Cemex 2013 Annual Report Download - page 157

Notes to the financial statements
Interest rate risk
Interestrateriskistheriskthatthefairvalueorfuturecashowsofanancialinstrumentwilluctuatebecauseofchangesinmarketinterest
rates.Changesinthemarketinterestratesoflong-termdebtwithxedinterestratesonlyaffectsresultsofCEMEX,S.A.B.deC.V.ifsuch
debtismeasuredatfairvalue.Allofourxed-ratelong-termdebtiscarriedatamortizedcostandthereforeisnotsubjecttointerestrate
risk.exposureofCEMEX,S.A.B.deC.V.totheriskofchangesinmarketinterestratesrelatesprimarilytoitslong-termdebtobligationswith
oatinginterestrates.AsofDecember31,2013,CEMEX,S.A.B.deC.V.wassubjecttothevolatilityofoatinginterestrates,which,ifsuch
ratesweretoincrease,mayadverselyaffectitsnancingcostandincreaseitsnetloss.CEMEX,S.A.B.deC.V.managesitsinterestraterisk
bybalancingitsexposuretoxedandvariablerateswhileattemptingtoreducethenancialexpense.
AsofDecember31,2013and2012,approximately34%and47%ofthelong-termdebtofCEMEX,S.A.B.deC.V.bearsoatingratesata
weightedaverageinterestrateofLIBORplus470and468basispoints,respectively.AsofDecember31,2013and2012,ifinterestrates
atthatdatehadbeen0.5%higher,withallothervariablesheldconstant,thenetlossofCEMEX,S.A.B.deC.V.for2013and2012would
haveincreasedbyapproximatelyUS$12($158)andUS$10($128),respectively,asaresultofhigherinterestexpenseonvariablerate
denominateddebt.
Foreign currency risk
Foreigncurrencyriskistheriskthatthefairvalueoffuturecashowsofanancialinstrumentwilluctuatebecauseofchangesinforeign
exchangerates.TheexposureofCEMEX,S.A.B.deC.V.totheriskofchangesinforeignexchangeratesrelatesprimarilytoitsoperating
activitiesandcertainnancialassetsandliabilities.
ForeignexchangeuctuationsoccurwhenCEMEX,S.A.B.deC.V.incursmonetaryassetsorliabilitiesinacurrencyotherthanthefunctional
currency.Thesetranslationgainsandlossesarerecordedinthestatementsofoperations.Consideringahypothetic10%weakeningofthe
U.S.dollaragainsttheMexicanpeso,withallothervariablesheldconstant,thenetlossofCEMEX,S.A.B.deC.V.for2013wouldhave
increasedbyapproximatelyUS$201($2,617),asaresultofhigherforeignexchangelossesonpeso-denominatednetmonetaryliabilities.
Conversely,ahypothetic10%strengtheningoftheU.S.dollaragainsttheMexicanpesowouldhavetheoppositeeffect.Meanwhile,asof
December31,2012,consideringahypothetic10%strengtheningoftheU.S.dollaragainsttheMexicanpeso,withallothervariablesheld
constant,thenetlossofCEMEX,S.A.B.deC.V.for2012wouldhaveincreasedbyapproximatelyUS$389($5,002),asaresultofhigher
foreignexchangelossesonpeso-denominatednetmonetaryliabilities.Conversely,ahypothetic10%weakeningoftheU.S.dollaragainstthe
Mexicanpesowouldhavetheoppositeeffect.
AsofDecember31,2013and2012,thenetmonetaryassets(liabilities)bycurrencyareasfollows:
2013 2012
Short-term:
Monetaryassets $ 18,014 942
Monetaryliabilities  (11,581) (24,455)
  Netmonetaryliabilities  6,433 (23,513)
Long-term:
Monetaryassets  13,293 11,316
Monetaryliabilities  (160,982) (114,521)
  Netmonetaryliabilities $ (147,689) (103,205)
Out of which:
Dollars  (119,454) (107,056)
Pesos   (22,192) (19,662)
Otherscurrencies  390 –
   $ (141,256) (126,718)
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