Equity Accounted Investees (Tables)

12 Months Ended

Dec. 31, 2019

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Summary of Equity Accounted Investees

As of December 31, 2019 and 2018, Company’s equity accounted investees are as follows:

			Ownership Percentage						Carrying Value
Investee	Principal Activity	Place of Incorporation	December 31, 2019			December 31, 2018			December 31, 2019		December 31, 2018
Heineken (1) (2)	Beverages	The Netherlands		14.8	%		14.8	%	Ps.	83,789	Ps.	83,461
Coca-Cola FEMSA:
Joint ventures:
Compañía Panameña de Bebidas, S.A.P.I. de C.V.	Beverages	Mexico		50.0	%		50.0	%		486		1,550
Dispensadoras de Café, S.A.P.I. de C.V.	Services	Mexico		50.0	%		50.0	%		172		162
Fountain Agua Mineral, L.T.D.A.	Beverages	Brazil		50.0	%		50.0	%		851		826
Associates:
Promotora Industrial Azucarera, S.A. de C.V. (“PIASA”)	Sugar production	Mexico		36.4	%		36.4	%		3,274		3,120
Industria Envasadora de Querétaro, S.A. de C.V. (“IEQSA”)	Canned bottling	Mexico		26.5	%		26.5	%		194		179
Industria Mexicana de Reciclaje, S.A. de C.V. (“IMER”)	Recycling	Mexico		35.0	%		35.0	%		121		129
Jugos del Valle, S.A.P.I. de C.V.	Beverages	Mexico		28.8	%		26.3	%		1,929		1,571
Leao Alimentos e Bebidas, L.T.D.A.	Beverages	Brazil		24.7	%		24.7	%		1,931		2,084
Other investments in Coca-Cola FEMSA’s companies	Various	Various		Various			Various			793		897
FEMSA Comercio:
Raizen Conveniências (4)	Proximity	Brazil		50.0	%		—			3,410		—
Other investments (1) (3)	Various	Various		Various			Various			520		336
									Ps.	97,470	Ps.	94,315

(1) Associate.

(2) As of December 31, 2019 and 2018 comprised of 8.63% of Heineken, N.V. and 12.26% of Heineken Holding, N.V., which represents an economic interest of 14.76% in Heineken Group. The Company has significant influence, mainly, due to the fact that it participates in the Board of Directors of Heineken Holding, N.V. and the Supervisory Board of Heineken N.V.; and for the material transactions between the Company and Heineken Group.

(3) Joint ventures.

(4) On November 1, 2019, FEMSA Comercio – Proximity Division closed the acquisition of a 50% interest of Raízen Conveniências. The consideration amounted to R$ 357 million paid in cash and R$367 through notes payable, and such amounts include FEMSA Comercio’s prorrata portion of the investment requirements for the initial period of operations of the joint venture. Raízen is a company formed in 2010 from Cosan and Royal Dutch Shell in Brazil. The Joint Venture between FEMSA Comercio – Proximity Division and Raízen is limited to the convenience and proximity store business and excludes any other Raízen operations.

Summarized Financial Information in Respect of Associate Accounted for Under Equity Method

Summarized financial information in respect of the associate Heineken Group accounted for under the equity method is set out below.

	December 31, 2019				December 31, 2018
Amounts in millions	Peso		Euro		Peso			Euro
Total current assets	Ps.	177,829	€.	8,419	Ps.	205,662		€.	9,125
Total non-current assets		804,443		38,085		744,350			33,026
Total current liabilities		259,952		12,307		235,052			10,429
Total non-current liabilities		356,671		16,886		360,928			16,014
Total equity		365,648		17,311		354,032			15,708
Equity attributable to equity holders (1)		341,062		16,147		327,369			14,525
Total revenue and other income	Ps.	511,125	€.	24,064	Ps.	517,528		€.	22,564
Total cost and expenses		433,959		20,431		445,945			19,443
Net income	Ps.	50,424	€.	2,374	Ps.	48,280		€.	2,105
Net income attributable to equity holders		46,006		2,166		43,877			1,913
Other comprehensive income		3,951		186		(1,170	)		(51	)
Total comprehensive income	Ps.	54,375	€.	2,560	Ps.	47,111		€.	2,054
Total comprehensive income attributable to equity holders		49,447		2,328		42,615			1,858

(1) Following the IFRS Interpretations Committee agenda decision in January 2019 regarding tax deposits (relating to taxes other than income tax), Heineken Group changed its accounting policy with regards to payments relating to contingent liabilities. This change in accounting policy has been recognised retrospectively in Heineken Financial Statements and increased equity as at 1 January 2018 by €.157 million. The impact on 2018 profit amounts to an increase of €.10 million. For further information please refer to Heineken’s Annual Report.

Reconciliation from Equity of Associate to Investment of Company

Reconciliation from the equity of the associate Heineken Group to the investment of the Company.

	December 31, 2019						December 31, 2018
Amounts in millions	Peso			Euro			Peso			Euro
Equity attributable to equity holders of Heineken (1)	Ps.	341,062		€.	16,147		Ps.	323,608		€.	14,358
Economic ownership percentage		14.76	%		14.76	%		14.76	%		14.76	%
Investment in Heineken investment exclusive of goodwill and other adjustments	Ps.	50,341		€.	2,383		Ps.	47,765		€.	2,119
Effects of fair value determined by purchase price allocation		14,839			703			15,846			703
Goodwill		18,609			881			19,850			881
Heineken investment	Ps.	83,789		€.	3,967		Ps.	83,461		€.	3,703

(1) Related to the change in Heineken’s accounting policy mentioned in the table above, the Company recognized the accumulated effects as of January 1, 2019.

Schedule of Company's Share of Other Comprehensive Income from Equity Investees, Net of Taxes

For the year ended December 31, 2019, 2018 and 2017, the Company’s share of other comprehensive income from equity investees, net of taxes are as follows:

	2019			2018			2017
Items that may be reclassified to consolidated net income:
Valuation of the effective portion of derivative financial instruments	Ps.	—		Ps.	(355	)	Ps.	252
Exchange differences on translating foreign operations		1,058			(5	)		(2,265	)
Total	Ps.	1,058		Ps.	(360	)	Ps.	(2,013	)
Items that may not be reclassified to consolidated net income in subsequent periods:
Remeasurements of the net defined benefit liability	Ps.	(389	)	Ps.	597		Ps.	69