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Non-ControllingInterest in Consolidated Subsidiaries
 12 Months Ended
Dec. 31, 2019
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Non-ControllingInterest in Consolidated Subsidiaries
Note 22.
Non-Controlling
Interest in Consolidated Subsidiaries
An analysis of FEMSA’s
non-controlling
interest in its consolidated subsidiaries for the years ended December 31, 2019 and 2018 is as follows:
 
   
December 31,
2019
   December 31,
2018		 
Coca-Cola FEMSA
  
Ps.
 72,649
 
  Ps. 73,776 
Other  
 
1,113
 
   4,713 
  
 
 
   
 
 
 
  
Ps.
 73,762
 
  Ps. 78,489 
  
 
 
   
 
 
 
The changes in the FEMSA’s
non-controlling
interest were as follows:
 
   
2019
   2018   2017 
Balance at beginning of the period
  
Ps.
 78,489
 
  Ps. 86,621   Ps. 74,266 
Net income of
non-controlling
interest
  
 
7,349
 
   9,089    (5,202) 
Other comprehensive income (loss):
  
 
(4,552
) 
   (4,080)    7,240 
Exchange differences on translation of foreign operation
  
 
(3,833
) 
   (4,016)    7,349 
Remeasurements of the net defined benefits liability
  
 
(271
) 
   155    30 
Valuation of the effective portion of derivative financial instruments
  
 
(448
) 
   (219)    (139) 
Dividends
  
 
(3,945
) 
   (3,713)    (3,622) 
Share based payment
  
 
(12
) 
   31    50 
Acquisition of Socofar
non-controlling
interest
  
 
(3,530
) 
   —      —   
Other acquisitions and remeasurements
  
 
32
 
   413    (50) 
(Derecognition) contribution from
non-controlling
interest
  
 
—  
 
   (11,140)    11,072 
Accounting standard adoption effects (“IFRIC 23 and IFRS 9”)
  
 
(69
) 
   (150)    —   
Adoption of IAS 29 for Argentina
  
 
—  
 
   1,418    —   
Capitalization of issued shares to former owners of Vonpar in
Coca-Cola FEMSA
  
 
—  
 
   —      2,867 
  
 
 
   
 
 
   
 
 
 
Balance at end of the period
  
Ps.
 73,762
 
  Ps. 78,489   Ps. 86,621 
  
 
 
   
 
 
   
 
 
 
 
Non-controlling
interest’s accumulated other comprehensive income is comprised as follows:
 
   
December 31,
2019
   December 31,
2018		 
Exchange differences on translation foreign operation
  
Ps.
 (699
) 
  Ps. 3,134 
Remeasurements of the net defined benefits liability
  
 
(390
) 
   (119) 
Valuation of the effective portion of derivative financial instruments
  
 
(611
) 
   (163) 
  
 
 
   
 
 
 
Accumulated other comprehensive income
  
Ps.
 (1,700
) 
  Ps. 2,852 
  
 
 
   
 
 
 
Coca-Cola FEMSA shareholders, especially the Coca-Cola Company which hold Series D shares, have some protective rights about investing in or disposing of significant businesses. However, these rights do not limit the continued normal operations of Coca-Cola FEMSA.
Summarized financial information in respect of Coca-Cola FEMSA is set out below:
 
   
December 31,
2019
   December 31,
2018		 
Total current assets
  
Ps.
 56,796
 
  Ps. 57,490 
Total
non-current
assets
  
 
201,043
 
   206,297 
Total current liabilities
  
 
51,010
 
   45,524 
Total
non-current
liabilities
  
 
77,144
 
   86,513 
Total revenue
  
Ps.
 194,471
 
  Ps. 182,342 
Consolidated net (loss) income for continuing operations
  
 
12,630
 
   11,704 
Consolidated net income from discontinued operations
  
 
—  
 
   3,366 
Consolidated comprehensive income for continuing operations
  
Ps.
 5,489
 
  Ps. 3,563 
Consolidated comprehensive income from discontinued operations
  
 
—  
 
   3,056 
Net cash flow generated from operating activities for continuing operations
  
 
31,289
 
   27,581 
Net cash flow generated from operating activities from discontinued operations
  
 
—  
 
   1,308 
Net cash flow used in investing activities for continuing operations
  
 
(10,744
) 
   (8,291) 
Net cash flow used in investing activities from discontinued operations
  
 
—  
 
   (962) 
Net cash flow used in financing activities for continuing operations
  
 
(22,794
) 
   (14,235) 
Net cash flow used in financing activities from discontinued operations
  
 
—  
 
   (37) 
22.1 Options embedded from past acquisitions
FEMSA Comercio – Health Division entered into option transactions regarding the remaining 40%
non-controlling
interest not held by FEMSA Comercio – Health Division. The former controlling shareholders of Socofar may be able to put some or all of that interest to FEMSA Comercio – Health Division beginning (i)
42-months
after the initial acquisition, upon the occurrence of certain events and (ii) 60 months after the initial acquisition, in any event, FEMSA Comercio – Health Division can call the remaining 40%
non-controlling
interest beginning on the seventh anniversary of the initial acquisition date. Both of these options would be exercisable at the then fair value of the interest and shall remain indefinitely.
On December 13, 2019, the former controlling shareholders of Socofar exercised their put option to sell the remaining 40%
non-controlling
interest to FEMSA Comercio – Health Division at the fair value of the interest. As of December 31, 2019 the Company recognized a loss in the consolidated statements of changes in equity and Socofar has been included 100% in the consolidated statements of financial position.
The former controlling shareholders of Open Market retain a put for their remaining 20%
non-controlling
interest that can be exercised (i) at any time after the acquisition date upon the occurrence of certain events and (ii) annually from January through April, after the third anniversary of the acquisition date. In any event, the Company through one of its subsidiaries can call the remaining 20%
non-controlling
interest annually from January through April, after the fifth anniversary of the acquisition date. Both options would be exercisable at the then fair value of the interest and shall remain indefinitely.