Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2013 |
Condensed Consolidating Financial Statements [Abstract] | ' |
Schedule of Error Corrections and Prior Period Adjustments Condensed Consolidating Statements of Income [Table Text Block] | ' |
The following tables present the effect of the correction of these immaterial errors on selected line items in the Company's Guarantor Condensed Consolidating Statements of Income for the three and nine months ended September 30, 2012. |
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| For the Three Months Ended September 30, 2012 | | For the Nine Months Ended September 30, 2012 | | | | | | | | | |
| (in thousands) | | | | | | | | | |
| As Previously Reported | | Adjustment | | As Revised | | As Previously Reported | | Adjustment | | As Revised | | | | | | | | | |
Marketing and reservation expense | $ | 89,498 | | | $ | (843 | ) | | $ | 88,655 | | | $ | 244,861 | | | $ | (2,954 | ) | | $ | 241,907 | | | | | | | | | | |
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Total operating expenses | 111,041 | | | (843 | ) | | 110,198 | | | 314,261 | | | (2,954 | ) | | 311,307 | | | | | | | | | | |
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Operating income (loss) | (2,470 | ) | | 843 | | | (1,627 | ) | | 5,812 | | | 2,954 | | | 8,766 | | | | | | | | | | |
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Interest expense | (839 | ) | | 843 | | | 4 | | | (2,914 | ) | | 2,954 | | | 40 | | | | | | | | | | |
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Total other income and expenses, net | (1,350 | ) | | 843 | | | (507 | ) | | (5,051 | ) | | 2,954 | | | (2,097 | ) | | | | | | | | | |
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Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ' |
The following tables present the effect of this and other immaterial errors for the financial statement line items impacted in the affected periods included within these interim financial statements. |
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Consolidated Statements of Income |
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| | Three Months Ended September 30, 2013 | | Nine Months Ended September 30, 2013 |
| | As Previously Reported | | Discontinued Operations | | Adjustment | | As Restated | | As Previously Reported | | Discontinued Operations | | Adjustment | | As Restated |
| | (in thousands, except per share amounts) |
Royalty fees | | $ | 83,107 | | | $ | — | | | $ | (3,647 | ) | | $ | 79,460 | | | $ | 201,222 | | | $ | — | | | $ | 6,984 | | | $ | 208,206 | |
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Marketing and reservation revenues | | 126,296 | | | — | | | (1,487 | ) | | 124,809 | | | 302,381 | | | — | | | 8,823 | | | 311,204 | |
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Hotel operations | | 1,310 | | | (1,310 | ) | | — | | | — | | | 3,600 | | | (3,600 | ) | | — | | | — | |
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Total revenues | | 223,162 | | | (1,310 | ) | | (5,134 | ) | | 216,718 | | | 543,612 | | | (3,600 | ) | | 15,807 | | | 555,819 | |
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Selling, general and administrative | | 26,982 | | | — | | | (573 | ) | | 26,409 | | | 84,078 | | | — | | | (1,270 | ) | | 82,808 | |
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Depreciation and amortization | | 2,379 | | | (127 | ) | | 20 | | | 2,272 | | | 7,074 | | | (393 | ) | | 20 | | | 6,701 | |
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Marketing and reservation expenses | | 126,296 | | | — | | | (1,487 | ) | | 124,809 | | | 302,381 | | | — | | | 8,823 | | | 311,204 | |
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Hotel operations | | 956 | | | (956 | ) | | — | | | — | | | 2,742 | | | (2,742 | ) | | — | | | — | |
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Total operating expenses | | 156,613 | | | (1,083 | ) | | (2,040 | ) | | 153,490 | | | 396,275 | | | (3,135 | ) | | 7,573 | | | 400,713 | |
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Operating income | | 66,549 | | | (227 | ) | | (3,094 | ) | | 63,228 | | | 147,337 | | | (465 | ) | | 8,234 | | | 155,106 | |
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Income from continuing operations before income taxes | | 57,592 | | | (227 | ) | | (3,094 | ) | | 54,271 | | | 118,588 | | | (465 | ) | | 8,234 | | | 126,357 | |
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Income taxes | | 16,080 | | | (84 | ) | | (298 | ) | | 15,698 | | | 33,319 | | | (172 | ) | | 3,237 | | | 36,384 | |
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Income from continuing operations, net of income taxes | | 41,512 | | | (143 | ) | | (2,796 | ) | | 38,573 | | | 85,269 | | | (293 | ) | | 4,997 | | | 89,973 | |
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Basic earnings per share, continuing operations | | $ | 0.71 | | | $ | — | | | $ | (0.05 | ) | | $ | 0.66 | | | $ | 1.46 | | | $ | — | | | $ | 0.08 | | | $ | 1.54 | |
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Diluted earnings per share, continuing operations | | $ | 0.7 | | | $ | (0.01 | ) | | $ | (0.04 | ) | | $ | 0.65 | | | $ | 1.45 | | | $ | — | | | $ | 0.08 | | | $ | 1.53 | |
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| | Three Months Ended September 30, 2012 | | Nine Months Ended September 30, 2012 |
| | As Previously Filed | | Discontinued Operations | | Adjustment | | As Restated | | As Previously Filed | | Discontinued Operations | | Adjustment | | As Restated |
| | (in thousands, except per share amounts) |
Royalty fees | | $ | 80,845 | | | $ | — | | | $ | (2,807 | ) | | $ | 78,038 | | | $ | 194,762 | | | $ | — | | | $ | 8,225 | | | $ | 202,987 | |
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Marketing and reservation revenues | | 119,062 | | | — | | | (1,097 | ) | | 117,965 | | | 284,624 | | | — | | | 9,721 | | | 294,345 | |
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Hotel operations | | 1,238 | | | (1,238 | ) | | — | | | — | | | 3,440 | | | (3,440 | ) | | — | | | — | |
