Cemex 1997 Annual Report Download - page 70

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64
The principal transactions carried out with related parties are the following:
Parent Company
1997 1996
Rental income $ 114,796 106,440
License fees 315,546 194,679
Financial expenses (787,506) (801,606)
Financial income 356,848 896,752
Dividends from subsidiaries 578,479 ——-
11.- PENSION PLANS AND SENIORITY PREMIUM
The net periodic pension cost of the pension and seniority premium plans mentioned in note 2K was determined
based on computations prepared by independent actuaries as of December 31, 1997 and 1996. Pension and
seniority premium expense for 1997 and 1996 was $109,450 and $183,065, respectively.
The actuarial present value of benefit obligations and the funded status of the plans as of December 31, 1997 and
1996, are as follows:
1997 1996
Present benefit obligations $ 480,503 575,287
Excess (deficit) of projected benefit obligations over
present benefit obligations (21,701) 122,851
Projected benefit obligations 458,802 698,138
Plan assets at fair value (51,381) (42,981)
Deficit in plan assets 407,421 655,157
Unrealized net transition asset 24,005 26,501
Net pension liability recognized in the consolidated balance sheets $ 431,426 681,658
The most significant assumptions used in the determination of the net periodic cost were the following:
1997 1996
Range of discount rates for plans 4.5% - 5.5% 6% - 25%
Rate of return on plan assets 7% 15%
12.- STOCKHOLDERS' EQUITY
A) CAPITAL STOCK
Capital stock of the Company as of December 31, 1997, is as follows:
Series A (1) Series B (2)
Subscribed and paid shares 979,695,687 434,802,023
Share repurchase program 3,497,000 1,807,000
Treasury shares 9,216,905 ———
Trust subscribed shares without value ——— 69,853,477
992,409,592 506,462,500
Of the total shares, 1,089,000,000 correspond to the fixed portion and 409,872,092 correspond to the variable
portion.
(1) Series “A” or Mexican shares represent at least 64% of capital stock.
(2) Series “B” or free subscription shares represent, at the maximum, 36% of capital stock.