Cemex 1999 Annual Report Download - page 67

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resulting from comparing the book and taxable value of the assets and liabilities, applying when available the tax loss
carryforwards, as well as the BAT balances or other tax credits to be recovered. Likewise, it is required to determine
the effect of deferred ESPS for those temporary differences arising from the reconciliation of the net income of the
period and the taxable income for ESPS, of a non-recurring nature.
The provisions of Bulletin D-4 are mandatory starting January 1, 2000. The beginning net accumulated effect from
deferred income tax derived from the adoption of the Bulletin, must be recognized in the financial statements affecting
the stockholders’ equity in the account named “Accumulated Effect of Income Tax”.
So far, the Company is in the process of determining the final effect that Bulletin D-4 will generate on the financial
statements once the adoption becomes effective in the year 2000, for such purpose, an estimated consolidated
calculation was determined, which can be representative of the position as of December 31, 1999. Through this
calculation, the Company estimated that due to the adoption of the new Bulletin D-4, it would be necessary to
recognize an additional deferred income tax liability for an approximate amount of $3,799 million. Such additional
liability would be recorded against stockholders’ equity.
17.- FOREIGN CURRENCY POSITION
The exchange rate of the Mexican peso to the U.S. dollar as of December 31, 1999, 1998 and 1997 was $9.51, $9.90
and $8.07 pesos per dollar, respectively. As of January 17, 2000, the exchange rate was $9.43 pesos per dollar.
As of December 31, 1999 and for the year then ended, the principal balances denominated in foreign currencies, as
well as non-monetary assets in Mexico of foreign origin are presented as follows:
THOUSANDS OF U.S. DOLLARS
MEXICO FOREIGN TOTAL
Current assets 123,376 939,677 1,063,053
Non-current assets 693,858 (1) 5,840,472 6,534,330
Total assets 817,234 6,780,149 7,597,383
Current liabilities 804,253 856,126 1,660,379
Long-term liabilities 1,848,675 1,641,939 3,490,614
Total liabilities 2,652,928 2,498,065 5,150,993
(1) Non-monetary assets in Mexico of foreign origin.
Additionally, the Mexican operations in foreign currencies during 1999, 1998 and 1997, are summarized as follows:
THOUSANDS OF U.S. DOLLARS
1999 1998 1997
Export sales 83,190 92,170 131,773
Import purchases 29,954 36,563 43,452
Interest income 14,575 24,035 12,652
Interest expense 221,057 202,748 225,300
18.- GEOGRAPHIC SEGMENT DATA
The Company is engaged principally in one industry segment which is the construction industry through the
production and marketing of cement and concrete. The following table presents information about the Company by
geographic area for 1999, 1998 and 1997:
OPERATING
NET SALES INCOME
1999 1998 1997 1999 1998 1997
Mexico $ 22,177,707 19,320,749 17,463,315 9,821,679 7,805,839 5,179,121
Spain 7,335,325 8,909,898 7,441,683 2,387,015 2,423,426 1,602,176
Venezuela 4,570,566 5,173,018 4,700,165 1,247,517 1,736,383 1,627,505
United States 5,677,615 5,357,583 4,483,937 1,172,163 752,845 284,606
Colombia 1,598,998 2,612,383 3,765,344 378,761 110,679 831,747
Caribbean and Central-America 3,509,134 2,616,834 2,361,719 642,088 438,509 608,304
Philippines 1,164,474 — — 23,879 — —
Egypt 137,686 — — 15,392 — —
Others 3,700,630 2,745,770 3,070,832 (2,027,431) (1,594,716) (1,034,441)
49,872,135 46,736,235 43,286,995 13,661,063 11,672,965 9,099,018
Eliminations (3,958,189) (3,968,795) (4,780,557) — — —
Consolidated $ 45,913,946 42,767,440 38,506,438 13,661,063 11,672,965 9,099,018