DHL 2014 Annual Report Download - page 171

e additions to goodwill of  million relate to StreetScooter
GmbH. Of the disposals of goodwill,  million relates to Hull
Blyth Angola Viagens and  million to the Digital Solutions Busi-
ness; Note .
. Allocation of goodwill to  s
 m 2013
adjusted 1
2014
Total goodwill 10,673 11,109
Post - eCommerce - Parcel 877 906
Express 3,890 3,918
Global Forwarding, Freight
 Global Forwarding 3,662 3,919
 Freight 273 275
Supply Chain
 Supply Chain 1,560 1,645
Williams Lea 411 446
1 Note .
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 correspond-
ing 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
2013 2014 2013 2014
Supply Chain
 Supply Chain 9.3 8.4 2.5 2.5
Williams Lea 9.1 7.8 2.0 2.0
Global Forwarding, Freight
 Freight 9.4 8.6 2.0 2.0
 Global Forwarding 9.2 8.3 2.5 2.5
Post - eCommerce - Parcel 8.8 8.3 0.5 0.5
Express 9.5 9.3 2.0 2.0
On the basis of these assumptions and the impairment tests car-
ried out for the individual  s to which goodwill was allocated, it
was established that the recoverable amounts for all  s exceed
their carrying amounts. No impairment losses were recognised on
goodwill in any of the  s as at  December .
When performing the impairment test, Deutsche Post 
Group conducted sensitivity analyses as required by  ..
ese analyses did not reveal any risk of impairment to goodwill.
Deutsche Post  Group —  Annual Report
165
Consolidated Financial Statements — NOTES — Balance sheet disclosures