Notes to consolidated financial statements
For the years ended December 31, 2011 and 2010 (as adjusted)
(In thousands of Mexican pesos ($) and thousands of U.S. dollars (US$))

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15. Transactions and balances with related parties

a. Transactions with related parties, carried out in the ordinary course of business, were as follows:
				2011		2010
Sales			$	14,451,297	$	11,621,360
Interest income				306,381		-
Rentals collected				-		5,582
Purchases				(2,164,076)		(2,117,775)
Prepaid insurance				(114,828)		(119,487)
Lease expenses				(250,432)		-
Interest expenses				-		(10,615)
Services rendered				(638,480)		(488,965)
Other expenses, net				(137,468)		(134,508)
Purchases of fixed assets				(61,591)		(185,611)

b. Transactions with associated companies, carried out in the ordinary course of business, were as follows:

		2011		2010
Sales	$	1,184,181	$	1,186,069
Acquired services		169,590		99,029
Rentals collected		25,703		26,006
Interest income		75		-
Purchases		(205,963)		(132,206)
Interest expense		-		(394)
Other income, net		(7,328)		(67,794)
Purchases of fixed assets		(35,601)		(3)

c. Balances receivable and payable with related parties are as follows:

		2011		2010
Receivable-
Teléfonos de México, S.A.B. de C.V.	$	293,001	$	236,698
Delphi Packard Electric Systems, Inc.		204,147		126,623
América Móvil Perú, S.A.C.		86,943		-
Bienes Raíces de Acapulco, S.A. de C.V.		82,516		-
Empresa Brasileira de Telecomunicacoes, S.A.		70,051		-
Claro, S.A.		67,265		4,702
Compañía Dominicana de Teléfonos, C. por A.		66,456		69,973
Infraestructura y Saneamiento Atotonilco, S.A. de C.V.		59,959		-
Selmec Equipos Industriales, S.A. de C.V.		56,230		-
Inmobiliaria Aluminio, S.A. de C.V.		54,457		4,973
Concesionaria de Carreteras y Libramientos del Pacífico Norte, S.A. de C.V.		49,130		-
Zentrum Zistemaz, S.A. de C.V.		39,873		-
AMX Argentina, S.A.		38,500		4,310
Inmuebles General, S.A. de C.V.		35,957		76,472
Net Servicios de Comunicacao, S.A.		32,330		-
Promotora Inmobiliaria Fresno, S.A. de C.V.		29,418		5,553
Nacional de Cobre, S.A. de C.V.		28,931		27,053
Consorcio Ecuatoriano de Telecomunicaciones, S.A.		28,586		2,944
Telmex Argentina, S.A.		26,214		20,877
Páginas Telmex Perú, S.A.C.		25,500		-
Minera San Francisco del Oro, S.A. de C.V.		23,864		172,126
Telmex Perú, S.A.		23,129		-
Compañía de Teléfonos y Bienes Raíces, S.A. de C.V.		19,218		20,012
Construcción, Conservación y Mantenimiento Urbano, S.A. de C.V.		18,959		-
Atrios de Chapultepec, S.A. de C.V.		16,419		-
Embratel TV Sat Telecomunicacoes, LTDA.		15,133		-
Inmobiliaria las Trufas, S.A. de C.V.		14,695		-
Fundación Teléfonos de México, A.C.		13,352		305
Elementia, S.A.		11,774		23,565
Compañía de Telecomunicaciones del Salvador		10,975		8,729
Servicios de Comunicaciones de Honduras, S.A. de C.V.		8,748		11,350
Ecuador Telecom, L.L.C.		8,641		16,636
Telecomunicaciones de Guatemala, S.A.		5,873		21,632
AMX Paraguay, S.A.		4,209		11,826
Empresa Nicaragüense de Telecomunicaciones, S.A.		4,075		18,318
Renta de Equipo, S.A. de C.V.		233		17,823
Telmex USA, L.L.C.		174		20,762
CTE Telecom Personal, S.A. de C.V.		2		25,259
Autopista Arco Norte, S.A. de C.V.		-		123,784
Minera Real de Ángeles, S.A. de C.V.		-		109,969
Telmex Colombia, S.A.		-		49,082
Servicios Minera Real de Ángeles, S.A. de C.V.		-		47,916
Radiomóvil Dipsa, S.A. de C.V.		-		39,982
Concesionaria de Vías Troncales, S.A. de C.V.		-		36,071
Telmex, S.A.		-		33,723
Compañía Internacional Minera, S.A. de C.V.		-		28,692
Uninet, S.A. de C.V.		-		26,184
América Movil Perú, S.A.C.		-		22,929
Consorcio Red Uno, S.A. de C.V.		-		19,927
Others		91,721		75,427
	$	1,666,658	$	1,562,207
		2011		2010
Payable-
Dorians Tijuana, S.A. de C.V.	$	470,767	$	-
Minera Real de Ángeles, S.A. de C.V.		108,518		-
Inmuebles Srom, S.A. de C.V.		76,526		-
Administradora de Inmuebles Centro Histórico, S.A. de C.V.		61,135		-
Minera Tayahua, S.A. de C.V.		60,451		-
Radiomovil Dpsa, S.A. de C.V.		39,021		-
Comunicación Celular, S.A. de C.V.		31,454		-
Inmuebles Industriales Meisac, S.A. de C.V.		22,411		-
Hubard, y Bourlon, S.A. de C.V.		21,393		-
Inmuebles Sercox, S.A. de C.V.		18,609		-
Inmuebles Corporativos e Industriales CDX, S.A. de C.V.		17,492		-
Philip Morris México, S.A. de C.V.		8,685		22,569
Claro CR Telecomunicaciones, S.A.		7,596		23,038
Distribuidora Telcel, S.A. de C.V.		2,816		29,397
Fianzas la Guardiana Inbursa, S.A. de C.V.		875		89,100
Patrimonial Inbursa, S.A. de C.V.		-		920,610
Inmuebles y Servicios Mexicanos, S.A. de C.V.		-		411,552
Minera María, S.A. de C.V.		-		187,506
Alquiladora de Casas, S.A. de C.V.		-		65,076
Constructora Mexicana de Infraestructura Subterránea, S.A. de C.V.		-		49,667
Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V.		-		49,075
Inmobiliaria las Trufas, S.A. de C.V.		-		27,405
Others		69,303		66,489
	$	1,017,052	$	1,941,484

d. Borrowings from financial institutions includes balances with Banco Inbursa, S.A. of $872,000 and $2,503,932 as of December 31, 2011 and 2010, respectively; which accrue interest at a variable rate based on general market conditions (5.80% as of December 31, 2011).

e. Benefits granted to key management and/or executive personnel were as follows:

		2011		2010 (as adjusted)
Short and long-term direct benefits	$	156,260	$	135,441
Severance benefits		6,179		6,349
Postretirement benefits		272,460		310,595

f. The accounts receivable include a long-term loan granted in December 2010 to related parties of $11,943,260, which bore interest at an annual variable rate of TIIE + 2.25. In addition, the Company granted a revolving credit line facility on the same date of US 45,000 equivalent to $556,069, which bore interest at an annual variable rate of LIBOR + 2.5. Both loans had an original maturity date on December 2015; however, they were liquidated in advance in the first half of 2011.