customers for bottles and other returnable containers made available to them. This liability pertains to the deposit amount that is reimbursed when the customer or distributor returns the bottles and containers in good condition, together with the original invoice. The liability is estimated based on the number of bottles given to clients and distributors, the estimated number of bottles in circulation, and a historical average weighted value per bottle or containers. Deposits for returnable containers are presented as a current liability in other financial liabilities because the Company does not have legal rights to defer settlement for a period in excess of one year. However, the Company does not anticipate any material cash settlements for such amounts during the upcoming year. 2.21 Revenue recognition Revenues from regular activities include fair value of the consideration received or to be received for goods sold during the regular course of the Company’s activities. This revenue is presented net of VAT, reimbursements, deductions and discounts. The Company recognizes revenue when the amount of revenue can be reliably measured, and it is probable that the future economic benefits will flow to the Company. Revenues are recognized once the products are physically delivered to customers. 2.22 Contributions of The Coca-Cola Company The Company receives certain discretionary contributions from The Coca-Cola Company (TCCC) mainly related to the financing of advertising and promotional programs for its products in the territories where the Company has distribution licenses. The contribution received from TCCC are recognized in the income statement after the conditions agreed with TCCC in order to become a creditor to such incentive have been fulfilled, they are recorded as a reduction in the marketing expenses included in the Administration Expenses account. Given its discretionary nature, the portion of contributions received in one period does not imply it will be repeated in the following period. 2.23 Dividend payments Dividend distribution to Company shareholders is recorded as a liability in the Company’s consolidated financial statements, considering the 30% minimum dividend of the period’s earnings established by Chilean Corporate Law. 2.24 Critical accounting estimates and judgments The Company makes estimates and judgments concerning the future. Actual results may differ from previously estimated amounts. The estimates and judgments that might have a material impact on future financial statements. 2.24.1 Impairment of goodwill and intangible assets with indefinite useful lives The Company test annually whether goodwill and intangible assets with indefinite useful life (such as distribution rights) have suffered any impairment. The recoverable amounts of cash generating units are generating units are determined based on value in use calculations. The key variables used in the calculations include sales volumes and prices, discount rates, marketing expenses and other economic factors including inflation. The estimation of these variables requires a use of estimates and judgments as they are subject to inherent uncertainties; however, the assumptions are consistent with the Company’s internal planning end past results. Therefore, management evaluates, and updates estimates according to the conditions affecting the variables. If these assets are considered to have been impaired, they will be written off at their estimated fair value or future recovery value according to the discounted cash flows analysis. Discounted cash flows in the Company’s cash generating units in Chile, Brazil, Argentina and Paraguay generated a higher value than the carrying values of the respective net assets, including goodwill of the Brazilian, Argentinian and Paraguayan subsidiaries. 2.24.2 Fair Value of Assets and Liabilities IFRS requires in |
REPORTING BY SEGMENT
REPORTING BY SEGMENT | 12 Months Ended |
Dec. 31, 2017 | |
REPORTING BY SEGMENT | |
REPORTING BY SEGMENT | NOTE 3 — REPORTING BY SEGMENT The Company provides information by segments according to IFRS 8 “Operating Segments,” which establishes standards for reporting by operating segment and related disclosures for products and services, and geographic areas. The Company’s Board of Directors and Management measures and assesses performance of operating segments based on the operating income of each of the countries where there are Coca-Cola franchises. The operating segments are determined based on the presentation of internal reports to the Company´s chief strategic decision-maker. The chief operating decision-maker has been identified as the Company´s Board of Directors who makes the Company’s strategic decisions. The following operating segments have been determined for strategic decision making based on geographic location: · Operation in Chile · Operation in Brazil · Operation in Argentina · Operation in Paraguay The four operating segments conduct their businesses through the production and sale of soft drinks and other beverages, as well as packaging materials. Expenses and income related to corporate management, have been assigned to the Chilean soft drinks segment, since Chile is the country that manages and pays corporate expenses, which would also be substantially incurred, independent to the existence of foreign subsidiaries. Total revenues by segment include sales to unrelated customers and inter-segments, as indicated in the consolidated statement of income. A summary of the Company’s operating segments in accordance to IFRS is as follows: For the period ended December 31, 2017 Chile Argentina Brazil Paraguay Intercompany Consolidated ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Softdrinks Other beverages — Packaging — — — Net sales ) Cost of sales ) ) ) ) ) Distribution expenses ) ) ) ) — ) Administrative expenses ) ) ) ) — ) Finance income ) Finance expense ) ) ) ) ) Interest expense, net. ) ) ) — ) Share of the entity in income of associates ) ) — — ) Income tax expense ) ) ) ) — ) Other income (loss) ) ) ) ) — ) Net income of the segment reported — Depreciation and amortization — Current assets — Non-current assets — Segment assets, total — Carrying amount in associates and joint ventures accounted for using the equity method, total — — — Capital expenditures and other — Current liabilities — Non-current liabilities — Segment liabilities, total — Cash flows provided by in Operating Activities — Cash flows (used in) provided by Investing Activities ) ) ) ) — ) Cash flows (used in) provided by Financing Activities ) ) — — ) For the period ended December 31, 2016 Chile Argentina Brazil Paraguay Intercompany Consolidated ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Softdrinks Other beverages — Packaging — — — Net sales ) Cost of sales ) ) ) ) ) Distribution expenses ) ) ) ) ) Administrative expenses ) ) ) ) ) Finance income Finance expense ) ) ) ) ) Interest expense, net* ) ) — ) Share of the entity in income of associates — ) — — ) Income tax expense ) ) ) ) — ) Other income (loss) ) ) ) — ) Net income of the segment reported — Depreciation and amortization — Current assets — Non-current assets — Segment assets, total — Carrying amount in associates and joint ventures accounted for using the equity method, total — — — Capital expenditures and other — Current liabilities — Non-current liabilities ) — Segment liabilities, total — Cash flows provided by Operating Activities — Cash flows (used in) provided by Investing Activities ) ) ) ) — ) Cash flows (used in) provided by Financing Activities ) ) ) ) — ) (*) Financial expenses associated with external financing for the purchase of companies, including capital contributions are presented in this item. For the period ended December 31, 2015 Chile Argentina Brazil Paraguay Intercompany Consolidated ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Softdrinks ) Other beverages — Packaging — — — ) Net sales ) Cost of sales ) ) ) ) ) Distribution expenses ) ) ) ) — ) Administrative expenses ) ) ) ) — ) Finance income — Finance expense ) ) ) ) — ) Interest expense, net* ) ) ) — ) Share of the entity in income of associates accounted for using the equity method, total — ) — — ) Income tax expense ) ) ) ) — ) Other income (loss) ) ) ) ) — ) Net income of the segment reported — Depreciation and amortization — Current assets — Non-current assets — Segment assets, total — Carrying amount in associates and joint ventures accounted for using the equity method, total — — — Capital expenditures and other — Current liabilities — Non-current liabilities — Segment liabilities, total — Cash flows provided by in Operating Activities — Cash flows (used in) provided by Investing Activities ) ) ) ) — ) Cash flows (used in) provided by Financing Activities ) ) ) ) — ) |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENT. | |
CASH AND CASH EQUIVALENTS | NOTE 4 — CASH AND CASH EQUIVALENTS Cash and cash equivalents are detailed as follows: Description 12.31.2017 12.31.2016 ThCh$ ThCh$ By item Cash Bank balances Time deposits Mutual funds Total cash and cash equivalents ThCh$ ThCh$ By currency Dollar Euro Argentine Peso Chilean Peso Paraguayan Guaraní Brazilian Real Total cash and cash equivalents 4.1 Time deposits Time deposits defined as cash and cash equivalents are detailed as follows: Placement Institution Currency Principal Annual 12.31.2017 ThCh$ % ThCh$ 12/29/2017 Banco Santander Chilean pesos % 12/29/2017 Banco Santander Chilean pesos % 12/29/2017 Banco Santander Chilean pesos % T otal Placement Institution Currency Principal Annual 12.31.2016 ThCh$ % ThCh$ 12/7/2016 Banco Galicia Argentinean pesos % Total 4.2 Money Market Money market mutual fund´s shares are valued using the share values at the close of each reporting period. Below is a description for the end of each period: Institution 12.31.2017 12.31.2016 ThCh$ ThCh$ Mutual fund Itaú - Chile — Mutual fund Banco Estado - Chile Fima fund Saving Plus C - Argentina — Mutual fund Itaú - Brazil Mutual fund Santander - Brazil Mutual fund Bradesco - Brazil Mutual fund Corporativo Banchile - Chile Mutual fund Banco Security - Chile Mutual fund Banco Bice - Chile — Fima fund Saving Pesos C - Argentina — Mutual fund Banco Santander - Chile — Wester Asset Institutional Cash Reserves - USA Mutual fund Larrain Vial - Chile — Mutual fund BTG - Chile Fima fund Primium B - Argentina Mutual fund Scotiabank - Chile Citi Institutional Liquid Reserves Limited. (C.GAM) — Total mutual funds |
OTHER CURRENT AND NON-CURRENT F
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | |
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | NOTE 5 — OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS Below are the financial instruments held by the Company other than cash and cash equivalents. They consist of time deposits with short-term maturities (more than 90 days), restricted mutual funds and derivative contracts. Financial instruments are detailed as follows: a) Current portion 2017 a.1 Time deposits Placement Maturity Institution Currency Principal Annual rat 12.31.2017 ThCh$ % ThCh$ 08-09-2017 02-12-2018 Banco Santander - Chile Unidad de fomento % 09-25-2017 02-26-2018 BCI Unidad de fomento % 09-25-2017 05-28-2018 Banco Santander - Chile Unidad de fomento % 06-13-2017 03-15-2018 Vatorantim Brazilian reais % Subtotal a.2 Rights in Forward Contracts Rights in Forward Contracts — Forward (see details in Note 20) Subtotal Total other Financial Assets, current b) Non-current 2017 b.1 Rights in forward contracts 12.31.2017 ThCh$ Rights in forward contracts (see note 20) Sub total F - b.2 Rights in other companies 12.31.2017 ThCh$ Rights in Ades (*) manufacturing companies Increase (decrease) in foreign currency exchange ) Subtotal Total Other Financial Assets, non-current (*) On December 27, 2016, Coca-Cola Andina confirmed to The Coca-Cola Company its decision to participate in the “AdeS” business and commercialize said products in all its franchise territories, As a result, the operation materialized on March 28, 2017, and pursuant to the agreements, implied a disbursement of US$39 million, ThCh$14,153,111 were allocated to the purchase of rights in the manufacturing company “AdeS” and ThCh$11,923,449 were allocated to distribution rights of the “AdeS” products. The rights in the acquired companies are distributed as follows: · Purchase of 13.0% interest in the Argentine company Alimentos de Soya S.A. for ThCh$9,661,283. · Purchase of 8.5% interest in the Brazilian company UBI 3 Participações Ltda. for ThCh$4,491,828. a) Current portion 2016 a. 1 Time deposits Placement Maturity Institution Currency Principal Annual rate 12.31.2016 ThCh$ % ThCh$ 01-15-2016 01-04-2017 Banco HSBC - Chile Unidad de fomento % 02-25-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 04-22-2016 02-13-2017 Banco HSBC - Chile Unidad de fomento % 06-24-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 08-31-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 08-31-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 10-19-2016 02-24-2017 Banco HSBC - Chile Unidad de fomento % 11-09-2016 02-13-2017 Banco HSBC - Chile Unidad de fomento % 11-24-2016 05-08-2017 Banco HSBC - Chile Unidad de fomento % 11-24-2016 05-08-2017 Banco HSBC - Chile Unidad de fomento % 03-15-2016 03-15-2017 Banco Votoratim - Brazil Brazilian reais % Subtotal a.2 Rights in Forward Contracts Rights in Forward Contracts (see details in Note 20) a.3 Funds in Guaranty Funds in guaranty for Rofex derivative operations — Argentina (1) Total other Financial Assets, current (1) Corresponds to funds that must be restricted in accordance with the partial results of derivative operations in Argentina. b) Non-current portion 2016 12.31.2016 ThCh$ Derivative futures contracts Derivative futures contracts (see note 20) Total other non-current financial assets |
CURRENT AND NON-CURRENT NON-FIN
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | |
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | NOTE 6 — CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS Note 6.1 Other current, non-financial assets 12.31.2017 12.31.2016 ThCh$ ThCh$ Description Prepaid expenses Tax credit remainder — Guarantee deposit (Argentine) Disbursements of property, plant & equipment on behalf of Coca-Cola del Valle New Ventures S.A. (1) — Other current assets Total Note 6.2 Other non-current, non-financial assets 12.31.2017 12.31.2016 ThCh$ ThCh$ Description Judicial deposits (see note 21.2) Prepaid expenses Fiscal credits Advance payment to suppliers of property, plant & equipment (2) Others Total (1) Corresponds to disbursements of property, plant & equipment performed by subsidiaries of the Andina Group in property, plant & equipment that subsequently will be transferred to the equity investee Coca-Cola del Valle New Ventures S.A. (2) Corresponds to advance payments made for the construction of the new “Duque de Caxias” bottling plant in Brazil. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER RECEIVABLES | |
TRADE AND OTHER RECEIVABLES | NOTE 7 — TRADE AND OTHER RECEIVABLES The composition of trade and other receivables is detailed as follows: 12.31.2017 12.31.2016 Trade and other receivables Assets before Allowance Commercial Assets Allowance Commercial ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Current commercial debtors Trade debtors ) ) Other current debtors ) ) Current commercial debtors ) ) Prepayments suppliers — — Other current accounts receivable ) ) Commercial debtors and other current accounts receivable ) ) Non-current accounts receivable Trade debtors — — Other non-current debtors — — Other non-current accounts receivable — — — — Non-current accounts receivable — — Trade and other receivable ) ) Stratification of portfolio current and non-current debtors from credit operations 12.31.2017 12.31.2016 ThCh$ ThCh$ Up to date non-securitized portfolio until 30 days 31 and 60 days 61 and 90 days 91 and 120 days 121 and 150 days 151 and 180 days 181 and 210 days 211 and 250 days More than 250 days Total The Company has an approximate number of 276,000 clients, which may have balances in the different sections of the stratification. The number of clients is distributed geographically with 65,400 in Chile, 89,200 in Brazil, 64,400 in Argentina and 57,000 in Paraguay. 12.31.2017 12.31.2016 ThCh$ ThCh$ Current commercial debtors Non-current commercial debtors Total The movement in the allowance for doubtful accounts is presented below: 12.31.2017 12.31.2016 ThCh$ ThCh$ Opening balance Bad debt expense Provision application ) ) Change due to foreign exchange differences ) ) Movement ) Ending balance |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES | |
INVENTORIES | NOTE 8 — INVENTORIES The composition of inventories is detailed as follows: Details 12.31.2017 12.31.2016 ThCh$ ThCh$ Raw materials (1) Finished goods Spare parts and supplies Work in progress Other inventories Obsolescence provision (2) ) ) Total The cost of inventory recognized as cost of sales as of December 31, 2017 and 2016, is ThCh$1,069,024,964 and ThCh$1,033,910,027, respectively (1) Approximately 80% is composed of concentrate and sweeteners used in the preparation of beverages, as well as caps and PET supplies used in the packaging of the product. (2) The obsolescence provision is related mainly with the obsolescence of spare parts classified as inventories and to a lesser extent to finished products and raw materials. The general standard is to provision all those multi-functional spare parts without utility in rotation in the last four years prior to the technical analysis technical to adjust the provision. In the case of raw materials and finished products, the obsolescence provision is determined according to maturity. |
CURRENT AND DEFERRED INCOME TAX
CURRENT AND DEFERRED INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND DEFERRED INCOME TAXES | |
CURRENT AND DEFERRED INCOME TAXES | NOTE 9 — CURRENT AND DEFERRED INCOME TAXES 9.1 Tax Reform On September 29, 2014, the Official Daily Newspaper published Law N°20,780 that amends the Chilean tax regime, with the main following changes: · It establishes a new system of semi-integrated taxation, which can be used as an alternative to the integrated regime of attributed income. Taxpayers may opt freely to any of the two to pay their taxes. In the case of Embotelladora Andina S.A. by a general rule established by law the semi-integrated taxation system applies, which was ratified by the Shareholders’ Meeting. · The semi-integrated system establishes the gradual increase in the first category tax rate for the business years 2014, 2015, 2016, 2017 and 2018 onwards, increasing to 21%, 22.5%, 24%, 25.5% and 27% respectively. 9.2 Current tax assets Current tax assets correspond to the following items: Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Monthly provisional payments — Tax credits (1) — Total — (1) Tax credits correspond to income tax credits on training expenses, purchase of Property, plant and equipment, and donations, and additionally income tax recoveries requested by Brazil. 9.3 Current tax liabilities Current tax payable are detailed as follows: Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Income tax expense Total 9.4 Income tax expense The current and deferred income tax expenses are detailed as follows: Item 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Current income tax expense Current tax adjustment previous period ) Withholding tax expense foreign subsidiaries Other current tax expense (income) ) Current income tax expense Income (expense) for the creation and reversal of current tax difference Expense (income) for deferred taxes Total income tax expense 9.5 Deferred income taxes The net cumulative balances of temporary differences that give rise to deferred tax assets and liabilities are detailed as follows: 12.31.2017 12.31.2016 Temporary differences Assets Liabilities Assets Liabilities ThCh$ ThCh$ ThCh$ ThCh$ Property, plant and equipment Obsolescence provision — Employee benefits — — Post-employment benefits Tax loss carried-forwards (1) — — Tax Goodwill Brazil — — Contingency provision — — Foreign exchange differences (2) — — Allowance for doubtful accounts — — Coca-Cola incentives (Argentina) — — Assets and liabilities for placement of bonds — — Lease liabilities — — Inventories — Distribution rights — — Others Subtotal Total liabilities net — Total net movement fiscal year — — (1) Tax losses mainly associated with the subsidiary Embotelladora Andina Chile S.A. In Chile tax losses have no expiration date (2) Corresponds to differed taxes for exchange rate differences generated on the translation of debt expressed in foreign currency in the subsidiary Rio de Janeiro Refrescos Ltda. and which for tax purposes are recognized in Brazil when incurred. 9.6 Deferred tax liability movement The movement in deferred income tax accounts is as follows: Item 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Opening Balance Increase (decrease) in deferred tax ) ) Increase (decrease) due to foreign currency translation ) ) Movements ) ) Ending balance 9.7 Distribution of domestic and foreign tax expense The composition of domestic and foreign tax expense is detailed as follows: Income tax 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Current income taxes Foreign ) ) ) Domestic ) ) ) Current income tax expense ) ) ) Deferred income taxes Foreign ) ) Domestic ) ) ) Deferred income tax expense ) ) ) Income tax expense ) ) ) 9.8 Reconciliation of effective rate Below is the reconciliation between the effective tax rate and the statutory rate: Reconciliation of effective rate 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Net income before taxes Tax expense at legal rate (25.5%) ) — — Tax expense at legal rate (24.0%) — ) ) Effect of a different tax rate in other jurisdictions ) ) ) Permanent differences: Non-taxable revenues Non-deductible expenses ) ) ) Effect of tax on excess tax provision previous periods Effect of tax monetary restatement Chilean companies ) ) ) Foreign subsidiaries tax withholding expense and other legal tax debits and credits ) ) ) Adjustments to tax expense ) ) ) Tax expense at effective rate ) ) ) Effective rate % % % Below are the income tax rates applicable in each jurisdiction where the Company operates: Rate Country 2017 2016 2015 Chile % % % Brazil % % % Argentina % % % Paraguay % % % |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 10 — PROPERTY, PLANT AND EQUIPMENT 10.1 Balances Property, plant and equipment are detailed below at the end of each period: Property, plant and equipment, gross Cumulative depreciation and Property, plant and equipment, net Item 12.31.2017 12.31.2016 12.31.2017 12.31.2016 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Construction in progress — — Land — — Buildings ) ) Plant and equipment ) ) Information technology ) ) Fixed facilities and accessories ) ) Vehicles ) ) Leasehold improvements ) ) Other Property, plant and equipment (1) ) ) Total ) ) (1) Other Property, plant and equipment is composed of bottles, market assets, furniture and other minor assets. The net balance of each of these categories is detailed as follows: Other Property, plant and equipment 12.31.2017 12.31.2016 ThCh$ ThCh$ Bottles Marketing and promotional assets Other Property, plant and equipment Total The Company has insurance to protect its Property, plant and equipment and its inventory from potential losses. The geographic distribution of those assets is detailed as follows: Chile : Santiago, Puente Alto, Maipú, Renca, Rancagua y San Antonio, Antofagasta, Coquimbo and Punta Arenas. Argentina : Buenos Aires, Mendoza, Córdoba y Rosario, Bahía Blanca, Chacabuco, La Pampa, Neuquén, Comodoro Rivadavia, Trelew, and Tierra del Fuego Brazil : Río de Janeiro, Niteroi, Campos, Cabo Frío, Nova Iguazú, Espirito Santo, Vitoria, part of São Paulo and Minas Gerais. Paraguay : Asunción, Coronel Oviedo, Ciudad del Este and Encarnación. 10.2 Movements Movements in Property, plant and equipment are detailed as follows: Construction Land Buildings, net Plant and IT Fixed Vehicles, net Leasehold Other, Property, plant ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance at January 1, 2017 Additions ) Disposals — — ) ) ) — ) — ) ) Transfers between items of Property, plant and equipment ) — — — Depreciation expense — — ) ) ) ) ) ) ) ) Increase (decrease) due to foreign currency translation differences ) ) ) ) ) ) ) ) Other increase (decrease) (1) — ) ) ) — ) ) ) ) Total movements ) ) ) ) ) ) ) Ending balance at December 31, 2017 (1) Mainly correspond to property, plant & equipment write-offs. Construction Land Buildings, net Plant and IT Equipment, Fixed facilities Vehicles, net Leasehold Other, Property, plant and ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance at January 1, 2016 Additions — Disposals — — ) ) — — ) — ) ) Transfers between items of Property, plant and equipment ) — — Depreciation expense — — ) ) ) ) ) ) ) ) Increase (decrease) due to foreign currency translation differences ) ) ) ) ) Other increase (decrease) (1) — — ) ) ) ) ) — ) ) Total movements ) ) ) ) Ending balance at December 31, 2016 (1) Mainly correspond to property, plant & equipment write-offs. Construction in Land Buildings, net Plant and IT Equipment, net Fixed Vehicles, net Leasehold Other, Property, plant ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance at January 1, 2015 Additions — — Disposals — — ) ) ) — ) — ) ) Transfers between items of property, plant and equipment ) — — Depreciation expense — — ) ) ) ) ) ) ) ) Increase (decrease) due to foreign currency translation differences ) ) ) ) ) ) ) ) ) ) Other increase (decrease) (1) — — ) ) ) — ) — ) ) Total movements ) ) ) ) ) ) ) Ending balance at December 31, 2015 |
RELATED PARTY DISCLOSURES
RELATED PARTY DISCLOSURES | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY DISCLOSURES | |
RELATED PARTY DISCLOSURES | NOTE 11 — RELATED PARTY DISCLOSURES Balances and main transactions with related parties are detailed as follows: 11.1 Accounts receivable: 11.1.1 Current: Taxpayer ID Company Relationship Country Currency 12.31.2017 12.31.2016 ThCh$ ThCh$ 96.891.720-K Embonor S.A. Related to Shareholder Chile Chilean pesos 96.517.210-2 Embotelladora Iquique S.A. Related to Shareholder Chile Chilean pesos 76.572.588-7 Coca Cola del Valle New Ventures S.A. Associate Chile Chilean pesos 96.919.980-7 Cervecería Austral S.A. Related to director Chile Dollars 77.755.610-k Comercial Patagona Ltda. Related to director Chile Chilean pesos — Foreign Servicios y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Argentine pesos — Total 11.1.2 Non-current: Taxpayer ID Company Relationship Country Currency 12.31.2017 12.31.2016 ThCh$ ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Chilean pesos Total 11.2 Accounts payable: 11.2.1 Current: Taxpayer ID Company Relationship Country of Currency 12.31.2017 12.31.2016 ThCh$ ThCh$ Foreign Recofarma do Industrias Amazonas Ltda, Related to Shareholder Brazil Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Argentine pesos — 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Chilean pesos Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil Brazilian real 86.881.400-4 Envases CMF S.A. Associate Chile Chilean pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Chilean pesos Foreign Alimentos de Soja S.A.U. Related to Shareholder Argentina Argentine pesos — Total 11.3 Transactions: Taxpayer ID Company Relationship Country of Description of transaction Currency Cumulative ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrates Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of raw materials and other Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of raw materials Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of caps Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Sale services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of packaging Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Sale of packaging and raw materials Chilean pesos 96.891.720-K Embonor S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Purchase of raw materials and materials Chilean pesos 94.627.000-8 Parque Arauco S.A. Related to director Chile Rent of spaces Chilean pesos 99.279.000-8 Euroamerica Seguros de Vida S.A. Related to director Chile Purchase of insurance policies Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Refund and other purchases Chilean pesos Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Advertising participation payment Argentine pesos Foreign KAIK Participações Associate Brazil Refund and other purchases Brazilian real Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil Purchase of products Brazilian real Foreign Coca-Cola Peru Related to Shareholder Peru Purchase of concentrate and marketing recovery U.S. dollar Foreign Sorocaba Refrescos S.A. Associate Brazil Purchase of products Brazilian real 89.862.200-2 Latam Airlines Group S.A. Related to director Chile Sale of products Chilean pesos 76.572.588-7 Coca Cola Del Valle New Ventures SA Common Shareholder Chile Sale of services and others Chilean pesos Foreign Trop Frutas do Brasil Ltda. Associate Brazil Purchase of products Brazilian real Foreign Alimentos de Soja S.A.U. Related to Shareholder Argentina Payment of fees and services Argentine pesos Taxpayer ID Company Relationship Country Description of transaction Currency Cumulative ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrate Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 76.572.588.7 Coca-Cola del Valle New Ventures S.A. Associate Chile Administrative and commercial services Chilean pesos 96.891.720-K Embonor S.A. Associate Chile Sale of packaging materials Chilean pesos 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Sale of finished products Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Brazilian real Foreign Leão Alimentos e Bebidas Ltda. Related to Shareholder Brazil Advertising participation payment Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Associate Argentina Purchase of concentrates Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Advertising participation payment Argentine pesos Foreign Coca-Cola Peru Related to director Peru Purchase of raw materials Chilean pesos Taxpayer ID Company Relationship Country Description of transaction Currency Cumulative ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrates Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Sale of packaging materials Chilean pesos 96.891.720-K Embonor S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Brazilian real Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Advertising participation payment Brazilian real Foreign Leao Alimentos e Bebidas Ltda. Associate Brazil Purchase of concentrates Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Advertising participation payment Argentine pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Purchase of raw materials Chilean pesos Foreign Coca-Cola Perú Related to director Perú Sale of finished products Chilean pesos Foreign Sorocaba Refrescos S. A. Related to Shareholder Brazil Purchase of concentrates and advertising participation Brazilian real 11.4 Key management compensation Salaries and benefits paid to the Company’s key management personnel including directors and managers are detailed as follows: Description 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Executive wages, salaries and benefits Director allowances Termination of employment contracts benefits — Accrued benefit in last five years and paid during fiscal year Total |
CURRENT AND NON-CURRENT EMPLOYE
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS | |
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS | NOTE 12 — CURRENT AND NON-CURRENT EMPLOYEE BENEFITS Employee benefits are detailed as follows: Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Accrued vacations Employee remuneration payable Indemnities for years of service Total ThCh$ ThCh$ Current Non-current Total 12.1 Indemnities for years of service The movements of post-employment benefits that are determined as stated in Note 2 are detailed as follows: Movements 12.31.2017 12.31.2016 ThCh$ ThCh$ Opening balance Service costs Interest costs Net actuarial losses ) Benefits paid ) ) Total 12.1.1 Assumptions The actuarial assumptions used are detailed as follows: Assumptions 12.31.2017 12.31.2016 Discount rate 2.7% 2.7% Expected salary increase rate 2.0% 2.0% Turnover rate 5.4% 5.4% Mortality rate (1) RV-2009 RV-2009 Retirement age of women 60 years 60 years Retirement age of men 65 years 65 years (1) Mortality assumption tables prescribed for use by the Chilean Financial Market Commission (CMF). 12.2 Personnel expenses Personnel expenses included in the consolidated statement of income are as follows: Description 12.31.2017 12.31.2016 12.30.2015 ThCh$ ThCh$ ThCh$ Wages and salaries Employee benefits Severance and post-employment benefits Other personnel expenses Total 12.3 Number of Employees (unaudited) Description 12.31.2017 12.31.2016 12.31.2015 Number of employees Number of average employees |
INVESTMENTS IN ASSOCIATES ACCOU
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | NOTE 13 — INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD 13.1 Balances Investments in associates using equity method of accounting are detailed as follows: Country of Functional Carrying Value Percentage interest Taxpayer ID Name Incorporation Currency 12.31.2017 12.31.2016 12.31.2017 12.31.2016 ThCh$ ThCh$ % % 86.881.400-4 Envases CMF S.A. (1) Chile Chilean peso % % Foreign Leão Alimentos e Bebidas Ltda. (2) Brazil Brazilian real % % Foreign Kaik Participações Ltda. (2) Brazil Brazilian real % % Foreign SRSA Participações Ltda. Brazil Brazilian real % % Foreign Sorocaba Refrescos S.A. Brazil Brazilian real % % Foreign Trop Frutas do Brasil Ltda. (2) Brazil Brazilian real % % 76.572.588-7 Coca Cola del Valle New Ventures S.A. (3) Chile Chilean peso % % Total (1) In these company, regardless of the percentage of ownership interest, it was determined that no controlling interest was held, only a significant influence, given that there was not a majority vote of the Board of Directors to make strategic business decisions. (2) In these companies, regardless of the percentage of ownership interest held, the Company has significant influence, given that it has a representative on each entity’s Board of Directors. (3) On January 28, 2016, Embotelladora Andina S.A along with Coca-Cola de Chile S.A. and Coca-Cola Embonor S.A., formed the company Coca-Cola del Valle New Ventures S.A., whose main purpose will be the development and production of juices, waters and non-carbonated beverages under trade names of The Coca-Cola Company, that Andina and Coca-Cola Embonor S.A. are authorized to market and distribute in their respective franchise territories. 13.2 Movement The movement of investments in associates accounted for using the equity method is shown below: Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Opening Balance Variation of minimum dividends from equity investees — — ) Dividends received ) ) ) Share in operating income ) Unrealized income Other investment increases in associates (Capital Contributions) Increase (Decrease) due to foreign currency translation differences ) ) Ending Balance December 31, 2017 Embotelladora Andina Paraguay Vital Jugos Vital Aguas Envase Central Total current assests Total non-current assests Total current liabilities Total non-current liabilities Net sales Net Income December 31, 2016 Embotelladora Andina Paraguay Vital Jugos Vital Aguas Envase Central Total current assests Total non-current assests Total current liabilities Total non-current liabilities Net sales Net Income December 31, 2015 Embotelladora Andina Paraguay Vital Jugos Vital Aguas Envase Central Total current assests Total non-current assests Total current liabilities Total non-current liabilities Net sales Net Income ) ) ) The main movements for the twelve- months ended December 2017 and fiscal year ended December 31, 2016, are the following: · During fiscal year 2017 and 2016, Leão Alimentos e Bebidas Ltda. carried out capital increases. Rio de Janeiro Refrescos Ltda. participated in these capital increases regarding its ownership interest for amounts of ThCh$5,385,161 and ThCh$6,105,732, respectively. · During fiscal year 2016, because of corporate restructuring, the Brazilian company Trop Frutas do Brasil Ltda., became part of bottler group of the Coca-Cola system in Brazil. As a result, Rio de Janeiro Refrescos Ltda. holds a 7.52% direct ownership interest in that company throu7gh a capital contribution of ThCh$ 6,157,150. · During fiscal year 2017, Embotelladora Andina S.A. has made capital contributions to Coca-Cola del Valle New Ventures S.A. in the amount of ThCh$10,185,000 (ThCh$ 5,323,693 as of December 31, 2016). · During the fiscal year 2017 and 2016, Envases CMF S.A. declared ThCh$1,540,090 and ThCh$750,806 in dividends, respectively. Of the dividends declared for the year 2017 only ThCh$770,045 have been paid. · During the twelve months period ended December 31, 2017and fiscal year ended December 2016, Sorocaba Refrescos S.A. did not distribute dividends. 13.3 Reconciliation of share of profit in investments in associates: Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Share of profit of investment accounted for using the equity method ) Unrealized earnings in inventory acquired from associates and not sold at the end of period, presented as a discount in the respective asset account (containers and/or inventories) ) ) ) Amortization of Fair Value in Envases CMF S.A. Income Statement Balance ) ) ) 13.4 Summary financial information of associates: The following table presents summarized information regarding the Company´s equity investees as of December 31, 2017: Envases Sorocaba Kaik SRSA Leão Trop Frutas Coca-Cola del Valle ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Total assets Total liabilities — Total revenue ) — Net income (loss) of associate ) ) ) ) Reporting date 12/31/2017 12/31/2017 12/31/2017 12/31/2017 12/31/2017 12/31/2017 11/30/2017 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS AND GOODWILL | |
INTANGIBLE ASSETS AND GOODWILL | NOTE 14 — INTANGIBLE ASSETS AND GOODWILL 14.1 Intangible assets other than goodwill Intangible assets other than goodwill as of the end of each reporting period are detailed as follows: 12.31.2017 12.31.2016 Gross Cumulative Net Gross Cumulative Net Detail Amount Amortization Amount Amount Amortization Amount ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Distribution rights (1) ) — Software ) ) Water rights ) ) Total ) ) (1) Correspond to the contractual rights to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile and Paraguay. Distribution rights result from the valuation process at fair value of the assets and liabilities of the companies acquired in business combinations. Production and distribution contracts are renewable for periods of 5 years with Coca-Cola. The nature of the business and renewals that Coca-Cola has permanently done on these rights, allow qualifying them as indefinite contracts. These production and distribution rights, and in conjunction with the assets that are part of the cash-generating units, are annually subjected to the impairment test. Such distribution rights are composed in the following manner and are not subject to amortization: except for the Monster rights that are amortized in the term of the agreement which is 4 years. Distribution rights 12.31.2017 12.31.2016 ThCh$ ThCh$ Chile (excluding Metropolitan Region, Rancagua and San Antonio) Brazil (Rio de Janeiro, Espirito Santo, Ribeirão Preto and the investments in Sorocaba and Leão Alimentos e Bebidas Ltda.) Paraguay Argentina (North and South) Monster distribution rights Total The movement and balances of identifiable intangible assets are detailed as follows: 01-01-2017 to 12-31-2017 01-01-2016 to 12-31-2016 Distribution Distribution Details Rights Water rights Software Total Rights Water rights Software Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance Additions (1) (1) — (2) Amortization ) — ) ) — ) ) ) Other increases (decreases) (3) ) — ) ) ) ) Total (1) Corresponds to distribution rights paid in Argentina, Paraguay and Chile resulting from the transaction in which The Coca-Cola Company acquired the “AdeS” business described in previous notes. (2) During the second quarter of 2016 Embotelladora Andina S.A. began distributing of Monster products (3) Mainly corresponds to the foreign currency effect of converting foreign subsidiaries’ distribution rights into the presentation currency. 14.2 Goodwill Goodwill is considered as the excess acquisition cost over fair value of the group´s ownership interest in identifiable net assets of the acquired subsidiary at the acquisition date. 14.2.1 Measurement of recoverable goodwill value Goodwill is annually reviewed but its recoverable value is checked during anticipated periods, if there are facts indicating a possible impairment. These signs may include new legal dispositions, changes in the economic environment affecting business operating performance indicators, movements in the competition, or the sale of a significant part of the cash-generating unit (CGU). Management reviews business performance based on geographic segments. Goodwill is monitored by operating segment that includes different cash generating units of the operations in Chile, Brazil, Argentina and Paraguay. Impairment of distribution rights is geographically monitored at the CGU or group of cash generating units that correspond to specific territories for which Coca-Cola distribution rights have been acquired. These cash generating units or groups of cash generating units are composed by: · Regions in Chile (excluding Metropolitan Region, province of Rancagua and province of San Antonio) · Argentina North · Argentina South · Brazil (state of Rio de Janeiro and Espirito Santo) · Brazil (Ipiranga territories) · Brazil: (investment in the associate Sorocaba) · Brazil: (investment in the associate Leão Alimentos S.A.) · Paraguay In order to check if goodwill has suffered an impairment loss, the company compares its book value with its recoverable value, and an impairment loss is recognized for the excess of the book value amount of the asset over its recoverable amount. To determine the recoverable values of the CGU, management considers the discounted cash flow method as the most appropriate method. 14.2.2 Main assumptions used in the annual test: a. Discount rate The real discount rate applied in the annual test carried out in December 2017 was estimated with the Capital Asset Pricing Model, which allows estimating a discount rate according to the risk level of the CGU in the country where it operates. A nominal discount rate before taxes is used according to the following table: Discount Rate 2017 2016 Argentina % % Chile % % Brazil % % Paraguay % % Management carries out the annual goodwill impairment test as of December 31 of each year for each CGU. b. Other assumptions Financial projections to determine the net value of future cash flows are modelled considering the main variables of the historical flows of the CGU, and approved budgets. In this sense, a conservative growth rate is used, which reach 3% for the soft drinks category and up to 7% for the less developed categories such as juices and water. Perpetuity growth rates between 2% and 2.5% depending on the level of per capita consumption of the products at each operation are set beyond the fifth year of projection. In this sense, the variables of greater sensitivity in these projections correspond to discount rates applied in order to determine the net present value of projected flows. For the purpose of the impairment test, sensitivities were conducted in these critical variables according to the following: · EBITDA Margin : corresponds to an increase or decrease of up to 150 bps of the EBITDA margin of the operations. · Discount rate : corresponds to an increase or decrease of 150 bps in the discount rate of future cash flows 14.2.3 Conclusions As a result of the annual test for 2017, no impairments have been identified in any of the CGUs assuming conservative EBITDA margin projections and in line with the markets’ history. As of December 31, 2017, there have been no signs of impairment. Despite the deterioration of the macroeconomic conditions experienced by the economies of the countries where the cash generating units develop their operations, recovery values from the impairment test were higher than the book values of assets. 14.2.4 Goodwill by business segment and country Movement in Goodwill as of December 31, 2017 and December 31, 2016 is detailed as follows: Operating segment 01.01.2017 Additions Disposals or Foreign currency 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chilean operation — — — Brazilian operation — — ) Argentine operation — — ) Paraguayan operation — — ) Total — — ) Operating segment 01.01.2016 Additions Disposals or Foreign currency 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chilean operation — — — Brazilian operation — — Argentine operation — — ) Paraguayan operation — — ) Total — — Operating segment 01.01.2015 Additions Disposals or Foreign currency 12.31.2015 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chilean operation — — — Brazilian operation — — ) Argentine operation — — ) Paraguayan operation — — ) Total — — ) |
OTHER CURRENT AND NON-CURRENT21
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | |
