Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CHOICE HOTELS INTERNATIONAL INC /DE | ||
Trading Symbol | chh | ||
Entity Central Index Key | 1,046,311 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 56,389,126 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,788,577,527 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
REVENUES: | |||||
Royalty fees | $ 301,508 | $ 287,538 | $ 267,812 | ||
Initial franchise and relicensing fees | 24,680 | 19,481 | 18,686 | ||
Procurement services | 27,071 | 23,819 | 20,668 | ||
Marketing and reservation | 488,763 | 412,619 | 407,633 | ||
Other | 17,856 | 14,513 | 9,851 | ||
Total revenues | 859,878 | 757,970 | 724,650 | ||
OPERATING EXPENSES: | |||||
Selling, general and administrative | 134,254 | 121,418 | 111,713 | ||
Depreciation and amortization | 11,542 | 9,365 | 9,056 | ||
Marketing and reservation | 488,763 | 412,619 | 407,633 | ||
Total operating expenses | 634,559 | 543,402 | 528,402 | ||
Operating income | 225,319 | 214,568 | 196,248 | ||
OTHER INCOME AND EXPENSES: | |||||
Interest expense | 42,833 | 41,486 | 42,537 | ||
Interest income | (1,580) | (1,761) | (2,547) | ||
Other (gains) losses | (820) | 427 | (1,780) | ||
Equity in net (income) loss of affiliates | 901 | 658 | (634) | ||
Other income and expenses, net | 41,334 | 40,810 | 37,576 | ||
Income from continuing operations before income taxes | 183,985 | 173,758 | 158,672 | ||
Income taxes | 55,956 | 52,285 | 45,322 | ||
Income from continuing operations, net of income taxes | 128,029 | 121,473 | 113,350 | ||
Income from discontinued operations, net of income taxes | 0 | 1,687 | 359 | ||
Net income | $ 128,029 | $ 123,160 | $ 113,709 | ||
Basic earnings per share: | |||||
Basic earnings per share, Continuing operations (in dollars per share) | $ 2.24 | [1] | $ 2.08 | [1] | $ 1.94 |
Basic earnings per share, Discontinued operations (in dollars per share) | 0 | [1] | 0.03 | [1] | 0 |
Basic earnings per share (in dollars per share) | 2.24 | 2.11 | 1.94 | ||
Diluted earnings per share: | |||||
Diluted earnings per share, Continuing operations (in dollars per share) | 2.22 | [1] | 2.07 | [1] | 1.92 |
Diluted earnings per share, Discontinued operations (in dollars per share) | 0 | [1] | 0.03 | [1] | 0.01 |
Diluted earnings per share (in dollars per share) | $ 2.22 | $ 2.10 | $ 1.93 | ||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 29,203 | $ 41,419 | $ 35,813 | $ 21,594 | $ 25,285 | $ 39,365 | $ 35,400 | $ 23,110 | $ 128,029 | $ 123,160 | $ 113,709 |
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 862 | 861 | 862 | ||||||||
Foreign currency translation adjustment | (2,669) | (1,615) | (2,863) | ||||||||
Other comprehensive income (loss), net of tax | (1,807) | (754) | (2,001) | ||||||||
Comprehensive income | $ 126,222 | $ 122,406 | $ 111,708 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 193,441 | $ 214,879 |
Receivables (net of allowance for doubtful accounts of $8,719 and $10,084, respectively) | 89,352 | 91,681 |
Income taxes receivable | 5,486 | 1,458 |
Notes receivable, net of allowances | 5,107 | 3,961 |
Other current assets | 17,567 | 13,450 |
Total current assets | 310,953 | 325,429 |
Property and equipment, at cost, net | 88,158 | 77,309 |
Goodwill | 79,327 | 65,813 |
Franchise rights and other identifiable intangibles, net | 11,948 | 8,912 |
Notes receivable, net of allowances | 82,572 | 40,441 |
Investments, employee benefit plans, at fair value | 17,674 | 17,539 |
Investments in unconsolidated entities | 67,037 | 50,605 |
Deferred income taxes | 42,434 | 44,406 |
Other assets | 16,907 | 7,463 |
Total assets | 717,010 | 637,917 |
Current liabilities | ||
Accounts payable | 64,431 | 57,124 |
Accrued expenses and other current liabilities | 70,648 | 64,158 |
Deferred revenue | 71,587 | 66,382 |
Current portion of long-term debt | 1,191 | 12,349 |
Income taxes payable | 159 | 85 |
Total current liabilities | 208,016 | 200,098 |
Long-term debt | 812,945 | 772,729 |
Deferred compensation and retirement plan obligations | 22,859 | 23,987 |
Deferred income taxes | 506 | 0 |
Other liabilities | 68,583 | 69,904 |
Total liabilities | $ 1,112,909 | $ 1,066,718 |
Commitments and Contingencies | ||
SHAREHOLDERS' DEFICIT | ||
Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2015 and 2014 and 56,336,566 and 57,337,720 shares outstanding at December 31, 2015 and 2014, respectively | $ 951 | $ 573 |
Additional paid-in-capital | 149,895 | 127,661 |
Accumulated other comprehensive loss | (8,778) | (6,971) |
Treasury stock (38,729,072 and 37,727,918 shares at December 31, 2015 and 2014, respectively), at cost | (1,052,864) | (982,463) |
Retained earnings | 514,897 | 432,399 |
Total shareholders’ deficit | (395,899) | (428,801) |
Total liabilities and shareholders’ deficit | $ 717,010 | $ 637,917 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Receivables, allowance for doubtful accounts | $ 8,719 | $ 10,084 |
SHAREHOLDERS' DEFICIT | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 95,065,638 | 95,065,638 |
Common stock, shares outstanding | 56,336,566 | 57,337,720 |
Treasury stock, shares | 38,729,072 | 37,727,918 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 128,029 | $ 123,160 | $ 113,709 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,542 | 9,365 | 9,582 |
(Gain) loss on disposal of assets | (1,521) | (2,809) | (151) |
Provision for bad debts, net | 1,704 | 2,775 | 2,743 |
Non-cash stock compensation and other charges | 11,805 | 9,706 | 11,422 |
Non-cash interest and other (income) loss | 3,229 | 3,174 | 1,545 |
Deferred income taxes | 615 | (22,899) | (6,277) |
Equity (earnings) losses from unconsolidated joint ventures, net of distributions received | 3,279 | 2,200 | 811 |
Changes in assets and liabilities, net of acquisition: | |||
Receivables | 401 | (14,250) | (7,899) |
Advances to/from marketing and reservation activities, net | 11,074 | 70,179 | 42,991 |
Forgivable notes receivable, net | (23,066) | (12,914) | (8,347) |
Accounts payable | 6,493 | 9,636 | 2,304 |
Accrued expenses and other current liabilities | 5,166 | 6,678 | (9,595) |
Income taxes payable/receivable | (4,399) | (3,582) | 4,276 |
Deferred revenue | 5,251 | 5,297 | (9,861) |
Other assets | (5,792) | (1,250) | (3,197) |
Other liabilities | 6,062 | (575) | 9,857 |
Net cash provided by operating activities | 159,872 | 183,891 | 153,913 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | (27,765) | (20,946) | (33,397) |
Acquisitions, net of cash acquired | (13,269) | 0 | 0 |
Contributions to equity method investments | (23,737) | (17,789) | (5,685) |
Distributions from equity method investments | 518 | 0 | 0 |
Issuance of mezzanine and other notes receivable | (36,884) | (3,340) | (1,095) |
Collections of mezzanine and other notes receivable | 4,849 | 11,289 | 9,748 |
Purchases of investments, employee benefit plans | (3,220) | (2,794) | (2,676) |
Proceeds from sales of investments, employee benefit plans | 3,170 | 964 | 4,168 |
Proceeds from sale of assets | 6,347 | 15,612 | 243 |
Other items, net | (9,819) | (642) | (728) |
Net cash used in investing activities | (99,810) | (17,646) | (29,422) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from the issuance of long-term debt | 176 | 250 | 3,360 |
Net borrowings (repayments) pursuant to revolving credit facilities | 158,867 | 0 | (57,000) |
Principal payments on long-term debt | (130,501) | (10,108) | (8,204) |
Debt issuance costs | (2,169) | 0 | 0 |
Excess tax benefits from stock-based compensation | 5,207 | 3,721 | 1,460 |
Purchase of treasury stock | (72,873) | (77,972) | (3,965) |
Dividends paid | (45,214) | (43,529) | (32,799) |
Proceeds from exercise of stock options | 7,056 | 10,098 | 8,864 |
Net cash used in financing activities | (79,451) | (117,540) | (88,284) |
Net change in cash and cash equivalents | (19,389) | 48,705 | 36,207 |
Effect of foreign exchange rate changes on cash and cash equivalents | (2,049) | (1,621) | (2,589) |
Cash and cash equivalents at beginning of period | 214,879 | 167,795 | 134,177 |
Cash and cash equivalents at end of period | 193,441 | 214,879 | 167,795 |
Cash payments during the year for: | |||
Income taxes, net of refunds | 54,990 | 77,562 | 47,513 |
Interest, net of capitalized interest | 40,056 | 40,644 | 43,327 |
Non-cash investing and financing activities: | |||
Dividends declared but not paid | 11,548 | 11,176 | 10,785 |
Equity method investments | 0 | 2,827 | 0 |
Investment in property and equipment acquired in accounts payable | 3,717 | 15,670 | 658 |
Acquisitions, long-term debt assumed | $ 0 | $ 10,667 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Beginning balance, shares at Dec. 31, 2012 | 58,171,059 | |||||
Beginning balance at Dec. 31, 2012 | $ (538,638) | $ 582 | $ 110,246 | $ (4,216) | $ (927,776) | $ 282,526 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 113,709 | 113,709 | ||||
Other comprehensive income | (2,001) | (2,001) | ||||
Share based payment activity (shares) | 571,684 | |||||
Share based payment activity | 21,245 | $ 5 | 7,522 | 13,718 | ||
Dividends declared | (43,212) | $ (42,700) | (43,212) | |||
Treasury purchases (shares) | (103,880) | |||||
Treasury purchases | (3,965) | $ (1) | (3,964) | |||
Other | (9) | (9) | ||||
Ending balance, shares at Dec. 31, 2013 | 58,638,863 | |||||
Ending balance at Dec. 31, 2013 | (452,871) | $ 586 | 117,768 | (6,217) | (918,031) | 353,023 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 123,160 | 123,160 | ||||
Other comprehensive income | (754) | (754) | ||||
Share based payment activity (shares) | 550,205 | |||||
Share based payment activity | 23,283 | $ 6 | 9,893 | 13,384 | ||
Dividends declared | (43,784) | $ (43,400) | (43,784) | |||
Treasury purchases (shares) | (1,510,070) | |||||
Treasury purchases | (77,972) | $ (15) | (77,957) | |||
Other (shares) | (341,278) | |||||
Other | $ 137 | $ (4) | 141 | |||
Ending balance, shares at Dec. 31, 2014 | 57,337,720 | 57,337,720 | ||||
Ending balance at Dec. 31, 2014 | $ (428,801) | $ 573 | 127,661 | (6,971) | (982,463) | 432,399 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 128,029 | |||||
Other comprehensive income | (1,807) | (1,807) | ||||
Share based payment activity (shares) | 443,040 | |||||
Share based payment activity | 23,887 | $ 0 | 22,110 | 1,777 | ||
Dividends declared | (45,531) | $ (45,100) | (45,531) | |||
Treasury purchases (shares) | (1,444,194) | |||||
Treasury purchases | (72,873) | $ 0 | 0 | (72,873) | ||
Other | $ 1,197 | $ 378 | (124) | 695 | ||
Ending balance, shares at Dec. 31, 2015 | 56,336,566 | 56,336,566 | ||||
Ending balance at Dec. 31, 2015 | $ (395,899) | $ 951 | $ 149,895 | $ (8,778) | $ (1,052,864) | $ 514,897 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements present the financial position, results of operations and cash flows of Choice Hotels International, Inc., a Delaware corporation and subsidiaries (the "Company"). The Company consolidates entities under its control, including variable interest entities where it is deemed to be the primary beneficiary. Investments in unconsolidated affiliates, including corporate joint ventures and certain other entities, in which the Company owns 50% or less and exercises significant influence over the operating and financial policies of the investee are accounted for by the equity method. All significant inter-company accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, ultimate results could differ from those estimates. In the opinion of management, the accompanying consolidated financial statements include all normal and recurring adjustments that are necessary to fairly present the financial position, results of operations and cash flows of the Company. The financial statements for the year ended December 31, 2013 has been revised related to revenue recognition and other immaterial errors as disclosed in the Company's Form 10-K/A, filed with the Securities and Exchange Commission on November 3, 2014. Reclassifications in Consolidated Financial Statements In 2015, the Company revised the presentation of its current portion of notes receivable, net of allowances and investments in unconsolidated entities in the prior year’s consolidated balance sheet to conform to the current year’s presentation with no effect on previously reported current assets, total assets, net income, cash flows or shareholder’s deficit. Specifically, these items were reclassified from other current assets and other assets to separately stated financial statement line items. Discontinued Operations In the first quarter of 2014, the Company's management approved a plan to dispose of the three Company owned Mainstay Suites hotels. As a result, the Company has reported the operations related to these three hotels as discontinued operations. The Company's results of operations for the periods included in this Form 10-K have also been recast to account for these operations as discontinued. For additional information regarding discontinued operations, see Note 28, Discontinued Operations. Revenue Recognition The Company enters into franchise agreements to provide franchisees with various marketing services, a centralized reservation system and limited non-exclusive rights to utilize the Company’s registered trade names and trademarks. These agreements typically have an initial term from ten to thirty years with provisions permitting franchisees or the Company to terminate the franchise agreement under certain circumstances, such as upon designated anniversaries of the agreement, before the end of the agreement term. In most instances, initial franchise and relicensing fees are recognized upon execution of the franchise agreement because the initial franchise and relicensing fees are non-refundable and the Company is not required to provide initial services to the franchisee prior to hotel opening. The initial franchise and relicensing fees related to executed franchise agreements which include incentives, such as future potential cash rebates or forgivable promissory notes, are deferred and recognized when the incentive criteria are met or the agreement is terminated, whichever occurs first. Royalty and marketing and reservation system revenues, which are typically based on a percentage of gross room revenues or the number of hotel rooms of each franchisee, are recorded when earned and realizable from the franchisee. Franchise fees based on a percentage of gross room revenues are recognized in the same period that the underlying gross room revenues are earned by the Company's franchisees. An estimate of uncollectible revenue is charged to bad debt expense and included in selling, general and administrative ("SG&A") and marketing and reservation expenses in the accompanying consolidated statements of income. The Company generates procurement services revenues from qualified vendors. Procurement services revenues are generally based on the level of goods or services purchased from qualified vendors by hotel franchise owners and hotel guests who stay in the Company’s franchised hotels or based on marketing services provided by the Company on behalf of the qualified vendors to hotel owners and guests. The Company recognizes procurement services revenues when the services are performed or the product is delivered, evidence of an arrangement exists, the fee is fixed or determinable and collectibility is reasonably assured. The Company defers the recognition of procurement services’ revenues related to upfront fees. Such upfront fees are generally recognized over a period corresponding to the Company’s estimate of the life of the arrangement. Marketing and Reservation Revenues and Expenses The Company’s franchise agreements require the payment of certain marketing and reservation system fees, which are used exclusively by the Company for expenses associated with providing franchise services such as national marketing, operating a guest loyalty program, media advertising, central reservation systems and technology services. The Company is contractually obligated to expend the marketing and reservation system revenue it collects from franchisees in accordance with the franchise agreements; as such, no income or loss to the Company is generated. In accordance with the franchise agreements, the Company includes in marketing and reservation expenses an allocation of costs for certain activities, such as human resources, facilities, legal, accounting, etc., required to carry out marketing and reservation activities. The Company records marketing and reservation system revenues and expenses on a gross basis since the Company is the primary obligor in the arrangement, maintains the credit risk, establishes the price and nature of the marketing or reservation services and retains discretion in supplier selection. In addition, net advances to and recoveries from the franchise system for marketing and reservation activities are presented as cash flows from operating activities. Marketing and reservation system revenues not expended in the current year are deferred and recorded as a liability in the Company's balance sheet and are carried over to the next fiscal year and expended in accordance with the franchise agreements or utilized to repay previous advances. Marketing and reservation expenses incurred in excess of revenues are recorded as an asset in the Company's balance sheet, with a corresponding reduction in costs, and are similarly recovered in subsequent years. Under the terms of the franchise agreements, the Company may advance capital and incur costs as necessary for marketing and reservation activities and recover such advances through future fees. The Company evaluates the recoverability of marketing and reservation costs incurred in excess of cumulative marketing and reservation system revenues earned on a periodic basis. The Company will record a reserve when, based on current information and events, it is probable that it will be unable to collect all amounts advanced for marketing and reservation activities according to the contractual terms of the franchise agreements. These advances are considered to be unrecoverable if the expected net, undiscounted cash flows from marketing and reservation activities are less than the carrying amount of the asset. The Company believes that any credit risk associated with cumulative cost advances for marketing and reservation system activities is mitigated due to the contractual right to recover these amounts from a large geographically dispersed group of franchisees. Choice Privileges is the Company’s frequent guest incentive marketing program. Choice Privileges enables members to earn points based on their spending levels with franchisees and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by credit card companies. The points, which the Company accumulates and tracks on the members’ behalf, may be redeemed for free accommodations or other benefits. The Company provides Choice Privileges as a marketing program to franchised hotels and collects a percentage of program members’ room revenue from franchises to operate the program. Revenues are deferred in an amount equal to the estimated fair value of the future redemption obligation. The Company develops an estimate of the eventual redemption rates and point values using various actuarial methods. These judgmental factors determine the required liability attributable to outstanding points. Upon redemption of points, the Company recognizes the previously deferred revenue as well as the corresponding expense relating to the cost of the awards redeemed. Revenues in excess of the estimated future redemption obligation are recognized when earned to reimburse the Company for costs incurred to operate the program, including administrative costs, marketing, promotion, and performing member services. Accounts Receivable and Credit Risk Accounts receivable consist primarily of franchise and related fees due from hotel franchises and are recorded at the invoiced amount. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the existing accounts receivable. The Company determines the allowance considering historical write-off experience and a review of aged receivable balances. However, the Company considers its credit risk associated with trade receivables to be partially mitigated due to the dispersion of these receivables across a large number of geographically diverse franchisees. The Company records bad debt expense in SG&A and marketing and reservation expenses in the accompanying consolidated statements of income based on its assessment of the ultimate realizability of trade receivables considering historical collection experience and the economic environment. When the Company determines that an account is not collectible, the account is written-off to the associated allowance for doubtful accounts. Advertising Costs The Company expenses advertising costs as the advertising occurs. Advertising expense was $116.9 million , $93.7 million and $84.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company includes advertising costs primarily in marketing and reservation expenses on the accompanying consolidated statements of income. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less at the date of purchase to be cash equivalents. At December 31, 2015 and 2014 , the Company had book overdrafts totaling $10.8 million and $5.4 million , respectively which are included in accounts payable in the accompanying consolidated balance sheets. These book overdrafts represent outstanding checks in excess of funds on deposit. The Company maintains cash balances in domestic banks, which, at times, may exceed the limits of amounts insured by the Federal Deposit Insurance Corporation. In addition, the Company also maintains cash balances in international banks which do not provide deposit insurance. Capitalization Policies Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or their useful lives. Major renovations and replacements incurred during construction are capitalized. Additionally, the Company capitalizes any interest incurred during construction of property and equipment or the development of software. Upon sale or retirement of property, the cost and related accumulated depreciation are eliminated from the accounts and any related gain or loss is recognized in the accompanying consolidated statements of income. Maintenance, repairs and minor replacements are charged to expense as incurred. Costs for computer software developed for internal use are capitalized during the application development stage and depreciated using the straight-line method over the estimated useful lives of the software. Leased property meeting certain capital lease criteria is capitalized and the present value of the related lease payments is recorded as a liability. The present value of the minimum lease payments are calculated utilizing the lower of the Company’s incremental borrowing rate or the lessor’s interest rate implicit in the lease, if known by the Company. Amortization of capitalized leased assets is computed utilizing the straight-line method over either the shorter of the estimated useful life of the asset or the initial lease term and included in depreciation and amortization in the Company's consolidated statements of income. However, if the lease meets the bargain purchase or transfer of ownership criteria the asset shall be amortized in accordance with the Company’s normal depreciation policy for owned assets. Assets Held for Sale The Company considers property to be assets held for sale when all of the following criteria are met: • Management commits to a plan to sell an asset; • It is unlikely that the disposal plan will be significantly modified or discontinued; • The asset is available for immediate sale in its present condition; • Actions required to complete the sale of the asset have been initiated; • Sale of the asset is probable and the Company expects the completed sale will occur within one year; and • The asset is actively being marketed for sale at a price that is reasonable given its current market value. Upon designation as an asset held for sale, the Company records the carrying value of each asset at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and ceases recording depreciation. If at any time these criteria are no longer met, subject to certain exceptions, the assets previously classified as held for sale are reclassified as held and used and measured individually at the lower of the following: a. the carrying amount before the asset was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the asset been continuously classified as held and used; b. the fair value at the date of the subsequent decision not to sell. Valuation of Intangibles and Long-Lived Assets The Company evaluates the potential impairment of property and equipment and other long-lived assets, including franchise rights and other definite-lived intangibles, whenever an event or other circumstances indicates that the Company may not be able to recover the carrying value of the asset. When indicators of impairment are present, recoverability is assessed based on net, undiscounted expected cash flows. If the net, undiscounted expected cash flows are less than the carrying amount of the assets, an impairment charge is recorded for the excess of the carrying value over the fair value of the asset. We estimate the fair value of intangibles and long lived assets primarily using undiscounted cash flow analysis. The Company did not identify any indicators of impairment of long-lived assets during the years ended December 31, 2015, 2014 and 2013 . Significant management judgment is involved in evaluating indicators of impairment and developing any required projections to test for recoverability or estimate the fair value of an asset. Furthermore, if management uses different projections or if different conditions occur in future periods, future-operating results could be materially impacted. The Company evaluates the impairment of goodwill and intangible assets with indefinite lives on an annual basis, or during the year if an event or other circumstance indicates that the Company may not be able to recover the carrying amount of the asset. In evaluating these assets for impairment, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit or the indefinite lived intangible asset is less than its carrying amount. If the conclusion is that it is not more likely than not that the fair value of the asset is less than its carrying value, then no further testing is required. If the conclusion is that it is more likely than not that the fair value of the asset is less than its carrying value, then a two-step impairment test is performed for goodwill. For indefinite-lived intangibles, the carrying value is compared to the fair value of the asset and an impairment charge is recognized for any excess. The Company may elect to forego the qualitative assessment and move directly to the two-step impairment test for goodwill and the the fair value determination for indefinite-lived intangibles. The Company determines the fair value of its reporting units and indefinite-lived intangibles using income and market methods. The Company did not record any impairment of goodwill or intangible assets with indefinite lives during the years ended December 31, 2015, 2014 and 2013 . Variable Interest Entities In accordance with the guidance for the consolidation of variable interest entities, the Company analyzes its variable interests, including loans, guarantees, and equity investments, to determine if the entity in which the Company has a variable interest is a variable interest entity. The analysis includes both quantitative and qualitative consideration. For those entities determined to be variable interests entities, a further quantitative and qualitative analysis is performed to determine if the Company will be deemed the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. The Company consolidates those entities in which it is determined to be the primary beneficiary. Investments in Unconsolidated Entities The Company evaluates an investment in a venture for impairment when circumstances indicate that the carrying value may not be recoverable, for example due to loan defaults, significant under performance relative to historical or projected operating performance, and significant negative industry or economic trends. When there is indication that a loss in value has occurred, the Company evaluates the carrying value compared to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. If the estimated fair value is less than carrying value, management uses its judgment to determine if the decline in value is other-than-temporary. In determining this, the Company considers factors including, but not limited to, the length of time and extent of the decline, loss of values as a percentage of the cost, financial condition and near-term financial projections, the Company's intent and ability to recover the lost value and current economic conditions. For declines in value that are deemed other-than-temporary, impairments are charged to earnings. Sales Taxes The Company presents taxes collected from customers and remitted to governmental authorities on a net basis and therefore they are excluded from revenues in the consolidated financial statements. Foreign Operations The United States dollar is the functional currency of the consolidated entities operating in the United States. The functional currency for the consolidated entities operating outside of the United States is generally the currency of the primary economic environment in which the entity primarily generates and expends cash. The Company translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. The Company translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using the weighted average exchange rate for the period. The Company includes translation adjustments from foreign exchange and the effect of exchange rate changes on inter-company transactions of a long-term investment nature as a separate component of shareholders’ deficit. The Company reports foreign currency transaction gains and losses and the effect of inter-company transactions of a short-term or trading nature in SG&A expenses on the consolidated statements of income. Foreign currency transaction losses for the years ended December 31, 2015, 2014 and 2013 were $0.5 million , $1.1 million and $0.4 million , respectively. Derivatives The Company periodically uses derivative instruments as part of its overall strategy to manage exposure to market risks associated with fluctuations in interest rates. All outstanding derivative financial instruments are recognized at their fair values as assets or liabilities. The impact on earnings from recognizing the fair values of these instruments depends on their intended use, their hedge designation and their effectiveness in offsetting changes in the fair values of the exposures they are hedging. The Company does not use derivatives for trading purposes. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments are recorded as a component of accumulated other comprehensive income (loss) and the ineffective portion is reported currently in earnings. The amounts included in accumulated other comprehensive income are reclassified into earnings in the same period during which the hedged item affects earnings. Amounts reported in earnings are classified consistent with the item being hedged. The Company formally documents all relationships between its hedging instruments and hedged items at inception, including its risk management objective and strategy for establishing various hedge relationships. Cash flows from hedging instruments are classified in the consolidated statements of cash flows consistent with the items being hedged. Hedge accounting is discontinued prospectively when (i) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item, (ii) the derivative instrument expires, is sold, terminated or exercised, or (iii) designating the derivative instrument as a hedge is no longer appropriate. The effectiveness of derivative instruments is assessed at inception and on an ongoing basis. At December 31, 2015 and 2014 , there were no outstanding derivative positions. Guarantees The Company has historically issued certain guarantees to support the growth of its brands. A liability is recognized for the fair value of such guarantees upon inception of the guarantee and upon any subsequent modification, such as renewals, when the Company remains contingently liable. The fair value of a guarantee is the estimated amount at which the liability could be settled in a current transaction between willing unrelated parties. The Company evaluates these guarantees on a quarterly basis to determine if there is a probable loss requiring recognition. Recently Adopted Accounting Guidance In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU No. 2014-08"). ASU No. 2014-08 changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU No. 2014-08 is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company adopted this ASU on January 1, 2015 and it did not have a material impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of September 30, 2015 , and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $9.5 million and $9.4 million of unamortized debt issuance costs related to the Company's outstanding borrowings (see Note 13) from other current and non-current assets to long-term debt within its consolidated balance sheets as of December 31, 2015 and 2014 , respectively. In August 2015, the FASB issued ASU No. 2015-15, " Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements " ("ASU 2015-15"). ASU 2015-15 allows an entity to defer and present debt issuance costs as an asset when there are no amounts outstanding under line-of-credit arrangements and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. Other than the aforementioned reclassification, the adoption of ASU 2015-03 did not have an impact on the Company's consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, " Simplifying the Accounting for Measurement-Period Adjustments " ("ASU 2015-16"). ASU 2015-16 requires that any adjustments to the provisional amounts of an acquisition and the effect on earnings in changes of depreciation, amortization, and other income effects from the adjustment should be recorded to the period in which the adjustment amount is determined. This standard is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this newly issued guidance during the third quarter of 2015. There was no impact to the results of operations from this adoption for the year ended December 31, 2015. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during the fourth quarter of 2015 and applied the guidance retrospectively. Accordingly, current deferred taxes were reclassified to noncurrent on the December 31, 2014 consolidated balance sheet, which increased noncurrent deferred tax assets $24.0 million . |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following at: December 31, December 31, (in thousands) Prepaid expenses $ 14,144 $ 12,280 Other current assets 3,423 1,170 Total $ 17,567 $ 13,450 |
Notes Receivable and Allowance
Notes Receivable and Allowance for Losses | 12 Months Ended |
Dec. 31, 2015 | |
Accounts and Notes Receivable, Net [Abstract] | |
