Consolidated Financial Statements and Consolidated Management ...
Consolidated Financial Statements and Consolidated Management ... Consolidated Financial Statements and Consolidated Management ...
15.2. Parent Company Reserves i) Legal reserve In accordance with the Revised Text of the Capital Companies Act, 10% of the net profit for each year must be allocated to the legal reserve until it reaches at least 20% of share capital. The legal reserve may be used to increase capital provided the remaining balance does not fall below 10% of the increased capital amount. With the exception of the aforementioned purpose, and when it does not exceed 20% of share capital, this reserve may only be used to offset losses, provided no other reserves are available for this purpose. ii) Share premium The Revised Text of the Capital Companies Act expressly allows the balance of this reserve to increase capital and lays down no restrictions on how it is used. iii) Other non-available reserves No distribution of dividends may take place until the goodwill item (excluding consolidation goodwill) booked in the individual financial statements of the companies included within the scope of consolidation of NH Hoteles Group has been fully written off, unless the amounts of available reserves are at least equal to the unamortised balances. Reserves totalling 11,914,000 euros at 31 December of 2011 (370,000 euros at 31 December 2010) could not be distributed, as this figure corresponds to the treasury share reserve. 15.3. Subsidiaries’ reserves The breakdown by entity of the balances in this item of the consolidated balance sheets – once the effect of consolidation adjustments are taken into account - and translation differences recognised in equity as a result of the consolidation process is shown below: Thousand euros 2011 2010 Reserves Exchange rate differences Reserves Exchange rate differences Full and proportional consolidation NH Participaties N.V. and subsidiaries 254,077 (413) 265,445 (41) Sotogrande, S.A. and subsidiaries 50,903 (2,324) 71,512 373 Latinoamericana de Gestión Hotelera, S.A. and subsidiaries 53,146 (61,482) 53,139 (51,074) NH Italia S.r.l. and subsidiaries 3,726 28 124 (211) NH Private Equity B.V. and subsidiaries 73 - 73 - NH Central Europe GmbH & Co. KG and subsidiaries (62,196) 55 (65,905) (3) Caribe Puerto Morelos, S.A. de C.V. 2,948 (916) 3,347 (498) Other foreign hotel companies (2,591) (17,891) (10,260) (7,600) Other Spanish hotel companies (130,868) - (38,525) - Subtotal 169,218 (82,943) 278,950 (59,054) Consolidation using the equity method Palacio de la Merced, S.A. (267) - (421) - Fonfir, S.L. (4) - (4) - Harrington Hall Hotel Ltd. (1,630) 370 (1,630) 370 Losan Investment Ltd. (2,392) (856) (2,392) (856) Capredo Investment GmbH (3,619) - (4,208) - Inmobiliaria 3 Puente, S.A. de C.V. (47) - (202) - Mil Novecientos Doce, S.A. de C.V. (82) - (67) - Consorcio Grupo Hotelero T2, S.A. de C.V. (108) - (1) - Sotocaribe, S.L. (3,475) - (1,249) - Subtotal (11,624) (486) (10,174) (486) TOTAL 157,594 (83,429) 268,776 (59,540) 15.4. Equity valuation adjustments Cash flow hedges This consolidated balance sheet item reflects the net changes in the value of financial derivatives designated as cash flow hedging instruments (see Note 4.7.3). Movements in the balance of this item during 2011 and 2010 are shown below: Thousand euros 2011 2010 Opening balance (6,577) (9,931) Write-offs 6,201 3,354 Ending balance (376) (6,577) A positive reserve was recognised in 2011 for equity adjustments connected with the cash flow hedging relationships of interest rate swaps (IRS) and collars amounting to 6,201,000 euros. The negative reserve for equity adjustments due to the valuation of interest rate derivative financial instruments in force at 31 December 2011 amounting to 376,000 euros will take place in 2012 as the loan agreements subject to hedging mature (see Note 18). 84 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
