to download Telecom Italia Annual Report 2011 - Company Reporting

Note 34 – Other income (expenses) from
investments
Details are as follows:
(millions of euros) 2011 2010
Dividends from Other investments 1 2
Net gains on disposals of other investments 18 30
Sofora revaluation, net of the reversal of the negative exchange rate reserve - 266
Loss and impairment losses on Other investments (3) (9)
Total 16 289
of which, included in the supplementary disclosure on financial instruments (2) 22
In 2011, Other income (expenses) from investments is an income balance of 16 million euros and
includes 17 million euros for the net gain on the sale of the entire 27% investment in the Cuban
operator EtecSA. That amount is in addition to the benefit from the impairment reversal of 30 million
euros, recorded in 2010, as part of the valuation using the equity method.
In 2010, Other income (expenses) from investments was an income balance of 289 million euros and
specifically included the revaluation, net of the negative exchange rate effect, of 266 million euros on
the investment interest already held in Sofora Telecomunicaciones (50%). In particular, as set forth in
IFRS 3, following the acquisition of control of Sofora Telecomunicaciones, which took place on
October 13, 2010, the investment interest previously held in the subsidiary, accounted for using the
equity method, was remeasured at fair value at the acquisition date of control. The line item also
included the net gain of 29 million euros realized on the settlement agreement reached between the
Telecom Italia Group and the Bolivian government for the resolution of the dispute over the May 1, 2008
expropriation by that government of the investment held by the Group in Entel Bolivia.
Telecom Italia Group
Consolidated Financial Statements
Note 34 – Altri proventi/(oneri) da partecipazioni 259