Holiday Inn 2007 Annual Report Download - page 82

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24 RETIREMENTS BENEFITS (CONTINUED)
The combined assets of the principal plans and expected rate of return are:
2007 2006
Long-term Long-term
rate of rate of
return return
expected Value expected Value
%£m %£m
UK pension plans
Equities 7.9 109 7.9 128
Bonds 4.8 179 4.6 123
Other 7.9 16 7.9 18
Total market value of assets 304 269
US pension plans
Equities 9.5 39 9.5 34
Fixed income 5.5 26 5.5 22
Total market value of assets 65 56
The expected rate of return on assets has been determined following advice from the plans’ independent actuaries and is based on the
expected return on each asset class together with consideration of the long-term asset strategy.
History of experience gains and losses
2007 2006 2005 2004 2003
£m £m £m £m £m
UK pension plans
Fair value of plan assets 304 269 250 470 353
Present value of benefit obligations (297) (298) (274) (600) (477)
Surplus/(deficit) in the plans 7(29) (24) (130) (124)
Experience adjustments arising on plan liabilities 15 (12) (67) (60)
Experience adjustments arising on plan assets (3) 74714
2007 2006 2005 2004 2003
£m £m £m £m £m
US pension plans
Fair value of plan assets 65 56 62 56 48
Present value of benefit obligations (87) (89) (103) (88) (91)
Deficit in the plans (22) (33) (41) (32) (43)
Experience adjustments arising on plan liabilities –– (3) (5)
Experience adjustments arising on plan assets –2 (1) 1
2007 2006 2005 2004 2003
£m £m £m £m £m
US post-employment benefits
Present value of benefit obligations (10) (9) (11) (11) (11)
Experience adjustments arising on plan liabilities –1 1 (1)
The cumulative amount of actuarial gains and losses recognised since 1 January 2004 in the Group statement of recognised income and
expense is £64m (2006 £76m). The Group is unable to determine how much of the pension scheme deficit recognised on transition to
IFRS of £178m and taken directly to total equity is attributable to actuarial gains and losses since inception of the schemes. Therefore,
the Group is unable to determine the amount of actuarial gains and losses that would have been recognised in the Group statement of
recognised income and expense before 1 January 2004.
80 IHG Annual Report and Financial Statements 2007
Notes to the Group financial statements continued