Form 6-K AMERICA MOVIL SAB DE For: Mar 28

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March 28, 2022 8:33 AM EDT

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United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant To Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of March 2022

Commission File Number: 1-16269

AMÉRICA MÓVIL, S.A.B. DE C.V.

(Exact Name of the Registrant as Specified in the Charter)

America Mobile

(Translation of Registrant’s Name into English)

Lago Zurich 245,

Plaza Carso / Edificio Telcel, Piso 16

Colonia Ampliación Granada,

Alcaldía Miguel Hidalgo,

11529, Mexico City,

México

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. (Check One)

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Financial Position

(In thousands of Mexican pesos)

Note

At September 30,
2021
Unaudited

At December 31,
2020
Audited

Assets

Current assets:

Cash and cash equivalents

Ps.

35,505,293

Ps.

35,917,907

Equity investments at fair value through other comprehensive income (OCI) and other short-term investments

62,736,503

54,636,395

Accounts receivable:

Subscribers, distributors, recoverable taxes, contract assets and other, net

207,911,850

207,977,954

Related parties

1,289,348

1,391,300

Derivative financial instruments

10,330,434

20,928,335

Inventories, net

35,472,246

30,377,439

Other current assets, net

13,457,144

8,993,907

Total current assets

Ps.

366,702,818

Ps.

360,223,237

Non-current assets:

Property, plant and equipment, net

Ps.

707,198,905

Ps.

722,929,631

Intangibles, net

124,456,319

133,456,967

Goodwill

139,845,480

143,052,859

Investments in associated companies

1,747,341

1,829,760

Deferred income taxes

124,020,457

115,370,240

Accounts receivable, subscriber, distributors and contract assets, net

7,670,010

7,792,863

Other assets, net

38,679,349

38,415,826

Right-of-use assets

92,095,245

101,976,844

Total assets

Ps.

1,602,415,924

Ps.

1,625,048,227

Liabilities and equity

Current liabilities:

Short-term debt and current portion of long-term debt

Ps.

147,231,925

Ps.

148,083,184

Short-term liability related to right-of-use of assets

27,340,678

25,067,905

Accounts payable

197,013,372

186,995,472

Accrued liabilities

58,111,910

50,291,851

Income tax

27,616,430

14,644,979

Other taxes payable

25,007,443

27,969,739

Derivative financial instruments

10,809,490

14,230,249

Related parties

3,612,876

3,999,916

Deferred revenues

37,305,055

36,027,383

Total current liabilities

Ps.

534,049,179

Ps.

507,310,678

Non-current liabilities:

Long-term debt

438,618,358

480,299,772

Long-term liability related to right-of-use of assets

73,000,591

84,259,336

Deferred income taxes

49,277,520

49,067,163

Deferred revenues

2,534,605

2,875,467

Asset retirement obligations

15,843,374

17,887,991

Employee benefits

166,851,285

168,230,202

Total non-current liabilities

Ps.

746,125,733

Ps.

802,619,931

Total liabilities

Ps.

1,280,174,912

Ps.

1,309,930,609

Equity:

Capital stock

Ps.

96,336,322

Ps.

96,341,695

Retained earnings:

Prior years

268,845,591

267,865,420

Profit for the year

60,436,744

46,852,605

Total retained earnings

329,282,335

314,718,025

Other comprehensive loss items

(169,283,793

)

(160,580,917

)

Equity attributable to equity holders of the parent

256,334,864

250,478,803

Non-controlling interests

65,906,148

64,638,815

Total equity

322,241,012

315,117,618

Total liabilities and equity

Ps.

1,602,415,924

Ps.

1,625,048,227

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Comprehensive Income

(In thousands of Mexican pesos, except for earnings per share)

For the nine-month periods ended
September 30,

Unaudited

Note

2021

2020

Operating revenues:

Service revenues

Ps.

633,737,482

Ps.

649,042,729

Sales of equipment

120,330,358

112,814,350

Ps.

754,067,840

Ps.

761,857,079

Operating costs and expenses:

Cost of sales and services

347,191,254

349,035,434

Commercial, administrative and general expenses

148,829,317

162,796,091

Other expenses

3,853,418

3,288,826

Depreciation and amortization

121,097,782

121,811,171

Ps.

620,971,771

Ps.

636,931,522

Operating income

Ps.

133,096,069

Ps.

124,925,557

Interest income

2,789,506

3,731,873

Interest expense

(27,185,173

)

(30,381,903

)

Foreign currency exchange loss, net

(6,890,565

)

(101,609,915

)

Valuation of derivatives, interest cost from labor obligations and other financial items, net

(12,457,881

)

15,180,875

Equity interest in net income (loss) result of associated companies

118,674

(283,367

)

Profit before income tax

89,470,630

11,563,120

Income tax

25,028,477

(1,695,582

)

Net profit for the periods

Ps.

64,442,153

Ps.

13,258,702

Net profit for the period attributable to:

Equity holders of the parent

Ps.

60,436,744

Ps.

9,540,321

Non-controlling interests

4,005,409

3,718,381

Ps.

64,442,153

Ps.

13,258,702

Basic and diluted earnings per share attributable to equity holders of the parent

Ps.0.91

Ps.0.14

Other comprehensive (loss) income items:

Net other comprehensive income that may be reclassified to (loss) or profit in subsequent periods:

Effect of translation of foreign entities and affiliates

Ps.

(10,656,019)

Ps.

16,621,249

Items that will not be reclassified to (loss) income in subsequent years:

Unrealized gain (loss) on equity investments at fair value, net of deferred taxes

3,350,342

(9,191,685

)

Total other comprehensive (loss) income items for the periods, net of deferred taxes

Ps.

(7,305,677)

Ps.

7,429,564

Total comprehensive income for the periods

Ps.

57,136,476

Ps.

20,688,266

Comprehensive income for the period attributable to:

Equity holders of the parent

54,567,225

12,763,305

Non-controlling interests

2,569,251

7,924,961

Ps.

57,136,476

Ps.

20,688,266

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity

For the nine-period ended September 30, 2021 (unaudited)

(In thousands of Mexican pesos)

Capital
stock

Legal
reserve

Retained
earnings

Unrealized
(loss) gain on
equity investment
at fair value

Re-measurement
of defined
benefit plans

Cumulative
Translation
adjustment

Revaluation
surplus

Total equity
attributable to
equity holders
of the parent

Non-
controlling
interests

Total
equity

Balance at December 31, 2020 (audited)

Ps.

96,341,695

Ps.

358,440

Ps.

314,359,585

Ps.

(10,881,990)

Ps.

(113,607,942)

Ps.

(100,926,140)

Ps.

64,835,155

Ps.

250,478,803

Ps.

64,638,815

Ps.

315,117,618

Net profit for the period

—

60,436,744

—

60,436,744

4,005,409

64,442,153

Unrealized gain on equity investments at fair value, net of deferred taxes

—

3,350,342

—

3,350,342

—

3,350,342

Effect of translation of foreign entities

—

1,404,840

(8,424,700

)

(2,200,001

)

(9,219,861

)

(1,436,158

)

(10,656,019

)

Transfer of revaluation of assets net of deferred taxes

—

2,833,357

—

(2,833,357

)

—

Comprehensive income (loss) for the period

—

63,270,101

3,350,342

1,404,840

(8,424,700

)

(5,033,358

)

54,567,225

2,569,251

57,136,476

Dividends declared

—

(26,616,504

)

—

(26,616,504

)

(1,987,570

)

(28,604,074

)

Repurchase of shares

(5,373

)

—

(22,413,590

)

—

(22,418,963

)

—

(22,418,963

)

Other acquisitions of non-controlling interest

—

324,303

—

324,303

685,652

1,009,955

Balance at September 30, 2021 (unaudited)

Ps.

