Operating Expenses

12 Months Ended

Dec. 31, 2024

5 )	OPERATING EXPENSES

Administrative and selling expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization, related to managerial and back-office activities of the Company’s management, as well as selling activities, respectively. 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 2024, 2023 and 2022 are as follows:


		2024		2023		2022
Administrative expenses 1, 2	$		1,336		1,354		1,046
Selling expenses 2			438		393		344

Administrative and selling expenses			1,774		1,747		1,390
Distribution and logistics expenses			1,837		1,869		1,734

Operating expenses	$		3,611		3,616		3,124

1	All significant research and development activities are executed by several internal areas of Cemex as part of their daily activities. In 2024, 2023 and 2022, the total combined expenses of these departments recognized within administrative expenses were $59, $55, and $42, respectively.

2	In 2024, 2023 and 2022, administrative expenses include depreciation and amortization of $173, $161 and $138, respectively, and selling expenses include depreciation and amortization of $54 in 2024, $44 in 2023 and $40 in 2022.

Consolidated operating expenses during 2024, 2023 and 2022 by nature are as follows:


		2024		2023		2022
Transportation costs	$		1,667		1,715		1,592
Payroll			1,125		1,096		935
Professional legal, accounting and advisory services			274		277		185
Depreciation and amortization			227		205		178
Maintenance, repairs and supplies			111		98		83
Office supplies, utilities and rental expenses			80		85		71
Expected credit losses			15		11		9
Other operating expenses			112		129		71

	$		3,611		3,616		3,124