DHL 2013 Annual Report Download - page 171

. Allocation of goodwill to  s
 m
2012 2013
Total goodwill 10,922 10,677
 646 667
 4,092 4,069
 , 
 Global Forwarding 3,802 3,653
 Freight 320 316
 
 Supply Chain 1,640 1,561
Williams Lea 422 411
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 planning
for , depreciation / amortisation 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 econ-
omies, growth expectations for the relevant sectors and long-term
ination 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
2012 2013 2012 2013
 
 Supply Chain 9.2 9.3 2.5 2.5
Williams Lea 7.8 9.1 2.0 2.0
 , 
 Freight 9.4 9.4 2.0 2.0
 Global Forwarding 9.1 9.2 2.5 2.5
 8.0 8.8 0.5 0.5
 9.2 9.5 2.0 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.
167Deutsche Post DHL 2013 Annual Report
Consolidated Financial Statements Notes
Balance sheet disclosures