2020 Annual Report slide image

2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS MEGACABLE. 2020 Current 2020 2019 2019 Noncurrent Current Noncurrent retirement, death or declaration of total or permanent disability dates. The retirement date will be the first day of the month immediately after the day they turn 65. The defined contribution must be a minimum equivalent to 1% of the salary established to this end. The company will match employee contributions. Employees may apply for early retirement (60 years), or continue working after they turn 65, as long as these exceptions are authorized by the Pension Plan Committee. (17) Lease assets (right-of-use) and lease liabilities- The Group has entered into various operating lease agreements for buildings in which it operates some of offices, customer service centers (CSC) and warehouses. The terms stipulated in these contracts fluctuate mainly between one and 10 years and most contain automatic renewal options. The minimum amounts to be paid are adjusted primarily according to the CPI and all are in pesos. The Group is subject to sublease agreement restrictions in certain cases. The Company leases minimum IT equipment under one- to three-year contracts. These leases are short-term and/or low- value item leases. The Group has decided not to recognize the right-of-use assets and liabilities for these leases. Information on leases for which the Company is a lessee is presented below. Right-of-use assets Right-of-use assets related to leased properties that do not meet the definition of investment property are comprised of the following: Short-term and long-term lease liabilities are as follows: Individual leasing contract in pesos of Network and technical equipment for signal distribution signed with BBVA Bancomer, S.A. Multiple Banking Institution, on November 27, 2020, for $581,743, expiring on November 1, 2021, payable as of January 1, 2021 through 11 monthly installments, accruing monthly interest at a fixed rate of 6.50%. (1) Individual leasing contract in pesos of Network and technical equipment for signal distribution signed with BBVA Bancomer, S.A. Multiple Banking Institution, on November 27, 2020, for $423,769, expiring on December 1, 2021, payable as of January 1, 2021 through 12 monthly installments, accruing monthly interest at a fixed rate of 6.50%. (1) Total leases with related parties Total office, warehouse, and CIS leases Total lease liabilities Less leases with related parties (2) (note 25) $ 674,822 491,572 Network and technical signal Total lease liabilities per the statement of financial position Building (offices, distribution warehouses and equipment, net CSC) Total 1) Balance at January 1, 2020 Additions $ 1,337,512 1,048,360 Annual depreciation (134,532) Balance at December 31, 2020 $ 2,251,340 378,146 83,781 (139,146) 322,781 1,715,658 1,132,141 (273,678) 2,574,121 100,149 729,085 275,534 735,400 124,836 231,510 132,652 266,963 1,391,379 960,595 408,186 1,002,363 100,149 729,085 275,534 735,400 $1,291,230 231,510 132,652 266,963 On November 27, 2020, Telefonía por Cable, S.A. de C.V., as well as Megacable Holdings, S.A.B. de C.V. and Mega Cable, S.A. de C.V., as joint obligors, signed two financial leasing contracts in pesos with BBVA Bancomer, S.A. for $ 581,743 and $ 423,769, said contracts expire on November 1, 2021 and December 1, 2021, respectively, the total minimum payments will be less than a year. As for the contracts indicated in the previous paragraph, the Group determined an effective interest rate in 2020 of 6.50% since they started to be paid as of January 1, 2021 in 11 and 12 monthly installments, respectively. Also, the fair value for the contracts is $1,166,394 and they are within level 2 in the fair value hierarchies. On March 17, 2020, Telefonía por Cable, S.A. de C.V., as well as Megacable Holdings, S.A.B. de C.V. and Mega Cable, S.A. de C.V., as joint obligors, signed a financial lease contract in pesos with BBVA Bancomer, S.A. for $1,300,000, payable as of May 1, 2020 through 8 monthly installments and accrued monthly interest at a fixed rate of 7.52%, which expired and was settled on December 1, 2020. 66
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