Cemex 2013 Annual Report Download - page 162

Notes to the financial statements
CEMEX,S.A.B.deC.V.doesnotrecognizeadeferredtaxliabilityfortheundistributedearningsgeneratedbyitssubsidiaries,consideringthat
suchundistributedearningsareexpectedtobereinvestedandnotgeneratingtaxableincomeintheforeseeablefuture.Furthermore,CEMEX,
S.A.B.deC.V.doesnotrecognizeadeferredtaxliabilityrelatedtoitsinvestmentsinsubsidiaries,consideringthatitcontrolsthereversalof
thetemporarydifferencesarisingfromtheseinvestments.
12C) Effective tax rate
Theeffectsofinationarerecognizeddifferentlyfortaxpurposesandforbookpurposes.Thissituation,asinthedifferencesbetweenbook
andtaxbases,giverisetopermanentdifferencesbetweentheapproximatetaxrateandtheeffectiverateshowninthestatementsof
operationsofCEMEX,S.A.B.deC.V.AsofDecember31,2013,2012and2011,thesedifferencesareasfollows:
2013 2012 2011
% % %
Taxlawincometaxrate 30.0 30.0 (30.0)
Unrecognizedtaxbenetsintheyear1 103.6 139.9 24.7
Inationadjustments (20.7) (20.4) 4.9
Non-deductibleandotheritems2 (140.5) (35.6) (1.9)
 Effectivetaxrate (27.6) 113.9 (2.3)
1 Includeschangesduringtheperiodrelatedtodeferredtaxassetsoriginatedbytaxlosscarryforwards.
2 In2013,thislineitemincludestheeffectsassociatedwiththeterminationofthetaxconsolidationregimeinMexico.
13) Stockholders’ equity
AsofDecember31,2013and2012,therewere17,558,796CPOsand18,028,276CPOs,respectively,heldbysubsidiaries.
13A) Common stock and additional paid-in capital
AsDecember31,2013and2012,thebreakdownofcommonstockandadditionalpaid-incapitalwasasfollows:
2013 2012
Commonstock $ 4,143 4,139
Additionalpaid-incapital  84,800 113,929
   $ 88,943 118,068
DuringDecember2013,theCompany’smanagementapprovedrestitutiontotheconsolidatedlineitemof“Retainedearnings”for$35,667,
bymeansoftransferwithchargetothelineitemof“Additionalpaid-incapital”.Thistransfer,whichrepresentsareclassicationbetweenline
itemswithinCEMEX,S.A.B.deC.V.’sstockholders’equitythatdoesnotaffectsitsconsolidatedamount.
AsofDecember31,2013and2012,thecommonstockofCEMEX,S.A.B.deC.V.wasrepresentedasfollows:
2013 2012
Shares 1 Series A 2 Series B 3 Series A 2 Series B 3
Subscribedandpaidshares 22,847,063,194 11,423,531,597 21,872,295,096 10,936,147,548
Unissuedsharesauthorizedforstockcompensationprograms 1,055,956,580 527,978,290 1,155,804,458 577,902,229
Sharesthatguaranteetheissuanceofconvertiblesecurities 4 6,408,438,520 3,204,219,260 6,162,438,520 3,081,219,260
Sharesauthorizedfortheissuanceofstockorconvertible
 securities5 4,146,404 2,073,202 4,146,404 2,073,202
   30,315,604,698 15,157,802,349 29,194,684,478 14,597,342,239
1 AsofDecember31,2013and2012,13,068,000,000sharescorrespondtothexedportion,and32,405,407,047sharesasofDecember31,2013and
30,724,026,717sharesasofDecember31,2012,correspondtothevariableportion.
2 Series“A”orMexicansharesmayrepresentatleast64%ofcommonstock.
3 Series“B”orfreesubscriptionsharesmustrepresentupto36%ofcommonstock.
4 Sharesthatguaranteetheconversionofboththevoluntaryandmandatorilyconvertiblesecurities(note10B).
5 Sharesauthorizedfortheissuanceofstockthroughapublicofferorthroughtheissuanceofconvertiblesecurities.
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