Cemex 2012 Annual Report Download - page 149

Notes to the
financial
statements
149
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12C) Effective tax rate
The effects of inflation are recognized differently for tax purposes and for book purposes. This situation, as in the differences
between book and tax bases, give rise to permanent differences between the approximate tax rate and the effective rate shown in
the statements of operations of CEMEX, S.A.B. de C.V. As of December 31, 2012, 2011 and 2010, these differences are explained
as follows:
2012 2011 2010
% % %
Tax law income tax rate 30.0 (30.0) (30.0)
Unrecognized tax benefits in the year 139.9 24.7 53.4
Inflation adjustments (20.4) 4.9 8.9
Tax consolidation effect (note 12A) – – 404.3
Non-deductible and other items (35.6) (1.9) (26.3)
Effective tax rate 113.9 (2.3) 410.3
13) Stockholders’ equity
As of December 31, 2012 and 2011, there were 18,028,276 CPOs and 17,334,881 CPOs, respectively, held by subsidiaries.
13A) Common stock and additional paid-in capital
As of December 31, 2012 and 2011, the breakdown of common stock and additional paid-in capital was as follows:
2012 2011
Common stock $ 4,139 4,135
Additional paid-in capital 113,929 109,309
$ 118,068 113,444
As of December 31, 2012 and 2011, the common stock of CEMEX, S.A.B. de C.V. was represented as follows:
2012 2011
Shares 1 Series A 2 Series B 3 Series A 2 Series B 3
Subscribed and paid shares 21,872,295,096 10,936,147,548 20,939,727,526 10,469,863,763
Unissued shares authorized for stock compensation programs 1,155,804,458 577,902,229 250,782,926 125,391,463
Shares that guarantee the issuance of convertible securities 4 6,162,438,520 3,081,219,260 5,932,438,520 2,966,219,260
Shares authorized for the issuance of stock or
convertible securities 5 4,146,404 2,073,202 7,561,480 3,780,740
29,194,684,478 14,597,342,239 27,130,510,452 13,565,255,226
1 As of December 31, 2012 and 2011, 13,068,000,000 shares correspond to the fixed portion, and 30,724,026,717 shares as of December 31,
2012 and 27,627,765,678 shares as of December 31, 2011, correspond to the variable portion.
2 Series “A” or Mexican shares must represent at least 64% of common stock.
3 Series “B” or free subscription shares may represent up to 36% of common stock.
4 Shares that guarantee the conversion of both the voluntary and mandatorily convertible securities (note 10B).
5 Shares authorized for the issuance of stock through a public offer or through the issuance of convertible securities.
On February 23, 2012, stockholders at the annual ordinary shareholders’ meeting approved resolutions to: (i) increase the variable
common stock through the capitalization of retained earnings, by issuing up to 1,256.4 million shares (418.8 million CPOs), which
shares were issued, representing an increase in common stock of approximately $3.4, considering a nominal value of $0.00833
per CPO, and additional paid-in capital of approximately $4,133.8; (ii) increase the variable common stock by issuing up to 345
million shares (115 million CPOs),which will be kept in CEMEX’s treasury to be used to preserve the anti-dilutive rights of note
holders pursuant CEMEX’s convertible securities (note 10B); (iii) the cancellation of 5,122 million treasury shares, which were
not subject to public offer or convertible notes issuance in the 24 months period authorized by the extraordinary shareholders
meeting held on September 4, 2009; and (iv) increase the variable common stock by issuing up to 1,500 million shares (500
million CPOs) which will be kept in CEMEX’s treasury and used to be subscribed and paid pursuant to the terms and conditions of
CEMEX’s long-term compensation stock program, without triggering the shareholders’ preemptive rights.