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | NOTE 15 — OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Liabilities are detailed as follows: Current 12.31.2017 12.31.2016 ThCh$ ThCh$ Bank loans Bonds payable Deposits in guarantee Derivative contract obligations (see note 20) Leasing agreements Total Non-current 12.31.2017 12.31.2016 ThCh$ ThCh$ Bank loans Bonds payable Leasing agreements Total The fair value of financial assets and liabilities as of December 31, 2017 and December 31, 2016 is presented below: Current Book Value Fair Value Book Value Fair Value ThCh$ ThCh$ ThCh$ ThCh$ Cash and cash equivalents (3) Other financial assets (3) Trade and other accounts receivable (3) Accounts receivable from related companies (3) Bank loans (1) Bonds payable (2) Deposits in guarantee (3) Derivative contract obligations (see note 20) Leasing agreements (3) Trade and other accounts payable (3) Accounts payable from related companies (3) Non-current 12.31.2017 12.31.2017 12.31.2016 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ Other financial assets (3) Trade and other accounts receivable(3) Accounts receivable from related companies (3) Bank loans (1) Bonds payable (2) Leasing agreements (3) (1) The fair values are based on discounted cash flows using market-based discount rates as of year-end and are Level 2 fair value measurements. (2) The fair value of corporate bonds is classified as Level 1 fair value measurements based on quoted prices for the Company’s obligations. (3) The fair value approximates book value considering the nature and term of the obligations. 15.1.1 Bank obligations, current Maturity Total Indebted Entity Creditor Entity Type Effective Nominal Up to 90 days at at Tax ID, Name Country Tax ID, Name Country Currency Amortization Rate Rate 90 days To 1 year 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ 91.144.000-8 Embotelladora Andina S.A. Chile 97032000-8 Banco Bilbao Viscaya Argentaria, Chile Chilean pesos Monthly % % — — 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile Unidad de fomento Semiannually % % — Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco de la Nación Argentina Argentina Argentine pesos Monthly % % — Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco Galicia y Bs. As. Argentina Argentine pesos Quarterly % % — — — Foreign Andina Empaques Argentina S.A. Argentina Foreign Banco Galicia y Bs. As. Argentina Argentine pesos Monthly % % Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco de la Nación Argentina Argentina Argentine pesos Monthly % % — — — Foreign Embotelladora del Atlántico S.A. Argentina Foreign BBBVA Banco Frances Argentina Argentine pesos Monthly % % — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Dollars Monthly % % — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Quarterly % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Semiannually % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Semiannually % % — — Total 15.1.2 Bank obligations, non-current December 31, 2017 Maturity Indebted Entity Creditor Entity More 4 Type Effective Nominal 1 year up to More 2 years More 3 years Up to 5 More 5 at Tax ID Name Country Tax ID Name Country Currency Amortization Rate Rate 2 years Up to 3 years Up to 4 years years Years 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 96.705.990-0 Envases Central S.A. Chile 97.080.000-K Bice Chile Unidad de fomento Semiannually % % — — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Alfa Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Quarterly % % — — — — Total 15.1.2 Bank obligations, non-current December 31, 2016 Maturity More than 2 More than 3 More than 4 More Indebted Entity Creditor Entity Type Effective Nominal 1 year up to years years years than 5 at Tax ID Name Country Tax ID Name Country Currency Amortization Rate Rate 2 years Up to 3 years Up to 4 years Up to 5 years Years 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Quarterly % % — — — 96.705.990-0 Envases Central S.A. Chile 97.080.000-K Banco Bice Chile Unidad de fomento Semiannually % % — — — — Total 15.1.3 Restrictions In general, the Company’s bank obligations are not subject to the fulfilment of covenants as of December 31, 2017, ending this year, which was maintained by the subsidiary Rio de Janeiro Refrescos Ltda. with Banco Itaú. 15.2.1 Bonds payable Current Non-current Total 12.31.2017 12.31.2016 12.31.2017 12.31.2016 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Composition of bonds payable Bonds (face value) Expenses of bond issuance and discounts on placement ) ) ) ) ) ) Net balance presented in statement of financial position 15.2.2 Changes in liabilities arising from financing activities (Bonds Payable) Total Cash Flows Total 01.01.2017 Interest Capital Accrued Foreign 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Bonds payable ) ) ) Total liabilities from financing activities ) ) ) 15.2.3 Current and non-current balances Obligations with the public correspond to bonds in UF issued by the parent company on the Chilean market and bonds in US dollars issued by the parent company on the international market: Date Face Unit of Interest final Interest Amortization of Bonds, current portion Series amount Adjustment rate Maturity Payment capital 12.31.2017 12.31.2016 ThCh$ ThCh$ CMF Registration N°640 CMF 08.23.2010 A — UF % 08.15.2017 Semiannually 02.15.2017 — CMF Registration N°254 CMF 06.13.2001 B UF % 06.01.2026 Semiannually 06.01.2018 CMF Registration N°641 08.23.2010 C UF % 08.15.2031 Semiannually 02.15.2021 CMF Registration N°759 08.20.2013 C UF % 08.16.2020 Semiannually 02.16.2018 CMF Registration N°760 08.20.2013 D UF % 08.16.2034 Semiannually 02.16.2032 CMF Registration N°760 04.02.2014 E UF % 03.01.2035 Semiannually 09.01.2032 Bonds USA — US$ % 10.01.2023 Semiannually 10.01.2023 Total current portion Bonds non-current portion CMF Registration N°254 CMF 06.13.2001 B UF % 06.01.2026 Semiannually 06.01.2018 CMF Registration N°641 08.23.2010 C UF % 08.15.2031 Semiannually 02.15.2021 CMF Registration N°759 08.20.2013 C UF % 08.16.2020 Semiannually 02.16.2018 CMF Registration N°760 08.20.2013 D UF % 08.16.2034 Semiannually 02.16.2032 CMF Registration N°760 04.02.2014 E UF % 03.01.2035 Semiannually 09.01.2032 Bonds USA — US$ % 10.01.2023 Semiannually 10.01.2023 Bonds non-current portion Accrued interest included in the current portion of bonds totaled ThCh$8,105,642 and ThCh$8,646,270 at December 31, 2017 and December 31, 2016, respectively. 15.2.4 Non-current maturities Year of maturity Total non- Series more than 1 more than 2 more than 3 More than 5 current ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ SVS Registration N°254 06.13.2001 B SVS Registration N°641 08.23.2010 C — — SVS Registration N°759 08.20.2013 C — — SVS Registration N°760 08.20.2013 D — — — SVS Registration N°760 04.02.2014 E — — — Bonds USA — — — — Total 15.2.5 Market rating The bonds issued on the Chilean market had the following rating as of December 31, 2017: AA : AA : The rating of bonds issued on the international market as of December 31, 2017, is the following: BBB : BBB+ : 15.2.6 Restrictions 15.2.6.1 Restrictions regarding bonds placed abroad. On September 26, 2013, Andina issued a bond in the U.S. Market (Bonds USA) for US$575 million at a coupon rate of 5.0% maturing on October 1, 2023. These bonds do not have financial restrictions. 15.2.6.2 Restrictions regarding bonds placed in the local market. For purposes of the calculation of the covenants, the amount of EBITDA that was agreed on each bond issue is included. Restrictions regarding the issuance of bonds for a fixed amount registered under number 254. The outstanding series as of December 31, 2017, is Series B for a nominal amount of up to UF 4 million, of which amount UF 3.7 million in bonds were placed with final maturity in the year 2026 at a 6.50% annual interest rate. The balance of outstanding capital as of December 31, 2017 is UF 2,333 million. Series B was issued with charge to the bonds line registered with the Securities Registered under number 254 dated September 13, 2001. Regarding Series B, the Issuer is subject to the following restrictions : · Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Financial Statements. Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2017, indebtedness level is 0.84 times of Consolidated Equity. The breakdown of accounts with the respective amounts used for the previous calculation is detailed as follows (in thousand Chilean pesos): As of December 31, 2017, the values of items included in this indicator are ThCh$ Other current financial liabilities Other non-current financial liabilities (-) Other non-current financial assets (hedge derivatives) ) Consolidated Equity · Maintain, and in no manner lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” (Región Metropolitana) as a territory in Chile in which we have been authorized by The Coca-Cola Company for the development, production, sale and distribution of products and brands of the licensor, in accordance to the respective bottler or license agreement, renewable from time to time. · Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of this date is franchised by TCCC to the Company for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer’s Adjusted Consolidated Operating Cash Flow. · Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.30 times of the issuer’s unsecured consolidated liabilities. Unsecured consolidated liabilities payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. As of December 31, 2017, this index is 1.62 times. The accounts with the respective amounts used for the previous calculation are detailed as follows: As of December 31, 2017, the values of items included in this restriction are ThCh$ Consolidated assets free of collateral, mortgages or other liens (-) Other current and non-current financial assets (hedge derivatives) ) Consolidated Assets free of pledges, mortgages or other liens (adjusted) Consolidated liabilities payable not guaranteed (-) Other current and non-current financial assets (hedge derivatives) ) Unsecured Consolidated Liabilities Payable (adjusted) Restrictions regarding bond lines registered in the Securities Registered under number 641. Because of our merger with Coca-Cola Polar S.A., Andina became a debtor of the following two bonds placed in the Chilean market in 2010: · UF 1.5 million of Series C bonds due 2031, bearing an annual interest rate of 4.00%. As of December 31, 2017, the balance of outstanding capital is UF 1.5 million. Series C was issued with charge to the Bond Lines registered with the Securities Registrar, under number 641, on August 23, 2010. Regarding Series C, the Issuer is subject to the following restrictions : · Maintain a level of “Net Financial Debt” within its quarterly financial statements that may not exceed 1.5 times, measured over figures included in its consolidated statement of financial position. To this end, net financial debt shall be defined as the ratio between net financial debt and total equity of the issuer (equity attributable to controlling owners plus non-controlling interest). On its part, net financial debt will be the difference between the Issuer’s financial debt and cash. As of December 31, 2017, Net Financial Debt was 0.65 times. The accounts with the respective amounts used for the previous calculation are detailed as follows: As of December 31, 2017, the values of items included in this restriction are ThCh$ Other current financial liabilities Other non-current financial liabilities (-) Cash and cash equivalent ) (-) Other current financial assets ) (-) Other non-current financial assets (hedge derivatives) ) Consolidated Equity · Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.30 times of the issuer’s unsecured consolidated liabilities. Unencumbered assets refer to the assets that meet the following conditions: are the property of the issuer; classified under Total Assets of the Issuer’s Financial Statements; and that are free of any pledge, mortgage or other liens constituted in favor of third parties, less “Other Current Financial Assets” and “Other Non-Current Financial Assets” of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities). Unsecured total liabilities correspond to: liabilities from Total Current Liabilities and Total Non-Current Liabilities of Issuer’s Financial Statement which do not benefit from preferences or privileges, less “Other Current Financial Assets” and “Other Non-Current Financial Assets” of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities). As of December 31, 2017, this index is 1.62 times. The accounts with the respective amounts used for the previous calculation are detailed as follows: As of December 31, 2017, the values of items included in this restriction are ThCh$ Consolidated assets free of collateral, mortgages or other liens (-) Other current and non-current financial assets (hedge derivatives) ) Consolidated Assets free of pledges, mortgages or other liens (adjusted) Consolidated liabilities payable not guaranteed (-) Other current and non-current financial assets (hedge derivatives) ) Unsecured Consolidated Liabilities Payable (adjusted · Maintain a level of “Financial net coverage” in its quarterly financial statements of more than 3 times. Net financial coverage means the ratio between the Issuer’s Ebitda for the past 12 months and net financial expenses (financial income less financial expenses) of the issuer for the past 12 months. However, this restriction will be considered breached when the mentioned net financial coverage level is lower than the level previously indicated during two consecutive quarters. As of December 31, 2017 Net Financial Coverage level is 7.30 times. The accounts with the respective amounts used for the previous calculation are detailed as follows: As of December 31, 2017, the values of items included in this indicator are the following: ThCh$ (+) Consolidated Ebitda between January 1 and December 31, 2017 (+) Consolidated financial income between January 1 and December 31, 2017 (-) Consolidated Ebitda between January 1 and September 30, 2016 ) For the purpose of calculating the covenant, EBITDA was calculated as agreed in the bond issue. Restrictions regarding bond lines registered in the Securities Registrar under numbers 759 and 760. During 2013 and 2014, Andina placed local bonds in the Chilean market. The issuances were structured into three series. · Series C outstanding as of December 31, 2017, for a nominal value of up to UF 3 million, of which bonds were placed for a nominal amount of UF1.0 million with final maturity during year 2020 at an annual interest rate of 3.50% issued against line number 759. Outstanding capital as of December 31, 2017, is UF 0.750 million. · Series D and E outstanding as of December 31, 2017, for a total nominal value of UF 8 million, of which UF 4 million were placed in bonds during August 2013 (series D) and UF 3 million during April 2014 (series E), with final maturity in 2034 and 2035, respectively, issued with charge against line number 760. The annual interest rates are 3.8% for Series D and 3.75% for Series E. The outstanding capital balance as of December 31, 2017, of both series amounts to UF 7.0 million. Regarding Series C, D and E, the Issuer is subject to the following restrictions : · Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) cash and cash equivalent and (iv) other current financial assets, and (v) other non-current financial assets (to the extent they are asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2017, Indebtedness Level is 0.65 times of Consolidated Equity. The accounts with the respective amounts used for the previous calculation are detailed as follows: As of December 31, 2017, the values of items included in this restriction are ThCh$ Other current financial liabilities Other non-current financial liabilities (-) Cash and cash equivalent ) (-) Other current financial assets ) (-) Other non-current financial assets (hedge derivatives) ) Consolidated Equity · Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.30 times of the issuer’s unsecured consolidated liabilities payable. Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s Consolidated Statement of Financial Position. As of December 31, 2017, this index is 1.62 times. The accounts with the respective amounts used for the previous calculation are detailed as follows: As of December 31, 2017, the values of items included in this restriction are ThCh$ Consolidated assets free of collateral, mortgages or other liens (-) Other current and non-current financial assets (hedge derivatives) ) Consolidated Assets free of pledges, mortgages or other liens (adjusted) Consolidated liabilities payable not guaranteed (-) Other current and non-current financial assets (hedge derivatives) ) Unsecured Consolidated Liabilities Payable (adjusted · Maintain, and in no manner, lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” as a territory franchised to the Issuer in Chile by The Coca-Cola Company, hereinafter also referred to as “ TCCC ” or the “ Licensor ” for the development, production, sale and distribution of products and brands of said licensor, in accordance to the respective bottler or license agreement, renewable from time to time. Losing said territory, means the non-renewal, early termination or cancellation of this license agreement by TCCC, for the geographical area today called “Metropolitan Region”. This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed territory is purchased or acquired by a subsidiary or an entity that consolidates in terms of accounting with the Issuer. · Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of these instruments is franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer’s Adjusted Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer. For these purposes, the term “Adjusted Consolidated Operating Cash Flow” shall mean the addition of the following accounting accounts of the Issuer’s Consolidated Statement of Financial Position: (i) “Gross Profit” which includes regular activities and cost of sales; less (ii) “Distribution Costs”; less (iii) “Administrative Expenses”; plus (iv) “Participation in profits (losses) of associates and joint ventures that are accounted for using the equity method”; plus (v) “Depreciation”; plus (vi) “Intangibles Amortization”. As of December 31, 2017, and December 31, 2016, the Company complies with all financial collaterals. 15.2.7 Repurchased bonds In addition to UF bonds, the Company holds bonds that it has repurchased in full through companies that are included in the consolidation: Through its subsidiaries, Abisa Corp S.A. (formerly Pacific Sterling), Embotelladora Andina S.A. repurchased its Bonds USA issued on the U.S. Market during the years 2000, 2001, 2002, 2007 and 2008. The entire placement amounted to US$350 million, of which US$200 million are outstanding as of December 31, 2013. On December 15, 2014, Embotelladora Andina S.A. rescued US$200 million in outstanding bonds from its subsidiary Abisa Corp S.A., thus since legally debtor and creditor are joined in a single entity, the mentioned bond liability becomes extinguished. The subsidiary Rio de Janeiro Refrescos Ltda. maintains a liability corresponding to a bond issuance for US $75 million due in December 2020 and semi-annual interest payments. As of December 31, 2017, these issues are held by Andina. On January 1, 2013, Abisa Corp S.A. transferred the totality of this asset to Embotelladora are Andina S.A., the latter becoming the creditor of the above-mentioned Brazilian subsidiary. Consequently, the assets and liabilities related to the transaction have been eliminated from these consolidated financial statements. In addition, the transaction has been treated as a net investment of the group in the Brazilian subsidiary; consequently, the effects of exchange rate differences between the dollar and the functional currency of each one has been recorded in other comprehensive income. 15.3.1 Derivative contract obligations Please see details in Note 20. 15.4.1 Current liabilities for leasing agreements Maturity Total Indebted Entity Creditor Entity Amortization Effective Nominal Up to 90 days to at At Name Country Tax ID type Type Currency Type rate rate 90 days 1 year 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Citibank Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % Embotelladora del Atlántico S.A. Argentina Foreign Tetra Pak SRL Argentina Dollars Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Bradesco Brazil Brazilian real Monthly % % — — — Total 15.4.2 Non-current liabilities for leasing agreements December 31, 2017 Maturity Indebted Entity Creditor Entity Amortization Effective Nominal 1 year to 2 years to 3 years to 4 years to More at Name Country Tax ID Name type Currency Type rate Rate 2 years 3 years 4 years 5 years 5 years 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Citibank Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % 15.4.3 Non-current liabilities for leasing agreements December 31, 2016 Maturity Indebted Entity Creditor Entity Amortization Effective Nominal 1 year to 2 years to 3 years to 4 years to More at Tax ID Name Country Tax, ID Name type Currency Type rate Rate 2 years 3 years 4 years 5 years 5 years 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % — — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % — — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Citibank Brazil Brazilian real Monthly % % — — — — Foreign Embotelladora del Atlántico S.A. Argentina Foreign Tetra Pak SRL Argentina Dollars Monthly % % — — — — Total |
TRADE AND OTHER CURRENT ACCOUNT
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | |
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | NOTE 16 — TRADE AND OTHER CURRENT ACCOUNTS PAYABLE Trade and other current accounts payable are detailed as follows: Item 12.31.2017 12.31.2016 ThCh$ ThCh$ Trade accounts payable Withholdings tax Accounts payable Inamar Ltda. (1) Others Total Current Non-current Total The Company maintains commercial lease agreements for forklifts, vehicles, properties and machinery. These lease agreements have an average duration of one to eight years excluding renewal options. Accruable liabilities pursuant to the Company’s operating leasing agreements are detailed as follows: ThCh$ Maturity within one year Maturity between one and five years Maturity more than five years Total Total expenses related to operating leases maintained by the Company as of December 31, 2017 amount to ThCh$1,671,534. (1) On December 3, 2015, property was purchased from Industrias Metalurgicas Inamar Ltda. for an amount of ThCh$17,292,040 equivalent to UF 675,000, of which there is an approximate balance of ThUF 303. To guarantee the payment of this obligation the land has been mortgaged to in favor of Industrias Metalurgicas Inamar Ltda. |
CURRENT AND NON-CURRENT PROVISI
CURRENT AND NON-CURRENT PROVISIONS | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND NON-CURRENT PROVISIONS | |
CURRENT AND NON-CURRENT PROVISIONS | NOTE 17 — CURRENT AND NON-CURRENT PROVISIONS 17.1 Balances This account is detailed as follows: Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Litigation (1) Total (1) Corresponds to the provision for probable fiscal, labor and trade contingency losses based on the opinion of our legal advisors, detailed as follows: Detail (see note 21.1) 12.31.2017 12.31.2016 ThCh$ ThCh$ Tax Contingencies Labor Contingencies Civil Contingencies Total 17.2 Movements Movement of provisions is detailed as follows: 12.31.2017 12.31.2016 Description Litigation Others Total Litigation Others Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening Balance as of January 01 — — Additional provisions — — Increase (decrease) in existing provisions ) — ) ) — ) Payments — — Reverse unused provision (*) ) — ) ) — ) Increase (decrease) due to foreign exchange differences ) — ) — Total — — (*) During the years 2017 and 2016 there has been a reversal of provisions amounting to Th$6,769,384 and Th$2,774,703, respectively, which resulted from fines demanded by the Brazilian Treasury on the use of IPI tax credits in the Free Zone of Manaus, because of favorable rulings on the subject for Rio de Janeiro Refrescos Ltda. from the Superior Chamber of Fiscal Resources (CSRF). |
OTHER CURRENT AND NON-CURRENT N
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES | |
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES | NOTE 18 — OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES Other current and non-current liabilities at each reporting period end are detailed as follows: Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Dividend payable Other Total Current Non-current — Total |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY | |
EQUITY | NOTE 19 — EQUITY 19.1 Number of shares: Number of shares subscribed Number of shares paid in Number of voting shares Series 2017 2016 2015 2017 2016 2015 2017 2016 2015 A B 19.1.1 Equity: Subscribed Capital Paid-in capital Series 2017 2016 2015 2017 2016 2015 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ A B Total 19.1.2 Rights of each series: · Series A: Elects 12 of the 14 Directors · Series B: Receives an additional 10% of dividends distributed to Series A and elects 2 of the 14 Directors. 19.2 Dividend policy According to Chilean law, cash dividends must be paid equal to at least 30% of annual net profit, barring a unanimous vote by shareholders to the contrary. If there is no net profit in a given year, the Company will not be legally obligated to pay dividends from retained earnings. At the ordinary Shareholders’ Meeting held in April 2017, the shareholders agreed to pay out of the 2016 earnings are final dividend to complete the 30% required by the Law 18,046 which was paid in May 2017, and an additional dividend was paid in August 2017. Pursuant to Circular Letter N° 1,945 of the Chilean Financial Market Commission (CMF) dated September 29, 2009, the Company’s Board of Directors decided to maintain the initial adjustments from adopting IFRS as retained earnings for future distribution. Accumulated earnings at the date of IFRS adoption as of January 1, 2009, amounted to ThCh$ 19,260,703, of which ThCh$ 8,600,015 have been realized as of December 31, 2017, and are available for distribution as dividends in accordance with the following: Description Event when Amount of Realized at Amount of ThCh$ ThCh$ ThCh$ Revaluation of assets parent Company Sale or impairment ) Foreign currency translation differences of investments in related companies and subsidiaries Sale or impairment Full absorption cost accounting parent Company Sale of products ) — Post-employment benefits actuarial calculation parent Company Termination of employees ) Deferred taxes complementary accounts parent Company Amortization ) — Total ) The dividends declared and paid per share are presented below: Dividend payment date Dividend Profits Ch$ per Series Ch$ per Series 2016 January Interim 2015 2016 May Final 2015 2016 August Additional Retained Earnings 2016 October Interim 2016 2017 January Interim 2016 2017 May Final 2016 2017 August Additional Retained Earnings 2017 October Interim 2017 2017 December (*) Interim 2017 (*) 19.3 Reserves The balance of other reserves includes the following: Description 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Polar acquisition Foreign currency translation reserves ) ) ) Cash flow hedge reserve ) ) Reserve for employee benefit actuarial gains or losses ) ) ) Legal and statutory reserves Total 19.3.1 Polar acquisition This amount corresponds to the fair value of the issuance of shares of Embotelladora Andina S.A., used to acquire Embotelladoras Coca-Cola Polar S.A., which was the value of the capital increase notarized in legal terms. 19.3.2 Cash flow hedge reserve They arise from the fair value of the existing derivative contracts that have been qualified for hedge accounting at the end of each financial period. When contracts are expired, these reserves are adjusted and recognized in the income statement in the corresponding period (see Note 20). 19.3.3 Reserve for employee benefit actuarial gains or losses Corresponds to the restatement effect of employee benefits actuarial losses that according to IAS 19 amendments must be carried to other comprehensive income. 19.3.4 Legal and statutory reserves The balance of other reserves is established through the following concept: In accordance with Official Circular N° 456 issued by the Chilean Financial Market Commission (CMF), the legally required price-level restatement of paid-in capital for 2009 is presented as part of other equity reserves and is accounted for as a capitalization from Other Reserves with no impact on net income or retained earnings under IFRS. This amount totaled ThCh$ 5,435,538 as of December 31, 2009 19.3.5 Foreign currency translation reserves This corresponds to the conversion of the financial statements of foreign subsidiaries whose functional currency is different from the presentation currency of the consolidated financial statements. Additionally, exchange differences between accounts receivable kept by the companies in Chile with foreign subsidiaries are presented in this account, which have been treated as investment equivalents accounted for using the equity method. Translation reserves are detailed as follows: Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Brazil ) ) ) Argentina ) ) ) Paraguay ) Exchange rate differences in related companies ) ) ) Total ) ) ) The movement of this reserve for the fiscal years ended December 31, 2017,2016 and December 31, 2015, is detailed as follows: Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Brazil ) ) Argentina ) ) ) Paraguay ) ) ) Exchange rate differences in related companies ) ) Total ) ) ) 19.3.6 Consolidated statements of comprehensive income As of December 31, 2017, 2016 and 2015, the detail of the comprehensive income and expense of the term is as follows: Gross Balance Tax Net Balance ThCh$ ThCh$ ThCh$ Cash flow for hedge (1) ) ) Exchange rate translation differences (1) ) ) Benefit related to defined benefit plans ) ) Total Comprehensive income as of December 31, 2017 ) ) Gross Balance Tax Net Balance ThCh$ ThCh$ ThCh$ Cash flow for hedge (1) ) ) Exchange rate translation differences (1) ) ) Benefit related to defined benefit plans ) ) Total Comprehensive income as of December 31, 2016 ) ) Gross Balance Tax Net Balance ThCh$ ThCh$ ThCh$ Cash flow for hedge (1) ) Exchange rate translation differences (1) ) ) Benefit related to defined benefit plans ) ) Total Comprehensive income as of December 31, 2015 ) ) ) (1) These concepts will be reclassified to the statements of income when it is settled. The movement of comprehensive income and expense is as follows: As of December 31, 2017: Cash Flow Exchange rate Benefit ThCh$ ThCh$ ThCh$ Increase (decrease) ) ) ) Deferred taxes Reclassification to the result by function — Reclassification of deferred taxes related to other reserves ) — ) Total Changes in Equity ) ) ) Equity holders of the parent ) ) ) Non-Controlling interests — ) ) Total Changes in equity as of December 31, 2017 ) ) ) As of December 31, 2016: Cash Flow Exchange rate Benefit ThCh$ ThCh$ ThCh$ Increase (decrease) ) ) Deferred taxes ) Reclassification to the result by function — Reclassification of deferred taxes related to other reserves ) — ) Total Changes in Equity ) ) ) Equity holders of the parent ) ) Non-Controlling interests — ) ) Total Changes in equity as of December 31, 2016 ) ) ) As of December 31, 2015: Cash Flow Exchange rate Benefit ThCh$ ThCh$ ThCh$ Increase (decrease) ) ) Deferred taxes ) Reclassification to the result by function ) — Reclassification of deferred taxes related to other reserves — ) Total Changes in Equity ) ) Equity holders of the parent ) ) Non-Controlling interests — ) ) Total Changes in equity as of December 31, 2015 ) ) 19.4 Non-controlling interests This is the recognition of the portion of equity and income from subsidiaries owned by third parties. As of December 31, 2017 and December 31, 2016, this account is detailed as follows: Non-controlling Interests Ownership % Shareholders’ Equity Income Details 2017 2016 2015 December December December December December December ThCh$ ThCh$ ThCh$ ThCh $ ThCh $ ThCh $ Embotelladora del Atlántico S.A. Andina Empaques Argentina S.A. Paraguay Refrescos S.A. Vital S.A. ) Vital Aguas S.A. Envases Central S.A. ) Total 19.5 Earnings per share The basic earnings per share presented in the statement of comprehensive income is calculated as the quotient between income for the period and the average number of shares outstanding during the same period. Earnings per share used to calculate basic and diluted earnings per share is detailed as follows: 12.31.2017 Earnings per share SERIES A SERIES B TOTAL Earnings attributable to shareholders (ThCh$) Average weighted number of shares Earnings per basic and diluted share (in Chilean pesos) 12.31.2016 Earnings per share SERIES A SERIES B TOTAL Earnings attributable to shareholders (ThCh$) Average weighted number of shares Earnings per basic and diluted share (in Chilean pesos) 12.31.2015 Earnings per share SERIES A SERIES B TOTAL Earnings attributable to shareholders (ThCh$) Average weighted number of shares Earnings per basic and diluted share (in Chilean pesos) |
DERIVATIVE ASSETS AND LIABILITI
DERIVATIVE ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE ASSETS AND LIABILITIES | |
DERIVATIVE ASSETS AND LIABILITIES | NOTE 20 — DERIVATIVE ASSETS AND LIABILITIES Embotelladora Andina currently maintains “Cross Currency Swaps” and “Currency Forward” agreements as Derivative Financial Assets. Cross Currency Swaps, also known as interest rate and currency swaps, are valued by the method of discounted future cash flows at a rate corresponding to the risk of the operation. The basis of the information used in the calculations is obtained in the market by using the Bloomberg terminal. Currently Embotelladora Andina maintains Cross Currency Swap for UF/USD and BRL/USD, for which it is necessary to discount future cash flows in UFs, in Brazilian Reais and in U.S. Dollars. For this calculation, the Company uses as discount curves, the UF Zero-Coupon, the Brazilian Real Zero-Coupon and the U.S. Dollar Zero-Coupon. On the other hand, the fair value of forward currency contracts is calculated in reference to current forward exchange rates for contracts with similar maturity profiles. To perform the above calculation, the Company uses market information available on the Bloomberg terminal. As of the closing dates as of December 31, 2017 and December 31, 2016, the Company held the following derivative instruments: 20.1 Derivatives accounted for as cash flow hedges: a) Cross Currency Swaps Itau Credit At December 31, 2017, the company does not hold derivative contracts to secure bank obligations with Itau in Brazil b) Cross Currency Swaps associated with US Bonds At December 31, 2017, the Company entered into cross currency swap derivative contracts to convert US Dollar public bond obligations of US$570 million into UF and Real liabilities to hedge the Company’s exposure to variations in foreign exchange rates. Said contracts are valued at their value and the net value to be received as of December 31, 2017 amounted to ThCh$61,898,833. These swap contracts have the same terms of the underlying bond obligation and expire in 2023. Additionally, the fair value of these derivatives which is lower than the hedged items amounted to ThCh$2,875,365 and has been recognized within other equity reserves as of December 31, 2017. The ineffective portion for ThCh$2,112,608 in losses associated with this hedge was recorded in other gains and losses as of December 31, 2017. The amount of exchange differences recognized in the statement of income related to financial liabilities in U.S. dollars and the identified effective portion that was absorbed by the amounts recognized under comprehensive income amounted to ThCh$ 13,443,698 as of December 31, 2017. 20.2. Forward currency transactions expected to be very likely: During 2017 and 2016, the Company entered into foreign currency forward contracts to hedge its exposure to expected future raw materials purchases in US Dollars during these years. The total amount of outstanding forward contracts was US$62.8 million as of December 31, 2017 (US$61.1 million as of December 31, 2016). These agreements were recorded at fair value, resulting in a net loss due to hedge recycling of ThCh$3,655,493 for the period ended December 31, 2017, and a hedge liability of ThCh$445,278 and an asset for the same concept of ThCh$ 469,019 as of December 31, 2017 (liability of ThCh$1,229,354 as of December 31, 2016). The agreements that ensure future flows of foreign currency have been designated as hedge as of December 31, 2017; there is a balance of ThCh$219,306 to be recycled to income statement. Futures contracts that ensure prices of future raw materials have not been designated as hedge agreements, since they do not fulfill IFRS documentation requirements, whereby its effects on variations in fair value are accounted for directly under statements of income in the “other gains and losses” account. Fair value hierarchy As of December 31, 2017, the Company had total assets related to its foreign exchange derivative contracts for ThCh$62,244,284 (ThCh$84,859,223 as of December 31, 2016) and liabilities related to its foreign exchange derivative contracts for ThCh$445,278 (ThCh$1,229,354 as of December 31, 2016). Those contracts covering existing items have been classified in the same category of the hedged item, the net amount of derivative contracts by concepts covering forecasted items have been classified in financial assets and financial liabilities. All the derivative contracts are carried at fair value in the consolidated statement of financial position. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included in level 1 that are observable for the assets and liabilities, either directly (that is, as prices) or indirectly (that is, derived from prices) Level 3: Inputs for assets and liabilities that are not based on observable market data. During the reporting period, there were no transfers of items between fair value measurement categories; all of which were valued during the period using level 2. Fair Value Measurements at December 31, 2017 Quoted prices in active Observable Unobservable (Level 1) (Level 2) (Level 3) Total ThCh$ ThCh$ ThCh$ ThCh$ Assets Current assets Other current financial assets Current financial assets — Other non-current financial assets — — Total assets — — Liabilities Current liabilities Other current financial liabilities — — Total liabilities — — Fair Value Measurements at December 31, 2016 Quoted prices in active Observable Unobservable (Level 1) (Level 2) (Level 3) Total ThCh$ ThCh$ ThCh$ ThCh$ Assets Current assets Other current financial assets — — Other non-current financial assets — — Total assets — — Liabilities Current liabilities Other current financial liabilities — — Total liabilities — — |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
CONTINGENCIES AND COMMITMENTS | |
CONTINGENCIES AND COMMITMENTS | NOTE 21 — CONTINGENCIES AND COMMITMENTS 21.1 Lawsuits and other legal actions: In the opinion of the Company’s legal counsel, the Parent Company and its subsidiaries do not face judicial or extra-judicial contingencies that might result in material or significant losses or gains, except for the following: 1) Embotelladora del Atlántico S.A. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency of a probable loss because of these lawsuits, totaling ThCh$1,340,027. Management considers it unlikely that non-provisioned contingencies will affect the Company’s income and equity, based on the opinion of its legal counsel. Additionally, Embotelladora del Atlántico S.A. maintains time deposits for an amount of ThCh$663,274 to guaranty judicial liabilities 2) Rio de Janeiro Refrescos Ltda. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency of a probable loss because of these lawsuits, totaling ThCh$56,607,721. Management considers it unlikely that non-provisioned contingencies will affect the Company’s income and equity, based on the opinion of its legal counsel. As it is customary in Brazil, Rio de Janeiro Refrescos Ltda. maintains judicial deposits and assets given in pledge to secure the compliance of certain processes, irrespective of whether these have been classified as a possible, probable or remote. The amounts deposited or pledged as legal guarantees as of December 31, 2017 and December 31, 2016, amounted to ThCh$31,953,725 and ThCh$103,351,097 respectively. To ensure fulfillment of the obligations arising from judicial proceedings faced in Brazil, Rio de Janeiro Refrescos Ltda., has taken guarantee insurance and guarantee letters amounting to R$682,849,162 with different financial institutions and insurance companies in Brazil, through which these entities after a 0.6% commission, become responsible of fulfilling obligations with the Brazilian tax authorities should any trial result against Rio de Janeiro Refrescos Ltda. Additionally, if the warranty and bail letters are executed, Rio de Janeiro Refrescos Ltda. promises to reimburse to the financial institutions and Insurance Companies any amounts disbursed by them to the Brazilian government. Main contingencies faced by Rio de Janeiro Refrescos are as follows: a) Tax contingencies resulting from credits on tax on industrialized products (IPI). Rio de Janeiro Refrescos is a party to a series of proceedings under way, in which the Brazilian federal tax authorities demand payment of value-added tax on industrialized products ( Imposto sobre Produtos Industrializados , or IPI) allegedly owed by ex-Companhia de Bebidas Ipiranga. The initial amount demanded reached R$1,330,473,161 (historical amount without adjustments), corresponding to different trials related to the same cause. In September 2014, one of these trials for R$598,745,218, was settled in favor of the Company, and additionally during 2017 several trials were settled in favor of the Company in the amount for R$135,282,155 however, there are new lawsuits arising after the purchase of ex-Companhia de Bebidas Ipiranga (October 2013) that amount to R$331,045,690 The Company rejects the position of the Brazilian tax authority in these procedures and considers that Companhia de Bebidas Ipiranga was entitled to claim IPI tax credits in connection with purchases of certain exempt raw materials from suppliers located in the Manaus free trade zone. Based on the opinion of its advisers, and judicial outcomes to date, Management estimates that these procedures do not represent probable losses and has not recorded a provision on these matters. Notwithstanding the above, the IFRS related to business combination in terms of distribution of the purchase price establish that contingencies must be measured one by one according to their probability of occurrence and discounted at fair value from the date on which it is deemed the loss can be generated. According to this criterion, from a total of identified contingencies amounting R$1,082,396,664 (including readjustments of current lawsuits), the Company recorded a provision R$159,293,486 equivalent to ThCh$29,602,682. b) Tax contingencies on ICMS and IPI causes. They refer mainly to tax settlements issued by advance appropriation of ICMS credits on fixed assets, payment of the replacement of ICMS tax to the operations, untimely IPI credits calculated on bonuses, among other claims. The Company does not consider that these judgments will result in significant losses, given that their loss, according to its legal counsel, is considered unlikely. However, the accounting standards of financial information related to business combination in terms of distribution of the purchase price, establish contingencies must be valued one by one according to their probability of occurrence and discounted to fair value from the date on which it is deemed that the loss can be generated. According to this criterion, an initial provision has been made in the business combination accounting for an amount of R$37.2 million equivalent to ThCh$ 6,916,453. 3) Embotelladora Andina S.A. and its Chilean subsidiaries face labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency of a probable loss because of these lawsuits, totaling ThCh$7,616,340. Management considers it is unlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors. 4) Paraguay Refrescos S.A. faces tax, trade, labor and other lawsuits. Accounting provisions have been made for the contingency of any loss because of these lawsuits amounting to ThCh60,078. Management considers it is unlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors. 21.2 Direct guarantees and restricted assets: Guarantees and restricted assets are detailed as follows: Guarantees that compromise assets including in the financial statements: Provided by Committed assets Balance pending payment on the closing date Guarantee in favor of Name Relationship Guarantee Type 12.31.2017 12.31.2016 ThCh$ ThCh$ Industria Metalúrgica Inamar Ltda. Embotelladora Andina S.A. Parent Company Land Property, plant and equipment Gas Licuado Lipigas S.A Embotelladora Andina S.A. Parent Company Cash and cash equivalents Trade and other receivables Nazira Tala Embotelladora Andina S.A. Parent Company Cash and cash equivalents Trade and other receivables — Hospital Militar Servicios Multivending Subsidiary Cash and cash equivalents Trade and other receivables Parque Arauco Servicios Multivending Subsidiary Cash and cash equivalents Trade and other receivables — Aeropuerto Nuevo Pudahuel Servicios Multivending Subsidiary Cash and cash equivalents Other receivables — Hospital FACH Servicios Multivending Subsidiary Cash and cash equivalents Other receivables — Inmob. E Invers. Supetar Ltda Transportes Polar S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets Bodegas San Francisco Ltda. Transportes Polar S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets — Maria Lobos Jamet Transportes Polar S.A. Subsidiary Cash and cash equivalents Trade and other receivables Reclamaciones Trabajadores Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current, non-financial assets Reclamaciones Civiles Y Tributarias Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current, non-financial assets Instituciones Gubernamentales Rio de Janeiro Refrescos Ltda. Subsidiary Property, plant and equipment Property, plant and equipment Distribuidora Baraldo S.H. Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Acuña Gomez Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad San Martin Mza Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets — Nicanor López Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Labarda Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad Bariloche Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad San Antonio Oeste Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad Carlos Casares Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad Chivilcoy Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Otros Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Granada Maximiliano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Cicsa Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets Locadores Varios Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets Aduana De EZEIZA Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets Municipalidad De Junin Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Almada Jorge Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad De Picun Leufu Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Farias Matias Luis Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Gomez Alejandra Raquel Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Lopez Gustavo Gerardo C/Inti Saic Y Otros Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Fondo Fima Ahorro Plus C Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, financial assets — Fondo Firma Ahorro Pesos C Embotelladora del Atlántico S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets — Tribunal Superior De Justicia De La Provincia De Córdoba Embotelladora del Atlántico S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets — Marcus A.Peña Paraguay Refrescos Subsidiary Building Property, plant and equipment Mauricio J Cordero C Paraguay Refrescos Subsidiary Building Property, plant and equipment José Ruoti Maltese Paraguay Refrescos Subsidiary Building Property, plant and equipment Alejandro Galeano Paraguay Refrescos Subsidiary Building Property, plant and equipment — Ana Maria Mazó Paraguay Refrescos Subsidiary Building Property, plant and equipment — Fondo Fuma Premium B Fondo Fuma Premium B Subsidiary Judicial deposit Other current, financial assets — Total Guarantees provided without obligation of assets included in the financial statements: Provided by Committed assets Amounts involved Warranty creditor Name Relationship Guarantee Type 12.31.2017 12.31.2016 ThCh$ ThCh$ Importadora Casa y Regalos Trans-Heca S.A. Subsidiary Guarantee insurance Compliance lease contract Inmobiliaria e Inversiones Gestion Activa Ltda Trans-Heca S.A. Subsidiary Guarantee insurance Compliance lease contract Inmobiliaria Portofino Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond Teléfonica Chile S.A. Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond Inmobiliaria San Martin Logista S.A Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond Procesos trabajadores Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Procesos administrativos Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Gobierno Federal Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Gobierno Estadual Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action HSBC Sorocaba Refrescos S.A. Associate Loan co-signers Otros Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Aduana de Ezeiza Embotelladora del Atlántico S.A. Subsidiary Bond insurance Faithful fulfillment of contract Aduana de Ezeiza Andina Empaques S.A. Subsidiary Bond insurance Faithful fulfillment of contract |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | NOTE 22 — FINANCIAL RISK MANAGEMENT The Company’s businesses are exposed to a variety of financial and market risks (including foreign exchange risk, interest rate risk and price risk). The Company’s global risk management program focuses on the uncertainty of financial markets and seeks to minimize potential adverse effects on the performance of the Company. The Company uses derivatives to hedge certain risks. A description of the primary policies established by the Company to manage financial risks are provided below: Interest Rate Risk As of December 31, 2017, the Company maintains all of its debt liabilities at a fixed rate as to avoid fluctuations in financial expenses resulting from tax rate increases. The Company’s greatest indebtedness corresponds to own issued Chilean local bonds at a fixed rate in the amount of UF11.58 million denominated in UF (“UF”), a currency indexed to inflation in Chile (the Company’s sales are correlated with the UF variation). There is also the Company’s indebtedness on the international market through a 144A/RegS Bond at a fixed rate for US$575 million, denominated in dollars, and practically 100% of which has been re-denominated to UF and BRL through Cross Currency Swaps. Insurance net credit balances as of December 31, 2017 amounted to Th$220,693. Credit risk The credit risk to which the Company is exposed comes mainly from trade accounts receivable maintained with retailers, wholesalers and supermarket chains in domestic markets; and the financial investments held with banks and financial institutions, such as time deposits, mutual funds and derivative financial instruments. a. Trade accounts receivable and other current accounts receivable Credit risk related to trade accounts receivable is managed and monitored by the area of Finance and Administration of each business unit. The Company has a wide base of more than 100 thousand clients implying a high level of atomization of accounts receivable, which are subject to policies, procedures and controls established by the Company. In accordance with such policies, credits must be based objectively, non-discretionary and uniformly granted to all clients of a same segment and channel, provided these will allow generating economic benefits to the Company. The credit limit is checked periodically considering payment behavior. Trade accounts receivable pending of payment are monitored on a monthly basis. i. Sale Interruption: In accordance with Corporate Credit Policy, the interruption of sale must be within the following framework: when a customer has outstanding debts for an amount greater than US$ 250,000, and over 60 days expired, sale is suspended. The General Manager in conjunction with the Finance and Administration Manager authorize exceptions to this rule, and if the outstanding debt should exceed US$1,000,000, and in order to continue operating with that client, the authorization of the Chief Financial Officer is required. Notwithstanding the foregoing, each operation can define an amount lower than US$250,000 according to the country’s reality. ii. Impairment The impairment recognition policy establishes the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue, 60%between 60 and 91 days, 90%between 91 and 120 days overdue and 100% for more than 120 days. Exemption of the calculation of global impairment is given to credits whose delays in the payment correspond to accounts disputed with the customer whose nature is known and where all necessary documentation for collection is available, therefore, there is no uncertainty on recovering them. However, these accounts also have an impairment provision as follows: 40% for 91 to 120 days overdue, 80% between 120 and 170, and 100% for more than 170 days. iii. Prepayment to suppliers The Policy establishes that US$25,000 prepayments can only be granted to suppliers if its value is properly and fully provisioned. The Treasurer of each subsidiary must approve supplier warranties that the Company receives for prepayments before signing the respective service contract. In the case of domestic suppliers, a warranty ballot (or the instrument existing in the country) shall be required, in favor of Andina executable in the respective country, non-endorsable, payable on demand or upon presentation and its validity will depend on the term of the contract. In the case of foreign suppliers, a stand-by credit letter will be required which shall be issued by a first line bank; in the event that this document is not issued in the country where the transaction is done, a direct bank warranty will be required. Subsidiaries can define the best way of safeguarding the Company’s assets for prepayments under US$25,000. iv. Guarantees In the case of Chile, we have insurance with Compañía de Seguros de Crédito Continental S.A. (AA rating —according to Fitch Chile and Humphreys rating agencies) covering the credit risk regarding trade debtors in Chile for 87% both for the existing as well as the expired debt, total amount of the trade debtors in Chile reached ThCh$66,872,384. A provision of ThCh$973,696 has been made for the portion of past due outstanding debt portfolio not covered by the insurance. The rest of the operations do not have credit insurance, instead mortgage guarantees are required for volume operations of wholesalers and distributors in the case of trade accounts receivables. In the case of other debtors, different types of guarantees are required according to the nature of the credit granted. Historically, uncollectible trade accounts have been lower than 0.5% of the Company’s total sales. b. Financial investments The Company has a Policy that is applicable to all of the companies of the group in order to cover credit risks for financial investments, restricting both the types of instruments as well as the institutions and degree of concentration. The companies of the group can invest in: a. Time deposits: only in banks or financial institutions that have a risk rating equal or higher than Level 1 (Fitch) or equivalent for deposits of less than 1 year and rated A (S&P) or equivalent for deposits of more than 1 year. b. Mutual funds: investments with immediate liquidity and no risk of capital (funds composed of investments at a fixed-term, current account, fixed rate Tit BCRA, negotiable obligations, Over Night, etc.) in all those counter-parties that have a rating greater than or equal to AA-(S&P) or equivalent, Type 1 Pacts and Mutual Funds, with AA+ rating (S&P) or equivalent. c. Other investment alternatives must be evaluated and authorized by the office of the Chief Financial Officer. Exchange Rate Risk The company is exposed to three types of risk caused by exchange rate volatility: a) Exposure of foreign investment: this risk originates from the translation of net investment from the functional currency of each country (Brazilian Real, Paraguayan Guaraní, and Argentine Peso) to the Parent Company’s reporting currency (Chilean Peso). Appreciation or devaluation of the Chilean Peso with respect to each of the functional currencies of each country, originates decreases and increases in equity, respectively. The Company does not hedge this risk. a.1 Investment in Argentina As of December 31, 2017, the Company maintains a net investment of ThCh$86,806,727 in Argentina, composed by the recognition of assets amounting to ThCh$190,848,657 and liabilities amounting to Ch$104,041,930. These investments accounted for 29.9% of the Company’s consolidated sales revenues As of December 31, 2017, the Argentine peso devalued by 21.8% with respect to the Chilean peso. During 2015, exchange restrictions existed in Argentina and until mid-December, there was a parallel foreign exchange market with a higher than the official exchange rate. With the arrival of the new Argentine Government, fixing exchange rate is lightened by increasing parity of the Argentine peso versus dollar at the close to values similar to those that kept the parallel market. If the exchange rate of the Argentinean Peso devalued an additional 5% with respect to the Chilean Peso, the Company would have lower income from the operation in Argentina of ThCh$1,676,795 and a decrease in equity for ThCh$3,034,568, originated by lower asset recognition of ThCh$7,976,544 and by lower liabilities recognition of ThCh$4,941,976. a.2 Investment in Brazil As of December 31, 2017, the Company maintains a net investment of ThCh$267,651,617 in Brazil, composed by the recognition of assets amounting to ThCh$796,372,514 and liabilities amounting to ThCh$528,720,897. These investments accounted for 32.6% of the Company’s consolidated sales revenues. As of December 31, 2017, the Brazilian Real devalued by 9.5% with respect to the Chilean peso. If the exchange rate of the Brazilian Real devalued an additional 5% with respect to the Chilean Peso, the Company would have lower income from the operation in Brazil of ThCh$2,012,627 and a decrease in equity of ThCh$11,455,756, originated by lower asset recognition of ThCh$34,892,774 and by lower liabilities recognition of ThCh$23,437,018. a.3 Investment in Paraguay As of December 31, 2017, the Company maintains a net investment of ThCh$232,553,018 in Paraguay, composed by the recognition of assets amounting to ThCh$264,698,133 and liabilities amounting to ThCh$32,145,115. These investments accounted for 7.6% of the Company’s consolidated sales revenues. As of December 31, 2017, the Paraguayan Guarani appreciated by 5.3% with respect to the Chilean peso. If the exchange rate of the Paraguayan Guaraní devalued by 5% with respect to the Chilean Peso, the Company would have lower income from the operations in Paraguay of ThCh$1,103,808 and a decrease in equity of ThCh$11,082,603 originated by lower asset recognition of ThCh$12,580,330 and lower liabilities recognition of ThCh$1,497,727. b) Net exposure of assets and liabilities in foreign currency: the risk stems mostly from carrying liabilities in US dollar, so the volatility of the US dollar with respect to the functional currency of each country generates a variation in the valuation of these obligations, with consequent effect on results. As of December 31, 2017, the Company maintains a net liability position totaling ThCh$351,058,536, basically composed of bonds payable and leasing liabilities for ThCh$358,227,398 offset partially by financial assets denominated in dollars for ThCh$7,168,862. Of total U.S. dollar liabilities, ThCh$327,632 correspond to leasing liabilities in Argentina. On the other hand, ThCh$357,899,766 of US dollar liabilities correspond to Chilean operations, which are exposed to the volatility of the Chilean Peso against the US dollar. In order to protect the Company from the effects on income resulting from the volatility of the Brazilian Real and the Chilean Peso against the U.S. dollar, the Company maintains derivative contracts (cross currency swaps) to cover almost 100% of US dollar-denominated financial liabilities. By designating such contracts as hedging derivatives, the effects on income for variations in the Chilean Peso and the Brazilian Real against the US dollar, are mitigated annulling its exposure to exchange rates. The Company’s net exposure as of December 31, 2017, to foreign currency over existing assets and liabilities, discounting the derivatives contracts, is an asset position of ThCh$4,095,112. c) Assets purchased or indexed to foreign currency exposure: this risk originates from purchases of raw materials and investments in Property, plant and equipment, whose values are expressed in a currency other than the functional currency of the subsidiary. Changes in the value of costs or investments can be generated through time, depending on the volatility of the exchange rate. Annual purchases of raw materials denominated or indexed in U.S. dollars, amounts to 19% of our cost of sales or approximately US$340 million. In order to minimize this risk, the Company maintains a currency hedging policy stipulating that it is necessary to enter into foreign currency derivatives contracts to lessen the effect of the exchange rate over cash expenditures expressed in US dollars, corresponding mainly to payment to suppliers of raw materials in each of the operations. This policy stipulates a 12-month forward horizon. As of December 31, 2017, US$62.8 million for future purchases have been hedged-for the following 12 months. According to the percentage of purchases of raw materials which are carried out or indexed to U.S. dollars, a possible change in the value of the US dollar by 5% in the four countries where the Company operates, and excluding derivatives contracts taken to mitigate the effect of currency volatility, keeping everything constant, would lead to a lower accumulated result amounting to ThCh$6,533,169 as of December 31, 2017. Currently, the Company has contracts to hedge this effect in Chile, Argentina, Paraguay and Brazil. Commodities risk The Company is subject to a risk of price fluctuations in the international markets mainly for sugar, aluminum and PET resin, which are inputs required to produce beverages and, as a whole, account for 35% to 40% of operating costs. Procurement and anticipated purchase contracts are made frequently to minimize and/or stabilize this risk. The possible effects in these consolidated financial statements, in case of a 5% increase in prices of its main raw materials, would be a reduction of ThCh$9,603,715 in earnings for the period ended December 31, 2017. To minimize this risk or stabilize often supply contracts and anticipated purchases are made when market conditions warrant. Liquidity risk The products we sell are mainly paid for in cash and short-term credit; therefore, the Company´s main source of financing comes from the cash flow of our operations. This cash flow has historically been sufficient to cover the investments necessary for the normal course of our business, as well as the distribution of dividends approved by the General Shareholders’ Meeting. Should additional funding be required for future geographic expansion or other needs, the main sources of financing to consider are: (i) debt offerings in the Chilean and foreign capital markets (ii) borrowings from commercial banks, both internationally and in the local markets where the Company operates; and (iii) public equity offerings The following table presents an analysis of the Company’s committed maturities for liability payments throughout the coming years: Maturity Item 1 year More than 1 More than 2 More than 3 More than 4 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Bank debt Bond payable Operating lease obligations Purchase obligations Total |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2017 | |
EXPENSES BY NATURE | |
EXPENSES BY NATURE | NOTE 23 — EXPENSES BY NATURE Other expenses by nature are: 01.01.2017 01.01.2016 01.01.2015 Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Direct production costs Payroll and employee benefits Transportation and distribution Marketing Depreciation and amortization Repairs and maintenance Other expenses Total (1) Corresponds to the addition of cost of sales, administration expenses and distribution cost. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME | |
OTHER INCOME | NOTE 24 — OTHER INCOME Other income by function is detailed as follows: 01.01.2017 01.01.2016 01.01.2015 Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Gain on disposal of Property, plant and equipment PIS/CONFINS Leasing tax recovery — — Others Total |
OTHER EXPENSES
OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER EXPENSES | |
OTHER EXPENSES | NOTE 25 — OTHER EXPENSES Other expenses are detailed as follows: 01.01.2017 01.01.2016 01.01.2015 Detail 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Contingencies and Non-operating fees Tax on bank debits Disposal and write-off of Property, plant and equipment Donations flood repairs northern Chile — — Others Total |
FINANCIAL INCOME AND EXPENSES
FINANCIAL INCOME AND EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INCOME AND EXPENSES | |
FINANCIAL INCOME AND EXPENSES | NOTE 26 — FINANCIAL INCOME AND EXPENSES Financial income and expenses are detailed as follows: a) Finance income 01.01.2017 01.01.2016 01.01.2015 Detail 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Interest income Other interest income Total b) Finance expenses 01.01.2017 01.01.2016 01.01.2015 Detail 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Bond interest Bank loan interest Other interest costs Total |
OTHER (LOSSES) AND GAIN
OTHER (LOSSES) AND GAIN | 12 Months Ended |
Dec. 31, 2017 | |
OTHER (LOSSES) AND GAIN | |
OTHER (LOSSES) AND GAIN | N OTE 27 — OTHER (LOSSES) AND GAIN Other (losses) and gains are detailed as follows: 01.01.2017 01.01.2016 01.01.2015 Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Gains (loss) on derivative transactions — ) ) (Losses) gains on ineffective portion of hedge derivatives ) ) ) Other income and (expenses) ) ) Total ) ) ) |
LOCAL AND FOREIGN CURRENCY
LOCAL AND FOREIGN CURRENCY | 12 Months Ended |
Dec. 31, 2017 | |
LOCAL AND FOREIGN CURRENCY | |
LOCAL AND FOREIGN CURRENCY | NOTE 28 — LOCAL AND FOREIGN CURRENCY Local and foreign currency balances as of December 31, 2017 and December 31, 2016, are the following: CURRENT ASSETS 12.31.2017 12.31.2016 ThCh$ ThCh$ Cash and cash equivalents US Dollars Euros Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Other financial assets Unidad de Fomento Brazilian Real Argentine Pesos — Paraguayan Guarani — Other non-financial assets US Dollars Unidad de Fomento — Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Trade and other accounts receivable, net US Dollars Euros Unidad de Fomento Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Accounts receivable from related companies US Dollars — Chilean pesos Argentine Pesos — Inventory US Dollars Euros Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Current tax assets — Brazilian Real — Total Current Assets US Dollars Euros Unidad de Fomento Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani NON-CURRENT ASSETS 12.31.2017 12.31.2016 ThCh$ ThCh$ Other financial assets Chilean pesos Brazilian Real Argentine Pesos — Other non-financial assets Unidad de Fomento — Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Trade and other receivables Unidad de Fomento Chilean pesos — Argentine Pesos Paraguayan Guarani Accounts receivable from related parties Chilean pesos Investments accounted for under the equity method Chilean pesos Brazilian Real Intangible assets other than goodwill US Dollars — Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Goodwill Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Property, plant and equipment US Dollars Euros Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Deferred tax assets — Argentine Pesos — Total Non-Current Assets US Dollars Euros Unidad de Fomento Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani As of December 31, 2017 As of December 31, 2016 CURRENT LIABILITIES Until 90 days More 90 days until 1 Total Until 90 days More 90 days until 1 Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Other financial liabilities US Dollars Unidad de Fomento Chilean peso — — Brazilian real Argentine peso Paraguayan Guaraní — — Trade and other accounts payable US Dollars — Euros — Unidad de Fomento — — Chilean peso Brazilian real — — Argentine peso Paraguayan Guaraní ) — Other Currency — — — — Trade and other accounts payable to related companies — Chilean peso — Brazilian real — — Argentine peso — — — — Provisions Chilean peso — — Paraguayan Guaraní — — Income taxes payable — Chilean peso — — Brazilian real — — — Argentine peso — — Paraguayan Guaraní — — Employee benefits current provisions — — Chilean peso — — Brazilian real — — Argentine peso — — Paraguayan Guaraní — — Other non-financial liabilities Unidad de Fomento — — — — Chilean peso Argentine peso — — Paraguayan Guaraní — — Total current liabilities US Dollars Euros — Unidad de Fomento Chilean peso Brazilian real Argentine peso Paraguayan Guaraní Other Currency — — — — As of December 31, 2017 As of December 31, 2016 NON-CURRENT LIABILITIES More than 1 More than 3 More than 5 years Total More than 1 until 3 More than 3 years More than 5 Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Other financial liabilities US$ Dollars — — — — Unidad de Fomento — Brazilian real Argentine peso — — — — — — Trade and other payables — — — — US$ Dollars — — — — Unidad de Fomento — — — — — — Chilean peso — — — — Argentine peso — — — — Provisions — — — — Chilean peso — — — — — — Brazilian real — — — — Argentine peso — — — — Deferred income tax liabilities Chilean peso — — Brazilian real — — — — Argentine peso — — — — ) — — ) Paraguayan Guaraní — — — — Post-employment benefit liabilities — Chilean peso — Paraguayan Guaraní — — — — Other non-financial liabilities — — — — — — Brazilian real — — — — — — Total non-current liabilities US$ Dollars — — Unidad de Fomento — 300,070,.935 Chilean peso — Brazilian real Argentine peso — — ) — — ) Paraguayan Guaraní — — |
THE ENVIRONMENT (unaudited)
THE ENVIRONMENT (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
THE ENVIRONMENT (unaudited) | |
THE ENVIRONMENT (unaudited) | NOTE 29 — THE ENVIRONMENT (unaudited) The Company has made disbursements totaling ThCh$ 2,184,723 for improvements in industrial processes, equipment to measure industrial waste flows, laboratory analysis, consulting on environmental impacts and others, These disbursements by country are detailed as follows: Period ended 2017 Future commitments Country Recorded as Capitalized to To be To be capitalized ThCh$ ThCh$ ThCh$ ThCh$ Chile — — — Argentina — — — Brazil — — Paraguay Total |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 30 — SUBSEQUENT EVENTS A stock purchase and sale agreement (the “Agreement”) has been entered into on January 5, 2018, by and between Embotelladora Andina S.A., Embonor S.A., Coca-Cola del Valle New Ventures, S.A., and Coca-Cola de Chile S.A., as buyers, and Inversiones Siemel S.A. as seller, In this Agreement the parties agreed to the terms and conditions for transferring 100% ownership of the shares of Comercializadora Novaverde S.A. (“Novaverde”), a company dedicated to the processing and commercialization of fruits, ice cream, vegetables and food in general, mainly under the Guallarauco brand, The Transaction does not contemplate the acquisition of the business lines of avocado sales and the presentation of General Mills. Pursuant to the Agreement materialization will occur after certain preceding conditions, including but not limited to, the authorization of the transaction by Chile’s National Economic Prosecutor’s Office, Should the transaction be materialized, the purchase price of 100% of the shares of Novaverde would be around the equivalent of 1,785,374 Unidades de Fomento, less the value of the financial debt of Novaverde at the time the transaction is materializeds. This price may be amended based on the purchase price adjustments set forth in the Agreement. Once the sale has been perfected, the shareholdings in Novaverde will be as follows: (i) Coca-Cola del Valle New Ventures, S.A. will own 2,999,994 shares, (ii) Coca-Cola de Chile S.A. will own 3 shares, (iii) Embotelladora Andina S.A. will own 2 shares; and (iv) Coca-Cola Embonor S.A. will own 1 share, As Embotelladora Andina S.A. is a shareholder of Coca-Cola del Valle New Ventures, S.A., its direct and indirect ownership in the equity capital of Novaverde, will be approximately 35%, Except for the aforementioned, there are no subsequent events that may significantly affect the Company’s consolidated financial position as of December 31, 2017. |
BASIS OF PREPARATION OF CONSO37
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Periods covered | 2.1 Periods covered These Consolidated financial statements encompass the following periods: Consolidated Statement of Financial Position: As of December 31, 2017, and December 31, 2016. Consolidated Income Statements by Function and Comprehensive Income: For the periods between January 1 and December 31, 2017, 2016 and 2015. Consolidated Statements of Direct Cash Flows: For the periods between January 1 and December 31, 2017, 2016 and 2015. Consolidated Statements of Changes in Equity : Balance and movements between January 1 and December 31, 2017, 2016 and 2015. |
Basis of preparation | 2.2 Basis of preparation The Company’s Consolidated Financial Statements were prepared in accordance with International Financial Reporting Standards (hereinafter “IFRS”) issued by the International Accounting Standards Board (hereinafter “IASB”). The consolidated financial statements are presented under the historical cost criteria, although modified by the revaluation of certain financial instruments and derivative instruments. The Company’s 2017 local statutory consolidated financial statements in spanish were approved by the Company’s Board of Directors on February 27, 2018, with subsequent events first being considered through that date. Those local statutory consolidated financial statements consisted of consolidated statement of financial position as of December 31, 2017 and 2016 along with consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows (and related disclosures), each for the two years then ended. Those consolidated financial statements were then subsequently approved by the Company’s shareholders during its April 19, 2018 meeting. Included in this 2017 consolidated financial statements are consolidated statement of financial position as of December 31, 2017 and 2016, along with consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows (and the related disclosures) for each of the three years ended December 31, 2017, 2016 and 2015. This three year presentation of operations, changes in equity and of cash flows is required by the rules of the United States Securities and Exchange Commission. The accompanying English language IFRS consolidated financial statements are consistent with the previously issued local statutory consolidated financial statements. This three year English language IFRS consolidated financial statements were approved for issuances by the Board of Directors during a session held on April 26, 2018, with subsequent events considered through this later date. These Consolidated Financial Statements have been prepared, based on accounting records kept by the Embotelladora Andina S.A. (“Parent Company”) and by other entities forming part thereof. |
Basis of consolidation | 2.3 Basis of consolidation 2.3.1 Subsidiaries These consolidated financial statements incorporate the financial statements of the Company and the companies controlled by the Company (its subsidiaries). Control is obtained when the Company has power over the investee, when it has exposure or is entitled to variable returns from its involvement in the investee and when it has the ability to use its power to influence the amount of investor returns. They include assets and liabilities as of December 31, 2017 and 2016, and results of operations for the periods between January 1 and December 31, 2017, 2016 and 2015, and cash flows for the periods between January 1 and December 31, 2017, 2016 and 2015. Income or losses from subsidiaries acquired or sold are included in the consolidated financial statements from the effective date of acquisition through the effective date of disposal, as applicable. The acquisition method is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of the subsidiary is the fair value of assets transferred, equity securities issued, liabilities incurred or assumed on the date that control is obtained. Identifiable assets acquired, and identifiable liabilities and contingencies assumed in a business combination are accounted for initially at their fair values at the acquisition date. 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 the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the income statement. All acquisition related costs are expensed in the period incurred. Intercompany transactions, balances, income, expenses and unrealized gains and losses on transactions between Group companies are eliminated. Accounting policies of subsidiaries are changed to ensure consistency with the policies adopted by the Company, where necessary. The interest of non-controlling shareholders is presented in the consolidated statement of changes in equity and the consolidated statement of income by function under “Non-Controlling Interest” and “Earnings attributable to non-controlling interests”, respectively. The consolidated financial statements include all assets, liabilities, income, expenses, and cash flows after eliminating intercompany balances and transactions. The list of subsidiaries included in the consolidation is detailed as follows: Holding control (percentage) 12-31-2017 12-31-2016 Taxpayer ID Name of the Company Direct Indirect Total Direct Indirect Total 59.144.140-K Abisa Corp S.A. — — Foreign Aconcagua Investing Ltda. 96.842.970-1 Andina Bottling Investments S.A. 96.972.760-9 Andina Bottling Investments Dos S.A. Foreign Andina Empaques Argentina S.A. — — 96.836.750-1 Andina Inversiones Societarias S.A. 76.070.406-7 Embotelladora Andina Chile S.A. — — Foreign Embotelladora del Atlántico S.A. 96.705.990-0 Envases Central S.A. — — 96.971.280-6 Inversiones Los Andes Ltda. — — Foreign Paraguay Refrescos S.A. 76.276.604-3 Red de Transportes Comerciales Ltda. Foreign Rio de Janeiro Refrescos Ltda. — — 78.536.950-5 Servicios Multivending Ltda. 78.861.790-9 Transportes Andina Refrescos Ltda. 96.928.520-7 Transportes Polar S.A. — — 76.389.720-6 Vital Aguas S.A. — — 93.899.000-k Vital Jugos S.A. 2.3.2 Investments accounted for under the equity method Associates are all entities over which the Company exercises significant influence but does not have control. Investments in associates are accounted for using the equity method of accounting. The Company’s share in profit or loss in associates subsequent to the acquisition date is recognized in the income statement. Unrealized gains in transactions between the Company and its associates are eliminated to the extent of the Company´s interests in those associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment on the asset transferred. Accounting policies of the associates are changed, where necessary, to ensure conformity with the policies adopted by the Company. |
Financial reporting by operating segment | 2.4 Financial reporting by operating segment IFRS 8 requires that entities disclose information on the results of operating segments. In general, this is information that Management and the Board of Directors use internally to assess performance of segments and allocate resources to them. Therefore, the following operating segments have been determined based on geographic location: · Chilean operations · Brazilian operations · Argentinean operations · Paraguayan operations |
Foreign currency translation | 2.5 Foreign currency translation 2.5.1 Functional currency and presentation currency Items included in the financial statements of each of the entities in the Company are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Chilean pesos, which is the parent company’s functional currency and the Company´s presentation currency. 2.5.2 Balances and transactions Foreign currency transactions are translated into the functional currency using the foreign exchange rates prevailing on the dates of the transactions. Losses and gains in foreign currency resulting from the liquidation of these transactions and the translation at the closing exchange rate of monetary assets and liabilities denominated in foreign currency are recognized in the income statements under foreign exchange rate differences, except when they correspond to cash flow hedges; in which case they are presented in the statement of comprehensive income. The exchange rates and value of the UF at the close of each of the periods presented were as follows: Exchange rate to the Chilean peso Date US$ R$ Brazilian A$ Argentine UF Unidad de Paraguayan € 12.31.2017 12.31.2016 12.31.2015 2.5.3 Translation of foreign subsidiaries The financial position and results of all entities in the Company (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities for the statement of financial position are translated at the closing exchange rate as of the reporting date; (ii) Revenue and expenses of the income statement are translated at average exchange rates for the period; and (iii) All resulting translation differences are recognized in other comprehensive income. The companies that have a functional currency different from the presentation currency of the parent company are: Company Functional currency Rio de Janeiro Refrescos Ltda. R$Brazilian Real Embotelladora del Atlántico S.A. A$Argentinean Peso Andina Empaques Argentina S.A. A$Argentinean Peso Paraguay Refrescos S.A. G$Paraguayan Guaraní In consolidation, translation differences arising from the translation of net investments in foreign entities are recognized in other comprehensive income. Exchange differences from accounts receivable, which are considered part of an equity investment, are recognized as comprehensive income net of deferred taxes, if applicable. On disposal of the investment, such translation differences are recognized in the income statement as part of the gain or loss on the disposal of the investment. |
Property, plant, and equipment | 2.6 Property, plant, and equipment Assets included in Property, plant and equipment are recognized at their historical cost or fair value on the IFRS transition date, less depreciation and cumulative impairment losses. Historical cost of Property, plant and equipment includes expenditures that are directly attributable to the acquisition of the items less government subsidies resulting from the difference between the valuation of liabilities at fair value and the government´s preferential credit rates. Historical cost also includes revaluations and price-level restatements of opening balances (attributable cost) at January 1, 2009, in accordance with the exemptions in IFRS 1. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefits associated with the items of Property, plant and equipment will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. Repairs and maintenance are charged to the income statement in the reporting period in which they are incurred. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives. The estimated useful lives by asset category are: Assets Range in years Buildings 30-50 Plant and equipment 10-20 Warehouse installations and accessories 10-30 Furniture and supplies 4-5 Motor vehicles 5-7 Other Property, plant and equipment 3-8 Bottles and containers 2-8 The residual value and useful lives of assets are reviewed and adjusted at the end of each financial statement-reporting period, if appropriate. When the value of an asset is greater than its estimated recoverable amount, the value is written down immediately to its recoverable amount. Gains and losses on disposals of property, plant, and equipment are calculated by comparing the proceeds to the carrying amount and are charged to other expenses by function. If there are items available for sale and comply with the conditions of IFRS 5 “Non-current assets held for sale and discontinued operations” are separated from Property, plant and equipment and are presented within current assets at the lower value between the book value and its fair value less selling costs. |
Intangible assets and Goodwill | 2.7 Intangible assets and Goodwill 2.7.1 Goodwill Goodwill represents the excess of the consideration transferred over the Company’s interest in the net fair value of the net identifiable assets of the subsidiary and the fair value of the non-controlling interest in the subsidiary on the acquisition date. Since goodwill is an intangible asset with indefinite useful life, it is recognized separately and tested annually for impairment. Goodwill is carried at cost less accumulated impairment losses. Gains and losses on the sale of an entity include the carrying amount of goodwill related to that entity. Goodwill is assigned to each cash generating unit (CGU) or group of cash-generating units, from where it is expected to benefit from the synergies arising from the business combination. Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internal management purposes. 2.7.2 Distribution rights Distribution rights are contractual rights to produce and/or distribute products under the Coca-Cola brand and other brands in certain territories in Argentina, Brazil, Chile and Paraguay that were acquired during Business Combination. Distribution rights are born from the process of valuation at fair value of the assets and liabilities of companies acquired in business combinations. Distribution rights have an indefinite useful life and are not amortized, as the Company believes that the agreements will be renewed indefinitely by the Coca-Cola Company with similar terms and conditions. They are subject to impairment tests on an annual basis. 2.7.3 Software Carrying amounts correspond to internal and external software development costs, which are capitalized once the recognition criteria in IAS 38, Intangible Assets , have been met. Software is amortized in administrative expenses in the consolidated income statement over a period of four years. |
Impairments of non-financial assets | 2.8 Impairments of non-financial assets Assets that have an indefinite useful life, such as intangibles related to distribution rights and goodwill, are not amortized and are tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization are tested for impairment whenever there is an event or change in circumstances indicating that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying value of the asset exceeds its recoverable amount. The recoverable amount is the greater of an asset’s fair value less costs to sell or its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). |
Financial assets | 2.9 Financial assets The Company classifies its financial assets into the following categories: financial assets at fair value through profit or loss, loans and receivables, financial assets held to maturity, and available for sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. At the close of each period, the Company assesses if there is evidence of impairment for any asset or group of financial assets. As of December 31, 2017 and 2016, there are no signs impairment in any of the Company’s financial assets. 2.9.1 Financial assets at fair value through profit or loss Fair value financial assets with changes in results are financial assets available for sale in the short term. A financial asset is classified under this category if it is acquired mainly for selling it in the short term. Assets in this category are classified in current assets. Derivatives are also categorized as held for trading unless they are designated as hedges. Gains or losses from changes in fair value of financial assets at fair value through profit and loss are recognized in the income statement under financial income or expense during the fiscal year in which they are generated. 2.9.2 Loans and receivables Loans and accounts receivable are financial assets with fixed and determinable payments that are not quoted in an active market period. Loans and receivables are not quoted in an active market. They are included in current assets, unless they are due more than 12 months from the reporting date, in which case they are classified as non-current assets. Loans and receivables are included in trade and other receivables in the consolidated statement of financial position and they are recorded at their amortized cost less a provision for impairment. An impairment is recorded on trade accounts receivable when there is objective evidence that the Company and its subsidiaries may not be able to collect the full amount according to the original terms of the receivable, based either on individual or on global aging analyses. The loss is recognized in consolidated administrative expenses. 2.9.3 Financial assets held to maturity Other financial assets correspond to bank deposits that the Company’s management has the positive intention and ability to hold until their maturity. They are recorded in current assets because they mature in less than 12 months from the reporting date and are carried at cost, which approximates their fair value considering their short-term nature. Accrued interest is recognized in the consolidated income statement under financial income. |
Derivatives financial instruments and hedging activities | 2.10 Derivatives financial instruments and hedging activities The Company and its subsidiaries use derivative financial instruments to mitigate risks relating to changes in foreign currency and exchange rates associated with raw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. 2.10.1 Derivative financial instruments designated as cash flow hedges At the inception of the transaction, the group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement within “other gains (losses)” Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currency denominated financial liabilities are translated into their functional currencies). The gain or loss relating to the effective portion of cross currency swaps hedging the effects of changes in foreign exchange rates are recognized in the consolidated income statement within “foreign exchange differences”. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement. 2.10.2 Derivative financial instruments not designated for hedging The fair value of derivative financial instruments that do not qualify for hedge accounting pursuant to IFRS are immediately recognized in the consolidated income statement under “Other income and losses”. The fair value of these derivatives is recorded under “other current financial assets” or “other current financial liabilities” in the statement of financial position.” The Company also evaluates the existence of derivatives implicitly in financial instrument contracts to determine whether their characteristics and risks are closely related to the master agreement, as stipulated by IAS 39. As of December 31, 2017, 2016 and 2015, the Company had no implicit derivatives. Fair value hierarchy The Company records assets and liabilities as of December 31, 2017 and December 31, 2016, based on its derivative foreign exchange contracts, which are classified within other financial assets (current assets and non-current) and other current financial liabilities (current and non-current financial liabilities), respectively. These contracts are carried at fair value in the statement of financial position. The Company uses the following hierarchy for determining and disclosing financial instruments at fair value by valuation method: Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (that is, as prices) or indirectly (that is, derived from prices). Level 3: Inputs for the assets or liabilities that are not based on observable market data information. During the reporting periods there were no transfers of items between fair value measurement categories. All of which were valued during the period using Level 2. |
Inventories | 2.11 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods and work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating capacity) to bring the goods to marketable condition, but it excludes interest expense. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts and supplies are stated at the lower of cost or net realizable value. Estimates are also made for obsolescence of raw materials and finished products based on turnover and age of the related goods. |
Trade receivables | 2.12 Trade receivables Trade accounts receivables and other accounts receivable are recognized initially at fair value and subsequently measured at amortized cost less provision for impairment, given their short-term nature. A provision for impairment is made when there is objective evidence that the Company may not be able to collect the full amount according to the original terms of the receivable, based either on individual or on global aging analyses. The carrying amount of the asset is reduced by the provision amount and the loss is recognized in administrative expenses in the consolidated income statement by function. |
Cash and cash equivalents | 2.13 Cash and cash equivalents Cash and cash equivalents includes cash on hand, bank balances, time deposits and other short-term highly liquid and low risk of change in value investments and mutual funds with original short-term maturities of less than 90 day. |
Other financial liabilities | 2.14 Other financial liabilities Resources obtained from financial institutions as well as the issuance of debt securities are initially recognized at fair value, net of costs incurred during the transaction. Then, liabilities are valued by accruing interests in order to equal the current value with the future value of liabilities payable, using the effective interest rate method. General and specific borrowing costs directly attributable to the acquisition, construction or production of qualified assets, considered as those that require a substantial period of time in order to get ready for their forecasted use or sale, are added to the cost of those assets until the period in which the assets are substantially ready to be used or sold. |
Government subsidies | 2.15 Government subsidies Government subsidies are recognized at fair value when it is certain that the subsidy will be received and that the Company will meet all the established conditions. Subsidies for operating costs are deferred and recognized on the income statement in the period that the operating costs are incurred. Subsidies for purchases of property, plant and equipment are deducted from the costs of the related asset in property, plant and equipment and depreciation is recognized on the income statement, on a straight-line basis during the estimated useful life of the related asset. |
Income tax | 2.16 Income tax The Company and its subsidiaries in Chile account for income tax according to the net taxable income calculated based on the rules in the Income Tax Law. Subsidiaries in other countries account for income taxes according to the tax regulations of the country in which they operate. Deferred income taxes are calculated using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements, using the tax rates that have been enacted or substantively enacted on the balance sheet date and are expected to apply when the deferred income tax asset is realized, 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 profits will be available against which the temporary differences can be utilized. The Company does not recognize deferred income taxes for temporary differences from investments in subsidiaries in which the Company can control the timing of the reversal of the temporary differences and it is probable that they will not be reversed in the near future. |
Employee benefits | 2.17 Employee benefits The Company has a provision to cover indemnities for years of service that will be paid to employees in accordance with individual and collective agreements subscribed with employees, which is recorded at actuarial value in accordance with IAS 19. Results from updated of actuarial variables are recorded within other comprehensive income in accordance with IAS 19. Additionally, the Company has retention plans for some officers, which have a provision pursuant to the guidelines of each plan. These plans grant the right to certain officers to receive a cash payment on a certain date once they have fulfilled with the required years of service. The Company and its subsidiaries have recorded a provision to account for the cost of vacations and other employee benefits on an accrual basis. These liabilities are recorded under current non-financial liabilities. |
Provisions | 2.18 Provisions Provisions for litigation and other contingencies are recognized when the Company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. 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. |
Leases | 2.19 Leases a) Operating leases Operating lease payments are recognized as an expense on a straight-line basis over the term of the lease. b) Finance leases Leases of Property, plant and equipment where the Company has substantially all the risks and rewards of ownership are classified as finance leases that are capitalized at the inception of the lease of the item of Property, plant and equipment at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges. The interest element is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. |
Deposits for returnable containers | 2.20 Deposits for returnable containers This liability comprises cash collateral, or deposit, received from customers for bottles and other returnable containers made available to them. This liability pertains to the deposit amount that is reimbursed when the customer or distributor returns the bottles and containers in good condition, together with the original invoice. The liability is estimated based on the number of bottles given to clients and distributors, the estimated number of bottles in circulation, and a historical average weighted value per bottle or containers. Deposits for returnable containers are presented as a current liability in other financial liabilities because the Company does not have legal rights to defer settlement for a period in excess of one year. However, the Company does not anticipate any material cash settlements for such amounts during the upcoming year. |
Revenue recognition | 2.21 Revenue recognition Revenues from regular activities include fair value of the consideration received or to be received for goods sold during the regular course of the Company’s activities. This revenue is presented net of VAT, reimbursements, deductions and discounts. The Company recognizes revenue when the amount of revenue can be reliably measured, and it is probable that the future economic benefits will flow to the Company. Revenues are recognized once the products are physically delivered to customers. |
Dividend payments | 2.23 Dividend payments Dividend distribution to Company shareholders is recorded as a liability in the Company’s consolidated financial statements, considering the 30% minimum dividend of the period’s earnings established by Chilean Corporate Law. |
Critical accounting estimates and judgments | 2.24 Critical accounting estimates and judgments The Company makes estimates and judgments concerning the future. Actual results may differ from previously estimated amounts. The estimates and judgments that might have a material impact on future financial statements. 2.24.1 Impairment of goodwill and intangible assets with indefinite useful lives The Company test annually whether goodwill and intangible assets with indefinite useful life (such as distribution rights) have suffered any impairment. The recoverable amounts of cash generating units are generating units are determined based on value in use calculations. The key variables used in the calculations include sales volumes and prices, discount rates, marketing expenses and other economic factors including inflation. The estimation of these variables requires a use of estimates and judgments as they are subject to inherent uncertainties; however, the assumptions are consistent with the Company’s internal planning end past results. Therefore, management evaluates, and updates estimates according to the conditions affecting the variables. If these assets are considered to have been impaired, they will be written off at their estimated fair value or future recovery value according to the discounted cash flows analysis. Discounted cash flows in the Company’s cash generating units in Chile, Brazil, Argentina and Paraguay generated a higher value than the carrying values of the respective net assets, including goodwill of the Brazilian, Argentinian and Paraguayan subsidiaries. 2.24.2 Fair Value of Assets and Liabilities IFRS requires in certain cases that assets and liabilities be recorded at their fair value. Fair value is the price that would be received for selling an asset or paid to transfer a liability in a transaction ordered between market participants at the date of measurement. The basis for measuring assets and liabilities at fair value are their current prices in an active market. For those that are not traded in an active market, the Company determines fair value based on the best information available by using valuation techniques. In the case of the valuation of intangibles recognized as a result of acquisitions from business combinations, the Company estimates the fair value based on the “multi-period excess earning method”, which involves the estimation of future cash flows generated by the intangible assets, adjusted by cash flows that do not come from these, but from other assets. The Company also applies estimations over the period during which the intangible assets will generate cash flows, cash flows from other assets, and a discount rate. Other assets acquired, and liabilities assumed in a business combination are carried at fair value using valuation methods that are considered appropriate under the circumstances. Assumptions include the depreciated cost of recovery and recent transaction values for comparable assets, among others. These valuation techniques require certain inputs to be estimated, including the estimation of future cash flows. 2.24.3 Allowances for doubtful accounts The Company evaluates the collectability of trade receivables using several factors. When the Company becomes aware of a specific inability of a customer to fulfill its financial commitments, a specific provision for doubtful accounts is estimated and recorded, which reduces the recognized receivable to the amount that the Company estimates to be able to collect. In addition to specific provisions, allowances for doubtful accounts are also determined based on historical collection history and a general assessment of trade receivables, both outstanding and past due, among other factors. 2.24.4 Useful life, residual value and impairment of property, plant, and equipment Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of those assets. Changes in circumstances, such as technological advances, changes to the Company’s business model, or changes in its capital strategy might modify the effective useful lives as compared to our estimates. Whenever the Company determines that the useful life of Property, plant and equipment might be shortened, it depreciates the excess between the net book value and the estimated recoverable amount according to the revised remaining useful life. Factors such as changes in the planned usage of manufacturing equipment, dispensers, transportation equipment and computer software could make the useful lives of assets shorter. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of any of those assets may not be recovered. The estimate of future cash flows is based, among other factors, on certain assumptions about the expected operating profits in the future. The Company’s estimation of discounted cash flows may differ from actual cash flows because of, among other reasons, technological changes, economic conditions, changes in the business model, or changes in operating profit. If the sum of the projected discounted cash flows (excluding interest) is less than the carrying amount of the asset, the asset shall be written-off to its estimated recoverable value. 2.24.5 Liabilities for deposits of returnable container The Company records a liability for deposits received in exchange for bottles and containers provided to its customers and distributors. This liability represents the amount of deposits that must be reimbursed if the customer or distributor returns the bottles and containers in good condition, together with the original invoice. This liability is estimated based on the number of bottles given on loan to customers and distributors, estimates of bottles in circulation and the weighted average historical cost per bottle or container. Management makes several assumptions in order to estimate this liability, including the number of bottles in circulation, the amount of deposit that must be reimbursed and the timing of disbursements. |