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Total revenues | | 210,413 | | | (1,238 | ) | | (3,904 | ) | | 205,271 | | | 513,203 | | | (3,440 | ) | | 17,946 | | | 527,709 | |
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Selling, general and administrative | | 23,170 | | | — | | | (98 | ) | | 23,072 | | | 72,073 | | | — | | | 249 | | | 72,322 | |
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Depreciation and amortization | | 1,995 | | | (135 | ) | | — | | | 1,860 | | | 5,989 | | | (401 | ) | | — | | | 5,588 | |
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Marketing and reservation expenses | | 119,062 | | | — | | | (1,097 | ) | | 117,965 | | | 284,624 | | | — | | | 9,721 | | | 294,345 | |
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Hotel operations | | 933 | | | (933 | ) | | — | | | — | | | 2,609 | | | (2,609 | ) | | — | | | — | |
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Total operating expenses | | 145,160 | | | (1,068 | ) | | (1,195 | ) | | 142,897 | | | 365,295 | | | (3,010 | ) | | 9,970 | | | 372,255 | |
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Operating income | | 65,253 | | | (170 | ) | | (2,709 | ) | | 62,374 | | | 147,908 | | | (430 | ) | | 7,976 | | | 155,454 | |
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Income from continuing operations before income taxes | | 55,668 | | | (170 | ) | | (2,709 | ) | | 52,789 | | | 133,840 | | | (430 | ) | | 7,976 | | | 141,386 | |
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Income taxes | | 11,291 | | | (63 | ) | | (1,076 | ) | | 10,152 | | | 37,604 | | | (160 | ) | | 3,303 | | | 40,747 | |
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Income from continuing operations, net of income taxes | | 44,377 | | | (107 | ) | | (1,633 | ) | | 42,637 | | | 96,236 | | | (270 | ) | | 4,673 | | | 100,639 | |
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Basic earnings per share, continuing operations | | $ | 0.77 | | | $ | — | | | $ | (0.03 | ) | | $ | 0.74 | | | $ | 1.66 | | | $ | (0.01 | ) | | $ | 0.08 | | | $ | 1.73 | |
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Diluted earnings per share, continuing operations | | $ | 0.76 | | | $ | — | | | $ | (0.03 | ) | | $ | 0.73 | | | $ | 1.65 | | | $ | — | | | $ | 0.08 | | | $ | 1.73 | |
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| | Nine Months Ended September 30, 2013 | | Nine Months Ended September 30, 2012 | | | | | | | | |
| | As Previously Filed | | Adjustment | | As Restated | | As Previously Filed | | Adjustment | | As Restated | | | | | | | | |
Consolidated Statement of Cash Flows | | (in thousands) | | | | | | | | |
Operating Activities | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 85,269 | | | $ | 4,997 | | | $ | 90,266 | | | $ | 96,236 | | | $ | 4,673 | | | $ | 100,909 | | | | | | | | | |
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Depreciation and amortization | | 7,074 | | | 20 | | | 7,094 | | | 5,989 | | | — | | | 5,989 | | | | | | | | | |
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Provision for bad debts, net | | 2,054 | | | 210 | | | 2,264 | | | 1,802 | | | 249 | | | 2,051 | | | | | | | | | |
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Non-cash stock compensation and other charges | | 8,638 | | | (3 | ) | | 8,635 | | | 7,306 | | | — | | | 7,306 | | | | | | | | | |
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Deferred income taxes | | (4,118 | ) | | 3,767 | | | (351 | ) | | (1,627 | ) | | 2,772 | | | 1,145 | | | | | | | | | |
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Receivables | | (13,699 | ) | | (12,936 | ) | | (26,635 | ) | | (17,405 | ) | | (14,856 | ) | | (32,261 | ) | | | | | | | | |
Advances to/from marketing and reservation activities, net | | 23,756 | | | 5,956 | | | 29,712 | | | 20,811 | | | 6,631 | | | 27,442 | | | | | | | | | |
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Income taxes payable/receivable | | 24,638 | | | (531 | ) | | 24,107 | | | 12,786 | | | 531 | | | 13,317 | | | | | | | | | |
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Net cash provided by operating activities | | 105,009 | | | 1,480 | | | 106,489 | | | 118,423 | | | — | | | 118,423 | | | | | | | | | |
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Investing Activities | | | | | | | | | | | | | | | | | | | | |
Investment in property and equipment | | (26,442 | ) | | (1,480 | ) | | (27,922 | ) | | (12,525 | ) | | — | | | (12,525 | ) | | | | | | | | |
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Net cash used in investing activities | | (28,350 | ) | | (1,480 | ) | | (29,830 | ) | | (16,709 | ) | | — | | | (16,709 | ) | | | | | | | | |
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| | As of September 30, 2013 | | As of December 31, 2012 | | | | | | | | |
| | As Previously Reported | | Adjustment | | As Restated | | As Previously Reported | | Adjustment | | As Revised | | | | | | | | |
Consolidated Balance Sheets | | (in thousands) | | | | | | | | |
Receivables | | $ | 62,605 | | | $ | 40,282 | | | $ | 102,887 | | | $ | 52,270 | | | $ | 27,729 | | | $ | 79,999 | | | | | | | | | |
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Income taxes receivable | | — | | | — | | | — | | | 2,732 | | | (531 | ) | | 2,201 | | | | | | | | | |
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Deferred income taxes | | 4,136 | | | 23,231 | | | 27,367 | | | 4,136 | | | 22,062 | | | 26,198 | | | | | | | | | |
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Total current assets | | 258,267 | | | 63,513 | | | 321,780 | | | 233,470 | | | 49,260 | | | 282,730 | | | | | | | | | |
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Property and equipment, at cost, net | | 65,540 | | | 1,460 | | | 67,000 | | | 51,651 | | | — | | | 51,651 | | | | | | | | | |
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Advances, marketing and reservation activities | | 32,564 | | | (18,494 | ) | | 14,070 | | | 42,179 | | | (12,712 | ) | | 29,467 | | | | | | | | | |
