Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

2 Operating profit continued
2008 2007
US$m US$m
The following items have been (credited)/charged in arriving at operating profit:
Rental income (9.5 ) (9.4 )
Interest income from mezzanine loans (0.4 ) (1.7 )
Depreciation of tangible assets (refer note 9)
– Owned assets 37.8 37.6
Amortization of intangible assets (refer note 8) 1.5 0.9
Repairs and maintenance 20.8 19.8
Operating lease payments 13.9 11.4
Development costs 2.0 1.7
Employee benefit expense
– Salaries and benefits in kind 184.5 180.4
– Defined benefit pension costs (refer note 12) 1.3 1.2
– Defined contribution pension costs 0.5 0.5
– Share-based payments 4.2 2.7
190.5 184.8
Termination costs on hotel closure
Realization of exchange gain arising on repatriation of capital from
– 3.1
a foreign subsidiary undertaking and an associate (0.7 ) (8.3 )
Net foreign exchange (gain)/loss (0.3 ) 1.4
3 Net financing charges
2008 2007
US$m US$m
Interest income 12.4 18.9
Interest expense
– Bank loans (28.5 ) (33.9 )
Commitment and other fees (0.9 ) (1.4 )
Financing charges (29.4 ) (35.3 )
Net financing charges (17.0 ) (16.4 )
Annual Report 2008 47