Bank Loans and Notes Payables (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Detailed Information About Borrowings


In millions of mexican pesos	2018			2019			2020			2021			2022			2023 and Thereafter			Carrying Value December 31, 2017			Fair Value at December 31, 2017		Carrying Value December 31, 2016
Short-term debt:
Fixed rate debt:
Argentine pesos
Bank loans		106			—			—			—			—			—			106			107		644
Interest rate		22.40	%		—			—			—			—			—			22.40	%		—		31.98	%
U.S. dollars											—			—			—
Bank loans		—			—			—			—			—			—			—			—		206
Interest rate		—			—			—			—			—			—			—			—		3.40	%

Subtotal		106			—			—			—			—			—			106			107		850

Variable rate debt:
Colombian peso
Bank loans		1,951			—			—			—			—			—			1,951			1,949		723
Interest rate		7.28	%		—			—			—			—			—			7.28	%		—		9.14	%

Subtotal		1,951			—			—			—			—			—			1,951			1,949		723

Short-term debt		2,057			—			—			—			—			—			2,057			2,056		1,573

Long-term debt:
Fixed rate debt:
Brazilian reais
Bank loans		319			220			152			92			78			73			934			957		508
Interest rate		5.78	%		5.78	%		5.78	%		5.78	%		5.78	%		5.78	%		5.78	%		—		5.06	%
Notes payable⁽²⁾		—			6,707			—			—			—			—			6,707			6,430		7,022
Interest rate		—			0.38	%		—			—			—			—			0.38	%		—		0.38	%
U.S. dollars
Yankee Bond		8,774			—			9,844			—			—			29,425			48,043			51,938		61,703
Interest rate		2.38	%		—			4.63	%		—			—			4.43	%		4.09	%		—		3.78	%
Notes payable
Interest rate
Colombian peso
Bank loans		728			—			—			—			—			—			728			741		758
Interest rate		9.63	%		—			—			—			—			—			9.63	%		—		9.63	%
Mexican pesos
Senior notes		—			—			—			2,498			—			15,981			18,479			17,035		9,991
Interest rate		—			—			—			8.27	%		—			6.74	%		6.95	%		—		6.16	%

Subtotal		9,821			6,927			9,996			2,590			78			45,479			74,891			77,101		79,982

Variable rate debt:
U.S. dollars
Bank loans		—			—			—			4,032			—			—			4,032			4,313		4,218
Interest rate		—			—			—			2.12	%		—			—			2.12	%		—		1.60	%


In millions of mexican pesos	2018			2019			2020			2021			2022			2023 and Thereafter		Carrying Value December 31, 2017			Fair Value at December 31, 2017		Carrying Value December 31, 2016
Mexican pesos
Senior notes		—			—			—			—			1,496			—		1,496			1,500		—
Interest rate		—			—			—			—			7.70	%		—		7.70	%		—		—
Argentine pesos
Bank Loans		—			—			—			—			—			—		—			—		40
Interest rate		—			—			—			—			—			—		—			—		27.84	%
Brazilian reais
Bank Loans		283			284			229			66			7			—		869			883		1,864
Interest rate		8.50	%		8.50	%		8.50	%		8.50	%		8.50	%		—		8.50	%		—		5.49	%
Notes payable		10			5			—			—			—			—		15			14		26
Interest rate		0.44	%		0.44	%		—			—			—			—		0.44	%		—		0.44	%
Colombian pesos
Bank Loans ⁽³⁾		—			—			—			—			—			—		—			—		1,206
Interest rate		—			—			—			—			—			—		—			—		10.47	%

Subtotal		293			289			229			4,098			1,503			—		6,412			6,710		7,354

Long-term debt		10,114			7,216			10,225			6,688			1,581			45,479		81,303			83,811		87,336
Current portion of long term debt		10,114			—			—			—			—			—		10,114			—		1,479

Long-term debt		—			7,216			10,225			6,688			1,581			45,479		71,189			83,811		85,857

(1)	All interest rates shown in this table are weighted average contractual annual rates.

(2)

Promissory note denominated and payable in Brazilian reais; however, it is linked to the performance of the exchange rate between the Brazilian real and the U.S. dollar. As a result, the principal amount under the promissory note may be increased or reduced based on the depreciation or appreciation of the Brazilian real relative to the U.S. dollar.

(3)	During 2017 a long term variable bank loan was refinanced for a 1-year term, therefore it was reclassified as short term variable bank loan.

