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4. Hydrocarbons Concessions
Concessions for the production of hydrocarbons, which include 78 mineral leases in Italy and abroad (including 2 storage concessions), were valued at 339 million euros. The amortization for the period (31 million euros) accounts for most of the decrease of 22 million euros from the amount reported at December 31, 2004. In 2005, a writedown of 12 million euros was reversed, when the reasons for its original recognition no longer applied.
The value of these assets does not include capitalized financial expense.
 

(in millions of euros) Hydrocarbon concessions
Balance at 12/31/04 (A) 361
Changes in 2005:  
- Amortization (31)
- Reversals of writedown 12
- Reclassifications (3)
Total changes (B) (22)
Balance at 12/31/05 339
Breakdown:  
- Historical cost 417
- Accumulated amortization (-) (68)
- Writedowns (-) (10)
Net carrying amount 339
 
Information about the Group's concessions
The table below shows the information of the Group's concessions, whose values are included among "Fixed assets" and "Hydrocarbons concessions".
 

      Residual life
  Number from   to
Storage 2   9 19
Hydroelectric 70   3 26
Distribution 56   2 14
Hydrocarbons 76     (*) "unit of production"
(*) Amortization and residual life are based on the extracted amounts related to available reserves.
 
5. Other Intangible Assets
The balance of 38 million euros refers to licenses and similar rights (31 million euros) and work in progress (7 million euros). The table below provides a breakdown of this account:
 

(in millions of euros) Other intangible assets
Balance at 12/31/04 (A) 25
Changes in 2005:  
- Additions 46
- Amortization (33)
Total changes (B) 13
Balance at 12/31/05 38
Breakdown:  
- Historical cost 107
- Accumulated amortization (-) (67)
- Writedowns (-) (2)
Net carrying amount 38

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Additions include 20 million euros invested to acquire exclusive rights for 10 years to provide steam to flower greenhouses and 22 million euros in hydrocarbon research and exploration costs. Research and exploration costs are charged in full to income in the year they are incurred, unless they meet the requirement for capitalization of IFRS 6.
No intangible assets were acquired under leases.
 
6. Investments in Associates and Available-for-sale Investments
The total includes 59 million euros in investments in associates valued by the equity method and 74 million euros in available-for-sale investments. These investments, which are valued at fair value, consist of investments in publicly traded companies (30 million euros) and investments in subsidiaries that were not consolidated due to ownership restrictions (44 million euros).
The table below shows the main changes that occurred in 2005:
 

  Investments in Available-for-sale
(in millions of euros) associates investments
Balance at 12/31/04 (A) 112 154
Changes in 2005:    
- Disposals (-) (36) (158)
- Additions 1 1
- Changes in share capital 2 25
- Revaluations - 35
- Writedowns (-) (3) (2)
- Change in the scope of consolidation - 2
- Reclassifications (17) 17
Total changes (B) (53) (80)
Balance at 12/31/05 59 74
Breakdown:    
- Historical cost 58 41
- Revaluations 5 35
- Writedowns (-) (4) (2)
Net carrying amount 59 74
 
An analysis of the changes is as follows:
  • Disposals, which totaled 194 million euros, refer mainly to the following transactions: sale of a 5.1% interest in AEM Spa for 155 million euros, which generated a gain of 23 million euros (16 million euros of which was already included in shareholders' equity at January 1, 2005); disposal of a 0.93% interest in Gemina for 3 million euros, which generated a gain of about 3 million euros (the fair value of this investment was already reflected in shareholders' equity at January 1, 2005); and divestiture of a 39% interest in Sidi Krir for 33 million euros.
  • Changes in share capital of 27 million euros include advances on capital contributions provided to IPSE 2000 (7 million euros), Terminale GNL Adriatico Srl (16 million euros) and Nuova Cisa Spa (1 million euros).
  • Revaluations, which amounted to 35 million euros, refer mainly to available-for-sale investments, which, as required by IAS 39, are valued at fair value, with any resulting gains or losses posted to equity reserves, net of the impact of deferred taxes. In the case of this account, revaluation included increases of 19 million euros for RCS Mediagroup and 16 million euros for AEM Spa, which was later sold.
  • Writedowns totaling 5 million euros reflect primarily adjustments made to the carrying amounts of investments to reflect the value of the pro-rata interest in the underlying shareholders' equity. They also include a 1-million-euro writedown of the investment in Gemina, which was valued at fair value as required by IAS 39 prior to its sale.
  • The change in the scope of consolidation (2 million euros) reflects the deconsolidation of Finimeg Spa.