Restatement of the balance sheet and the income statement

The main impacts of the application, as from January 1, 2013 with retrospective effect, of the new version of “IAS 19 - Employee benefits” on the balance sheet and income statement figures reported for comparative purposes only in these consolidated financial statements are as follows:

  • as the corridor approach may no longer be used, all actuarial gains and losses are recognized directly in equity. Accordingly, the amortization accruing in 2012 in respect of the excess gains and losses outside the corridor, as quantified at December 31, 2012, was eliminated from the income statement (€19 million). In addition, the actuarial gains and losses not recognized in application of the previous method were recognized in equity, with a consequent 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, the portion not recognized at December 31, 2012 was recognized as an increase in the defined-benefit obligation, posted to equity for the amount pertaining to previous years and to profit or loss for the amount accruing for 2012. More specifically, the amount recognized in the income statement involved €932 million in respect of charges for the transition-to-retirement plan established in 2012 for certain employees in Italy;
  • in application of the new standard, interest income on plan assets is recognized in substitution of the expected return on those assets. That interest is no longer reported under financial income but rather is offset against the financial expense associated with the benefit plans.

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

In addition, in 2013, the Group adopted a new accounting treatment as part of the project to harmonize the treatment of the recognition and presentation of the various types of environmental certificates (CO2 allowance, green certificates, energy efficiency certificates, etc.). The new approach is based on the business model of the companies involved in the incentive mechanisms for environmental certificates and led to a number of reclassifications in the consolidated income statement.

Finally, as a result of the definitive allocation of the purchase prices of the Kafireas pipeline, 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 measurement at fair value of the net assets acquired.

For more information, please see note 4 of these consolidated financial statements. The following tables present the effects on the revenues, gross operating margin and operating income of the Group’s divisions.

Revenues

Millions of euro    
 2012 New environmental certificates policy 2012 restated 
Sales  18,351  - 18,351 
Generation and Energy Management  25,237  25,244 
Infrastructure and Networks  8,117  - 8,117 
Iberia and Latin America  34,169  - 34,169 
International  8,703  - 8,703 
Renewable Energy  2,696  - 2,696 
Other, eliminations and adjustments  (12,384)  53  (12,331) 
Total  84,889  60  84,949 

Gross operating margin

Millions of euro    
 2012 IAS 19/R effect 2012 restated 
Sales  689  (80)  609 
Generation and Energy Management  1,271  (180)  1,091 
Infrastructure and Networks  4,138  (515)  3,623 
Iberia and Latin America  7,212  18  7,230 
International  1,650  - 1,650 
Renewable Energy  1,681  (40)  1,641 
Other, eliminations and adjustments  97  (132)  (35) 
Total  16,738  (929)  15,809 

Operating income

Millions of euro    
 2012 IAS 19/R effect 2012 restated 
Sales  183  (80)  103 
Generation and Energy Management  685  (180)  505 
Infrastructure and Networks  3,144  (515)  2,629 
Iberia and Latin America  1,657  18  1,675 
International  978  - 978 
Renewable Energy  1,121  (40)  1,081 
Other, eliminations and adjustments  (33)  (132)  (165) 
Total  7,735  (929)  6,806