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Notes to the financial statements
On March 30, 2010, in connection with the offering of the 2015 Convertible Notes and to effectively increase the conversion price
for CEMEXs CPOsundersuch notes,CEMEX, S.A.B. de C.V.entered intoa cappedcall transaction,afterantidilution adjustmentsover
approximately62millionADSsmaturinginMarch2015,bymeansofwhich,atmaturityofthenotes,CEMEX,S.A.B.deC.V.expected
thatifthepriceperADSwasaboveUS$11.6236,CEMEX,S.A.B.deC.V.wouldreceiveincashthedifferencebetweenthemarketpriceof
theADSandUS$11.6236,withamaximumappreciationperADSofUS$4.4706.CEMEX,S.A.B.deC.V.paidapremiumofapproximately
US$105.OnJanuary13,2014,CEMEX,S.A.B.deC.V.initiatedamendmentstothistransaction(note16).AsofDecember31,2013and
2012,thefairvalueofsuchoptionsrepresentedanassetofapproximatelyUS$94($1,228)andUS$58($751),respectively.During2013,
2012and2011,changesinthefairvalueofthiscontractgeneratedagainofapproximatelyUS$36($465),againofapproximatelyUS$47
($594)andalossofapproximatelyUS$79($984),respectively,whichwererecognizedwithin“Othernancial(expense)income,net”inthe
statementsofoperations.Inaddition,untilDecember31,2012,consideringthatthecurrencyinwhichthenotesaredenominatedandthe
functionalcurrencyoftheissuerdiffered,CEMEX,S.A.B.deC.V.separatedtheconversionoptionembeddedinthe2015ConvertibleNotes
andrecognizeditatfairvalue,whichasofDecember31,2012,resultedinaliabilityofapproximatelyUS$64($828).Changesinfairvalue
oftheconversionoptiongeneratedalossofapproximatelyUS$56($708)in2012andagainofapproximatelyUS$97($1,211)in2011.
Asmentionedintheparagraphabove,effectiveJanuary1,2013,theconversionoptionembeddedinthe2015ConvertibleNotesceased
tobetreatedasstand-alonederivativeatfairvaluethroughthestatementofoperations.TheliabilityaccrueduntilDecember31,2012was
cancelledagainststockholders’equity.
Conversely,inconnectionwiththemandatorilyconvertiblesecurities(note10B),andconsideringtheaforementionedchangeinthefunctional
currencyofCEMEX,S.A.B.deC.V.effectiveJanuary1,2013andthatthecurrencyinwhichsuchmandatorilyconvertiblesecuritiesare
denominatedandthefunctionalcurrencyoftheissuerdiffer,CEMEX,S.A.B.deC.V.separatednowtheconversionoptionembeddedinsuch
instrumentsandrecognizesitatfairvalue,whichasofDecember31,2013,resultedinaliabilityofapproximatelyUS$39($506).Changes
infairvalueoftheconversionoptiongeneratedin2013alossofapproximatelyUS$10($135).
AsofDecember31,2012,asdescribedinnote14C,CEMEX,S.A.B.deC.V.hadgrantedaguaranteeforanotionalamountofapproximately
US$360,inconnectionwithputoptiontransactionsonCEMEXsCPOsenteredintobyCitibankwithaMexicantrustthatCEMEXestablished
onbehalfofitsMexicanpensionfundandcertainofCEMEXsdirectorsandcurrentandformeremployeesinApril2008,whichfairvalue
asof December31,2012,netof depositsin marginaccounts, represented aliabilityof approximatelyUS$58 ($740).Changes infair
valuewererecognizedinthestatementsofoperationswithin“Othernancialincome(expense),net,”representingagainofapproximately
US$22($284)in2013,againofapproximatelyUS$95($1,198)in2012andalossofapproximatelyUS$92($1,145)in2011.Asof
December31,2012,cashdepositsinmarginaccountsassociatedwiththistransactionwereapproximatelyUS76($975).InApril2013,the
aforementionedtransactionexpiredwithnofurtherconsequencestoCEMEX,S.A.B.deC.V.
10E) Risk management
Sincethebeginningof2009,withtheexceptionofthecappedcalltransactionsenteredintoinMarch2010andMarch2011inconnection
with2015Notes,2016Notesand2018Notes(notes10B,10Dand16),CEMEX,S.A.B.deC.V.hasbeenreducingtheaggregatenotional
amountofitsderivatives,therebyreducingtheriskofcashmargincalls.Thisinitiativehasincludedclosingsubstantiallyallnotionalamounts
ofderivativeinstrumentsrelatedtodebtofCEMEX,S.A.B.deC.V.(currencyandinterestratederivatives),whichwascompletedduringApril
2009.TheFacilitiesAgreementsignicantlyrestrictsCEMEXS.A.B.deC.V.,abilitytoenterintoderivativetransactions.
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