96,336,322

. 358,440

Ps.

328,923,895

Ps.

(7,531,648)

Ps.

(112,203,102)

Ps.

(109,350,840)

Ps.

59,801,797

Ps.

256,334,864

Ps.

65,906,148

Ps.

322,241,012

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity

For the nine-period ended September 30, 2020 (unaudited)

(In thousands of Mexican pesos)


	Capital stock			Legal reserve		Retained earnings			Unrealized loss on equity investment at fair value			Re-measurement of defined benefit plans			Cumulative translation adjustment		Total equity attributable to equity holders of the parent			Non- controlling interests			Total equity
Balance at December 31, 2019 (audited)	Ps.	96,338,262		Ps.	358,440	Ps.	281,091,687		Ps.	(8,929,576)		Ps.	(103,581,488)		Ps.	(87,367,366)	Ps.	177,909,959		Ps.	48,996,906		Ps.	226,906,865
Net profit for the period		—			—		9,540,321			—			—			—		9,540,321			3,718,381			13,258,702
Unrealized loss on equity investments at fair value, net of deferred taxes		—			—		—			(9,191,685	)		—			—		(9,191,685	)		—			(9,191,685	)
Effect of translation of foreign entities		—			—		—			—			(988,471	)		13,403,140		12,414,669			4,206,580			16,621,249

Comprehensive (loss) income for the period		—			—		9,540,321			(9,191,685	)		(988,471	)		13,403,140		12,763,305			7,924,961			20,688,266

Dividends		—			—		(25,074,439	)		—			—			—		(25,074,439	)		(15,491	)		(25,089,930	)
Stock dividends		2,157			—		8,288,582			—			—			—		8,290,739			—			8,290,739
Repurchase of shares		(517	)		—		(1,953,203	)		—			—			—		(1,953,720	)		—			(1,953,720	)
Other non-controlling acquisitions		—			—		(1,962	)		—			—			—		(1,962	)		(608	)		(2,570	)

Balance at September 30, 2020 (unaudited)	Ps.	96,339,902		Ps.	358,440	Ps.	271,890,986		Ps.	(18,121,261)		Ps.	(104,569,959)		Ps.	(73,964,226)	Ps.	171,933,882		Ps.	56,905,768		Ps.	228,839,650

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Cash Flows

(In thousands of Mexican pesos)


	For the nine-month periods ended September 30, Unaudited
	2021			2020
Operating activities
Profit before income tax	Ps.	89,470,630		Ps.	11,563,120
Items not requiring the use of cash:
Depreciation property, plant and equipment and right-of-use assets		102,380,065			106,398,093
Amortization of intangible and other assets		18,717,717			15,413,078
Equity interest in net (loss) income of associated companies		(118,674	)		283,367
Loss on sale of property, plant and equipment		566,035			29,444
Net period cost of labor obligations		14,072,122			13,544,191
Foreign currency exchange (loss), net		6,275,334			97,223,366
Interest income		(2,789,506	)		(3,731,873	)
Interest expense		27,185,173			30,381,903
Employee profit sharing		1,965,157			1,360,577
Loss (gain) in valuation of derivative financial instruments, capitalized interest expense and other, net		5,509,646			(23,860,054	)
Gain on net monetary positions		(3,738,124	)		(2,566,507	)
Working capital changes:
Subscribers, distributors, recoverable taxes, contract assets and other, net		(1,792,927	)		14,274,743
Prepaid expenses		(4,845,130	)		(1,770,913	)
Related parties		(285,088	)		354,976
Inventories		(5,408,936	)		8,857,563
Other assets		(5,333,305	)		(3,310,398	)
Employee benefits		(15,034,626	)		(11,784,695	)
Accounts payable and accrued liabilities		2,052,479			(10,899,675	)
Employee profit sharing paid		(1,921,528	)		(2,435,640	)
Financial instruments and other		(1,505,930	)		6,347,162
Deferred revenues		1,234,931			1,058,046
Interest received		1,835,271			803,715
Income taxes paid		(26,544,350	)		(47,135,965	)

Net cash flows provided by operating activities	Ps.	201,946,436		Ps.	200,397,624

Investing activities
Purchase of property, plant and equipment		(85,544,001	)		(75,755,853	)
Acquisition of intangibles		(5,991,969	)		(15,289,555	)
Dividends received from associates and marketable securities		2,628,600			2,292,689
Proceeds from sale of plant, property and equipment		171,994			108,190
Acquisition of business, net of cash acquired		—			(131,529	)
Investment in affiliated companies		—			(72,431	)
Sale of shares of associated company		1,147,199			601,509
Other short-term investments		(3,361,507	)		(4,341,811	)

Net cash flows used in investing activities	Ps.	(90,949,684)		Ps.	(92,588,791)

Financing activities
Loans obtained		70,789,875			247,424,369
Repayment of loans		(103,347,911	)		(289,766,838	)
Payment of liability related to right-of-use of assets		(23,589,855	)		(23,641,040	)
Interest paid		(16,607,756	)		(20,287,662	)
Repurchase of shares		(22,418,965	)		(1,908,916	)
Dividends paid		(15,000,231	)		(4,060,130	)
Acquisition of non-controlling interests		(5,850	)		(2,570	)

Net cash flows used in financing activities	Ps.	(110,180,693)		Ps.	(92,242,787)

Net increase in cash and cash equivalents	Ps.	816,059		Ps.	15,566,046

Adjustment to cash flows due to exchange rate fluctuations, net		(1,228,673	)		645,171
Cash and cash equivalents at beginning of the year		35,917,907			19,745,656

Cash and cash equivalents at beginning of the period	Ps.	35,505,293		Ps.	35,956,873

Non-cash transactions related to:
Acquisitions of property, plant and equipment in accounts payable at end periods	Ps.	11,076,339		Ps.	14,417,248
Revaluation surplus		100,700,222			—

Non-cash transactions	Ps.	111,776,561		Ps.	14,417,248

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Notes to Unaudited Interim Condensed Consolidated Financial Statements

(In thousands of Mexican pesos (Ps.) and thousands of

U.S. dollars (US$), unless otherwise indicated)

1. Description of the Business and Relevant Events

I. Corporate Information

América Móvil, S.A.B. de C.V. and subsidiaries (hereinafter, the “Company”, “América Móvil” or “AMX”) was incorporated under the laws of Mexico on September 25, 2000. As of September 30, 2021, the Company provides telecommunications services in 25 countries throughout Latin America, the United States, the Caribbean and Europe. These telecommunications services include mobile and fixed-line voice services, wireless and fixed data services, internet access and Pay TV, over the top and other related services. The Company also sells equipment, accessories and computers.

•

Voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services.

•

Data services include value added, corporate networks, data and Internet services.

•

Pay TV represents basic services, as well as pay per view and additional programming and advertising services.

•

AMX provides other related services to advertising in telephone directories, publishing and call center services.

•

The Company also provides video, audio and other media content that is delivered through the internet directly from the content provider to the end user.

