Snam.it

13 Intangible assets

Intangible assets of €4,444 million (€4,262 million at 31 December 2010) comprise:

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31.12.2010

 

 

 

 

 

 

 

 

 

(€ million)

Net opening value

Invest-
ments

Amortisa-
tion and deprecia-
tion

Impair-
ment losses

Disposals

Other changes

Net closing value

Gross closing value

Provision for amortisa-
tion, deprecia-
tion and impairment losses 
(*)

(*)

Including impairment losses of €10 million.

Intangible assets with a finite useful life

 

 

 

 

 

 

 

 

 

- Service concession agreements

3,341

349

(128)

(10)

(13)

(48)

3,491

6,099

2,608

- Industrial patent rights and rights to use intellectual property

55

4

(38)

 

 

51

72

548

476

- Concessions, licences, trademarks and similar rights

663

 

(3)

 

 

2

662

820

158

- Non-current assets under construction and payments on account

14 

66

 

 

 

(52)

 28

28

 

- Other intangible assets

 

4

(4)

 

 

 

 

44

 44

 

4,073

423

(173)

(10)

(13)

(47)

4,253

7,539

3,286

Intangible assets with an indefinite useful life

 

 

 

 

 

 

 

 

 

- Goodwill

9

 

 

 

 

 

9

9

 

 

4,082

423

(173)

(10)

(13)

(47)

4,262

7,548

3,286

  Download XLS (18 kB)

31.12.2011

 

 

 

 

 

 

 

 

 

(€ million)

Net opening value

Invest-
ments

Deprecia-
tion,
amortisa-
tion and
impair-
ment
losses

Re-covery of 
value

Disposals

Other changes

Net closing value

Gross closing value

Provision for amortisa-
tion, deprecia-
tion and impairment losses 
(*)

(*)

Including impairment losses of €1 million.

Intangible assets with a finite useful life

 

 

 

 

 

 

 

 

 

- Service concession agreements

3,491

362

(137)

9

(37)

(70)

3,618

6,251

2,633

- Industrial patent rights and rights to use intellectual property

72

9

(35)

 

 

41

87

596

509

- Concessions, licences, trademarks and similar rights

662

 

(2)

 

 

26

686

847

161

- Non-current assets under construction and payments on account

28 

60

 

 

 

(44)

 44

44

 

- Other intangible assets

 

2

(2)

 

 

 

 

46

 46

 

4,253

433

(176)

9

(37)

(47)

4,435

7,784

3,349

Intangible assets with an indefinite useful life

 

 

 

 

 

 

 

 

 

- Goodwill

9

 

 

 

 

 

9

9

 

 

4,262

433

(176)

9

(37)

(47)

4,444

7,793

3,349

Service concession agreements (€3,618 million) relate to natural gas distribution activities carried out under the concession system as assigned by local public authorities. With regard to the duration of the concessions, Legislative Decree No. 164/00 (the “Letta Decree”) established that all contracts must be put out to tender by the expiry of the “transitional period” (for Snam, by 31 December 2012) and that the new duration of the concessions may not exceed 12 years. In accordance with the provisions of the relevant legislation, tenders for new natural gas distribution concessions will no longer be issued by each municipality but exclusively by the multi-municipality minimum geographical areas (known as ATEMs)18.

Industrial patent rights and rights to use intellectual property of €87 million (€72 million at 31 December 2010) mainly concern information systems and applications in support of operating activities.

Concessions, licences, trademarks and similar rights (€686 million) refer mainly to concessions for the natural gas storage business (€655 million).

Intangible assets with an indefinite useful life consist only of the goodwill recognised following the acquisition by Italgas of 100% of the shares of Siciliana Gas (€9 million).

For the purposes of calculating recoverable value, goodwill has been allocated to the cash-generating unit consisting of natural gas distribution activities. The recoverable amount of the cash-generating unit was estimated by equity/income type valuations with reference to the value of the asset recognised for tariff purposes (RAB – Regulated Asset Base), as well as to additional income components deriving from the regulation, and is greater than the carrying amount of the cash-generating unit.

Investments in intangible assets of €433 million (€423 million at 31 December 2010) refer mainly to: (i) the construction and upgrading of natural gas distribution infrastructure (€362 million); and (ii) investment projects in progress (€48 million).

Recoveries of value (€9 million) have been recognised against some assets in the natural gas distribution segment on which impairment losses were recognised in 2010, due to the reduced cost of preparing plants for normal use.

Other changes (-€47 million) essentially consist of grants during the period (-€57 million).

Government grants for capital expenditure and grants from other parties reducing the net value of intangible assets amounted respectively to €373 million (€374 million at 31 December 2010) and €383 million (€355 million at 31 December 2010) and essentially concern the natural gas distribution segment. At 31 December 2011, uncollected government grants amounted to €6 million (€3 million 31 December 2010).

The main amortisation rates adopted on an annual basis are the following:

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Annual amortisation rate (%)

Infrastructure used in service concession agreements

 

Gas distribution network

2

Gas diversion plants

2

Distribution metering equipment

5-7.5 or more, depending on residual life

Intangible assets

 

Industrial patent rights and intellectual property rights

20-33

Other intangible assets

20, or according to the duration of the contract

Existing contractual commitments for the purchase of intangible assets, and of services related to their development, are disclosed in Note 28, “Guarantees, commitments and risks”.

Intangible assets by business segment

Intangible assets are broken down by business segment as follows:

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(€ million)

31.12.2010

31.12.2011

Gross intangible assets

 

 

Business segments

 

 

- Transportation

389

431

- Regasification

1

2

- Storage

778

788

- Distribution

6,380

6,572

Total

7,548

7,793

Provision for amortisation, depreciation and impairment losses

 

 

- Transportation

(335)

(355)

- Regasification

(1)

(2)

- Storage

(113)

(117)

- Distribution

(2,837)

(2,875)

Total

(3,286)

(3,349)

Net intangible assets

 

 

- Transportation

54

76

- Regasification

 

 

- Storage

665

671

- Distribution

3,543

3,697

 

4,262

4,444

The market value of fixed assets, including compulsory inventories and intangible assets, is estimated at €22 billion19 and was defined in keeping with the estimate of the value recognised (RAB) for such assets for purposes of compensation by the Electricity and Gas Authority.

18 For further information refer to the “Business segment operating performance” section of the Directors’ report.

19 Estimated value at 31 December 2011.

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