The Company’s financial assets and liabilities that are measured at fair value are based on level 1 and 2 applying the income approach method, which estimates the fair value based on expected cash flows discounted to net present value. The following table summarizes the Company’s financial assets and liabilities measured at fair value, as of December 31, 2021, and 2020:

The fair value of bank loans is calculated based on the discounted value of contractual cash flows whereby the discount rate is estimated using rates currently offered for the debt of similar amounts and maturities, which is considered to be level 2 in the fair value hierarchy. The fair value of the Company’s publicly traded debt is based on quoted market prices as of December 31, 2021 and 2020, which is considered to be level 1 in the fair value hierarchy.

The Company uses interest rate swaps to offset the interest rate risk associated with its borrowings, under which it pays amounts based on a fixed rate and receives amounts based on a floating rate. These instruments have been designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value. The fair value is estimated using formal technical models. The valuation method involves discounting to present value the expected cash flows of interest, calculated from the rate curve of the cash flow currency, and expresses the net result in the reporting currency. Changes in fair value are recorded in cumulative other comprehensive income, net of taxes until the hedged amount is recorded in the consolidated income statements.

On December 31, 2021, the Company has the following outstanding interest rate swap agreements:

On December 31, 2020, the Company has the following outstanding interest rate swap agreements:

The net effect of expired contracts treated as hedges is recognized as interest expense within the consolidated income statements.

The Company has entered into forward agreements to reduce its exposure to the risk of exchange rate fluctuations between the Mexican peso and other currencies. Foreign exchange forward contracts measured at fair value are designated hedging instruments in cash flow hedges of forecast inflows in euros and forecast purchases of raw materials in U.S. dollars. These forecast transactions are highly probable.

These instruments have been designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value which is determined based on prevailing market exchange rates to terminate the contracts at the end of the period. The price agreed in the instrument is compared to the current price of the market forward currency and is discounted to the present value of the rate curve of the relevant currency. Changes in the fair value of these forwards are recorded as part of cumulative other comprehensive income, net of taxes. Net gain/loss on expired contracts is recognized as part of the cost of goods sold when the raw material is included in sale transactions, and as a part of foreign exchange when the inflow in euros is received.

On December 31, 2021, the Company had the following outstanding forward agreements to purchase foreign currency:

On December 31, 2020, the Company had the following outstanding forward agreements to purchase foreign currency:

The Company has contracted for several cross-currency swaps to reduce the risks of exchange rate and interest rate fluctuations associated with its borrowings denominated in U.S. dollars and other foreign currencies. Cross-currency swaps contracts are designated as hedging instruments through which the Company changes the debt profile to its functional currency to reduce exchange exposure.

These instruments are recognized in the consolidated statement of financial position at their estimated fair value which is estimated using formal technical models. The valuation method involves discounting to present value the expected cash flows of interest, calculated from the rate curve of the cash foreign currency, and expresses the net result in the reporting currency. These contracts are designated as financial instruments at fair value through profit or loss. The fair values changes related to those cross-currency swaps are recorded under the caption “market value gain (loss) on financial instruments,” net of changes related to the long-term liability, within the consolidated income statements.

The Company has cross-currency contracts designated as cash flow hedges and are recognized in the consolidated statement of financial position at their estimated fair value. Changes in fair value are recorded in cumulative other comprehensive income, net of taxes until such time as the hedge amount is recorded in the consolidated income statement.

On December 31, 2021, the Company had the following outstanding cross–currency swap agreements:

On December 31, 2020, the Company had the following outstanding cross–currency swap agreements:

The Company has entered into various commodity price contracts to reduce its exposure to the risk of fluctuation in the costs of certain raw materials. The fair value is estimated based on the market valuations to terminate the contracts at the end of the period. These instruments are designated as cash flow hedges and the changes in the fair value are recorded as part of “cumulative other comprehensive income.”

The fair value of expired commodity price contracts was recorded in the cost of goods sold where the hedged item was recorded also in the cost of goods sold.

