Note 21

12 Months Ended

Dec. 31, 2021

Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract]

Disclosure of non current assets and liabilities and disposal groups classified as held for sale [Text Block]

Non-current assets and disposal groups classified as held for sale and liabilities included in disposal groups classified as held for sale

The composition of the balances under the headings “Non-current assets and disposal groups classified as held for sale” and “liabilities included in disposal groups classified as held for sale” in the accompanying consolidated balance sheets, broken down by the origin of the assets, is as follows:


Non-current assets and disposal groups classified as held for sale and liabilities included in disposal groups classified as held for sale. Breakdown by items (Millions of Euros)
	2021	2020	2019
ASSETS
Foreclosures and recoveries	1,218	1,398	1,647




Assets from tangible assets (*)	563	480	310




Companies held for sale (**)	41	84,792	1,716

Accrued amortization (***)	(112)	(89)	(51)



Impairment losses (*)	(650)	(594)	(543)







Total	1,061	85,987	3,079
LIABILITIES
Companies held for sale (**)	—	75,446	1,554
Total	—	75,446	1,554

(*) In 2021, it includes the reclassification of owned offices and facilities from "tangible assets" to "non-current assets and disposal groups classified as held for sale" and the adjustments due to the closing of the owned offices and the decommissioning of facilities after the agreement with the union representatives on the collective layoff procedure proposed for Banco Bilbao Vizcaya Argentaria, S.A. in Spain (see Notes 24 and 50).

(**) It includes mainly BBVA’s stake in BBVA USA in 2020 and BBVA's stake in BBVA Paraguay in 2019 (see Note 3).

(***) Corresponds to the accumulated depreciation of assets before their classification as "Non-current assets and disposal groups classified as held for sale".

Assets and liabilities from discontinued operations

As mentioned in Notes 1.3 and 3, in 2020 the agreement for the sale of the BBVA subsidiary in the United States was announced, which sale was completed on June 1, 2021. The assets and liabilities corresponding to the 37 companies sold were reclassified to the headings “Non-current assets and disposal groups classified as held for sale” and “Liabilities included in disposal groups classified as held for sale” of the consolidated balance sheet as of December 31, 2020, and the earnings from these companies for the first five months of 2021 and the earnings for the years ended December 31, 2020 and 2019 were classified under the heading "Profit (loss) after tax from discontinued operations" of the accompanying consolidated income statements (see Note 1.3).

The condensed consolidated balance sheets as of December 31, 2021, 2020 and 2019, and the condensed consolidated income statements and condensed consolidated statements of cash flow of the companies held for sale in the United States the first five months of 2021 and for the years 2020 and 2019 are provided below:

Condensed consolidated balance sheets of companies sold in the United States


CONDENSED CONSOLIDATED BALANCE SHEETS (Millions of euros)
	2021	2020	2019
Cash, cash balances at central banks and other demand deposits	—	11,368	5,678
Financial assets held for trading	—	821	513
Non-trading financial assets mandatorily at fair value through profit or loss	—	13	18
Financial assets at fair value through other comprehensive income	—	4,974	6,834
Financial assets at amortized cost	—	61,558	62,860
Derivatives - Hedge accounting	—	9	10
Tangible assets	—	799	900
Intangible assets	—	1,949	4,183
Tax assets	—	360	263
Other assets	—	1,390	1,463
Non-current assets and disposal groups classified as held for sale	—	16	31
TOTAL ASSETS	—	83,257	82,751


Financial liabilities held for trading	—	98	94
Financial liabilities at amortized cost	—	73,132	70,438
Derivatives - Hedge accounting	—	2	11
Provisions	—	157	186
Tax liabilities	—	201	87
Other liabilities	—	492	464
TOTAL LIABILITIES	—	74,082	71,279


Actuarial gains (losses) on defined benefit pension plans	—	(66)	(80)
Hedge of net investments in foreign operations (effective portion)	—	(432)	(432)
Foreign currency translation	—	801	1,576
Hedging derivatives. Cash flow hedges (effective portion)	—	250	81
Fair value changes of debt instruments measured at fair value through other comprehensive income	—	70	(11)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	—	622	1,134

