In assessing its capital structure, Eni uses net borrowings before the accounting effects of IFRS 16 (lease obligations), which is a non-GAAP financial measure. Eni calculates net borrowings as total finance debt (short-term and long-term debt) derived from its Consolidated Financial Statements prepared in accordance with IFRS less: cash and cash equivalents, held-for-trading securities and certain marketable investments not related to operations including, among others, non-operating financing receivables. Held-for-trading securities are part of a strategic reserve of liquidity that management has established by reinvesting proceeds from the Group disposal plans and is intended to provide a certain degree of financial flexibility in case of a prolonged price downturn, tight financial markets or in view of other Company’s purposes. Non-operating financing receivables consist mainly of deposits with banks and other financing institutions and deposits in escrow. These assets are generally intended to absorb temporary surpluses of cash as part of the Company’s ordinary management of financing activities.

Management believes that net borrowings is a useful measure of Eni’s financial condition as it provides insight about the soundness of Eni’s capital structure and the ways by which Eni’s operating assets are financed.

(€ million)	December 31, 2022		December 31, 2021
A. Cash	3,351		2,758
B. Cash equivalents	6,804		5,496
C. Other current financial assets	9,736		10,553
D Liquidity (A+B+C)	19,891		18,807
E. Current financial debt	6,588		3,613
F. Current portion of non-current financial debt	1,839		1,415
G. Current financial indebtedness (E+F)	8,427		5,028
H. Net current financial indebtedness (G-D)	(11,464	)	(13,779	)
I. Non-current financial debt	6,073		9,058
J. Debt instruments	17,368		19,045
K. Non‐current trade and other payables
L. Non-current financial indebtedness (I+J+K)	23,441		28,103
M. Total financial indebtedness (H+L)	11,977		14,324

Cash and cash equivalent include approximately €97 million subject to foreclosure measures and payment guarantees.

Other current financial assets include: (i) financial assets at fair value through profit or loss, disclosed in note 7 – Financial assets at fair value through profit or loss; (ii) financing receivables, disclosed in note 17 – Other financial assets.

Current portion of non-current financial debt and non-current financial debt include lease liabilities of €884 million and €4,067 million (€948 million and €4,389 million at December 31, 2021, respectively) of which €494 million (€1,684 million at December 31, 2021) related to the share of joint operators in upstream projects operated by Eni which will be recovered through a partner cash-call billing process. More information on lease liabilities is reported in note 13 – Right-of-use assets and lease liabilities.