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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Debt Summarized by Interest Rates and Currencies

As of December 31, 2017 and 2016, CEMEX´s consolidated debt summarized by interest rates and currencies, was as follow:


		2017									2016
		Short-term			Long-term			Total			Short-term			Long-term			Total
Floating rate debt	Ps		7,282			53,389			60,671	Ps		519			64,550			65,069
Fixed rate debt			9,691			123,633			133,324			703			170,466			171,169

	Ps		16,973			177,022			193,995	Ps		1,222			235,016			236,238

Effective rate¹
Floating rate			6.1	%		3.0	%					9.7	%		4.4	%
Fixed rate			4.8	%		5.7	%					4.4	%		6.5	%


		2017										2016
Currency		Short- term		Long- term		Total		Effective rate¹				Short- term		Long- term		Total		Effective rate¹
Dollars	Ps		6,206		107,508		113,714		5.9	%	Ps		114		179,675		179,789		6.3	%
Euros			9,705		54,906		64,611		3.5	%			50		55,292		55,342		4.3	%
Pounds			—		9,141		9,141		2.6	%			—		—		—		—
Philippine pesos			—		5,408		5,408		4.6	%			—		—		—		—
Pesos			—		—		—		—				648		—		648		4.4	%
Other currencies			1,062		59		1,121		6.2	%			410		49		459		10.2	%

	Ps		16,973		177,022		193,995				Ps		1,222		235,016		236,238

1	In 2017 and 2016, represents the weighted average interest rate of the related debt agreements.

Summary of Consolidated Debt by Type of Instrument

As of December 31, 2017 and 2016, CEMEX´s consolidated debt summarized by type of instrument, was as follow:


2017		Short- term		Long- term			2016		Short- term		Long- term
Bank loans							Bank loans
Loans in foreign countries, 2018 to 2022	Ps		910		5,439		Loans in foreign countries, 2017 to 2022	Ps		261		1,090
Syndicated loans, 2018 to 2020			—		50,132		Syndicated loans, 2017 to 2020			36		57,032

			910		55,571					297		58,122

Notes payable							Notes payable
Notes payable in Mexico, 2018			—		—		Notes payable in Mexico, 2017			—		648
Medium-term notes, 2018 to 2026			224		133,949		Medium-term notes, 2017 to 2026			—		173,656
Other notes payable, 2018 to 2025			154		3,187		Other notes payable, 2017 to 2025			173		3,342

			378		137,136					173		177,646

Total bank loans and notes payable			1,288		192,707		Total bank loans and notes payable			470		235,768
Current maturities			15,685		(15,685	)	Current maturities			752		(752	)

	Ps		16,973		177,022			Ps		1,222		235,016

Summary of Changes in Consolidated Debt

Changes in consolidated debt for the years ended December 31, 2017, 2016 and 2015 were as follows:


		2017			2016			2015
Debt at beginning of year	Ps		236,238			229,343			205,834
Proceeds from new debt instruments			93,620			48,748			52,764
Debt repayments			(128,411	)		(85,798	)		(64,237	)
Foreign currency translation and inflation effects			(7,452	)		43,945			34,982

Debt at end of year	Ps		193,995			236,238			229,343

Summary of Long Term Notes Payable

As of December 31, 2017 and 2016, CEMEX’s long-term notes payable are detailed as follows:


