DHL 2005 Annual Report Download - page 108

15 Other operating expenses
Other operating expenses 20041) 2005
€m
Public relations expenses 564 521
Legal, consulting and audit costs 517 494
Travel and training costs 393 399
Other business taxes 214 385
Telecommunication costs 287 302
Expenses from currency translation differences 85 220
Offices supplies 266 216
Addition to provisions 15 214
Allowance for losses on loans and advances
(financial services) 185 205
Insurance costs 271 187
Warranty expenses, refunds and
compensation payments 101 174
Write-downs of current assets 149 169
Cost of purchased cleaning, transportation
and security services 196 162
Entertainment and corporate hospitality
expenses 99 131
Expenses from non-hedging derivatives 16 82
Services provided by Bundesanstalt für
Post und Telekommunikation 77 73
Commissions paid 54 64
Cost of asset disposal 41 53
Contributions and fees 29 49
Other property-related expenses 44 48
Customs duties not oncharged 28 42
Voluntary social benefits 46 39
Monetary transaction costs 22 23
Prior-period other operating expenses 55 19
Donations 10 13
Expenses from Deutsche Postbank AG IPO 17 0
Miscellaneous 175 123
3,956 4,407
1) Reclassifications within and between income statement items due to the chart of accounts; see
also note 5.
e increase in other business taxes relates in particular to Deutsche
Post AG’s tax arrears of €191 million with regard to capital tax and
trade capital tax.
€104 million of the increase in the addition to provisions is attribut-
able to Deutsche Postbank AG and mainly relates to the integration
of the BHW group.
e increase in expenses from currency translation dierences is
because income and expenses from currency translation dierences
are no longer oset for the rst time this year. A similar increase has
therefore been recorded for the income from currency translation
dierences shown under other operating income.
Miscellaneous other operating expenses include a number of indi-
vidual items that do not exceed €10 million.
Taxes other than income taxes are either carried under the related ex-
pense item or, if no specic allocation is possible, under other operat-
ing expenses.
16 Net income from associates
Investments in companies on which a signicant inuence can be
exercised and which are included at equity primarily contributed as
follows to net nance costs:
Net income from associates 2004 2005
€m
trans-o-flex Schnell-Lieferdienst GmbH,
Germany 3 52
France Handling S.A., France 0 11
Other Group companies 1 8
4 71
e result mainly reects the gain on the disposal of trans-o-ex of
€52 million and the disposal of France Handling S.A.
17 Net other finance costs
Net other finance costs 2004 2005
€m
Interest expenses –1,169 –834
of which interest cost on discounted
provisions for pensions and other provisions –638 –545
Interest income 362 198
Income from other equity investments and
financial instruments 24 4
Cost of loss absorption –4 –7
Write-downs of financial instruments –22 –10
Miscellaneous net other finance costs –16 –124
–825 –773
Income and expenses from the Deutsche Postbank group’s banking
transactions are not carried under net other nance 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 – in
particular interest, fee and commission expenses – are carried under ma-
terials expense and expenses from banking transactions (see note 12).
e reduction in interest income and expenses relates primarily to
reduced changes in value for interest-based derivative nancial in-
struments and the hedged underlying transactions.
Annual Report 2005
104