15.5. Treasury shares At year-end, the Group held 2,056,429 shares in NH Hoteles, S.A. (109,000 shares at year-end 2010), which represented 0.83% of its share capital at a cost of 11,914,000 euros (370,000 euros at year-end 2010). 15.6. Minority interests The breakdown by companies of the balance of the “Minority interests” item in the consolidated balance sheet at 31 December 2011 and 2010, along with the profit or loss corresponding to minority interests in 2011 and 2010 are shown below: Entity Minority Interests Thousand euros 2011 2010 Comprehensive profit (loss) attributed to minority interests Minority Interests Comprehensive profit (loss) attributed to minority interests NH Italia S.p.A. and subsidiaries 165,910 1,666 164,243 (5,147) Latinoamericana de Gestión Hotelera, S.A. and subsidiaries 14,898 101 16,300 1,076 Sotogrande, S.A. and subsidiaries 6,535 (1,041) 7,511 (1,259) NH Participaties N.V. and subsidiaries 3,803 267 3,536 160 Other Spanish hotel companies 13,504 1,894 12,565 1,560 204,650 2,887 204,155 (3,610) The movements in this item in 2011 and 2010 are summarised below: Thousand euros 2011 2010 Opening balance 204,155 209,254 Increases of capital 1,295 255 Comprehensive profit (loss) attributed to minority interests 2,887 (3,610) Changes in percentage stakes (124) (1,207) Dividends paid to minority interests (2,982) (336) Other movements (581) (201) Ending balance 204,650 204,155 The “Increases of capital” item in 2011 reflects the amounts paid out by minority interests in the increase of capital of Grupo Hotelero Querétaro, S.A. de C.V. totalling 112,000 euros and Hotel Ciutat de Mataró, S.A. for 600,000 euros. The “Dividends paid to minority interests” item basically reflects the dividends paid out in 2011 to the following companies: NH Las Palmas, S.A. amounting to 264,000 euros; City Hotel, S.A. amounting to 1,180,000 euros; Hotelera Lancaster, S.A. amounting to 435,000 euros; NH Marín, S.A., 880,000 euros; and Coperama Servicios a la Hostelería, S.L., 223,000 euros. 16. BANK BORROWINGS The breakdown of bank borrowings at 31 December 2011 and 2010 was as follows (thousand euros): Limit Available Drawn Down 2011 2012 2013 2014 Remainder Mortgage guarantee loans 180,818 893 179,925 37,942 21,792 21,318 98,873 Fixed rate 47,810 - 47,810 - 2,773 2,853 2,935 39,249 Variable Rate 133,008 893 132,115 - 35,169 18,939 18,383 59,624 Asset guarantee loans 70,152 - 70,152 - 58,073 6,755 4,695 629 Fixed rate 5,855 - 5,855 - 3,556 975 695 629 Variable Rate 64,297 - 64,297 - 54,517 5,780 40,000 - Loans against pledged shares 60,000 - 60,000 - 60,000 - - - Variable Rate 60,000 - 60,000 - 60,000 - - - Subordinated loans 75,000 - 75,000 - - - - 75,000 Variable Rate 75,000 - 75,000 - - - - 75,000 Syndicated loans 455,000 - 455,000 - 455,000 - - - Variable Rate 455,000 - 455,000 - 455,000 - - - Credit lines 238,600 21,150 217,450 - 217,450 - - - Variable Rate 238,600 21,150 217,450 - 217,450 - - - Arrangement expenses - - (4,812) - (1,673) (1,046) (1,046) (1,047) Debt due to interest - - 4,330 - 4,330 - - - Borrowing at 31.12.2011 1,079,570 22,043 1,057,045 831,122 27,501 24,967 173,455 Borrowing at 31.12.2010 1,197,397 23,818 1,171,759 507,966 514,432 22,642 18,704 108,015 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 85
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15.2. Parent Company Reserves<br />
i) Legal reserve<br />
In accordance with the Revised Text of the Capital Companies Act, 10% of the net profit for each year must be allocated to the legal reserve until it<br />
reaches at least 20% of share capital. The legal reserve may be used to increase capital provided the remaining balance does not fall below 10% of the<br />
increased capital amount. With the exception of the aforementioned purpose, <strong>and</strong> when it does not exceed 20% of share capital, this reserve may only<br />
