NOTE 13 — INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
13.1Balances
Investments in associates using equity method of accounting are detailed as follows:
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Country of |
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Functional |
|
Carrying Value |
|
Percentage interest |
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||||
|
Taxpayer ID |
|
Name |
|
Incorporation |
|
Currency |
|
12.31.2017 |
|
12.31.2016 |
|
12.31.2017 |
|
12.31.2016 |
|
|
|
|
|
|
|
|
|
|
ThCh$ |
|
ThCh$ |
|
% |
|
% |
|
|
86.881.400-4 |
|
Envases CMF S.A. (1) |
|
Chile |
|
Chilean peso |
|
18,528,567 |
|
18,693,851 |
|
50.00 |
% |
50.00 |
% |
|
Foreign |
|
Leão Alimentos e Bebidas Ltda. (2) |
|
Brazil |
|
Brazilian real |
|
22,163,333 |
|
19,559,114 |
|
10.26 |
% |
8.82 |
% |
|
Foreign |
|
Kaik Participações Ltda. (2) |
|
Brazil |
|
Brazilian real |
|
1,228,350 |
|
1,364,444 |
|
11.32 |
% |
11.32 |
% |
|
Foreign |
|
SRSA Participações Ltda. |
|
Brazil |
|
Brazilian real |
|
189,290 |
|
258,928 |
|
40.00 |
% |
40.00 |
% |
|
Foreign |
|
Sorocaba Refrescos S.A. |
|
Brazil |
|
Brazilian real |
|
23,079,130 |
|
26,091,690 |
|
40.00 |
% |
40.00 |
% |
|
Foreign |
|
Trop Frutas do Brasil Ltda. (2) |
|
Brazil |
|
Brazilian real |
|
6,359,428 |
|
6,069,003 |
|
7.52 |
% |
7.52 |
% |
|
76.572.588-7 |
|
Coca Cola del Valle New Ventures S.A. (3) |
|
Chile |
|
Chilean peso |
|
15,260,971 |
|
5,160,751 |
|
35.00 |
% |
35.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
86.809.069 |
|
77,197,781 |
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|
|
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|
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(1) |
In these company, regardless of the percentage of ownership interest, it was determined that no controlling interest was held, only a significant influence, given that there was not a majority vote of the Board of Directors to make strategic business decisions. |
|
(2) |
In these companies, regardless of the percentage of ownership interest held, the Company has significant influence, given that it has a representative on each entity’s Board of Directors. |
|
(3) |
On January 28, 2016, Embotelladora Andina S.A along with Coca-Cola de Chile S.A. and Coca-Cola Embonor S.A., formed the company Coca-Cola del Valle New Ventures S.A., whose main purpose will be the development and production of juices, waters and non-carbonated beverages under trade names of The Coca-Cola Company, that Andina and Coca-Cola Embonor S.A. are authorized to market and distribute in their respective franchise territories. |
The movement of investments in associates accounted for using the equity method is shown below:
|
Details |
|
12.31.2017 |
|
12.31.2016 |
|
12.31.2015 |
|
|
|
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
|
Opening Balance |
|
77,197,781 |
|
54,190,546 |
|
66,050,213 |
|
|
Variation of minimum dividends from equity investees |
|
— |
|
— |
|
(217,750 |
) |
|
Dividends received |
|
(1,540,090 |
) |
(750,806 |
) |
(1,250,000 |
) |
|
Share in operating income |
|
932,340 |
|
396,764 |
|
(1,613,839 |
) |
|
Unrealized income |
|
85,268 |
|
85,266 |
|
85,266 |
|
|
Other investment increases in associates (Capital Contributions) |
|
15,570,161 |
|
17,586,575 |
|
915,069 |
|
|
Increase (Decrease) due to foreign currency translation differences |
|
(5,436,391 |
) |
5,689,436 |
|
(9,778,413 |
) |
|
|
|
|
|
|
|
|
|
|
Ending Balance |
|
86.809.069 |
|
77,197,781 |
|
54,190,546 |
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
Embotelladora |
|
Andina |
|
Paraguay |
|
Vital Jugos |
|
Vital Aguas |
|
Envase Central |
|
|
Total current assests |
|
97,285,008 |
|
7,143,561 |
|
30,419,844 |
|
21,135,712 |
|
4,296,412 |
|
8,343,734 |
|
|
Total non-current assests |
|
94,369,129 |
|
6,413,307 |
|
234,278,288 |
|
19,691,418 |
|
5,876,875 |
|
14,243,627 |
|
|
Total current liabilities |
|
109,594,738 |
|
2,944,499 |
|
17,297,339 |
|
14,244,283 |
|
3,698,382 |
|
7,410,662 |
|
|
Total non-current liabilities |
|
1,339,723 |
|
28,444 |
|
14,487,776 |
|
128,071 |
|
157,558 |
|
1,710,709 |
|
|
Net sales |
|
544,585,291 |
|
20,698,427 |
|
141,277,230 |
|
68,884,622 |
|
14,642,493 |
|
39,205,943 |
|
|
Net Income |
|
32,781,977 |
|
3,398,080 |
|
23,179,968 |
|
809,507 |
|
452,679 |
|
541,927 |
|
|
December 31, 2016 |
|
Embotelladora |
|
Andina |
|
Paraguay |
|
Vital Jugos |
|
