Cemex 2013 Annual Report Download - page 96

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Notes to the consolidated financial statements
Foreignexchangegainsandlossesoccurwhenanyentityincursmonetaryassetsorliabilitiesin acurrencydifferentfromitsfunctional
currency,andarerecordedintheconsolidatedstatementsofoperations,exceptforexchangeuctuationsassociatedwithforeigncurrency
indebtednessdirectlyrelatedtotheacquisitionofforeignentitiesandrelatedparties’long-termbalancesdenominatedinforeigncurrency,
forwhichtheresultinggainsorlossesarereportedinothercomprehensiveincome.AsofDecember31,2013and2012,excludingfromthe
sensitivityanalysistheimpactoftranslatingthenetassetsofforeignoperationsintoCEMEX’sreportingcurrency,consideringahypothetic
10%strengtheningoftheU.S.dollaragainsttheMexicanpeso,withallothervariablesheldconstant,CEMEX’snetlossfor2013and2012
wouldhaveincreasedbyapproximatelyUS$59($773)andUS$108($1,522),respectively,asaresultofhigherforeignexchangelosseson
CEMEX’sDollar-denominatednetmonetaryliabilitiesheldinconsolidatedentitieswithotherfunctionalcurrencies.Conversely,ahypothetic
10%weakeningoftheU.S.dollaragainsttheMexicanpesowouldhavetheoppositeeffect.
AsofDecember31,2013and2012,CEMEX’sconsolidatednetmonetaryassets(liabilities)bycurrencyareasfollows:
2013
Northern
Mexico USA Europe Mediterranean SAC Asia Others Total
Monetaryassets $ 13,608 7,632 11,237 6,644 6,081 1,775 17,145 64,122
Monetaryliabilities 12,135 12,603 27,323 8,493 6,193 1,643 260,543 328,933
Netmonetaryassets(liabilities) $ 1,473 (4,971) (16,086) (1,849) (112) 132 (243,398) (264,811)
Out of which:
Dollars $ (688) (5,283) – (6) 1,065 129 (180,829) (185,612)
Pesos  2,161 1 – – – – (22,366) (20,204)
Euros  – 281 (6,623) (2,091) 1 – (49,073) (57,505)
Othercurrencies – 30 (9,463) 248 (1,178) 3 8,870 (1,490)
   $ 1,473 (4,971) (16,086) (1,849) (112) 132 (243,398) (264,811)
2012
Northern
Mexico USA Europe Mediterranean SAC Asia Others Total
Monetaryassets $ 14,102 7,556 10,095 5,309 4,477 1,603 12,078 55,220
Monetaryliabilities 13,761 13,792 26,400 8,140 6,353 1,693 239,963 310,102
Netmonetaryassets(liabilities) $ 341 (6,236) (16,305) (2,831) (1,876) (90) (227,885) (254,882)
Out of which:
Dollars $ (991) (6,648) – (17,367) 2,694 9 (144,747) (167,050)
Pesos  1,332 412 – – – – (32,733) (30,989)
Euros  – – (7,709) (2,972) – – (75,351) (86,032)
Othercurrencies – – (8,596) 17,508 (4,570) (99) 24,946 29,189
   $ 341 (6,236) (16,305) (2,831) (1,876) (90) (227,885) (254,882)
Equity risk
AsofDecember31,2013and2012,equityriskistheriskthatthefairvalueoffuturecashowsofanancialinstrumentwilluctuate
becauseofchangesinthemarketpriceofCEMEX’sand/orthirdparty’sshares.Asdescribedinnote16D,CEMEXhasenteredintoequity
forwardcontractsonAxtelCPOsandtheTRIindex,aswellasoptionsandguaranteesofaputoptiontransactionbasedonthepriceof
CEMEX’sownCPOs.Undertheseequityderivativeinstruments,thereisadirectrelationshipinthechangeinthefairvalueofthederivative
withthechangeinvalueoftheunderlyingshareorindex.Allchangesinfairvalueofsuchequityderivativeinstrumentsarerecognized
throughthestatementsofoperationsaspartof“Othernancialincome(expense),net.”AsignicantdecreaseinthemarketpriceofCEMEX’s
CPOsandthirdpartyshareswouldnegativelyaffectCEMEX’sliquidityandnancialposition.
AsofDecember31,2013and2012,thepotentialchangeinthefairvalueofCEMEX’sequityforwardcontractsinAxtel’ssharesthatwould
resultfromahypothetical,instantaneousdecreaseof10%inthemarketpriceofAxtelCPOs,withallothervariablesheldconstant,would
haveincreasedCEMEX’snetlossfor2013and2012byapproximatelyUS$2($28)andUS$1($17),respectively,asaresultofadditional
negative changes in fair value associated with such forward contracts. A 10% hypothetical increase in the CPO price would generate
approximatelytheoppositeeffect.
[95]