Cemex 2012 Annual Report Download - page 147

Notes to the
financial
statements
147
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As of December 31, 2012 the CEMEX, S.A.B. de C.V.’s parent company-only tax loss carryforwards by expiration date are the
following:
Balance Expiration
Period of occurrence of the loss carryforward year
2003 654 2013
2004 57 2014
2005 403 2015
2006 1,187 2016
2007 and thereafter 43,940 –
$ 46,241
In November 2009, Mexico approved amendments to the income tax law, which became effective on January 1, 2010. Such
amendments modified the tax consolidation regime by requiring entities to determine income taxes as if the tax consolidation
provisions did not exist from 1999 onward, specifically turning into taxable items: a) the difference between the sum of the
equity of the controlled entities for tax purposes and the equity of the consolidated entity for tax purposes; b) dividends from
the controlled entities for tax purposes to CEMEX, S.A.B. de C.V.; and c) other transactions that represented the transfer of
resources between the companies included in the tax consolidation. In connection with these changes to the tax consolidation
regime, as of December 31, 2009, CEMEX, S.A.B. de C.V. had accrued an aggregate liability of $10,461, of which: i) $8,216
had been recognized against “Other non-current assets” before the new tax law became effective, assets which, CEMEX S.A.B.
de C.V. expects to recover through the payment of the related tax liability; and ii) $2,245 was recognized in December 2009, in
connection with the amendments to the income tax law mentioned above. In December 2010, pursuant to miscellaneous rules,
the tax authority in Mexico granted the option to defer the calculation and payment of the income tax over the difference in equity
explained above, until the subsidiary is disposed of or CEMEX S.A.B. de C.V. eliminates the tax consolidation. As a result, CEMEX
S.A.B. de C.V. reduced its estimated tax payable by approximately $2,911 against a credit to income taxes for the period in the
statements of operations. Tax liabilities associated with the tax loss carryforwards used in the tax consolidation of the Mexican
subsidiaries are not offset with deferred tax assets in the balance sheet. The realization of these tax assets is subject to the
generation of future tax earnings in the controlled subsidiaries that generated the tax loss carryforwards in the past.
The realization of these tax assets is subject to the generation of future tax earnings in the controlled subsidiaries that generated
the tax loss carryforwards in the past. Changes in CEMEX, S.A.B. de C.V.’s tax payable associated with the tax consolidation in
Mexico in 2012, 2011 and 2010 were as follows:
2012 2011 2010
Balance at the beginning of the year $ 12,410 10,079 10,461
Income tax received from subsidiaries 2,089 2,352 2,496
Restatement for the period 745 485 358
Payments during the period (698) (506) (325)
Effects associated with miscellaneous rules – – (2,911)
Balance at the end of the year $ 14,546 12,410 10,079
As of December 31, 2012, the estimated amortization of liabilities for taxes payable resulting from the changes in tax consolidation
in Mexico is as follows:
2012
2013 $ 2,020
2014 2,566
2015 2,681
2016 2,219
2017 2,256
2018 and thereafter 2,804
$ 14,546
CEMEX, S.A.B. de C.V. and its Mexican subsidiaries generated Income Tax (“IT”) in a consolidated manner. Therefore, the amounts
recognized in the parent company-only financial statements for the years ended December 31, 2012, 2011 and 2010 include
the effect of this consolidation.