Holiday Inn 2005 Annual Report Download - page 16

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FIGURE 16
31 Dec 31 Dec
Interest risk profile of gross debt for 2005 2004
major currencies (including currency swaps) %%
At fixed rates 36 27
At variable rates 64 73
Credit risk on treasury transactions is minimised by operating
a policy on the investment of surplus funds that generally restricts
counterparties to those with an A credit rating or better, or
those providing adequate security. Limits are set for individual
counterparties. Most of the surplus funds are held in the UK or US
and there are no material funds where repatriation is restricted as
a result of foreign exchange regulations.
ACCOUNTING POLICIES
The audited financial statements for the year ending 31 December
2005 are produced for the first time in line with IFRS. This has
required the preparation of an opening balance sheet at 1 January
2004 to be prepared under IFRS, and a full income statement,
balance sheet and cash flow statement for the year ending
31 December 2004 for comparative purposes.
Further details on accounting policy changes can be found in
Corporate Information and Accounting Policies on page 38.
PENSIONS
As at 31 December 2005, the Group operated two main pension
schemes, the InterContinental Hotels UK Pension Plan and the
US-based InterContinental Hotels Pension Plan.
At 31 December 2005, the InterContinental Hotels UK Pension Plan
had a deficit of £24m. The defined benefits section of this Plan is
generally closed to new members.
The US-based InterContinental Hotels Pension Plan is closed to
new members and pensionable service no longer accrues for current
employee members. At 31 December 2005, the Plan had a deficit
of £41m.
EMPLOYEES
IHG employed an average of 21,986 people worldwide in the year
ended 31 December 2005.
The hospitality industry is a people-based business and IHG places
great emphasis on:
• developing leaders;
• engaging and motivating its employees;
• rewarding and recognising achievement;
• pensions;
• health and safety;
• learning; and
• flexibility and diversity.
A more comprehensive discussion of the Group’s employee focus
can be found in the Annual Review and Summary Financial
Statement 2005.
CORPORATE SOCIAL RESPONSIBILITY
The Group is committed to building a stronger culture of Corporate
Social Responsibility (CSR) and to meeting its global obligations as
one of the world’s leading international hotel businesses. During
2005, the Board considered an analysis of the CSR opportunities
and risks facing the business and its reputation, and reaffirmed its
resolve to increase the Group’s commitment to CSR during 2006.
Further details can be found in the Annual Review and Summary
Financial Statement 2005, and on the Company’s website.
operating and financial review
14 InterContinental Hotels Group 2005