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Financial Instruments | 12 Months Ended
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Dec. 31, 2022
Financial instruments [Abstract] |
Disclosure of financial instruments [text block] | Note 7 Financial Instruments Financial instruments categories The carrying amounts of each financial instrument category are detailed as follows:
| As of December 31, 2022 | As of December 31, 2021
Current | Non-current | Current | Non-current
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 421,051 | - | 9,838,420 | -
Marketable securities and investments in other companies | 11,956,585 | - | 14,013,076 | -
Derivatives designates as hedges | 33,280,356 | 37,054,245 | - | 31,252,095
Total other financial assets | 45,657,992 | 37,054,245 | 23,851,496 | 31,252,095
Accounts receivable - trade and other receivable (net) | 445,263,536 | 3,941,760 | 372,995,729 | 3,801,244
Accounts receivable from related parties | 6,204,099 | 42,506 | 5,307,264 | 104,197
Total accounts receivables | 451,467,635 | 3,984,266 | 378,302,993 | 3,905,441
Sub-Total financial assets | 497,125,627 | 41,038,511 | 402,154,489 | 35,157,536
Cash and cash equivalents | 597,081,675 | - | 265,568,125 | -
Total financial assets | 1,094,207,302 | 41,038,511 | 667,722,614 | 35,157,536
Bank borrowings | 134,737,116 | 84,839,970 | 76,169,204 | 114,492,596
Bonds payable | 30,871,086 | 1,081,682,928 | 8,087,630 | 339,740,414
Deposits for return of bottles and containers | 11,912,090 | - | 11,980,948 | -
Total financial liabilities measured at amortized cost | 177,520,292 | 1,166,522,898 | 96,237,782 | 454,233,010
Derivatives not designated as hedges | 3,753,264 | - | 411,954 | -
Derivatives designated as hedges | 4,605,695 | 9,183,801 | 4,776,623 | 4,036,833
Total financial derivative liabilities | 8,358,959 | 9,183,801 | 5,188,577 | 4,036,833
Total other financial liabilities (*) | 185,879,251 | 1,175,706,699 | 101,426,359 | 458,269,843
Lease Liabilities | 9,120,616 | 31,306,552 | 6,152,361 | 29,009,023
Total lease liabilities (**) | 9,120,616 | 31,306,552 | 6,152,361 | 29,009,023
Account payable- trade and other payable | 491,315,277 | 20,945 | 515,522,729 | 29,457
Accounts payable to related parties | 34,282,408 | - | 26,208,319 | -
Total commercial obligations and other accounts payable | 525,597,685 | 20,945 | 541,731,048 | 29,457
Total financial liabilities | 720,597,552 | 1,207,034,196 | 649,309,768 | 487,308,323
(*) See Note 21 - Other financial liabilities . (**) See Note 22 - Lease liabilities . Fair value of Financial instruments The following tables show fair values, based on financial instrument categories, compared to the carrying amount included in the Consolidated Statements of Financial Position:
| a) | Financial assets and liabilities are detailed as follows:
| As of December 31, 2022 | As of December 31, 2021
| Book Value | Fair Value | Book Value | Fair Value
| ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 421,051 | 421,051 | 9,838,420 | 9,838,420
Marketable securities and investments in other companies | 11,956,585 | 11,956,585 | 14,013,076 | 14,013,076
Derivatives designated as hedges | 70,334,601 | 70,334,601 | 31,252,095 | 31,252,095
Total other financial assets | 82,712,237 | 82,712,237 | 55,103,591 | 55,103,591
Accounts receivable - trade and other receivable (net) | 449,205,296 | 449,205,296 | 376,796,973 | 376,796,973
Accounts receivable from related parties | 6,246,605 | 6,246,605 | 5,411,461 | 5,411,461
Total accounts receivables | 455,451,901 | 455,451,901 | 382,208,434 | 382,208,434
Sub-Total financial assets | 538,164,138 | 538,164,138 | 437,312,025 | 437,312,025
Cash and cash equivalents | 597,081,675 | 597,081,675 | 265,568,125 | 265,568,125
Total financial assets | 1,135,245,813 | 1,135,245,813 | 702,880,150 | 702,880,150
Bank borrowings | 219,577,086 | 222,603,740 | 190,661,800 | 193,844,871
Bonds payable | 1,112,554,014 | 1,012,325,805 | 347,828,044 | 328,366,713
Deposits for return of bottles and containers | 11,912,090 | 11,912,090 | 11,980,948 | 11,980,948
