Equity

Consolidated equity rose from euro 2,028.0 million at December 31, 2010 to euro 2,191.6 million at December 31, 2011.

The change, whose detailed breakdown is shown in the table below, stemmed mainly from the net income for the period (positive euro 440.7 million), offset by pay-outs of euro 83.5 million for dividends and euro 62.0 million from the reduction in translation of assets denominated in foreign currencies. The final value was also impacted by the buy-back of minority shares in China and in the entities Pirelli Ambiente S.p.A. and Pirelli EcoTechnology S.p.A., as well as the fair value measurement of financial assets.

Equity attributable to owners of Pirelli & C. S.p.A. at December 31, 2011 was euro 2,146.1 million (euro 4.398 per share), compared with euro 1,990.8 million at December 31, 2010 (euro 4,080 per share).

(in millions of euro)   
  GROUP NON-CONTROllING INTERESTS TOTAL
EQUITY AT 12/31/2010 1,990.8 37.2 2,028.0
Translation differences (63.0) 1.4 (61.6)
Net income/(loss) for the year 451.6 (10.9) 440.7
Adjustment to fair value of other financial assets/ derivative instruments (76.6) - (76.6)
Other changes to items recognised in equity 22.6 - 22.6
Net actuarial gains/(losses) on employee benefits (80.6) - (80.6)
Dividends paid (81.2) (2.3) (83.5)
Venezuela inflation effect 21.7 0.9 22.6
Acquisition of Pirelli Tyre Co. Ltd - China non-controlling interests (10.2) (17.8) (28.0)
Transfer of non-controlling interests in environment products and services BU (32.7) 25.7 (7.0)
Capital increases - 9.9 9.9
Other changes 3.7 1.4 5.1
Total changes 155.3 8.3 163.6

The statement of reconciliation between the equity of the parent Pirelli & C. S.p.A. and the consolidated equity attributable to the owners of the parent is presented below, pursuant to the Consob Notice of July 28, 2006.

(in millions of euro)
  SHARE CAPITAl TREASURY RESERVES NET INCOME TOTAL
EQUITY OF PIRELLI & C. S.P.A. AT 12/31/2011 1,343.3 124.8 272.5 1,740.6
Net income for the year of consolidated companies (before consolidation adjustments) - - 344.5 344.5
Share capital and reserves of consolidated companies (before consolidation adjustments) - 1,224.5 - 1,224.5
Consolidation adjustments:     
- carrying value of equity investments in consolidated companies - (1,162.6) - (1,162.6)
- intercompany dividends - 232.2 (232.2) -
- others - (67.6) 66.6 (1.0)
CONSOLIDATED EQUITY OF GROUP AT 12/31/2011 1,343.3 351.3 451.4 2,146.0