Summary of Interest Expense

For the years ended December 31, 2017, 2016 and 2015, the interest expense related to the bank loans and notes payable is comprised as follows and included in the consolidated income statement under the interest expense caption:


	2017		2016			2015
Interest on debts and borrowings	Ps.	4,369	Ps.	4,099		Ps.	3,540
Capitalized interest		—		(32	)		(60	)
Finance charges for employee benefits		182		154			155
Derivative instruments		4,161		3,082			2,619
Finance operating charges		97		168			83

	Ps.	8,809	Ps.	7,471		Ps.	6,337

Summary of Reconciliation of Liabilities Arising From Financing Activities

Reconciliation of liabilities arising from financing activities.


			Cash flows					Non-cash flows
	Carrying Value at December 31, 2016		Repayments			Proceeds		Foreign Exchange movement		Translation Effect			Carrying Value at December 31, 2017
Short-term bank loans	Ps.	1,573	Ps.	(1,013	)	Ps.	489	Ps.	—	Ps.	1,008		Ps.	2,057
Short-term notes payable		—		—			—		—		—			—

Total short-term from financing activities	Ps.	1,573	Ps.	(1,013	)	Ps.	489	Ps.	—	Ps.	1,008		Ps.	2,057

Long-term bank loans		8,594		(2,264	)		1,999		190		(1,956	)		6,563
Long-term notes payable		78,742		(9,832	)		10,000		4,015		(8,185	)		74,740

Total long-term from financing activities	Ps.	87,336	Ps.	(12,096	)	Ps.	11,999	Ps.	4,205	Ps.	(10,141	)	Ps.	81,303

Current portion of long-term debt ^{(1) (2)}	Ps.	1,479		—			—		—		—		Ps.	10,114

Total from financing activities	Ps.	88,909	Ps.	(13,109	)	Ps.	12,488	Ps.	4,205	Ps.	(9,133	)	Ps.	83,360

(1)

Current portion of long term debt at December 31, 2016 includes: a) bank loans denominated in brazilian reais for an equivalent amount in Ps. 636, b) bank loans denominated in argentine pesos for an equivalent amount in Ps. 40, c) notes payable denominated in brazilian reais for an equivalent amount in Ps. 10 and d) bank loans denominated in colombian pesos for an equivalent amount in Ps. 793.

(2)

Current portion of long term debt at December 31, 2017 includes: a) bank loans denominated in brazilian reais for an equivalent amount in Ps. 602, b) senior notes denominated in US dollars for an equivalent amount in Ps. 8,774, c) notes payable denominated in brazilian reais for an equivalent amount in Ps. 10 and d) bank loans denominated in colombian pesos for an equivalent amount in Ps. 728.


			Cash flows					Non-cash flows
	Carrying Value at December 31, 2015		Repayments			Proceeds		Foreign Exchange movement			Translation Effect		Carrying Value at December 31, 2016
Short-term bank loans	Ps.	384	Ps.	—		Ps.	851	Ps.	—		Ps.	338	Ps.	1,573
Short-term notes payable		—		—			—		—			—		—

Total short-term from financing activities	Ps.	384	Ps.	—		Ps.	851	Ps.	—		Ps.	338	Ps.	1,573

Long-term bank loans		2,068		(1,988	)		141		(50	)		8,423		8,594
Long-term notes payable		63,818		(2,500	)		7,048		10,346			30		78,742
Long-term lease liabilities		460		(460	)		—		—			—		—

Total long-term from financing activities	Ps.	66,346	Ps.	(4,948	)	Ps.	7,189	Ps.	10,296		Ps.	8,453	Ps.	87,336

Current portion of long-term debt ^{(1) (2)}	Ps.	3,086		—			—		—			—	Ps.	1,479

Total from financing activities	Ps.	66,730	Ps.	(4,948	)	Ps.	8,040	Ps.	10,296		Ps.	8,791	Ps.	88,909

(1)

Current portion of long term debt at december 31, 2015 includes: a) bank loans denominated in brazilian reais for an equivalent amount in Ps. 177, b) bank loans denominated in argentine pesos for an equivalent amount in Ps. 100, c) leases denominated in brazilian reais for an equivalent amount in Ps. 67, d) bank loans denominated in colombian pesos for an equivalent amount in Ps. 246 and e) senior notes denominated in Ps. 2,496.

(2)