NOTE 3 — REPORTING BY SEGMENT
The Company provides information by segments according to IFRS 8 “Operating Segments,” which establishes standards for reporting by operating segment and related disclosures for products and services, and geographic areas.
The Company’s Board of Directors and Management measures and assesses performance of operating segments based on the operating income of each of the countries where there are Coca-Cola franchises.
The operating segments are determined based on the presentation of internal reports to the Company´s chief strategic decision-maker. The chief operating decision-maker has been identified as the Company´s Board of Directors who makes the Company’s strategic decisions.
The following operating segments have been determined for strategic decision making based on geographic location:
|
· |
Operation in Chile |
|
· |
Operation in Brazil |
|
· |
Operation in Argentina |
|
· |
Operation in Paraguay |
The four operating segments conduct their businesses through the production and sale of soft drinks and other beverages, as well as packaging materials.
Expenses and income related to corporate management, have been assigned to the Chilean soft drinks segment, since Chile is the country that manages and pays corporate expenses, which would also be substantially incurred, independent to the existence of foreign subsidiaries.
Total revenues by segment include sales to unrelated customers and inter-segments, as indicated in the consolidated statement of income.
A summary of the Company’s operating segments in accordance to IFRS is as follows:
|
For the period ended December 31, 2017 |
|
Chile |
|
Argentina |
|
Brazil |
|
Paraguay |
|
Intercompany |
|
Consolidated |
|
|
|
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
|
Softdrinks |
|
391,629,010 |
|
444,872,352 |
|
387,545,053 |
|
113,314,824 |
|
(96,999) |
|
1,337,264,240 |
|
|
Other beverages |
|
160,244,448 |
|
99,712,939 |
|
216,352,694 |
|
27,962,406 |
|
— |
|
504,272,487 |
|
|
Packaging |
|
— |
|
9,202,768 |
|
— |
|
— |
|
(1,860,876) |
|
7,341,892 |
|
|
Net sales |
|
551,873,458 |
|
553,788,059 |
|
603,897,747 |
|
141,277,230 |
|
(1,957,875 |
) |
1,848,878,619 |
|
|
Cost of sales |
|
(328,579,003 |
) |
(294,370,581 |
) |
(362,686,353 |
) |
(85,346,902 |
) |
1,957,875 |
|
(1,069,024,964 |
) |
|
Distribution expenses |
|
(54,777,094 |
) |
(87,032,428 |
) |
(43,483,958 |
) |
(7,634,395 |
) |
— |
|
(192,927,875 |
) |
|
Administrative expenses |
|
(110,969,260 |
) |
(106,504,163 |
) |
(109,095,660 |
) |
(21,630,238 |
) |
— |
|
(348,199,321 |
) |
|
Finance income |
|
19,057,630 |
|
2,116,590 |
|
6,575,528 |
|
257,906 |
|
(16,813,279 |
) |
11,194,375 |
|
|
Finance expense |
|
(32,594,796 |
) |
(4,663,527 |
) |
(34,767,713 |
) |
(7,612 |
) |
16,813,279 |
|
(55,220,369 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net. |
|
(13,537,166 |
) |
(2,546,937 |
) |
(28,192,185 |
) |
250,294 |
|
— |
|
(44,025,994 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of the entity in income of associates |
|
246,084 |
|
(243 |
) |
(326,201 |
) |
— |
|
— |
|
(80,360 |
) |
|
Income tax expense |
|
(16,871,257 |
) |
(17,683,875 |
) |
(13,719,506 |
) |
(3,522,996 |
) |
— |
|
(51,797,634 |
) |
|
Other income (loss) |
|
(11,312,509 |
) |
(10,441,173 |
) |
(1,855,039 |
) |
(213,025 |
) |
— |
|
(23,821,746 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income of the segment reported |
|
16,073,253 |
|
35,208,659 |
|
44,538,845 |
|
23,179,968 |
|
— |
|
119,000,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
42,688,326 |
|
17,648,018 |
|
27,879,514 |
|
10,948,033 |
|
— |
|
99,163,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
223,245,173 |
|
97,529,488 |
|
132,815,545 |
|
30,419,844 |
|
— |
|
484,010,050 |
|
|
Non-current assets |
|
636,482,010 |
|
96,532,150 |
|
663,556,969 |
|
234,278,288 |
|
— |
|
1,630,849,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets, total |
|
859,727,183 |
|
194,061,638 |
|
796,372,514 |
|
264,698,132 |
|
— |
|
2,114,859,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount in associates and joint ventures accounted for using the equity method, total |
|
33,789,538 |
|
— |
|
53,019,531 |
|
— |
|
— |
|
86,809,069 |
|
|
Capital expenditures and other |
|
64,480,973 |
|
40,347,989 |
|
91,198,657 |
|
14,476,783 |
|
— |
|
210,504,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
169,508,083 |
|
105,886,744 |
|
135,595,155 |
|
17,297,339 |
