DHL 2003 Annual Report Download - page 131
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Notes
The liabilities from the sale of residential building loans
relate to obligations of Deutsche Post AG to pay interest subsidies
to borrowers to offset the deterioration in borrowing terms in con-
junction with the assignment of receivables in previous years, as
well as pass-through obligations from repayments of principal and
interest for residential building loans sold.
The maturity structure of other liabilities is shown below:
Short maturities or marking-to-market means that there are
no significant differences between the carrying amounts and fair
value of all other primary financial instruments. There is no signifi-
cant interest rate risk because most of these instruments bear
floating rates of interest at market rates.
Cash flow disclosures
The consolidated cash flow statement is prepared in accordance with
IAS 7 (Cash Flow Statements) and discloses the cash flows in order
to present the source and application of cash and cash equivalents.
It distinguishes between cash flows from operating, investing and
financing activities. Cash and cash equivalents are composed of
cash, checks, and bank balances with a maturity of not more than
three months, and correspond to the cash and cash equivalents
reported on the balance sheet. The effects of currency translation
and changes in the consolidated group are adjusted when calcu-
lating cash and cash equivalents.
44.1 Net cash from operating activities
Cash flows from operating activities are calculated by adjusting net
profit before taxes and extraordinary expense for non-cash factors,
as well as taxes paid and changes in provisions (net profit before
changes in working capital). Adjustments for changes in working
capital and liabilities result in net cash from or used in operating
activities.
44
Non-cash income and expense in the amount of €228 million
can be broken down as follows:
Compared with the year under review, the reversal of Post-
bank’s negative goodwill impacted non-cash income and expense
in the amount of €1,499 million in the previous year (amortization:
€212 million; impairment loss: €1,287 million). This was offset
by non-cash additions to restructuring and staff-related provi-
sions, largely relating to the STAR program, which amounted to
€1,600 million.
In the previous year, the net profit before taxes was impacted
by the €907 million from the EU state aid proceedings reported as
an extraordinary expense. The corresponding liability was settled by
a payment of €907 million in January 2003. Due to this payment,
net cash from operating activities increased only slightly from
€2,967 million in the previous year to €3,006 million in the year
under review.
44.2 Net cash used in investing activities
Cash flows from investing activities result from cash received from
disposals of noncurrent assets and cash paid for investments in
noncurrent assets. In addition, interest and dividends received in the
amount of €134 million (previous year: €104 million) and changes
in current financial instruments in the amount of €71 million (previ-
ous year: €32 million) are classified as investments and included
in cash flows from investing activities. Net cash used in investing
activities amounted to €2,133 million in the year under review (previ-
ous year: €2,226 million). Disposals of items of noncurrent assets
generated income for the Group of €508 million (previous year:
€738 million). €2,846 million (previous year: €3,100 million) was
spent on investments in noncurrent assets. €1,362 million of this
amount (previous year: €1,256 million) was attributable to the
acquisition of companies, in particular the acquisition of the Air-
borne companies, which amounted to €983 million less cash and
cash equivalents acquired in the amount of €185 million. The
total cash and cash equivalents acquired with these acquisitions
amounted to €201 million (previous year: €193 million).
Financial Statements
Maturities of other liabilities
in €m 2002 2003
Less than 1 year 3,893 3,505
1 to 5 years 355 414
More than 5 years 1,129 1,355
5,377 5,274
Non-cash income and expense
in €m 2003
Net income from associates
incl. write-downs of investments in associates 2
Write-downs of current assets
and other valuation allowances 124
Income from reversal of write-downs of current-assets –14
Current asset disposal losses 8
Staff costs relating to stock option plan 21
Expense from measurement of plan assets (IAS 19) 19
Income from reversal of negative goodwill –3
Non-cash income and expense of the Deutsche Postbank group 94
Other –23
228