SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Additional Notes F-150
Annual Report 2010 on Form 20-F 34 – Income Taxes
Expected expenses for 2011 are € 320 million for the retirement benefit plans and € 11 million for the postemployment
medical plans. The expected increase compared to 2010 is mainly caused by the consolidation of
Postbank and the change in indexation of occupational pensions in deferment from Retail Price Index (RPI) to
Consumer Price Index (CPI) due to a UK Government announcement which led to a past service credit of
€ 104 million recognized in the 2010 expense.
The weighted average remaining service period of active plan members at measurement date for retirement
benefit plans is ten years and for post-employment medical plans is six years.
Sensitivity to Key Assumptions
The following table presents the sensitivity to key assumptions of the defined benefit obligation as of
December 31, 2010 and 2009, respectively, and the aggregate of the key expense elements (service costs,
interest costs, expected return on plan assets) for the year ended December 31, 2011 and 2010, respectively.
The figures reflect the effect of adjusting each assumption in isolation.
Increase/decrease (–) Defined benefit obligation as at Expenses for
in € m.
Retirement benefit plans sensitivity:
Dec 31, 2010 Dec 31, 2009 2011 2010
Discount rate (fifty basis point decrease) 935 695 5 5
Rate of price inflation (fifty basis point increase)
Rate of real increase in future compensation levels (fifty basis
545 420 35 30
point increase) 105 80 10 10
Longevity (improvement by ten percent) 1 245 175 15 10
Expected rate of return (fifty basis point decrease)
Post-employment medical plans sensitivity:
– – 55 45
Health care cost rate (100 basis point increase) 19 16 2 2
Health care cost rate (100 basis point decrease) (17) (14) (2) (1)
1 Improvement by ten percent on longevity means that the probability of death at each age is reduced by ten percent. The sensitivity has, broadly, the effect of
increasing the expected longevity at age 65 by about one year.
34 –
Income Taxes
The components of income tax expense (benefit) for 2010, 2009 and 2008 are as follows.
in € m. 2010 2009 2008
Current tax expense (benefit):
Tax expense (benefit) for current year 1,339 970 (32)
Adjustments for prior years (9) (430) (288)
Total current tax expense (benefit) 1,330 540 (320)
Deferred tax expense (benefit):
Origination and reversal of temporary difference, unused tax losses and tax credits 700 570 (1,346)
Effects of changes in tax rates 7 3 26
Adjustments for prior years (392) (869) (205)
Total deferred tax expense (benefit) 315 (296) (1,525)
Total income tax expense (benefit) 1,645 244 (1,845)