Cemex 2013 Annual Report Download - page 93
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Please find page 93 of the 2013 Cemex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to the consolidated financial statements
Theestimatedfairvalueofderivativeinstrumentsuctuatesovertimeandisdeterminedbymeasuringtheeffectoffuturerelevanteconomic
variablesaccordingtotheyieldcurvesshowninthemarketasofthereportingdate.Thesevaluesshouldbeanalyzedinrelationtothefair
values of the underlying transactions and as part of CEMEX’s overall exposure attributable to uctuations in interest rates and foreign
exchangerates.Thenotionalamountsofderivativeinstrumentsdonotrepresentamountsexchangedbytheparties,andconsequently,there
isnodirectmeasureofCEMEX’sexposuretotheuseofthesederivatives.Theamountsexchangedaredeterminedbasedonthebasisofthe
notionalamountsandothertermsincludedinthederivativeinstruments.
I. Interest rate swap contracts
AsofDecember31,2013and2012,CEMEXhadaninterestrateswapmaturinginSeptember2022associatedwithagreementsentered
intobyCEMEXfortheacquisitionofelectricenergyinMexico(note23C),whichfairvaluerepresentedassetsofapproximatelyUS$33
andUS$49,respectively.Pursuanttothisinstrument,duringthetenureoftheswapandbasedonitsnotionalamount,CEMEXwillreceive
axedrateof5.4%andwillpayLIBOR,whichistheinternationalreferenceratefordebtdenominatedinU.S.dollars.AsofDecember31,
2013and2012,LIBORwas0.3480%and0.50825%,respectively.Changesinthefairvalueofthisinterestrateswapgeneratedlossesof
approximatelyUS$16($207)in2013,US$2($35)in2012andUS$12($150)in2011,recognizedinthestatementsofoperationsfor
eachyear.
II. Equity forwards in third party shares
AsofDecember31,2013and2012,CEMEXhadaforwardcontracttobesettledincashoverthepriceof59.5millionCPOsofAxtelin
bothyears.ThecontractmaturesinOctober2015.Thiscontractisintendedtomaintaintheexposuretochangesinthepriceofsuchentity.
ChangesinthefairvalueofthisinstrumentgeneratedgainsofapproximatelyUS$6($76)in2013andlossesofapproximatelyUS$7($100)
in2012andUS$35($437)in2011,recognizedinthestatementsofoperationsforeachperiod.
III. Forward instruments over indexes
AsofDecember31,2012,CEMEXheldforwardderivativeinstrumentsovertheTRI(TotalReturnIndex)oftheMexicanStockExchange,
whichwereterminatedduring2013.Bymeansoftheseinstruments,CEMEXmaintainedexposuretoincreasesordecreasesofsuchindex.
TRIexpressesthemarketreturnonstocksbasedonmarketcapitalizationoftheissuerscomprisingtheindex.Changesinthefairvalueof
theseinstrumentsgeneratedagainofapproximatelyUS$0.3($5)in2013,againofUS$1($13)in2012andalossofapproximatelyUS$1
($13)in2011,recognizedinthestatementsofoperationsforeachyear.
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