INTERCONTINENTAL HOTELS GROUP PLC /NEW/ (ifrs-full:DisclosureOfOperatingSegmentsExplanatory)

The management of the Group’s operations, excluding Central functions, is organised within four geographical regions:

•

Americas;

•

Europe;

•

Asia, Middle East and Africa (AMEA); and

•

Greater China.

These, together with Central functions, comprise the Group’s five reportable segments. No operating segments have been aggregated to form these reportable segments.

Central functions include costs of global functions including technology, sales and marketing, finance, human resources and corporate services; central revenue arises principally from technology fee income. Central liabilities include the loyalty programme liability and the cumulative System Fund surplus.

Each of the geographical regions is led by its own Chief Executive Officer and derives its revenues from either franchising, managing or owning hotels and additional segmental disclosures are provided accordingly.

Management monitors the operating results of the geographical regions and Central functions separately for the purpose of making decisions about resource allocation and performance assessment. Segmental performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the Consolidated Financial Statements, excluding exceptional items. Group financing activities and income taxes are managed on a group basis and are not allocated to reportable segments.


Year ended 31 December 2017	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Revenue
Franchised		703			109			17			4			—			833
Managed		172			132			193			122			—			619
Owned and leased		150			—			34			—			—			184
Central		—			—			—			—			148			148

		1,025			241			244			126			148			1,784


	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Segmental result
Franchised		606			85			14			2			—			707
Managed		65			26			91			73			—			255
Owned and leased		29			—			2			—			—			31
Regional and central		(56	)		(25	)		(20	)		(23	)		(110	)		(234	)
Reportable segments’ operating profit		644			86			87			52			(110	)		759
Exceptional items (note 5)		37			(2	)		(2	)		—			(29	)		4

Operating profit		681			84			85			52			(139	)		763


	Group $m
Reportable segments’ operating profit		759
Exceptional items (note 5)		4

Operating profit		763

Net finance costs		(85	)
Profit before tax		678
Tax		(85	)

Profit for the year		593

All items above relate to continuing operations.


31 December 2017	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Assets and liabilities
Segment assets		1,525			350			264			154			541			2,834
Unallocated assets:
Non-current tax receivable																	16
Deferred tax assets																	56
Current tax receivable																	101
Cash and cash equivalents																	168

Total assets																	3,175


Segment liabilities		(470	)		(146	)		(86	)		(60	)		(999	)		(1,761	)
Unallocated liabilities:
Current tax payable																	(64	)
Non-current tax payable																	(25	)
Deferred tax liabilities																	(157	)
Loans and other borrowings																	(2,019	)

Total liabilities																	(4,026	)


Year ended 31 December 2017	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Other segmental information
Capital expenditure (see below)		120			18			8			2			188			336
Non-cash items:
Depreciation and amortisation^a		31			10			6			3			53			103
Share-based payments cost		—			—			—			—			21			21
Share of losses/(gains) of associates and joint ventures		1			—			(4	)		—			—			(3	)
Impairment charges		18			—			—			—			—			18

^a	Included in the $103m of depreciation and amortisation is $53m relating to administrative expenses and $50m relating to cost of sales.


	Americas $m		Europe $m		AMEA $m		Greater China $m		Central $m			Group $m
Reconciliation of capital expenditure
Capital expenditure per management reporting		120		18		8		2		188			336
Landlord contributions to property, plant and equipment		—		—		—		—		14			14
Timing differences and other adjustments		—		—		—		—		(1	)		(1	)

Additions per the Financial Statements		120		18		8		2		201			349

Comprising additions to:
Property, plant and equipment		10		—		—		2		32			44
Intangible assets		51		15		6		—		169			241
Investment in associates and joint ventures		47		—		—		—		—			47
Other financial assets		12		3		2		—		—			17

		120		18		8		2		201			349


Year ended 31 December 2016	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Revenue
Franchised		685			102			16			3			—			806
Managed		172			125			184			114			—			595
Owned and leased		136			—			37			—			—			173
Central		—			—			—			—			141			141

