Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Reconciliation of Changes in Intangible Assets and Goodwill


	Rights to Produce
	and Distribute						Other Indefinite		Total		Technology								Total
	Coca-Cola						Lived		Unamortized		Costs and		Customer						Amortized		Total
	Trademark Products		Goodwill		Trademark Rights		Intangible Assets		Intangible Assets		Management Systems		Relationships		Alcohol Licenses		Other		Intangible Assets		Intangible Assets
Cost as of January 1,2019	Ps.	87,617	Ps.	40,530	Ps.	6,694	Ps.	1,441	Ps.	136,282	Ps.	8,362	Ps.	2,125	Ps.	1,768	Ps.	2,433	Ps.	14,688	Ps.	150,970
Additions		—		—		—		208		208		823		—		191		975		1,989		2,197
Acquisitions from business combinations (see Note 4)		—		6,542		469		—		7,011		759		—		—		12		771		7,782
Changes in fair value of past acquisitions		(2,887)		2,903		—		153		169		(6)		—		—		(185)		(191)		(22)
Transfer of completed development systems		—		—		—		—		—		412		—		—		(412)		—		—
Disposals		—		—		(48)		—		(48)		(232)		—		(130)		—		(362)		(410)
Effect of movements in exchange rates		(3,475)		(2,068)		(515)		(100)		(6,158)		(552)		(113)		—		(286)		(951)		(7,109)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		(6)		(6)		(6)
Cost as of December 31, 2019	Ps.	81,255	Ps.	47,907	Ps.	6,600	Ps.	1,702	Ps.	137,464	Ps.	9,566	Ps.	2,012	Ps.	1,829	Ps.	2,531	Ps.	15,938	Ps.	153,402


	Rights to Produce
	and Distribute						Other		Total		Technology								Total		Total
	Coca-Cola						Indefinite Lived		Unamortized		Costs and		Customer						Amortized		Intangible
	Trademark Products		Goodwill		Trademark Rights		Intangible Assets		Intangible Assets		Management Systems		Relationships (1)		Alcohol Licenses		Other		Intangible Assets		Assets
Cost as of January 1,2020	Ps.	81,255	Ps.	47,907	Ps.	6,600	Ps.	1,702	Ps.	137,464	Ps.	9,566	Ps.	2,012	Ps.	1,829	Ps.	2,531	Ps.	15,938	Ps.	153,402
Additions		1		—		—		—		1		771		—		111		604		1,486		1,487
Acquisitions from business combinations (see Note 4)		—		12,080		2,101		—		14,181		26		8,596		—		1		8,623		22,804
Changes in fair value of past acquisitions		—		(1,086)		285		—		(801)		—		745		—		22		767		(34)
Transfer of completed development systems		—		—		—		—		—		398		—		—		(398)		—		—
Disposals		—		(183)		(116)		(311)		(610)		(164)		—		(43)		(378)		(585)		(1,195)
Specialty's disposal		—		(1,194)		(215)		(11)		(1,420)		—		—				(5)		(5)		(1,425)
Effect of movements in exchange rates		(4,607)		(4,704)		(8)		(4)		(9,323)		276		(1,503)		—		(65)		(1,292)		(10,615)
Changes in value on the recognition of inflation effects		—		—		—		—		—		—		—		—		38		38		38
Cost as of December 31, 2020	Ps.	76,649	Ps.	52,820	Ps.	8,647	Ps.	1,376	Ps.	139,492	Ps.	10,873	Ps.	9,850	Ps.	1,897	Ps.	2,350	Ps.	24,970	Ps.	164,462

(1)	Includes customer relationships related to the acquisition through the controlling interest in NW Synergy Holdings LLC disclosed in Note 4

Rights to Produce

and Distribute

Other Indefinite

Total

Technology

Total

Coca-Cola

Trademark

Lived

Unamortized

Costs and

Customer

Alcohol

Amortized

Intangible

Trademark Products

Goodwill

Rights

Intangible Assets

Management Systems

Relationships (1)

Licenses

Other

Intangible Assets

Assets

Cost as of January 1,2021

Ps.

76,649

52,820

Ps.

8,647

Ps.

1,376

Ps.

139,492

Ps.

10,873

Ps.

9,850

Ps.

1,897

Ps.

2,350

Ps.

24,970

Ps.

164,462

Additions

—

127

129

1,140

—

145

1,103

2,388

2,517

Acquisitions from business combinations (see Note 4)

—

7,940

—

8,005

—

873

—

874

8,879

Transfer of completed development systems

—

262

—

(262)

—

Disposals

—

(12)

—

(10)

(22)

(973)

—

(36)

(102)

(1,111)

(1,133)

Effect of movements in exchange rates

(1,255)

(2,303)

(584)

(80)

(4,222)

(641)

—

(682)

(1,246)

(5,468)

Changes in value on the recognition of inflation effects

—

Impairment

—

(1,094)

(55)

—

(1,149)

—

(1,149)

Cost as of December 31, 2021

Ps.

75,396

Ps.

57,351

Ps.

8,073

Ps.

1,413

Ps.

142,233

Ps.

