DHL 2014 Annual Report Download - page 163

e expenses for  services provided in the  service centres
are allocated to the divisions by their origin. e additional costs
resulting from Deutsche Post ’s universal postal service obliga-
tion (nationwide retail outlet network, delivery every working day),
and from its obligation to assume the compensation structure as
the legal successor to Deutsche Bundespost, are allocated to the
PeP division.
As part of the central management of currency risk, uctu-
ations between projected and actual exchange rates are fully or
partially absorbed centrally by Corporate Treasury on the basis of
division-specic agreements.
In keeping with internal reporting, capital expenditure
(capex) is disclosed. Additions to intangible assets net of goodwill
and to property, plant and equipment are reported in the capex
gure. Depreciation, amortisation and impairment losses relate to
the segment assets allocated to the individual divisions. Other non-
cash expenses relate primarily to expenses from the recognition of
provisions.
e protability of the Group’s operating areas is measured as
prot from operating activities .
  - 
Prior-period amounts were adjusted due to the initial application
of   and   ( Note ) and the reallocation of companies
between the segments in the rst and second quarters of . e
domestic parcel business in Belgium, the Czech Republic, India,
the Netherlands and Poland was consolidated in the PeP division
eective  January . is business was previously part of the
Express and Global Forwarding, Freight divisions. In addition, the
 company Sky Courier Inc. was reallocated from the Express div-
ision to the Global Forwarding, Freight division. e prior-period
amounts have been adjusted accordingly.
Reecting the Group’s predominant organisational structure,
the primary reporting format is based on the divisions. e Group
distinguishes between the following divisions:
. Segments by division
Post - eCommerce - Parcel
e Mail division was renamed Post - eCommerce - Parcel (PeP)
as part of the Group’s ongoing strategic development. e Post-
eCommerce - Parcel division handles both domestic and inter-
national mail and is a specialist in dialogue marketing, nationwide
press distribution services and all the electronic services associated
with mail delivery. In addition to Germany, it also oers domes-
tic parcel services in other markets. It is divided into two business
units: Post, and eCommerce - Parcel.

e Express division oers time-denite courier and express ser-
vices to business and private customers. e division comprises
the Express Europe, Express Americas, Express Asia Pacic and
Express  (Middle East and Africa) business units.
 , 
e activities of the Global Forwarding, Freight division comprise
the transportation of goods by rail, road, air and sea. e division’s
business units are Global Forwarding and Freight.
 
e Supply Chain division delivers customised logistics solutions
to its customers based on globally standardised modular compo-
nents including warehousing, transport and value-added services.
In addition, it oers specialised Business Process Outsourcing
 and marketing communications solutions tailored to cus-
tomers’ needs. e division’s business units are Supply Chain and
Williams Lea.
In addition to the reportable segments given above, segment re-
porting comprises the following categories:
Corporate Center / Other
Corporate Center / Other comprises Global Business Services ,
the Corporate Center, non-operating activities and other busi-
ness activities. e prot / loss generated by  is allocated to the
operating segments, whilst its assets and liabilities remain with 
(asymmetrical allocation).
Consolidation
e data for the divisions are presented following consolidation
of interdivisional transactions. e transactions between the div-
isions are eliminated in the Consolidation column.
. Information about geographical regions
e main geographical regions in which the Group is active are
Germany, Europe, the Americas, Asia Pacic and Other regions.
External revenue, non-current assets and capex are disclosed for
these regions. Revenue, assets and capex are allocated to the indi-
vidual regions on the basis of the domicile of the reporting entity.
Non-current assets primarily comprise intangible assets, property,
plant and equipment and other non-current assets.
Deutsche Post  Group —  Annual Report
157
Consolidated Financial Statements — NOTES — Segment reporting