Cemex 2012 Annual Report Download - page 106

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Notes to the
consolidated
financial
statements
106
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Valuation of options at fair value and accounting recognition
All options of programs that qualify as liability instruments are valued at their estimated fair value as of the date of the financial
statements, recognizing changes in valuations in the statements of operations. Changes in the provision for executive stock option
programs for the years ended December 31, 2012, 2011 and 2010 were as follows:
Restricted Variable Special
program program program Total
Provision as of January 1, 2010 $ 114 24 54 192
Net revenue in current period results (92) (15) (40) (147)
Estimated decrease from exercises of options – – 2 2
Foreign currency translation effect (7) (1) (3) (11)
Provision as of December 31, 2010 15 8 13 36
Net revenue in current period results (17) (9) (15) (41)
Estimated decrease from exercises of options – – – –
Foreign currency translation effect 2 1 2 5
Provision as of December 31, 2011 – – – –
Net expense (revenue) in current period results – – 9 9
Estimated decrease from exercises of options – – – –
Foreign currency translation effect – – – –
Provision as of December 31, 2012 $ – – 9 9
The options’ fair values were determined through the binomial option-pricing model. As of December 31, 2012, 2011 and 2010,
the most significant assumptions used in the valuations were as follows:
Assumptions 2012 2011 2010
Expected dividend yield 4.0% 4.0% 4.0%
Volatility 35% 35% 35%
Interest rate 0.1% 0.1% 1.2%
Weighted average remaining tenure 1.1 years 1.2 years 2.1 years
22) Loss per share
Based on IAS 33 Earnings per Share (“IAS 33”), based on IAS 33 Earnings per Share (“IAS 33”), basic earnings (loss) per share shall
be calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity (the numerator) by the weighted
average number of shares outstanding (the denominator) during the period. Shares that would be issued depending only on the
passage of time should be included in the determination of the basic weighted average number of shares outstanding. Diluted
earnings (loss) per share should reflect in both, the numerator and denominator, the assumption that convertible instruments are
converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions,
to the extent that such assumption would lead to a reduction in basic earnings per share or an increase in basic loss per share,
otherwise, the effects of potential shares are not considered because they generate antidilution.