Cemex 2012 Annual Report Download - page 96

Notes to the
consolidated
financial
statements
96
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19B) Deferred income taxes
As of December 31, 2012 and 2011, the main temporary differences that generated the consolidated deferred income tax assets
and liabilities are presented below:
2012 2011
Deferred tax assets:
Tax loss carryforwards and other tax credits $ 16,118 34,826
Accounts payable and accrued expenses 11,734 9,643
Intangible assets and deferred charges, net 9,786 14,992
Others 177 534
Net deferred tax assets 37,815 59,995
Deferred tax liabilities:
Property, machinery and equipment (33,672) (41,165)
Investments and other assets (3,531) (2,469)
Others (426) (3,366)
Total deferred tax liabilities (37,629) (47,000)
Net deferred tax asset $ 186 12,995
The breakdown of changes in consolidated deferred income taxes during 2012, 2011 and 2010 were as follows:
2012 2011 2010
Deferred income tax (charged) credited to the statements of operations 1 $ (12,299) 2,129 2,628
Deferred income tax (charged) credited to stockholders’ equity (515) 159 1,467
Reclassification to other captions in the balance sheet 5 (801) (1,631)
Change in deferred income tax for the period $ (12,809) 1,487 2,464
1 Considering current estimates of future taxable income in Spain and due to changes in the applicable regulations, during 2012, CEMEX reduced its
deferred tax assets associated with tax loss carryforwards by approximately $17,018, against the deferred income tax expense for the period.
Current and/or deferred income tax relative to items of other comprehensive loss during 2012, 2011 and 2010 were as follows:
2012 2011 2010
Tax effects relative to foreign exchange fluctuations from debt (note 20B) $ (2,082) 3,391 (566)
Tax effects relative to foreign exchange fluctuations from intercompany balances (note 20B) (724) 1,424 5,449
Tax effects relative to actuarial (losses) gains (note 20B) 318 343 392
Other effects (833) (184) 1,075
$ (3,321) 4,974 6,350
For the recognition of deferred tax assets, CEMEX analyzes the aggregate amount of self-determined tax loss carryforwards
included in its income tax returns in each country where CEMEX believes, based on available evidence, that the tax authorities
would not reject such tax loss carryforwards; and the likelihood of the recoverability of such tax loss carryforwards prior to their
expiration through an analysis of estimated future taxable income. If CEMEX believes that it is probable that the tax authorities
would reject a self-determined deferred tax asset, it would decrease such asset. Likewise, if CEMEX believes that it would not
be able to use a tax loss carryforward before its expiration or any other tax asset, CEMEX would not recognize such asset. Both
situations would result in additional income tax expense for the period in which such determination is made. In order to determine
whether it is probable that deferred tax assets will ultimately be realized, CEMEX takes into consideration all available positive
and negative evidence, including factors such as market conditions, industry analysis, expansion plans, projected taxable income,
carryforward periods, current tax structure, potential changes or adjustments in tax structure, tax planning strategies, future
reversals of existing temporary differences, etc. In addition, every reporting period, CEMEX analyzes its actual results versus its
estimates, and adjusts, as necessary, its tax asset valuations. If actual results vary from CEMEX’s estimates, the deferred tax asset
may be affected and necessary adjustments will be made based on relevant information. Any adjustments recorded will affect
CEMEX’s statements of operations in such period.