Condensed consolidated income statements of companies sold in the United States


CONDENSED CONSOLIDATED INCOME STATEMENTS (Millions of Euros)
	2021 (*)	2020	2019
Interest and other income	974	2,638	3,221
Interest expense	(53)	(429)	(887)
NET INTEREST INCOME	921	2,209	2,335
Dividend income	2	4	10
Fee and commission income	285	677	736
Fee and commission expense	(86)	(183)	(205)
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net	(4)	19	54
Gains (losses) on financial assets and liabilities held for trading, net	26	90	30
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net	2	8	—
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net	2	5	3
Gains (losses) from hedge accounting, net	(1)	4	4
Exchange differences, net	5	19	5
Other operating income	9	19	32
Other operating expense	(30)	(63)	(64)
GROSS INCOME	1,132	2,808	2,941
Administration costs	(661)	(1,462)	(1,534)
Depreciation and amortization	(80)	(205)	(214)
Provisions or reversal of provisions	4	2	(3)
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification	(66)	(729)	(521)
NET OPERATING INCOME	330	413	670
Impairment or reversal of impairment on non-financial assets	—	(2,084)	(1,318)
Gains (losses) on derecognition of non-financial assets and subsidiaries, net	(2)	(3)	2

Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations	3	2	(2)
PROFIT (LOSS) BEFORE TAX	330	(1,671)	(648)
Tax expense or income related to profit or loss	(80)	(57)	(110)
PROFIT (LOSS) AFTER TAX	250	(1,729)	(758)
Profit (loss) after tax from the sale	29	—	—
PROFIT (LOSS) FOR THE PERIOD	280	(1,729)	(758)
ATTRIBUTABLE TO MINORITY INTEREST (NON-CONTROLLING INTEREST)	—	—	—
ATTRIBUTABLE TO OWNERS OF THE PARENT (**)	280	(1,729)	(758)

(*) Corresponds to the first five months of 2021 (See Notes 1.3 and 3).

(**) Cumulative profit net of taxes earned and recognized by BBVA Group in relation to the sale of BBVA USA Bancshares has been €582 million, corresponding to the results generated by the entities within the scope of the sale agreement from the date of the agreement to the closing date of the agreement, plus the profit after tax on the sale as of the closing.

Condensed consolidated statements of cash flows of companies sold in the United States


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of Euros)
	2021 (*)	2020	2019
A) CASH FLOWS FROM OPERATING ACTIVITIES	62	6,874	3,888
B) CASH FLOWS FROM INVESTING ACTIVITIES	(34)	(145)	(133)
C) CASH FLOWS FROM FINANCING ACTIVITIES	(26)	(65)	(468)
D) EFFECT OF EXCHANGE RATE CHANGES	60	(974)	65
INCREASE (DECREASE) NET CASH AND CASH EQUIVALENTS (A+B+C+D)	62	5,690	3,352

(*) Corresponds to the first five months of 2021 (See Notes 1.3 and 3).

Effects of disposal on the financial position of the Group


EFFECT OF DISPOSAL ON THE FINANCIAL POSITION OF THE GROUP (Millions of Euros)
			June 2021
Cash, cash balances at central banks and other demand deposits			(11,476)
Financial assets held for trading			(638)
Non-trading financial assets mandatorily at fair value through profit or loss			(15)
Financial assets at fair value through other comprehensive income			(4,620)
Financial assets at amortized cost			(61,440)
Derivatives - Hedge accounting			(8)
Tangible assets			(788)
Intangible assets			(1,938)
Tax assets			(349)
Other assets			(1,439)
Non-current assets and disposal groups classified as held for sale			(10)
Total assets			(82,720)
Financial liabilities held for trading			129
Financial liabilities at amortized cost			72,357
Provisions			156
Tax liabilities			207
Other liabilities			491
Total liabilities			73,341
Total net assets/liabilities			(9,378)

EFFECT ON NET CASH OUTFLOWS FROM DISCONTINUED OPERATIONS - USA (Millions of Euros)
			June 2021
Consideration received satisfied in cash			9,512
Cash and cash equivalents disposed of			(11,476)
Total net cash outflows from discontinued operations - USA			(1,964)

