Cemex 2013 Annual Report Download - page 92

Notes to the consolidated financial statements
Fair Value Hierarchy
Asmentionedinnote2L,CEMEXappliesIFRS13forfairvaluemeasurementsofnancialassetsandnancialliabilitiesrecognizedordisclosed
atfairvalue.AssetsandliabilitiescarriedatfairvalueintheconsolidatedbalancesheetsasofDecember31,2013and2012areincludedin
thefollowingfairvaluehierarchycategories:
2013 Level 1 Level 2 Level 3 Total
Assets measured at fair value
 Derivativeinstruments(notes13B) $ – 6,274  – 6,274
 Investmentsavailable-for-sale(note13B)  340 –  – 340
 Investmentsheldfortrading(note13B)  – 463  – 463
   $ 340 6,737  – 7,077
Liabilities measured at fair value
 Derivativeinstruments(notes16Dand17) $ – 508  – 508
2012 Level 1 Level 2 Level 3 Total
Assets measured at fair value
 Derivativeinstruments(notes13B) $ – 4,279  – 4,279
 Investmentsavailable-for-sale(note13B)  211 –  – 211
 Investmentsheldfortrading(note13B)  – 366  – 366
   $ 211 4,645  – 4,856
Liabilities measured at fair value
 Derivativeinstruments(notes16Dand17) $ – 5,451  – 5,451
16D) Derivative nancial instruments
Duringthereportedperiods,incompliancewiththeguidelinesestablishedbyitsRiskManagementCommitteeandtherestrictionssetforth
byitsdebtagreements,CEMEXheldinterestrateswaps,aswellasforwardcontractsandotherderivativeinstrumentsonCEMEX,S.A.B.de
C.V.’sownsharesandthirdparties’shares,withtheobjectiveof,asthecasemaybe:a)changingtheriskproleassociatedwiththepriceof
rawmaterialsandotherenergyprojects;andb)othercorporatepurposes.
AsofDecember31,2013and2012,thenotionalamountsandfairvaluesofCEMEX’sderivativeinstrumentswereasfollows:
2013 2012
Notional Fair Notional Fair
(U.S. dollars millions) amount value amount value
I. Interestrateswaps US$ 174 33 181 49
II. Equityforwardsonthirdpartyshares  27 1 27 –
III. Forwardinstrumentsoverindexes  – – 5 –
IV. OptionsonCEMEX’sownshares  2,383 408 2,743 (138)
   US$ 2,584 442 2,956 (89)
ThefairvaluesdeterminedbyCEMEXforitsderivativenancialinstrumentsareLevel2.ThereisnodirectmeasurefortheriskofCEMEX
oritscounterparties inconnectionwith thederivativeinstruments.Therefore,theriskfactorsappliedforCEMEX’sassetsand liabilities
originatedbythevaluationofsuchderivativeswereextrapolatedfrompubliclyavailableriskdiscountsforotherpublicdebtinstrumentsof
CEMEXanditscounterparties.
Thecaption“Othernancialincome(expenses),net”includesgainsandlossesrelatedtotherecognitionofchangesinfairvaluesofthe
derivativeinstrumentsduringtheapplicableperiodandthatrepresentedanetgainofapproximately$2,126(US$163)in2013andaloss
ofapproximately$98(US$8)in2012andagainofapproximately$329(US$26)in2011.AsofDecember31,2013and2012,pursuant
tonetbalancesettlementagreements,cashdepositsinmarginaccountsthatguaranteedobligationsthroughderivativenancialinstruments
wereoffsetwiththefairvalueofthederivativeinstrumentsforapproximately$95(US$7)and$1,168(US$91),respectively.
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