DHL 2012 Annual Report Download - page 174

e additions to goodwill represent the goodwill of intelliAd
Media GmbH, Exel Saudia  and  Sister Food Group; Note .
Of the net disposals of goodwill,  million relates to Parcel
Direct Group and  million to Express Couriers Limited; Note .
. Allocation of goodwill to  s
 m
2011 2012
Total goodwill 1 10,973 10,922
 687 701
 4,161 4,092
 , 
 Global Forwarding 3,843 3,802
 Freight 280 320
 
 Supply Chain 1,699 1,699
Williams Lea 417 422
1 Goodwill from reconciliation amounts to – million (previous year: – million).
For the purposes of annual impairment testing in accordance
with  , the Group determines the recoverable amount of a
 on the basis of its value in use. is calculation is based on
projections of free cash ows that are initially discounted at a rate
corresponding to the post-tax cost of capital. Pre-tax discount rates
are then determined iteratively.
e cash ow projections are based on the detailed plan-
ning for , depreciation / amortization and investment planning
adopted by management, as well as changes in net working capital,
and take both internal historical data and external macroeconomic
data into account. From a methodological perspective, the detailed
planning phase covers a three-year planning horizon from  to
. It is supplemented by a perpetual annuity representing the
value added from  onwards. is is calculated using a long-
term growth rate, which is determined for each  separately and
which is shown in the table below. e growth rates applied are
based on long-term real growth gures for the relevant economies,
growth expectations for the relevant sectors and long-term ina-
tion forecasts for the countries in which the  s operate. e
cash ow forecasts are based both on past experience and on the
eects of the anticipated future general market trend. In addition,
the forecasts take into account growth in the respective geograph-
ical submarkets and in global trade, and the ongoing trend towards
outsourcing logistics activities. Cost trend forecasts for the trans-
portation network and services also have an impact on value in use.
e pre-tax cost of capital is based on the weighted average
cost of capital. e (pre-tax) discount rates for the individual  s
and the growth rates assumed in each case for the perpetual annu-
ity are shown in the following table:
Discount rates Growth rates
2011 2012 2011 2012
 
 Supply Chain 9.2 9.2 2.5 2.5
Williams Lea 7.8 7.8 2.0 2.0
 , 
 Freight 9.4 9.4 2.0 2.0
 Global Forwarding 9.2 9.1 2.5 2.5
 8.6 8.0 0.5 0.5
 n / a 9.2 n / a 2.0
On the basis of these assumptions and the impairment tests
carried out for the individual  s to which goodwill was allo-
cated, it was established that the recoverable amounts for all  s
exceed their carrying amounts. No impairment losses were recog-
nised on goodwill in any of the  s as at  December .
When performing the impairment test, Deutsche Post DHL
conducted sensitivity analyses as required by  .. ese
analyses did not reveal any risk of impairment to goodwill.
Deutsche Post DHL Annual Report 
170