A breakdown of deferred taxes is as follows:
(millions of euros) 12/31/04 Provisions Utilizations IAS 39 to sharehol. equ. Reclass. 12/31/05
Provision for deferred taxes            
Valuation difference of property, plant and equipment 1,212 54 (125) - - 1,141
Adoption of IAS 17 to value finance leases 42 5 - - - 47
Adoption of IAS 39 to value financial instruments:
- impact on the Income Statement - 11 (1) - (2) 8
- impact on Shareholders' Equity -     14 - 14
Other deferred-tax liabilities 6 1 - - - 7
Total provision for deferred taxes 1,260 71 (126) 14 (2) 1,217
Offsetting (52)       (69) (121)
Total net provisions for deferred taxes 1,208 71 (126) 14 (71) 1,096
Deferred-tax assets:
Tax loss carryforward 52 60 (7) - - 105
Taxed reserves for risks 42 36 (7) - - 71
Adoption of IAS 39 to value financial instruments:
- impact on the Income Statement - 5 (6) - 2 1
- impact on Shareholders' Equity - -   7 - 7
Other deferred-tax assets 54 7 (20) - - 41
Total deferred-tax assets 148 108 (40) 7 2 225
Offsetting (52) - - - (69) (121)
Total net deferred tax assets 96 108 (40) 7 (67) 104
Provision for deferred taxes net of deferred-tax assets 1,112         992
29. Profit (Loss) from Discontinued Operations
The profit of 86 million euros reflects the net gain generated by the sale of the engineering operations (Tecnimont Group). This amount is net of the provisions for guarantees set aside at the time of sale. Additional information is provided in the section of this Report entitled "Information about the Discontinued Operations."
30. Profit (Loss) per Share
The table below provides a breakdown of the computation of earnings or loss per share in accordance with IAS 33, which are shown at the bottom of the income statement.
Earnings per share have been computed taking into account the potential common shares represented by the outstanding portion of the warrants issued in 2003 and the stock options awarded to Group executives.
  2004 (in millions of euros) 2005
  354 Group interest in profit (loss) 500
  (3) Net income attributable to convertible and (3)
    nonconvertible savings shares (1)  
  351 Group interest in net income attributable to the common shares (A) 497
    Weighted average number of shares outstanding (common and savings)  
    determined for the purpose of computing earnings per share:  
  4,233,223,651 - basic (B) 4,266,333,515
  4,569,109,690 - diluted (C) (2) 4,688,483,256
    Profit (Loss) per share (in euros)  
  0,0829 - basic (A/B) 0,1165
  0,0768 - diluted (A/C) (2) 0,1060
(1) 3% of par value for the higher dividend paid to the savings shares compared with the common shares. Savings shares are treated as common shares, since the portion of net income attributable to the savings shares has been deducted from Group interest in net income.
(2) When the Group reports a loss, the potential shares are deemed to have no dilutive effect.  
Other information
Information About the Discontinued Operations (IFRS 5)
On October 25, 2005, Edison completed the sale of 100% of the share capital of Tecnimont Spa to Maire Tecnimont Spa, a company of the Maire Group.
Concurrently with the sale, Edison subscribed a capital increase carried out by Maire Tecnimont, paying 50 million euros for a 19.5% interest in Maire Tecnimont Spa. The remaining 80.5% of this company is owned by Maire Holding Spa. Edison's investment is assisted by a put-and-call option that can be exercised starting in the fourth year.
Edison has chosen to exercise its put option immediately. As a result, the shares covered by the option will be transferred to Maire Holding within three years of today's date, unless an earlier exercise becomes possible pursuant to the terms of the contract or if Maire Holding exercises its call option.
The sales price for Tecnimont was set at 180 million euros, net of the finance charges that Edison has incurred to monetize the deferred portion of the price (30 million euros) and the receivable of 50 million euros generated by the exercise of the put option. These assets were monetized when Edison signed a contract assigning these receivables to a bank.
In view of certain guarantees that Edison provided on behalf of Tecnimont to secure outstanding orders, Maire Tecnimont has undertaken a blanket obligation to release Edison from these guarantees as quickly as possible and has provided certain guarantees for Edison's benefit. The sale of Tecnimont generated a gain of about 86 million euros in Edison's consolidated financial statements (net of related provisions for guarantees) but will not have a material effect on the net consolidated financial position
BALANCE SHEET OF THE ENGINEERING OPERATIONS 9/30/05
(in millions of euros)  
Non-current assets 33
Current assets 403
Total assets 436
Group interest in shareholders' equity 69
Minority interest in shareholders' equity -
Total shareholders' equity 69
Non-current liabilities 58
Current liabilities 309
Total liabilities and shareholders' equity 436
INCOME STATEMENT OF THE ENGINEERING OPERATIONS 1/1/05 to 9/30/05
(in millions of euros)  
Sales revenues 313
EBITDA 14
Depreciation and amortization (3)
EBIT 11
Net financial expense (3)
Profit before taxes 8
Net profit 1
During the period from July 1, 2005 to September 30, 2005, the discontinued operations generated a profit of 109,000 euros.