| 17) | OTHER CURRENT AND NON-CURRENT LIABILITIES |
As of December 31, 2017 and 2016, consolidated other current liabilities were as follows:
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Provisions1 |
Ps | 12,667 | 11,716 | |||||||||
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Interest payable |
2,496 | 3,425 | ||||||||||
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Advances from customers |
3,886 | 3,413 | ||||||||||
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Other accounts payable and accrued expenses2 |
5,238 | 3,976 | ||||||||||
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| Ps | 24,287 | 22,530 | ||||||||||
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| 1 | Current provisions primarily consist of accrued employee benefits, insurance payments, accruals for legal assessments and others. These amounts are revolving in nature and are expected to be settled and replaced by similar amounts within the next 12 months. |
| 2 | In 2017, includes an account payable in Colombian pesos equivalent to Ps491 (US$25) to be settled on January 5, 2018 related to a penalty imposed by the Commerce and Industry Superintendence in Colombia in connection with a market investigation (note 24.2). |
As of December 31, 2017 and 2016, consolidated other non-current liabilities were as follows:
| 2017 | 2016 | |||||||||||
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Asset retirement obligations1 |
Ps | 7,906 | 8,237 | |||||||||
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Accruals for legal assessments and other responsibilities2 |
1,599 | 1,514 | ||||||||||
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Non-current liabilities for valuation of derivative instruments |
402 | 818 | ||||||||||
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Environmental liabilities3 |
991 | 1,172 | ||||||||||
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Other non-current liabilities and provisions4 |
4,751 | 5,305 | ||||||||||
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| Ps | 15,649 | 17,046 | ||||||||||
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| 1 | Provisions for asset retirement include future estimated costs for demolition, cleaning and reforestation of production sites at the end of their operation, which are initially recognized against the related assets and are depreciated over their estimated useful life. |
| 2 | Provisions for legal claims and other responsibilities include items related to tax contingencies. |
| 3 | Environmental liabilities include future estimated costs arising from legal or constructive obligations, related to cleaning, reforestation and other remedial actions to remediate damage caused to the environment. The expected average period to settle these obligations is greater than 15 years. |
| 4 | As of December 31, 2017 and 2016, includes Ps1,498 and Ps2,300, respectively, of the non-current portion of taxes payable recognized in connection with the termination of the tax consolidation regime in Mexico as described in note 19.4. As of December 31, 2017 and 2016, Ps958 and Ps936, respectively, were included within current taxes payable. |
Changes in consolidated other current and non-current liabilities for the years ended December 31, 2017 and 2016, were as follows:
| 2017 | ||||||||||||||||||||||||||||||||
| Asset retirement obligations |
Environmental liabilities |
Accruals for legal proceedings |
Valuation of derivative instruments |
Other liabilities and provisions |
Total | 2016 | ||||||||||||||||||||||||||
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Balance at beginning of period |
Ps | 8,237 | 1,172 | 1,514 | 823 | 17,016 | 28,762 | 25,611 | ||||||||||||||||||||||||
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Business combinations |
— | — | — | — | 345 | 345 | — | |||||||||||||||||||||||||
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Additions or increase in estimates |
573 | 21 | 701 | 214 | 39,545 | 41,054 | 67,684 | |||||||||||||||||||||||||
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Releases or decrease in estimates |
(527 | ) | (54 | ) | (289 | ) | (306 | ) | (40,524 | ) | (41,700 | ) | (61,362 | ) | ||||||||||||||||||
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Reclassifications |
— | (182 | ) | 530 | — | (1,462 | ) | (1,114 | ) | (741 | ) | |||||||||||||||||||||
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Accretion expense |
(191 | ) | — | — | — | (830 | ) | (1,021 | ) | (1,042 | ) | |||||||||||||||||||||
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Foreign currency translation |
(186 | ) | 34 | (857 | ) | (310 | ) | 3,309 | 1,990 | (1,388 | ) | |||||||||||||||||||||
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Balance at end of period |
Ps | 7,906 | 991 | 1,599 | 421 | 17,399 | 28,316 | 28,762 | ||||||||||||||||||||||||
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Out of which: |
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Current provisions |
Ps | — | — | — | 19 | 12,648 | 12,667 | 11,716 | ||||||||||||||||||||||||
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