Total financial liabilities measured at amortized cost | 1,344,043,190 | 1,246,841,635 | 550,470,792 | 534,192,532
Derivatives not designated as hedges | 3,753,264 | 3,753,264 | 411,954 | 411,954
Derivatives designated as hedges | 13,789,496 | 13,789,496 | 8,813,456 | 8,813,456
Total financial derivative liabilities | 17,542,760 | 17,542,760 | 9,225,410 | 9,225,410
Total other financial liabilities (*) | 1,361,585,950 | 1,264,384,395 | 559,696,202 | 543,417,942
Lease Liabilities | 40,427,168 | 40,427,168 | 35,161,384 | 35,161,384
Total lease liabilities (**) | 40,427,168 | 40,427,168 | 35,161,384 | 35,161,384
Account payable- trade and other payable | 491,336,222 | 491,336,222 | 515,552,186 | 515,552,186
Accounts payable to related parties | 34,282,408 | 34,282,408 | 26,208,319 | 26,208,319
Total commercial obligations and other accounts payable | 525,618,630 | 525,618,630 | 541,760,505 | 541,760,505
Total financial liabilities | 1,927,631,748 | 1,830,430,193 | 1,136,618,091 | 1,120,339,831
(*) See Note 21 - Other financial liabilities . (**) See Note 22 - Lease liabilities . The carrying amount of cash and cash equivalents, other financial assets, deposits for return of bottles and containers and lease liabilities approximate their fair value due to their short-term nature or by its valuation methodology while loans receivable and accounts receivable are due to the fact that any collection loss is already reflected in the impairment loss provision. The fair value of non-derivative financial assets and liabilities that are not quoted in active markets are estimated through the use of discounted cash flows calculated on market variables observed as of the date of the financial statements. The fair value of derivative instruments is estimated through the discount of future cash flows, determined according to information observed in the market or to variables and prices obtained from third parties. The fair value of bank borrowings and Bonds payable has hierarchy level 2 of fair value.
| b) | Financial instruments by category:
As of December 31, 2022 | Fair value with changes in income | Financial assets measured at amortized cost | Hedge derivatives | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial assets |  |  |  |
Derivative financial instruments | 421,051 | - | - | 421,051
Marketable securities and investments in other companies | 11,956,585 | - | - | 11,956,585
Derivatives designated as hedges | - | - | 70,334,601 | 70,334,601
Total other financial assets | 12,377,636 | - | 70,334,601 | 82,712,237
Cash and cash equivalents | - | 597,081,675 | - | 597,081,675
Trade and other receivable (net) | - | 449,205,296 | - | 449,205,296
Accounts receivable from related parties | - | 6,246,605 | - | 6,246,605
Total financial assets | 12,377,636 | 1,052,533,576 | 70,334,601 | 1,135,245,813
As of December 31, 2022 | Fair value with changes in income | Hedge derivatives | Financial liabilities measured at amortized cost | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial liabilities |  |  |  |
Bank borrowings | - | - | 219,577,086 | 219,577,086
Bonds payable | - | - | 1,112,554,014 | 1,112,554,014
Deposits for return of bottles and containers | - | - | 11,912,090 | 11,912,090
Derivatives not designated as hedges | 3,753,264 | - | - | 3,753,264
Derivatives designated as hedges | - | 13,789,496 | - | 13,789,496
Total Other financial liabilities | 3,753,264 | 13,789,496 | 1,344,043,190 | 1,361,585,950
Leases liabilities | - | - | 40,427,168 | 40,427,168
Account payable- trade and other payable | - | - | 491,336,222 | 491,336,222
Accounts payable to related parties | - | - | 34,282,408 | 34,282,408
Total financial liabilities | 3,753,264 | 13,789,496 | 1,910,088,988 | 1,927,631,748
As of December 31, 2021 | Fair value with changes in income | Financial assets measured at amortized cost | Hedge derivatives | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial assets |  |  |  |
Derivative financial instruments | 9,838,420 | - | - | 9,838,420