In order to provide these services, América Móvil has licenses, permits and concessions (collectively referred to herein as “licenses”) to build, install, operate and exploit public and/or private telecommunications networks and provide miscellaneous telecommunications services (mostly mobile and fixed voice and data services) and to operate frequency bands in the radio-electric spectrum for point-to-point and point-to-multipoint microwave links. The Company holds licenses in the 24 countries where it has networks, and such licenses have different dates of expiration through 2056.

Certain licenses require the payment to the respective governments of a share in sales determined as a percentage of revenues from services under concession. The percentage is set as either a fixed rate or in some cases based on certain size of the infrastructure in operation.

The corporate offices of América Móvil are located in Mexico City, Mexico, at Lago Zurich 245, Colonia Ampliación Granada, Delegación Miguel Hidalgo, 11529, Mexico City, México.

The Company’s unaudited interim condensed consolidated financial statements were approved for their issuance by the Company’s Chief Financial Officer on March 25, 2022, and subsequent events have been considered through that date.

II. Relevant Events in 2021

•

On September 15, 2021, we announced that we entered into an agreement with Cable & Wireless Panama, S.A., an affiliate of Liberty Latin America LTD., to sell our 100% interest in our subsidiary Claro Panama, S.A. The transaction excludes (i) all telecommunication towers owned indirectly by América Móvil, S.A.B. de C.V. in Panama and (ii) the Claro trademarks. The agreed purchase price is U.S.$200 million on a cash/debt free basis. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals, and we expect closing to occur during first half of 2022.

•

On September 29, 2021, we announced an agreement with Liberty Latin America LTD. to combine our respective Chilean operations, VTR and Claro Chile, to form a 50-50 joint venture. The proposed transaction combines the complementary operations of VTR, a leading provider of high-speed consumer fixed products, such as broadband and Pay TV services, where it connects close to 3 million subscribers

nationwide, and Claro Chile, one of Chile’s leading telecommunications service providers with over 6.5 million mobile customers. Completion of the transaction is subject to certain customary closing conditions, including obtaining required regulatory approvals, and we expect closing to occur during the second half of 2022.

2. Basis of Preparation of the Unaudited Interim Condensed Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices

a) Basis of preparation

The accompanying unaudited interim condensed consolidated financial statements for the nine months ended September 30, 2021, have been prepared in conformity with the International Accounting Standard No. 34, Interim Financial Reporting (“IAS 34”), and using the same accounting policies applied in preparing the annual financial statements, except as explained below. The Company has prepared the consolidated financial statements on the basis that it will continue to operate as a going concern.

The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Company’s audited annual consolidated financial statements as of December 31, 2019 and 2020, and for the three-year period ended December 31, 2020, as included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2020 (the “2020 Form 20-F”).

The preparation of these unaudited interim condensed consolidated financial statements in accordance with IAS 34 requires the use of critical estimates and assumptions that affect the amounts reported for certain assets and liabilities, as well as certain income and expenses. It also requires that management exercise judgment in the application of the Company’s accounting policies.

The Mexican peso is the functional currency of the Company’s Mexican operations and the consolidated reporting currency of the Company.

i) New standards, interpretations and amendments adopted

The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2020, except for the adoption of new standards effective as of January 1, 2021. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

Several amendments apply for the first time in 2021, but do not have an impact on the unaudited interim condensed consolidated financial statements of the Company.

Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16

The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).

The amendments include the following practical expedients:

•

A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest

•

Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued

•

Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

These amendments had no impact on the unaudited interim condensed consolidated financial statements of the Company. The Company intends to use the practical expedients in future periods if they become applicable.

3. Related Parties

a) The following is an analysis of the balances with related parties as of September 30, 2021 and December 31, 2020. All the companies were considered affiliates of América Móvil since the Company or the Company’s principal shareholders are also direct or indirect shareholders in the related parties:


	2021		2020
Patrimonial Inbursa, S.A.	Ps.	361,720	Ps.	327,985
Hubard y Bourlon, S.A. de C.V.		117,921		437,231
Sears Roebuck de México, S.A. de C.V. and Subsidiaries		226,720		233,402
Sanborns Hermanos, S.A.		79,000		160,116
Claroshop.com S.A.P.I. de C.V.		67,010		100,075
Grupo Condumex, S.A. de C.V. and Subsidiaries		76,792		10,038
Other		360,185		122,453

Total	Ps.	1,289,348	Ps.	1,391,300


	2021		2020
Accounts payable:
Grupo Condumex, S.A. de C.V. and Subsidiaries	Ps.	1,544,997	Ps.	1,054,526
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries		765,457		2,192,405
Seguros Inbursa, S.A. de C.V.		226,239		92,173
Grupo Financiero Inbursa, S.A.B. de C.V.		205,026		234,954
Claroshop.com S.A.P.I. de C.V.		252,820		4,300
Fianzas Guardiana Inbursa, S.A. de C.V.		246,544		241,898
Sociedad Financiera Inbursa. S.A. de C.V.		110,234		—
Enesa, S.A. de C.V. and Subsidiaries		17,272		22,014
PC Industrial, S.A. de C.V. and Subsidiaries		28,622		44,198
Other		215,665		113,448

Total	Ps.	3,612,876	Ps.	3,999,916

b) For the nine-month periods ended September 30, 2021 and 2020, the Company conducted the following transactions with related parties:


	2021		2020
Investments and expenses:
Construction services, purchases of materials, inventories and property, plant and equipment ⁽ⁱ⁾	Ps.	5,471,751	Ps.	5,077,699
Insurance premiums, fees paid for administrative and operating services, brokerage services and others ⁽ⁱⁱ⁾		3,293,424		2,987,742
Other services		1,143,079		798,469

	Ps.	9,908,254	Ps.	8,863,910

Revenues:
Revenue services	Ps.	463,593	Ps.	395,957
Sale of equipment		480,027		264,416

	Ps.	943,620	Ps.	660,373

i)	In 2021, this amount includes Ps.3,827,345 (Ps.4,415,590 in 2020) for network construction services and construction materials purchased from subsidiaries of Grupo Carso, S.A.B. de C.V. (Grupo Carso).

ii)

In 2021, this amount includes Ps.121,728 (Ps.134,123 in 2020) for network maintenance services performed by Grupo Carso subsidiaries; Ps.37,960 in 2021 (Ps.12,264 in 2020 for software services provided by an associate; Ps.2,914,338 in 2021 (Ps.2,606,092 in 2020) for insurance premiums with Seguros Inbursa, S.A. and Fianzas Guardiana Inbursa, S.A., which, in turn, places most of such insurance with reinsurers.

4. Property, Plant and Equipment, net

During the nine-month periods ended September 30, 2021 and 2020, the Company made cash payments related to investments in plant and equipment in order to increase and update its transmission network and other mobile and fixed assets for an amount of Ps.85,544,001 and Ps.75,755,853, respectively.

5. Income Taxes

As explained previously in these unaudited interim condensed consolidated financial statements, the Company is a Mexican corporation which has numerous consolidated subsidiaries operating in other countries.

i)	Consolidated income tax matters

The composition of income tax expense for the nine-month periods ended September 30, 2021 and 2020 is as follows:


	2021			2020
Current period income tax	Ps.	36,689,797		Ps.	22,201,055
Deferred income tax		(11,661,320	)		(23,896,637	)

	Ps.	25,028,477		Ps.	(1,695,582	)

Deferred tax related to items recognized in OCI during the nine-month periods ended September 30, 2021 and 2020 is as follows:

2021

2020

Equity investments at fair value

Ps.

