Provisions for employee benefits (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of provision for employee benefits

(€ million)	December 31, 2023	December 31, 2022
Italian defined benefit plans	156	177
Foreign defined benefit plans	121	142
FISDE, foreign medical plans and other	118	126
Defined benefit plans	395	445
Other benefit plans	353	341
Provision for employee benefits	748	786

Schedule of present value of employee benefits, estimated by applying actuarial techniques

	2023												2022
(€ million)	Italian defined benefit plans		Foreign defined benefit plans		FISDE,foreign medical plans and other		Defined benefit plans		Other benefit plans		Total		Italian defined benefit plans		Foreign defined benefit plans		FISDE, foreign medical plans and other		Defined benefit plans		Other benefit plans		Total
Present value of benefit liabilities at beginning of year	177		644		126		947		341		1,288		227		761		162		1,150		301		1,451
Current service cost	1		10		2		13		51		64		1		11		3		15		52		67
Interest cost	6		29		4		39		10		49		2		24		2		28		1		29
Remeasurements:	5		24		1		30		(2	)	28		(26	)	(118	)	(33	)	(177	)	(22	)	(199	)
- actuarial (gains) losses due to changes in demographic assumptions	1		1				2		(1	)	1				9				9		(2	)	7
- actuarial (gains) losses due to changes in financial assumptions	4		8		2		14		1		15		(34	)	(144	)	(35	)	(213	)	(15	)	(228	)
- experience (gains) losses			15		(1	)	14		(2	)	12		8		17		2		27		(5	)	22
Past service cost and (gain) loss on settlements	2		(13	)	4		(7	)	91		84										127		127
Plan contributions:			1				1				1				1				1				1
- employee contributions			1				1				1				1				1				1
Benefits paid	(37	)	(39	)	(9	)	(85	)	(97	)	(182	)	(28	)	(30	)	(8	)	(66	)	(87	)	(153	)
Reclassification to liabilities directly associated with assets held for sale			(147	)	(6	)	(153	)	(2	)	(155	)			(2	)	(2	)	(4	)			(4	)
Currency translation differences and other changes	2		(129	)	(4	)	(131	)	(39	)	(170	)	1		(3	)	2				(31	)	(31	)
Present value of benefit liabilities at end of year (a)	156		380		118		654		353		1,007		177		644		126		947		341		1,288
Plan assets at beginning of year			503				503				503				633				633				633
Interest income			19				19				19				18				18				18
Return on plan assets															(117	)			(117	)			(117	)
Past service cost and (gains) losses settlements															(1	)			(1	)			(1	)
Plan contributions:			25				25				25				14				14				14
- employee contributions			1				1				1				1				1				1
- employer contributions			24				24				24				13				13				13
Benefits paid			(31	)			(31	)			(31	)			(21	)			(21	)			(21	)
Reclassification to liabilities directly associated with assets held for sale			(123	)			(123	)			(123	)
Currency translation differences and other changes			(132	)			(132	)			(132	)			(23	)			(23	)			(23	)
Plan assets at end of year (b)			261				261				261				503				503				503
Asset ceiling at beginning of year			1				1				1				1				1				1
Change in asset ceiling			1				1				1
Asset ceiling at end of year (c)			2				2				2				1				1				1
Net liability recognized at end of year (a-b+c)	156		121		118		395		353		748		177		142		126		445		341		786

Schedule of costs charged to profit and loss account and other comprehensive income