|
— |
|
428,287,321 |
|
|
Non-current liabilities |
|
463,997,113 |
|
1,368,167 |
|
393,125,740 |
|
14,847,776 |
|
— |
|
873,338,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities, total |
|
633,505,196 |
|
107,254,911 |
|
528,720,895 |
|
32,145,115 |
|
— |
|
1,301,626,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by in Operating Activities |
|
79,451,122 |
|
38,904,028 |
|
98,783,329 |
|
30,821,869 |
|
— |
|
247,960,348 |
|
|
Cash flows (used in) provided by Investing Activities |
|
(49,677,671 |
) |
(40,344,994 |
) |
(64,331,960 |
) |
(14,476,785 |
) |
— |
|
(168,831,410 |
) |
|
Cash flows (used in) provided by Financing Activities |
|
(91,800,089 |
) |
16,891,759 |
|
(3,437,442 |
) |
— |
|
— |
|
(78,345,770 |
) |
|
For the period ended December 31, 2016 |
|
Chile |
|
Argentina |
|
Brazil |
|
Paraguay |
|
Intercompany |
|
Consolidated |
|
|
|
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
|
Softdrinks |
|
391,479,133 |
|
424,427,824 |
|
389,048,385 |
|
106,953,951 |
|
(334,784) |
|
1,311,574,509 |
|
|
Other beverages |
|
148,948,285 |
|
83,518,724 |
|
201,097,188 |
|
25,051,552 |
|
— |
|
458,615,749 |
|
|
Packaging |
|
— |
|
9,112,468 |
|
— |
|
— |
|
(1,843,406) |
|
7,269,062 |
|
|
Net sales |
|
540,427,418 |
|
517,059,016 |
|
590,145,573 |
|
132,005,503 |
|
(2,178,190 |
) |
1,777,459,320 |
|
|
Cost of sales |
|
(319,213,825 |
) |
(279,308,400 |
) |
(359,156,149 |
) |
(78,409,843 |
) |
2,178,190 |
|
(1,033,910,027 |
) |
|
Distribution expenses |
|
(52,540,986 |
) |
(80,066,734 |
) |
(44,107,337 |
) |
(6,961,838 |
) |
|
|
(183,676,895 |
) |
|
Administrative expenses |
|
(117,615,991 |
) |
(97,788,860 |
) |
(109,345,331 |
) |
(21,452,613 |
) |
|
|
(346,202,795 |
) |
|
Finance income |
|
2,426,279 |
|
1,095,411 |
|
5,800,712 |
|
339,290 |
|
|
|
9,661,692 |
|
|
Finance expense |
|
(16,262,215 |
) |
(587,216 |
) |
(34,504,760 |
) |
(20,780 |
) |
|
|
(51,374,971 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net* |
|
(13,835,936 |
) |
508,195 |
|
(28,704,048 |
) |
318,510 |
|
— |
|
(41,713,279 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of the entity in income of associates |
|
717,947 |
|
— |
|
(980,529 |
) |
— |
|
— |
|
(262,582 |
) |
|
Income tax expense |
|
(19,763,700 |
) |
(17,427,278 |
) |
(8,911,762 |
) |
(2,704,353 |
) |
— |
|
(48,807,093 |
) |
|
Other income (loss) |
|
(13,481,333 |
) |
(8,284,072 |
) |
(9,322,611 |
) |
250,478 |
|
— |
|
(30,837,538 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income of the segment reported |
|
4,693,594 |
|
34,691,867 |
|
29,617,806 |
|
23,045,844 |
|
— |
|
92,049,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
43,619,318 |
|
16,445,143 |
|
25,666,094 |
|
11,603,897 |
|
— |
|
97,334,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
251,357,854 |
|
115,280,140 |
|
150,820,924 |
|
35,283,479 |
|
— |
|
552,742,397 |
|
|
Non-current assets |
|
644,817,201 |
|
98,810,807 |
|
659,123,444 |
|
243,615,898 |
|
— |
|
1,646,367,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets, total |
|
896,175,055 |
|
214,090,947 |
|
809,944,368 |
|
278,899,377 |
|
— |
|
2,199,109,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount in associates and joint ventures accounted for using the equity method, total |
|
23,854,602 |
|
— |
|
53,343,179 |
|
— |
|
— |
|
77,197,781 |
|
|
Capital expenditures and other |
|
47,755,389 |
|
37,029,524 |
|
51,779,625 |
|
9,239,522 |
|
— |
|
145,804,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
137,438,744 |
|
134,624,014 |
|
130,279,607 |
|
17,192,489 |
|
— |
|
419,534,854 |
|
|
Non-current liabilities |
|
509,625,208 |
|
(1,981,066 |
) |
413,749,384 |
|
16,011,340 |
|
— |
|
937,404,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities, total |
|
647,063,952 |
|
132,642,948 |
|
544,028,991 |
|
33,203,829 |
|
— |
|
1,356,939,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by Operating Activities |
|
71,077,982 |
|
54,162,992 |
|
67,963,682 |
|
30,241,904 |
|
— |
|
223,446,560 |
|
|
Cash flows (used in) provided by Investing Activities |
|
(15,781,118 |
) |
(37,017,204 |
) |
(51,873,047 |
) |
(9,244,948 |
) |
— |
|
(113,916,317 |
) |
|
Cash flows (used in) provided by Financing Activities |
|
(23,591,062 |
) |
(17,777,191 |
) |
(36,806,173 |
) |
(20,050,099 |
) |
— |
|
(98,224,525 |
) |
(*) Financial expenses associated with external financing for the purchase of companies, including capital contributions are presented in this item.
