Annual Report 2009 on Form 20-F (PDF) - Deutsche Bank Annual ...

[15] Financial Assets Available for Sale
The following are the components of financial assets available for sale.
in € m.
Debt securities:
Dec 31, <strong>2009</strong> Dec 31, 2008
German government 2,585 2,672
U.S. Treasury and U.S. government agencies 901 302
U.S. local (municipal) governments 1 1
Other foreign governments 3,832 3,700
Corporates 4,280 6,035
Other asset-backed securities 999 372
Mortgage-backed securities, including obligations of U.S. federal agencies 815 87
Other debt securities 438 4,797
Total debt securities
Equity securities:
13,851 17,966
Equity shares 3,192 4,539
Investment certificates and mutual funds 76 208
Total equity securities 3,268 4,747
Other equity interests 699 893
Loans 1,001 1,229
Total financial assets available for sale 18,819 24,835
[16] Equity Method Investments
Investments in associates and jointly controlled entities are accounted for using the equity method of account-
ing unless they are held for sale. As of December 31, <strong>2009</strong>, there were three associates which were
accounted for as held for sale. For information on assets held for sale please refer to Note [24].
As of December 31, <strong>2009</strong>, the most significant equity method investment was the investment in Deutsche
Postbank AG, Bonn, representing approximately 75 % of the carrying value of equity method investments.
On February 25, <strong>2009</strong>, the Group acquired a 22.9 % stake in Deutsche Postbank AG as a contribution-in-kind
against 50 million Deutsche Bank shares, which became effective with the registration of the shares in the
commercial register on March 6, <strong>2009</strong>. Together with a stake of approximately 2.1 % held at that point in time
as well as additional shares purchased after that transaction, the Group held an investment of 29.88 % in
Deutsche Postbank AG as of December 31, <strong>2009</strong>. In addition to the acquisition of the shares, the transaction
comprised two further tranches: a mandatorily-exchangeable bond of € 3.0 billion covering an additional
27.4 % stake and put and call options covering an additional 12.1 % stake in Deutsche Postbank AG. Due to
its specific terms and conditions, the mandatorily-exchangeable bond primarily contains equity risk and is
reported as part of the equity method investment. In addition, the net fair value of the derivative liability resulting
from the put/call structure upon completion of the transaction was added to the acquisition cost of the
equity method investment.
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