DHL 2015 Annual Report Download - page 167

Deutsche Post  Group —  Annual Report
. Allocation of goodwill to  s
 m
2014 2015
Total goodwill 11,109 11,545
Post - eCommerce - Parcel 906 934
Express 3,918 3,939
Global Forwarding, Freight
 Global Forwarding 3,919 4,163
 Freight 275 277
Supply Chain 2,091 2,232
 Supply Chain 1,645 n. a.
Williams Lea 446 n. a.
e structure of the Supply Chain  was changed compared with
the previous year. Since they are no longer separately managed by
top management, the  Supply Chain and Williams Lea  s
were combined in accordance with  . For reasons of compar-
ability, the prior-year gure was restated on a pro-forma basis.
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 projec-
tions of free cash ows that are initially discounted at a rate corres-
ponding 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 economies,
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 geographical submarkets
and in global trade, and the ongoing trend towards outsourcing
logistics activities. Cost trend forecasts for the transportation net-
work 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 annuity are
shown in the following table:
Discount rates Growth rates
2014 2015 2014 2015
Supply Chain n. a. 9.0 n. a. 2.5
 Supply Chain 8.4 n. a. 2.5 n. a.
Williams Lea 7.8 n. a. 2.0 n. a.
Global Forwarding, Freight
 Freight 8.6 9.1 2.0 2.0
 Global Forwarding 8.3 8.9 2.5 2.5
Post - eCommerce - Parcel 8.3 8.1 0.5 0.5
Express 9.3 8.3 2.0 2.0
On the basis of these assumptions and the impairment tests carried
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 good-
will in any of the  s as at  December .
When performing the impairment test, Deutsche Post 
Group conducted sensitivity analyses as required by  ..
ese analyses – which included varying the essential valuation
parameters within an appropriate range – did not reveal any risk of
impairment to goodwill.
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Consolidated Financial Statements — NOTES — Balance sheet disclosures