Holiday Inn 2007 Annual Report Download - page 79

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GROUP FINANCIAL
STATEMENTS
Notes to the Group financial statements 77
GROUP FINANCIAL
STATEMENTS
23 NET DEBT
2007 2006
£m £m
Cash and cash equivalents 52 179
Loans and other borrowings – current (8) (10)
– non-current (869) (303)
Net debt (825) (134)
Movement in net debt
Net decrease in cash and cash equivalents (131) (152)
Add back cash flows in respect of other components of net debt:
(Increase)/decrease in borrowings (553) 172
(Increase)/decrease in net debt arising from cash flows (684) 20
Non-cash movements:
Finance lease liability (9) (103)
Exchange and other adjustments 237
Increase in net debt (691) (46)
Net debt at beginning of the year (134) (88)
Net debt at end of the year (825) (134)
24 RETIREMENT BENEFITS
Retirement and death in service benefits are provided for eligible Group employees in the UK principally by the InterContinental Hotels
UK Pension Plan. The plan, which is funded and HM Revenue & Customs registered, covers approximately 440 (2006 410) employees,
of which 200 (2006 220) are in the defined benefit section which provides pensions based on final salaries and 240 (2006 190) are in the
defined contribution section. The defined benefit section of the plan closed to new entrants during 2002 with new members provided with
defined contribution arrangements. The assets of the plan are held in self-administered trust funds separate from the Group’s assets.
In addition, there are unfunded UK pension arrangements for certain members affected by the lifetime allowance. The Group also
maintains the following US-based defined benefit plans; the funded InterContinental Hotels Pension Plan, unfunded InterContinental
Hotels non-qualified pension plans and post-employment benefits schemes. These plans are now closed to new members. The Group
also operates a number of minor pension schemes outside the UK, the most significant of which is a defined contribution scheme in
the US; there is no material difference between the pension costs of, and contributions to, these schemes.
The amounts recognised in the Group income statement in respect of the defined benefit plans are:
Pension plans Post-employment
UK US and other benefits Total
2007 2006 2007 2006 2007 2006 2007 2006
£m £m £m £m £m £m £m £m
Recognised in administrative expenses
Current service cost 55––––55
Interest cost on benefit obligation 15 13 551121 19
Expected return on plan assets (17) (14) (5) (4) ––(22) (18)
34–11146
The amounts recognised in the Group statement of recognised income and expense are:
Pension plans Post-employment
UK US and other benefits Total
2007 2006 2007 2006 2007 2006 2007 2006
£m £m £m £m £m £m £m £m
Actuarial gains and losses
Actual return on plan assets 14 21 56––19 27
Less: expected return on plan assets (17) (14) (5) (4) ––(22) (18)
(3) 7–2––(3) 9
Other actuarial gains and losses 15 (12) –––115 (11)
12 (5) –2–112 (2)