Holiday Inn 2010 Annual Report Download - page 95

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OVERVIEW BUSINESS REVIEW
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS USEFUL INFORMATION
21. Financial risk management continued
Liquidity risk
The following are the undiscounted contractual cash flows of financial liabilities, including interest payments:
Less than Between 1 and Between 2 and More than
1 year 2 years 5 years 5 years Total
$m $m $m $m $m
31 December 2010
Non-derivative financial liabilities:
Secured bank loans 1 5 – – 6
£250m 6% bonds 23 23 70 411 527
Finance lease obligations 16 16 48 3,348 3,428
Unsecured bank loans 201 – – – 201
Trade and other payables 722 118 137 336 1,313
Provisions 8 – 2 – 10
Derivative financial liabilities:
Interest rate swaps 4 1 – – 5
Forward foreign exchange contracts 2 – – – 2
Currency swaps – outflows 26 26 77 441 570
– inflows (23) (23) (70) (411) (527)
Less than Between 1 and Between 2 and More than
1 year 2 years 5 years 5 years Total
$m $m $m $m $m
31 December 2009
Non-derivative financial liabilities:
Secured bank loans 3 1 5 – 9
£250m 6% bonds 24 24 73 453 574
Finance lease obligations 16 16 48 3,364 3,444
Unsecured bank loans 512 – – – 512
Trade and other payables 668 102 120 302 1,192
Provisions 65 – – – 65
Derivative financial liabilities:
Interest rate swaps 7 4 1 – 12
Currency swaps – outflows 26 26 77 467 596
– inflows (24) (24) (73) (453) (574)
Cash flows relating to unsecured bank loans are classified according to the maturity date of the loan drawdown rather than the facility
maturity date.
Interest rate swaps are expected to affect profit or loss in the same periods that the cash flows are expected to occur.
Credit risk
The carrying amount of financial assets represents the maximum exposure to credit risk.
2010 2009
$m $m
Equity securities available-for-sale 87 71
Loans and receivables:
Cash and cash equivalents 78 40
Other financial assets 48 64
Trade and other receivables, excluding prepayments 324 295
537 470
Notes to the Group financial statements 93