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 />
CEMEX’s consolidated statement of operations for the year ended December 31, 2008 includes the results of CEMEX Venezuela for the<br />
seven-month period ended July 31, 2008. As of December 31, 2010 and 2009, the investment in Venezuela was presented within “Other<br />
investments and non current accounts receivable” (note 9B) and amounted to approximately Ps6,203 and Ps6,147, respectively, corresponding<br />
to CEMEX’s equity interest of approximately 75.7%.<br />
For the year 2008, including the Australian discontinued operations, CEMEX measured the materiality of CEMEX Venezuela considering a<br />
threshold of 5% of consolidated net sales, operating income, net income and total assets, as not significant. CEMEX concluded that the<br />
nationalized Venezuelan operations did not reach the materiality thresholds to be classified as discontinued operations. The quantitative test<br />
for the seven-month period ended July 31, 2008 (unaudited) was as follows:<br />
July 31, 2008<br />
Net sales 3.2%<br />
CEMEX consolidated from continuing operations .........................................................................................................Ps 134,836<br />
CEMEX Venezuela ........................................................................................................................................................ 4,286<br />
Operating income 4.8%<br />
CEMEX consolidated from continuing operations .........................................................................................................Ps 16,003<br />
CEMEX Venezuela 1 ...................................................................................................................................................... 775<br />
Net income 0.1%<br />
CEMEX consolidated from continuing operations .........................................................................................................Ps 10,557<br />
CEMEX Venezuela ........................................................................................................................................................ 11<br />
Total assets 2.1%<br />
CEMEX consolidated .....................................................................................................................................................Ps 525,756<br />
CEMEX Venezuela ........................................................................................................................................................ 11,010<br />
1 Changes in the net investment between July 31, 2008 and December 31, 2010 and 2009 are attributable to foreign currency fluctuations.<br />
The following table presents condensed selected income statement information for CEMEX’s operations in Venezuela for the seven-month<br />
period ended July 31, 2008 (unaudited):<br />
July 31, 2008<br />
Sales .................................................................................................................................................................................Ps 4,286<br />
Operating income ............................................................................................................................................................ 775<br />
Net income .......................................................................................................................................................................Ps 11<br />
Sale of operations in Canary Islands<br />
On December 26, 2008, through its subsidiary in Spain, CEMEX sold assets in the cement and concrete sectors in the Canary Islands,<br />
including its 50% interest in Cementos Especiales de Las Islas, S.A. (“CEISA”) for approximately €162 (US$227 or Ps3,113) to a subsidiary<br />
of Cimpor Cimentos de Portugal SGPS SA. Until the sale, CEMEX controlled CEISA together with another stockholder (Grupo Tudela<br />
Beguin) and the financial statements were consolidated through the proportional integration method (note 2B). CEMEX’s 2008 consolidated<br />
statement of operations includes the results of operations of the assets sold, calculated through the proportional integration method for assets<br />
related to CEISA, for the twelve-month period ended on December 31, 2008. Sale of the CEISA interest and other assets generated a net gain<br />
in 2008 of approximately Ps920, including the cancellation of the related goodwill for approximately Ps18, which was recognized within<br />
“Other expenses, net.”<br />
Selected condensed combined information of income statement of the assets sold and the CEISA interest in 2008 is as follows:<br />
2008<br />
Sales ............................................................................................................................................................................. Ps 2,317<br />
Operating income .......................................................................................................................................................... 283<br />
Net income .................................................................................................................................................................... Ps 371<br />
Sale of operations in Italy<br />
In several transactions during 2008, CEMEX sold its cement mill operations in Italy for approximately €148 (US$210 or Ps2,447), generating<br />
a gain on the sale of approximately €8 (US$12 or Ps119), which was recognized within “Other expenses, net.”<br />
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