(88,399

)

Ps.

897,286

Deferred tax charged to OCI

Ps.

(88,399

)

Ps.

897,286

Income Tax — Our income tax expense for the first nine months of 2021 was Ps.25.0 billion, as compared to a tax credit of Ps.1.7 billion for the first nine months of 2020. This increase principally reflects higher profit before income tax due to a decrease in our net foreign currency exchange loss of Ps.94.7 billion compared to the first nine months of 2020. Our effective corporate income tax rate as a percentage of profit before income tax was 28.0% for the first nine months of 2021, as compared to (14.7)% for the first nine months of 2020. This rate differed from the Mexican statutory rate of 30.0% principally because of taxable inflationary effects, employee benefits and non-taxable items.

6. Debt

a) The Company’s short- and long-term debt consists of the following:


At December 31, 2020					(Thousands of Mexican pesos)
Currency	Loan	Interest rate	Maturity		Total
Currency	Loan	Interest rate	Maturity		Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)	3.125%		2022	Ps.	31,917,920
	Fixed-rate Senior notes (i)	3.625%		2029		19,948,700
	Fixed-rate Senior notes (i)	2.875%		2030		19,948,700
	Fixed-rate Senior notes (i)	6.375%		2035		19,576,258
	Fixed-rate Senior notes (i)	6.125%		2037		7,365,559
	Fixed-rate Senior notes (i)	6.125%		2040		39,897,400
	Fixed-rate Senior notes (i)	4.375%		2042		22,941,005
	Fixed-rate Senior notes (i)	4.375%		2049		24,935,875

	Subtotal U.S. dollars				Ps.	186,531,417

Mexican pesos
	Fixed-rate Senior notes (i)	6.450%		2022	Ps.	22,500,000
	Fixed-rate Senior notes (i)	7.125%		2024		11,000,000
	Domestic Senior notes (i)	0.000%		2025		4,911,181
	Fixed-rate Senior notes (i)	8.460%		2036		7,871,700
	Domestic Senior notes (i)	8.360%		2037		5,000,000

	Subtotal Mexican pesos				Ps.	51,282,881

Euros
	Fixed-rate Senior notes (i)	3.000%		2021	Ps.	24,369,332
	Fixed-rate Senior notes (i)	3.125%		2021		18,276,999
	Fixed-rate Senior notes (i)	4.000%		2022		18,276,999
	Fixed-rate Senior notes (i)	4.750%		2022		18,276,999
	Fixed-rate Senior notes (i)	3.500%		2023		7,310,800
	Fixed-rate Senior notes (i)	3.259%		2023		18,276,999
	Fixed-rate Senior notes (i)	1.500%		2024		20,713,932
	Fixed-rate Senior notes (i)	1.500%		2026		18,276,999
	Fixed-rate Senior notes (i)	0.750%		2027		24,369,332
	Fixed-rate Senior notes (i)	2.125%		2028		15,840,066
	Commercial Paper (iv)	(0.230%) -(0.310%)		2021		40,940,477

	Subtotal Euros				Ps.	224,928,934

Pound Sterling
	Fixed-rate Senior notes (i)	5.000%		2026	Ps.	13,634,936
	Fixed-rate Senior notes (i)	5.750%		2030		17,725,417
	Fixed-rate Senior notes (i)	4.948%		2033		8,180,962
	Fixed-rate Senior notes (i)	4.375%		2041		20,452,405

	Subtotal Pound Sterling				Ps.	59,993,720

Brazilian reais
	Debentures (i)	104.000% of CDI		2021	Ps.	4,222,597
	Debentures (i)	104.250% of CDI		2021		5,815,668

Promissory notes (i)

CDI + 0.600%

2021

1,381,941

Debentures (i)

CDI + 0.960%

2022

9,596,811

Promissory notes (i)

106.000% of CDI

2022

7,677,449

Debentures (i)

106.500% of CDI

2022

3,838,725

Subtotal Brazilian reais

Ps.

32,533,191

Other currencies

Japanese yen

Fixed-rate Senior notes (i)

2.950%

2039

Ps.

2,511,701

Subtotal Japanese yen

Ps.

2,511,701

Chilean pesos

Fixed-rate Senior notes (i)

3.961%

2035

Ps.

4,078,453

Subtotal Chilean pesos

Ps.

4,078,453

Subtotal other currencies

Ps.

6,590,154

Hybrid Notes

Euros

Euro NC10 Series B Capital Securities (iii)

6.375%

2073

Ps.

13,403,133

Subtotal Euros

Ps.

13,403,133

Subtotal Hybrid notes

Ps.

13,403,133

Lines of Credit and others

Mexican pesos

Lines of credit (ii)

TIIE + 0.300% - TIIE + 1.000%

2021

Ps.

27,100,000

Peruvian Soles

Lines of credit (ii)

1.200% - 1.450%

2021

Ps.

17,094,079

Chilean pesos

Lines of credit (ii)

TAB + 0.350%

and TAB +

0.450%

2021

Ps.

8,868,181

Financial Leases

8.700% - 8.970%

2021 -2027

Ps.

57,266

Subtotal Lines of Credit and others

Ps.

53,119,526

Total debt

Ps.

628,382,956

Less: Short-term debt and current portion of long-term debt

Ps.

148,083,184

Long-term debt

Ps.

480,299,772


At September 30, 2021					(Thousands of Mexican pesos)
Currency	Loan	Interest rate	Maturity		Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)	3.125%		2022	Ps.	32,489,600
	Fixed-rate Senior notes (i)	3.625%		2029		20,306,000
	Fixed-rate Senior notes (i)	2.875%		2030		20,306,000
	Fixed-rate Senior notes (i)	6.375%		2035		19,926,887
	Fixed-rate Senior notes (i)	6.125%		2037		7,497,483
	Fixed-rate Senior notes (i)	6.125%		2040		40,612,000
	Fixed-rate Senior notes (i)	4.375%		2042		23,351,900
	Fixed-rate Senior notes (i)	4.375%		2049		25,382,500

	Subtotal U.S. dollars				Ps.	189,872,370

Mexican pesos
	Fixed-rate Senior notes (i)	6.450%		2022	Ps.	22,500,000
	Fixed-rate Senior notes (i)	7.125%		2024		11,000,000
	Domestic Senior notes (i)	0.000%		2025		5,146,689
	Fixed-rate Senior notes (i)	8.460%		2036		7,871,700
	Domestic Senior notes (i)	8.360%		2037		5,000,000

	Subtotal Mexican pesos				Ps.	51,518,389

Euros
	Fixed-rate Senior notes (i)	3.125%		2021	Ps.	17,635,761
	Fixed-rate Senior notes (i)	4.000%		2022		17,635,761
	Fixed-rate Senior notes (i)	4.750%		2022		17,635,761
	Fixed-rate Senior notes (i)	3.500%		2023		7,054,304
	Fixed-rate Senior notes (i)	3.259%		2023		17,635,761
	Fixed-rate Senior notes (i)	1.500%		2024		19,987,196
	Exchangeable Bond (i)	0.000%		2024		49,309,588
	Fixed-rate Senior notes (i)	1.500%		2026		17,635,761
	Fixed-rate Senior notes (i)	0.750%		2027		23,514,348
	Fixed-rate Senior notes (i)	2.125%		2028		15,284,326

	Subtotal Euros				Ps.	203,328,567

Pound Sterling
	Fixed-rate Senior notes (i)	5.000%		2026	Ps.	13,680,152
	Fixed-rate Senior notes (i)	5.750%		2030		17,784,198
	Fixed-rate Senior notes (i)	4.948%		2033		8,208,092
	Fixed-rate Senior notes (i)	4.375%		2041		20,520,228
	Subtotal Pound Sterling				Ps.	60,192,670

Brazilian reais
	Promissory notes (i)	CDI + 0.600%		2021	Ps.	1,343,927
	Debentures (i)	CDI + 0.960%		2022		9,332,831
	Promissory notes (i)	106.000% of CDI		2022		7,466,265

Debentures (i)

106.500% of CDI

2022

3,733,132

Subtotal Brazilian reais

Ps.

