Restatement of comparative figures at December 31, 2012

Following the application, as from January 1, 2013 with retrospective effect, of the new version of “IAS 19/R - Employee benefits”, the main effects on the income statement and balance sheet for the previous year are discussed below:

  • as the corridor approach may no longer be used, all actuarial gains and losses previously unrecognized at January 1, 2012 have been recognized directly in equity. Accordingly, the amortization accruing in respect of the excess gains and losses outside the corridor was eliminated from the income statement (€19 million). The restatement of those items led to the adjustment of the respective defined-benefit obligation and the net plan assets recognized in the balance sheet;
  • as the recognition of past service cost in the income statement may no longer be deferred, for employee benefits already existing at December 31, 2011, the portion of the past service cost not yet recognized was recognized in its entirety in equity at January 1, 2012, increasing the employee benefit obligation. For employee benefit plans introduced in 2012, the effect of the increase in the associated obligation was recognized directly through profit or loss for that period. That recognition through profit or loss included charges of €932 million for the obligation in respect of the transition-to-retirement plan implemented for certain employees in Italy at the end of 2012;
  • in application of the new standard, net interest income on plan assets is recognized in substitution of the expected return on those assets. As a result, that interest is no longer presented under financial income but is instead deducted from the financial expense of the benefit plans. The impact of that change on the restated 2012 income statement for the Group was not material.

In all cases, the theoretical tax effects and amounts pertaining to non-controlling interests were also calculated.

In addition, in 2013, the Group adopted a new accounting policy to standardize the recognition and presentation of the various types of environmental certificates (CO2 allowances, green certificates, white certificates). The new approach is based on the business model of the companies involved in the environmental certificate mechanisms and led only to a number of reclassifications in the income statement and consolidated balance sheet.

Finally, as a result of the definitive allocation of the purchase prices of the Kafireas pipeline and of Stipa Nayaá and Eólica Zopiloapan, companies operating in the Renewable Energy Division, which was completed after December 31, 2012, the balance-sheet accounts at that date have been restated to reflect the fair value adjustment of the assets acquired and liabilities assumed in the associated business combinations.
The following tables reports the changes in the income statement, statement of comprehensive income and consolidated balance sheet following the above amendments, including the associated tax effects. The impact on the consolidated statement of cash flows is limited to a number of reclassifications among the various components, in line with the figures reported in the balance sheet and income statement.

Millions of euro    
 2012 IAS 19/R effect New environmental certificate policy 2012 restated 
Revenues         
Revenues from sales and services  82,699  - (268)  82,431 
Other revenues and income  2,190  - 328  2,518 
Total revenues  84,889  - 60  84,949 
Costs         
Raw materials and consumables  46,130  - 452  46,582 
Services  15,738  - 42  15,780 
Personnel  4,860  929  - 5,789 
Depreciation, amortization and impairment losses  9,003  - - 9,003 
Other operating expenses  3,208  - (434)  2,774 
Capitalized costs  (1,747)  - - (1,747) 
Total costs  77,192  929  60  78,181 
Net income/(charges) from commodity risk management  38  - - 38 
Operating income  7,735  (929)  - 6,806 
Financial income  2,272  (87)  - 2,185 
Financial expense  5,275  (78)  - 5,197 
Share of income/(expense) from equity investments accounted for using the equity method  88  - - 88 
Income before taxes  4,820  (938)  - 3,882 
Income taxes  2,745  (305)  - 2,440 
Net income from continuing operations  2,075  (633)  - 1,442 
Net income from discontinued operations  - - - -
Net income for the year (shareholders of the Parent Company and non-controlling interests)  2,075  (633)  - 1,442 
Pertaining to shareholders of the Parent Company  865  (627)  - 238 
Pertaining to non-controlling interests  1,210  (6)  - 1,204 

