building a STRONGER foundation - Cemex

13. OTHER CURRENT AND NON-CURRENT LIABILITIES
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)
As of December 31, 2010 and 2009, consolidated other current accounts payable and accrued expenses were as follows:
2010 2009
Provisions......................................................................................................................................... Ps 9,372 8,581
Other accounts payable and accrued expenses ................................................................................. 2,967 2,942
Taxes payable................................................................................................................................... 6,911 7,537
Advances from customers ................................................................................................................ 1,564 2,408
Interest payable ................................................................................................................................ 1,697 1,752
Current liabilities for valuation of derivative instruments ................................................................ 8,140 –
Dividends payable ............................................................................................................................ 30 31
Ps 30,681 23,251
Current provisions primarily consist of employee benefits accrued at the balance sheet date, insurance payments, and accruals related to legal
and environmental assessments expected to be settled in the short-term (note 20). These amounts are revolving in nature and are expected to
be settled and replaced by similar amounts within the next 12 months.
Other non-current liabilities 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. As of December 31, 2010 and 2009, consolidated other
non-current liabilities were as follows:
2010 2009
Asset retirement obligations 1 .......................................................................................................... Ps 5,658 5,322
Environmental liabilities 2................................................................................................................ 849 754
Accruals for legal assessments and other responsibilities 3.............................................................. 2,665 1,169
Non-current liabilities for valuation of derivative instruments......................................................... 1,207 7,923
Other non-current liabilities and provisions 4................................................................................... 12,101 14,769
Ps 22,480 29,937
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, 2010 and 2009, includes approximately Ps9,578 and Ps10,073, respectively, of taxes payable recognized during 2009 as a result of
changes to the tax consolidation regime in Mexico (note 15A).
As of December 31, 2009 and 2008, some significant proceedings that gave rise to a portion of the carrying amount of CEMEX’s other noncurrent
liabilities and provisions are detailed in note 20.
Changes in consolidated other non-current liabilities for the years ended December 31, 2010, 2009 and 2008, excluding changes in liabilities
related to 2009 sale of assets in Australia, are the following:
2010 2009 2008
Balance at beginning of period........................................................................... Ps 29,937 22,710 15,492
Current period additions due to new obligations or increase in estimates ....... 3,438 16,003 9,522
Current period releases due to payments or decrease in estimates .................. (916) (9,153) (2,276)
Additions due to business combinations ......................................................... 5 48 64
Reclassification from current to non-current liabilities, net ............................ (8,654) 1,186 (236)
Foreign currency translation and inflation effects ........................................... (1,330) (857) 144
Balance at end of period.....................................................................................Ps 22,480 29,937 22,710
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