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Deferred income taxes | | 19,496 | | | (19,496 | ) | | — | | | 15,418 | | | (15,418 | ) | | — | | | | | | | | | |
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Total assets | | 555,709 | | | 26,983 | | | 582,692 | | | 510,772 | | | 21,130 | | | 531,902 | | | | | | | | | |
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Deferred income taxes | | — | | | 11,722 | | | 11,722 | | | — | | | 10,864 | | | 10,864 | | | | | | | | | |
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Total liabilities | | 1,040,433 | | | 11,722 | | | 1,052,155 | | | 1,059,676 | | | 10,864 | | | 1,070,540 | | | | | | | | | |
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Accumulated other comprehensive loss | | (5,370 | ) | | (3 | ) | | (5,373 | ) | | (4,216 | ) | | — | | | (4,216 | ) | | | | | | | | |
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Retained earnings | | 325,005 | | | 15,264 | | | 340,269 | | | 272,260 | | | 10,266 | | | 282,526 | | | | | | | | | |
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Total shareholders' deficit | | (484,724 | ) | | 15,261 | | | (469,463 | ) | | (548,904 | ) | | 10,266 | | | (538,638 | ) | | | | | | | | |
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The following tables present the effect of the correction for the aforementioned items on selected line items included in the Company's Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2012: |
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| For the Nine Months Ended September 30, 2012 | | | | | | | | | |
| Guarantor | | Non-Guarantor | | | | | | | | | |
| (in thousands) | | | | | | | | | |
| As Previously Reported | | Adjustment | | As Revised | | As Previously Reported | | Adjustment | | As Revised | | | | | | | | | |
Net cash provided (used) by operating activities | $ | (1,928 | ) | | $ | 6,869 | | | $ | 4,941 | | | $ | 36,131 | | | $ | (9,721 | ) | | $ | 26,410 | | | | | | | | | | |
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Investing Activities: | | | | | | | | | | | | | | | | | | | | |
Issuance of mezzanine and other notes receivable | (3,068 | ) | | 3,068 | | | — | | | — | | | — | | | — | | | | | | | | | | |
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Collection of mezzanine and other notes receivable | 216 | | | (216 | ) | | — | | | — | | | — | | | — | | | | | | | | | | |
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Advances to and investments in affiliates | — | | | (9,721 | ) | | (9,721 | ) | | — | | | — | | | — | | | | | | | | | | |
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Net cash provided (used) in investing activities | 1,649 | | | (6,869 | ) | | (5,220 | ) | | (9,636 | ) | | — | | | (9,636 | ) | | | | | | | | | |
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Financing Activities: | | | | | | | | | | | | | | | | | | | | |
Proceeds from contributions from affiliates | — | | | — | | | — | | | — | | | 9,721 | | | 9,721 | | | | | | | | | | |
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Net cash provided (used) by financing activities | 122 | | | — | | | 122 | | | (14 | ) | | 9,721 | | | 9,707 | | | | | | | | | | |
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Condensed Consolidating Statement Of Income | ' |
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Income |
For the Three Months Ended September 30, 2013 |
(Unaudited, in Thousands) |
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| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | |
Royalty fees | $ | 72,915 | | | $ | 25,161 | | | $ | 11,362 | | | $ | (29,978 | ) | | $ | 79,460 | | | | | | | | | | | | | | |
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Initial franchise and relicensing fees | 4,419 | | | — | | | 231 | | | — | | | 4,650 | | | | | | | | | | | | | | |
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Procurement services | 4,375 | | | — | | | 333 | | | — | | | 4,708 | | | | | | | | | | | | | | |
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Marketing and reservation | 112,354 | | | 96,672 | | | 5,807 | | | (90,024 | ) | | 124,809 | | | | | | | | | | | | | | |
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Other items, net | 2,778 | | | — | | | 313 | | | — | | | 3,091 | | | | | | | | | | | | | | |
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Total revenues | 196,841 | | | 121,833 | | | 18,046 | | | (120,002 | ) | | 216,718 | | | | | | | | | | | | | | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | 30,498 | | | 22,417 | | | 3,472 | | | (29,978 | ) | | 26,409 | | | | | | | | | | | | | | |
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Marketing and reservation | 117,480 | | | 92,784 | | | 4,569 | | | (90,024 | ) | | 124,809 | | | | | | | | | | | | | | |
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Other items, net | 828 | | | 1,222 | | | 222 | | | — | | | 2,272 | | | | | | | | | | | | | | |
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Total operating expenses | 148,806 | | | 116,423 | | | 8,263 | | | (120,002 | ) | | 153,490 | | | | | | | | | | | | | | |
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Operating income | 48,035 | | | 5,410 | | | 9,783 | | | — | | | 63,228 | | | | | | | | | | | | | | |
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OTHER INCOME AND EXPENSES: | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | 10,691 | | | 61 | | | 5 | | | — | | | 10,757 | | | | | | | | | | | | | | |
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Equity in earnings of consolidated subsidiaries | (13,031 | ) | | — | | | — | | | 13,031 | | | — | | | | | | | | | | | | | | |
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Other items, net | (577 | ) | | (697 | ) | | (526 | ) | | — | | | (1,800 | ) | | | | | | | | | | | | | |
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Total other income and expenses, net | (2,917 | ) | | (636 | ) | | (521 | ) | | 13,031 | | | 8,957 | | | | | | | | | | | | | | |
