DHL 2009 Annual Report Download - page 198

Fair value hedges
Interest rate swaps were used to hedge the fair value risk of
 xed-interest euro-denominated liabilities.  e fair values of these
interest rate swaps amount to   million (previous year:   mil-
lion).  e signi cant increase in the fair values compared with 
is explained by the change in market rate levels. As at  Decem-
ber , there was also a   million (previous year:   million)
adjustment to the carrying amount of the underlying hedged item
arising from an interest rate swap unwound in the past.  e ad-
justment to the carrying amount is amortised over the remaining
term of the liability using the e ective interest method, and reduces
future interest expense.
In addition, cross-currency swaps were used to hedge liabili-
ties in foreign currency against negative changes in the market,
with the liability being transformed into a variable-interest euro-
denominated liability.  is hedged the fair value risk of the interest
and currency component.  e fair value of this interest rate swap
position was  – million as at  December  (previous year:
 – million).
 e following table gives an overview of the gains and losses
arising from the hedged items and the respective hedging transac-
tions:
Ineffective portion of fair value hedges
 m
2008 2009
Gains (–) / losses (+) on hedged items 56 16
Gains (–) / losses (+) on hedging transactions – 56 –17
Balance (ineffective portion) 0 –1
Cash fl ow hedges
 e Group uses currency forwards and currency swaps to
hedge the future cash  ow risks from foreign currency revenue and
expenses.  e fair values of currency forwards and currency swaps
amounted to  – million (previous year:   million). In addition,
there were currency options at a fair value of   million (previous
year:   million) at the reporting date for operating receivables
and liabilities.  e hedged items will be recognised in the income
statement in .
Currency forwards with a fair value of  – million (previ-
ous year:  – million) as at the reporting date were entered into
to hedge the currency risk of future lease payments and annuities
denominated in foreign currencies.  e payments for the hedged
items are made in instalments, with the  nal payment due in .
Cash  ow risks are arising for the Group from contracted air-
cra purchases in connection with future payments in  dollars.
 ese risks were hedged using forward transactions.  e fair value
of these cash  ow hedges amounted to  – million as at  Decem-
ber  (previous year:   million).  e aircra will be added in
. Gains or losses on hedges are o set against cost and recog-
nised in pro t or loss upon the amortisation of the asset.
Risks arising from  xed-interest foreign currency investments
were hedged using synthetic cross-currency swaps, with the invest-
ments being transformed into  xed-interest euro investments.
 ese synthetic cross-currency swaps hedge the currency risk, and
their fair values at the reporting date amounted to   million (pre-
vious year:   million).  e investments relate to internal Group
loans which mature in .
 e Group is exposed to cash  ow risks arising from a vari-
able interest rate liability.  ese risks were hedged using an interest
rate swap which o sets the interest rate risk in the hedged item.
 e respective cash  ow hedge had a fair value of  – million as
at  December  (previous year:  – million).  e hedged li-
ability becomes due in . In addition, a  xed-interest currency
liability was transformed into a  xed-interest euro-denominated li-
ability using a cross-currency swap.  e fair value of the derivative
was  – million (previous year:  – million).
Some of the risks from the purchase of diesel and marine die-
sel fuels, which cannot be passed on to customers, were hedged
using commodity swaps.  e fair value of these cash  ow hedges
amounted to   million as at year-end (previous year:   million).
 ere were minor ine ciencies.
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Other disclosures
181