Vital Aguas |
|
Envase Central |
|
|
Total current assests |
|
110,564,779 |
|
6,680,394 |
|
35,283,479 |
|
19,265,466 |
|
4,783,537 |
|
8,508,056 |
|
|
Total non-current assests |
|
98,518,204 |
|
7,381,968 |
|
243,615,898 |
|
22,297,712 |
|
6,298,423 |
|
12,034,286 |
|
|
Total current liabilities |
|
132,431,541 |
|
4,061,713 |
|
17,192,489 |
|
15,246,108 |
|
4,884,341 |
|
7,333,325 |
|
|
Total non-current liabilities |
|
1,621,792 |
|
141,258 |
|
16,011,340 |
|
445,794 |
|
144,250 |
|
614,711 |
|
|
Net sales |
|
507,946,578 |
|
20,601,647 |
|
132,005,503 |
|
75,788,427 |
|
14,437,818 |
|
40,342,848 |
|
|
Net Income |
|
32,268,140 |
|
3,754,831 |
|
23,045,844 |
|
913,880 |
|
70,878 |
|
1,641,112 |
|
|
December 31, 2015 |
|
Embotelladora |
|
Andina |
|
Paraguay |
|
Vital Jugos |
|
Vital Aguas |
|
Envase Central |
|
|
Total current assests |
|
106,560,232 |
|
7,156,377 |
|
33,992,246 |
|
16,976,780 |
|
4,092,161 |
|
9,033,175 |
|
|
Total non-current assests |
|
96,910,341 |
|
7,181,419 |
|
259,395,043 |
|
20,187,586 |
|
5,547,345 |
|
12,799,930 |
|
|
Total current liabilities |
|
112,132,723 |
|
3,410,663 |
|
21,448,780 |
|
10,596,366 |
|
4,180,302 |
|
9,104,102 |
|
|
Total non-current liabilities |
|
6,399,291 |
|
309,688 |
|
17,401,120 |
|
1,163,577 |
|
370,502 |
|
1,283,473 |
|
|
Net sales |
|
616,870,453 |
|
22,162,260 |
|
130,039,400 |
|
69,587,397 |
|
14,012,087 |
|
38,417,972 |
|
|
Net Income |
|
30,855,725 |
|
3,817,259 |
|
(542,264 |
) |
(13,018 |
) |
152,038 |
|
(550,469 |
) |
The main movements for the twelve- months ended December 2017 and fiscal year ended December 31, 2016, are the following:
|
· |
During fiscal year 2017 and 2016, Leão Alimentos e Bebidas Ltda. carried out capital increases. Rio de Janeiro Refrescos Ltda. participated in these capital increases regarding its ownership interest for amounts of ThCh$5,385,161 and ThCh$6,105,732, respectively. |
|
· |
During fiscal year 2017, Embotelladora Andina S.A. has made capital contributions to Coca-Cola del Valle New Ventures S.A. in the amount of ThCh$10,185,000 (ThCh$ 5,323,693 as of December 31, 2016). |
|
· |
During the fiscal year 2017 and 2016, Envases CMF S.A. declared ThCh$1,540,090 and ThCh$750,806 in dividends, respectively. Of the dividends declared for the year 2017 only ThCh$770,045 have been paid. |
|
· |
During the twelve months period ended December 31, 2017and fiscal year ended December 2016, Sorocaba Refrescos S.A. did not distribute dividends. |
13.3 Reconciliation of share of profit in investments in associates:
|
Details |
|
12.31.2017 |
|
12.31.2016 |
|
12.31.2015 |
|
|
|
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
|
Share of profit of investment accounted for using the equity method |
|
932,340 |
|
396,764 |
|
(1,613,839 |
) |
|
Unrealized earnings in inventory acquired from associates and not sold at the end of period, presented as a discount in the respective asset account (containers and/or inventories) |
|
(1,097,966 |
) |
(744,612 |
) |
(799,256 |
) |
|
Amortization of Fair Value in Envases CMF S.A. |
|
85,266 |
|
85,266 |
|
85,266 |
|
|
|
|
|
|
|
|
|
|
|
Income Statement Balance |
|
(80,360 |
) |
(262,582 |
) |
(2,327,829 |
) |
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|
|
|
|
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|
13.4Summary financial information of associates:
The following table presents summarized information regarding the Company´s equity investees as of December 31, 2017:
|
|
|
Envases |
|
Sorocaba |
|
Kaik |
|
SRSA |
|
Leão |
|
Trop Frutas |
|
Coca-Cola del Valle |
|
|
|
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
ThCh$ |
|
|
Total assets |
|
74,308,406 |
|
111,697,833 |
|
10,851,460 |
|
473,226 |
|
282,895,158 |
|
88,327,243 |
|
48,190,779 |
|
|
Total liabilities |
|
36,654,412 |
|
54,000,005 |
|
35 |
|
— |
|
79,689,080 |
|
11,407,361 |
|
4,594,308 |
|
|
Total revenue |
|
49,924,142 |
|
52,507,920 |
|
(137,002 |
) |
469,509 |
|
198,216,570 |
|
3,345,146 |
|
— |
|
|
Net income (loss) of associate |
|
2,405,060 |
|
(1,541,788 |
) |
(137,002 |
) |
469,509 |
|
(157,266 |
) |
1,927,448 |
|
(248,532 |
) |
|
|
|
|
|
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|
|
|
|
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|
|
|
|
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Reporting date |
|
12/31/2017 |
|
12/31/2017 |
|
12/31/2017 |
|
12/31/2017 |
|
12/31/2017 |
|
12/31/2017 |
|
11/30/2017 |
|