DHL 2002 Annual Report Download - page 107

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Goodwill amortization
Goodwill amortization charges in fiscal year 2002 amounted
to €449 million (previous year: €171 million). The increase
in goodwill amortization charges was the result of the acqui-
sitions in fiscal year 2002. The amortization charges include
an impairment loss of €205 million charged on the goodwill
of DHL US Ground Co., USA.
Net loss from associates
Investments in companies on which a significant influence
can be exercised and which are consolidated at equity con-
tributed as follows to net finance costs:
The improvement in the net loss from associates is
primarily a result of the change in the method of consolida-
tion of DHL International from January 1, 2002 (now fully
consolidated).
Net other finance costs
The structure of net other finance costs is as follows:
Income and expenses from the Deutsche Postbank
group’s banking transactions are not carried under net
other finance costs. Income – in particular in the form
of interest, fee and commission income, and income from
equities and securities – is carried under revenue and income
from banking transactions (see note 10), while expenses
18
17
16 – in particular interest, fee and commission expenses – are
carried under materials expense and expenses from banking
transactions (see note 12).
Income tax expense
The income tax expense is composed of the following items:
€88 million of the increase in the current income tax
expense and €53 million of the increase in the current
recoverable income tax is attributable to DHL International.
The change in the income tax expense is due to the lower
year-on-year reduction in deferred tax assets from tax loss
carryforwards at Deutsche Post AG.
The reconciliation to the effective tax expense is shown
below, based on profit from ordinary activities and the
expected income tax expense:
19
in €m 2001 2002
DHL International Limited -140 0
trans-o-flex Schnell-Lieferdienst GmbH (trans-o-flex) -2 -1
Other Group companies 12 0
-130 -1
Equity-accounted investments
in €m 2001 2002
Interest and similar expenses -193 -211
Interest and similar income 44 114
Write-downs of financial instruments -6 -43
Cost of loss absorption -4 -15
Income from loans 5 8
Income from other equity investments 57 8
Income from profit pooling agreements 1 0
Miscellaneous -3 24
-99 -115
Net other finance costs
in €m 2001 2002
Current income tax expense 84 179
Current recoverable income tax 0 -63
84 116
Deferred tax income from
temporary differences -64 -100
Deferred tax expense from the reduction in
deferred tax assets from tax loss carryforwards 540 250
476 150
560 266
Income tax expense
in €m 2001 2002
Consolidated net profit before minorities
and income taxes 2,147* 949
Expected income tax expense 859 379
Deferred tax assets from temporary differences
not recognized for
Initial differences -370 -216
Goodwill amortization 68 97
Restructuring provisions 0 378
Reversal of negative goodwill -86 -598
Deferred tax liabilities
not recognized for temporary differences 17 0
Deferred tax assets of foreign Group companies
not recognized for tax loss carryforwards 20 138
Deferred taxes not recognized
for losses at foreign investees 56 0
Effects from section 8b KStG 0 108
Differences in tax rates at foreign companies -3 -14
Other -1 -6
Effective income tax expense 560 266
*Prior-period amount restated (see note 7)
Reconciliation