Description	Date of issuance		Issuer^{1, 2}		Currency		Principal amount		Rate¹		Maturity Date		Repurchased amount US$			Outstanding amount³ US$		2017	2016
April 2026 Notes⁸		16/Mar/16		CEMEX, S.A.B. de C.V.		Dollar		1,000		7.75%		16/Apr/26		—			1,000	Ps 19,568		20,631
July 2025 Notes		02/Apr/03		CEMEX Materials LLC		Dollar		150		7.70%		21/Jul/25		—			150	3,061		3,249
March 2025 Notes		03/Mar/15		CEMEX, S.A.B. de C.V.		Dollar		750		6.125%		05/May/25		—			750	14,691		15,488
January 2025 Notes		11/Sep/14		CEMEX, S.A.B. de C.V.		Dollar		1,100		5.70%		11/Jan/25		(29	)		1,071	20,988		22,124
December 2024 Notes⁴		05/Dec/17		CEMEX, S.A.B. de C.V.		Euro		650		2.75%		05/Dec/24		—			780	15,257		—
June 2024 Notes⁸		14/Jun/16		CEMEX Finance LLC		Euro		400		4.625%		15/Jun/24		—			480	9,390		8,665
April 2024 Notes		01/Apr/14		CEMEX Finance LLC		Dollar		1,000		6.00%		01/Apr/24		(10	)		990	18,924		19,886
March 2023 Notes		03/Mar/15		CEMEX, S.A.B. de C.V.		Euro		550		4.375%		05/Mar/23		—			660	12,938		11,948
October 2022 Notes⁵^, ⁸		12/Oct/12		CEMEX Finance LLC		Dollar		1,500		9.375%		12/Oct/22		(1,500	)		—	—		21,738
January 2022 Notes⁵		11/Sep/14		CEMEX, S.A.B. de C.V.		Euro		400		4.75%		11/Jan/22		—			480	9,434		8,696
April 2021 Notes⁶		01/Apr/14		CEMEX Finance LLC		Euro		400		5.25%		01/Apr/21		(447	)		—	—		8,679
January 2021 Notes⁷^, ⁸		02/Oct/13		CEMEX, S.A.B. de C.V.		Dollar		1,000		7.25%		15/Jan/21		(659	)		341	6,606		14,845
December 2019 Notes⁵^, ⁷^, ⁸		12/Aug/13		CEMEX, S.A.B. de C.V.		Dollar		1,000		6.50%		10/Dec/19		(1,000	)		—	—		14,471
October 2018 Variable Notes⁸		02/Oct/13		CEMEX, S.A.B. de C.V.		Dollar		500		L+475bps		15/Oct/18		(187	)		313	6,154		6,485
November 2017 Notes		30/Nov/07		CEMEX, S.A.B. de C.V.		Peso		627		4.40%		17/Nov/17		(37	)		—	—		648
Other notes payable																		125		93

																		Ps 137,136		177,646

In all applicable cases the issuer refers to CEMEX España, S.A. acting through its Luxembourg Branch. The letter “L” included above refers to LIBOR, which represents the London Inter-Bank Offered Rate, variable rate used in international markets for debt denominated in U.S. dollars. As of December 31, 2017 and 2016, 3-Month LIBOR rate was 1.6943% and 0.9979%, respectively. The contraction “bps” means basis points. One hundred basis points equal 1%.

Unless otherwise indicated, all issuances are fully and unconditionally guaranteed by CEMEX, S.A.B. de C.V., CEMEX México, S.A. de C.V., CEMEX Concretos, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., New Sunward Holding B.V., CEMEX España, S.A., CEMEX Asia, B.V., CEMEX Corp., CEMEX Egyptian Investments, B.V., CEMEX Finance LLC, CEMEX France Gestion, (S.A.S.), CEMEX Research Group AG and CEMEX UK. CEMEX Egyptian Investments II, B.V. and CEMEX Shipping B.V. originally guaranteed the issuances listed above but were merged into CEMEX España, S.A. on October 3, 2016.

3	Presented net of all outstanding notes repurchased and held by CEMEX’s subsidiaries.

4	On December 5, 2017, CEMEX issued €650 of 2.75% senior secured notes due December 5, 2024 (the “December 2024 Notes”). The proceeds will be used to repay other indebtedness.

In connection with tender offers or the execution of call notice, as applicable, on December 10, 2017, CEMEX repurchased the outstanding amount of the December 2019 Notes for an aggregate principal amount of US$611; and on September 25, 2017, CEMEX repurchased US$701 aggregate principal amount of the October 2022 Notes. The notes of the holders that did not tender in the offer for US$343 were redeemed on October 12, 2017. In addition, on November 28, 2017, CEMEX announced its intention to redeem the total outstanding amount of the January 2022 Notes for an aggregate principal amount of €400 (US$480 or Ps9,432) that would be payable on January 10, 2018 and are presented as current maturities of long-term debt in the statement of financial position as of December 31, 2017 (note 26).

6	On May 31, 2017, by means of a tender offer for the April 2021 Notes, CEMEX redeemed the remaining €400 of aggregate principal amount of such notes.

7	On February 28, 2017, by means of a tender offer, CEMEX repurchased US$385 aggregate principal amount of the January 2021 Notes and US$90 of the December 2019 Notes.

During 2016, by means of tender offers, using available funds from the issuance of the April 2026 Notes, the June 2024 Notes, the sale of assets and cash flows provided by operating activities, CEMEX completed the purchase of US$739 principal amount of the October 2022 Notes, the purchase of US$178 principal amount of the October 2018 Variable Notes, the purchase of US$219 principal amount of the December 2019 Notes, and the purchase of US$242 principal amount of the January 2021 Notes.