Notes Receivable and Allowance for Losses | Notes Receivable and Allowance for Losses The Company segregates its notes receivable for the purposes of evaluating allowances for credit losses between two categories: Mezzanine and Other Notes Receivable and Forgivable Notes Receivable . The Company utilizes the level of security it has in the various notes receivable as its primary credit quality indicator (i.e. senior, subordinated or unsecured) when determining the appropriate allowances for uncollectible loans within these categories. Mezzanine and Other Notes Receivables The Company has provided financing to franchisees in support of the development of properties in strategic markets. Interest income associated with these notes receivable is reflected in the accompanying consolidated statements of income under the caption interest income. The Company expects the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. The Company estimates the collectibility and records an allowance for loss on its mezzanine and other notes receivable when recording the receivables in the Company’s financial statements. These estimates are updated quarterly based on available information. The Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest payments and the contractual principal payments of a loan will be collected as scheduled in the loan agreement. The Company measures loan impairment based on the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. For impaired loans, the Company establishes a specific impairment reserve for the difference between the recorded investment in the loan and the present value of the expected future cash flows or the estimated fair value of the collateral. The Company applies its loan impairment policy individually to all mezzanine and other notes receivable in the portfolio and does not aggregate loans for the purpose of applying such policy. For impaired loans, the Company recognizes interest income on a cash basis. If it is likely that a loan will not be collected based on financial or other business indicators, it is the Company’s policy to charge off these loans to SG&A expenses in the accompanying consolidated statements of income in the quarter when it is deemed uncollectible. Recoveries of impaired loans are recorded as a reduction of SG&A expenses in the quarter received. The Company assesses the collectibility of its senior notes receivable by comparing the market value of the underlying assets to the carrying value of the outstanding notes. In addition, the Company evaluates the property’s operating performance, the borrower’s compliance with the terms of the loan and franchise agreements, and all related personal guarantees that have been provided by the borrower. In addition, for properties under development, the Company evaluates the progress of development as compared to the project's development schedule and cost budget. For subordinated or unsecured receivables, the Company assesses the property’s operating performance, the subordinated equity available to the Company, the borrower’s compliance with the terms of loan and franchise agreements, and the related personal guarantees that have been provided by the borrower. The Company considers loans to be past due and in default when payments are not made when due. Although the Company considers loans to be in default if payments are not received on the due date, the Company does not suspend the accrual of interest until those payments are more than 30 days past due. The Company applies payments received for loans on non-accrual status first to interest and then principal. The Company does not resume interest accrual until all delinquent payments are received. The Company determined that approximately $0.8 million of its mezzanine and other notes receivable were impaired at each of the years ended December 31, 2015 and 2014 . The Company recorded an allowance for credit losses on these impaired loans of $0.8 million for each of the years ended December 31, 2015 and 2014 . For the years ended December 31, 2015 and 2014 , the average mezzanine and other notes receivable on non-accrual status was approximately $0.8 million and $11.5 million , respectively. The Company recognized approximately $33 thousand and $0.2 million of interest income on impaired loans during the years ended December 31, 2015 and 2014 , respectively, on the cash basis. The Company provided loan reserves on non-impaired loans totaling $1.4 million and $1.5 million at December 31, 2015 and 2014 , respectively. Past due balances of mezzanine and other notes receivable by credit quality indicators are as follows: 30-89 days Past Due > 90 days Past Due Total Past Due Current Total Mezzanine and Other Notes Receivables As of December 31, 2015 (in thousands) Senior $ — $ — $ — $ 40,388 $ 40,388 Subordinated — — — 6,197 6,197 Unsecured — — — 3,526 3,526 $ — $ — $ — $ 50,111 $ 50,111 As of December 31, 2014 Senior $ — $ — $ — $ 10,152 $ 10,152 Subordinated — — — 3,863 3,863 Unsecured — 47 47 3,948 3,995 $ — $ 47 $ 47 $ 17,963 $ 18,010 Significant Collection Activity On December 2, 2011, the Company acquired an $11.5 million first mortgage, held on a franchisee hotel asset, from a financial institution for $7.9 million . At the time of acquisition, the Company determined that it would be unable to collect all contractually required payments under the original mortgage terms. The contractually required payments receivable, including principal and interest, under the terms of the acquired mortgage totaled $12.0 million . The Company expected to collect $9.7 million of these contractually required payments. No prepayments were considered in the determination of contractual cash flows and cash flows expected to be collected. During the year ended December 31, 2014, the borrower repaid the Company an amount equal to its original loan acquisition cost of $7.9 million and the Company does not expect to receive further payments. On December 30, 2014, the Company recovered a portion of a loan previously determined to be impaired. The impaired loan totaled $9.6 million with a corresponding allowance of $7.4 million for a net carrying amount of $2.2 million . The Company recovered this impaired loan through acquisition of the underlying collateral of the promissory note. The Company accounted for the transaction as a business combination and the fair value of the assets and liabilities acquired were determined utilizing non-recurring fair value measures such as comparable market transactions, replacement cost and discounted cash flow analysis which utilized significant assumptions including market rental rates, discount rates, and market interest rates. The net fair value of the consideration received totaled $2.8 million , resulting in a bad debt recovery of $0.6 million which is recorded in selling, general and administrative expenses in the Company’s consolidated statements of income for the year ended 2014. Forgivable Notes Receivable In conjunction with brand and development programs, the Company may provide financing to franchisees for property improvements and other purposes in the form of forgivable unsecured promissory notes which bear interest at market rates. Under these promissory notes, the franchisee promises to repay the principal balance together with interest upon maturity unless certain conditions are met throughout the term of the promissory note. The principal balance and related interest are forgiven ratably over the term of the promissory note if the franchisee remains in the system in good standing. If during the term of the promissory note, the franchisee exits our franchise system or is not operating their franchise in accordance with our quality or credit standards, the Company may declare a default under the promissory note and commence collection efforts with respect to the full amount of the then-current outstanding principal and interest. In accordance with the terms of the promissory notes, the initial principal balance and related interest are ratably reduced over the term of the loan on each anniversary date until the outstanding amounts are reduced to zero as long as the franchisee remains within the franchise system and operates in accordance with our quality and brand standards. As a result, the amounts recorded as an asset on the Company's consolidated balance sheet are also ratably reduced since the amounts forgiven no longer represent probable future economic benefits to the Company. The Company records the reduction of its recorded assets through amortization and marketing and reservation expense on its consolidated statements of income. Since these forgivable promissory notes receivable are predominately forgiven ratably over the term of the promissory note rather than repaid, the Company classifies the issuance and collection of these notes receivable as operating activities in its consolidated statement of cash flows. The Company fully reserves all defaulted notes in addition to recording a reserve on the estimated uncollectible portion of the remaining notes. For those notes not in default, the Company calculates an allowance for losses and determines the ultimate collectability on these forgivable notes based on the historical default rates for those unsecured notes that are not forgiven but are required to be repaid. The Company records bad debt expense in SG&A and marketing and reservation expenses in the accompanying consolidated statements of income in the quarter when the note is deemed uncollectible. As of December 31, 2015 and 2014 , the unamortized balance of these notes totaled $44.3 million and $32.4 million , respectively. The Company recorded an allowance for credit losses on these forgivable unsecured notes receivable of $4.6 million and $3.7 million at December 31, 2015 and 2014 , respectively. At each of the years ended December 31, 2015 and 2014 , the Company had $1.2 million forgivable unsecured notes that were past due. Amortization expense included in the accompanying consolidated statements of income related to the notes was $8.2 million , $5.0 million and $4.2 million for the years ended December 31, 2015, 2014 and 2013 , respectively. A summary of the Company's notes receivable and related allowances are as follows: December 31, 2015 December 31, 2014 (in thousands) Credit Quality Indicator Forgivable Notes Receivable Mezzanine & Other Notes Receivable Total Forgivable Notes Receivable Mezzanine & Other Notes Receivable Total Senior $ — $ 40,388 $ 40,388 $ — $ 10,152 $ 10,152 Subordinated — 6,197 6,197 — 3,863 3,863 Unsecured 44,333 3,526 47,859 32,379 3,995 36,374 Total notes receivable 44,333 50,111 94,444 32,379 18,010 50,389 Allowance for losses on non-impaired loans 4,615 1,364 5,979 3,661 1,540 5,201 Allowance for losses on receivables specifically evaluated for impairment — 786 786 — 786 786 Total loan reserves 4,615 2,150 6,765 3,661 2,326 5,987 Net carrying value $ 39,718 $ 47,961 $ 87,679 $ 28,718 $ 15,684 $ 44,402 Current portion, net $ 143 $ 4,964 $ 5,107 $ 124 $ 3,837 $ 3,961 Long-term portion, net 39,575 42,997 82,572 28,594 11,847 40,441 Total $ 39,718 $ 47,961 $ 87,679 $ 28,718 $ 15,684 $ 44,402 The Company classifies notes receivable due within one year as other current assets and notes receivable with a maturity greater than one year as other assets in the Company’s consolidated balance sheets. The following table summarizes the activity related to the Company’s Forgivable Notes Receivable and Mezzanine & Other Notes Receivable allowance for losses for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 Year Ended December 31, 2014 Forgivable Notes Receivable Mezzanine & Other Notes Receivable Forgivable Notes Receivable Mezzanine & Other Notes Receivable (in thousands) Beginning balance $ 3,661 $ 2,326 $ 1,650 $ 9,896 Provisions 1,742 — 2,528 102 Recoveries (739 ) (176 ) (303 ) (875 ) Write-offs (752 ) — (305 ) (6,797 ) Other (1) 703 — 91 — Ending balance $ 4,615 $ 2,150 $ 3,661 $ 2,326 (1) Consists of default rate assumption changes and changes in foreign exchange rates |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The components of property and equipment are: December 31, 2015 2014 (in thousands) Land and land improvements $ 3,107 $ 3,107 Facilities in progress and software under development 21,089 10,408 Computer equipment and software 117,762 99,306 Buildings and leasehold improvements 37,205 37,013 Furniture, fixtures and equipment 17,158 15,326 Assets under capital lease 4,827 4,827 201,148 169,987 Less: Accumulated depreciation and amortization (112,990 ) (92,678 ) Property and equipment, at cost, net $ 88,158 $ 77,309 As facilities in progress and software development are completed and placed in service, they are transferred to appropriate property and equipment categories and depreciation begins. Interest capitalized as a cost of property and equipment totaled $0.3 million and $0.4 million for the years ended December 31, 2015 and 2014 , respectively. Unamortized capitalized software development costs at December 31, 2015 and 2014 totaled $34.7 million and $25.2 million , respectively. Amortization of software development costs for the years ended December 31, 2015, 2014 and 2013 totaled $9.6 million , $6.3 million and $3.8 million , respectively. Depreciation has been computed for financial reporting purposes using the straight-line method. A summary of the ranges of estimated useful lives upon which depreciation rates are based follows: Computer equipment and software 3-7 years Buildings and leasehold improvements 10-40 years Furniture, fixtures and equipment 3-8 years Assets under capital leases 3-8 years Depreciation expense, excluding amounts attributable to marketing and reservation activities, for the years ended December 31, 2015, 2014 and 2013 was $4.3 million , $3.1 million and $3.2 million , respectively. Accumulated amortization of capital leases, included in accumulated depreciation and amortization above, at December 31, 2015 and 2014 totaled $2.9 million and $2.0 million , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table details the carrying amount of our goodwill at December 31, 2015 and 2014 : December 31, 2015 2014 (in thousands) Goodwill $ 79,519 $ 66,005 Accumulated impairment losses (192 ) (192 ) Net carrying amount $ 79,327 $ 65,813 The following is a summary of changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 : December 31, 2014 Acquisitions (1) Foreign Exchange Impairment December 31, 2015 Franchising $ 65,813 $ — $ — $ — $ 65,813 Other — 13,682 (168 ) — 13,514 $ 65,813 $ 13,682 $ (168 ) $ — $ 79,327 December 31, 2013 Acquisitions Foreign Exchange Impairment December 31, 2014 Franchising $ 65,813 $ — $ — $ — $ 65,813 Other — — — — — $ 65,813 $ — $ — $ — $ 65,813 (1) See Footnote 27 "Acquisition" |
Franchise Rights and Other Iden
Franchise Rights and Other Identifiable Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Franchise Rights and Other Identifiable Intangibles [Abstract] | |
Franchise Rights and Other Identifiable Intangibles | Franchise Rights and Other Identifiable Intangibles The components of franchising rights and other intangible assets at December 31, 2015 and 2014 are as follows: As of December 31, 2015 As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Unamortized Intangible Assets Trademarks (1) $ 1,014 $ — $ 1,014 $ 1,014 $ — $ 1,014 Amortized Intangible Assets Franchise Rights (2) 81,169 80,685 484 81,942 79,189 2,753 Trademarks (3) 12,004 8,628 3,376 10,951 8,043 2,908 Contract Acquisition Costs (4) 5,102 203 4,899 — — — Acquired Lease Rights (5) 2,237 62 2,175 2,237 — 2,237 100,512 89,578 10,934 95,130 87,232 7,898 Total $ 101,526 $ 89,578 $ 11,948 $ 96,144 $ 87,232 $ 8,912 (1) Acquisition of the Suburban brand. The tradename is expected to generate future cash flows for an indefinite period of time. (2) Represents the purchase price assigned to long-term franchise contracts. The unamortized balance relates primarily to the acquisition of the Econo Lodge, Suburban and Choice Hotels Australia franchise rights. The franchise rights are being amortized over lives ranging from 5 to 25 years on a straight-line basis. (3) Generally amortized on a straight-line basis over a period of 8 to 40 years. (4) Customer contracts acquired in a business combination. Amortized on a straight-line basis over a period of 5 to 12 years. (5) Acquired lease rights recognized in conjunction with the acquisition of an office building. The costs are being amortized over the 36 year term of the lease in place. Amortization expense for the years ended December 31, 2015, 2014 and 2013 amounted to $3.0 million , $3.9 million and $4.0 million , respectively. The estimated annual amortization expense related to the Company’s amortizable intangible assets for each of the years ending December 31, 2016 through 2020 is as follows: Year (In millions) 2016 $ 1.4 2017 $ 1.3 2018 $ 1.1 2019 $ 1.0 2020 $ 0.9 |
Marketing And Reservation Activ
Marketing And Reservation Activities | 12 Months Ended |
Dec. 31, 2015 | |
Advances, Marketing and Reservation Activities [Abstract] | |
Marketing And Reservation Activities | Marketing and Reservation Activities The Company’s franchise agreements require the payment of franchise fees, which include marketing and reservation system fees. The Company is obligated to use the marketing and reservation system revenues it collects from the current franchisees comprising its various hotel brands to provide marketing and reservation services appropriate to support the operation of the overall system. In discharging its obligation to provide sufficient and appropriate marketing and reservation services, the Company has the right to expend funds in an amount reasonably necessary to ensure the provision of such services, whether or not such amount is currently available to the Company for reimbursement. The franchise agreements provide the Company the right to advance monies to the franchise system when the needs of the system surpass the balances currently available. As a result, expenditures by the Company in support of marketing and reservation services in excess of available revenues are deferred and recorded as an asset in the Company’s financial statements. Conversely, cumulative marketing and reservation system revenues not expended are deferred and recorded as a liability in the financial statements and are carried over to the next fiscal year and expended in accordance with the franchise agreements or utilized to reimburse the Company for prior year advances. Under the terms of these agreements, the Company has the contractually enforceable right to assess and collect from its current franchisees, fees sufficient to pay for the marketing and reservation services the Company has procured for the benefit of the franchise system, including fees to reimburse the Company for past services rendered. The Company has the contractual authority to require that the franchisees in the system at any given point repay any deficits related to marketing and reservation activities. The Company’s current franchisees are contractually obligated to pay any assessment the Company imposes on its franchisees to obtain reimbursement of such deficit regardless of whether those constituents continue to generate gross room revenue and whether or not they joined the system following the deficit's occurrence. At December 31, 2015 and 2014 , the Company billed cumulative marketing and reservation system fees in excess of expenses incurred totaling $30.7 million and $44.3 million , respectively, with the excess reflected as an other long-term liability in the accompanying consolidated balance sheets. Depreciation and amortization expense attributable to marketing and reservation activities for the years ended December 31, 2015, 2014 and 2013 was $23.0 million , $17.1 million and $16.0 million , respectively. Interest expense attributable to reservation activities was $27 thousand , $1.9 million and $3.7 million for the years ended December 31, 2015, 2014 and 2013 , respectively. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities The Company maintains a portfolio of investments owned through noncontrolling interests in equity method investments with one or more partners. Investments in unconsolidated entities include investments in joint ventures totaling $64.3 million and $47.1 million at December 31, 2015 and 2014 , respectively, that the Company has determined to be variable interest entities ("VIEs"). These investments relate to the Company's program to offer equity support to qualified franchisees to develop and operate Cambria hotels and suites in strategic markets. Based on an analysis of who has the power to direct the activities that most significantly impact these entities performance and who has an obligation to absorb losses of these entities or a right to receive benefits from these entities that could potentially be significant to the entity, the Company has determined that it is not the primary beneficiary of any of its VIEs. The Company based its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and the relevant development, operating management and financial agreements. Although the Company is not the primary beneficiary of these VIEs, it does exercise significant influence through its equity ownership and as a result the Company's investment in these entities is accounted for under the equity method. For the years ended December 31, 2015 and 2014 , the Company recognized losses totaling $2.0 million and $1.5 million from the investment in these entities, respectively. The Company's maximum exposure to losses related to its investments in VIEs is limited to its equity investments as well as certain guarantees as described in Note 26 "Commitments and Contingencies" of these financial statements. Equity method investment ownership interests at December 31, 2015 and 2014 are as follows: Ownership Interest Equity Method Investment December 31, 2015 December 31, 2014 Main Street WP Hotel Associates, LLC 50 % 50 % FBC-CHI Hotels LLC 40 % 40 % CS Hotel 30W46th, LLC 25 % 25 % CS Brickell, LLC 50 % 50 % CHH Plano, LLC — % 50 % CS Maple Grove LLC 50 % 50 % CS Hotel West Orange, LLC 50 % 50 % Hotel JV Services, LLC* 16 % 16 % City Market Hotel Development LLC 43 % 43 % CS at Phoenix, LLC 50 % 50 % CS Woodlands, LLC 50 % 50 % Choice Hotels Canada, Inc.* 50 % 50 % *Non-variable interest entity investments The following tables present summarized financial information for all unconsolidated ventures in which the Company holds an investment that is accounted for under the equity method. Year Ended December 31, 2015 2014 2013 (in thousands) Revenues $ 44,015 $ 30,608 $ 25,076 Operating income (loss) 1,196 (2,533 ) (752 ) Income from continuing operations (2,382 ) (3,616 ) (721 ) Net income (2,382 ) (4,670 ) (1,858 ) As of December 31, 2015 2014 (in thousands) Current assets $ 44,951 $ 41,783 Non-current assets 257,022 202,810 Total assets $ 301,973 $ 244,593 Current liabilities $ 22,217 $ 17,823 Non-current liabilities 104,344 98,535 Total liabilities $ 126,561 $ 116,358 Transactions with Unconsolidated Joint Ventures In December 2012, the Company entered into a $19.5 million promissory note with a development company which is a member in one of the Company's unconsolidated joint ventures which is engaged in the construction of a Cambria hotel and suites of which the Company is also a member. The proceeds from the promissory note were utilized to partially finance the construction of the Cambria hotel and suites by the joint venture. The promissory note matures in two tranches with $9.5 million of the promissory note maturing during the year ended December 31, 2013 and the remaining $10.0 million maturing on the fifth anniversary date of the promissory note. The promissory note bears interest at a fixed rate which increased from 6% to 8% after the completion of the hotel construction in November 2015. Interest was payable quarterly during the hotel construction and monthly , thereafter. During the year ended December 31, 2013, the Company was repaid the first tranche of the promissory note or $9.5 million . In July 2014, the Company sold a parcel of land to a development company which is a member in one of the Company's unconsolidated joint ventures for $6.5 million in exchange for cash and an equity investment in the development joint venture. No gain or loss was recognized on the sale. The development company is an unconsolidated limited liability company whose sole business and purpose is to develop and operate Cambria hotel & suites hotels. In May 2015, the Company entered into a $4.0 million promissory note with an individual who is a member of one of the Company’s unconsolidated joint ventures. The proceeds of the promissory note are being utilized to develop and operate a Cambria hotel & suites. The promissory note matures on April 30, 2018 and bears interest at variable rates, and is payable monthly. At December 31, 2015 , the outstanding balance of the promissory note totaled $3.0 million . In August 2015, the Company entered into a promissory note with a development company which is a member of one of the Company’s unconsolidated joint ventures. The Company has advanced $23.8 million to purchase and provide required property improvements to a Cambria hotel & suites. The Company may provide up to an additional $0.6 million , if necessary, for additional property improvements. The promissory note matures on September 6, 2023, bears interest at variable rates, and is payable monthly. The Company has entered into franchise agreements with certain of the unconsolidated joint ventures listed within Note 8. Pursuant to these franchise agreements, the Company has recorded royalty and marketing and reservation system fees of approximately $15.5 million , $15.4 million and $15.2 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The Company has recorded $1.1 million and $1.0 million as a receivable due from these joint ventures as of December 31, 2015 and 2014 , respectively. In addition, the Company has paid commissions of $0.4 million , $0.5 million , and $0.7 million for the years ended December 31, 2015, 2014 and 2013 , respectively, to an online travel agent for which the Company is a joint venture member. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Noncurrent Assets [Text Block] | Other Assets Other assets consist of the following at: December 31, 2015 2014 (in thousands) Land $ 10,206 $ 4,011 Other assets 6,701 3,452 Total $ 16,907 $ 7,463 Land represents the Company’s purchase of real estate as part of its program to incent franchise development in strategic markets for certain brands. The Company has acquired this real estate with the intent to develop the land for the eventual construction of a hotel operated under the Company's brands or contribute the land into joint ventures for the same purpose. The real estate is carried at the lower of its carrying value or its estimated fair value (based on comparable sales), less estimated costs to sell. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: December 31, 2015 2014 (in thousands) Accrued compensation and benefits $ 34,107 $ 29,975 Accrued interest 16,553 16,418 Dividends payable 11,548 11,176 Deferred rent and unamortized lease incentives 2,250 2,124 Termination benefits 600 984 Other liabilities and contingencies 5,590 3,481 Total $ 70,648 $ 64,158 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Revenue and Credits [Abstract] | |
Deferred Revenue | Deferred Revenue Deferred revenue consists of the following: December 31, 2015 2014 (in thousands) Loyalty programs $ 62,258 $ 57,757 Initial, relicensing and franchise fees 6,530 6,439 Procurement services fees 2,353 1,936 Other 446 250 Total $ 71,587 $ 66,382 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following at: December 31, 2015 2014 (in thousands) Marketing and reservation liability (see Note 7) $ 30,662 $ 44,272 Deferred rent and unamortized lease incentives 13,485 14,898 Deferred revenue 13,085 4,320 Uncertain tax positions 3,620 4,108 Other liabilities 7,731 2,306 Total $ 68,583 $ 69,904 Uncertain tax positions have been recorded for potential exposures involving tax positions that could be challenged by taxing authorities. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following at: December 31, 2015 2014 (in thousands) $400 million senior unsecured notes with an effective interest rate of 6.0% less deferred issuance costs of $5.4 million and $6.0 million at December 31, 2015 and 2014, respectively $ 394,618 $ 393,961 $250 million senior unsecured notes with an effective interest rate of 6.19%, less a discount and deferred issuance costs of $1.4 million and $1.7 million at December 31, 2015 and 2014, respectively 248,568 248,262 $350 million senior secured credit facility with an effective interest rate of 2.17%, less deferred issuance costs of $1.9 million at December 31, 2014 — 127,435 $450 million senior unsecured credit facility with an effective interest rate of 1.87%, less deferred issuance costs of $3.0 million at December 31, 2015 156,025 — Fixed rate collateralized mortgage with an effective interest rate of 4.57%, plus a fair value adjustment of $0.9 million and $1.2 million at December 31, 2015 and 2014, respectively 10,048 10,667 Economic development loans with an effective rate interest rate of 3.0% at December 31, 2015 and 2014 3,712 3,536 Capital lease obligations due 2016 with an effective interest rate of 3.18% at December 31, 2015 and 2014 430 1,149 Other notes payable 735 68 Total debt 814,136 785,078 Less current portion 1,191 12,349 Total long-term debt $ 812,945 $ 772,729 Scheduled principal maturities of debt, net of unamortized discounts, premiums and deferred issuance costs, as of December 31, 2015 were as follows: Year Ending Senior Notes Capital Lease Revolving Credit Other Notes Total (in thousands) 2016 $ — $ 594 $ — $ 761 $ 1,355 2017 — — — 652 652 2018 — — — 588 588 2019 — — — 498 498 2020 248,568 — 156,025 8,284 412,877 Thereafter 394,618 — — 3,712 398,330 Total payments 643,186 594 156,025 14,495 814,300 Less: Amount representing estimated executory costs — (159 ) — — (159 ) Less: Amounts representing interest — (5 ) — — (5 ) Net principal payments $ 643,186 $ 430 $ 156,025 $ 14,495 $ 814,136 Senior Unsecured Notes Due 2022 On June 27, 2012 , the Company issued unsecured senior notes in the principal amount of $400 million (the "2012 Senior Notes") at par, bearing a coupon of 5.75% with an effective rate of 6.0% . The 2012 Senior Notes will mature on July 1, 2022 , with interest to be paid semi-annually on January 1 st and July 1 st . The Company used the net proceeds of this offering, after deducting underwriting discounts, commissions and other offering expenses, together with borrowings under the Company's senior credit facility, to pay a special cash dividend totaling approximately $600.7 million paid to stockholders on August 23, 2012 . The Company's 2012 Senior Notes are guaranteed jointly, severally, fully and unconditionally, subject to certain customary limitations, by certain of the Company's domestic subsidiaries. Debt issuance costs incurred in connection with the 2012 Senior Notes are amortized, utilizing the effective interest method through maturity. Amortization of these costs is included in interest expense in the consolidated statements of income. The Company may redeem the 2012 Senior Notes at its option at a redemption price equal to the greater of (a) 100% of the principal amount of the notes to be redeemed, or (b) the sum of the present values of the remaining scheduled principal and interest payments from the redemption date to the date of maturity, discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 50 basis points. Senior Unsecured Notes Due 2020 On August 25, 2010 , the Company issued unsecured senior notes in the principal amount of $250 million (the "2010 Senior Notes") at a discount of $0.6 million , bearing a coupon of 5.7% with an effective rate of 6.19% . The 2010 Senior Notes will mature on August 28, 2020 , with interest to be paid semi-annually on February 28 th and August 28 th . The Company used the net proceeds from the offering, after deducting underwriting discounts and other offering expenses, to repay outstanding borrowings and for other general corporate purposes. The Company’s 2010 Senior Notes are guaranteed jointly, severally, fully and unconditionally, subject to certain customary limitations, by certain of the Company's domestic subsidiaries. Bond discounts and debt issuance costs incurred in connection with the 2010 Senior Notes are amortized on a straight-line basis, which is not materially different than the effective interest method, through maturity. Amortization of these costs is included in interest expense in the consolidated statements of income. The Company may redeem the 2010 Senior Notes at its option at a redemption price equal to the greater of (a) 100% of the principal amount of the notes to be redeemed, or (b) the sum of the present values of the remaining scheduled principal and interest payments from the redemption date to the date of maturity, discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 45 basis points. Revolving Credit Facilities On July 21, 2015 , the Company refinanced its existing $350 million senior secured credit facility, comprised of a $200 million revolving credit tranche and a $150 million term loan tranche (the "Term Loan"), by entering into a new senior unsecured revolving credit agreement ("Credit Agreement"), with Deutsche Bank AG New York Branch as administrative agent. The Credit Agreement provides for a $450 million unsecured revolving credit facility (the "New Revolver") with a final maturity date of July 21, 2020 , subject to optional one -year extensions that can be requested by the Company prior to each of the first, second and third anniversaries of the closing date of the New Revolver. The effectiveness of any such extensions is subject to the consent of the lenders under the Credit Agreement and certain customary conditions. Up to $35 million of borrowings under the New Revolver may be used for alternative currency loans and up to $15 million of borrowings under the New Revolver may be used for swing line loans. The New Revolver is unconditionally guaranteed, jointly and severally, by certain of the Company's domestic subsidiaries, which are considered restricted subsidiaries under the Credit Agreement. The subsidiary guarantors currently include all subsidiaries that guarantee the obligations under the Company's Indenture governing the terms of its 5.75% senior notes due 2022 and its 5.70% senior notes due 2020. If the Company achieves and maintains an Investment Grade Rating, as defined in the Credit Agreement, the subsidiary guarantees will, at the election of the Company, be released and the New Revolver will not be guaranteed. The Company may at any time prior to the final maturity date increase the amount of the New Revolver by up to an additional $150 million to the extent that any one or more lenders commit to being a lender for the additional amount and certain other customary conditions are met. The Company currently may elect to have borrowings under the New Revolver bear interest at a rate equal to (i) LIBOR plus a margin ranging from 135 to 175 basis points based on the Company’s total leverage ratio, or (ii) a base rate plus a margin ranging from 35 to 75 basis points based on the Company’s total leverage ratio. If the Company achieves an Investment Grade Rating, the Company may elect to use a different ratings-based pricing grid set forth in the Credit Agreement. The Credit Agreement requires the Company to pay a fee on the undrawn portion of the New Revolver, calculated on the basis of the average daily unused amount of the New Revolver multiplied by 0.20% per annum. If the Company achieves an Investment Grade Rating and it elects to use the ratings-based pricing grid set forth in the Credit Agreement, then the Company will be required to pay a fee on the total commitments under the New Revolver, calculated on the basis of the actual daily amount of the commitments under the New Revolver (regardless of usage) times a percentage per annum ranging from 0.10% to 0.25% (depending on the Company’s senior unsecured long-term debt rating). The Credit Agreement requires that the Company and its restricted subsidiaries comply with various covenants, including, with respect to restrictions on liens, incurring indebtedness, making investments and effecting mergers and/or asset sales. With respect to dividends, the Company may not declare or make any payment if there is an existing event of default or if the payment would create an event of default. In addition, if the Company’s total leverage ratio exceeds 4.0 to 1.0, the Company is generally restricted from paying aggregate dividends in excess of $50 million in any calendar year. The Credit Agreement imposes financial maintenance covenants requiring the Company to maintain a total leverage ratio of not more than 4.5 to 1.0 and a consolidated fixed charge coverage ratio of at least 2.5 to 1.0. If the Company achieves and maintains an Investment Grade Rating, the Company will not need to comply with the consolidated fixed charge coverage ratio covenant. The Credit Agreement includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations of the Company under the Credit Agreement to be immediately due and payable. At December 31, 2015 , the Company was in compliance with all financial covenants under the Credit Agreement. The proceeds of the New Revolver are expected to be used for general corporate purposes, including working capital, debt repayment, stock repurchases, dividends, investments and other permitted uses set forth in the Credit Agreement. The Company incurred debt issuance costs in connection with the New Revolver totaling approximately $3.2 million , which are included in long-term debt within the Company's consolidated balance sheets. These debt issuance costs are amortized, on a straight-line basis, which is not materially different than the effective interest method, through the maturity of the New Revolver. Amortization of these costs is included in interest expense in the consolidated statements of income. Fixed Rate Collateralized Mortgage On December 30, 2014, a court awarded the Company title to an office building as settlement for a portion of an outstanding loan receivable for which the building was pledged as collateral. In conjunction with the court award, the Company also assumed the $9.5 million mortgage on the property with a fixed interest rate of 7.26% . The mortgage, which is collateralized by the office building, requires monthly payments of principal and interest and matures in December 2020 with a a balloon payment due of $6.9 million . At the time of acquisition, the Company determined that the fixed interest rate of 7.26% exceeded market interest rates and therefore the Company increased the carrying value of the debt by $1.2 million to record the debt at fair value. The fair value adjustment is being amortized over the remaining term of the mortgage utilizing the effective interest method. Economic Development Loans The Company entered into economic development agreements with various governmental entities in conjunction with the relocation of its corporate headquarters in April 2013. In accordance with these agreements, the governmental entities agreed to advance approximately $4.4 million to the Company to offset a portion of the corporate headquarters relocation and tenant improvement costs in consideration of the employment of permanent, full-time employees within the jurisdictions. At December 31, 2015 , the Company had been advanced approximately $3.7 million pursuant to these agreements and expects to receive the remaining $0.7 million over the next several years, subject to annual appropriations by the governmental entities. These advances bear interest at a rate of 3% per annum. Repayment of the advances is contingent upon the Company achieving certain performance conditions. Performance conditions are measured annually on December 31 st and primarily relate to maintaining certain levels of employment within the various jurisdictions. If the Company fails to meet an annual performance condition, the Company may be required to repay a portion or all of the advances including accrued interest by April 30 th following the measurement date. Any outstanding advances at the expiration of the Company's ten year corporate headquarters lease in 2023 will be forgiven in full. The advances will be included in long-term debt in Company's consolidated balance sheets until the Company determines that the future performance conditions will be met over the entire term of the agreement and the Company will not be required to repay the advances. The Company accrues interest on the portion of the advances that it expects to repay. The Company was in compliance with all current performance conditions as of December 31, 2015 . |
Non-Qualified Retirement, Savin
