Cemex 2013 Annual Report Download - page 113

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Notes to the consolidated financial statements
A) Variable program
ThisprogramstartedinNovember2001,throughanexchangeofxedprogramoptions,withexercisepricesdenominatedindollarsincreasing
annuallyata7%rate.
B) Restricted program
Theseoptionshadanexercisepricedenominatedindollarswhich,dependingontheprogram,increasedannuallyata5.5%rateorata7%
rate.
C) Special program
Until2005,asubsidiaryintheUnitedStatesgrantedtoagroupofitsemployeesastockoptionprogramtopurchaseCEMEXADSs.The
optionsgrantedhaveaxedexercisepricedenominatedindollarsandtenureof10years.TheoptionexercisesarehedgedusingADSs
currentlyownedbysubsidiaries,whichincreasesthenumberofsharesoutstanding.TheamountsoftheseADSprogramsarepresentedin
termsofequivalentCPOs.
Valuation of options at fair value and accounting recognition
Alloptionsoutstandingqualifyasliabilityinstrumentsandarevaluedattheirestimatedfairvalueasofthedateofthenancialstatements,
recognizingchangesinvaluationsinthestatementsofoperations.Theoptions’fairvaluesweredeterminedthroughthebinomialoption-
pricingmodelconsideringtheoptions’remainingtenureandassumptionsofexpecteddividendyield,volatilityandinterestratebasedon
reasonablemarketconditions.ThebalancesoftheprovisionfortheremainingexecutivestockoptionsasofDecember31,2013and2012
andthechangesinsuchprovisionfortheyearsendedDecember31,2013,2012and2011werenotsignicant.
22) Loss per share
BasedonIAS33
EarningsperShare
(“IAS33”),basicearnings(loss)pershareshallbecalculatedbydividingprotorlossattributableto
ordinaryequityholdersoftheparententity(thenumerator)bytheweightedaveragenumberofsharesoutstanding(thedenominator)
duringtheperiod.Sharesthatwouldbeissueddependingonlybythepassageoftimeshouldbeincludedinthedeterminationofthebasic
weightedaveragenumberofsharesoutstanding.Dilutedearnings(loss)pershareshouldreectinboth,thenumeratoranddenominator,the
assumptionthatconvertibleinstrumentsareconverted,thatoptionsorwarrantsareexercised,orthatordinarysharesareissueduponthe
satisfactionofspeciedconditions,totheextentthatsuchassumptionwouldledtoareductioninbasicearningspershareoranincreasein
basiclosspershare,otherwise,theeffectsofpotentialsharesarenotconsideredbecausetheygenerateantidilution.
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