XML 43 R23.htm IDEA: XBRL DOCUMENT
v3.21.1

Employee Benefits | 12 Months Ended
--- | ---
Dec. 31, 2020
IFRS Text Block [Abstract] |
Employee Benefits | Note 17. Employee Benefits The Company has various labor liabilities for employee benefits in connection with pension, seniority and post-retirement medical benefits. Benefits vary depending upon the country where the individual employees are located. Presented below is a discussion of the Company’s labor liabilities in Mexico, which comprise the substantial majority of those recorded in the consolidated financial statements. 17.1 Assumptions The Company annually evaluates the reasonableness of the assumptions used in its labor liability for post-employment and other non-current employee benefits computations. Actuarial calculations for pension and retirement plans, seniority premiums and post-retirement medical benefits, as well as the associated cost for the period, were determined using the following long-term assumptions for Mexico:
|  | December 31, |  | December 31, |  | December 31, |
Mexico |  | 2020 |  | 2019 |  | 2018 |
Financial: |  |  |  |  |  |  |
Discount rate used to calculate the defined benefit obligation |  | 7.20 | % | 7.50 | % | 9.40 | %
Salary increase |  | 4.50 | % | 4.50 | % | 4.60 | %
Future pension increases |  | 3.50 | % | 3.50 | % | 3.60 | %
Healthcare cost increase rate |  | 5.10 | % | 5.10 | % | 5.10 | %
Biometric: |  |  |  |  |  |  |
Mortality (1) |  | EMSSA 2009 |  | EMSSA 2009 |  | EMSSA 2009 |
Disability (2) |  | IMSS‑97 |  | IMSS‑97 |  | IMSS‑97 |
Normal retirement age |  | 60 years |  | 60 years |  | 60 years |
Employee turnover table (3) |  | BMAR 2007 |  | BMAR 2007 |  | BMAR 2007 |
Measurement date December:
| (1) |  | EMSSA. Mexican Experience of social security.
| (2) |  | IMSS. Mexican Experience of Instituto Mexicano del Seguro Social.
| (3) |  | BMAR. Actuary experience.
In Mexico, the methodology used to determine the discount rate was the Yield or Internal Rate of Return (IRR) which involves a yield curve. In this case, the expected rates for each period were taken from a yield curve of Mexican Federal Government Treasury Bonds (known as CETES in Mexico) because there is no deep market in high quality corporate obligations in Mexican pesos. In Mexico upon retirement, the Company purchases an annuity for the employee, which will be paid according to the option chosen by the employee. Based on these assumptions, the amounts of benefits expected to be paid out in the following years are as follows:
|  | Pension and |  |  |  | Post-Retirement |  |  |
|  | Retirement |  | Seniority |  | Medical |  |  |
|  | Plans |  | Premiums |  | Services |  | Total
2021 |  | Ps. | 702 |  | Ps. | 198 |  | Ps. | 26 |  | Ps. | 926
2022 |  |  | 335 |  |  | 168 |  |  | 28 |  |  | 531
2023 |  |  | 384 |  |  | 168 |  |  | 29 |  |  | 581
2024 |  |  | 398 |  |  | 170 |  |  | 31 |  |  | 599
2025 |  |  | 496 |  |  | 176 |  |  | 33 |  |  | 705
2026 to 2030 |  |  | 3,118 |  |  | 791 |  |  | 199 |  |  | 4,108
17.2 Balances of the liabilities for employee benefits
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Pension and Retirement Plans: |  |  |  |  |  |
Defined benefit obligation |  | Ps. | 7,679 |  | Ps. | 7,193
Pension plan funds at fair value |  |  | (2,788) |  |  | (2,678)
Net defined benefit liability |  | Ps. | 4,891 |  | Ps. | 4,515
Seniority Premiums: |  |  |  |  |  |
Defined benefit obligation |  | Ps. | 1,763 |  | Ps. | 1,237
Seniority premium plan funds at fair value |  |  | (137) |  |  | (127)
Net defined benefit liability |  | Ps. | 1,626 |  | Ps. | 1,110
Postretirement Medical Services: |  |  |  |  |  |