Non-Qualified Retirement, Savings and Investment Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Non-Qualified Retirement, Savings and Investment Plans | Non-Qualified Retirement, Savings and Investment Plans The Company sponsors two non-qualified retirement savings and investment plans for certain employees and senior executives. Employee and Company contributions are maintained in separate irrevocable trusts. Legally, the assets of the trusts remain those of the Company; however, access to the trusts’ assets is severely restricted. The trusts cannot be revoked by the Company or an acquirer, but the assets are subject to the claims of the Company’s general creditors. The participants do not have the right to assign or transfer contractual rights in the trusts. In 2002, the Company adopted the Choice Hotels International, Inc. Executive Deferred Compensation Plan ("EDCP") which became effective January 1, 2003. Under the EDCP, certain executive officers may defer a portion of their salary into an irrevocable trust and invest these amounts in a selection of available diversified investment options. In 1997, the Company adopted the Choice Hotels International, Inc. Non-Qualified Retirement Savings and Investment Plan ("Non-Qualified Plan"). The Non-Qualified Plan allows certain employees who do not participate in the EDCP to defer a portion of their salary and invest these amounts in a selection of available diversified investment options. Under the EDCP and Non-Qualified Plan, (together, the "Deferred Compensation Plan"), the Company recorded current and long-term deferred compensation liabilities of $23.0 million and $24.6 million at December 31, 2015 and 2014 , respectively, related to these deferrals and credited investment return under these two deferred compensation plans. Compensation expense is recorded in SG&A expense on the Company’s consolidated statements of income based on the change in the deferred compensation obligation related to earnings credited to participants as well as changes in the fair value of diversified investments. The net increase (decrease) in compensation expense recorded in SG&A for the years ended December 31, 2015, 2014 and 2013 were $(0.2) million , $0.1 million and $2.6 million , respectively. Under the Deferred Compensation Plan, the Company has invested the employee salary deferrals in diversified long-term investments which are intended to provide investment returns that offset the earnings credited to the participants. The diversified investments held in the trusts totaled $17.8 million and $17.8 million as of December 31, 2015 and 2014 , respectively, and are recorded at their fair value, based on quoted market prices. At December 31, 2015 , the Company expects $0.2 million of the assets held in the trust to be distributed during the year ended December 31, 2016 to participants. These investments are considered trading securities and therefore the changes in the fair value of the diversified assets is included in other gains and losses in the accompanying consolidated statements of income. The Company recorded investment gains (losses) during the years ended December 31, 2015, 2014 and 2013 of $(0.5) million , $(0.4) million and $1.6 million , respectively. During 2015, all shares of the Company's common stock held in the Deferred Compensation Plan were sold and therefore, the Deferred Compensation Plan held no shares of the Company's common stock at December 31, 2015 . The Deferred Compensation Plan held shares of the Company's common stock with a market value of $1.5 million at December 31, 2014 , which were recorded as a component of shareholders' deficit. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company estimates the fair value of its financial instruments utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The following summarizes the three levels of inputs, as well as the assets that the Company values using those levels of inputs. Level 1 : Quoted prices in active markets for identical assets and liabilities. The Company’s Level 1 assets consist of marketable securities (primarily mutual funds) held in the Deferred Compensation Plan. Level 2 : Observable inputs, other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable. The Company’s Level 2 assets consist of money market funds held in the Deferred Compensation Plan and those recorded in cash and cash equivalents. Level 3 : Unobservable inputs, supported by little or no market data available, where the reporting entity is required to develop its own assumptions to determine the fair value of the instrument. The Company does not currently have any assets whose fair value was determined using Level 3 inputs. The Company's policy is to recognize transfers in and transfers out of the three levels of the fair value hierarchy as of the end of each quarterly reporting period. There were no transfers between Level 1, 2 and 3 assets during the years ended December 31, 2015 and 2014 . As of December 31, 2015 and 2014 , the Company had the following assets measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets (in thousands) December 31, 2015 Money market funds, included in cash and cash equivalents $ 50,001 $ — $ 50,001 $ — Mutual funds (1) 16,542 16,542 — — Money market funds (1) 1,307 — 1,307 — $ 67,850 $ 16,542 $ 51,308 $ — December 31, 2014 Money market funds, included in cash and cash equivalents $ 50,001 $ — $ 50,001 $ — Mutual funds (1) 16,405 16,405 — — Money market funds (1) 1,348 — 1,348 — $ 67,754 $ 16,405 $ 51,349 $ — ____________________________ (1) Included in Investments, employee benefit plans at fair value on consolidated balance sheets. Other Financial Instruments The Company believes that the fair values of its current assets and current liabilities approximate their reported carrying amounts due to the short-term nature of these items. In addition, the interest rates of the Company’s Credit Facility adjust frequently based on current market rates; accordingly its carrying amount approximates fair value. The Company estimates the fair value of notes receivable which approximate their carrying value, utilizing an analysis of future cash flows and credit worthiness for similar types of arrangements. Based upon the availability of market data, the notes receivable have been classified as Level 3 inputs. The primary sensitivity in these calculations is based on the selection of appropriate interest and discount rates. For further information on the notes receivable see Note 3. The fair value of the Company's $250 million and $400 million senior notes are classified as Level 2 as the significant inputs are observable in an active market. At December 31, 2015 and 2014 , the $250 million senior notes had an approximate fair value of $267.7 million and $268.9 million , respectively. At December 31, 2015 and 2014 , the $400 million senior notes had an approximate fair value of $432.0 million and $437.7 million , respectively. Fair values estimated are made at a specific point in time, are subjective in nature and involve uncertainties and matters of significant judgment. Settlement of such fair value amounts may be possible and may not be a prudent management decision. |
401(k) Retirement Plan
401(k) Retirement Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Retirement Plan | 401(k) Retirement Plan The Company sponsors a 401(k) retirement plan for all eligible employees. For the years ended December 31, 2015, 2014 and 2013 , the Company recorded compensation expense of $4.9 million , $3.5 million and $3.7 million , respectively, representing matching contributions for plan participants. In accordance with the safe harbor matching provisions of the plan, the Company matches plan participant contributions in cash as bi-weekly deductions are made. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Total income from continuing operations before income taxes, classified by source of income, was as follows: Year Ended December 31, 2015 2014 2013 (in thousands) U.S. $ 151,209 $ 138,616 $ 122,517 Outside the U.S. 32,776 35,142 36,155 Income from continuing operations before income taxes $ 183,985 $ 173,758 $ 158,672 The provision for income taxes, classified by the timing and location of payment, was as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Current tax expense Federal $ 50,794 $ 67,985 $ 46,925 State 5,476 6,278 4,891 Foreign 592 1,689 1,914 Deferred tax (benefit) expense Federal (112 ) (21,398 ) (7,011 ) State (737 ) (2,116 ) (635 ) Foreign (57 ) (153 ) (762 ) Income taxes $ 55,956 $ 52,285 $ 45,322 Net deferred tax assets consisted of: December 31, 2015 2014 (in thousands) Property, equipment and intangible assets $ (8,899 ) $ (8,687 ) Accrued compensation 16,274 15,124 Accrued expenses 35,415 35,023 Foreign operations (868 ) 790 Valuation allowance on foreign deferred tax assets (153 ) (153 ) Foreign net operating losses 1,897 1,800 Valuation allowance on foreign net operating losses (1,383 ) (1,800 ) Deferred tax asset on unrecognized tax positions 1,200 1,283 Other (1,555 ) 1,026 Net deferred tax assets 41,928 44,406 Balance sheet presentation: December 31, 2015 2014 (in thousands) Non-current net deferred tax assets $ 42,434 $ 44,406 Non-current net deferred tax liabilities (506 ) — Net deferred tax assets $ 41,928 $ 44,406 As of December 31, 2015 , the Company had foreign net operating loss carryforwards of approximately $6.5 million before applying tax rates for the respective jurisdictions, subject to a valuation allowance of $4.4 million . Approximately $3.0 million of our foreign net operating losses may expire between 2019 and 2024. In addition, the Company has recorded a valuation allowance on approximately $0.5 million of foreign deferred tax assets before applying the tax rate of the respective jurisdiction. The statutory United States federal income tax rate reconciles to the effective income tax rates for continuing operations as follows: Year Ended December 31, 2015 2014 2013 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 1.7 % 1.6 % 1.6 % Benefits and taxes related to foreign operations (6.2 )% (6.2 )% (7.2 )% Unrecognized tax positions (0.2 )% (0.4 )% (0.2 )% Other 0.1 % 0.1 % (0.6 )% Effective income tax rates 30.4 % 30.1 % 28.6 % The Company's effective income tax rates from continuing operations were 30.4% and 30.1% for the years ended December 31, 2015 and 2014 , respectively. The effective tax rate for discontinued operations was 37.1% for the years ended December 31, 2014 and 2013 . The effective income tax rates for the years ended December 31, 2015 and 2014 were lower than the United States federal statutory rate of 35% primarily due to the recurring impact of foreign operations, partially offset by state income taxes. Additionally, the effective income tax rates for the years ended December 31, 2015 and 2014 were reduced by the settlement of unrecognized tax positions. As of December 31, 2015 and 2014 , the Company’s gross unrecognized tax benefits totaled $3.1 million and $3.4 million , respectively. After considering the deferred income tax accounting impact, it is expected that about $1.9 million of the total as of December 31, 2015 would favorably affect the effective tax rate if resolved in the Company’s favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: 2015 2014 2013 (in thousands) Balance, January 1 $ 3,395 $ 4,047 $ 4,415 Changes for tax positions of prior years 116 5 503 Increases for tax positions related to the current year 772 1,201 1,164 Settlements and lapsing of statutes of limitations (1,146 ) (1,858 ) (2,035 ) Balance, December 31 $ 3,137 $ 3,395 $ 4,047 It is reasonably possible that the Company’s unrecognized tax benefits could decrease within the next 12 months by as much as $3.1 million due to settlements and the expiration of applicable statutes of limitations. The practice of the Company is to recognize interest and penalties related to income tax matters in the provision for income taxes. The Company did not incur any material interest or penalties for 2015 and 2014 . The Company had $0.5 million and $0.7 million of accrued interest and penalties at December 31, 2015 and 2014 , respectively. The Company has not provided deferred United States income taxes on approximately $237.5 million of accumulated and undistributed earnings of its foreign subsidiaries. The Company's intent is for such earnings to be permanently reinvested in operations outside the United States. Determination of the deferred United States income tax liability on these earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. |
Share-Based Compensation and Ca
Share-Based Compensation and Capital Stock | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation and Capital Stock | Share-Based Compensation and Capital Stock Dividends The Company currently pays a quarterly dividend on its common stock of $0.205 per share, however the declaration of future dividends is subject to the discretion of the board of directors. During the year ended December 31, 2013 , the Company's board of directors declared quarterly cash dividends at a quarterly rate of $0.185 per share for an annual rate of $0.74 per share or $42.7 million . During the year ended December 31, 2014 , the Company maintained its quarterly dividend rate of $0.185 per share for the first three quarters of 2014. In the fourth quarter of 2014, the Company's board of directors announced an increase in the quarterly dividend rate to $0.195 per share for an annual rate of $0.75 or $43.4 million . During the year ended December 31, 2015 , the Company maintained its quarterly dividend rate of $0.195 per share for the first three quarters of 2015 . In the fourth quarter of 2015 , the Company's board of directors announced an increase in the quarterly dividend rate to $0.205 per share. As a result, annual dividends declared during the year ended December 31, 2015 were $0.79 per share or $45.1 million . In addition, during the years ended December 31, 2015, 2014 and 2013 , the Company paid previously declared but unrecorded dividends totaling $0.5 million , $0.4 million and $0.5 million , respectively, that were contingent upon the vesting of performance vested restricted units. Share-Based Compensation The Company recognizes compensation cost related to share-based payment transactions in the financial statements based on the fair value of the equity or liability instruments issued. Compensation expense related to the fair value of share-based awards is recognized over the requisite service period based on an estimate of those awards that will ultimately vest. The Company estimates the share-based compensation expense for awards that will ultimately vest at the inception of the grant. Over the life of the grant, the estimate of share-based compensation expense for awards with performance and/or service requirements is adjusted so that compensation cost is recognized only for awards that ultimately vest. The Company has stock compensation plans pursuant to which it is authorized to grant stock-based awards of up to 7.6 million shares of the Company’s common stock, of which 2.1 million shares remain available for grant as of December 31, 2015 . The Company’s policy allows the issuance of new or treasury shares to satisfy stock-based awards. Restricted stock, stock options, stock appreciation rights and performance share awards may be granted to officers, key employees and non-employee directors with contractual terms set by the Compensation and Management Development Committee of the Board of Directors. Stock Options The Company granted approximately 0.5 million , 0.7 million and 0.2 million options to certain employees of the Company at a fair value of approximately $6.2 million , $5.7 million and $1.7 million during the years ended December 31, 2015, 2014 and 2013 , respectively. The stock options granted by the Company had an exercise price equal to the market price of the Company’s common stock on the date of grant. The fair value of the options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions: 2015 2014 2013 Risk-free interest rate 1.45 % 1.56 % 0.73 % Expected volatility 23.94 % 25.01 % 38.14 % Expected life of stock option 4.6 years 4.5 years 4.5 years Dividend yield 1.23 % 1.62 % 2.01 % Requisite service period 4 years 4 years 4 years Contractual life 7 years 7 years 7 years Weighted average fair value of options granted (per option) $ 12.39 $ 8.82 $ 9.89 The expected life of the options and volatility are based on the historical data which is believed to be indicative of future exercise patterns and volatility. Historical volatility is calculated based on a period that corresponds to the expected life of the stock option. The dividend yield and the risk-free rate of return are calculated on the grant date based on the then current dividend rate and the risk-free rate for the period corresponding to the expected life of the stock option. Compensation expense related to the fair value of these awards is recognized straight-line over the requisite service period based on those awards that ultimately vest. The aggregate intrinsic value of stock options outstanding and exercisable at December 31, 2015 was $25.2 million and $20.7 million , respectively. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $10.5 million , $10.1 million and $5.2 million , respectively. The Company received $7.1 million , $10.1 million , and $8.9 million in proceeds from the exercise of 0.3 million , 0.4 million and 0.3 million employee stock options during the years ended December 31, 2015, 2014 and 2013 , respectively. The following table summarizes information about stock options outstanding at December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted Average Weighted Number Weighted $ 0.00 to $24.37 200,311 0.2 years $ 20.58 200,311 $ 20.58 $24.38 to $29.25 439,160 2.0 years $ 25.69 390,784 $ 25.53 $29.26 to $34.12 163,058 2.1 years $ 31.31 163,058 $ 31.31 $34.13 to $39.00 161,616 4.1 years $ 36.76 79,621 $ 36.76 $39.01 to $43.87 — — $ — — $ — $43.88 to $48.75 633,730 5.2 years $ 45.59 157,428 $ 45.59 $48.76 to $65.00 486,326 6.2 years $ 63.47 — $ — 2,084,201 4.0 years $ 41.36 991,202 $ 29.57 Restricted Stock The following table is a summary of activity related to restricted stock grants for the year ended December 31: 2015 2014 2013 Restricted shares granted 125,510 154,833 225,240 Weighted average grant date fair value per share $ 61.41 $ 46.81 $ 37.74 Aggregate grant date fair value ($000) $ 7,707 $ 7,248 $ 8,500 Restricted shares forfeited 19,833 23,804 40,552 Vesting service period of shares granted 12 - 48 months 12 - 48 months 12 - 48 months Fair value of shares vested ($000) $ 12,311 $ 10,280 $ 8,569 Compensation expense related to the fair value of these awards is recognized straight-line over the requisite service period based on those restricted stock grants that ultimately vest. The fair value of grants is measured by the market price of the Company’s common stock on the date of grant. Restricted stock awards generally vest ratably over the service period beginning with the first anniversary of the grant date. Awards granted to retirement eligible non-employee directors are recognized over the shorter of the requisite service period or the length of time until retirement since the terms of the grant provide that awards will vest upon retirement. Performance Vested Restricted Stock Units The Company has granted performance vested restricted stock units (“PVRSU”) to certain employees. The fair value is measured by the market price of the Company’s common stock on the date of grant. The vesting of these stock awards is contingent upon the Company achieving performance targets at the end of specified performance periods and the employees’ continued employment. The performance conditions affect the number of shares that will ultimately vest. The range of possible stock-based awards vesting is generally between 0% and 200% of the initial target. If minimum performance targets are not attained then no awards will vest under the terms of the various PVRSU agreements. Compensation expense related to these awards is recognized over the requisite period based on the Company's estimate of the achievement of the various performance targets. The Company has currently estimated that between 0% and 200% of the various award targets will be achieved. Compensation expense is recognized ratably over the requisite service period only on those PVRSUs that ultimately vest. The following table is a summary of activity related to PVRSU grants for the years ended December 31, 2015, 2014 and 2013 : 2015 2014 2013 Performance vested restricted stock units granted at target 71,006 24,678 80,184 Weighted average grant date fair value per share $ 58.12 $ 45.59 $ 39.48 Aggregate grant date fair value ($000) $ 4,127 $ 1,125 $ 3,165 Stock units forfeited 6,079 22,099 3,334 Requisite service period 36-43 months 36 months 22-38 months During the year ended December 31, 2015 , a total of 42,326 PVRSU grants vested at a grant date fair value of $1.5 million . These PVRSU grants were initially granted at a target of 38,476 units. However, since the Company achieved 110% of the targeted performance conditions contained in the stock awards granted in prior periods, an additional 3,850 shares were earned and issued. During the year ended December 31, 2014 , a total of 28,886 PVRSU grants vested at a grant date fair value of $1.4 million . These PVRSU grants were initially granted at a target of 18,635 units. However, since the Company achieved 155% of the targeted performance conditions contained in the stock awards granted in prior periods, an additional 10,251 shares were earned and issued. During the year ended December 31, 2013 a total of 39,816 PVRSU grants vested at a grant date fair value of $1.5 million . These PVRSU grants were initially granted at a target of 30,624 units. However, since the Company achieved 130% of the targeted performance conditions contained in the stock awards granted in prior periods, an additional 9,192 shares were earned and issued. During the year ended December 31, 2015, 2014 and 2013 , PVRSU grants totaling 6,079 units, 22,099 units and 3,334 units, respectively, were forfeited due to termination of employment. A summary of stock-based award activity as of December 31, 2015, 2014 and 2013 and the changes during the years are presented below: 2015 Stock Options Restricted Stock Performance Vested Options Weighted Weighted Shares Weighted Shares Weighted Outstanding at January 1, 2015 1,903,177 $ 33.03 479,556 $ 40.14 200,286 $ 38.28 Granted 498,911 $ 63.47 125,510 $ 61.41 71,006 $ 58.12 Performance-Based Leveraging* — $ — — $ — 3,850 $ 35.60 Exercised/Vested (295,037 ) $ 23.91 (200,743 ) $ 38.94 (42,326 ) $ 35.60 Expired — $ — — $ — — $ — Forfeited (22,850 ) $ 55.44 (19,833 ) $ 46.17 (6,079 ) $ 32.90 Outstanding at December 31, 2015 2,084,201 $ 41.36 4.0 years 384,490 $ 47.40 226,737 $ 45.09 Options exercisable at December 31, 2015 991,202 $ 29.57 2.3 years * PVRSU units outstanding have been increased by 3,850 units during the year ended December 31, 2015 , due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. 2014 Stock Options Restricted Stock Performance Vested Options Weighted Weighted Shares Weighted Shares Weighted Outstanding at January 1, 2014 1,661,952 $ 26.44 563,345 $ 36.64 216,342 $ 37.34 Granted 651,757 $ 45.59 154,833 $ 46.81 24,678 $ 45.59 Exercised/Vested (390,290 ) $ 25.87 (214,818 ) $ 35.91 (28,886 ) $ 41.25 Performance-Based Leveraging* — $ — — $ — 10,251 $ 41.25 Expired — $ — — $ — — $ — Forfeited (20,242 ) $ 34.33 (23,804 ) $ 38.97 (22,099 ) $ 34.77 Outstanding at December 31, 2014 1,903,177 $ 33.03 3.8 years 479,556 $ 40.14 200,286 $ 38.28 Options exercisable at December 31, 2014 995,173 $ 25.06 2.0 years * PVRSU units outstanding have been increased by 10,251 units during the year ended December 31, 2014 , due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. 2013 Stock Options Restricted Stock Performance Vested Options Weighted Weighted Shares Weighted Shares Weighted Outstanding at January 1, 2013 1,934,034 $ 25.80 606,547 $ 35.17 170,116 $ 35.56 Granted 173,413 $ 36.76 225,240 $ 37.74 80,184 $ 39.48 Performance-Based Leveraging* — $ — — $ — 9,192 $ 32.60 Exercised/Vested (347,180 ) $ 25.54 (227,890 ) $ 33.94 (39,816 ) $ 32.60 Expired (75,473 ) $ 36.99 — $ — — $ — Forfeited (22,842 ) $ 28.94 (40,552 ) $ 35.85 (3,334 ) $ 41.25 Outstanding at December 31, 2013 1,661,952 $ 26.44 3.0 years 563,345 $ 36.64 216,342 $ 37.34 Options exercisable at December 31, 2013 1,181,374 $ 24.61 2.2 years * PVRSU units outstanding have been increased by 9,192 units during the year ended December 31, 2013 , due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. The components of the Company’s pretax stock-based compensation expense and associated income tax benefits are as follows for the years ended December 31: (in millions) 2015 2014 2013 Stock options $ 3.4 $ 2.4 $ 1.8 Restricted stock 6.8 7.2 7.5 Performance vested restricted stock units 1.9 (0.2 ) 2.2 Total $ 12.1 $ 9.4 $ 11.5 Income tax benefits $ 4.5 $ 3.5 $ 4.2 During all years presented, the Company revised its estimate of the projected achievement of various performance conditions that affect the number of PVRSUs that will ultimately vest. As a result, previously recognized stock-based compensation costs related to these PVRSUs has been increased by $0.3 million for the year ended December 31, 2015 and decreased by $1.3 million and $0.3 million during the years ended December 31, 2014 and 2013 , respectively. The total unrecognized compensation costs related to stock-based awards that have not yet vested and the related weighted average amortization period over which the costs are to be recognized as of December 31, 2015 are as follows: Unrecognized Weighted (in millions) Stock options $ 8.3 2.7 years Restricted stock 11.9 2.4 years Performance vested restricted stock units 3.7 2.3 years Total $ 23.9 Share Repurchases and Redemptions The Company announced a stock repurchase program on June 25, 1998 to return excess capital to its shareholders. Treasury stock activity is recorded at cost in the accompanying consolidated financial statements. During the year ended December 31, 2015 , the Company repurchased 1.3 million of its common stock under the repurchase program at a total cost of $66.4 million . During the year ended December 31, 2014 , the Company repurchased 1.4 million of its common stock under the repurchase program at a total cost of $72.6 million . These shares were purchased from family members of the Company's largest shareholder. There were no share repurchases during the year ended December 31, 2013. Through December 31, 2015 , the Company repurchased 48.1 million shares of its common stock (including 33.0 million prior to the two -for-one stock split effected in October 2005) under the share repurchase program at a total cost of $1.2 billion . During 2015 , the Company redeemed 106,405 shares of common stock at a total cost of $6.4 million from employees to satisfy the option price and minimum tax-withholding requirements related to the exercising of options and vesting of performance vested restricted stock units and restricted stock grants. During 2014 and 2013 , the Company redeemed 110,579 and 103,880 shares of common stock at a total cost of $5.3 million and $4.0 million , respectively. These redemptions were outside the share repurchase program initiated in June 1998. Other Effective January 1, 2014, the Company reduced its reported number of common shares outstanding by 0.3 million shares to address a reconciling item with the Company's share transfer agent. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss is as follows: December 31, 2015 2014 2013 (in thousands) Foreign currency translation adjustments $ (4,756 ) $ (2,087 ) $ (472 ) Deferred loss on cash flow hedge (4,022 ) (4,884 ) (5,745 ) Total accumulated other comprehensive loss $ (8,778 ) $ (6,971 ) $ (6,217 ) Cash Flow Hedge In July 2010, the Company entered into an interest rate swap agreement to protect itself from an increase in the market interest rate on $250 million of 10 -year, fixed rate debt with the coupon to be set at market interest rates. The interest rate swap agreement was designated as a cash flow hedge under the guidance for derivatives and hedging. In August 2010, upon issuance of the related fixed-rate debt, the Company terminated and settled the interest rate swap agreement for a cash payment of $8.7 million . The Company recorded the effective portion of this deferred loss as a component of accumulated other comprehensive income (loss). The ineffective portion was recognized immediately as a component of earnings under interest expense in the Company’s consolidated statements of income. The effective portion of the deferred loss is being amortized over the term of the related debt as interest expense in the Company’s consolidated statements of income. The following represents the changes in accumulated other comprehensive loss, net of tax by component for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 Year Ended December 31, 2014 Loss on Cash Flow Hedge Foreign Currency Items Total Loss on Cash Flow Hedge Foreign Currency Items Total (in thousands) (in thousands) Beginning Balance $ (4,884 ) $ (2,087 ) $ (6,971 ) $ (5,745 ) $ (472 ) $ (6,217 ) Other comprehensive income (loss) before reclassification — (2,669 ) (2,669 ) — (1,615 ) (1,615 ) Amounts reclassified from accumulated other comprehensive income (loss) 862 — 862 861 — 861 Net current period other comprehensive income (loss) 862 (2,669 ) (1,807 ) 861 (1,615 ) (754 ) Ending Balance $ (4,022 ) $ (4,756 ) $ (8,778 ) $ (4,884 ) $ (2,087 ) $ (6,971 ) The amounts reclassified from other accumulated other comprehensive income (loss) during the years ended December 31, 2015 and 2014 were reclassified to the following line items in the Company's Consolidated Statements of Income. Component Amount Reclassified from Accumulated Other Comprehensive Income(Loss) Affected Line Item in the Consolidated Statement of Income Year Ended December 31, 2015 Year Ended December 31, 2014 (in thousands) Loss on cash flow hedge Interest rate contract $ 862 $ 861 Interest expense — — Tax (expense) benefit $ 862 $ 861 Net of tax |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per common share is as follows: Year Ended December 31, 2015 2014 2013 (in thousands, except per share amounts) Computation of Basic Earnings Per Share: Numerator: Net income from continuing operations $ 128,029 $ 121,473 $ 113,350 Net income from discontinued operations — 1,687 359 Net income 128,029 123,160 113,709 Income allocated to participating securities (889 ) (1,075 ) (1,127 ) Net income available to common shareholders $ 127,140 $ 122,085 $ 112,582 Denominator Weighted average common shares outstanding -- basic 56,814 57,730 57,925 Basic earnings per share -- Continuing operations $ 2.24 $ 2.08 $ 1.94 Basic earnings per share -- Discontinued operations — 0.03 — $ 2.24 $ 2.11 $ 1.94 Computation of Diluted Earnings Per Share: Numerator: Net income from continuing operations $ 128,029 $ 121,473 $ 113,350 Net income from discontinued operations — 1,687 359 Net income 128,029 123,160 113,709 Income allocated to participating securities (884 ) (1,069 ) (1,122 ) Net income available to common shareholders $ 127,145 $ 122,091 $ 112,587 Denominator: Weighted average common shares outstanding -- basic 56,814 57,730 57,925 Diluted effect of stock options and PVRSUs 459 526 410 Weighted average commons shares outstanding -- diluted 57,273 58,256 58,335 Diluted earnings per share -- Continuing operations $ 2.22 $ 2.07 $ 1.92 Diluted earnings per share -- Discontinued operations — 0.03 0.01 $ 2.22 $ 2.10 $ 1.93 The Company’s unvested restricted shares contain rights to receive non-forfeitable dividends and thus are participating securities requiring the two-class method of computing earnings per share ("EPS"). The calculation of EPS for common stock shown above excludes the income attributable to the unvested restricted share awards from the numerator and excludes the dilutive impact of those awards from the denominator. At December 31, 2015 , 2014 , and 2013 , the Company had 2.1 million , 1.9 million and 1.7 million outstanding stock options, respectively. Stock options are included in the diluted earnings per share calculation using the treasury stock method and average market prices during the period, unless the stock options would be anti-dilutive. For the year ended December 31, 2015 , the Company excluded 0.5 million of anti-dilutive stock option from the diluted earning per share calculation. For the years ended December 31, 2014 and 2013 , no anti-dilutive stock options were excluded from the diluted earnings per share calculation. PVRSUs are also included in the diluted earnings per share calculation if the performance conditions have been met at the reporting date. However, at December 31, 2015 , 2014 , and 2013 , PVRSUs totaling 178,536 , 161,810 and 197,707 respectively, were excluded from the computation since the performance conditions had not been met. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company enters into operating leases primarily for office space, office equipment and transportation vehicles. Minimum rents as defined in the Company’s lease agreements including rent escalations, rent holidays and rental concessions are recognized on the straight-line basis over the non-cancellable lease term. Payments made to or on behalf of the Company for leasehold improvement incentives are considered reductions in rental expense and are amortized on a straight-line basis over the non-cancellable lease term. Rental expense under non-cancellable operating leases was approximately $10.5 million , $10.4 million and $12.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company received sublease rental income related to real estate leased to third-parties totaling $0.3 million , $0.4 million and $0.3 million during the years ended December 31, 2015 , 2014 and 2013 . Future minimum lease payments are as follows: 2016 2017 2018 2019 2020 Thereafter Total (in thousands) Minimum lease payments $ 12,342 $ 11,670 $ 10,474 $ 9,697 $ 8,586 $ 18,183 $ 70,952 Minimum sublease rentals (231 ) (215 ) (222 ) (75 ) — — (743 ) $ 12,111 $ 11,455 $ 10,252 $ 9,622 $ 8,586 $ 18,183 $ 70,209 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements The Company’s Senior Notes due 2020 and 2022 are guaranteed jointly, severally, fully and unconditionally, subject to certain customary limitations, by certain of the Company's domestic subsidiaries. There are no legal or regulatory restrictions on the payment of dividends to Choice Hotels International, Inc. from subsidiaries that do not guarantee the Senior Notes. As a result of the guarantee arrangements, the following condensed consolidating financial statements are presented. Investments in subsidiaries are accounted for under the equity method of accounting. On July 21, 2015 , the Company refinanced its existing $350 million senior credit facility ("Old Credit Facility") by entering into a new senior unsecured revolving credit facility ("New Credit Facility"). As a result of this refinancing, certain guarantor subsidiaries under the Old Credit Facility have been released as guarantor under the New Credit Facility and the Senior Notes due 2020 and 2022. As a result the following condensed consolidating financial statements for the prior year periods have been recast to reflect the guarantors under the New Credit Facility. Choice Hotels International, Inc. Condensed Consolidating Statement of Income For the Year Ended December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated REVENUES: Royalty fees $ 280,739 $ 134,944 $ 46,055 $ (160,230 ) $ 301,508 Initial franchise and relicensing fees 23,934 — 746 — 24,680 Procurement services 26,387 — 684 — 27,071 Marketing and reservation 446,358 454,916 15,827 (428,338 ) 488,763 Other items 13,744 — 4,203 (91 ) 17,856 Total revenues 791,162 589,860 67,515 (588,659 ) 859,878 OPERATING EXPENSES: Selling, general and administrative 154,591 120,800 19,184 (160,321 ) 134,254 Marketing and reservation 464,439 437,378 15,284 (428,338 ) 488,763 Depreciation and amortization 2,405 7,595 1,542 — 11,542 Total operating expenses 621,435 565,773 36,010 (588,659 ) 634,559 Operating income 169,727 24,087 31,505 — 225,319 OTHER INCOME AND EXPENSES, NET: Interest expense 42,276 2 555 — 42,833 Equity in earnings of consolidated subsidiaries (45,155 ) 373 — 44,782 — Other items, net (957 ) 198 (740 ) — (1,499 ) Other income and expenses, net (3,836 ) 573 (185 ) 44,782 41,334 Income from continuing operations before income taxes 173,563 23,514 31,690 (44,782 ) 183,985 Income taxes 45,534 10,351 71 — 55,956 Income from from continuing operations, net of income taxes 128,029 13,163 31,619 (44,782 ) 128,029 Income from discontinued operations, net of income taxes — — — — — Net income $ 128,029 $ 13,163 $ 31,619 $ (44,782 ) $ 128,029 Choice Hotels International, Inc. Condensed Consolidating Statement of Income For the Year Ended December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated REVENUES: Royalty fees $ 262,540 $ 121,295 $ 44,357 $ (140,654 ) $ 287,538 Initial franchise and relicensing fees 18,753 — 728 — 19,481 Procurement services 22,959 23 837 — 23,819 Marketing and reservation 367,726 369,359 18,783 (343,249 ) 412,619 Other items 13,758 16 739 — 14,513 Total revenues 685,736 490,693 65,444 (483,903 ) 757,970 OPERATING EXPENSES: Selling, general and administrative 137,759 110,504 13,809 (140,654 ) 121,418 Marketing and reservation 383,584 354,342 17,942 (343,249 ) 412,619 Depreciation and amortization 3,038 5,679 648 — 9,365 Total operating expenses 524,381 470,525 32,399 (483,903 ) 543,402 Operating income 161,355 20,168 33,045 — 214,568 OTHER INCOME AND EXPENSES, NET: Interest expense 41,454 3 29 — 41,486 Equity in earnings of consolidated subsidiaries (45,426 ) (765 ) — 46,191 — Other items, net (1,465 ) 567 222 — (676 ) Other income and expenses, net (5,437 ) (195 ) 251 46,191 40,810 Income from continuing operations before income taxes 166,792 20,363 32,794 (46,191 ) 173,758 Income taxes 43,632 7,922 731 — 52,285 Income from continuing operations, net of income taxes 123,160 12,441 32,063 (46,191 ) 121,473 Income from discontinued operations, net of income taxes — — 1,687 — 1,687 Net income $ 123,160 $ 12,441 $ 33,750 $ (46,191 ) $ 123,160 Choice Hotels International, Inc. Condensed Consolidating Statement of Income For the Year Ended December 31, 2013 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Eliminations Consolidated REVENUES: Royalty fees $ 243,272 $ 112,215 $ 43,967 $ (131,642 ) $ 267,812 Initial franchise and relicensing fees 17,432 — 1,254 — 18,686 Procurement services 19,864 — 804 — 20,668 Marketing and reservation 362,459 350,134 19,327 (324,287 ) 407,633 Other items 8,834 — 1,017 — 9,851 Total revenues 651,861 462,349 66,369 (455,929 ) 724,650 OPERATING EXPENSES: Selling, general and administrative 128,966 100,821 13,568 (131,642 ) 111,713 Marketing and reservation 377,884 336,498 17,538 (324,287 ) 407,633 Depreciation and amortization 3,100 5,087 869 — 9,056 Total operating expenses 509,950 442,406 31,975 (455,929 ) 528,402 Operating income 141,911 19,943 34,394 — 196,248 OTHER INCOME AND EXPENSES, NET: Interest expense 42,418 113 6 — 42,537 Equity in earnings of consolidated subsidiaries (47,362 ) (288 ) — 47,650 — Other items, net (2,406 ) (1,532 ) (1,023 ) — (4,961 ) Other income and expenses, net (7,350 ) (1,707 ) (1,017 ) 47,650 37,576 Income from continuing operations before income taxes 149,261 21,650 35,411 (47,650 ) 158,672 Income taxes 35,552 8,897 873 — 45,322 Income from continuing operations, net of income taxes 113,709 12,753 34,538 (47,650 ) 113,350 Income from discontinued operations, net of income taxes — — 359 — 359 Net income $ 113,709 $ 12,753 $ 34,897 $ (47,650 ) $ 113,709 Choice Hotels International, Inc. Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net income $ 128,029 $ 13,163 $ 31,619 $ (44,782 ) $ 128,029 Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge 862 — — — 862 Foreign currency translation adjustment (2,669 ) — (2,669 ) 2,669 (2,669 ) Other comprehensive income (loss), net of tax (1,807 ) — (2,669 ) 2,669 (1,807 ) Comprehensive income $ 126,222 $ 13,163 $ 28,950 $ (42,113 ) $ 126,222 Choice Hotels International, Inc. Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net income $ 123,160 $ 12,441 $ 33,750 $ (46,191 ) $ 123,160 Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge 861 — — — 861 Foreign currency translation adjustment (1,615 ) — (1,615 ) 1,615 (1,615 ) Other comprehensive income (loss), net of tax (754 ) — (1,615 ) 1,615 (754 ) Comprehensive income $ 122,406 $ 12,441 $ 32,135 $ (44,576 ) $ 122,406 Choice Hotels International, Inc. Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2013 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net income $ 113,709 $ 12,753 $ 34,897 $ (47,650 ) $ 113,709 Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge 862 — — — 862 Foreign currency translation adjustment (2,863 ) — (2,863 ) 2,863 (2,863 ) Other comprehensive income (loss), net of tax (2,001 ) — (2,863 ) 2,863 (2,001 ) Comprehensive income $ 111,708 $ 12,753 $ 32,034 $ (44,787 ) $ 111,708 Choice Hotels International, Inc. Condensed Consolidating Balance Sheet As of December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 13,529 $ 19 $ 179,893 $ — $ 193,441 Receivables, net 79,381 1,132 8,992 (153 ) 89,352 Other current assets 19,029 14,176 5,331 (10,376 ) 28,160 Total current assets 111,939 15,327 194,216 (10,529 ) 310,953 Property and equipment, at cost, net 37,857 33,575 16,726 — 88,158 Goodwill 60,620 5,193 13,514 — 79,327 Franchise rights and other identifiable intangibles, net 2,965 1,013 7,970 — 11,948 Notes receivable, net of allowances 18,866 38,957 24,749 — 82,572 Investments, employee benefit plans, at fair value — 17,674 — — 17,674 Investments in affiliates 473,448 37,182 — (510,630 ) — Advances to affiliates 17,144 212,773 7,789 (237,706 ) — Deferred income taxes 10,664 33,936 — (2,166 ) 42,434 Other assets 319 45,383 38,348 (106 ) 83,944 Total assets $ 733,822 $ 441,013 $ 303,312 $ (761,137 ) $ 717,010 LIABILITIES AND SHAREHOLDERS’ DEFICIT Accounts payable $ 12,359 $ 48,238 $ 3,987 $ (153 ) $ 64,431 Accrued expenses and other current liabilities 29,099 45,601 6,378 (10,271 ) 70,807 Deferred revenue 8,749 61,890 1,053 (105 ) 71,587 Current portion of long-term debt — 430 761 — 1,191 Total current liabilities 50,207 156,159 12,179 (10,529 ) 208,016 Long-term debt 799,212 3,712 10,021 — 812,945 Deferred compensation & retirement plan obligations — 22,849 10 — 22,859 Advances from affiliates 235,629 257 1,820 (237,706 ) — Other liabilities 44,673 15,755 10,933 (2,272 ) 69,089 Total liabilities 1,129,721 198,732 34,963 (250,507 ) 1,112,909 Total shareholders’ (deficit) equity (395,899 ) 242,281 268,349 (510,630 ) (395,899 ) Total liabilities and shareholders’ deficit $ 733,822 $ 441,013 $ 303,312 $ (761,137 ) $ 717,010 Choice Hotels International, Inc. Condensed Consolidating Balance Sheet As of December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 25,290 $ 25 $ 189,564 $ — $ 214,879 Receivables, net 82,195 1,194 8,292 — 91,681 Other current assets 21,035 12,318 772 (15,256 ) 18,869 Total current assets 128,520 13,537 198,628 (15,256 ) 325,429 Property and equipment, at cost, net 25,300 37,675 14,334 — 77,309 Goodwill 60,620 5,193 — — 65,813 Franchise rights and other identifiable intangibles, net 4,380 1,479 3,053 — 8,912 Notes receivable, net of allowances 11,847 27,895 699 — 40,441 Investments, employee benefit plans, at fair value — 17,539 — — 17,539 Investments in affiliates 424,600 39,231 — (463,831 ) — Advances to affiliates 15,670 213,303 20,341 (249,314 ) — Deferred income taxes 11,410 31,696 1,300 — 44,406 Other assets — 23,891 34,177 — 58,068 Total assets $ 682,347 $ 411,439 $ 272,532 $ (728,401 ) $ 637,917 LIABILITIES AND SHAREHOLDERS’ DEFICIT Accounts payable $ 15,588 $ 37,924 $ 3,612 $ — $ 57,124 Accrued expenses and other current liabilities 28,719 48,127 2,653 (15,256 ) 64,243 Deferred revenue 8,467 57,339 576 — 66,382 Current portion of long-term debt 11,250 718 381 — 12,349 Total current liabilities 64,024 144,108 7,222 (15,256 ) 200,098 Long-term debt 758,407 3,966 10,356 — 772,729 Deferred compensation & retirement plan obligations — 23,978 9 — 23,987 Advances from affiliates 237,973 344 10,997 (249,314 ) — Other liabilities 50,744 16,116 3,044 — 69,904 Total liabilities 1,111,148 188,512 31,628 (264,570 ) 1,066,718 Total shareholders’ (deficit) equity (428,801 ) 222,927 240,904 (463,831 ) (428,801 ) Total liabilities and shareholders’ deficit $ 682,347 $ 411,439 $ 272,532 $ (728,401 ) $ 637,917 Choice Hotels International, Inc. Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net cash provided by operating activities $ 100,643 $ 18,719 $ 41,167 $ (657 ) $ 159,872 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment (20,242 ) (6,952 ) (571 ) — (27,765 ) Acquisitions, net of cash acquired — — (13,269 ) — (13,269 ) Proceeds from sale of assets 93 4,661 1,593 — 6,347 Contributions to equity method investments — (22,205 ) (1,532 ) — (23,737 ) Distributions from equity method investments — — 518 — 518 Issuance of mezzanine and other notes receivable (12,753 ) — (24,131 ) — (36,884 ) Collections of mezzanine and other notes receivable 4,849 — — — 4,849 Purchases of investments, employee benefit plans — (3,220 ) — — (3,220 ) Proceeds from sales of investments, employee benefit plans — 3,170 — — 3,170 Advances to and investments in affiliates — (9,418 ) — 9,418 — Divestment in affiliates — 10,735 — (10,735 ) — Other items, net (889 ) (49 ) (8,881 ) — (9,819 ) Net cash used in investing activities (28,942 ) (23,278 ) (46,273 ) (1,317 ) (99,810 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) pursuant to revolving credit facilities 159,000 — (133 ) — 158,867 Principal payments on long-term debt (129,374 ) (718 ) (409 ) — (130,501 ) Proceeds from the issuance of long-term debt — 176 — — 176 Purchase of treasury stock (72,873 ) — — — (72,873 ) Excess tax benefits from stock-based compensation 112 5,095 — — 5,207 Proceeds from exercise of stock options 7,056 — — — 7,056 Debt issuance costs (2,169 ) — — — (2,169 ) Proceeds from contributions from affiliates — — 9,418 (9,418 ) — Distributions to affiliates — — (10,735 ) 10,735 — Dividends paid (45,214 ) — (657 ) 657 (45,214 ) Net cash provided from (used in) financing activities (83,462 ) 4,553 (2,516 ) 1,974 (79,451 ) Net change in cash and cash equivalents (11,761 ) (6 ) (7,622 ) — (19,389 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (2,049 ) — (2,049 ) Cash and cash equivalents at beginning of period 25,290 25 189,564 — 214,879 Cash and cash equivalents at end of period $ 13,529 $ 19 $ 179,893 $ — $ 193,441 Choice Hotels International, Inc. Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net cash provided by operating activities $ 140,738 $ 21,099 $ 22,711 $ (657 ) $ 183,891 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment (11,234 ) (9,134 ) (578 ) — (20,946 ) Proceeds from sale of assets 27 516 15,069 — 15,612 Contributions to equity method investments — (11,390 ) (6,399 ) — (17,789 ) Issuance of mezzanine and other notes receivable (3,340 ) — — — (3,340 ) Collections of mezzanine and other notes receivable 11,289 — — — 11,289 Purchases of investments, employee benefit plans — (2,794 ) — — (2,794 ) Proceeds from sales of investments, employee benefit plans — 964 — — 964 Advances to and investments in affiliates (1,000 ) (5,578 ) — 6,578 — Divestment in affiliates — 3,426 — (3,426 ) — Other items, net (496 ) — (146 ) — (642 ) Net cash provided from (used in) investing activities (4,754 ) (23,990 ) 7,946 3,152 (17,646 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term debt (9,375 ) (701 ) (32 ) — (10,108 ) Proceeds from the issuance of long-term debt — 176 74 — 250 Purchase of treasury stock (77,972 ) — — — (77,972 ) Excess tax benefits from stock-based compensation 299 3,422 — — 3,721 Proceeds from exercise of stock options 10,098 — — — 10,098 Proceeds from contributions from affiliates — — 6,578 (6,578 ) — Distributions to affiliates — — (3,426 ) 3,426 — Dividends paid (43,529 ) — (657 ) 657 (43,529 ) Net cash provided from (used in) financing activities (120,479 ) 2,897 2,537 (2,495 ) (117,540 ) Net change in cash and cash equivalents 15,505 6 33,194 — 48,705 Effect of foreign exchange rate changes on cash and cash equivalents — — (1,621 ) — (1,621 ) Cash and cash equivalents at beginning of period 9,785 19 157,991 — 167,795 Cash and cash equivalents at end of period $ 25,290 $ 25 $ 189,564 $ — 214,879 Choice Hotels International, Inc. Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net cash provided by operating activities $ 91,745 $ 26,925 $ 36,813 $ (1,570 ) $ 153,913 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment (5,167 ) (27,863 ) (367 ) — (33,397 ) Contributions to equity method investments — (2,401 ) (3,284 ) — (5,685 ) Issuance of mezzanine and other notes receivable (1,095 ) — — — (1,095 ) Collections of mezzanine and other notes receivable 9,748 — — — 9,748 Purchases of investments, employee benefit plans — (2,676 ) — — (2,676 ) Proceeds from sales of investments, employee benefit plans — 4,168 — — 4,168 Advances to and investments in affiliates (1,000 ) (2,284 ) — 3,284 — Other items, net (485 ) — — — (485 ) Net cash provided from (used in) investing activities 2,001 (31,056 ) (3,651 ) 3,284 (29,422 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net repayments pursuant to revolving credit facilities (57,000 ) — — — (57,000 ) Principal payments on long-term debt (7,500 ) (671 ) (33 ) — (8,204 ) Proceeds from the issuance of long-term debt — 3,360 — — 3,360 Purchase of treasury stock (3,965 ) — — — (3,965 ) Excess tax benefits from stock-based compensation 19 1,441 — — 1,460 Proceeds from exercise of stock options 8,864 — — — 8,864 Proceeds from contributions from affiliates — — 3,284 (3,284 ) — Dividends paid (32,799 ) — (1,570 ) 1,570 (32,799 ) Net cash provided from (used in) financing activities (92,381 ) 4,130 1,681 (1,714 ) (88,284 ) Net change in cash and cash equivalents 1,365 (1 ) 34,843 — 36,207 Effect of foreign exchange rate changes on cash and cash equivalents — — (2,589 ) — (2,589 ) Cash and cash equivalents at beginning of period 8,420 20 125,737 — 134,177 Cash and cash equivalents at end of period $ 9,785 $ 19 $ 157,991 $ — $ 167,795 |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Segment Information Franchising: Franchising includes the Company's hotel franchising operations consisting of its eleven brands. The eleven brands are aggregated within this segment considering their similar economic characteristics, types of customers, distribution channels and regulatory business environments. Revenues from the franchising business include royalty fees, initial franchise and relicensing fees, marketing and reservation system fees, procurement services revenue and other franchising related revenue. The Company is obligated under its franchise agreements to provide marketing and reservation services appropriate for the operation of its systems. These services do not represent separate reportable segments as their operations are directly related to the Company's franchising business. The revenues received from franchisees that are used to pay for part of the Company's ongoing operations are included in franchising revenues and are offset by the related expenses paid for marketing and reservation activities to calculate franchising operating income. SkyTouch Technology: SkyTouch Technology ("SkyTouch") is a division of the Company that develops and markets cloud-based technology products to hoteliers not under franchise agreements with the Company. The Company evaluates its segments based primarily on the results of the segment without allocating corporate expenses, income taxes or indirect general and administrative expenses, which are included in the Corporate and Other column. Corporate and Other revenues includes rental income related to an office building owned by the Company, as well as revenues from a recently acquired company which provides technological solutions for vacation rental management companies. Equity in earnings or losses from franchising related joint ventures is allocated to the Company's franchising segment. As described in Note 7, certain interest expenses related to the Company's marketing and reservation activities are allocated to the franchising segment. The Company does not allocate the remaining interest expense, interest income, other gains and losses or income taxes to its segments. The following tables present the financial information for the Company's segments: Year Ended December 31, 2015 Franchising SkyTouch Technology Corporate & Other Elimination Adjustments Consolidated (in thousands) Revenues $ 855,462 $ 1,186 $ 3,230 $ — $ 859,878 Operating income (loss) 285,752 (18,971 ) (41,462 ) — 225,319 Depreciation and amortization 6,762 1,450 3,330 — 11,542 Income (loss) from continuing operations, before income taxes 284,851 (18,971 ) (81,895 ) — 183,985 Capital expenditures 28,662 1,454 4,544 — 34,660 Total assets 397,428 4,073 315,509 — 717,010 Year Ended December 31, 2014 Franchising SkyTouch Technology Corporate & Other Elimination Adjustments Consolidated (in thousands) Revenues $ 757,370 $ 600 $ — $ — $ 757,970 Operating income (loss) 273,177 (17,065 ) (41,544 ) — 214,568 Depreciation and amortization 6,125 1,007 2,233 — 9,365 Income (loss) from continuing operations, before income taxes 272,520 (17,065 ) (81,697 ) — 173,758 Capital expenditures 19,958 1,816 14,800 — 36,574 Total assets 318,306 4,197 315,414 — 637,917 Year Ended December 31, 2013 Franchising SkyTouch Technology Corporate & Other Elimination Adjustment Consolidated (in thousands) Revenues $ 724,617 $ 33 $ — $ — $ 724,650 Operating income (loss) 248,253 (9,994 ) (42,011 ) — 196,248 Depreciation and amortization 6,280 398 2,378 — 9,056 Income (loss) from continuing operations, before income taxes 248,887 (9,994 ) (80,221 ) — 158,672 Capital expenditures 12,079 2,295 19,023 — 33,397 Total assets 300,292 2,303 237,504 — 540,099 The Company conducts its international franchise operations through a combination of direct franchising and master franchising relationships. Master franchising relationships allow the use of the Company’s brands by third parties in foreign countries. Direct franchising operations are primarily conducted through wholly-owned subsidiaries. The results of the Company's international operations are included in the franchising segment. Revenues generated by foreign operations, including royalty, marketing and reservations system fees and other revenues for the years ended December 31, 2015 , 2014 and 2013 were $51.7 million , $57.6 million and $57.3 million , respectively. Long-lived assets related to international operations were $49.3 million , $4.5 million and $8.6 million as of December 31, 2015, 2014 and 2013 , respectively. All other long-lived assets of the Company are associated with domestic activities. The Company's investment in equity method investees at December 31, 2015, 2014 and 2013 was $67.0 million , $50.6 million , and $32.3 million , respectively. These investments are included as a component of total assets for the Company’s franchising segment. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with Company's Largest Shareholder Effective October 15, 1997, Choice Hotels International, Inc., which included both a franchising business and owned hotel business, separated the businesses via a spin-off into two companies: Sunburst Hospitality Corporation (referred to hereafter as “Sunburst”) and the Company. Subsequent to the spin-off, the Company’s largest shareholder retained significant ownership percentages in both Sunburst and the Company. As part of the spin-off, Sunburst and the Company entered into a strategic alliance agreement. Among other things, the strategic alliance agreement, as amended, provided for the determination of liquidated damages related to the termination of Choice branded Sunburst properties. The liquidated damage provisions extend through the life of the existing Sunburst franchise agreements. As of December 31, 2015 , Sunburst operates 9 hotels under franchise with the Company. Total franchise fees, including royalty, marketing and reservation system fees, paid by Sunburst to the Company, included in the accompanying consolidated financial statements were $2.5 million , $2.4 million and $2.6 million for the years ended December 31, 2015, 2014 and 2013 , respectively. As of December 31, 2015 and 2014 , accounts receivable included $0.2 million and $0.2 million , respectively, due from Sunburst. Through June 3, 2013, the Company maintained a Master Aircraft Lease Agreement with LP_C, LLC ("LPC"), which is owned by family members of the Company’s largest shareholder. The agreement permitted the Company to lease an aircraft owned by LPC. During the year ended December 31, 2013 , the Company incurred $0.3 million pursuant to the lease agreement. On June 3, 2013, an unrelated financial institution purchased the aircraft from LPC pursuant to a purchase agreement between LPC and the Company which the Company assigned to the financial institution. Simultaneously, the financial institution entered into an agreement with the Company to lease the aircraft. In connection with the lease of the aircraft by the Company, the Company and family members of the Company's largest shareholder entered into an agreement that allows those family members to sub-lease the aircraft from the Company from time to time for their personal use. The agreements provide for lease payments that contribute towards the fixed costs associated with the aircraft as well as reimbursement of the Company’s variable costs associated with operation of the aircraft, in compliance with, and to the extent authorized by, applicable regulatory requirements. The terms of the sub-lease agreements are consistent with the terms of sub-lease agreements that the Company has entered into with unrelated third parties for use of the aircraft. During the years ended December 31, 2015 and 2014 , the Company received $27 thousand and $0.1 million , respectively, pursuant to this arrangement. During 2013, no amounts were paid to the Company pursuant to this agreement. Through May 2013 (which was the expiration date of the Company's master lease), the Company subleased space in its corporate headquarters complex for use by a non-profit organization. Several family members of the Company's largest shareholder serve as members of the board of directors of this non-profit organization. The Company donated the entire space utilized by the non-profit organization, as a result, no rent payments were received. Upon the expiration of the Company's corporate headquarter lease, the Company provided a $0.1 million contribution to the non-profit organization to defray their costs of transitioning to new office space. The Company maintained a lease agreement on behalf of a family member of the Company’s largest shareholder for 1,950 square feet of office space located in Chevy Chase, Maryland. The lease had a 5 year term ending in 2013 with annual lease payments totaling approximately $72 thousand . In August 2012, the Company amended the terms of this lease to increase the square footage to 2,154 and extend the lease term until 2016 . Annual rent payments under the amended lease terms total approximately $84 thousand . The lease was terminated as of September 30, 2014, and a $103 thousand termination payment was made to the landlord in connection with the early termination. The Company provided the use of the entire leased space free of charge and reimbursed the family member for the taxes incurred related to the personal use of the office space. During the years ended December 31, 2014 and 2013 , the Company incurred $27 thousand and $50 thousand , respectively, pursuant to this arrangement. In December 2008, the Company's board of directors approved an arrangement with an entity controlled by the family members of the Company's largest shareholder to permit this entity to utilize services of a particular Company employee. Under the terms of the agreement, the related party is permitted to utilize up to 50% of the designated employee's overall working time and in return is required to reimburse the Company for 50% of the Company's overall costs associated with the individual's employment. This arrangement was terminated in January 2013. During the year ended December 31, 2013 , the Company received payments pursuant to this arrangement totaling $37 thousand . In December 2013, the Company's board of directors approved an arrangement with an entity controlled by the family members of the Company's largest shareholder to sublease approximately 2,200 square feet of office space located in Chevy Chase, Maryland. The lease has a month to month term, with a 90 day notice period, and annual lease payments totaling approximately $90 thousand . During each of the years ended December 31, 2015 and 2014 , the Company received approximately $90 thousand in rent payments associated with this lease. |
Transactions with Unconsolidate
Transactions with Unconsolidated Joint Ventures | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Transactions with Unconsolidated Joint Ventures | Investments in Unconsolidated Entities The Company maintains a portfolio of investments owned through noncontrolling interests in equity method investments with one or more partners. Investments in unconsolidated entities include investments in joint ventures totaling $64.3 million and $47.1 million at December 31, 2015 and 2014 , respectively, that the Company has determined to be variable interest entities ("VIEs"). These investments relate to the Company's program to offer equity support to qualified franchisees to develop and operate Cambria hotels and suites in strategic markets. Based on an analysis of who has the power to direct the activities that most significantly impact these entities performance and who has an obligation to absorb losses of these entities or a right to receive benefits from these entities that could potentially be significant to the entity, the Company has determined that it is not the primary beneficiary of any of its VIEs. The Company based its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and the relevant development, operating management and financial agreements. Although the Company is not the primary beneficiary of these VIEs, it does exercise significant influence through its equity ownership and as a result the Company's investment in these entities is accounted for under the equity method. For the years ended December 31, 2015 and 2014 , the Company recognized losses totaling $2.0 million and $1.5 million from the investment in these entities, respectively. The Company's maximum exposure to losses related to its investments in VIEs is limited to its equity investments as well as certain guarantees as described in Note 26 "Commitments and Contingencies" of these financial statements. Equity method investment ownership interests at December 31, 2015 and 2014 are as follows: Ownership Interest Equity Method Investment December 31, 2015 December 31, 2014 Main Street WP Hotel Associates, LLC 50 % 50 % FBC-CHI Hotels LLC 40 % 40 % CS Hotel 30W46th, LLC 25 % 25 % CS Brickell, LLC 50 % 50 % CHH Plano, LLC — % 50 % CS Maple Grove LLC 50 % 50 % CS Hotel West Orange, LLC 50 % 50 % Hotel JV Services, LLC* 16 % 16 % City Market Hotel Development LLC 43 % 43 % CS at Phoenix, LLC 50 % 50 % CS Woodlands, LLC 50 % 50 % Choice Hotels Canada, Inc.* 50 % 50 % *Non-variable interest entity investments The following tables present summarized financial information for all unconsolidated ventures in which the Company holds an investment that is accounted for under the equity method. Year Ended December 31, 2015 2014 2013 (in thousands) Revenues $ 44,015 $ 30,608 $ 25,076 Operating income (loss) 1,196 (2,533 ) (752 ) Income from continuing operations (2,382 ) (3,616 ) (721 ) Net income (2,382 ) (4,670 ) (1,858 ) As of December 31, 2015 2014 (in thousands) Current assets $ 44,951 $ 41,783 Non-current assets 257,022 202,810 Total assets $ 301,973 $ 244,593 Current liabilities $ 22,217 $ 17,823 Non-current liabilities 104,344 98,535 Total liabilities $ 126,561 $ 116,358 Transactions with Unconsolidated Joint Ventures In December 2012, the Company entered into a $19.5 million promissory note with a development company which is a member in one of the Company's unconsolidated joint ventures which is engaged in the construction of a Cambria hotel and suites of which the Company is also a member. The proceeds from the promissory note were utilized to partially finance the construction of the Cambria hotel and suites by the joint venture. The promissory note matures in two tranches with $9.5 million of the promissory note maturing during the year ended December 31, 2013 and the remaining $10.0 million maturing on the fifth anniversary date of the promissory note. The promissory note bears interest at a fixed rate which increased from 6% to 8% after the completion of the hotel construction in November 2015. Interest was payable quarterly during the hotel construction and monthly , thereafter. During the year ended December 31, 2013, the Company was repaid the first tranche of the promissory note or $9.5 million . In July 2014, the Company sold a parcel of land to a development company which is a member in one of the Company's unconsolidated joint ventures for $6.5 million in exchange for cash and an equity investment in the development joint venture. No gain or loss was recognized on the sale. The development company is an unconsolidated limited liability company whose sole business and purpose is to develop and operate Cambria hotel & suites hotels. In May 2015, the Company entered into a $4.0 million promissory note with an individual who is a member of one of the Company’s unconsolidated joint ventures. The proceeds of the promissory note are being utilized to develop and operate a Cambria hotel & suites. The promissory note matures on April 30, 2018 and bears interest at variable rates, and is payable monthly. At December 31, 2015 , the outstanding balance of the promissory note totaled $3.0 million . In August 2015, the Company entered into a promissory note with a development company which is a member of one of the Company’s unconsolidated joint ventures. The Company has advanced $23.8 million to purchase and provide required property improvements to a Cambria hotel & suites. The Company may provide up to an additional $0.6 million , if necessary, for additional property improvements. The promissory note matures on September 6, 2023, bears interest at variable rates, and is payable monthly. The Company has entered into franchise agreements with certain of the unconsolidated joint ventures listed within Note 8. Pursuant to these franchise agreements, the Company has recorded royalty and marketing and reservation system fees of approximately $15.5 million , $15.4 million and $15.2 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The Company has recorded $1.1 million and $1.0 million as a receivable due from these joint ventures as of December 31, 2015 and 2014 , respectively. In addition, the Company has paid commissions of $0.4 million , $0.5 million , and $0.7 million for the years ended December 31, 2015, 2014 and 2013 , respectively, to an online travel agent for which the Company is a joint venture member. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is not a party to any litigation other than litigation in the ordinary course of business. The Company's management and legal counsel do not expect that the ultimate outcome of any of its currently ongoing legal proceedings, individually or collectively, will have a material adverse effect on the Company's financial position, results of operations or cash flows. Contingencies On October 9, 2012, the Company entered into a limited payment guaranty with regards to a VIE's $18.0 million bank loan for the construction of a hotel franchised under one of the Company's brands in the United States. Under the terms of the limited guaranty, the Company has agreed to guarantee 25% of the outstanding principal balance for a maximum exposure of $4.5 million and accrued and unpaid interest, as well as any unpaid expenses incurred by the lender. The limited guaranty shall remain in effect until the maximum amount guaranteed by the Company is paid in full. In addition to the limited guaranty, the Company entered into an agreement in which the Company guarantees the completion of the construction of the hotel and an environmental indemnity agreement which indemnifies the lending institution from and against any damages relating to or arising out of possible environmental contamination issues with regards to the property. On June 30, 2015, the VIE refinanced the construction loan into a mini-permanent loan with the same lender. In connection with the refinancing, the Company entered into a limited payment guaranty on substantially the same terms as the original limited payment guaranty and reaffirmed its obligation under the environmental indemnity agreement. In addition, the completion guaranty was terminated. On November 15, 2013, the Company entered into a limited payment guaranty with regards to a VIE's $46.2 million bank loan for the construction of a hotel franchised under one of the Company's brands in the United States. Under the terms of the limited guaranty, the Company has agreed to unconditionally guarantee and become surety for the full and timely payment of the guaranteed outstanding principal balance, as well as any unpaid expenses incurred by the lender. The guarantee is limited to 25% of the outstanding principal balance of the $46.2 million loan due at any time for a maximum exposure of $11.6 million . The limited guaranty shall remain in effect until the maximum amount guaranteed by the Company is repaid in full. The maturity date of the VIE's loan is May 2017. In conjunction with this guaranty, the Company has entered into a reimbursement and guaranty agreement with certain individuals that requires them to reimburse the Company in an amount equal to 75.0% of any payments made by the Company under this limited payment guaranty. On September 4, 2015, the Company entered into a limited payment guaranty with regards to a VIE's $13.3 million bank loan for the design, development and construction of a new hotel franchised under one of the Company's brands in the United States. Under the terms of the limited guaranty, the Company has agreed to guarantee a maximum of $1.8 million of the VIE's obligations under the loan. The limited guaranty shall remain in effect until (i) the VIE's bank loan is paid in full to the lender, (ii) the maximum amount guaranteed by the Company is paid in full, or (iii) the Company, through its affiliate, ceases to be a member of the VIE. The Company believes the likelihood of having to perform under the aforementioned limited payment guarantees is remote at December 31, 2015 and December 31, 2014 . Commitments The Company has the following commitments outstanding: • The Company occasionally provides financing in the form of forgivable promissory notes or cash incentives to franchisees for property improvements, hotel development efforts and other purposes. At December 31, 2015 , the Company had commitments to extend an additional $115.0 million for these purposes provided certain conditions are met by its franchisees, of which $23.3 million is expected to be advanced in the next twelve months. • The Company has committed to make additional capital contributions totaling $2.1 million to an existing joint venture related to the construction of a hotel to be operated under the Company's Cambria brand. This commitment is expected to be funded in the next twelve months. • In August 2015, the Company provided financing to a development company to acquire and manage an existing Cambria hotel & suites from a third party. The Company has committed to provide up to an aggregate of $24.4 million for acquisition and property improvements. As of December 31, 2015 , the Company has provided $23.8 million of the total commitment. The Company may provide up to an additional $0.6 million , if necessary, for additional property improvements. The promissory note matures on September 6, 2023; bears interest at variable rates and is payable monthly. • In November 2015, the Company, provided financing to a development company to acquire and redevelop a historic office building into a Cambria hotel & suites. The Company has committed to provide up to an aggregate of $49.1 million , if necessary, for acquisition of the property and property improvements. As of December 31, 2015 , the Company advanced $6.1 million . The promissory notes mature on November 30, 2019; bear interest at variable and fixed rates and are payable monthly. In the ordinary course of business, the Company enters into numerous agreements that contain standard indemnities whereby the Company indemnifies another party for breaches of representations and warranties. Such indemnifications are granted under various agreements, including those governing (i) purchases or sales of assets or businesses, (ii) leases of real estate, (iii) licensing of trademarks, (iv) access to credit facilities, (v) issuances of debt or equity securities, and (vi) certain operating agreements. The indemnifications issued are for the benefit of the (i) buyers in sale agreements and sellers in purchase agreements, (ii) landlords in lease contracts, (iii) franchisees in licensing agreements, (iv) financial institutions in credit facility arrangements, (v) underwriters in debt or equity security issuances and (vi) parties under certain operating agreements. In addition, these parties are also generally indemnified against any third party claim resulting from the transaction that is contemplated in the underlying agreement. While some of these indemnities extend only for the duration of the underlying agreement, many survive the expiration of the term of the agreement or extend into perpetuity (unless subject to a legal statute of limitations). There are no specific limitations on the maximum potential amount of future payments that the Company could be required to make under these indemnities, nor is the Company able to develop an estimate of the maximum potential amount of future payments to be made under these indemnifications as the triggering events are not subject to predictability. With respect to certain of the aforementioned indemnities, such as indemnifications of landlords against third party claims for the use of real estate property leased by the Company, the Company maintains insurance coverage that mitigates potential liability. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Business Acquisition [Text Block] | Acquisition On August 11, 2015 , the Company acquired 100% of the voting equity interest of Maxxton Holding B.V. (“MHB”) and its wholly owned subsidiaries, a Software as a Service ("SaaS") solution for vacation rental management companies. MHB provides central reservations systems, property management systems and integrated software applications including point-of-sale and is included in our Corporate and Other in our segment presentation found in Note 23. The total consideration was $23.6 million , which consisted of cash paid, net of cash acquired, of $13.3 million , deferred purchase price payable of $6.8 million , and liabilities assumed totaling $3.5 million . The deferred purchase price is payable over 5 years . In addition, the Company has a 5 years variable compensation arrangement with MHB's former owner which is contingent on future minimum performance targets. Total expected compensation under this arrangement is estimated to be approximately $13.6 million over the 5-year term. As these amounts are contingent on achievement of certain targets and continued employment, no amounts were recorded for these future payments at the acquisition date. The transaction has been accounted for using the acquisition method of accounting and accordingly, assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The results of MHB have been consolidated with the Company since August 11, 2015 . The Company allocated the purchase price based upon a preliminary assessment of the fair value of the assets and liabilities assumed as of August 11, 2015 . The Company continues to gather information concerning the valuation of assets acquired and liabilities assumed (including identified intangible assets and their associated lives) and is in the process of reviewing the preliminary assessment with its valuation specialists and as a result the allocation is not final. The preliminary fair value of the assets and liabilities is as follows: Estimated Fair Value (in thousands) Tangible assets $ 2,674 Intangible assets 20,936 Total assets acquired 23,610 Deferred purchase price (6,813 ) Liabilities assumed (3,528 ) Cash paid, net of cash acquired $ 13,269 The purchase price was based on the projected business growth and cash flows over the next several years and indicated a value that was in excess of the current net book value of the business, resulting in the recognition of various identifiable intangible assets and goodwill as follows: Estimated Fair Value (in thousands) Estimated Useful Lives Customer contracts $ 5,165 5 to 12 years Trademarks 440 8 years Developed technology 1,649 6 years Goodwill 13,682 Indefinite life $ 20,936 The excess value recorded in goodwill is expected to be recovered through expansion into new markets and growth within the existing customer base. Goodwill is not deductible for tax purposes. The Company's pro forma results of operations for this acquisition have not been presented because the effect of this acquisition was not material to our consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In the first quarter of 2014, the Company's management approved a plan to sell the three Company-owned hotels operated under the MainStay Suites brand. The Company determined that this disposal transaction met the definition of a discontinued operation since the operations and cash flows of this component would be eliminated from the on-going operations of the Company and the Company will not have significant continuing involvement in the operations of the hotels after the disposal transaction. The operations related to these three Company-owned hotels were reported as a component of "Corporate and Other" for segment reporting purposes. The results of operations for the years ended December 31, 2015, 2014 and 2013 presented in these Consolidated Financial Statements reflect these three Company-owned hotels as discontinued operations. All prior period amounts have been recast throughout these financial statements as appropriate. Unless noted otherwise, discussion in the notes to the consolidated financial statements pertain to continuing operations. Summarized financial information related to the discontinued operations is as follows: For the Year Ended December 31, 2015 2014 2013 (in thousands) Revenues Hotel operations $ — $ 801 $ 4,774 Total revenues — 801 4,774 Operating Expenses Hotel operations — 927 3,678 Depreciation and amortization — — 526 Total operating expenses — 927 4,204 Operating income (loss) — (126 ) 570 Gain on disposal of discontinued operations — 2,807 — Income from discontinued operations before income taxes — 2,681 570 Income taxes — 994 211 Income from discontinued operations, net of income taxes $ — $ 1,687 $ 359 As of December 31, 2015 As of December 31, 2014 (in thousands) Total assets $ — $ — Accounts payable $ — $ 45 Income taxes payable — 994 Total liabilities — 1,039 Net assets of discontinued operations $ — $ (1,039 ) |
