Holiday Inn 2004 Annual Report Download - page 62

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26 DEFERRED TAXATION (CONTINUED)
The deferred tax asset of £113m (2003 £37m) recognised in respect of losses includes £89m (2003 £6m) of capital losses available
to be utilised against the realisation of capital gains which are recognised as a deferred tax liability and £24m (2003 £31m) in respect
of revenue tax losses. Tax losses with a value of £305m (2003 £317m), including capital losses with a value of £98m (2003 £112m),
have not been recognised as their use is uncertain or not currently anticipated.
No provision has been made for deferred tax on the sale of properties at their revalued amounts. The total amount unprovided is
estimated at £177m (2003 £215m).
No provision has been made for deferred tax on the sale of properties where gains have been, or are expected to be, deferred against
expenditure on replacement assets for an indefinite period until the sale of the replacement assets. The total amount unprovided is
estimated at £58m (2003 £52m), of which £14m is expected to be rolled over into capital expenditure in periods up to 31 December
2004. It is not anticipated that any such tax will be payable in the foreseeable future.
Hotels Onerous Total
27 OTHER PROVISIONS FOR LIABILITIES DisposalsareorganisationbcontractscPensionsdOther Group
26 AND CHARGES £m £m £m £m £m £m
At 31 December 2003 – 27 5 46 1 79
Exchange and other adjustments – (2) – (3) – (5)
Profit and loss account 74 – (1) 8 (1) 80
Expenditure – (17) (1) (2) – (20)
At 31 December 2004 74 8 3 49 – 134
a Relates to the disposal of 13 hotels in the Americas and 73 hotels in the United Kingdom.
b Relates to the Hotels reorganisation charged as a non-operating exceptional item in 2003 and is expected to be largely utilised in the year to 31 December 2005.
c Primarily relates to onerous fixed lease contracts acquired with the InterContinental hotels business and having expiry dates to 2008.
d Relates to unfunded post-retirement benefit plans (see note 5).
Group Company
31 Dec 31 Dec 31 Dec
31 Dec 2004 2003 2004 2003
Within After Within
one year one year Total Total one year Total
28 BORROWINGS £m £m £m £m £m £m
Bank loans and overdrafts
Secured:
Bank loans* 2495160 ––
Unsecured:
Bank loans 12 1,104 1,116 494 ––
Overdrafts 11 – 11 510 –
Total bank loans and overdrafts 25 1,153 1,178 559 10 –
Other borrowings
Secured:
Other loan stock†–––1––
Unsecured:
2007 Guaranteed Notes 5.75% (£250m) –––18 ––
2010 Guaranteed Notes 4.75% (€600m) 18 – 18 420 18 420
Other loan stock –333––
Total other borrowings 18 3 21 442 18 420
Total borrowings 43 1,156 1,199 1,001 28 420
* Secured by way of mortgage over individual hotel properties. The terms, rates of interest and currencies of these bank loans vary.
†Secured on the individual assets purchased by using such borrowings. The terms, rates of interest and currencies of these borrowings vary.
Notes to the financial statements
60 InterContinental Hotels Group 2004