21,876,155

Other currencies

Japanese yen

Fixed-rate Senior notes (i)

2.950%

2039

Ps.

2,371,983

Subtotal Japanese yen

Ps.

2,371,983

Chilean pesos

Fixed-rate Senior notes (i)

3.961%

2035

Ps.

3,762,621

Subtotal Chilean pesos

Ps.

3,762,621

Subtotal other currencies

Ps.

6,134,604

Hybrid Notes

Euros

Euro NC10 Series B Capital Securities (iii)

6.375%

2073

Ps.

12,932,891

Subtotal Euros

Ps.

12,932,891

Subtotal Hybrid Notes

Ps.

12,932,891

Lines of Credit and others

U.S. dollars

Lines of credit (ii)

0.700%

2021

Ps.

514,336

Mexican pesos

Lines of credit (ii)

TIIE + 0.280% - TIIE + 0.400%

2021

Ps.

22,280,000

Peruvian Soles

Lines of credit (ii)

0.976% - 1.045%

2021 - 2022

Ps.

9,536,419

Chilean pesos

Lines of credit (ii)

TAB + 0.350% and TAB + 0.450%

2021 - 2022

Ps.

7,614,951

Financial Leases

8.700% - 8.970%

2021 - 2027

Ps.

48,931

Subtotal Lines of Credit and others

Ps.

39,994,637

Total debt

Ps.

585,850,283

Less: Short-term debt and current portion of long-term debt

Ps.

147,231,925

Long-term debt

Ps.

438,618,358

L= LIBOR (London Interbank Offered Rate)

TIIE = Mexican Interbank Rate

CDI = Brazil Interbank Deposit Rate

TAB= Chilean weighted average funding rate

Interest rates on the Company’s debt are subject to fluctuations in international and local rates. The Company’s weighted average cost of borrowed funds as of December 31, 2020, and September 30, 2021 was approximately 3.72% and 3.80%, respectively.

Such rates do not include commissions or the reimbursements for Mexican tax withholdings (typically a tax rate of 4.9%) that the Company must pay to international lenders.

An analysis of the Company’s short-term debt maturities as of December 31, 2020, and September 30, 2021, is as follows:


	2020			2021
Obligations and Senior Notes	Ps.	95,007,014		Ps.	107,273,038
Lines of credit		53,062,260			39,945,706
Financial Leases		13,910			13,181

Subtotal short term debt	Ps.	148,083,184		Ps.	147,231,925

Weighted average interest rate		2.23	%		3.75	%

As of September 30, 2021, the Company’s long-term debt maturities are as follows:


Years	Amount
2022	Ps.	22,501,478
2023		24,696,304
2024		80,303,579
2025 and thereafter		311,116,997

Total	Ps.	438,618,358

(i) Senior Notes

The amounts outstanding under our secured and unsecured debt securities as of December 31, 2020 and September 30, 2021, are as follows:


Currency	2020		2021
	(In thousands of Mexican pesos)
U.S. dollars	Ps.	186,531,417	Ps.	189,872,370
Mexican pesos		51,282,881		51,518,389
Euros		183,988,456		203,328,567
Pounds sterling		59,993,720		60,192,670
Brazilian reais		32,533,191		21,876,155
Japanese yen		2,511,701		2,371,983
Chilean pesos		4,078,453		3,762,621

(ii) Lines of credit

As of December 31, 2020, and September 30, 2021, debt under lines of credit aggregated to Ps.53,062 million and Ps.39,945 million, respectively.

The Company has two revolving syndicated credit facilities, one for the Euro equivalent of U.S.$1,500 million and the other for U.S.$2,500 million maturing in 2026 and 2024, respectively. As long as the facilities are committed, a commitment fee is paid. As of September 30, 2021, these credit facilities are undrawn. Telekom Austria has an undrawn revolving syndicated credit facility in Euros for €1,000 million that matures in 2026.

(iii) Hybrid Notes

We currently have one series of Capital Securities (hybrid notes) maturing in 2073 denominated in euros for a total amount of €550 million with a coupon of 6.375%. The Capital Securities are deeply subordinated, and when they were issued the principal rating agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50.0% equity credit). Standard & Poor’s considers 100% of the total amount of this note as debt. The Capital Securities are subject to redemption at our option at varying dates beginning in 2023.

(iv) Commercial Paper

In August 2020, we established a new Euro-Commercial Paper program for a total amount of €2,000 million. As of September 30, 2021, no amounts were outstanding under this program.

Restrictions

A portion of the Company’s debt is subject to certain restrictions with respect to maintaining certain financial ratios, as well as restrictions on selling a significant portion of groups of assets, among others. As of September 30, 2021, the Company was in compliance with all these requirements.

A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of a change in control of the Company, as defined in each instrument.

Covenants

In conformity with the credit agreements, the Company is obliged to comply with certain financial and operating commitments. Such covenants limit in certain cases the ability of the Company to pledge assets, carry out certain types of mergers or sell all or substantially all of its assets, and the Company’s ability to sell control of Telcel.

Such covenants do not restrict the ability of AMX’s subsidiaries to pay dividends or other payment distributions to AMX. The more restrictive financial covenants require the Company to maintain a consolidated ratio of debt to EBITDA (defined as operating income plus depreciation and amortization) that does not exceed 4 to 1, and a consolidated ratio of EBITDA to interest paid that is not below 2.5 to 1 (in accordance with the clauses included in the credit agreements).

Several of the financing instruments of the Company may be accelerated, at the option of the relevant creditor upon the occurrence of a change in control. The definition of change in control varies from instrument to instrument; however, no change in control shall be considered to have occurred as long as its current shareholders continue to hold the majority of the Company’s voting shares.

As of September 30, 2021, the Company was in compliance with all the covenants.

7. Contingencies

Included in Note 17 on pages F-59 to F-62 of the Company’s 2020 Form 20-F is a disclosure of material contingencies outstanding as of December 31, 2020. As of September 30, 2021, there has not been any material change in the status of those contingencies.

8. Financial Assets and Liabilities

Set out below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Company as of September 30, 2021 and December 31, 2020:

September 30, 2021

Loans and
Receivables

Fair value
through
profit or loss

Fair value
through OCI

Financial Assets:

Equity investments at fair value through OCI and other short term investments

Ps.

6,736,715

Ps.

—

Ps.

55,999,788

Accounts receivable from subscribers, distributors, contractual assets and other

171,013,502

—

Related parties

1,289,348

—

Derivative financial instruments

—

10,330,434

—

Total

Ps.

179,039,565

Ps.

10,330,434

Ps.

55,999,788

Financial Liabilities:

Debt

Ps.

585,850,283

—

Ps.

—

Liability related to right-of-use of assets

100,341,269

—

Accounts payable

197,013,372

—

Related parties

3,612,876

—

Derivative financial instruments

—

10,809,490

—

Total

Ps.