New Accounting standards (Standards, Interpretations and Amendments) effective application periods | 2.25.1 New accounting standards (Standards, Interpretations and Amendments) effective application for annual periods beginning on or after January 1, 2017. Standards and interpretations, as well as the improvements and amendments to IFRS, which have been issued, effective at the date of these financial statements, are detailed below. The Company has applied these rules concluding that they will not significantly affect the financial statements. Amendments and/or Improvements Mandatory Application Date IFRS 12 Disclosures of Interests in Other Entities January 1, 2017 IAS 7 Statements of Cash Flows January 1, 2017 IAS 12 Income Tax January 1, 2017 2.25.2 New accounting standards (Standards, Interpretations and Amendments) effective application for annual periods beginning on or after January 1, 2018. Standards and interpretations, as well as the improvements and amendments to IFRS, which have been issued, but are still not effective at the date of these financial statements, are detailed below. The Company has not performed an early application of these rules: New Standards Mandatory IFRS 9 Financial Instruments January 1, 2018 IFRS 15 Revenue from Contracts with Customers January 1, 2018 IFRIC 22 Foreign Currency Transactions and Advanced Considerations January 1, 2018 IFRS 16 Leases January 1, 2019 IFRIC 23 Uncertainty over Income Tax Treatments January 1, 2019 IFRS 9 “Financial Instruments” The final version of IFRS 9 Financial Instruments was issued in July 2014, incorporating all the phases of the IASB project to replace IAS 39 Financial Instruments: Recognition and Measurement . This standard includes new requirements based on classification and measurement principles, it introduces a “more prospective” model for expected credit losses for impairment accounting and a significantly reformed focus for hedge accounting. Entities will also have the option of early application of accounting for income and losses for changes in fair value regarding “own credit risk” for financial liabilities set at fair value with changes in profit and loss, without applying other IFRS 9 requirements. It is mandatorily effective for periods beginning on or after 1 January 2018. The adoption of the aforementioned standards, amendments and interpretations do not have a significant impact on the Company’s consolidated financial statements. IFRS 15 “Revenue from Contracts with Customers” IFRS 15 Revenue from Contracts with Customers , issued in May 2014 is a new standard applicable to all contracts with customers, except leases, financial instruments and insurance contracts. It is a joint project with the FASB to eliminate differences upon recognizing revenue between IFRS and US GAAP. This new standard pretends to improve inconsistencies and weaknesses of IAS 18 and deliver a model that will facilitate comparability of companies in different industries and regions. It grants a new model for recognizing revenue and more detailed requirements for contracts with multiple elements. It also requires more detailed disclosure. It is mandatorily effective for periods beginning on or after January 1, 2018. The standard also presents a single comprehensive model for accounting of revenue from customer contracts and replaces the most recent revenue recognition guide, including industry-specific guidance. This comprehensive model introduces a five-step approach to recognizing revenue: 1) identification of the contract; 2) Identify performance obligations in the contract; 3) Determine the price of the transaction; 4) Assign the price of the transaction to each performance obligation in the contract; 5) Recognize revenue when the entity satisfies the performance obligation. Additionally, an entity must disclose sufficient information to allow users of the financial statements to understand the nature, amount, measure of time and uncertainty of revenue and cash flows derived from contracts with customers. With regards to the reporting segment of Embotelladora Andina, revenue channels are mainly related to the sale of finished product and the delivery of promotional products, which are currently being recognized in the statement of income when the Company transfers these products to the customers. These revenue channels are supported by contracts with different retailers through traditional and modern channels, in which prices with such customers are constantly negotiated due to the high turnover of the Company’s products and in order to remain competitive in the market. The Company has completed the assessment process of the possible impacts that the adoption of IFRS 15 represents for the consolidated financial statements. As part of the process, management has concluded they have no significant impact on the Company’s consolidated financial statements. The company will use the modified retrospective transition method. The Company analyzing the presentation of certain municipal and sales taxes in the Argentinean Operation, which today are presented deducting Revenues. The gross tax amount of the Argentinean Operation amounts to ThCh$15,927,999 and represents 0.87% of Consolidated Revenues. Regarding the recognition and valuation of this tax, we have concluded that there is no impact on the Consolidated Financial Statements. IFRIC Interpretation 22 “Foreign Currency Transactions and Advanced Considerations” The Interpretation addresses the way to determine the date of the transaction in order to establish the exchange rate to be used on the initial recognition of the related asset, expense or income (or the corresponding part of these) in the de-recognition of accounts of a non-monetary asset or liability arising from the payment or collection of advanced consideration in foreign currency, for this purpose the date of the transaction corresponds to the moment in which an entity initially recognizes the non-monetary asset or liability arising from the payment or collection of the advanced consideration. If there are multiple advanced payments or collections, the entity shall determine a transaction date for each advanced consideration payment or collection. This Interpretation will be applied for annual periods beginning January 1, 2018. An entity shall disclose the application of this Interpretation to previous periods. The adoption of the aforementioned standards, amendments and interpretations do not have a significant impact on the Company’s consolidated financial statements. IFRS 16 “Leases” In January 2016, the IASB issued IFRS 16 Leases . IFRS 16 sets the definition of a lease agreement and specifies the accounting treatment of assets and liabilities arising from these contracts from the point of view of the lessor and lessee. The new standard does not differ significantly from the preceding standard, IAS 17 Leases , regarding accounting treatment from the point of view of the lessor. However, from the point of view of the lessee, the new standard requires the recognition of assets and liabilities for the majority of leasing contracts. IFRS 16 will be mandatory for annual periods beginning after January 1, 2019. Early application is permitted if adopted together with IFRS 15 Revenue from Contracts with Customers. The adoption of the aforementioned standards, amendments and interpretations do not have a significant impact on the Company’s consolidated financial statements. IFRIC 23 “Uncertainty over Income Tax Treatments” In June 2017, the IASB issued IFRIC Interpretation 23, clarifying the application of recognition and measurement criteria required by IAS 12 Income Taxes when there is uncertainty about the tax treatments. This interpretation shall be applied for annual periods beginning after January 1, 2019. The adoption of the aforementioned standards, amendments and interpretations do not have a significant impact on the Company’s consolidated financial statements. Amendments and Improvements Mandatory application IAS 28 Investments in Associates and Joint Ventures January 1, 2018 IFRS 3 Business Combinations January 1, 2019 IFRS 9 Financial Instruments January 1, 2019 IFRS 11 Joint Arrangements January 1, 2019 IAS 12 Income Taxes January 1, 2019 IAS 23 Borrowing Costs January 1, 2019 IAS 28 Investments in Associates January 1, 2019 IFRS 10 Consolidated Financial Statements To be define IAS 28 “Investments in associates and joint ventures” The amendment clarifies that an entity that is a venture capital organization, or another qualifying entity, can choose in the initial recognition to assess its investments in associates and joint ventures at fair value with changes in results. If an entity that is not itself an investment entity has an interest in an associate or joint venture that is an investment entity, it may choose to keep the measurement at fair value applied by its associate. The modifications must be applied retrospectively, and are effective beginning January 1, 2018, allowing early application. The adoption of the aforementioned standards, amendments and interpretations do not have a significant impact on the Company’s consolidated financial statements. IFRS 3 “Business Combinations” The amendments clarify that when an entity gets control of an entity that is a joint venture, the requirements for a phased business combination are applicable, including the interests previously held on the assets and liabilities of a joint venture presented at fair value. The amendments must apply to business combinations made after January 1, 2019. Early application is allowed. The entity will assess the impact of the amendment once it becomes effective. IFRS 9 “Financial Instruments — Payments with negative compensation” A debt instrument can be measured at amortized cost, cost or at fair value through another comprehensive result, provided that the contractual cash flows are only principal and interest payments on the outstanding principal capital and the instrument is carried out within the business model for that classification. Amendments to IFRS 9 aim to clarify that a financial asset meets the criterion of only principal plus interest payments regardless of the event or circumstance that causes the anticipated termination of the contract or of which party pays or receives reasonable compensation for early termination of the contract. Amendments to IFRS 9 shall apply when prepayment is approximate to unpaid capital and interest amounts in such a way as to reflect the change in reference interest rate. This implies that prepayments at fair value or for an amount including the fair value of the cost of an associated hedging instrument will normally satisfy the criterion only principal payments plus interest only if other elements of the change in fair value, such as the effects of credit risk or liquidity are not representative. Application begins January 1, 2019 and will be retrospectively performed with early adoption allowed. The Company will assess the impact of the amendment once it becomes effective. IFRS 11 “Joint Arrangements” The amendment affects joint arrangements on interests previously held in a joint operation. A participating party, but that does not have the joint control of a joint operation could gain control if the joint operation activity constitutes a business as defined by IFRS 3. The amendments clarify that the interests previously maintained in that joint operation are not re-measured at the time of the operation. The amendments shall apply to transactions in which the joint control is acquired after January 1, 2019. Early application is allowed. The Company will assess the impact of the amendment once it becomes effective. IAS 12 “Income Taxes” The amendments clarify that the income tax on dividends generated by financial instruments classified as equity are more directly linked to past transactions or events that generated distribution of profits than distribution to the owners. Therefore, an entity recognizes income tax on dividends in results, other comprehensive income or equity, according to where the entity originally recognized those transactions or past events. The amendments shall apply to dividends recognized after January 1, 2019. The Company will assess the impact of the amendment once it becomes effective. IAS 23 “Borrowing Costs” The amendments clarify that an entity treats any indebtedness originally made to develop a qualified asset as a general loan when substantially all the activities necessary to culminate that asset for use or sale are complete. Amendments should be applied beginning January 1, 2019. The Company will assess the impact of the amendment once it becomes effective. IAS 28 Investments in Associates The amendments clarify that an entity applies IFRS 9 Financial Instruments for long-term investments in associates or joint ventures for those investments that do not apply the equity method but which, in substance, is part of the net investment in the associate or joint venture. This clarification is relevant because it implies that the expected credit loss model, described in IFRS 9, applies to these long-term interests. Entities should apply the amendments retrospectively, with certain exceptions, and shall become effective beginning January 1, 2019. Early application is allowed. The Company will assess the impact of the amendment once it becomes effective. IAS 28 “Investment in Associates and Joint Ventures” and IFRS 10 “Consolidated Financial Statements” Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) address a recognized inconsistency between the requirements of IFRS 10 and IAS 28 (2011) in the accounting of the sale or contribution of goods between an investor and its associate or joint venture. The amendments, issued in September 2014, stipulate that when the transaction involves a business (whether in a subsidiary or not), all of the generated gain or loss is recognized. A partial gain or loss is recognized when the transaction involves assets that do not constitute a business, even when the assets are in a subsidiary. The mandatory date of application of these changes is to be determined because IASB plans a thorough investigation that may result in a simplified accounting of associates and joint ventures. Early adoption is permitted. The Company will assess the impact of the amendment once it becomes effective. IFRS 10 “Consolidated Financial Statements” The amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) address a recognized inconsistency between the requirements of 10 IFRS and IAS 28 (2011) in the treatment of the contribution or sale of goods between an investor and the associate or joint venture. Amendments, issued in September of 2014, established that when the transaction involves a business (both in a subsidiary or not) it recognizes all profit or loss generated. A partial gain or loss is recognized when the transaction involves assets that do not constitute a business, even when the assets are in a subsidiary. The date of mandatory application of these modifications is to be determined since IASB plans an in-depth investigation that may result in a simplification of accounting of associates and joint ventures. Immediate adoption is permitted. The Company will assess the impact of the amendment once it becomes effective. |
The Coca-Cola Company | |
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Contributions of The Coca-Cola Company | 2.22 Contributions of The Coca-Cola Company The Company receives certain discretionary contributions from The Coca-Cola Company (TCCC) mainly related to the financing of advertising and promotional programs for its products in the territories where the Company has distribution licenses. The contribution received from TCCC are recognized in the income statement after the conditions agreed with TCCC in order to become a creditor to such incentive have been fulfilled, they are recorded as a reduction in the marketing expenses included in the Administration Expenses account. Given its discretionary nature, the portion of contributions received in one period does not imply it will be repeated in the following period. |
BASIS OF PREPARATION OF CONSO38
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of the list of subsidiaries included in the consolidation | Holding control (percentage) 12-31-2017 12-31-2016 Taxpayer ID Name of the Company Direct Indirect Total Direct Indirect Total 59.144.140-K Abisa Corp S.A. — — Foreign Aconcagua Investing Ltda. 96.842.970-1 Andina Bottling Investments S.A. 96.972.760-9 Andina Bottling Investments Dos S.A. Foreign Andina Empaques Argentina S.A. — — 96.836.750-1 Andina Inversiones Societarias S.A. 76.070.406-7 Embotelladora Andina Chile S.A. — — Foreign Embotelladora del Atlántico S.A. 96.705.990-0 Envases Central S.A. — — 96.971.280-6 Inversiones Los Andes Ltda. — — Foreign Paraguay Refrescos S.A. 76.276.604-3 Red de Transportes Comerciales Ltda. Foreign Rio de Janeiro Refrescos Ltda. — — 78.536.950-5 Servicios Multivending Ltda. 78.861.790-9 Transportes Andina Refrescos Ltda. 96.928.520-7 Transportes Polar S.A. — — 76.389.720-6 Vital Aguas S.A. — — 93.899.000-k Vital Jugos S.A. |
Schedule of exchange rates and value of the UF at the close of each of the periods | Exchange rate to the Chilean peso Date US$ R$ Brazilian A$ Argentine UF Unidad de Paraguayan € 12.31.2017 12.31.2016 12.31.2015 |
Schedule of companies that have a functional currency different from the presentation currency of the parent company | Company Functional currency Rio de Janeiro Refrescos Ltda. R$Brazilian Real Embotelladora del Atlántico S.A. A$Argentinean Peso Andina Empaques Argentina S.A. A$Argentinean Peso Paraguay Refrescos S.A. G$Paraguayan Guaraní |
Schedule of estimated useful lives by asset category | Assets Range in years Buildings 30-50 Plant and equipment 10-20 Warehouse installations and accessories 10-30 Furniture and supplies 4-5 Motor vehicles 5-7 Other Property, plant and equipment 3-8 Bottles and containers 2-8 |
REPORTING BY SEGMENT (Tables)
REPORTING BY SEGMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
REPORTING BY SEGMENT | |
Schedule of company's operating segments | For the period ended December 31, 2017 Chile Argentina Brazil Paraguay Intercompany Consolidated ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Softdrinks Other beverages — Packaging — — — Net sales ) Cost of sales ) ) ) ) ) Distribution expenses ) ) ) ) — ) Administrative expenses ) ) ) ) — ) Finance income ) Finance expense ) ) ) ) ) Interest expense, net. ) ) ) — ) Share of the entity in income of associates ) ) — — ) Income tax expense ) ) ) ) — ) Other income (loss) ) ) ) ) — ) Net income of the segment reported — Depreciation and amortization — Current assets — Non-current assets — Segment assets, total — Carrying amount in associates and joint ventures accounted for using the equity method, total — — — Capital expenditures and other — Current liabilities — Non-current liabilities — Segment liabilities, total — Cash flows provided by in Operating Activities — Cash flows (used in) provided by Investing Activities ) ) ) ) — ) Cash flows (used in) provided by Financing Activities ) ) — — ) For the period ended December 31, 2016 Chile Argentina Brazil Paraguay Intercompany Consolidated ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Softdrinks Other beverages — Packaging — — — Net sales ) Cost of sales ) ) ) ) ) Distribution expenses ) ) ) ) ) Administrative expenses ) ) ) ) ) Finance income Finance expense ) ) ) ) ) Interest expense, net* ) ) — ) Share of the entity in income of associates — ) — — ) Income tax expense ) ) ) ) — ) Other income (loss) ) ) ) — ) Net income of the segment reported — Depreciation and amortization — Current assets — Non-current assets — Segment assets, total — Carrying amount in associates and joint ventures accounted for using the equity method, total — — — Capital expenditures and other — Current liabilities — Non-current liabilities ) — Segment liabilities, total — Cash flows provided by Operating Activities — Cash flows (used in) provided by Investing Activities ) ) ) ) — ) Cash flows (used in) provided by Financing Activities ) ) ) ) — ) (*) Financial expenses associated with external financing for the purchase of companies, including capital contributions are presented in this item. For the period ended December 31, 2015 Chile Argentina Brazil Paraguay Intercompany Consolidated ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Softdrinks ) Other beverages — Packaging — — — ) Net sales ) Cost of sales ) ) ) ) ) Distribution expenses ) ) ) ) — ) Administrative expenses ) ) ) ) — ) Finance income — Finance expense ) ) ) ) — ) Interest expense, net* ) ) ) — ) Share of the entity in income of associates accounted for using the equity method, total — ) — — ) Income tax expense ) ) ) ) — ) Other income (loss) ) ) ) ) — ) Net income of the segment reported — Depreciation and amortization — Current assets — Non-current assets — Segment assets, total — Carrying amount in associates and joint ventures accounted for using the equity method, total — — — Capital expenditures and other — Current liabilities — Non-current liabilities — Segment liabilities, total — Cash flows provided by in Operating Activities — Cash flows (used in) provided by Investing Activities ) ) ) ) — ) Cash flows (used in) provided by Financing Activities ) ) ) ) — ) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CASH AND CASH EQUIVALENT. | |
Schedule of cash and cash equivalents | Description 12.31.2017 12.31.2016 ThCh$ ThCh$ By item Cash Bank balances Time deposits Mutual funds Total cash and cash equivalents ThCh$ ThCh$ By currency Dollar Euro Argentine Peso Chilean Peso Paraguayan Guaraní Brazilian Real Total cash and cash equivalents |
Schedule of time deposits | Placement Institution Currency Principal Annual 12.31.2017 ThCh$ % ThCh$ 12/29/2017 Banco Santander Chilean pesos % 12/29/2017 Banco Santander Chilean pesos % 12/29/2017 Banco Santander Chilean pesos % T otal Placement Institution Currency Principal Annual 12.31.2016 ThCh$ % ThCh$ 12/7/2016 Banco Galicia Argentinean pesos % Total |
Schedule of money market mutual funds | Institution 12.31.2017 12.31.2016 ThCh$ ThCh$ Mutual fund Itaú - Chile — Mutual fund Banco Estado - Chile Fima fund Saving Plus C - Argentina — Mutual fund Itaú - Brazil Mutual fund Santander - Brazil Mutual fund Bradesco - Brazil Mutual fund Corporativo Banchile - Chile Mutual fund Banco Security - Chile Mutual fund Banco Bice - Chile — Fima fund Saving Pesos C - Argentina — Mutual fund Banco Santander - Chile — Wester Asset Institutional Cash Reserves - USA Mutual fund Larrain Vial - Chile — Mutual fund BTG - Chile Fima fund Primium B - Argentina Mutual fund Scotiabank - Chile Citi Institutional Liquid Reserves Limited. (C.GAM) — Total mutual funds |
OTHER CURRENT AND NON-CURRENT41
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | |
Schedule of other financial assets, current | a.1 Time deposits Placement Maturity Institution Currency Principal Annual rat 12.31.2017 ThCh$ % ThCh$ 08-09-2017 02-12-2018 Banco Santander - Chile Unidad de fomento % 09-25-2017 02-26-2018 BCI Unidad de fomento % 09-25-2017 05-28-2018 Banco Santander - Chile Unidad de fomento % 06-13-2017 03-15-2018 Vatorantim Brazilian reais % Subtotal a.2 Rights in Forward Contracts Rights in Forward Contracts — Forward (see details in Note 20) Subtotal Total other Financial Assets, current Placement Maturity Institution Currency Principal Annual rate 12.31.2016 ThCh$ % ThCh$ 01-15-2016 01-04-2017 Banco HSBC - Chile Unidad de fomento % 02-25-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 04-22-2016 02-13-2017 Banco HSBC - Chile Unidad de fomento % 06-24-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 08-31-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 08-31-2016 01-09-2017 Banco HSBC - Chile Unidad de fomento % 10-19-2016 02-24-2017 Banco HSBC - Chile Unidad de fomento % 11-09-2016 02-13-2017 Banco HSBC - Chile Unidad de fomento % 11-24-2016 05-08-2017 Banco HSBC - Chile Unidad de fomento % 11-24-2016 05-08-2017 Banco HSBC - Chile Unidad de fomento % 03-15-2016 03-15-2017 Banco Votoratim - Brazil Brazilian reais % Subtotal a.2 Rights in Forward Contracts Rights in Forward Contracts (see details in Note 20) a.3 Funds in Guaranty Funds in guaranty for Rofex derivative operations — Argentina (1) Total other Financial Assets, current (1) Corresponds to funds that must be restricted in accordance with the partial results of derivative operations in Argentina. |
Schedule of other financial assets, non current | b.1 Rights in forward contracts 12.31.2017 ThCh$ Rights in forward contracts (see note 20) Sub total b.2 Rights in other companies 12.31.2017 ThCh$ Rights in Ades (*) manufacturing companies Increase (decrease) in foreign currency exchange ) Subtotal Total Other Financial Assets, non-current (*) On December 27, 2016, Coca-Cola Andina confirmed to The Coca-Cola Company its decision to participate in the “AdeS” business and commercialize said products in all its franchise territories, As a result, the operation materialized on March 28, 2017, and pursuant to the agreements, implied a disbursement of US$39 million, ThCh$14,153,111 were allocated to the purchase of rights in the manufacturing company “AdeS” and ThCh$11,923,449 were allocated to distribution rights of the “AdeS” products. The rights in the acquired companies are distributed as follows: · Purchase of 13.0% interest in the Argentine company Alimentos de Soya S.A. for ThCh$9,661,283. · Purchase of 8.5% interest in the Brazilian company UBI 3 Participações Ltda. for ThCh$4,491,828. 12.31.2016 ThCh$ Derivative futures contracts Derivative futures contracts (see note 20) Total other non-current financial assets |
CURRENT AND NON-CURRENT NON-F42
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | |
Schedule of other current, non-financial assets | 12.31.2017 12.31.2016 ThCh$ ThCh$ Description Prepaid expenses Tax credit remainder — Guarantee deposit (Argentine) Disbursements of property, plant & equipment on behalf of Coca-Cola del Valle New Ventures S.A. (1) — Other current assets Total |
Schedule of other non-current, non-financial assets | 12.31.2017 12.31.2016 ThCh$ ThCh$ Description Judicial deposits (see note 21.2) Prepaid expenses Fiscal credits Advance payment to suppliers of property, plant & equipment (2) Others Total (1) Corresponds to disbursements of property, plant & equipment performed by subsidiaries of the Andina Group in property, plant & equipment that subsequently will be transferred to the equity investee Coca-Cola del Valle New Ventures S.A. (2) Corresponds to advance payments made for the construction of the new “Duque de Caxias” bottling plant in Brazil. |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER RECEIVABLES | |
Schedule of composition of trade and other receivables | 12.31.2017 12.31.2016 Trade and other receivables Assets before Allowance Commercial Assets Allowance Commercial ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Current commercial debtors Trade debtors ) ) Other current debtors ) ) Current commercial debtors ) ) Prepayments suppliers — — Other current accounts receivable ) ) Commercial debtors and other current accounts receivable ) ) Non-current accounts receivable Trade debtors — — Other non-current debtors — — Other non-current accounts receivable — — — — Non-current accounts receivable — — Trade and other receivable ) ) |
Schedule of aging analysis of trade and other receivables | 12.31.2017 12.31.2016 ThCh$ ThCh$ Up to date non-securitized portfolio until 30 days 31 and 60 days 61 and 90 days 91 and 120 days 121 and 150 days 151 and 180 days 181 and 210 days 211 and 250 days More than 250 days Total |
Schedule of current and non current trade receivables | 12.31.2017 12.31.2016 ThCh$ ThCh$ Current commercial debtors Non-current commercial debtors Total |
Schedule of movements in the allowance for doubtful accounts | 12.31.2017 12.31.2016 ThCh$ ThCh$ Opening balance Bad debt expense Provision application ) ) Change due to foreign exchange differences ) ) Movement ) Ending balance |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES | |
Schedule of composition of inventories | Details 12.31.2017 12.31.2016 ThCh$ ThCh$ Raw materials (1) Finished goods Spare parts and supplies Work in progress Other inventories Obsolescence provision (2) ) ) Total (1) Approximately 80% is composed of concentrate and sweeteners used in the preparation of beverages, as well as caps and PET supplies used in the packaging of the product. (2) The obsolescence provision is related mainly with the obsolescence of spare parts classified as inventories and to a lesser extent to finished products and raw materials. The general standard is to provision all those multi-functional spare parts without utility in rotation in the last four years prior to the technical analysis technical to adjust the provision. In the case of raw materials and finished products, the obsolescence provision is determined according to maturity. |
CURRENT AND DEFERRED INCOME T45
CURRENT AND DEFERRED INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND DEFERRED INCOME TAXES | |
Schedule of current tax assets | Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Monthly provisional payments — Tax credits (1) — Total — (1) Tax credits correspond to income tax credits on training expenses, purchase of Property, plant and equipment, and donations, and additionally income tax recoveries requested by Brazil. |
Schedule of current tax payable | Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Income tax expense Total |
Schedule of current and deferred income tax expenses | Item 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Current income tax expense Current tax adjustment previous period ) Withholding tax expense foreign subsidiaries Other current tax expense (income) ) Current income tax expense Income (expense) for the creation and reversal of current tax difference Expense (income) for deferred taxes Total income tax expense |
Schedule of the net cumulative balances of temporary differences that give rise to deferred tax assets and liabilities | 12.31.2017 12.31.2016 Temporary differences Assets Liabilities Assets Liabilities ThCh$ ThCh$ ThCh$ ThCh$ Property, plant and equipment Obsolescence provision — Employee benefits — — Post-employment benefits Tax loss carried-forwards (1) — — Tax Goodwill Brazil — — Contingency provision — — Foreign exchange differences (2) — — Allowance for doubtful accounts — — Coca-Cola incentives (Argentina) — — Assets and liabilities for placement of bonds — — Lease liabilities — — Inventories — Distribution rights — — Others Subtotal Total liabilities net — Total net movement fiscal year — — (1) Tax losses mainly associated with the subsidiary Embotelladora Andina Chile S.A. In Chile tax losses have no expiration date (2) Corresponds to differed taxes for exchange rate differences generated on the translation of debt expressed in foreign currency in the subsidiary Rio de Janeiro Refrescos Ltda. and which for tax purposes are recognized in Brazil when incurred. |
Schedule of movement in deferred income tax accounts | Item 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Opening Balance Increase (decrease) in deferred tax ) ) Increase (decrease) due to foreign currency translation ) ) Movements ) ) Ending balance |
Schedule of composition of domestic and foreign tax expense | Income tax 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Current income taxes Foreign ) ) ) Domestic ) ) ) Current income tax expense ) ) ) Deferred income taxes Foreign ) ) Domestic ) ) ) Deferred income tax expense ) ) ) Income tax expense ) ) ) |
Schedule of reconciliation between the effective tax rate and the statutory rate | Reconciliation of effective rate 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Net income before taxes Tax expense at legal rate (25.5%) ) — — Tax expense at legal rate (24.0%) — ) ) Effect of a different tax rate in other jurisdictions ) ) ) Permanent differences: Non-taxable revenues Non-deductible expenses ) ) ) Effect of tax on excess tax provision previous periods Effect of tax monetary restatement Chilean companies ) ) ) Foreign subsidiaries tax withholding expense and other legal tax debits and credits ) ) ) Adjustments to tax expense ) ) ) Tax expense at effective rate ) ) ) Effective rate % % % |
Schedule of income tax rates applicable in each jurisdiction | Rate Country 2017 2016 2015 Chile % % % Brazil % % % Argentina % % % Paraguay % % % |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Property, plant and equipment, gross Cumulative depreciation and Property, plant and equipment, net Item 12.31.2017 12.31.2016 12.31.2017 12.31.2016 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Construction in progress — — Land — — Buildings ) ) Plant and equipment ) ) Information technology ) ) Fixed facilities and accessories ) ) Vehicles ) ) Leasehold improvements ) ) Other Property, plant and equipment (1) ) ) Total ) ) (1) Other Property, plant and equipment is composed of bottles, market assets, furniture and other minor assets. |
Schedule of net balance of other property, plant and equipment | Other Property, plant and equipment 12.31.2017 12.31.2016 ThCh$ ThCh$ Bottles Marketing and promotional assets Other Property, plant and equipment Total |
Schedule of movements in property, plant and equipment | Construction Land Buildings, net Plant and IT Fixed Vehicles, net Leasehold Other, Property, plant ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance at January 1, 2017 Additions ) Disposals — — ) ) ) — ) — ) ) Transfers between items of Property, plant and equipment ) — — — Depreciation expense — — ) ) ) ) ) ) ) ) Increase (decrease) due to foreign currency translation differences ) ) ) ) ) ) ) ) Other increase (decrease) (1) — ) ) ) — ) ) ) ) Total movements ) ) ) ) ) ) ) Ending balance at December 31, 2017 (1) Mainly correspond to property, plant & equipment write-offs. Construction Land Buildings, net Plant and IT Equipment, Fixed facilities Vehicles, net Leasehold Other, Property, plant and ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance at January 1, 2016 Additions — Disposals — — ) ) — — ) — ) ) Transfers between items of Property, plant and equipment ) — — Depreciation expense — — ) ) ) ) ) ) ) ) Increase (decrease) due to foreign currency translation differences ) ) ) ) ) Other increase (decrease) (1) — — ) ) ) ) ) — ) ) Total movements ) ) ) ) Ending balance at December 31, 2016 (1) Mainly correspond to property, plant & equipment write-offs. Construction in Land Buildings, net Plant and IT Equipment, net Fixed Vehicles, net Leasehold Other, Property, plant ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance at January 1, 2015 Additions — — Disposals — — ) ) ) — ) — ) ) Transfers between items of property, plant and equipment ) — — Depreciation expense — — ) ) ) ) ) ) ) ) Increase (decrease) due to foreign currency translation differences ) ) ) ) ) ) ) ) ) ) Other increase (decrease) (1) — — ) ) ) — ) — ) ) Total movements ) ) ) ) ) ) ) Ending balance at December 31, 2015 |
RELATED PARTY DISCLOSURES (Tabl
RELATED PARTY DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY DISCLOSURES | |
Schedule of current accounts receivable between related parties | Taxpayer ID Company Relationship Country Currency 12.31.2017 12.31.2016 ThCh$ ThCh$ 96.891.720-K Embonor S.A. Related to Shareholder Chile Chilean pesos 96.517.210-2 Embotelladora Iquique S.A. Related to Shareholder Chile Chilean pesos 76.572.588-7 Coca Cola del Valle New Ventures S.A. Associate Chile Chilean pesos 96.919.980-7 Cervecería Austral S.A. Related to director Chile Dollars 77.755.610-k Comercial Patagona Ltda. Related to director Chile Chilean pesos — Foreign Servicios y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Argentine pesos — Total |
Schedule of non current accounts receivable between related parties | Taxpayer ID Company Relationship Country Currency 12.31.2017 12.31.2016 ThCh$ ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Chilean pesos Total |
Schedule of current accounts payable between related parties | Taxpayer ID Company Relationship Country of Currency 12.31.2017 12.31.2016 ThCh$ ThCh$ Foreign Recofarma do Industrias Amazonas Ltda, Related to Shareholder Brazil Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Argentine pesos — 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Chilean pesos Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil Brazilian real 86.881.400-4 Envases CMF S.A. Associate Chile Chilean pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Chilean pesos Foreign Alimentos de Soja S.A.U. Related to Shareholder Argentina Argentine pesos — Total |
Schedule of transactions between related parties | Taxpayer ID Company Relationship Country of Description of transaction Currency Cumulative ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrates Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of raw materials and other Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of raw materials Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of caps Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Sale services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of packaging Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Sale of packaging and raw materials Chilean pesos 96.891.720-K Embonor S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Purchase of raw materials and materials Chilean pesos 94.627.000-8 Parque Arauco S.A. Related to director Chile Rent of spaces Chilean pesos 99.279.000-8 Euroamerica Seguros de Vida S.A. Related to director Chile Purchase of insurance policies Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Refund and other purchases Chilean pesos Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Advertising participation payment Argentine pesos Foreign KAIK Participações Associate Brazil Refund and other purchases Brazilian real Foreign Leão Alimentos e Bebidas Ltda. Associate Brazil Purchase of products Brazilian real Foreign Coca-Cola Peru Related to Shareholder Peru Purchase of concentrate and marketing recovery U.S. dollar Foreign Sorocaba Refrescos S.A. Associate Brazil Purchase of products Brazilian real 89.862.200-2 Latam Airlines Group S.A. Related to director Chile Sale of products Chilean pesos 76.572.588-7 Coca Cola Del Valle New Ventures SA Common Shareholder Chile Sale of services and others Chilean pesos Foreign Trop Frutas do Brasil Ltda. Associate Brazil Purchase of products Brazilian real Foreign Alimentos de Soja S.A.U. Related to Shareholder Argentina Payment of fees and services Argentine pesos Taxpayer ID Company Relationship Country Description of transaction Currency Cumulative ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrate Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 76.572.588.7 Coca-Cola del Valle New Ventures S.A. Associate Chile Administrative and commercial services Chilean pesos 96.891.720-K Embonor S.A. Associate Chile Sale of packaging materials Chilean pesos 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Sale of finished products Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Brazilian real Foreign Leão Alimentos e Bebidas Ltda. Related to Shareholder Brazil Advertising participation payment Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Associate Argentina Purchase of concentrates Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Advertising participation payment Argentine pesos Foreign Coca-Cola Peru Related to director Peru Purchase of raw materials Chilean pesos Taxpayer ID Company Relationship Country Description of transaction Currency Cumulative ThCh$ 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of concentrates Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Purchase of advertising services Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Lease of water fountain Chilean pesos 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of services and others Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles Chilean pesos 86.881.400-4 Envases CMF S.A. Associate Chile Sale of packaging materials Chilean pesos 96.891.720-K Embonor S.A. Related to Shareholder Chile Sale of finished products Chilean pesos 96.517.310-2 Embotelladora Iquique S.A. Related to Shareholder Chile Sale of finished products Chilean pesos Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Purchase of concentrates Brazilian real Foreign Recofarma do Industrias Amazonas Ltda. Related to Shareholder Brazil Advertising participation payment Brazilian real Foreign Leao Alimentos e Bebidas Ltda. Associate Brazil Purchase of concentrates Brazilian real Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Purchase of concentrates Argentine pesos Foreign Servicio y Productos para Bebidas Refrescantes S.R.L. Shareholder Argentina Advertising participation payment Argentine pesos 89.996.200-1 Envases del Pacífico S.A. Related to director Chile Purchase of raw materials Chilean pesos Foreign Coca-Cola Perú Related to director Perú Sale of finished products Chilean pesos Foreign Sorocaba Refrescos S. A. Related to Shareholder Brazil Purchase of concentrates and advertising participation Brazilian real |
Schedule of Key management compensation | Description 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Executive wages, salaries and benefits Director allowances Termination of employment contracts benefits — Accrued benefit in last five years and paid during fiscal year Total |
CURRENT AND NON-CURRENT EMPLO48
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS | |
Schedule of employee benefits | Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Accrued vacations Employee remuneration payable Indemnities for years of service Total ThCh$ ThCh$ Current Non-current Total |
Schedule of movements of post-employment benefits | Movements 12.31.2017 12.31.2016 ThCh$ ThCh$ Opening balance Service costs Interest costs Net actuarial losses ) Benefits paid ) ) Total |
Schedule of actuarial assumptions | Assumptions 12.31.2017 12.31.2016 Discount rate 2.7% 2.7% Expected salary increase rate 2.0% 2.0% Turnover rate 5.4% 5.4% Mortality rate (1) RV-2009 RV-2009 Retirement age of women 60 years 60 years Retirement age of men 65 years 65 years (1) Mortality assumption tables prescribed for use by the Chilean Financial Market Commission (CMF). |
Schedule of personnel expenses | Description 12.31.2017 12.31.2016 12.30.2015 ThCh$ ThCh$ ThCh$ Wages and salaries Employee benefits Severance and post-employment benefits Other personnel expenses Total |
Schedule of number of employees (unaudited) | Description 12.31.2017 12.31.2016 12.31.2015 Number of employees Number of average employees |
INVESTMENTS IN ASSOCIATES ACC49
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |
Schedule of investments in associates using equity method of accounting | Country of Functional Carrying Value Percentage interest Taxpayer ID Name Incorporation Currency 12.31.2017 12.31.2016 12.31.2017 12.31.2016 ThCh$ ThCh$ % % 86.881.400-4 Envases CMF S.A. (1) Chile Chilean peso % % Foreign Leão Alimentos e Bebidas Ltda. (2) Brazil Brazilian real % % Foreign Kaik Participações Ltda. (2) Brazil Brazilian real % % Foreign SRSA Participações Ltda. Brazil Brazilian real % % Foreign Sorocaba Refrescos S.A. Brazil Brazilian real % % Foreign Trop Frutas do Brasil Ltda. (2) Brazil Brazilian real % % 76.572.588-7 Coca Cola del Valle New Ventures S.A. (3) Chile Chilean peso % % Total (1) In these company, regardless of the percentage of ownership interest, it was determined that no controlling interest was held, only a significant influence, given that there was not a majority vote of the Board of Directors to make strategic business decisions. (2) In these companies, regardless of the percentage of ownership interest held, the Company has significant influence, given that it has a representative on each entity’s Board of Directors. (3) On January 28, 2016, Embotelladora Andina S.A along with Coca-Cola de Chile S.A. and Coca-Cola Embonor S.A., formed the company Coca-Cola del Valle New Ventures S.A., whose main purpose will be the development and production of juices, waters and non-carbonated beverages under trade names of The Coca-Cola Company, that Andina and Coca-Cola Embonor S.A. are authorized to market and distribute in their respective franchise territories. |
Schedule of movement of investments in associates accounted for using the equity method | Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Opening Balance Variation of minimum dividends from equity investees — — ) Dividends received ) ) ) Share in operating income ) Unrealized income Other investment increases in associates (Capital Contributions) Increase (Decrease) due to foreign currency translation differences ) ) Ending Balance December 31, 2017 Embotelladora Andina Paraguay Vital Jugos Vital Aguas Envase Central Total current assests Total non-current assests Total current liabilities Total non-current liabilities Net sales Net Income December 31, 2016 Embotelladora Andina Paraguay Vital Jugos Vital Aguas Envase Central Total current assests Total non-current assests Total current liabilities Total non-current liabilities Net sales Net Income December 31, 2015 Embotelladora Andina Paraguay Vital Jugos Vital Aguas Envase Central Total current assests Total non-current assests Total current liabilities Total non-current liabilities Net sales Net Income ) ) ) |
Schedule of reconciliation of share of profit in investments in associates | Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Share of profit of investment accounted for using the equity method ) Unrealized earnings in inventory acquired from associates and not sold at the end of period, presented as a discount in the respective asset account (containers and/or inventories) ) ) ) Amortization of Fair Value in Envases CMF S.A. Income Statement Balance ) ) ) |
Summary of financial information by associates | Envases Sorocaba Kaik SRSA Leão Trop Frutas Coca-Cola del Valle ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Total assets Total liabilities — Total revenue ) — Net income (loss) of associate ) ) ) ) Reporting date 12/31/2017 12/31/2017 12/31/2017 12/31/2017 12/31/2017 12/31/2017 11/30/2017 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS AND GOODWILL | |
Schedule of intangible assets other than goodwill | 12.31.2017 12.31.2016 Gross Cumulative Net Gross Cumulative Net Detail Amount Amortization Amount Amount Amortization Amount ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Distribution rights (1) ) — Software ) ) Water rights ) ) Total ) ) (1) Correspond to the contractual rights to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile and Paraguay. Distribution rights result from the valuation process at fair value of the assets and liabilities of the companies acquired in business combinations. Production and distribution contracts are renewable for periods of 5 years with Coca-Cola. The nature of the business and renewals that Coca-Cola has permanently done on these rights, allow qualifying them as indefinite contracts. These production and distribution rights, and in conjunction with the assets that are part of the cash-generating units, are annually subjected to the impairment test. Such distribution rights are composed in the following manner and are not subject to amortization: except for the Monster rights that are amortized in the term of the agreement which is 4 years. |
Schedule of distribution rights | Distribution rights 12.31.2017 12.31.2016 ThCh$ ThCh$ Chile (excluding Metropolitan Region, Rancagua and San Antonio) Brazil (Rio de Janeiro, Espirito Santo, Ribeirão Preto and the investments in Sorocaba and Leão Alimentos e Bebidas Ltda.) Paraguay Argentina (North and South) Monster distribution rights Total |
Schedule of the movement and balances of identifiable intangible assets | 01-01-2017 to 12-31-2017 01-01-2016 to 12-31-2016 Distribution Distribution Details Rights Water rights Software Total Rights Water rights Software Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening balance Additions (1) (1) — (2) Amortization ) — ) ) — ) ) ) Other increases (decreases) (3) ) — ) ) ) ) Total (1) Corresponds to distribution rights paid in Argentina, Paraguay and Chile resulting from the transaction in which The Coca-Cola Company acquired the “AdeS” business described in previous notes. (2) During the second quarter of 2016 Embotelladora Andina S.A. began distributing of Monster products (3) Mainly corresponds to the foreign currency effect of converting foreign subsidiaries’ distribution rights into the presentation currency. |
Schedule of discount rate by country | Discount Rate 2017 2016 Argentina % % Chile % % Brazil % % Paraguay % % |
Schedule of movement in goodwill | Operating segment 01.01.2017 Additions Disposals or Foreign currency 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chilean operation — — — Brazilian operation — — ) Argentine operation — — ) Paraguayan operation — — ) Total — — ) Operating segment 01.01.2016 Additions Disposals or Foreign currency 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chilean operation — — — Brazilian operation — — Argentine operation — — ) Paraguayan operation — — ) Total — — Operating segment 01.01.2015 Additions Disposals or Foreign currency 12.31.2015 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Chilean operation — — — Brazilian operation — — ) Argentine operation — — ) Paraguayan operation — — ) Total — — ) |
OTHER CURRENT AND NON-CURRENT51
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES | |
Schedule of financial liabilities | Current 12.31.2017 12.31.2016 ThCh$ ThCh$ Bank loans Bonds payable Deposits in guarantee Derivative contract obligations (see note 20) Leasing agreements Total Non-current 12.31.2017 12.31.2016 ThCh$ ThCh$ Bank loans Bonds payable Leasing agreements Total |
Schedule of the fair value of financial assets and liabilities | Current Book Value Fair Value Book Value Fair Value ThCh$ ThCh$ ThCh$ ThCh$ Cash and cash equivalents (3) Other financial assets (3) Trade and other accounts receivable (3) Accounts receivable from related companies (3) Bank loans (1) Bonds payable (2) Deposits in guarantee (3) Derivative contract obligations (see note 20) Leasing agreements (3) Trade and other accounts payable (3) Accounts payable from related companies (3) Non-current 12.31.2017 12.31.2017 12.31.2016 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ Other financial assets (3) Trade and other accounts receivable(3) Accounts receivable from related companies (3) Bank loans (1) Bonds payable (2) Leasing agreements (3) (1) The fair values are based on discounted cash flows using market-based discount rates as of year-end and are Level 2 fair value measurements. (2) The fair value of corporate bonds is classified as Level 1 fair value measurements based on quoted prices for the Company’s obligations. (3) The fair value approximates book value considering the nature and term of the obligations. |
Bank obligations, current | Maturity Total Indebted Entity Creditor Entity Type Effective Nominal Up to 90 days at at Tax ID, Name Country Tax ID, Name Country Currency Amortization Rate Rate 90 days To 1 year 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ 91.144.000-8 Embotelladora Andina S.A. Chile 97032000-8 Banco Bilbao Viscaya Argentaria, Chile Chilean pesos Monthly % % — — 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile Unidad de fomento Semiannually % % — Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco de la Nación Argentina Argentina Argentine pesos Monthly % % — Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco Galicia y Bs. As. Argentina Argentine pesos Quarterly % % — — — Foreign Andina Empaques Argentina S.A. Argentina Foreign Banco Galicia y Bs. As. Argentina Argentine pesos Monthly % % Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco de la Nación Argentina Argentina Argentine pesos Monthly % % — — — Foreign Embotelladora del Atlántico S.A. Argentina Foreign BBBVA Banco Frances Argentina Argentine pesos Monthly % % — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Dollars Monthly % % — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Quarterly % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Semiannually % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Semiannually % % — — Total |