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Income from continuing operations before income taxes | 50,952 | | | 6,046 | | | 10,304 | | | (13,031 | ) | | 54,271 | | | | | | | | | | | | | | |
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Income taxes | 12,236 | | | 3,017 | | | 445 | | | — | | | 15,698 | | | | | | | | | | | | | | |
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Income from continuing operations, net of income taxes | 38,716 | | | 3,029 | | | 9,859 | | | (13,031 | ) | | 38,573 | | | | | | | | | | | | | | |
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Income from discontinued operations, net of income taxes | — | | | 143 | | | — | | | — | | | 143 | | | | | | | | | | | | | | |
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Net income | $ | 38,716 | | | $ | 3,172 | | | $ | 9,859 | | | $ | (13,031 | ) | | $ | 38,716 | | | | | | | | | | | | | | |
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Choice Hotels International, Inc. |
Condensed Consolidating Statement of Income |
For the Three Months Ended September 30, 2012 |
(Unaudited, in Thousands) |
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| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | |
Royalty fees | $ | 71,213 | | | $ | 16,347 | | | $ | 23,091 | | | $ | (32,613 | ) | | $ | 78,038 | | | | | | | | | | | | | | |
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Initial franchise and relicensing fees | 2,996 | | | — | | | 251 | | | — | | | 3,247 | | | | | | | | | | | | | | |
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Procurement services | 3,489 | | | — | | | 350 | | | — | | | 3,839 | | | | | | | | | | | | | | |
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Marketing and reservation | 108,615 | | | 91,022 | | | 4,828 | | | (86,500 | ) | | 117,965 | | | | | | | | | | | | | | |
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Other items, net | 1,991 | | | — | | | 191 | | | — | | | 2,182 | | | | | | | | | | | | | | |
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Total revenues | 188,304 | | | 107,369 | | | 28,711 | | | (119,113 | ) | | 205,271 | | | | | | | | | | | | | | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | 39,684 | | | 19,525 | | | (3,524 | ) | | (32,613 | ) | | 23,072 | | | | | | | | | | | | | | |
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Marketing and reservation | 110,694 | | | 88,695 | | | 4,233 | | | (85,657 | ) | | 117,965 | | | | | | | | | | | | | | |
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Other items, net | 706 | | | 950 | | | 204 | | | — | | | 1,860 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total operating expenses | 151,084 | | | 109,170 | | | 913 | | | (118,270 | ) | | 142,897 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Operating income | 37,220 | | | (1,801 | ) | | 27,798 | | | (843 | ) | | 62,374 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
OTHER INCOME AND EXPENSES: | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | 11,005 | | | 4 | | | — | | | (843 | ) | | 10,166 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Equity in earnings of consolidated subsidiaries | (27,231 | ) | | — | | | — | | | 27,231 | | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | 215 | | | (511 | ) | | (285 | ) | | — | | | (581 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total other income and expenses, net | (16,011 | ) | | (507 | ) | | (285 | ) | | 26,388 | | | 9,585 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations before income taxes | 53,231 | | | (1,294 | ) | | 28,083 | | | (27,231 | ) | | 52,789 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income taxes | 10,487 | | | (710 | ) | | 375 | | | — | | | 10,152 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations, net of income taxes | 42,744 | | | (584 | ) | | 27,708 | | | (27,231 | ) | | 42,637 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from discontinued operations, net of income taxes | — | | | 107 | | | — | | | — | | | 107 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net income | $ | 42,744 | | | $ | (477 | ) | | $ | 27,708 | | | $ | (27,231 | ) | | $ | 42,744 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
|
|
|
|
|
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Income |
For the Nine Months Ended September 30, 2013 |
(Unaudited, in Thousands) |
|
|
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | |
Royalty fees | $ | 189,559 | | | $ | 84,477 | | | $ | 31,940 | | | $ | (97,770 | ) | | $ | 208,206 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Initial franchise and relicensing fees | 12,074 | | | — | | | 769 | | | — | | | 12,843 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Procurement services | 15,559 | | | — | | | 645 | | | — | | | 16,204 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Marketing and reservation | 275,780 | | | 267,404 | | | 15,391 | | | (247,371 | ) | | 311,204 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | 6,581 | | | — | | | 781 | | | — | | | 7,362 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total revenues | 499,553 | | | 351,881 | | | 49,526 | | | (345,141 | ) | | 555,819 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Selling, general and administrative | 94,903 | | | 75,799 | | | 9,876 | | | (97,770 | ) | | 82,808 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Marketing and reservation | 287,436 | | | 257,197 | | | 13,942 | | | (247,371 | ) | | 311,204 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | 2,301 | | | 3,775 | | | 625 | | | — | | | 6,701 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total operating expenses | 384,640 | | | 336,771 | | | 24,443 | | | (345,141 | ) | | 400,713 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Operating income | 114,913 | | | 15,110 | | | 25,083 | | | — | | | 155,106 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
