Panalpina Annual Report 2011

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Annual Financial Statements 2011
Notes to the Financial Statements
General
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 decrease of CHF 55.2 million is due to the fact that Panalpina Welttransport (Holding) Ltd. received fewer dividends from subsidiaries.
Financial income
The drop of CHF 13.9 million compared to the prior year is predominantly attributable to lower foreign exchange gains of CHF 10.3 million
and less interest income of CHF 3.4 million from subsidiaries.
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 2011 by CHF 14.8 million.
Release of valuation allowance on loans to Group companies
As a result of Debt/Equity Swaps, the Company was able to release a valuation allowance amounting to CHF 47.3 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 reduction of CHF 22.1 million in other administrative expenses is mostly attributable to less legal and consulting expenses in connection
with the FCPA investigation (CHF 19.0 million) and a decline in claims expenses (CHF 4.9 million).
Financial expenses
The drop in financial expenses of CHF 2.5 million is mainly due to the fact that in 2011 CHF 1.0 million less losses of subsidiaries had to be
covered and CHF 1.0 million less interest had to be paid.
Depreciation and value adjustments
In 2011, value adjustments to participations amounting to CHF 168.7 million were booked to the income statement in accordance with the
Company’s practice to directly write off capital contributions to cover losses or undercapitalization in subsidiaries.
Cash pool receivables and payables
The cash pool receivables augmented for CHF 19.5 million and the cash pool payables declined for CHF 17.4 million, thus the net receivables
increased for CHF 37.0 million.
Financial receivables and loans to Group companies
Financial receivables and loans to Group companies increased by CHF 64.2 million compared to 2010 mainly due to swap of financing structure
of subsidiaries from long-term loans to short-term loans.
Marketable securities
In the year under review, investments of CHF 20.0 million were made in fixed-term deposits.
Panalpina Annual Report 2011