Holiday Inn 2008 Annual Report Download - page 73

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10 Property, plant and equipment
Land and Fixtures, fittings
buildings and equipment Total
$m $m $m
Cost
At 1 January 2007 1,610 993 2,603
Additions 10 98 108
Reclassifications 31 (41) (10)
Net transfers to non-current assets classified as held for sale (77) (88) (165)
Disposals (14) (38) (52)
Exchange and other adjustments 46 31 77
At 31 December 2007 1,606 955 2,561
Additions 68591
Net transfers to non-current assets classified as held for sale (119) (60) (179)
Disposals (15) (24) (39)
Exchange and other adjustments (112) (56) (168)
At 31 December 2008 1,366 900 2,266
Depreciation
At 1 January 2007 (160) (487) (647)
Provided (12) (66) (78)
Net transfers to non-current assets classified as held for sale 33 31 64
Reversal of impairment –66
On disposals 14 36 50
Exchange and other adjustments (4) (18) (22)
At 31 December 2007 (129) (498) (627)
Provided (11) (61) (72)
Net transfers to non-current assets classified as held for sale 37 37 74
Impairment charge (12) – (12)
On disposals 15 25 40
Exchange and other adjustments – 15 15
At 31 December 2008 (100) (482) (582)
Net book value
At 31 December 2008 1,266 418 1,684
At 31 December 2007 1,477 457 1,934
At 1 January 2007 1,450 506 1,956
The impairment charge relates to a North American hotel and arises from year-end value in use calculations, taking into account
the current economic climate. Estimated future cash flows have been discounted at 13.5%. The charge has been included within
impairment on the Group income statement and relates to the Americas business segment.
At 31 December 2007, a previously recorded impairment charge of $6m was reversed, relating to a hotel in the Asia Pacific
business segment.
The carrying value of land and buildings held under finance leases at 31 December 2008 was $192m (2007 $208m).
The carrying value of assets in the course of construction was $41m (2007 $nil).
Notes to the Group financial statements 71
GROUP FINANCIAL
STATEMENTS