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The Global MIS group of MRI was formed in 1986. In 1987 and
1988, MRI/Global MIS was paid for management information services
by DHL and DHLI in proportion to DHL’s and DHLI’s respective
gross revenues, except for certain communications and other
costs, which were paid on the basis of actual services. The
management information services and technology functions
performed by MRI were taken over by DHL Systems in 1989. During
the years 1989-92, DHL Systems was paid for its services pursuant
to an agreement between DHL and DHLI whereby DHL Systems was
reimbursed for its costs in amounts proportionate to DHL’s and
DHLI’s respective gross revenues, except where the anticipated
benefits from particular projects could be allocated according to
specific anticipated usages. This method of cost allocation was
not changed with the advent of the foreign investors in 1990 or
1992. From 1986 through 1992, $178 million was expended for
shared technology, consisting of approximately $40.5 million by
DHL and $137.5 million by DHLI, or in a 22.8 percent to 77.2
percent ratio.
NetExpress was incorporated in 1982 as an 80-percent-owned
subsidiary of DHL. NetExpress had operated at a deficit, and in
1985 DHL sold to DHLI 200,000 shares of NetExpress stock for $20
per share, an arm’s-length price. DHL realized a $3.9 million
taxable gain from the 1985 sale of NetExpress stock to DHLI.
In 1982, DHL provided the initial funding for the NetExpress
tracing and tracking technology referred to as LaserNet. The
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