to download Telecom Italia Annual Report 2011 - Company Reporting

Note 33 – Impairment reversals (losses) on
non-current assets
Details of impairment reversals (losses) on non-current assets are as follows:
(millions of euros) 2011 2010
Reversals of impairment losses on non-current assets:
on intangible assets 9 -
on tangible assets 1 -
(a) 10 -
Impairment losses on non-current assets:
on intangible assets 7,364 56
on tangible assets 4 7
(b) 7,368 63
Total (a-b) (7,358) (63)
Reversals of impairment losses on non-current assets consist of impairment reversals carried out by
the Lan Med group as a result of the partial increase in the asset values on which an impairment loss
was recorded in 2006.
Impairment losses on non-current assets amount to 7,368 million euros in 2011 and include
7,307 million euros for the impairment of the goodwill allocated to the Core Domestic cash-generating
unit in the Domestic Business Unit and 57 million euros for the impairment loss on the goodwill
allocated to the Media Business Unit, for which an impairment charge of 46 million euros was recorded
in 2010.
In particular, in preparing the annual financial statements, the Telecom Italia Group repeated the
impairment test that had been carried out in the first half of 2011 which led to the recognition in the
half-year condensed consolidated financial statements at June 30, 2011 of an impairment loss of
3,182 million euros on the Core Domestic cash-generating unit.
The macroeconomic and market climate was marked by a deceleration in the higher growth economies
and fears of a recession in the mature ones which were more accentuated in the domestic market.
Added to this was an escalation, in the second half of the year, of financial market pressures, with
particular reference to the trend of interest rates. The measurement therefore took into account such
deterioration of the financial markets in general terms, with reference to the interest rates, while the
worsening of expectations regarding the market prospects of the Business Unit in question were
considered in specific terms.
Telecom Italia Group
Consolidated Financial Statements
Note 33 – Impairment reversals (losses) on non-current assets 258