to download Telecom Italia Annual Report 2011 - Company Reporting

Note 32 – Impairment reversals (losses)
on non-current assets
Net impairment losses on non-current assets total 5,379,650 thousand euros (8,554 thousand euros in
2010).
The line item includes 5,376,000 thousand euros for the impairment charge on the goodwill referring to
domestic activities. In particular, in preparing the annual financial statements, Telecom Italia S.p.A.
repeated the impairment test that had been performed in the first half of 2011. The macroeconomic
and market picture was marked by a deceleration in the higher growth economies and fears of a
recession in the mature ones. 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 test therefore took into
account such deterioration of the financial markets and also the worsening of the prospects of the
reference market of the company. Further details are provided in the Note “Goodwill”.
Impairment losses also include 3,650 thousand euros relating to network materials no longer usable
and telephone systems in the process of being replaced with new technologically advanced materials.
Note 33 – Income (expenses) from
investments
Details are as follows:
(thousands of euros) 2011 2010
Dividends 253,806 2,356,969
Net gains on disposals of investments 40,994 300
Impairments of financial assets (442,472) (561,604)
Total (147,672) 1,795,665
of which included in the Supplementary disclosure on financial instruments 687 804
In particular:
• 2011 dividend income relates primarily to Telecom Italia Sparkle (250,000 thousand euros);
dividends in 2010 included 2,000,000 thousand euros from Telecom Italia International and
345,000 thousand euros from Telecom Italia Deutschland Holding;
• gains on the sale of investments mainly refer to the gain, net of incidental expenses, arising from the
sale of the subsidiary Loquendo S.p.A. on September 30, 2011;
• impairments essentially refer to the writedown of the investments in Matrix (130,381 thousand
euros), Telecom Italia Media (45,334 thousand euros) and Telecom Italia Sparkle
(198,600 thousand euros) on the basis of the results of the impairment test, Olivetti
(36,067 thousand euros) and Telecom Italia Deutschland Holding GMBH (13,038 thousand euros);
• in 2010, impairments basically included the writedown of the investments in Telecom Italia
Deutschland Holding (352,358 thousand euros, following the reduction in the equity of the company
after the distribution of reserves), Telecom Italia Media (162,000 thousand euros, on the basis of
the results of the impairment test), Olivetti (18,365 thousand euros), Tiglio I
(13,498 thousand euros) and SSC (10,455 thousand euros).
Telecom Italia S.p.A. Separate Financial Statements Note 33 – Income (expenses) from investments 400