Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Exchange Rates of Local Currencies Translated to Mexican Pesos

•

For non-hyperinflationary economic environments, assets and liabilities are translated into Mexican pesos using the year-end exchange rate, equity is translated into Mexican pesos using the historical exchange rate, and the income statement and comprehensive income is translated using the exchange rate at the date of each transaction. The Company uses the average exchange rate of each month if the exchange rate does not fluctuate significantly.

Exchange Rates of Local Currencies Translated to Mexican Pesos⁽¹⁾

Country or Zone

Functional /
Recording Currency

Average Exchange
Rate for

Exchange Rate as of

2017

2016

2015

December 31,
2017

December 31,
2016

Guatemala

Quetzal

2.57

2.46

2.07

2.69

2.75

Costa Rica

Colon

0.03

0.03

0.03

0.04

Panama

U.S. dollar

18.93

18.66

15.85

19.74

20.66

Colombia

Colombian peso

0.01

0.01

0.01

0.01

Nicaragua

Cordoba

0.63

0.65

0.58

0.64

0.70

Argentina

Argentine peso

1.15

1.26

1.71

1.06

1.30

Venezuela a)

Bolivar

)

Brazil

Reais

5.94

5.39

4.81

5.97

6.34

Chile

Chilean peso

0.03

0.03

0.02

0.03

0.03

Euro Zone

Euro (€)

21.32

20.66

17.60

23.57

21.77

Peru

Nuevo Sol

5.78

5.53

4.99

6.08

6.15

Ecuador

Peso

18.93

18.66

15.85

19.74

20.66

Philippines

Philippine peso

0.38

0.39

0.35

0.40

0.41

(1)	Exchange rates published by the Central Bank of each country where the Company operates.

Disclosure of Recognition of Effects of Inflation in Countries with Hyperinflationary Economic Environments

As of December 31, 2017, 2016, and 2015, the operations of the Company are classified as follows:


Country	Cumulative Inflation 2015- 2017			Type of Economy	Cumulative Inflation 2014- 2016			Type of Economy	Cumulative Inflation 2013- 2015			Type of Economy
Mexico		12.7	%	Non-hyperinflationary		9.9	%	Non-hyperinflationary		10.5	%	Non-hyperinflationary
Guatemala		13.5	%	Non-hyperinflationary		10.6	%	Non-hyperinflationary		10.8	%	Non-hyperinflationary
Costa Rica		2.5	%	Non-hyperinflationary		5.1	%	Non-hyperinflationary		8.1	%	Non-hyperinflationary
Panama		2.3	%	Non-hyperinflationary		2.8	%	Non-hyperinflationary		5.1	%	Non-hyperinflationary
Colombia		17.5	%	Non-hyperinflationary		17.0	%	Non-hyperinflationary		12.8	%	Non-hyperinflationary
Nicaragua		12.3	%	Non-hyperinflationary		13.1	%	Non-hyperinflationary		15.8	%	Non-hyperinflationary
Argentina (a)		101.5	%	Non-hyperinflationary		99.7	%	Non-hyperinflationary		59.2	%	Non-hyperinflationary
Venezuela		30,690.0	%	Hyperinflationary		2,263.0	%	Hyperinflationary		562.9	%	Hyperinflationary
Brazil		21.1	%	Non-hyperinflationary		25.2	%	Non-hyperinflationary		24.7	%	Non-hyperinflationary
Philippines		7.5	%	Non-hyperinflationary		5.7	%	Non-hyperinflationary		8.3	%	Non-hyperinflationary
Euro Zone		2.72	%	Non-hyperinflationary		1.2	%	Non-hyperinflationary		0.9	%	Non-hyperinflationary
Chile		9.67	%	Non-hyperinflationary		12.2	%	Non-hyperinflationary		12.5	%	Non-hyperinflationary
Peru		9.28	%	Non-hyperinflationary		11.2	%	Non-hyperinflationary		10.8	%	Non-hyperinflationary
Ecuador		30.34	%	Non-hyperinflationary		8.4	%	Non-hyperinflationary		10.0	%	Non-hyperinflationary

Disclosure of Estimated Useful Lives of Company's Principal Assets

The estimated useful lives of the Company’s principal assets are as follows:


	Years
Buildings		25-50
Machinery and equipment		10-20
Distribution equipment		7-15
Refrigeration equipment		5-7
Returnable bottles		1.5-4
Leasehold improvements		The shorter of lease term or 15 years
Information technology equipment		3-5
Other equipment		3-10