Millions of euro    
 2012IAS 19/R effect 2012 restated 
Net income for the year  2,075  (633)  1,442 
Other comprehensive income recyclable to profit or loss 
Effective portion of change in the fair value of cash flow hedges  (760)  - (760) 
Share of income recognized in equity by companies accounted for using the equity method  (7)  - (7) 
Change in the fair value of financial investments available for sale  (416)  - (416) 
Change in translation reserve  73  - 73 
Other comprehensive income not recyclable to profit or loss 
Change in net liabilities/(assets) in respect of defined-benefit plans  - (248)  (248) 
Income/(Loss) recognized directly in equity  (1,110)  (248)  (1,358) 
Comprehensive income for the period  965  (881)  84 
Pertaining to:     
- shareholders of the Parent Company  (374)  (858)  (1,232) 
- non-controlling interests  1,339  (23)  1,316 

Millions of euro       
 at Dec. 31, 2011 IAS 19/R effect at Jan. 1, 2012 restated at Dec. 31, 2012 IAS 19/R effect Renewable Energy Division PPA at Dec. 31, 2012 restated 
Non-current assets             
Property, plant and equipment  80,592  - 80,592  83,115  - - 83,115 
Investment property  245  - 245  197  - - 197 
Intangible assets  39,049  - 39,049  35,970  - 27  35,997 
Deferred tax assets  6,116  90  6,206  6,305  511  - 6,816 
Equity investments accounted for using the equity method  1,085  - 1,085  1,115  - - 1,115 
Non-current financial assets  6,325  - 6,325  5,518  - - 5,518 
Other non-current assets  512  (97)  415  897  (97)  - 800 
Total non-current assets  133,924  (7)  133,917  133,117  414  27  133,558 
Current assets             
Inventories  3,148  - 3,148  3,338  - - 3,338 
Trade receivables  11,570  - 11,570  11,719  - - 11,719 
Tax receivables  1,251  - 1,251  1,631  - - 1,631 
Current financial assets  10,466  - 10,466  9,381  - - 9,381 
Other current assets  2,136  - 2,136  2,262  - - 2,262 
Cash and cash equivalents  7,015  - 7,015  9,891  - - 9,891 
Total current assets  35,586  - 35,586  38,222  - - 38,222 
Assets held for sale  381  - 381  317  - - 317 
TOTAL ASSETS  169,891  (7)  169,884  171,656  414  27  172,097 

Millions of euro       
 at Dec. 31, 2011 IAS 19/R effect at Jan. 1, 2012 restated at Dec. 31, 2012 IAS 19/R effect Renewable Energy Division PPA at Dec. 31, 2012 restated 
Equity pertaining to the shareholders of the Parent Company       
Share capital  9,403  - 9,403  9,403  - - 9,403 
Other reserves  10,348  (131)  10,217  9,109  (362)  - 8,747 
Retained earnings (Loss carried forward)  18,899  (7)  18,892  18,259  (634)  - 17,625 
  38,650  (138)  38,512  36,771  (996)  - 35,775 
Non-controlling interests  15,650  (61)  15,589  16,387  (84)  16,312 
TOTAL SHAREHOLDERS’ EQUITY  54,300  (199)  54,101  53,158  (1,080)  52,087 
Non-current liabilities             
Long-term loans  48,703  - 48,703  55,959  - - 55,959 
Post-employment and other employee benefits  3,000  192  3,192  3,063  1,479  - 4,542 
Provisions for risks and charges  8,057  - 8,057  8,648  - - 8,648 
Deferred tax liabilities  11,505  - 11,505  11,753  15  18  11,786 
Non-current financial liabilities  2,307  - 2,307  2,553  - - 2,553 
Other non-current liabilities  1,313  - 1,313  1,151  - - 1,151 
  74,885  192  75,077  83,127  1,494  18  84,639 
Current liabilities             
Short-term loans  4,799  - 4,799  3,970  - - 3,970 
Current portion of long-term loans  9,672  - 9,672  4,057  - - 4,057 
Trade payables  12,931  - 12,931  13,903  - - 13,903 
Income tax payable  671  - 671  364  - - 364 
Current financial liabilities  3,668  - 3,668  3,138  - - 3,138 
Other current liabilities  8,907  - 8,907  9,931  - - 9,931 
  40,648  - 40,648  35,363  - - 35,363 
Liabilities held for sale  58  - 58  - -
TOTAL LIABILITIES  115,591  192  115,783  118,498  1,494  18  120,010 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  169,891  (7)  169,884  171,656  414  27  172,097