886,817,800

Ps.

10,809,490

Ps.

—


	December 31, 2020
	Loans and Receivables		Fair value through profit or loss		Fair value through OCI
Financial Assets:
Equity investments at fair value through OCI and other short term investments	Ps.	4,603,284	Ps.	—	Ps.	50,033,111
Accounts receivable from subscribers, distributors, contractual assets and other		171,213,415		—		—
Related parties		1,391,300		—		—
Derivative financial instruments		—		20,928,335		—

Total	Ps.	177,207,999	Ps.	20,928,335	Ps.	50,033,111

Financial Liabilities:
Debt	Ps.	628,382,956	Ps.	—	Ps.	—
Liability related to right-of-use of assets		109,327,241		—		—
Accounts payable		186,995,472		—		—
Related parties		3,999,916		—		—
Derivative financial instruments		—		14,230,249		—

Total	Ps.	928,705,585	Ps.	14,230,249	Ps.	—

Fair value hierarchy

The Company’s valuation techniques used to determine and disclose the fair value of its financial instruments are based on the following hierarchy:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities,

Level 2: Variables other than quoted prices in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices); and

Level 3: Variables used for the asset or liability that are not based on any observable market data (non-observable variables).

The fair value for the financial assets (excluding cash and cash equivalents) and financial liabilities shown in the consolidated statements of financial position at September 30, 2021 and December 31, 2020 is as follows:

Measurement of fair value at September 30, 2021

Level 1

Level 2

Level 3

Total

Assets:

Equity investments at fair value through OCI and other short term investments

Ps.

55,999,788

Ps.

6,736,715

Ps.

—

Ps.

62,736,503

Derivative financial instruments

—

10,330,434

—

10,330,434

Revalued of assets

—

100,700,222

Pension plan assets

174,111,251

22,993,990

21,478

197,126,719

Total

Ps.

230,111,039

Ps.

40,061,139

Ps.

100,721,700

Ps.

370,893,878

Liabilities:

Debt

Ps.

528,543,723

Ps.

119,442,955

Ps.

—

Ps.

647,986,678

Liability related to right-of-use of assets

100,341,269

—

100,341,269

Derivative financial instruments

—

10,809,490

—

10,809,490

Total

Ps.

628,884,992

Ps.

130,252,445

Ps.

—

Ps.

759,137,437


	Measurement of fair value at December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Equity investments at fair value through OCI and other short-term investments	Ps.	50,033,111	Ps.	4,603,284	Ps.	—	Ps.	54,636,395
Derivative financial instruments		—		20,928,335		—		20,928,335
Revalued of assets		—		—		107,152,628		107,152,628
Pension plan assets		168,939,091		22,589,392		21,100		191,549,583

Total	Ps.	218,972,202	Ps.	48,121,011	Ps.	107,173,728	Ps.	374,266,941

Liabilities:
Debt	Ps.	578,712,562	Ps.	135,645,912	Ps.	—	Ps.	714,358,474
Liability related to right-of-use of assets		109,327,241		—		—		109,327,241
Derivative financial instruments		—		14,230,249		—		14,230,249

Total	Ps.	688,039,803	Ps.	149,876,161	Ps.	—	Ps.	837,915,964

Fair value of derivative financial instruments is valued using valuation techniques with market observable inputs. To determine its Level 2 fair value, the Company applies different valuation techniques including forward pricing and swaps models, using present value calculations. The models incorporate various inputs including credit quality of counterparties, foreign exchange spot and forward rates and interest rate curves. Fair value of debt Level 2 has been determined using a model based on present value calculation incorporating credit quality of AMX. The Company’s investment in equity investments at fair value, specifically the investment in Koninklijke KPN N.V., is valued using the quoted prices (unadjusted) in active markets for identical assets. The net realized (loss) gain related to derivative financial instruments for the nine periods ended September 30, 2021 and 2020 was Ps.(1,505,930) and Ps.6,347,162, respectively.

The fair value of the asset revaluation was calculated using valuation techniques, using observable market data and internal information on transactions carried out with independent third parties. To determine fair value we use level 2 and 3 information, the Company used inputs such as average rents, contract term and discount rates for discounted flow modeling techniques; in the case of discount rates, we use level 2 data where the information is public and is found in recognized databases, such as country risks, inflation, etc. In the case of average rents and contract terms, we use level 3 data, where the information is mainly internal based on lease contracts entered into with independent third parties.

For the nine-month periods ended September 30, 2021, and 2020, no transfers were made between Level 1 and Level 2 fair value measurement hierarchies.

9. Shareholders’ Equity

a) Pursuant to the Company’s bylaws, the capital stock of the Company consisted as of September 30, 2021 of a minimum fixed portion of Ps.252,371 (nominal amount), represented by a total of 66,411,260,649 shares (including treasury shares available for placement in accordance with the provisions of the Ley del Mercado de Valores), of which (i) 20,554,697,460 were “AA” shares (full voting rights); (ii) 508,181,645 were “A” shares (full voting rights); and (iii) 45,348,381,544 were “L” shares (limited voting rights).

b) As of September 30, 2021 and December 31, 2020, the Company’s capital structure was represented by 65,450,000,000 outstanding shares (20,554,697,460 “AA” shares, 508,181,645 “A” shares and 44,387,120,895 “L” shares), and 66,862,560,649 shares (20,578,173,274 “AA” shares, 519,926,536 “A” shares and 45,764,460,839 “L” shares), respectively, not including treasury shares.

c) As of September 30, 2021 and December 31, 2020, the Company’s treasury held for placement in accordance with the provisions of the Ley del Mercado de Valores and the Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes en el Mercado de valores issued by the Comisión Nacional Bancaria y de Valores, a total amount of 961,260,649 shares, all of which were “L” shares; and 4,200,651,521 shares (4,200,629,621 “L” shares and 21,900 “A” shares) respectively, all acquired pursuant to the Company’s share repurchase program.

d) The holders of “AA” and “A” shares are entitled to full voting rights. The holders of “L” shares may only vote in limited circumstances, and they are only entitled to appoint two members of the Board of Directors and their respective alternates. The matters in which the holders of “L” shares are entitled to vote are the following: extension of the Company´s corporate life, dissolution of the Company, change of Company’s corporate purpose, change of nationality of the Company, transformation of the Company, a merger with another company, any transaction representing 20% or more of the Company’s consolidated assets, as well as the cancellation of the registration of the shares issued by the Company in the Registro Nacional de Valores and any other foreign stock exchanges where they may be registered, except for quotation systems or other markets not organized as stock exchanges. Within their respective series, all shares confer the same rights to their holders.

The Company’s bylaws contain restrictions and limitations related to the subscription and acquisition of “AA” shares by non-Mexican investors.

e) Pursuant to the Company’s bylaws, “AA” shares must at all times represent no less than 20% and no more than 51% of the Company’s capital stock, and they also must represent at all times no less than 51% of the common shares (entitled to full voting rights, represented by “AA” and “A” shares) representing said capital stock.

“A” shares, which may be freely subscribed, must not represent more than 19.6% of capital stock and must not exceed 49% of the common shares representing such capital. Common shares (entitled to full voting rights, represented by “AA” and “A” shares), must represent no more than 51% of the Company’s capital stock.

