Cemex 1999 Annual Report Download - page 56

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4.- OTHER RECEIVABLES
Other current receivables consist of:
1999 1998
CONSOLIDATED PARENT CONSOLIDATED PARENT
Non-trade receivables $ 1,537,471 20,985 1,284,647 13,029
Refundable income tax 388,226 — 635,239 591,321
Other refundable taxes 309,795 — 170,571 28,308
$ 2,235,492 20,985 2,090,457 632,658
As of December 31, 1999 and 1998, non trade receivables consisted primarily of interest receivable, notes receivable,
advances to employees for travel expenses, loans made to employees and receivable from the sale of assets.
5.- INVENTORIES
Inventories are summarized as follows:
CONSOLIDATED
1999 1998
Finished goods $ 744,626 998,663
Work-in-process 586,471 485,695
Raw materials 514,152 509,160
Supplies and spare parts 2,754,377 1,988,828
Advances to suppliers 418,411 170,409
Inventory in transit 117,815 31,087
Real estate held for sale 148,570 189,117
$ 5,284,422 4,372,959
As of December 31, 1999 and 1998, real estate held for sale corresponds to undeveloped land in different tourist
locations in Mexico, originally acquired by the Company for future tourism projects. Currently, this real estate is held
for sale in the short-term. In accordance to the Fifth Amendment to Bulletin B-10, until December 31, 1996,
independent appraisers determined the amounts, which represented their estimated realizable value. Beginning in
1997, such amounts have been restated using the inflation factors arising from the NCPI.
6.- OTHER CURRENT ASSETS
Other current assets include $128,774 and $473,330, as of December 31, 1999 and 1998, respectively, of non-cement
related assets which are intended to be sold in the short-term, and that are stated at their estimated realizable value.
These assets include securities and assets for lines of business other than the Company’s, which are mainly originated
from (i) non-cement related assets acquired in the acquisition of our international subsidiaries, and (ii) assets held for
sale including land and buildings received from customers as payment of trade receivables.
As of December 31, 1998, within non-cement related assets acquired as part of the acquisition of subsidiaries, were
included approximately $420.8 million for an uncompleted real estate project in Spain. During 1999, the Company
sold part of this asset in Spain, recording a net result of approximately $(160) million in the caption Other Expenses,
net. Additionally, as of December 31, 1999, the Company recognized an impairment allowance related to this asset
for approximately $37.5 million in the income statement. The fair value of the remaining non-cement assets in Spain
as of December 31, 1999 is approximately $28.5 million and was reclassified to fixed assets.
7.- INVESTMENTS AND NON CURRENT RECEIVABLES
Investments in shares of subsidiaries and affiliated companies are accounted for by the equity method, which
considers the results of operation and the stockholders’ equity of the investee’s. Investment in subsidiaries and
affiliated companies are summarized as follows:
1999 1998
CONSOLIDATED PARENT CONSOLIDATED PARENT
Contribution or book value
at acquisition date $ 4,261,284 27,910,116 2,464,092 35,015,884
Equity in income and other
changes in stockholders’
equity of subsidiaries and
affiliated companies 1,584,953 16,537,758 1,345,812 35,977,045
$ 5,846,237 44,447,874 3,809,904 70,992,929