Annual Report 2010 - Enel.com

In 2009, “other changes” included the effect of the allocation
of the purchase price of 25.01% of Endesa, as discussed
in note 6 of these consolidated financial statements.
In 2010, the item “reclassification to ‘Assets held for sale’”
essentially regards the value attributed to the concession
for the distribution of high-voltage electricity in Spain,
which was sold to Red Eléctrica de España.
“Industrial patents and intellectual property rights” relate
mainly to costs incurred in purchasing software and openended
software licenses. The most important applications
relate to invoicing and customer management, the development
of Internet portals and the management of company
systems. Amortization is calculated on a straight-line
basis over the item’s residual useful life (on average between
three and five years).
Millions of euro
at Dec. 31, 2009
restated
Change in
scope of
consolidation
“Concessions, licenses, trademarks and similar rights” include
costs incurred by the gas companies and the foreign
electricity distribution companies to build up their customer
base. Amortization is calculated on a straight-line
basis over the average duration of the relationships with
the customers acquired or the concessions.
The item includes assets with an indefinite useful life in
the amount of €10,348 million. The forecast cash flows
for each of the electricity distribution concessions in Spain
and various Latin American countries are sufficient to recover
the value of the intangible asset.
“Goodwill” amounted to €18,470 million, a decrease of
€575 million over the previous year.
Exchange rate
differences
Reclassification
to “Assets held
for sale” Other changes
at Dec. 31,
2010
Endesa 15,313 - - (817) 5 14,501
Enel OGK-5 1,178 - 67 - (3) 1,242
Enel Green Power Group (1) 869 41 22 (46) (20) 866
Slovenské elektrárne 697 - - - - 697
Enel Energia 579 - - - - 579
Enel Distributie Muntenia 228 - (1) - 179 406
Enel Energie Muntenia 58 - - - 31 89
RusEnergoSbyt 42 - 2 - - 44
Nuove Energie 26 - - - - 26
Marcinelle Energie 20 - - - - 20
SeverEnergia/Eni Russia 18 - (8) - (10) -
Enel Maritza East 3 13 - - (13) - -
Wisco 2 - - - (2) -
Enel Operations Bulgaria 2 - - (2) - -
Total 19,045 41 82 (878) 180 18,470
(1) Includes Enel Green Power España, Enel Latin America, Enel Panama, Inelec, Enel North America, Enel Unión Fenosa Renovables, Enel Green Power Hellas, Enel
Green Power France, Enel Green Power Italia, Enel Green Power Romania and Enel Green Power Bulgaria.
The “change in scope of consolidation” is essentially attributable
to the recognition of provisional goodwill in
respect of the acquisition of Padoma Wind Power.
The “reclassification to ‘Assets held for sale’” essentially
regards the goodwill recognized in respect of natural gas
distribution operations in Spain (€426 million, related to
the disposal of Endesa Gas in December 2010), the assets
held by Endesa in Ireland (€312 million) and the assets of
Enel Unión Fenosa Renovables due to be divested under
the agreements signed with Gas Natural (€46 million).
“Other changes” essentially comprises the change in the
valuation at period-end of the debt associated with the
acquisition of minority stakes (including Enel Distributie
Muntenia and Enel Energie Muntenia) under a number
of put options granted to minority shareholders as part of
the acquisitions of those companies.
The recoverable value of the goodwill recognized was estimated
by calculating the value in use of the asset using
discounted cash flow models, which involve estimating
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