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Notes Consolidated Financial Statements
Deutsche Post World Net Annual Report 2007
Depreciation, amortisation and impairment losses include € mil-
lion (previous year: million) in respect of impairment write-downs.
Of that amount, million relates to intangible assets (previous year:
million) and million to land and buildings (previous year:
million), whilst million relates to the remaining property, plant
and equipment. At segment level, the amounts of impairment write-
downs were as follows:
Impairment 2007
€m
MAIL 3
EXPRESS 596
LOGISTICS 13
In the EXPRESS Americas Division, intangible assets (excluding good-
will) were written down fully in an amount of million whilst items
of property, plant and equipment were written down in an amount of
million to their fair value less costs to sell.
14 Other operating expenses
€m 2006 2007
Public relations expenses 594 586
Travel and training costs 479 524
Legal, consulting and audit costs 498 516
Other business taxes 300 384
Warranty expenses, refunds and compensation
payments 306 363
Allowance for losses on loans and advances from
fi nancial services (Deutsche Postbank Group) 337 338
Telecommunication costs 312 328
Cost of purchased cleaning, transportation and
security services 254 305
Expenses from currency translation differences 272 266
Offi ce supplies 239 257
Write-downs of current assets 253 227
Entertainment and corporate hospitality expenses 159 181
Cost of asset disposal 142 167
Insurance costs 128 139
Commissions paid 64 136
Voluntary social benefi ts 110 129
Services provided by the Federal Posts and
Telecommunications Agency 79 76
Contributions and fees 41 50
Other property-related expenses 56 35
Monetary transaction costs 29 34
Prior-period other operating expenses 18 32
Donations 13 17
Expenses from non-hedging derivatives 30 4
Expenses from arbitration proceedings against
Deutsche Telekom AG 10 0
Miscellaneous 35 99
Other operating expenses 4,758 5,193
e allowance for losses on loans and advances from nancial services
(Deutsche Postbank Group) includes a number of non-recurring e ects
(see Note ).
Other operating expenses amounting to million relate to TSO,
which was consolidated for the rst time in 0. Miscellaneous other
operating expenses include a number of individual items.
Taxes other than income taxes are either recognised under the related
expense item or, if no specific allocation is possible, under other
operating expenses. e rise in other business taxes was attributable to
an increase in additions to provisions recognised by Deutsche Post AG.
15 Net income from associates
Investments in companies on which a signi cant in uence can be exer-
cised and which are accounted for using the equity method contributed
million (previous year: million) to net nancial income.
16 Net other fi nance costs
€m 2006 2007
Financial income
Interest income 63 69
Income from other equity investments and
fi n a n c i a l i n s t r u m e n t s 1 3 2 1
Income from currency translation differences 81 438
Other fi nancial income 41 470
198 998
Finance costs
Interest expenses –1,040 –1,055
of which interest cost on discounted
provisions for pensions and other provisions –704 –723
Cost of loss absorption 0 –1
Write-downs on fi nancial instruments –11 –2
Expenses from currency translation differences –95 –576
Other fi nance costs – 86 –377
–1,232 –2,011
Net other fi nance costs –1,034 –1,013
Income and expenses from the Deutsche Postbank Group’s banking
transactions are not recognised under net other nance costs. Whilst
income – in particular in the form of interest, fee and commission
income as well as income from equities and securities – is recognised
under revenue and income from banking transactions (see Note 9),
expenses – in particular interest, fee and commission expenses – are
carried under materials expense and expenses from banking transac-
tions (see Note ). e increases in income and expenses from currency
translation di erences and in other nancial income and other nance
costs were primarily due to changes in the hedging procedures for for-
eign currencies.