Holiday Inn 2012 Annual Report Download - page 129

OVERVIEW BUSINESS REVIEW GOVERNANCE
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS OTHER INFORMATION
Notes to the Group Financial Statements 127
29. Operating leases
During the year ended 31 December 2012, $64m (2011 $64m) was recognised as an expense in the Group income statement in respect of
operating leases, net of amounts borne directly by the System Fund. The expense includes contingent rents of $19m (2011 $18m).
Future minimum lease payments under non-cancellable operating leases are as follows:
2012 2011
$m $m
Due within one year 47 46
One to two years 34 41
Two to three years 25 32
Three to four years 22 23
Four to five years 22 21
More than five years 237 255
387 418
In addition, in certain circumstances the Group is committed to making additional lease payments that are contingent on the performance
of the hotels that are being leased.
The average remaining term of these leases, which generally contain renewal options, is approximately 19 years (2011 19 years).
No material restrictions or guarantees exist in the Group’s lease obligations.
Total future minimum rentals expected to be received under non-cancellable sub-leases are $10m (2011 $14m).
30. Capital and other commitments
2012 2011
$m $m
Contracts placed for expenditure on property, plant and equipment and intangible assets not provided
for in the Group Financial Statements 81 14
The Group has also committed to invest up to $60m in two investments accounted for under the equity method of which $37m had been
spent at 31 December 2012.
31. Contingencies
2012 2011
$m $m
Contingent liabilities not provided for in the Group Financial Statements 1 8
In limited cases, the Group may provide performance guarantees to third-party hotel owners to secure management contracts.
The maximum unprovided exposure under such guarantees is $50m (2011 $42m).
From time to time, the Group is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties
inherent in litigation. In particular, the Group is currently subject to an Office of Fair Trading enquiry in the UK and class action law suits in
the US. The Group has also given warranties in respect of the disposal of certain of its former subsidiaries. It is the view of the Directors
that, other than to the extent that liabilities have been provided for in these Financial Statements, it is not possible to quantify any loss to
which these proceedings or claims under these warranties may give rise, however, as at the date of reporting, the Group does not believe
that the outcome of these matters will have a material effect on the Group’s financial position.
32. Related party disclosures
2012 2011
$m $m
Total compensation of key management personnel
Short-term employment benefits 20.0 18.8
Post-employment benefits 0.8 0.8
Termination benefits 0.6 1.4
Equity compensation benefits 8.6 8.1
30.0 29.1
There were no other transactions with key management personnel during the year ended 31 December 2012 or the previous year.
Related party disclosures for associates and joint ventures are included in note 14.
Key management personnel comprises the Board and Executive Committee.