Cemex 2013 Annual Report Download - page 90

Notes to the consolidated financial statements
16B) Other nancial obligations
AsofDecember31,2013and2012,othernancialobligationsintheconsolidatedbalancesheetaredetailedasfollows:
2013 2012
Short-term Long-term Total Short-term Long-term Total
I. Convertiblesubordinatednotesdue2018  $ – 7,565 7,565 $ – 7,100 7,100
I. Convertiblesubordinatednotesdue2016 – 11,551 11,551  – 10,768 10,768
II. Convertiblesubordinatednotesdue2015 – 8,919 8,919  – 8,397 8,397
III. Mandatoryconvertiblesecurities2019  177 1,392 1,569  152 1,561 1,713
IV.Liabilitiessecuredwithaccountsreceivable 4,471 2,500 6,971  6,013 2,500 8,513
V. CapitalLeases  920 1,823 2,743  813 2,587 3,400
   $ 5,568 33,750 39,318 $ 6,978 32,913 39,891
FinancialinstrumentsconvertibleintoCEMEX’ssharescontaincomponentsofliabilityandequity,whicharerecognizeddifferentlydepending
uponthecurrencyinwhichtheinstrumentisdenominatedandthefunctionalcurrencyoftheissuer(note2L).
I. Optional convertible subordinated notes due in 2016 and 2018
OnMarch15,2011,CEMEX,S.A.B.deC.V.closedtheofferingofUS$978($11,632)aggregateprincipalamountof3.25%convertible
subordinatednotesduein2016(the“2016ConvertibleNotes”)andUS$690($8,211)aggregateprincipalamountof3.75%convertible
subordinatednotesduein2018(the“2018ConvertibleNotes”).ThenotesaresubordinatedtoallofCEMEX’sliabilitiesandcommitments.
ThenotesareconvertibleintoaxednumberofCEMEX’sADSs,attheholder’selection,atanytimeafterJune30,2011andaresubjectto
antidilutionadjustments.AsofDecember31,2013and2012,theconversionpriceperADSwasapproximatelyUS$10.03andUS$10.43,
respectively.Aportionofthenetproceedsfromthistransactionwereusedtofundthepurchaseofcappedcalltransactions(note16D),
whicharegenerallyexpectedtoreducethepotentialdilutioncosttoCEMEX,S.A.B.deC.V.uponthepotentialconversionofsuchnotes.
Thefairvalueoftheconversionoptionasoftheissuancedateamountedtoapproximately$3,959,whichconsideringthethenfunctional
currencyoftheissuer,wasrecognizeduntilDecember31,2012asaderivativeinstrumentthroughprotorloss(note16D).Changesinfair
valueoftheconversionoptiongeneratedalossof$1,094(US$88)in2012andagainof$167(US$13)in2011,recognizedwithin“Other
nancial(expense)income,”net.EffectiveJanuary1,2013,inconnectionwiththechangeoftheParentCompany’sfunctionalcurrency
describedinnote2D,whichamongothereffectsalignedthefunctionalcurrencyoftheissuerwiththecurrencyinwhichtheinstruments
aredenominated,theconversionoptionsembeddedinthe2016ConvertibleNotesandthe2018ConvertibleNotesceasedtobetreatedas
stand-alonederivativesatfairvaluethroughprotorloss.TheliabilityaccrueduntilDecember31,2012wascancelledagainststockholders’
equity.Afterantidilutionadjustments,theconversionrate asofDecember31, 2013and 2012was99.6866ADS and95.8525 ADS,
respectively,pereach1thousanddollarsprincipalamountofsuchnotes.
II. Optional convertible subordinated notes due in 2015
On March 30, 2010, CEMEX, S.A.B. de C.V. issued US$715 ($8,837) aggregate principal amount of 4.875% Optional Convertible
SubordinatedNotesdue2015(the“2015ConvertibleNotes”).ThenotesaresubordinatedtoallofCEMEX’sliabilitiesandcommitments.
ThenotesareconvertibleintoaxednumberofCEMEX’sADSs,attheholder’selection,andaresubjecttoantidilutionadjustments.Asof
December31,2013and2012,theconversionpriceperADSwasapproximatelyUS$11.62andUS$12.09,respectively.Concurrentwith
theoffering,aportionoftheproceedswereusedtoenterintoacappedcalltransactionthatwasexpectedtogenerallyreducethepotential
dilutioncosttoCEMEX,S.A.B.deC.V.uponthepotentialconversionofthenotes(note16D).Thefairvalueoftheconversionoptionasof
theissuancedateamountedto$1,232,whichconsideringthethenfunctionalcurrencyoftheissuerwasrecognizeduntilDecember31,
2012asaderivativeinstrumentthroughprotorloss(note16D).Changesinfairvalueoftheconversionoptiongeneratedalossof$114
(US$9)in2012andagainof$39(US$3)in2011,recognizedwithin“Othernancial(expense)income,net.”EffectiveJanuary1,2013,
inconnectionwiththechangeoftheParentCompany’sfunctionalcurrencydescribedinnote2D,whichamongothereffectsalignedthe
functionalcurrencyoftheissuerwiththecurrencyinwhichtheinstrumentisdenominated,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.Afterantidilutionadjustments,theconversionrateasofDecember31,
2013and2012was86.0316ADSand82.7227ADS,respectively,pereach1thousanddollarsprincipalamountofsuchnotes.
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