Defined benefit obligation |  | Ps. | 812 |  | Ps. | 797
Medical services funds at fair value |  |  | (76) |  |  | (75)
Net defined benefit liability |  | Ps. | 736 |  | Ps. | 722
Total Employee Benefits |  | Ps. | 7,253 |  | Ps. | 6,347
17.3 Trust assets Trust assets consist of fixed and variable return financial instruments recorded at fair value (Level 1), which are invested as follows:
|  | December 31, | December 31, |
|  | 2020 | 2019 |
Fixed return: |  |  |  |  |
Traded securities |  | 27 | % | 9 | %
Bank instruments |  | 9 | % | 23 | %
Federal government instruments of the respective countries |  | 29 | % | 33 | %
Variable return: |  |  |  |  |
Publicly traded shares |  | 35 | % | 35 | %
|  | 100 | % | 100 | %
In Mexico, the regulatory framework for pension plans is established in the Income Tax Law and its Regulations, the Federal Labor Law and the Mexican Social Security Institute Law. None of these laws establish minimum funding levels or a minimum required level of contributions. In Mexico, the Income Tax Law requires that, in the case of private plans, certain notifications must be submitted to the authorities and a certain level of instruments must be invested in Federal Government securities among others. The Company’s various pension plans have a technical committee that is responsible for verifying the correct operation of the plan with regard to the payment of benefits, actuarial valuations of the plan, and supervise the trustee. The committee is responsible for determining the investment portfolio and the types of instruments the fund will be invested in. This technical committee is also responsible for verifying the correct operation of the plans in all of the countries in which the Company has these benefits. The risks related to the Company’s employee benefit plans are primarily attributable to the plan assets. The Company’s plan assets are invested in a diversified portfolio, which considers the term of the plan so as to invest in assets whose expected return coincides with the estimated future payments. Since the Mexican Tax Law limits the plan’s asset investment to 10% for related parties, this risk is not considered to be significant for purposes of the Company’s Mexican subsidiaries. In Mexico, the Company’s policy is to invest at least 30% of the fund assets in Mexican Federal Government instruments. Guidelines for the target portfolio have been established for the remaining percentage and investment decisions are made to comply with these guidelines insofar as the market conditions and available funds allow. In Mexico, the amounts and types of securities of the Company in related parties included in portfolio fund are as follows:
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Debt: |  |  |  |  |  |
El Puerto de Liverpool, S.A.B. de C.V. |  | Ps. | 30 |  | Ps. | 30
Grupo Industrial Bimbo, S.A.B. de C. V. |  |  | 5 |  |  | 31
BBVA Bancomer, S.A de C.V. |  |  | 10 |  |  | 20
Grupo Financiero Banorte, S.A.B. de C.V. |  |  | — |  |  | 8
Grupo Financiero Scotiabank Inverlat, S.A. de C.V. |  |  | 10 |  |  | 10
Equity: |  |  |  |  |  |
CEMEX, S.A.B. de C.V. |  |  | 8 |  |  | 12
Grupo Financiero Banorte, S.A.B. de C.V. |  |  | 8 |  |  | 1
Alfa, S.A.B. de C.V. |  |  | 3 |  |  | 6
El Puerto de Liverpool, S.A.B. de C.V. |  |  | — |  |  | 2
Grupo Aeroportuario del Suereste, S.A.B. de C.V. |  |  | 2 |  |  | —
Others |  |  | 4 |  |  | 3
