Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Analysis of the Net Liability and Net Period Cost for Employee Benefit

An analysis of the net liability and net period cost for employee benefits is as

follows


	At December 31,
	2018		2019
Mexico		Ps. 85,517,190		Ps. 116,537,660
Puerto Rico		13,986,596		13,228,592
Brazil		5,666,694		9,503,738
Europe		12,705,926		12,827,318
Ecuador		448,608		409,750

Total		Ps. 118,325,014		Ps. 152,507,058


	For the year ended December 31
	2017		2018		2019
Mexico		Ps. 11,586,065		Ps. 12,046,208		Ps. 12,788,464
Puerto Rico		776,238		686,067		747,755
Brazil		735,855		579,432		511,964
Europe		385,689		619,039		2,526,957
Ecuador		152,335		58,354		34,425

		Ps. 13,636,182		Ps. 13,989,100		Ps. 16,609,565

Summary of Defined Benefit Obligation (DBO) and Plan Assets for the Pension and Other Benefit Obligation Plans

The defined benefit obligation (DBO) and plan assets for the pension and other benefit obligation plans, by country, are as follows:


	At December 31
	2018								2019
	DBO		Plan Assets		Effect of asset celling		Net employee benefit liability		DBO		Plan Assets		Effect of asset celling		Net employee benefit liability
Mexico		Ps. 247,997,060		Ps. (163,404,418)		Ps.		Ps. 84,592,642		Ps. 280,602,176		Ps. (164,910,346)		Ps.		Ps. 115,691,830
Puerto Rico		35,220,889		(21,234,293)				13,986,596		35,803,893		(22,575,301)				13,228,592
Brazil		18,795,315		(19,032,411)		5,087,543		4,850,447		21,412,097		(18,815,174)		4,428,021		7,024,944
Europe		4,477,042						4,477,042		4,538,543						4,538,543

Total		Ps. 306,490,306		Ps. (203,671,122)		Ps. 5,087,543		Ps. 107,906,727		Ps. 342,356,709		Ps. (206,300,821)		Ps. 4,428,021		Ps. 140,483,909

Summary of the Actuarial Results Generated for the Pension and Retirement Plans as well as the Medical Services


	At December 31, 2017
	DBO			Plan Assets			Effect of asset celling			Net employee benefit liability
Balance at the beginning of the year	Ps.	313,282,595		Ps.	(222,345,621	)	Ps.	7,083,218		Ps.	98,020,192
Current service cost		4,285,693									4,285,693
Interest cost on projected benefit obligation		28,922,385									28,922,385
Expected return on plan assets					(20,916,104	)					(20,916,104	)
Changes in the asset ceiling during the period and others								716,330			716,330
Past service costs and other					53,032						53,032
Actuarial gain for changes in experience		(35,145	)								(35,145	)
Actuarial gain from changes in demographic assumptions		(85	)								(85	)
Actuarial gain from changes in financial assumptions		(4,294	)								(4,294	)

Net period cost	Ps.	33,168,554		Ps.	(20,863,072	)	Ps.	716,330		Ps.	13,021,812
Actuarial loss for changes in experience		11,671,860									11,671,860
Actuarial gain from changes in demographic assumptions		(381,172	)								(381,172	)
Actuarial loss from changes in financial assumptions		2,438,078									2,438,078
Changes in the asset ceiling during the period and others								(856,188	)		(856,188	)
Return on plan assets greater than discount rate					(2,483,430	)					(2,483,430	)

Recognized in other comprehensive income	Ps.	13,728,766		Ps.	(2,483,430	)	Ps.	(856,188	)	Ps.	10,389,148
Contributions made by plan participants		198,713			(198,713	)					—
Contributions to the pension plan made by the Company					(2,697,621	)					(2,697,621	)
Benefits paid		(18,841,754	)		18,841,754						—
Payments to employees		(9,843,743	)								(9,843,743	)
Effect of translation		(2,579,506	)		2,058,099			(423,800	)		(945,207	)

Others	Ps.	(31,066,290	)	Ps.	18,003,519		Ps.	(423,800	)	Ps.	(13,486,571	)
Balance at the end of the year		329,113,625			(227,688,604	)		6,519,560			107,944,581
Less short-term portion		(172,406	)								(172,406	)

Non-current obligation	Ps.	328,941,219		Ps.	(227,688,604)		Ps.	6,519,560		Ps.	107,772,175


	At December 31, 2018
	DBO			Plan Assets			Effect of asset celling			Net employee benefit liability
Balance at the beginning of the year	Ps.	329,113,625		Ps.	(227,688,604	)	Ps.	6,519,560		Ps.	107,944,581
Current service cost		3,322,813									3,322,813
Interest cost on projected benefit obligation		30,185,257									30,185,257
Expected return on plan assets					(20,804,104	)					(20,804,104	)
Changes in the asset ceiling during the period and others								587,373			587,373
Past service costs and other					157,765						157,765
Actuarial gain for changes in experience		(7,222	)								(7,222	)
Actuarial loss from changes in demographic assumptions		134,625									134,625
Actuarial gain from changes in financial assumptions		(24,890	)								(24,890	)

Net period cost	Ps.	33,610,583		Ps.	(20,646,339	)	Ps.	587,373		Ps.	13,551,617
Actuarial gain for changes in experience		(21,283,470	)								(21,283,470	)
Actuarial loss from changes in demographic assumptions		68,482									68,482
Actuarial gain from changes in financial assumptions		(1,246,539	)								(1,246,539	)
Changes in the asset ceiling during the period and others								(1,055,409	)		(1,055,409	)
Return on plan assets greater than discount rate					23,503,296						23,503,296