Selected Quarterly Financial Da
Selected Quarterly Financial Data - (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data - (Unaudited) | Selected Quarterly Financial Data—(Unaudited) First Second Third Fourth 2015 (1) (in thousands, except per share data) Revenues $ 175,245 $ 232,156 $ 241,526 $ 210,951 $ 859,878 Operating income $ 41,404 $ 62,917 $ 73,803 $ 47,195 $ 225,319 Income from continuing operations before income taxes $ 31,034 $ 52,879 $ 62,268 $ 37,804 $ 183,985 Income from continuing operations, net of income taxes $ 21,594 $ 35,813 $ 41,419 $ 29,203 $ 128,029 Income (loss) from discontinued operations, net of income taxes $ — $ — $ — $ — $ — Net income $ 21,594 $ 35,813 $ 41,419 $ 29,203 $ 128,029 Per basic share: Continuing Operations $ 0.38 $ 0.62 $ 0.72 $ 0.52 $ 2.24 Discontinued Operations $ — $ — $ — $ — $ — Per diluted share: Continuing operations $ 0.37 $ 0.62 $ 0.72 $ 0.51 $ 2.22 Discontinued operations $ — $ — $ — $ — $ — First Second Third Fourth 2014 (1) (in thousands, except per share data) Revenues $ 159,736 $ 197,664 $ 215,168 $ 185,402 $ 757,970 Operating income $ 41,172 $ 60,153 $ 66,986 $ 46,257 $ 214,568 Income from continuing operations before income taxes $ 31,528 $ 50,234 $ 55,958 $ 36,038 $ 173,758 Income from continuing operations, net of income taxes $ 21,469 $ 35,279 $ 39,416 $ 25,309 $ 121,473 Income (loss) from discontinued operations, net of income taxes $ 1,641 $ 121 $ (51 ) $ (24 ) $ 1,687 Net income $ 23,110 $ 35,400 $ 39,365 $ 25,285 $ 123,160 Per basic share: Continuing Operations $ 0.37 $ 0.61 $ 0.67 $ 0.44 $ 2.08 Discontinued Operations $ 0.03 $ — $ — $ — $ 0.03 Per diluted share: Continuing operations $ 0.36 $ 0.60 $ 0.67 $ 0.43 $ 2.07 Discontinued operations $ 0.03 $ — $ — $ — $ 0.03 (1) The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods . The matters which affect the comparability of the quarterly results include the following: • Seasonality: The Company’s revenues and operating income reflect the industry’s seasonality and as a result are lower in the first and fourth quarters and higher in the second and third quarters. • Investment income and losses: The Company’s net income reflects gains and losses related to the Company’s investments held in non-qualified retirement plans and are subject to market conditions. • Acquisition: On August 11, 2015, the Company acquired a business that provides SaaS solutions for vacation rental management companies (see Note 27). The results of this acquired business have been consolidated with the Company since August 11, 2015. |
Future Adoption of Accounting S
Future Adoption of Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Future Adoption of Accounting Standards | Future Adoption of Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, "Revenue From Contracts with Customers" ("ASU 2014-09"), which impacts virtually all aspects of an entity's revenue recognition. ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The guidance permits the retrospective or modified retrospective method when adopting ASU No. 2014-09 but early application is not permitted. The Company has not yet selected a transition method and is still assessing the impact that ASU 2014-09 will have on its financial statements and disclosures, but believes it could impact the timing of revenue recognition for the Company's initial franchise fees. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) ("ASU No. 2015-01"). ASU No. 2015-01 was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) ("ASU No. 2015-02"). ASU No. 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill - Internal Use Software (Subtopic 350-40) ("ASU No. 2015-05"). ASU No. 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license or should be accounted for as a service contract. The standard is effective for annual reporting periods, including interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and an entity can elect to adopt the amendment either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 11, 2016 , the Company acquired vacant land and an adjacent operating office building located in downtown Indianapolis, Indiana for $6.5 million . The land will be developed into a Cambria hotel and suites while the office building will continue to operate until sold to a third party. On February 1, 2016 , the Company acquired an open and operating office building located in Houston, Texas for $16.0 million to be later developed into a Cambria hotel and suites. On February 16, 2016 , the Company announced changes to its customer loyalty program, Choice Privileges, which alter the programs rules and regulations concerning the expiration of loyalty points. Under the policy in effect as of December 31, 2015, points expired between 24 and 36 months subsequent to a qualifying stay. Under the new forfeiture policy, points will no longer expire within a pre-determined timeframe but rather will only be forfeited if a member has an 18 month period of inactivity with the program. The Company estimates that the revision to its rules and regulations governing the program will result in an increase in the future redemption liability of approximately $21 million to $26 million . On February 27, 2016 , the Company's board of directors declared a quarterly cash dividend of $0.205 per share of common stock. The dividend is payable on April 18, 2016 to shareholders of record on April 4, 2016 . |
Schedule II-Valuation And Quali
Schedule II-Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (In thousands of dollars) Description Balance at Beginning of Period Additions/Charges to Profit & Loss Recoveries/Write offs Balance at End of Period Accounts Receivable: Year ended December 31, 2015 Allowance for Doubtful Accounts $ 10,084 $ 4,382 $ (5,748 ) $ 8,718 Year ended December 31, 2014 Allowance for Doubtful Accounts $ 12,187 $ 4,090 $ (6,193 ) $ 10,084 Year ended December 31, 2013 Allowance for Doubtful Accounts $ 11,658 $ 4,708 $ (4,179 ) $ 12,187 Notes Receivable: Year ended December 31, 2015 Allowance for Doubtful Accounts $ 5,987 $ 1,742 $ (964 ) $ 6,765 Year ended December 31, 2014 Allowance for Doubtful Accounts $ 11,546 $ 2,630 $ (8,189 ) $ 5,987 Year ended December 31, 2013 Allowance for Doubtful Accounts $ 10,550 $ 1,668 $ (672 ) $ 11,546 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements present the financial position, results of operations and cash flows of Choice Hotels International, Inc., a Delaware corporation and subsidiaries (the "Company"). The Company consolidates entities under its control, including variable interest entities where it is deemed to be the primary beneficiary. Investments in unconsolidated affiliates, including corporate joint ventures and certain other entities, in which the Company owns 50% or less and exercises significant influence over the operating and financial policies of the investee are accounted for by the equity method. All significant inter-company accounts and transactions have been eliminated in consolidation. The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, ultimate results could differ from those estimates. In the opinion of management, the accompanying consolidated financial statements include all normal and recurring adjustments that are necessary to fairly present the financial position, results of operations and cash flows of the Company. The financial statements for the year ended December 31, 2013 has been revised related to revenue recognition and other immaterial errors as disclosed in the Company's Form 10-K/A, filed with the Securities and Exchange Commission on November 3, 2014. |
Reclassifications in Consolidated Financial Statements | Reclassifications in Consolidated Financial Statements In 2015, the Company revised the presentation of its current portion of notes receivable, net of allowances and investments in unconsolidated entities in the prior year’s consolidated balance sheet to conform to the current year’s presentation with no effect on previously reported current assets, total assets, net income, cash flows or shareholder’s deficit. Specifically, these items were reclassified from other current assets and other assets to separately stated financial statement line items. |
Discontinued Operations | Discontinued Operations In the first quarter of 2014, the Company's management approved a plan to dispose of the three Company owned Mainstay Suites hotels. As a result, the Company has reported the operations related to these three hotels as discontinued operations. The Company's results of operations for the periods included in this Form 10-K have also been recast to account for these operations as discontinued. For additional information regarding discontinued operations, see Note 28, Discontinued Operations. |
Revenue Recognition | Revenue Recognition The Company enters into franchise agreements to provide franchisees with various marketing services, a centralized reservation system and limited non-exclusive rights to utilize the Company’s registered trade names and trademarks. These agreements typically have an initial term from ten to thirty years with provisions permitting franchisees or the Company to terminate the franchise agreement under certain circumstances, such as upon designated anniversaries of the agreement, before the end of the agreement term. In most instances, initial franchise and relicensing fees are recognized upon execution of the franchise agreement because the initial franchise and relicensing fees are non-refundable and the Company is not required to provide initial services to the franchisee prior to hotel opening. The initial franchise and relicensing fees related to executed franchise agreements which include incentives, such as future potential cash rebates or forgivable promissory notes, are deferred and recognized when the incentive criteria are met or the agreement is terminated, whichever occurs first. Royalty and marketing and reservation system revenues, which are typically based on a percentage of gross room revenues or the number of hotel rooms of each franchisee, are recorded when earned and realizable from the franchisee. Franchise fees based on a percentage of gross room revenues are recognized in the same period that the underlying gross room revenues are earned by the Company's franchisees. An estimate of uncollectible revenue is charged to bad debt expense and included in selling, general and administrative ("SG&A") and marketing and reservation expenses in the accompanying consolidated statements of income. The Company generates procurement services revenues from qualified vendors. Procurement services revenues are generally based on the level of goods or services purchased from qualified vendors by hotel franchise owners and hotel guests who stay in the Company’s franchised hotels or based on marketing services provided by the Company on behalf of the qualified vendors to hotel owners and guests. The Company recognizes procurement services revenues when the services are performed or the product is delivered, evidence of an arrangement exists, the fee is fixed or determinable and collectibility is reasonably assured. The Company defers the recognition of procurement services’ revenues related to upfront fees. Such upfront fees are generally recognized over a period corresponding to the Company’s estimate of the life of the arrangement. |
Marketing and Reservation Revenues and Expenses | Marketing and Reservation Revenues and Expenses The Company’s franchise agreements require the payment of certain marketing and reservation system fees, which are used exclusively by the Company for expenses associated with providing franchise services such as national marketing, operating a guest loyalty program, media advertising, central reservation systems and technology services. The Company is contractually obligated to expend the marketing and reservation system revenue it collects from franchisees in accordance with the franchise agreements; as such, no income or loss to the Company is generated. In accordance with the franchise agreements, the Company includes in marketing and reservation expenses an allocation of costs for certain activities, such as human resources, facilities, legal, accounting, etc., required to carry out marketing and reservation activities. The Company records marketing and reservation system revenues and expenses on a gross basis since the Company is the primary obligor in the arrangement, maintains the credit risk, establishes the price and nature of the marketing or reservation services and retains discretion in supplier selection. In addition, net advances to and recoveries from the franchise system for marketing and reservation activities are presented as cash flows from operating activities. Marketing and reservation system revenues not expended in the current year are deferred and recorded as a liability in the Company's balance sheet and are carried over to the next fiscal year and expended in accordance with the franchise agreements or utilized to repay previous advances. Marketing and reservation expenses incurred in excess of revenues are recorded as an asset in the Company's balance sheet, with a corresponding reduction in costs, and are similarly recovered in subsequent years. Under the terms of the franchise agreements, the Company may advance capital and incur costs as necessary for marketing and reservation activities and recover such advances through future fees. The Company evaluates the recoverability of marketing and reservation costs incurred in excess of cumulative marketing and reservation system revenues earned on a periodic basis. The Company will record a reserve when, based on current information and events, it is probable that it will be unable to collect all amounts advanced for marketing and reservation activities according to the contractual terms of the franchise agreements. These advances are considered to be unrecoverable if the expected net, undiscounted cash flows from marketing and reservation activities are less than the carrying amount of the asset. The Company believes that any credit risk associated with cumulative cost advances for marketing and reservation system activities is mitigated due to the contractual right to recover these amounts from a large geographically dispersed group of franchisees. Choice Privileges is the Company’s frequent guest incentive marketing program. Choice Privileges enables members to earn points based on their spending levels with franchisees and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by credit card companies. The points, which the Company accumulates and tracks on the members’ behalf, may be redeemed for free accommodations or other benefits. The Company provides Choice Privileges as a marketing program to franchised hotels and collects a percentage of program members’ room revenue from franchises to operate the program. Revenues are deferred in an amount equal to the estimated fair value of the future redemption obligation. The Company develops an estimate of the eventual redemption rates and point values using various actuarial methods. These judgmental factors determine the required liability attributable to outstanding points. Upon redemption of points, the Company recognizes the previously deferred revenue as well as the corresponding expense relating to the cost of the awards redeemed. Revenues in excess of the estimated future redemption obligation are recognized when earned to reimburse the Company for costs incurred to operate the program, including administrative costs, marketing, promotion, and performing member services. |
Accounts Receivable and Credit Risk | Accounts Receivable and Credit Risk Accounts receivable consist primarily of franchise and related fees due from hotel franchises and are recorded at the invoiced amount. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the existing accounts receivable. The Company determines the allowance considering historical write-off experience and a review of aged receivable balances. However, the Company considers its credit risk associated with trade receivables to be partially mitigated due to the dispersion of these receivables across a large number of geographically diverse franchisees. The Company records bad debt expense in SG&A and marketing and reservation expenses in the accompanying consolidated statements of income based on its assessment of the ultimate realizability of trade receivables considering historical collection experience and the economic environment. When the Company determines that an account is not collectible, the account is written-off to the associated allowance for doubtful accounts. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as the advertising occurs. Advertising expense was $116.9 million , $93.7 million and $84.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company includes advertising costs primarily in marketing and reservation expenses on the accompanying consolidated statements of income. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less at the date of purchase to be cash equivalents. At December 31, 2015 and 2014 , the Company had book overdrafts totaling $10.8 million and $5.4 million , respectively which are included in accounts payable in the accompanying consolidated balance sheets. These book overdrafts represent outstanding checks in excess of funds on deposit. The Company maintains cash balances in domestic banks, which, at times, may exceed the limits of amounts insured by the Federal Deposit Insurance Corporation. In addition, the Company also maintains cash balances in international banks which do not provide deposit insurance. |
Capitalization Policies | Capitalization Policies Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease term or their useful lives. Major renovations and replacements incurred during construction are capitalized. Additionally, the Company capitalizes any interest incurred during construction of property and equipment or the development of software. Upon sale or retirement of property, the cost and related accumulated depreciation are eliminated from the accounts and any related gain or loss is recognized in the accompanying consolidated statements of income. Maintenance, repairs and minor replacements are charged to expense as incurred. Costs for computer software developed for internal use are capitalized during the application development stage and depreciated using the straight-line method over the estimated useful lives of the software. Leased property meeting certain capital lease criteria is capitalized and the present value of the related lease payments is recorded as a liability. The present value of the minimum lease payments are calculated utilizing the lower of the Company’s incremental borrowing rate or the lessor’s interest rate implicit in the lease, if known by the Company. Amortization of capitalized leased assets is computed utilizing the straight-line method over either the shorter of the estimated useful life of the asset or the initial lease term and included in depreciation and amortization in the Company's consolidated statements of income. However, if the lease meets the bargain purchase or transfer of ownership criteria the asset shall be amortized in accordance with the Company’s normal depreciation policy for owned assets. |
Assets Held For Sale | Assets Held for Sale The Company considers property to be assets held for sale when all of the following criteria are met: • Management commits to a plan to sell an asset; • It is unlikely that the disposal plan will be significantly modified or discontinued; • The asset is available for immediate sale in its present condition; • Actions required to complete the sale of the asset have been initiated; • Sale of the asset is probable and the Company expects the completed sale will occur within one year; and • The asset is actively being marketed for sale at a price that is reasonable given its current market value. Upon designation as an asset held for sale, the Company records the carrying value of each asset at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and ceases recording depreciation. If at any time these criteria are no longer met, subject to certain exceptions, the assets previously classified as held for sale are reclassified as held and used and measured individually at the lower of the following: a. the carrying amount before the asset was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the asset been continuously classified as held and used; b. the fair value at the date of the subsequent decision not to sell. |
Valuation of Intangibles and Long-Lived Assets | Valuation of Intangibles and Long-Lived Assets The Company evaluates the potential impairment of property and equipment and other long-lived assets, including franchise rights and other definite-lived intangibles, whenever an event or other circumstances indicates that the Company may not be able to recover the carrying value of the asset. When indicators of impairment are present, recoverability is assessed based on net, undiscounted expected cash flows. If the net, undiscounted expected cash flows are less than the carrying amount of the assets, an impairment charge is recorded for the excess of the carrying value over the fair value of the asset. We estimate the fair value of intangibles and long lived assets primarily using undiscounted cash flow analysis. The Company did not identify any indicators of impairment of long-lived assets during the years ended December 31, 2015, 2014 and 2013 . Significant management judgment is involved in evaluating indicators of impairment and developing any required projections to test for recoverability or estimate the fair value of an asset. Furthermore, if management uses different projections or if different conditions occur in future periods, future-operating results could be materially impacted. The Company evaluates the impairment of goodwill and intangible assets with indefinite lives on an annual basis, or during the year if an event or other circumstance indicates that the Company may not be able to recover the carrying amount of the asset. In evaluating these assets for impairment, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit or the indefinite lived intangible asset is less than its carrying amount. If the conclusion is that it is not more likely than not that the fair value of the asset is less than its carrying value, then no further testing is required. If the conclusion is that it is more likely than not that the fair value of the asset is less than its carrying value, then a two-step impairment test is performed for goodwill. For indefinite-lived intangibles, the carrying value is compared to the fair value of the asset and an impairment charge is recognized for any excess. The Company may elect to forego the qualitative assessment and move directly to the two-step impairment test for goodwill and the the fair value determination for indefinite-lived intangibles. The Company determines the fair value of its reporting units and indefinite-lived intangibles using income and market methods. The Company did not record any impairment of goodwill or intangible assets with indefinite lives during the years ended December 31, 2015, 2014 and 2013 . |
Variable Interest Entities | Variable Interest Entities In accordance with the guidance for the consolidation of variable interest entities, the Company analyzes its variable interests, including loans, guarantees, and equity investments, to determine if the entity in which the Company has a variable interest is a variable interest entity. The analysis includes both quantitative and qualitative consideration. For those entities determined to be variable interests entities, a further quantitative and qualitative analysis is performed to determine if the Company will be deemed the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. The Company consolidates those entities in which it is determined to be the primary beneficiary. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities The Company evaluates an investment in a venture for impairment when circumstances indicate that the carrying value may not be recoverable, for example due to loan defaults, significant under performance relative to historical or projected operating performance, and significant negative industry or economic trends. When there is indication that a loss in value has occurred, the Company evaluates the carrying value compared to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. If the estimated fair value is less than carrying value, management uses its judgment to determine if the decline in value is other-than-temporary. In determining this, the Company considers factors including, but not limited to, the length of time and extent of the decline, loss of values as a percentage of the cost, financial condition and near-term financial projections, the Company's intent and ability to recover the lost value and current economic conditions. For declines in value that are deemed other-than-temporary, impairments are charged to earnings. |
Sales Taxes | Sales Taxes The Company presents taxes collected from customers and remitted to governmental authorities on a net basis and therefore they are excluded from revenues in the consolidated financial statements. |
Foreign Operations | Foreign Operations The United States dollar is the functional currency of the consolidated entities operating in the United States. The functional currency for the consolidated entities operating outside of the United States is generally the currency of the primary economic environment in which the entity primarily generates and expends cash. The Company translates the financial statements of consolidated entities whose functional currency is not the United States dollar into United States dollars. The Company translates assets and liabilities at the exchange rate in effect as of the financial statement date and translates income statement accounts using the weighted average exchange rate for the period. The Company includes translation adjustments from foreign exchange and the effect of exchange rate changes on inter-company transactions of a long-term investment nature as a separate component of shareholders’ deficit. The Company reports foreign currency transaction gains and losses and the effect of inter-company transactions of a short-term or trading nature in SG&A expenses on the consolidated statements of income. Foreign currency transaction losses for the years ended December 31, 2015, 2014 and 2013 were $0.5 million , $1.1 million and $0.4 million , respectively. |
Derivatives | Derivatives The Company periodically uses derivative instruments as part of its overall strategy to manage exposure to market risks associated with fluctuations in interest rates. All outstanding derivative financial instruments are recognized at their fair values as assets or liabilities. The impact on earnings from recognizing the fair values of these instruments depends on their intended use, their hedge designation and their effectiveness in offsetting changes in the fair values of the exposures they are hedging. The Company does not use derivatives for trading purposes. The effective portion of changes in fair value of derivatives designated as cash flow hedging instruments are recorded as a component of accumulated other comprehensive income (loss) and the ineffective portion is reported currently in earnings. The amounts included in accumulated other comprehensive income are reclassified into earnings in the same period during which the hedged item affects earnings. Amounts reported in earnings are classified consistent with the item being hedged. The Company formally documents all relationships between its hedging instruments and hedged items at inception, including its risk management objective and strategy for establishing various hedge relationships. Cash flows from hedging instruments are classified in the consolidated statements of cash flows consistent with the items being hedged. Hedge accounting is discontinued prospectively when (i) the derivative instrument is no longer effective in offsetting changes in fair value or cash flows of the underlying hedged item, (ii) the derivative instrument expires, is sold, terminated or exercised, or (iii) designating the derivative instrument as a hedge is no longer appropriate. The effectiveness of derivative instruments is assessed at inception and on an ongoing basis. At December 31, 2015 and 2014 , there were no outstanding derivative positions. |
Guarantees | Guarantees The Company has historically issued certain guarantees to support the growth of its brands. A liability is recognized for the fair value of such guarantees upon inception of the guarantee and upon any subsequent modification, such as renewals, when the Company remains contingently liable. The fair value of a guarantee is the estimated amount at which the liability could be settled in a current transaction between willing unrelated parties. The Company evaluates these guarantees on a quarterly basis to determine if there is a probable loss requiring recognition. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU No. 2014-08"). ASU No. 2014-08 changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU No. 2014-08 is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company adopted this ASU on January 1, 2015 and it did not have a material impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of September 30, 2015 , and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $9.5 million and $9.4 million of unamortized debt issuance costs related to the Company's outstanding borrowings (see Note 13) from other current and non-current assets to long-term debt within its consolidated balance sheets as of December 31, 2015 and 2014 , respectively. In August 2015, the FASB issued ASU No. 2015-15, " Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements " ("ASU 2015-15"). ASU 2015-15 allows an entity to defer and present debt issuance costs as an asset when there are no amounts outstanding under line-of-credit arrangements and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. Other than the aforementioned reclassification, the adoption of ASU 2015-03 did not have an impact on the Company's consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, " Simplifying the Accounting for Measurement-Period Adjustments " ("ASU 2015-16"). ASU 2015-16 requires that any adjustments to the provisional amounts of an acquisition and the effect on earnings in changes of depreciation, amortization, and other income effects from the adjustment should be recorded to the period in which the adjustment amount is determined. This standard is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this newly issued guidance during the third quarter of 2015. There was no impact to the results of operations from this adoption for the year ended December 31, 2015. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during the fourth quarter of 2015 and applied the guidance retrospectively. Accordingly, current deferred taxes were reclassified to noncurrent on the December 31, 2014 consolidated balance sheet, which increased noncurrent deferred tax assets $24.0 million . Future Adoption of Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, "Revenue From Contracts with Customers" ("ASU 2014-09"), which impacts virtually all aspects of an entity's revenue recognition. ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The guidance permits the retrospective or modified retrospective method when adopting ASU No. 2014-09 but early application is not permitted. The Company has not yet selected a transition method and is still assessing the impact that ASU 2014-09 will have on its financial statements and disclosures, but believes it could impact the timing of revenue recognition for the Company's initial franchise fees. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) ("ASU No. 2015-01"). ASU No. 2015-01 was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) ("ASU No. 2015-02"). ASU No. 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill - Internal Use Software (Subtopic 350-40) ("ASU No. 2015-05"). ASU No. 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license or should be accounted for as a service contract. The standard is effective for annual reporting periods, including interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and an entity can elect to adopt the amendment either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. |
Future Adoption of Accounting41
Future Adoption of Accounting Standards Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Future Adoption of Accounting Standards [Abstract] | |
Future Adoption of Accounting Standards | Recently Adopted Accounting Guidance In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU No. 2014-08"). ASU No. 2014-08 changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU No. 2014-08 is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company adopted this ASU on January 1, 2015 and it did not have a material impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of September 30, 2015 , and applied its provisions retrospectively. The adoption of ASU 2015-03 resulted in the reclassification of $9.5 million and $9.4 million of unamortized debt issuance costs related to the Company's outstanding borrowings (see Note 13) from other current and non-current assets to long-term debt within its consolidated balance sheets as of December 31, 2015 and 2014 , respectively. In August 2015, the FASB issued ASU No. 2015-15, " Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements " ("ASU 2015-15"). ASU 2015-15 allows an entity to defer and present debt issuance costs as an asset when there are no amounts outstanding under line-of-credit arrangements and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. Other than the aforementioned reclassification, the adoption of ASU 2015-03 did not have an impact on the Company's consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, " Simplifying the Accounting for Measurement-Period Adjustments " ("ASU 2015-16"). ASU 2015-16 requires that any adjustments to the provisional amounts of an acquisition and the effect on earnings in changes of depreciation, amortization, and other income effects from the adjustment should be recorded to the period in which the adjustment amount is determined. This standard is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in ASU 2015-16 should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company early adopted this newly issued guidance during the third quarter of 2015. There was no impact to the results of operations from this adoption for the year ended December 31, 2015. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during the fourth quarter of 2015 and applied the guidance retrospectively. Accordingly, current deferred taxes were reclassified to noncurrent on the December 31, 2014 consolidated balance sheet, which increased noncurrent deferred tax assets $24.0 million . Future Adoption of Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, "Revenue From Contracts with Customers" ("ASU 2014-09"), which impacts virtually all aspects of an entity's revenue recognition. ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The guidance permits the retrospective or modified retrospective method when adopting ASU No. 2014-09 but early application is not permitted. The Company has not yet selected a transition method and is still assessing the impact that ASU 2014-09 will have on its financial statements and disclosures, but believes it could impact the timing of revenue recognition for the Company's initial franchise fees. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) ("ASU No. 2015-01"). ASU No. 2015-01 was issued changing the requirements for reporting extraordinary and unusual items in the income statement. The update eliminates the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this newly issued guidance is not expected to have an impact to our consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) ("ASU No. 2015-02"). ASU No. 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance must be applied using one of two retrospective application methods and will be effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this newly issued guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill - Internal Use Software (Subtopic 350-40) ("ASU No. 2015-05"). ASU No. 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license or should be accounted for as a service contract. The standard is effective for annual reporting periods, including interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and an entity can elect to adopt the amendment either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The adoption of this newly issued guidance is not expected to have a material impact to our consolidated financial statements. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule Of Other Current Assets | Other current assets consist of the following at: December 31, December 31, (in thousands) Prepaid expenses $ 14,144 $ 12,280 Other current assets 3,423 1,170 Total $ 17,567 $ 13,450 |