Schedule of Consolidated Long-Term Debt

The maturities of consolidated long-term debt as of December 31, 2017, were as follows:


		2017
2019	Ps		30
2020			10,175
2021			26,948
2022			19,594
2023 and thereafter.			120,275

	Ps		177,022

Schedule of Lines of Credit

As of December 31, 2017, CEMEX had the following lines of credit, the majority of which are uncommitted, at annual interest rates ranging between 1.25% and 6.50%, depending on the negotiated currency:


		Lines of credit		Available
Other lines of credit in foreign subsidiaries	Ps		9,506		7,237
Other lines of credit from banks			9,309		8,169

	Ps		18,815		15,406

Summary of Margin over LIBOR Depending on Leverage Ration

All tranches under the 2017 Credit Agreement have substantially the same terms, including an applicable margin over LIBOR or EURIBOR, as applicable, of between 125 to 350 basis points, depending on the leverage ratio (as defined below) of CEMEX, as follows:


Consolidated leverage ratio		Applicable margin
> = 5.50x		350 bps
< 5.00x > 4.50x		300 bps
< 4.50x > 4.00x		250 bps
< 4.00x > 3.50x		212.5 bps
< 3.50x > 3.00x		175 bps
< 3.00x > 2.50x		150 bps
< 2.50x		125 bps

Summary of Coverage Ratio and Leverage Ratio

As of December 31, 2017, CEMEX must comply with a Coverage ratio and a Leverage ratio for each period of four consecutive fiscal quarters as follows:


Period	Coverage ratio		Period	Leverage ratio
For the period ending on December 31, 2017 up to and including the period ending on March 31, 2020		> = 2.50	For the period ending on December 31, 2017 up to and including the period ending on March 31, 2018		< = 5.25
			For the period ending on June 30, 2018 up to and including the period ending on September 30, 2018		< = 5.00
For the period ending on June 30, 2020 and each subsequent reference period		> = 2.75	For the period ending on December 31, 2018 up to and including the period ending on March 31, 2019		< = 4.75
			For the period ending on June 30, 2019 up to and including the period ending on March 31, 2020		< = 4.50
			For the period ending on June 30, 2020 and each subsequent reference period		< = 4.25

Summary of Consolidated Financial Ratios

The main consolidated financial ratios as of December 31, 2017, 2016 and 2015 were as follows:

Consolidated financial ratios

2017

2016

2015

Leverage ratio^{1, 2}

Limit

< = 5.25

< = 6.00

Calculation

3.85

4.22

5.21

Coverage ratio³

Limit

> = 2.50

> = 1.85

Calculation

3.46

3.18

2.61

The leverage ratio is calculated in pesos by dividing “Funded debt” by pro forma Operating EBITDA for the last twelve months as of the calculation date. Funded debt equals debt, as reported in the statement of financial position, excluding finance leases, components of liability of convertible subordinated notes, plus perpetual debentures and guarantees, plus or minus the fair value of derivative financial instruments, as applicable, among other adjustments.

Pro forma Operating EBITDA represents, all calculated in pesos, Operating EBITDA for the last twelve months as of the calculation date, plus the portion of Operating EBITDA referring to such twelve-month period of any significant acquisition made in the period before its consolidation in CEMEX, minus Operating EBITDA referring to such twelve-month period of any significant disposal that had already been liquidated.

3	The coverage ratio is calculated in pesos using the amounts from the financial statements, by dividing the pro forma Operating EBITDA by the financial expense for the last twelve months as of the calculation date. Financial expense includes interest accrued on the perpetual debentures.

Summary of Other Financial Obligations

As of December 31, 2017 and 2016, other financial obligations in the consolidated statement of financial position are detailed as follows:


		2017							2016
		Short-term		Long-term		Total			Short-term		Long-term		Total
I. Convertible subordinated notes due 2020	Ps		—		9,985		9,985	Ps		—		10,417		10,417
II. Convertible subordinated notes due 2018			7,115		—		7,115			—		13,575		13,575
III. Mandatorily convertible securities 2019			323		371		694			278		689		967
IV. Liabilities secured with accounts receivable			11,313		—		11,313			11,095		—		11,095
V. Finance leases			611		2,503		3,114			285		1,291		1,576

	Ps		19,362		12,859		32,221	Ps		11,658		25,972		37,630

Summary of Carrying Amounts and Fair Value of Financial Instruments

As of December 31, 2017 and 2016, the carrying amounts of financial assets and liabilities and their respective fair values were as follows:


		2017					2016
		Carrying amount		Fair value			Carrying amount		Fair value
Financial assets
Derivative instruments (notes 13.2 and 16.4)	Ps		794		794	Ps		1,900		1,900
Other investments and non-current accounts receivable (note 13.2)			4,964		4,964			5,220		5,220