Bank obligations, non-current | Maturity Indebted Entity Creditor Entity More 4 Type Effective Nominal 1 year up to More 2 years More 3 years Up to 5 More 5 at Tax ID Name Country Tax ID Name Country Currency Amortization Rate Rate 2 years Up to 3 years Up to 4 years years Years 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ 96.705.990-0 Envases Central S.A. Chile 97.080.000-K Bice Chile Unidad de fomento Semiannually % % — — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Alfa Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Quarterly % % — — — — Total Maturity More than 2 More than 3 More than 4 More Indebted Entity Creditor Entity Type Effective Nominal 1 year up to years years years than 5 at Tax ID Name Country Tax ID Name Country Currency Amortization Rate Rate 2 years Up to 3 years Up to 4 years Up to 5 years Years 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Quarterly % % — — — 96.705.990-0 Envases Central S.A. Chile 97.080.000-K Banco Bice Chile Unidad de fomento Semiannually % % — — — — Total |
Bonds payable | Current Non-current Total 12.31.2017 12.31.2016 12.31.2017 12.31.2016 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Composition of bonds payable Bonds (face value) Expenses of bond issuance and discounts on placement ) ) ) ) ) ) Net balance presented in statement of financial position |
Summary of changes in liabilities arising from financing activities (Bonds Payable) | Total Cash Flows Total 01.01.2017 Interest Capital Accrued Foreign 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Bonds payable ) ) ) Total liabilities from financing activities ) ) ) |
Current and noncurrent balances | Date Face Unit of Interest final Interest Amortization of Bonds, current portion Series amount Adjustment rate Maturity Payment capital 12.31.2017 12.31.2016 ThCh$ ThCh$ CMF Registration N°640 CMF 08.23.2010 A — UF % 08.15.2017 Semiannually 02.15.2017 — CMF Registration N°254 CMF 06.13.2001 B UF % 06.01.2026 Semiannually 06.01.2018 CMF Registration N°641 08.23.2010 C UF % 08.15.2031 Semiannually 02.15.2021 CMF Registration N°759 08.20.2013 C UF % 08.16.2020 Semiannually 02.16.2018 CMF Registration N°760 08.20.2013 D UF % 08.16.2034 Semiannually 02.16.2032 CMF Registration N°760 04.02.2014 E UF % 03.01.2035 Semiannually 09.01.2032 Bonds USA — US$ % 10.01.2023 Semiannually 10.01.2023 Total current portion Bonds non-current portion CMF Registration N°254 CMF 06.13.2001 B UF % 06.01.2026 Semiannually 06.01.2018 CMF Registration N°641 08.23.2010 C UF % 08.15.2031 Semiannually 02.15.2021 CMF Registration N°759 08.20.2013 C UF % 08.16.2020 Semiannually 02.16.2018 CMF Registration N°760 08.20.2013 D UF % 08.16.2034 Semiannually 02.16.2032 CMF Registration N°760 04.02.2014 E UF % 03.01.2035 Semiannually 09.01.2032 Bonds USA — US$ % 10.01.2023 Semiannually 10.01.2023 Bonds non-current portion |
Non-current maturities | Year of maturity Total non- Series more than 1 more than 2 more than 3 More than 5 current ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ SVS Registration N°254 06.13.2001 B SVS Registration N°641 08.23.2010 C — — SVS Registration N°759 08.20.2013 C — — SVS Registration N°760 08.20.2013 D — — — SVS Registration N°760 04.02.2014 E — — — Bonds USA — — — — Total |
Ratings on bonds issued on the Chilean market | As of December 31, 2017, the values of items included in this indicator are ThCh$ Other current financial liabilities Other non-current financial liabilities (-) Other non-current financial assets (hedge derivatives) ) Consolidated Equity |
Ratings of bonds issued on the international market | As of December 31, 2017, the values of items included in this restriction are ThCh$ Consolidated assets free of collateral, mortgages or other liens (-) Other current and non-current financial assets (hedge derivatives) ) Consolidated Assets free of pledges, mortgages or other liens (adjusted) Consolidated liabilities payable not guaranteed (-) Other current and non-current financial assets (hedge derivatives) ) Unsecured Consolidated Liabilities Payable (adjusted) |
Items included in the Consolidated Financial Liabilities to Consolidated Equity calculation for Series B | As of December 31, 2017, the values of items included in this restriction are ThCh$ Other current financial liabilities Other non-current financial liabilities (-) Cash and cash equivalent ) (-) Other current financial assets ) (-) Other non-current financial assets (hedge derivatives) ) Consolidated Equity |
Items included in the Consolidated Assets to Unsecured Consolidated Liabilities calculation for Series B | As of December 31, 2017, the values of items included in this restriction are ThCh$ Consolidated assets free of collateral, mortgages or other liens (-) Other current and non-current financial assets (hedge derivatives) ) Consolidated Assets free of pledges, mortgages or other liens (adjusted) Consolidated liabilities payable not guaranteed (-) Other current and non-current financial assets (hedge derivatives) ) Unsecured Consolidated Liabilities Payable (adjusted |
Items included in the Net Financial Debt calculation | As of December 31, 2017, the values of items included in this indicator are the following: ThCh$ (+) Consolidated Ebitda between January 1 and December 31, 2017 (+) Consolidated financial income between January 1 and December 31, 2017 (-) Consolidated Ebitda between January 1 and September 30, 2016 ) |
Items included in the Unencumbered Assets to Unsecured Consolidated Liabilities calculation | As of December 31, 2017, the values of items included in this restriction are ThCh$ Other current financial liabilities Other non-current financial liabilities (-) Cash and cash equivalent ) (-) Other current financial assets ) (-) Other non-current financial assets (hedge derivatives) ) Consolidated Equity |
Items included in the Financial Net Coverage calculation | As of December 31, 2017, the values of items included in this restriction are ThCh$ Consolidated assets free of collateral, mortgages or other liens (-) Other current and non-current financial assets (hedge derivatives) ) Consolidated Assets free of pledges, mortgages or other liens (adjusted) Consolidated liabilities payable not guaranteed (-) Other current and non-current financial assets (hedge derivatives) ) Unsecured Consolidated Liabilities Payable (adjusted |
Items included in the Consolidated Financial Liabilities to Consolidated Equity calculation for Series C, D and E | Maturity Total Indebted Entity Creditor Entity Amortization Effective Nominal Up to 90 days to at At Name Country Tax ID type Type Currency Type rate rate 90 days 1 year 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Citibank Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % Embotelladora del Atlántico S.A. Argentina Foreign Tetra Pak SRL Argentina Dollars Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Bradesco Brazil Brazilian real Monthly % % — — — Total |
Items included in the Consolidated Assets to Unsecured Consolidated Liabilities calculation for Series C, D and E | Maturity Indebted Entity Creditor Entity Amortization Effective Nominal 1 year to 2 years to 3 years to 4 years to More at Name Country Tax ID Name type Currency Type rate Rate 2 years 3 years 4 years 5 years 5 years 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Citibank Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % |
Current liabilities for leasing agreements | Maturity Total Indebted Entity Creditor Entity Amortization Effective Nominal Up to 90 days to at At Name Country Tax ID type Type Currency Type rate rate 90 days 1 year 12.31.2017 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Citibank Brazil Brazilian real Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % Embotelladora del Atlántico S.A. Argentina Foreign Tetra Pak SRL Argentina Dollars Monthly % % Rio de Janeiro Refrescos Ltda. Brazil Foreign Bradesco Brazil Brazilian real Monthly % % — — — Total |
Noncurrent liabilities for leasing agreements | Maturity Indebted Entity Creditor Entity Amortization Effective Nominal 1 year to 2 years to 3 years to 4 years to More at Name Country Tax ID Name type Currency Type rate Rate 2 years 3 years 4 years 5 years 5 years 12.31.2017 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Santander Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Citibank Brazil Brazilian real Monthly % % — — — — Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % Maturity Indebted Entity Creditor Entity Amortization Effective Nominal 1 year to 2 years to 3 years to 4 years to More at Tax ID Name Country Tax, ID Name type Currency Type rate Rate 2 years 3 years 4 years 5 years 5 years 12.31.2016 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Cogeração Light Esco Brazil Brazilian real Monthly % % Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Santander Brazil Brazilian real Monthly % % — — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Itaú Brazil Brazilian real Monthly % % — — — — Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Citibank Brazil Brazilian real Monthly % % — — — — Foreign Embotelladora del Atlántico S.A. Argentina Foreign Tetra Pak SRL Argentina Dollars Monthly % % — — — — Total |
TRADE AND OTHER CURRENT ACCOU52
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | |
Schedule of trade and current accounts payable | Item 12.31.2017 12.31.2016 ThCh$ ThCh$ Trade accounts payable Withholdings tax Accounts payable Inamar Ltda. (1) Others Total Current Non-current Total |
Schedule of accruable liabilities pursuant to Company's operating leasing agreements | ThCh$ Maturity within one year Maturity between one and five years Maturity more than five years Total |
CURRENT AND NON-CURRENT PROVI53
CURRENT AND NON-CURRENT PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CURRENT AND NON-CURRENT PROVISIONS | |
Schedule of composition of provisions | Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Litigation (1) Total (1) Corresponds to the provision for probable fiscal, labor and trade contingency losses based on the opinion of our legal advisors, detailed as follows: Detail (see note 21.1) 12.31.2017 12.31.2016 ThCh$ ThCh$ Tax Contingencies Labor Contingencies Civil Contingencies Total |
Schedule of movement of provisions | 12.31.2017 12.31.2016 Description Litigation Others Total Litigation Others Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Opening Balance as of January 01 — — Additional provisions — — Increase (decrease) in existing provisions ) — ) ) — ) Payments — — Reverse unused provision (*) ) — ) ) — ) Increase (decrease) due to foreign exchange differences ) — ) — Total — — (*) During the years 2017 and 2016 there has been a reversal of provisions amounting to Th$6,769,384 and Th$2,774,703, respectively, which resulted from fines demanded by the Brazilian Treasury on the use of IPI tax credits in the Free Zone of Manaus, because of favorable rulings on the subject for Rio de Janeiro Refrescos Ltda. from the Superior Chamber of Fiscal Resources (CSRF). |
OTHER CURRENT AND NON-CURRENT54
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES | |
Schedule of other current and non-current liabilities | Description 12.31.2017 12.31.2016 ThCh$ ThCh$ Dividend payable Other Total Current Non-current — Total |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY | |
Schedule of number of shares | Number of shares subscribed Number of shares paid in Number of voting shares Series 2017 2016 2015 2017 2016 2015 2017 2016 2015 A B |
Schedule of equity | Subscribed Capital Paid-in capital Series 2017 2016 2015 2017 2016 2015 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ A B Total |
Schedule of retained earnings available for distribution as dividends | Description Event when Amount of Realized at Amount of ThCh$ ThCh$ ThCh$ Revaluation of assets parent Company Sale or impairment ) Foreign currency translation differences of investments in related companies and subsidiaries Sale or impairment Full absorption cost accounting parent Company Sale of products ) — Post-employment benefits actuarial calculation parent Company Termination of employees ) Deferred taxes complementary accounts parent Company Amortization ) — Total ) |
Schedule of dividends declared and paid | Dividend payment date Dividend Profits Ch$ per Series Ch$ per Series 2016 January Interim 2015 2016 May Final 2015 2016 August Additional Retained Earnings 2016 October Interim 2016 2017 January Interim 2016 2017 May Final 2016 2017 August Additional Retained Earnings 2017 October Interim 2017 2017 December (*) Interim 2017 (*) |
Schedule of other reserves | Description 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Polar acquisition Foreign currency translation reserves ) ) ) Cash flow hedge reserve ) ) Reserve for employee benefit actuarial gains or losses ) ) ) Legal and statutory reserves Total |
Schedule of foreign currency translation reserves | Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Brazil ) ) ) Argentina ) ) ) Paraguay ) Exchange rate differences in related companies ) ) ) Total ) ) ) |
Schedule of movement in foreign currency translation reserves | Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Brazil ) ) Argentina ) ) ) Paraguay ) ) ) Exchange rate differences in related companies ) ) Total ) ) ) |
Schedule of consolidated statements of comprehensive income | Gross Balance Tax Net Balance ThCh$ ThCh$ ThCh$ Cash flow for hedge (1) ) ) Exchange rate translation differences (1) ) ) Benefit related to defined benefit plans ) ) Total Comprehensive income as of December 31, 2017 ) ) Gross Balance Tax Net Balance ThCh$ ThCh$ ThCh$ Cash flow for hedge (1) ) ) Exchange rate translation differences (1) ) ) Benefit related to defined benefit plans ) ) Total Comprehensive income as of December 31, 2016 ) ) Gross Balance Tax Net Balance ThCh$ ThCh$ ThCh$ Cash flow for hedge (1) ) Exchange rate translation differences (1) ) ) Benefit related to defined benefit plans ) ) Total Comprehensive income as of December 31, 2015 ) ) ) (1) These concepts will be reclassified to the statements of income when it is settled. |
Schedule of movement in comprehensive income | As of December 31, 2017: Cash Flow Exchange rate Benefit ThCh$ ThCh$ ThCh$ Increase (decrease) ) ) ) Deferred taxes Reclassification to the result by function — Reclassification of deferred taxes related to other reserves ) — ) Total Changes in Equity ) ) ) Equity holders of the parent ) ) ) Non-Controlling interests — ) ) Total Changes in equity as of December 31, 2017 ) ) ) As of December 31, 2016: Cash Flow Exchange rate Benefit ThCh$ ThCh$ ThCh$ Increase (decrease) ) ) Deferred taxes ) Reclassification to the result by function — Reclassification of deferred taxes related to other reserves ) — ) Total Changes in Equity ) ) ) Equity holders of the parent ) ) Non-Controlling interests — ) ) Total Changes in equity as of December 31, 2016 ) ) ) As of December 31, 2015: Cash Flow Exchange rate Benefit ThCh$ ThCh$ ThCh$ Increase (decrease) ) ) Deferred taxes ) Reclassification to the result by function ) — Reclassification of deferred taxes related to other reserves — ) Total Changes in Equity ) ) Equity holders of the parent ) ) Non-Controlling interests — ) ) Total Changes in equity as of December 31, 2015 ) ) |
Schedule of non-controlling interests | Non-controlling Interests Ownership % Shareholders’ Equity Income Details 2017 2016 2015 December December December December December December ThCh$ ThCh$ ThCh$ ThCh $ ThCh $ ThCh $ Embotelladora del Atlántico S.A. Andina Empaques Argentina S.A. Paraguay Refrescos S.A. Vital S.A. ) Vital Aguas S.A. Envases Central S.A. ) Total |
Schedule of earnings per share | 12.31.2017 Earnings per share SERIES A SERIES B TOTAL Earnings attributable to shareholders (ThCh$) Average weighted number of shares Earnings per basic and diluted share (in Chilean pesos) 12.31.2016 Earnings per share SERIES A SERIES B TOTAL Earnings attributable to shareholders (ThCh$) Average weighted number of shares Earnings per basic and diluted share (in Chilean pesos) 12.31.2015 Earnings per share SERIES A SERIES B TOTAL Earnings attributable to shareholders (ThCh$) Average weighted number of shares Earnings per basic and diluted share (in Chilean pesos) |
DERIVATIVE ASSETS AND LIABILI56
DERIVATIVE ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE ASSETS AND LIABILITIES | |
Schedule of fair value of assets and liabilities | Fair Value Measurements at December 31, 2017 Quoted prices in active Observable Unobservable (Level 1) (Level 2) (Level 3) Total ThCh$ ThCh$ ThCh$ ThCh$ Assets Current assets Other current financial assets Current financial assets — Other non-current financial assets — — Total assets — — Liabilities Current liabilities Other current financial liabilities — — Total liabilities — — Fair Value Measurements at December 31, 2016 Quoted prices in active Observable Unobservable (Level 1) (Level 2) (Level 3) Total ThCh$ ThCh$ ThCh$ ThCh$ Assets Current assets Other current financial assets — — Other non-current financial assets — — Total assets — — Liabilities Current liabilities Other current financial liabilities — — Total liabilities — — |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONTINGENCIES AND COMMITMENTS | |
Schedule of guarantees and restricted assets | Guarantees that compromise assets including in the financial statements: Provided by Committed assets Balance pending payment on the closing date Guarantee in favor of Name Relationship Guarantee Type 12.31.2017 12.31.2016 ThCh$ ThCh$ Industria Metalúrgica Inamar Ltda. Embotelladora Andina S.A. Parent Company Land Property, plant and equipment Gas Licuado Lipigas S.A Embotelladora Andina S.A. Parent Company Cash and cash equivalents Trade and other receivables Nazira Tala Embotelladora Andina S.A. Parent Company Cash and cash equivalents Trade and other receivables — Hospital Militar Servicios Multivending Subsidiary Cash and cash equivalents Trade and other receivables Parque Arauco Servicios Multivending Subsidiary Cash and cash equivalents Trade and other receivables — Aeropuerto Nuevo Pudahuel Servicios Multivending Subsidiary Cash and cash equivalents Other receivables — Hospital FACH Servicios Multivending Subsidiary Cash and cash equivalents Other receivables — Inmob. E Invers. Supetar Ltda Transportes Polar S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets Bodegas San Francisco Ltda. Transportes Polar S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets — Maria Lobos Jamet Transportes Polar S.A. Subsidiary Cash and cash equivalents Trade and other receivables Reclamaciones Trabajadores Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current, non-financial assets Reclamaciones Civiles Y Tributarias Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current, non-financial assets Instituciones Gubernamentales Rio de Janeiro Refrescos Ltda. Subsidiary Property, plant and equipment Property, plant and equipment Distribuidora Baraldo S.H. Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Acuña Gomez Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad San Martin Mza Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets — Nicanor López Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Labarda Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad Bariloche Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad San Antonio Oeste Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad Carlos Casares Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad Chivilcoy Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Otros Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Granada Maximiliano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Cicsa Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets Locadores Varios Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets Aduana De EZEIZA Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, non-financial assets Municipalidad De Junin Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Almada Jorge Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Municipalidad De Picun Leufu Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Farias Matias Luis Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Gomez Alejandra Raquel Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Lopez Gustavo Gerardo C/Inti Saic Y Otros Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current, non-financial assets Fondo Fima Ahorro Plus C Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other current, financial assets — Fondo Firma Ahorro Pesos C Embotelladora del Atlántico S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets — Tribunal Superior De Justicia De La Provincia De Córdoba Embotelladora del Atlántico S.A. Subsidiary Cash and cash equivalents Other non-current, non-financial assets — Marcus A.Peña Paraguay Refrescos Subsidiary Building Property, plant and equipment Mauricio J Cordero C Paraguay Refrescos Subsidiary Building Property, plant and equipment José Ruoti Maltese Paraguay Refrescos Subsidiary Building Property, plant and equipment Alejandro Galeano Paraguay Refrescos Subsidiary Building Property, plant and equipment — Ana Maria Mazó Paraguay Refrescos Subsidiary Building Property, plant and equipment — Fondo Fuma Premium B Fondo Fuma Premium B Subsidiary Judicial deposit Other current, financial assets — Total Guarantees provided without obligation of assets included in the financial statements: Provided by Committed assets Amounts involved Warranty creditor Name Relationship Guarantee Type 12.31.2017 12.31.2016 ThCh$ ThCh$ Importadora Casa y Regalos Trans-Heca S.A. Subsidiary Guarantee insurance Compliance lease contract Inmobiliaria e Inversiones Gestion Activa Ltda Trans-Heca S.A. Subsidiary Guarantee insurance Compliance lease contract Inmobiliaria Portofino Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond Teléfonica Chile S.A. Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond Inmobiliaria San Martin Logista S.A Red de Transportes comerciales Ltda. Subsidiary Guarantee insurance Guarantee bond Procesos trabajadores Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Procesos administrativos Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Gobierno Federal Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Gobierno Estadual Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action HSBC Sorocaba Refrescos S.A. Associate Loan co-signers Otros Rio de Janeiro Refrescos Ltda. Subsidiary Guarantee insurance Judicial action Aduana de Ezeiza Embotelladora del Atlántico S.A. Subsidiary Bond insurance Faithful fulfillment of contract Aduana de Ezeiza Andina Empaques S.A. Subsidiary Bond insurance Faithful fulfillment of contract |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL RISK MANAGEMENT | |
Schedule of committed maturities for liability payments | Maturity Item 1 year More than 1 More than 2 More than 3 More than 4 ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Bank debt Bond payable Operating lease obligations Purchase obligations Total |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EXPENSES BY NATURE | |
Schedule of expenses by nature | 01.01.2017 01.01.2016 01.01.2015 Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Direct production costs Payroll and employee benefits Transportation and distribution Marketing Depreciation and amortization Repairs and maintenance Other expenses Total (1) Corresponds to the addition of cost of sales, administration expenses and distribution cost. |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME | |
Schedule of other income | 01.01.2017 01.01.2016 01.01.2015 Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Gain on disposal of Property, plant and equipment PIS/CONFINS Leasing tax recovery — — Others Total |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER EXPENSES | |
Schedule of other expenses | 01.01.2017 01.01.2016 01.01.2015 Detail 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Contingencies and Non-operating fees Tax on bank debits Disposal and write-off of Property, plant and equipment Donations flood repairs northern Chile — — Others Total |
FINANCIAL INCOME AND EXPENSES (
FINANCIAL INCOME AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INCOME AND EXPENSES | |
Schedule of financial income and expenses | a) Finance income 01.01.2017 01.01.2016 01.01.2015 Detail 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Interest income Other interest income Total b) Finance expenses 01.01.2017 01.01.2016 01.01.2015 Detail 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Bond interest Bank loan interest Other interest costs Total |
OTHER (LOSSES) AND GAIN (Tables
OTHER (LOSSES) AND GAIN (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER (LOSSES) AND GAIN | |
Schedule of other (losses) and gains | 01.01.2017 01.01.2016 01.01.2015 Details 12.31.2017 12.31.2016 12.31.2015 ThCh$ ThCh$ ThCh$ Gains (loss) on derivative transactions — ) ) (Losses) gains on ineffective portion of hedge derivatives ) ) ) Other income and (expenses) ) ) Total ) ) ) |
LOCAL AND FOREIGN CURRENCY (Tab
LOCAL AND FOREIGN CURRENCY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
LOCAL AND FOREIGN CURRENCY | |
Schedule of local and foreign currency - Current Assets | CURRENT ASSETS 12.31.2017 12.31.2016 ThCh$ ThCh$ Cash and cash equivalents US Dollars Euros Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Other financial assets Unidad de Fomento Brazilian Real Argentine Pesos — Paraguayan Guarani — Other non-financial assets US Dollars Unidad de Fomento — Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Trade and other accounts receivable, net US Dollars Euros Unidad de Fomento Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Accounts receivable from related companies US Dollars — Chilean pesos Argentine Pesos — Inventory US Dollars Euros Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Current tax assets — Brazilian Real — Total Current Assets US Dollars Euros Unidad de Fomento Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani |
Schedule of local and foreign currency - Non-Current Assets | NON-CURRENT ASSETS 12.31.2017 12.31.2016 ThCh$ ThCh$ Other financial assets Chilean pesos Brazilian Real Argentine Pesos — Other non-financial assets Unidad de Fomento — Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Trade and other receivables Unidad de Fomento Chilean pesos — Argentine Pesos Paraguayan Guarani Accounts receivable from related parties Chilean pesos Investments accounted for under the equity method Chilean pesos Brazilian Real Intangible assets other than goodwill US Dollars — Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Goodwill Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Property, plant and equipment US Dollars Euros Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani Deferred tax assets — Argentine Pesos — Total Non-Current Assets US Dollars Euros Unidad de Fomento Chilean pesos Brazilian Real Argentine Pesos Paraguayan Guarani |
Schedule of local and foreign currency - Current Liabilities | As of December 31, 2017 As of December 31, 2016 CURRENT LIABILITIES Until 90 days More 90 days until 1 Total Until 90 days More 90 days until 1 Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Other financial liabilities US Dollars Unidad de Fomento Chilean peso — — Brazilian real Argentine peso Paraguayan Guaraní — — Trade and other accounts payable US Dollars — Euros — Unidad de Fomento — — Chilean peso Brazilian real — — Argentine peso Paraguayan Guaraní ) — Other Currency — — — — Trade and other accounts payable to related companies — Chilean peso — Brazilian real — — Argentine peso — — — — Provisions Chilean peso — — Paraguayan Guaraní — — Income taxes payable — Chilean peso — — Brazilian real — — — Argentine peso — — Paraguayan Guaraní — — Employee benefits current provisions — — Chilean peso — — Brazilian real — — Argentine peso — — Paraguayan Guaraní — — Other non-financial liabilities Unidad de Fomento — — — — Chilean peso Argentine peso — — Paraguayan Guaraní — — Total current liabilities US Dollars Euros — Unidad de Fomento Chilean peso Brazilian real Argentine peso Paraguayan Guaraní Other Currency — — — — |
Schedule of local and foreign currency - Non-Current Liabilities | As of December 31, 2017 As of December 31, 2016 NON-CURRENT LIABILITIES More than 1 More than 3 More than 5 years Total More than 1 until 3 More than 3 years More than 5 Total ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ ThCh$ Other financial liabilities US$ Dollars — — — — Unidad de Fomento — Brazilian real Argentine peso — — — — — — Trade and other payables — — — — US$ Dollars — — — — Unidad de Fomento — — — — — — Chilean peso — — — — Argentine peso — — — — Provisions — — — — Chilean peso — — — — — — Brazilian real — — — — Argentine peso — — — — Deferred income tax liabilities Chilean peso — — Brazilian real — — — — Argentine peso — — — — ) — — ) Paraguayan Guaraní — — — — Post-employment benefit liabilities — Chilean peso — Paraguayan Guaraní — — — — Other non-financial liabilities — — — — — — Brazilian real — — — — — — Total non-current liabilities US$ Dollars — — Unidad de Fomento — 300,070,.935 Chilean peso — Brazilian real Argentine peso — — ) — — ) Paraguayan Guaraní — — |
THE ENVIRONMENT (unaudited) (Ta
THE ENVIRONMENT (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
THE ENVIRONMENT (unaudited) | |
Schedule of environmental disbursements | Period ended 2017 Future commitments Country Recorded as Capitalized to To be To be capitalized ThCh$ ThCh$ ThCh$ ThCh$ Chile — — — Argentina — — — Brazil — — Paraguay Total |
CORPORATE INFORMATION (Details)
CORPORATE INFORMATION (Details) | Dec. 31, 2017 |
Series A | Freire Group and its related companies | |
Disclosure of transactions between related parties [line items] | |
Ownership percentage with voting right | 55.68% |
BASIS OF PREPARATION OF CONSO67
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Subsidiaries (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Abisa Corp S.A | ||
List of subsidiaries | ||
Indirect holding control percentage | 99.99% | 99.99% |
Holding control percentage | 99.99% | 99.99% |
Aconcagua Investing Ltda. | ||
List of subsidiaries | ||
Direct holding control percentage | 0.71% | 0.71% |
Indirect holding control percentage | 99.28% | 99.28% |
Holding control percentage | 99.99% | 99.99% |
Andina Bottling Investments S.A | ||
List of subsidiaries | ||
Direct holding control percentage | 99.90% | 99.90% |
Indirect holding control percentage | 0.09% | 0.09% |
Holding control percentage | 99.99% | 99.99% |
Andina Bottling Investments Dos S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 99.90% | 99.90% |
Indirect holding control percentage | 0.09% | 0.09% |
Holding control percentage | 99.99% | 99.99% |
Andina Empaques Argentina S.A. | ||
List of subsidiaries | ||
Indirect holding control percentage | 99.98% | 99.98% |
Holding control percentage | 99.98% | 99.98% |
Andina Inversiones Societarias S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 99.98% | 99.98% |
Indirect holding control percentage | 0.01% | 0.01% |
Holding control percentage | 99.99% | 99.99% |
Embotelladora Andina S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 99.99% | 99.99% |
Holding control percentage | 99.99% | 99.99% |
Embotelladora del Altantico S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 0.92% | 0.92% |
Indirect holding control percentage | 99.07% | 99.07% |
Holding control percentage | 99.99% | 99.99% |
Envases Central S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 59.27% | 59.27% |
Holding control percentage | 59.27% | 59.27% |
Inversiones Los Andes Ltda. | ||
List of subsidiaries | ||
Direct holding control percentage | 99.99% | 99.99% |
Holding control percentage | 99.99% | 99.99% |
Paraguay Refrescos S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 0.08% | 0.08% |
Indirect holding control percentage | 97.75% | 97.75% |
Holding control percentage | 97.83% | 97.83% |
Red de Transportes Comerciales Ltda. | ||
List of subsidiaries | ||
Direct holding control percentage | 99.90% | 99.90% |
Indirect holding control percentage | 0.09% | 0.09% |
Holding control percentage | 99.99% | 99.99% |
Rio De Janeiro Refrescos Ltda | ||
List of subsidiaries | ||
Indirect holding control percentage | 99.99% | 99.99% |
Holding control percentage | 99.99% | 99.99% |
Servicios Multivending Ltda | ||
List of subsidiaries | ||
Direct holding control percentage | 99.90% | 99.90% |
Indirect holding control percentage | 0.09% | 0.09% |
Holding control percentage | 99.99% | 99.99% |
Transportes Andina Refrescos Ltda. | ||
List of subsidiaries | ||
Direct holding control percentage | 99.90% | 99.90% |
Indirect holding control percentage | 0.09% | 0.09% |
Holding control percentage | 99.99% | 99.99% |
Transportes Polar S.A | ||
List of subsidiaries | ||
Direct holding control percentage | 99.99% | 99.99% |
Holding control percentage | 99.99% | 99.99% |
Vital Aguas S.A. | ||
List of subsidiaries | ||
Direct holding control percentage | 66.50% | 66.50% |
Holding control percentage | 66.50% | 66.50% |
Vital Jugos S.A | ||
List of subsidiaries | ||
Direct holding control percentage | 15.00% | 15.00% |
Indirect holding control percentage | 50.00% | 50.00% |
Holding control percentage | 65.00% | 65.00% |
BASIS OF PREPARATION OF CONSO68
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign exchange rates (Details) | Dec. 31, 2017$ / $ | Dec. 31, 2017$ / ₲ | Dec. 31, 2017$ / € | Dec. 31, 2017$ / | Dec. 31, 2017$ / R$ | Dec. 31, 2017$ / $ | Dec. 31, 2016$ / $ | Dec. 31, 2016$ / ₲ | Dec. 31, 2016$ / € | Dec. 31, 2016$ / | Dec. 31, 2016$ / R$ | Dec. 31, 2016$ / $ | Dec. 31, 2015$ / $ | Dec. 31, 2015$ / ₲ | Dec. 31, 2015$ / € | Dec. 31, 2015$ / | Dec. 31, 2015$ / R$ | Dec. 31, 2015$ / $ |
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||
Exchange rates and value of the UF at the close | 614.75 | 0.1100 | 739.15 | 26,798.14 | 185.84 | 32.96 | 669.47 | 0.1160 | 705.60 | 26,347.98 | 205.42 | 42.13 | 710.16 | 0.1217 | 774.61 | 25,629.09 | 181.87 | 54.46 |
BASIS OF PREPARATION OF CONSO69
BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, plant, and equipment and Income tax and Others (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017ARS ($) | |
Dividends [Abstract] | |
Minimum percentage of dividends over the period's earnings as required by Chilean Corporate Law | 30.00% |
Buildings | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 30 years |
Buildings | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 50 years |
Plant and equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Plant and equipment | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20 years |
Warehouse installations and accessories | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Warehouse installations and accessories | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 30 years |
Furniture and supplies | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 4 years |
Furniture and supplies | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 5 years |
Motor vehicles | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 5 years |
Motor vehicles | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 7 years |
Other Property, plant and equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 3 years |
Other Property, plant and equipment | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 8 years |
Bottles and containers | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 2 years |
Bottles and containers | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 8 years |
Software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 4 years |
Argentina operation | |
Revenue | |
Gross municipal taxes | $ 15,927,999 |
Gross municipal taxes as a percentage of consolidated revenue | 0.87% |
REPORTING BY SEGMENT (Details)
REPORTING BY SEGMENT (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CLP ($)segment | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | Dec. 31, 2014CLP ($) | |
Operating segment | ||||
Number of Operating Segments | segment | 4 | |||
Softdrinks | $ 1,337,264,240 | $ 1,311,574,509 | $ 1,422,391,738 | |
Other beverages | 504,272,487 | 458,615,749 | 446,017,402 | |
Packaging | 7,341,892 | 7,269,062 | 8,985,116 | |
Net sales | 1,848,878,619 | 1,777,459,320 | 1,877,394,256 | |
Cost of sales | (1,069,024,964) | (1,033,910,027) | (1,106,706,146) | |
Distribution expenses | (192,927,875) | (183,676,895) | (202,490,792) | |
Administrative expenses | (348,199,321) | (346,202,795) | (352,600,846) | |
Finance income | 11,194,375 | 9,661,692 | 10,118,375 | |
Financial expenses | (55,220,369) | (51,374,971) | (55,669,217) | |
Interest expense, net* | (44,025,994) | (41,713,279) | (45,550,842) | |
Share of the entity in income of associates accounted for using the equity method, total | (80,360) | (262,582) | (2,327,829) | |
Income tax expense | (51,797,634) | (48,807,093) | (41,642,562) | |
Other income (loss) | (23,821,746) | (30,837,538) | (37,977,313) | |
Net income | 119,000,725 | 92,049,111 | 88,097,926 | |
Depreciation and amortization | 99,163,891 | 97,334,452 | 100,632,332 | |
Current assets | 484,010,050 | 552,742,397 | 547,409,856 | |
Non-current assets | 1,630,849,417 | 1,646,367,350 | 1,661,951,168 | |
Total Assets | 2,114,859,467 | 2,199,109,747 | 2,209,361,024 | |
Carrying amount in associates and joint ventures accounted for using the equity method, total | 86,809,069 | 77,197,781 | 54,190,546 | $ 66,050,213 |
Capital expenditures and other | 210,504,402 | 145,804,060 | 113,314,597 | |
Current liabilities | 428,287,322 | 419,534,854 | 380,574,210 | |
Non-current liabilities | 873,338,796 | 937,404,866 | 977,252,514 | |
Total liabilities | 1,301,626,117 | 1,356,939,720 | 1,357,826,724 | |
Cash flows provided by in Operating Activities | 247,960,348 | 223,446,560 | 264,909,230 | |
Cash flows (used in) provided by Investing Activities | (168,831,410) | (113,916,317) | (103,131,070) | |
Cash flows (used in) provided by Financing Activities | (78,345,770) | (98,224,525) | (98,560,377) | |
Geography Eliminations [Member] | ||||
Operating segment | ||||
Softdrinks | (96,999) | (334,784) | (281,091) | |
Packaging | (1,860,876) | (1,843,406) | (1,402,569) | |
Net sales | (1,957,875) | (2,178,190) | (1,683,660) | |
Cost of sales | 1,957,875 | 2,178,190 | 1,683,660 | |
Finance income | (16,813,279) | |||
Financial expenses | 16,813,279 | |||
Chile operation | Operating segments | ||||
Operating segment | ||||
Softdrinks | 391,629,010 | 391,479,133 | 375,993,430 | |
Other beverages | 160,244,448 | 148,948,285 | 138,739,166 | |
Net sales | 551,873,458 | 540,427,418 | 514,732,596 | |
Cost of sales | (328,579,003) | (319,213,825) | (309,387,177) | |
Distribution expenses | (54,777,094) | (52,540,986) | (51,642,087) | |
Administrative expenses | (110,969,260) | (117,615,991) | (105,959,018) | |
Finance income | 19,057,630 | 2,426,279 | 1,859,795 | |
Financial expenses | (32,594,796) | (16,262,215) | (16,699,299) | |
Interest expense, net* | (13,537,166) | (13,835,936) | (14,839,504) | |
Share of the entity in income of associates accounted for using the equity method, total | 246,084 | 717,947 | 777,620 | |
Income tax expense | (16,871,257) | (19,763,700) | (14,949,823) | |
Other income (loss) | (11,312,509) | (13,481,333) | (15,363,727) | |
Net income | 16,073,253 | 4,693,594 | 3,368,880 | |
Depreciation and amortization | 42,688,326 | 43,619,318 | 40,083,270 | |
Current assets | 223,245,173 | 251,357,854 | 256,380,151 | |
Non-current assets | 636,482,010 | 644,817,201 | 668,605,326 | |
Total Assets | 859,727,183 | 896,175,055 | 924,985,477 | |
Carrying amount in associates and joint ventures accounted for using the equity method, total | 33,789,538 | 23,854,602 | 17,793,784 | |
Capital expenditures and other | 64,480,973 | 47,755,389 | 50,042,740 | |
Current liabilities | 169,508,083 | 137,438,744 | 81,766,688 | |
Non-current liabilities | 463,997,113 | 509,625,208 | 571,635,493 | |
Total liabilities | 633,505,196 | 647,063,952 | 653,402,181 | |
Cash flows provided by in Operating Activities | 79,451,122 | 71,077,982 | 105,897,100 | |
Cash flows (used in) provided by Investing Activities | (49,677,671) | (15,781,118) | (40,431,754) | |
Cash flows (used in) provided by Financing Activities | (91,800,089) | (23,591,062) | (50,804,304) | |
Argentina operation | Operating segments | ||||
Operating segment | ||||
Softdrinks | 444,872,352 | 424,427,824 | 523,460,939 | |
Other beverages | 99,712,939 | 83,518,724 | 93,409,514 | |
Packaging | 9,202,768 | 9,112,468 | 10,387,685 | |
Net sales | 553,788,059 | 517,059,016 | 627,258,138 | |
Cost of sales | (294,370,581) | (279,308,400) | (351,139,902) | |
Distribution expenses | (87,032,428) | (80,066,734) | (97,485,454) | |
Administrative expenses | (106,504,163) | (97,788,860) | (115,611,438) | |
Finance income | 2,116,590 | 1,095,411 | 1,669,559 | |
Financial expenses | (4,663,527) | (587,216) | (3,916,370) | |
Interest expense, net* | (2,546,937) | 508,195 | (2,246,811) | |
Share of the entity in income of associates accounted for using the equity method, total | (243) | |||
Income tax expense | (17,683,875) | (17,427,278) | (16,740,817) | |
Other income (loss) | (10,441,173) | (8,284,072) | (9,902,996) | |
Net income | 35,208,659 | 34,691,867 | 34,130,720 | |
Depreciation and amortization | 17,648,018 | 16,445,143 | 21,171,806 | |
Current assets | 97,529,488 | 115,280,140 | 111,228,338 | |
Non-current assets | 96,532,150 | 98,810,807 | 102,027,611 | |
Total Assets | 194,061,638 | 214,090,947 | 213,255,949 | |
Capital expenditures and other | 40,347,989 | 37,029,524 | 30,056,170 | |
Current liabilities | 105,886,744 | 134,624,014 | 113,185,338 | |
Non-current liabilities | 1,368,167 | (1,981,066) | 6,708,979 | |
Total liabilities | 107,254,911 | 132,642,948 | 119,894,317 | |
Cash flows provided by in Operating Activities | 38,904,028 | 54,162,992 | 83,290,552 | |
Cash flows (used in) provided by Investing Activities | (40,344,994) | (37,017,204) | (28,732,653) | |
Cash flows (used in) provided by Financing Activities | 16,891,759 | (17,777,191) | (15,529,951) | |
Brazil operation | Operating segments | ||||
Operating segment | ||||
Softdrinks | 387,545,053 | 389,048,385 | 417,508,814 | |
Other beverages | 216,352,694 | 201,097,188 | 189,538,968 | |
Net sales | 603,897,747 | 590,145,573 | 607,047,782 | |
Cost of sales | (362,686,353) | (359,156,149) | (369,212,113) | |
Distribution expenses | (43,483,958) | (44,107,337) | (46,571,390) | |
Administrative expenses | (109,095,660) | (109,345,331) | (109,802,964) | |
Finance income | 6,575,528 | 5,800,712 | 6,239,526 | |
Financial expenses | (34,767,713) | (34,504,760) | (35,021,529) | |
Interest expense, net* | (28,192,185) | (28,704,048) | (28,782,003) | |
Share of the entity in income of associates accounted for using the equity method, total | (326,201) | (980,529) | (3,105,449) | |
Income tax expense | (13,719,506) | (8,911,762) | (6,887,666) | |
Other income (loss) | (1,855,039) | (9,322,611) | (10,809,496) | |
Net income | 44,538,845 | 29,617,806 | 31,876,701 | |
Depreciation and amortization | 27,879,514 | 25,666,094 | 26,572,048 | |
Current assets | 132,815,545 | 150,820,924 | 145,809,121 | |
Non-current assets | 663,556,969 | 659,123,444 | 631,923,188 | |
Total Assets | 796,372,514 | 809,944,368 | 777,732,309 | |
Carrying amount in associates and joint ventures accounted for using the equity method, total | 53,019,531 | 53,343,179 | 36,396,762 | |
Capital expenditures and other | 91,198,657 | 51,779,625 | 25,745,746 | |
Current liabilities | 135,595,155 | 130,279,607 | 164,173,404 | |
Non-current liabilities | 393,125,740 | 413,749,384 | 381,506,922 | |
Total liabilities | 528,720,895 | 544,028,991 | 545,680,326 | |
Cash flows provided by in Operating Activities | 98,783,329 | 67,963,682 | 66,272,643 | |
Cash flows (used in) provided by Investing Activities | (64,331,960) | (51,873,047) | (29,150,493) | |
Cash flows (used in) provided by Financing Activities | (3,437,442) | (36,806,173) | (31,576,973) | |
Paraguay operation | Operating segments | ||||
Operating segment | ||||
Softdrinks | 113,314,824 | 106,953,951 | 105,709,646 | |
Other beverages | 27,962,406 | 25,051,552 | 24,329,754 | |
Net sales | 141,277,230 | 132,005,503 | 130,039,400 | |
Cost of sales | (85,346,902) | (78,409,843) | (78,650,614) | |
Distribution expenses | (7,634,395) | (6,961,838) | (6,791,861) | |
Administrative expenses | (21,630,238) | (21,452,613) | (21,227,426) | |
Finance income | 257,906 | 339,290 | 349,495 | |
Financial expenses | (7,612) | (20,780) | (32,019) | |
Interest expense, net* | 250,294 | 318,510 | 317,476 | |
Income tax expense | (3,522,996) | (2,704,353) | (3,064,256) | |
Other income (loss) | (213,025) | 250,478 | (1,901,094) | |
Net income | 23,179,968 | 23,045,844 | 18,721,625 | |
Depreciation and amortization | 10,948,033 | 11,603,897 | 12,805,208 | |
Current assets | 30,419,844 | 35,283,479 | 33,992,246 | |
Non-current assets | 234,278,288 | 243,615,898 | 259,395,043 | |
Total Assets | 264,698,132 | 278,899,377 | 293,387,289 | |
Capital expenditures and other | 14,476,783 | 9,239,522 | 7,469,941 | |
Current liabilities | 17,297,339 | 17,192,489 | 21,448,780 | |
Non-current liabilities | 14,847,776 | 16,011,340 | 17,401,120 | |
Total liabilities | 32,145,115 | 33,203,829 | 38,849,900 | |
Cash flows provided by in Operating Activities | 30,821,869 | 30,241,904 | 9,448,935 | |
Cash flows (used in) provided by Investing Activities | $ (14,476,785) | (9,244,948) | (4,816,170) | |
Cash flows (used in) provided by Financing Activities | $ (20,050,099) | $ (649,149) |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | ||||
Cash | $ 139,835 | $ 361,797 | ||
Bank balances | 29,234,531 | 27,536,924 | ||
Time deposit | 10,616,688 | 1,879 | ||
Mutual funds | 96,251,062 | 113,363,280 | ||
Total cash and cash equivalents | 136,242,116 | 141,263,880 | $ 129,160,939 | $ 79,514,434 |
Dollar | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | 6,973,298 | 53,073,628 | ||
Euros | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | 17,245 | 4,926 | ||
Argentine Peso | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | 19,681,449 | 5,105,633 | ||
Chilean Peso | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | 80,985,719 | 48,891,546 | ||
Paraguayan Guaran | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | 6,804,997 | 8,115,946 | ||
Brazilian Real | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | $ 21,779,408 | $ 26,072,201 |
CASH AND CASH EQUIVALENTS - Tim
CASH AND CASH EQUIVALENTS - Time deposits (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalent [Line items] | ||
Time Deposit | $ 10,616,688 | $ 1,879 |
Banco Santander 2.52 percent 12-29-2017 | Chilean Peso | ||
Cash and cash equivalent [Line items] | ||
Principal | $ 7,500,000 | |
Annual rate | 2.52% | |
Time Deposit | $ 7,516,275 | |
Banco Santander 2.40 Percent 2,700,000 Principal Amount 12-29-2017 | Chilean Peso | ||
Cash and cash equivalent [Line items] | ||
Principal | $ 2,700,000 | |
Annual rate | 2.40% | |
Time Deposit | $ 2,700,360 | |
Banco Santander 2.40 Percent 400,000 Principal Amount 12-29-2017 | Chilean Peso | ||
Cash and cash equivalent [Line items] | ||
Principal | $ 400,000 | |
Annual rate | 2.40% | |
Time Deposit | $ 400,053 | |
Banco Galicia, 12/7/2016 | Argentine Peso | ||
Cash and cash equivalent [Line items] | ||
Principal | $ 1,853 | |
Annual rate | 17.00% | |
Time Deposit | $ 1,879 |
CASH AND CASH EQUIVALENTS - Mon
CASH AND CASH EQUIVALENTS - Money Market (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Total mutual fund | $ 96,251,062 | $ 113,363,280 |
Mutual fund Ita - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 1,500,306 | |
Mutual fund Banco Estado - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 9,002,000 | 14,375,037 |
Fima fund Saving Plus C-Argentina | ||
Cash and cash equivalents | ||
Total mutual fund | 8,275,073 | |
Mutual fund Ita - Brasil | ||
Cash and cash equivalents | ||
Total mutual fund | 4,922,923 | 9,097,387 |
Mutual fund Santander - Brasil | ||
Cash and cash equivalents | ||
Total mutual fund | 4,748,368 | 6,287,332 |
Mutual fund Bradesco - Brasil | ||
Cash and cash equivalents | ||
Total mutual fund | 5,046,882 | 6,299,734 |
Mutual fund Corporativo Banchile - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 17,645,940 | 6,305,390 |
Mutual fund Banco Security - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 14,242,343 | 5,214,179 |
Mutual fund Banco Bice - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 4,616,379 | |
Fima fund Saving Pesos C-Argentina | ||
Cash and cash equivalents | ||
Total mutual fund | 8,308,664 | |
Mutual fund Banco Santander - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 8,242,619 | |
Wester Asset Institutional Cash Reserves - USA | ||
Cash and cash equivalents | ||
Total mutual fund | 3,740,526 | 46,207,447 |
Mutual fund Larrain Vial-Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 6,349,486 | |
Mutual fund BTG-Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 5,823,608 | |
Fund Fima Premium B - Argentina | ||
Cash and cash equivalents | ||
Total mutual fund | 1,495,556 | 3,717,158 |
Mutual fund Scotiabank - Chile | ||
Cash and cash equivalents | ||
Total mutual fund | 5,878,523 | $ 1,500,312 |
Citi Institutional Liquid Reserves Limited (CGAM) | ||
Cash and cash equivalents | ||
Total mutual fund | $ 771,170 |
OTHER CURRENT AND NON-CURRENT74
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS (Details) - CLP ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Maturity term | 90 days | |
Time deposit | $ 13,669,142 | $ 53,889,707 |
Rights in Forward Contracts (see details in Note 20) | 4,678,343 | |
Total other Financial Assets, current | 14,138,161 | 60,152,627 |
Forward contract | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Rights in Forward Contracts (see details in Note 20) | 469,019 | |
Unidad de fomento | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Total other Financial Assets, current | 13,647,997 | 53,868,075 |
Unidad de fomento | Banco Santander-Chile 08-09-2017 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 7,000,000 | |
Annual rate | 1.04% | |
Time deposit | $ 7,082,167 | |
Unidad de fomento | BCI, 09-25-2017 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 1,500,000 | |
Annual rate | 1.36% | |
Time deposit | $ 1,516,454 | |
Unidad de fomento | Banco Santander-Chile, 09-25-2017 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 5,000,000 | |
Annual rate | 0.94% | |
Time deposit | $ 5,049,376 | |
Unidad de fomento | Banco HSBC, Chile 01152016 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 5,000,000 | |
Annual rate | 1.35% | |
Time deposit | $ 5,207,907 | |
Unidad de fomento | Banco HSBC, Chile 02252016 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 6,000,000 | |
Annual rate | 1.09% | |
Time deposit | $ 6,209,086 | |
Unidad de fomento | Banco HSBC, Chile 04222016 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 5,000,000 | |
Annual rate | 1.25% | |
Time deposit | $ 5,135,282 | |