Notes Receivable and Allowanc43
Notes Receivable and Allowance for Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts and Notes Receivable, Net [Abstract] | |
Past due balances of mezzanine and other notes receivable by credit quality indicators | Past due balances of mezzanine and other notes receivable by credit quality indicators are as follows: 30-89 days Past Due > 90 days Past Due Total Past Due Current Total Mezzanine and Other Notes Receivables As of December 31, 2015 (in thousands) Senior $ — $ — $ — $ 40,388 $ 40,388 Subordinated — — — 6,197 6,197 Unsecured — — — 3,526 3,526 $ — $ — $ — $ 50,111 $ 50,111 As of December 31, 2014 Senior $ — $ — $ — $ 10,152 $ 10,152 Subordinated — — — 3,863 3,863 Unsecured — 47 47 3,948 3,995 $ — $ 47 $ 47 $ 17,963 $ 18,010 |
Schedule of notes receivable | A summary of the Company's notes receivable and related allowances are as follows: December 31, 2015 December 31, 2014 (in thousands) Credit Quality Indicator Forgivable Notes Receivable Mezzanine & Other Notes Receivable Total Forgivable Notes Receivable Mezzanine & Other Notes Receivable Total Senior $ — $ 40,388 $ 40,388 $ — $ 10,152 $ 10,152 Subordinated — 6,197 6,197 — 3,863 3,863 Unsecured 44,333 3,526 47,859 32,379 3,995 36,374 Total notes receivable 44,333 50,111 94,444 32,379 18,010 50,389 Allowance for losses on non-impaired loans 4,615 1,364 5,979 3,661 1,540 5,201 Allowance for losses on receivables specifically evaluated for impairment — 786 786 — 786 786 Total loan reserves 4,615 2,150 6,765 3,661 2,326 5,987 Net carrying value $ 39,718 $ 47,961 $ 87,679 $ 28,718 $ 15,684 $ 44,402 Current portion, net $ 143 $ 4,964 $ 5,107 $ 124 $ 3,837 $ 3,961 Long-term portion, net 39,575 42,997 82,572 28,594 11,847 40,441 Total $ 39,718 $ 47,961 $ 87,679 $ 28,718 $ 15,684 $ 44,402 |
Summary of activity related to allowance for losses | The following table summarizes the activity related to the Company’s Forgivable Notes Receivable and Mezzanine & Other Notes Receivable allowance for losses for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 Year Ended December 31, 2014 Forgivable Notes Receivable Mezzanine & Other Notes Receivable Forgivable Notes Receivable Mezzanine & Other Notes Receivable (in thousands) Beginning balance $ 3,661 $ 2,326 $ 1,650 $ 9,896 Provisions 1,742 — 2,528 102 Recoveries (739 ) (176 ) (303 ) (875 ) Write-offs (752 ) — (305 ) (6,797 ) Other (1) 703 — 91 — Ending balance $ 4,615 $ 2,150 $ 3,661 $ 2,326 (1) Consists of default rate assumption changes and changes in foreign exchange rates |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are: December 31, 2015 2014 (in thousands) Land and land improvements $ 3,107 $ 3,107 Facilities in progress and software under development 21,089 10,408 Computer equipment and software 117,762 99,306 Buildings and leasehold improvements 37,205 37,013 Furniture, fixtures and equipment 17,158 15,326 Assets under capital lease 4,827 4,827 201,148 169,987 Less: Accumulated depreciation and amortization (112,990 ) (92,678 ) Property and equipment, at cost, net $ 88,158 $ 77,309 |
Schedule of Estimated Useful Lives | A summary of the ranges of estimated useful lives upon which depreciation rates are based follows: Computer equipment and software 3-7 years Buildings and leasehold improvements 10-40 years Furniture, fixtures and equipment 3-8 years Assets under capital leases 3-8 years |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 : December 31, 2014 Acquisitions (1) Foreign Exchange Impairment December 31, 2015 Franchising $ 65,813 $ — $ — $ — $ 65,813 Other — 13,682 (168 ) — 13,514 $ 65,813 $ 13,682 $ (168 ) $ — $ 79,327 December 31, 2013 Acquisitions Foreign Exchange Impairment December 31, 2014 Franchising $ 65,813 $ — $ — $ — $ 65,813 Other — — — — — $ 65,813 $ — $ — $ — $ 65,813 (1) See Footnote 27 "Acquisition" The following table details the carrying amount of our goodwill at December 31, 2015 and 2014 : December 31, 2015 2014 (in thousands) Goodwill $ 79,519 $ 66,005 Accumulated impairment losses (192 ) (192 ) Net carrying amount $ 79,327 $ 65,813 |
Franchise Rights and Other Id46
Franchise Rights and Other Identifiable Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Franchise Rights and Other Identifiable Intangibles [Abstract] | |
Schedule of Franchise Rights and Other Identifiable Intangible Assets | The components of franchising rights and other intangible assets at December 31, 2015 and 2014 are as follows: As of December 31, 2015 As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Unamortized Intangible Assets Trademarks (1) $ 1,014 $ — $ 1,014 $ 1,014 $ — $ 1,014 Amortized Intangible Assets Franchise Rights (2) 81,169 80,685 484 81,942 79,189 2,753 Trademarks (3) 12,004 8,628 3,376 10,951 8,043 2,908 Contract Acquisition Costs (4) 5,102 203 4,899 — — — Acquired Lease Rights (5) 2,237 62 2,175 2,237 — 2,237 100,512 89,578 10,934 95,130 87,232 7,898 Total $ 101,526 $ 89,578 $ 11,948 $ 96,144 $ 87,232 $ 8,912 (1) Acquisition of the Suburban brand. The tradename is expected to generate future cash flows for an indefinite period of time. (2) Represents the purchase price assigned to long-term franchise contracts. The unamortized balance relates primarily to the acquisition of the Econo Lodge, Suburban and Choice Hotels Australia franchise rights. The franchise rights are being amortized over lives ranging from 5 to 25 years on a straight-line basis. (3) Generally amortized on a straight-line basis over a period of 8 to 40 years. (4) Customer contracts acquired in a business combination. Amortized on a straight-line basis over a period of 5 to 12 years. (5) Acquired lease rights recognized in conjunction with the acquisition of an office building. The costs are being amortized over the 36 year term of the lease in place. |
Schedule of Intangible Assets, Estimated Annual Amortization Expense | The estimated annual amortization expense related to the Company’s amortizable intangible assets for each of the years ending December 31, 2016 through 2020 is as follows: Year (In millions) 2016 $ 1.4 2017 $ 1.3 2018 $ 1.1 2019 $ 1.0 2020 $ 0.9 |
Investments in Unconsolidated47
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investment ownership interests and financial information | Equity method investment ownership interests at December 31, 2015 and 2014 are as follows: Ownership Interest Equity Method Investment December 31, 2015 December 31, 2014 Main Street WP Hotel Associates, LLC 50 % 50 % FBC-CHI Hotels LLC 40 % 40 % CS Hotel 30W46th, LLC 25 % 25 % CS Brickell, LLC 50 % 50 % CHH Plano, LLC — % 50 % CS Maple Grove LLC 50 % 50 % CS Hotel West Orange, LLC 50 % 50 % Hotel JV Services, LLC* 16 % 16 % City Market Hotel Development LLC 43 % 43 % CS at Phoenix, LLC 50 % 50 % CS Woodlands, LLC 50 % 50 % Choice Hotels Canada, Inc.* 50 % 50 % *Non-variable interest entity investments The following tables present summarized financial information for all unconsolidated ventures in which the Company holds an investment that is accounted for under the equity method. Year Ended December 31, 2015 2014 2013 (in thousands) Revenues $ 44,015 $ 30,608 $ 25,076 Operating income (loss) 1,196 (2,533 ) (752 ) Income from continuing operations (2,382 ) (3,616 ) (721 ) Net income (2,382 ) (4,670 ) (1,858 ) As of December 31, 2015 2014 (in thousands) Current assets $ 44,951 $ 41,783 Non-current assets 257,022 202,810 Total assets $ 301,973 $ 244,593 Current liabilities $ 22,217 $ 17,823 Non-current liabilities 104,344 98,535 Total liabilities $ 126,561 $ 116,358 |
Other Assets (Table)
Other Assets (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets, Noncurrent [Abstract] | |
Components of Other Assets | Other assets consist of the following at: December 31, 2015 2014 (in thousands) Land $ 10,206 $ 4,011 Other assets 6,701 3,452 Total $ 16,907 $ 7,463 |
Accrued Expenses and Other Cu49
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses and other current liabilities consist of the following: December 31, 2015 2014 (in thousands) Accrued compensation and benefits $ 34,107 $ 29,975 Accrued interest 16,553 16,418 Dividends payable 11,548 11,176 Deferred rent and unamortized lease incentives 2,250 2,124 Termination benefits 600 984 Other liabilities and contingencies 5,590 3,481 Total $ 70,648 $ 64,158 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Revenue and Credits [Abstract] | |
Components of Deferred Revenue | Deferred revenue consists of the following: December 31, 2015 2014 (in thousands) Loyalty programs $ 62,258 $ 57,757 Initial, relicensing and franchise fees 6,530 6,439 Procurement services fees 2,353 1,936 Other 446 250 Total $ 71,587 $ 66,382 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following at: December 31, 2015 2014 (in thousands) Marketing and reservation liability (see Note 7) $ 30,662 $ 44,272 Deferred rent and unamortized lease incentives 13,485 14,898 Deferred revenue 13,085 4,320 Uncertain tax positions 3,620 4,108 Other liabilities 7,731 2,306 Total $ 68,583 $ 69,904 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | Debt consists of the following at: December 31, 2015 2014 (in thousands) $400 million senior unsecured notes with an effective interest rate of 6.0% less deferred issuance costs of $5.4 million and $6.0 million at December 31, 2015 and 2014, respectively $ 394,618 $ 393,961 $250 million senior unsecured notes with an effective interest rate of 6.19%, less a discount and deferred issuance costs of $1.4 million and $1.7 million at December 31, 2015 and 2014, respectively 248,568 248,262 $350 million senior secured credit facility with an effective interest rate of 2.17%, less deferred issuance costs of $1.9 million at December 31, 2014 — 127,435 $450 million senior unsecured credit facility with an effective interest rate of 1.87%, less deferred issuance costs of $3.0 million at December 31, 2015 156,025 — Fixed rate collateralized mortgage with an effective interest rate of 4.57%, plus a fair value adjustment of $0.9 million and $1.2 million at December 31, 2015 and 2014, respectively 10,048 10,667 Economic development loans with an effective rate interest rate of 3.0% at December 31, 2015 and 2014 3,712 3,536 Capital lease obligations due 2016 with an effective interest rate of 3.18% at December 31, 2015 and 2014 430 1,149 Other notes payable 735 68 Total debt 814,136 785,078 Less current portion 1,191 12,349 Total long-term debt $ 812,945 $ 772,729 |
Schedule of Maturities of Long-term Debt | Scheduled principal maturities of debt, net of unamortized discounts, premiums and deferred issuance costs, as of December 31, 2015 were as follows: Year Ending Senior Notes Capital Lease Revolving Credit Other Notes Total (in thousands) 2016 $ — $ 594 $ — $ 761 $ 1,355 2017 — — — 652 652 2018 — — — 588 588 2019 — — — 498 498 2020 248,568 — 156,025 8,284 412,877 Thereafter 394,618 — — 3,712 398,330 Total payments 643,186 594 156,025 14,495 814,300 Less: Amount representing estimated executory costs — (159 ) — — (159 ) Less: Amounts representing interest — (5 ) — — (5 ) Net principal payments $ 643,186 $ 430 $ 156,025 $ 14,495 $ 814,136 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets | As of December 31, 2015 and 2014 , the Company had the following assets measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Level 3 Assets (in thousands) December 31, 2015 Money market funds, included in cash and cash equivalents $ 50,001 $ — $ 50,001 $ — Mutual funds (1) 16,542 16,542 — — Money market funds (1) 1,307 — 1,307 — $ 67,850 $ 16,542 $ 51,308 $ — December 31, 2014 Money market funds, included in cash and cash equivalents $ 50,001 $ — $ 50,001 $ — Mutual funds (1) 16,405 16,405 — — Money market funds (1) 1,348 — 1,348 — $ 67,754 $ 16,405 $ 51,349 $ — ____________________________ (1) Included in Investments, employee benefit plans at fair value on consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Total income from continuing operations before income taxes, classified by source of income, was as follows: Year Ended December 31, 2015 2014 2013 (in thousands) U.S. $ 151,209 $ 138,616 $ 122,517 Outside the U.S. 32,776 35,142 36,155 Income from continuing operations before income taxes $ 183,985 $ 173,758 $ 158,672 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes, classified by the timing and location of payment, was as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Current tax expense Federal $ 50,794 $ 67,985 $ 46,925 State 5,476 6,278 4,891 Foreign 592 1,689 1,914 Deferred tax (benefit) expense Federal (112 ) (21,398 ) (7,011 ) State (737 ) (2,116 ) (635 ) Foreign (57 ) (153 ) (762 ) Income taxes $ 55,956 $ 52,285 $ 45,322 |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets consisted of: December 31, 2015 2014 (in thousands) Property, equipment and intangible assets $ (8,899 ) $ (8,687 ) Accrued compensation 16,274 15,124 Accrued expenses 35,415 35,023 Foreign operations (868 ) 790 Valuation allowance on foreign deferred tax assets (153 ) (153 ) Foreign net operating losses 1,897 1,800 Valuation allowance on foreign net operating losses (1,383 ) (1,800 ) Deferred tax asset on unrecognized tax positions 1,200 1,283 Other (1,555 ) 1,026 Net deferred tax assets 41,928 44,406 |
Schedule of Income Tax Balance Sheet Presentation | Balance sheet presentation: December 31, 2015 2014 (in thousands) Non-current net deferred tax assets $ 42,434 $ 44,406 Non-current net deferred tax liabilities (506 ) — Net deferred tax assets $ 41,928 $ 44,406 |
Schedule of Effective Income Tax Rate Reconciliation | The statutory United States federal income tax rate reconciles to the effective income tax rates for continuing operations as follows: Year Ended December 31, 2015 2014 2013 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 1.7 % 1.6 % 1.6 % Benefits and taxes related to foreign operations (6.2 )% (6.2 )% (7.2 )% Unrecognized tax positions (0.2 )% (0.4 )% (0.2 )% Other 0.1 % 0.1 % (0.6 )% Effective income tax rates 30.4 % 30.1 % 28.6 % |
Reconciliation of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: 2015 2014 2013 (in thousands) Balance, January 1 $ 3,395 $ 4,047 $ 4,415 Changes for tax positions of prior years 116 5 503 Increases for tax positions related to the current year 772 1,201 1,164 Settlements and lapsing of statutes of limitations (1,146 ) (1,858 ) (2,035 ) Balance, December 31 $ 3,137 $ 3,395 $ 4,047 |
Share-Based Compensation and 55
Share-Based Compensation and Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted Average Assumptions of Black-Scholes Option-Pricing Model | The fair value of the options granted was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted average assumptions: 2015 2014 2013 Risk-free interest rate 1.45 % 1.56 % 0.73 % Expected volatility 23.94 % 25.01 % 38.14 % Expected life of stock option 4.6 years 4.5 years 4.5 years Dividend yield 1.23 % 1.62 % 2.01 % Requisite service period 4 years 4 years 4 years Contractual life 7 years 7 years 7 years Weighted average fair value of options granted (per option) $ 12.39 $ 8.82 $ 9.89 |
Schedule of Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding at December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted Average Weighted Number Weighted $ 0.00 to $24.37 200,311 0.2 years $ 20.58 200,311 $ 20.58 $24.38 to $29.25 439,160 2.0 years $ 25.69 390,784 $ 25.53 $29.26 to $34.12 163,058 2.1 years $ 31.31 163,058 $ 31.31 $34.13 to $39.00 161,616 4.1 years $ 36.76 79,621 $ 36.76 $39.01 to $43.87 — — $ — — $ — $43.88 to $48.75 633,730 5.2 years $ 45.59 157,428 $ 45.59 $48.76 to $65.00 486,326 6.2 years $ 63.47 — $ — 2,084,201 4.0 years $ 41.36 991,202 $ 29.57 |
Summary of Activity Related to Restricted Stock Grants | The following table is a summary of activity related to restricted stock grants for the year ended December 31: 2015 2014 2013 Restricted shares granted 125,510 154,833 225,240 Weighted average grant date fair value per share $ 61.41 $ 46.81 $ 37.74 Aggregate grant date fair value ($000) $ 7,707 $ 7,248 $ 8,500 Restricted shares forfeited 19,833 23,804 40,552 Vesting service period of shares granted 12 - 48 months 12 - 48 months 12 - 48 months Fair value of shares vested ($000) $ 12,311 $ 10,280 $ 8,569 |
Summary of Activity Related to PVRSU Grants | The following table is a summary of activity related to PVRSU grants for the years ended December 31, 2015, 2014 and 2013 : 2015 2014 2013 Performance vested restricted stock units granted at target 71,006 24,678 80,184 Weighted average grant date fair value per share $ 58.12 $ 45.59 $ 39.48 Aggregate grant date fair value ($000) $ 4,127 $ 1,125 $ 3,165 Stock units forfeited 6,079 22,099 3,334 Requisite service period 36-43 months 36 months 22-38 months |
Summary of Change in Stock-Based Award Activity | A summary of stock-based award activity as of December 31, 2015, 2014 and 2013 and the changes during the years are presented below: 2015 Stock Options Restricted Stock Performance Vested Options Weighted Weighted Shares Weighted Shares Weighted Outstanding at January 1, 2015 1,903,177 $ 33.03 479,556 $ 40.14 200,286 $ 38.28 Granted 498,911 $ 63.47 125,510 $ 61.41 71,006 $ 58.12 Performance-Based Leveraging* — $ — — $ — 3,850 $ 35.60 Exercised/Vested (295,037 ) $ 23.91 (200,743 ) $ 38.94 (42,326 ) $ 35.60 Expired — $ — — $ — — $ — Forfeited (22,850 ) $ 55.44 (19,833 ) $ 46.17 (6,079 ) $ 32.90 Outstanding at December 31, 2015 2,084,201 $ 41.36 4.0 years 384,490 $ 47.40 226,737 $ 45.09 Options exercisable at December 31, 2015 991,202 $ 29.57 2.3 years * PVRSU units outstanding have been increased by 3,850 units during the year ended December 31, 2015 , due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. 2014 Stock Options Restricted Stock Performance Vested Options Weighted Weighted Shares Weighted Shares Weighted Outstanding at January 1, 2014 1,661,952 $ 26.44 563,345 $ 36.64 216,342 $ 37.34 Granted 651,757 $ 45.59 154,833 $ 46.81 24,678 $ 45.59 Exercised/Vested (390,290 ) $ 25.87 (214,818 ) $ 35.91 (28,886 ) $ 41.25 Performance-Based Leveraging* — $ — — $ — 10,251 $ 41.25 Expired — $ — — $ — — $ — Forfeited (20,242 ) $ 34.33 (23,804 ) $ 38.97 (22,099 ) $ 34.77 Outstanding at December 31, 2014 1,903,177 $ 33.03 3.8 years 479,556 $ 40.14 200,286 $ 38.28 Options exercisable at December 31, 2014 995,173 $ 25.06 2.0 years * PVRSU units outstanding have been increased by 10,251 units during the year ended December 31, 2014 , due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. 2013 Stock Options Restricted Stock Performance Vested Options Weighted Weighted Shares Weighted Shares Weighted Outstanding at January 1, 2013 1,934,034 $ 25.80 606,547 $ 35.17 170,116 $ 35.56 Granted 173,413 $ 36.76 225,240 $ 37.74 80,184 $ 39.48 Performance-Based Leveraging* — $ — — $ — 9,192 $ 32.60 Exercised/Vested (347,180 ) $ 25.54 (227,890 ) $ 33.94 (39,816 ) $ 32.60 Expired (75,473 ) $ 36.99 — $ — — $ — Forfeited (22,842 ) $ 28.94 (40,552 ) $ 35.85 (3,334 ) $ 41.25 Outstanding at December 31, 2013 1,661,952 $ 26.44 3.0 years 563,345 $ 36.64 216,342 $ 37.34 Options exercisable at December 31, 2013 1,181,374 $ 24.61 2.2 years * PVRSU units outstanding have been increased by 9,192 units during the year ended December 31, 2013 , due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. |
Pre-Tax Stock-Based Compensation Expenses and Associated Income Tax Benefits | The components of the Company’s pretax stock-based compensation expense and associated income tax benefits are as follows for the years ended December 31: (in millions) 2015 2014 2013 Stock options $ 3.4 $ 2.4 $ 1.8 Restricted stock 6.8 7.2 7.5 Performance vested restricted stock units 1.9 (0.2 ) 2.2 Total $ 12.1 $ 9.4 $ 11.5 Income tax benefits $ 4.5 $ 3.5 $ 4.2 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The total unrecognized compensation costs related to stock-based awards that have not yet vested and the related weighted average amortization period over which the costs are to be recognized as of December 31, 2015 are as follows: Unrecognized Weighted (in millions) Stock options $ 8.3 2.7 years Restricted stock 11.9 2.4 years Performance vested restricted stock units 3.7 2.3 years Total $ 23.9 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss is as follows: December 31, 2015 2014 2013 (in thousands) Foreign currency translation adjustments $ (4,756 ) $ (2,087 ) $ (472 ) Deferred loss on cash flow hedge (4,022 ) (4,884 ) (5,745 ) Total accumulated other comprehensive loss $ (8,778 ) $ (6,971 ) $ (6,217 ) |
Changes in Accumulated Other Comprehensive Loss, by Component | The following represents the changes in accumulated other comprehensive loss, net of tax by component for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 Year Ended December 31, 2014 Loss on Cash Flow Hedge Foreign Currency Items Total Loss on Cash Flow Hedge Foreign Currency Items Total (in thousands) (in thousands) Beginning Balance $ (4,884 ) $ (2,087 ) $ (6,971 ) $ (5,745 ) $ (472 ) $ (6,217 ) Other comprehensive income (loss) before reclassification — (2,669 ) (2,669 ) — (1,615 ) (1,615 ) Amounts reclassified from accumulated other comprehensive income (loss) 862 — 862 861 — 861 Net current period other comprehensive income (loss) 862 (2,669 ) (1,807 ) 861 (1,615 ) (754 ) Ending Balance $ (4,022 ) $ (4,756 ) $ (8,778 ) $ (4,884 ) $ (2,087 ) $ (6,971 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The amounts reclassified from other accumulated other comprehensive income (loss) during the years ended December 31, 2015 and 2014 were reclassified to the following line items in the Company's Consolidated Statements of Income. Component Amount Reclassified from Accumulated Other Comprehensive Income(Loss) Affected Line Item in the Consolidated Statement of Income Year Ended December 31, 2015 Year Ended December 31, 2014 (in thousands) Loss on cash flow hedge Interest rate contract $ 862 $ 861 Interest expense — — Tax (expense) benefit $ 862 $ 861 Net of tax |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows: Year Ended December 31, 2015 2014 2013 (in thousands, except per share amounts) Computation of Basic Earnings Per Share: Numerator: Net income from continuing operations $ 128,029 $ 121,473 $ 113,350 Net income from discontinued operations — 1,687 359 Net income 128,029 123,160 113,709 Income allocated to participating securities (889 ) (1,075 ) (1,127 ) Net income available to common shareholders $ 127,140 $ 122,085 $ 112,582 Denominator Weighted average common shares outstanding -- basic 56,814 57,730 57,925 Basic earnings per share -- Continuing operations $ 2.24 $ 2.08 $ 1.94 Basic earnings per share -- Discontinued operations — 0.03 — $ 2.24 $ 2.11 $ 1.94 Computation of Diluted Earnings Per Share: Numerator: Net income from continuing operations $ 128,029 $ 121,473 $ 113,350 Net income from discontinued operations — 1,687 359 Net income 128,029 123,160 113,709 Income allocated to participating securities (884 ) (1,069 ) (1,122 ) Net income available to common shareholders $ 127,145 $ 122,091 $ 112,587 Denominator: Weighted average common shares outstanding -- basic 56,814 57,730 57,925 Diluted effect of stock options and PVRSUs 459 526 410 Weighted average commons shares outstanding -- diluted 57,273 58,256 58,335 Diluted earnings per share -- Continuing operations $ 2.22 $ 2.07 $ 1.92 Diluted earnings per share -- Discontinued operations — 0.03 0.01 $ 2.22 $ 2.10 $ 1.93 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments are as follows: 2016 2017 2018 2019 2020 Thereafter Total (in thousands) Minimum lease payments $ 12,342 $ 11,670 $ 10,474 $ 9,697 $ 8,586 $ 18,183 $ 70,952 Minimum sublease rentals (231 ) (215 ) (222 ) (75 ) — — (743 ) $ 12,111 $ 11,455 $ 10,252 $ 9,622 $ 8,586 $ 18,183 $ 70,209 |
Condensed Consolidating Finan59
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Statement of Income | As a result the following condensed consolidating financial statements for the prior year periods have been recast to reflect the guarantors under the New Credit Facility. Choice Hotels International, Inc. Condensed Consolidating Statement of Income For the Year Ended December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated REVENUES: Royalty fees $ 280,739 $ 134,944 $ 46,055 $ (160,230 ) $ 301,508 Initial franchise and relicensing fees 23,934 — 746 — 24,680 Procurement services 26,387 — 684 — 27,071 Marketing and reservation 446,358 454,916 15,827 (428,338 ) 488,763 Other items 13,744 — 4,203 (91 ) 17,856 Total revenues 791,162 589,860 67,515 (588,659 ) 859,878 OPERATING EXPENSES: Selling, general and administrative 154,591 120,800 19,184 (160,321 ) 134,254 Marketing and reservation 464,439 437,378 15,284 (428,338 ) 488,763 Depreciation and amortization 2,405 7,595 1,542 — 11,542 Total operating expenses 621,435 565,773 36,010 (588,659 ) 634,559 Operating income 169,727 24,087 31,505 — 225,319 OTHER INCOME AND EXPENSES, NET: Interest expense 42,276 2 555 — 42,833 Equity in earnings of consolidated subsidiaries (45,155 ) 373 — 44,782 — Other items, net (957 ) 198 (740 ) — (1,499 ) Other income and expenses, net (3,836 ) 573 (185 ) 44,782 41,334 Income from continuing operations before income taxes 173,563 23,514 31,690 (44,782 ) 183,985 Income taxes 45,534 10,351 71 — 55,956 Income from from continuing operations, net of income taxes 128,029 13,163 31,619 (44,782 ) 128,029 Income from discontinued operations, net of income taxes — — — — — Net income $ 128,029 $ 13,163 $ 31,619 $ (44,782 ) $ 128,029 Choice Hotels International, Inc. Condensed Consolidating Statement of Income For the Year Ended December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated REVENUES: Royalty fees $ 262,540 $ 121,295 $ 44,357 $ (140,654 ) $ 287,538 Initial franchise and relicensing fees 18,753 — 728 — 19,481 Procurement services 22,959 23 837 — 23,819 Marketing and reservation 367,726 369,359 18,783 (343,249 ) 412,619 Other items 13,758 16 739 — 14,513 Total revenues 685,736 490,693 65,444 (483,903 ) 757,970 OPERATING EXPENSES: Selling, general and administrative 137,759 110,504 13,809 (140,654 ) 121,418 Marketing and reservation 383,584 354,342 17,942 (343,249 ) 412,619 Depreciation and amortization 3,038 5,679 648 — 9,365 Total operating expenses 524,381 470,525 32,399 (483,903 ) 543,402 Operating income 161,355 20,168 33,045 — 214,568 OTHER INCOME AND EXPENSES, NET: Interest expense 41,454 3 29 — 41,486 Equity in earnings of consolidated subsidiaries (45,426 ) (765 ) — 46,191 — Other items, net (1,465 ) 567 222 — (676 ) Other income and expenses, net (5,437 ) (195 ) 251 46,191 40,810 Income from continuing operations before income taxes 166,792 20,363 32,794 (46,191 ) 173,758 Income taxes 43,632 7,922 731 — 52,285 Income from continuing operations, net of income taxes 123,160 12,441 32,063 (46,191 ) 121,473 Income from discontinued operations, net of income taxes — — 1,687 — 1,687 Net income $ 123,160 $ 12,441 $ 33,750 $ (46,191 ) $ 123,160 Choice Hotels International, Inc. Condensed Consolidating Statement of Income For the Year Ended December 31, 2013 (in thousands) Parent Guarantor Subsidiaries Non-Guarantor Eliminations Consolidated REVENUES: Royalty fees $ 243,272 $ 112,215 $ 43,967 $ (131,642 ) $ 267,812 Initial franchise and relicensing fees 17,432 — 1,254 — 18,686 Procurement services 19,864 — 804 — 20,668 Marketing and reservation 362,459 350,134 19,327 (324,287 ) 407,633 Other items 8,834 — 1,017 — 9,851 Total revenues 651,861 462,349 66,369 (455,929 ) 724,650 OPERATING EXPENSES: Selling, general and administrative 128,966 100,821 13,568 (131,642 ) 111,713 Marketing and reservation 377,884 336,498 17,538 (324,287 ) 407,633 Depreciation and amortization 3,100 5,087 869 — 9,056 Total operating expenses 509,950 442,406 31,975 (455,929 ) 528,402 Operating income 141,911 19,943 34,394 — 196,248 OTHER INCOME AND EXPENSES, NET: Interest expense 42,418 113 6 — 42,537 Equity in earnings of consolidated subsidiaries (47,362 ) (288 ) — 47,650 — Other items, net (2,406 ) (1,532 ) (1,023 ) — (4,961 ) Other income and expenses, net (7,350 ) (1,707 ) (1,017 ) 47,650 37,576 Income from continuing operations before income taxes 149,261 21,650 35,411 (47,650 ) 158,672 Income taxes 35,552 8,897 873 — 45,322 Income from continuing operations, net of income taxes 113,709 12,753 34,538 (47,650 ) 113,350 Income from discontinued operations, net of income taxes — — 359 — 359 Net income $ 113,709 $ 12,753 $ 34,897 $ (47,650 ) $ 113,709 |
Condensed Consolidating Statement of Comprehensive Income | Choice Hotels International, Inc. Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net income $ 128,029 $ 13,163 $ 31,619 $ (44,782 ) $ 128,029 Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge 862 — — — 862 Foreign currency translation adjustment (2,669 ) — (2,669 ) 2,669 (2,669 ) Other comprehensive income (loss), net of tax (1,807 ) — (2,669 ) 2,669 (1,807 ) Comprehensive income $ 126,222 $ 13,163 $ 28,950 $ (42,113 ) $ 126,222 Choice Hotels International, Inc. Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net income $ 123,160 $ 12,441 $ 33,750 $ (46,191 ) $ 123,160 Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge 861 — — — 861 Foreign currency translation adjustment (1,615 ) — (1,615 ) 1,615 (1,615 ) Other comprehensive income (loss), net of tax (754 ) — (1,615 ) 1,615 (754 ) Comprehensive income $ 122,406 $ 12,441 $ 32,135 $ (44,576 ) $ 122,406 Choice Hotels International, Inc. Condensed Consolidating Statement of Comprehensive Income For the Year Ended December 31, 2013 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net income $ 113,709 $ 12,753 $ 34,897 $ (47,650 ) $ 113,709 Other comprehensive income (loss), net of tax: Amortization of loss on cash flow hedge 862 — — — 862 Foreign currency translation adjustment (2,863 ) — (2,863 ) 2,863 (2,863 ) Other comprehensive income (loss), net of tax (2,001 ) — (2,863 ) 2,863 (2,001 ) Comprehensive income $ 111,708 $ 12,753 $ 32,034 $ (44,787 ) $ 111,708 |
Condensed Consolidating Balance Sheet | Choice Hotels International, Inc. Condensed Consolidating Balance Sheet As of December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 13,529 $ 19 $ 179,893 $ — $ 193,441 Receivables, net 79,381 1,132 8,992 (153 ) 89,352 Other current assets 19,029 14,176 5,331 (10,376 ) 28,160 Total current assets 111,939 15,327 194,216 (10,529 ) 310,953 Property and equipment, at cost, net 37,857 33,575 16,726 — 88,158 Goodwill 60,620 5,193 13,514 — 79,327 Franchise rights and other identifiable intangibles, net 2,965 1,013 7,970 — 11,948 Notes receivable, net of allowances 18,866 38,957 24,749 — 82,572 Investments, employee benefit plans, at fair value — 17,674 — — 17,674 Investments in affiliates 473,448 37,182 — (510,630 ) — Advances to affiliates 17,144 212,773 7,789 (237,706 ) — Deferred income taxes 10,664 33,936 — (2,166 ) 42,434 Other assets 319 45,383 38,348 (106 ) 83,944 Total assets $ 733,822 $ 441,013 $ 303,312 $ (761,137 ) $ 717,010 LIABILITIES AND SHAREHOLDERS’ DEFICIT Accounts payable $ 12,359 $ 48,238 $ 3,987 $ (153 ) $ 64,431 Accrued expenses and other current liabilities 29,099 45,601 6,378 (10,271 ) 70,807 Deferred revenue 8,749 61,890 1,053 (105 ) 71,587 Current portion of long-term debt — 430 761 — 1,191 Total current liabilities 50,207 156,159 12,179 (10,529 ) 208,016 Long-term debt 799,212 3,712 10,021 — 812,945 Deferred compensation & retirement plan obligations — 22,849 10 — 22,859 Advances from affiliates 235,629 257 1,820 (237,706 ) — Other liabilities 44,673 15,755 10,933 (2,272 ) 69,089 Total liabilities 1,129,721 198,732 34,963 (250,507 ) 1,112,909 Total shareholders’ (deficit) equity (395,899 ) 242,281 268,349 (510,630 ) (395,899 ) Total liabilities and shareholders’ deficit $ 733,822 $ 441,013 $ 303,312 $ (761,137 ) $ 717,010 Choice Hotels International, Inc. Condensed Consolidating Balance Sheet As of December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 25,290 $ 25 $ 189,564 $ — $ 214,879 Receivables, net 82,195 1,194 8,292 — 91,681 Other current assets 21,035 12,318 772 (15,256 ) 18,869 Total current assets 128,520 13,537 198,628 (15,256 ) 325,429 Property and equipment, at cost, net 25,300 37,675 14,334 — 77,309 Goodwill 60,620 5,193 — — 65,813 Franchise rights and other identifiable intangibles, net 4,380 1,479 3,053 — 8,912 Notes receivable, net of allowances 11,847 27,895 699 — 40,441 Investments, employee benefit plans, at fair value — 17,539 — — 17,539 Investments in affiliates 424,600 39,231 — (463,831 ) — Advances to affiliates 15,670 213,303 20,341 (249,314 ) — Deferred income taxes 11,410 31,696 1,300 — 44,406 Other assets — 23,891 34,177 — 58,068 Total assets $ 682,347 $ 411,439 $ 272,532 $ (728,401 ) $ 637,917 LIABILITIES AND SHAREHOLDERS’ DEFICIT Accounts payable $ 15,588 $ 37,924 $ 3,612 $ — $ 57,124 Accrued expenses and other current liabilities 28,719 48,127 2,653 (15,256 ) 64,243 Deferred revenue 8,467 57,339 576 — 66,382 Current portion of long-term debt 11,250 718 381 — 12,349 Total current liabilities 64,024 144,108 7,222 (15,256 ) 200,098 Long-term debt 758,407 3,966 10,356 — 772,729 Deferred compensation & retirement plan obligations — 23,978 9 — 23,987 Advances from affiliates 237,973 344 10,997 (249,314 ) — Other liabilities 50,744 16,116 3,044 — 69,904 Total liabilities 1,111,148 188,512 31,628 (264,570 ) 1,066,718 Total shareholders’ (deficit) equity (428,801 ) 222,927 240,904 (463,831 ) (428,801 ) Total liabilities and shareholders’ deficit $ 682,347 $ 411,439 $ 272,532 $ (728,401 ) $ 637,917 |
