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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Debt Summarized by Interest Rates and Currencies

As of December 31, 2018 and 2017, CEMEX’s consolidated debt summarized by interest rates and currencies, was as follows:


		2018									2017
		Short-term			Long-term			Total			Short-term			Long-term			Total
Floating rate debt	Ps		262			66,819			67,081	Ps		7,282			53,389			60,671
Fixed rate debt			621			115,255			115,876			9,691			123,633			133,324

	Ps		883			182,074			182,957	Ps		16,973			177,022			193,995

Effective rate¹
Floating rate			7.8	%		3.6	%					6.1	%		3.0	%
Fixed rate			4.2	%		5.6	%					4.8	%		5.7	%


	2018									2017
Currency	Short- term		Long- term		Total		Effective rate¹			Short- term		Long- term		Total		Effective rate¹
Dollars		589		114,696		115,285		5.8	%		6,206		107,508		113,714		5.9	%
Euros		12		52,368		52,380		3.3	%		9,705		54,906		64,611		3.5	%
Pounds		—		8,631		8,631		2.9	%		—		9,141		9,141		2.6	%
Philippine pesos		52		5,041		5,093		4.6	%		—		5,408		5,408		4.6	%
Other currencies		230		1,338		1,568		5.9	%		1,062		59		1,121		6.2	%

		883		182,074		182,957					16,973		177,022		193,995

1	In 2018 and 2017, represents the weighted-average nominal interest rate of the related debt agreements.

Summary of Consolidated Debt by Type of Instrument

As of December 31, 2018 and 2017, CEMEX’s consolidated debt summarized by type of instrument, was as follow:


2018		Short- term		Long- term			2017		Short- term		Long- term
Bank loans							Bank loans
Loans in foreign countries, 2019 to 2024	Ps		614		6,436		Loans in foreign countries, 2018 to 2022	Ps		910		5,439
Syndicated loans, 2020 to 2022			—		62,460		Syndicated loans, 2018 to 2022			—		50,132

			614		68,896					910		55,571

Notes payable							Notes payable
Medium-term notes, 2023 to 2026			—		110,157		Medium-term notes, 2018 to 2026			224		133,949
Other notes payable, 2019 to 2025			140		3,150		Other notes payable, 2018 to 2025			154		3,187

			140		113,307					378		137,136

Total bank loans and notes payable			754		182,203		Total bank loans and notes payable			1,288		192,707
Current maturities			129		(129	)	Current maturities			15,685		(15,685	)

	Ps		883		182,074			Ps		16,973		177,022

Summary of Changes in Consolidated Debt

Changes in consolidated debt for the years ended December 31, 2018, 2017 and 2016 were as follows:


		2018			2017			2016
Debt at beginning of year	Ps		193,995			236,238			229,343
Proceeds from new debt instruments			43,765			93,620			48,748
Debt repayments			(53,025	)		(131,446	)		(89,792	)
Foreign currency translation and accretion effects			(1,778	)		(4,417	)		47,939

Debt at end of year	Ps		182,957			193,995			236,238

Summary of Non-Current Notes Payable

As of December 31, 2018 and 2017, non-current notes payable for Ps113,307 and Ps137,136, respectively, was detailed as follows:


