DHL 2012 Annual Report Download - page 152

 Significant transactions
Sale of Deutsche Postbank shares
As part of the sale of Deutsche Postbank shares, a further
.  interest in Deutsche Postbank  was transferred to Deutsche
Bank  at the end of February , when a mandatory exchange-
able bond fell due.
In addition, Deutsche Post  exercised its put option for
the remaining .  of the shares it held in Postbank. Both trans-
actions are part of a three-phase sale of shares agreed between the
two companies in January . Now that the second and third
stages of the transaction have been completed, Deutsche Post 
no longer holds any shares in Deutsche Postbank .
e nancial instruments relating to the Postbank sale were
measured for the last time in February ; no such measurement
will be performed again in the future.
e eects of the Postbank sale for the period up to  De-
cember  are as follows:
Effects of the disposal of Deutsche Postbank 
 m
February 2012
Mandatory exchangeable bond 2,946
Cash collateral 1,305
Forward –1,265
Put option –566
Total 2,420
Less carrying amount of the investment 1,916
Total 504
Less expenses from the currency translation reserve 44
Plus income from the   reserves 81
Disposal gain 541
Other effects of the Postbank sale –355
Total effect 186
e disposal of the Postbank shares thus resulted in a total
eect of  million, which is reported in net nance costs. e
following table shows the other eects of the Postbank sale on the
income statement:
Other effects of the Postbank sale
 m
2011 2012
Interest expense on exchangeable bond –130 –20
Interest expense on cash collateral – 50 –8
Net loss on subsequent measurement of the forward –160 –228
Net loss on measurements of the option –71 – 99
Impairment loss on measurement of shares before
reclassification under   – 63 0
Reversal of impairment loss (+) on shares under   115 0
Total –359 –355
e prior-year impairment loss on measurement of shares
before reclassication under   contained the balance of
impair ment losses of  million and impairment loss reversals
of  million.
Demand for repayment of state aid
In order to implement the European Commission’s state aid
ruling of  January , the German federal government on
 May  called upon Deutsche Post  to make a payment
of  million, including interest. In agreement with the gov-
ernment, Deutsche Post  paid this amount into a trust account
on  June  and appealed the recovery order. e European
Commission had instituted state aid proceedings in  and in
its decision had come to the conclusion that the pension relief on
civil servants’ pensions granted by the Bundesnetzagentur (German
federal network agency) during the price approval process had led
to illegal state aid being granted to Deutsche Post . Deutsche
Post  is of the opinion that the decision cannot withstand legal
review and appealed it to the European Court of Justice in Luxem-
bourg on  April . e Federal Republic of Germany also led
an appeal.
e European Commission has thus far not expressed its nal
acceptance of the calculation of the state aid to be repaid. It can-
not be ruled out that Deutsche Post  will be required to make
a higher payment. In its state aid ruling of  January , the
European Commission did not make a denitive assessment of the
amount of the purported unlawful state aid. Such amount has to be
calculated by the Federal Republic of Germany. e payment made
was reported solely in the balance sheet under non-current assets;
the earnings position remained unaected. Detailed information
regarding the state aid proceedings can be found in Note .
Additional  payment
e German tax authorities announced in June  that they
would be modifying Deutsche Post ’s tax assessments in the third
quarter of . e decision resulted from an extensive review of
complex issues pertaining to tax law and relates to the period from
 to  June . e amended law on  for postal services
took eect on  July . e additional  payment amounted
to  million aer the deduction of outstanding tax refund
claims, and was made by the end of the third quarter. A large part
of the additional payment amount relates to tax matters for which
the Group had in some cases already recognised provisions. e
impact on  for the nancial year amounted to  million,
while the interest expense was  million.
Deutsche Post DHL Annual Report 
148