SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Financial Statements F-55
Annual Report 2010 on Form 20-F 04 – Acquisitions and Dispositions
The noncontrolling interests of € 599 million presented in the table of fair value of assets acquired and liabilities
assumed above were determined at their proportionate share of Postbank’s identifiable net assets (“partial
goodwill method”) measured at fair value as of the closing date.
Before the business combination, Deutsche Bank and Postbank were parties to certain transactions considered
as pre-existing relationships. Among these transactions were various financial instruments included in the course
of the parties’ regular interbank and hedging activities, certain bonds issued by the Group or by Postbank
which were held by the other party and specific payment services provided to the Group by Postbank. As of the
acquisition date, the settlement of certain financial instruments issued by Deutsche Bank and held by Postbank
resulted in an extinguishment loss of € 1 million included in other income of the Group’s consolidated income
statement of the fourth quarter 2010. Likewise, the determination of the consideration transferred and its
allocation to Postbank’s net assets acquired had been adjusted for € 176 million, the fair value of the related
instruments as of the acquisition date.
In addition, the Group and Postbank are parties to a comprehensive, mutually beneficial cooperation agreement.
The agreement was entered into in 2008 in context of the acquisition of a noncontrolling interest in Postbank
and encompassed financing and investment products, business banking and commercial loans as well as
customer-oriented services. The agreement also covered areas such as sourcing and IT-infrastructure.
Following consolidation commencing on December 3, 2010, Postbank contributed net revenues and net income
after tax (including amortization of fair value adjustments from the preliminary purchase price allocation) of
€ 423 million and € 62 million, respectively, to the Group’s income statement. Considering certain transaction
and integration costs of € 48 million recorded on the Group level, the Postbank consolidation impact on PBC’s
income before income taxes attributable to DB shareholders in 2010 amounted to € 30 million.
If consolidation had been effective as of January 1, 2010, Postbank’s pro-forma contribution to the Group’s net
revenues and net income after tax in 2010 would have been € 3,805 million and € 138 million, respectively. This
pro-forma performance information was determined on the basis of Postbank’s preliminary stand-alone results
for the year 2010 and does not include any amortization of notional fair value adjustments from the purchase
price allocation for the period January 1, 2010 through December 31, 2010, any consolidation adjustments or
the revaluation charge which the Group had actually recorded in the third and fourth quarter of 2010 on its
previous equity method investment in Postbank.
Acquisition-related costs borne by the Group as the acquirer amounted to € 12 million which were recognized
in general and administrative expenses in the Group’s income statement for 2010.
Due to closing of the transaction only shortly before year-end and given its complexity, the initial acquisition
accounting for the business combination is not yet completed.