10,661

Ps.

10,800

Ps.

2,006

Ps.

2,470

Ps.

25,937

Ps.

168,170

(1)Includes customer relationships related to the acquisitions through Envoy Solutions disclosed in Note 4.


	Rights to Produce
	and Distribute						Other Indefinite		Total		Technology								Total		Total
	Coca-Cola						Lived		Unamortized		Costs and		Customer						Amortized		Intangible
Amortization and Impairment Losses	Trademark Products		Goodwill		Trademark Rights		Intangible Assets		Intangible Assets		Management Systems		Relationships		Alcohol Licenses		Other		Intangible Assets		Assets
Amortization as of January 1,2019	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(4,064)	Ps.	(306)	Ps.	(544)	Ps.	(451)	Ps.	(5,365)	Ps.	(5,365)
Amortization expense		—		—		—		—		—		(1,338)		(112)		(123)		(239)		(1,812)		(1,812)
Disposals		—		—		—		—		—		97		—		30		—		127		127
Effect of movements in exchange rates		—		—		—		—		—		160		25		—		53		238		238
Changes in value on the recognition of inflation effects		—		—		—		—		—		(29)		—		—		1		(28)		(28)
Amortization as of December 31, 2019	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(5,174)	Ps.	(393)	Ps.	(637)	Ps.	(636)	Ps.	(6,840)	Ps.	(6,840)
Amortization as of January 1,2020	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(5,174)	Ps.	(393)	Ps.	(637)	Ps.	(636)	Ps.	(6,840)	Ps.	(6,840)
Amortization expense		—		—		—		—		—		(1,537)		(467)		(99)		(362)		(2,465)		(2,465)
Disposals		—		—		—		—		—		129		—		—		48		177		177
Effect of movements in exchange rates		—		—		—		—		—		142		32		—		21		195		195
Changes in value on the recognition of inflation effects		—		—		—		—		—		(29)		1		—		—		(28)		(28)
Amortization as of December 31, 2020	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,469)	Ps.	(827)	Ps.	(736)	Ps.	(929)	Ps.	(8,961)	Ps.	(8,961)
Amortization as of January 1,2021	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,469)	Ps.	(827)	Ps.	(736)	Ps.	(929)	Ps.	(8,961)	Ps.	(8,961)
Amortization expense		—		—		—		—		—		(1,473)		(791)		(102)		(328)		(2,694)		(2,694)
Disposals		—		—		—		—		—		789		—		—		101		890		890
Effect of movements in exchange rates		—		—		—		—		—		792		10		—		(15)		787		787
Changes in value on the recognition of inflation effects		—		—		—		—		—		(53)		—		—		(1)		(54)		(54)
Amortization as of December 31, 2021	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	—	Ps.	(6,414)	Ps.	(1,608)	Ps.	(838)	Ps.	(1,172)	Ps.	(10,032)	Ps.	(10,032)

Rights to Produce

and Distribute

Other Indefinite

Total

Technology

Total

Coca-Cola

Lived

Unamortized

Costs and

Customer

Amortized

Intangible

Carrying Amount

Trademark Products

Goodwill

Trademark Rights

Intangible Assets

Management Systems

Relationships

Alcohol Licenses

Other

Intangible Assets

Assets

As of December 31, 2019

Ps.

81,255

Ps.

47,907

Ps.

6,600

Ps.

1,702

Ps.

137,464

Ps.

4,392

Ps.

1,619

Ps.

1,192

Ps.

1,895

Ps.

9,098

Ps.

146,562

As of December 31, 2020

Ps.

76,649

Ps.

52,820

Ps.

8,647

Ps.

1,376

Ps.

139,492

Ps.

4,404

Ps.

9,023

Ps.

1,161

Ps.

1,421

Ps.

16,009

Ps.

155,501

As of December 31, 2021

Ps.

75,396

Ps.

57,351

Ps.

8,073

Ps.

1,413

Ps.

142,233

Ps.

4,247

Ps.

9,192

Ps.

1,168

Ps.

1,298

Ps.

15,905

Ps.

158,138

Schedule of Allocation of Amortization Expenses

For the years ended 2021, 2020 and 2019, allocation for amortization expense is as follows:


	2021		2020		2019

Cost of goods sold	Ps.	254	Ps.	288	Ps.	317
Administrative expenses		1,630		1,412		953
Selling expenses		810		765		542
	Ps.	2,694	Ps.	2,465	Ps.	1,812

Summary of Average Remaining Period for Company's Intangible Assets Subject to Amortization

The average remaining period for the Company’s intangible assets that are subject to amortization is as follows:



		Years
Technology Costs and Management Systems		2 - 10
Customer Relationships		10 - 25
Alcohol Licenses		12 - 12

Disclosure of Aggregate Carrying Amounts of Goodwill and Distribution Rights Allocated to Each CGU

The aggregate carrying amounts of goodwill and distribution rights allocated to each CGU are as follows:


	December 31, 2021		December 31, 2020
Mexico	Ps.	56,352	Ps.	56,352
Guatemala		1,735		1,755
Nicaragua		438		433
Costa Rica		1,407		1,425
Panama		1,238		1,200
Colombia		3,798		4,414
Brazil		30,608		31,741
Argentina		395		312
Uruguay		2,332		2,450
Total	Ps.	98,303	Ps.	100,082

Details of Key Assumptions by CGU for Impairment Test

The key assumptions by CGU for impairment test as of December 31, 2021 were as follows:


					Expected Annual Long-		Expected Volume
					Term Inflation		Growth Rates
CGU	Pre-tax WACC		Post-tax WACC		2022‑2031		2022‑2031
Mexico	6.8	%	4.9	%	3.7	%	2.8	%
Colombia	8.7	%	5.8	%	3.0	%	8.4	%
Costa Rica	13.5	%	9.2	%	3.1	%	6.5	%
Guatemala	7.9	%	6.1	%	4.2	%	10.7	%
Nicaragua	18.3	%	10.6	%	4.3	%	6.4	%
Panama	8.5	%	6.5	%	2.2	%	7.0	%
Argentina	19.7	%	14.5	%	35.9	%	5.4	%
Brazil	9.1	%	5.8	%	3.3	%	7.7	%
Uruguay	8.5	%	6.1	%	5.0	%	4.0	%

The key assumptions by CGU for impairment test as of December 31, 2020 were as follows:


					Expected Annual Long-		Expected Volume
					Term Inflation		Growth Rates
CGU	Pre-tax WACC		Post-tax WACC		2021‑2030		2021‑2030
Mexico	7.4	%	5.3	%	3.9	%	2.0	%
Colombia	11.0	%	7.3	%	2.8	%	4.1	%
Costa Rica	15.3	%	10.8	%	2.7	%	4.3	%
Guatemala	10.6	%	8.3	%	3.1	%	6.8	%
Nicaragua	20.6	%	13.9	%	3.7	%	7.1	%
Panama	8.8	%	6.8	%	1.5	%	7.9	%
Argentina	26.3	%	20.4	%	30.1	%	3.9	%
Brazil	9.1	%	6.0	%	3.0	%	2.4	%
Uruguay	9.9	%	7.1	%	7.8	%	2.0	%

Disclosure of Detailed Information About Sensitivity to Changes in Assumptions


			Change in Volume
CGU	Change in WACC		Growth CAGR⁽¹⁾		Effect on Valuation
Mexico	0.2	%	‑1.0	%	Passes by 6.8x
Colombia	0.2	%	‑1.0	%	Passes by 4.2x
Costa Rica	0.4	%	‑1.0	%	Passes by 3.1x
Guatemala	0.2	%	‑1.0	%	Passes by 54.5x
Nicaragua	0.5	%	‑1.0	%	Passes by 1.0x
Panama	0.1	%	‑1.0	%	Passes by 8.2x
Argentina	0.8	%	‑1.0	%	Passes by 10.0x
Brazil	0.2	%	‑1.0	%	Passes by 2.7x
Uruguay	0.1	%	‑1.0	%	Passes by 4.4x

FEMSA Comercio - Health Division

Statement [Line Items]

Details of Key Assumptions by CGU for Impairment Test

The key assumptions by CGU for impairment test as of December 31, 2021 were as follows:


					Expected Annual
					Long-Term Inflation		Expected Volume Growth
CGU	Pre-tax WACC		Post-tax WACC		2022‑2031		Rates 2022‑2031
South America	7.3	%	5.3	%	3.4	%	0.3	%
(FEMSA Comercio – Health Division)

The key assumptions by CGU for impairment test as of December 31, 2020 were as follows:


					Expected Annual		Expected Volume
			Post-tax		Long-Term Inflation		Growth Rates
CGU	Pre-tax WACC		WACC		2021‑2030		2021‑2030
South America	8.3	%	5.8	%	2.8	%	0.2	%
(FEMSA Comercio – Health Division)

Disclosure of Detailed Information About Sensitivity to Changes in Assumptions


			Change in Sales
CGU	Change in WACC		Growth CAGR⁽¹⁾		Effect on Valuation
FEMSA Comercio – Health Division (South America)	+0.1	%	(0.5)	%	Passes by 1.60x

(1)	Compound Annual Growth Rate (“CAGR”).

Cash Generating Units

Statement [Line Items]

Details of Key Assumptions by CGU for Impairment Test


					Expected Annual
					Long-Term Inflation		Expected Volume Growth
CGU	Pre-tax WACC		Post-tax WACC		2022‑2026		Rates 2022‑2026
United States	5.7	%	4.9	%	2.4	%	2.0	%
(Specialized Distribution)


					Expected Annual		Expected Volume
					Long-Term Inflation		Growth Rates
CGU	Pre-tax WACC		Post-tax WACC		2021‑2025		2021‑2025
United States	8.2	%	6.0	%	2.0	%	1.7	%
(Specialized Distribution)

Disclosure of Detailed Information About Sensitivity to Changes in Assumptions

(1)

Compound Annual Growth Rate (“CAGR”).

Change in Sales

Growth CAGR⁽¹⁾

Effect on Valuation

United States (Specialized Distribution)

Passes by 1.13x