Note 27. Revenues

27. 1 Nature of goods sold and services

The information sets below described the core activities of the business units from which the Company generates its revenues. According to the standard, the performance obligation for the Company’s business units are satisfied in a point in time that the control of good and services are totally transferred to the customers. For detail information about business segments, see Note 26.


Segment	Product or Service	Nature, timing to fulfill the performance obligation and significant payment terms
Coca-ColaFEMSA	Beverages sales	Includes the delivery of beverages to customers and wholesalers. The transaction prices are assigned to each product on sale based on its own sale price separately, net of promotions and discounts. The performance obligation is satisfied at the point in time the product on sale is delivered to the customer.
Coca-ColaFEMSA	Services revenues	Includes the rendering of manufacturing services, logistic and administrative services. The transaction prices are assigned to each product on sale based on its own sale price if sold separately. The performance obligation is satisfied at the point in time the product on sale is delivered to the customer.
FEMSA Comercio – Proximity Division	Products sales	Operates the largest chain of small-format stores in Mexico and Latin America including as some of its principal products as beers, cigarettes, sodas, other beverages and snacks. The performance obligation is satisfied at the time of the sale or at the moment the control of the product is transferred and the payment is made by the customer.
FEMSA Comercio – Proximity Division	Commercial revenues	Includes mainly the commercialization of spaces into within stores, and revenues related to promotions and financial services. The performance obligation is satisfied at the point in time the service is render to the customer.
FEMSA Comercio – Health Division	Product sales	The core products include patent and generic formulas of medicines, beauty products, medical supplements, housing and personnel care products. The performance obligation is satisfied at the point in time of the sale or at the moment the control of the product is transferred to the customer.
FEMSA Comercio – Health Division	Services revenues	Rending of services adding value as financial institutions, medical consultation and some financial services. The performance obligation is satisfied at the point in time of the rendering or the control is transferred to the customer.
FEMSA Comercio – Fuel Division	Services revenues	The core products are sold in the retail service stations as fuels, diesel, motor oils and other car care products. The performance obligation is satisfied at the point in time on sale and/or the control is transferred to the customer.
Others	Integral logistic services	Rendering a wide range of logistic services and maintenance of vehicles to subsidiaries and customers. The operations are on a daily, monthly or based upon the customer request. The revenue is recognized progressively during the time the service is rendered in a period no greater than a month.
	Production and sale of commercial refrigeration, plastic solutions and sale of equipment for food processing.	Involves the production, commercialization of refrigerators including its delivery and installation and offering of integral maintenance services at the point of sale. Design, manufacturing and recycling of plastic products. In addition, it includes the sale of equipment for food processing, storage and weighing. The revenue recognition is performed at the time in which the corresponding installation is concluded. The recognition of other business lines is performed at the point of sale or in time the control of the product is transferred to the customer.

27.2 Disaggregation of revenue

The information sets below described the disaggregation of revenue by geographic area, business unit and products and services categories in which the Company operates. The timing in which the revenues is recognized by the business units in the Company, is the point in the time in which control of goods and services is transferred in its entirely to the customer.


	Coca-Cola FEMSA						FEMSA Comercio – Proximity Division						FEMSA Comercio – Health Division						FEMSA Comercio – Fuel Division						Other Segments						Total
	2018⁽¹⁾		2017		2016		2018⁽¹⁾		2017		2016		2018⁽¹⁾		2017		2016		2018⁽¹⁾		2017		2016		2018⁽¹⁾		2017		2016		2018⁽¹⁾		2017		2016
By geographic areas:
Mexico and Central America ⁽²⁾	Ps.	100,162		92,643		87,557		166,040		148,652		132,433		7,898		7,359		7,159		46,936		38,388		28,616		31,918		29,211		25,224		352,954		316,253		280,989

South America⁽³⁾		82,180		86,608		71,293		1,418		1,181		795		43,841		40,062		36,252		—		—		—		10,350		10,467		8,001		137,789		138,318		116,341

Venezuela		—		4,005		18,868		—		—		—		—		—		—		—		—		—		25		54		181		25		4,059		19,049

Total revenues		182,342		183,256		177,718		167,458		149,833		133,228		51,739		47,421		43,411		46,936		38,388		28,616		42,293		39,732		33,406		490,768		458,630		416,379

Consolidation adjustments		5,160		4,678		4,269		290		202		4		—		—		—		—		—		—		15,574		13,818		12,599		21,024		18,698		16,872

Consolidated revenues		177,182		178,578		173,449		167,168		149,632		133,224		51,739		47,421		43,411		46,936		38,388		28,616		26,719		25,913		20,807		469,744		439,932		399,507

By products and/or services
Products sold in thepoint-of-sale	Ps.	182,342		183,256		177,718		167,458		149,834		133,228		51,739		47,421		43,411		46,936		38,388		28,616		13,240		12,667		10,274		461,715		431,566		393,247

Services revenues		—		—		—		—		—		—		—		—		—		—		—		—		29,053		27,064		23,132		29,053		27,064		23,132

Consolidation adjustments		5,160		4,678		4,269		290		202		4		—		—		—		—		—		—		15,574		13,818		12,599		21,024		18,698		16,872

Consolidated revenues		177,182		178,578		173,449		167,168		149,632		133,224		51,739		47,421		43,411		46,936		38,388		28,616		26,719		25,913		20,807		469,744		439,932		399,507

(1)	For IFRS 15 adoption purposes, the Company applies the modified retrospective method in which no comparative information is restated for previous periods. The Company recognized no adjustment as a result of adopting IFRS 15.

(2)	Central America includes Guatemala, Nicaragua, Costa Rica and Panama. Domestic (Mexico only) revenues were Ps. 319,792, Ps. 288,783 and Ps. 254,643 and during the years ended December 31, 2018, 2017 and 2016, respectively.

(3)

South America includes Brazil, Argentina, Colombia, Chile, Uruguay and Venezuela, although Venezuela is shown separately above. South America revenues include Brazilian revenues of Ps. 63,601, Ps. 64,345 and Ps. 48,924 during the years ended December 31, 2018, 2017 and 2016, respectively. South America revenues include Colombia revenues of Ps. 19,245, Ps. 17,545 and Ps. 17,027 during the years ended December 31, 2018, 2017 and 2016, respectively. South America revenues include Argentina revenues of Ps. 9,237, Ps. 13,938 and Ps. 12,340 during the years ended December 31, 2018, 2017 and 2016, respectively. South America revenues include Chile revenues of Ps. 44,576, Ps. 40,660 and Ps. 36,631 during the years ended December 31, 2018, 2017 and 2016, respectively. South America revenues include Uruguay revenue of Ps. 1,925 during the year ended in December 31,2018.

27.3 Contract Balances

As of December 31, 2018, no significant cost was identified incurred to obtain or accomplished a contract that might be capitalized as assets. No significant contacts have been entered into for which the Company has not performed all the obligations as well as additional costs associate to it.

27.4 Transaction price assigned to remained performance obligations

No performance obligations were identified in customer contracts that are not included in the transaction price, as a result of identified variable considerations per each business unit are part of the transaction price through be consider highly probable that not occurs a significant reversion of the revenue amount.