El Puerto de Liverpool, S. A. B. de C. V. and subsidiaries
(Notes 1, 2 and 3)
(Thousands of pesos)
| Year ended on December 31, |
||||||
| Note | 2016 | 2015 | ||||
| Operations | ||||||
| Profit before income tax | $ | 13,863,065 | $ | 12,476,064 | ||
| Adjustment from items not implying cash flows: | ||||||
| Depreciation and amortization included in | ||||||
| costs and expenses | 2,644,521 | 2,215,082 | ||||
| Provision for impairment of loan portfolio | 8 | 2,337,642 | 1,959,842 | |||
| Share of profit of associates | 12.2 | (715,672) | (699,290) | |||
| (Gain) on sale of investment properties | (11,578) | (58,651) | ||||
| (Gain) on sale of property, furniture and equipment | (57,512) | (28,712) | ||||
| Net cost for the period of labor obligations | 19 | 84,526 | 18,162 | |||
| Interest earned | (4,754,420) | (4,445,309) | ||||
| Accrued interest expense | 1,338,235 | 970,015 | ||||
| 865,742 | (68,861) | |||||
| (Increase) decrease in: | ||||||
| Interest earned from customers | 4,780,945 | 4,442,729 | ||||
| Short - term loan portfolio | (3,159,073) | (3,670,142) | ||||
| Inventories | (2,277,520) | (2,095,467) | ||||
| Value added tax recoverable | (1,603,468) | (232,029) | ||||
| Other accounts receivable | (176,522) | (185,767) | ||||
| Prepaid expenses | (603,299) | (343,794) | ||||
| Long - term loan portfolio | (897,800) | (336,256) | ||||
| Other long-term accounts receivable | (14,095) | (12,255) | ||||
| Increase (decrease) in: | ||||||
| Suppliers | 3,896,176 | 2,260,756 | ||||
| Provisions | 667,668 | 760,210 | ||||
| Deferred income | 166,887 | 135,938 | ||||
| Creditors | 327,609 | 494,212 | ||||
| Employee benefits paid | 97,832 | 188,188 | ||||
| Tax recovery | - | 3,784 | ||||
| Taxes paid | (3,678,173) | (4,748,610) | ||||
| Net cash flows provided by operating activities | 12,255,974 | 9,068,700 | ||||
| Investment activities | ||||||
| Gain on investments | 246,071 | 259,016 | ||||
| Acquisition of property, furniture and equipment - Net | 14 | (5,701,018) | (3,011,333) | |||
| Acquisition of investment property - Net | 13 | (1,356,248) | (1,166,856) | |||
| Sale of property, furniture and equipment | 124,768 | 100,855 | ||||
| Sale of investment properties | 84,847 | 193,457 | ||||
| Investment in new IT developments | 15 | (900,941) | (694,894) | |||
| Net cash flows provided by investment activities | (7,502,521) | (4,319,755) | ||||
| Cash surplus to be used in financing activities | 4,753,453 | 4,748,945 | ||||
| Financing activities | ||||||
| Dividends paid | 23.1 | (1,288,366) | (1,087,179) | |||
| Interest paid | (1,020,240) | (970,015) | ||||
| Issurance of senior notes | 14,546,164 | - | ||||
| Net cash flows provided by financing activities | 12,237,558 | (2,057,194) | ||||
| Increase in cash and cash equivalents | 16,991,011 | 2,691,751 | ||||
| Cash and cash equivalents at beginning of year | 7,759,790 | 5,933,384 | ||||
| Exchange loss on cash and cash equivalents | 823,429 | (41,916) | ||||
| Cash and cash equivalents at end of year | $ | 25,574,230 | $ | 8,583,219 | ||
The accompanying notes are an integral part of these consolidated financial statements.