Holiday Inn 2008 Annual Report Download - page 85

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Notes to the Group financial statements 83
23 Net debt
2008 2007
$m $m
Cash and cash equivalents 82 105
Loans and other borrowings – current (21) (16)
– non-current (1,334) (1,748)
Net debt (1,273) (1,659)
Movement in net debt
Net increase/(decrease) in cash and cash equivalents 25 (237)
Add back cash flows in respect of other components of net debt:
Decrease/(increase) in borrowings 316 (1,108)
Decrease/(increase) in net debt arising from cash flows 341 (1,345)
Non-cash movements:
Finance lease liability (2) (18)
Exchange and other adjustments 47 (33)
Decrease/(increase) in net debt 386 (1,396)
Net debt at beginning of the year (1,659) (263)
Net debt at end of the year (1,273) (1,659)
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 460 (2007 440) employees,
of which 170 (2007 200) are in the defined benefit section which provides pensions based on final salaries and 290 (2007 240) 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
2008 2007 2008 2007 2008 2007 2008 2007
$m $m $m $m $m $m $m $m
Recognised in administrative expenses
Current service cost 910 1–––10 10
Interest cost on benefit obligation 30 30 10 10 1141 41
Expected return on plan assets (32) (34) (11) (9) ––(43) (43)
76–11188
The amounts recognised in the Group statement of recognised income and expense are:
Pension plans Post-employment
UK US and other benefits Total
2007 2007
2008 restated* 2008 2007 2008 2007 2008 restated*
$m $m $m $m $m $m $m $m
Actual return on plan assets (25) 28 (27) 9––(52) 37
Less: expected return on plan assets (32) (34) (11) (9) ––(43) (43)
(57) (6) (38) –––(95) (6)
Other actuarial gains and losses 55 31 3–1–59 31
Total actuarial gains and losses (2) 25 (35) –1–(36) 25
Asset restriction** (14) (17) ––––(14) (17)
(16) 8(35) –1–(50) 8
* Restated for IFRIC 14 (see page 56).
** Relates to tax that would be deducted at source in respect of a refund of the surplus.
GROUP FINANCIAL
STATEMENTS