Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsNotes to for the the Consolidated years and ended Company 31 december Financial Statements 2012 and 2011for the years ended 31 December 2012 and 201112. PROVISIONSProvisions are analysed as follows:GroupCompanyThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Charge for the period 54,411 71,755 12,171 15,679Write-back for the period -38,356 -71,063 -15,098 -6,16316,055 692 -2,927 9,516The caption Provisions for the period is analysed in the note 37.13. DEPRECIATION, AMORTISATION EXPENSE AND IMPAIRMENTDepreciation, amortisation expense and impairment are analysed as follows:GroupCompanyThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Property, plant and equipment:Buildings and other constructions 15,836 14,510 2,899 2,087Plant and machinery 936,805 932,472 26 24Other 77,445 72,338 11,075 9,043Impairment loss 54,131 5,058 - -1,084,217 1,024,378 14,000 11,154Intangible assets:Concession rights and impairment 78,319 86,451 - -Intangible assets related to concessions - IFRIC 12 328,248 367,436 - -Other rights 3,105 3,406 8 8409,672 457,293 8 81,493,889 1,481,671 14,008 11,162Compensation of amortisation and depreciation:Partially-funded property, plant and equipment -24,901 -29,654 - -Impairment of Goodwill - 35,489 - -1,468,988 1,487,506 14,008 11,162The partially-funded property, plant and equipment is depreciated on the same basis and at the same rates as the Group’s remaining assets, being thecorresponding cost compensated through the amortisation of the amounts received (registered under Trade and other payables from commercial activities) on thesame basis and at the same rates as the corresponding partially-funded assets.During 2012, as a result of impairment tests related to wind generation assets (see note 19) in Spain and United States of America, EDPR Group recognized impairmentlosses of 45,617 and 7,784 thousands of Euros, respectively (see note 17).In 2011, the caption Impairment of goodwill includes essentially, an impairment loss of EDPR Italia Group of 34,737 thousands of Euros resulting from the assessmentof the recoverability of these assets based on the update of the assumptions in the estimates of MW to install and future energy prices (see note 19).14. GAINS/ (LOSSES) ON THE SALE OF FINANCIAL ASSETSGains / (losses) on the sale of financial assets for the Company are analysed as follows:Dec 2012Dec 2011Thousands of Euros Disposal % Value Disposal % ValueAvailable for sale investments:Ampla Energia e Serviços, S.A. and Ampla Investimentos e Serviços, S.A. - - 7.70% 9,983Investments in subsidiaries and associates:EDP - Energias do Brasil, S.A. 11.23% 87,945 13.80% 110,36287,945 120,345In August 2012, the shares that EDP, S.A. held on EDP Energias do Brasil, S.A., corresponding to 53,482,659 ordinary shares, representing 11.23% of the voting rights,totalling 193,909 thousands of Euros were used as a contribution in kind to subscribe a share capital increase in EDP Investments and Services, S.L. of 281,854thousands of Euros. In accordance with the company’s accounting policy, common control transactions are accounted for in company’s separate financial statementsin accordance with the fair value accounting method, which determined the recognition of a gain of 87,945 thousands of Euros. In October 2012, the financialinvestment in EDP Investments and Services, S.L. was allocated to EDP Branch in Spain.On 4 October 2011, the sale of the investment held by EDP, S.A. in the share capital of Ampla Energia e Serviços, S.A. and Ampla Investimentos e Serviços, S.A. wascompleted for 85,000 thousands of Euros, generating a capital gain of 9,983 thousands of Euros, net of transaction costs of 503 thousands of Euros.On July 2011, EDP closed the process of the secondary public distribution offer of EDP Energias do Brasil, S.A. ordinary shares of 21,911,460 shares corresponding to13.8% of EDP Brasil's share capital. This sale in the amount of 810.7 million of Reais (corresponding approximately to 363 million of Euros, based on the foreignexchange rate at liquidation date), generated a gain on a individual basis of 110,362 thousands of Euros.EDP - Annual Report 2012199