7 Derivative Financial Instruments

To mitigate the risks of future increases in interest rates and foreign exchange rates for the servicing of its debt, the Company has entered into derivative contracts in over-the-counter transactions carried out with financial institutions. In 2018 the weighted-average interest rate of the total debt including the impact of interest rate derivatives held by the Company is 4.1% (4.0% and 3.7% in 2017 and 2016, respectively).

An analysis of the derivative financial instruments contracted by the Company at December 31, 2017 and 2018 is as follows:


	At December 31,
	2017				2018
Instrument	Notional amount in millions		Fair Value		Notional amount in millions		Fair Value
Assets:
Swaps US Dollar-Mexican peso	US$	2,800		Ps.4,766,102	US$	3,490		Ps. 2,058,831
Swaps Euro-Mexican peso	€	—		—		—		—
Swaps Yen-US Dollar	¥	13,000		521,270	¥	13,000		581,948
Forwards US Dollar-Mexican peso	US$	1,744		1,600,666		—		—
Forwards US Dollar-Brazilian real	US$	100		44,280	US$	150		126,287
Swaps Swiss Franc-US Dollar	CHF	475		178,710		—		—
Swaps Euro-Brazilian real	€	450		359,671	€	300		1,080,552
Interest rate swap		Ps.200		916		—		—
Forwards Brazilian Real-US Dollar		—		—	BRL $	2,823		1,107,630
Forwards Euro-Brazilian real	€	400		330,427	€	150		123,005
Forwards US Dollar-Swiss franc	CHF	75		121,981		—		—
Forwards Euro-US Dollar	€	204		113,361	€	710		209,295

Total Assets				Ps. 8,037,384				Ps. 5,287,548

At December 31,

2017

2018

Instrument

Notional amount in
millions

Fair Value

Notional amount in
millions

Fair Value

Liabilities:

Swaps US Dollar-Euro

US$

2,092

Ps.

(8,340,970)

US$

2,025

Ps.

(5,114,863)

Swaps Pound sterling-Euro

740

(3,376,091)

740

(4,027,312)

Swap Pound sterling-US Dollar

2,010

(1,676,636)

2,010

(5,836,607)

Forwards US Dollar-Mexican Peso

—

US$

977

(772,704)

Forwards Euro-US Dollar

—

€

950

(333,586)

Call spread option

€

750

(48,422)

—

Put option

€

374

(482,645)

€

374

(988,669)

Call spread option

€

3,000

(434,696)

€

3,000

(33,838)

Total Liabilities

Ps.

(14,359,460)

Ps.

(17,107,579)

Non-current liability

Ps.

(3,756,921)

Ps.

(3,567,863)

Total current liability

Ps.

(10,602,539)

Ps.

(13,539,716)

The changes in the fair value of these derivative financial instruments for the years ended December 31, 2016, 2017 and 2018 amounted to a gain (loss) of Ps. (9,622,233), Ps. 8,192,567 and Ps. (4,686,407). Such amounts are included in the consolidated statements of comprehensive income as part of the caption “Valuation of derivatives interest cost from labor obligations and other financial items, net”.

The maturities of the notional amount of the derivatives are as follows:


Instrument	Notional amount in millions		2019		2020		2021		2022		2023 Thereafter
Assets
Swaps US Dollar-Mexican peso	US$			—		—		—		1,600		1,890
Swaps Yen-US Dollar	¥			—		—		—		—		13,000
Swaps Euro-Brazilian real	€			300		—		—		—		—
Forwards Brazilian Real-US Dollar		BRL		1,680		—		1,143		—		—
Forwards Euro-Brazilian Real	€			150		—		—		—		—
Forwards US Dollar-Brazilian Real	US$			150		—		—		—		—
Forwards Euro-US Dollar	€			710		—		—		—		—
Liabilities
Swaps US Dollar-Euro	US$			25		—		—		—		2,000
Swaps Pound sterling-Euro	£			—		—		—		—		740
Swap Pound sterling-US Dollar	£			—		550		—		—		1,460
Forwards US Dollar-Mexican Peso	US$			977		—		—		—		—
Forwards Euro-US Dollar	€			950		—		—		—		—
Put option	€			—		—		—		—		374
Call spread option	€			—		3,000		—		—		—