to download Telecom Italia Annual Report 2011 - Company Reporting

Note 35 – Related party transactions
In accordance with art. 5, paragraph 8 of Consob Regulation 17221 of March 12, 2010 concerning
“related party transactions” and the subsequent Consob Resolution 17389 of June 23, 2010, no
significant transactions were entered into as defined by art. 4, paragraph 1, letter a) of the
aforementioned regulation or other transactions with related parties which had a major impact on the
financial position or on the results of Telecom Italia S.p.A..
Furthermore, there were no changes or developments regarding the related party transactions described
in the 2010 report on operations which had a significant effect on the financial position or on the results
of Telecom Italia S.p.A. in 2011.
Transactions with related parties, when not dictated by specific laws, are usually conducted at arm’s
length. Furthermore, the transactions are subject to an internal procedure (adopted by resolution of the
Board of Directors on November 4, 2010, pursuant to the Regulation adopted by Consob with Resolution
17221/2010, which can be consulted on the Company’s website at the following address:
www.telecomitalia.com., section Governance, channel governance system), which defines procedures
and timing for verification and monitoring.
The following tables present the balances relating to transactions with related parties and the incidence
of those amounts on the separate income statement, statement of financial position and statement of
cash flows of Telecom Italia S.p.A..
The effects on the individual line items of the separate income statements for the years 2011 and 2010
are as follows:
SEPARATE INCOME
STATEMENT LINE ITEMS
2011
(thousands of euros)
Total
Subsidiaries
Associates
and joint
ventures
Companies
controlled by
associates
and joint
ventures
Related parties
Other
related
parties (*)
Pension
funds
Key
managers
Total
Related
parties
% incidence
on financial
statement
line item
Revenues 18,044,995 250,258 90,114 2,106 184,866 4 - 527,348 2.9
Other income 246,725 13,497 367 - 2 - - 13,866 5.6
Acquisition of goods
and services 6,323,783 1,093,851 9,284 28,271 57,468 - - 1,188,874 18.8
Employee benefits
expenses 2,638,076 54 - - 3,845 77,110 14,998 96,007 3.6
Other operating
expenses 704,542 21,025 25 - 270 - - 21,320 3.0
Gains (losses) on
disposals of noncurrent
assets (9,575) 14,792 - - - - - 14,792 -
Income (expenses)
from investments (147,672) 253,051 220 - 85 - - 253,356 -
Finance income 2,537,918 419,589 4 - 254,148 - - 673,741 26.5
Finance expenses 4,586,882 2,284,042 39,755 - 66,049 - - 2,389,846 52.1
(*) Other related parties through directors, statutory auditors and key managers.
Telecom Italia S.p.A. Separate Financial Statements 2011 Note 35 – Related party transactions 403