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Provisions for employee benefits

12 Months Ended

Dec. 31, 2018

Provisions for Employee Benefits [Abstract]

Disclosure of employee benefits [text block]

21 Provisions for employee benefits

(€ million)	December 31, 2018		December 31, 2017
Italian defined benefit plans		275		284
Foreign defined benefit plans		385		409
FISDE, foreign medical plans and other		148		135
Defined benefit plans		808		828
Other benefit plans		309		194
Provision for employee benefits		1,117		1,022

The liability relating to Eni’s commitment to cover the healthcare costs of personnel is determined on the basis of the contributions paid by the Company.

Other employee benefit plans related to deferred monetary incentive plans for €136 million, the

isopensione

plans of Eni gas e luce SpA for €132 million, jubilee awards for €22 million, long-term incentive plan still outstanding for €8 million and other long-term plans for €11 million.

Present value of employee benefits, estimated by applying actuarial techniques, consisted of the following:

	December 31, 2018																		December 31, 2017
							FISDE,																		FISDE
							foreign																		foreign
	Italian			Foreign			medical												Italian			Foreign			medical
	defined			defined			plans			Defined			Other						defined			defined			plans			Defined			Other
	benefit			benefit			and			benefit			benefit						benefit			benefit			and			benefit			benefit
(€ million)	plans			plans			other			plans			plans			Total			plans			plans			other			plans			plans			Total
Present value of benefit liabilities at beginning of year		284			997			135			1,416			194			1,610			298			895			136			1,329			158			1,487
Current cost					27			2			29			42			71						24			2			26			54			80
Interest cost		4			31			2			37			1			38			3			29			2			34			1			35
Remeasurements:		1			(25	)		13			(11	)		30			19			(6	)		54			(1	)		47			3			50
- actuarial (gains) losses due to changes in demographic assumptions																							(14	)					(14	)					(14	)
- actuarial (gains) losses due to changes in financial assumptions					(31	)		1			(30	)		29			(1	)		(5	)		71						66			3			69
- experience (gains) losses		1			6			12			19			1			20			(1	)		(3	)		(1	)		(5	)					(5	)
Past service cost and (gains) losses settlements					2			1			3			115			118						(1	)		2			1			28			29
Plan contributions:																							1						1						1
- employee contributions					1						1						1						1						1						1
Benefits paid		(15	)		(35	)		(9	)		(59	)		(74	)		(133	)		(10	)		(37	)		(6	)		(53	)		(36	)		(89	)
Reclassification to asset held for sale					(8	)					(8	)					(8	)					(12	)					(12	)		(2	)		(14	)
Changes in the scope of consolidation					(90	)					(90	)		(2	)		(92	)		(1	)		(15	)		(1	)		(17	)		(3	)		(20	)
Currency translation differences and other changes		1			26			4			31			3			34						59			1			60			(9	)		51
Present value of benefit liabilities at end of year (a)		275			925			148			1,348			309			1,657			284			997			135			1,416			194			1,610
Plan assets at beginning of year					588						588						588						619						619						619
Interest income					17						17						17						20						20						20
Return on plan assets					(21	)					(21	)					(21	)					12						12						12
Plan contributions:					25						25						25						24						24						24
- employee contributions					1						1						1						1						1						1
- employer contributions					24						24						24						23						23						23
Benefits paid					(26	)					(26	)					(26	)					(25	)					(25	)					(25	)
Changes in the scope of consolidation					(64	)					(64	)					(64	)					(15	)					(15	)					(15	)
Currency translation differences and other changes					26						26						26						(47	)					(47	)					(47	)
Plan assets at end of year (b)					545						545						545						588						588						588
Asset ceiling at beginning of year
Change in asset ceiling					5						5						5
Asset ceiling at end of year (c)					5						5						5
Net liability recognized at end of year (a-b+c)		275			385			148			808			309			1,117			284			409			135			828			194			1,022

Employee benefit plans included the liability attributable to partners operating in exploration and production

activities

of €181 million

(

€177 million at December 31, 2017). Eni recorded a receivable for an amount equivalent to such liability.

Costs charged to the profit and loss account consisted of the following:

(€ million)	Italian defined benefit plans		Foreign defined benefit plans			FISDE, foreign medical plans and other		Defined benefit plans			Other benefit plans		Total
2018
Current cost				27			2		29			42		71
Past service cost and (gains) losses on settlements				2			1		3			115		118
Interest cost (income), net:
- interest cost on liabilities		4		31			2		37			1		38
- interest income on plan assets				(17	)				(17	)				(17	)
Total interest cost (income), net		4		14			2		20			1		21
- of which recognized in “Payroll and related cost”												1		1
- of which recognized in “Financial income (expense)”		4		14			2		20					20
Remeasurements for long-term plans												30		30
Total		4		43			5		52			188		240
- of which recognized in “Payroll and related cost”				29			3		32			188		220
- of which recognized in “Financial income (expense)”		4		14			2		20					20
2017
Current cost				24			2		26			54		80
Past service cost and (gains) losses on settlements				(1	)		2		1			28		29
Interest cost (income), net:
- interest cost on liabilities		3		29			2		34			1		35
- interest income on plan assets				(20	)				(20	)				(20	)
Total interest cost (income), net		3		9			2		14			1		15
- of which recognized in “Payroll and related cost”												1		1
- of which recognized in “Financial income (expense)”		3		9			2		14					14
Remeasurements for long-term plans												3		3
Total		3		32			6		41			86		127
- of which recognized in “Payroll and related cost”				23			4		27			86		113
- of which recognized in “Financial income (expense)”		3		9			2		14					14