OTHER INCOME AND EXPENSES, NET: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Interest expense | 32,210 | | | 111 | | | 13 | | | — | | | 32,334 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Equity in earnings of consolidated subsidiaries | (34,691 | ) | | — | | | — | | | 34,691 | | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | (1,689 | ) | | (1,261 | ) | | (635 | ) | | — | | | (3,585 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total other income and expenses, net | (4,170 | ) | | (1,150 | ) | | (622 | ) | | 34,691 | | | 28,749 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations before income taxes | 119,083 | | | 16,260 | | | 25,705 | | | (34,691 | ) | | 126,357 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income taxes | 28,817 | | | 7,317 | | | 250 | | | — | | | 36,384 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations, net of income taxes | 90,266 | | | 8,943 | | | 25,455 | | | (34,691 | ) | | 89,973 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from discontinued operations, net of income taxes | — | | | 293 | | | — | | | — | | | 293 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net income | $ | 90,266 | | | $ | 9,236 | | | $ | 25,455 | | | $ | (34,691 | ) | | $ | 90,266 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
|
|
|
|
|
|
|
|
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Income |
For the Nine Months Ended September 30, 2012 |
(Unaudited, in Thousands) |
|
|
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | |
Royalty fees | $ | 183,573 | | | $ | 68,622 | | | $ | 40,295 | | | $ | (89,503 | ) | | $ | 202,987 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Initial franchise and relicensing fees | 8,459 | | | — | | | 494 | | | — | | | 8,953 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Procurement services | 13,349 | | | — | | | 641 | | | — | | | 13,990 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Marketing and reservation | 262,433 | | | 248,109 | | | 14,033 | | | (230,230 | ) | | 294,345 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | 6,958 | | | — | | | 476 | | | — | | | 7,434 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total revenues | 474,772 | | | 316,731 | | | 55,939 | | | (319,733 | ) | | 527,709 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Selling, general and administrative | 93,054 | | | 63,544 | | | 5,227 | | | (89,503 | ) | | 72,322 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Marketing and reservation | 266,563 | | | 242,001 | | | 13,057 | | | (227,276 | ) | | 294,345 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | 2,117 | | | 2,846 | | | 625 | | | — | | | 5,588 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total operating expenses | 361,734 | | | 308,391 | | | 18,909 | | | (316,779 | ) | | 372,255 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Operating income | 113,038 | | | 8,340 | | | 37,030 | | | (2,954 | ) | | 155,454 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
OTHER INCOME AND EXPENSES, NET: | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Interest expense | 19,731 | | | 40 | | | 6 | | | (2,954 | ) | | 16,823 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Equity in earnings of consolidated subsidiaries | (42,187 | ) | | — | | | — | | | 42,187 | | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | (274 | ) | | (2,137 | ) | | (344 | ) | | — | | | (2,755 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total other income and expenses, net | (22,730 | ) | | (2,097 | ) | | (338 | ) | | 39,233 | | | 14,068 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations before income taxes | 135,768 | | | 10,437 | | | 37,368 | | | (42,187 | ) | | 141,386 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income taxes | 34,859 | | | 4,503 | | | 1,385 | | | — | | | 40,747 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income from continuing operations, net of income taxes | 100,909 | | | 5,934 | | | 35,983 | | | (42,187 | ) | | 100,639 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Income (loss) from discontinued operations, net of income taxes | — | | | 270 | | | — | | | — | | | 270 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net income | $ | 100,909 | | | $ | 6,204 | | | $ | 35,983 | | | $ | (42,187 | ) | | $ | 100,909 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Schedule of Condensed Consolidating Statement of Comprehensive Income | ' |
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Comprehensive Income |
For the three Months Ended September 30, 2013 |
(Unaudited, in Thousands) |
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 38,716 | | | $ | 3,172 | | | $ | 9,859 | | | $ | (13,031 | ) | | $ | 38,716 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Amortization of loss on cash flow hedge | 215 | | | — | | | — | | | — | | | 215 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Foreign currency translation adjustment | 524 | | | — | | | 524 | | | (524 | ) | | 524 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax | 739 | | | — | | | 524 | | | (524 | ) | | 739 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Comprehensive income | $ | 39,455 | | | $ | 3,172 | | | $ | 10,383 | | | $ | (13,555 | ) | | $ | 39,455 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Comprehensive Income |
For the three Months Ended September 30, 2012 |
(Unaudited, in Thousands) |
|
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | $ | 42,744 | | | $ | (477 | ) | | $ | 27,708 | | | $ | (27,231 | ) | | $ | 42,744 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | | | |
Amortization of loss on cash flow hedge | 215 | | | — | | | — | | | — | | | 215 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Foreign currency translation adjustment | 211 | | | 1 | | | 209 | | | (210 | ) | | 211 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Amortization of pension related costs, net of tax: | | | | | | | | | | | | | | | | | | | | | | |
