SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Financial Statements F-76
Annual Report 2010 on Form 20-F 05 – Business Segments and Related Information
In 2009, loss before income taxes in C&A was € 226 million. Noninterest expenses included charges related
to litigation provisions and other items outside the management responsibility of the business segments. Partly
offsetting were value-added tax benefits. The main adjustments to net revenues in C&A in 2009 were:
— Adjustments related to positions which were marked-to-market for management reporting purposes and
accounted for on an accrual basis under IFRS. These adjustments, which decreased net revenues by
approximately € 535 million, relate to economically hedged short-term positions as well as economically
hedged debt issuance trades and were mainly driven by movements in short-term interest rates in both euro
and U.S. dollar.
— Hedging of net investments in certain foreign operations decreased net revenues by approximately
€ 225 million.
— Derivative contracts used to hedge effects on shareholders’ equity, resulting from obligations under sharebased
compensation plans, resulted in an increase of approximately € 460 million.
— The remainder of net revenues was due to net interest expenses which were not allocated to the business
segments and items outside the management responsibility of the business segments. Such items include
net funding expenses on non-divisionalized assets/liabilities, e.g. deferred tax assets/liabilities, and net
interest expenses related to tax refunds and accruals.
In 2008, income before income taxes in C&A was € 15 million. Noninterest expenses included charges related
to litigation provisions offset by value-added tax benefits. The main adjustments to net revenues in C&A in
2008 were:
— Adjustments related to positions which were marked-to-market for management reporting purposes and
accounted for on an accrual basis under IFRS. These adjustments, which increased net revenues by
approximately € 450 million, relate to economically hedged short-term positions and were driven by the
significant volatility and overall decline of short-term interest rates.
— Hedging of net investments in certain foreign operations decreased net revenues by approximately
€ 160 million.
— Trading results from the Group’s own shares and certain derivatives indexed to own shares are reflected in
CB&S. The elimination of such results under IFRS resulted in an increase of approximately € 80 million.
— Decreases related to the elimination of intra-Group rental income were € 37 million.
— The remainder of net revenues was due to net interest expenses which were not allocated to the business
segments and items outside the management responsibility of the business segments. Such items include
net funding expenses on non-divisionalized assets/liabilities, e.g. deferred tax assets/liabilities, and net
interest expenses related to tax refunds and accruals.