Unidad de fomento | Banco HSBC, Chile 06242016 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 5,000,000 | |
Annual rate | 1.11% | |
Time deposit | $ 5,088,450 | |
Unidad de fomento | Banco HSBC, Chile 08312016 - Placement 1 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 7,000,000 | |
Annual rate | 1.50% | |
Time deposit | $ 7,072,864 | |
Unidad de fomento | Banco HSBC, Chile 08312016 - Placement 2 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 3,000,000 | |
Annual rate | 1.24% | |
Time deposit | $ 3,028,570 | |
Unidad de fomento | Banco HSBC, Chile 10192016 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 2,000,000 | |
Annual rate | 2.30% | |
Time deposit | $ 2,017,503 | |
Unidad de fomento | Banco HSBC, Chile 11092016 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 5,000,000 | |
Annual rate | 3.48% | |
Time deposit | $ 5,038,755 | |
Unidad de fomento | Banco HSBC, Chile 11242016 - Placement 1 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 10,000,000 | |
Annual rate | 2.85% | |
Time deposit | $ 10,046,439 | |
Unidad de fomento | Banco HSBC, Chile 11242016 - Placement 2 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 5,000,000 | |
Annual rate | 2.85% | |
Time deposit | $ 5,023,219 | |
Brazilian Real | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Total other Financial Assets, current | 366,595 | 4,699,975 |
Brazilian Real | Vatorantim, 06-13-2017 | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 20,013 | |
Annual rate | 8.82% | |
Time deposit | $ 21,145 | |
Brazilian Real | Banco Votoratim | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Principal | $ 19,926 | |
Annual rate | 8.82% | |
Time deposit | $ 21,632 | |
Argentina | ||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||
Rights in Forward Contracts (see details in Note 20) | $ 469,019 | |
Funds in guaranty for Rofez derivative operations - Argentina (1) | $ 1,584,577 |
OTHER CURRENT AND NON-CURRENT75
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS- Non current (Details) $ in Thousands, $ in Millions | Mar. 28, 2017CLP ($) | Mar. 28, 2017USD ($) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) |
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Rights in forward contracts (see note 20) | $ 61,898,833 | |||
Rights in Ades(*) manufacturing companies | 14,153,111 | |||
Increase (decrease) in foreign currency exchange | (1,792,859) | |||
Total other non-current financial assets | 74,259,085 | $ 80,180,880 | ||
Implied disbursement | $ 39 | |||
Rights allocation | $ 14,153,111 | 14,831,164 | 3,664,866 | |
Alimentos de Soya S.A | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Percentage of interest acquired | 13.00% | 13.00% | ||
Purchase of equity interest | $ 9,661,283 | |||
UBI 3 Participacoes Ltda | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Percentage of interest acquired | 8.50% | 8.50% | ||
Purchase of equity interest | $ 4,491,828 | |||
Forward contract | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Total other non-current financial assets | 61,898,833 | |||
Rights in other companies | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Total other non-current financial assets | 12,360,252 | |||
Derivative futures contracts | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Derivative futures contracts | 80,180,880 | |||
Water rights | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Rights allocation | 975 | |||
Distribution rights | ||||
OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS | ||||
Rights allocation | $ 11,923,449 | $ 11,923,449 | $ 821,577 |
CURRENT AND NON-CURRENT NON-F76
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS - Other current, non-financial assets (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | ||
Prepaid expenses | $ 4,839,465 | $ 5,689,560 |
Tax credit remainder | 169,120 | |
Other current assets | 596,668 | 909,256 |
Total | 5,611,861 | 8,601,209 |
Argentina | ||
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | ||
Guarantee deposit (Argentine) | $ 6,608 | 11,226 |
Associate | ||
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | ||
Disbursements of property, plant & equipment on behalf of Coca-Cola del Valle New Ventures S.A. (1) | $ 1,991,167 |
CURRENT AND NON-CURRENT NON-F77
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS - Other non-current, non-financial assets (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS | ||
Judicial deposits (see note 21.2) | $ 18,393,546 | $ 19,112,974 |
Prepaid expenses | 1,113,154 | 1,613,989 |
Fiscal credits | 2,287,051 | 2,975,706 |
Advance payment to suppliers of property, plant & equipment (2) | 24,269,901 | 11,173,966 |
Others | 1,330,693 | 370,188 |
Total | $ 47,394,345 | $ 35,246,823 |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current commercial debtors | ||
Trade debtors | $ 154,405,224 | $ 152,702,806 |
Other current debtors | 28,189,937 | 28,095,796 |
Current commercial debtors | 182,595,161 | 180,798,602 |
Prepayments suppliers | 8,057,544 | 8,776,211 |
Other current accounts receivable | 631,975 | 949,541 |
Commercial debtors and other current accounts receivable | 191,284,680 | 190,524,354 |
Non-current accounts receivable | ||
Trade debtors | 58,336 | 83,881 |
Other non-current debtors | 2,335,322 | 3,443,851 |
Other non-current accounts receivable | 2,193 | |
Non-current accounts receivable | 2,395,851 | 3,527,732 |
Trade and other receivable | 193,680,531 | 194,052,086 |
Assets before provisions. | ||
Current commercial debtors | ||
Trade debtors | 157,926,958 | 155,792,966 |
Other current debtors | 31,015,390 | 30,923,474 |
Current commercial debtors | 188,942,348 | 186,716,440 |
Prepayments suppliers | 8,057,544 | 8,776,211 |
Other current accounts receivable | 778,901 | 1,728,859 |
Commercial debtors and other current accounts receivable | 197,778,793 | 197,221,510 |
Non-current accounts receivable | ||
Trade debtors | 58,336 | 83,881 |
Other non-current debtors | 2,335,322 | 3,443,851 |
Other non-current accounts receivable | 2,193 | |
Non-current accounts receivable | 2,395,851 | 3,527,732 |
Trade and other receivable | 200,174,644 | 200,749,242 |
Allowances for doubtful accounts | ||
Current commercial debtors | ||
Trade debtors | (3,521,734) | (3,090,160) |
Other current debtors | (2,825,453) | (2,827,678) |
Current commercial debtors | (6,347,187) | (5,917,838) |
Other current accounts receivable | (146,926) | (779,318) |
Commercial debtors and other current accounts receivable | (6,494,113) | (6,697,156) |
Non-current accounts receivable | ||
Trade and other receivable | $ (6,494,113) | $ (6,697,156) |
TRADE AND OTHER RECEIVABLES - A
TRADE AND OTHER RECEIVABLES - Aging of Debtor Portfolio (Details) - Assets before provisions. - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | $ 157,985,294 | $ 155,876,847 |
Up to date non-securitized portfolio until 30 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 151,275,377 | 148,694,299 |
31 and 60 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 908,980 | 1,463,935 |
61 and 90 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 1,050,476 | 567,318 |
91 and 120 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 331,740 | 909,985 |
121 and 150 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 709,400 | 410,944 |
151 and 180 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 62,834 | 155,596 |
181 and 210 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 82,863 | 245,947 |
211 and 250 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | 538,081 | 107,679 |
More than 250 days | ||
TRADE AND OTHER RECEIVABLES | ||
Total Trade Receivables | $ 3,025,543 | $ 3,321,144 |
TRADE AND OTHER RECEIVABLES -80
TRADE AND OTHER RECEIVABLES - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017client | |
TRADE AND OTHER RECEIVABLES | |
Number of clients having balances in different sections of stratification | 276,000 |
Chile | |
TRADE AND OTHER RECEIVABLES | |
Number of clients having balances in different sections of stratification | 65,400 |
Brazil | |
TRADE AND OTHER RECEIVABLES | |
Number of clients having balances in different sections of stratification | 89,200 |
Argentina | |
TRADE AND OTHER RECEIVABLES | |
Number of clients having balances in different sections of stratification | 64,400 |
Paraguay | |
TRADE AND OTHER RECEIVABLES | |
Number of clients having balances in different sections of stratification | 57,000 |
TRADE AND OTHER RECEIVABLES - T
TRADE AND OTHER RECEIVABLES - Table showing total trade receivables (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
TRADE AND OTHER RECEIVABLES | ||
Current commercial debtors | $ 154,405,224 | $ 152,702,806 |
Non-current commercial debtors | 58,336 | 83,881 |
Assets before provisions. | ||
TRADE AND OTHER RECEIVABLES | ||
Current commercial debtors | 157,926,958 | 155,792,966 |
Non-current commercial debtors | 58,336 | 83,881 |
Total | $ 157,985,294 | $ 155,876,847 |
TRADE AND OTHER RECEIVABLES - R
TRADE AND OTHER RECEIVABLES - Roll forward for allowance on doubtful accounts (Details) - CLP ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in allowance for doubtful accounts | ||
Opening balance | $ 6,697,156 | $ 5,265,225 |
Bad debt expense | 2,004,958 | 4,381,803 |
Provision application | (1,708,602) | (2,650,520) |
Change due to foreign exchange differences | (499,399) | (299,352) |
Movement | (203,043) | 1,431,931 |
Ending balance | $ 6,494,113 | $ 6,697,156 |
INVENTORIES (Details)
INVENTORIES (Details) - CLP ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVENTORIES | |||
Work in progress | $ 676,609,000 | $ 670,849,000 | |
Other inventories | 4,134,237,000 | 6,668,977,000 | |
Total | 131,363,000,000 | 144,709,348,000 | |
Cost of inventory recognized as cost of sales | 1,069,024,964,000 | 1,033,910,027,000 | $ 1,106,706,146,000 |
Percentage raw materials composed of concentrate and sweeteners as well as caps and other supplies | 80 | 80 | |
Gross carrying amount | |||
INVENTORIES | |||
Raw materials | 78,216,172,000 | 81,841,400,000 | |
Finished goods | 32,097,377,000 | 34,304,162,000 | |
Spare parts and supplies | 19,774,056,000 | 24,137,074,000 | |
Obsolescence provision | |||
INVENTORIES | |||
Inventory | $ (3,535,451,000) | $ (2,913,114,000) |
CURRENT AND DEFERRED INCOME T84
CURRENT AND DEFERRED INCOME TAXES - Current tax assets and Current tax liabilities (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CURRENT AND DEFERRED INCOME TAXES | |||||
Applicable tax rate | 27.00% | 25.50% | 24.00% | 22.50% | 21.00% |
Monthly provisional payments | $ 1,330,379 | ||||
Tax credits | 371,917 | ||||
Total | 1,702,296 | ||||
Income tax expense | $ 3,184,965 | 10,828,593 | |||
Total | $ 3,184,965 | $ 10,828,593 |
CURRENT AND DEFERRED INCOME T85
CURRENT AND DEFERRED INCOME TAXES - Income tax expense (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CURRENT AND DEFERRED INCOME TAXES | |||
Current income tax expense | $ 40,183,261 | $ 35,902,002 | $ 33,322,550 |
Current tax adjustment previous period | 137,455 | 534,392 | (117,316) |
Withholding tax expense foreign subsidiaries | 6,730,031 | 7,645,218 | 7,027,661 |
Other current tax expense (income) | (5,733) | 92,008 | 1,212,398 |
Current income tax expense | 47,045,014 | 44,173,620 | 41,445,293 |
Income (expense) for the creation and reversal of current tax difference | 4,752,620 | 4,633,473 | 197,269 |
Expense (income) for deferred taxes | 4,752,620 | 4,633,473 | 197,269 |
Total income tax expense | $ 51,797,634 | $ 48,807,093 | $ 41,642,562 |
CURRENT AND DEFERRED INCOME T86
CURRENT AND DEFERRED INCOME TAXES - Deferred income taxes (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income taxes | ||||
Deferred tax assets | $ 92,478,190 | $ 96,428,457 | ||
Deferred tax liabilities | 214,469,775 | 222,037,259 | ||
Total liabilities net | 3,212,981 | |||
Total liabilities net | 125,204,566 | 125,608,802 | ||
Total net movement fiscal year | 121,991,585 | 125,608,802 | $ 130,201,701 | $ 126,126,147 |
Property, plant and equipment | ||||
Deferred income taxes | ||||
Deferred tax assets | 5,978,377 | 2,127,336 | ||
Deferred tax liabilities | 47,179,903 | 48,561,147 | ||
Obsolescence provision | ||||
Deferred income taxes | ||||
Deferred tax assets | 2,215,341 | 1,541,553 | ||
Deferred tax liabilities | 200,979 | |||
Employee benefits | ||||
Deferred income taxes | ||||
Deferred tax assets | 5,391,796 | 4,383,007 | ||
Post-employment benefits | ||||
Deferred income taxes | ||||
Deferred tax assets | 61,155 | 49,900 | ||
Deferred tax liabilities | 1,020,522 | 1,010,779 | ||
Tax loss carried-forwards | ||||
Deferred income taxes | ||||
Deferred tax assets | 10,056,534 | 9,928,940 | ||
Tax Goodwill Brazil | ||||
Deferred income taxes | ||||
Deferred tax assets | 23,195,957 | 31,926,760 | ||
Contingency provision | ||||
Deferred income taxes | ||||
Deferred tax assets | 31,177,351 | 36,969,451 | ||
Foreign exchange differences | ||||
Deferred income taxes | ||||
Deferred tax assets | 7,631,498 | |||
Deferred tax liabilities | 2,124,435 | |||
Allowance for doubtful accounts | ||||
Deferred income taxes | ||||
Deferred tax assets | 1,155,542 | 1,031,375 | ||
Coca-Cola incentives (Argentina) | ||||
Deferred income taxes | ||||
Deferred tax assets | 451,790 | 2,408,651 | ||
Assets and liabilities for placement of bonds | ||||
Deferred income taxes | ||||
Deferred tax liabilities | 1,297,000 | 669,856 | ||
Lease liabilities | ||||
Deferred income taxes | ||||
Deferred tax assets | 1,083,010 | 1,767,944 | ||
Inventories | ||||
Deferred income taxes | ||||
Deferred tax assets | 350,746 | 1,604,538 | ||
Deferred tax liabilities | 806,529 | |||
Distribution rights | ||||
Deferred income taxes | ||||
Deferred tax liabilities | 163,850,599 | 168,511,436 | ||
Other | ||||
Deferred income taxes | ||||
Deferred tax assets | 3,729,093 | 2,689,002 | ||
Deferred tax liabilities | $ 920,772 | $ 353,077 |
CURRENT AND DEFERRED INCOME T87
CURRENT AND DEFERRED INCOME TAXES - Deferred tax liability movement (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax liability movement | |||
Opening Balance | $ 125,608,802 | $ 130,201,701 | $ 126,126,147 |
Increase (decrease) in deferred tax | (3,417,011) | (6,409,481) | 9,474,186 |
Increase (decrease) due to foreign currency translation | (200,206) | 1,816,582 | (5,398,632) |
Movements | (3,617,217) | (4,592,899) | 4,075,554 |
Ending balance | $ 121,991,585 | $ 125,608,802 | $ 130,201,701 |
CURRENT AND DEFERRED INCOME T88
CURRENT AND DEFERRED INCOME TAXES - Distribution of domestic and foreign tax expense (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Distribution of domestic and foreign tax expense | |||
Current income tax expense | $ (47,045,014) | $ (44,173,620) | $ (41,445,293) |
Deferred income tax expense | 4,752,620 | 4,633,473 | 197,269 |
Income tax expense | (51,797,634) | (48,807,093) | (41,642,562) |
Domestic | |||
Distribution of domestic and foreign tax expense | |||
Current income tax expense | (16,786,619) | (19,421,514) | (5,007,156) |
Deferred income tax expense | 84,638 | 342,186 | 9,942,667 |
Foreign | |||
Distribution of domestic and foreign tax expense | |||
Current income tax expense | (30,258,395) | (24,752,106) | (36,438,137) |
Deferred income tax expense | $ 4,667,982 | $ 4,291,287 | $ (9,745,398) |
CURRENT AND DEFERRED INCOME T89
CURRENT AND DEFERRED INCOME TAXES - Reconciliation of effective rate (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of effective rate | |||||
Net income before taxes | $ 170,798,359 | $ 140,856,204 | $ 129,740,488 | ||
Tax expense at legal rate | 27.00% | 25.50% | 24.00% | 22.50% | 21.00% |
Tax expense at applicable tax rate | $ (43,553,581) | $ (33,805,489) | $ (29,191,610) | ||
Effect of a different tax rate in other jurisdictions | (4,971,103) | (9,214,270) | (8,161,392) | ||
Non-taxable revenues | 9,645,068 | 6,068,410 | 11,778,290 | ||
Non-deductible expenses | (4,020,729) | (419,761) | (5,557,758) | ||
Effect of tax on excess tax provision previous periods | 125,021 | 86,731 | 117,316 | ||
Effect of tax monetary restatement Chilean companies | (1,465,753) | (1,875,343) | (2,387,349) | ||
Foreign subsidiaries tax withholding expense and other legal tax debits and credits | (7,556,557) | (9,647,371) | (8,240,059) | ||
Adjustments to tax expense | (3,272,950) | (5,787,334) | (4,289,560) | ||
Tax expense at effective rate | $ (51,797,634) | $ (48,807,093) | $ (41,642,562) | ||
Effective rate | 30.60% | 34.70% | 32.10% |
CURRENT AND DEFERRED INCOME T90
CURRENT AND DEFERRED INCOME TAXES - Income tax rates applicable in each jurisdiction where the Company operates (Details) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax rates | |||||
Applicable rate | 27.00% | 25.50% | 24.00% | 22.50% | 21.00% |
Chile | |||||
Income tax rates | |||||
Applicable rate | 25.50% | 24.00% | 22.50% | ||
Brazil | |||||
Income tax rates | |||||
Applicable rate | 34.00% | 34.00% | 34.00% | ||
Argentina | |||||
Income tax rates | |||||
Applicable rate | 35.00% | 35.00% | 35.00% | ||
Paraguay | |||||
Income tax rates | |||||
Applicable rate | 10.00% | 10.00% | 10.00% |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Balances (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | $ 659,750,499 | $ 666,150,885 | $ 640,529,872 | $ 713,075,285 |
Construction in progress | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 84,118,716 | 49,986,111 | 34,625,004 | 25,522,059 |
Land | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 96,990,155 | 91,961,876 | 86,898,529 | 76,957,848 |
Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 162,385,848 | 173,073,161 | 159,474,930 | 172,058,447 |
Plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 155,833,080 | 190,402,625 | 203,379,934 | 253,238,833 |
Information technology | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 4,627,325 | 6,122,912 | 4,320,656 | 4,821,856 |
Fixed facilities and accessories | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 19,589,877 | 20,466,113 | 22,306,759 | 25,055,547 |
Vehicles | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 29,263,265 | 23,896,425 | 18,106,705 | 16,169,783 |
Leasehold improvements | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 7,415 | 190,523 | 274,945 | 446,120 |
Other Property, plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 106,934,818 | 110,051,139 | $ 111,142,410 | $ 138,804,792 |
Bottles | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 51,876,569 | 64,020,146 | ||
Marketing and promotional assets | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 42,798,282 | 38,834,104 | ||
Furniture and other minor assets included in other property, plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 12,259,967 | 7,196,889 | ||
Gross carrying amount | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 1,337,303,175 | 1,320,866,879 | ||
Gross carrying amount | Construction in progress | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 84,118,716 | 49,986,111 | ||
Gross carrying amount | Land | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 96,990,155 | 91,961,876 | ||
Gross carrying amount | Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 222,101,850 | 230,355,844 | ||
Gross carrying amount | Plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 431,876,945 | 453,359,655 | ||
Gross carrying amount | Information technology | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 20,697,750 | 19,683,777 | ||
Gross carrying amount | Fixed facilities and accessories | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 32,990,387 | 32,616,284 | ||
Gross carrying amount | Vehicles | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 52,587,886 | 44,629,827 | ||
Gross carrying amount | Leasehold improvements | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 115,768 | 734,100 | ||
Gross carrying amount | Other Property, plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | 395,823,718 | 397,539,405 | ||
Cumulative depreciation and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (677,552,676) | (654,715,994) | ||
Cumulative depreciation and impairment | Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (59,716,002) | (57,282,683) | ||
Cumulative depreciation and impairment | Plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (276,043,865) | (262,957,030) | ||
Cumulative depreciation and impairment | Information technology | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (16,070,425) | (13,560,865) | ||
Cumulative depreciation and impairment | Fixed facilities and accessories | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (13,400,510) | (12,150,171) | ||
Cumulative depreciation and impairment | Vehicles | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (23,324,621) | (20,733,402) | ||
Cumulative depreciation and impairment | Leasehold improvements | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | (108,355) | (543,577) | ||
Cumulative depreciation and impairment | Other Property, plant and equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment | $ (288,888,898) | $ (287,488,266) |
PROPERTY, PLANT AND EQUIPMENT92
PROPERTY, PLANT AND EQUIPMENT - Movements (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | $ 666,150,885 | $ 640,529,872 | $ 713,075,285 |
Additions | 147,934,167 | 124,796,283 | 110,975,635 |
Disposals | (3,027,014) | (664,376) | (333,768) |
Depreciation | (97,320,958) | (94,127,143) | (97,950,409) |
Increase (decrease) due to foreign currency translation differences | (45,170,497) | (274,179) | (80,326,762) |
Other increase (decrease) | (8,816,084) | (4,109,572) | (4,910,109) |
Total movements | (6,400,386) | 25,621,013 | (72,545,413) |
Ending balance | 659,750,499 | 666,150,885 | 640,529,872 |
Construction in progress | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 49,986,111 | 34,625,004 | 25,522,059 |
Additions | 89,392,003 | 70,421,863 | 59,639,751 |
Transfers between items of Property, plant and equipment | (41,957,409) | (53,824,861) | (46,527,488) |
Increase (decrease) due to foreign currency translation differences | (13,319,346) | (1,235,895) | (4,009,318) |
Other increase (decrease) | 17,357 | ||
Total movements | 34,132,605 | 15,361,107 | 9,102,945 |
Ending balance | 84,118,716 | 49,986,111 | 34,625,004 |
Land | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 91,961,876 | 86,898,529 | 76,957,848 |
Additions | 4,955,929 | 1,248,433 | 17,987,524 |
Transfers between items of Property, plant and equipment | 1,643,038 | ||
Increase (decrease) due to foreign currency translation differences | 72,350 | 2,171,876 | (8,046,843) |
Total movements | 5,028,279 | 5,063,347 | 9,940,681 |
Ending balance | 96,990,155 | 91,961,876 | 86,898,529 |
Buildings | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 173,073,161 | 159,474,930 | 172,058,447 |
Additions | 1,674,734 | 1,201,903 | 104,132 |
Disposals | (300,079) | (4,598) | (16,277) |
Transfers between items of Property, plant and equipment | 3,450,060 | 15,471,645 | 10,132,100 |
Depreciation | (5,880,770) | (5,335,475) | (5,069,161) |
Increase (decrease) due to foreign currency translation differences | (9,538,737) | 2,792,916 | (17,496,868) |
Other increase (decrease) | (92,521) | (528,160) | (237,443) |
Total movements | (10,687,313) | 13,598,231 | (12,583,517) |
Ending balance | 162,385,848 | 173,073,161 | 159,474,930 |
Plant and equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 190,402,625 | 203,379,934 | 253,238,833 |
Additions | 4,992,508 | 9,833,490 | 9,184,539 |
Disposals | (700,973) | (601,444) | (228,309) |
Transfers between items of Property, plant and equipment | 24,250,647 | 16,202,982 | 9,853,256 |
Depreciation | (36,026,939) | (35,568,436) | (35,294,090) |
Increase (decrease) due to foreign currency translation differences | (20,492,851) | (1,266,728) | (29,405,268) |
Other increase (decrease) | (6,591,937) | (1,577,173) | (3,969,027) |
Total movements | (34,569,545) | (12,977,309) | (49,858,899) |
Ending balance | 155,833,080 | 190,402,625 | 203,379,934 |
Information technology | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 6,122,912 | 4,320,656 | 4,821,856 |
Additions | 945,827 | 2,666,593 | 285,838 |
Disposals | (1,062,530) | (245) | |
Transfers between items of Property, plant and equipment | 1,133,684 | 1,062,653 | 1,583,502 |
Depreciation | (2,190,107) | (1,910,731) | (1,879,341) |
Increase (decrease) due to foreign currency translation differences | (320,634) | 29,148 | (469,797) |
Other increase (decrease) | (1,827) | (45,407) | (21,157) |
Total movements | (1,495,587) | 1,802,256 | (501,200) |
Ending balance | 4,627,325 | 6,122,912 | 4,320,656 |
Fixed facilities and accessories | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 20,466,113 | 22,306,759 | 25,055,547 |
Additions | (4,161) | 161,395 | |
Transfers between items of Property, plant and equipment | 2,548,441 | 1,709,635 | 1,371,016 |
Depreciation | (2,112,681) | (2,456,511) | (2,512,958) |
Increase (decrease) due to foreign currency translation differences | (1,307,835) | (1,254,915) | (1,606,846) |
Other increase (decrease) | (250) | ||
Total movements | (876,236) | (1,840,646) | (2,748,788) |
Ending balance | 19,589,877 | 20,466,113 | 22,306,759 |
Vehicles | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 23,896,425 | 18,106,705 | 16,169,783 |
Additions | 1,512,162 | 338,986 | 105,804 |
Disposals | (173,190) | (3,473) | (4,917) |
Transfers between items of Property, plant and equipment | 2,253,061 | 9,015,390 | 8,868,154 |
Depreciation | (5,303,332) | (4,622,348) | (3,967,423) |
Increase (decrease) due to foreign currency translation differences | 7,441,057 | 1,783,041 | (2,918,202) |
Other increase (decrease) | (362,918) | (721,876) | (146,494) |
Total movements | 5,366,840 | 5,789,720 | 1,936,922 |
Ending balance | 29,263,265 | 23,896,425 | 18,106,705 |
Leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 190,523 | 274,945 | 446,120 |
Additions | 13,529 | ||
Transfers between items of Property, plant and equipment | 5,993 | ||
Depreciation | (61,033) | (112,805) | (87,523) |
Increase (decrease) due to foreign currency translation differences | (34,272) | 28,383 | (89,645) |
Other increase (decrease) | (101,332) | ||
Total movements | (183,108) | (84,422) | (171,175) |
Ending balance | 7,415 | 190,523 | 274,945 |
Other Property, plant and equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Opening balance | 110,051,139 | 111,142,410 | 138,804,792 |
Additions | 44,451,636 | 38,923,620 | 23,668,047 |
Disposals | (790,242) | (54,861) | (84,020) |
Transfers between items of Property, plant and equipment | 8,321,516 | 8,719,518 | 14,713,467 |
Depreciation | (45,746,096) | (44,120,837) | (49,139,913) |
Increase (decrease) due to foreign currency translation differences | (7,670,229) | (3,322,005) | (16,283,975) |
Other increase (decrease) | (1,682,906) | (1,236,706) | (535,988) |
Total movements | (3,116,321) | (1,091,271) | (27,662,382) |
Ending balance | $ 106,934,818 | $ 110,051,139 | $ 111,142,410 |
RELATED PARTY (Details)
RELATED PARTY (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related parties | |||
Current receivables due from related parties | $ 5,370,232 | $ 5,788,683 | |
Non-current receivables due from related parties | 156,492 | 147,682 | |
Current payables to related parties | 33,961,437 | 44,120,335 | |
Related to Shareholder | Embonor S.A. | |||
Related parties | |||
Current receivables due from related parties | 4,220,936 | 5,283,410 | |
Related to Shareholder | Embotelladora Iquique S.A. | |||
Related parties | |||
Current receivables due from related parties | 303,866 | 307,848 | |
Related to Shareholder | Recofarma do Industrias Amazonas Ltda. | |||
Related parties | |||
Current payables to related parties | 15,891,797 | 17,345,806 | |
Related to Shareholder | Alimentos de Soja S.A.U. | |||
Related parties | |||
Current payables to related parties | 71,276 | ||
Related to Shareholder | Purchase of concentrates | Servicio y Productos para Bebidas Refrescantes S.R.L. | |||
Transactions | |||
Purchase of goods | 272,541,272 | ||
Related to Shareholder | Purchase of concentrates | Recofarma do Industrias Amazonas Ltda. | |||
Transactions | |||
Purchase of goods | 196,738,018 | $ 106,510,167 | |
Sale of goods | 115,706,386 | ||
Related to Shareholder | Sale of Finished Products | Embonor S.A. | |||
Transactions | |||
Sale of goods | 42,561,124 | 42,147,579 | |
Related to Shareholder | Sale of Finished Products | Embotelladora Iquique S.A. | |||
Transactions | |||
Sale of goods | 2,650,329 | 2,749,506 | 2,888,054 |
Related to Shareholder | Refund and other purchases | Recofarma do Industrias Amazonas Ltda. | |||
Transactions | |||
Purchase of goods | 5,099,040 | ||
Related to Shareholder | Advertising participation payment | Recofarma do Industrias Amazonas Ltda. | |||
Transactions | |||
Purchase of goods | 25,675,184 | ||
Advertising participation payment | 19,953,118 | ||
Related to Shareholder | Advertising participation payment | Leao Alimentos e Bebidas Ltda. | |||
Transactions | |||
Advertising participation payment | 11,658,142 | ||
Related to Shareholder | Purchase of concentrate and marketing recovery | Coca-Cola Peru | |||
Transactions | |||
Purchase of goods | 7,147,534 | ||
Related to Shareholder | Payment of fees and services | Alimentos de Soja S.A.U. | |||
Transactions | |||
Purchase of services | 538,546 | ||
Related to Shareholder | Purchase of concentrates and advertising participation | Coca-Cola Peru | |||
Transactions | |||
Purchase of goods and advertising participation payment | 3,399,427 | ||
Associate | Coca-Cola del Valle New Ventures S.A. | |||
Related parties | |||
Current receivables due from related parties | 647,342 | 180,000 | |
Associate | Leao Alimentos e Bebidas Ltda. | |||
Related parties | |||
Current payables to related parties | 2,539,052 | 3,571,514 | |
Associate | Envases CMF S.A. | |||
Related parties | |||
Current payables to related parties | 2,807,572 | 5,338,180 | |
Associate | Purchase of concentrates | Servicio y Productos para Bebidas Refrescantes S.R.L. | |||
Transactions | |||
Purchase of goods | 114,427,713 | ||
Associate | Purchase of concentrates | Leao Alimentos e Bebidas Ltda. | |||
Transactions | |||
Purchase of goods | 16,963,602 | ||
Associate | Purchase of bottles | Envases CMF S.A. | |||
Transactions | |||
Purchase of goods | 20,865,624 | 34,144,348 | 38,203,461 |
Associate | Purchase of raw materials | Envases CMF S.A. | |||
Transactions | |||
Purchase of goods | 12,617,540 | ||
Associate | Purchase of caps | Envases CMF S.A. | |||
Transactions | |||
Purchase of goods | 477,188 | ||
Associate | Purchase services and others | Envases CMF S.A. | |||
Transactions | |||
Purchase of services | 357,456 | ||
Associate | Sale services and others | Envases CMF S.A. | |||
Transactions | |||
Sale of services | 14,944 | ||
Associate | Purchase of packaging | Envases CMF S.A. | |||
Transactions | |||
Purchase of goods | 2,960,894 | ||
Associate | Sale of packaging and raw materials | Envases CMF S.A. | |||
Transactions | |||
Sale of goods | 2,942,690 | ||
Associate | Refund and other purchases | KAIK Participacoes | |||
Transactions | |||
Purchase of goods | 6,614 | ||
Associate | Purchase of Products | Leao Alimentos e Bebidas Ltda. | |||
Transactions | |||
Purchase of goods | 104,103 | ||
Associate | Purchase of Products | Sorocaba Refrescos S. A. | |||
Transactions | |||
Purchase of goods | 574,881 | 2,986,650 | |
Associate | Purchase of Products | Trop Frutas do Brasil Ltda. | |||
Transactions | |||
Purchase of goods | 317,565 | ||
Associate | Administrative and commercial services | Coca-Cola del Valle New Ventures S.A. | |||
Transactions | |||
Purchase of services | 180,000 | ||
Associate | Sale of packaging material | Embonor S.A. | |||
Transactions | |||
Sale of goods | 44,310,169 | ||
Associate | Sale of packaging material | Envases CMF S.A. | |||
Transactions | |||
Sale of goods | 1,946,094 | ||
Related to director | Cervecera Austral S.A. | |||
Related parties | |||
Current receivables due from related parties | 16,674 | 13,827 | |
Related to director | Comercial Patagona Ltda. | |||
Related parties | |||
Current receivables due from related parties | 3,598 | ||
Related to director | Envases del Pacfico S.A. | |||
Related parties | |||
Current payables to related parties | 193,685 | 304,405 | |
Related to director | Purchase of raw materials | Coca-Cola Peru | |||
Transactions | |||
Purchase of goods | 4,188,812 | ||
Related to director | Sale of Finished Products | Envases del Pacfico S.A. | |||
Transactions | |||
Sale of goods | 1,662,803 | ||
Related to director | Purchase of raw materials and materials | Envases del Pacfico S.A. | |||
Transactions | |||
Purchase of goods | 1,676,013 | ||
Related to director | Rent of spaces | Parque Arauco S.A. | |||
Transactions | |||
Leases as lessee | 90,032 | ||
Related to director | Purchase of insurance policies | Euroamerica Seguros de Vida S.A. | |||
Transactions | |||
Purchase of services | 312,231 | ||
Related to director | Advertising participation payment | Envases CMF S.A. | |||
Transactions | |||
Advertising participation payment | 1,751,011 | ||
Related to director | Sale of products | Latam Airlines Group S.A. | |||
Transactions | |||
Sale of goods | 652,588 | ||
Shareholder | Servicio y Productos para Bebidas Refrescantes S.R.L. | |||
Related parties | |||
Current receivables due from related parties | 181,414 | ||
Current payables to related parties | 10,275,931 | ||
Shareholder | Coca-Cola de Chile S.A. | |||
Related parties | |||
Non-current receivables due from related parties | 156,492 | 147,682 | |
Current payables to related parties | 12,458,055 | 7,284,499 | |
Shareholder | Purchase of concentrates | Servicio y Productos para Bebidas Refrescantes S.R.L. | |||
Transactions | |||
Purchase of goods | 14,680,603 | 145,188,901 | |
Shareholder | Purchase of concentrates | Coca-Cola de Chile S.A. | |||
Transactions | |||
Purchase of goods | 140,609,445 | 129,660,611 | 131,381,786 |
Shareholder | Purchase of advertising services | Coca-Cola de Chile S.A. | |||
Transactions | |||
Purchase of services | 1,823,190 | 7,154,023 | 4,510,007 |
Shareholder | Lease of water fountain | Coca-Cola de Chile S.A. | |||
Transactions | |||
Leases as lessee | 2,989,115 | 3,740,351 | 3,065,143 |
Shareholder | Sale of raw materials and other | Coca-Cola de Chile S.A. | |||
Transactions | |||
Leases as lessee | 2,163,225 | ||
Shareholder | Sale of services and others | Coca-Cola del Valle New Ventures S.A. | |||
Transactions | |||
Sale of services | 1,444,162 | ||
Shareholder | Sale of services and others | Coca-Cola de Chile S.A. | |||
Transactions | |||
Sale of services | $ 2,299,634 | 2,938,754 | |
Shareholder | Advertising participation payment | Servicio y Productos para Bebidas Refrescantes S.R.L. | |||
Transactions | |||
Advertising participation payment | $ 12,584,231 | $ 20,555,307 |
RELATED PARTY - Key management
RELATED PARTY - Key management compensation (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RELATED PARTY DISCLOSURES | |||
Executive wages, salaries and benefits | $ 6,454,846 | $ 6,255,806 | $ 6,412,238 |
Director allowances | 1,513,100 | 1,492,088 | 1,512,000 |
Termination of employment contracts benefits | 79,027 | 192,920 | |
Accrued benefit in the past five years and paid during the fiscal year | 334,477 | 314,288 | 257,683 |
Total | $ 8,302,423 | $ 8,141,209 | $ 8,374,841 |
CURRENT AND NON-CURRENT EMPLO95
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS - Employee benefits (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Employee benefits | ||
Current | $ 35,955,643 | $ 35,653,431 |
Non-current | 8,286,355 | 8,157,745 |
Total | 44,241,998 | 43,811,176 |
Accrued vacations | ||
Employee benefits | ||
Total | 20,769,275 | 19,828,622 |
Employee remuneration payable | ||
Employee benefits | ||
Total | 15,186,368 | 15,824,809 |
Indemnities for years of service | ||
Employee benefits | ||
Total | $ 8,286,355 | $ 8,157,745 |
CURRENT AND NON-CURRENT EMPLO96
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS - Indemnities for years of service (Details) - CLP ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movements of post-employment benefits | ||
Opening balance | $ 8,157,745 | $ 8,230,030 |
Service costs | 1,727,905 | 2,059,799 |
Interest costs | 300,755 | 182,328 |
Net actuarial losses | (530,059) | 536,105 |
Benefits paid | (1,369,991) | (2,850,517) |
Total | $ 8,286,355 | $ 8,157,745 |
CURRENT AND NON-CURRENT EMPLO97
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS - Assumptions (Details) - Y | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS | ||
Discount rate | 2.70% | 2.70% |
Expected salary increase rate | 2.00% | 2.00% |
Turnover rate | 5.40% | 5.40% |
Retirement age of women | 60 | 60 |
Retirement age of men | 65 | 65 |
CURRENT AND NON-CURRENT EMPLO98
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS - Personnel expenses (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CLP ($)employee | Dec. 31, 2016CLP ($)employee | Dec. 31, 2015CLP ($)employee | |
Personnel expenses | |||
Wages and salaries | $ 215,715,214 | $ 218,944,639 | $ 230,854,998 |
Employee benefits | 50,127,117 | 50,174,153 | 48,977,105 |
Severance and post-employment benefits | 7,410,936 | 8,252,502 | 6,217,204 |
Other personnel expenses | 14,205,259 | 10,921,843 | 10,561,935 |
Total | $ 287,458,526 | $ 288,293,137 | $ 296,611,242 |
Number of Employees (unaudited) | |||
Number of employees | employee | 15,924 | 16,296 | 16,525 |
Number of average employees | employee | 15,784 | 16,009 | 15,504 |
INVESTMENTS IN ASSOCIATES ACC99
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD- Balances (Details) - CLP ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 86,809,069 | $ 77,197,781 | $ 54,190,546 | $ 66,050,213 |
Envases CMF S.A. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 18,528,567 | $ 18,693,851 | ||
Percentage interest | 50.00% | 50.00% | ||
Leao Alimentos e Bebidas Ltda. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 22,163,333 | $ 19,559,114 | ||
Percentage interest | 10.26% | 8.82% | ||
Kaik Participacoes Ltda. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 1,228,350 | $ 1,364,444 | ||
Percentage interest | 11.32% | 11.32% | ||
SRSA Participacoes Ltda. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 189,290 | $ 258,928 | ||
Percentage interest | 40.00% | 40.00% | ||
Sorocaba Refrescos S.A. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 23,079,130 | $ 26,091,690 | ||
Percentage interest | 40.00% | 40.00% | ||
Trop Frutas do Brasil Ltda. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 6,359,428 | $ 6,069,003 | ||
Percentage interest | 7.52% | 7.52% | ||
Coca-Cola del Valle New Ventures S.A. | ||||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | ||||
Carrying amount in associates and joint ventures accounted for using the equity method, total | $ 15,260,971 | $ 5,160,751 | ||
Percentage interest | 35.00% | 35.00% |
INVESTMENTS IN ASSOCIATES AC100
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD - Movement (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Opening Balance | $ 77,197,781 | $ 54,190,546 | $ 66,050,213 |
Variation of minimum dividends from equity investees | (217,750) | ||
Dividends received | (1,540,090) | (750,806) | (1,250,000) |
Share in operating income | 932,340 | 396,764 | (1,613,839) |
Unrealized income | 85,268 | 85,266 | 85,266 |
Other investment increases in associates (Capital Contributions) | 15,570,161 | 17,586,575 | 915,069 |
Increase (Decrease) due to foreign currency translation differences | (5,436,391) | 5,689,436 | (9,778,413) |
Ending Balance | $ 86,809,069 | $ 77,197,781 | $ 54,190,546 |
INVESTMENTS IN ASSOCIATES AC101
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD - Summary of financial information (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Total current assets | $ 484,010,050 | $ 552,742,397 | $ 547,409,856 |
Total non-current assets | 1,630,849,417 | 1,646,367,350 | 1,661,951,168 |
Total current liabilities | 428,287,322 | 419,534,854 | 380,574,210 |
Total non-current liabilities | 873,338,796 | 937,404,866 | 977,252,514 |
Net sales | 1,848,878,619 | 1,777,459,320 | 1,877,394,256 |
Net income | 119,000,725 | 92,049,111 | 88,097,926 |
Embotelladora del Altantico S.A. | |||
Disclosure of associates [line items] | |||
Total current assets | 97,285,008 | 110,564,779 | 106,560,232 |
Total non-current assets | 94,369,129 | 98,518,204 | 96,910,341 |
Total current liabilities | 109,594,738 | 132,431,541 | 112,132,723 |
Total non-current liabilities | 1,339,723 | 1,621,792 | 6,399,291 |
Net sales | 544,585,291 | 507,946,578 | 616,870,453 |
Net income | 32,781,977 | 32,268,140 | 30,855,725 |
Andina Empaques Argentina S.A. | |||
Disclosure of associates [line items] | |||
Total current assets | 7,143,561 | 6,680,394 | 7,156,377 |
Total non-current assets | 6,413,307 | 7,381,968 | 7,181,419 |
Total current liabilities | 2,944,499 | 4,061,713 | 3,410,663 |
Total non-current liabilities | 28,444 | 141,258 | 309,688 |
Net sales | 20,698,427 | 20,601,647 | 22,162,260 |
Net income | 3,398,080 | 3,754,831 | 3,817,259 |
Paraguay Refrescos S.A. | |||
Disclosure of associates [line items] | |||
Total current assets | 30,419,844 | 35,283,479 | 33,992,246 |
Total non-current assets | 234,278,288 | 243,615,898 | 259,395,043 |
Total current liabilities | 17,297,339 | 17,192,489 | 21,448,780 |
Total non-current liabilities | 14,487,776 | 16,011,340 | 17,401,120 |
Net sales | 141,277,230 | 132,005,503 | 130,039,400 |
Net income | 23,179,968 | 23,045,844 | (542,264) |
Vital Jugos S.A. | |||
Disclosure of associates [line items] | |||
Total current assets | 21,135,712 | 19,265,466 | 16,976,780 |
Total non-current assets | 19,691,418 | 22,297,712 | 20,187,586 |
Total current liabilities | 14,244,283 | 15,246,108 | 10,596,366 |
Total non-current liabilities | 128,071 | 445,794 | 1,163,577 |
Net sales | 68,884,622 | 75,788,427 | 69,587,397 |
Net income | 809,507 | 913,880 | (13,018) |
Vital Aguas S.A. | |||
Disclosure of associates [line items] | |||
Total current assets | 4,296,412 | 4,783,537 | 4,092,161 |
Total non-current assets | 5,876,875 | 6,298,423 | 5,547,345 |
Total current liabilities | 3,698,382 | 4,884,341 | 4,180,302 |
Total non-current liabilities | 157,558 | 144,250 | 370,502 |
Net sales | 14,642,493 | 14,437,818 | 14,012,087 |
Net income | 452,679 | 70,878 | 152,038 |
Envases Central S.A. | |||
Disclosure of associates [line items] | |||
Total current assets | 8,343,734 | 8,508,056 | 9,033,175 |
Total non-current assets | 14,243,627 | 12,034,286 | 12,799,930 |
Total current liabilities | 7,410,662 | 7,333,325 | 9,104,102 |
Total non-current liabilities | 1,710,709 | 614,711 | 1,283,473 |
Net sales | 39,205,943 | 40,342,848 | 38,417,972 |
Net income | 541,927 | $ 1,641,112 | $ (550,469) |
Envases CMF S.A. | |||
Disclosure of associates [line items] | |||
Net sales | $ 49,924,142 |
INVESTMENTS IN ASSOCIATES AC102
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD - Movement by Associate (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Dividend payables | $ 21,679,922 | $ 19,358,263 | |
Dividends recognised as distributions to owners | 78,446,678 | 69,572,910 | $ 61,319,298 |
Share of profit of investment accounted for using the equity method | 932,340 | 396,764 | $ (1,613,839) |
Leao Alimentos e Bebidas Ltda. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Capital increase | $ 5,385,161 | $ 6,105,732 | |
Proportion of ownership interest in associate (as a percentage) | 10.26% | 8.82% | |
Rio De Janeiro Refrescos Ltda | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Proportion of ownership interest in associate (as a percentage) | 7.52% | 7.52% | |
Consideration transferred | $ 6,157,150 | ||
Embotelladora Andina S.A. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Capital increase | $ 10,185,000 | $ 5,323,693 | |
Envases CMF S.A. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Proportion of ownership interest in associate (as a percentage) | 50.00% | 50.00% | |
Dividend payables | $ 1,540,090 | $ 750,806 | |
Dividends recognised as distributions to owners | $ 770,045 | ||
Sorocaba Refrescos S.A. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Proportion of ownership interest in associate (as a percentage) | 40.00% | 40.00% | |
Dividend payables | $ 0 | $ 0 |
INVESTMENTS IN ASSOCIATES AC103
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD - Reconciliation of share of profit in investments in associates (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Share of profit of investment accounted for using the equity method | $ 932,340 | $ 396,764 | $ (1,613,839) |
Unrealized earnings in inventory acquired from associates and not sold at the end of period, presented as a discount in the respective asset account (containers and/or inventories) | (1,097,966) | (744,612) | (799,256) |
Amortization of Fair Value in Envases CMF S.A. | 85,266 | 85,266 | 85,266 |
Income Statement Balance | $ (80,360) | $ (262,582) | $ (2,327,829) |
INVESTMENTS IN ASSOCIATES AC104
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING EQUITY METHOD - Summary financial information of associates (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 2,114,859,467 | $ 2,199,109,747 | $ 2,209,361,024 |
Total liabilities | 1,301,626,117 | 1,356,939,720 | 1,357,826,724 |
Net sales | 1,848,878,619 | 1,777,459,320 | 1,877,394,256 |
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | (80,360) | $ (262,582) | $ (2,327,829) |
Envases CMF S.A. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | 74,308,406 | ||
Total liabilities | 36,654,412 | ||
Net sales | 49,924,142 | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ 2,405,060 | ||
Date of end of reporting period of financial statements of associate | Dec. 31, 2017 | ||
Sorocaba Refrescos S.A. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 111,697,833 | ||
Total liabilities | 54,000,005 | ||
Net sales | 52,507,920 | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ (1,541,788) | ||
Date of end of reporting period of financial statements of associate | Dec. 31, 2017 | ||
Kaik Participacoes Ltda. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 10,851,460 | ||
Total liabilities | 35 | ||
Net sales | (137,002) | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ (137,002) | ||
Date of end of reporting period of financial statements of associate | Dec. 31, 2017 | ||
SRSA Participacoes Ltda. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 473,226 | ||
Net sales | 469,509 | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ 469,509 | ||
Date of end of reporting period of financial statements of associate | Dec. 31, 2017 | ||
Leao Alimentos e Bebidas Ltda. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 282,895,158 | ||
Total liabilities | 79,689,080 | ||
Net sales | 198,216,570 | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ (157,266) | ||
Date of end of reporting period of financial statements of associate | Dec. 31, 2017 | ||
Trop Frutas do Brasil Ltda. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 88,327,243 | ||
Total liabilities | 11,407,361 | ||
Net sales | 3,345,146 | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ 1,927,448 | ||
Date of end of reporting period of financial statements of associate | Dec. 31, 2017 | ||
Coca-Cola del Valle New Ventures S.A. | |||
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD | |||
Total assets | $ 48,190,779 | ||
Total liabilities | 4,594,308 | ||
Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method | $ (248,532) | ||
Date of end of reporting period of financial statements of associate | Nov. 30, 2017 |
INTANGIBLE ASSETS AND GOODWI105
INTANGIBLE ASSETS AND GOODWILL (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | $ 663,272,878 | $ 680,996,062 | $ 665,666,655 |
Gross carrying amount | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 684,517,558 | 700,397,809 | |
Cumulative amortization | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | (21,244,680) | (19,401,747) | |
Distribution rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 656,294,617 | 674,920,063 | 658,625,624 |
Distribution rights | Gross carrying amount | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 656,411,004 | 674,920,063 | |
Distribution rights | Cumulative amortization | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | (116,387) | ||
Software | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 6,507,343 | 5,605,081 | 6,564,388 |
Software | Gross carrying amount | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 27,595,084 | 24,954,998 | |
Software | Cumulative amortization | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | (21,087,741) | (19,349,917) | |
Water rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 470,918 | 470,918 | $ 476,643 |
Water rights | Gross carrying amount | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 511,470 | 522,748 | |
Water rights | Cumulative amortization | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | $ (40,552) | $ (51,830) |
INTANGIBLE ASSETS AND GOODWI106
INTANGIBLE ASSETS AND GOODWILL - Distribution Rights (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INTANGIBLE ASSETS AND GOODWILL | |||
Renewal period for production and distribution contracts | 5 years | ||
Intangible assets other than goodwill | $ 663,272,878 | $ 680,996,062 | $ 665,666,655 |
Monster distribution rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Term of agreement (in years) | 4 years | ||
Distribution rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | $ 656,294,617 | 674,920,063 | $ 658,625,624 |
Distribution rights | Chile operation | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 304,264,699 | 300,305,728 | |
Distribution rights | Brazil operation | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 187,695,738 | 207,469,759 | |
Distribution rights | Paraguay operation | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 162,825,074 | 165,295,516 | |
Distribution rights | Argentina operation | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | 803,916 | 1,027,483 | |
Distribution rights | Monster distribution rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Intangible assets other than goodwill | $ 705,190 | $ 821,577 |
INTANGIBLE ASSETS AND GOODWI107
INTANGIBLE ASSETS AND GOODWILL - Movement and balances of identifiable intangible assets (Details) - CLP ($) $ in Thousands | Mar. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
INTANGIBLE ASSETS AND GOODWILL | |||
Opening balance | $ 680,996,062 | $ 665,666,655 | |
Additions | $ 14,153,111 | 14,831,164 | 3,664,866 |
Amortization | (1,959,320) | (3,211,884) | |
Other increases (decreases) | (30,595,028) | 14,876,425 | |
Total | 663,272,878 | 680,996,062 | |
Distribution rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Opening balance | 674,920,063 | 658,625,624 | |
Additions | $ 11,923,449 | 11,923,449 | 821,577 |
Amortization | (116,387) | ||
Other increases (decreases) | (30,432,508) | 15,472,862 | |
Total | 656,294,617 | 674,920,063 | |
Water rights | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Opening balance | 470,918 | 476,643 | |
Additions | 975 | ||
Amortization | (4,575) | ||
