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of market parameters, even though the contract does not call for re-fixing the interest rate (such as in
the case of bank deposits, Euro Commercial Paper and receivables on sales of securities), has been
considered in the category of variable rate.
Total Financial liabilities (at the nominal repayment amount)
(millions of euros)
12/31/2011 12/31/2010
Fixed Variable Total Fixed Variable
rate rate
rate rate
Total
Bonds 20,156 6,819 26,975 17,632 10,697 28,329
Loans and other financial liabilities 5,789 4,421 10,210 6,166 3,015 9,181
Total non-current financial liabilities
(including the current portion of
medium/long-term financial liabilities) 25,945 11,240 37,185 23,798 13,712 37,510
Total current financial liabilities(*) 57 813 870 31 694 725
Total 26,002 12,053 38,055 23,829 14,406 38,235
(*) At December 31, 2011, variable-rate current liabilities include 276 million euros of payables to other lenders for installments paid in advance
which are conventionally classified in this line item even though they are not correlated to a definite rate parameter (313 million euros at
December 31, 2010).
Total Financial assets (at the nominal investment amount)
(millions of euros)
12/31/2011 12/31/2010
Fixed Variable Total Fixed Variable
rate rate
rate rate
Total
Cash and cash equivalents - 5,167 5,167 - 4,264 4,264
Euro Commercial Papers - 219 219 - 214 214
Securities 125 2,233 2,358 103 2,262 2,365
Other receivables 777 215 992 584 133 717
Total 902 7,834 8,736 687 6,873 7,560
With regard to variable-rate financial instruments, the contracts provide for revisions of the relative
parameters to take place within the subsequent 12 months.
Effective interest rate
As to the effective interest rate, for the categories where that parameter can be determined, such
parameter refers to the original transaction net of the effect of any derivative hedging instruments.
The disclosure, since it is provided by class of financial asset and liability, was determined, for purposes
of calculating the weighted average, using the carrying amount adjusted by accruals, prepayments,
deferrals and changes in fair value: this is therefore the amortized cost, net of accruals and any changes
in fair value as a consequence of hedge accounting.
Telecom Italia Group
Consolidated Financial Statements
Note 17 – Financial risk management 223