Holiday Inn 2012 Annual Report Download - page 103

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OVERVIEW BUSINESS REVIEW GOVERNANCE
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS OTHER INFORMATION
Notes to the Group Financial Statements 101
5. Exceptional items
2012 2011
Note $m $m
Exceptional operating items
Administrative expenses:
Litigation provision a – (22)
Resolution of commercial dispute b – (37)
Pension curtailment gain c – 28
Reorganisation costs d (16) –
(16) (31)
Other operating income and expenses:
(Loss)/gain on disposal of hotels (note 11) (2) 37
Write-off of software (note 13) (18) –
Demerger liability released e 9 –
VAT refund f – 9
(11) 46
Impairment:
Impairment charges:
Property, plant and equipment (note 10) – (2)
Other financial assets (note 15) – (3)
Reversals of previously recorded impairment:
Property, plant and equipment (note 10) 23 23
Associates (note 14) – 2
23 20
(4) 35
Tax
Tax on exceptional operating items 1 5
Exceptional tax credit g 141 43
142 48
All items above relate to continuing operations.
The above items are treated as exceptional by reason of their size or nature.
a Related to a lawsuit filed against the Group in the Americas region, for which the final balance was paid in March 2012.
b Related to the settlement of a prior period commercial dispute in the Europe region.
c Related to the closure of the UK defined benefit pension scheme to future accrual with effect from 1 July 2013.
d Arises from a reorganisation of the Group’s support functions together with a restructuring within the AMEA region.
e Release of a liability no longer required relating to the demerger of the Group from Six Continents PLC.
f Arose in the UK relating to periods prior to 1996.
g Represents the recognition of $104m of deferred tax assets, principally relating to pre-existing overseas tax losses, whose value has become more certain as a result of a
change in law and the resolution of prior period tax matters, together with the associated release of $37m of provisions. In 2011, related to a $30m revision of the estimated
tax impacts of an internal reorganisation completed in 2010 together with the release of $13m of provisions.