Other increases (decreases) | (2,125) | ||
Total | 470,918 | 470,918 | |
Software | |||
INTANGIBLE ASSETS AND GOODWILL | |||
Opening balance | 5,605,081 | 6,564,388 | |
Additions | 2,907,715 | 2,842,314 | |
Amortization | (1,842,933) | (3,207,309) | |
Other increases (decreases) | (162,520) | (594,312) | |
Total | $ 6,507,343 | $ 5,605,081 |
INTANGIBLE ASSETS AND GOODWI108
INTANGIBLE ASSETS AND GOODWILL - Main assumptions used in the annual test (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Main assumptions used in the annual test | ||
Conservative growth rate | 3.00% | |
Argentina operation | ||
Main assumptions used in the annual test | ||
Discount rate | 17.10% | 20.50% |
Chile operation | ||
Main assumptions used in the annual test | ||
Discount rate | 7.20% | 7.90% |
Brazil operation | ||
Main assumptions used in the annual test | ||
Discount rate | 9.60% | 11.90% |
Paraguay operation | ||
Main assumptions used in the annual test | ||
Discount rate | 9.10% | 10.70% |
Minimum | ||
Main assumptions used in the annual test | ||
Perpetuity growth rate | 2.00% | |
Maximum | ||
Main assumptions used in the annual test | ||
Conservative growth rate | 7.00% | |
Perpetuity growth rate | 2.50% |
INTANGIBLE ASSETS AND GOODWI109
INTANGIBLE ASSETS AND GOODWILL - Goodwill by business segment and country (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill by business segment and country | |||
Goodwill at beginning of period | $ 102,919,505 | $ 95,835,936 | $ 116,924,199 |
Foreign currency translation differences where functional currency is different from presentation currency | (9,321,288) | 7,083,569 | (21,088,263) |
Goodwill at end of period | 93,598,217 | 102,919,505 | 95,835,936 |
Argentina operation | |||
Goodwill by business segment and country | |||
Goodwill at beginning of period | 5,972,515 | 7,720,202 | 10,058,725 |
Foreign currency translation differences where functional currency is different from presentation currency | (1,299,544) | (1,747,687) | (2,338,523) |
Goodwill at end of period | 4,672,971 | 5,972,515 | 7,720,202 |
Chile operation | |||
Goodwill by business segment and country | |||
Goodwill at beginning of period | 8,503,023 | 8,503,023 | 8,503,023 |
Goodwill at end of period | 8,503,023 | 8,503,023 | 8,503,023 |
Brazil operation | |||
Goodwill by business segment and country | |||
Goodwill at beginning of period | 81,145,834 | 71,960,960 | 90,122,057 |
Foreign currency translation differences where functional currency is different from presentation currency | (7,636,754) | 9,184,874 | (18,161,097) |
Goodwill at end of period | 73,509,080 | 81,145,834 | 71,960,960 |
Paraguay operation | |||
Goodwill by business segment and country | |||
Goodwill at beginning of period | 7,298,133 | 7,651,751 | 8,240,394 |
Foreign currency translation differences where functional currency is different from presentation currency | (384,990) | (353,618) | (588,643) |
Goodwill at end of period | $ 6,913,143 | $ 7,298,133 | $ 7,651,751 |
OTHER CURRENT AND NON-CURREN110
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Other current financial liabilities | $ 67,981,405 | $ 64,800,570 |
Non-current | ||
Other non-current financial liabilities | 675,767,201 | 721,570,587 |
Bank loans | ||
Current | ||
Other current financial liabilities | 31,470,003 | 20,609,887 |
Non-current | ||
Other non-current financial liabilities | 13,057,542 | 17,736,697 |
Bonds payable | ||
Current | ||
Other current financial liabilities | 20,156,295 | 26,729,828 |
Non-current | ||
Other non-current financial liabilities | 648,228,554 | 685,684,184 |
Deposits in guarantee | ||
Current | ||
Other current financial liabilities | 13,849,504 | 13,446,077 |
Derivative contract obligations (see note 20) | ||
Current | ||
Other current financial liabilities | 445,278 | 1,229,354 |
Leasing agreements | ||
Current | ||
Other current financial liabilities | 2,060,325 | 2,785,424 |
Non-current | ||
Other non-current financial liabilities | $ 14,481,105 | $ 18,149,706 |
OTHER CURRENT AND NON-CURREN111
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES - Fair value (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Other current financial assets | $ 14,138,161 | $ 60,152,627 |
Other current financial liabilities | 67,981,405 | 64,800,570 |
Non-current | ||
Other non-current financial assets | 74,259,085 | 80,180,880 |
Other non-current financial liabilities | 675,767,201 | 721,570,587 |
Bank loans | ||
Current | ||
Other current financial liabilities | 31,470,003 | 20,609,887 |
Current financial liabilities at fair value | 31,006,898 | 20,932,073 |
Non-current | ||
Other non-current financial liabilities | 13,057,542 | 17,736,697 |
Noncurrent financial liabilities at fair value | 11,588,575 | 14,365,502 |
Bonds payable | ||
Current | ||
Other current financial liabilities | 20,156,295 | 26,729,828 |
Current financial liabilities at fair value | 22,484,452 | 29,338,170 |
Non-current | ||
Other non-current financial liabilities | 648,228,554 | 685,684,184 |
Noncurrent financial liabilities at fair value | 722,044,324 | 752,078,561 |
Deposits in guarantee | ||
Current | ||
Other current financial liabilities | 13,849,504 | 13,446,077 |
Current financial liabilities at fair value | 13,849,504 | 13,446,077 |
Derivative contract obligations (see note 20) | ||
Current | ||
Other current financial assets | 445,278 | |
Other current financial liabilities | 445,278 | 1,229,354 |
Current financial liabilities at fair value | 445,278 | 1,229,354 |
Leasing agreements | ||
Current | ||
Other current financial liabilities | 2,060,325 | 2,785,424 |
Current financial liabilities at fair value | 2,060,325 | 2,785,424 |
Non-current | ||
Other non-current financial liabilities | 14,481,105 | 18,149,706 |
Noncurrent financial liabilities at fair value | 14,481,105 | 18,149,706 |
Trade and other accounts payable | ||
Current | ||
Other current financial liabilities | 257,519,477 | 242,836,356 |
Current financial liabilities at fair value | 257,519,477 | 242,836,356 |
Accounts payable from related companies | ||
Current | ||
Other current financial liabilities | 33,961,437 | 44,120,335 |
Current financial liabilities at fair value | 33,961,437 | 44,120,335 |
Cash and cash equivalents | ||
Current | ||
Other current financial assets | 136,242,116 | 141,263,880 |
Current financial assets at fair value | 136,242,116 | 141,263,880 |
Other financial assets | ||
Current | ||
Other current financial assets | 14,138,161 | 60,152,627 |
Current financial assets at fair value | 14,138,161 | 60,152,627 |
Non-current | ||
Other non-current financial assets | 74,259,085 | 80,180,880 |
Noncurrent financial assets at fair value | 75,259,085 | 80,180,880 |
Trade and other accounts receivable | ||
Current | ||
Other current financial assets | 191,284,680 | 190,524,354 |
Current financial assets at fair value | 191,284,680 | 190,524,354 |
Non-current | ||
Other non-current financial assets | 2,395,851 | 3,527,732 |
Noncurrent financial assets at fair value | 2,395,851 | 3,527,732 |
Accounts receivable from related companies | ||
Current | ||
Other current financial assets | 5,370,232 | 5,788,683 |
Current financial assets at fair value | 5,370,232 | 5,788,683 |
Non-current | ||
Other non-current financial assets | 156,492 | 147,682 |
Noncurrent financial assets at fair value | $ 156,492 | $ 147,682 |
OTHER CURRENT AND NON-CURREN112
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES - Bank obligations current (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 67,981,405 | $ 64,800,570 |
Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 31,470,003 | $ 20,609,887 |
Embotelladora del Atlantico S.A. | Banco Bilbao Viscaya Argentaria 3.64% Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 300,000 | |
Borrowings, interest rate | 3.64% | |
Effective interest rate percentage | 3.64% | |
Embotelladora del Atlantico S.A. | Banco de la Nacion Argentina 20.00 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 9,965,133 | |
Borrowings, interest rate | 20.00% | |
Effective interest rate percentage | 20.00% | |
Embotelladora del Atlantico S.A. | Banco Galicia Y Bs As 15.25% Effective Rate Quarterly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 340 | |
Borrowings, interest rate | 15.25% | |
Effective interest rate percentage | 15.25% | |
Embotelladora del Atlantico S.A. | Banco de la Nacion Argentina 15.25 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 39,942 | |
Borrowings, interest rate | 15.25% | |
Effective interest rate percentage | 15.25% | |
Embotelladora del Atlantico S.A. | BBVA Banco Frances 15.25% Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 34,861 | |
Borrowings, interest rate | 15.25% | |
Effective interest rate percentage | 15.25% | |
Envases Central S.A. | Banco Bice 2.13 %Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 709,794 | $ 655,752 |
Borrowings, interest rate | 2.13% | |
Effective interest rate percentage | 2.13% | |
Andina Empaques Argentina S.A. | Banco Galicia y Bs. As 20.00 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 3,352,417 | $ 335,722 |
Borrowings, interest rate | 20.00% | |
Effective interest rate percentage | 20.00% | |
Rio De Janeiro Refrescos Ltda | Banco Itau 2.992 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 12,017,942 | |
Borrowings, interest rate | 2.992% | |
Effective interest rate percentage | 2.992% | |
Rio De Janeiro Refrescos Ltda | Banco Itau 7.48 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 298,456 | |
Borrowings, interest rate | 7.48% | |
Effective interest rate percentage | 7.48% | |
Rio De Janeiro Refrescos Ltda | Banco Santander 6.63% Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 1,359,471 | $ 954,556 |
Borrowings, interest rate | 6.63% | |
Effective interest rate percentage | 6.63% | |
Rio De Janeiro Refrescos Ltda | Banco Itau 7.15 % Effective Rate Quarterly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 1,611,747 | $ 2,839,713 |
Borrowings, interest rate | 7.15% | |
Effective interest rate percentage | 7.15% | |
Rio De Janeiro Refrescos Ltda | Banco Itau 4.50% Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 2,541,016 | $ 3,731,059 |
Borrowings, interest rate | 4.50% | |
Effective interest rate percentage | 4.50% | |
Rio De Janeiro Refrescos Ltda | Banco Itau 6.24% Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 11,331,969 | |
Borrowings, interest rate | 6.24% | |
Effective interest rate percentage | 6.24% | |
Up to 90 days | Embotelladora del Atlantico S.A. | Banco de la Nacion Argentina 20.00 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 75,863 | |
Up to 90 days | Andina Empaques Argentina S.A. | Banco Galicia y Bs. As 20.00 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 55,994 | |
Up to 90 days | Rio De Janeiro Refrescos Ltda | Banco Itau 7.48 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 11,688 | |
Up to 90 days | Rio De Janeiro Refrescos Ltda | Banco Santander 6.63% Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 592,682 | |
Up to 90 days | Rio De Janeiro Refrescos Ltda | Banco Itau 7.15 % Effective Rate Quarterly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 278,803 | |
Up to 90 days | Rio De Janeiro Refrescos Ltda | Banco Itau 4.50% Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 1,905,762 | |
90 days to 1 year | Embotelladora del Atlantico S.A. | Banco Bilbao Viscaya Argentaria 3.64% Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 300,000 | |
90 days to 1 year | Embotelladora del Atlantico S.A. | Banco de la Nacion Argentina 20.00 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 9,889,270 | |
90 days to 1 year | Envases Central S.A. | Banco Bice 2.13 %Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 709,794 | |
90 days to 1 year | Andina Empaques Argentina S.A. | Banco Galicia y Bs. As 20.00 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 3,296,423 | |
90 days to 1 year | Rio De Janeiro Refrescos Ltda | Banco Itau 7.48 % Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 286,768 | |
90 days to 1 year | Rio De Janeiro Refrescos Ltda | Banco Santander 6.63% Effective Rate Monthly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 766,789 | |
90 days to 1 year | Rio De Janeiro Refrescos Ltda | Banco Itau 7.15 % Effective Rate Quarterly Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 1,332,944 | |
90 days to 1 year | Rio De Janeiro Refrescos Ltda | Banco Itau 4.50% Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 635,254 | |
90 days to 1 year | Rio De Janeiro Refrescos Ltda | Banco Itau 6.24% Effective Rate Semiannual Amortization obligation | Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 11,331,969 |
OTHER CURRENT AND NON-CURREN113
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES - Bank obligations noncurrent (Details) - CLP ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 675,767,201,000 | $ 721,570,587,000 |
Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 13,057,542,000 | 17,736,697,000 |
Envases Central S.A. | Bank loans | Bice 2.10% Effective Rate Semiannual Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 2,092,245,000 | |
Borrowings, interest rate | 2.10% | |
Effective interest rate percentage | 2.10% | |
Envases Central S.A. | Bank loans | Banco Bice 3.43% Effective Rate Semiannual Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 933,549,000 | |
Borrowings, interest rate | 3.43% | |
Effective interest rate percentage | 3.43% | |
Envases Central S.A. | Bank loans | More than 1 year up to 2 years | Bice 2.10% Effective Rate Semiannual Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 2,092,245,000 | |
Envases Central S.A. | Bank loans | More than 1 year up to 2 years | Banco Bice 3.43% Effective Rate Semiannual Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 933,549,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | Alfa 7.48% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 1,003,688,000 | |
Borrowings, interest rate | 7.50% | |
Effective interest rate percentage | 7.48% | |
Rio De Janeiro Refrescos Ltda | Bank loans | Itau 6.60% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 876,005,000 | |
Borrowings, interest rate | 6.60% | |
Effective interest rate percentage | 6.60% | |
Rio De Janeiro Refrescos Ltda | Bank loans | Santander 7.20% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 5,909,334,000 | |
Borrowings, interest rate | 7.20% | |
Effective interest rate percentage | 7.20% | |
Rio De Janeiro Refrescos Ltda | Bank loans | Banco Itau 4.50% Effective Rate Quarterly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 3,176,270,000 | |
Borrowings, interest rate | 4.50% | |
Effective interest rate percentage | 4.50% | |
Rio De Janeiro Refrescos Ltda | Bank loans | Banco Itau 6.63% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 2,464,272,000 | |
Borrowings, interest rate | 6.63% | |
Effective interest rate percentage | 6.63% | |
Rio De Janeiro Refrescos Ltda | Bank loans | Banco Santander 7.15% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 8,019,264,000 | |
Borrowings, interest rate | 7.15% | |
Effective interest rate percentage | 7.15% | |
Rio De Janeiro Refrescos Ltda | Bank loans | Banco Itau 4.50% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 6,319,612 | |
Borrowings, interest rate | 4.50% | |
Effective interest rate percentage | 4.50% | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Alfa 7.48% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 125,461,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Itau 6.60% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 504,700,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Santander 7.20% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 1,593,608,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Banco Itau 4.50% Effective Rate Quarterly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 3,176,270,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Banco Itau 6.63% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 1,485,327,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Banco Santander 7.15% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 1,985,981,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 1 year up to 2 years | Banco Itau 4.50% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 4,213,075 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 2 years up to 3 years | Alfa 7.48% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 125,461,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 2 years up to 3 years | Itau 6.60% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 197,779,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 2 years up to 3 years | Santander 7.20% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 1,202,096,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 2 years up to 3 years | Banco Itau 6.63% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 547,219,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 2 years up to 3 years | Banco Santander 7.15% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 3,042,278,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 2 years up to 3 years | Banco Itau 4.50% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 2,106,537 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 3 years up to 4 years | Alfa 7.48% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 125,461,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 3 years up to 4 years | Itau 6.60% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 44,639,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 3 years up to 4 years | Santander 7.20% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 663,779,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 3 years up to 4 years | Banco Itau 6.63% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 431,726,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 3 years up to 4 years | Banco Santander 7.15% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 2,832,515,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 4 years up to 5 years | Alfa 7.48% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 627,305,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 4 years up to 5 years | Itau 6.60% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 128,887,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 4 years up to 5 years | Santander 7.20% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 2,449,851,000 | |
Rio De Janeiro Refrescos Ltda | Bank loans | More than 4 years up to 5 years | Banco Santander 7.15% Effective Rate Monthly Amortization obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 158,490,000 |
OTHER CURRENT AND NON-CURREN114
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Bonds Payable (Details) - CLP ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Composition Of Bonds Payable | ||
Other current financial liabilities | $ 67,981,405 | $ 64,800,570 |
Other non-current financial liabilities | 675,767,201 | 721,570,587 |
Bonds payable (current) | ||
Composition Of Bonds Payable | ||
Notional amount | 20,547,117 | 27,112,986 |
Borrowing costs capitalised | 390,822 | 383,158 |
Bonds payable (noncurrent) | ||
Composition Of Bonds Payable | ||
Notional amount | 651,459,940 | 690,150,930 |
Borrowing costs capitalised | 3,231,386 | 4,466,746 |
Bonds payable | ||
Composition Of Bonds Payable | ||
Notional amount | 672,007,057 | 717,263,916 |
Borrowing costs capitalised | 3,622,208 | 4,849,904 |
Other current financial liabilities | 20,156,295 | 26,729,828 |
Other non-current financial liabilities | 648,228,554 | 685,684,184 |
Other financial liabilities | $ 668,384,849 | $ 712,414,012 |
OTHER CURRENT AND NON-CURREN115
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Reconciliation of Bonds Payable (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017CLP ($) | |
Changes in liabilities arising from financing activities (Bonds Payable) | |
Total liabilities from financing activities | $ 712,414,012 |
Cash Flows, Interest Payment | (32,459,909) |
Cash Flows, Capital Payment | (18,286,457) |
Accrued interest | 42,178,816 |
Foreign exchange movement | (35,461,613) |
Total liabilities from financing activities | 668,384,849 |
Bonds payable | |
Changes in liabilities arising from financing activities (Bonds Payable) | |
Total liabilities from financing activities | 712,414,012 |
Cash Flows, Interest Payment | (32,459,909) |
Cash Flows, Capital Payment | (18,286,457) |
Accrued interest | 42,178,816 |
Foreign exchange movement | (35,461,613) |
Total liabilities from financing activities | $ 668,384,849 |
OTHER CURRENT AND NON-CURREN116
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Current and non-current balances (Details) $ in Thousands, $ in Millions, in Millions | Dec. 31, 2017CLF ( ) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Sep. 26, 2013USD ($) |
Current and non-current balances | ||||
Current bonds issued and current portion of non-current bonds issued | $ 20,547,117 | $ 27,112,986 | ||
Non-current portion of non-current bonds issued | $ 651,459,940 | 690,150,930 | ||
CMF Registration N640 CMF 08.23.2010 Series A | ||||
Current and non-current balances | ||||
Borrowings, interest rate | 3.00% | 3.00% | ||
Current bonds issued and current portion of non-current bonds issued | 6,660,552 | |||
CMF Registration N254 CMF 06.13.2001 Series B | ||||
Current and non-current balances | ||||
Notional amount | 3.7 | $ 2,333,646 | ||
Borrowings, interest rate | 6.50% | 6.50% | ||
Current bonds issued and current portion of non-current bonds issued | $ 6,071,687 | 5,656,992 | ||
Non-current portion of non-current bonds issued | 56,795,423 | 61,486,857 | ||
CMF Registration N641 08.23.2010 Series C | ||||
Current and non-current balances | ||||
Notional amount | 1.5 | $ 1,500,000 | ||
Borrowings, interest rate | 4.00% | 4.00% | ||
Current bonds issued and current portion of non-current bonds issued | $ 597,049 | 587,020 | ||
Non-current portion of non-current bonds issued | 40,197,210 | 39,521,970 | ||
CMF Registration N759 08.20.2013 Series C | ||||
Current and non-current balances | ||||
Notional amount | 1 | $ 750,000 | ||
Borrowings, interest rate | 3.50% | 3.50% | ||
Current bonds issued and current portion of non-current bonds issued | $ 6,959,157 | 6,929,828 | ||
Non-current portion of non-current bonds issued | 13,399,069 | 19,760,985 | ||
CMF Registration N760 08.20.2013 Series D | ||||
Current and non-current balances | ||||
Notional amount | 4 | $ 4,000,000 | ||
Borrowings, interest rate | 3.80% | 3.80% | ||
Current bonds issued and current portion of non-current bonds issued | $ 1,502,299 | 1,487,844 | ||
Non-current portion of non-current bonds issued | 107,192,560 | 105,391,920 | ||
CMF Registration N760 04.02.2014 Series E | ||||
Current and non-current balances | ||||
Notional amount | 3 | $ 3,000,000 | ||
Borrowings, interest rate | 3.75% | 3.75% | ||
Current bonds issued and current portion of non-current bonds issued | $ 998,409 | 978,933 | ||
Non-current portion of non-current bonds issued | 80,394,428 | 79,043,948 | ||
Bonds USA | ||||
Current and non-current balances | ||||
Notional amount | $ 575,000,000 | $ 575 | ||
Borrowings, interest rate | 5.00% | 5.00% | 5.00% | |
Current bonds issued and current portion of non-current bonds issued | $ 4,418,516 | 4,811,817 | ||
Non-current portion of non-current bonds issued | 353,481,250 | 384,945,250 | ||
Bonds payable (current) | ||||
Current and non-current balances | ||||
Notional amount | 20,547,117 | 27,112,986 | ||
Current interest payable | $ 8,105,642 | $ 8,646,270 |
OTHER CURRENT AND NON-CURREN117
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Non-current maturities (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | $ 651,459,940 | $ 690,150,930 |
SVS Registration N254 06.13.2001 Series B | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 56,795,421 | |
SVS Registration N641 08.23.2010 Series C | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 40,197,210 | |
SVS Registration N759 08.20.2013 Series C | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 13,399,070 | |
SVS Registration N760 08.20.2013 Series D | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 107,192,561 | |
SVS Registration N760 04.02.2014 Series E | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 80,394,428 | |
Bonds USA | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 353,481,250 | $ 384,945,250 |
Maturity within one year | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 12,814,703 | |
Maturity within one year | SVS Registration N254 06.13.2001 Series B | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 6,115,168 | |
Maturity within one year | SVS Registration N759 08.20.2013 Series C | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 6,699,535 | |
More than 1 year up to 2 years | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 13,212,189 | |
More than 1 year up to 2 years | SVS Registration N254 06.13.2001 Series B | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 6,512,654 | |
More than 1 year up to 2 years | SVS Registration N759 08.20.2013 Series C | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 6,699,535 | |
More than 2 years up to 3 years | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 10,590,269 | |
More than 2 years up to 3 years | SVS Registration N254 06.13.2001 Series B | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 6,935,977 | |
More than 2 years up to 3 years | SVS Registration N641 08.23.2010 Series C | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 3,654,292 | |
More than 3 years | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 614,842,779 | |
More than 3 years | SVS Registration N254 06.13.2001 Series B | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 37,231,622 | |
More than 3 years | SVS Registration N641 08.23.2010 Series C | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 36,542,918 | |
More than 3 years | SVS Registration N760 08.20.2013 Series D | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 107,192,561 | |
More than 3 years | SVS Registration N760 04.02.2014 Series E | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | 80,394,428 | |
More than 3 years | Bonds USA | ||
Disclosure of detailed information about borrowings | ||
Non-current portion of non-current bonds issued | $ 353,481,250 |
OTHER CURRENT AND NON-CURREN118
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Bond restrictions (Details) in Thousands, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2017CLP ($)item | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | Dec. 31, 2017CLF ( ) | Dec. 31, 2017CLP ($) | Dec. 31, 2014CLP ($) | Dec. 31, 2013CLP ($) | Sep. 26, 2013USD ($) | |
Disclosure of detailed information about borrowings | ||||||||
Borrowings | $ 75,000,000 | |||||||
Other current financial liabilities | $ 64,800,570,000 | 67,981,405,000 | ||||||
Other non-current financial liabilities | 721,570,587,000 | 675,767,201,000 | ||||||
Cash and cash equivalents | (141,263,880,000) | $ (129,160,939,000) | (136,242,116,000) | $ (79,514,434,000) | ||||
Other current financial assets | (60,152,627,000) | (14,138,161,000) | ||||||
Other non-current financial assets | (80,180,880,000) | (74,259,085,000) | ||||||
Equity. | 842,170,027,000 | 851,534,300,000 | 813,233,349,000 | $ 918,997,733,000 | ||||
Liabilities | 1,356,939,720,000 | 1,357,826,724,000 | 1,301,626,117,000 | |||||
Consolidated financial income between January 1 and December 31, 2016 | $ 11,194,375,000 | 9,661,692,000 | 10,118,375,000 | |||||
Consolidated Ebitda between January 1 and December 31, 2016 | $ (55,220,369,000) | $ (51,374,971,000) | $ (55,669,217,000) | |||||
Bonds USA | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | $ 575,000,000,000 | $ 575 | ||||||
Nominal interest rate | 5.00% | 5.00% | 5.00% | |||||
Borrowings | $ 200,000,000 | |||||||
CMF Registration N254 CMF 06.13.2001 Series B | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | 3,700 | $ 2,333,646,000 | ||||||
Nominal interest rate | 6.50% | 6.50% | ||||||
Indebtedness level | 0.84 | |||||||
Other current financial liabilities | $ 67,981,405,000 | |||||||
Other non-current financial liabilities | 675,767,201,000 | |||||||
Other financial liabilities | | 2,333,000 | |||||||
Other non-current financial assets | (61,898,833,000) | |||||||
Equity. | 813,233,349,000 | |||||||
Percentage threshold adjusted consolidated operating cash flow | $ 40 | |||||||
Consolidated assets to unsecured consolidated liabilities ratio | 1.62 | |||||||
Consolidated assets free of collateral, mortgages or other liens | 2,064,208,143,000 | |||||||
Other current and non-current financial assets (hedge derivatives) | (61,898,833,000) | |||||||
Consolidated Assets free of pledges, mortgages or other liens (adjusted) | 2,002,309,310,000 | |||||||
Liabilities | 1,301,626,118,000 | |||||||
Unsecured Consolidated Liabilities Payable (adjusted) | 1,239,727,285,000 | |||||||
CMF Registration N254 CMF 06.13.2001 Series B | Maximum | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | | 4,000 | |||||||
Indebtedness level | 1.20 | |||||||
Consolidated assets to unsecured consolidated liabilities ratio | 1.30 | |||||||
CMF Registration N641 08.23.2010 Series C | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | 1,500 | $ 1,500,000,000 | ||||||
Nominal interest rate | 4.00% | 4.00% | ||||||
Borrowings | | 1,500 | |||||||
Net financial debt ratio | 1.5 | |||||||
CMF Registration N640 CMF 08232010 Series A and CMF Registration N641 08232010 Series C and CMF Registration N759 08202013 Series C | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Other current financial liabilities | $ 67,981,405,000 | |||||||
Other non-current financial liabilities | 675,767,201,000 | |||||||
Cash and cash equivalents | (136,242,116,000) | |||||||
Other current financial assets | (14,138,161,000) | |||||||
Other non-current financial assets | (61,898,833,000) | |||||||
Equity. | 813,233,349,000 | |||||||
Consolidated assets to unsecured consolidated liabilities ratio | 1.62 | |||||||
Consolidated assets free of collateral, mortgages or other liens | 2,064,208,143,000 | |||||||
Other current and non-current financial assets (hedge derivatives) | (61,898,833,000) | |||||||
Consolidated Assets free of pledges, mortgages or other liens (adjusted) | 2,002,309,310,000 | |||||||
Liabilities | 1,301,626,118,000 | |||||||
Unsecured Consolidated Liabilities Payable (adjusted) | 1,239,727,285,000 | |||||||
Net financial debt ratio | 0.65 | |||||||
Net Financial Coverage | 7.30 | |||||||
Number of consecutive quarters | item | 2 | |||||||
Consolidated Ebitda between January 1 and December 31, 2016 | $ 321,188,879,000 | |||||||
Consolidated financial income between January 1 and December 31, 2016 | 11,194,375,000 | |||||||
Consolidated Ebitda between January 1 and December 31, 2016 | $ (55,220,369,000) | |||||||
CMF Registration N640 CMF 08232010 Series A and CMF Registration N641 08232010 Series C and CMF Registration N759 08202013 Series C | Minimum | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Consolidated assets to unsecured consolidated liabilities ratio | 1.30 | |||||||
Net Financial Coverage | 3 | |||||||
CMF Registration N759 08.20.2013 Series C | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | 1,000 | $ 750,000,000 | ||||||
Nominal interest rate | 3.50% | 3.50% | ||||||
Borrowings | | 750 | |||||||
CMF Registration N759 08.20.2013 Series C | Maximum | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | | 3,000 | |||||||
CMF Registration N760 08202013 Series D and CMF Registration N760 04022014 Series E | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | | 8,000 | |||||||
CMF Registration N760 08.20.2013 Series D | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | 4,000 | $ 4,000,000,000 | ||||||
Nominal interest rate | 3.80% | 3.80% | ||||||
Borrowings | | 7,000 | |||||||
CMF Registration N760 04.02.2014 Series E | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Notional amount | 3,000 | $ 3,000,000,000 | ||||||
Nominal interest rate | 3.75% | 3.75% | ||||||
CMF Registration N759 08202013 Series C and CMF Registration N759 08202013 Series C and CMF Registration N760 08202013 Series D and CMF Registration N760 04022014 Series E | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Indebtedness level | 0.65 | |||||||
Other current financial liabilities | $ 67,981,405,000 | |||||||
Other non-current financial liabilities | 675,767,201,000 | |||||||
Cash and cash equivalents | (136,242,116,000) | |||||||
Other current financial assets | (14,138,161,000) | |||||||
Other non-current financial assets | (61,898,833,000) | |||||||
Equity. | 813,233,349,000 | |||||||
Percentage threshold adjusted consolidated operating cash flow | $ 40 | |||||||
Consolidated assets to unsecured consolidated liabilities ratio | 1.62 | |||||||
Consolidated assets free of collateral, mortgages or other liens | 2,064,208,143,000 | |||||||
Other current and non-current financial assets (hedge derivatives) | (61,898,833,000) | |||||||
Consolidated Assets free of pledges, mortgages or other liens (adjusted) | 2,002,309,310,000 | |||||||
Liabilities | 1,301,626,118,000 | |||||||
Unsecured Consolidated Liabilities Payable (adjusted) | $ 1,239,727,285,000 | |||||||
CMF Registration N759 08202013 Series C and CMF Registration N759 08202013 Series C and CMF Registration N760 08202013 Series D and CMF Registration N760 04022014 Series E | Maximum | ||||||||
Disclosure of detailed information about borrowings | ||||||||
Indebtedness level | 1.20 | |||||||
Consolidated assets to unsecured consolidated liabilities ratio | 1.30 |
OTHER CURRENT AND NON-CURREN119
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES - Repurchases (Details) - CLP ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 15, 2014 | Dec. 31, 2013 |
Disclosure of detailed information about borrowings | ||||
Bond repurchase | $ 200 | |||
Borrowings | $ 75 | |||
Bonds USA | ||||
Disclosure of detailed information about borrowings | ||||
Bond repurchase | $ 350 | |||
Borrowings | $ 200 |
OTHER CURRENT AND NON-CURREN120
OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES - Leasing (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 67,981,405 | $ 64,800,570 |
Other non-current financial liabilities | 675,767,201 | 721,570,587 |
Bank loans | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 31,470,003 | 20,609,887 |
Other non-current financial liabilities | 13,057,542 | 17,736,697 |
Leasing agreements | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 2,060,325 | 2,785,424 |
Other non-current financial liabilities | 14,481,105 | 18,149,706 |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Itau 10.215% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 41,467 | $ 110,732 |
Borrowings, interest rate | 10.227% | |
Effective interest rate percentage | 10.215% | |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Banco Itau 10.21% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 11,764 | $ 54,327 |
Borrowings, interest rate | 10.22% | 10.22% |
Effective interest rate percentage | 10.21% | 10.21% |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Cogeracao Light Esco 13.00 Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 16,522,072 | |
Borrowings, interest rate | 12.28% | |
Effective interest rate percentage | 13.00% | |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Banco Santander 9.65% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 504,815 | $ 1,016,705 |
Other non-current financial liabilities | $ 73,799 | $ 591,576 |
Borrowings, interest rate | 9.47% | 9.47% |
Effective interest rate percentage | 9.65% | 9.65% |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Banco Citibank 8.54% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 528,801 | $ 872,247 |
Other non-current financial liabilities | $ 105,807 | $ 624,937 |
Borrowings, interest rate | 8.52% | 8.52% |
Effective interest rate percentage | 8.54% | 8.54% |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 657,610 | $ 674,127 |
Other non-current financial liabilities | $ 14,289,735 | |
Borrowings, interest rate | 12.28% | 12.28% |
Effective interest rate percentage | 13.00% | 13.00% |
Rio De Janeiro Refrescos Ltda | Leasing agreements | Banco Bradesco 9.39% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 8,299 | |
Borrowings, interest rate | 9.38% | |
Effective interest rate percentage | 9.39% | |
Rio De Janeiro Refrescos Ltda | Up to 90 days | Leasing agreements | Itau 10.215% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 9,767 | |
Rio De Janeiro Refrescos Ltda | Up to 90 days | Leasing agreements | Banco Santander 9.65% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 183,761 | |
Rio De Janeiro Refrescos Ltda | Up to 90 days | Leasing agreements | Banco Citibank 8.54% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 146,251 | |
Rio De Janeiro Refrescos Ltda | Up to 90 days | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 156,946 | |
Rio De Janeiro Refrescos Ltda | 90 days to 1 year | Leasing agreements | Itau 10.215% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 31,700 | |
Rio De Janeiro Refrescos Ltda | 90 days to 1 year | Leasing agreements | Banco Santander 9.65% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 321,054 | |
Rio De Janeiro Refrescos Ltda | 90 days to 1 year | Leasing agreements | Banco Citibank 8.54% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 382,550 | |
Rio De Janeiro Refrescos Ltda | 90 days to 1 year | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 500,664 | |
Rio De Janeiro Refrescos Ltda | Maturity within one year | Leasing agreements | Banco Itau 10.21% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 54,327 | |
Rio De Janeiro Refrescos Ltda | Maturity within one year | Leasing agreements | Cogeracao Light Esco 13.00 Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 2,476,445 | |
Rio De Janeiro Refrescos Ltda | Maturity within one year | Leasing agreements | Banco Santander 9.65% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 591,576 | |
Rio De Janeiro Refrescos Ltda | Maturity within one year | Leasing agreements | Banco Citibank 8.54% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 624,937 | |
Rio De Janeiro Refrescos Ltda | More than 1 year up to 2 years | Leasing agreements | Banco Itau 10.21% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 11,764 | |
Rio De Janeiro Refrescos Ltda | More than 1 year up to 2 years | Leasing agreements | Banco Santander 9.65% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 73,799 | |
Rio De Janeiro Refrescos Ltda | More than 1 year up to 2 years | Leasing agreements | Banco Citibank 8.54% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 105,807 | |
Rio De Janeiro Refrescos Ltda | More than 1 year up to 2 years | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 743,100 | |
Rio De Janeiro Refrescos Ltda | More than 2 years up to 3 years | Leasing agreements | Cogeracao Light Esco 13.00 Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 2,234,004 | |
Rio De Janeiro Refrescos Ltda | More than 2 years up to 3 years | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 839,703 | |
Rio De Janeiro Refrescos Ltda | More than 3 years up to 4 years | Leasing agreements | Cogeracao Light Esco 13.00 Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 2,138,183 | |
Rio De Janeiro Refrescos Ltda | More than 3 years up to 4 years | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 948,864 | |
Rio De Janeiro Refrescos Ltda | More than 4 years up to 5 years | Leasing agreements | Cogeracao Light Esco 13.00 Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 2,138,183 | |
Rio De Janeiro Refrescos Ltda | More than 4 years up to 5 years | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 1,072,216 | |
Rio De Janeiro Refrescos Ltda | More than 5 years | Leasing agreements | Cogeracao Light Esco 13.00 Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 7,535,257 | |
Rio De Janeiro Refrescos Ltda | More than 5 years | Leasing agreements | Cogeracao Ligth Esco 13.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | 10,685,852 | |
Embotelladora del Atlantico S.A. | Leasing agreements | Tetra Pak SRL 12.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 327,632 | 103,314 |
Other non-current financial liabilities | $ 356,794 | |
Borrowings, interest rate | 12.00% | |
Effective interest rate percentage | 12.00% | |
Embotelladora del Atlantico S.A. | Up to 90 days | Leasing agreements | Tetra Pak SRL 12.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | 25,541 | |
Embotelladora del Atlantico S.A. | 90 days to 1 year | Leasing agreements | Tetra Pak SRL 12.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other current financial liabilities | $ 302,091 | |
Embotelladora del Atlantico S.A. | Maturity within one year | Leasing agreements | Tetra Pak SRL 12.00% Effective Rate Monthly Amortization Obligation | ||
Disclosure of detailed information about borrowings | ||
Other non-current financial liabilities | $ 356,794 |
TRADE AND OTHER CURRENT ACCO121
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE (Details) $ in Thousands, in Thousands | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 03, 2015CLF ( ) |
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | |||
Trade accounts payable | $ 187,872,116 | $ 179,246,672 | |
Withholdings tax | 49,857,086 | 45,504,119 | |
Accounts payable Inamar Ltda. | 356,221 | 8,312,403 | 303 |
Others | 20,566,980 | 19,282,989 | |
Current | 257,519,477 | 242,836,356 | |
Non-current | 1,132,926 | 9,509,827 | |
Total | $ 258,652,403 | $ 252,346,183 |
TRADE AND OTHER CURRENT ACCO122
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE - Accruable liabilities pursuant to the Company's operating leasing agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017CLP ($) | |
Accruable liabilities pursuant to the Company's operating leasing agreements | |
Total | $ 8,677,350 |
Maturity within one year | |
Accruable liabilities pursuant to the Company's operating leasing agreements | |
Total | 5,530,653 |
Maturity between one and five years | |
Accruable liabilities pursuant to the Company's operating leasing agreements | |
Total | 1,201,980 |
More than 5 years | |
Accruable liabilities pursuant to the Company's operating leasing agreements | |
Total | $ 1,944,717 |
Minimum | |
Accruable liabilities pursuant to the Company's operating leasing agreements | |
Term of lease agreement (in years) | 1 year |
Maximum | |
Accruable liabilities pursuant to the Company's operating leasing agreements | |
Term of lease agreement (in years) | 8 years |
TRADE AND OTHER CURRENT ACCO123
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE - Additional Information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | Dec. 03, 2015CLF ( ) | Dec. 03, 2015CLP ($) | Dec. 31, 2014CLP ($) | |
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | ||||||
Expense relating to variable lease payments not included in measurement of lease liabilities | $ 1,671,534 | |||||
Property | 659,750,499 | $ 666,150,885 | $ 640,529,872 | $ 713,075,285 | ||
Payables for purchase of non-current assets | $ 356,221 | $ 8,312,403 | 303,000 | |||
Industria Metalurgical Inamar Ltda | ||||||
TRADE AND OTHER CURRENT ACCOUNTS PAYABLE | ||||||
Property | 675,000 | $ 17,292,040 |
CURRENT AND NON-CURRENT PROV124
CURRENT AND NON-CURRENT PROVISIONS (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current and Non current provisions | |||
Balances | $ 65,624,166 | $ 73,081,893 | $ 64,301,817 |
Litigation | |||
Current and Non current provisions | |||
Balances | $ 65,624,166 | $ 73,081,893 | $ 64,301,817 |
CURRENT AND NON-CURRENT PROV125
CURRENT AND NON-CURRENT PROVISIONS - Details of Contingencies provisions (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current and Non current provisions | |||
Balances | $ 65,624,166 | $ 73,081,893 | $ 64,301,817 |
Litigation | |||
Current and Non current provisions | |||
Balances | 65,624,166 | 73,081,893 | $ 64,301,817 |
Tax Contingencies | |||
Current and Non current provisions | |||
Balances | 49,185,234 | 63,543,782 | |
Labor Contingencies | |||
Current and Non current provisions | |||
Balances | 10,468,704 | 7,940,428 | |
Civil Contingencies | |||
Current and Non current provisions | |||
Balances | $ 5,970,228 | $ 1,597,683 |
CURRENT AND NON-CURRENT PROV126
CURRENT AND NON-CURRENT PROVISIONS - Movements (Details) - CLP ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movements | ||
Balance at the beginning of the year | $ 73,081,893 | $ 64,301,817 |
Additional provisions | 2,493,968 | 1,047,308 |
Increase (decrease) in existing provisions | (19,083,499) | (1,519,800) |
Payments | 22,985,793 | 4,276,851 |
Reverse unused provision | (6,769,384) | (2,774,703) |
Increase (decrease) due to foreign exchange differences | (7,084,605) | 7,750,420 |
Balance at the end of the year | 65,624,166 | 73,081,893 |
Litigation | ||
Movements | ||
Balance at the beginning of the year | 73,081,893 | 64,301,817 |
Additional provisions | 2,493,968 | 1,047,308 |
Increase (decrease) in existing provisions | (19,083,499) | (1,519,800) |
Payments | 22,985,793 | 4,276,851 |
Reverse unused provision | (6,769,384) | (2,774,703) |
Increase (decrease) due to foreign exchange differences | (7,084,605) | 7,750,420 |
Balance at the end of the year | $ 65,624,166 | $ 73,081,893 |
OTHER CURRENT AND NON-CURREN127
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL LIABILITIES | ||
Dividend payable | $ 21,679,922 | $ 19,358,263 |
Other | 5,328,055 | 1,413,318 |
Total | 27,007,977 | 20,771,581 |
Current | 27,007,977 | 20,612,791 |
Non-current | 158,790 | |
Total | $ 27,007,977 | $ 20,771,581 |
EQUITY - Series of shares (Deta
EQUITY - Series of shares (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017CLP ($)directorshares | Dec. 31, 2016CLP ($)shares | Dec. 31, 2015CLP ($)shares | |
EQUITY | |||
Subscribed Capital | $ | $ 270,737,574 | $ 270,737,574 | $ 270,737,574 |
Paid-in capital | $ | $ 270,737,574 | $ 270,737,574 | $ 270,737,574 |
Number of directors | director | 14 | ||
Series A | |||
EQUITY | |||
Number of shares subscribed | shares | 473,289,301 | 473,289,301 | 473,289,301 |
Number of shares paid in | shares | 473,289,301 | 473,289,301 | 473,289,301 |
Number of voting shares | shares | 473,289,301 | 473,289,301 | 473,289,301 |
Subscribed Capital | $ | $ 135,379,504 | $ 135,379,504 | $ 135,379,504 |
Paid-in capital | $ | $ 135,379,504 | $ 135,379,504 | $ 135,379,504 |
Number of directors elected | director | 12 | ||
Series B Share | |||
EQUITY | |||
Number of shares subscribed | shares | 473,281,303 | 473,281,303 | 473,281,303 |
Number of shares paid in | shares | 473,281,303 | 473,281,303 | 473,281,303 |
Number of voting shares | shares | 473,281,303 | 473,281,303 | 473,281,303 |
Subscribed Capital | $ | $ 135,358,070 | $ 135,358,070 | $ 135,358,070 |
Paid-in capital | $ | $ 135,358,070 | $ 135,358,070 | $ 135,358,070 |
Number of directors elected | director | 2 | ||
Additional dividend distribution as a percentage | 10.00% |
EQUITY - Dividend policy (Detai
EQUITY - Dividend policy (Details) - CLP ($) $ / shares in Units, $ in Thousands | 1 Months Ended | ||||||||||
Dec. 31, 2017 | Oct. 31, 2017 | Aug. 31, 2017 | May 31, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Aug. 31, 2016 | May 31, 2016 | Jan. 31, 2016 | Dec. 31, 2016 | Jan. 01, 2009 | |
EQUITY | |||||||||||
Amount of accumulated earnings | $ 335,523,254 | $ 295,708,512 | |||||||||
Retained earnings realized | 8,600,015 | ||||||||||
Retained earnings dividend adjustment | |||||||||||
EQUITY | |||||||||||
Amount of accumulated earnings | 10,660,688 | $ 19,260,703 | |||||||||
Retained earnings realized | (8,600,015) | ||||||||||
Revaluation of assets parent Company | |||||||||||
EQUITY | |||||||||||
Amount of accumulated earnings | 2,893,156 | 14,800,384 | |||||||||
Retained earnings realized | (11,907,228) | ||||||||||
Foreign currency translation differences of investments in related companies and subsidiaries | |||||||||||
EQUITY | |||||||||||
Amount of accumulated earnings | 7,458,556 | 4,653,301 | |||||||||
Retained earnings realized | 2,805,255 | ||||||||||
Full absorption cost accounting parent Company | |||||||||||
EQUITY | |||||||||||
Amount of accumulated earnings | 305,175 | ||||||||||
Retained earnings realized | (305,175) | ||||||||||
Post-employment benefits actuarial calculation parent Company | |||||||||||
EQUITY | |||||||||||
Amount of accumulated earnings | 308,976 | 946,803 | |||||||||
Retained earnings realized | (637,827) | ||||||||||
Deferred taxes complementary accounts parent Company | |||||||||||
EQUITY | |||||||||||
Amount of accumulated earnings | $ (1,444,960) | ||||||||||
Retained earnings realized | $ 1,444,960 | ||||||||||
Series A | |||||||||||
EQUITY | |||||||||||
Interim dividend per share | $ 21.50 | $ 19 | $ 19 | $ 17 | $ 17 | ||||||
Final dividend per share | $ 19 | $ 17 | |||||||||
Additional dividend paid per share | $ 19 | $ 17 | |||||||||
Series B Share | |||||||||||
EQUITY | |||||||||||
Interim dividend per share | $ 23.65 | $ 20.90 | $ 20.90 | $ 18.70 | $ 18.70 | ||||||
Final dividend per share | $ 20.90 | $ 18.70 | |||||||||
Additional dividend paid per share | $ 20.90 | $ 18.70 |
EQUITY - Reserves (Details)
EQUITY - Reserves (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
EQUITY | |||
Polar acquisition | $ 421,701,520 | $ 421,701,520 | $ 421,701,520 |
Foreign currency translation reserves | (237,077,572) | (168,744,355) | (167,447,157) |
Cash flow hedge reserve | (3,094,671) | (2,448,175) | 27,087,214 |
Reserve for employee benefit actuarial gains or losses | (1,915,587) | (1,785,032) | (1,796,285) |
Legal and statutory reserves | 5,435,538 | 5,435,538 | 5,435,538 |
Total | $ 185,049,228 | $ 254,159,496 | $ 284,980,830 |
EQUITY - Foreign currency trans
EQUITY - Foreign currency translation reserves (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EQUITY | |||
Reserve of exchange differences on translation | $ (237,077,572) | $ (168,744,355) | $ (167,447,157) |
Movement in foreign currency translation reserve | (68,333,217) | (1,297,198) | (114,161,459) |
Brazil | |||
EQUITY | |||
Reserve of exchange differences on translation | (90,156,924) | (58,306,230) | (88,444,294) |
Movement in foreign currency translation reserve | (31,850,694) | 30,138,065 | (57,582,790) |
Argentina | |||
EQUITY | |||
Reserve of exchange differences on translation | (128,348,112) | (108,386,213) | (84,913,998) |
Movement in foreign currency translation reserve | (19,961,899) | (23,472,215) | (28,640,580) |
Paraguay | |||
EQUITY | |||
Reserve of exchange differences on translation | (4,862,332) | 10,545,453 | 21,728,456 |
Movement in foreign currency translation reserve | (15,407,785) | (11,183,004) | (19,929,293) |
Chile | |||
EQUITY | |||
Reserve of exchange differences on translation | (13,710,204) | (12,597,365) | (15,817,321) |
Movement in foreign currency translation reserve | $ (1,112,839) | $ 3,219,956 | $ (8,008,796) |
EQUITY - Consolidated statement
EQUITY - Consolidated statements of comprehensive income (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flow for hedge | |||