For the years ended December 31, 2020 and 2019, the Company did not make significant contributions to the plan assets and does not expect to make material contributions to the plan assets during the following fiscal year. There are no restrictions placed on the trustee’s ability to sell those securities. As of December 31, 2020 and 2019, the plan assets did not include securities of the Company in portfolio funds. 17.4 Amounts recognized in the consolidated income statements and the consolidated statement of comprehensive income
|  | Income Statement |  | AOCI (1)
|  |  |  |  |  | Gain or |  | Net Interest on |  |
|  |  |  |  |  | Loss on |  | the Net Defined |  | Remeasurements
|  | Current |  | Past Service |  | Settlement or |  | Benefit |  | of the Net Defined
December 31, 2020 |  | Service Cost |  | Cost |  | Curtailment |  | Liability |  | Benefit Liability
Pension and retirement plans |  | Ps. | 372 |  | Ps. | 73 |  | Ps. | — |  | Ps. | 305 |  | Ps. | 2,024
Seniority premiums |  |  | 239 |  |  | — |  |  | — |  |  | 91 |  |  | 483
Postretirement medical services |  |  | 44 |  |  | — |  |  | — |  |  | 54 |  |  | 342
Total |  | Ps. | 656 |  | Ps. | 73 |  | Ps. | — |  | Ps. | 450 |  | Ps. | 2,849
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pension and retirement plans |  | Ps. | 279 |  | Ps. | (45) |  | Ps. | 2 |  | Ps. | 290 |  | Ps. | 1,608
Seniority premiums |  |  | 139 |  |  | 161 |  |  | — |  |  | 57 |  |  | 162
Postretirement medical services |  |  | 15 |  |  | — |  |  | — |  |  | 32 |  |  | 396
Total |  | Ps. | 433 |  | Ps. | 116 |  | Ps. | 2 |  | Ps. | 379 |  | Ps. | 2,166
|  |  |  |  |  | Gain or |  | Net Interest on |  |
|  |  |  |  |  | Loss on |  | the Net Defined |  | Remeasurements
|  | Current |  | Past Service |  | Settlement or |  | Benefit |  | of the Net Defined
December 31, 2018 |  | Service Cost |  | Cost |  | Curtailment |  | Liability |  | Benefit Liability
Pension and retirement plans |  | Ps. | 318 |  | Ps. | — |  | Ps. | (5) |  | Ps. | 304 |  | Ps. | 668
Seniority premiums |  |  | 125 |  |  | — |  |  | (8) |  |  | 49 |  |  | (63)
Postretirement medical services |  |  | 25 |  |  | — |  |  | (1) |  |  | 34 |  |  | 41
Total |  | Ps. | 468 |  | Ps. | — |  | Ps. | (14) |  | Ps. | 387 |  | Ps. | 646
| (1) |  | Amounts accumulated in other comprehensive income as of the end of the period.
For the years ended December 31, 2020, 2019 and 2018, labor costs of Ps. 728, Ps. 433 and Ps. 468 have been included in the consolidated income statements in costs of goods sold, administrative expenses and selling expenses. Remeasurements of the net defined benefit liability recognized in accumulated other comprehensive income are as follows:
|  | December 31, |  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2018
Amount accumulated in other comprehensive income as of the beginning of the period, net of tax |  | Ps. | 1,624 |  | Ps. | 475 |  | Ps. | 892
Actuarial (gains) arising from exchange rates |  |  | (6) |  |  | (30) |  |  | (21)
Remeasurements during the year, net of tax |  |  | 312 |  |  | 100 |  |  | 221
Actuarial losses and (gains) arising from changes in financial assumptions |  |  | 139 |  |  | 1,071 |  |  | (617)
Actuarial losses and (gains) arising from changes in demographic assumptions |  |  | 27 |  |  | — |  |  | —
Effect on settlement |  |  | 3 |  |  | 8 |  |  | —
Amount accumulated in other comprehensive income as of the end of the period, net of tax |  | Ps. | 2,099 |  | Ps. | 1,624 |  | Ps. | 475
Remeasurements of the net defined benefit liability include the following:
| · |  | The return on plan assets, excluding amounts included in net interest expense.
| · |  | Actuarial gains and losses arising from changes in demographic assumptions.
| · |  | Actuarial gains and losses arising from changes in financial assumptions.