|
For the period ended December 31, 2015 |
|
Chile |
|
Argentina |
|
Brazil |
|
Paraguay |
|
Intercompany |
|
Consolidated |
|
|
|
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
|
Softdrinks |
|
375,993,430 |
|
523,460,939 |
|
417,508,814 |
|
105,709,646 |
|
(281,091 |
) |
1,422,391,738 |
|
|
Other beverages |
|
138,739,166 |
|
93,409,514 |
|
189,538,968 |
|
24,329,754 |
|
— |
|
446,017,402 |
|
|
Packaging |
|
— |
|
10,387,685 |
|
— |
|
— |
|
(1,402,569 |
) |
8,985,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
514,732,596 |
|
627,258,138 |
|
607,047,782 |
|
130,039,400 |
|
(1,683,660 |
) |
1,877,394,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(309,387,177 |
) |
(351,139,902 |
) |
(369,212,113 |
) |
(78,650,614 |
) |
1,683,660 |
|
(1,106,706,146 |
) |
|
Distribution expenses |
|
(51,642,087 |
) |
(97,485,454 |
) |
(46,571,390 |
) |
(6,791,861 |
) |
— |
|
(202,490,792 |
) |
|
Administrative expenses |
|
(105,959,018 |
) |
(115,611,438 |
) |
(109,802,964 |
) |
(21,227,426 |
) |
— |
|
(352,600,846 |
) |
|
Finance income |
|
1,859,795 |
|
1,669,559 |
|
6,239,526 |
|
349,495 |
|
— |
|
10,118,375 |
|
|
Finance expense |
|
(16,699,299 |
) |
(3,916,370 |
) |
(35,021,529 |
) |
(32,019 |
) |
— |
|
(55,669,217 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net* |
|
(14,839,504 |
) |
(2,246,811 |
) |
(28,782,003 |
) |
317,476 |
|
— |
|
(45,550,842 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of the entity in income of associates accounted for using the equity method, total |
|
777,620 |
|
— |
|
(3,105,449 |
) |
— |
|
— |
|
(2,327,829 |
) |
|
Income tax expense |
|
(14,949,823 |
) |
(16,740,817 |
) |
(6,887,666 |
) |
(3,064,256 |
) |
— |
|
(41,642,562 |
) |
|
Other income (loss) |
|
(15,363,727 |
) |
(9,902,996 |
) |
(10,809,496 |
) |
(1,901,094 |
) |
— |
|
(37,977,313 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income of the segment reported |
|
3,368,880 |
|
34,130,720 |
|
31,876,701 |
|
18,721,625 |
|
— |
|
88,097,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
40,083,270 |
|
21,171,806 |
|
26,572,048 |
|
12,805,208 |
|
— |
|
100,632,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
256,380,151 |
|
111,228,338 |
|
145,809,121 |
|
33,992,246 |
|
— |
|
547,409,856 |
|
|
Non-current assets |
|
668,605,326 |
|
102,027,611 |
|
631,923,188 |
|
259,395,043 |
|
— |
|
1,661,951,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets, total |
|
924,985,477 |
|
213,255,949 |
|
777,732,309 |
|
293,387,289 |
|
— |
|
2,209,361,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount in associates and joint ventures accounted for using the equity method, total |
|
17,793,784 |
|
— |
|
36,396,762 |
|
— |
|
— |
|
54,190,546 |
|
|
Capital expenditures and other |
|
50,042,740 |
|
30,056,170 |
|
25,745,746 |
|
7,469,941 |
|
— |
|
113,314,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
81,766,688 |
|
113,185,338 |
|
164,173,404 |
|
21,448,780 |
|
— |
|
380,574,210 |
|
|
Non-current liabilities |
|
571,635,493 |
|
6,708,979 |
|
381,506,922 |
|
17,401,120 |
|
— |
|
977,252,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities, total |
|
653,402,181 |
|
119,894,317 |
|
545,680,326 |
|
38,849,900 |
|
— |
|
1,357,826,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by in Operating Activities |
|
105,897,100 |
|
83,290,552 |
|
66,272,643 |
|
9,448,935 |
|
— |
|
264,909,230 |
|
|
Cash flows (used in) provided by Investing Activities |
|
(40,431,754 |
) |
(28,732,653 |
) |
(29,150,493 |
) |
(4,816,170 |
) |
— |
|
(103,131,070 |
) |
|
Cash flows (used in) provided by Financing Activities |
|
(50,804,304 |
) |
(15,529,951 |
) |
(31,576,973 |
) |
(649,149 |
) |
— |
|
(98,560,377 |
) |