Holiday Inn 2007 Annual Report Download - page 65

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GROUP FINANCIAL
STATEMENTS
Notes to the Group financial statements 63
5 EXCEPTIONAL ITEMS
2007 2006
Note £m £m
Exceptional operating items*
Gain on sale of associate investments** 11 –
Gain of sale of investment in FelCor Lodging Trust, Inc.** –25
Gain on sale of other financial assets** 18 –
Reversal of previously recorded impairment** 32
Office reorganisations a(2) –
30 27
Tax*
Tax charge on exceptional operating items –(6)
Exceptional tax credit b30 100
30 94
Gain on disposal of assets (note 11)
Gain on disposal of assets 20 123
Tax charge (4) (6)
16 117
* Relates to continuing operations.
** Included within other operating income and expenses.
The above items are treated as exceptional by reason of their size or nature.
a Profit on sale and leaseback of new head office less costs incurred to date on the office move and closure of the Group’s Aylesbury facility. Costs will continue
to be incurred during the first half of 2008. Costs of £7m are included in administrative expenses and £1m in depreciation and amortisation. Income of £6m is
included in other operating income and expenses.
b The exceptional tax credit relates to the release of provisions which are exceptional by reason of their size or nature relating to tax matters which have been
settled or in respect of which the relevant statutory limitation period has expired, together with, in 2006, a credit in respect of previously unrecognised losses.
6 FINANCE COSTS
2007 2006
£m £m
Financial income
Interest income 821
Fair value gains 15
926
Financial expenses
Interest expense 45 33
Finance charge payable under finance leases 94
54 37
Interest income and expense relate to financial assets and liabilities held at amortised cost, calculated using the effective interest
rate method.
Included within interest expense is £10m (2006 £10m) payable to the Group’s loyalty programme relating to interest on the accumulated
balance of cash received in advance of the redemption of points awarded.
GROUP FINANCIAL
STATEMENTS