building a STRONGER foundation - Cemex

18. EARNINGS (LOSS) PER SHARE
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 considered for calculations of earnings (loss) per share (“EPS”) 2010, 2009 and 2008 were as follows:
2010 2009 2008
Denominator (thousands of shares)
Weighted average number of shares outstanding – basic......................................... 29,974,524 26,796,205 25,142,051
Effect of dilutive instruments – stock-based compensation (note 17).................... – 39,963 10,337
Effect of dilutive instruments – convertible securities (note 12A)......................... – 517,440 –
Potentially dilutive shares...................................................................................... – 557,403 10,337
Weighted average number of shares outstanding – diluted......................................
Numerators
– 27,353,608 25,152,388
Controlling interest income (loss) before discontinued operations..........................Ps (16,489) 5,925 226
Less: non-controlling interest net income................................................................ 27 240 45
Controlling interest income (loss) before discontinued operations – basic................. (16,516) 5,685 181
Plus: interest expense on convertible securities....................................................... – 16 –
Controlling interest income before discontinued operations – diluted...................Ps – 5,701 181
Income (loss) from discontinued operations ..........................................................Ps – (4,276) 2,097
Basic earnings (loss) per share
Controlling interest basic EPS from continuing operations .....................................Ps (0.55) 0.21 0.01
Basic EPS from discontinued operations................................................................. – (0.16) 0.08
Diluted earnings (loss) per share
Controlling interest diluted EPS from continuing operations ..................................Ps – 0.21 0.01
Diluted EPS from discontinued operations.............................................................. – (0.16) 0.08
Diluted earnings per share reflect the effects of any transactions which have a potentially dilutive effect on the weighted average number of
common shares outstanding. The dilutive effect of the number of shares resulting from the executives’ stock option programs is determined
under the inverse treasury method. In connection with the restricted CPO grants under the long-term compensation program initiated in 2009,
as well as the convertible securities, the total amount of CPOs committed for issuance in the future is computed from the beginning of the
reporting period. Based on MFRS B-14 “Earnings per Share,” (“MFRS B14”), the weighted average number of shares outstanding in 2009
and 2008 includes the shares issued as a result of the capitalization of retained earnings declared in April 2010 and 2009 (note 16A).
According to MFRS B-14, diluted earnings per share shall not be disclosed when the result from continuing operations is a loss.
19. COMMITMENTS
A) GUARANTEES
As of December 31, 2010 and 2009, CEMEX, S.A.B. de C.V. had guaranteed loans of certain subsidiaries for approximately US$13,028 and
US$12,570, respectively.
B) PLEDGED ASSETS
As of December 31, 2010 and 2009, CEMEX had liabilities amounting to US$186 and US$292, respectively, secured by property, machinery
and equipment.
In addition, in connection with the Financing Agreement (note 12A), CEMEX transferred the shares of several of its main subsidiaries,
including CEMEX México, S.A. de C.V. and CEMEX España, S.A., to a trust for the benefit of the bank lenders, note holders and other
creditors having the benefit of negative pledge clauses, in order to guarantee payment obligations under the Financing Agreement and other
financial transactions. These shares secure several other financings entered into subsequent to the date of the Financing Agreement.
C) COMMITMENTS
As of December 31, 2010 and 2009, CEMEX had commitments for the purchase of raw materials for an approximate amount of US$288 and
US$172, respectively.
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