Our business activities require the holding or issuing of derivative financial instruments that expose us to market risks related to changes in interest rates, foreign currency exchange rates, equity risk and commodity price risk. Interest Rate Risk Interest rate risk exists principally with respect to our indebtedness that bears interest at floating rates. At December 31, 2025, we had outstanding total debt of Ps. 147,666 million, of which 6.9% bore interest at variable interest rates and 93.1% bore interest at fixed interest rates. After giving effect to derivative hedging contracts, as of December 31, 2025, 83.5% of our total debt was fixed rate and 16.5% of our total debt was variable rate (the total amount of debt and of variable rate debt and fixed rate debt used in the calculation of this percentage includes the effect of cross-currency and interest rate swaps). The interest rate on our variable rate debt is determined by reference to the Secured Overnight Financing Rate (“SOFR”), a benchmark rate used for U.S. dollar loans), the Equilibrium Interbank Interest Rate (Tasa de Interés Interbancaria de Equilibrio, or “TIIE”), and the Treasury Certificates (Certificados de la Tesorería, or “CETES”) rate. SOFR is subject to U.S. and international regulatory guidance and proposals for reform. These reforms and other pressures may cause SOFR to become unavailable or to perform or be reported differently than in the past. The consequences of these developments cannot be entirely predicted but could include an increase in the cost of our floating rate debt or exposure under our interest rate derivative transactions. We do not anticipate a significant impact to our financial position given our current mix of variable and fixed-rate debt, taking into account the impact of our interest rate hedging. If any of the above-described reference rates increase, our interest payments would consequently increase. The table below also includes the estimated fair value as of December 31, 2025 of: •short and long-term debt, based on the discounted value of contractual cash flows, in which the discount rate is estimated using rates currently offered for debt with similar terms and remaining maturities; •long-term notes payable based on quoted market prices; and •cross-currency swaps and interest rate swaps, based on quoted market prices to terminate the contracts as of December 31, 2025 As of December 31, 2025, the fair value represents a decrease in total debt. This represents Ps. 9,831 million less than book value. 116 As of December 31, (1) Carrying Fair Carrying Value at Value at Value at (in millions of Mexican pesos) 2026 2027 2028 2029 2030 2031 and thereafter December 31, 2025 December 31, 2025 December 31, 2024 Short-term debt: Fixed-rate debt: Argentine pesos Bank loans Ps. 634 — — — — — Ps. 634 634 638 Interest rate 36.2 % — — — — — 36.2 % — 50.1 % Chilean pesos Bank loans 448 — — — — — 448 448 460 Interest rate 6.0 % — — — — — 6.0 % — 6.4 % Colombian pesos Bank loans — — — — — — — — 345 Interest rate — — — — — — — — 10.4 % Uruguayan pesos Bank loans — — — — — — — — 46 Interest rate — — — — — — — — 10.8 % Variable-rate debt: Mexican pesos Bank loans 3,143 — — — — — 3,143 3,143 650 Interest rate 7.8 % — — — — — 7.8 % — 13.5 % Chilean pesos Bank loans 1,239 — — — — — 1,239 1,240 1,222 Interest rate 4.5 % — — — — — 4.5 % — 6.4 % Colombian pesos Bank loans 398 — — — — — 398 398 414 Interest rate 10.5 % — — — — — 10.5 % — 10.4 % Total short-term debt Ps. 5,862 Ps. — Ps. — Ps. — Ps. — Ps. — Ps. 5,862 Ps. 5,863 Ps. 3,775 (1)All interest rates shown in this table are weighted average contractual annual rates. 117 As of December 31, (1) Carrying Value at December 31, 2025 Fair Value at December 31, 2025 Carrying Value at December 31, 2024⁽¹⁾ 2031 and thereafter (in millions of Mexican pesos) 2026 2027 2028 2029 2030 Long-term debt: Fixed-rate debt: Euro Senior unsecured notes Ps. 10,539 Ps. — Ps. 6,182 Ps. — Ps. — Ps. 5,035 Ps. 21,756 Ps. 20,626 Ps. 21,748 Interest rate 2.6 — 0.5 % — — 1.0 % 1.6 % — 1.6 % U.S. dollars Yankee bond (2) — — — — 18,576 29,308 47,884 46,069 43,504 Interest rate — — — — 2.8 % 3.9 % 3.4 % — 3.1 % Bank of NY (FEMSA USD 2043) — — — — — 7,586 7,586 6,736 8,563 Interest rate (1) — — — — — 4.4 % 4.4 % — 4.4 % Bank of NY (FEMSA USD 2050) — — — — — 24,146 24,146 17,778 27,249 Interest rate (1) — — — — — 3.5 % 3.5 % — 3.5 % Bank loans — 2,066 — — — — 2,066 2,066 2,469 Interest rate — 5.1 % — — — — 5.1 % — 5.2 % Mexican pesos (CEBUR MXN L22-2L) — — — — — 8,436 8,436 8,762 8,435 Interest rate (1) — — — — — 9.7 % 9.7 % — 9.7 % Domestic senior notes — 8,497 9,959 5,494 — — 23,950 23,952 23,949 Interest rate — 7.9 % 7.4 % 10.0 % — — % 5.3 % — 8.1 % Bank loans 116 87 19 — — — 222 223 458 Interest rate 11.6 % 12.1 % 12.3 % — — — 11.9 % — 11.6 % Colombian pesos Bank loans 359 — — — — — 359 359 — Interest rate 9.9 % — % — % — % — % — % 9.9 % — — % Subtotal Ps. 11,014 Ps. 10,650 Ps. 16,160 Ps. 5,494 Ps. 18,576 Ps. 74,511 Ps. 136,405 Ps. 126,571 Ps. 136,375 (1)All interest rates shown in this table are weighted average contractual annual rates. 