Condensed Consolidating Statement of Cash Flows | Choice Hotels International, Inc. Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2015 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net cash provided by operating activities $ 100,643 $ 18,719 $ 41,167 $ (657 ) $ 159,872 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment (20,242 ) (6,952 ) (571 ) — (27,765 ) Acquisitions, net of cash acquired — — (13,269 ) — (13,269 ) Proceeds from sale of assets 93 4,661 1,593 — 6,347 Contributions to equity method investments — (22,205 ) (1,532 ) — (23,737 ) Distributions from equity method investments — — 518 — 518 Issuance of mezzanine and other notes receivable (12,753 ) — (24,131 ) — (36,884 ) Collections of mezzanine and other notes receivable 4,849 — — — 4,849 Purchases of investments, employee benefit plans — (3,220 ) — — (3,220 ) Proceeds from sales of investments, employee benefit plans — 3,170 — — 3,170 Advances to and investments in affiliates — (9,418 ) — 9,418 — Divestment in affiliates — 10,735 — (10,735 ) — Other items, net (889 ) (49 ) (8,881 ) — (9,819 ) Net cash used in investing activities (28,942 ) (23,278 ) (46,273 ) (1,317 ) (99,810 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) pursuant to revolving credit facilities 159,000 — (133 ) — 158,867 Principal payments on long-term debt (129,374 ) (718 ) (409 ) — (130,501 ) Proceeds from the issuance of long-term debt — 176 — — 176 Purchase of treasury stock (72,873 ) — — — (72,873 ) Excess tax benefits from stock-based compensation 112 5,095 — — 5,207 Proceeds from exercise of stock options 7,056 — — — 7,056 Debt issuance costs (2,169 ) — — — (2,169 ) Proceeds from contributions from affiliates — — 9,418 (9,418 ) — Distributions to affiliates — — (10,735 ) 10,735 — Dividends paid (45,214 ) — (657 ) 657 (45,214 ) Net cash provided from (used in) financing activities (83,462 ) 4,553 (2,516 ) 1,974 (79,451 ) Net change in cash and cash equivalents (11,761 ) (6 ) (7,622 ) — (19,389 ) Effect of foreign exchange rate changes on cash and cash equivalents — — (2,049 ) — (2,049 ) Cash and cash equivalents at beginning of period 25,290 25 189,564 — 214,879 Cash and cash equivalents at end of period $ 13,529 $ 19 $ 179,893 $ — $ 193,441 Choice Hotels International, Inc. Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2014 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net cash provided by operating activities $ 140,738 $ 21,099 $ 22,711 $ (657 ) $ 183,891 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment (11,234 ) (9,134 ) (578 ) — (20,946 ) Proceeds from sale of assets 27 516 15,069 — 15,612 Contributions to equity method investments — (11,390 ) (6,399 ) — (17,789 ) Issuance of mezzanine and other notes receivable (3,340 ) — — — (3,340 ) Collections of mezzanine and other notes receivable 11,289 — — — 11,289 Purchases of investments, employee benefit plans — (2,794 ) — — (2,794 ) Proceeds from sales of investments, employee benefit plans — 964 — — 964 Advances to and investments in affiliates (1,000 ) (5,578 ) — 6,578 — Divestment in affiliates — 3,426 — (3,426 ) — Other items, net (496 ) — (146 ) — (642 ) Net cash provided from (used in) investing activities (4,754 ) (23,990 ) 7,946 3,152 (17,646 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on long-term debt (9,375 ) (701 ) (32 ) — (10,108 ) Proceeds from the issuance of long-term debt — 176 74 — 250 Purchase of treasury stock (77,972 ) — — — (77,972 ) Excess tax benefits from stock-based compensation 299 3,422 — — 3,721 Proceeds from exercise of stock options 10,098 — — — 10,098 Proceeds from contributions from affiliates — — 6,578 (6,578 ) — Distributions to affiliates — — (3,426 ) 3,426 — Dividends paid (43,529 ) — (657 ) 657 (43,529 ) Net cash provided from (used in) financing activities (120,479 ) 2,897 2,537 (2,495 ) (117,540 ) Net change in cash and cash equivalents 15,505 6 33,194 — 48,705 Effect of foreign exchange rate changes on cash and cash equivalents — — (1,621 ) — (1,621 ) Cash and cash equivalents at beginning of period 9,785 19 157,991 — 167,795 Cash and cash equivalents at end of period $ 25,290 $ 25 $ 189,564 $ — 214,879 Choice Hotels International, Inc. Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2013 (in thousands) Parent Guarantor Non-Guarantor Eliminations Consolidated Net cash provided by operating activities $ 91,745 $ 26,925 $ 36,813 $ (1,570 ) $ 153,913 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment (5,167 ) (27,863 ) (367 ) — (33,397 ) Contributions to equity method investments — (2,401 ) (3,284 ) — (5,685 ) Issuance of mezzanine and other notes receivable (1,095 ) — — — (1,095 ) Collections of mezzanine and other notes receivable 9,748 — — — 9,748 Purchases of investments, employee benefit plans — (2,676 ) — — (2,676 ) Proceeds from sales of investments, employee benefit plans — 4,168 — — 4,168 Advances to and investments in affiliates (1,000 ) (2,284 ) — 3,284 — Other items, net (485 ) — — — (485 ) Net cash provided from (used in) investing activities 2,001 (31,056 ) (3,651 ) 3,284 (29,422 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net repayments pursuant to revolving credit facilities (57,000 ) — — — (57,000 ) Principal payments on long-term debt (7,500 ) (671 ) (33 ) — (8,204 ) Proceeds from the issuance of long-term debt — 3,360 — — 3,360 Purchase of treasury stock (3,965 ) — — — (3,965 ) Excess tax benefits from stock-based compensation 19 1,441 — — 1,460 Proceeds from exercise of stock options 8,864 — — — 8,864 Proceeds from contributions from affiliates — — 3,284 (3,284 ) — Dividends paid (32,799 ) — (1,570 ) 1,570 (32,799 ) Net cash provided from (used in) financing activities (92,381 ) 4,130 1,681 (1,714 ) (88,284 ) Net change in cash and cash equivalents 1,365 (1 ) 34,843 — 36,207 Effect of foreign exchange rate changes on cash and cash equivalents — — (2,589 ) — (2,589 ) Cash and cash equivalents at beginning of period 8,420 20 125,737 — 134,177 Cash and cash equivalents at end of period $ 9,785 $ 19 $ 157,991 $ — $ 167,795 |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for Company's Franchising Segment | The following tables present the financial information for the Company's segments: Year Ended December 31, 2015 Franchising SkyTouch Technology Corporate & Other Elimination Adjustments Consolidated (in thousands) Revenues $ 855,462 $ 1,186 $ 3,230 $ — $ 859,878 Operating income (loss) 285,752 (18,971 ) (41,462 ) — 225,319 Depreciation and amortization 6,762 1,450 3,330 — 11,542 Income (loss) from continuing operations, before income taxes 284,851 (18,971 ) (81,895 ) — 183,985 Capital expenditures 28,662 1,454 4,544 — 34,660 Total assets 397,428 4,073 315,509 — 717,010 Year Ended December 31, 2014 Franchising SkyTouch Technology Corporate & Other Elimination Adjustments Consolidated (in thousands) Revenues $ 757,370 $ 600 $ — $ — $ 757,970 Operating income (loss) 273,177 (17,065 ) (41,544 ) — 214,568 Depreciation and amortization 6,125 1,007 2,233 — 9,365 Income (loss) from continuing operations, before income taxes 272,520 (17,065 ) (81,697 ) — 173,758 Capital expenditures 19,958 1,816 14,800 — 36,574 Total assets 318,306 4,197 315,414 — 637,917 Year Ended December 31, 2013 Franchising SkyTouch Technology Corporate & Other Elimination Adjustment Consolidated (in thousands) Revenues $ 724,617 $ 33 $ — $ — $ 724,650 Operating income (loss) 248,253 (9,994 ) (42,011 ) — 196,248 Depreciation and amortization 6,280 398 2,378 — 9,056 Income (loss) from continuing operations, before income taxes 248,887 (9,994 ) (80,221 ) — 158,672 Capital expenditures 12,079 2,295 19,023 — 33,397 Total assets 300,292 2,303 237,504 — 540,099 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary fair value of the assets and liabilities is as follows: Estimated Fair Value (in thousands) Tangible assets $ 2,674 Intangible assets 20,936 Total assets acquired 23,610 Deferred purchase price (6,813 ) Liabilities assumed (3,528 ) Cash paid, net of cash acquired $ 13,269 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The purchase price was based on the projected business growth and cash flows over the next several years and indicated a value that was in excess of the current net book value of the business, resulting in the recognition of various identifiable intangible assets and goodwill as follows: Estimated Fair Value (in thousands) Estimated Useful Lives Customer contracts $ 5,165 5 to 12 years Trademarks 440 8 years Developed technology 1,649 6 years Goodwill 13,682 Indefinite life $ 20,936 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations, Income Statement and Balance Sheet Disclosures | Summarized financial information related to the discontinued operations is as follows: For the Year Ended December 31, 2015 2014 2013 (in thousands) Revenues Hotel operations $ — $ 801 $ 4,774 Total revenues — 801 4,774 Operating Expenses Hotel operations — 927 3,678 Depreciation and amortization — — 526 Total operating expenses — 927 4,204 Operating income (loss) — (126 ) 570 Gain on disposal of discontinued operations — 2,807 — Income from discontinued operations before income taxes — 2,681 570 Income taxes — 994 211 Income from discontinued operations, net of income taxes $ — $ 1,687 $ 359 As of December 31, 2015 As of December 31, 2014 (in thousands) Total assets $ — $ — Accounts payable $ — $ 45 Income taxes payable — 994 Total liabilities — 1,039 Net assets of discontinued operations $ — $ (1,039 ) |
Selected Quarterly Financial 63
Selected Quarterly Financial Data - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data - (Unaudited) | First Second Third Fourth 2015 (1) (in thousands, except per share data) Revenues $ 175,245 $ 232,156 $ 241,526 $ 210,951 $ 859,878 Operating income $ 41,404 $ 62,917 $ 73,803 $ 47,195 $ 225,319 Income from continuing operations before income taxes $ 31,034 $ 52,879 $ 62,268 $ 37,804 $ 183,985 Income from continuing operations, net of income taxes $ 21,594 $ 35,813 $ 41,419 $ 29,203 $ 128,029 Income (loss) from discontinued operations, net of income taxes $ — $ — $ — $ — $ — Net income $ 21,594 $ 35,813 $ 41,419 $ 29,203 $ 128,029 Per basic share: Continuing Operations $ 0.38 $ 0.62 $ 0.72 $ 0.52 $ 2.24 Discontinued Operations $ — $ — $ — $ — $ — Per diluted share: Continuing operations $ 0.37 $ 0.62 $ 0.72 $ 0.51 $ 2.22 Discontinued operations $ — $ — $ — $ — $ — First Second Third Fourth 2014 (1) (in thousands, except per share data) Revenues $ 159,736 $ 197,664 $ 215,168 $ 185,402 $ 757,970 Operating income $ 41,172 $ 60,153 $ 66,986 $ 46,257 $ 214,568 Income from continuing operations before income taxes $ 31,528 $ 50,234 $ 55,958 $ 36,038 $ 173,758 Income from continuing operations, net of income taxes $ 21,469 $ 35,279 $ 39,416 $ 25,309 $ 121,473 Income (loss) from discontinued operations, net of income taxes $ 1,641 $ 121 $ (51 ) $ (24 ) $ 1,687 Net income $ 23,110 $ 35,400 $ 39,365 $ 25,285 $ 123,160 Per basic share: Continuing Operations $ 0.37 $ 0.61 $ 0.67 $ 0.44 $ 2.08 Discontinued Operations $ 0.03 $ — $ — $ — $ 0.03 Per diluted share: Continuing operations $ 0.36 $ 0.60 $ 0.67 $ 0.43 $ 2.07 Discontinued operations $ 0.03 $ — $ — $ — $ 0.03 (1) The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods . |
Summary of Significant Accoun64
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014hotel | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Company-owned hotels, approved to be sold | hotel | 3 | |||
Advertising expense | $ 116,900,000 | $ 93,700,000 | $ 84,700,000 | |
Foreign currency transaction gains and (losses) | (500,000) | (1,100,000) | (400,000) | |
Deferred Finance Costs, Noncurrent, Net | 9,500,000 | 9,400,000 | ||
Goodwill, impairment loss | 0 | 0 | 0 | |
Increase (Decrease) Noncurrent Deferred Tax Assets | 24,000,000 | |||
Accounts Payable [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Book overdrafts | 10,800,000 | 5,400,000 | ||
Trademarks [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | |
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Franchise agreement, initial term | 30 years | |||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Franchise agreement, initial term | 10 years |
Other Current Assets - Schedule
Other Current Assets - Schedule Of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 14,144 | $ 12,280 |
Other current assets | 3,423 | 1,170 |
Total | $ 17,567 | $ 13,450 |
Notes Receivable and Allowanc66
Notes Receivable and Allowance for Losses - Past due balances of mezzanine and other notes receivable (Details) - Mezzanine & Other Notes Receivable [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 0 | $ 47 |
Current | 50,111 | 17,963 |
Total Mezzanine and Other Notes Receivables | 50,111 | 18,010 |
Senior [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 40,388 | 10,152 |
Total Mezzanine and Other Notes Receivables | 40,388 | 10,152 |
Subordinated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 6,197 | 3,863 |
Total Mezzanine and Other Notes Receivables | 6,197 | 3,863 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 47 |
Current | 3,526 | 3,948 |
Total Mezzanine and Other Notes Receivables | 3,526 | 3,995 |
Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 89 Days Past Due [Member] | Senior [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 89 Days Past Due [Member] | Subordinated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 89 Days Past Due [Member] | Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 47 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Senior [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Subordinated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Past Due | $ 0 | $ 47 |
Notes Receivable and Allowanc67
Notes Receivable and Allowance for Losses - Schedule of notes receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | $ 94,444 | $ 50,389 | |
Allowance for losses on non-impaired loans | 5,979 | 5,201 | |
Allowance for losses on receivables specifically evaluated for impairment | 786 | 786 | |
Total loan reserves | 6,765 | 5,987 | |
Net carrying value | 87,679 | 44,402 | |
Current portion, net | 5,107 | 3,961 | |
Long-term portion, net | 82,572 | 40,441 | |
Senior [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 40,388 | 10,152 | |
Subordinated [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 6,197 | 3,863 | |
Unsecured [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 47,859 | 36,374 | |
Forgivable Notes Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 44,333 | 32,379 | |
Allowance for losses on non-impaired loans | 4,615 | 3,661 | |
Allowance for losses on receivables specifically evaluated for impairment | 0 | 0 | |
Total loan reserves | 4,615 | 3,661 | $ 1,650 |
Net carrying value | 39,718 | 28,718 | |
Current portion, net | 143 | 124 | |
Long-term portion, net | 39,575 | 28,594 | |
Forgivable Notes Receivable [Member] | Senior [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 0 | 0 | |
Forgivable Notes Receivable [Member] | Subordinated [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 0 | 0 | |
Forgivable Notes Receivable [Member] | Unsecured [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 44,333 | 32,379 | |
Mezzanine & Other Notes Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 50,111 | 18,010 | |
Allowance for losses on non-impaired loans | 1,364 | 1,540 | |
Allowance for losses on receivables specifically evaluated for impairment | 786 | 786 | |
Total loan reserves | 2,150 | 2,326 | $ 9,896 |
Net carrying value | 47,961 | 15,684 | |
Current portion, net | 4,964 | 3,837 | |
Long-term portion, net | 42,997 | 11,847 | |
Mezzanine & Other Notes Receivable [Member] | Senior [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 40,388 | 10,152 | |
Mezzanine & Other Notes Receivable [Member] | Subordinated [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | 6,197 | 3,863 | |
Mezzanine & Other Notes Receivable [Member] | Unsecured [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total notes receivable | $ 3,526 | $ 3,995 |
Notes Receivable and Allowanc68
Notes Receivable and Allowance for Losses - Summary of activity related to allowance for losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 5,987 | ||
Ending balance | 6,765 | $ 5,987 | |
Forgivable Notes Receivable [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 3,661 | 1,650 | |
Provisions | 1,742 | 2,528 | |
Recoveries | (739) | (303) | |
Write-offs | (752) | (305) | |
Other | [1] | 703 | 91 |
Ending balance | 4,615 | 3,661 | |
Mezzanine & Other Notes Receivable [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 2,326 | 9,896 | |
Provisions | 0 | 102 | |
Recoveries | (176) | (875) | |
Write-offs | 0 | (6,797) | |
Other | [1] | 0 | 0 |
Ending balance | $ 2,150 | $ 2,326 | |
[1] | (1) Consists of default rate assumption changes and changes in foreign exchange rates |
Notes Receivable and Allowanc69
Notes Receivable and Allowance for Losses - Narrative (Details) $ in Thousands | Dec. 30, 2014USD ($) | Dec. 02, 2011USD ($) | Dec. 31, 2015USD ($)category | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of notes receivable categories for evaluating credit losses | category | 2 | ||||
Number of days outstanding to consider loans outstanding past due in order to cease accruing interest (more than) | 30 days | ||||
Loan reserves | $ 6,765 | $ 5,987 | |||
Allowance for losses on non-impaired loans | 5,979 | 5,201 | |||
Proceeds from collection of notes receivable | 4,849 | 11,289 | $ 9,748 | ||
Notes receivable, related parties | 94,444 | 50,389 | |||
Amortization expense | 11,542 | 9,365 | 9,056 | ||
Collateral of Single-purpose Limited Liability Company [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loans, carrying value | $ 2,200 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,800 | ||||
Loan reserves on impaired loans | 7,400 | ||||
Impaired loans, unpaid principal | 9,600 | ||||
Recovery of bad debts | $ 600 | ||||
Mezzanine & Other Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan reserves | 2,150 | 2,326 | 9,896 | ||
Allowance for losses on non-impaired loans | 1,364 | 1,540 | |||
Mortgage loans acquired | $ 11,500 | ||||
Payments to acquire mortgage notes receivable | 7,900 | ||||
Contractually required payments receivable at acquisition | 12,000 | ||||
Cash flows expected to be collected at acquisition | $ 9,700 | ||||
Proceeds from collection of notes receivable | 7,900 | ||||
Notes receivable, related parties | 50,111 | 18,010 | |||
Forgivable Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan reserves | 4,615 | 3,661 | 1,650 | ||
Allowance for losses on non-impaired loans | 4,615 | 3,661 | |||
Notes receivable, related parties | 44,333 | 32,379 | |||
Forgivable, unsecured notes, past due | 1,200 | 1,200 | |||
Amortization expense | 8,200 | 5,000 | $ 4,200 | ||
Impaired Loans [Member] | Mezzanine & Other Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loans, carrying value | 800 | 800 | |||
Loan reserves on impaired loans | 800 | 800 | |||
Average notes on nonaccrual status | 800 | 11,500 | |||
Interest income on impaired loans, cash basis method | 33 | 200 | |||
Non-impaired Loans [Member] | Mezzanine & Other Notes Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan reserves | $ 1,400 | $ 1,500 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and Amortization, Excluding Marketing And Reservation | $ 4,300 | $ 3,100 | $ 3,200 |
Property and equipment, gross | 201,148 | 169,987 | |
Less: Accumulated depreciation and amortization | (112,990) | (92,678) | |
Property and equipment, at cost, net | 88,158 | 77,309 | |
Depreciation and amortization | 11,542 | 9,365 | 9,056 |
Land and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,107 | 3,107 | |
Facilities in progress and software under development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 21,089 | 10,408 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 117,762 | 99,306 | |
Buildings and leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 37,205 | 37,013 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 17,158 | 15,326 | |
Assets under capital lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 4,827 | 4,827 | |
Less: Accumulated depreciation and amortization | (2,900) | (2,000) | |
Property and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest costs capitalized | 300 | 400 | |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost, net | 34,700 | 25,200 | |
Depreciation and amortization | $ 9,600 | $ 6,300 | $ 3,800 |
Property and Equipment - Estima
Property and Equipment - Estimated useful lives (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | Computer equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum [Member] | Buildings and leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Minimum [Member] | Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum [Member] | Assets under capital leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Computer equipment and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Maximum [Member] | Buildings and leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Maximum [Member] | Furniture, fixtures and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Maximum [Member] | Assets under capital leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Schedule of Carrying Amount of
Schedule of Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | |||
Goodwill | $ 79,519 | $ 66,005 | |
Accumulated impairment losses | (192) | (192) | |
Net carrying amount | $ 79,327 | $ 65,813 | $ 65,813 |
Goodwill Schedule of Changes in
Goodwill Schedule of Changes in Goodwill (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 65,813,000 | $ 65,813,000 | ||
Acquisition | [1] | 13,682,000 | 0 | |
Foreign Exchange | (168,000) | 0 | ||
Impairment | 0 | 0 | $ 0 | |
Goodwill, Ending Balance | 79,327,000 | 65,813,000 | 65,813,000 | |
Franchising [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 65,813,000 | 65,813,000 | ||
Acquisition | [1] | 0 | 0 | |
Foreign Exchange | 0 | 0 | ||
Impairment | 0 | 0 | ||
Goodwill, Ending Balance | 65,813,000 | 65,813,000 | 65,813,000 | |
Other [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 0 | 0 | ||
Acquisition | [1] | 13,682,000 | 0 | |
Foreign Exchange | (168,000) | 0 | ||
Impairment | 0 | 0 | ||
Goodwill, Ending Balance | $ 13,514,000 | $ 0 | $ 0 | |
[1] | See Footnote 27 "Acquisition" |
Franchise Rights and Other Id74
Franchise Rights and Other Identifiable Intangibles - Components of Franchise Rights and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Unamortized Intangible Assets | [1] | $ 1,014 | $ 1,014 |
Amortized Intangible Assets, Gross | 100,512 | 95,130 | |
Amortized Intangible Assets, Accumulated Amortization | 89,578 | 87,232 | |
Amortized Intangible Assets, Net | 10,934 | 7,898 | |
Total, Gross | 101,526 | 96,144 | |
Total, Net | 11,948 | 8,912 | |
Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortized Intangible Assets, Gross | [2] | 81,169 | 81,942 |
Amortized Intangible Assets, Accumulated Amortization | [2] | 80,685 | 79,189 |
Amortized Intangible Assets, Net | [2] | 484 | 2,753 |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortized Intangible Assets, Gross | [3] | 12,004 | 10,951 |
Amortized Intangible Assets, Accumulated Amortization | [3] | 8,628 | 8,043 |
Amortized Intangible Assets, Net | [3] | 3,376 | 2,908 |
Contract Acquisition Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortized Intangible Assets, Gross | [4] | 5,102 | 0 |
Amortized Intangible Assets, Accumulated Amortization | [4] | 203 | 0 |
Amortized Intangible Assets, Net | [4] | 4,899 | 0 |
Acquired Lease Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortized Intangible Assets, Gross | [5] | 2,237 | 2,237 |
Amortized Intangible Assets, Accumulated Amortization | [5] | 62 | 0 |
Amortized Intangible Assets, Net | [5] | $ 2,175 | $ 2,237 |
Finite-lived intangible asset, useful life | 36 years | ||
Minimum [Member] | Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Minimum [Member] | Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 8 years | ||
Minimum [Member] | Contract Acquisition Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Maximum [Member] | Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 25 years | ||
Maximum [Member] | Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 40 years | ||
Maximum [Member] | Contract Acquisition Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 12 years | ||
[1] | Acquisition of the Suburban brand. The tradename is expected to generate future cash flows for an indefinite period of time. | ||
[2] | Represents the purchase price assigned to long-term franchise contracts. The unamortized balance relates primarily to the acquisition of the Econo Lodge, Suburban and Choice Hotels Australia franchise rights. The franchise rights are being amortized over lives ranging from 5 to 25 years on a straight-line basis. | ||
[3] | Generally amortized on a straight-line basis over a period of 8 to 40 years. | ||
[4] | Customer contracts acquired in a business combination. Amortized on a straight-line basis over a period of 5 to 12 years. | ||
[5] | Acquired lease rights recognized in conjunction with the acquisition of an office building. The costs are being amortized over the 36 year term of the lease in place. |
Franchise Rights and Other Id75
Franchise Rights and Other Identifiable Intangibles - Franchise Rights Future Amortization Expense (Details) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,016 | $ 1.4 |
2,017 | 1.3 |
2,018 | 1.1 |
2,019 | 1 |
2,020 | $ 0.9 |
Franchise Rights and Other Id76
Franchise Rights and Other Identifiable Intangibles - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Franchise Rights and Other Identifiable Intangibles [Abstract] | |||
Amortization expense | $ 3 | $ 3.9 | $ 4 |
Marketing And Reservation Act77
Marketing And Reservation Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advances, Marketing and Reservation Activities [Line Items] | |||
Depreciation and amortization | $ 11,542 | $ 9,365 | $ 9,056 |
Interest expense | 42,833 | 41,486 | 42,537 |
Marketing and reservation fees [Member] | |||
Advances, Marketing and Reservation Activities [Line Items] | |||
Depreciation and amortization | 23,000 | 17,100 | 16,000 |
Reservation activities [Member] | |||
Advances, Marketing and Reservation Activities [Line Items] | |||
Interest expense | 27 | 1,900 | $ 3,700 |
Other Long-term Liabilities [Member] | |||
Advances, Marketing and Reservation Activities [Line Items] | |||
Advances, marketing and reservation activities | $ 30,700 | $ 44,300 |
Investments in Unconsolidated78
Investments in Unconsolidated Entities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Net income (loss) attributable to variable interest entities | $ (2) | $ (1.5) |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated joint ventures | $ 64.3 | $ 47.1 |
Investments in Unconsolidated79
Investments in Unconsolidated Entities Investments Ownership Interest (Details) | Dec. 31, 2015 | Dec. 31, 2014 | |
Hotel JV Services, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | [1] | 16.00% | 16.00% |
Choice Hotels Canada, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | [1] | 50.00% | 50.00% |
Variable Interest Entity, Not Primary Beneficiary [Member] | Main Street WP Hotel Associates, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | FBC-CHI Hotels LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 40.00% | 40.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CS Hotel 30W46th, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 25.00% | 25.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CS Brickell, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CHH Plano, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 0.00% | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CS Maple Grove LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CS Hotel West Orange, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | City Market Hotel Development LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 43.00% | 43.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CS at Phoenix, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | CS Woodlands, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
[1] | Non-variable interest entity investments |
Investments in Unconsolidated80
Investments in Unconsolidated Entities Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summarized Financial Information, Income Statement [Abstract] | |||
Revenues | $ 44,015 | $ 30,608 | $ 25,076 |
Operating income (loss) | 1,196 | (2,533) | (752) |
Income from continuing operations | (2,382) | (3,616) | (721) |
Net income | (2,382) | (4,670) | $ (1,858) |
Summarized Financial Information, Assets [Abstract] | |||
Current assets | 44,951 | 41,783 | |
Non-current assets | 257,022 | 202,810 | |
Total assets | 301,973 | 244,593 | |
Summarized Financial Information, Liabilities [Abstract] | |||
Current liabilities | 22,217 | 17,823 | |
Non-current liabilities | 104,344 | 98,535 | |
Total liabilities | $ 126,561 | $ 116,358 |
Other Assets - Components Of Ot
Other Assets - Components Of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets [Line Items] | ||
Land | $ 10,206 | $ 4,011 |
Other assets | 6,701 | 3,452 |
Total | $ 16,907 | $ 7,463 |
Accrued Expenses and Other Cu82
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Abstract] | ||
Accrued compensation and benefits | $ 34,107 | $ 29,975 |
Accrued interest | 16,553 | 16,418 |
Dividends payable | 11,548 | 11,176 |
Deferred rent and unamortized lease incentives | 2,250 | 2,124 |
Termination benefits | 600 | 984 |
Other liabilities and contingencies | 5,590 | 3,481 |
Total | $ 70,648 | $ 64,158 |
Deferred Revenue - Components O
Deferred Revenue - Components Of Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 71,587 | $ 66,382 |
Loyalty programs [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 62,258 | 57,757 |
Initial, relicensing and franchise fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 6,530 | 6,439 |
Procurement services fees [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 2,353 | 1,936 |
Other [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 446 | $ 250 |
Other Non-Current Liabilities84
Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities, Noncurrent [Abstract] | ||
Marketing and reservation liability | $ 30,662 | $ 44,272 |
Deferred rent and unamortized lease incentives | 13,485 | 14,898 |
Deferred revenue | 13,085 | 4,320 |
Uncertain tax positions | 3,620 | 4,108 |
Other liabilities | 7,731 | 2,306 |
Total | $ 68,583 | $ 69,904 |
Debt - Schedule Of Components O
Debt - Schedule Of Components Of Debt (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Jul. 21, 2015 | Dec. 30, 2014 | Jul. 25, 2012 | Jun. 27, 2012 | Aug. 25, 2010 | |
Debt Instrument [Line Items] | |||||||
Total debt | $ 814,136,000 | $ 785,078,000 | |||||
Less current portion | 1,191,000 | 12,349,000 | |||||
Total long-term debt | 812,945,000 | 772,729,000 | |||||
Deferred Finance Costs, Noncurrent, Net | 9,500,000 | 9,400,000 | |||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 643,186,000 | ||||||
Senior Notes [Member] | $400 Million Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 394,618,000 | $ 393,961,000 | |||||
Debt instrument, face amount | $ 400,000,000 | ||||||
Debt instrument effective interest rate | 6.00% | 6.00% | 6.00% | ||||
Deferred Finance Costs, Noncurrent, Net | $ 5,400,000 | $ 6,000,000 | |||||
Senior Notes [Member] | $250 Million Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 248,568,000 | $ 248,262,000 | |||||
Debt instrument, face amount | $ 250,000,000 | ||||||
Debt instrument effective interest rate | 6.19% | 6.19% | 6.19% | ||||
Debt Instrument, Unamortized Discount and Deferred Finance Costs, Noncurrent, Net | $ 1,400,000 | $ 1,700,000 | |||||
Senior Secured Credit Facility [Member] | $350 Million Senior Secured Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 0 | $ 127,435,000 | |||||
Debt instrument, face amount | $ 350,000,000 | ||||||
Debt instrument effective interest rate | 2.17% | ||||||
Deferred Finance Costs, Noncurrent, Net | $ 1,900,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 156,025,000 | ||||||
Revolving Credit Facility [Member] | $450 Million Unsecured Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 156,025,000 | 0 | |||||
Debt instrument, face amount | $ 450,000,000 | ||||||
Debt instrument effective interest rate | 1.87% | ||||||
Deferred Finance Costs, Noncurrent, Net | $ 3,000,000 | ||||||
Collateralized Mortgage [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | 10,048,000 | 10,667,000 | |||||
Debt instrument, fair value adjustment | $ 900,000 | $ 1,200,000 | $ 1,200,000 | ||||
Debt instrument effective interest rate | 4.57% | 4.57% | |||||
Economic Development Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 3,712,000 | $ 3,536,000 | |||||
Debt instrument effective interest rate | 3.00% | 3.00% | |||||
Capital Lease Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 430,000 | $ 1,149,000 | |||||
Capital Lease Obligation Maturity Year | 2,016 | 2,016 | |||||
Debt instrument effective interest rate | 3.18% | 3.18% | |||||
Other Notes Payable [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 735,000 | $ 68,000 |
Debt - Maturities Of Debt (Deta
Debt - Maturities Of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 1,355 | |
2,017 | 652 | |
2,018 | 588 | |
2,019 | 498 | |
2,020 | 412,877 | |
Thereafter | 398,330 | |
Total payments | 814,300 | |
Less: Amount representing estimated executory costs | (159) | |
Less: Amounts representing interest | (5) | |
Total debt | 814,136 | $ 785,078 |
Senior Notes [Member] | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 248,568 | |
Thereafter | 394,618 | |
Total payments | 643,186 | |
Less: Amount representing estimated executory costs | 0 | |
Less: Amounts representing interest | 0 | |
Total debt | 643,186 | |
Capital Lease [Member] | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | 594 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total payments | 594 | |
Less: Amount representing estimated executory costs | (159) | |
Less: Amounts representing interest | (5) | |
Total debt | 430 | $ 1,149 |
Revolving Credit Facilities [Member] | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 156,025 | |
Thereafter | 0 | |
Total payments | 156,025 | |
Less: Amount representing estimated executory costs | 0 | |
Less: Amounts representing interest | 0 | |
Total debt | 156,025 | |
Other Notes Payable [Member] | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | 761 | |
2,017 | 652 | |
2,018 | 588 | |
2,019 | 498 | |
2,020 | 8,284 | |
Thereafter | 3,712 | |
Total payments | 14,495 | |
Less: Amount representing estimated executory costs | 0 | |
Less: Amounts representing interest | 0 | |
Total debt | $ 14,495 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 21, 2015USD ($) | Aug. 23, 2012USD ($) | Jun. 27, 2012USD ($) | Aug. 25, 2010USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 30, 2014USD ($) | Apr. 30, 2013USD ($) | Jul. 25, 2012USD ($) |
Debt Instrument [Line Items] | |||||||||
Outstanding debt | $ 814,136,000 | $ 785,078,000 | |||||||
2012 Special Cash Dividend [Member] | 2012 Special Cash Dividend [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Payments of special dividends | $ 600,700,000 | ||||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding debt | 643,186,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding debt | $ 156,025,000 | ||||||||
Economic Development Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument stated interest rate | 3.00% | ||||||||
Debt instrument effective interest rate | 3.00% | 3.00% | |||||||
Outstanding debt | $ 3,712,000 | $ 3,536,000 | |||||||
Economic development agreements - total advances agreed upon | $ 4,400,000 | ||||||||
Economic development agreements - advances received | 3,700,000 | ||||||||
Economic development agreements - advances not yet received | $ 700,000 | ||||||||
Economic development agreements - measurement frequency | annually | ||||||||
Economic development agreements - term | 10 years | ||||||||
Collateralized Mortgage [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument stated interest rate | 7.26% | ||||||||
Debt instrument effective interest rate | 4.57% | 4.57% | |||||||
Outstanding debt | $ 10,048,000 | $ 10,667,000 | |||||||
Mortgage obligation | $ 9,500,000 | ||||||||
Debt instrument, future balloon payment | 6,900,000 | ||||||||
Debt instrument, unamortized premium | $ 900,000 | $ 1,200,000 | $ 1,200,000 | ||||||
$400 Million Senior Notes [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument issuance date | Jun. 27, 2012 | ||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||
Debt instrument stated interest rate | 5.75% | ||||||||
Debt instrument effective interest rate | 6.00% | 6.00% | 6.00% | ||||||
Debt instrument maturity date | Jul. 1, 2022 | ||||||||
Debt instrument payment frequency | semi-annually | ||||||||
Outstanding debt | $ 394,618,000 | $ 393,961,000 | |||||||
$400 Million Senior Notes [Member] | Senior Notes [Member] | Debt Instrument Redemption [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, percentage of principal amount to be redeemed | 100.00% | ||||||||
$400 Million Senior Notes [Member] | Senior Notes [Member] | Debt Instrument Redemption [Domain] | Treasury Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description of variable rate basis | Treasury Rate | ||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||
$400 Million Senior Notes [Member] | Senior Notes [Member] | 2012 Special Cash Dividend [Member] | 2012 Special Cash Dividend [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Special dividend payment date | Aug. 23, 2012 | ||||||||
$250 Million Senior Notes [Member] | Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument issuance date | Aug. 25, 2010 | ||||||||
Debt instrument, face amount | $ 250,000,000 | ||||||||
Debt instrument stated interest rate | 5.70% | ||||||||
Debt instrument effective interest rate | 6.19% | 6.19% | 6.19% | ||||||
Debt instrument maturity date | Aug. 28, 2020 | ||||||||
Debt instrument payment frequency | semi-annually | ||||||||
Senior notes, discount | $ 600,000 | ||||||||
Outstanding debt | $ 248,568,000 | $ 248,262,000 | |||||||
$250 Million Senior Notes [Member] | Senior Notes [Member] | Debt Instrument Redemption [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, percentage of principal amount to be redeemed | 100.00% | ||||||||
$250 Million Senior Notes [Member] | Senior Notes [Member] | Debt Instrument Redemption [Domain] | Treasury Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description of variable rate basis | Treasury Rate | ||||||||
Debt instrument, basis spread on variable rate | 0.45% | ||||||||
$200 Million Revolver [Member] | Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit maximum borrowing capacity | $ 200,000,000 | ||||||||
$150 Million Term Loan [Member] | Term Loan, Long-term [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 150,000,000 | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 450,000,000 | ||||||||
Debt instrument effective interest rate | 1.87% | ||||||||
Debt instrument maturity date | Jul. 21, 2020 | ||||||||
Debt instrument, extension, term | 1 year | ||||||||
Debt instrument additional borrowing capacity | $ 150,000,000 | ||||||||
Credit facility, unused capacity, commitment fee percentage | 0.20% | ||||||||
Outstanding debt | $ 156,025,000 | $ 0 | |||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total leverage ratio (not more than) | 4.5 | ||||||||
Credit facility, commitment fee percentage | 0.25% | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total leverage ratio (not more than) | 4 | ||||||||
Fixed charge coverage ratio (not less than) | 2.5 | ||||||||
Credit facility, commitment fee percentage | 0.10% | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description of variable rate basis | LIBOR | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.35% | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, description of variable rate basis | base rate | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.35% | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Total Leverage Ratio exceeds 4.00 to 1.00 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, dividend restrictions | $ 50,000,000 | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Long-term Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance cost | 3,200,000 | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Swingline Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit maximum borrowing capacity | 15,000,000 | ||||||||
$450 Million Unsecured Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Alternative Currency Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit maximum borrowing capacity | $ 35,000,000 |
Non-Qualified Retirement, Sav88
Non-Qualified Retirement, Savings and Investment Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)plan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule of Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | |||
Number of non-qualified retirement savings and investment plans | plan | 2 | ||
Deferred compensation liability, current and long-term | $ 23 | $ 24.6 | |
Increase (decrease) in compensation expense | (0.2) | 0.1 | $ 2.6 |
