Cemex 2012 Annual Report Download - page 59

Notes to the
consolidated
financial
statements
59
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Based on IFRS 8 and considering the financial information that is regularly reviewed by CEMEX’s top management, each of the
six geographic regions in which CEMEX operates and the countries that comprise such regions represent reportable operating
segments. However, for disclosure purposes in the notes to the financial statements, considering similar regional and economic
characteristics and/or the fact that certain countries do not exceed the materiality thresholds included in IFRS 8 to be reported
separately, such countries have been aggregated and presented as single line items as follows: a) “Rest of Northern Europe” is
mainly comprised of CEMEX’s operations in Ireland, the Czech Republic, Austria, Poland, Hungary and Latvia, as well as trading
activities in Scandinavia and Finland; b) “Rest of Mediterranean” is mainly comprised of CEMEX’s operations in Croatia, the United
Arab Emirates and Israel; c) “Rest of South America and the Caribbean” is mainly comprised of CEMEX’s operations in Costa
Rica, Panama, Puerto Rico, the Dominican Republic, Nicaragua, Jamaica and other countries in the Caribbean, Guatemala, and
small ready-mix concrete operations in Argentina; and d) “Rest of Asia” is mainly comprised of CEMEX’s operations in Thailand,
Bangladesh, China and Malaysia. The segment “Others” refers to: 1) cement trade maritime operations, 2) Neoris, N.V., CEMEX’s
subsidiary involved in the development of information technology solutions, 3) the Parent Company and other corporate entities,
and 4) other minor subsidiaries with different lines of business.
Selected financial information by geographic operating segment for 2010 has been reclassified as applicable in order to be
comparable to the new geographic organization implemented beginning in 2011. The major changes as compared to the previous
geographic organization are the creation of the “Mediterranean” region with Spain and Croatia, formerly part of the previously
titled “Europe” region, and Egypt and Israel, formerly part of the previously titled “Africa and Middle East” region, among others.
The main indicator used by CEMEX’s management to evaluate the performance of each country is “Operating EBITDA”, representing
operating earnings before other expenses, net, plus depreciation and amortization, considering that such amount represents a
relevant measure for CEMEX’s management as an indicator of the ability to internally fund capital expenditures, as well as a
widely accepted financial indicator to measure CEMEX’s ability to service or incur debt (note 16). Operating EBITDA should not
be considered as an indicator of CEMEX’s financial performance, as an alternative to cash flow, as a measure of liquidity, or as
being comparable to other similarly titled measures of other companies. This indicator, which is presented in the selected financial
information by geographic operating segment, is consistent with the information used by CEMEX’s management for decision-
making purposes. The accounting policies applied to determine the financial information by geographic operating segment are
consistent with those described in note 2. CEMEX recognizes sales and other transactions between related parties based on
market values.
Selected consolidated statements of operations information by geographic operating segment for the years ended December 31,
2012, 2011 and 2010 was as follows:
Net sales Less: Operating
(including Less: depreciation earnings Other Other
related Related Net Operating and before other expenses, Financial nancing
2012 parties) parties sales EBITDA amortization expenses , net net expense items, net
Mexico $ 44,412 (1,425) 42,987 16,238 2,640 13,598 (291) (432) (84)
United States 40,319 (122) 40,197 323 6,379 (6,056) (967) (546) (159)
Northern Europe
United Kingdom 14,620 – 14,620 1,870 956 914 (297) (151) (701)
Germany 14,406 (953) 13,453 680 1,004 (324) (258) (19) (170)
France 13,324 – 13,324 1,251 493 758 (156) (69) 13
Rest of Northern Europe 12,778 (806) 11,972 1,739 858 881 440 (118) 56
Mediterranean
Spain 4,841 (155) 4,686 1,355 684 671 (1,443) (111) 944
Egypt 6,382 (190) 6,192 2,470 553 1,917 (203) (9) 82
Rest of Mediterranean 8,160 (37) 8,123 1,063 302 761 (112) (47) (91)
South America and the Caribbean
Colombia 11,932 – 11,932 4,905 396 4,509 31 (139) 348
Rest of South America and
the Caribbean 16,450 (1,851) 14,599 4,402 746 3,656 (70) (53) 5
Asia
Philippines 4,704 – 4,704 900 305 595 27 (3) (11)
Rest of Asia 2,430 – 2,430 110 75 35 13 (13) –
Others 15,153 (7,336) 7,817 (2,922) 1,793 (4,715) (2,406) (16,625) 745
Total $ 209,911 (12,875) 197,036 34,384 17,184 17,200 (5,692) (18,335) 977