Panalpina Annual Report 2006

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The gross movement on the deferred income tax account is as follows:
Consolidated and Annual Financial Statements 2006
in thousand CHF 2006 2005
Balance on 1 January 8,829 594
Translation differences (1,259) 3,669
Change in the scope of consolidation 0 (1,439)
Income statement charge (438) 5,022
Tax charged to equity due to IAS 19 4,281 983
Balance on 31 December 11,413 8,829
During the year being reported, all deferred tax assets on taxable temporary differences were recognized. In 2006, the
amount of CHF 182,000 was not capitalized because it was not probable that it can be set off against future profits.
Year of expiry of unrecognized tax loss carry-forwards (in thousand CHF) 2006 2005
2006 0 5,143
2007 2,305 3,336
2008 971 279
2009 1,673 138
2010 971 3,502
2011 971 0
Later 47,478 28,475
Total unrecognized tax loss carry-forwards 54,370 40,873
Unrecognized tax loss carry-forwards increased in Switzerland, Austria, Brazil, Ireland, Kazakhstan, Turkey and Australia.
The tax loss carry-forwards expired in Ecuador and Equatorial Guinea.
On 31 December 2006, undistributed earnings of CHF 382.6 million (2005: CHF 303.0) have been retained by subsidiary
companies for reinvestment. No provision is made for income taxes that would be payable upon the distribution of such
earnings. If the earnings were remitted, an income tax charge could result based on the tax statutes currently in effect.
Borrowings
Short-term borrowings (in thousand CHF) 2006 2005 1
Bank borrowings 20,185 15,307
Finance lease liabilities 496 0
Other loans 3,558 3,492
Total short-term borrowings 24,239 18,799
Long-term borrowings (in thousand CHF) 2006 2005
Finance lease liabilities 1,032 44
Other loans 2,216 1,600
Total long-term borrowings 3,248 1,644
1 Certain comparatives have been reclassified to conform with the current period’s presentation.
The weighted average interest rate of bank borrowings and other financing liabilities is 5.97% (2005: 5.05%). The carrying
amounts of short term bank borrowings approximate their fair value.
Panalpina Annual Report 2006 97