Cemex 2013 Annual Report Download - page 104

Notes to the consolidated financial statements
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.
AsofDecember31,2013,CEMEX’sdeferredtaxlosscarryforwardsthathavebeenrecognizedexpireasfollows:
Amount of
unreserved
carryforwards
2014 $ 1,180
2015  3,552
2016  1,945
2017  2,932
2018andthereafter  78,531
   $ 88,140
InconnectionwithCEMEX’sdeferredtaxlosscarryforwardspresentedinthetableabove,asofDecember31,2013,inordertorealize
thebenetsassociatedwithsuchdeferredtaxassetsthathavenotbeenreserved,beforetheirexpiration,CEMEXwouldneedtogenerate
approximately$88,140inconsolidatedpre-taxincomeinfutureperiods.FortheyearsendedDecember31,2013,2012and2011,CEMEX
hasreportedpre-taxlossesonaworldwideconsolidatedbasis.Nonetheless,basedonthesameforecastsoffuturecashowsandoperating
resultsusedbyCEMEX’smanagementtoallocateresourcesandevaluateperformanceinthecountriesinwhichCEMEXoperates,which
includeexpectedgrowthinrevenuesandreductionsininterestexpenseinseveralcountriesduetoareductioninintra-groupdebtbalances,
alongwiththeimplementationoffeasibletaxstrategies,CEMEXbelievesthatitwillrecoverthebalanceofitstaxlosscarryforwardsthat
havenotbeenreservedbeforetheirexpiration.Inaddition,CEMEXconcludedthat,thedeferredtaxliabilitiesthatwereconsideredinthe
analysisofrecoverabilityofitsdeferredtaxassetswillreverseinthesameperiodandtaxjurisdictionoftherelatedrecognizeddeferredtax
assets.Moreover,acertainamountofCEMEX’sdeferredtaxassetsrefertooperatingsegmentsandtaxjurisdictionsinwhichCEMEXis
currentlygeneratingtaxableincomeorinwhich,accordingtoCEMEX’smanagementcashowprojections,willgeneratetaxableincomeinthe
relevantperiodsbeforetheexpirationofthedeferredtaxassets,consideringthattheamountoftaxableincomerequiredtorecoverCEMEX’s
deferredtaxassetsoverthenextfouryearsisnotsignicant,andthatapproximately$78,531outofthe$88,140ofconsolidatedpre-tax
incomementionedabovewouldberequiredoverseveralyearsin2018andthereafter.
CEMEX,S.A.B.deC.V.hasnotprovidedforanydeferredtaxliabilityfortheundistributedearningsgeneratedbyitssubsidiariesrecognized
undertheequitymethod,consideringthatsuchundistributedearningsareexpectedtobereinvested,andtonotgenerateincometaxinthe
foreseeablefuture.Likewise,CEMEXdoesnotrecognizeadeferredincometaxliabilityrelatedtoitsinvestmentsinsubsidiariesandinterests
injointventures,consideringthatCEMEXcontrolsthereversalofthetemporarydifferencesarisingfromtheseinvestments.
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