Description	Date of issuance		Issuer^{1, 2}		Currency		Principal amount		Rate¹			Maturity Date		Repurchased amount US$			Outstanding amount³ US$		2018		2017
April 2026 Notes⁸		16/Mar/16		CEMEX, S.A.B. de C.V.		Dollar		1,000		7.75	%		16/Apr/26		—			1,000		Ps19,575		19,568
July 2025 Notes		02/Apr/03		CEMEX Materials LLC		Dollar		150		7.70	%		21/Jul/25		—			150		3,042		3,061
March 2025 Notes		03/Mar/15		CEMEX, S.A.B. de C.V.		Dollar		750		6.125	%		05/May/25		—			750		14,696		14,691
January 2025 Notes		11/Sep/14		CEMEX, S.A.B. de C.V.		Dollar		1,100		5.70	%		11/Jan/25		(29	)		1,071		20,994		20,988
December 2024 Notes⁷		05/Dec/17		CEMEX, S.A.B. de C.V.		Euro		650		2.75	%		05/Dec/24		—			745		14,572		15,257
June 2024 Notes⁸		14/Jun/16		CEMEX Finance LLC		Euro		400		4.625	%		15/Jun/24		—			458		8,968		9,390
April 2024 Notes		01/Apr/14		CEMEX Finance LLC		Dollar		1,000		6.00	%		01/Apr/24		(10	)		990		18,995		18,924
March 2023 Notes		03/Mar/15		CEMEX, S.A.B. de C.V.		Euro		550		4.375	%		05/Mar/23		—			630		12,356		12,938
October 2022 Notes⁶		12/Oct/12		CEMEX Finance LLC		Dollar		1,500		9.375	%		12/Oct/22		(1,500	)		—		—		—
January 2022 Notes⁴		11/Sep/14		CEMEX, S.A.B. de C.V.		Euro		400		4.75	%		11/Jan/22		(480	)		—		—		9,434
April 2021 Notes⁸		01/Apr/14		CEMEX Finance LLC		Euro		400		5.25	%		01/Apr/21		(480	)		—		—		—
January 2021 Notes^{5, 8}		02/Oct/13		CEMEX, S.A.B. de C.V.		Dollar		1,000		7.25	%		15/Jan/21		(1,000	)		—		—		6,606
December 2019 Notes^{6, 8}		12/Aug/13		CEMEX, S.A.B. de C.V.		Dollar		1,000		6.50	%		10/Dec/19		(1,000	)		—		—		—
October 2018 Variable Notes^5, 8		02/Oct/13		CEMEX, S.A.B. de C.V.		Dollar		500		L+475bps			15/Oct/18		(500	)		—		—		6,154
Other notes payable																				109		125

																			Ps	113,307		137,136

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, 2018 and 2017, 3-Month LIBOR rate was 2.8076% and 1.6943%, 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 Africa & Middle East Investments B.V., CEMEX Finance LLC, CEMEX France Gestion, (S.A.S.), CEMEX Research Group AG and CEMEX UK. In March 2018, CEMEX Egyptian Investments B.V. changed its legal name to CEMEX Africa & Middle East Investments B.V.

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

4	On January 10, 2018, CEMEX completed the purchase of the outstanding amount of the January 2022 Notes for an aggregate principal amount of €400 using available funds from the issuance of the December 2024 Notes by means of an offer communicated on November 28, 2017.

5	In March 2018, CEMEX early redeemed the outstanding amount of the October 2018 Variable Notes and the January 2021 Notes for US$313 and US$341, respectively.

6	In December 2017, CEMEX repurchased the outstanding amount of the December 2019 Notes for an aggregate principal amount of US$611. During September and October 2017, CEMEX repurchased US$1,044 aggregate principal amount of the October 2022 Notes that remained outstanding.

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

In May 2017, CEMEX redeemed the remaining €400 of aggregate principal amount of the April 2021 Notes. Moreover, in February 2017, CEMEX repurchased US$385 aggregate principal amount of the January 2021 Notes and US$90 of the December 2019 Notes. In addition, during 2016, 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$178 principal amount of the October 2018 Variable Notes and US$242 principal amount of the January 2021 Notes, among other debt repurchases incurred that year with those resources.

Schedule of Consolidated Long-Term Debt

The maturities of consolidated long-term debt as of December 31, 2018, were as follows:


		2018
2020	Ps		11,523
2021			23,603
2022			30,175
2023			15,342
2024 and thereafter			101,431

	Ps		182,074

Schedule of Lines of Credit

As of December 31, 2018, CEMEX had the following lines of credit, of which, the only commited portion referes to the revolving credit facility, at annual interest rates ranging between 0.75% and 8.50%, depending on the negotiated currency:


		Lines of credit		Available
Other lines of credit in foreign subsidiaries	Ps		9,440		7,286
Other lines of credit from banks			11,294		8,956
Revolving credit facility			22,303		16,211

	Ps		43,037		32,453

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, 2018, 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, 2018 up to and including the period ending on March 31, 2020		> = 2.50	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		> = 2.75	For the period ending on June 30, 2020 and each subsequent reference period		< = 4.25

Summary of Consolidated Financial Ratios

For the compliance periods ended as of December 31, 2018, 2017 and 2016, under the 2017 Credit Agreement and the 2014 Credit Agreement, as applicable, the main consolidated financial ratios were as follows:

Consolidated financial ratios

2018

2017

2016

Leverage Ratio^{1, 2}

Limit

< = 4.75

< = 5.25

< = 6.00

Calculation

3.84

3.85

4.22

Coverage Ratio³

Limit

> = 2.50

> = 1.85

Calculation

4.41

3.46

3.18

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, 2018 and 2017, other financial obligations in the consolidated statement of financial position are detailed as follows:


