DHL 2006 Annual Report Download - page 127

Notes
18 Income tax expense
Income tax expense
€m 2005 2006
Current income tax expense –500 –338
Current recoverable income tax 7 62
–493 –276
Deferred tax expense (previous year: tax income)
from temporary differences 54 –221
Deferred tax expense from the reduction in
deferred tax assets from tax loss carryforwards –166 –63
–112 –284
–605 –560
e reconciliation to the eective income tax expense is shown below, based
on consolidated net prot before income taxes, and the expected income tax
expense:
Reconciliation to effective income tax expense
€m 2005 2006
Consolidated net profit before income taxes 3,053 2,842
Expected income tax expense 1,218 1,134
Deferred tax assets from temporary differences
not recognized for
Initial differences –915 –483
Goodwill amortization 175 0
Restructuring provisions –79 –70
Deferred tax assets of German Group companies
not recognized for tax loss carryforwards –175 139
Deferred tax assets of foreign Group companies
not recognized for tax loss carryforwards 201 440
Effect of taxes from previous years 265 –31
Tax-exempt income and non-deductible
expenses, effects from Section 8b KStG (German
Corporate Income Tax Act) –72 –503
Differences in tax rates at foreign companies –33 –50
Other 20 –16
Effective income tax expense 605 560
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 accounts of Deutsche Post AG
resulting from initial dierences in the opening tax accounts as of January ,
. In accordance with IAS . (b) and IAS . (b), the Group did not
recognize any deferred tax assets on these temporary dierences, which re-
late mainly to property, plant, and equipment as well as to provisions for pen-
sions 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 .
billion as of December ,  (previous year: . billion).
e eects from deferred tax assets not recognized on tax loss carryforwards
also include  million (previous year:  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 eects from Section b Körperschassteuergesetz (KStG – German
Corporate Income Tax Act) relate primarily to the eect from the exchangeable
bond at Deutsche Post AG, as well as to special funds, shares, and equity
investments of the Deutsche Postbank Group.
19 Consolidated net profit for the period
In scal year , Deutsche Post World Net generated a consolidated net
prot for the period of , million (previous year: , million). Of this
amount, , million (previous year: , million) is attributable to
Deutsche Post AG shareholders.
20 Minorities
e net prot of  million attributable to minorities increased by 
million year on year, primarily due to the disposal of Postbank shares.
21 Earnings per share
Basic earnings per share are computed in accordance with IAS  (Earnings
per Share) by dividing consolidated net prot by the average number of
shares. Basic earnings per share for the  scal year were . (previous
year: .).
Basic earnings per share
2005 2006
Consolidated net profit attributable to Deutsche
Post AG shareholders (€m) 2,235 1,916
Average number of shares outstanding 1,121,001,272 1,196,244,814
Basic earnings per share (€) 1.99 1.60
To compute diluted earnings per share, the average number of shares out-
standing is adjusted for the number of all potentially dilutive shares. ere
were ,, stock options for executives as of the reporting date (previous
year: ,,), of which ,, were dilutive (previous year: ,,).
Diluted earnings per share
2005 2006
Consolidated net profit attributable to Deutsche
Post AG shareholders (€m) 2,235 1,916
Weighted-average number of shares outstanding 1,121,001,272 1,196,244,814
Potentially dilutive shares 4,289,416 3,395,362
Weighted-average number of shares for diluted
net income 1,125,290,688 1,199,640,176
Diluted earnings per share (€) 1.99 1.60
22 Dividend per share
A dividend per share of . is being proposed for scal year . Based on
the ,,, shares recorded in the commercial register (previous year:
,,,), this corresponds to a dividend distribution of  million
(previous year:  million). Further details on the dividend distribution
can be found in Note .
123
Deutsche Post World Net Annual Report 2006
Consolidated Financial Statements