Consolidated statements
of cash flows

  2017   2016   2015
Cash flows from operating activities:
         
Consolidated net income for the year $11,448,482   $11,278,371   $7,504,331
Adjustments not requiring (providing) cash:          
Income tax recognized in earnings 3,331,065   5,030,852   3,173,352
Depreciation and amortization 2,261,993   2,093,893   1,843,475
Loss (gain) on sale of property, machinery and equipment and others assets 3,164   (12,200)   (73,420)
Derecognition of property, machinery and equipment and intangible assets     19,180
Impairment of property, plant and equipment 30,228   (236)   108,252
Impairment of exploration expenses   44,327   534,076
Gain on investment property revaluation (115,955)   (135,845)   (244,550)
Gain on brand revaluation   (8,672)  
Equity in income of associated companies and join ventures (2,507,468)   (1,868,484)   (1,275,577)
Derivative financial instruments (9,414)   (37,909)   (59,374)
Interest income (3,933,023)   (3,560,383)   (3,404,144)
Interest expense 575,880   518,538   389,795
Gain on disposal of shares of subsidiary and associated (1,246,031)   (1,141,267)   (129,376)
Other items 367,855   280,041   117,190
  10,206,776   12,481,026   8,503,210
           
Items related to operating activities:
         
(Increase) decrease in:          
Accounts receivable (463,061)   (3,427,025)   (2,036,223)
Interest income 3,588,215   3,140,534   2,920,455
Other accounts receivable (110,538)   (1,028,507)   (200,828)
Due from related parties (408,009)   (246,502)   (763,537)
Inventories (742,769)   (1,946,213)   (134,868)
Prepaid expenses 24,113   (24,924)   244,316
Long-term accounts receivable 10,143   17,336   20,583
Real estate inventories (38,715)   (82,342)   86,398
Other assets (235,324)   (278,992)   (310,777)
Increase (decrease) in:          
Trade accounts payable 564,913   941,653   (136,224)
Due to related parties (477,869)   483,388   673,705
Other liabilities 282,526   506,937   1,280,026
Provisions 219,086   923,128   (167,588)
Direct employee benefits (15,628)   122,748   81,400
Advances from customers 112,550   (148,539)   (699,148)
Other long-term liabilities 69,626   146,657   489,406
Employee retirement benefits (35,556)   107,624   168,779
Income taxes paid (2,976,019)   (4,636,975)   (3,218,086)
Derivative financial instruments 75,837   (473,394)   (248,306)
Net cash flows provided by operating activities 9,650,297   6,577,618   6,552,693
           
Cash flows from investing activities:
         
Purchase of investments in securities held for trading $(3,403,884)   $(3,630,842)   $(2,820,740)
Sale of investments in securities held for trading 4,125,216   4,824,133   6,441,961
Purchase of property, machinery and equipment (5,831,354)   (7,949,201)   (3,926,325)
Proceeds from sale of property, machinery and equipment 203,340   41,711   180,037
Other assets (100,131)   (13,413)   (53,162)
Interest received 326,085   379,700   471,501
Dividends received 465,125   840,808  
Derivative financial instruments (28,137)   3,462   23,100
Reimbursement for the sale of shares of Philip Morris Mexico, S.A. de C.V.     (1,726,525)
Sale of shares of subsidiaries 624,641     249,984
Acquisition of shares in subsidiaries and associates (2,145,335)   (3,929,650)   (285,073)
Net cash flows used in investing activities (5,764,434)   (9,433,292)   (1,445,242)
           
Cash flows from financing activities:          
Borrowings 29,503,548   11,671,967   2,495,665
Payment of borrowings and long-term debt (30,997,986)   (7,362,424)   (2,804,355)
Interest paid (574,944)   (518,901)   (388,912)
Dividends paid (1,530,681)   (3,246,915)   (2,663,062)
Capital stock repurchase (408,746)   (682,139)   (1,065,718)
Capital stock repurchase from subsidiary (424,063)   (235,891)   (650,552)
Derivative financial instruments 3,752   18,425   37,560
Decrease (acquisition) of non-controlling interest 33,112   (4,364)   291,451
Net cash flows used in financing activities (4,396,008)   (360,242)   (4,747,923)
           
Effects of exchange rate changes on cash and cash equivalents (16,407)   3,503   (66,637)
Net (decrease) increase in cash and cash equivalents (526,552)   (3,212,413)   292,891
Cash and cash equivalents at beginning of the year 4,857,917   8,070,330   7,777,439
Cash and cash equivalents at end of the year $4,331,365   $4,857,917   $8,070,330

See accompanying notes to consolidated financial statements.