Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Consolidated Goodwill, Intangible Assets and Deferred Charges

As of December 31, 2018 and 2017, consolidated goodwill, intangible assets and deferred charges were summarized as follows:


		2018								2017
		Cost		Accumulated amortization			Carrying amount			Cost		Accumulated amortization			Carrying amount
Intangible assets of indefinite useful life:
Goodwill	Ps		194,779		—			194,779	Ps		195,474		—			195,474
Intangible assets of definite useful life:
Extraction rights			38,881		(7,017	)		31,864			39,603		(6,480	)		33,123
Industrial property and trademarks			864		(397	)		467			929		(364	)		565
Customer relationships			3,859		(3,859	)		—			3,859		(3,852	)		7
Mining projects			834		(107	)		727			797		(96	)		701
Others intangible assets			18,048		(11,287	)		6,761			14,941		(9,902	)		5,039

	Ps		257,265		(22,667	)		234,598	Ps		255,603		(20,694	)		234,909

Summary of Changes in Consolidated goodwill

Changes in consolidated goodwill in 2018, 2017 and 2016, were as follows:


		2018			2017			2016
Balance at beginning of period	Ps		195,474			206,319			184,156
Business combinations			309			1,965			—
Disposals, net (note 4.3)			—			—			(3,340	)
Reclassification to assets held for sale and other current assets (notes 4.2, 4.3 and 12)			(439	)		(1,804	)		(9,734	)
Impairment losses			—			(1,920	)		—
Foreign currency translation effects			(565	)		(9,086	)		35,237

Balance at end of period	Ps		194,779			195,474			206,319

Summary of Changes in Intangible Asset

Changes in intangible assets of definite life in 2018, 2017 and 2016, were as follows:


		2018
		Extraction rights			Industrial property and trademarks			Customer relations			Mining projects			Others¹			Total
Balance at beginning of period	Ps		33,123			565			7			701			5,039			39,435
Additions (disposals), net¹			(219	)		(32	)		—			120			2,913			2,782
Reclassifications (notes 4.1, 4.2 and 12)			(223	)		—			—			—			6			(217	)
Amortization for the period			(626	)		(93	)		(7	)		(12	)		(1,313	)		(2,051	)
Impairment losses			(186	)		—			—			—			—			(186	)
Foreign currency translation effects			(5	)		27			—			(82	)		116			56

Balance at the end of period	Ps		31,864			467			—			727			6,761			39,819


		2017
		Extraction rights			Industrial property and trademarks			Customer relations			Mining projects			Others¹			Total			2016
Balance at beginning of period	Ps		35,047			357			259			877			4,648			41,188			36,566
Additions (disposals), net¹			278			(783	)		—			(148	)		424			(229	)		(598	)
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	)		(1,950	)
Impairment losses			(38	)		—			—			—			(12	)		(50	)		(25	)
Foreign currency translation effects			(1,448	)		1,101			—			(20	)		881			514			7,195

Balance at the end of period	Ps		33,123			565			7			701			5,039			39,435			41,188

As of December 31, 2018 and 2017, “Others” includes the carrying amount of internal-use software of Ps4,459 and Ps2,981, 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 Ps2,583 in 2018, Ps1,422 in 2017 and Ps769 in 2016.

Summary of Goodwill Balances Allocated by Operating Segment

As of December 31, 2018 and 2017, goodwill balances allocated by operating segment were as follows:


		2018		2017
Mexico	Ps		7,371		7,371
United States			152,486		152,486
Europe
Spain			10,270		10,000
United Kingdom			6,367		6,335
France			4,154		4,796
Czech Republic			589		709
South, Central America and the Caribbean
Colombia			5,874		6,146
Dominican Republic			264		279
Caribbean TCL			2,042		2,027
Others South, Central America and the Caribbean¹			972		985
Asia, Middle East and Africa
Philippines			1,751		1,817
United Arab Emirates			1,885		1,769
Egypt			232		232
Others
Other reporting segments²			522		522

	Ps		194,779		195,474

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	2018	2017	2016	2018	2017	2016
United States	8.5%	8.8%	8.6%	2.5%	2.5%	2.5%
Spain	8.8%	9.5%	9.5%	1.7%	1.7%	1.6%
Mexico	9.4%	10.2%	9.8%	3.0%	2.7%	2.9%
Colombia	9.5%	10.5%	10.0%	3.6%	3.7%	4.0%
France	8.4%	9.0%	9.1%	1.6%	1.8%	1.8%
United Arab Emirates	11.0%	10.4%	10.2%	2.9%	3.1%	3.4%
United Kingdom	8.4%	9.0%	8.8%	1.6%	1.7%	1.9%
Egypt	10.8%	11.8%	11.4%	6.0%	6.0%	6.0%
Range of rates in other countries	8.5% - 13.3%	9.1% - 11.7%	9.1% - 12.8%	2.5% - 6.9%	2.3% - 6.8%	2.2% - 7.0%