Lastly, “L” shares which have limited voting rights and may be freely subscribed, and “A” shares may not exceed 80% of the Company’s capital stock. For purposes of determining these restrictions, the percentages mentioned above refer only to the number of the Company’s shares outstanding.

Dividends

On April 26, 2021, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps.0.40 (forty peso cents) per share to each of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installments of Ps.0.20 (twenty peso cents) each, on July 19 and November 08, 2021 respectively.

On April 24, 2020, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps.0.38 (thirty-eight peso cents) per share to each of the shares series of its capital stock “AA”, “A” and L”. It was approved, that such dividend would be paid in two installments of Ps.0.19 (nineteen peso cents) each, on July 20 and November 9, 2020 respectively.

Legal Reserve

According to the Ley General de Sociedades Mercantiles, companies must allocate from the net profit of each year, at least 5% to increase the legal reserve until it reaches 20% of its capital stock. This reserve may not be distributed to shareholders during the existence of the Company, except as a stock dividend. As of December 31, 2020 and September 30, 2021, the legal reserve amounted to Ps.358,440.

Restrictions on Certain Transactions

Pursuant to the Company’s bylaws any transfer of more than 10% of the full voting shares (“A” shares and “AA” shares), effected in one or more transactions by any person or group of persons acting in concert, requires prior approval by our Board of Directors. If the Board of Directors denies such approval, however, the Company bylaws require it to designate an alternate transferee, who must pay market price for the shares as quoted on the Bolsa Mexicana de Valores, S.A.B. de C.V.

Payment of Dividends

Dividends, either in cash or in kind, paid with respect to the “A” Shares, “L” Shares, “A” Share ADSs or “L” Share ADSs will generally be subject to a 10% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2014). Nonresident holders could be subject to a lower tax rate, to the extent that they are eligible for benefits under an income tax treaty to which Mexico is a party.

10. Components of other comprehensive (loss) income

The movement on the components of the other comprehensive income for the nine-month periods ended September 30, 2021 and 2020 is as follows:


	2021			2020
Controlling interest:
Unrealized gain (loss) on equity investments at fair value, net of deferred taxes	Ps.	3,350,342		Ps.	(9,191,685)
Effect of translation of foreign entities		(9,219,861	)		12,414,669
Non-controlling interest of the items above		(1,436,158	)		4,206,580

Other comprehensive (loss) income	Ps.	(7,305,677)		Ps.	7,429,564

11. Valuation of derivatives, interest cost from labor obligations and other financial items, net

For the nine-month periods ended September 30, 2021 and 2020, valuation of derivatives and other financial items was as follows:


	2021			2020
(Loss) gain in valuation of derivatives, net	Ps.	(7,440,295)		Ps.	22,059,305
Capitalized interest expense		962,147			1,281,180
Commissions		(724,190	)		(726,799	)
Interest cost of labor obligations		(11,034,160	)		(10,008,512	)
Interest expense on taxes		(210,747	)		(73,828	)
Gain on net monetary positions		3,738,124			2,566,507
Received dividends		2,628,600			2,292,689
Other financial cost		(377,360	)		(2,209,667	)

	Ps.	(12,457,881)		Ps.	15,180,875

12. Segments

América Móvil operates in different countries. As mentioned in Note 1, the Company has operations in Mexico, Guatemala, Nicaragua, Ecuador, El Salvador, Costa Rica, Brazil, Argentina, Colombia, United States, Honduras, Chile, Peru, Paraguay, Uruguay, Dominican Republic, Puerto Rico, Panama, Austria, Croatia, Bulgaria, Belarus, Macedonian, Serbia and Slovenia. The accounting policies for the segments are the same as those described in Note 2.

The Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), analyzes the financial and operating information by operating segment. All operating segments that (i) represent more than 10% of consolidated revenues, (ii) more than the absolute amount of its reported 10% of profits before income tax or (iii) more than 10% of consolidated assets, are presented separately.

The Company presents the following reportable segments for the purposes of its unaudited interim condensed consolidated financial statements: Mexico (includes Telcel and Corporate operations and assets), Telmex (Mexico), Brazil, Southern Cone (includes Argentina, Chile, Paraguay and Uruguay) Colombia, Andean Region (Peru and Ecuador) Central America (includes Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama), U.S.A. (excludes Puerto Rico), Caribbean (includes Dominican Republic and Puerto Rico), and Europe (includes Austria, Bulgaria, Croatia, Belarus, Slovenia, Macedonia and Serbia).

The segment Southern Cone comprises mobile communication services in Argentina as well as Chile, Paraguay and Uruguay. Beginning in 2018, hyperinflation accounting in accordance with IAS 29 was initially applied to Argentina, which results in the restatement of non-monetary assets, liabilities and all items of the statement of comprehensive income for the change in a general price index and the translation of these items applying the period-end exchange rate.

The Company considers that the quantitative and qualitative aspects of any aggregated operating segments (that is, Central America and Caribbean reportable segments) are similar in nature for all periods presented. In evaluating the appropriateness of aggregating operating segments, the key indicators considered included but were not limited to: (i) the similarity of key financial statements measures and trends, (ii) all entities provide telecommunications services, (iii) similarities of customer base and services, (iv) the methods to distribute services are the same, based on telephone plant in both cases, wireless and fixed lines, (v) similarities of governments and regulatory entities that oversee the activities and services of telecom companies, (vi) inflation trends, and (vii) currency trends.


	Mexico			Telmex			Brazil			Southern Cone			Colombia		Andean		Central America		U.S.A.		Caribbean		Europe			Eliminations			Consolidated total
For the nine-month period ended at September 30, 2021 (in Ps.):
External revenues		167,068,404			60,027,193			110,905,923			44,681,396			58,682,003		38,927,167		35,751,870		125,850,762		27,802,660		84,370,462			—			754,067,840
Intersegment revenues		13,318,329			11,413,339			2,927,927			245,897			267,417		53,754		74,499		—		1,546,011		—			(29,847,173	)		—