	Ps		5,758		5,758	Ps		7,120		7,120

Financial liabilities
Long-term debt (note 16.1)	Ps		177,022		184,220	Ps		235,016		241,968
Other financial obligations (note 16.2)			12,859		13,381			25,972		27,419
Derivative instruments (notes 16.4 and 17)			402		402			818		818

	Ps		190,283		198,003	Ps		261,806		270,205

Summary of Fair Value of Derivative Financial Instruments at Fair Value Hierarchy

As of December 31, 2017 and 2016, assets and liabilities carried at fair value in the consolidated statements of financial position are included in the following fair value hierarchy categories:


2017		Level 1		Level 2		Level 3		Total
Assets measured at fair value
Derivative instruments (notes 13.2 and 16.4)	Ps		—		794		—		794
Investments available-for-sale (note 13.2)			275		—		—		275
Investments held for trading (note 13.2)			—		77		—		77

	Ps		275		871		—		1,146

Liabilities measured at fair value
Derivative instruments (notes 16.4 and 17)	Ps		—		402		—		402

2016		Level 1		Level 2		Level 3		Total
Assets measured at fair value
Derivative instruments (notes 13.2 and 16.4)	Ps		—		1,900		—		1,900
Investments available-for-sale (note 13.2)			491		—		—		491
Investments held for trading (note 13.2)			—		157		—		157

	Ps		491		2,057		—		2,548

Liabilities measured at fair value
Derivative instruments (notes 16.4 and 17)	Ps		—		818		—		818

Summary of Derivative Financial Instruments

As of December 31, 2017 and 2016, the notional amounts and fair values of CEMEX’s derivative instruments were as follows:


		2017					2016
(U.S. dollars millions)		Notional amount		Fair value			Notional amount		Fair value
I. Net investment hedge	US$		1,160		47			—		—
II. Foreign exchange forwards related to forecasted transactions			381		3			80		—
III. Equity forwards on third party shares			168		7			—		—
IV. Interest rate swaps			137		16			147		23
V. Fuels price hedging			72		20			77		15
VI. 2019 Mandatorily Convertible Securities and options on the Parent Company’s own shares			—		(20	)		576		26

	US$		1,918		73			880		64

Summary of Consolidated Net Monetary Assets (Liabilities) by Currency

As of December 31, 2017 and 2016, CEMEX’s consolidated net monetary assets (liabilities) by currency are as follows:


	2017
	Mexico			United States			Europe			South, Central America and the Caribbean			Asia, Middle East and Africa			Others ¹			Total
Monetary assets		Ps 11,798			9,453			14,182			7,347			9,780			5,163			57,723
Monetary liabilities		17,505			32,158			45,675			12,016			11,522			221,579			340,455

Net monetary assets (liabilities)²		Ps (5,707)			(22,705	)		(31,493	)		(4,669	)		(1,742	)		(216,416	)		(282,732	)

Out of which:
Dollars		Ps(1,097)			(22,710	)		39			(126	)		221			(133,530	)		(157,203	)
Pesos		(4,610	)		4			24			—			—			(7,745	)		(12,327	)
Euros		—			—			(10,155	)		2			—			(58,452	)		(68,605	)
Pounds		—			—			(19,358	)		—			—			(9,119	)		(28,477	)
Other currencies		—			1			(2,043	)		(4,545	)		(1,963	)		(7,570	)		(16,120	)

		Ps(5,707)			(22,705)			(31,493	)		(4,669	)		(1,742	)		(216,416	)		(282,732	)


	2016
	Mexico		United States		Europe		South, Central America and the Caribbean		Asia, Middle East and Africa		Others ¹		Total
Monetary assets		Ps 10,261		26,685		12,724		6,132		13,101		11,836		80,739
Monetary liabilities		10,564		33,145		42,336		9,130		11,305		277,117		383,597

Net monetary assets (liabilities)²		Ps (303)		(6,460)		(29,612)		(2,998)		1,796		(265,281)		(302,858)

Out of which:
Dollars		Ps (483)		(6,463)		38		35		364		(214,751)		(221,260)
Pesos		180		3		—		—		—		(3,395)		(3,212)
Euros		—		—		(9,465)		—		—		(48,470)		(57,935)
Pounds		—		—		(14,408)		—		—		—		(14,408)
Other currencies		—		—		(5,777)		(3,033)		1,432		1,335		(6,043)

		Ps (303)		(6,460)		(29,612)		(2,998)		1,796		(265,281)		(302,858)

1	Includes the Parent Company, CEMEX’s financing subsidiaries, as well as Neoris N.V., among other entities.

2	Includes assets held for sale and liabilities directly related with these assets considering that such items will be realized in the short-term.