Holiday Inn 2007 Annual Report Download - page 69

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GROUP FINANCIAL
STATEMENTS
Notes to the Group financial statements 67
11 HELD FOR SALE AND DISCONTINUED OPERATIONS
During the year ended 31 December 2007, the Group sold three hotels (2006 32 hotels) and two associates (2006 nil), continuing the
asset disposal programme commenced in 2003. An additional three hotels were classified as held for sale during the year, whilst one
hotel previously classified as held for sale was reclassified as property, plant and equipment. At 31 December 2007, three hotels (2006
four hotels and two associates) were classified as held for sale.
At 31 December 2006, an impairment loss of £3m was recognised on the remeasurement of a property that was classified as held for
sale. The loss, which reduced the carrying amount of the asset to fair value less costs to sell, was recognised in the income statement in
gain on disposal of assets. Fair value was determined by an independent property valuation. No impairment losses have been recognised
at 31 December 2007.
2007 2006
£m £m
Net assets of hotels sold
Property, plant and equipment 35 648
Net working capital 1(22)
Cash and cash equivalents –31
Loans and other borrowings –(10)
Deferred tax –(117)
Minority equity interest (6) (13)
Group’s share of net assets disposed of 30 517
Consideration
Current year disposals:
Cash consideration, net of costs paid 47 628
Deferred consideration –10
Management contract value 330
Other –(14)
50 654
Net assets disposed of (30) (517)
Provision against deferred consideration –(10)
Other, including impairment of held for sale asset –(4)
Tax (4) (6)
Gain on disposal of assets, net of tax* 16 117
Net cash inflow
Current year disposals:
Cash consideration, net of costs paid 47 628
Cash disposed of –(31)
Prior year disposals 223
49 620
Assets and liabilities held for sale
Non-current assets classified as held for sale:
Property, plant and equipment 57 40
Associates –10
57 50
Liabilities classified as held for sale:
Deferred tax (3) (2)
* Reported within discontinued operations.
GROUP FINANCIAL
STATEMENTS