DHL 2006 Annual Report Download - page 144

Maturity structure
€m 2005 2006
Less than 1 year 17 141
1 to 2 years 18 18
2 to 3 years 14 4
3 to 4 years 16 90
4 to 5 years 866 903
More than 5 years 507 270
1,438 1,426
43 Other provisions
Other provisions
€m 2005 2006
Other noncurrent provisions 2,517 4,780
Other current provisions 1,825 1,433
4,3421) 6,213
1) Prior-period amount restated, see Note 5.
Changes in other provisions
€m
Postal Civil Service
Health Insurance Fund
Other employee
benefits
STAR restructuring
provision Postage stamps
Miscellaneous
provisions Total
Opening balance at January 1, 2006 96 1,770 453 500 1,523 4,342
Changes in consolidated group 0 –7 0 0 1,906 1,899
Utilization –3 –508 –186 –500 –839 –2,036
Currency translation differences 0 –8 0 0 –9 –17
Reversal 0 –90 0 0 –259 –349
Interest cost added back 4 44 10 0 2 60
Reclassification 0 198 0 0 –188 10
Additions 0 295 0 500 1,509 2,304
Closing balance at December 31, 2006 97 1,694 277 500 3,645 6,213
e provision for the funding of future shortfalls in the Postal Civil Service
Health Insurance Fund closed to new members since January ,  comprises
the statutory obligation of Deutsche Post AG and of Deutsche Postbank AG
together with another successor company of Deutsche Bundespost. As a
result of the changes in the law that became eective as of December , ,
the basis for contributions to and the funding of the Postal Civil Service
Health Insurance Fund was strengthened. On the one hand, the Deutsche
Bundespost successor companies have set up a compensation fund to nance
the costs of winding down the fund. On the other hand, the linking of
increases in contributions to the average development of costs in the general
healthcare system was abolished. Accordingly it was possible to reverse most
of the provision recognized for liability risks arising from the winding down
of the Postal Civil Service Health Insurance Fund.
Of the additions to provisions for other employee benets amounting to 
million,  million is attributable to Deutsche Post AG and  million to
the Deutsche Postbank Group. is provision primarily covers workforce
reduction expenses (severance payments, transitional benets, partial
retirement, etc.).
In scal year , provisions for restructuring measures were recognized
as part of the Group-wide STAR value creation and integration program;
these relate primarily to termination benet obligations to employees (partial
retirement programs, transitional benets) and expenses from the closure
of terminals.
e provision for postage stamps covers outstanding obligations to customers
for mail and parcel deliveries from postage stamps sold but still unused by
customers, and is based on studies by market research companies. It is
measured at the nominal value of the stamps issued.
Miscellaneous provisions
€m 2005 2006
Technical reserves (insurance) 517 2,059
Provisions for the Deutsche Postbank Group’s
home savings business 0 727
Risks from business activities 53 162
Litigation costs 43 68
Welfare benefits for civil servants 33 33
Staff-related provisions 119 27
Services provided by Deutsche Telekom AG 63 0
Miscellaneous other provisions 6951) 569
1,5231) 3,645
1) Prior-period amount restated, see Note 5.
Technical reserves (insurance) include unearned premiums and aggregate
policy reserves for the insurance business of BHW Lebensversicherung AG,
PB Lebensversicherung AG, and PB Versicherung AG.
Provisions for BHW Bausparkasse AG’s home savings business were recognized
for the reimbursement of arrangement fees and for interest rate bonuses to be
paid retroactively.
Risks from business activities comprise obligations such as expected losses
and warranty obligations.
Miscellaneous other provisions include a number of individual items, none of
which exceeds  million.
Further details on the “Services provided by Deutsche Telekom” provision
can be found in Note .
140
Deutsche Post World Net Annual Report 2006