Pensions and Post-Employment Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Schedule Actuarial Results Related to Pension and Other Post Retirement Benefits

For the years ended

December 31, 2021, 2020 and 2019, the effects of pension plans and other post-employment benefits are summarized as follows:


	Pensions									Other benefits								Total
Net period cost (income):	2021			2020			2019			2021			2020			2019		2021			2020			2019
Recorded in operating costs and expenses
Service cost	$	9			10			10			3			2			2		12			12			12
Past service cost		—			(2	)		1			—			1			—		—			(1	)		1
Settlements and curtailments		(1	)		—			(3	)		(1	)		(1	)		—		(2	)		(1	)		(3	)

		8			8			8			2			2			2		10			10			10

Recorded in other financial expenses
Net interest cost		26			28			34			5			5			5		31			33			39

Recorded in other comprehensive income
Actuarial (gains) losses for the period		(257	)		181			203			(6	)		18			7		(263	)		199			210

	$	(223	)		217			245			1			25			14		(222	)		242			259

Summary of Actuarial (Gains) Losses

For

the years

2021

2020

and

2019

, actuarial (gains) losses for the period were generated by the following main factors as follows:


	2021			2020		2019

Actuarial (gains) losses due to experience	$	(87	)		1		5
Actuarial (gains) losses due to demographic assumptions		20			18		(11	)
Actuarial (gains) losses due financial assumptions		(196	)		180		216

	$	(263	)		199		210

2021

, net actuarial gains due to financial assumptions were mainly driven by moderate increases in the discount rates applicable to the calculation of the benefits’ obligations in the United Kingdom, the United States, Germany and Mexico, as market interest rates increased in

2021

as compared to

2020

. In addition, there were significant reduction effects in the net projected liability related to adjustments due to experience in the United Kingdom, the United States and Germany for a combined amount of $

. Moreover, the net projected liability significantly decreased by actual returns in plan assets higher than estimated returns for a total of $

122

, of which $

refers to the United Kingdom, $

to the United States and $

to other countries, partially offset by actuarial losses due to demographic assumption of $

, of which $

refers to the United Kingdom.

Disclosure of Net Defined Benefit Liability (Asset)

of December 31, 2021 and 2020, the reconciliation of the actuarial benefits’ obligations and pension plan assets, are presented as follows


	Pensions						Other benefits						Total
	2021			2020			2021			2020			2021			2020
Change in benefits obligation:
Projected benefit obligation at beginning of the period	$	2,928			2,651			105			87			3,033			2,738
Service cost		9			10			3			2			12			12
Interest cost		62			70			5			5			67			75
Actuarial (gains) losses		(134	)		258			(6	)		18			(140	)		276
Additions through business combinations		—			1			—			—			—			1
Settlements and curtailments		(1	)		—			(1	)		(1	)		(2	)		(1	)
Plan amendments		—			(2	)		—			1			—			(1	)
Benefits paid		(132	)		(140	)		(7	)		(6	)		(139	)		(146	)
Foreign currency translation		(47	)		80			(1	)		(1	)		(48	)		79

Projected benefit obligation at end of the period		2,685			2,928			98			105			2,783			3,033

Change in plan assets:
Fair value of plan assets at beginning of the period		1,693			1,599			1			1			1,694			1,600
Return on plan assets		36			42			—			—			36			42
Actuarial gains		123			77			—			—			123			77
Employer contributions		78			75			7			6			85			81
Benefits paid		(132	)		(140	)		(7	)		(6	)		(139	)		(146	)
Foreign currency translation		(15	)		40			—			—			(15	)		40

Fair value of plan assets at end of the period		1,783			1,693			1			1			1,784			1,694

Net projected liability in the statement of financial position	$	902			1,235			97			104			999			1,339

Summary of Plan Assets Measured at Estimated Fair Value

As of December 31, 2021 and 2020, based on the hierarchy of fair values, plan assets are detailed as follows:


