Annual Report 2010 (PDF, 5.2MB) - Panalpina Annual Report 2012

Annual Financial Statements 2010
Notes to the Financial Statements
General
147
The Group’s consolidated financial statements must be considered for an appropriate financial and economic assessment of the Group.
The presented statutory financial statements of Panalpina World Transport (Holding) Ltd. were prepared in accordance with the requirements
of the Swiss Code of Obligations (SCO).
Valuation methods and translation of foreign currencies
Treasury shares are valued at the lower of cost and market value. All other assets including participations are reported at cost less appropriate
write-downs. Assets and liabilities denominated in foreign currencies are translated into Swiss francs (CHF), using year-end rates
of exchange, except participations which are translated at historical rates. Marketable securities are reported at market value. Transactions
during the year which are denominated in foreign currencies are translated at exchange rates effective at the relevant transaction dates.
Resulting exchange gains and losses are recognized in the income statement with the exception of unrealized gains which are deferred.
Income from participations
The raise of CHF 15.6 million is mainly attributable to the fact that most of the subsidiaries recovered from the effects of the financial crisis
and therefore more dividends were distributed to Panalpina World Transport (Holding) Ltd.
Financial income
The increase of CHF 18.4 million compared to the prior year is predominantly attributable to higher foreign exchange gains of CHF 29.4 million
and less interest income of CHF 7.8 million from subsidiaries, as well as CHF 3.2 million decreased income from guarantee fees.
Royalty income
In 2009, Panalpina World Transport (Holding) Ltd. received for the first time a fee from its subsidiaries for usage of the Panalpina network
and trademark. This fee increased in 2010 by CHF 12.9 million.
Release of valuation allowance on loans to Group companies
As a result of a change in loan structure, the Company was able to release a valuation allowance amounting to CHF 3.5 million.
Personnel expenses
In accordance with the Transparency Act, the compensation of the key management personnel is disclosed in note 29 in the Group’s
financial statements.
Other administrative expenses
The decrease of CHF 10.5 million in other administrative expenses is mostly attributable to less legal and consulting expenses in connection
with the FCPA investigation (CHF 15.5 million) and an increase in claims expenses (CHF 3.9 million).
Financial expenses
The decline in financial expenses of CHF 23.0 million is mainly due to the fact that in 2010 CHF 22.8 million less losses of subsidiaries had
to be covered.
Depreciation and value adjustments
In 2010, value adjustments to participations on subsidiaries amounting to CHF 36.3 million were debited to the income statement.
Net reversal of hidden reserves
In 2010, no hidden reserves (2009: 29.0 million) were reversed.
Cash pool receivables and payables
The cash pool receivables increased for CHF 58.9 million and the cash pool payables increased for CHF 74.9 million, thus the net payables
increased for CHF 16.0 million.
Receivables Group
The receivables Group decreased by CHF 5.7 million, mainly due to less invoiced interest income of CHF 6.5 million.
Panalpina Annual Report 2010