to download Telecom Italia Annual Report 2011 - Company Reporting

The effect on the income statement, included in Employee benefits expenses, is as follows:
(thousands of euros) 2011 2010
Current service cost (*) - -
Finance expenses 37,532 37,009
Net actuarial (gains) losses recognized during the year (101,513) (2,745)
Total expenses (income) 63,981 34,264
Effective return on plan assets
there are no assets servicing
the plan
(*) Following the social security reform, the portions intended for the INPS Treasury Fund or for the supplementary pension
funds have been recorded under “Employee benefits expense” in “Social security expenses” and not as “Employee
severance indemnities expenses”.
The change in expenses compared to the prior year is attributable mainly to the revision of the discount
rate and the inflation rate used in the actuarial appraisal, to the new pension reform and to the
reduction in employees.
Provisions for termination benefit incentives amount to 178,605 thousand euros, decreasing 83,826
thousand euros, mainly due to the utilization during the year of the provision for mobility under Law
223/91 (-97,308 thousand euros). The utilization was compensated in part by the reversal of the
present value calculation of the 2010 provision and the addition to the provision of a further
13,482 thousand euros.
Telecom Italia S.p.A. Separate Financial Statements Note 18 – Employee benefits 382