Marketable securities and investments in other companies | 14,013,076 | - | - | 14,013,076
Derivatives designated as hedges | - | - | 31,252,095 | 31,252,095
Total other financial assets | 23,851,496 | - | 31,252,095 | 55,103,591
Cash and cash equivalents | - | 265,568,125 | - | 265,568,125
Trade and other receivable (net) | - | 376,796,973 | - | 376,796,973
Accounts receivable from related parties | - | 5,411,461 | - | 5,411,461
Total financial assets | 23,851,496 | 647,776,559 | 31,252,095 | 702,880,150
As of December 31, 2021 | Fair value with changes in income | Hedge derivatives | Financial liabilities measured at amortized cost | Total
ThCh$ | ThCh$ | ThCh$ | ThCh$
Financial liabilities |  |  |  |
Bank borrowings | - | - | 190,661,800 | 190,661,800
Bonds payable | - | - | 347,828,044 | 347,828,044
Deposits for return of bottles and containers | - | - | 11,980,948 | 11,980,948
Derivatives not designated as hedges | 411,954 | - | - | 411,954
Derivatives designated as hedges | - | 8,813,456 | - | 8,813,456
Total Other financial liabilities | 411,954 | 8,813,456 | 550,470,792 | 559,696,202
Leases liabilities | - | - | 35,161,384 | 35,161,384
Account payable- trade and other payable | - | - | 515,552,186 | 515,552,186
Accounts payable to related parties | - | - | 26,208,319 | 26,208,319
Total financial liabilities | 411,954 | 8,813,456 | 1,127,392,681 | 1,136,618,091
Derivative Instruments The detail of maturities, number of derivative agreements, contracted nominal amounts, fair values and the classification of such derivative instruments by type of agreement at the closing of each year, are detailed as follows:
| As of December 31, 2022 | As of December 31, 2021
Number of agreements | Nominal amounts thousand | Assets | Liabilities | Number of agreements | Nominal amounts thousand | Assets | Liabilities
ThCh$ | ThCh$ | ThCh$ | ThCh$
Cross currency swaps UF/CLP | 5 | 11,455 | 69,024,803 | 13,389,059 | 3 | 8,000 | 31,252,095 | 4,330,917
Less than a year |  |  | 33,280,356 | 4,205,258 |  |  | - | 4,330,917
Between 1 and 5 years |  |  | 18,986,487 | 9,183,801 |  |  | 31,252,095 | -
More than 5 years |  |  | 16,757,960 | - |  |  | - | -
Cross currency interest rate swaps UF/EURO | 1 | 296 | 1,243,303 | 45,392 | 1 | 296 | - | 1,153,698
Less than a year |  |  | - | 45,392 |  |  | - | 65,288
Between 1 and 5 years |  |  | 1,243,303 | - |  |  | - | 1,088,410
Cross currency interest rate swaps UF/USD | 1 | 479 | 66,495 | 355,045 | 1 | 479 | - | 3,328,841
Less than a year |  |  | - | 355,045 |  |  | - | 380,418
Between 1 and 5 years |  |  | 66,495 | - |  |  | - | 2,948,423
Subtotal hedging derivatives | 7 |  | 70,334,601 | 13,789,496 | 5 |  | 31,252,095 | 8,813,456
Forwards USD | 27 | 154,156 | 293,023 | 3,699,120 | 19 | 132,333 | 8,231,588 | 268,328
Less than a year |  |  | 293,023 | 3,699,120 |  |  | 8,231,588 | 268,328
Forwards Euro | 6 | 12,860 | 13,999 | 52,421 | 3 | 36,187 | 1,413,219 | 53,421
Less than a year |  |  | 13,999 | 52,421 |  |  | 1,413,219 | 53,421
Forwards CAD | 2 | 1,870 | 90,550 | - | 1 | 1,780 | - | 67,330
Less than a year |  |  | 90,550 | - |  |  | - | 67,330
Forwards GBP | 3 | 774 | 23,479 | 1,723 | 2 | 740 | - | 19,685
Less than a year |  |  | 23,479 | 1,723 |  |  | - | 19,685
Forwards CHF | - | - | - | - | 2 | 3,181 | 193,613 | 3,190
Less than a year |  |  | - | - |  |  | 193,613 | 3,190
Subtotal derivatives with effects on income | 38 |  | 421,051 | 3,753,264 | 27 |  | 9,838,420 | 411,954
Total instruments | 45 |  | 70,755,652 | 17,542,760 | 32 |  | 41,090,515 | 9,225,410
These derivative agreements have been entered into as a hedge of exchange rate risk exposure . In the case of forwards, the Company does not comply with the formal requirements for hedging designation; consequently, their effects are recorded in Income, in Other gains (losses). In the case of Cross Currency Interest Rate Swaps and the Cross Interest Rate Swaps, these qualify as cash flow hedges of the cash flows related to loans from Banco de Chile and Scotiabank Chile. See additional disclosures in Note 21 – Other financial liabilities .
