Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

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58 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 16 Borrowings continued b) Finance lease Minimum lease payments MANDARIN ORIENTAL INTERNATIONAL LIMITED 2005 2004 US$m US$m Within one year – 1.4 Between two and five years – 6.6 Beyond five years – 314.4 – 322.4 Less: Future finance charges on finance lease – (314.4) Present value of finance lease liabilities – 8.0 The present value of finance lease liabilities may be analysed as follows: Within one year – 0.1 Between two and five years – 0.3 Beyond five years – 7.6 – 8.0 Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default. 17 Tax increment financing At 1st January 34.1 34.7 Amortization in the year (0.9) (0.6) At 31st December 33.2 34.1 Netted off against the net book value of the property (refer note 9) 31.5 32.4 Loan (refer note 16) 1.7 1.7 33.2 34.1 A development agreement was entered into between one of the Group’s subsidiaries with the District of Columbia (‘District’), pursuant to which the District agreed to provide certain funds to the subsidiary out of the net proceeds obtained through the issuance and sale of certain tax increment financing bonds (‘TIF Bonds’) for the development and construction of <strong>Mandarin</strong> <strong>Oriental</strong>,Washington D.C. The District agreed to contribute to the subsidiary US$33.0 million through the issuance of TIF Bonds in addition to US$1.7 million issued in the form of a loan, bearing simple interest at an annual rate of 6.0%.The US$1.7 million loan plus all accrued interest will be due on the earlier of 10th April 2017 or the date of the first sale of the hotel. The receipt of the TIF Bonds has been treated as a government grant and netted off against the net book value in respect of the property (refer note 9).The loan of US$1.7 million (2004: US$1.7 million) is included in long-term borrowings (refer note 16).
18 Segment information Analysis by geographical area Associates Capital Segment and joint Segment expenditure assets ventures liabilities US$m US$m US$m US$m 2005 Hong Kong and Macau 17.8 356.6 14.8 (36.4) Other Asia 22.5 57.8 113.2 (16.7) Europe 7.4 418.8 – (15.3) The Americas 4.7 235.7 77.0 (16.6) Segment capital expenditure 52.4 – – – Segment assets/(liabilities) – 1,068.9 205.0 (85.0) Unallocated assets/(liabilities) – 197.4 – (547.5) 52.4 1,266.3 205.0 (632.5) 2004 Restated Hong Kong and Macau 6.1 344.2 13.5 (30.7) Other Asia 1.2 31.8 120.9 (6.2) Europe 5.0 440.7 – (16.6) The Americas 20.0 238.5 124.2 (19.3) Segment capital expenditure 32.3 – – – Segment assets/(liabilities) – 1,055.2 258.6 (72.8) Unallocated assets/(liabilities) – 79.9 – (629.0) 32.3 1,135.1 258.6 (701.8) Capital expenditure comprises of additions of goodwill, tangible assets, and land use rights, including those arising from subsidiary undertakings. Unallocated assets and liabilities comprise other investments, tax assets and liabilities, cash and cash equivalents and borrowings.Associates and joint ventures include the Group’s share of attributable net assets. Analysis by activity Substantially all of the net assets of the Group are employed in hotel ownership. ANNUAL REPORT 2005 59
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MANDARIN ORIENTAL INTERNATIONAL LIM
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2 CONTENTS 01 Corporate Overview 03
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4 HIGHLIGHTS MANDARIN ORIENTAL INTE
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6 CHAIRMAN’S STATEMENT OVERVIEW M
Page 10 and 11: 8 GROUP CHIEF EXECUTIVE’S REVIEW
Page 16 and 17: 14 OPERATING SUMMARY The operating
Page 18 and 19: 16 OPERATING SUMMARY CONTINUED EURO
Page 20 and 21: 18 INTERNATIONAL RECOGNITION Mandar
Page 22 and 23: 20 FINANCIAL REVIEW A CCOUNTING POL
Page 24 and 25: 22 FINANCIAL REVIEW CONTINUED Cash
Page 26 and 27: 24 FINANCIAL REVIEW CONTINUED TREAS
Page 28 and 29: 26 DIRECTORS’ PROFILES Simon Kesw
Page 30 and 31: 28 CONSOLIDATED PROFIT AND LOSS ACC
Page 32 and 33: 30 CONSOLIDATED STATEMENT OF RECOGN
Page 34 and 35: 32 PRINCIPAL ACCOUNTING POLICIES A
Page 36 and 37: 34 PRINCIPAL ACCOUNTING POLICIES CO
Page 42 and 43: 40 NOTES TO THE FINANCIAL STATEMENT
Page 72 and 73: 70 PRINCIPAL SUBSIDIARIES, ASSOCIAT
Page 74 and 75: 72 INDEPENDENT AUDITORS’ REPORT T
Page 76 and 77: 74 CORPORATE GOVERNANCE The Group
Page 78 and 79: 76 CORPORATE GOVERNANCE CONTINUED D
Page 80 and 81: 78 CORPORATE GOVERNANCE CONTINUED D
Page 82 and 83: 80 SHAREHOLDER INFORMATION Financia
Page 84 and 85: 82 MANDARIN ORIENTAL HOTEL GROUP CO
Page 86 and 87: 84 SALES AND RESERVATIONS OFFICES C
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