On December 31, 2021, Coca-Cola FEMSA had the following aluminum price contracts:

On December 31, 2020, Coca-Cola FEMSA had the following aluminum price contracts:

On December 31, 2021, Coca-Cola FEMSA had the following PX+MEG (resine) contracts:

On December 31, 2020, Coca-Cola FEMSA had the following PX+MEG (resine) contracts:

On September 30, 2020, Coca-Cola FEMSA announced that its joint venture with The Coca-Cola Company (Compañía Panameña de Bebidas, S.A.P.I. de C.V.) successfully sold 100% of its stock interest in Estrella Azul, a dairy products company in Panama. As part of the transaction, the company agreed with the buyer that we could receive payments in the future if the business of Estrella Azul achieves certain volume and EBITDA targets during the 2022-2027 period. The Company estimated the amount of the payments to be received based on the forecasts of the business (level 3 inputs) and calculated their net present value. As of December 31, 2021 and 2020, the financial assets recognized in the consolidated statement of financial position have a total value of Ps. 5 and Ps. 8, respectively.

(1)	This amount corresponds to the settlement of cross-currency swaps portfolio in Brazil presented as part of the other financial activities.

21.8 Net effect of changes in fair value of derivative financial instruments that did not meet the hedging criteria for accounting purposes.


	Impact in Consolidated
Derivative	Income Statement	2021		2020		2019
Embedded derivatives	Market value gain on financial statements	Ps.	—	Ps.	—	Ps.	4
Cross-currency swaps	Market value gain (loss) on financial statements		80		(212)		(293)

21.9 Net effect of expired contracts that did not meet the criteria for hedge accounting purposes


	Impact in Consolidated
Type of Derivatives	Income Statement	2021		2020		2019
Cross-currency swaps	Market value loss on financial instruments	Ps.	—	Ps.	(212)	Ps.	(293)
Embedded derivatives	Market value gain on financial instruments		—		—		4

21.10 Risk management

The Company has exposure to the following financial risks:

●	Market risk;

●	Interest rate risk;

●	Liquidity risk; and

●	Credit risk.

The Company determines the existence of an economic relationship between the hedging instruments and the hedged item based on the currency, amount and timing of their respective cash flows. The Company evaluates whether the derivative designated in each hedging relationship is expected to be effective and that it has been effective to offset changes in the cash flows of the hedged item using the hypothetical derivative method.

In these hedging relationships, the main sources of inefficiency are:

●	The effect of the credit risk of the counterparty and the Company on the fair value of foreign currency forward contracts; and

●	Changes in the periods covered.

21.10.1 Market risk

Market risk is the risk that the fair value or the future cash flow of a financial instrument will fluctuate because of changes in market prices. Market prices include currency risk and commodity price risk.

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and commodity prices. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk, and commodity prices risk including:

●	Forward agreements to purchase foreign currency to reduce its exposure to the risk of exchange rate fluctuations.

●	Cross-currency swaps to reduce its exposure to the risk of exchange rate fluctuations.

●	Commodity price contracts to reduce its exposure to the risk of fluctuation in the costs of certain raw materials.

The Company tracks the fair value (mark to market) of its derivative financial instruments and its possible changes using scenario analyses.

The following disclosures provide a sensitivity analysis of the market risks management considered to be reasonably possible at the end of the reporting period based on a stress test of the exchange rates according to an annualized volatility estimated with historic prices obtained for the underlying asset over a period, in the cases of derivative financial instruments related to foreign currency risk, which the Company is exposed to as it relates to in its existing hedging strategy:


	Change in
Foreign Currency Risk	Exchange Rate	Effect on Equity
2021
FEMSA ⁽¹⁾	+11% MXN/USD	Ps.	4
	‑11% MXN/USD		(4)
	+16% BRL/USD		37
	‑16% BRL/USD		(37)
Coca-Cola FEMSA	+11% MXN/USD		298
	‑11% MXN/USD		(298)
	+16% BRL/USD		284
	‑16% BRL/USD		(284)
	+4% UYU/USD		7
	‑4% UYU/USD		(7)
	+11% COP/USD		81
	‑11% COP/USD		(81)
	+1% ARS/USD		3
	‑1% ARS/USD		(3)
	+3% CRC/USD		10
	‑3% CRC/USD		(10)

2020
FEMSA ⁽¹⁾	+19% MXN/USD	Ps.	327
	‑19% MXN/USD		(327)
	+21% BRL/USD		240
	‑21% BRL/USD		(240)
Coca-Cola FEMSA	+19% MXN/USD		884
	‑19% MXN/USD		(884)
	+21% BRL/USD		357
	‑21% BRL/USD		(357)
	+9% UYU/USD		21
	‑9% UYU/USD		(21)
	+16% COP/USD		142
	‑16% COP/USD		(142)
	+2% ARS/USD		2
	‑2% ARS/USD		(2)

2019
FEMSA ⁽¹⁾	+9% MXN/EUR	Ps.	57
	‑9% MXN/EUR		(57)
Coca-Cola FEMSA	+13% BRL/USD		202
	‑13% BRL/USD		(202)
	+9% MXN/USD		739
	‑9% MXN/USD		(739)
	+13% BRL/USD		155
	‑13% BRL/USD		(155)
	+5% UYU/USD		23
	‑5% UYU/USD		(23)
	+10% COP/USD		54
	‑10% COP/USD		(54)
	+25% ARS/USD		88
	‑25% ARS/USD		(88)

(1)	Does not include Coca-Cola FEMSA.


	Change in
Cross Currency Swaps ^{(1) (2)}	Exchange Rate	Effect on Equity		Effect on Profit or Loss
2021
FEMSA ⁽³⁾	+13% CLP/USD	Ps.	—	Ps.	552
	‑13% CLP/USD		—		(552)
	+11% MXN/USD		—		3,404
	‑11% MXN/USD		—		(3,404)
	+11% COP/USD		—		235
	‑11% COP/USD		—		(235)
	+15% MXN/BRL		—		123
	‑15% MXN/BRL		—		(123)
	+6% EUR/USD		—		1,049
	‑6% EUR/USD		—		(1,049)
Coca-Cola FEMSA	+11% MXN/USD		1,645		—
	‑11% MXN/USD		(1,645)		—
	+16% BRL/USD		2,300		—
	‑16% BRL/USD		(2,300)		—

2020
FEMSA ⁽³⁾	+13% CLP/USD	Ps.	—	Ps.	717
	‑13% CLP/USD		—		(717)
	+19% MXN/USD		—		6,381
	‑19% MXN/USD		—		(6,381)
	+16% COP/USD		—		426
	‑16% COP/USD		—		(426)
	+19% MXN/BRL		—		238
	‑19% MXN/BRL		—		(238)
Coca-Cola FEMSA	+19% MXN/USD		5,507		—
	‑19% MXN/USD		(5,507)		—
	+21% BRL/USD		2,161		—
	‑21% BRL/USD		(2,161)		—

2019
FEMSA ⁽³⁾	+11% CLP/USD	Ps.	—	Ps.	546
	‑11% CLP/USD		—		(546)
	+9% MXN/USD		—		1,805
	‑9% MXN/USD		—		(1,805)
	+10% COP/USD		—		286
	‑10% COP/USD		—		(286)
	+13% MXN/BRL		—		177
	‑13% MXN/BRL		—		(177)
Coca-Cola FEMSA	+9% MXN/USD		2,315		—
	‑9% MXN/USD		(2,315)		—
	+13% BRL/USD		645		—
	‑13% BRL/USD		(645)		—

(1)	The sensitivity analysis effects include all subsidiaries of the Company.

(2)	Includes the sensitivity analysis effects of all derivative financial instruments related to foreign exchange risk.