(€ million)	Italian defined benefit plans	Foreign defined benefit plans		FISDE, foreign medical plans and other	Defined benefit plans		Other benefit plans		Total
2023
Current service cost	1	10		2	13		51		64
Past service cost and (gains) losses on settlements	2	(13	)	4	(7	)	91		84
Interest cost (income), net:
- interest cost on liabilities	6	29		4	39		10		49
- interest income on plan assets		(19	)		(19	)			(19	)
Total interest cost (income), net	6	10		4	20		10		30
- of which recognized in "Payroll and related cost"							10		10
- of which recognized in "Financial income (expense)"	6	10		4	20				20
Remeasurements for long-term plans							(2	)	(2	)
Administrative fees paid
Total	9	7		10	26		150		176
- of which recognized in "Payroll and related cost"	3	(3	)	6	6		150		156
- of which recognized in "Financial income (expense)"	6	10		4	20				20
2022
Current service cost	1	11		3	15		52		67
Past service cost and (gains) losses on settlements							127		127
Interest cost (income), net:
- interest cost on liabilities	2	24		2	28		1		29
- interest income on plan assets		(18	)		(18	)			(18	)
Total interest cost (income), net	2	6		2	10		1		11
- of which recognized in "Payroll and related cost"							1		1
- of which recognized in "Financial income (expense)"	2	6		2	10				10
Remeasurements for long-term plans							(22	)	(22	)
Administrative fees paid		1			1				1
Total	3	18		5	26		158		184
- of which recognized in "Payroll and related cost"	1	12		3	16		158		174
- of which recognized in "Financial income (expense)"	2	6		2	10				10

F-80

Table of Contents

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

	2023					2022
(€ 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
Actuarial (gains)/losses due to changes in demographic assumptions	1	1			2			9				9
Actuarial (gains)/losses due to changes in financial assumptions	4	8	2		14	(34	)	(144	)	(35	)	(213	)
Experience (gains) losses		15	(1	)	14	8		17		2		27
Return on plan assets								117				117
Changes in asset ceiling		1			1
Remeasurements	5	25	1		31	(26	)	(1	)	(33	)	(60	)

Schedule of plan assets

(€ million)	Cash and cash equivalents	Equity securities	Debt securities	Real estate	Derivatives	Investment funds	Assets held by insurance companies	Other	Total
December 31, 2023
Plan assets with a quoted market price	4	24	121	11	55		5	15	235
Plan assets without a quoted market price							26		26
	4	24	121	11	55		31	15	261
December 31, 2022
Plan assets with a quoted market price	23	25	260	11	4	4	26	146	499
Plan assets without a quoted market price							4		4
	23	25	260	11	4	4	30	146	503

Schedule of actuarial assumptions used in measurement of defined benefit liabilities and estimated cost

		Italian defined benefit plans	Foreign defined benefit plans	FISDE	Other benefit plans
2023
Discount rate	(%)	3.1	1.4-25.9	3.1	3.1-3.3
Rate of compensation increase	(%)	3.0	1.9-20.0
Rate of price inflation	(%)	2.0	1.2-15.5	2.0	2.0
Life expectations on retirement at age 65	(years)		14-23	24
2022
Discount rate	(%)	3.7	2.2-15.4	3.7	3.4-3.7
Rate of compensation increase	(%)	3.4	1.9-12.5
Rate of price inflation	(%)	2.4	1.2-11.5	2.4	2.4
Life expectations on retirement at age 65	(years)		13-24	24

Schedule of 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
2023
Discount rate	(%)	3.2-3.3	1.4-4.5	3.2-25.9	6.9	1.4-25.9
Rate of compensation increase	(%)	1.9-3.0	3.0	5.0-20.0	5.0	1.9-20.0
Rate of price inflation	(%)	1.9-2.1	1.2-3.4	3.1-15.5	3.5	1.2-15.5
Life expectations on retirement at age 65	(years)	21-23	23	14-18		14-23
2022
Discount rate	(%)	3.5-3.8	2.2-4.8	3.8-15.4	7.0	2.2-15.4
Rate of compensation increase	(%)	1.9-3.0	3.0-4.0	1.9-12.5	5.0	1.9-12.5
Rate of price inflation	(%)	1.9-2.2	1.2-3.5	3.0-11.5	3.0	1.2-11.5
Life expectations on retirement at age 65	(years)	21-22	23-24	13-17		13-24

Schedule of 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, 2023
2024	14	24		9	107
2025	13	22		9	103
2026	14	23		7	86
2027	16	22		7	30
2028	18	23		7	14
2029 and thereafter	81	7		79	13
Weighted average duration (years)	6.8	13.6		10.8	2.3
December 31, 2022
2023	14	29		7	94
2024	13	28		7	95
2025	14	26		7	85
2026	17	35		7	30
2027	15	31		7	16
2028 and thereafter	104	(7	)	91	21
Weighted average duration (years)	7.5	13.2		11.5	2.5