DHL 2005 Annual Report Download - page 109

18 Income tax expense
Income tax expense 2004 2005
€m
Current income tax expense –251 –500
Current recoverable income tax 13 7
–238 –493
Deferred tax income (previous year: tax
expense) from temporary differences –1561) 54
Deferred tax expense from the
reduction in deferred tax assets from
tax loss carryforwards –46 –166
–202 –112
–4401) –605
1) Prior-period amount restated; see also note 5.
e €255 million increase in the current income tax expense relates
primarily to Deutsche Post AG and is due to current tax payments for
the current assessment period.
e reconciliation to the eective income tax expense is shown be-
low, based on consolidated net prot before income taxes, and the
expected income tax expense:
Reconciliation to effective income tax expense
2004 2005
€m
Consolidated net profit before income taxes 2,180 3,053
Expected income tax expense 870 1,218
Deferred tax assets from temporary differ-
ences not recognized for
Initial differences –264 –915
Goodwill amortization 148 175
Restructuring provisions –68 –79
Deferred tax assets of German Group com-
panies not recognized for tax loss
carryforwards 0 –175
Deferred tax assets of foreign Group
companies not recognized for tax loss
carryforwards 192 201
Effect of taxes from previous years –332 265
Tax-exempt income and non-deductible
expenses, effects from section 8 b KStG –83 –72
Differences in tax rates at foreign companies –27 –33
Other 4 20
Effective income tax expense 440 605
e eects from deferred tax assets not recognized for tax loss carry-
forwards include a €87 million expense (previous year: €0 million)
from the reduction of deferred tax assets from tax loss carryforwards
which are unlikely to be used. ey also include €310 million (pre-
vious year: €34 million) from the reduction of income tax expense
resulting from the use of tax loss carryforwards for which no deferred
tax assets were recognized.
e dierence between the expected and the eective income tax
expense is due in particular to temporary dierences between the
carrying amounts in the IFRS nancial statements and in the tax ac-
counts of Deutsche Post AG resulting from initial dierences in the
opening tax accounts as of January 1, 1995. In accordance with IAS
12.15 (b) and IAS 12.24 (b), the Group did not recognize any de-
ferred tax assets on these temporary dierences, which relate mainly
to property, plant and equipment, and to provisions for pensions and
other employee benets.
e remaining temporary dierences between the carrying amounts
in the IFRS nancial statements and in the opening tax accounts
amount to €6.4 billion as of December 31, 2005 (previous year: €5.0
billion).
e eects from section 8 b of the KStG (German Corporate Income
Tax Act) relate primarily to special funds, shares and equity interests
of the Deutsche Postbank group.
19 Consolidated net profit for the year
In scal year 2005, Deutsche Post World Net generated a consoli-
dated net prot for the year of €2,448 million (previous year: €1,740
million), of which €2,235 million (previous year: €1,598 million) is
attributable to Deutsche Post AG shareholders.
20 Minorities
In scal year 2005, minorities rose by €71 million year-on-year.
21 Earnings per share
Basic earnings per share are computed in accordance with IAS 33
(Earnings per Share) by dividing consolidated net prot by the aver-
age number of shares. Basic earnings per share for scal year 2005
were €1.99 (previous year: €1.44).
To compute diluted earnings per share, the average number of
shares outstanding is adjusted for the number of all potentially di-
lutive shares. ere were 33,785,854 stock options for executives at
the reporting date (previous year: 29,854,042), of which 4,289,416
were dilutive (previous year: 918,661). In the year under review, the
calculation of the diluted earnings per share based on the number
of Deutsche Post AG shares did not result in any material dierence
from the amount of the basic earnings per share. e diluted earnings
per share were €1.99.
22 Dividend per share
A dividend per share of €0.70 is being proposed for scal year 2005.
Based on the 1,192,633,739 (previous year: 1,112,800,000) shares
recorded in the commercial register, this corresponds to a dividend
distribution of €835 million (previous year: €556 million). Further
details of the distribution can be found in note 35.
Deutsche Post World Net
105
Notes
Consolidated Financial StatementsAdditional Information