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Pensions and Post-Employment Benefits (Tables)

12 Months Ended

Dec. 31, 2022

Schedule Actuarial Results Related to Pension and Other Post Retirement Benefits

For the years ended December 31, 2022, 2021 and 2020, the effects of pension plans and other post-employment benefits are summarized as follows:


	Pensions									Other benefits									Total
Net period cost (income):	2022			2021			2020			2022			2021			2020			2022			2021			2020
Recorded in operating costs and expenses
Service cost	$	8			9			9			4			3			2			12			12			11
Past service cost		1			—			(2	)		—			—			1			1			—			(1	)
Settlements and curtailments		—			(1	)		—			—			(1	)		(1	)		—			(2	)		(1	)

		9			8			7			4			2			2			13			10			9

Recorded in other financial expenses
Net interest cost		23			26			27			6			5			5			29			30			32

Recorded in other comprehensive income
Actuarial (gains) losses for the period		(166	)		(257	)		181			(10	)		(6	)		18			(176	)		(263	)		199

	$	(134	)		(223	)		215			—			1			25			(134	)		(223	)		240

Summary of Actuarial (Gains) Losses

For the years 2022, 2021 and 2020, actuarial (gains) losses for the period were generated by the following main factors as follows:


	2022			2021			2020
Actuarial (gains) losses due to experience	$	96			(87	)		1
Actuarial (gains) losses due to demographic assumptions		(2	)		20			18
Actuarial (gains) losses due financial assumptions		(270	)		(196	)		180

	$	(176	)		(263	)		199

In 2022, net actuarial gains due to financial assumptions were mainly driven by a general increase in the discount rates applicable to the calculation of the benefits’ obligations mainly in the United Kingdom, the United States,

Disclosure of Net Defined Benefit Liability (Asset)

As of December 31, 2022 and 2021, the reconciliation of the actuarial benefits’ obligations and pension plan assets, are presented as follows:


	Pensions						Other benefits						Total
	2022			2021			2022			2021			2022			2021
Change in benefits obligation:
Projected benefit obligation at beginning of the period	$	2,685			2,928			98			105			2,783			3,033
Service cost		8			9			4			3			12			12
Interest cost		66			62			6			5			72			67
Actuarial gains		(632	)		(134	)		(10	)		(6	)		(642	)		(140	)
Initial valuation from new plan		13			—			—			—			13			—
Reduction from disposal of assets 1		(6	)		—			—			—			(6	)		—
Settlements and curtailments		—			(1	)		—			(1	)		—			(2	)
Plan amendments		1			—			—			—			1			—
Benefits paid		(130	)		(132	)		(7	)		(7	)		(137	)		(139	)
Foreign currency translation		(194	)		(47	)		1			(1	)		(193	)		(48	)

Projected benefit obligation at end of the period		1,811			2,685			92			98			1,903			2,783


Change in plan assets:
Fair value of plan assets at beginning of the period		1,783			1,693			1			1			1,784			1,694
Return on plan assets		43			36			—			—			43			36
Actuarial (losses) gains		(466	)		123			—			—			(466	)		123
Employer contributions		98			78			7			7			105			85
Initial valuation from new plan		13			—			—			—			13			—
Benefits paid		(132	)		(132	)		(7	)		(7	)		(139	)		(139	)
Foreign currency translation		(132	)		(15	)		—			—			(132	)		(15	)

Fair value of plan assets at end of the period		1,207			1,783			1			1			1,208			1,784

Net projected liability in the statement of financial position	$	604			902			91			97			695			999

1	In connection with the sale of Neoris’ 65% stake as described in note 4.2.

Summary of Plan Assets Measured at Estimated Fair Value

As of December 31, 2022 and 2021, based on the hierarchy of fair values, plan assets are detailed as follows:


	2022								2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash	$	38		—		—		38	$	33		—		—		33
Investments in corporate bonds		7		289		—		296		1		432		—		433
Investments in government bonds		90		266		—		356		85		393		—		478

Total fixed-income securities		135		555		—		690		119		825		—		944

Investment in marketable securities		226		42		—		268		380		109		—		489
Other investments and private funds		91		42		117		250		163		88		100		351

Total variable-income securities		317		84		117		518		543		197		100		840

Total plan assets	$	452		639		117		1,208	$	662		1,022		100		1,784

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:


	2022										2021
	Mexico			United States			United Kingdom			Range of rates in other countries	Mexico			United States			United Kingdom			Rates ranges in other countries
Discount rates		10.50	%		5.50	%		5.00	%	3.6%–13.0%		9.25	%		2.90	%		1.90	%		0.4%–9.3%
Rate of return on plan assets		10.50	%		5.50	%		5.00	%	3.6%–13.0%		9.25	%		2.90	%		1.90	%		0.4%–9.3%
Rate of salary increases		4.50	%		—			3.25	%	2.5%–7.3%		4.50	%		—			3.35	%		2.3%–7.3%

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

As of December 31, 2022, estimated payments for pensions and other post-employment benefits over the next 10 years were as follows:


	Estimated payments
2023	$	145
2024		139
2025		140
2026		140
2027 – 2032		821

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

As of December 31, 2022 and 2021, the aggregate projected benefit obligation (“PBO”) for pension plans and other post-employment benefits and the plan assets by country were as follows:


	2022						2021
	PBO		Assets		Deficit		PBO		Assets		Deficit
Mexico	$	220		25		195	$	200		38		162
United States		194		166		28		270		226		44
United Kingdom 1		1,062		791		271		1,794		1,273		521
Germany		134		6		128		180		7		173
Other countries		293		220		73		339		240		99

	$	1,903		1,208		695	$	2,783		1,784		999

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 2022, 2021 and 2020, which increase at a 5% rate per year, were £22.3 ($30), £22.3 ($30) and £21.3 ($29), 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, 2022, 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, 2022 are shown below:


	Pensions						Other benefits						Total
Assumptions:	+50 bps			-50 bps			+50 bps			-50 bps			+50 bps			-50 bps
Discount Rate Sensitivity	$	(91	)		100			(3	)		3			(94	)		103
Salary Increase Rate Sensitivity		5			(4	)		—			(1	)		5			(5	)
Pension Increase Rate Sensitivity		66			(63	)		—			—			66			(63	)