DHL 2006 Annual Report Download - page 157

Notes
e Group is exposed to commodity price risk in connection with the
purchase of aircra kerosene. Future cash ow risks are hedged by entering
into derivative transactions. Future cash ows from the planned purchase of
aircra kerosene are hedged against rising prices. e fair values of derivatives
amounted to – million (previous year:  million) at the balance sheet
date. e underlyings will be recognized in the income statement in 
and .
Net investment hedges
Foreign currency investments in foreign subsidiaries result in risks to the
Group’s equity. At the balance sheet date, the notional value of outstanding
currency forwards used to hedge these risks was  million (previous year:
 million). e eectiveness of these net investment hedges is measured
using the spot rate method. Of the fair value of – million, – million was
recognized in equity and – million was recognized in the income statement.
53 Contingent liabilities
e Group’s contingent liabilities total , million (previous year: ,
million). , million of this relates to guarantee obligations and 
million to liabilities from litigation risks.
In addition to these contingent liabilities, the Deutsche Postbank Group has
irrevocable loan commitments amounting to , million (previous year:
, million).
54 Litigation
Details of litigation can be found in the Group Management Report.
55 Other financial obligations
In addition to provisions, liabilities, and contingent liabilities, there are other
nancial obligations amounting to , million (previous year: ,
million) from non-cancelable operating leases as dened by IAS .
e Group’s future non-cancelable payment obligations under leases are
attributable to the following asset classes:
Leases
€m 2005 2006
Land and buildings 5,975 5,637
Technical equipment and machinery 209 214
Other equipment, operating and office
equipment 402 324
Aircraft 295 222
Other 0 17
6,8811)6,414
1) Prior-period amount restated due to application of IFRIC 4, see Note 5.
e maturity structure of future non-cancelable payment obligations from
operating leases is presented below:
Minimum lease payments
€m 2005 2006
Year 1 after reporting date 1,317 1,160
Year 2 after reporting date 1,028 958
Year 3 after reporting date 829 779
Year 4 after reporting date 729 611
Year 5 after reporting date 527 468
Year 6 after reporting date and thereafter 2,451 2,438
6,8811) 6,414
1) Prior-period amount restated, see Note 5.
e present value of discounted minimum lease payments is , million
(previous year: , million), based on a discount factor of . (previous
year: .). Overall, rental and lease payments of , million (previous
year: , million) arose in , of which , million (previous year:
 million) relates to non-cancelable leases.
Future lease obligations from non-cancelable leases relate primarily to the
following companies:
Future lease obligations
€m 2005 2006
Deutsche Post AG/Deutsche Post
Immobilien GmbH 1,976 2,306
Express and logistics companies 4,232 3,392
Other Group companies (including Deutsche
Postbank Group) 673 716
6,8811) 6,414
1) Prior-period amount restated, see Note 5.
e purchase obligation for investments in noncurrent assets amounted to
 million.
56 Related-party disclosures
56.1 Related-party disclosures (companies and Federal Republic
of Germany)
In addition to the consolidated subsidiaries, Deutsche Post World Net has
direct and indirect relationships with a large number of unconsolidated
subsidiaries and associates in the course of its ordinary business activities. In
the course of these activities, all transactions for the provision of goods and
services entered into with unconsolidated companies were conducted on an
arm’s length basis at standard market terms and conditions.
All companies classied as related parties that are controlled by Deutsche
Post World Net or on which the Group can exercise signicant inuence are
recorded in the list of shareholdings together with information on the equity
interest held, their equity and their net prot or loss for the period, broken
down by division. e list of shareholdings is led with the commercial
register of the Bonn Local Court.
Deutsche Post AG and Deutsche Postbank AG have a variety of relationships
with the Federal Republic of Germany and other companies controlled by the
Federal Republic of Germany.
e federal government is a customer of Deutsche Post AG and as such
uses the company’s services. Deutsche Post AG’s business relationships are
entered into with the individual public authorities and other government
agencies as independent individual customers. e services provided to the
respective individual customers are immaterial to the overall revenue of
Deutsche Post AG.
153
Deutsche Post World Net Annual Report 2006
Consolidated Financial Statements