EFFECT OF THE MOST SIGNIFICANT SALES OF NON-CURRENT ASSETS HELD FOR SALE OF THE BBVA GROUP REFLECTED IN THE CONSOLIDATED STATEMENT OF CASH FLOWS (Millions of Euros)
			December 2021
Consideration received satisfied in cash - USA			9,512
Consideration received satisfied in cash - Divarian			513
Consideration received satisfied in cash - Paraguay			210
Other collections from non-current assets and liabilities for sale			435
Total cash received from non-current assets and liabilities for sale			10,670

Non-current assets and disposal groups classified as held for sale

The changes in the balances of “Non-current assets and disposal groups classified as held for sale” in 2021, 2020 and 2019, are as follows:


Non-current assets and disposal groups classified as held for sale (Millions of Euros)
	Notes	Foreclosed assets			Property, Plant and Equipment (*)			Companies held for sale (**)			Total
Cost (1)		2021	2020	2019	2021	2020	2019	2021	2020	2019	2021	2020	2019
Balance at the beginning		1,398	1,648	2,211	391	258	389	84,792	1,716	29	86,581	3,622	2,629
Additions		245	285	665	—	—	10	522	83,266	1,676	768	83,551	2,351
Contributions from merger transactions		—	—	2	—	—	—	—	—	—	—	—	2
Retirements (sales and other decreases)		(298)	(288)	(1,023)	(39)	(45)	(206)	(83,172)	(190)	—	(83,509)	(523)	(1,229)
Transfers, other movements and exchange differences (**)		(127)	(228)	(207)	100	180	65	(2,100)	—	11	(2,128)	(48)	(131)
Disposals by companies held for sale		—	(19)	—	—	(2)	—		—		—	(21)	—
Balance at the end		1,218	1,398	1,648	452	391	258	41	84,792	1,716	1,711	86,581	3,622

Impairment (2)
Balance at the beginning		386	411	504	208	132	124	—	—	—	594	543	628
Additions	50	36	74	67	62	29	5	—	—	—	97	103	72
Additions transfer to discontinued operations		—	—	5	—	—	—	—	—	—	—	—	5
Contributions from merger transactions		—	—	—	—	—	—	—	—	—	—	—	—
Retirements (sales and other decreases)		(65)	(56)	(164)	(13)	(13)	(22)	—	—	—	(78)	(69)	(186)
Other movements and exchange differences		24	(42)	(1)	12	60	25	—	—	—	36	18	24
Disposals by companies held for sale		—	(1)		—	—		—	—	—	—	(1)
Balance at the end		381	386	411	269	208	132	—	—	—	650	594	543
Balance at the end of net carrying value (1)-(2)		837	1,012	1,237	183	183	126	41	84,792	1,716	1,061	85,987	3,079

(*) Net of accumulated amortization until assets were reclassified as “Non-current assets and disposal groups classified as held for sale”.

(** ) In 2020, the variation corresponds mainly to the USA Sale agreement of BBVA USA and in 2019 to the BBVA's stake in BBVA Paraguay (see Note 3).

As indicated in Note 2.2.4, “Non-current assets and disposal groups held for sale” and “Liabilities included in disposal groups classified as held for sale” are valued at the lower amount between its fair value less costs to sell and its carrying amount. As of December 31, 2021, 2020 and 2019 practically all of the carrying amount of the assets recorded at fair value on a non-recurring basis equals their fair value.

Assets from foreclosures or recoveries

As of December 31, 2021, 2020 and 2019, assets from foreclosures and recoveries, net of impairment losses, by nature of the asset, amounted to €608, €747 and €871 million in assets for residential use; €202, €215 and €259 million in assets for tertiary use (industrial, commercial or office) and €19, €21 and €28 million in assets for agricultural use, respectively.

As of December 31, 2021, 2020 and 2019, the average sale time of assets from foreclosures or recoveries was between 2 and 3 years.

During the years 2021, 2020 and 2019, some of the sale transactions for these assets were financed by Group companies. The amount of loans granted to the buyers of these assets in those years amounted to €62, €78 and €79 million, respectively; with an average financing of 33.7% of the sales price during 2021.

As of December 31, 2021, 2020 and 2019, the amount of the profits arising from the sale of assets financed by Group companies that are not recognized in the consolidated income statement amounted to €1 million.