Cemex 2013 Annual Report Download - page 111

Notes to the consolidated financial statements
20C) Retained earnings
Netincomefortheyearissubjecttoa5%allocationtowardalegalreserveuntilsuchreserveequalsonefthofthecommonstock.Asof
December31,2013,thelegalreserveamountedto$1,804.Asmentionedinnote20A,inDecember2013,CEMEXincurredarestitutionof
retainedearningsfromadditionalpaid-incapitalfor$35,667.
20D) Non-controlling interest and perpetual debentures
Non-controlling interest
Non-controllinginterestrepresentstheshareofnon-controllingstockholdersintheresultsandequityofconsolidatedsubsidiaries.Asof
December31,2013and2012,non-controllinginterestinequityamountedtoapproximately$8,716and$8,410,respectively.
OnNovember15,2012,CEMEXLatam,awholly-ownedsubsidiaryofCEMEXEspaña,concludeditsinitialofferingof170,388,000new
commonshares,ata priceof 12,250Colombian Pesos percommon share. Thecommonshares offeredby CEMEX Latamincluded (a)
148,164,000newcommonsharesofferedinapublicofferingtoinvestorsinColombiaandinaconcurrentprivateplacementtoeligible
investorsoutsideofColombia,and(b)anadditional22,224,000newcommonsharesofferedinsuchprivateplacementthatweresubject
toaputoptiongrantedtotheinitialpurchasersduringthe30-dayperiodfollowingclosingoftheoffering.CEMEXLatam’sassetsinclude
substantiallyallofCEMEX’scementandready-mixassetsinColombia,Panama,CostaRica,Brazil,GuatemalaandElSalvador.Aftergiving
effecttotheoffering,andtheexerciseoftheputoptionbytheinitialpurchasers,CEMEXEspaña,ownsapproximately73.35%ofCEMEX
Latam’soutstandingcommonshares,excludingsharesheldintreasury.CEMEXLatam’scommonsharesarelistedontheColombianStock
Exchange
(BolsadeValoresdeColombiaS.A.) underthetickerCLH.ThenetproceedsfromtheofferingofapproximatelyUS$960,after
deductingcommissionsandofferingexpensesandaftergivingeffecttotheexerciseoftheputoptionbytheinitialpurchasers,wereusedby
CEMEXtorepayindebtednessundertheFacilitiesAgreementandtheFinancingAgreement.DuringSeptemberandOctober2012,CEMEX
enteredintoforeignexchangecalloptionsandforwardcontractsfornotionalamountsofUS$200andUS$510,respectively;tohedgethe
exposuretotheexchangerateuctuationsbetweentheColombianpesototheU.S.dollar.Atsettlement,changesinthefairvalueofthese
instrumentsgeneratedalossofapproximatelyUS$2($26).
Perpetual debentures
AsofDecember31,2013and2012,thebalancesofthenon-controllinginterestincludedapproximatelyUS$477($6,223)andUS$473
($6,078),respectively,representingthenotionalamountofperpetualdebentures.Thebalancein2013and2012excludesthenotional
amountofperpetualdebenturesheldbysubsidiaries,acquiredthroughaseriesofexchangetransactionsofeachseriesofitsthenoutstanding
perpetualdebenturesfornewsecurednotesorothernancialinstruments(note16A).Theexchangeofferspreviouslymentionedwere
contemporarilyagreedbyCEMEXanditsperpetualdebentures’holders,withoutanyexistingcommitment.
Interestexpenseontheperpetualdebentureswasincludedwithin“Otherequityreserves”andamountedtoapproximately$405in2013,
$453in2012and$1,010in2011,excludinginalltheperiodstheamountofinterestaccruedbyperpetualdebenturesheldbysubsidiaries.
CEMEX’sperpetualdebentureshavenoxedmaturitydateandtherearenocontractualobligationsforCEMEXtoexchangeanyseriesofits
outstandingperpetualdebenturesfornancialassetsornancialliabilities.Asaresult,thesedebentures,issuedentirelybySpecialPurpose
Vehicles(“SPVs”),qualifyasequityinstrumentsandareclassiedwithinnon-controllinginterest,astheywereissuedbyconsolidatedentities.
Inaddition,subjecttocertainconditions,CEMEXhastheunilateralrighttodeferindenitelythepaymentofinterestdueonthedebentures.
TheclassicationofthedebenturesasequityinstrumentswasmadeunderapplicableIFRS.ThedifferentSPVswereestablishedsolelyfor
purposesofissuingtheperpetualdebenturesandwereincludedinCEMEX’sconsolidatednancialstatements.
AsofDecember31,2013and2012,thedetailofCEMEX’sperpetualdebentures,givingeffecttotheexchangetransactionsthatoccurred
during2012,asmentionedinnote16A,andtotheexclusionofperpetualdebenturesheldbysubsidiaries,wasasfollows:
2013 2012 Repurchase
Issuer Issuance date Nominal amount Nominal amount option Interest rate
C10-EURCapital(SPV)Ltd May2007 €64 €64 Tenthanniversary 6.3%
C8Capital(SPV)Ltd February2007 US$137 US$137 Eighthanniversary 6.6%
C5Capital(SPV)Ltd1 December2006 US$69 US$69 Fifthanniversary LIBOR+4.277%
C10Capital(SPV)Ltd December2006 US$183 US$183 Tenthanniversary 6.7%
1 CEMEXisnotpermittedtocallthesedebenturesundertheFacilitiesAgreement.AsofDecember31,2013and2012,3-monthLIBORwasapproximately
0.246%and0.306%,respectively.
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