17.5 Changes in the balance of the defined benefit obligation for post-employment
|  | December 31, |  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2018
Pension and Retirement Plans: |  |  |  |  |  |  |  |  |
Initial balance |  | Ps. | 7,193 |  | Ps. | 6,189 |  | Ps. | 7,370
Current service cost |  |  | 372 |  |  | 279 |  |  | 318
Past service (credit) cost |  |  | 73 |  |  | (45) |  |  | —
Interest expense |  |  | 506 |  |  | 530 |  |  | 484
Settlement / Curtailment |  |  | — |  |  | 2 |  |  | (5)
Remeasurements of the net defined benefit obligation |  |  | 326 |  |  | 859 |  |  | (740)
Foreign exchange loss (gain) |  |  | 37 |  |  | (69) |  |  | (86)
Benefits paid |  |  | (828) |  |  | (582) |  |  | (450)
(Derecognition) acquisitions |  |  | — |  |  | 30 |  |  | (702)
Ending balance |  | Ps. | 7,679 |  | Ps. | 7,193 |  | Ps. | 6,189
Seniority Premiums: |  |  |  |  |  |  |  |  |
Initial balance |  | Ps. | 1,237 |  | Ps. | 772 |  | Ps. | 783
Current service cost |  |  | 239 |  |  | 139 |  |  | 125
Past service cost |  |  | — |  |  | 161 |  |  | —
Interest expense |  |  | 101 |  |  | 68 |  |  | 57
Settlement |  |  | 13 |  |  | — |  |  | (8)
Remeasurements of the net defined benefit obligation |  |  | 309 |  |  | 230 |  |  | (115)
Benefits paid |  |  | (136) |  |  | (133) |  |  | (77)
Acquisitions |  |  | — |  |  | — |  |  | 7
Ending balance |  | Ps. | 1,763 |  | Ps. | 1,237 |  | Ps. | 772
Postretirement Medical Services: |  |  |  |  |  |  |  |  |
Initial balance |  | Ps. | 797 |  | Ps. | 418 |  | Ps. | 524
Current service cost |  |  | 44 |  |  | 15 |  |  | 25
Interest expense |  |  | 61 |  |  | 38 |  |  | 39
Curtailment / Settlement |  |  | — |  |  | — |  |  | (1)
Remeasurements of the net defined benefit obligation |  |  | (59) |  |  | 356 |  |  | (143)
Benefits paid |  |  | (31) |  |  | (30) |  |  | (26)
Ending balance |  | Ps. | 812 |  | Ps. | 797 |  | Ps. | 418
17.6 Changes in the balance of plan assets
|  | December 31, |  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2018
Total Plan Assets: |  |  |  |  |  |  |  |  |
Initial balance |  | Ps. | 2,880 |  | Ps. | 2,680 |  | Ps. | 3,304
Actual return on trust assets |  |  | 113 |  |  | 174 |  |  | 47
Foreign exchange loss (gain) |  |  | 3 |  |  | 2 |  |  | (1)
Life annuities |  |  | 5 |  |  | 24 |  |  | 35
Benefits paid |  |  | — |  |  | — |  |  | (1)
(Derecognition) acquisitions |  |  | — |  |  | — |  |  | (704)
Ending balance |  | Ps. | 3,001 |  | Ps. | 2,880 |  | Ps. | 2,680
As a result of the Company’s investments in life annuities plan, management does not expect it will need to make material contributions to plan assets in order to meet its future obligations. 17.7 Variation in assumptions The Company decided that the relevant actuarial assumptions that are subject to sensitivity and valuated through the projected unit credit method, are the discount rate, the salary increase rate and healthcare cost increase rate. The reasons for choosing these assumptions are as follows:
| · |  | Discount rate: The rate that determines the value of the obligations over time.
| · |  | Salary increase rate: The rate that considers the salary increase which implies an increase in the benefit payable.
| · |  | Healthcare cost increase rate: The rate that considers the trends of health care costs which implies an impact on the postretirement medical service obligations and the cost for the year.