(3)	Does not include Coca-Cola FEMSA.


	Change in
Net Cash in Foreign Currency ⁽¹⁾	Exchange Rate	Effect on Profit or Loss
2021
FEMSA ⁽²⁾	+10% EUR/ +11% USD	Ps.	4,931
	‑10% EUR/ -11% USD		(4,931)
Coca-Cola FEMSA	+11% USD		3,200
	‑11% USD		(3,200)

2020
FEMSA ⁽²⁾	+18% EUR/ +19 % USD	Ps.	8,827
	‑18% EUR/ -19 % USD		(8,827)
Coca-Cola FEMSA	+18% USD		5,755
	‑18% USD		(5,755)

2019
FEMSA ⁽²⁾	+9% EUR/ +9 % USD	Ps.	3,833
	‑9% EUR/ -9 % USD		(3,833)
Coca-Cola FEMSA	+8% USD		940
	‑8% USD		(940)

(1)	The sensitivity analysis effects include all subsidiaries of the Company.

(2)	Does not include Coca-Cola FEMSA.


	Change in
Commodity Price Contracts ⁽¹⁾	U.S.$ Rate		Effect on Equity
2021
Coca-Cola FEMSA	Sugar -28	%	Ps.	(714)
	Aluminum -24	%	Ps.	(39)

2020
Coca-Cola FEMSA	Sugar - 32	%	Ps.	(515)
	Aluminum - 16	%	Ps.	(289)

2019
Coca-Cola FEMSA	Sugar - 24	%	Ps.	(255)
	Aluminum - 15	%	Ps.	(1,164)

(1)	Effects on commodity price contracts are only in Coca-Cola FEMSA.

21.10.2 Interest rate risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to interest rate risk because it and its subsidiaries borrow funds at both fixed and variable interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and variable rate borrowings, and by the use of the different derivative financial instruments. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

The following disclosures provide a sensitivity analysis of the interest rate risks management considered to be reasonably possible at the end of the reporting period, which the Company is exposed to as it relates to its fixed and floating rate borrowings, which it considers in its existing hedging strategy:


	Change in
Interest Rate Swap ⁽¹⁾	Bps.	Effect on Equity
2021
FEMSA⁽²⁾	(100 Bps.)	Ps.	(212)

2020
FEMSA ⁽²⁾	(100 Bps.)	Ps.	(354)

2019
FEMSA ⁽²⁾	(100 Bps.)	Ps.	(432)
Coca-Cola FEMSA	(100 Bps.)		(37)

(1)	The sensitivity analysis effects include all subsidiaries of the Company.

(2)	Does not include Coca-Cola FEMSA.


Interest Effect of Unhedged Portion Bank Loans	2021		2020		2019
Change in interest rate		+100 Bps.		+100 Bps.		+100 Bps.
Effect on profit loss	Ps.	(627)	Ps.	(110)	Ps.	(50)

21.10.3 Liquidity risk

Each of the Company’s sub-holding companies generally finances its operational and capital requirements on an independent basis. As of December 31, 2021 and 2020, 47.4% and 50.2%, respectively of the Company’s outstanding consolidated total indebtedness was at the level of its sub-holding companies. This structure is attributable, in part, to the inclusion of third parties in the capital structure of Coca-Cola FEMSA. Currently, the Company’s management expects to continue financing its operations and capital requirements (e.g., acquisitions, investments or capital expenditures) when it is considering domestic funding at the level of its sub-holding companies, otherwise; it is generally more convenient that its foreign operations would be financed directly through the Company because of more favorable terms of its financing market conditions. Nonetheless, sub-holdings companies may decide to incur indebtedness in the future to finance their operations and capital requirements of the Company’s subsidiaries or significant acquisitions, investments or capital expenditures. As a holding company, the Company depends on dividends and other distributions from its subsidiaries to service the Company’s indebtedness.

