Annual Report 2011 - Mandarin Oriental Hotel Group

54 Mandarin Oriental International Limited
Notes to the Financial Statements Continued
9 Tangible assets
Leasehold Furniture
Freehold properties & Plant & equipment &
properties improvements machinery motor vehicles Total
US$m US$m US$m US$m US$m
2011
Cost 350.0 673.0 89.7 220.2 1,332.9
Depreciation and impairment (41.4 ) (116.2 ) (52.0 ) (137.7 ) (347.3 )
Net book value at 1st January 308.6 556.8 37.7 82.5 985.6
Exchange differences (2.0 ) 3.6 (0.4 ) (1.6 ) (0.4 )
Additions 0.1 22.1 8.3 40.6 71.1
Disposals – (0.1 ) – (0.1 ) (0.2 )
Depreciation charge (3.7 ) (14.7 ) (5.4 ) (23.3 ) (47.1 )
Reclassification from intangible assets – 21.6 – 7.4 29.0
Net book value at 31st December 303.0 589.3 40.2 105.5 1,038.0
Cost 354.0 719.9 94.3 263.0 1,431.2
Depreciation and impairment (51.0 ) (130.6 ) (54.1 ) (157.5 ) (393.2 )
303.0 589.3 40.2 105.5 1,038.0
2010
Cost 346.7 652.0 97.6 226.3 1,322.6
Depreciation and impairment (23.4 ) (108.2 ) (58.4 ) (156.0 ) (346.0 )
Net book value at 1st January 323.3 543.8 39.2 70.3 976.6
Exchange differences (11.4 ) 7.0 0.7 1.8 (1.9 )
Additions 1.2 19.9 4.1 28.0 53.2
Disposals – – – (0.1 ) (0.1 )
Depreciation charge (4.5 ) (13.9 ) (6.3 ) (17.5 ) (42.2 )
Net book value at 31st December 308.6 556.8 37.7 82.5 985.6
Cost 350.0 673.0 89.7 220.2 1,332.9
Depreciation and impairment (41.4 ) (116.2 ) (52.0 ) (137.7 ) (347.3 )
308.6 556.8 37.7 82.5 985.6
Freehold properties include a property of US$100.6 million (2010: US$101.5 million), which is stated net of tax
increment financing of US$26.4 million (2010: US$27.3 million) (refer note 18).
Net book value of leasehold properties acquired under finance leases amounted to US$184.4 million
(2010: US$184.4 million).
Certain of the hotel properties are pledged as security for bank borrowings as shown in note 17.