Income taxes

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

	Three months ended		Nine months ended
	September 30, 2012	September 30, 2011	September 30, 2012	September 30, 2011
	$’000	$’000	$’000	$’000
Provision for income taxes	6,590	1,205	13,316	5,819

The Company is incorporated in Bermuda, which does not impose an income tax. OEH’s effective tax rate is significantly affected by its mix of income and loss in various jurisdictions as there is significant variation in the income tax rates imposed and also by the effect of losses in jurisdictions for which it is expected that the tax benefit of losses will not be recognizable at year-end. As described in Note 1, OEH forecasts its effective tax rate for the year and that rate is applied to interim results. Other items, however, are computed individually and recognized when the items occur. The significant components of these other items which cause variations in OEH’s customary relationship between income tax expense and pre-tax income for the three and nine months ended September 30, 2012 and 2011 include the following:

	Three months ended			Nine months ended
	September 30, 2012	September 30, 2011		September 30, 2012		September 30, 2011
	$’000	$’000		$’000		$’000
Exchange rate movements on deferred tax	49	(4,207	)	(1,278	)	(2,867	)
Deferred tax on derivatives	—	148		—		191
Changes in uncertain tax positions	76	(790	)	(180	)	(1,394	)
Changes in interest and penalties	18	76		258		(1,076	)
Other	322	—		48		—