Actuarial loss | 20 | | | 20 | | | — | | | (20 | ) | | 20 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax | 446 | | | 21 | | | 209 | | | (230 | ) | | 446 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Comprehensive income | $ | 43,190 | | | $ | (456 | ) | | $ | 27,917 | | | $ | (27,461 | ) | | $ | 43,190 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
|
|
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Comprehensive Income |
For the Nine Months Ended September 30, 2013 |
(Unaudited, in Thousands) |
|
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 90,266 | | | $ | 9,236 | | | $ | 25,455 | | | $ | (34,691 | ) | | $ | 90,266 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | | | |
Amortization of loss on cash flow hedge | 646 | | | — | | | — | | | — | | | 646 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Foreign currency translation adjustment | (1,803 | ) | | — | | | (1,803 | ) | | 1,803 | | | (1,803 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax | (1,157 | ) | | — | | | (1,803 | ) | | 1,803 | | | (1,157 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Comprehensive income | $ | 89,109 | | | $ | 9,236 | | | $ | 23,652 | | | $ | (32,888 | ) | | $ | 89,109 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
|
|
|
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Comprehensive Income |
For the Nine Months Ended September 30, 2012 |
(Unaudited, in Thousands) |
|
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 100,909 | | | $ | 6,204 | | | $ | 35,983 | | | $ | (42,187 | ) | | $ | 100,909 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | | | | |
Amortization of loss on cash flow hedge | 646 | | | — | | | — | | | — | | | 646 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Foreign currency translation adjustment | 191 | | | 5 | | | 171 | | | (176 | ) | | 191 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Amortization of pension related costs, net of tax: | | | | | | | | | | | | | | | | | | | | | | |
Actuarial loss | 60 | | | 60 | | | — | | | (60 | ) | | 60 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other comprehensive income (loss), net of tax | 897 | | | 65 | | | 171 | | | (236 | ) | | 897 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Comprehensive income | $ | 101,806 | | | $ | 6,269 | | | $ | 36,154 | | | $ | (42,423 | ) | | $ | 101,806 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
|
Condensed Consolidating Balance Sheet | ' |
Choice Hotels International, Inc. |
Condensed Consolidating Balance Sheet |
As of September 30, 2013 |
(Unaudited, in thousands) |
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | 10,921 | | | $ | 437 | | | $ | 149,780 | | | $ | — | | | $ | 161,138 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Receivables, net | 91,527 | | | 2,088 | | | 9,272 | | | — | | | 102,887 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other current assets | 39,201 | | | 17,826 | | | 728 | | | — | | | 57,755 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total current assets | 141,649 | | | 20,351 | | | 159,780 | | | — | | | 321,780 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Property and equipment, at cost, net | 11,351 | | | 54,791 | | | 858 | | | — | | | 67,000 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Goodwill | 60,620 | | | 5,193 | | | — | | | — | | | 65,813 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Franchise rights and other identifiable intangibles, net | 7,113 | | | 2,251 | | | 1,511 | | | — | | | 10,875 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances, marketing and reservation activities | 14,070 | | | — | | | — | | | — | | | 14,070 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Investments, employee benefit plans, at fair value | — | | | 14,950 | | | — | | | — | | | 14,950 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Investment in affiliates | 366,607 | | | 27,307 | | | — | | | (393,914 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances to affiliates | 13,995 | | | 203,916 | | | 10,603 | | | (228,514 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred income taxes | — | | | 8,413 | | | 1,001 | | | (9,414 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other assets | 30,113 | | | 27,839 | | | 30,252 | | | — | | | 88,204 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total assets | $ | 645,518 | | | $ | 365,011 | | | $ | 204,005 | | | $ | (631,842 | ) | | $ | 582,692 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | $ | 9,098 | | | $ | 27,757 | | | $ | 3,903 | | | $ | — | | | $ | 40,758 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Accrued expenses | 19,397 | | | 22,098 | | | 1,980 | | | — | | | 43,475 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred revenue | 5,995 | | | 54,666 | | | 740 | | | — | | | 61,401 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Current portion of long-term debt | 8,437 | | | 684 | | | 11 | | | — | | | 9,132 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred compensation & retirement plan obligations | — | | | 2,439 | | | — | | | — | | | 2,439 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other current liabilities | 13,503 | | | 7,941 | | | 462 | | | — | | | 21,906 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total current liabilities | 56,430 | | | 115,585 | | | 7,096 | | | — | | | 179,111 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Long-term debt | 811,243 | | | 4,694 | | | 20 | | | — | | | 815,957 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred compensation & retirement plan obligations | — | | | 21,212 | | | 7 | | | — | | | 21,219 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances from affiliates | 220,721 | | | 403 | | | 7,390 | | | (228,514 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other liabilities | 26,587 | | | 18,211 | | | 484 | | | (9,414 | ) | | 35,868 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total liabilities | 1,114,981 | | | 160,105 | | | 14,997 | | | (237,928 | ) | | 1,052,155 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total shareholders’ (deficit) equity | (469,463 | ) | | 204,906 | | | 189,008 | | | (393,914 | ) | | (469,463 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total liabilities and shareholders’ deficit | $ | 645,518 | | | $ | 365,011 | | | $ | 204,005 | | | $ | (631,842 | ) | | $ | 582,692 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
