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Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Consolidated Goodwill, Intangible Assets and Deferred Charges

As of December 31, 2020 and 2019, consolidated goodwill, intangible assets and deferred charges were summarized as follows:


		2020							2019

		Cost		Accumulated amortization			Carrying amount		Cost		Accumulated amortization			Carrying amount
Intangible assets of indefinite useful life:
Goodwill	$		8,506		—			8,506	$	9,562		—			9,562
Intangible assets of definite useful life:
Extraction rights			1,774		(416	)		1,358		1,985		(395	)		1,590
Industrial property and trademarks			44		(20	)		24		42		(18	)		24
Customer relationships			196		(196	)		—		196		(196	)		—
Mining projects			49		(6	)		43		48		(5	)		43
Others intangible assets			1,034		(713	)		321		1,014		(643	)		371

	$		11,603		(1,351	)		10,252	$	12,847		(1,257	)		11,590

Summary of Changes in Consolidated goodwill

Changes in consolidated goodwill for the years ended December 31, 2020, 2019 and 2018, were as follows:


		2020			2019			2018
Balance at beginning of period	$		9,562			9,912			9,948
Business combinations (note 5.1)			2			—			16
Reclassification to assets held for sale (notes 5.2, 5.3 and 13.1)			(9	)		(371	)		(22	)
Impairment losses			(1,020	)		—			—
Foreign currency translation effects			(29	)		21			(30	)

Balance at end of period	$		8,506			9,562			9,912

Summary of Changes in Intangible Asset

Changes in intangible assets of definite life in 2020, 2019 and 2018, were as follows:


		2020
		Extraction rights			Industrial property and trademarks			Mining projects			Others 1			Total
Balance at beginning of period	$		1,590			24			43			371			2,028
Additions (disposals), net 1			(33	)		—			—			37			4
Impairment losses (note 2)			(181	)		—			—			(13	)		(194	)
Business combinations (note 5.1)			—			2			—			5			7
Amortization for the period			(21	)		(2	)		(1	)		(106	)		(130	)
Foreign currency translation effects			3			—			1			27			31

Balance at the end of period	$		1,358			24			43			321			1,746


		2019
		Extraction rights			Industrial property and trademarks			Mining projects			Others 1			Total			2018
Balance at beginning of period	$		1,622			24			37			341			2,024			2,006
Additions (disposals), net 1			(26	)		(6	)		5			108			81			157
Reclassifications (notes 5.2 and 13.1)			—			—			—			(2	)		(2	)		(11	)
Amortization for the period			(8	)		(1	)		(1	)		(114	)		(124	)		(106	)
Impairment losses			—			—			—			—			—			(9	)
Foreign currency translation effects			2			7			2			38			49			(13	)

Balance at the end of period	$		1,590			24			43			371			2,028			2,024

In 2020 and 2019, “Others” includes the carrying amount of

internal-use

software of $213 and $253, 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 $40 in 2020, $102 in 2019 and $133 in 2018.

Summary of Goodwill Balances Allocated by Operating Segment

As of December 31, 2020 and 2019, goodwill balances allocated by Operating Segment were as follows:


		2020		2019
Mexico	$		372		384
United States			6,449		7,469
EMEAA
Spain			463		494
United Kingdom			292		279
France			229		221
Philippines			95		92
United Arab Emirates			96		96
Rest of EMEAA 1			44		42
SCA&C
Colombia			283		296
Caribbean TCL			92		100
Rest of SCA&C 2			64		62
Others
Other reporting segments 3			27		27

	$		8,506		9,562

1	This caption refers to the operating segments in the Czech Republic and Egypt.

2	This caption refers to the operating segments in the Dominican Republic, the Caribbean, Costa Rica and Panama.

3	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

As of December 31, 2020, 2019 and 2018, 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			Long-term growth rates
Groups of CGUs	2020	2019	2018	2020	2019	2018
United States	7.3%	7.8%	8.5%	2.0%	2.5%	2.5%
Spain	7.7%	8.3%	8.8%	1.5%	1.6%	1.7%
United Kingdom	7.4%	8.0%	8.4%	1.6%	1.5%	1.6%
France	7.4%	8.0%	8.4%	1.7%	1.4%	1.6%
Mexico	8.3%	9.0%	9.4%	1.1%	2.4%	3.0%
Colombia	8.4%	8.9%	9.5%	2.5%	3.7%	3.6%
United Arab Emirates	8.3%	8.8%	11.0%	2.6%	2.5%	2.9%
Egypt	10.2%	10.3%	10.8%	5.6%	6.0%	6.0%
Range of rates in other countries	7.2% - 15.5%	8.1% - 11.5%	8.5% - 13.3%	(0.3%) - 6.5%	1.6% - 6.5%	2.3% - 6.9%

Summary Of Operating Segments Presenting Impairment Charges Or Relative Impairment Risk

In relation to the economic assumptions used by the Company described above, the additional impairment losses that would have resulted from the sensitivity analyses derived from independent changes in each of the relevant assumptions, as well as the multiples of Operating EBITDA, in those operating segments that presented impairment charges or relative impairment risk during 2020, are as follows:


				Additional effects of the sensitivity analyses to the charges recognized from the changes in assumptions as of December 31, 2020
Operating segment		Impairment losses recognized		Discount rate +1%		Long- term growth rate –1%		Multiples Operating EBITDA 11.5x
United States	$		1,020		188		—		—