Cemex 2013 Annual Report Download - page 97
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Please find page 97 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
AsofDecember31,2012,thepotentialchangeinthefairvalueofCEMEX’sforwardcontractsintheTRIindexthatwouldresultfroma
hypothetical,instantaneousdecreaseof10%intheaforementionedindex,withallothervariablesheldconstant,wouldhavenoincreased
CEMEX’snetlossfor2012byapproximatelyUS$1($6),asaresultofadditionalnegativechangesinfairvalueassociatedwithsuchforward
contracts.A10%hypotheticalincreaseintheTRIindexwouldgenerateapproximatelytheoppositeeffect.
AsofDecember31,2012,thepotentialchangeinthefairvalueofCEMEX’soptions(cappedcall)andtheputoptiontransactionbasedon
thepriceofCEMEX’sownCPOsthatwouldresultfromahypothetical,instantaneousdecreaseof10%inthemarketpriceofCEMEX’sCPOs,
withallothervariablesheldconstant,wouldhaveincreasedCEMEX’snetlossfor2013and2012byapproximatelyUS$89($1,155)and
US$76($971),respectively,asaresultofadditionalnegativechangesinfairvalueassociatedwiththesecontracts.A10%hypothetical
increaseintheCPOpricewouldgenerateapproximatelytheoppositeeffect.
Inaddition, eventhoughthe changesinfairvalueofCEMEX’s embeddedconversionoptionsin theconvertiblenotesdenominatedina
currencyotherthanthefunctionalcurrencyofCEMEX,S.A.BdeC.V.affectthestatementsofoperations,theydonotimplyanyriskor
variabilityincashows,consideringthatthroughtheirexercise,CEMEXwillsettleaxedamountofdebtwithaxedamountofshares.Asof
December31,2013and2012,afterconsideringintheconvertiblenotestheeffectsrelatedwiththechangeinfunctionalcurrencyofthe
ParentCompanyin2013,thepotentialchangeinthefairvalueoftheseembeddedconversionoptionsthatwouldresultfromahypothetical,
instantaneousdecreaseof10%inthemarketpriceofCEMEX’sCPOs,withallothervariablesheldconstant,wouldhavedecreasedCEMEX’s
netlossfor2013and2012byapproximatelyUS$8($102)andUS$89($1,148),respectively,asaresultofadditionalpositivechanges
infairvalueassociatedwiththisoption.A10%hypotheticalincreaseintheCPOpricewouldgenerateapproximatelytheoppositeeffect.
Liquidity risk
LiquidityriskistheriskthatCEMEXwillnothavesufcientfundsavailabletomeetitsobligations.CEMEXhassatiseditsoperatingliquidity
needsprimarilythroughtheoperationsofitssubsidiariesandexpecttocontinuetodosoforboththeshortandlong-term.Althoughcash
owfromoperationshashistoricallymetCEMEX’soverallliquidityneedsforoperations,servicingdebtandfundingcapitalexpenditures
andacquisitions,itssubsidiariesareexposedtorisksfromchangesinforeigncurrencyexchangerates,priceandcurrencycontrols,interest
rates,ination,governmentalspending,socialinstabilityandotherpolitical,economicand/orsocialdevelopmentsinthecountriesinwhich
theyoperate,anyoneofwhichmaymateriallyincreaseCEMEXnetlossandreducecashfromoperations.Consequently,inordertomeetits
liquidityneeds,CEMEXalsoreliesoncost-cuttingandoperatingimprovementstooptimizecapacityutilizationandmaximizeprotability,as
wellasborrowingundercreditfacilities,proceedsofdebtandequityofferings,andproceedsfromassetsales.CEMEX’sconsolidatednetcash
owsprovidedby(usedin)operatingactivities,afterinterestandtaxes,wereapproximately$1,270in2013,$5,949in2012,and$6,812
in2011.ThematuritiesofCEMEX’scontractualobligationsareincludedinnote23E.
AsofDecember31,2013,therearemargincallsreferringtoCEMEX’sderivativenancialinstrumentspositionsofapproximatelyUS$7
($95).ThepotentialrequirementasofDecember31,2013foradditionalmargincallsthatwouldresultfromahypotheticalinstantaneous
decreaseof10%inthepricesofAxtelsharesandCEMEXCPOswouldnotbesignicant.
17) Other current and non-current liabilities
AsofDecember31,2013and2012,consolidatedothercurrentaccountspayableandaccruedexpenseswereasfollows:
2013 2012
Provisions $ 10,186 9,496
Otheraccountspayableandaccruedexpenses 2,763 4,174
Advancesfromcustomers 2,074 1,641
Interestpayable 3,007 3,003
Currentliabilitiesforvaluationofderivativeinstruments – 623
Dividendspayable 24 30
$ 18,054 18,967
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