The Company’s principal source of liquidity has generally been cash generated from its operations. The Company has traditionally been able to rely on cash generated from operations because a significant majority of the sales of Coca-Cola FEMSA and FEMSA Comercio – Proximity, FEMSA Comercio – Health and FEMSA Comercio – Fuel Divisions are on a cash or short-term credit basis, and FEMSA Comercio’s OXXO stores can finance a significant portion of their initial and ongoing inventories with supplier credit. The Company’s principal use of cash has generally been for capital expenditure programs, acquisitions, debt repayment and dividend payments.

Ultimate responsibility for liquidity risk management rests with the Company’s board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-, medium- and long-term funding and liquidity requirements. The Company manages liquidity risk by maintaining adequate cash reserves and continuously monitoring the forecast and actual cash flows, and with a low concentration of maturities per year.

The Company has access to credit from national and international banking institutions to meet treasury needs. The Company has the highest rating for Mexican companies (AAA) given by independent rating agencies, allowing the Company to evaluate capital markets in case it needs resources.

As part of the Company’s financing policy, management expects to continue financing its liquidity needs with cash from operations. Nonetheless, as a result of regulations in certain countries in which the Company operates, it may not be beneficially practicable to remit cash generated in local operations to fund cash requirements in other countries. If cash from operations in these countries is not sufficient to fund future working capital requirements and capital expenditures, management may decide, or be required, to fund cash requirements in these countries through local borrowings rather than remitting funds from another country. In the future the Company’s management may finance its working capital and capital expenditure needs with short-term or other borrowings.

The Company’s management continuously evaluates opportunities to pursue acquisitions or engage in joint ventures or other transactions. We would expect to finance any significant future transactions with a combination of cash from operations, long-term indebtedness and capital stock.

The Company’s sub-holding companies generally incur short-term indebtedness if they are temporarily unable to finance operations or meet any capital requirements with cash from operations. A significant decline in the business of any of the Company’s sub-holding companies may affect the sub-holding company’s ability to fund its capital requirements. A significant and prolonged deterioration in the economies in which we operate or in the Company’s businesses may affect the Company’s ability to obtain short-term and long-term credit or to refinance existing indebtedness on terms satisfactory to the Company’s management.

The Company presents the maturity dates associated with its long-term financial liabilities as of December 31, 2021, see Note 19. The Company generally makes payments associated with its long-term financial liabilities with cash generated from its operations.

The following table reflects all contractually fixed pay-offs for settlement, repayments and interest resulting from recognized financial liabilities. It includes expected net cash outflows from derivative financial liabilities that are in place as of December 31, 2021. Such expected net cash outflows are determined based on each particular settlement date of an instrument. The amounts disclosed are undiscounted net cash outflows for the respective upcoming fiscal years, based on the earliest date on which the Company could be required to pay. Cash outflows for financial liabilities (including interest and excluding IFRS 16 lease liabilities) without fixed amount or timing are based on economic conditions (like interest rates and foreign exchange rates) existing on December 31, 2021.

2027 and

2022

2023

2024

2025

2026

thereafter

Non-derivative financial liabilities:

Notes and bonds

Ps.

4,439

Ps.

17,183

Ps.

2,918

Ps.

4,551

Ps.

5,271

Ps.

233,001

Loans from Banks

3,428

1,941

2,732

—

Other

—

Derivative financial liabilities

993

1,233

404

1,672

147

(11,787)

The Company generally makes payments associated with its non-current financial liabilities with cash generated from its operations.

21.10.4 Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company only transacts with entities that are rated the equivalent of investment-grade and above. This information is supplied by independent rating agencies where available and, if not available, the Company uses other publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee.

The Company has a high receivable turnover; hence management believes credit risk is minimal due to the nature of its businesses, which have a large portion of their sales settled in cash. The Company’s maximum exposure to credit risk for the components of the statement of financial position at December 31, 2021 and 2020 is the carrying amounts, see Note 7.