|
Choice Hotels International, Inc. |
Condensed Consolidating Balance Sheet |
As of December 31, 2012 |
(In Thousands) |
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Guarantor | | Non-Guarantor | | Eliminations | | Consolidated | | | | | | | | | | | | | |
Subsidiaries | Subsidiaries | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Cash and cash equivalents | $ | 8,420 | | | $ | 407 | | | $ | 125,350 | | | $ | — | | | $ | 134,177 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Receivables, net | 70,011 | | | 1,920 | | | 8,068 | | | — | | | 79,999 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other current assets | 44,899 | | | 23,495 | | | 3,528 | | | (3,368 | ) | | 68,554 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total current assets | 123,330 | | | 25,822 | | | 136,946 | | | (3,368 | ) | | 282,730 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Property and equipment, at cost, net | 11,307 | | | 39,298 | | | 1,046 | | | — | | | 51,651 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Goodwill | 60,620 | | | 5,193 | | | — | | | — | | | 65,813 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Franchise rights and other identifiable intangibles, net | 8,669 | | | 2,715 | | | 2,089 | | | — | | | 13,473 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances, marketing and reservation activities | 29,467 | | | | | | — | | | — | | | 29,467 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Investments, employee benefit plans, at fair value | — | | | 12,755 | | | — | | | — | | | 12,755 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Investment in affiliates | 331,416 | | | 26,194 | | | — | | | (357,610 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances to affiliates | 14,252 | | | 206,770 | | | 13,479 | | | (234,501 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred income taxes | | | | 10,367 | | | 599 | | | (10,966 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other assets | 32,085 | | | 18,925 | | | 25,003 | | | | | | 76,013 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total assets | $ | 611,146 | | | $ | 348,039 | | | $ | 179,162 | | | $ | (606,445 | ) | | $ | 531,902 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Accounts payable | $ | 5,930 | | | $ | 28,525 | | | $ | 4,259 | | | $ | — | | | $ | 38,714 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Accrued expenses | 18,582 | | | 34,576 | | | 2,394 | | | — | | | 55,552 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred revenue | 17,239 | | | 53,081 | | | 834 | | | — | | | 71,154 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Current portion of long-term debt | 7,500 | | | 675 | | | 20 | | | — | | | 8,195 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred compensation and retirement plan obligations | — | | | 2,522 | | | — | | | — | | | 2,522 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other current liabilities | — | | | 2,047 | | | 1,321 | | | (3,368 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total current liabilities | 49,251 | | | 121,426 | | | 8,828 | | | (3,368 | ) | | 176,137 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Long-term debt | 845,257 | | | 1,845 | | | 48 | | | — | | | 847,150 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Deferred compensation & retirement plan obligations | — | | | 20,390 | | | 9 | | | — | | | 20,399 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances from affiliates | 226,917 | | | 189 | | | 7,395 | | | (234,501 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other liabilities | 28,359 | | | 9,216 | | | 245 | | | (10,966 | ) | | 26,854 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total liabilities | 1,149,784 | | | 153,066 | | | 16,525 | | | (248,835 | ) | | 1,070,540 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total shareholders’ (deficit) equity | (538,638 | ) | | 194,973 | | | 162,637 | | | (357,610 | ) | | (538,638 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Total liabilities and shareholders' deficit | $ | 611,146 | | | $ | 348,039 | | | $ | 179,162 | | | $ | (606,445 | ) | | $ | 531,902 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Condensed Consolidating Statement Of Cash Flows | ' |
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Cash Flows |
For the Nine Months Ended September 30, 2013 |
(Unaudited, in thousands) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent (Restated) | | Guarantor | | Non-Guarantor | | Eliminations (Restated) | | Consolidated (Restated) | | | | | | | | | | | | | |
Subsidiaries (Restated) | Subsidiaries (Restated) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | $ | 60,070 | | | $ | 20,198 | | | $ | 26,221 | | | $ | — | | | $ | 106,489 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Investment in property and equipment | (4,083 | ) | | (23,662 | ) | | (177 | ) | | — | | | (27,922 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Equity method investments | — | | | (1,481 | ) | | (2,280 | ) | | — | | | (3,761 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Issuance of mezzanine and other notes receivable | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Collections of mezzanine and other notes receivable | 224 | | | — | | | — | | | — | | | 224 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Purchases of investments, employee benefit plans | — | | | (1,845 | ) | | — | | | — | | | (1,845 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from sales of investments, employee benefit plans | — | | | 4,052 | | | — | | | — | | | 4,052 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances to and investments in affiliates | (1,000 | ) | | (1,280 | ) | | — | | | 