Cemex 2012 Annual Report Download - page 85

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Notes to the
consolidated
financial
statements
85
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16C) Fair value of financial instruments
Financial assets and liabilities
CEMEX’s carrying amounts of cash, trade accounts receivable, other accounts receivable, trade accounts payable, other accounts
payable and accrued expenses, as well as short-term debt, approximate their corresponding estimated fair values due to the
short-term maturity and revolving nature of these financial assets and liabilities. Temporary investments (cash equivalents) and
certain long-term investments are recognized at fair value, considering to the extent available, quoted market prices for the same
or similar instruments. The estimated fair value of long-term debt is either based on estimated market prices for such or similar
instruments, considering interest rates currently available for CEMEX to negotiate debt with the same maturities, or determined
by discounting future cash flows using market-based interest rates currently available to CEMEX. As of December 31, 2012 and
2011, the carrying amounts of financial assets and liabilities and their respective fair values were as follows:
2012 2011
Carrying Carrying
amount Fair value amount Fair value
Financial assets
Derivative instruments (note 13B) $ 4,279 4,279 $ 1,787 1,793
Other investments and non-current accounts receivable (note 13B) 4,321 4,121 8,808 8,453
$ 8,600 8,400 $ 10,595 10,246
Financial liabilities
Long-term debt (note 16A) $ 177,539 188,128 203,798 176,867
Other financial obligations (note 16B) 32,913 42,651 33,190 28,788
Derivative instruments (notes 16D and 17) 5,451 5,451 998 998
$ 215,903 236,230 $ 237,986 206,653
Fair Value Hierarchy
As mentioned in note 2A, CEMEX applies IFRS 13 for fair value measurements of financial assets and financial liabilities recognized
or disclosed at fair value. Assets and liabilities carried at fair value in the consolidated balance sheets as of December 31, 2012
and 2011, are included in the following fair value hierarchy categories:
2012 Level 1 Level 2 Level 3 Total
Assets measured at fair value
Derivative instruments (note 13B) $ – 4,279 – 4,279
Investments available-for-sale (note 13B) 211 – – 211
Investments held for trading (note 13B) – 366 – 366
$ 211 4,645 – 4,856
Liabilities measured at fair value
Derivative instruments (note 16D and 17) $ – 5,451 – 5,451
2011 Level 1 Level 2 Level 3 Total
Assets measured at fair value
Derivative instruments (note 13B) $ – 1,793 – 1,793
Investments available-for-sale (note 13B) 2,572 – – 2,572
Investments held for trading (note 13B) – 310 – 310
$ 2,572 2,103 – 4,675
Liabilities measured at fair value
Derivative instruments (note 16D and 17) $ – 998 – 998