Annual Report 2010 - Enel.com

Millions of euro Pension benefits Other benefits
218 Enel Annual Report 2010 Consolidated financial statements
2010 2009 2010 2009
Changes in actuarial liability:
Actuarial liability at the beginning of the year 2,938 2,087 2,081 1,622
Service cost 31 22 31 20
Interest cost 160 143 88 85
Benefits paid (217) (216) (117) (110)
Other changes (19) (21) (8) 24
Changes in scope of consolidation - 453 - 197
Actuarial (gains)/losses 193 351 8 235
Foreign exchange (gains)/losses 93 119 11 8
Liabilities held for sale (4) - - -
Actuarial liability at the end of the year
Changes in plan assets:
3,175 2,938 2,094 2,081
Fair value at the beginning of the year 1,442 694 - -
Changes in scope of consolidation - 355 - -
Expected return on plan assets 104 69 - -
Actuarial gains/(losses) 4 254 - -
Contributions paid by company 155 103 - -
Other changes 22 4 - -
Foreign exchange (gains)/losses 65 97 - -
Benefits paid (217) (134) - -
Fair value at the end of the year
Reconciliation with carrying amount:
1,575 1,442 - -
Net actuarial liability 1,600 1,496 2,094 2,081
Net unrecognized (gains)/losses 368 208 257 259
Carrying amount of liability 1,232 1,288 1,837 1,822
The change in scope of consolidation for 2009 essentially
regards the acquisition of an additional 25.01% of Endesa.
The employees of the Endesa Group in Spain included in
the framework agreement of October 25, 2000 participate
in a specific defined-contribution pension plan and,
in cases of disability or death of employees in service, a
defined-benefit plan which is covered by appropriate insurance
policies. In addition, the company has certain obligations
to retired ex-workers, mainly concerning the supply
of electricity. Outside Spain, defined-benefit pension
plans are also in force, notably in Brazil.
The liabilities recognized at the end of the year are reported
net of the fair value of the plan assets (where this is
not greater than that of the related liabilities), which are
attributable entirely to Endesa in the amount of €1,575
million as at December 31, 2010, and of the net unrecognized
actuarial losses in the amount of €625 million.
As regards plan assets, which at December 31, 2010
amounted to €1,687 million (of which €1,575 million
adjusting the liability for pension benefits and €112
million recognized under non-current financial assets),
65% of the market value of such assets regards assets
located in Spain (70% at December 31, 2009) and 35%
regards assets in Brazil (30% at December 31, 2009). The
assets break down as follows:
% composition
2010 2009
Shares 25 27
Fixed-income securities 69 68
Property and other 6 5
Total 100 100
At December 31, 2010, these assets included shares or
bonds issued by Endesa Group companies in the amount
of €10 million (€18 million at December 31, 2009). The
expected return on the assets was estimated on the basis
of forecasts for the main equity and fixed-income markets
and using a weighting for the various asset classes similar
to that adopted the previous year. The real return for 2010
was equal to 0.4% in Spain and -1.9% in other countries