building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
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CEMEX, S.A.B. DE C.V. AND SUBSIDIARIES<br />
Notes to the Consolidated Financial Statements – (Continued)<br />
As of December 31, 2010, 2009 and 2008<br />
(Millions of Mexican pesos)<br />
11. GOODWILL, INTANGIBLE ASSETS AND DEFERRED CHARGES<br />
As of December 31, 2010 and 2009, consolidated goodwill, intangible assets and deferred charges are summarized as follows:<br />
Cost<br />
F-30<br />
2010 2009<br />
Accumulated<br />
amortization<br />
Carrying<br />
amount Cost<br />
Accumulated<br />
amortization<br />
Carrying<br />
amount<br />
Intangible assets of indefinite useful life:<br />
Goodwill................................................................. Ps 142,094 – 142,094 Ps 150,827 – 150,827<br />
Intangible assets of definite useful life:<br />
Extraction rights ..................................................... 27,051 (2,738) 24,313 28,986 (2,286) 26,700<br />
Cost of internally developed software .................... 7,664 (6,537) 1,127 7,807 (5,075) 2,732<br />
Industrial property and trademarks......................... 3,476 (2,209) 1,267 3,317 (1,908) 1,409<br />
Customer relationships........................................... 4,587 (1,596) 2,991 4,936 (1,224) 3,712<br />
Mining projects ...................................................... 1,969 (600) 1,369 2,161 (431) 1,730<br />
Others intangible assets.......................................... 7,239 (4,564) 2,675 7,635 (4,665) 2,970<br />
Deferred charges and others:<br />
Deferred income taxes (notes 15A and 15B) 1 ....... 24,504 – 24,504 36,751 – 36,751<br />
Deferred financing costs......................................... 7,743 (2,186) 5,557 9,333 (1,655) 7,678<br />
Ps 226,327 (20,430) 205,897 Ps 251,753 (17,244) 234,509<br />
1 The balance of deferred taxes includes Ps2 and Ps3 of deferred ESPS as of December 31, 2010 and 2009, respectively.<br />
The amortization of intangible assets of definite useful life was approximately Ps4,032 in 2010, Ps4,350 in 2009 and Ps4,088 in 2008, and<br />
was recognized within operation costs and expenses.<br />
During 2009, CEMEX capitalized financing costs for approximately Ps8,378 (US$616) associated with its debt Financing Agreement, as<br />
defined in note 12A. Under MFRS, CEMEX’s debt Financing Agreement qualified as the issuance of new debt and the extinguishment of the<br />
old facilities in 2009. Consequently, approximately Ps608 (US$45) in 2009 of deferred financing costs associated with the extinguished debt<br />
were recognized immediately in the statement of operations.<br />
Goodwill<br />
Goodwill balances by reporting unit as of December 31, 2010 and 2009, are the following:<br />
2010 2009<br />
North America<br />
United States..................................................................................................................................... Ps 109,765 116,784<br />
Mexico..............................................................................................................................................<br />
Europe<br />
6,354 6,354<br />
Spain................................................................................................................................................. 8,750 9,217<br />
United Kingdom............................................................................................................................... 4,254 4,569<br />
France............................................................................................................................................... 3,302 3,635<br />
Rest of Europe 1 ............................................................................................................................... 545 587<br />
Central and South America and the Caribbean<br />
Colombia .......................................................................................................................................... 5,031 5,109<br />
Dominican Republic......................................................................................................................... 195 226<br />
Rest of Central and South America and the Caribbean 2 .................................................................. 714 951<br />
Africa and Middle East<br />
United Arab Emirates ....................................................................................................................... 1,275 1,373<br />
Egypt ................................................................................................................................................ 229 231<br />
Asia<br />
Philippines........................................................................................................................................ 1,339 1,425<br />
Others<br />
Other reporting units 3........................................................................................................................................ 341 366<br />
Ps 142,094 150,827<br />
1 This segment includes reporting units in the Czech Republic and Latvia.<br />
2 This segment includes reporting units in Costa Rica and Panama.<br />
3 This segment is primarily associated with CEMEX’s subsidiary in the information technology and software development business.