Annual Report 2010 - Enel.com

Equity investments accounted for using the equity method
amounted to €1,033 million, broadly unchanged compared
with the previous year.
Other net non-current assets/(liabilities) at December 31,
2010 showed a net liability of €639 million, an improvement
of €1,628 million compared with December 31,
2009. The change can be attributed to the following factors:
> an increase of €1,154 million in non-current financial
assets, essentially due to the increase in assets connected
with derivatives (€544 million), the rise in equity
investments in other entities, which mainly reflects the
increase (€362 million) in the value of the investment in
Bayan Resources, as well as the increase (€125 million)
in financial assets recognized in respect of activities carried
out on a concession basis;
> a decrease of €46 million in receivables due from the
Electricity Equalization Fund and similar bodies, essentially
in respect of the reclassification (to short term) of
receivables in respect of the supplement for pensioner
electricity discounts and grants for white certificates;
> an increase of €132 million in other non-current receivables,
due mainly to the recognition by Enel Distribuzione
of the receivable for the incorporation in rates
of the early replacement of electromechanical meters,
partially offset by the reclassification to long-term financial
receivables of Slovenské elektrárne’s receivable
due from the Slovakian State Decommissioning Fund;
> a decrease of €373 million in non-current financial liabilities
owing to a decrease in liabilities connected
with derivatives;
> a decrease of €15 million in other non-current liabilities.
Net current assets came to a negative €2,784 million at
December 31, 2010, a decrease of €1,700 million compared
with December 31, 2009. This change is due primarily
to the following factors:
> a reduction of €505 million in trade receivables, essentially
as a result of the decrease in receivables for electricity
sales on the domestic market, due to the decline
in amounts generated and intermediated, partially
offset by the increase in trade receivables for electricity
transport and sales abroad, associated with a rise in
sales;
80 Enel Annual Report 2010 Report on operations
> an increase of €303 million in inventories, largely due
to the change in fuel inventories, especially natural gas;
> a decrease of €878 million in net receivables due from
Electricity Equalization Fund and similar bodies. The
change mainly reflects receipts by Endesa from equalization
mechanisms on the Spanish electricity market,
as well as the termination of the right to receive reimbursement
of certain components by electricity distribution
companies in Spain with the entry into force of
the Tarifa de Ultimo Recurso;
> an increase of €579 million in other current assets less
related liabilities. This change is due to the following
factors:
- a decrease of €1,091 million in net income tax liabilities.
The decline is essentially related to tax payments
in the amount of €3,275 million, the effects of which
were partially offset by the recognition of current
taxes (net of prior-year adjustments) totaling €2,528
million. In addition to the balance of current income
taxes, the tax payments regard 2010 installments of
the gains tax due for the realignment – essentially
carried out in 2008 by a number of Italian companies
– of the statutory and tax values of property, plant
and equipment (Law 244/07);
- a decrease of €585 million in net current assets, essentially
due to the reduction in net tax receivables
other than current income taxes (€371 million), an
increase in net employee payables (€147 million) and
an increase in payables in respect of acquisitions of
equity investments (€45 million), which regarded the
increase in the fair value of the liability in respect of
the put option granted to minority shareholders of
Enel Distributie Muntenia and Enel Energie Muntenia,
partially offset by the payment in 2010 of the
debt in respect of the acquisition of Bayan Resources
in 2008;
- an increase of €73 million in net current financial assets,
attributable to the increase in net current derivatives
with a positive fair value (€159 million), partially
offset by the increase in payables and accruals
for interest on loans;
> an increase of €1,199 million in trade payables.