118 As of December 31, (1) Carrying Value at December 31, 2025 Fair Value at December 31, 2025 Carrying Value at December 31, 2024⁽¹⁾ 2031 and Thereafter (in millions of Mexican pesos) 2026 2027 2028 2029 2030 Variable-rate debt: Mexican pesos (CEBUR MXN L22) — 827 — — — — 827 831 826 Interest rate (1) — 11.6 % — % — — — 11.6 % — 11.6 % Domestic senior notes 2,934 — — — — — 2,934 2,934 4,654 Interest rate (1) 7.6 % — — — — — 7.6 % — 10.5 % Bank Loans 245 275 300 162 37 — 1,019 1,017 2,565 Interest rate (1) 6.4 % 9.5 % 12.3 % 9.4 % 9.3 % — 9.5 % — 13.3 % Brazilian reais Bank loans 3 — — — — — 3 3 9 Interest rate 8.8 % — — — — — 8.8 % — 9.1 % Colombian pesos Bank loans 616 — — — — — 616 617 — Interest rate 10.5 % — — — — — 10.5 % — — % Subtotal Ps. 3,798 Ps. 1,102 Ps. 300 Ps. 162 Ps. 37 Ps. — Ps. 5,399 Ps. 5,402 Ps. 8,054 Total long-term debt Ps. 14,812 Ps. 11,752 Ps. 16,460 Ps. 5,656 Ps. 18,613 Ps. 74,511 Ps. 141,804 Ps. 131,973 Ps. 144,429 Current portion of long-term debt (14,812) (2,947) Ps. 147,666 Ps. 148,204 (1)All interest rates shown in this table are weighted average contractual annual rates. (2)Interest rate derivatives that have been designated as fair value hedge relationships have been used by Coca-Cola FEMSA to mitigate the volatility in the fair value of existing financing instruments due to changes in floating interest rate benchmarks. Gains and losses on these instruments are recorded in “Market value (gain) loss on financial instruments” in the period in which they occur. During December 31, 2025, we are applying IFRS 9 to the hedged portion of the Senior Notes of US$705, which are linked to an interest rate swap. Starting in 2022, the hedging gain or loss adjusts the carrying amount of the hedged item and is recognized in the consolidated income statement under “Market value (gain) loss in financial instruments.” During the year ended December 31, 2025, the Company recognized a loss of Ps. 544 in the consolidated income statement under “Market value (gain) loss in financial instruments”, which offsets the loss on interest rate derivatives used to hedge debt denominated in USD, that resulted from increases in interest rates. A hypothetical, instantaneous and unfavorable change of 100 basis points in the average interest rate applicable to variable-rate liabilities held at FEMSA as of December 31, 2025 would increase our interest expense by approximately Ps. 211 million, or 1.0%, over the 12-month period of 2025, assuming no additional debt is incurred during such period, in each case after giving effect to all of our interest and cross-currency swap agreements. 119 Foreign Currency Exchange Rate Risk Our principal exchange rate risk involves changes in the value of the local currencies, of each country where we have operations, relative to the U.S. dollar. In 2025, the percentage of our consolidated total revenues was denominated as follows: Total Revenues by Currency at December 31, 2025 % of Consolidated Total Region Currency Revenues* Mexico and Central America Mexican peso, Guatemalan quetzal, Panamanian balboa, Costa Rican colon, Nicaraguan córdoba and U.S. dollar 67 % South America Brazilian reais, Argentine peso, Colombian peso, Chilean peso, Uruguayan peso and Peru sol 25 % U.S. U.S. dollar 2 % Europe Euros and Swiss franc 7 % *Numbers may not total due to rounding. We estimate that a majority of our consolidated costs and expenses are denominated in Mexican pesos for Mexican subsidiaries and in the aforementioned currencies for the foreign subsidiaries, which are principally subsidiaries of Coca-Cola FEMSA. Substantially all of our costs and expenses denominated in a foreign currency, other than the functional currency of each country where we have operations, are denominated in U.S. dollars. As of December 31, 2025, after giving effect to all cross-currency swaps and interest rate swaps, 53.4% of our long-term indebtedness was denominated in Mexican pesos, 27.0% was denominated in U.S. dollars, 7.2% was denominated in euros, 9.3% was denominated in Brazilian reais, 1.1% was denominated in Chilean pesos, 1.6% was denominated in Colombian pesos and 0.4% in Argentine pesos. We also have short-term indebtedness, which mostly consists of bank loans in Colombian pesos, Chilean pesos, Mexican pesos and Argentine