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78 IHG Annual Report and Financial Statements 2008
19 Trade and other payables
2008 2007
$m $m
Current
Trade payables 111 100
Other tax and social security payable 31 39
Other payables 322 345
Accruals 272 297
Derivatives 10 3
746 784
Non-current
Other payables 392 279
Trade payables are non-interest-bearing and are normally settled within 45 days.
Other payables include $471m (2007 $426m) relating to the future redemption liability of the Group’s loyalty programme,
of which $96m (2007 $169m) is classified as current and $375m (2007 $257m) as non-current.
Derivatives are held on the Group balance sheet at fair value. Fair value is estimated using discounted future cash flows taking
into consideration interest and exchange rates prevailing at the balance sheet date.
20 Loans and other borrowings
2008 2007
Current Non-current Total Current Non-current Total
$m $m $m $m $m $m
Secured bank loans 527–77
Finance leases 16 186 202 16 184 200
Unsecured bank loans – 1,146 1,146 – 1,557 1,557
Total borrowings 21 1,334 1,355 16 1,748 1,764
Denominated in the following currencies:
Sterling – 152 152 – 553 553
US dollars 16 873 889 16 854 870
Euro – 224 224 – 243 243
Other 58590 –9898
21 1,334 1,355 16 1,748 1,764
Secured bank loans
These mortgages are secured on the hotel properties to which they relate. The rates of interest and currencies of these loans vary.
Finance leases
Finance lease obligations, which relate to the 99 year lease on the InterContinental Boston, are payable as follows:
2008 2007
Minimum Present Minimum Present
lease value of lease value of
payments payments payments payments
$m $m $m $m
Less than one year 16 16 16 16
Between one and five years 64 48 64 47
More than five years 3,380 138 3,396 137
3,460 202 3,476 200
Less: amount representing finance charges (3,258) – (3,276) –
202 202 200 200
The Group has the option to extend the term of the lease for two additional 20 year terms. Payments under the lease step up at regular
intervals over the lease term.
Notes to the Group financial statements continued