Holiday Inn 2003 Annual Report Download - page 51

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25 DEFERRED TAXATION (CONTINUED)
The deferred tax asset of £37m (2002 £67m) recognised in respect of losses includes £6m (2002 £30m) of capital losses
available to be utilised against the realisation of capital gains which are recognised as a deferred tax liability and £31m (2002
£37m) in respect of revenue tax losses. Tax losses with a value of £317m (2002 £157m), including capital losses with a value of
£112m (2002 £111m), have not been recognised as their use is uncertain or not currently anticipated.
No provision has been made for deferred tax on the sale of properties at their revalued amounts. The total amount unprovided is
estimated at £215m (2002 £348m restated*).
No provision has been made for deferred tax on the sale of properties where gains have been, or are expected to be, deferred
against expenditure on replacement assets for an indefinite period until the sale of the replacement assets. The total amount
unprovided is estimated at £52m (2002 £166m restated*). It is not anticipated that any such tax will be payable in the
foreseeable future.
* Restated following a review of the tax basis of properties, principally relating to MAB.
Hotels MAB Onerous Total
reorganisationareorganisation contractsbPensionscOtherdGroup
26 OTHER PROVISIONS FOR LIABILITIES AND CHARGES £m £m £m £m £m £m
At 30 September 2002 – restated* – 11 12 39 9 71
Exchange and other adjustments (3) (6) 3 1 – (5)
Profit and loss account 67 – (6) 6 (1) 66
Expenditure (37) (2) (4) – (4) (47)
Separation of MAB – (3) – – (3) (6)
At 31 December 2003 27 – 5 46 1 79
* Restated for the reclassification of pension provisions (see page 32).
aRelates to the Hotels reorganisation charged as a non-operating exceptional item and is expected to be largely utilised in the year to 31 December 2005.
bPrimarily relates to onerous fixed lease contracts acquired with the InterContinental hotels business and having expiry dates to 2008.
cRelates to unfunded post-retirement benefit plans (see note 5).
dRepresents liabilities with varying expected utilisation dates.
Group Group Company
31 Dec 30 Sept 31 Dec
2003 2002 2003
Within After After
one year one year Total one year
27 BORROWINGS £m £m £m £m £m
Bank loans and overdrafts
Secured:
Bank loans* 3576059 –
Unsecured:
Bank loans 5 489 494 625 –
Overdrafts 5–566 –
Total bank loans and overdrafts 13 546 559 750 –
Other borrowings
Secured:
2016 debenture stock 10.375%** –––250 –
Other loan stock*** –119–
Unsecured:
2003 Guaranteed Notes 6.625% ($300m) –––192 –
2007 Guaranteed Notes 5.75% (£250m) –1818250 –
2010 Guaranteed Notes 4.75% (€600m) – 420 420 –420
Other loan stock –3328 –
Total other borrowings – 442 442 729 420
Total borrowings 13 988 1,001 1,479 420
* Secured by way of mortgage over individual hotel properties. The terms, rates of interest and currencies of these bank loans vary.
** Secured by a first floating charge on the assets of Six Continents PLC and certain of its UK subsidiaries and by cross guarantees given by these
subsidiaries.
*** Secured on the individual assets purchased by using such borrowings. The terms, rates of interest and currencies of these borrowings vary.