pesos. Decreases in the value of the different currencies relative to the U.S. dollar will increase the cost of our foreign currency denominated operating costs and expenses, and the debt service obligations with respect to our foreign currency-denominated indebtedness. A depreciation of the Mexican peso relative to the U.S. dollar will also result in foreign exchange losses, as the Mexican peso value of our foreign currency-denominated long-term indebtedness is increased. Our exposure to market risk associated with changes in foreign currency exchange rates relates primarily to U.S. dollar and euro-denominated debt obligations as shown in the interest rate risk table above. We occasionally utilize financial derivative instruments to hedge our exposure to the U.S. dollar relative to the Mexican peso and other currencies. As of December 31, 2025, we had forward agreements that met the hedging criteria for accounting purposes, to hedge our transactions denominated in U.S. dollars. The notional amount of these forward agreements was Ps. 10,533 million that expire in 2026, for which we have recorded a net fair value liability of Ps. 619 million. The fair value of foreign currency forward contracts is estimated based on the quoted market price of each agreement at year-end assuming the same maturity dates originally contracted for. For the year ended December 31, 2025, a loss of Ps. 2 million on expired forward agreements was recorded in our consolidated results. As of December 31, 2024, we had forward agreements that met the hedging criteria for accounting purposes, to hedge our transactions denominated in U.S. dollars. The notional amount of these forward agreements was Ps. 8,052 million that expired in 2025, for which we have recorded a net fair value asset of Ps. 422 million. The fair value of foreign currency forward contracts is estimated based on the quoted market price of each agreement at year-end assuming the same maturity dates originally contracted for. For the year ended December 31, 2024, a gain of Ps. 3 million on expired forward agreements was recorded in our consolidated results. As of December 31, 2023, we had forward agreements that met the hedging criteria for accounting purposes, to hedge our transactions denominated in U.S. dollars. The notional amount of these forward agreements was (i) Ps. 11,449 million that expired in 2024, for which we have recorded a net fair value liability of Ps. 537 million. The fair value of foreign currency forward contracts is estimated based on the quoted market price of each agreement at year-end assuming the same maturity dates originally contracted for. For the year ended December 31, 2023, a loss of Ps. 180 million on expired forward agreements was recorded in our consolidated results. 120 As of December 31, 2025 and 2024, we did not have any non-derivative financial liability as a hedge on net investments. As of December 31, 2023, our net investment in Heineken was designated as a non-derivative hedge on long-term debt in an aggregate amount of €534 million. In 2023, following the divestment of our stake in Heineken, this net investment hedge was discontinued, recycling the effects of Heineken’s hedge in the consolidated income statements, which amounted to a gain of Ps. 5,763 million, net of tax. Additionally, as of December 31, 2023, our net investments in Jetro Restaurant Depot and Envoy Solutions were designated as non-derivative hedges on long-term debt in the aggregate amount of U.S. $1,557 million. In 2023, following our divestment of our investments in Jetro Restaurant Depot and Envoy Solutions, these net investment hedges were discontinued, with respect to Envoy Solution’s hedge, recycling its effects in the consolidated income statements, which amounted to a gain of Ps. 3,910 million, net of tax, and with respect to Jetro Restaurant Depot’s hedge, remaining in other comprehensive income, as this investment was classified as FVOCI, which amounted to a gain of Ps. 1,188 million, net of tax. See Note 4.3.1 to our consolidated financial statements. The following table illustrates the effects that hypothetical fluctuations in the exchange rates of the U.S. dollar and the euro relative to the Mexican peso, and the U.S. dollar relative to the Brazilian real and Colombian peso, would have on our equity and profit or loss: Effect on Equity Change in (in millions of Exchange Mexican Foreign Currency Risk Rate pesos) 2025 FEMSA(1) +9% MXN/USD Ps. — ‑9% MXN/USD — +5% CHF/EUR 85 ‑5% CHF/EUR (85) Coca-Cola FEMSA +9% MXN/USD 565 ‑9% MXN/USD (565) +10% BRL/USD 194 ‑10% BRL/USD (194) +11% COP/USD 91 ‑11% COP/USD (91) +25% ARS/USD 40 ‑25% ARS/USD (40) +6% UYU/USD 25 ‑6% UYU/USD (25) +3% CRC/USD 10 -3% CRC/USD (10) 2024 FEMSA(1) +13% MXN/USD Ps. 15 ‑13% MXN/USD (15) +5% CHF/EUR 125 ‑5% CHF/EUR (125) +7% CHF/USD 7 ‑7% CHF/USD (7) Coca-Cola FEMSA +13% MXN/USD 183 ‑13% MXN/USD (183) +13% BRL/USD 50 ‑13% BRL/USD (50) +11% COP/USD 34 ‑11% COP/USD (34) 121 +2% ARS/USD 11 ‑2% ARS/USD (11) +5% UYU/USD 13 ‑5% UYU/USD (13) +5% CRC/USD 14 -5% CRC/USD (14) 2023 FEMSA(1) +11% MXN/USD Ps. 9 ‑11% MXN/USD (9) +7% CHF/EUR 78 ‑7% CHF/EUR (78) +7% EUR/USD (6) ‑7% EUR/USD 6 Coca-Cola FEMSA +11% MXN/USD 465 ‑11% MXN/USD (465) +12% BRL/USD 521 ‑12% BRL/USD (521) +16% COP/USD 225 ‑16% COP/USD (225) +120% ARS/USD 685 ‑120% ARS/USD (685) +5% UYU/USD 20 ‑5% UYU/USD (20) +7% CRC/USD 15 -7% CRC/USD (15) (1)Does not include Coca-Cola FEMSA. As of December 31, 2025, we had (i) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 7,217 million that expire in 2026, for which we have recorded a net fair value liability of Ps. 165 million; (ii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 11,913 million that expire in 2027, for which we have recorded a net fair value liability of Ps. 981 million; (iii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 8,705 million that expire in 2028, for which we have recorded a net fair value asset of Ps. 238 million; (iv) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 1,327 million that expire in 2029, for which we have recorded a net fair value asset of Ps. 358 million; (v) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 19,526 million that expire in 2030, for which we have recorded a net fair value asset of Ps. 955 million; (vi) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 3,683 million that expire in 2032, for which we have recorded a net fair value of Ps. 0 million; (vii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 4,722 million that expire in 2033, for which we have recorded a net fair value asset of Ps. 296 million; (viii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 11,797 million that expire in 2035, for which we have recorded a net fair value liability of Ps. 3,507 million; (ix) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 5,398 million that expire in 2043, for which we have recorded a net fair value asset of Ps. 2,029 million; and (x) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 3,471 million that expire in 2050, for which we have recorded a net fair value asset of Ps. 1,118 million. As of December 31, 2024, we had (i) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 4,483 million that expire in 2025, for which we have recorded a net fair value asset of Ps. 679 million; (ii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 7,243 million that expire in 2026, for which we have recorded a net fair value asset of Ps. 546 million; (iii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 19,300 million that expire in 2027, for which we have recorded a net fair value liability of Ps. 699 million; (iv) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 6,819 million 122 that expire in 2028, for which we have recorded a net fair value liability of Ps. 211 million; (v) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 2,182 million that expire in 2029, for which we have recorded a net fair value asset of Ps. 615 million; (vi) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 26,086 million that expire in 2030, for which we have recorded a net fair value asset of Ps. 3,098 million; (vii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 263 million that expire in 2033, for which we have recorded a net fair value liability of Ps. 31 million; (viii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 10,000 million that expire in 2035, for which we have recorded a net fair value liability of Ps. 2,248 million; (ix) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 12,492 million that expire in 2043, for which we have recorded a net fair value asset of Ps. 3,588 million; and (x) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 3,471 million that expire in 2050, for which we have recorded a net fair value asset of Ps. 1,714 million. As of December 31, 2023, we had (i) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 954 million that expired in 2024, for which we have recorded a net fair value asset of Ps. 68 million; (ii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 49,834 million that expire in 2025, for which we have recorded a net fair value asset of Ps. 118 million; (iii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 6,045 million that expire in 2026, for which we have recorded a net fair value liability of Ps. 919 million; (iv) cross currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 8,949 million that expire in 2027, for