The following table presents the amount of defined benefit plan expense and OCI impact in absolute terms of a variation of 1% in the assumptions on the net defined benefit liability associated with the Company’s defined benefit plans. The sensitivity of this 1% on the significant actuarial assumptions is based on a projected long-term discount rates for Mexico and a yield curve projection of long-term Mexican government bonds - CETES:
+1%: |  | Income Statement |  | OCI(1)
|  |  |  |  | Gain or |  | Effect of Net |  | Remeasurements
Discount rate used to calculate the defined benefit |  |  |  |  | Loss on |  | Interest on the Net |  | of the Net Defined
obligation and the net interest on the net defined |  | Current |  | Settlement or |  | Defined Benefit |  | Benefit Liability
benefit liability |  | Service Cost |  | Curtailment |  | Liability (Asset) |  | (Asset)
Pension and retirement plans |  | Ps. | 400 |  | Ps. | — |  | Ps. | 237 |  | Ps. | 1,784
Seniority premiums |  |  | 223 |  |  | — |  |  | 80 |  |  | 432
Postretirement medical services |  |  | 40 |  |  | — |  |  | 47 |  |  | 290
Total |  | Ps. | 663 |  | Ps. | — |  | Ps. | 364 |  | Ps. | 2,506
Expected salary increase |  |  |  |  |  |  |  |  |  |  |  |
Pension and retirement plans |  | Ps. | 466 |  | Ps. | — |  | Ps. | 339 |  | Ps. | 1,984
Seniority premiums |  |  | 241 |  |  | — |  |  | 93 |  |  | 514
Seniority premiums |  |  | 44 |  |  | — |  |  | 54 |  |  | 342
Total |  | Ps. | 751 |  | Ps. | — |  | Ps. | 486 |  | Ps. | 2,840
Assumed rate of increase in healthcare costs |  |  |  |  |  |  |  |  |  |  |  |
Postretirement medical services |  | Ps. | 52 |  | Ps. | — |  | Ps. | 64 |  | Ps. | 375
-1%: |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Gain or |  | Effect of Net |  | Remeasurements
Discount rate used to calculate the defined benefit |  |  |  |  | Loss on |  | Interest on the Net |  | of the Net Defined
obligation and the net interest on the net defined |  | Current |  | Settlement or |  | Defined Benefit |  | Benefit Liability
benefit liability |  | Service Cost |  | Curtailment |  | Liability (Asset) |  | (Asset)
Pension and retirement plans |  | Ps. | 458 |  | Ps. | — |  | Ps. | 366 |  | Ps. | 2,025
Seniority premiums |  |  | 257 |  |  | — |  |  | 99 |  |  | 521
Postretirement medical services |  |  | 50 |  |  | — |  |  | 62 |  |  | 364
Total |  | Ps. | 765 |  | Ps. | — |  | Ps. | 527 |  | Ps. | 2,910
Expected salary increase |  |  |  |  |  |  |  |  |  |  |  |
Pension and retirement plans |  | Ps. | 396 |  | Ps. | — |  | Ps. | 265 |  | Ps. | 1,820
Seniority premiums |  |  | 235 |  |  | — |  |  | 90 |  |  | 432
Total |  | Ps. | 631 |  | Ps. | — |  | Ps. | 355 |  | Ps. | 2,252
Assumed rate of increase in healthcare costs |  |  |  |  |  |  |  |  |  |  |  |
Postretirement medical services |  | Ps. | 38 |  | Ps. | — |  | Ps. | 45 |  | Ps. | 276
| (1) |  | Amounts accumulated in other comprehensive income as of the end of the period.
17.8 Employee benefits expense For the years ended December 31, 2020, 2019 and 2018, employee benefits expenses recognized in the consolidated income statements as cost of goods sold, administrative and selling expenses are as follows:
|  | 2020 |  | 2019 |  | 2018
Wages and salaries |  | Ps. | 68,312 |  | Ps. | 64,776 |  | Ps. | 58,745
Social security costs |  |  | 11,595 |  |  | 11,494 |  |  | 10,486
Employee profit sharing |  |  | 1,112 |  |  | 1,205 |  |  | 1,294
Post-employment benefits |  |  | 1,002 |  |  | 795 |  |  | 842
Share-based payments |  |  | 575 |  |  | 200 |  |  | 405
Termination benefits |  |  | 201 |  |  | 169 |  |  | 132
|  | Ps. | 82,797 |  | Ps. | 78,639 |  | Ps. | 71,904

X
- Definition n/a + References No definition available. + Details
Name: | fmx_IfrsTextBlockAbstract
Namespace Prefix: | fmx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for employee benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 19 -IssueDate 2020-01-01 -Section Scope -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=19&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS19_g2-7_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfEmployeeBenefitsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration