Cemex 2012 Annual Report Download - page 67

Notes to the
consolidated
financial
statements
67
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Combined condensed balance sheet information of CEMEX’s associates as of December 31, 2012 and 2011 is set forth below:
2012 2011
Current assets $ 14,302 15,728
Non-current assets 38,533 42,196
Total assets 52,835 57,924
Current liabilities 7,546 7,912
Non-current liabilities 17,420 21,190
Total liabilities 24,966 29,102
Total net assets $ 27,869 28,822
Combined selected information of the statements of operations of CEMEX’s associates in 2012, 2011 and 2010 is set forth
below:
2012 2011 2010
Sales $ 11,693 15,736 18,798
Operating earnings 1,160 1,118 1,233
Income (loss) before income tax 531 (846) 608
Net income (loss) 517 (402) 444
13B) Other investments and non-current accounts receivable
As of December 31, 2012 and 2011, consolidated other investments and non-current accounts receivable were summarized as
follows:
2012 2011
Non-current portion of valuation of derivative financial instruments $ 4,279 1,787
Non-current accounts receivable and other investments 1 3,744 5,926
Investments available-for-sale 2 211 2,572
Investments held for trading 3 366 310
$ 8,600 10,595
1 Includes, among other items: a) advances to suppliers of fixed assets of approximately $86 in 2012 and $216 in 2011; and b) a restricted
investment used to pay coupons under the perpetual debentures (note 20D), of approximately $490 in 2012 and $632 in 2011. CEMEX recognized
impairment losses of non-current accounts receivable in the United States of approximately $90 in 2012, in the Caribbean and in the United States
of approximately $167 in 2011 and in the United States of approximately $129 in 2010 (note 6).
2 This line item includes: a) an investment in CPOs of Axtel, S.A.B. de C.V. (“Axtel”) of approximately $211 in 2012 and $59 in 2011; and b)
notes issued by Petróleos de Venezuela, S.A. (“PDVSA”) with a notional amount of approximately US$203 ($2,834) in 2011 and a fair value of
approximately US$180 ($2,513). During 2012 and 2011, changes in valuation of these investments generated losses of approximately $102
and $93, respectively, recognized as part of other comprehensive loss within other equity reserves. In 2012, upon disposal of the PDVSA notes,
CEMEX recognized a net gain of approximately $169 as part of other financial (expense) income, net, including the effects recognized within other
comprehensive income in prior years
3 This line item refers to investments in private funds. In 2012 and 2011, no contributions were made to such private funds.
Nationalization of CEMEX Venezuela
In connection with the expropriation in 2008 of all businesses, assets and shares of CEMEX in Venezuela by the Government
of Venezuela, and after an international arbitration process with the International Centre for Settlement of Investment Disputes
(“ICSID”), on December 13, 2011, CEMEX and the Government of Venezuela concluded a settlement agreement pursuant to
which CEMEX received compensation for the expropriation of CEMEX Venezuela and administrative services provided after the
expropriation in the form of: (i) a cash payment of US$240; and (ii) notes issued by PDVSA, with nominal value and interest
income to maturity totaling approximately US$360. Additionally, as part of the settlement, all intercompany payments due from
or to CEMEX Venezuela to and from CEMEX were cancelled, resulting in the cancellation for CEMEX of accounts payable, net of
approximately US$154. Pursuant to this settlement agreement, CEMEX and the Government of Venezuela agreed to withdraw
the ICSID arbitration as well as other then outstanding legal proceedings. As a result of this settlement, CEMEX cancelled the book
value of its net assets in Venezuela of approximately US$503 and recognized a settlement gain in the statement of operations
for 2011 of approximately US$25, recognized within other expenses, net, which includes the write-off of the currency translation
effects accrued in equity.