Total revenues		180,386,733			71,440,532			113,833,850			44,927,293			58,949,420		38,980,921		35,826,369		125,850,762		29,348,671		84,370,462			(29,847,173	)		754,067,840
Depreciation and amortization		19,084,777			9,382,250			30,374,469			11,392,004			10,802,320		8,252,641		8,887,528		470,544		5,212,392		20,217,912			(2,979,055	)		121,097,782
Operating income		58,119,022			10,759,198			15,525,635			771,512			11,481,916		6,501,103		5,912,538		8,180,509		5,941,658		11,184,451			(1,281,473	)		133,096,069
Interest income		10,956,456			578,905			1,641,693			558,252			342,559		696,461		200,655		15,574		603,295		77,169			(12,881,513	)		2,789,506
Interest expense		18,241,534			956,473			12,811,114			2,272,601			1,191,571		1,051,613		871,122		—		815,658		1,794,498			(12,821,011	)		27,185,173
Income (loss) tax		13,790,776			(165,648	)		(270,784	)		150,863			2,289,695		1,733,786		2,028,494		2,146,773		1,558,000		1,765,305			1,217			25,028,477
Equity interest in net (loss) income of associated companies		94,098			35,617			3,151			(14,192	)		—		—		—		—		—		—			—			118,674
Net (loss) profit attributable to equity holders of the parent		38,450,431			324,094			(2,731,102	)		(1,790,796	)		5,157,191		3,923,364		3,117,131		6,048,191		3,780,469		8,138,326			(3,980,555	)		60,436,744
Assets by segment		889,467,535			200,733,595			377,096,414			121,661,333			121,700,775		88,880,066		91,987,390		36,148,821		97,550,149		210,854,012			(633,664,166	)		1,602,415,924
Plant, property and equipment, net		47,453,561			115,830,800			148,038,936			60,133,607			45,589,501		31,846,617		37,578,010		1,955,164		39,907,391		79,164,319			(999,223	)		606,498,683
Revalued of assets		—			—			33,752,770			6,431,351			11,294,298		8,312,475		9,037,022		—		2,570,742		29,301,564						100,700,222
Goodwill		26,958,526			215,381			15,497,563			5,234,688			11,165,031		4,768,861		5,998,144		3,409,137		14,186,723		52,411,426			—			139,845,480
Trademarks, net		74,280			157,673			—			—			—		—		—		242,106		230,144		2,842,993			—			3,547,196
Licenses and rights, net		11,094,284			134,876			23,564,269			13,157,543			10,658,007		5,576,637		5,292,920		—		8,746,193		26,365,109			—			104,589,838
Investment in associated companies		3,421,227			519,655			65,064			(31,711	)		360		—		25,944		—		—		—			(2,253,198	)		1,747,341
Liabilities by segments		695,231,230			189,572,148			257,380,892			66,738,174			54,895,325		39,712,005		35,464,159		35,237,943		51,981,989		134,326,237			(280,365,190	)		1,280,174,912
For the nine-month period ended at September 30, 2020 (in Ps.):
External revenues		157,017,776			58,533,896			125,358,248			44,302,662			57,112,939		40,007,375		36,180,619		133,295,003		27,740,339		82,308,222			—			761,857,079
Intersegment revenues		13,425,308			10,128,608			3,143,657			1,149,667			261,639		68,729		95,083		—		965,134		—			(29,237,825	)		—

Total revenues		170,443,084			68,662,504			128,501,905			45,452,329			57,374,578		40,076,104		36,275,702		133,295,003		28,705,473		82,308,222			(29,237,825	)		761,857,079
Depreciation and amortization		18,537,370			10,410,870			29,883,498			10,325,178			10,638,477		8,605,254		10,016,823		1,192,172		5,375,557		19,151,957			(2,325,985	)		121,811,171
Operating income		51,654,776			8,180,964			21,041,846			1,839,858			11,066,734		6,389,300		3,562,282		7,337,623		4,622,168		10,619,794			(1,389,788	)		124,925,557
Interest income		16,234,679			1,215,714			2,553,205			815,917			743,867		762,050		971,627		71,902		843,268		66,054			(20,546,410	)		3,731,873
Interest expense		24,216,507			972,848			14,452,857			2,920,178			2,053,120		1,766,047		1,249,404		255		1,258,679		1,914,989			(20,422,981	)		30,381,903
Income tax		(7,183,198	)		427,964			(5,160,653	)		1,044,529			1,352,374		1,443,303		1,699,497		1,987,128		1,721,363		968,245			3,866			(1,695,582	)
Equity interest in net income (loss) of associated companies		3,205			17,307			(4,266	)		(10,866	)		—		—		—		—		—		(288,747	)		—			(283,367	)
Net profit (loss) attributable to equity holders of the parent		(14,250,135	)		(876,289	)		(80,375	)		2,989,126			5,293,698		3,828,620		1,463,981		5,421,947		2,352,765		7,155,516			(3,758,533	)		9,540,321
Assets by segment		912,236,437			204,519,486			363,932,417			119,509,772			110,119,233		100,756,382		102,040,269		38,421,972		115,717,753		227,114,615			(709,999,499	)		1,584,368,837
Plant, property and equipment, net		52,628,017			107,780,493			147,417,917			67,258,476			48,761,676		40,990,163		41,474,069		1,913,022		44,558,007		90,263,430			(818,022	)		642,227,248
Goodwill		27,489,904			215,381			22,823,834			5,464,178			12,207,007		4,986,840		5,713,732		3,687,576		14,186,723		53,590,700			—			150,365,875
Trademarks, net		154,962			188,901			(20,119	)		—			—		—		—		337,600		246,216		3,214,708			—			4,122,268
Licenses and rights, net		12,001,759			430,436			21,389,457			13,608,516			14,614,518		8,096,467		5,764,429		—		9,294,305		29,317,549			—			114,517,436
Investment in associated companies		49,240			617,870			65,619			(19,178	)		393		—		28,638		—		—		—			1,095,703			1,838,285
Liabilities by segments		792,677,768			180,755,203			271,174,555			62,901,987			51,842,659		55,533,534		38,942,106		38,860,832		65,893,175		143,606,801			(346,659,433	)		1,355,529,187

13. Subsequent events

In July 2020, the Company announced that its Brazilian subsidiary, Claro S.A. (“Claro”), agreed to extend and amend the binding offer submitted, jointly with Telefónica Brasil S.A. (“Telefonica”) and TIM S.A. (“TIM”), for the acquisition of the mobile business owned by Oi Group, in the amount of R$16,500 million. Such joint offer contemplated, additionally, the possibility of entering into long term agreements for the use of infrastructure with Oi Group. The offer was submitted by the parties, and is subject to certain conditions, including their right to make a higher bid than another offer potentially presented by a third party (“right to top”) in the competitive process of Oi Group’s mobile business sale. Therefore, Claro believes that the joint offer with TIM and Telefonica is the one that best serves the interests of current customers of Oi, as it provides long-term experience in the Brazilian market, investment capacity and technical innovation to the sector as a whole; besides being in line with current regulation. On February 9, 2022, the Company announced that Brazil’s antitrust authority had approved the sale.

On September 14, 2020, the Company, announced that it had entered into an agreement with Verizon Communications Inc. (“Verizon”) to sell its 100% interest in its subsidiary TracFone Wireless, Inc. (“TracFone”), the largest mobile virtual prepaid service operator in the United States, serving 21 million subscribers. On November 23, 2021, the Company announced that it had completed the sale of its 100% interest in TracFone to Verizon.

On March 18, 2022, the Company entered into a credit agreement providing for borrowings in an amount up to Ps.20,558,500,000 with a group of lenders and BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México, as administrative agent for the lenders (the “Sitios Credit Facility”). The full principal amount available under the Sitios Credit Facility was disbursed on March 23, 2022. Under this credit agreement, the Company is an initial co-borrower with Torres Latinoamérica, S.A. de C.V. (“Torres”). In connection with the spin-off (through an escisión) by the Company of certain of its telecommunications towers and other associated passive infrastructure outside of Mexico to a new company (the “Sitios Spin-off”) to be named Sitios Latinoamérica, S.A.B. de C.V. (“Sitios”), on the date on which Sitios is duly incorporated in accordance with Mexican law, pursuant to the resolutions approved by the shareholders of the Company in the extraordinary shareholders’ meeting dated as of September 29, 2021, the Company will be released from its obligations under the Sitios Credit Facility and all liabilities with respect thereto will be transferred to Sitios, and Sitios will assume all of our obligations thereunder. After such date, Torres will continue to be a co-borrower under the Sitios Credit Facility and Torres do Brasil S.A. will become a guarantor thereunder.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 28, 2022


AMÉRICA MÓVIL, S.A.B. DE C.V.

By:		/s/ Carlos José Garcia Moreno Elizondo


Name:		Carlos José Garcia Moreno Elizondo
Title:		Chief Financial Officer

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Form 6-K AMERICA MOVIL SAB DE For: Mar 28

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