Costs of defined benefit plans recognized in other comprehensive income consisted of the following:

	2018										2017
(€ million)	Italian defined benefit plans		Foreign defined benefit plans			FISDE, foreign medical plans and other		Total			Italian defined benefit plans			Foreign defined benefit plans			FISDE, foreign medical plans and other			Total
Remeasurements
Actuarial (gains)/losses due to changes in demographic assumptions															(14	)					(14	)
Actuarial (gains)/losses due to changes in financial assumptions				(31	)		1		(30	)		(5	)		71						66
Experience (gains) losses		1		6			12		19			(1	)		(3	)		(1	)		(5	)
Return on plan assets				21					21						(12	)					(12	)
Change in asset ceiling				5					5
		1		1			13		15			(6	)		42			(1	)		35

Plan assets consisted of the following:

(€ million)	Cash and cash equivalents		Equity securities		Debt securities		Real estate		Derivatives		Investment funds		Assets held by insurance company		Other		Total
December 31, 2018
Plan assets with a quoted market price		115		37		238		6		2		56		18		70		542
Plan assets without a quoted market price														3				3
		115		37		238		6		2		56		21		70		545
December 31, 2017
Plan assets with a quoted market price		16		48		329		10		9		60		13		100		585
Plan assets without a quoted market price														3				3
		16		48		329		10		9		60		16		100		588

The main actuarial assumptions used in the measurement of the liabilities at year-end and in the estimate of costs expected for

2019

consisted of the following

		Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Other long-term benefit plans
2018
Discount rate	(%)		1.5		0.8-18.0		1.5		0.2-1.5
Rate of compensation increase	(%)		2.5		1.5-16.5
Rate of price inflation	(%)		1.5		0.8-16.0		1.5		1.5
Life expectations on retirement at age 65	(years)				13-25		24
2017
Discount rate	(%)		1.5		0.6-15.5		1.5		0.0-1.5
Rate of compensation increase	(%)		2.5		1.5-13.5
Rate of price inflation	(%)		1.5		0.6-14.8		1.5		1.5
Life expectations on retirement at age 65	(years)				13-24		24

The following is an analysis by geographical area related to the main actuarial assumptions used in the valuation of the principal foreign defined benefit plans:

		Euro area		Rest of Europe		Africa		Other areas		Foreign defined benefit plans
2018
Discount rate	(%)		1.5-1.9		0.8-2.9		3.7-18.0		8.0-13.3		0.8-18.0
Rate of compensation increase	(%)		1.5-3.0		2.5-3.8		5.0-16.5		10.0-13.3		1.5-16.5
Rate of price inflation	(%)		1.5-2.0		0.8-3.3		3.7-16.0		3.5-5.0		0.8-16.0
Life expectations on retirement at age 65	(years)		21-22		23-25		13-17				13-25
2017
Discount rate	(%)		1.5-1.8		0.6-2.5		3.7-15.5		4.1-8.0		0.6-15.5
Rate of compensation increase	(%)		1.5-3.0		2.5-3.7		5.0-13.5		1.5-10.0		1.5-13.5
Rate of price inflation	(%)		1.5-1.9		0.6-3.4		3.7-14.8		1.5-4.8		0.6-14.8
Life expectations on retirement at age 65	(years)		21-24		22-24		13-17				13-24

The effects of a possible change in the main actuarial assumptions at the end of the year are listed below:

	Discount rate					Rate of price inflation		Rate of increases in pensionable salaries		Healthcare cost trend rate		Rate of increases to pensions in payment
(€ million)	0.5% Increase			0.5% Decrease		0.5% Increase		0.5% Increase		0.5% Increase		0.5% Increase
December 31, 2018
Italian defined benefit plans		(12	)		13		8
Foreign defined benefit plans		(58	)		65		23		15				18
FISDE, foreign medical plans and other		(7	)		8						6
Other benefit plans		(5	)		3		1
December 31, 2017
Italian defined benefit plans		(13	)		14		9
Foreign defined benefit plans		(72	)		79		24		20				13
FISDE, foreign medical plans and other		(7	)		7						7
Other benefit plans		(3	)		1		1

The sensitivity analysis was performed based on the results for each plan through assessments calculated considering modified parameters.

The amount of contributions expected to be paid for employee benefit plans in the next year amounted to €129 million, of which €48 million related to defined benefit plans.

The following is an analysis by maturity date of the liabilities for employee benefit plans and their relative weighted average duration:

(€ million)	Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Other benefit plans
December 31 , 2018
2019		15		54		9		81
2020		16		56		7		72
2021		18		63		6		67
2022		14		64		6		20
2023		11		74		6		17
2024 and thereafter		201		74		114		57
Weighted average duration (years)		10.1		17.4		12.8		2.6
December 31, 2017
2018		16		47		7		64
2019		17		65		7		58
2020		18		70		6		45
2021		17		79		6		7
2022		14		84		6		5
2023 and thereafter		202		64		103		25
Weighted average duration (years)		10.1		17.5		12.8		2.8