		2018							2017
		Short-term		Long-term		Total			Short-term		Long-term		Total
I. Convertible subordinated notes due 2020	Ps		—		10,097		10,097	Ps		—		9,985		9,985
II. Convertible subordinated notes due 2018			—		—		—			7,115		—		7,115
III. Mandatorily convertible securities due 2019			374		—		374			323		371		694
IV. Liabilities secured with accounts receivable			11,770		—		11,770			11,313		—		11,313
V. Finance leases			595		1,931		2,526			611		2,503		3,114

	Ps		12,739		12,028		24,767	Ps		19,362		12,859		32,221

Summary of Carrying Amounts and Fair Value of Financial Instruments

As of December 31, 2018 and 2017, the carrying amounts of financial assets and liabilities and their respective fair values were as follows:


		2018					2017
		Carrying amount		Fair value			Carrying amount		Fair value
Financial assets
Derivative instruments (notes 13.2 and 16.4)	Ps		297		297	Ps		794		794
Other investments and non-current accounts receivable (note 13.2)			4,974		4,974			4,964		4,964

	Ps		5,271		5,271	Ps		5,758		5,758

Financial liabilities
Long-term debt (note 16.1)	Ps		182,074		179,740	Ps		177,022		184,220
Other financial obligations (note 16.2)			12,028		11,924			12,859		13,381
Derivative instruments (notes 16.4 and 17)			406		406			402		402

	Ps		194,508		192,070	Ps		190,283		198,003

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

As of December 31, 2018 and 2017, assets and liabilities carried at fair value in the consolidated statements of financial position are included in the following fair value hierarchy categories:


2018		Level 1		Level 2		Level 3		Total
Assets measured at fair value
Derivative instruments (notes 13.2 and 16.4)	Ps		—		297		—		297
Investments in strategic equity securities (note 13.2)			217		—		—		217
Other investments at fair value through earnings (note 13.2)			—		428		—		428

	Ps		217		725		—		942

Liabilities measured at fair value
Derivative instruments (notes 16.4 and 17)	Ps		—		406		—		406


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 in strategic equity securities (note 13.2)			275		—		—		275
Other investments at fair value through earnings (note 13.2)			—		441		—		441

	Ps		275		1,235		—		1,510

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

Summary of Derivative Financial Instruments

As of December 31, 2018 and 2017, the notional amounts and fair values of CEMEX’s derivative instruments were as follows:


		2018					2017
		Notional amount		Fair value			Notional amount		Fair value
I. Net investment hedge	US$		1,249		2			1,160		47
II. Foreign exchange forwards related to forecasted transactions			—		—			381		3
III. Equity forwards on third party shares			111		2			168		7
IV. Interest rate swaps			1,126		(8	)		137		16
V. Fuel price hedging			122		(14	)		72		20
VI. 2019 Mandatorily Convertible Securities			—		(1	)		—		(20	)

	US$		2,608		(19	)		1,918		73

Summary of Consolidated Net Monetary Assets (Liabilities) by Currency

As of December 31, 2018 and 2017, CEMEX’s consolidated net monetary assets (liabilities) by currency are as follows:


		2018
		Mexico			United States			Europe			South, Central America and the Caribbean			Asia, Middle East and Africa			Others¹			Total
Monetary assets	Ps		8,400			9,961			13,163			6,046			10,216			2,997			50,783
Monetary liabilities			19,798			33,464			40,153			10,841			12,223			200,731			317,210

Net monetary assets (liabilities)²		Ps	(11,398	)		(23,503	)		(26,990	)		(4,795	)		(2,007	)		(197,734	)		(266,427	)

Out of which:
Dollars	Ps		(560	)		(23,507	)		153			(947	)		22			(117,677	)		(142,516	)
Pesos			(10,838	)		4			—			(6	)		—			(5,469	)		(16,309	)
Euros			—			—			(10,571	)		13			40			(52,942	)		(63,460	)
Pounds			—			—			(18,241	)		—			—			(8,609	)		(26,850	)
Other currencies			—			–			1,669			(3,855	)		(2,069	)		(13,037	)		(17,292	)

	Ps		(11,398	)		(23,503	)		(26,990	)		(4,795	)		(2,007	)		(197,734	)		(266,427	)


		2017
		Mexico			United States			Europe			South, Central America and the Caribbean			Asia, Middle East and Africa			Others¹			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	)

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.