Holiday Inn 2006 Annual Report Download - page 84

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Notes to the Group financial statements
29 Minority equity interest
2006 2005
£m £m
At 1 January 20 117
Total recognised income and expense in the year –15
Dividends paid to minority interests (1) (177)
Disposal of hotels (note 11) (13) –
Disposal of Soft Drinks business (note 11) –66
Acquisition of subsidiary (note 34) 3–
Exchange and other adjustments (1) (1)
At 31 December 820
30 Operating leases
During the year ended 31 December 2006, £39m (2005 £62m) was recognised as an expense in the income statement in respect
of operating leases.
Total commitments under non-cancellable operating leases are as follows:
2006 2005
£m £m
Due within one year 27 36
One to two years 21 31
Two to three years 19 25
Three to four years 14 19
Four to five years 914
More than five years 100 149
190 274
The average remaining term of these leases, which generally contain renewal options, is approximately 18 years. No material restrictions
or guarantees exist in the Group’s lease obligations.
2006 2005
31 Capital commitments £m £m
Contracts placed for expenditure on property, plant and equipment not provided for in the financial statements 24 76
2006 2005
32 Contingencies £m £m
Contingent liabilities not provided for in the financial statements relate to guarantees 11 20
In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. The maximum
exposure under such guarantees is £142m (2005 £134m). It is the view of the Directors that, other than to the extent that liabilities have
been provided for in these financial statements, such guarantees are not expected to result in financial loss to the Group.
The Group has given warranties in respect of the disposal of certain of its former subsidiaries and hotels. It is the view of the Directors that,
other than to the extent that liabilities have been provided for in these financial statements, such warranties are not expected to result in
financial loss to the Group.
82 IHG Annual report and financial statements 2006