DHL Corporation and Subsidiaries - Page 68

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          imbalance.  As we understand the premise for the approach                   
          actually used, it contains the assumption that the imbalance                
          would vary as between the parties as it did between the 1990 and            
          1991 years.  From reviewing the facts of these cases and some of            
          the experts’ reports, it is our understanding that independent              
          (arm’s length) parties who enter into reciprocal exchanges of               
          services do so because of perceived benefits each gains from use            
          of the other’s facilities.  One possible reason for such a                  
          reciprocal agreement is to expand service available for customers           
          and potential customers without the capital infrastructure costs            
          that would otherwise be incurred.  Although one party’s costs may           
          be greater or less than the other’s, that is not the basis for              
          the reciprocity.  Ultimately, a reciprocal agreement envisions              
          that compensation occur when one of the parties performs more               
          services for the other than are received.  That is the case here,           
          and petitioners’ expert, although accepting that the approach of            
          DHL and DHLI was at arm’s length, devised an approach that                  
          ignored the parties’ understanding.                                         
               In addition to the theory and substance deficiencies in                
          petitioners’ expert's report, respondent points out the following           
          flaws:  (1) Many of the numbers for 1989 and 1990 are not                   
          supported in the record, and no analysis was provided as to how             
          they were calculated; (2) the position is taken that petitioners’           
          expert’s estimated numbers were more reliable than DHLI’s actual            
          numbers, even though a large portion of DHLI’s financial                    




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