DHL 2010 Annual Report Download - page 187

Scheme. Exercise of the rights to shares in April  reduced the
capital reserves by   million due to the corresponding issuance of
treasury shares to the executives.
. Revaluation reserve in accordance with  
 e revaluation reserve comprises gains and losses from
changes in the fair value of available-for-sale  nancial assets that
have been recognised in other comprehensive income.  is reserve
is reversed to pro t or loss either when the assets are sold or other-
wise disposed of, or if the fair value of the assets falls permanently
below their cost.
. Hedging reserve in accordance with  
 e hedging reserve is adjusted by the e ective portion of a
cash  ow hedge.  e hedging reserve is released to pro t or loss
when the hedged item is settled.
 e change in the hedging reserve is mainly the result of the
recognition of previously unrealised gains and losses from hedging
future operating currency transactions. In the  nancial year,
unrealised losses totalling   million from the hedging reserve
were recognised in operating pro t under other operating expenses
(previous year: unrealised gains of – million were recognised in
other operating income); unrealised losses of   million (previ-
ous year:   million) were recognised in net  nancial income. In
the past  nancial year, there were no adjusting entries for hedging
transactions related to the acquisition of non-current non-  nancial
assets (previous year:   million). Deferred taxes have been recog-
nised in respect of the hedging reserve.
 m
2009 2010
As at  January –222 7
Currency translation differences –5 1
Unrealised gains / losses 455 5
Share of associates 130 90
Realised gains / losses –351 –16
Revaluation reserve as at  December before tax 7 87
Deferred taxes 0–1
Revaluation reserve as at  December after tax 7 86
 m
2009 2010
As at  January –32 –78
Additions –1 –67
Disposals in balance sheet (basis adjustment) 4 0
Disposals in income statement –49 109
Hedging reserve as at  December before tax –78 –36
Deferred taxes 1 3
Hedging reserve as at  December after tax –77 –33
. Disclosures on corporate capital
 e equity ratio was .  in  nancial year  (previous
year: . ).  e company’s capital is monitored using the net gear-
ing ratio which is de ned as net debt divided by the total of equity
and net debt.  e ratio in  was –.  (previous year: –. ).
 Other reserves
. Capital reserves
A new system to grant variable remuneration components
for some of the Group’s executives was introduced in the previous
year. In the period up to  December , an amount of   mil-
lion ( December :   million) was transferred to the capital
reserves for the  and  tranches of the Share Matching
 m
2009 2010
Aggregate fi nancial liabilities 7,439 7,022
Less cash and cash equivalents –3,064 –3,415
Less current fi nancial assets –1,894 – 655
Less long-term deposits –120 –120
Less long-term derivative fi nancial instruments –805 –2,531
Less fi nancial liabilities to non-controlling
interest holders of Williams Lea –23 –28
Less mandatory exchangeable bond –2,670 –2,796
Less cash collateral –1,200 –1,248
Plus net effect from derivatives measurement
in the context of the planned Postbank sale 647 2,389
Net debt (+) / net liquidity (–) –1,690 –1,382
Plus total equity 8,273 10,696
Total equity and net debt 6,583 9,314
Net gearing ratio in  –25.7 –14.8
 m
2009 2010
Capital reserves 2,147 2,158
Revaluation reserve in accordance with   7 86
Hedging reserve in accordance with   –77 –33
Revaluation reserve in accordance with   7 6
Currency translation reserve –1,215 – 682
Other reserves 869 1,535
 m
2009 2010
Capital reserves as at  January 2,142 2,147
Additions
Issue of rights under  Share Matching Scheme 5 6
Issue of rights under  Share Matching Scheme 0 14
Exercise of rights under  Share Matching Scheme 0–9
Capital reserves as at  December 2,147 2,158
Deutsche Post DHL Annual Report 
Consolidated Financial Statements
Notes
Balance sheet disclosures
173