Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Consolidated Goodwill, Intangible Assets and Deferred Charges

As of December 31, 2017 and 2016, consolidated goodwill, intangible assets and deferred charges were summarized as follows:


		2017								2016
		Cost		Accumulated amortization			Carrying Amount			Cost		Accumulated amortization			Carrying Amount
Intangible assets of indefinite useful life:
Goodwill	Ps		195,474		—			195,474	Ps		206,319		—			206,319
Intangible assets of definite useful life:
Extraction rights			39,603		(6,480	)		33,123			40,995		(5,948	)		35,047
Industrial property and trademarks			929		(364	)		565			707		(350	)		357
Customer relationships			3,859		(3,852	)		7			4,343		(4,084	)		259
Mining projects			797		(96	)		701			961		(84	)		877
Others intangible assets			14,941		(9,902	)		5,039			13,814		(9,166	)		4,648

	Ps		255,603		(20,694	)		234,909	Ps		267,139		(19,632	)		247,507

Summary of Changes in Consolidated goodwill

Changes in consolidated goodwill in 2017, 2016 and 2015, were as follows:


		2017			2016			2015
Balance at beginning of period	Ps		206,319			184,156			160,544
Business combinations			1,965			—			64
Disposals, net (note 4.3)			—			(3,340	)		(552	)
Reclassification to assets held for sale and other current assets (notes 4.2, 4.3 and 12)			(1,804	)		(9,734	)		—
Impairment losses			(1,920	)		—			—
Foreign currency translation effects			(9,086	)		35,237			24,100

Balance at end of period	Ps		195,474			206,319			184,156

Summary of Changes in Intangible Asset

Changes in intangible assets of definite life in 2017, 2016 and 2015, were as follows:


		2017
		Extraction rights			Industrial property and trademarks			Customer relations			Mining projects			Others¹			Total
Balance at beginning of period	Ps		35,047			357			259			877			4,648			41,188
Additions (disposals), net¹			278			(783	)		—			(148	)		424			(229	)
Business combinations (note 4.1)			—			—			—			4			72			76
Reclassifications (notes 4.1, 4.2 and 12)			—			—			(27	)		—			—			(27	)
Amortization for the period			(716	)		(110	)		(225	)		(12	)		(974	)		(2,037	)
Impairment losses			(38	)		—			—			—			(12	)		(50	)
Foreign currency translation effects			(1,448	)		1,101			—			(20	)		881			514

Balance at the end of period	Ps		33,123			565			7			701			5,039			39,435


		2016
		Extraction rights			Industrial property and trademarks			Customer relations			Mining projects			Others¹			Total			2015
Balance at beginning of period	Ps		30,327			622			1,004			805			3,808			36,566			32,940
Business combinations			—			—			—			—			—			—			616
Additions (disposals), net¹			201			(760	)		—			(382	)		343			(598	)		(186	)
Reclassifications (notes 4.1, 4.2 and 12)			—			—			—			—			—			—			1
Amortization for the period			(712	)		(293	)		(658	)		(12	)		(275	)		(1,950	)		(1,572	)
Impairment losses			(6	)		—			—			—			(19	)		(25	)		(10	)
Foreign currency translation effects			5,237			788			(87	)		466			791			7,195			4,777

Balance at the end of period	Ps		35,047			357			259			877			4,648			41,188			36,566

As of December 31, 2017 and 2016, “Others” includes the carrying amount of internal-use software of Ps2,981 and Ps2,544, respectively. Capitalized direct costs incurred in the development stage of internal-use software, such as professional fees, direct labor and related travel expenses, amounted to Ps1,422 in 2017, Ps769 in 2016 and Ps615 in 2015.

Summary of Goodwill Balances Allocated by Operating Segment

As of December 31, 2017 and 2016, goodwill balances allocated by operating segment were as follows:


		2017		2016
Mexico	Ps		7,371		7,529
United States			152,486		162,692
Europe
Spain			10,000		12,316
United Kingdom			6,335		6,371
France			4,796		4,524
Czech Republic			709		583
South, Central America and the Caribbean
Colombia			6,146		6,461
Dominican Republic			279		250
TCL			2,027		—
Rest of South, Central America and the Caribbean¹			985		1,036
Asia, Middle East and Africa
Philippines			1,817		1,911
United Arab Emirates			1,769		1,865
Egypt			232		231
Others
Other reporting segments²			522		550

	Ps		195,474		206,319

1	This caption refers to the operating segments in the Caribbean, Costa Rica and Panama.

2	This caption is primarily associated with Neoris N.V., CEMEX’s subsidiary involved in the sale of information technology and services.

Summary of Pre-tax Discount Rates and Long-term Growth Rates Used to Determine the Discounted Cash Flows

CEMEX’s pre-tax discount rates and long-term growth rates used to determine the discounted cash flows in the group of CGUs with the main goodwill balances were as follows:


	Discount rates			Growth rates
Groups of CGUs	2017	2016	2015	2017	2016	2015
United States	8.8%	8.6%	8.6%	2.5%	2.5%	2.5%
Spain	9.5%	9.5%	9.9%	1.7%	1.6%	1.9%
Mexico	10.2%	9.8%	9.6%	2.7%	2.9%	3.5%
Colombia	10.5%	10.0%	9.8%	3.7%	4.0%	4.0%
France	9.0%	9.1%	9.0%	1.8%	1.8%	1.6%
United Arab Emirates	10.4%	10.2%	10.2%	3.1%	3.4%	3.6%
United Kingdom	9.0%	8.8%	8.8%	1.7%	1.9%	2.3%
Egypt	11.8%	11.4%	12.5%	6.0%	6.0%	4.6%
Range of rates in other countries	9.1% - 11.7%	9.1% - 12.8%	9.0% - 13.8%	2.3% - 6.8%	2.2% - 7.0%	2.4% - 4.3%