Cemex 2012 Annual Report Download - page 91

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Notes to the
consolidated
financial
statements
91
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As of December 31, 2012 and 2011, other non-current liabilities, which include the best estimate of cash flows with respect to
diverse issues where CEMEX is determined to be responsible and which are expected to be settled over a period greater than 12
months, were as follows:
2012 2011
Asset retirement obligations 1 $ 7,062 5,377
Environmental liabilities 2 520 1,174
Accruals for legal assessments and other responsibilities 3 7,412 11,816
Non-current liabilities for valuation of derivative instruments 4,828 996
Other non-current liabilities and provisions 4 12,782 16,179
$ 32,604 35,542
1 Provisions for asset retirement include future estimated costs for demolition, cleaning and reforestation of production sites at the end of their
operation, which are initially recognized against the related assets and are depreciated over their estimated useful life.
2 Environmental liabilities include future estimated costs arising from legal or constructive obligations, related to cleaning, reforestation and other
remedial actions to remediate damage caused to the environment. The expected average period to settle these obligations is greater than 15 years.
3 Provisions for legal claims and other responsibilities include items related to tax contingencies.
4 As of December 31, 2012 and 2011, includes approximately $12,526 and $11,717, respectively, of the non-current portion of taxes payable
recognized in 2009 as a result of changes to the tax consolidation regime in Mexico (note 19D). Approximately $2,020 and $693 as of December
31, 2012 and 2011, respectively, were included within current taxes payable.
As of December 31, 2012 and 2011, some significant proceedings that gave rise to a portion of the carrying amount of CEMEX’s
other current and non-current liabilities and provisions are detailed in note 24A.
Changes in consolidated current and non-current provisions for the years ended December 31, 2012 and 2011 were as follows:
2012
Asset Accruals for Valuation of
retirement Environmental legal derivative Other Total
obligations liabilities assessments instruments provisions Total 2011
Balance at beginning of period $ 5,377 1,174 11,816 998 27,804 47,169 40,362
Additions or increase in estimates 310 75 132 5,241 29,768 35,526 19,602
Releases or decrease in estimates (154) (23) (1,002) – (33,070) (34,249) (15,738)
Additions due to business combinations – – – – – – 27
Reclassification from current
to non-current liabilities, net 162 133 (312) – (742) (759) 209
Accretion expense 213 – – – (1,176) (963) (708)
Foreign currency translation 1,154 (839) (3,222) (787) (307) (4,001) 3,415
Balance at end of period $ 7,062 520 7,412 5,452 22,277 42,723 47,169
Out of which:
Current provisions $ – – – 623 9,496 10,119 11,627