to download Telecom Italia Annual Report 2011 - Company Reporting

Income tax expense
Income tax expense is 1,643 million euros and posts an increase of 1,093 million euros compared to
2010 (550 million euros). In particular, income taxes in 2010 comprised a benefit of more than
600 million euros deriving mainly from the recognition of deferred tax assets by the Brazil Business Unit
in connection with tax loss carryforwards which became recoverable on the basis of the prospects of
earnings of the companies in the Business Unit. In addition to this effect, the increase in income taxes is
also due to the higher taxable base of the Parent, Telecom Italia, the Brazil Business Unit as well as the
consolidation of the Argentina Business Unit for the full year 2011.
Profit (loss) from Discontinued operations/Non-current assets held for sale
In 2011, the balance is a loss of 13 million euros and includes expenses incurred in connection with
sales transactions of prior years. In 2010, the balance was a loss of 7 million euros and included the
same type of transactions.
Profit (loss) for the year
The loss for the year can be analyzed as follows:
(millions of euros) 2011 2010
Profit (loss) for the year (4,280) 3,575
Attributable to:
Owners of the Parent:
Profit (loss) from continuing operations (4,713) 3,128
Profit (loss) from Discontinued operations/Non-current assets held for sale (13) (7)
Profit (loss) for the year attributable to owners of the Parent (4,726) 3,121
Non-controlling interests:
Profit (loss) from continuing operations 446 454
Profit (loss) from Discontinued operations/Non-current assets held for sale - -
Profit for the year attributable to Non-controlling interests 446 454
In comparable terms, the result for the year attributable to owners of the Parent is in line with that of
2010. Specifically, the comparable profit in 2011 would have been 2,604 million euros and is
calculated by excluding the impact of the previously mentioned goodwill impairment charge and other
non-recurring items; the profit in 2010 would have been basically the same (2,608 million euros) when
calculated by excluding the positive impact of the acquisition of control of Sofora, the benefit of more
than 600 million euros deriving from the recognition of deferred tax assets and other non-recurring
items in Brazil.
Report on Operations Review of Operating and Financial Performance - Telecom Italia Group 23