Holiday Inn 2007 Annual Report Download - page 89

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GROUP FINANCIAL
STATEMENTS
Notes to the Group financial statements 87
GROUP FINANCIAL
STATEMENTS
29 MINORITY EQUITY INTEREST
2007 2006
£m £m
At 1 January 820
Dividends paid to minority interests –(1)
Disposal of hotels (note 11) (6) (13)
Acquisition of subsidiary (note 34) –3
Exchange and other adjustments 1(1)
At 31 December 38
30 OPERATING LEASES
During the year ended 31 December 2007, £32m (2006 £39m) was recognised as an expense in the income statement in respect
of operating leases.
Total commitments under non-cancellable operating leases are as follows:
2007 2006
£m £m
Due within one year 28 27
One to two years 19 21
Two to three years 16 19
Three to four years 14 14
Four to five years 11 9
More than five years 108 100
196 190
The average remaining term of these leases, which generally contain renewal options, is approximately 17 years. No material
restrictions or guarantees exist in the Group’s lease obligations.
31 CAPITAL AND OTHER COMMITMENTS
2007 2006
£m £m
Contracts placed for expenditure on property, plant and equipment not provided for in the
financial statements 10 24
On 24 October 2007, the Group announced a worldwide relaunch of its Holiday Inn brand family. In support of this relaunch, IHG will
make a non-recurring revenue investment of up to £30m which it is anticipated will be charged to the income statement as an
exceptional item during 2008.
32 CONTINGENCIES
2007 2006
£m £m
Contingent liabilities not provided for in the financial statements relating to guarantees 511
In limited cases, the Group may provide performance guarantees to third-party owners to secure management contracts. The maximum
exposure under such guarantees is £121m (2006 £142m). 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.