Cemex 2009 Annual Report Download - page 51

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The following table presents condensed income statement information of the discontinued operations of CEMEX Australia for the nine-month period ended
September 30, 2009, as well as the twelve-month and six-month periods ended December 31, 2008 and 2007, respectively:
2009 2008 2007
Sales $ 13,015 17,536 8,517
Cost of sales and operating expenses (11,817) (15,740) (7,679)
Operating income 1,198 1,796 838
Other expenses, net (87) (92) (297)
Comprehensive financial result (179) (399) 69
Equity in income of associates 208 229 –
Income before income tax 1,140 1,534 610
Income tax 512 563 (322)
Net income $ 1,652 2,097 288
Depreciation $ 631 856 330
Amortization $ 256 309 159
Capital expenditures $ 128 737 336
5. CASH AND INVESTMENTS
As of December 31, 2009 and 2008, consolidated cash and investments consisted of:
2009 2008
Cash and bank accounts $ 11,295 10,336
Fixed-income securities 2,783 1,962
Investments in marketable securities 26 602
$ 14,104 12,900
The balance of cash and investments excludes amounts deposited in margin accounts that guarantee several obligations of CEMEX for approximately
$3,962 in 2009 and $10,484 in 2008, of which approximately $2,553 in 2009 and the total amount in 2008, associated with derivative financial instruments,
were offset against the liabilities of CEMEX with its counterparties.
6. TRADE ACCOUNTS RECEIVABLE
As of December 31, 2009 and 2008, consolidated trade accounts receivable consisted of:
2009 2008
Trade accounts receivable $ 15,954 18,182
Allowances for doubtful accounts (2,571) (2,261)
$ 13,383 15,921
As of December 31, 2009 and 2008, trade receivables exclude trade accounts receivable of $9,624 (US$735) and $14,667 (US$1,068), respectively, that
were sold to financial institutions under securitization programs for the sale of trade receivables, established in Mexico, the United States, Spain and
France. Under these programs, CEMEX effectively surrenders control associated with the trade receivables sold and there is no guarantee or obligation to
reacquire the assets; therefore, the amount of receivables sold is removed from the balance sheet at the moment of sale, except for the amounts owed by the
counterparties, which are reclassified to other short-term accounts receivable. Trade receivables qualifying for sale do not include amounts over certain days
past due or concentrations over certain limits to any one customer, according to the terms of the programs. The discount granted to the acquirers of the trade
receivables is recognized as financial expense and amounted to approximately $645 (US$47) in 2009, $656 (US$58) in 2008 and $673 (US$62) in 2007.
During June and July 2009, CEMEX renewed its expiring prior securitization programs for the sale of trade receivables in Mexico and the United States.
The new programs mature in December 2011 in Mexico and June 2010 in the United States. In addition, in June 2009, CEMEX extended its securitization
program in France until May 2010.
Allowances for doubtful accounts are established according to the credit history and risk profile of each customer. Changes in the valuation allowance for
doubtful accounts in 2009, 2008 and 2007, were as follows:
2009 2008 2007
Allowances for doubtful accounts at beginning of period $ 2,261 1,991 1,526
Charged to selling expenses 777 602 384
Deductions (454) (523) (69)
Business combinations – 63 173
Foreign currency translation and inflation (13) 128 (23)
Allowances for doubtful accounts at end of period $ 2,571 2,261 1,991
7. OTHER ACCOUNTS RECEIVABLE
As of December 31, 2009 and 2008, consolidated other accounts receivable consisted of:
2009 2008
Non-trade accounts receivable $ 3,650 4,470
Current portion of valuation of derivative instruments 1,259 2,650
Interest and notes receivable 3,700 1,253
Loans to employees and others 375 629
Refundable taxes 356 535
$ 9,340 9,537