Recognized in other comprehensive income	Ps.	(22,461,527	)	Ps.	23,503,296		Ps.	(1,055,409	)	Ps.	(13,640	)
Contributions made by plan participants		173,722			(173,722	)					—
Contributions to the pension plan made by the Company					(1,565,792	)					(1,565,792	)
Benefits paid		(19,546,541	)		19,546,541						—
Payments to employees		(10,651,938	)								(10,651,938	)
Effect of translation		(3,535,477	)		3,353,498			(963,981	)		(1,145,960	)

Others	Ps.	(33,560,234	)	Ps.	21,160,525		Ps.	(963,981	)	Ps.	(13,363,690	)
Balance at the end of the year		306,702,447			(203,671,122	)		5,087,543			108,118,868
Less short-term portion		(212,141	)								(212,141	)

Non-current obligation	Ps.	306,490,306		Ps.	(203,671,122	)	Ps.	5,087,543		Ps.	107,906,727

	At December 31, 2019
	DBO			Plan Assets			Effect of asset celling			Net employee benefit liability
Balance at the beginning of the year	Ps.	306,702,447		Ps.	(203,671,122)		Ps.	5,087,543		Ps.	108,118,868
Current service cost		2,591,975									2,591,975
Interest cost on projected benefit obligation		31,001,348									31,001,348
Expected return on plan assets					(20,070,037	)					(20,070,037	)
Changes in the asset ceiling during the period and others								445,743			445,743
Past service costs and others					144,481						144,481
Actuarial gain for changes in experience		(22,599	)								(22,599	)
Actuarial gain from changes in demographic assumptions		(129	)								(129	)
Actuarial loss from changes in financial assumptions		36,163									36,163

Net period cost	Ps.	33,606,758		Ps.	(19,925,556)		Ps.	445,743		Ps.	14,126,945
Actuarial loss for changes in experience		31,606,323									31,606,323
Actuarial gain from changes in demographic assumptions		(339,657	)								(339,657	)
Actuarial loss from changes in financial assumptions		7,207,072									7,207,072
Changes in the asset ceiling during the period and others								(712,064	)		(712,064	)
Return on plan assets greater than discount rate					423,514						423,514

Recognized in other comprehensive income	Ps.	38,473,738		Ps.	423,514		Ps.	(712,064	)	Ps.	38,185,188
Contributions made by plan participants		155,188			(155,188	)					—
Contributions to the pension plan made by the Company					(1,337,610	)					(1,337,610	)
Benefits paid		(15,836,928	)		15,836,928						—
Payments to employees		(16,996,920	)								(16,996,920	)
Effect of translation		(3,534,509	)		2,528,213			(393,201	)		(1,399,497	)

Others	Ps.	(36,213,169)		Ps.	16,872,343		Ps.	(393,201	)	Ps.	(19,734,027)
Balance at the end of the year		342,569,774			(206,300,821	)		4,428,021			140,696,974
Less short-term portion		(213,065	)								(213,065	)

Non-current obligation	Ps.	342,356,709		Ps.	(206,300,821)		Ps.	4,428,021		Ps.	140,483,909

Schedule of Plan Assets Invested

Plan assets are invested in:


	At December 31
	2018						2019
	Puerto Rico		Brazil		Mexico		Puerto Rico		Brazil		Mexico
Equity instruments		37%		—		39%		41%		—		36%
Debt instruments		60%		94%		61%		58%		94%		64%
Others		3%		6%		—		1%		6%		—

		100%		100%		100%		100%		100%		100%

Summary of Assumptions Used in Determining the Net Period Cost


	2017										2018									2019
	Puerto Rico		Brazil			Mexico			Europe		Puerto Rico		Brazil			Mexico		Europe		Puerto Rico		Brazil			Mexico		Europe
Discount rate and long-term rate return		3.61%		10.18	%		10.70	%		1.0%, 1.5% & 2.00%		4.45%		9.10	%		11.81%		1.25%, 1.75% & 2.00%		3.23%		7.03	%		10.50%		0.75%, 1.00% & 1.25%
Rate of future salary increases		2.75%		4.50	%		4.50	%		3.0.%, 3.5% & 4.4%		2.75%		4.00	%		3.55%		3.0.%, 3.5% & 4.4%		2.75%		3.80	%		3.20%		3.00%, 3.50% & 4.40%
Percentage of increase in health care costs for the coming year		3.57%		11.00	%							3.87%		10.50	%						3.18%		10.30	%
Year to which this level will be maintained		N/A		2028								N/A		2029							N/A		2029
Rate of increase of pensions										1.60%									1.60%									1.60%
Employee turnover rate*										0.0%-1.72%									0.0%-1.51%									0.00%-1.38%

*	Depending on years of service

Summary of Increase (Decrease) Would Have Resulted in the DBO Pension and Other Benefits


	100 points			+100 points
Discount rate	Ps.	30,321,815		Ps.	(26,138,603	)
Health care cost trend rate	Ps.	(878,071	)	Ps.	1,032,650

Summary of Long-Term Direct Employee Benefits

Balance at
December 31,
2017

Applications

Balance at
December 31,
2017

Effect of
translation

Increase of
the year

Payments

Reversals

Long-term direct employee benefits

Ps.

10,158,036

Ps.

(493,795

)

Ps.

1,750,831

Ps.

(2,079,880)

Ps.

(1,223,414)

Ps.

8,111,778

Balance at
December 31,
2018

Applications

Balance at
December 31,
2019

Effect of
translation

Increase of
the year

Payments

Reversals

Long-term direct employee benefits

Ps.

8,111,778

Ps.

(518,180

)

Ps.

2,528,224

Ps.

(1,946,055)

Ps.

—

Ps.

8,175,767