Operating Expenses

12 Months Ended

Dec. 31, 2023

6)	OPERATING EXPENSES

Administrative expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization, related to managerial activities and back office for the Company’s management. Sales expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization incurred in sales activities. Distribution and logistics expenses refer to expenses of storage at points of sales, including depreciation and amortization, as well as freight expenses of finished products between plants and points of sale and freight expenses between points of sales and the customers’ facilities.

Consolidated operating expenses by function during 2023, 2022 and 2021 are as follows:


		2023		2022		2021
Administrative expenses 1, 2	$		1,385		1,074		958
Selling expenses 2			411		363		322

Total administrative and selling expenses			1,796		1,437		1,280
Distribution and logistics expenses			1,951		1,824		1,637

Total operating expenses	$		3,747		3,261		2,917

1	All significant research and development activities are executed by several internal areas of Cemex as part of their daily activities. In 2023, 2022 and 2021, the total combined expenses of these departments recognized within administrative expenses were $55, $42 and $44, respectively.

2	In 2023, 2022 and 2021, administrative expenses include depreciation and amortization of $162, $140 and $137, respectively, and selling expenses include depreciation and amortization of $54 in 2023, $51 in 2022 and $49 in 2021.

Consolidated operating expenses during 2023, 2022 and 2021 by nature are as follows:


		2023		2022		2021
Transportation costs	$		1,793		1,676		1,502
Payroll			1,154		1,038		905
Depreciation and amortization			216		191		186
Professional legal, accounting and advisory services			236		145		144
Maintenance, repairs and supplies			99		84		76
Other operating expenses			249		127		104

	$		3,747		3,261		2,917