DHL 2014 Annual Report Download - page 211

To hedge cash ow and fair value risks, Deutsche Post 
enters into nancial derivative transactions with a large number
of nancial services institutions. ese contracts are subject to a
standardised master agreement for nancial derivative transac-
tions. is agreement provides for a conditional right of set-o,
resulting in the recognition of the gross amount of the nancial
derivative transactions at the reporting date. e conditional right
of set-o is presented in the table.
Settlement processes arising from services related to postal
deliveries are subject to the Universal Postal Convention and the
 Agreement. ese agreements, particularly the settlement
conditions, are binding on all public postal operators for the spe-
cied contractual arrangements. Imports and exports between the
parties to the agreement during a calendar year are summarised
in an annual statement of account and presented on a net basis
in the nal annual statement. Receivables and payables covered
by the Universal Postal Convention and the  Agreement are
presented on a net basis at the reporting date. e tables show the
receivables and payables before and aer osetting.
 Contingent liabilities
e Group’s contingent liabilities break down as follows:
Contingent liabilities
 m
2013 2014
Guarantee obligations 21 89
Warranties 84 80
Liabilities from litigation risks 124 183
Other contingent liabilities 848 1,428
Total 1,077 1,780
e other contingent liabilities comprise an obligation from a for-
mal state aid investigation ( Note ) and tax-related obligations.
ey also include a potential obligation to make settlement pay-
ments in the ; Note .
 Other financial obligations
In addition to provisions, liabilities and contingent liabilities, there
are other nancial obligations amounting to , million (previ-
ous year: , million) from non-cancellable operating leases as
dened by  .
e Group’s future non-cancellable payment obligations
under leases are attributable to the following asset classes:
Lease obligations
 m
2013 2014
Land and buildings 4,966 5,375
Aircraft 524 1,083
Transport equipment 512 576
Technical equipment and machinery 67 67
Other equipment, operating and oce equipment 47 43
 equipment 13 11
Total 6,129 7,155
e increase in lease obligations by , million to , mil-
lion is partly due to the expanded and extended contract with 
airline Southern Air at the start of , which led to an increase in
aircra lease obligations. Furthermore, new leases were concluded
for mechanised delivery bases.
Maturity structure of minimum lease payments
 m
2013 2014
Less than  year 1,465 1,626
More than  year to  years 1,109 1,223
More than  years to  years 853 975
More than  years to  years 651 751
More than  years to  years 475 501
More than  years 1,576 2,079
Total 6,129 7,155
e present value of discounted minimum lease payments is
, million (previous year: , million), based on a dis-
count factor of .  which was unchanged from the previous year.
Overall, rental and lease payments amounted to , million
(previous year, adjusted: , million), of which , million
(previous year, adjusted: , million) relates to non-cancellable
leases. , million (previous year: , million) of future
lease obligations from non-cancellable leases is primarily attribut-
able to Deutsche Post Immobilien GmbH.
e purchase obligation for investments in non-current
assets amounts to  million (previous year:  million).
 Litigation
A large number of the postal services rendered by Deutsche Post
 and its subsidiaries are subject to sector-specic regulation by
the Bundesnetzagentur (German federal network agency) pursuant
to the Postgesetz (German Postal Act). As the regulatory authority,
the Bundesnetzagentur approves or reviews such prices, formu-
lates the terms of downstream access and has special supervisory
powers to combat market abuse. is general regulatory risk could
lead to a decline in revenue and earnings in the event of negative
decisions.
Legal risks arise, amongst other things, from pending admin-
istrative court appeals by an association against the price approvals
under the price cap procedure for ,  and  and, in ad-
dition, against the relevant decisions for  and . Although
the appeals against price approvals for the years  to  were
dismissed by the Münster Higher Administrative Court, as the
court of appeal, an appeal has been led with the Federal Admin-
istrative Court. e Cologne Administrative Court has not yet de-
cided on the appeals against the price approvals for  and .
In its decision dated  June , the Bundesnetzagentur con-
cluded that First Mail Düsseldorf GmbH, a subsidiary of Deutsche
Post , and Deutsche Post  had contravened the discounting
and discrimination prohibitions under the Post gesetz. e com-
panies were instructed to remedy the breaches that had been iden-
tied. Both companies appealed against the ruling. Furthermore,
First Mail Düsseldorf GmbH led an application to suspend the
execution of the ruling until a decision was reached in the principal
Deutsche Post  Group —  Annual Report
205
Consolidated Financial Statements — NOTES — Other disclosures