which we have recorded a net fair value liability of Ps. 1,382 million; (v) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 6,009 million that expire in 2028, for which we have recorded a net fair value asset of Ps. 89 million; (vi) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 20 million that expire in 2029, for which we have recorded a net fair value asset of Ps. 337 million; (vii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 13,633 million that expire in 2030, for which we have recorded a net fair value liability of Ps. 803 million; (viii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 845 million that expire in 2032, for which we have recorded a net fair value liability of Ps. 51 million; (ix) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 4,931 million that expire in 2033, for which we have recorded a net fair value asset of Ps. 117 million; (x) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 10,000 million that expire in 2035, for which we have recorded a net fair value liability of Ps. 3,809 million; (xi) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 5,398 million that expire in 2043, for which we have recorded a net fair value asset of Ps. 1,877 million; and (xii) cross-currency swaps designated as fair value hedges under contracts with an aggregate notional amount of Ps. 3,471 million that expire in 2050, for which we have recorded a net fair value asset of Ps. 1,235 million. Certain cross-currency swap instruments did not meet the hedging criteria for accounting purposes. For the years ended December 31, 2025, 2024 and 2023 changes in the estimated fair value were recorded in the income statement. The changes in fair value of these contracts represented a gain of Ps. 185 million, Ps. 938 million and Ps. 141 million in 2025, 2024, and 2023, respectively. A hypothetical, instantaneous and unfavorable 10% devaluation of the Mexican peso relative to the U.S. dollar occurring on December 31, 2025 would result in a foreign exchange gain increasing our consolidated net income by approximately Ps. 4,336 million over the 12-month period of 2025, reflecting greater foreign exchange loss related to our U.S. dollar denominated indebtedness, net of a gain in the cash balances held by us in U.S. dollars and euros. 123 As of April 17, 2026, the exchange rates relative to the U.S. dollar of all the countries where we have operations, as well as their depreciation/appreciation effect compared to December 31, 2025, were as follows: Exchange Rate as of April 17, (Depreciation) / Country Currency 2026 Appreciation Mexico Mexican peso 17.2723 3.9 % Brazil Brazilian reais 4.97 9.7 % Colombia Colombian peso 3,615.10 3.8 % Argentina Argentine peso 1,364.50 6.2 % Costa Rica Colon 459.59 8.3 % Guatemala Quetzal 7.64 0.3 % Nicaragua Cordoba 36.62 — Panama U.S. dollar 1.00 — Euro Zone Euro 0.85 0.2 % Peru Nuevo sol 3.44 (2.0) % Chile Chilean peso 886.32 2.3 % Uruguay Uruguayan peso 39.61 (1.5) % A hypothetical, instantaneous and unfavorable 10% devaluation in the value of the currencies in each of the countries where we have operations, relative to the U.S. dollar, occurring on December 31, 2025, would produce a reduction (or gain) in stockholders’ equity as follows: Reduction in Country Currency Stockholders’ Equity (in millions of Mexican pesos) Mexico Mexican peso 4,336 Brazil Brazilian reais 2,979 Colombia Colombian peso 1,351 Costa Rica Colon 490 Argentina Argentine peso 380 Guatemala Quetzal 167 Nicaragua Cordoba 156 Panama U.S. dollar 338 Peru Nuevo sol 13 Chile Chilean peso 2,113 Uruguay Uruguayan peso 241 Ecuador U.S. dollar 57 Euro Zone Euro 386 U.S.A. U.S. dollar 4,388 Equity Risk As of December 31, 2025 and 2024, we did not have any equity derivative agreements that exposed us to equity risk. In May 2025 and December 2025, we entered into accelerated share repurchase (“ASR”) agreements with financial institutions in the U.S. to repurchase certain of our shares through the acquisition of ADSs. See “Item 16E. Purchases of Equity Securities by Issuer and Affiliated Purchasers.” 124 Commodity Price Risk We entered into various derivative contracts to hedge the cost of certain raw materials that are exposed to variations of commodity price exchange rates. As of December 31, 2025, we had various derivative instruments contracts with maturity dates in 2026 and 2027, notional amounts of Ps. 5,376 million and a net fair value liability of Ps. 320 million. The results of our commodity price contracts expired for the years ended December 31, 2025, 2024 and 2023 were a loss of Ps. 231 million, a gain of Ps. 15 million and a loss of Ps. 430 million, respectively, which were recorded in the results of each year.