2,280 | | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | (578 | ) | | — | | | — | | | — | | | (578 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net cash provided (used) in investing activities | (5,437 | ) | | (24,216 | ) | | (2,457 | ) | | 2,280 | | | (29,830 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Net repayments pursuant to revolving credit facilities | (27,500 | ) | | — | | | — | | | — | | | (27,500 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from issuance of long-term debt | — | | | 3,360 | | | — | | | — | | | 3,360 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Principal payments on long-term debt | (5,625 | ) | | (502 | ) | | (31 | ) | | — | | | (6,158 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Purchase of treasury stock | (3,684 | ) | | — | | | — | | | — | | | (3,684 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Dividends paid | (22,026 | ) | | — | | | — | | | — | | | (22,026 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Excess tax benefits from stock-based compensation | 26 | | | 1,190 | | | — | | | — | | | 1,216 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from contributions from affiliates | — | | | — | | | 2,280 | | | (2,280 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from exercise of stock options | 6,677 | | | — | | | — | | | — | | | 6,677 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net cash provided (used) by financing activities | (52,132 | ) | | 4,048 | | | 2,249 | | | (2,280 | ) | | (48,115 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net change in cash and cash equivalents | 2,501 | | | 30 | | | 26,013 | | | — | | | 28,544 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Effect of foreign exchange rate changes on cash and cash equivalents | — | | | — | | | (1,583 | ) | | — | | | (1,583 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Cash and cash equivalents at beginning of period | 8,420 | | | 407 | | | 125,350 | | | — | | | 134,177 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 10,921 | | | $ | 437 | | | $ | 149,780 | | | $ | — | | | $ | 161,138 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Choice Hotels International, Inc. |
Condensed Consolidating Statement of Cash Flows |
For the Nine Months Ended September 30, 2012 |
(Unaudited, in Thousands) |
|
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent | | Guarantor | | Non-Guarantor | | Eliminations | | Consolidated | | | | | | | | | | | | | |
Subsidiaries | Subsidiaries | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | $ | 87,072 | | | $ | 4,941 | | | $ | 26,410 | | | $ | — | | | $ | 118,423 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Investment in property and equipment | (7,126 | ) | | (5,217 | ) | | (182 | ) | | — | | | (12,525 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Equity method investments | — | | | — | | | (9,454 | ) | | — | | | (9,454 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Issuance of mezzanine and other notes receivable | (4,236 | ) | | — | | | — | | | — | | | (4,236 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Collections of mezzanine and other notes receivable | 110 | | | — | | | — | | | — | | | 110 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Purchases of investments, employee benefit plans | — | | | (1,191 | ) | | — | | | — | | | (1,191 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from sales of investments, employee benefit plans | — | | | 10,909 | | | — | | | — | | | 10,909 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Advances to and investments in affiliates | — | | | (9,721 | ) | | — | | | 9,721 | | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Other items, net | (322 | ) | | — | | | — | | | — | | | (322 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net cash provided (used) in investing activities | (11,574 | ) | | (5,220 | ) | | (9,636 | ) | | 9,721 | | | (16,709 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | | | |
Net borrowings pursuant to revolving credit facilities | 16,725 | | | — | | | — | | | — | | | 16,725 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from issuance of long-term debt | 543,500 | | | — | | | — | | | — | | | 543,500 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Principal payments on long-term debt | — | | | (488 | ) | | (14 | ) | | — | | | (502 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Purchase of treasury stock | (22,227 | ) | | — | | | — | | | — | | | (22,227 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Dividends paid | (632,751 | ) | | — | | | — | | | — | | | (632,751 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Excess tax benefits from stock-based compensation | 183 | | | 610 | | | — | | | — | | | 793 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Debt issuance costs | (4,753 | ) | | — | | | — | | | — | | | (4,753 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from contributions from affiliates | — | | | — | | | 9,721 | | | (9,721 | ) | | — | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Proceeds from exercise of stock options | 4,695 | | | — | | | — | | | — | | | 4,695 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net cash provided (used) by financing activities | (94,628 | ) | | 122 | | | 9,707 | | | (9,721 | ) | | (94,520 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Net change in cash and cash equivalents | (19,130 | ) | | (157 | ) | | 26,481 | | | — | | | 7,194 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Effect of foreign exchange rate changes on cash and cash equivalents | — | | | — | | | 813 | | | — | | | 813 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Cash and cash equivalents at beginning of period | 23,370 | | | 432 | | | 83,255 | | | — | | | 107,057 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
Cash and cash equivalents at end of period | $ | 4,240 | | | $ | 275 | | | $ | 110,549 | | | $ | — | | | $ | 115,064 | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |