building a STRONGER foundation - Cemex

3B) DISCONTINUED OPERATIONS
CEMEX, S.A.B. DE C.V. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements – (Continued)
As of December 31, 2010, 2009 and 2008
(Millions of Mexican pesos)
On October 1, 2009, CEMEX completed the sale of its Australian operations to a subsidiary of Holcim Ltd. for approximately 2,020 million
Australian dollars (approximately US$1,700). The assets divested consisted of 249 ready-mix concrete plants, 83 aggregate quarries and 16
concrete pipe plants. The sale also included CEMEX’s 25% interest in Cement Australia, whose assets include four cement plants, one
grinding mill and several works under construction, with an aggregate cement production capacity of 5.1 million tons. As a result of this
significant divestiture, the Australian operations included in the statements of operations for the years ended December 31, 2009 and 2008,
were reclassified to the single line item of “Discontinued operations,” which includes, in 2009, a loss on sale, net of income tax, and the
reclassification of foreign currency translation effects accrued in equity for an aggregate amount of approximately Ps5,901 (US$446). The
2009 loss on the sale of CEMEX’s Australian assets includes an expense of approximately Ps1,310 (US$99) resulting from the
reclassification to the statement of operations of foreign currency translation effects accrued in equity until the moment of sale, as well as an
income tax benefit of approximately Ps2,528 (US$191).
Selected condensed balance sheet information of discontinued operations of CEMEX in Australia as of September 30, 2009 was as follows:
Current assets ................................................................................................................................................................... Ps
(unaudited)
September 30,
2009
6,027
Investment in associates................................................................................................................................................... 2,870
Property, machinery and equipment, net.......................................................................................................................... 13,343
Goodwill .......................................................................................................................................................................... 8,657
Intangible assets, net ........................................................................................................................................................ 3,885
Other non-current assets................................................................................................................................................... 850
Total assets from discontinued operations ...................................................................................................................... 35,632
Short-term debt ................................................................................................................................................................ 1,634
Other current liabilities..................................................................................................................................................... 2,634
Long-term debt................................................................................................................................................................. 140
Other non-current liabilities ............................................................................................................................................. 2,324
Total liabilities from discontinued operations................................................................................................................. 6,732
Net assets from discontinued operations......................................................................................................................... Ps 28,900
The following table presents condensed income statement information of the discontinued operations of CEMEX Australia for the nine-month
period ended September 30, 2009 and the twelve-month period ended December 31, 2008, respectively:
(unaudited)
September 30, 2009 December 31, 2008
Sales ..............................................................................................................................................Ps 13,015 17,536
Cost of sales and operating expenses............................................................................................. (11,817) (15,740)
Operating income ............................................................................................................................................. 1,198 1,796
Other expenses, net........................................................................................................................ (87) (92)
Comprehensive financial result ..................................................................................................... (179) (399)
Equity in income of associates ...................................................................................................... 208 229
Income before income tax ................................................................................................................................ 1,140 1,534
Income tax..................................................................................................................................... 512 563
Net income ......................................................................................................................................................... Ps 1,652 2,097
Depreciation ..................................................................................................................................Ps 631 856
Amortization .................................................................................................................................Ps 256 309
Capital expenditures......................................................................................................................Ps 128 737
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