The Company manages the credit risk related to its derivative portfolio by only entering into transactions with reputable and credit-worthy counterparties as well as by maintaining in some cases a Credit Support Annex (“CSA”) that establishes margin requirements, which could change upon changes to the credit ratings given to the Company by independent rating agencies. As of December 31, 2021, the Company concluded that the maximum exposure to credit risk related to derivative financial instruments is not significant given the high credit rating of its counterparties.

21.11 Cash flows hedges

The Company determines the existence of an economic relationship between the hedging instruments and the hedged item based on the currency, amount, and timing of their respective cash flows. The Company evaluates whether the derivative designated in each hedging relationship is expected to be effective and that it has been effective to offset changes in the cash flows of the hedged item using the hypothetical derivative method.

In these hedging relationships, the main sources of inefficiency are:

• The effect of the credit risk of the counterparty and the Company on the fair value of foreign currency forward contracts, which is not reflected in the change in the fair value of the hedged cash flows; and

• Changes in the period hedges.

As of December 31, 2021, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates are as follows:


	Maturity
	1‑6 months	6‑12 months		More than 12
Foreign exchange currency risk
Foreign exchange currency forward contracts
Net exposure	1,996	1,068		25
Average exchange rate MXN/USD	20.90	21.43		24.33
Net exposure	1,171	593		—
Average exchange rate BRL/USD	5.44	5.97		—
Net exposure	497	191		—
Average exchange rate COP/USD	3,858	3,952		—
Net exposure	280	—		—
Average exchange rate ARS/USD	122.56	—		—
Net exposure	165	48		—
Average exchange rate URY/USD	45.51	46.30		—
Net exposure	211	120		—
Average exchange rate CRC/USD	646.33	650.71		—
Foreign exchange currency swap contracts
Net exposure	—	—		44,507
Average exchange rate MXN/USD	—	—		16.41
Net exposure	—	—		15,026
Average exchange rate BRL/USD	—	—		4.47
Net exposure	—	—		885
Average exchange rate BRL/MXN	—	—		0.22
Net exposure	1,038	321		2,384
Average exchange rate COP/USD	3,207.80	3,240.00		3,431.99
Net exposure	—	3,514		1,311
Average exchange rate CLP/USD	—	696.02		677.00
Net exposure	—	—		15,078
Average exchange rate EUR/USD	—	—		0.86
Interest rate risk
Interest rate swaps
Net exposure	—	—		6,175
Interest rate average BRL	—	—		0.09	%
Net exposure	—	—		11,403
Interest rate average MXN	—	—		7.17	%
Net exposure	—	131		726
Interest rate average CLP	—	6.55	%	5.79	%
Net exposure	—	—		2,367
Interest rate average USD	—	—		3.57	%
Commodities risk
Aluminum	67	35		—
Average price (USD/Ton)	1,722	1,777		—
Sugar	1,366	653		769
Average price (USD cent/Lb)	15.22	14.76		14.74
PX+MEG	337	134		—
Average price (USD /Ton)	934	866		—

As of December 31, 2020, the Company’s financial instruments used to hedge its exposure to foreign exchange rates and interest rates are as follows:


	Maturity
	1‑6 months		6‑12 months		More than 12
Foreign exchange currency risk
Foreign exchange currency forward contracts
Net exposure	Ps.	2,887	Ps.	1,892	Ps.	2
Average exchange rate MXN/USD		23.26		23.46		20.01
Net exposure		910		601		43
Average exchange rate BRL/USD		5.33		5.20		4.53
Net exposure		511		212		—
Average exchange rate COP/USD		3,750		3,740		—
Net exposure		96		-		—
Average exchange rate ARS/USD		92.97		-		—
Net exposure		225		58		—
Average exchange rate URY/USD		45.92		45.69		—
Foreign exchange currency swap contracts
Net exposure		—		—		44,107
Average exchange rate MXN/USD		—		—		14.70
Net exposure		58		—		9,652
Average exchange rate BRL/USD		5.15		—		4.00
Net exposure		—		71		981
Average exchange rate BRL/MXN		—		0.26		0.26
Net exposure		404		709		1,688
Average exchange rate COP/USD		3,454		2,992		3,296
Net exposure		—		3,333		1,519
Average exchange rate CLP/USD		—		696.02		677.00
Interest rate risk
Interest rate swaps
Net exposure		—		—		11,403
Interest rate average MXN		—		—		7.17	%
Net exposure		—		—		4,716
Interest rate average CLP		—		—		4.95	%
Commodities risk
Aluminum		325		370		99
Average price (USD/Ton)		1,654		1,720		1,740
Sugar		869		391		365
Average price (USD cent/Lb)		12.13		11.87		12.17
PX+MEG		364		364		—
Average price (USD /Ton)		730		730		—