be used to offset losses, provided no other reserves are available for this purpose.<br />
ii) Share premium<br />
The Revised Text of the Capital Companies Act expressly allows the balance of this reserve to increase capital <strong>and</strong> lays down no restrictions on how it<br />
is used.<br />
iii) Other non-available reserves<br />
No distribution of dividends may take place until the goodwill item (excluding consolidation goodwill) booked in the individual financial statements<br />
of the companies included within the scope of consolidation of NH Hoteles Group has been fully written off, unless the amounts of available reserves<br />
are at least equal to the unamortised balances.<br />
Reserves totalling 11,914,000 euros at 31 December of 2011 (370,000 euros at 31 December 2010) could not be distributed, as this figure corresponds<br />
to the treasury share reserve.<br />
15.3. Subsidiaries’ reserves<br />
The breakdown by entity of the balances in this item of the consolidated balance sheets – once the effect of consolidation adjustments are taken into<br />
account - <strong>and</strong> translation differences recognised in equity as a result of the consolidation process is shown below:<br />
Thous<strong>and</strong> euros<br />
2011 2010<br />
Reserves Exchange rate differences Reserves Exchange rate differences<br />
Full <strong>and</strong> proportional consolidation<br />
NH Participaties N.V. <strong>and</strong> subsidiaries 254,077 (413) 265,445 (41)<br />
Sotogr<strong>and</strong>e, S.A. <strong>and</strong> subsidiaries 50,903 (2,324) 71,512 373<br />
Latinoamericana de Gestión Hotelera, S.A. <strong>and</strong> subsidiaries 53,146 (61,482) 53,139 (51,074)<br />
NH Italia S.r.l. <strong>and</strong> subsidiaries 3,726 28 124 (211)<br />
NH Private Equity B.V. <strong>and</strong> subsidiaries 73 - 73 -<br />
NH Central Europe GmbH & Co. KG <strong>and</strong> subsidiaries (62,196) 55 (65,905) (3)<br />
Caribe Puerto Morelos, S.A. de C.V. 2,948 (916) 3,347 (498)<br />
Other foreign hotel companies (2,591) (17,891) (10,260) (7,600)<br />
Other Spanish hotel companies (130,868) - (38,525) -<br />
Subtotal 169,218 (82,943) 278,950 (59,054)<br />
Consolidation using the equity method<br />
Palacio de la Merced, S.A. (267) - (421) -<br />
Fonfir, S.L. (4) - (4) -<br />
Harrington Hall Hotel Ltd. (1,630) 370 (1,630) 370<br />
Losan Investment Ltd. (2,392) (856) (2,392) (856)<br />
Capredo Investment GmbH (3,619) - (4,208) -<br />
Inmobiliaria 3 Puente, S.A. de C.V. (47) - (202) -<br />
Mil Novecientos Doce, S.A. de C.V. (82) - (67) -<br />
Consorcio Grupo Hotelero T2, S.A. de C.V. (108) - (1) -<br />
Sotocaribe, S.L. (3,475) - (1,249) -<br />
Subtotal (11,624) (486) (10,174) (486)<br />
TOTAL 157,594 (83,429) 268,776 (59,540)<br />
15.4. Equity valuation adjustments<br />
Cash flow hedges<br />
This consolidated balance sheet item reflects the net changes in the value of financial derivatives designated as cash flow hedging instruments (see<br />
Note 4.7.3).<br />
Movements in the balance of this item during 2011 <strong>and</strong> 2010 are shown below:<br />
Thous<strong>and</strong> euros<br />
2011 2010<br />
Opening balance (6,577) (9,931)<br />
Write-offs 6,201 3,354<br />
Ending balance (376) (6,577)<br />
A positive reserve was recognised in 2011 for equity adjustments connected with the cash flow hedging relationships of interest rate swaps (IRS) <strong>and</strong> collars<br />
amounting to 6,201,000 euros.<br />
The negative reserve for equity adjustments due to the valuation of interest rate derivative financial instruments in force at 31 December 2011 amounting<br />
to 376,000 euros will take place in 2012 as the loan agreements subject to hedging mature (see Note 18).<br />
84<br />
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
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