building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
building a STRONGER foundation - Cemex
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January 1, 2008, however, under MFRS, inflation accounting is applied only in high inflation environments. See note 2A to our<br />
consolidated financial statements included elsewhere in this annual report.<br />
The percentage changes in cement sales volumes described in this annual report for our operations in a particular country or<br />
region include the number of tons of cement and/or the number of cubic meters of ready-mix concrete sold to our operations in other<br />
countries and regions. Likewise, unless otherwise indicated, the net sales financial information presented in this annual report for our<br />
operations in each country or region includes the Mexican Peso amount of sales derived from sales of cement and ready-mix concrete<br />
to our operations in other countries and regions, which have been eliminated in the preparation of our consolidated financial<br />
statements included elsewhere in this annual report.<br />
The following table sets forth selected consolidated financial information as of and for each of the three years ended<br />
December 31, 2008, 2009 and 2010 by principal geographic segment expressed as an approximate percentage of our total consolidated<br />
group. Through the Rinker acquisition, we acquired new operations in the United States, which have had a significant impact on our<br />
operations in that segment, and we acquired operations in Australia, which we sold in October 2009. The financial information as of<br />
and for the years ended December 31, 2008 and 2009 in the table below does not include the consolidation of Rinker’s operations for<br />
the entire years ended December 31, 2008 and 2009. See note 3B to our consolidated financial statements included elsewhere in this<br />
annual report. We operate in countries and regions with economies in different stages of development and structural reform and with<br />
different levels of fluctuation in exchange rates, inflation and interest rates. These economic factors may affect our results of<br />
operations and financial condition depending upon the depreciation or appreciation of the exchange rate of each country and region in<br />
which we operate compared to the Mexican Peso and the rate of inflation of each of these countries and regions. Beginning in 2008,<br />
MFRS B-10 has eliminated the restatement amounts of financial statements for the period as well as the restatement of the<br />
comparative financial statements for prior periods into constant values as of the date of the most recent balance sheet. Beginning in<br />
2008, the amounts of the statement of operations, the statement of cash flows and the statement of changes in stockholders’ equity are<br />
presented in nominal values. Amounts of financial statements for prior years are presented in constant pesos as of December 31, 2007,<br />
the date in which inflationary accounting ceased to be generally applied. This restatement factor was calculated based upon the<br />
inflation rates of the countries in which we operate and the changes in the exchange rates of each of these countries, weighted<br />
according to the proportion in which our assets in each country represent our total assets.<br />
%<br />
Mexico<br />
%<br />
United<br />
States<br />
%<br />
Spain<br />
%<br />
United<br />
Kingdom<br />
%<br />
Germany<br />
%<br />
France<br />
% Rest<br />
of<br />
Europe<br />
79<br />
% South<br />
America,<br />
Central<br />
America<br />
and the<br />
Caribbean<br />
%<br />
Africa<br />
and<br />
the<br />
Middle<br />
East<br />
%<br />
Asia<br />
%<br />
Others Combined Eliminations Consolidated<br />
Net Sales For<br />
the Period<br />
Ended(1):<br />
December 31,<br />
2008.............. 18% 22% 8% 8% 7% 6% 8% 10% 5% 2% 6% 235,929 (10,264) 225,665<br />
December 31,<br />
2009.............. 20% 19% 5% 8% 8% 7% 8% 10% 7% 3% 5% 206,339 (8,538) 197,801<br />
December 31,<br />
2010.............. 23% 17% 4% 8% 7% 7% 8% 11% 8% 3% 4% 184,141 (5,881) 178,260<br />
Operating<br />
Income For<br />
the Period<br />
Ended(2):<br />
December 31,<br />
2008.............. 55% (2)% 17% (6)% 2% 2% 8% 21% 10% 2% (9)% 26,088 — 26,088<br />
December 31,<br />
2009.............. 88% (46)% 10% (5)% 4% 5% 6% 35% 27% 7% (31)% 15,840 — 15,840<br />
December 31,<br />
2010.............. 114% (83)% 9% (7)% — 2% 4% 41% 40% 9% (29)% 10,843 — 10,843<br />
Total Assets<br />
at(2):<br />
December 31,<br />
2009.............. 11% 42% 11% 6% 2% 3% 5% 6% 3% 2% 9% 582,286 — 582,286<br />
December 31,<br />
2010.............. 12% 43% 10% 6% 2% 3% 4% 6% 3% 2% 9% 515,097 — 515,097<br />
(1) Percentages by reporting segment are determined before eliminations resulting from consolidation.<br />
(2) Percentages by reporting segment are determined after eliminations resulting from consolidation.