building a STRONGER foundation - Cemex

15. INCOME TAXES
A) INCOME TAXES FOR THE PERIOD
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)
The amounts for income taxes included in the statements of operations in 2010, 2009 and 2008 are summarized as follows:
2010 2009 2008
Current income taxes
From Mexican operations ................................................................................Ps (3,119) (3,804) (2,793)
From foreign operations................................................................................... (4,914) (4,885) (5,180)
Deferred income taxes
(8,033) (8,689) (7,973)
From Mexican operations ................................................................................ 786 2,181 5,990
From foreign operations................................................................................... 2,738 17,074 24,981
3,524 19,255 30,971
Ps (4,509) 10,566 22,998
As of December 31, 2010, consolidated tax loss and tax credits carryforwards expire as follows:
2011...................................................................................................................................................................................Ps
Amount of
carryforwards
6,470
2012................................................................................................................................................................................... 6,657
2013................................................................................................................................................................................... 5,910
2014................................................................................................................................................................................... 825
2015 and thereafter ............................................................................................................................................................ 271,495
Ps 291,357
As of December 31, 2009, in connection with changes to the tax consolidation regime in Mexico (note 2N) and based on Interpretation 18,
CEMEX recognized a liability for Ps10,461 against “Other non-current assets” for Ps8,216 in connection with the net liability recognized
before the new tax law, and Ps2,245 against “Retained earnings,” for the portion, according to the new law, related to: a) the difference
between the sum of the equity of the controlled entities for tax purposes and the equity of the consolidated entity for tax purposes; b) dividends
from the controlled entities for tax purposes to the Parent Company; and c) other transactions that represented the transfer of resources between
the companies included in the tax consolidation. In December 2010, pursuant to miscellaneous rules, the tax authority in Mexico granted the
option to defer the calculation and payment of the income tax, until the subsidiary is disposed of or CEMEX eliminates the tax consolidation,
over the difference between the sum of the equity of the controlled entities for tax purposes and the equity of the consolidated entity for tax
purposes. As a result, CEMEX reduced its estimated tax payable by approximately Ps2,911 against a credit to “Retained earnings.” In
addition, considering during 2010: a) cash payments of Ps325; b) income tax from subsidiaries paid to the Parent Company for Ps2,496; and
c) other adjustments of Ps358, the estimated tax payable for tax consolidation in Mexico as of December 31, 2010 amounted to Ps10,079.
B) DEFERRED INCOME TAXES
As of December 31, 2010 and 2009, the income tax effects of the main temporary differences that generated the consolidated deferred income
tax assets and liabilities are presented below:
F-45
2010 2009
Deferred tax assets:
Tax loss carryforwards and other tax credits.....................................................................................Ps 73,843 77,602
Accounts payable and accrued expenses ........................................................................................... 8,206 8,487
Intangible assets and deferred charges, net........................................................................................ 13,096 2,352
Others................................................................................................................................................ 1,032 1,161
Total deferred tax assets ................................................................................................................. 96,177 89,602
Less – Valuation allowance............................................................................................................... (40,137) (32,079)
Net deferred tax assets.................................................................................................................... 56,040 57,523
Deferred tax liabilities:
Property, machinery and equipment.................................................................................................. (42,284) (47,605)
Investments and other assets ............................................................................................................. (3,205) (4,826)
Others................................................................................................................................................ (3,194) (983)
Total deferred tax liabilities.............................................................................................................. (48,683) (53,414)
Net deferred tax asset (liability) .......................................................................................................Ps 7,357 4,109