	2021								2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total


Cash	$	33		—		—		33	$	44		—		—		44
Investments in corporate bonds		1		432		—		433		1		474		—		475
Investments in government bonds		85		393		—		478		86		371		—		457

Total fixed-income securities		119		825		—		944		131		845		—		976

Investment in marketable securities		380		109		—		489		341		89		—		430
Other investments and private funds		163		88		100		351		146		55		87		288

Total variable-income securities		543		197		100		840		487		144		87		718

Total plan assets	$	662		1,022		100		1,784	$	618		989		87		1,694

Summary of Significant Assumptions Used in the Determination of the Benefit Obligation

The most significant assumptions used in the determination of the benefit obligation were as follows:


	2021											2020
	Mexico			United States			United Kingdom			Range of rates in other countries		Mexico			United States			United Kingdom			Rates ranges in other countries
Discount rates		9.25	%		2.90	%		1.90	%		0.4% – 9.3%		7.80	%		2.60	%		1.50	%		0.2% – 9.0%
Rate of return on plan assets		9.25	%		2.90	%		1.90	%		0.4% – 9.3%		7.80	%		2.60	%		1.50	%		0.2% – 9.0%
Rate of salary increases		4.50	%		—			3.35	%		2.3% – 7.3%		4.50	%		—			3.00	%		2.3% – 6.8%

Schedule of Estimated Payments for Pensions and Other Post-Employment Benefits

of December 31, 2021, estimated payments for pensions and other post-employment benefits over the next 10 years were as follows:


	Estimated payments

2022	$	155
2023		139
2024		140
2025		142
2026 – 2031		850

Aggregate Projected Benefit Obligation for Pension Plans and Other Post-Employment Benefits and the Plan Assets by Country

As of December 31, 2021 and

2020

, the aggregate projected benefit obligation (“PBO”) for pension plans and other post-employment benefits and the plan assets by country were as follows:


	2021						2020
	PBO		Assets		Deficit		PBO		Assets		Deficit

Mexico	$	200		38		162	$	216		29		187
United States		270		226		44		305		222		83
United Kingdom 1		1,794		1,273		521		1,925		1,214		711
Germany		180		7		173		219		8		211
Other countries		339		240		99		368		221		147

	$	2,783		1,784		999	$	3,033		1,694		1,339

Applicable regulation in the United Kingdom requires to maintain plan assets at a level similar to that of the obligations. Beginning in 2012, the pension fund started to receive annual dividends from a limited partnership (the “Partnership”), whose assets, transferred by CEMEX UK of an approximate value of $553, are leased back to CEMEX UK. The Partnership is owned, controlled and consolidated by CEMEX UK. The annual dividends received by the pension funds in 2021, 2020 and 2019, which increase at a 5% rate per year, were £22.3 ($30), £21.3 ($29) and £20.3 ($27), respectively. In 2037, on expiry of the arrangement, the Partnership will be terminated and under the terms of the agreement, the remaining assets will be distributed to CEMEX UK. Distributions from the Partnership to the pension fund are considered as employer contributions to plan assets in the period in which they occur.

Schedule of Sensitivity Analysis of Pension and Other Post Employment Benefits

For the year ended December 31, 2021, CEMEX performed sensitivity analyses on the most significant assumptions that affect the PBO, considering reasonable independent changes of plus or minus 50 basis points in each of these assumptions. The increase (decrease) that would have resulted in the PBO of pensions and other post-employment benefits as of December 31, 2021 are shown below:


	Pensions						Other benefits						Total
Assumptions:	+50 bps			-50 bps			+50 bps			-50 bps			+50 bps			-50 bps

Discount Rate Sensitivity	$	(178	)		200			(5	)		5			(183	)		205
Salary Increase Rate Sensitivity		6			(5	)		1			(1	)		7			(6	)
Pension Increase Rate Sensitivity		124			(121	)		—			—			124			(121	)