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9. Equity investments

 20162015
 Equity investmentsRisk provisionsTotalEquity investmentsRisk provisionsTotal
1 January7,387(170)7,2177,494(57)7,437
Acquisitions/subscriptions4317021319257249
Effect from Mergers/Demergers(495)(3)(498)---
Reclassifications in assets/liabilities held for sale(1,151)-(1,151)---
Impairment losses(136)(53)(189)(231)(170)(401)
Disposals(5)-(5)(71)-(71)
Other changes(2)-(2)3-3
31 December5,641(56)5,5857,387(170)7,217

Appendices no. 1 and 2 to these Notes provide, respectively, the changes that occurred in the year and detailed information on equity investments showing the total of assets and liabilities, as required by IFRS 12.

If the relevant conditions are fulfilled, the carrying amount of equity investments is tested for impairment in order to determine any possible loss in value. As mentioned, the carrying amount of equity investments is mainly tested by making reference to the relevant divisions as a whole; for any information on the procedures for the performance of tests and any related information, reference should then be made to Note 7.

Among the changes that occurred during the period were the following movements:

  • the derecognition of equity investments falling within the scope of the mergers or attributable to the demerged business units within the demergers, for a total amount of €mil. 4,426;
  • the recognition of new equity investments of the companies and merged business units for €mil. 3,931 and of provisions for risks on equity investments for €mil. 3;
  • the reclassification, under “Non-current assets held for sale”, involving the equity investment in AgustaWestland Ltd, which was transferred to Leonardo MW within the One Company process in the United Kingdom (€mil. 1,109) at the beginning of 2017, as well as other international investments of minor importance (equity investments of €mil. 42 and provisions for risks on equity investments of €mil. 6), which were transferred to AgustaWestland Holdings Ltd (Note 6) at the beginning of 2017;
  • actions regarding the equity investments, equal to €mil. 213, mainly relating to AnsaldoBreda S.p.A., which were taken partly in consideration of the use of the provision for risks set aside at 31 December 2015 and partly against the adjustment to the carrying amount of the equity investments;
  • the write-downs for the period, mainly relating to AnsaldoBreda S.p.A. (€mil. 22), Selex Es S.p.A. (€mil. 54), AgustaWestland S.p.A. (€mil. 57), So.ge.Pa. S.p.A. (€mil. 12) and Avio S.p.A. (€mil. 31). The latter write-down was required in order to adjust the carrying amount at the value attributed to Avio within the scope of the transaction with Space 2, which is described in the section on “Industrial Transactions”. The write-downs were required against the losses recognised by the investees during the reporting period considering that the residual assets are still managed by the investees. These write-downs led to an overall reduction in the carrying amount of the equity investments for €mil. 136 and €mil. 53, against the negative equity of AgustaWestland S.p.A. and were offset by accruals to the provision for risks.

Finally, below is presented a comparison of the book value and the average market price of the listed shares of Eurotech SpA in December 2016:

Listed companyNumber of shares heldStock Exchange ValueBook ValueDifference Unit
in €
Difference Total
in €mil.
Unit €Total €mil.Unit €Total €mil.
Eurotech SpA3.936.4611,40061,46960,07-