As of December 31, 2021, a reconciliation per category of equity components and an analysis of OCI components, net of tax; generated by the cash flow hedges were as follows:



	Hedging
	reserve
Balances at beginning of the period	Ps.	1,580
Cash flows hedges
Fair value changes:
Foreign exchange currency risk – Purchase of stock		77
Foreign exchange currency risk – Other stock		3,511
Interest rate risk		584
Commodity price contracts – Purchase of stock		1,244
The amounts reclassified to profit and loss:
Foreign exchange currency risk – Other stock		(1,526)
Interest rate risk		(1)
The amounts included in non-financial costs:
Foreign exchange currency risk – Purchase of stock		785
Commodity price contracts – Purchase of stock		(1,141)
Taxes due to changes in reserves during the period		(992)
Balances at the end of the period	Ps.	4,121

Impact of hedging on equity

Set out below is the reconciliation of each component of equity and the analysis of other comprehensive income:


	Foreign
	exchange		Foreign		Cross-currency		Interest		Treasury		Commodity		Total holders		Non-controlling
	forward contracts		currency option		swaps		rate swaps		Lock contracts		price contracts		of the parent		interest		Total
As at January 1, 2020	Ps.	(156)	Ps.	—	Ps.	679	Ps.	(32)	Ps.	34	Ps.	11	Ps.	534	Ps.	(608)	Ps.	(74)
Financial instruments – purchases		(445)		1		(2,069)		—		—		166		(2,347)		(117)		(2,465)
Change in fair value of financial instruments recognized in OCI		(223)		—		5,247		(639)		—		4		4,389		1,819		6,208
Amount reclassified from OCI to profit or loss		117		(1)		1,540		46		(48)		(17)		1,637		1,142		2,779
Foreign currency revaluation of the net foreign operations		—		—		(1,694)		—		—		—		(1,694)		(2,424)		(4,118)
Effects of changes in foreign exchange rates		3		—		43		7		—		(4)		50		71		121
Tax effect		164		—		(1,016)		176		15		(51)		(713)		(158)		(871)
As at December 31, 2020	Ps.	(541)	Ps.	—	Ps.	2,729	Ps.	(442)	Ps.	—	Ps.	109	Ps.	1,854	Ps.	(274)	Ps.	1,580
Financial instruments – purchases		33		—		1,040		—		—		202		1,274		541		1,816
Change in fair value of financial instruments recognized in OCI		(13)		—		2,036		584		—		390		2,998		2,088		5,086
Amount reclassified from OCI to profit or loss		568		—		(1,587)		(0)		—		(539)		(1,558)		(325)		(1,883)
Foreign currency revaluation of the net foreign operations		—		—		(654)		—		—		—		(654)		(836)		(1,490)
Effects of changes in foreign exchange rates		3		—		4		—		—		(4)		3		2		5
Tax effect		(175)		—		(165)		(175)		—		(16)		(531)		(460)		(992)
As at December 31, 2021	Ps.	(124)	Ps.	—	Ps.	3,403	Ps.	(34)	Ps.	—	Ps.	141	Ps.	3,385	Ps.	736	Ps.	4,121