Changes in the balance of provisions recorded
25.5.1 Indirect taxes
| December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
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Balance at beginning of the year |
Ps. | 11,065 | Ps. | 1,725 | Ps. | 2,271 | ||||||
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Penalties and other charges |
362 | 173 | 21 | |||||||||
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New contingencies (see Note 19) |
91 | 768 | 84 | |||||||||
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Contingencies added in business combination (1) |
861 | 7,840 | — | |||||||||
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Cancellation and expiration |
(796 | ) | (106 | ) | (205 | ) | ||||||
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Payments |
(947 | ) | (6 | ) | (214 | ) | ||||||
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Brazil amnesty adoption |
(3,321 | ) | — | — | ||||||||
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Effects of changes in foreign exchange rates |
(479 | ) | 671 | (232 | ) | |||||||
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Balance at end of the year |
Ps. | 6,836 | Ps. | 11,065 | Ps. | 1,725 | ||||||
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25.5.2 Labor
| December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
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Balance at beginning of the year |
Ps. | 2,578 | Ps. | 1,372 | Ps. | 1,587 | ||||||
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Penalties and other charges |
56 | 203 | 210 | |||||||||
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New contingencies |
283 | 397 | 44 | |||||||||
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Contingencies added in business combination (1) |
— | 500 | — | |||||||||
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Cancellation and expiration |
(32 | ) | (186 | ) | (102 | ) | ||||||
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Payments |
(92 | ) | (336 | ) | (114 | ) | ||||||
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Effects of changes in foreign exchange rates |
(69 | ) | 628 | (253 | ) | |||||||
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Venezuela deconsolidation effect |
(1 | ) | — | — | ||||||||
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Balance at end of the year |
Ps. | 2,723 | Ps. | 2,578 | Ps. | 1,372 | ||||||
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25.5.3 Legal
| December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
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Balance at beginning of the year |
Ps. | 2,785 | Ps. | 318 | Ps. | 427 | ||||||
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Penalties and other charges |
121 | 34 | — | |||||||||
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New contingencies |
186 | 196 | — | |||||||||
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Contingencies added in business combination (1) |
783 | 2,231 | — | |||||||||
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Cancellation and expiration |
(16 | ) | (46 | ) | (33 | ) | ||||||
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Payments |
(417 | ) | (81 | ) | — | |||||||
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Brazil amnesty adoption |
7 | — | — | |||||||||
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Effects of changes in foreign exchange rates |
(151 | ) | 133 | (76 | ) | |||||||
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Venezuela deconsolidation effect |
(2 | ) | — | — | ||||||||
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Balance at end of the year |
Ps. | 3,296 | Ps. | 2,785 | Ps. | 318 | ||||||
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| (1) | Coca-Cola FEMSA recognized an amount of Ps. 7,840 corresponding to tax claims with local Brazil IRS (including a contingency of Ps. 5,321 related to the deductibility of a tax goodwill balance). The remaining contingencies relate to multiple claims with loss expectations assessed by management and supported by the analysis of legal counsels as possible, the total amount of contingencies guaranteed agreements amounts to Ps. 8,081. During 2017, Coca-Cola FEMSA took advantage of a Brazilian tax amnesty program. The settlement of certain outstanding matters under that amnesty program generated a benefit of Ps. 1,874 which has been offset against the corresponding indemnifiable assets. |