to download Telecom Italia Annual Report 2011 - Company Reporting

Consolidated financial position performance
Financial position structure
(millions of euros) 12/31/2011 12/31/2010 Change
Assets
(a) (b) (a-b)
Non-current assets 67,304 73,062 (5,758)
Goodwill 36,957 43,923 (6,966)
Other intangible assets 8,600 7,936 664
Tangible assets 15,948 16,415 (467)
Other non-current assets 5,799 4,788 1,011
Current assets 16,555 15,589 966
Inventories, Trade and miscellaneous receivables and other current
assets 8,217 8,177 40
Current income tax receivables 155 132 23
Securities other than investments, Financial receivables and other
current financial assets, Cash and cash equivalents 8,183 7,280 903
Discontinued operations/Non-current assets held for sale - 389 (389)
of a financial nature - - -
of a non-financial nature - 389 (389)
Equity and liabilities
83,859 89,040 (5,181)
Equity 26,695 32,555 (5,860)
Non-current liabilities 39,753 38,414 1,339
Current liabilities 17,411 18,071 (660)
Liabilities directly associated with Discontinued operations/Noncurrent
assets held for sale - - -
of a financial nature - - -
of a non-financial nature - - -
83,859 89,040 (5,181)
Non-current assets
• Goodwill: is 6,966 million euros lower due not only to the previously mentioned impairment charge
of 7,364 million euros but also to the following variations:
– increase of 556 million euros for the recognition of the provisional amount of goodwill
following the acquisition of control and the subsequent consolidation of Tim Fiber RJ
(formerly AES Communications Rio de Janeiro) and Tim Fiber SP (formerly Eletropaulo
Telecomunicações) in the Brazil Business Unit;
– increase of 16 million euros for the recognition of the provisional amount of goodwill
following the acquisition of control and the subsequent consolidation of the 4GH group.
– decrease of 10 million euros in connection with the sale of the subsidiary Loquendo on
September 30, 2011;
– change in the exchange rates of the Brazilian and Argentine companies.
As set forth in IFRS 3, within 12 months of the above acquisitions, the accounting transactions for
the business combinations must be closed by the definitive allocation of the purchase prices paid.
It should be noted that the price paid on October 13, 2010 for the acquisition of control of the
Sofora – Telecom Argentina group was definitively allocated during 2011. As a result, the goodwill
of the Sofora – Telecom Argentina group recorded provisionally in the consolidated financial
statements at December 31, 2010 for 166 million euros was adjusted to 177 million euros to
Report on Operations Review of Operating and Financial Performance - Telecom Italia Group 24