Cemex 2013 Annual Report Download - page 154

Notes to the financial statements
AsofDecember31,2013and2012,thecarryingamountsofnancialassetsandliabilitiesandtheirrespectivefairvalueswereasfollows:
2013 2012
Carrying Fair Carrying Fair
amount value amount value
Financial assets
Derivativenancialinstruments(note7B) $ 6,264 6,264 $ 4,276 4,276
Long-termaccountsreceivablewithrelatedparties(note11)  6,942 7,160  6,942 7,243
Otherinvestments(note7B)  87 87  98 98
   $ 13,293 13,511 $ 11,316 11,617
Financial liabilities
Long-termdebt(note10A) $ 93,591 99,523 $ 52,365 55,453
Othernancialobligations(note10B)  29,427 43,783  27,826 37,565
Derivativenancialinstruments(note10D)  506 506  5,430 5,430
Long-termaccountspayablewithrelatedparties(note11)  16,928 18,829  15,814 15,072
   $ 140,452 162,641 $101,435 113,520
Fair Value Hierarchy
CEMEX,S.A.B.deC.V.appliesIFRS13forfairvaluemeasurementsofnancialassetsandnancialliabilitiesrecognizedordisclosedatfair
value(note2L).ThefairvaluesdeterminedbyCEMEXS.A.B.deC.V.asofDecember31,2013and2012,foritsnancialassetsandliabilities
aredeterminedbyLevel2.
10D) Derivative nancial instruments
Duringthereportedperiods,incompliancewiththeguidelinesestablishedbyitsRiskManagementCommitteeandtherestrictionssetforth
byitsdebtagreements,CEMEX,S.A.B.deC.V.heldinterestrateswaps,aswellasforwardcontractsandotherderivativeinstrumentson
CEMEX,S.A.B.deC.V.’sownsharesandthirdparties’shares,withtheobjectiveof,asthecasemaybe:a)changingtheriskproleassociated
withthepriceofrawmaterialsandotherenergyprojects;andb)othercorporatepurposes.
AsofDecember31,2013and2012,thenotionalamountsandfairvaluesofderivativeinstrumentswereasfollows:
2013 2012
Notional Fair Notional Fair
(Millions of U.S. dollars) amount value amount value
I. Interestrateswaps US$ 174 33 181 49
II. DerivativeinstrumentonpriceofCPO  2,383 408 2,743 (138)
   US$ 2,557 441 2,924 (89)
ThefairvaluesdeterminedbyCEMEXS.A.B.deC.V.foritsderivativenancialinstrumentsareLevel2.Thereisnodirectmeasureforthe
riskofCEMEXS.A.B.deC.V.oritscounterpartsinconnectionwiththederivativeinstruments.Therefore,theriskfactorsappliedforCEMEX
S.A.B.deC.V.,assetsandliabilitiesoriginatedbythevaluationofsuchderivativeswereextrapolatedfrompubliclyavailableriskdiscountsfor
otherpublicdebtinstrumentsofCEMEXS.A.B.deC.V.,anditscounterparts.
Thecaption“Othernancial(expense)income,net”includedgainsandalossesrelatedtotherecognitionofchangesinfairvaluesofthe
derivativeinstrumentsduringtheapplicableperiodandthatrepresentednetlossofapproximately$1,308(US$103)in2013,$21(US$2)
in2012andagainofapproximately$807(US$65)in2011.AsofDecember31,2012,pursuanttonetbalancesettlementagreements,
cashdepositsinmarginaccountsthatguaranteedobligationsthroughderivativenancialinstrumentswereoffsetwiththefairvalueof
derivativeinstrumentsforapproximatelyUS$76($975).
AsofDecember31,2013and2012,themainexposureofCEMEX,S.A.B.deC.V.,wasrelatedtochangesinthepricesofitsCPOs.A
signicantdecreaseinthemarketpriceofCEMEX,S.A.B.deC.V.CPOsandthirdpartyshareswouldnegativelyaffectCEMEX,S.A.B.deC.V.,
liquidityandnancialposition.
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