Cemex 2013 Annual Report Download - page 163

Notes to the financial statements
OnMarch21,2013,stockholdersattheannualordinaryshareholders’meetingapprovedresolutionsto:(i)increasethevariablecommon
stockthroughthecapitalizationofretainedearnings,byissuingupto1,312.4millionshares(437.5millionCPOs),whichshareswereissued,
representinganincreaseincommonstockofapproximately$4,consideringanominalvalueof$0.00833perCPO,andadditionalpaid-in
capitalofapproximately$5,987;(ii)increasethevariablecommonstockbyissuingupto369millionshares(123millionCPOs),whichwill
bekeptinCEMEX’streasurytobeusedtopreservetheanti-dilutiverightsofnoteholderspursuantCEMEX’sconvertiblesecurities.Also,
onMarch21,2013,stockholdersattheextraordinaryshareholders’meetingapprovedresolutionspursuanttowhichalloranypartofthe
sharescurrentlykeptinCEMEX’streasuryasaguaranteeforthepotentialissuanceofsharesthroughCEMEX’sconvertiblesecuritiesmaybe
re-allocatedtoensuretheconversionrightsofanynewconvertiblesecuritiesifanynewconvertiblesecuritiesareissued.
OnFebruary23,2012,stockholdersattheannualordinaryshareholders’meetingapprovedresolutionsto:(i)increasethevariablecommon
stockthroughthecapitalizationofretainedearnings,byissuingupto1,256.4millionshares(418.8millionCPOs),whichshareswereissued,
representinganincreaseincommonstockofapproximately$3.4,consideringanominalvalueof$0.00833perCPO,andadditionalpaid-in
capitalofapproximately$4,133.8;(ii)increasethevariablecommonstockbyissuingupto345millionshares(115millionCPOs),whichwill
bekeptinCEMEX’streasurytobeusedtopreservetheanti-dilutiverightsofnoteholderspursuantCEMEX’sconvertiblesecurities(note
10B);(iii)thecancellationof5,122milliontreasuryshares,whichwerenotsubjecttopublicofferorconvertiblenotesissuanceinthe24
monthsperiodauthorizedbytheextraordinaryshareholdersmeetingheldonSeptember4,2009;and(iv)increasethevariablecommon
stockbyissuingupto1,500millionshares(500millionCPOs)whichwillbekeptinCEMEX’streasuryandusedtobesubscribedandpaid
pursuanttothetermsandconditionsofCEMEX’slong-termcompensationstockprogram,withouttriggeringtheshareholders’preemptive
rights.
OnFebruary24,2011,stockholdersattheextraordinaryshareholdermeetingapprovedanincreaseinthevariableportionofourcapital
stockofupto6billionshares(2billionCPOs).Pursuanttotheresolutionapprovedbythestockholders,thesubscriptionandpaymentofthe
newsharesmayoccurthroughapublicofferofCPOsand/ortheissuanceofconvertiblesecurities.Thesesharesarekeptinthetreasuryof
CEMEX,S.A.B.deC.V.asaguaranteeforthepotentialissuanceofsharesthroughconvertiblesecurities.
OnFebruary24,2011,stockholdersattheannualordinaryshareholders’meetingapprovedresolutionsto:(i)increasethevariablecommon
stockthroughthecapitalizationofretainedearnings,issuingupto1,202.6millionshares(400.9millionCPOs)basedonapriceof$10.52
perCPO.Stockholdersreceived3newsharesforeach75sharesheld(1newCPOforeach25CPOsheld),throughthecapitalizationof
retainedearnings.Asaresult,sharesequivalenttoapproximately401millionCPOswereissued,representinganincreaseincommonstockof
approximately$3,consideringanominalvalueof$0.00833perCPO,andadditionalpaid-incapitalofapproximately$4,213;and(ii)increase
thevariablecommonstockbyupto60millionshares(20millionCPOs)issuableasaresultofantidilutionadjustmentsuponconversionof
CEMEX’sconvertiblesecurities(note10B).ThesesharesarekeptinCEMEX’streasury.Therewasnocashdistributionandnoentitlementto
fractionalshares.
TheCPOsissuedpursuanttotheexerciseofoptionsunderthe“Fixedprogram”generatedadditionalpaid-incapitalofapproximately$11in
2011andincreasedthenumberofsharesoutstanding.Inaddition,inconnectionwiththelong-termexecutivestock-basedcompensation
programin2013,2012and2011,CEMEX,S.A.B.deC.V.issuedapproximately49.6million,46.4millionand43.4millionCPOs,respectively,
generatinganadditionalpaid-incapitalofapproximately$551,in2013,$486in2012and$506in2011,associatedwiththefairvalueof
thecompensationreceivedbyexecutives.
13B) Retained earnings
Netincomefortheyearissubjecttoa5%allocationtowardalegalreserveuntilsuchreserveequalsonefthoftheequityrepresentedbythe
commonstock.AsofDecember31,2013,thelegalreserveamountedto$1,804.Asmentionedinnote13A,inDecember2013,CEMEX,
S.A.B.deC.V.approvedarestitutionofretainedearningsfromadditionalpaid-incapitalfor$35,667.
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