		993			227			237			117			141			1,715


	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Segmental result
Franchised		600			78			12			3			—			693
Managed		64			22			89			64			—			239
Owned and leased		24			—			2			—			—			26
Regional and central		(55	)		(25	)		(21	)		(22	)		(128	)		(251	)
Reportable segments’ operating profit		633			75			82			45			(128	)		707
Exceptional items (note 5)		(29	)		—			—			—			—			(29	)

Operating profit		604			75			82			45			(128	)		678


	Group $m
Reportable segments’ operating profit		707
Exceptional items (note 5)		(29	)

Operating profit		678

Net finance costs		(87	)
Profit before tax		591
Tax		(174	)

Profit for the year		417

All items above relate to continuing operations.


31 December 2016	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Assets and liabilities
Segment assets		1,417			321			249			147			439			2,573
Unallocated assets:
Non-current tax receivable																	23
Deferred tax assets																	48
Current tax receivable																	77
Cash and cash equivalents																	206

Total assets																	2,927

Segment liabilities		(438	)		(128	)		(68	)		(39	)		(997	)		(1,670	)
Unallocated liabilities:
Current tax payable																	(50	)
Deferred tax liabilities																	(251	)
Derivative financial instruments																	(3	)
Loans and other borrowings																	(1,712	)

Total liabilities																	(3,686	)


31 December 2016	Americas $m		Europe $m		AMEA $m			Greater China $m		Central $m		Group $m
Other segmental information
Capital expenditure (see below)		67		15		7			1		148		238
Non-cash items:
Depreciation and amortisation^a		25		10		5			3		53		96
Share-based payments cost		—		—		—			—		17		17
Share of losses/(gains) of associates and joint ventures		7		—		(5	)		—		—		2
Impairment charges		16		—		—			—		—		16

^a	Included in the $96m of depreciation and amortisation is $54m relating to administrative expenses and $42m relating to cost of sales.


	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Reconciliation of capital expenditure
Capital expenditure per management reporting		67			15			7			1			148			238
Timing differences and other adjustments		1			—			(1	)		(1	)		(7	)		(8	)

Additions per the Financial Statements		68			15			6			—			141			230

Comprising additions to:
Property, plant and equipment		13			—			2			—			14			29
Intangible assets		36			15			2			—			127			180
Investment in associates and joint ventures		14			—			—			—			—			14
Other financial assets		5			—			2			—			—			7

		68			15			6			—			141			230


Year ended 31 December 2015	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Revenue
Franchised		661			104			16			4			—			785
Managed		166			131			189			105			—			591
Owned and leased		128			30			36			98			—			292
Central		—			—			—			—			135			135

		955			265			241			207			135			1,803


	Americas $m			Europe $m			AMEA $m			Greater China $m			Central $m			Group $m
Segmental result
Franchised		575			77			12			5			—			669
Managed		64			28			90			59			—			241
Owned and leased		24			1			3			29			—			57
Regional and central		(66	)		(28	)		(19	)		(23	)		(151	)		(287	)
Reportable segments’ operating profit		597			78			86			70			(151	)		680
Exceptional items (note 5)		(41	)		175			(2	)		698			(11	)		819

Operating profit		556			253			84			768			(162	)		1,499


	Group $m
Reportable segments’ operating profit		680
Exceptional items (note 5)		819

Operating profit		1,499

Net finance costs		(87	)
Profit before tax		1,412
Tax		(188	)

Profit for the year		1,224

All items above relate to continuing operations.


Year ended 31 December 2015	Americas $m		Europe $m		AMEA $m			Greater China $m		Central $m		Group $m
Other segmental information
Capital expenditure		87		45		8			4		118		262
Non-cash items:
Depreciation and amortisation^a		23		10		6			8		49		96
Share-based payments cost		—		—		—			—		19		19
Share of losses/(gains) of associates and joint ventures		5		—		(2	)		—		—		3
Impairment charges		27		—		9			—		—		36

INTERCONTINENTAL HOTELS GROUP PLC /NEW/ | CIK:0000858446 |

ifrs-full:DisclosureOfOperatingSegmentsExplanatory