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Trade receivables amount to 4,162,031 thousand euros (4,371,704 thousand euros at
December 31, 2010) and are net of the provision for bad debts of 570,976 thousand euros (593,539
thousand euros at December 31, 2010).
Movements in the provision for bad debts are as follows:
(thousands of euros) 2011 2010
At January 1 593,539 602,103
Provision charges to the separate income statement 203,920 180,668
Utilization and decreases (226,483) (189,232)
At December 31 570,976 593,539
The provision for bad debts refers to writedowns of individual receivables for 256,074 thousand euros
(334,962 thousand euros at December 31, 2010) and writedowns of overall receivables for
314,902 thousand euros (258,576 thousand euros at December 31, 2010). Provision charges for bad
debts are recorded for specific credit positions that present an element of individual risk. On credit
positions that do not present such characteristics, provision charges are recorded by customer segment
according to the average uncollectibility estimated on the basis of statistics.
Receivables from customers stand at 2,687,942 thousand euros, decreasing 113,010 thousand euros
compared to December 31, 2010.
Receivables from other telecommunication operators (1,200,381 thousand euros) are also lower
(43,298 thousand euros) compared to December 31, 2010.
Receivables from subsidiaries amount to 159,477 thousand euros (decreasing 34,160 thousand euros
compared to December 31, 2010) and mainly refer to TLC services rendered to 4GRetail
(30,214 thousand euros), Telecom Italia Sparkle (30,749 thousand euros), Matrix (27,615 thousand
euros), Shared Service Center (20,995 thousand euros) and the Tim Participações group
(12,342 thousand euros).
Receivable from associates and joint ventures come to 35,504 thousand euros and particularly refer to
Teleleasing (33,292 thousand euros) for the sale of TLC equipment and services.
Receivables from other related parties amount to 60,512 thousand euros and refer in particular to
balances with the Intesa SanPaolo group (35,480 thousand euros) and the Generali group
(16,463 thousand euros).
Miscellaneous receivables and other current assets stand at 836,022 thousand euros
(865,616 thousand euros at December 31, 2010) and are net of a provision for bad debts of
102,320 thousand euros. Specifically, receivables from subsidiaries principally refer to credit positions
connected with the Group VAT procedure and with Group income tax consolidation.
Receivables from other related parties refer to Intesa SanPaolo group, mainly for the sale of dealer
receivables and for mobile equipment sales, carried out with Mediofactoring, a company in the Intesa
SanPaolo group.
Trade and miscellaneous prepaid expenses principally pertain to the deferrals of costs referring to the
activation of new contracts (239,514 thousand euros), building leases (64,794 thousand euros), rentals
and maintenance (24,890 thousand euro) and insurance premiums (9,000 thousand euros).
Other receivables amount to 393,057 thousand euros (376,669 thousand euros at
December 31, 2010). Details are as follows:
(thousands of euros) 12/31/2011 12/31/2010
Advances to suppliers 21,496 12,992
Receivables from employees 20,795 23,211
Tax receivables 38,013 36,961
Sundry receivables 312,753 303,505
Total 393,057 376,669
Telecom Italia S.p.A. Separate Financial Statements Note 11 – Trade and miscellaneous receivables and other current assets 347