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