Cemex 2012 Annual Report Download - page 93

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Notes to the
consolidated
financial
statements
93
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As of December 31, 2012 and 2011, plan assets were measured at their estimated fair value and consisted of:
2012 2011
Cash $ 1,353 642
Investments in corporate bonds 3,619 3,354
Investments in government bonds 7,859 9,650
Total fixed-income securities 12,831 13,646
Investment in marketable securities 5,651 4,936
Other investments and private funds 3,232 3,470
Total variable-income securities 8,883 8,406
Total plan assets $ 21,714 22,052
As of December 31, 2012 and 2011, based on the hierarchy of fair values established in IFRS 13 (note 16C), investments in plan
assets are summarized as follows:
2012 2011
(Millions of pesos) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Cash 1,353 – – 1,353 319 13 310 642
Investments in corporate bonds 2,685 934 – 3,619 2,508 846 – 3,354
Investments in government bonds 7,859 – – 7,859 9,273 377 – 9,650
Total fixed-income securities 11,897 934 – 12,831 12,100 1,236 310 13,646
Investment in marketable securities 4,550 1,102 – 5,652 3,816 1,120 – 4,936
Other investments and private funds 1,362 1,869 – 3,231 1,539 1,931 – 3,470
Total variable-income securities 5,912 2,971 – 8,883 5,355 3,051 – 8,406
Total plan assets 17,809 3,905 – 21,714 17,455 4,287 310 22,052
As of December 31, 2012, estimated payments for pensions and other postretirement benefits over the next ten years were as
follows:
2012
2013 $ 1,985
2014 1,931
2015 1,940
2016 1,999
2017 2,037
2018 – 2022 11,344
The most significant assumptions used in the determination of the net periodic cost were as follows:
2012 2011
United United Range of rates in United United Range of rates in
Mexico States Kingdom other countries Mexico States Kingdom other countries
Discount rates 8.0% 5.2% 5.0% 4.2% - 8.5% 8.0% 5.5% 5.3% 4.2% - 9.5%
Rate of return on plan assets 9.0% 7.5% 5.6% 3.0% - 9.0% 9.0% 7.5% 6.5% 3.0% - 9.0%
Rate of salary increases 4.0% – 3.2% 2.5% - 5.0% 4.5% – 3.4% 2.3% - 4.9%
As of December 31, 2012 and 2011, the aggregate projected benefit obligation (“PBO”) for pension plans and other postretirement
benefits and the plan assets by country were as follows:
2012 2011
PBO Assets Decit PBO Assets Decit
Mexico $ 3,595 574 3,021 3,320 269 3,051
United States 5,148 3,106 2,042 5,177 3,426 1,751
United Kingdom 20,162 16,812 3,350 23,039 17,053 5,986
Germany 3,479 272 3,207 3,267 304 2,963
Other countries 2,785 950 1,835 2,544 1,000 1,544
$ 35,169 21,714 13,455 37,347 22,052 15,295