Cemex 2012 Annual Report Download - page 64

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Notes to the
consolidated
financial
statements
64
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7) Other nancial (expenses) income, net
Other financial (expenses) income, net in 2012, 2011 and 2010, is detailed as follows:
2012 2011 2010
Financial income $ 620 489 483
Results from financial instruments, net (notes 13B and 16D) 178 (76) (1,103)
Foreign exchange results 1,142 (1,919) 895
Effects of net present value on assets and liabilities and others, net (963) (708) (798)
$ 977 (2,214) (523)
8) Cash and cash equivalents
As of December 31, 2012 and 2011, consolidated cash and cash equivalents consisted of:
2012 2011
Cash and bank accounts $ 7,581 6,123
Fixed-income securities and other cash equivalents 1 4,897 10,005
$ 12,478 16,128
1 As of December 31, 2011, this caption included approximately $4,103 relating to the reserve for the Mexican promissory notes (“Certicados
Bursátiles” or “CBs”) (note 16A). As of December 31, 2012 and 2011, this caption included restricted deposits related to insurance contracts of
approximately $239 and $425, respectively.
Based on net settlement agreements, the balance of cash and cash equivalents excludes deposits in margin accounts that
guarantee several obligations of CEMEX of approximately $1,782 in 2012 and $4,010 in 2011, which were offset against
the corresponding obligations of CEMEX with the counterparties, considering CEMEX’s right, ability and intention to settle the
amounts on a net basis.
9) Trade accounts receivable
As of December 31, 2012 and 2011, consolidated trade accounts receivable consisted of:
2012 2011
Trade accounts receivable $ 25,464 28,376
Allowances for doubtful accounts (1,766) (2,171)
$ 23,698 26,205
As of December 31, 2012 and 2011, trade accounts receivable include receivables of $10,792 (US$840) and $12,733 (US$912),
respectively, that were sold under outstanding securitization programs for the sale of trade accounts receivable and/or factoring
programs with recourse in Mexico, the United States, France and the United Kingdom. In October 2012, CEMEX terminated its
program in Spain. Under the securitization programs, CEMEX effectively surrenders control associated with the trade accounts
receivable sold and there is no guarantee or obligation to reacquire the assets. However, CEMEX retains certain residual interest
in the programs and/or maintains continuing involvement with the accounts receivable; therefore, the amounts received are
recognized within “Other financial obligations.” Trade accounts receivable qualifying for sale exclude amounts over certain days
past due or concentrations over certain limits to any one customer, according to the terms of the programs. The portion of the
accounts receivable sold maintained as reserves amounted to $2,280 in 2012 and $3,181 in 2011. Therefore, the funded
amount to CEMEX was $8,512 (US$662) in 2012 and $9,552 (US$684) in 2011. The discount granted to the acquirers of the
trade accounts receivable is recorded as financial expense and amounted to approximately $368 (US$28) in 2012, $390 (US$31)
in 2011 and $368 (US$29) in 2010. CEMEX’s securitization programs are negotiated for specific periods and may be renewed
at their maturity. The securitization programs outstanding as of December 31, 2012 in Mexico, the United States, France and
the United Kingdom, were initiated or renewed during 2011 and mature in October 2015, May 2013, March 2013 and March
2013, respectively.