NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 26 LEASE LIABILITIES Group Company 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Lease liabilities 670,940 697,439 26,642 32,522 Non-current 648,795 672,633 20,429 26,642 Current 22,145 24,806 6,213 5,880 670,940 697,439 26,642 32,522 The incremental borrowing rates of the Group’s and the Company’s lease liabilities range from 0.9% to 14.6% (2022: 0.9% to 14.6%) and 2.7% to 3.1% (2022: 2.7% to 3.1%) per annum respectively, as at 31 December 2023. Information about the Group’s and the Company’s exposure to foreign currency and liquidity risk is included in note 41. 27 OTHER LIABILITIES Group Company Note 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Deferred income 45,569 47,874 – – Rental deposits 62,707 52,928 1,618 9,564 Amounts owing to a subsidiary 7 – – – 750,144 Non-current retention sums payable 26,045 15,560 – – Deferred consideration for land acquired 79,836 – – – Miscellaneous (principally deposits received and payables) 16,147 19,781 – – 230,304 136,143 1,618 759,708 Included in deferred income are the following: (i) $7,030,000 (2022: $7,030,000) relating to the deferred gain on the sale of cash flows as disclosed in footnote (a) of note 44. (ii) $35,986,000 (2022: $37,970,000) relating to the deferred gain arising from the sale of Novotel Singapore Clarke Quay previously owned by CDLHT, to a joint venture. During 2022, $62.0 million deferred gain was realised and recognised as part of the gain on disposal of CDLHT under “Other income” in the consolidated statement of profit or loss. 28 PROVISIONS Beijing indemnity Capital expenditure Legal provisions Cash flow support Interest support Korea provision Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 Group At 1 January 2022 16,252 620 10,723 3,479 14,210 70,773 116,057 Disposal of subsidiary – (9,242) – – – – (9,242) Provision made/(written back) – 14,978 14,915 (3,479) (10,489) 11,013 26,938 Provision utilised – (4,107) – – – (18,917) (23,024) Unwinding of discount – – – – 179 – 179 Translation differences on consolidation (105) (9) (833) – – (3,364) (4,311) At 31 December 2022 16,147 2,240 24,805 – 3,900 59,505 106,597 Non-current 16,147 Current 90,450 106,597 At 1 January 2023 16,147 2,240 24,805 – 3,900 59,505 106,597 Provision made/(written back) – 2,850 (2,537) – (3,900) – (3,587) Provision utilised – (919) (1,126) – – (58,207) (60,252) Translation differences on consolidation (265) (295) (628) – – (1,298) (2,486) At 31 December 2023 15,882 3,876 20,514 – – – 40,272 Non-current 15,882 Current 24,390 40,272 The provision for Beijing indemnity relates to tax indemnity provided to the former shareholders of Grand Millennium Beijing in which the Group acquired an additional 40% interest in 2010. The provision for capital expenditure relates to the Group’s obligations to incur capital expenditure under the terms of certain hotel operating agreements. The legal provisions relate mainly to provisions made in relation to disputes in several hotels. The interest support relates to the Group’s obligation as the asset manager of Summervale Properties Pte. Ltd. (Summervale) to provide support for the coupon payments on fixed rate notes subscribed by third party investors and the Group as well as interest payments for bank borrowings taken up by Summervale. As at 31 December 2022, the Group’s obligation in connection with the interest support had been discharged following the redemption of the fixed rate notes. The Korea provision relates to the Group’s obligations under certain contracts in respect of Millennium Hilton Seoul and represents the costs to be incurred arising from the sale of Millennium Hilton Seoul. The sale of Millennium Hilton Seoul was completed during 2022. The Group settled part of the costs in 2022 and settled the remaining amount in 2023. The Group was fully reimbursed by the buyer of Millennium Hilton Seoul for the amounts incurred in respect of its obligations under the relevant contracts (note 16). The additional costs recognised in 2022 of $11.0 million was netted against the corresponding reimbursement from the buyer in the consolidated statement of profit or loss. FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 193 192
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