Gross Balance | $ (813,844) | $ (42,836,575) | $ 31,134,391 |
Tax | 167,348 | 13,301,186 | (10,172,792) |
Net Balance | (646,496) | (29,535,389) | 20,961,599 |
Exchange rate translation differences | |||
Gross Balance | (68,831,435) | 148,686 | (119,212,803) |
Tax | 232,666 | (2,431,408) | 4,604,711 |
Net Balance | (68,598,769) | (2,282,722) | (114,608,092) |
Benefit related to defined benefit plans | |||
Gross Balance | (329,477) | (29,423) | (744,445) |
Tax | 84,017 | 7,060 | 148,877 |
Net Balance | (245,460) | (22,363) | (595,568) |
Total Comprehensive income | |||
Gross Balance | (69,974,756) | (42,717,312) | (88,822,857) |
Tax | 484,031 | 10,876,838 | (5,419,204) |
Net Balance | $ (69,490,725) | $ (31,840,474) | $ (94,242,061) |
EQUITY - Movement of comprehens
EQUITY - Movement of comprehensive income and expense (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement of comprehensive income and loss | |||
Total comprehensive income | $ 49,510,000 | $ 60,208,637 | $ (6,144,135) |
Equity holders of the parent | 48,725,522 | 59,704,657 | (5,894,668) |
Non-controlling interests | 784,478 | 503,980 | (249,467) |
Cash flow hedge reserve | |||
Movement of comprehensive income and loss | |||
Increase (decrease) | (14,172,572) | (119,668,724) | 144,373,046 |
Deferred taxes | 3,875,908 | 38,337,727 | (46,055,955) |
Reclassification to the result by function | 13,352,835 | 76,802,629 | (114,423,713) |
Reclassification of deferred taxes related to other reserves | (3,702,667) | (25,007,021) | 37,068,221 |
Total comprehensive income | (646,496) | (29,535,389) | 20,961,599 |
Equity holders of the parent | (646,496) | (29,535,389) | 20,961,599 |
Reserves for exchange rate differences | |||
Movement of comprehensive income and loss | |||
Increase (decrease) | (68,831,435) | 148,686 | (119,212,803) |
Deferred taxes | 232,666 | (2,431,408) | 4,604,711 |
Total comprehensive income | (68,598,769) | (2,282,722) | (114,608,092) |
Equity holders of the parent | (68,333,217) | (1,297,198) | (114,161,459) |
Non-controlling interests | (265,552) | (985,524) | (446,633) |
Actual income (loss) from defined benefit plan | |||
Movement of comprehensive income and loss | |||
Increase (decrease) | (476,044) | (359,258) | (1,016,400) |
Deferred taxes | 121,390 | 86,222 | 228,690 |
Reclassification to the result by function | 146,564 | 313,341 | 240,177 |
Reclassification of deferred taxes related to other reserves | (37,370) | (62,668) | (48,035) |
Total comprehensive income | (245,460) | (22,363) | (595,568) |
Equity holders of the parent | (130,555) | 11,253 | (558,292) |
Non-controlling interests | $ (114,905) | $ (33,616) | $ (37,276) |
EQUITY - Non-controlling intere
EQUITY - Non-controlling interests (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-controlling interests | |||
Shareholders equity attributable to non controlling interests | $ 21,923,293 | $ 21,564,445 | $ 21,060,465 |
Income attributable to non controlling interests | $ 1,164,935 | $ 1,523,120 | 234,442 |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ 234,442 | ||
Embotelladora del Atlantico S.A. | |||
Non-controlling interests | |||
Non controlling interest percentage | 0.0171% | 0.0171% | 0.0171% |
Shareholders equity attributable to non controlling interests | $ 13,765 | $ 12,209 | $ 14,484 |
Income attributable to non controlling interests | $ 5,590 | $ 5,502 | |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ 5,262 | ||
Andina Empaques Argentina S.A. | |||
Non-controlling interests | |||
Non controlling interest percentage | 0.0209% | 0.0209% | 0.0209% |
Shareholders equity attributable to non controlling interests | $ 2,213 | $ 2,062 | $ 2,220 |
Income attributable to non controlling interests | $ 711 | $ 785 | |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ 798 | ||
Paraguay Refrescos S.A. | |||
Non-controlling interests | |||
Non controlling interest percentage | 2.1697% | 2.1697% | 2.1697% |
Shareholders equity attributable to non controlling interests | $ 5,045,792 | $ 5,337,687 | $ 5,522,797 |
Income attributable to non controlling interests | $ 502,945 | $ 504,806 | |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ 406,211 | ||
Vital S.A. | |||
Non-controlling interests | |||
Non controlling interest percentage | 35.00% | 35.00% | 35.00% |
Shareholders equity attributable to non controlling interests | $ 9,261,108 | $ 9,054,947 | $ 8,891,548 |
Income attributable to non controlling interests | $ 283,327 | $ 319,858 | |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ (4,556) | ||
Vital Aguas S.A. | |||
Non-controlling interests | |||
Non controlling interest percentage | 33.50% | 33.50% | 33.50% |
Shareholders equity attributable to non controlling interests | $ 2,117,098 | $ 2,027,879 | $ 1,967,652 |
Income attributable to non controlling interests | $ 151,647 | $ 23,744 | |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ 50,933 | ||
Envases Central S.A. | |||
Non-controlling interests | |||
Non controlling interest percentage | 40.73% | 40.73% | 40.73% |
Shareholders equity attributable to non controlling interests | $ 5,483,317 | $ 5,129,661 | $ 4,661,764 |
Income attributable to non controlling interests | $ 220,715 | $ 668,425 | |
Profit Loss Attributable To Non controlling Interests As Per Circular No. 856 of Chilean Superintendence of Securities and Insurance | $ (224,206) |
EQUITY - Earnings per share (De
EQUITY - Earnings per share (Details) - CLP ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share | |||
Earnings attributable to shareholders | $ 117,835,790 | $ 90,525,991 | $ 87,863,484 |
Average weighted number of shares | 946,570,604 | 946,570,604 | 946,570,604 |
Earnings per basic and diluted share (in Chilean pesos) | $ 124.49 | $ 95.64 | $ 92.82 |
Series A | |||
Earnings per share | |||
Earnings attributable to shareholders | $ 56,112,755 | $ 43,107,979 | $ 41,840,108 |
Average weighted number of shares | 473,289,301 | 473,289,301 | 473,289,301 |
Earnings per basic and diluted share (in Chilean pesos) | $ 118.56 | $ 91.08 | $ 88.40 |
Series B Share | |||
Earnings per share | |||
Earnings attributable to shareholders | $ 61,723,035 | $ 47,418,012 | $ 46,023,376 |
Average weighted number of shares | 473,281,303 | 473,281,303 | 473,281,303 |
Earnings per basic and diluted share (in Chilean pesos) | $ 130.42 | $ 100.19 | $ 97.24 |
DERIVATIVE ASSETS AND LIABIL136
DERIVATIVE ASSETS AND LIABILITIES (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
DERIVATIVE ASSETS AND LIABILITIES | |||||
Gain (losses) from cash flow hedges | $ (813,844) | $ (42,836,575) | $ 31,134,391 | ||
Derivative Instrument US Bond Obligations | Currency swap contract | Cash flow hedges | |||||
DERIVATIVE ASSETS AND LIABILITIES | |||||
Hedged item, liabilities | $ 570,000 | ||||
Derivative financial assets held for hedging | 61,898,833 | ||||
Gains on hedging instrument in other equity reserves | 2,875,365 | ||||
Gain (losses) from cash flow hedges | 13,443,698 | ||||
Gains (losses) on ineffectiveness of cash flow hedges recognised in profit or loss | (2,112,608) | ||||
Derivative Instrument Raw Material Purchases | Forward contract | Fair value hedges | |||||
DERIVATIVE ASSETS AND LIABILITIES | |||||
Derivative financial assets held for hedging | 469,019 | ||||
Gain (losses) from cash flow hedges | (3,655,493) | ||||
Notional amount | $ 62,800 | $ 61,100 | |||
Derivative financial liabilities held for hedging | 445,278 | $ 1,229,354 | |||
Accumulated gain loss on derivative financial instruments | $ 219,306 |
DERIVATIVE ASSETS AND LIABIL137
DERIVATIVE ASSETS AND LIABILITIES - Fair Value (Details) - CLP ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value of financial assets and liabilities | ||
Transfers into out of level 2 assets and liabilities | $ 0 | |
Transfers into Level 3 of fair value hierarchy, assets | 0 | |
Transfers out of Level 3 of fair value hierarchy, assets | 0 | |
Transfers into Level 3 of fair value hierarchy, liabilities | 0 | |
Transfers out of Level 3 of fair value hierarchy, liabilities | 0 | |
Financial assets, at fair value | 62,367,852 | $ 84,859,223 |
Financial liabilities, at fair value | 445,278 | 1,229,354 |
Level 2 | ||
Fair value of financial assets and liabilities | ||
Financial assets, at fair value | 62,367,852 | 84,859,223 |
Financial liabilities, at fair value | 445,278 | 1,229,354 |
Other Current Financial Liabilities | ||
Fair value of financial assets and liabilities | ||
Financial liabilities, at fair value | 445,278 | 1,229,354 |
Other Current Financial Liabilities | Level 2 | ||
Fair value of financial assets and liabilities | ||
Financial liabilities, at fair value | 445,278 | 1,229,354 |
Current financial assets | ||
Fair value of financial assets and liabilities | ||
Financial assets, at fair value | 469,019 | 4,678,343 |
Current financial assets | Level 2 | ||
Fair value of financial assets and liabilities | ||
Financial assets, at fair value | 469,019 | 4,678,343 |
Other non-current financial assets | ||
Fair value of financial assets and liabilities | ||
Financial assets, at fair value | 61,898,833 | 80,180,880 |
Other non-current financial assets | Level 2 | ||
Fair value of financial assets and liabilities | ||
Financial assets, at fair value | $ 61,898,833 | $ 80,180,880 |
CONTINGENCIES AND COMMITMENTS -
CONTINGENCIES AND COMMITMENTS - Lawsuits and other legal actions (Details) $ in Thousands | Sep. 30, 2013BRL (R$) | Oct. 31, 2013BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) | Sep. 30, 2014BRL (R$) |
CONTINGENCIES AND COMMITMENTS | ||||||
Contingent liability | R$ 159293486 | $ 29,602,682 | ||||
Legal proceedings contingent liability | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||
Contingent liability | 7,616,340 | |||||
Embotelladora del Atlantico S.A. | Legal proceedings contingent liability | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||
Contingent liability | 1,340,027 | |||||
Time deposits to guaranty judicial liabilities | 663,274 | |||||
Rio De Janeiro Refrescos Ltda | Legal proceedings contingent liability | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||
Contingent liability | 56,607,721 | |||||
Time deposits to guaranty judicial liabilities | 31,953,725 | $ 103,351,097 | ||||
Warranty insurance and bail letters | R$ | R$ 682849162 | |||||
Warranty insurance and bail letters commission percentage | 0.60% | |||||
Rio De Janeiro Refrescos Ltda | Tax contingent liability | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||
Contingent liability | R$ 37200000 | 6,916,453 | ||||
ex-Companhia De Bebidas Ipiranga | Tax contingent liability | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||
Loss contingency damages sought | R$ | R$ 1330473161 | R$ 331045690 | 1,082,396,664 | |||
Litigation settlement amount released from liability | R$ | R$ 135282155 | R$ 598745218 | ||||
Paraguay Refrescos S.A. | Legal proceedings contingent liability | ||||||
CONTINGENCIES AND COMMITMENTS | ||||||
Contingent liability | $ 60,078 |
CONTINGENCIES AND COMMITMENT139
CONTINGENCIES AND COMMITMENTS - Guarantees (Details) $ in Thousands | Dec. 31, 2017BRL (R$) | Dec. 31, 2017CLP ($) | Dec. 31, 2016CLP ($) |
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | R$ 159293486 | $ 29,602,682 | |
Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 50,651,324 | $ 123,795,126 | |
Industria Metalurgical Inamar Ltda | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 17,991,202 | 17,777,078 | |
Gas Licuado Lipigas SA | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 1,140 | 1,140 | |
Nazira Tala Guarantee One | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 6,924 | ||
Hospital Militar | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 4,727 | 4,648 | |
Parque Arauco | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 5,345 | ||
Aeropuerto Nuevo Pudahuel | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 10,129 | ||
Hospital FACH | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 697 | ||
Inmob. e Invers. Supetar Ltda | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 4,579 | 4,579 | |
Bodegas San Francisco Ltda. | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 6,483 | ||
Maria Lobos Jamet | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 2,565 | 2,565 | |
Reclamaciones Trabajadores | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 4,626,086 | 3,833,788 | |
Reclamaciones Civiles y Tributarias | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 13,104,186 | 14,304,401 | |
Instituciones Gubernamentales | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 14,223,453 | 85,212,908 | |
Distribuidora Baraldo S.H. | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 659 | 843 | |
Acuna Gomez | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 989 | 1,264 | |
Municipalidad San Martin Mza | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 15,167 | ||
Nicanor Lopez | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 707 | 904 | |
Labarda | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 12 | 15 | |
Municipalidad Bariloche | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 38,315 | 230,599 | |
Municipalidad San Antonio Oeste | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 72,768 | 93,005 | |
Municipalidad Carlos Casares | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 2,943 | 3,761 | |
Municipalidad Chivilcoy | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 455,104 | 581,668 | |
Otros | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 140 | 179 | |
Granada Maximiliano | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 5,934 | 7,584 | |
Cicsa | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 8,249 | 23,468 | |
Locadores Varios | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 53,900 | 47,397 | |
Aduana De EZEIZA | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 6,608 | 11,226 | |
Municipalidad De Junin | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 5,755 | 7,356 | |
Almada Jorge | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 8,853 | 11,315 | |
Municipalidad De Picun Leufu | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 128 | 163 | |
Farias Matias Luis | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 1,226 | 20,367 | |
Gomez Alejandra Raquel | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 62 | 79 | |
Lopez Gustavo Gerardo C/Inti Saic Y Otros | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 403 | 516 | |
Fondo Fima Ahorro Plus C | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 588,485 | ||
Fondo Fima Ahorro Pesos C | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 588,299 | ||
Tribunal Superior De Justicia De La Provincia De Cordoba | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 519 | ||
Marcus A. Pena | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 3,782 | 4,017 | |
Mauricio J Cordero C | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 800 | 871 | |
Jose Ruoti Maltese | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 715 | 755 | |
Alejandro Galeano | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 1,107 | ||
Ana Maria Mazo | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 1,054 | ||
Fondo Fima Premium B | Guarantees | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 407,792 | ||
Importadora Casa Y Regalos | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 2,050 | 2,050 | |
Inmobiliaria E Inversiones Gestion Activa Ltda | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 4,585 | 4,585 | |
Inmobiliaria Portofino | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 900 | 900 | |
Telfonica Chile S.a. | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 1,000 | 1,000 | |
Inmobiliaria San Martin Logista S.a. | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 3,461 | 3,461 | |
Procesos Trabajadores | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 1,496,862 | 1,236,439 | |
Procesos Administrativos | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 7,185,511 | 4,885,075 | |
Gobierno Federal | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 91,903,312 | 87,773,855 | |
Gobierno Estadual | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 20,527,817 | 14,674,244 | |
Hsbc | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 3,716,747 | 4,108,312 | |
Otros | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 2,449,103 | 2,682,170 | |
Aduana De Ezeiza One | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | 63,777 | 1,142,642 | |
Aduana De Ezeiza Two | |||
CONTINGENCIES AND COMMITMENTS | |||
Contingent liability | $ 347,990 | $ 369,963 |
FINANCIAL RISK MANAGEMENT - Int
FINANCIAL RISK MANAGEMENT - Interest Rate Risk (Details) - 12 months ended Dec. 31, 2017 - Interest rate risk $ in Thousands, in Thousands, $ in Millions | CLF ( ) | CLP ($) | USD ($) |
Interest Rate Risk | |||
Insurance net balances | $ 220,693 | ||
Fixed interest rate | Domestic | |||
Interest Rate Risk | |||
Financial liabilities | | 11,580 | ||
Fixed interest rate | Foreign | |||
Interest Rate Risk | |||
Financial liabilities | $ 575 | ||
Percentage of foreign bonds re-denominated to domestic currencies | 100.00% |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit Risk (Details) client in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)client | |
Credit risk | |
Credit risk | |
Accounts receivable threshold amount for sales suspension | $ 250,000 |
Accounts receivable threshold period for sales suspension (In Days) | 60 days |
Outstanding accounts receivable balance at which CFO approval is required | $ 1,000,000 |
Credit risk | Minimum | |
Credit risk | |
Number of customers | client | 100 |
31 and 60 days | |
Credit risk | |
Accounts receivable provision percentage | 30.00% |
61 and 90 days | |
Credit risk | |
Accounts receivable provision percentage | 60.00% |
91 and 120 days | |
Credit risk | |
Accounts receivable provision percentage | 90.00% |
Accounts receivable disputed balance provision percentage | 40.00% |
121 days and over | |
Credit risk | |
Accounts receivable provision percentage | 100.00% |
121 and 170 days | |
Credit risk | |
Accounts receivable disputed balance provision percentage | 80.00% |
171 days and over | |
Credit risk | |
Accounts receivable disputed balance provision percentage | 100.00% |
FINANCIAL RISK MANAGEMENT - Pre
FINANCIAL RISK MANAGEMENT - Prepayments, Guarantees and Financial Investments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CLP ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016CLP ($) | Dec. 31, 2015CLP ($) | |
Credit risk | ||||
Trade receivables covered by insurance percentage | 87.00% | |||
Other provisions | $ 65,624,166 | $ 73,081,893 | $ 64,301,817 | |
Maximum | ||||
Credit risk | ||||
Trade receivables uncollectible percentage | 0.50% | |||
Credit risk | ||||
Credit risk | ||||
Prepayment to suppliers threshold | $ 25,000 | |||
Credit risk | Domestic | ||||
Credit risk | ||||
Trade receivables | $ 66,872,384 | |||
Credit risk | Domestic | Provision for credit commitments | ||||
Credit risk | ||||
Other provisions | $ 973,696 | |||
Credit risk | Minimum | ||||
Credit risk | ||||
Time deposits with institutions with risk ratings of A S&P or equivalent | 1 year | |||
Credit risk | Maximum | ||||
Credit risk | ||||
Time deposits with institutions with risk ratings of Level 1 Fitch or equivalent | 1 year | |||
Currency risk | ||||
Credit risk | ||||
Number of risks exposed to that are caused by exchange rate volatility | item | 3 |
FINANCIAL RISK MANAGEMENT - Inv
FINANCIAL RISK MANAGEMENT - Investment Risk by Country (Details) - CLP ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Exchange Rate Risk | ||||
Total Equity | $ 813,233,349 | $ 842,170,027 | $ 851,534,300 | $ 918,997,733 |
Total assets | 2,114,859,467 | 2,199,109,747 | 2,209,361,024 | |
Total liabilities | 1,301,626,117 | $ 1,356,939,720 | $ 1,357,826,724 | |
Currency risk | Argentina | ||||
Exchange Rate Risk | ||||
Total Equity | 86,806,727 | |||
Total assets | 190,848,657 | |||
Total liabilities | $ 104,041,930 | |||
Percentage of entity's revenue | 29.90% | |||
Appreciation (devaluation) of foreign currency against the domestic currency | (21.80%) | |||
Percentage of reasonably possible risk increase | (5.00%) | |||
Increase (decrease) in income due to a reasonably possible increase in risk component | $ (1,676,795) | |||
Increase (decrease) in equity due to a reasonably possible risk increase | (3,034,568) | |||
Increase (decrease) in assets due to a reasonably possible risk increase | (7,976,544) | |||
Increase (decrease) in liabilities due to a reasonably possible risk increase | (4,941,976) | |||
Currency risk | Brazil | ||||
Exchange Rate Risk | ||||
Total Equity | 267,651,617 | |||
Total assets | 796,372,514 | |||
Total liabilities | $ 528,720,897 | |||
Percentage of entity's revenue | 32.60% | |||
Appreciation (devaluation) of foreign currency against the domestic currency | (9.50%) | |||
Percentage of reasonably possible risk increase | (5.00%) | |||
Increase (decrease) in income due to a reasonably possible increase in risk component | $ (2,012,627) | |||
Increase (decrease) in equity due to a reasonably possible risk increase | (11,455,756) | |||
Increase (decrease) in assets due to a reasonably possible risk increase | (34,892,774) | |||
Increase (decrease) in liabilities due to a reasonably possible risk increase | (23,437,018) | |||
Currency risk | Paraguay | ||||
Exchange Rate Risk | ||||
Total Equity | 232,553,018 | |||
Total assets | 264,698,133 | |||
Total liabilities | $ 32,145,115 | |||
Percentage of entity's revenue | 7.60% | |||
Appreciation (devaluation) of foreign currency against the domestic currency | 5.30% | |||
Percentage of reasonably possible risk increase | (5.00%) | |||
Increase (decrease) in income due to a reasonably possible increase in risk component | $ (1,103,808) | |||
Increase (decrease) in equity due to a reasonably possible risk increase | (11,082,603) | |||
Increase (decrease) in assets due to a reasonably possible risk increase | (12,580,330) | |||
Increase (decrease) in liabilities due to a reasonably possible risk increase | $ (1,497,727) |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign Currency Risk (Details) - Currency risk $ in Thousands | 12 Months Ended |
Dec. 31, 2017CLP ($) | |
Disclosure of offsetting of financial liabilities [line items] | |
Derivative financial liabilities | $ 351,058,536 |
Financial liabilities net of assets and net of derivative contracts | 4,095,112 |
Dollar | |
Disclosure of offsetting of financial liabilities [line items] | |
Gross financial assets subject to offsetting | $ 7,168,862 |
Percentage of US denominated financial liabilities with derivative cross currency swaps | 100.00% |
Public and Bank liabilities | |
Disclosure of offsetting of financial liabilities [line items] | |
Gross financial liabilities subject to offsetting | $ 358,227,398 |
Argentina | Public and Bank liabilities | |
Disclosure of offsetting of financial liabilities [line items] | |
Gross financial liabilities subject to offsetting | 327,632 |
Chile | Public and Bank liabilities | |
Disclosure of offsetting of financial liabilities [line items] | |
Gross financial liabilities subject to offsetting | $ 357,899,766 |
FINANCIAL RISK MANAGEMENT - 145
FINANCIAL RISK MANAGEMENT - Foreign Currency Exposure (Details) - 12 months ended Dec. 31, 2017 $ in Thousands, $ in Millions | CLP ($)country | USD ($) |
Commodity price risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of reasonably possible risk increase | 5.00% | |
Decrease in income due to a reasonably possible increase in risk component | $ (9,603,715) | |
Purchase Type Risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of countries with operations | country | 4 | |
Percentage of reasonably possible risk increase | 5.00% | |
Decrease in income due to a reasonably possible increase in risk component | $ (6,533,169) | |
Purchase Type Risk | Dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Amount of risk exposure | $ 340 | |
Amount of risk exposure percentage | 19.00% | |
Purchase Type Risk | Forward contract | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Derivative financial assets held for hedging | $ 62.8 | |
Derivative forward horizon period | 12 months | |
Minimum | Commodity price risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Amount of risk exposure percentage | 35.00% | |
Maximum | Commodity price risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Amount of risk exposure percentage | 40.00% |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity Risk (Details) - Liquidity risk $ in Thousands | Dec. 31, 2017CLP ($) |
Maturity within one year | |
Committed maturities for liability payments | |
Bank debt | $ 32,732,672 |
Bond payable | 60,165,940 |
Operating lease obligations | 10,606,875 |
Purchase obligations | 34,884,104 |
Total | 138,389,591 |
More than 1 year up to 2 years | |
Committed maturities for liability payments | |
Bank debt | 6,138,862 |
Bond payable | 43,047,365 |
Operating lease obligations | 9,875,310 |
Purchase obligations | 6,634,305 |
Total | 65,695,842 |
More than 2 years up to 3 years | |
Committed maturities for liability payments | |
Bank debt | 2,249,305 |
Bond payable | 42,814,906 |
Operating lease obligations | 9,035,715 |
Purchase obligations | 974,124 |
Total | 55,074,050 |
More than 3 years up to 4 years | |
Committed maturities for liability payments | |
Bank debt | 1,542,559 |
Bond payable | 39,559,134 |
Operating lease obligations | 8,988,245 |
Purchase obligations | 150,495 |
Total | 50,240,433 |
More 4 years | |
Committed maturities for liability payments | |
Bank debt | 3,206,042 |
Bond payable | 734,352,340 |
Operating lease obligations | 24,872,335 |
Purchase obligations | 297,867 |
Total | $ 762,728,584 |
EXPENSES BY NATURE (Details)
EXPENSES BY NATURE (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EXPENSES BY NATURE | |||
Direct production costs | $ 815,455,280 | $ 776,824,622 | $ 841,498,727 |
Payroll and employee benefits | 287,458,526 | 288,293,137 | 296,611,242 |
Transportation and distribution | 163,361,088 | 153,675,961 | 181,481,242 |
Marketing | 29,209,904 | 39,981,813 | 43,676,871 |
Depreciation and amortization | 99,163,891 | 97,334,452 | 100,632,332 |
Repairs and maintenance | 34,253,824 | 34,511,508 | 33,732,510 |
Other expenses | 181,249,647 | 173,168,224 | 164,164,860 |
Total | $ 1,610,152,160 | $ 1,563,789,717 | $ 1,661,797,784 |
OTHER INCOME (Details)
OTHER INCOME (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER INCOME | |||
Gain on disposal of Property, plant and equipment | $ 312,470 | $ 318,771 | $ 233,255 |
PIS/CONFINS Leasing tax recovery | 1,034,040 | ||
Others | 238,364 | 408,088 | 238,314 |
Total | $ 550,834 | $ 1,760,899 | $ 471,569 |
OTHER EXPENSES (Details)
OTHER EXPENSES (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER EXPENSES | |||
Contingencies and Non-operating fees | $ 5,377,190 | $ 9,959,181 | $ 8,866,661 |
Tax on bank debits | 7,669,234 | 7,006,261 | 8,219,046 |
Disposal and write-off of property, plant and equipment | 3,025,497 | 4,800,278 | 3,979,594 |
Donations flood repairs northern Chile | 214,856 | ||
Others | 629,550 | 999,447 | 702,891 |
Total other expenses | $ 16,701,471 | $ 22,765,167 | $ 21,983,048 |
FINANCIAL INCOME AND EXPENSE150
FINANCIAL INCOME AND EXPENSES (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finance income | |||
Interest income | $ 8,370,338 | $ 8,466,177 | $ 9,175,522 |
Other interest income | 2,824,037 | 1,195,515 | 942,853 |
Total | 11,194,375 | 9,661,692 | 10,118,375 |
Finance expenses | |||
Bond interest | 42,178,816 | 41,652,154 | 42,096,039 |
Bank loan interest | 5,553,485 | 3,990,853 | 8,115,445 |
Other interest costs | 7,488,068 | 5,731,964 | 5,457,733 |
Total | $ 55,220,369 | $ 51,374,971 | $ 55,669,217 |
OTHER (LOSSES) AND GAIN (Detail
OTHER (LOSSES) AND GAIN (Details) - CLP ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER (LOSSES) AND GAIN | |||
Gains (loss) on derivative transactions | $ (1,466) | $ (1,620,304) | |
(Losses) gains on ineffective portion of hedge derivatives | $ (2,536,079) | (3,378,484) | (4,698,187) |
Other income and (expenses) | (1,190) | (7,427) | 17,370 |
Total | $ (2,537,269) | $ (3,387,377) | $ (6,301,121) |
LOCAL AND FOREIGN CURRENCY - Cu
LOCAL AND FOREIGN CURRENCY - Current Assets (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 136,242,116 | $ 141,263,880 | $ 129,160,939 | $ 79,514,434 |
Other financial assets | 14,138,161 | 60,152,627 | ||
Other non-financial assets | 5,611,861 | 8,601,209 | ||
Trade and other accounts receivable, net | 191,284,680 | 190,524,354 | ||
Accounts receivable from related companies | 5,370,232 | 5,788,683 | ||
Inventories. | 131,363,000 | 144,709,348 | ||
Current tax assets | 1,702,296 | |||
Total Current Assets | 484,010,050 | 552,742,397 | $ 547,409,856 | |
Dollar | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 6,973,298 | 53,073,628 | ||
Other non-financial assets | 70,975 | 37,052 | ||
Trade and other accounts receivable, net | 541,579 | 1,265,303 | ||
Accounts receivable from related companies | 16,674 | |||
Inventories. | 3,046,600 | 5,469,362 | ||
Total Current Assets | 10,649,126 | 59,845,345 | ||
Euros | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 17,245 | 4,926 | ||
Trade and other accounts receivable, net | 112,763 | 308,578 | ||
Inventories. | 262,204 | 6,634 | ||
Total Current Assets | 392,212 | 320,138 | ||
Unidad de fomento | ||||
CURRENT ASSETS | ||||
Other financial assets | 13,647,997 | 53,868,075 | ||
Other non-financial assets | 9,790 | |||
Trade and other accounts receivable, net | 1,673,147 | 2,354,310 | ||
Total Current Assets | 15,330,934 | 56,222,385 | ||
Chilean Peso | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 80,985,719 | 48,891,546 | ||
Other non-financial assets | 3,049,402 | 5,830,276 | ||
Trade and other accounts receivable, net | 75,797,942 | 71,977,019 | ||
Accounts receivable from related companies | 5,172,144 | 5,788,683 | ||
Inventories. | 39,750,597 | 34,276,101 | ||
Total Current Assets | 204,755,804 | 166,763,625 | ||
Brazilian Real | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 21,779,408 | 26,072,201 | ||
Other financial assets | 366,595 | 4,699,975 | ||
Other non-financial assets | 1,447,790 | 1,773,583 | ||
Trade and other accounts receivable, net | 75,387,122 | 74,902,213 | ||
Inventories. | 33,834,631 | 41,670,656 | ||
Current tax assets | 1,702,296 | |||
Total Current Assets | 132,815,546 | 150,820,924 | ||
Argentine Peso | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 19,681,449 | 5,105,633 | ||
Other financial assets | 123,569 | |||
Other non-financial assets | 632,428 | 370,574 | ||
Trade and other accounts receivable, net | 30,870,192 | 33,859,436 | ||
Accounts receivable from related companies | 181,414 | |||
Inventories. | 43,857,361 | 51,163,685 | ||
Total Current Assets | 95,346,413 | 90,499,328 | ||
Paraguayan Guaran | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 6,804,997 | 8,115,946 | ||
Other financial assets | 1,584,577 | |||
Other non-financial assets | 401,476 | 589,724 | ||
Trade and other accounts receivable, net | 6,901,935 | 5,857,495 | ||
Inventories. | 10,611,607 | 12,122,910 | ||
Total Current Assets | $ 24,720,015 | $ 28,270,652 |
LOCAL AND FOREIGN CURRENCY - No
LOCAL AND FOREIGN CURRENCY - Non-Current Assets (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Non-Current Assets: | ||||
Other financial assets | $ 74,259,085 | $ 80,180,880 | ||
Other non-financial assets | 47,394,345 | 35,246,823 | ||
Trade and other receivables | 2,395,851 | 3,527,732 | ||
Accounts receivable from related parties | 156,492 | 147,682 | ||
Investments accounted for under the equity method | 86,809,069 | 77,197,781 | $ 54,190,546 | $ 66,050,213 |
Intangible assets other than goodwill | 663,272,878 | 680,996,062 | 665,666,655 | |
Goodwill | 93,598,217 | 102,919,505 | 95,835,936 | 116,924,199 |
Property, plant and equipment | 659,750,499 | 666,150,885 | 640,529,872 | $ 713,075,285 |
Deferred income tax assets | 3,212,981 | |||
Total Non-Current Assets | 1,630,849,417 | 1,646,367,350 | $ 1,661,951,168 | |
Dollar | ||||
Non-Current Assets: | ||||
Intangible assets other than goodwill | 3,959,421 | |||
Property, plant and equipment | 190,365 | 1,038,400 | ||
Total Non-Current Assets | 4,149,786 | 1,038,400 | ||
Euros | ||||
Non-Current Assets: | ||||
Property, plant and equipment | 5,362,096 | 5,787,857 | ||
Total Non-Current Assets | 5,362,096 | 5,787,857 | ||
Unidad de fomento | ||||
Non-Current Assets: | ||||
Other non-financial assets | 269,333 | |||
Trade and other receivables | 2,335,322 | 3,436,831 | ||
Total Non-Current Assets | 2,335,322 | 3,706,164 | ||
Chilean Peso | ||||
Non-Current Assets: | ||||
Other financial assets | 2,212,688 | 16,697,871 | ||
Other non-financial assets | 395,857 | 188,472 | ||
Trade and other receivables | 7,021 | |||
Accounts receivable from related parties | 156,492 | 147,682 | ||
Investments accounted for under the equity method | 33,789,538 | 23,854,602 | ||
Intangible assets other than goodwill | 307,165,028 | 306,067,525 | ||
Goodwill | 9,523,767 | 9,523,767 | ||
Property, plant and equipment | 271,391,436 | 277,939,125 | ||
Total Non-Current Assets | 624,634,806 | 634,426,065 | ||
Brazilian Real | ||||
Non-Current Assets: | ||||
Other financial assets | 63,531,839 | 63,483,009 | ||
Other non-financial assets | 45,334,405 | 32,660,854 | ||
Investments accounted for under the equity method | 53,019,531 | 53,343,179 | ||
Intangible assets other than goodwill | 188,401,129 | 208,399,580 | ||
Goodwill | 72,488,336 | 80,125,090 | ||
Property, plant and equipment | 240,781,729 | 221,111,732 | ||
Total Non-Current Assets | 663,556,969 | 659,123,444 | ||
Argentine Peso | ||||
Non-Current Assets: | ||||
Other financial assets | 8,514,558 | |||
Other non-financial assets | 1,626,255 | 2,079,079 | ||
Trade and other receivables | 2,193 | 5,425 | ||
Intangible assets other than goodwill | 922,226 | 1,233,441 | ||
Goodwill | 4,672,971 | 5,972,515 | ||
Property, plant and equipment | 77,580,966 | 89,379,062 | ||
Deferred income tax assets | 3,212,981 | |||
Total Non-Current Assets | 96,532,150 | 98,669,522 | ||
Paraguayan Guaran | ||||
Non-Current Assets: | ||||
Other non-financial assets | 37,828 | 49,085 | ||
Trade and other receivables | 58,336 | 78,455 | ||
Intangible assets other than goodwill | 162,825,074 | 165,295,516 | ||
Goodwill | 6,913,143 | 7,298,133 | ||
Property, plant and equipment | 64,443,907 | 70,894,709 | ||
Total Non-Current Assets | $ 234,278,288 | $ 243,615,898 |
LOCAL AND FOREIGN CURRENCY -154
LOCAL AND FOREIGN CURRENCY - Current Liabilities (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current Liabilities: | |||
Other financial liabilities | $ 67,981,405 | $ 64,800,570 | |
Trade and other accounts payable | 257,519,477 | 242,836,356 | |
Current payables to related parties | 33,961,437 | 44,120,335 | |
Other current provisions | 2,676,418 | 682,778 | |
Income taxes payable | 3,184,965 | 10,828,593 | |
Employee benefits current provisions | 35,955,643 | 35,653,431 | |
Other non-financial liabilities | 27,007,977 | 20,612,791 | |
Total Current Liabilities | 428,287,322 | 419,534,854 | $ 380,574,210 |
Until 90 days | |||
Current Liabilities: | |||
Other financial liabilities | 13,536,530 | 12,287,632 | |
Trade and other accounts payable | 251,551,666 | 240,350,658 | |
Current payables to related parties | 33,728,629 | 44,120,335 | |
Other current provisions | 2,616,340 | 622,993 | |
Income taxes payable | 543,874 | ||
Other non-financial liabilities | 648,171 | 1,705,768 | |
Total Current Liabilities | 302,625,210 | 299,087,386 | |
More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 54,444,874 | 52,512,938 | |
Trade and other accounts payable | 5,967,811 | 2,485,698 | |
Current payables to related parties | 232,808 | ||
Other current provisions | 60,078 | 59,785 | |
Income taxes payable | 2,641,091 | 10,828,593 | |
Employee benefits current provisions | 35,955,643 | 35,653,431 | |
Other non-financial liabilities | 26,359,806 | 18,907,023 | |
Total Current Liabilities | 125,662,112 | 120,447,468 | |
Dollar | |||
Current Liabilities: | |||
Other financial liabilities | 4,588,671 | 6,044,961 | |
Trade and other accounts payable | 11,745,990 | 8,331,196 | |
Total Current Liabilities | 16,334,660 | 14,376,157 | |
Dollar | Until 90 days | |||
Current Liabilities: | |||
Other financial liabilities | 25,540 | 24,684 | |
Trade and other accounts payable | 11,716,262 | 8,331,196 | |
Total Current Liabilities | 11,741,801 | 8,355,880 | |
Dollar | More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 4,563,131 | 6,020,277 | |
Trade and other accounts payable | 29,728 | ||
Total Current Liabilities | 4,592,859 | 6,020,277 | |
Euros | |||
Current Liabilities: | |||
Trade and other accounts payable | 2,282,651 | 4,958,363 | |
Total Current Liabilities | 2,282,651 | 4,958,363 | |
Euros | Until 90 days | |||
Current Liabilities: | |||
Trade and other accounts payable | 2,202,581 | 4,958,363 | |
Total Current Liabilities | 2,202,581 | 4,958,363 | |
Euros | More 90 days until 1 year | |||
Current Liabilities: | |||
Trade and other accounts payable | 80,070 | ||
Total Current Liabilities | 80,070 | ||
Unidad de fomento | |||
Current Liabilities: | |||
Other financial liabilities | 16,627,299 | 22,673,287 | |
Trade and other accounts payable | 2,198,131 | 8,312,403 | |
Other non-financial liabilities | 204,724 | ||
Total Current Liabilities | 18,825,430 | 31,190,414 | |
Unidad de fomento | Until 90 days | |||
Current Liabilities: | |||
Other financial liabilities | 6,735,155 | 10,035,543 | |
Trade and other accounts payable | 2,198,131 | 8,312,403 | |
Other non-financial liabilities | 204,724 | ||
Total Current Liabilities | 8,933,286 | 18,552,670 | |
Unidad de fomento | More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 9,892,144 | 12,637,744 | |
Total Current Liabilities | 9,892,144 | 12,637,744 | |
Chilean Peso | |||
Current Liabilities: | |||
Other financial liabilities | 10,342,404 | 9,148,589 | |
Trade and other accounts payable | 88,400,091 | 70,656,460 | |
Current payables to related parties | 15,530,588 | 12,927,085 | |
Other current provisions | 2,616,341 | 622,993 | |
Income taxes payable | 184,406 | 2,785,425 | |
Employee benefits current provisions | 6,365,543 | 6,177,733 | |
Other non-financial liabilities | 26,301,926 | 19,927,834 | |
Total Current Liabilities | 149,741,297 | 122,246,119 | |
Chilean Peso | Until 90 days | |||
Current Liabilities: | |||
Trade and other accounts payable | 82,576,800 | 68,190,344 | |
Current payables to related parties | 15,297,780 | 12,927,085 | |
Other current provisions | 2,616,340 | 622,993 | |
Income taxes payable | 184,406 | ||
Other non-financial liabilities | 190,529 | 1,198,755 | |
Total Current Liabilities | 100,865,856 | 82,939,177 | |
Chilean Peso | More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 10,342,404 | 9,148,589 | |
Trade and other accounts payable | 5,823,291 | 2,466,116 | |
Current payables to related parties | 232,808 | ||
Income taxes payable | 2,785,425 | ||
Employee benefits current provisions | 6,365,543 | 6,177,733 | |
Other non-financial liabilities | 26,111,396 | 18,729,079 | |
Total Current Liabilities | 48,875,441 | 39,306,942 | |
Brazilian Real | |||
Current Liabilities: | |||
Other financial liabilities | 20,674,417 | 24,193,452 | |
Trade and other accounts payable | 74,524,169 | 58,354,740 | |
Current payables to related parties | 18,430,849 | 20,917,319 | |
Income taxes payable | 718,936 | ||
Employee benefits current provisions | 16,412,363 | 17,117,494 | |
Total Current Liabilities | 130,760,733 | 120,583,005 | |
Brazilian Real | Until 90 days | |||
Current Liabilities: | |||
Other financial liabilities | 5,084,725 | 1,816,540 | |
Trade and other accounts payable | 74,524,169 | 58,354,740 | |
Current payables to related parties | 18,430,849 | 20,917,319 | |
Income taxes payable | 359,468 | ||
Total Current Liabilities | 98,399,211 | 81,088,599 | |
Brazilian Real | More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 15,589,691 | 22,376,912 | |
Income taxes payable | 359,468 | ||
Employee benefits current provisions | 16,412,363 | 17,117,494 | |
Total Current Liabilities | 32,361,522 | 39,494,406 | |
Argentine Peso | |||
Current Liabilities: | |||
Other financial liabilities | 14,876,803 | 2,001,103 | |
Trade and other accounts payable | 69,911,911 | 85,070,896 | |
Current payables to related parties | 10,275,931 | ||
Income taxes payable | 2,155,680 | 7,613,012 | |
Employee benefits current provisions | 12,371,827 | 11,640,535 | |
Other non-financial liabilities | 457,642 | 302,289 | |
Total Current Liabilities | 99,773,864 | 116,903,766 | |
Argentine Peso | Until 90 days | |||
Current Liabilities: | |||
Other financial liabilities | 1,691,110 | 410,865 | |
Trade and other accounts payable | 69,859,508 | 85,051,314 | |
Current payables to related parties | 10,275,931 | ||
Other non-financial liabilities | 457,642 | 302,289 | |
Total Current Liabilities | 72,008,260 | 96,040,399 | |
Argentine Peso | More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 13,185,694 | 1,590,238 | |
Trade and other accounts payable | 52,403 | 19,582 | |
Income taxes payable | 2,155,680 | 7,613,012 | |
Employee benefits current provisions | 12,371,827 | 11,640,535 | |
Total Current Liabilities | 27,765,604 | 20,863,367 | |
Paraguayan Guaran | |||
Current Liabilities: | |||
Other financial liabilities | 871,811 | 739,178 | |
Trade and other accounts payable | 8,454,869 | 7,152,298 | |
Other current provisions | 60,078 | 59,785 | |
Income taxes payable | 125,943 | 430,156 | |
Employee benefits current provisions | 805,911 | 717,669 | |
Other non-financial liabilities | 248,410 | 177,944 | |
Total Current Liabilities | 12,916,055 | 9,277,030 | |
Paraguayan Guaran | Until 90 days | |||
Current Liabilities: | |||
Trade and other accounts payable | 8,472,550 | 7,152,298 | |
Total Current Liabilities | 11,085,414 | 7,152,298 | |
Paraguayan Guaran | More 90 days until 1 year | |||
Current Liabilities: | |||
Other financial liabilities | 871,811 | 739,178 | |
Trade and other accounts payable | (17,681) | ||
Other current provisions | 60,078 | 59,785 | |
Income taxes payable | 125,943 | 430,156 | |
Employee benefits current provisions | 805,911 | 717,669 | |
Other non-financial liabilities | 248,410 | 177,944 | |
Total Current Liabilities | 1,830,641 | $ 2,124,732 | |
Other Currency | |||
Current Liabilities: | |||
Trade and other accounts payable | 1,665 | ||
Total Current Liabilities | 1,665 | ||
Other Currency | Until 90 days | |||
Current Liabilities: | |||
Trade and other accounts payable | 1,665 | ||
Total Current Liabilities | $ 1,665 |
LOCAL AND FOREIGN CURRENCY -155
LOCAL AND FOREIGN CURRENCY - Non-Current Liabilities (Details) - CLP ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
NON-CURRENT LIABILITIES | |||
Other financial liabilities | $ 675,767,201 | $ 721,570,587 | |
Trade and other payables | 1,132,926 | 9,509,827 | |
Provisions | 62,947,748 | 72,399,115 | |
Deferred income tax liabilities | 125,204,566 | 125,608,802 | |
Post-employment benefit liabilities | 8,286,355 | 8,157,745 | |
Other non-financial liabilities | 158,790 | ||
Non-Current Liabilities: | 873,338,796 | 937,404,866 | $ 977,252,514 |
More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 8,699,548 | 45,118,483 | |
Trade and other payables | 1,132,926 | 9,509,827 | |
Provisions | 62,947,748 | 72,399,115 | |
Deferred income tax liabilities | 19,317,807 | 13,035,795 | |
Post-employment benefit liabilities | 359,760 | 364,502 | |
Other non-financial liabilities | 158,790 | ||
Non-Current Liabilities: | 92,457,790 | 140,586,512 | |
More than 3 years until 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 19,460,071 | 30,672,918 | |
Deferred income tax liabilities | 91,769 | 14,627,908 | |
Post-employment benefit liabilities | 62,742 | ||
Non-Current Liabilities: | 19,614,582 | 45,300,826 | |
More than 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 647,607,582 | 645,779,186 | |
Deferred income tax liabilities | 105,794,989 | 97,945,099 | |
Post-employment benefit liabilities | 7,863,853 | 7,793,243 | |
Non-Current Liabilities: | 761,266,424 | 751,517,528 | |
Dollar | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 350,249,864 | 379,760,266 | |
Trade and other payables | 748,565 | 1,200,187 | |
Non-Current Liabilities: | 350,998,429 | 380,960,453 | |
Dollar | More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Trade and other payables | 748,565 | 1,200,187 | |
Non-Current Liabilities: | 748,565 | 1,200,187 | |
Dollar | More than 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 350,249,864 | 379,760,266 | |
Non-Current Liabilities: | 350,249,864 | 379,760,266 | |
Unidad de fomento | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 300,070,935 | 306,857,467 | |
Trade and other payables | 8,003,199 | ||
Non-Current Liabilities: | 300,070,935 | 314,860,666 | |
Unidad de fomento | More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 25,399,983 | ||
Trade and other payables | 8,003,199 | ||
Non-Current Liabilities: | 33,403,182 | ||
Unidad de fomento | More than 3 years until 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 13,399,069 | 23,132,311 | |
Non-Current Liabilities: | 13,399,069 | 23,132,311 | |
Unidad de fomento | More than 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 286,671,866 | 258,325,173 | |
Non-Current Liabilities: | 286,671,866 | 258,325,173 | |
Chilean Peso | |||
NON-CURRENT LIABILITIES | |||
Trade and other payables | 356,221 | 304,124 | |
Provisions | 5,000,000 | ||
Deferred income tax liabilities | 92,663,879 | 97,945,099 | |
Post-employment benefit liabilities | 8,090,351 | 7,974,500 | |
Non-Current Liabilities: | 106,110,451 | 106,223,723 | |
Chilean Peso | More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Trade and other payables | 356,221 | 304,124 | |
Provisions | 5,000,000 | ||
Deferred income tax liabilities | 252,448 | ||
Post-employment benefit liabilities | 163,756 | 181,257 | |
Non-Current Liabilities: | 5,772,425 | 485,381 | |
Chilean Peso | More than 3 years until 5 years | |||
NON-CURRENT LIABILITIES | |||
Deferred income tax liabilities | 91,769 | ||
Post-employment benefit liabilities | 62,742 | ||
Non-Current Liabilities: | 154,511 | ||
Chilean Peso | More than 5 years | |||
NON-CURRENT LIABILITIES | |||
Deferred income tax liabilities | 92,319,662 | 97,945,099 | |
Post-employment benefit liabilities | 7,863,853 | 7,793,243 | |
Non-Current Liabilities: | 100,183,515 | 105,738,342 | |
Brazilian Real | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 25,446,402 | 34,596,060 | |
Provisions | 56,607,720 | 71,115,841 | |
Deferred income tax liabilities | 19,065,360 | 16,659,246 | |
Other non-financial liabilities | 158,790 | ||
Non-Current Liabilities: | 101,119,482 | 122,529,937 | |
Brazilian Real | More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 8,699,548 | 19,361,706 | |
Provisions | 56,607,720 | 71,115,841 | |
Deferred income tax liabilities | 19,065,360 | 16,659,246 | |
Other non-financial liabilities | 158,790 | ||
Non-Current Liabilities: | 84,372,628 | 107,295,583 | |
Brazilian Real | More than 3 years until 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 6,061,002 | 7,540,607 | |
Non-Current Liabilities: | 6,061,002 | 7,540,607 | |
Brazilian Real | More than 5 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 10,685,852 | 7,693,747 | |
Non-Current Liabilities: | 10,685,852 | 7,693,747 | |
Argentine Peso | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 356,794 | ||
Trade and other payables | 28,140 | 2,317 | |
Provisions | 1,340,028 | 1,283,274 | |
Deferred income tax liabilities | (3,623,451) | ||
Non-Current Liabilities: | 1,368,168 | (1,981,066) | |
Argentine Peso | More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Other financial liabilities | 356,794 | ||
Trade and other payables | 28,140 | 2,317 | |
Provisions | 1,340,028 | 1,283,274 | |
Deferred income tax liabilities | (3,623,451) | ||
Non-Current Liabilities: | 1,368,168 | (1,981,066) | |
Paraguayan Guaran | |||
NON-CURRENT LIABILITIES | |||
Deferred income tax liabilities | 13,475,327 | 14,627,908 | |
Post-employment benefit liabilities | 196,004 | 183,245 | |
Non-Current Liabilities: | 13,671,331 | 14,811,153 | |
Paraguayan Guaran | More than 1 until 3 years | |||
NON-CURRENT LIABILITIES | |||
Post-employment benefit liabilities | 196,004 | 183,245 | |
Non-Current Liabilities: | 196,004 | 183,245 | |
Paraguayan Guaran | More than 3 years until 5 years | |||
NON-CURRENT LIABILITIES | |||
Deferred income tax liabilities | 14,627,908 | ||
Non-Current Liabilities: | $ 14,627,908 | ||
Paraguayan Guaran | More than 5 years | |||
NON-CURRENT LIABILITIES | |||
Deferred income tax liabilities | 13,475,327 | ||
Non-Current Liabilities: | $ 13,475,327 |
THE ENVIRONMENT (Details)
THE ENVIRONMENT (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017CLP ($) | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | $ 2,184,723 |
Other Property, plant and equipment | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 236,917 |
Other Property, plant and equipment | Brazil | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 69,689 |
Other Property, plant and equipment | Paraguay | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 167,228 |
Other Property, plant and equipment | Future commitments | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 18,389 |
Other Property, plant and equipment | Future commitments | Paraguay | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 18,389 |
Recorded as expenses | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 1,947,806 |
Recorded as expenses | Chile | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 1,061,569 |
Recorded as expenses | Argentina | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 357,999 |
Recorded as expenses | Brazil | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 464,022 |
Recorded as expenses | Paraguay | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 64,216 |
Recorded as expenses | Future commitments | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | 7,061 |
Recorded as expenses | Future commitments | Paraguay | |
THE ENVIRONMENT (unaudited) | |
Environmental disbursements | $ 7,061 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Major business combination in Thousands | Jan. 05, 2018CLF ( )shares |
SUBSEQUENT EVENTS | |
Number of shares held | 2 |
Embonor S.A. | |
SUBSEQUENT EVENTS | |
Number of shares held | 1 |
Coca-Cola de Chile S.A. | |
SUBSEQUENT EVENTS | |
Number of shares held | 3 |
Coca-Cola del Valle New Ventures S.A. | |
SUBSEQUENT EVENTS | |
Number of shares held | 2,999,994 |
Comercializadora Novaverde S.A | |
SUBSEQUENT EVENTS | |
Proportion of ownership interest in associate (as a percentage) | 35.00% |
Embotelladora Andina S.A., Embonor S.A., Coca-Cola del Valle New Ventures, S.A., and Coca-Cola de Chile S.A. | Comercializadora Novaverde S.A | Inversiones Siemel S.A. | |
SUBSEQUENT EVENTS | |
Percentage of voting equity interests acquired | 100.00% |
Consideration transferred, acquisition-date fair value | | 1,785,374 |