Cost of sales includes depreciation, amortization and depletion of assets involved in production, and expenses related to storage in producing plants, as well as, beginning in 2008, freight expenses of raw material in plants and delivery expenses of CEMEX’s ready-mix concrete business.

For the periods ending December 31, 2002 through 2007, the expenses related to the distribution of the company’s products were classified as selling expenses on the income statement. In 2001, such expenses were recognized partially as part of cost of sales.

Comprehensive financing result includes financial expense, financial income, realized and unrealized gains and losses on derivative financial instruments and marketable securities, foreign exchange results, and the monetary position result.

In October 2009, we completed the sale of our Australian operations for approximately A$2,020 million (approx. US$1,700 million). The consolidated income statements present the results of operations of the Australian assets, net of income tax, for the years 2007, 2008, and 2009 in a single line item as “Discontinued Operations” (see note 3B to the 2011 Annual Report's Financial Statements).

In 2000, a Dutch subsidiary of CEMEX issued preferred stock for US$1.5 billion in connection with the financing required for the CEMEX, Inc. (formerly Southdown) acquisition. After redemptions of preferred stock made during the life of this transaction, the outstanding amount of preferred stock included as minority interest as of December 31, 2001 and 2002, was US$900 million and US$650 million, respectively. In October 2003, CEMEX early redeemed the total outstanding amount of the preferred stock.

In 1998, a subsidiary of CEMEX in Spain issued US$250 million of capital securities. In April 2002, through a tender offer, US$184 million of capital securities were redeemed. The balance outstanding as of December 31, 2002 and 2003, was US$66 million and was liquidated during 2004. This transaction was recorded as minority interest during its tenure.

As of December 31, 2006, 2007, 2008, 2009, 2010, and 2011, non-controlling interest includes US$1,250 million, US$3,065 million, US$3,020 million, US$3,045 million, US$1,320 million and US$938 million, respectively, of aggregate notional amounts of perpetual debentures issued by consolidated entities. For accounting purposes, these debentures represent equity instruments (see note 16D to the 2011 Annual Report's Financial Statements).

The number of ADSs outstanding represents the total ADS equivalent units outstanding at the close of each year, stated in millions of ADSs, and includes the total number of ADS equivalents issued by CEMEX in underlying derivative transactions, and excludes the total number of ADS equivalents issued by CEMEX and owned by subsidiaries. Each ADS listed on the New York Stock Exchange represents 10 CPOs.

Our shareholders approved stock splits in 2005 and 2006. As a result, each of our existing CPOs was surrendered in exchange for two new CPOs. The proportional equity interest participation of the stockholders in CEMEX’s common stock did not change as a result of the stock splits mentioned above. The number of our ADSs outstanding did not change as a result of the stock splits in the year 2005. Instead, the ratio of CPOs to ADSs was modified so that each ADS represented 10 new CPOs. As a result of the stock split approved during 2006, one additional ADS was issued in exchange for each existing ADS, each ADS representing 10 new CPOs. Earnings per ADS and the number of ADSs outstanding for the years ending December 31, 2001 through 2005, have been adjusted to make the effect of the stock splits retroactive for the correspondent years. In the Financial Statements, these figures are presented on a per-share basis (see note 18 to the 2011 Annual Report's Financial Statements).

For purposes of the selected financial information for the periods ended December 31, 2001 through 2011, the earnings (loss)-per-ADS amounts were determined by considering the year end balance number of ADS equivalent units outstanding during each year, i.e., 568.6, 598.3, 630.4, 665.8, 691.9, 718.4, 743.2, 838.1, 893.2, 999.2, and 1,042.2 million, respectively. These numbers of ADSs outstanding were not restated retroactively to give effect to stock dividends occurring during the period, as it would be required under MFRS for their disclosure in the financial statements.

Dividends declared at each year’s annual stockholders’ meeting for each period are reflected as dividends for the preceding year. We did not declare a dividend for the years 2008, 2009, and 2010. Instead, at our 2009, 2010, and 2011 annual shareholders’ meetings, CEMEX's stockholders approved a capitalization of retained earnings. New CPOs issued pursuant to the capitalization were allocated to shareholders on a pro-rata basis. As a result, shares equivalent to approximately 335 million CPOs, 384 million CPOs, and 401 million CPOs were issued and paid during 2009, 2010, and 2011, respectively. CPO holders received one new CPO for each 25 CPOs held, and ADS holders received one new ADS for each 25 ADSs held. There was no cash distribution and no entitlement to fractional shares.

Please refer to page 105 for the definition of terms.

In 2010 and 2011, other financial obligations include the liability components associated with CEMEX’s financial instruments convertible into CEMEX's CPOs, as well as CEMEX's capital leases (see note 12B to the 2011 Annual Report’s Financial Statements). Prior to 2010, there were not significant transactions concerning capital leases or convertible financial instruments.

Beginning in 2005, free cash flow is calculated after maintenance capital expenditures only.