Cemex 2009 Annual Report Download - page 52

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50
Non-trade accounts receivable are mainly attributable to the sale of assets. The caption “Interests and notes receivable” include $3,083 in 2009 and $1,057
in 2008, arising from uncollected trade receivables sold under securitization programs (note 6), and $235 in 2009 arising from the settlement of derivative
instruments related to perpetual debentures issued by CEMEX (notes 13C and 17D).
8. INVENTORIES
As of December 31, 2009 and 2008, consolidated balances of inventories are summarized as follows:
2009 2008
Finished goods $ 5,168 6,828
Work-in-process 3,207 3,718
Raw materials 3,005 3,711
Materials and spare parts 5,729 6,391
Advances to suppliers 331 676
Inventory in transit 233 429
Allowance for obsolescence (482) (538)
$ 17,191 21,215
CEMEX recognized inventory impairment losses of approximately $91 in 2009, $81 in 2008 and $131 in 2007.
9. OTHER CURRENT ASSETS
As of December 31, 2009 and 2008, consolidated other current assets consisted of:
2009 2008
Advance payments $ 1,497 1,416
Assets held for sale 1,255 2,534
$ 2,752 3,950
Assets held for sale are stated at their estimated realizable value and include real state properties received in payment of trade receivables. During 2009,
CEMEX recognized impairment losses in connection with assets held for sale in the United States for approximately $253.
10. INVESTMENTS IN ASSOCIATES AND OTHER INVESTMENTS AND NON-CURRENT ACCOUNTS RECEIVABLE
10A) Investments in associates
As of December 31, 2009 and 2008, consolidated investments in shares of associates are summarized as follows:
2009 2008
Book value at acquisition date $ 5,179 5,764
Changes in stockholders’ equity since acquisition 5,934 6,129
$ 11,113 11,893
As of December 31, 2009 and 2008, investments in shares of associates were as follows:
Activity Country % 2009 2008
Control Administrativo Mexicano, S.A. de C.V. Cement Mexico 49.0 $ 4,491 4,439
Ready Mix USA, LLC Concrete United States 49.9 2,194 2,586
Trinidad Cement Ltd Cement Trinidad 20.0 591 660
Cancem, S.A. de C.V. Cement Mexico 10.3 478 480
Société Méridionale de Carrières Aggregates France 33.3 331 320
Société d’Exploitation de Carrières Aggregates France 50.0 227 254
ABC Capital S.A. de C.V.S.F.O.M. Financing Mexico 49.0 301 221
Société des Ciments Antillais Cement French Antilles 26.1 173 231
Huttig Building Products Inc. Materials United States 28.1 98 228
Lehigh White Cement Company Cement United States 24.5 214 224
Other companies – – – 2,015 2,250
$ 11,113 11,893
In 2005, CEMEX, Inc., the Company’s subsidiary in the United States, and Ready Mix USA, Inc., a ready-mix concrete producer in the southeastern United
States, established two limited liability companies, CEMEX Southeast, LLC and Ready Mix USA, LLC. Pursuant to the relevant agreements, CEMEX
contributed to CEMEX Southeast, LLC the cement plants in Demopolis, AL and Clinchfield, GA and 11 cement terminals, representing approximately 98%
of the contributed capital, while Ready Mix USA’s contributions represented approximately 2% of the contributed capital. To Ready Mix USA, LLC, CEMEX
contributed ready-mix concrete, aggregates and concrete block plants in Florida and Georgia, representing approximately 9% of the contributed capital, while
Ready Mix USA contributed all of its ready-mix concrete and aggregates operations in Alabama, Georgia, the Panhandle region in Florida and Tennessee,
as well as its concrete block plants in Arkansas, Tennessee, Mississippi, Florida and Alabama, representing approximately 91% of the contributed capital.
CEMEX owns a 50.01% interest, and Ready Mix USA owns a 49.99% interest, in the profits and losses and voting rights of CEMEX Southeast, LLC; whereas
Ready Mix USA owns a 50.01% interest and CEMEX owns a 49.99% interest, in the profits and losses and voting rights of Ready Mix USA, LLC. CEMEX has
control and fully consolidates CEMEX Southeast, LLC. CEMEX’s interest in Ready Mix USA, LLC is accounted for by the equity method.
In January 2008, in connection with the assets acquired from Rinker and as part of the agreements with Ready Mix USA, CEMEX contributed and sold
to Ready Mix USA, LLC certain assets located in the sites of Georgia, Tennessee and Virginia, at a fair value of approximately US$437, receiving an
established value of US$380, which included the value of the contribution of US$260 and the value of the sale of US$120 received in cash. As part of the
same transaction, Ready Mix USA contributed US$125 in cash to Ready Mix USA, LLC which, in turn, received bank loans of US$135 and made a special
distribution to CEMEX in cash of US$135. Ready Mix USA manages all the assets acquired. Following this transaction, Ready Mix USA, LLC continues to
be owned 50.01% by Ready Mix USA and 49.99% by CEMEX. The difference between the fair value and the established value of approximately US$57 is
included within investment in associates.