Annual Report 2011 - Mandarin Oriental Hotel Group

24 Notes to consolidated cash flow statement
a) Non-cash items
Annual Report 2011 69
2011 2010
US$m US$m
Gain on One Hyde Park lease space* (10.8 ) –
Provisions against asset impairment (refer note 2) 1.6 –
Net foreign exchange (gain)/loss (0.2 ) 0.3
Share-based payment 2.6 3.7
Operating lease adjustments 3.9 0.1
Others 2.5 0.2
(0.4 ) 4.3
* Gain on One Hyde Park lease space of US$10.1 million (refer note 7) is stated after reflecting transaction costs of US$0.7 million from the
gross gain of US$10.8 million.
b) Movements in working capital
Increase in stocks (1.7 ) (0.2 )
Increase in debtors and prepayments (3.4 ) (1.9 )
Increase in creditors and accruals 23.7 7.3
18.6 5.2
c) Investments in and loans to associates included a loan to Mandarin Oriental, New York of US$1.2 million
(2010: US$2.0 million). In 2010, this also included a capital contribution to Mandarin Oriental, Miami of US$1.3 million.
d) Analysis of balances of cash and cash equivalents
Cash at bank (refer note 15) 470.1 433.5
Bank overdrafts (refer note 17) (1.0 ) (0.4 )
25 Derivative financial instruments
The fair values of derivative financial instruments at 31st December are as follows:
469.1 433.1
2011 2010
Positive Negative Positive Negative
fair fair fair fair
value value value value
US$m US$m US$m US$m
Designated as cash flow hedges
– interest rate swaps and caps – 19.2 – 17.5
At 31st December – 19.2 – 17.5
The notional principal amounts of the outstanding interest rate swap and cap contracts at 31st December 2011 were
US$246.3 million (2010: US$246.8 million).
At 31st December 2011, the fixed interest rates relating to interest rate swaps and caps vary from 2.9% to 7.0%
(2010: 2.9% to 7.0%).
The fair values of interest rate swaps are based on the estimated cash flows discounted at market rates ranging from
0.4% to 1.9% (2010: 0.3% to 2.1%) per annum.