DHL 2014 Annual Report Download - page 168

e reconciliation to the eective income tax expense is shown
below, based on consolidated net prot before income taxes and
the expected income tax expense:
Reconciliation
 m
2013 2014
Profit before income taxes 2,572 2,577
Expected income taxes –766 –778
Deferred tax assets not recognised for initial
differences 20 13
Deferred tax assets of German Group companies
not recognised for tax loss carryforwards and
temporary differences 242 346
Deferred tax assets of foreign Group companies
not recognised for tax loss carryforwards and
temporary differences 51 59
Effect of current taxes from previous years 113 4
Tax-exempt income and non-deductible expenses –87 –117
Differences in tax rates at foreign companies 66 73
Income taxes –361 – 400
e dierence from deferred tax assets not recognised for initial
dierences is due to temporary dierences between the carrying
amounts in the  nancial statements and in the tax accounts of
Deutsche Post  that result from initial dierences in the opening
tax accounts as at  January . In accordance with  . (b)
and  . (b), the Group did not recognise any deferred tax
assets in respect of these temporary dierences, which related
mainly to property, plant and equipment as well as to provisions
for pensions and similar obligations. e remaining temporary dif-
ferences between the carrying amounts in the  nancial state-
ments and in the opening tax accounts amounted to  million
as at  December  (previous year:  million).
e eects from deferred tax assets of German Group com-
panies not recognised for tax loss carryforwards and temporary
dierences relate primarily to Deutsche Post  and members
of its consolidated tax group. Eects from deferred tax assets of
foreign companies not recognised for tax loss carryforwards and
temporary dierences relate primarily to the Americas region.
 million (previous year:  million) of the eects from
deferred tax assets not recognised for tax loss carryforwards and
temporary dierences relates to the reduction of the eective
income tax expense due to the utilisation of tax loss carryforwards
and temporary dierences, for which deferred tax assets had previ-
ously not been recognised. In addition, the recognition of deferred
taxes previously not recognised for tax loss carryforwards and of
deductible temporary dierences from a prior period reduced the
deferred tax expense by  million (previous year:  mil-
lion). Eects from unrecognised deferred tax assets amounting to
 million (previous year:  million, write-down) were due to
a valuation allowance recognised for a deferred tax asset. Other
eects from unrecognised deferred tax assets primarily relate to
tax loss carryforwards for which no deferred taxes were recognised.
A deferred tax asset in the amount of  million (previous
year:  million) was recognised in the balance sheet for companies
that reported a loss in the previous year or in the current period as,
based on tax planning, realisation of the tax asset is probable.
In nancial year , a change in the tax rate had an insig-
nicant eect on German Group companies. e change in the
taxrate in some foreign tax jurisdictions did not lead to any sig-
nicant eects.
e eective income tax expense includes prior-period tax
expenses from German and foreign companies in the amount of
 million (tax income) (previous year: income of  million).
e following table presents the tax eects on the compo-
nents of other comprehensive income:
Other comprehensive income
 m
Before taxes Income taxes After taxes

Change due to remeasurements
ofnet pension provisions –2,350 285 –2,065
  revaluation reserve –2 0–2
  revaluation reserve 112 –10 102
  hedging reserve – 92 27 – 65
Currency translation reserve 454 0 454
Other changes in retained earnings 2 0 2
Share of other comprehensive
income of investments accounted
for using the equity method 4 0 4
Other comprehensive income –1,872 302 –1,570
, adjusted 1
Change due to remeasurements
ofnet pension provisions – 50 36 –14
  revaluation reserve –1 0–1
  revaluation reserve 77 –8 69
  hedging reserve 62 –18 44
Currency translation reserve – 460 0 – 460
Other changes in retained earnings 1 0 1
Share of other comprehensive
income of investments accounted
for using the equity method –1 0–1
Other comprehensive income –372 10 –362
1 Note .
e procedure for calculating the recoverable portion of the de-
ferred tax asset potential relating to pensions was rened during
the nancial year. is led to recognition of a positive tax eect
in the amount of  million in other comprehensive income. As
regards future eects, it is very dicult to make an estimation be-
cause those eects depend crucially on the change in pension pro-
visions associated with the dierences between the  nancial
statements and the tax accounts.
Deutsche Post  Group —  Annual Report
162