Holiday Inn 2004 Annual Report Download - page 65

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29 FINANCIAL INSTRUMENTS (CONTINUED)
Fair values The net book values and related fair values of the Group’s financial assets and liabilities are:
31 Dec 2003
31 Dec 2004 restated*
Net book Fair Net book Fair
value value value value
£m £m £m £m
Fixed asset investments 99 102 172 174
Current asset equity investments 76 76 ––
Net debt:
Cash and overdrafts 32 32 50 50
Current asset investments 40 40 361 361
Currency swap agreements (9) (9) 16 20
Other borrowings (1,179) (1,179) (996) (1,000)
Net debt (1,116) (1,116) (569) (569)
Other financial liabilities (148) (148) (148) (148)
Interest rate swap agreements – (3) – (29)
Forward exchange contracts –9– (1)
(1,089) (1,080) (545) (573)
* Restated to include certain provisions for liabilities and charges on a basis consistent with 2004.
The fair values of listed fixed asset investments and borrowings are based on market prices at the year end. Other assets and liabilities
have been fair valued by discounting expected future cash flows to present value.
Hedges The Group’s unrecognised gains and losses for the period on derivative financial instruments are:
Gains Losses Total
£m £m £m
Unrecognised at 30 September 2002 24 (45) (21)
Recognised in the period (2) 31 29
Arising in the period but not recognised (18) (16) (34)
Unrecognised at 31 December 2003 4 (30) (26)
Recognised in the year (1) 21 20
Arising in the year but not recognised 6612
Unrecognised at 31 December 2004 9 (3) 6
Expected to be recognised in the year ending 31 December 2005 9 (1) 8
Expected to be recognised thereafter – (2) (2)
Number of
shares
30 SHARE CAPITAL note millions £m
Authorised (ordinary shares and redeemable preference share)
At 31 December 2003 a10,000 10,000
Share capital consolidation b(1,071) –
At 31 December 2004 c8,929 10,000
Allotted, called up and fully paid (ordinary shares)
At 31 December 2003 (shares of £1 each) 739 739
Share capital consolidation b(75) –
Issued under option schemes 44
Repurchased and cancelled under repurchase programmes d(46) (46)
At 31 December 2004 (shares of 112 pence each) 622 697
a At 31 December 2003, the authorised share capital was £10,000,050,000, comprising 10,000,000,000 ordinary shares of £1 each and one redeemable preference
share of £50,000.
b On 10 December 2004, shareholders approved a share capital consolidation on the basis of 25 new ordinary shares for every 28 existing ordinary shares.
This provided for all the authorised ordinary shares of £1 each (whether issued or unissued) to be consolidated into new ordinary shares of 112 pence each.
The share capital consolidation became effective on 13 December 2004. The consolidation had no impact on the authorised redeemable preference share.
c At 31 December 2004, the authorised share capital was £10,000,049,999, comprising 8,928,571,428 ordinary shares of 112 pence each and one redeemable
preference share of £50,000.
d During 2004, the Company undertook to return funds of up to £500m to shareholders by way of two consecutive £250m share repurchase programmes, the second
of which commenced in December 2004. During the year, 46,385,981 ordinary shares were repurchased and cancelled under the authorities granted by shareholders
at general meetings held during 2003 and 2004.
InterContinental Hotels Group 2004 63