Cemex 2013 Annual Report Download - page 127

Notes to the consolidated financial statements
• FortheyearsendedDecember31,2013,2012and2011,theaggregateamountofcompensationofCEMEX,S.A.B.deC.V.’sboardof
directors,includingalternatedirectors,andtopmanagementexecutives,wasapproximatelyUS$39($504),US$37($490)andUS$24
($300),respectively.Oftheseamounts,approximatelyUS$25($321)in2013,US$26($343)in2012andUS$18($225)in2011,
waspaidasbasecompensationplusperformancebonuses,includingpensionandpostretirementbenets.Inaddition,approximately
US$14($183)in2013,US$11($147)in2012andUS$6($75)in2011oftheaggregateamountineachyear,correspondedto
allocationsofCPOsunderCEMEX’sexecutivestock-basedcompensationprograms.In2013and2012,theamountofCPOsallocated
includedapproximatelyUS$3($38)andUS$3($39),respectively,ofcompensationearnedundertheprogramthatislinkedtothe
fulllmentofcertainperformanceconditionsandthatispayablethroughMarch2015tothenstillactivemembersofCEMEX,S.A.B.de
C.V.’sboardofdirectorsandtopmanagementexecutives(note21).
26) Subsequent events
Duringtherstandsecondquarterof2014,inordertorunitsoperationsinMexicomoreefcientlyandtofacilitatetheacquisitionof
nancing,CEMEXhaslaunchedaninitiativetointegrateitsMexicanbusinessesandoperationalactivitiesinMexicounderasingleentity.This
initiativeconsidersthatthereareefciencyandimprovementopportunitiesbyshiftingfromaplatformwhereCEMEXservesitscustomers
fromdifferententitiesaccordingtoitslineofbusiness(i.e.cement,concrete,aggregates),intoaplatformwherecustomers,nowsortedby
end-usersegment(i.e.distributor,builder,manufacturer)willbeservicedfromasingleentity.UnderthisinitiativeCEMEX,S.A.B.deC.V.will
integrateproductive,commercial,marketingandadministrativeactivitiesrelatedtothesaleofcement,ready-mixconcrete,aggregatesand
otherconstructionmaterialsinMexico.Aspartofthisinitiative,CEMEXS.A.B.deC.V.,willenterintoleaseagreementsofproperty,plant
andequipment,withCEMEXMéxico,S.A.deC.V.,CEMEXConcretos,S.A.deC.V.andCEMEXAgregados,S.A.deC.V.,thesecompaniesthat
havecarriedoperatingactivitiesuntilDecember31,2013andthebeginningof2014,willceasetohaveoperatingactivitiesonorafterApril
1,2014,andwhilemaintainingpropertyoftheassetswillmainlyactaslessors.ToimplementtheMexicanintegrationinitiativeefciently,
awhollyownedadministrativetrustwillbeusedtoconcentrateleasepaymentsandobtainnancing.CEMEX,S.A.B.deC.V.willcontinueto
consolidatetheentireCEMEXgroup.
OnJanuary13,2014,consideringitsshort-termmaturity,CEMEXinitiatedaprocesstoamendthetermsofthecappedcalloptionsmaturing
in2015(note16D),usingprevailingmarketvaluationoftheinstrument.AsofJanuary31,2014,theexecutionofthiscash-lessamendment
isstillongoing,whennalizedduringFebruary2014;CEMEXestimatesthatitwillhavetherighttoreceivethemarketvalueofapproximately
7.7millionofADSsthroughasamenumberofzero-strikecalloptionsmaturinginMarch2015,whichwillbemarked-to-marketthrough
protorlossprospectively.
InconnectionwiththeMIRcommencedbytheUKCommission(note24B),onJanuary14,2014,theUKCommissionpublisheditsFinding
andRemediesnalreportwhichfollowedtheearlierProvisionalFindingsReportinregardsanyremediesforCEMEX’ssubsidiariesintheUnited
Kingdom.TheUKCommissionmadechangestotheprovisionaldecisioninitsFinalReportregardingthesupplyofgranulatedblastfurnace
slagandforthesupplyofgroundgranulatedblastfurnaceslagbytheothermajorparticipantsintheMIR;CEMEX’ssubsidiariesintheUnited
Kingdomwerenotimpactedbythisnalreport.
Inconnectionwith theAntitrustCartelLitigationin Germany(note24A),onJanuary15,2014, CDCledan appealbefore theHigher
RegionalCourtinDüsseldorfagainstthedecisionissuedbytheDüsseldorfDistrictCourtonDecember17,2013.
InconnectionwiththeFirstInstanceJudgmentissuedbytherstinstancecourtofAssiutinEgyptinordertoannultheSharePurchase
Agreement pursuant to which CEMEX acquired a controlling interest in ACC (note 24B), on a hearing held on January 20, 2014, the
AppealsCourt,withoutissuingadecisiononthemeritsoftheFirstInstanceJudgment,acceptedtheappealsandreferredthemattertoan
administrativecourtinAssiut.CEMEX’sfacilitiesinEgyptcontinuetooperatenormally.
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