As of December 31, 2022
Entity | Nature of risks covered | Assets | Liabilities | Fair value of net asset (liabilities) | Maturity
Currency | Amount | Currency | Amount | Amount
ThCh$ | ThCh$ | ThCh$
Banco Santander - Chile | Flow interest rate on bonds | UF | 82,322,384 | CLP | 80,933,348 | 1,389,036 | 03-15-2032
Banco Santander - Chile | Flow interest rate on bonds | UF | 105,013,688 | CLP | 85,070,350 | 19,943,338 | 08-10-2023
Banco Santander - Chile | Flow interest rate on bonds | UF | 100,564,068 | CLP | 81,917,436 | 18,646,632 | 06-01-2023
Scotiabank Chile | Flow interest rate on bonds | UF | 69,182,555 | CLP | 55,845,532 | 13,337,023 | 06-01-2023
Scotiabank Chile | Flow interest rate on bonds | UF | 51,120,767 | CLP | 48,801,052 | 2,319,715 | 03-15-2030
Scotiabank Chile | Flow interest rate and exchange rate on bonds | UF | 16,322,595 | USD | 16,611,145 | (288,550) | 06-01-2025
Scotiabank Chile | Flow interest rate and exchange rate on bonds | UF | 10,102,729 | EUR | 8,904,818 | 1,197,911 | 06-02-2025
As of December 31, 2021
Entity | Nature of risks covered | Assets | Liabilities | Fair value of net asset (liabilities) | Maturity
Currency | Amount | Currency | Amount | Amount
ThCh$ | ThCh$ | ThCh$
Banco Santander - Chile | Flow interest rate on bonds | UF | 97,057,334 | CLP | 86,696,081 | 10,361,253 | 08-10-2023
Banco Santander - Chile | Flow interest rate on bonds | UF | 93,491,832 | CLP | 83,779,363 | 9,712,469 | 06-01-2023
Scotiabank Chile | Flow interest rate on bonds | UF | 62,695,477 | CLP | 55,848,021 | 6,847,456 | 06-01-2023
Scotiabank Chile | Flow interest rate and exchange rate on bonds | UF | 14,695,305 | USD | 18,024,146 | (3,328,841) | 06-01-2025
Scotiabank Chile | Flow interest rate and exchange rate on bonds | UF | 9,095,477 | EUR | 10,249,175 | (1,153,698) | 06-02-2025
The Consolidated Statement of Other Comprehensive Income includes un der the caption cash flow hedge, for the year ended December 31, 2022 a credit before income taxes of ThCh$ 12,415,374 (ThCh$ 2,168,254 as of December 31, 2021 and ThCh$ 4,068,855 as of December 31, 2020), related to the fair value of Cross Currency Interest Swap and Cross Interest Rate Swap derivatives instruments. Fair value hierarchies The financial instruments recorded at fair value in the Statement of Financial Position are classified as follows, depending on the method used to obtain their fair values:
Level 1 | Fair values obtained through direct reference to quoted market prices, without any adjustment.
Level 2 | Fair values obtained through the use of valuation models accepted in the market and based on prices other than those of Level 1, which may be directly or indirectly observed as of the measurement date (adjusted prices).
Level 3 | Fair values obtained through internally developed models or methodologies that use information which may not be observed or which is illiquid.
The fair value of financial instruments recorded at fair value in the Consolidated Financial Statements, is detailed as follows:
As of December 31, 2022 | Recorded fair value | Fair value hierarchy
level 1 | level 2 | level 3
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 421,051 | - | 421,051 | -
Marketable securities and investments in other companies | 11,956,585 | 11,956,585 | - | -
Derivatives designated as hedges | 70,334,601 | - | 70,334,601 | -
Total other financial assets | 82,712,237 | 11,956,585 | 70,755,652 | -
Derivative financial instruments | 3,753,264 | - | 3,753,264 | -
Derivatives designated as hedges | 13,789,496 | - | 13,789,496 | -
Total financial derivative liabilities | 17,542,760 | - | 17,542,760 | -
As of December 31, 2021 | Recorded fair value | Fair value hierarchy
level 1 | level 2 | level 3
ThCh$ | ThCh$ | ThCh$ | ThCh$
Derivative financial instruments | 9,838,420 | - | 9,838,420 | -
Marketable securities and investments in other companies | 14,013,076 | 14,013,076 | - | -
Derivatives designated as hedges | 31,252,095 | - | 31,252,095 | -
Total other financial assets | 55,103,591 | 14,013,076 | 41,090,515 | -
Derivative financial instruments | 411,954 | - | 411,954 | -
Derivatives designated as hedges | 8,813,456 | - | 8,813,456 | -
Total financial derivative liabilities | 9,225,410 | - | 9,225,410 | -
During the year ended as of December 31, 2022, the Company has not made any significant instrument transfers between levels 1 and 2. Credit quality of financial assets The Company uses two credit assessment systems for its clients: a) Clients with loan insurance are assessed according to the external risk criteria (trade reports, non-compliance and protested documents that are available in the local market), payment capability and equity situation required by the insurance company to grant a loan coverage; b) All other the clients are assessed through an ABC risk model, which considers internal risk (non-compliance and protested documents), external risk (trade reports, non-compliance and protested documents that are available in the local market) and payment capacity and equity situation. The uncollectible rate during the last two years has not been significant.

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