DHL 2006 Annual Report Download - page 114

Goodwill
€m Dec. 31, 2005
Provisional goodwill 5,459
Customer list –399
Brand name –539
Land and buildings –169
Current receivables and other current assets 5
Noncurrent liabilities and provisions 132
Current liabilities and provisions 23
Deferred taxes, net 286
Goodwill 4,798
e expected useful life of the customer list for the DHL Exel Supply Chain
Business Unit is between eight and  years and between four and seven years
for the DHL Global Forwarding Business Unit.
Net assets acquired
as of December 31, 2005
€m
Carrying
amounts Adjustments Fair value
Intangible assets 213 938 1,151
Property, plant, and equipment 981 169 1,150
Noncurrent financial assets 30 0 30
Other noncurrent assets 173 0 173
Current receivables, other current
assets, and cash and
cash equivalents 2,344 –5 2,339
Current liabilities and provisions –3,028 –23 –3,051
Noncurrent liabilities and provisions –577 –132 –709
Deferred taxes, net 40 –286 –246
Net assets 176 837
Minority interest –25 –25
Net assets acquired 151 812
Goodwill
€m Dec. 31, 2005
Total purchase price 5,610
Less identifiable net assets at fair value –812
Goodwill 4,798
Subsequent acquisition costs of  million were capitalized during the rst
half of .
e Exel company, Marken Ltd., UK, was sold on March , . No dis-
posal gain was recognized in the consolidated nancial statements because
the proceeds on the sale were required to be used as guidance in determining
the fair value of the company in the course of purchase price allocation.
EXPRESS
PPL
DHL acquired PPL CZ s.r.o., the Czech express service provider, at the begin-
ning of  to expand its activities in Central and Eastern Europe. e pur-
chase price was  million. Goodwill of  million arose from rst-time
consolidation.
Multicontainer
In January , Deutsche Post World Net acquired a  interest in Multi-
container Metaforiki Nailiaki & Emporiki A.E. in Greece for a purchase
price of  million.
FINANCIAL SERVICES
BHW
On January , , Deutsche Postbank AG acquired ,, shares in BHW
Holding AG (BHW) following completion of the share purchase agreement
entered into on October ,  with the previous major shareholders of
BHW, namely BGAG Beteiligungsgesellscha der Gewerkschaen AG, BGAG
Beteiligungsverwaltungsgesellscha mbH, NH-Beteiligungsverwaltungs-
gesellscha mbH, and Deutscher Beamtenwirtschasbund (BWB) GmbH.
Taking into account the capital reduction through retirement of BHW Holding
AG’s own shares on December , , this corresponds to . of the share
capital and voting rights of BHW. e purchase increased Deutsche Postbank
AG’s equity holding in BHW to . of the share capital and voting rights,
and Deutsche Postbank AG thus acquired a controlling interest in BHW in
accordance with IAS .
On January , , Deutsche Postbank AG made a mandatory oer pursu-
ant to Section () of the Wertpapiererwerbs- und Übernahmegesetz (WpÜG –
German Securities Acquisition and Takeover Act). e oer stood until Feb-
ruary , . e subject is the acquisition of all no-par value shares of
BHW. Since the mandatory oer, Postbank has increased its stake in BHW to
.. e purchase price for the interest amounts to , million plus
transaction costs incurred of  million. e allocation of the purchase price
to the identiable assets, liabilities, and contingent liabilities at their fair val-
ues used purchase price allocation in accordance with IFRS .
e oer to the minority shareholders to acquire the remaining shares of
BHW amounts to  million. is amount is recognized as a liability as of the
balance sheet date in accordance with IAS . b. Accordingly, minority
interests in BHW will no longer be recognized.
Measurement of goodwill
€m Dec. 31, 2005
Purchase price 1,734
Transaction costs 19
Total purchase price 1,753
Less identifiable net assets at fair value –1,199
Goodwill 554
Net assets acquired
€m
Carrying
amounts Adjustments Fair value
Receivables and other securities from
financial services 39,671 714 40,385
Property, plant, and equipment 245 –37 208
Deferred taxes 384 0 384
Cash and cash equivalents 99 0 99
Other assets 250 550 800
TOTAL ASSETS 40,649 41,876
Liabilities from financial services 36,543 320 36,863
Noncurrent provisions 2,009 287 2,296
Deferred taxes 383 211 594
Current liabilities 204 0 204
Noncurrent liabilities 640 59 699
EQUITY AND LIABILITIES less equity 39,779 40,656
Net assets 870 1,220
Less minority interest n/a –21
Net assets acquired 1,199
n/a = not applicable
Overall, around . billion were spent on acquisitions in scal year 
(previous year: . billion). e purchase prices of the acquired companies
were paid by transferring cash and cash equivalents. Further details about
cash ows can be found in Note .
110
Deutsche Post World Net Annual Report 2006