Annual Report 2010 - Enel.com

(12.4% in Spain and 18.3% in other countries in 2009). The following table reports the impact of employee
benefits on the income statement.
Millions of euro Pension benefits Other benefits
2010 2009 2010 2009
Service cost 31 22 31 20
Interest cost 160 143 88 85
Expected return on plan assets (104) (69) - -
Amortization of actuarial (gains)/losses 19 9 19 20
(Gains)/Losses for reduction or cancellation of plans (11) - 7 (19)
Effect of application of IFRIC 14 11 11 (7) -
Total 106 116 131 106
Employee benefit expenses recognized in 2010 came to
€237 million (€222 million in 2009), of which €144 million
in respect of accretion cost recognized under financial expense
(€159 million in 2009) and €93 million recognized
under personnel costs.
The main actuarial assumptions used to calculate the liabilities
in respect of employee benefits and the plan assets
are set out in the following table.
Italy Abroad Italy Abroad
2010 2009
Discount rate 4.3% 3.37%-10.5% 4.3% 3.53%-13.94%
Rate of wage increases 2.0%-4.0% 2.3%-7.5% 2.5%-3.5% 3.0%-8.8%
Rate of increase in healthcare costs 3.0% 3.5%-10.5% 3.0% 3.0%-6.5%
Expected return on plan assets - 2.94%-12.09% - 3.87%- 13.41%
If, at December 31, 2010, the twelve-month rate of change
in healthcare costs had been 1 basis point higher, all other
variables being equal, the liability for healthcare benefits
would have been €17 million higher, with an overall negative
impact on the income statement in terms of service
cost and interest cost of €1 million. If, at December 31,
2010, the twelve-month rate of change in healthcare
costs had been 1 basis point lower, all other variables being
equal, the liability for healthcare benefits would have
been €14 million lower, with a positive impact on the income
statement in terms of service cost and interest cost
of €1 million.
219