Deferred Compensation Plan Assets | 17.8 | 17.8 | |
Restricted Investments, Current | 0.2 | ||
Investment gains (losses) | $ (0.5) | (0.4) | $ 1.6 |
Common stock held by non-qualified plan | $ 1.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule Of Fair Value Of Assets (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Assets measured at fair value | $ 67,850 | $ 67,754 | |
Money Market Funds [Member] | Cash and cash equivalents [Member] | |||
Assets | |||
Money market funds, included in cash and cash equivalents, fair value | 50,001 | 50,001 | |
Money Market Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 1,307 | 1,348 |
Mutual Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 16,542 | 16,405 |
Fair Value, Level 1 [Member] | |||
Assets | |||
Assets measured at fair value | 16,542 | 16,405 | |
Fair Value, Level 1 [Member] | Money Market Funds [Member] | Cash and cash equivalents [Member] | |||
Assets | |||
Money market funds, included in cash and cash equivalents, fair value | 0 | 0 | |
Fair Value, Level 1 [Member] | Money Market Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 0 | 0 |
Fair Value, Level 1 [Member] | Mutual Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 16,542 | 16,405 |
Fair Value, Level 2 [Member] | |||
Assets | |||
Assets measured at fair value | 51,308 | 51,349 | |
Fair Value, Level 2 [Member] | Money Market Funds [Member] | Cash and cash equivalents [Member] | |||
Assets | |||
Money market funds, included in cash and cash equivalents, fair value | 50,001 | 50,001 | |
Fair Value, Level 2 [Member] | Money Market Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 1,307 | 1,348 |
Fair Value, Level 2 [Member] | Mutual Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 0 | 0 |
Fair Value, Level 3 [Member] | |||
Assets | |||
Assets measured at fair value | 0 | 0 | |
Fair Value, Level 3 [Member] | Money Market Funds [Member] | Cash and cash equivalents [Member] | |||
Assets | |||
Money market funds, included in cash and cash equivalents, fair value | 0 | 0 | |
Fair Value, Level 3 [Member] | Money Market Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | 0 | 0 |
Fair Value, Level 3 [Member] | Mutual Funds [Member] | Investments, employee benefit plans, at fair value [Member] | |||
Assets | |||
Mutual funds and money market funds, fair value | [1] | $ 0 | $ 0 |
[1] | Included in Investments, employee benefit plans at fair value on consolidated balance sheets. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 27, 2012 | Aug. 25, 2010 | |
Fair Value, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan, Transfers Between Measurement Levels | $ 0 | $ 0 | ||
Fair Value, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan, Transfers Between Measurement Levels | 0 | 0 | ||
Fair Value, Level 2 [Member] | $250 Million Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument, fair value | 267,700,000 | 268,900,000 | ||
Fair Value, Level 2 [Member] | $400 Million Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument, fair value | 432,000,000 | 437,700,000 | ||
Fair Value, Level 2 [Member] | Senior Notes [Member] | $250 Million Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument, face amount | $ 250,000,000 | |||
Fair Value, Level 2 [Member] | Senior Notes [Member] | $400 Million Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument, face amount | $ 400,000,000 | |||
Fair Value, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Defined Benefit Plan, Transfers Between Measurement Levels | $ 0 | $ 0 |
401(k) Retirement Plan (Details
401(k) Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
401 K Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Compensation expense | $ 4.9 | $ 3.5 | $ 3.7 |
Income Taxes - Pretax Income (D
Income Taxes - Pretax Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | |||||||||||
Income from continuing operations before income taxes | $ 37,804 | $ 62,268 | $ 52,879 | $ 31,034 | $ 36,038 | $ 55,958 | $ 50,234 | $ 31,528 | $ 183,985 | $ 173,758 | $ 158,672 |
U.S. [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Income from continuing operations before income taxes | 151,209 | 138,616 | 122,517 | ||||||||
Outside the U.S. [Member] | |||||||||||
Income Tax Disclosure [Line Items] | |||||||||||
Income from continuing operations before income taxes | $ 32,776 | $ 35,142 | $ 36,155 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense | |||
Federal | $ 50,794 | $ 67,985 | $ 46,925 |
State | 5,476 | 6,278 | 4,891 |
Foreign | 592 | 1,689 | 1,914 |
Deferred tax (benefit) expense | |||
Federal | (112) | (21,398) | (7,011) |
State | (737) | (2,116) | (635) |
Foreign | (57) | (153) | (762) |
Income taxes | $ 55,956 | $ 52,285 | $ 45,322 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets [Line Items] | ||
Property, equipment and intangible assets | $ (8,899) | $ (8,687) |
Accrued compensation | 16,274 | 15,124 |
Accrued expenses | 35,415 | 35,023 |
Foreign operations | (868) | 790 |
Foreign net operating losses | 1,897 | 1,800 |
Deferred tax asset on unrecognized tax positions | 1,200 | 1,283 |
Other | (1,555) | 1,026 |
Net deferred tax assets | 41,928 | 44,406 |
Foreign Operations [Member] | ||
Deferred Tax Assets [Line Items] | ||
Valuation allowance, foreign | (153) | (153) |
Foreign Net Operating Losses [Member] | ||
Deferred Tax Assets [Line Items] | ||
Valuation allowance, foreign | $ (1,383) | $ (1,800) |
Income Taxes - Net Deferred T95
Income Taxes - Net Deferred Tax Assets Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Non-current net deferred tax assets | $ 42,434 | $ 44,406 |
Non-current net deferred tax liabilities | (506) | 0 |
Net deferred tax assets | $ 41,928 | $ 44,406 |
Income Taxes - Effective Rate (
Income Taxes - Effective Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 1.70% | 1.60% | 1.60% |
Benefits and taxes related to foreign operations | (6.20%) | (6.20%) | (7.20%) |
Unrecognized tax positions | (0.20%) | (0.40%) | (0.20%) |
Other | 0.10% | 0.10% | (0.60%) |
Effective income tax rates | 30.40% | 30.10% | 28.60% |
Income Taxes - Tax Contingency
Income Taxes - Tax Contingency (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 3,395 | $ 4,047 | $ 4,415 |
Changes for tax positions of prior years | 116 | 5 | 503 |
Increases for tax positions related to the current year | 772 | 1,201 | 1,164 |
Settlements and lapsing of statutes of limitations | (1,146) | (1,858) | (2,035) |
Balance, December 31 | $ 3,137 | $ 3,395 | $ 4,047 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rates | 30.40% | 30.10% | 28.60% | |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | $ 3,137 | $ 3,395 | $ 4,047 | $ 4,415 |
Unrecognized tax benefits, impact on effective tax rate | 1,900 | |||
Settlements and lapsing of statutes of limitations within the next 12 months | 3,100 | |||
Income tax penalties and interest accrued | 500 | $ 700 | ||
Undistributed earnings of foreign subsidiaries | 237,500 | |||
Discontinued operations [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rates | 37.10% | 37.10% | ||
Foreign Operations [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign net operating loss carryforwards | 6,500 | |||
Valuation allowance on foreign net operating loss carryforwards | 4,400 | |||
Valuation allowance on foreign deferred tax assets | 500 | |||
Expiring Tax Period Between 2019 and 2024 [Member] | Foreign Operations [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Foreign net operating loss carryforwards | $ 3,000 |
Share-Based Compensation and 99
Share-Based Compensation and Capital Stock - Weighted Average Assumptions Of Black-Scholes Option-Pricing Model (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.45% | 1.56% | 0.73% |
Dividend yield | 1.23% | 1.62% | 2.01% |
Weighted average fair value of options granted (in dollars per share) | $ 12.39 | $ 8.82 | $ 9.89 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 23.94% | 25.01% | 38.14% |
Expected life of stock option | 4 years 7 months 6 days | 4 years 6 months | 4 years 6 months |
Requisite service period | 4 years | 4 years | 4 years |
Contractual life | 7 years | 7 years | 7 years |
Share-Based Compensation and100
Share-Based Compensation and Capital Stock - Range Of Exercise Prices (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 2,084,201 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 11 months 13 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 41.36 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 991,202 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 29.57 |
Range 1 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 0 |
Exercise price range, upper range limit (in dollars per share) | $ 24.37 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 200,311 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 months 1 day |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 20.58 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 200,311 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 20.58 |
Range 2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 24.38 |
Exercise price range, upper range limit (in dollars per share) | $ 29.25 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 439,160 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 11 months 15 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 25.69 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 390,784 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 25.53 |
Range 3 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 29.26 |
Exercise price range, upper range limit (in dollars per share) | $ 34.12 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 163,058 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 1 month 20 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 31.31 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 163,058 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 31.31 |
Range 4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 34.13 |
Exercise price range, upper range limit (in dollars per share) | $ 39 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 161,616 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 1 month 9 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 36.76 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 79,621 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 36.76 |
Range 5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 39.01 |
Exercise price range, upper range limit (in dollars per share) | $ 43.87 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 0 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 0 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Range 6 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 43.88 |
Exercise price range, upper range limit (in dollars per share) | $ 48.75 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 633,730 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 2 months 26 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 45.59 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 157,428 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 45.59 |
Range 7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit (in dollars per share) | 48.76 |
Exercise price range, upper range limit (in dollars per share) | $ 65 |
Options Outstanding, Number Outstanding at December 31, 2014 | shares | 486,326 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 1 month 27 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 63.47 |
Options Exercisable, Number Exercisable at December 31, 2014 | shares | 0 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Share-Based Compensation and101
Share-Based Compensation and Capital Stock - Summary Of Activity Related To Restricted Stock Grants (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted | 125,510 | 154,833 | 225,240 |
Weighted average grant date fair value (in dollars per share) | $ 61.41 | $ 46.81 | $ 37.74 |
Aggregate grant date fair value | $ 7,707 | $ 7,248 | $ 8,500 |
Restricted shares forfeited | 19,833 | 23,804 | 40,552 |
Fair value of shares vested | $ 12,311 | $ 10,280 | $ 8,569 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting service period of shares granted | 12 months | 12 months | 12 months |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting service period of shares granted | 48 months | 48 months | 48 months |
Share-Based Compensation and102
Share-Based Compensation and Capital Stock - Summary Of Activity Related To PVRSU Grants (Details) - Performance Vested Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vested restricted stock units granted at target | 71,006 | 24,678 | 80,184 |
Weighted average grant date fair value (in dollars per share) | $ 58.12 | $ 45.59 | $ 39.48 |
Aggregate grant date fair value | $ 4,127 | $ 1,125 | $ 3,165 |
Stock units forfeited (in shares) | 6,079 | 22,099 | 3,334 |
Requisite service period | 36 months | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 36 months | 22 months | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 43 months | 38 months |
Share-Based Compensation and103
Share-Based Compensation and Capital Stock - Summary of Change in Stock-Based Award Activity (Details) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding at January 1 - Shares | 1,903,177 | 1,661,952 | 1,934,034 | |||
Granted - Shares | 498,911 | 651,757 | 173,413 | |||
Exercised - Shares | (295,037) | (390,290) | (347,180) | |||
Expired - Shares | 0 | 0 | (75,473) | |||
Forfeited - Shares | (22,850) | (20,242) | (22,842) | |||
Outstanding at December 31 - Shares | 2,084,201 | 1,903,177 | 1,661,952 | |||
Options Exercisable at December 31 - Shares | 991,202 | 995,173 | 1,181,374 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Outstanding at January 1 - Weighted average exercise price (in dollars per share) | $ 33.03 | $ 26.44 | $ 25.80 | |||
Granted - Weighted average exercise price (in dollars per share) | 63.47 | 45.59 | 36.76 | |||
Exercised - Weighted average exercise price (in dollars per share) | 23.91 | 25.87 | 25.54 | |||
Expired - Weighted average exercise price (in dollars per share) | 0 | 0 | 36.99 | |||
Forfeited - Weighted average exercise price (in dollars per share) | 55.44 | 34.33 | 28.94 | |||
Outstanding at December 31 - Weighted average exercise price (in dollars per share) | 41.36 | 33.03 | 26.44 | |||
Options Exercisable at December 31 - Weighted average exercise price (in dollars per share) | $ 29.57 | $ 25.06 | $ 24.61 | |||
Weighted Average Remaining Contractual Life - Options Outstanding at December 31 | 3 years 11 months 13 days | 3 years 9 months 18 days | 3 years | |||
Weighted Average Remaining Contractual Life - Options Exercisable at December 31 | 2 years 3 months 4 days | 2 years | 2 years 2 months 12 days | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding at January 1 - Shares | 479,556 | 563,345 | 606,547 | |||
Granted - Shares | 125,510 | 154,833 | 225,240 | |||
Vested - Shares | (200,743) | (214,818) | (227,890) | |||
Forfeited - Shares | (19,833) | (23,804) | (40,552) | |||
Outstanding at December 31 - Shares | 384,490 | 479,556 | 563,345 | |||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Outstanding at January 1 - Weighted average grant date fair value (in dollars per share) | $ 40.14 | $ 36.64 | $ 35.17 | |||
Weighted average grant date fair value (in dollars per share) | 61.41 | 46.81 | 37.74 | |||
Vested - Weighted average grant date fair value (in dollars per share) | 38.94 | 35.91 | 33.94 | |||
Forfeited - Weighted average grant date fair value (in dollars per share) | 46.17 | 38.97 | 35.85 | |||
Outstanding at December 31 - Weighted average grant date fair value (in dollars per share) | $ 47.40 | $ 40.14 | $ 36.64 | |||
Performance Vested Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Outstanding at January 1 - Shares | 200,286 | 216,342 | 170,116 | |||
Granted - Shares | 71,006 | 24,678 | 80,184 | |||
Performance-Based Leveraging - Shares | 3,850 | [1] | 10,251 | [2] | 9,192 | [3] |
Vested - Shares | (42,326) | (28,886) | (39,816) | |||
Forfeited - Shares | (6,079) | (22,099) | (3,334) | |||
Outstanding at December 31 - Shares | 226,737 | 200,286 | 216,342 | |||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Outstanding at January 1 - Weighted average grant date fair value (in dollars per share) | $ 38.28 | $ 37.34 | $ 35.56 | |||
Weighted average grant date fair value (in dollars per share) | 58.12 | 45.59 | 39.48 | |||
Performance-Based Leveraging - Weighted average grant date fair value (in dollars per share) | 35.60 | 41.25 | 32.60 | |||
Vested - Weighted average grant date fair value (in dollars per share) | 35.60 | 41.25 | 32.60 | |||
Forfeited - Weighted average grant date fair value (in dollars per share) | 32.90 | 34.77 | 41.25 | |||
Outstanding at December 31 - Weighted average grant date fair value (in dollars per share) | $ 45.09 | $ 38.28 | $ 37.34 | |||
[1] | PVRSU units outstanding have been increased by 3,850 units during the year ended December 31, 2015, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods | |||||
[2] | PVRSU units outstanding have been increased by 10,251 units during the year ended December 31, 2014, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. | |||||
[3] | PVRSU units outstanding have been increased by 9,192 units during the year ended December 31, 2013, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. |
Share-Based Compensation and104
Share-Based Compensation and Capital Stock - Pretax Stock-Based Compensation Expenses And Associated Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pretax stock-based compensation expense | $ 12.1 | $ 9.4 | $ 11.5 |
Income tax benefits | 4.5 | 3.5 | 4.2 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pretax stock-based compensation expense | 3.4 | 2.4 | 1.8 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pretax stock-based compensation expense | 6.8 | 7.2 | 7.5 |
Performance Vested Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pretax stock-based compensation expense | $ 1.9 | $ (0.2) | $ 2.2 |
Share-Based Compensation and105
Share-Based Compensation and Capital Stock - Unrecognized Compensation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 23.9 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 8.3 |
Weighted Average Remaining Amortization Period | 2 years 8 months 19 days |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 11.9 |
Weighted Average Remaining Amortization Period | 2 years 4 months 20 days |
Performance Vested Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense on Unvested Awards | $ 3.7 |
Weighted Average Remaining Amortization Period | 2 years 4 months 2 days |
Share-Based Compensation and106
Share-Based Compensation and Capital Stock - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2014shares | Oct. 31, 2005 | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2014$ / shares | Sep. 30, 2014$ / shares | Jun. 30, 2014$ / shares | Mar. 31, 2014$ / shares | Dec. 31, 2013$ / shares | Sep. 30, 2013$ / shares | Jun. 30, 2013$ / shares | Mar. 31, 2013$ / shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Dividends declared | $ 45,531 | $ 43,784 | $ 43,212 | ||||||||||||||||||
Number of shares authorized | shares | 7,600,000 | 7,600,000 | 7,600,000 | ||||||||||||||||||
Number of shares available for grant | shares | 2,100,000 | 2,100,000 | 2,100,000 | ||||||||||||||||||
Options granted, shares | shares | 498,911 | 651,757 | 173,413 | ||||||||||||||||||
Options granted, fair value | $ 6,200 | $ 5,700 | $ 1,700 | ||||||||||||||||||
Aggregate intrinsic value of stock, options, outstanding | $ 25,200 | 25,200 | $ 25,200 | ||||||||||||||||||
Aggregate intrinsic value of the stock options, exercisable | $ 20,700 | 20,700 | $ 20,700 | ||||||||||||||||||
Total intrinsic value of options exercised | 10,500 | 10,100 | 5,200 | ||||||||||||||||||
Proceeds from exercise of stock options | $ 7,056 | $ 10,098 | $ 8,864 | ||||||||||||||||||
Stock options exercised | shares | 295,037 | 390,290 | 347,180 | ||||||||||||||||||
Stock-based compensation expense | $ 12,100 | $ 9,400 | $ 11,500 | ||||||||||||||||||
Stock repurchased during period, shares | shares | 1,300,000 | 0 | 48,100,000 | ||||||||||||||||||
Common stock purchased under stock repurchase program, value | $ 66,400 | $ 1,200,000 | |||||||||||||||||||
Common stock split, conversion ratio | 2 | ||||||||||||||||||||
Shares paid for tax withholding for share-based compensation | shares | 106,405 | 110,579 | 103,880 | ||||||||||||||||||
Payments related to tax withholding for share-based compensation | $ 6,400 | $ 5,300 | $ 4,000 | ||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Frequency of dividend payments | quarterly | ||||||||||||||||||||
Common Stock Dividends, periodic payment, Per Share | $ / shares | $ 0.205 | ||||||||||||||||||||
Annual amount, per share, of dividends declared (in dollars per share) | $ / shares | $ 0.205 | $ 0.195 | $ 0.195 | $ 0.195 | $ 0.195 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.79 | $ 0.75 | $ 0.74 | ||||||
Dividends declared | $ 45,100 | $ 43,400 | $ 42,700 | ||||||||||||||||||
Decrease to shares outstanding, reconciliation | shares | 300,000 | 341,278 | |||||||||||||||||||
Prior To Stock Split [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock repurchased during period, shares | shares | 33,000,000 | ||||||||||||||||||||
Family Member(s) of Largest Shareholder [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock repurchased during period, shares | shares | 1,400,000 | ||||||||||||||||||||
Common stock purchased under stock repurchase program, value | $ 72,600 | ||||||||||||||||||||
Performance Vested Restricted Stock Units [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Dividends declared | $ 500 | $ 400 | $ 500 | ||||||||||||||||||
Grants vested (shares) | shares | 42,326 | 28,886 | 39,816 | ||||||||||||||||||
Grant date fair value of shares vested | $ 1,500 | $ 1,400 | $ 1,500 | ||||||||||||||||||
Grants vested, initial target (shares) | shares | 38,476 | 18,635 | 30,624 | ||||||||||||||||||
Grants vested, percentage | 110.00% | 155.00% | 130.00% | ||||||||||||||||||
Performance-based leveraging (in shares) | shares | 3,850 | [1] | 10,251 | [2] | 9,192 | [3] | |||||||||||||||
Stock units forfeited (in shares) | shares | 6,079 | 22,099 | 3,334 | ||||||||||||||||||
Stock-based compensation expense | $ 1,900 | $ (200) | $ 2,200 | ||||||||||||||||||
Performance Vested Restricted Stock Units [Member] | Adjustment [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Stock-based compensation expense | $ 300 | $ (1,300) | $ (300) | ||||||||||||||||||
Performance Vested Restricted Stock Units [Member] | Minimum [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting range | 0.00% | ||||||||||||||||||||
Vesting percentage for stock-based award target achievement | 0.00% | ||||||||||||||||||||
Performance Vested Restricted Stock Units [Member] | Maximum [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting range | 200.00% | ||||||||||||||||||||
Vesting percentage for stock-based award target achievement | 200.00% | ||||||||||||||||||||
[1] | PVRSU units outstanding have been increased by 3,850 units during the year ended December 31, 2015, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods | ||||||||||||||||||||
[2] | PVRSU units outstanding have been increased by 10,251 units during the year ended December 31, 2014, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. | ||||||||||||||||||||
[3] | PVRSU units outstanding have been increased by 9,192 units during the year ended December 31, 2013, due to the Company exceeding the targeted performance conditions contained in PVRSU's granted in prior periods. |
Accumulated Other Comprehens107
Accumulated Other Comprehensive Loss - Components Of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments | $ (4,756) | $ (2,087) | $ (472) |
Deferred loss on cash flow hedge | (4,022) | (4,884) | (5,745) |
Total accumulated other comprehensive loss | $ (8,778) | $ (6,971) | $ (6,217) |
Accumulated Other Comprehens108
Accumulated Other Comprehensive Loss - Narrative (Details) - Interest Rate Swap [Member] - USD ($) | 1 Months Ended | |
Aug. 31, 2010 | Jul. 31, 2010 | |
Derivative [Line Items] | ||
Debt instrument, face amount | $ 250,000,000 | |
Debt instrument, term | 10 years | |
Payment to settle interest rate swap agreement | $ 8,700,000 |
Accumulated Other Comprehens109
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (6,971) | $ (6,217) | |
Other comprehensive income (loss) before reclassification | (2,669) | (1,615) | $ (2,863) |
Amounts reclassified from accumulated other comprehensive income (loss) | 862 | 861 | 862 |
Net current period other comprehensive income (loss) | (1,807) | (754) | (2,001) |
Ending balance | (8,778) | (6,971) | (6,217) |
Loss on Cash Flow Hedge [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (4,884) | (5,745) | |
Other comprehensive income (loss) before reclassification | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 862 | 861 | |
Net current period other comprehensive income (loss) | 862 | 861 | |
Ending balance | (4,022) | (4,884) | (5,745) |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (2,087) | (472) | |
Other comprehensive income (loss) before reclassification | (2,669) | (1,615) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Net current period other comprehensive income (loss) | (2,669) | (1,615) | |
Ending balance | $ (4,756) | $ (2,087) | $ (472) |
Accumulated Other Comprehens110
Accumulated Other Comprehensive Loss - Reclassified From AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Loss on cash flow hedge, Interest expense | $ 862 | $ 861 | |
Loss on cash flow hedge, Tax (expense) benefit | 0 | 0 | |
Loss on cash flow hedge, Net of tax | $ 862 | $ 861 | $ 862 |
Earnings Per Share - Computatio
Earnings Per Share - Computation Of Basic And Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Earnings Per Share [Abstract] | |||||||||||||
Net income from continuing operations | $ 29,203 | $ 41,419 | $ 35,813 | $ 21,594 | $ 25,309 | $ 39,416 | $ 35,279 | $ 21,469 | $ 128,029 | $ 121,473 | $ 113,350 | ||
Net income from discontinued operations | 0 | 0 | 0 | 0 | (24) | (51) | 121 | 1,641 | 0 | 1,687 | 359 | ||
Net income | $ 29,203 | $ 41,419 | $ 35,813 | $ 21,594 | $ 25,285 | $ 39,365 | $ 35,400 | $ 23,110 | 128,029 | 123,160 | 113,709 | ||
Income allocated to participating securities | (889) | (1,075) | (1,127) | ||||||||||
Income allocated to participating securities | (884) | (1,069) | (1,122) | ||||||||||
Net income available to common shareholders | $ 127,140 | $ 122,085 | $ 112,582 | ||||||||||
Weighted average common shares outstanding -- basic | 56,814 | 57,730 | 57,925 | ||||||||||
Basic earnings per share, Continuing operations (in dollars per share) | $ 0.52 | $ 0.72 | $ 0.62 | $ 0.38 | $ 0.44 | $ 0.67 | $ 0.61 | $ 0.37 | $ 2.24 | [1] | $ 2.08 | [1] | $ 1.94 |
Basic earnings per share, Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | [1] | 0.03 | [1] | 0 |
Basic earnings per share (in dollars per share) | $ 2.24 | $ 2.11 | $ 1.94 | ||||||||||
Net income available to common shareholders | $ 127,145 | $ 122,091 | $ 112,587 | ||||||||||
Diluted effect of stock options and PVRSUs | 459 | 526 | 410 | ||||||||||
Weighted average commons shares outstanding -- diluted | 57,273 | 58,256 | 58,335 | ||||||||||
Diluted earnings per share, Continuing operations (in dollars per share) | 0.51 | 0.72 | 0.62 | 0.37 | 0.43 | 0.67 | 0.60 | 0.36 | $ 2.22 | [1] | $ 2.07 | [1] | $ 1.92 |
Diluted earnings per share, Discontinued operations (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.03 | 0 | [1] | 0.03 | [1] | 0.01 |
Diluted earnings per share (in dollars per share) | $ 2.22 | $ 2.10 | $ 1.93 | ||||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding stock options | 2,084,201 | 1,903,177 | 1,661,952 | 1,934,034 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive stock options excluded from EPS calculation | 500,000 | 0 | 0 | |
Performance Vested Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive stock excluded from EPS calculation due to performance conditions not met | 178,536 | 161,810 | 197,707 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Operating leases, rent expense | $ 10.5 | $ 10.4 | $ 12.6 |
Operating leases, sublease rentals | $ 0.3 | $ 0.4 | $ 0.3 |
Operating Leases - Future Minim
Operating Leases - Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Minimum lease payments, 2016 | $ 12,342 |
Minimum lease payments, 2017 | 11,670 |
Minimum lease payments, 2018 | 10,474 |
Minimum lease payments, 2019 | 9,697 |
Minimum lease payments, 2020 | 8,586 |
Minimum lease payments, Thereafter | 18,183 |
Minimum lease payments, Total | 70,952 |
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |
Minimum sublease rentals, 2016 | (231) |
Minimum sublease rentals, 2017 | (215) |
Minimum sublease rentals, 2018 | (222) |
Minimum sublease rentals, 2019 | (75) |
Minimum sublease rentals, 2020 | 0 |
Minimum sublease rentals, Thereafter | 0 |
Minimum sublease rentals, Total | (743) |
Future Minimum Lease Payments Net [Abstract] | |
Future minimum payments, net, 2016 | 12,111 |
Future minimum payments, net, 2017 | 11,455 |
Future minimum payments, net, 2018 | 10,252 |
Future minimum payments, net, 2019 | 9,622 |
Future minimum payments, net, 2020 | 8,586 |
Future minimum payments, net, Thereafter | 18,183 |
Future minimum payments, net, Total | $ 70,209 |
Condensed Consolidating Fina115
Condensed Consolidating Financial Statements - Narrative (Details) - $350 Million Senior Secured Credit Facility [Member] - Senior Secured Credit Facility [Member] - USD ($) | Jul. 21, 2015 | Jul. 25, 2012 |
Debt instrument, refinance date | Jul. 21, 2015 | |
Debt Instrument, Face Amount | $ 350,000,000 |
Condensed Consolidating Fina116
Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | |||||||||||
Royalty fees | $ 301,508 | $ 287,538 | $ 267,812 | ||||||||
Initial franchise and relicensing fees | 24,680 | 19,481 | 18,686 | ||||||||
Procurement services | 27,071 | 23,819 | 20,668 | ||||||||
Marketing and reservation | 488,763 | 412,619 | 407,633 | ||||||||
Other items | 17,856 | 14,513 | 9,851 | ||||||||
Total revenues | $ 210,951 | $ 241,526 | $ 232,156 | $ 175,245 | $ 185,402 | $ 215,168 | $ 197,664 | $ 159,736 | 859,878 | 757,970 | 724,650 |
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | 134,254 | 121,418 | 111,713 | ||||||||
Marketing and reservation | 488,763 | 412,619 | 407,633 | ||||||||
Depreciation and amortization | 11,542 | 9,365 | 9,056 | ||||||||
Total operating expenses | 634,559 | 543,402 | 528,402 | ||||||||
Operating income | 47,195 | 73,803 | 62,917 | 41,404 | 46,257 | 66,986 | 60,153 | 41,172 | 225,319 | 214,568 | 196,248 |
OTHER INCOME AND EXPENSES, NET: | |||||||||||
Interest expense | 42,833 | 41,486 | 42,537 | ||||||||
Other income and expenses, net | 41,334 | 40,810 | 37,576 | ||||||||
Income from continuing operations before income taxes | 37,804 | 62,268 | 52,879 | 31,034 | 36,038 | 55,958 | 50,234 | 31,528 | 183,985 | 173,758 | 158,672 |
Income taxes | 55,956 | 52,285 | 45,322 | ||||||||
Income from continuing operations, net of income taxes | 29,203 | 41,419 | 35,813 | 21,594 | 25,309 | 39,416 | 35,279 | 21,469 | 128,029 | 121,473 | 113,350 |
Income from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | (24) | (51) | 121 | 1,641 | 0 | 1,687 | 359 |
Net income | $ 29,203 | $ 41,419 | $ 35,813 | $ 21,594 | $ 25,285 | $ 39,365 | $ 35,400 | $ 23,110 | 128,029 | 123,160 | 113,709 |
Parent [Member] | |||||||||||
REVENUES: | |||||||||||
Royalty fees | 280,739 | 262,540 | 243,272 | ||||||||
Initial franchise and relicensing fees | 23,934 | 18,753 | 17,432 | ||||||||
Procurement services | 26,387 | 22,959 | 19,864 | ||||||||
Marketing and reservation | 446,358 | 367,726 | 362,459 | ||||||||
Other items | 13,744 | 13,758 | 8,834 | ||||||||
Total revenues | 791,162 | 685,736 | 651,861 | ||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | 154,591 | 137,759 | 128,966 | ||||||||
Marketing and reservation | 464,439 | 383,584 | 377,884 | ||||||||
Depreciation and amortization | 2,405 | 3,038 | 3,100 | ||||||||
Total operating expenses | 621,435 | 524,381 | 509,950 | ||||||||
Operating income | 169,727 | 161,355 | 141,911 | ||||||||
OTHER INCOME AND EXPENSES, NET: | |||||||||||
Interest expense | 42,276 | 41,454 | 42,418 | ||||||||
Equity in earnings of consolidated subsidiaries | (45,155) | (45,426) | (47,362) | ||||||||
Other items, net | (957) | (1,465) | (2,406) | ||||||||
Other income and expenses, net | (3,836) | (5,437) | (7,350) | ||||||||
Income from continuing operations before income taxes | 173,563 | 166,792 | 149,261 | ||||||||
Income taxes | 45,534 | 43,632 | 35,552 | ||||||||
Income from continuing operations, net of income taxes | 128,029 | 123,160 | 113,709 | ||||||||
Income from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | 128,029 | 123,160 | 113,709 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
REVENUES: | |||||||||||
Royalty fees | 134,944 | 121,295 | 112,215 | ||||||||
Initial franchise and relicensing fees | 0 | 0 | 0 | ||||||||
Procurement services | 0 | 23 | 0 | ||||||||
Marketing and reservation | 454,916 | 369,359 | 350,134 | ||||||||
Other items | 0 | 16 | 0 | ||||||||
Total revenues | 589,860 | 490,693 | 462,349 | ||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | 120,800 | 110,504 | 100,821 | ||||||||
Marketing and reservation | 437,378 | 354,342 | 336,498 | ||||||||
Depreciation and amortization | 7,595 | 5,679 | 5,087 | ||||||||
Total operating expenses | 565,773 | 470,525 | 442,406 | ||||||||
Operating income | 24,087 | 20,168 | 19,943 | ||||||||
OTHER INCOME AND EXPENSES, NET: | |||||||||||
Interest expense | 2 | 3 | 113 | ||||||||
Equity in earnings of consolidated subsidiaries | 373 | (765) | (288) | ||||||||
Other items, net | 198 | 567 | (1,532) | ||||||||
Other income and expenses, net | 573 | (195) | (1,707) | ||||||||
Income from continuing operations before income taxes | 23,514 | 20,363 | 21,650 | ||||||||
Income taxes | 10,351 | 7,922 | 8,897 | ||||||||
Income from continuing operations, net of income taxes | 13,163 | 12,441 | 12,753 | ||||||||
Income from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | 13,163 | 12,441 | 12,753 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
REVENUES: | |||||||||||
Royalty fees | 46,055 | 44,357 | 43,967 | ||||||||
Initial franchise and relicensing fees | 746 | 728 | 1,254 | ||||||||
Procurement services | 684 | 837 | 804 | ||||||||
Marketing and reservation | 15,827 | 18,783 | 19,327 | ||||||||
Other items | 4,203 | 739 | 1,017 | ||||||||
Total revenues | 67,515 | 65,444 | 66,369 | ||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | 19,184 | 13,809 | 13,568 | ||||||||
Marketing and reservation | 15,284 | 17,942 | 17,538 | ||||||||
Depreciation and amortization | 1,542 | 648 | 869 | ||||||||
Total operating expenses | 36,010 | 32,399 | 31,975 | ||||||||
Operating income | 31,505 | 33,045 | 34,394 | ||||||||
OTHER INCOME AND EXPENSES, NET: | |||||||||||
Interest expense | 555 | 29 | 6 | ||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other items, net | (740) | 222 | (1,023) | ||||||||
Other income and expenses, net | (185) | 251 | (1,017) | ||||||||
Income from continuing operations before income taxes | 31,690 | 32,794 | 35,411 | ||||||||
Income taxes | 71 | 731 | 873 | ||||||||
Income from continuing operations, net of income taxes | 31,619 | 32,063 | 34,538 | ||||||||
Income from discontinued operations, net of income taxes | 0 | 1,687 | 359 | ||||||||
Net income | 31,619 | 33,750 | 34,897 | ||||||||
Eliminations [Member] | |||||||||||
REVENUES: | |||||||||||
Royalty fees | (160,230) | (140,654) | (131,642) | ||||||||
Initial franchise and relicensing fees | 0 | 0 | 0 | ||||||||
Procurement services | 0 | 0 | 0 | ||||||||
Marketing and reservation | (428,338) | (343,249) | (324,287) | ||||||||
Other items | (91) | 0 | 0 | ||||||||
Total revenues | (588,659) | (483,903) | (455,929) | ||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | (160,321) | (140,654) | (131,642) | ||||||||
Marketing and reservation | (428,338) | (343,249) | (324,287) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Total operating expenses | (588,659) | (483,903) | (455,929) | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
OTHER INCOME AND EXPENSES, NET: | |||||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Equity in earnings of consolidated subsidiaries | 44,782 | 46,191 | 47,650 | ||||||||
Other items, net | 0 | 0 | 0 | ||||||||
Other income and expenses, net | 44,782 | 46,191 | 47,650 | ||||||||
Income from continuing operations before income taxes | (44,782) | (46,191) | (47,650) | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Income from continuing operations, net of income taxes | (44,782) | (46,191) | (47,650) | ||||||||
Income from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income | (44,782) | (46,191) | (47,650) | ||||||||
Consolidated [Member] | |||||||||||
REVENUES: | |||||||||||
Royalty fees | 301,508 | 287,538 | 267,812 | ||||||||
Initial franchise and relicensing fees | 24,680 | 19,481 | 18,686 | ||||||||
Procurement services | 27,071 | 23,819 | 20,668 | ||||||||
Marketing and reservation | 488,763 | 412,619 | 407,633 | ||||||||
Other items | 17,856 | 14,513 | 9,851 | ||||||||
Total revenues | 859,878 | 757,970 | 724,650 | ||||||||
OPERATING EXPENSES: | |||||||||||
Selling, general and administrative | 134,254 | 121,418 | 111,713 | ||||||||
Marketing and reservation | 488,763 | 412,619 | 407,633 | ||||||||
Depreciation and amortization | 11,542 | 9,365 | 9,056 | ||||||||
Total operating expenses | 634,559 | 543,402 | 528,402 | ||||||||
Operating income | 225,319 | 214,568 | 196,248 | ||||||||
OTHER INCOME AND EXPENSES, NET: | |||||||||||
Interest expense | 42,833 | 41,486 | 42,537 | ||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other items, net | (1,499) | (676) | (4,961) | ||||||||
Other income and expenses, net | 41,334 | 40,810 | 37,576 | ||||||||
Income from continuing operations before income taxes | 183,985 | 173,758 | 158,672 | ||||||||
Income taxes | 55,956 | 52,285 | 45,322 | ||||||||
Income from continuing operations, net of income taxes | 128,029 | 121,473 | 113,350 | ||||||||
Income from discontinued operations, net of income taxes | 0 | 1,687 | 359 | ||||||||
Net income | $ 128,029 | $ 123,160 | $ 113,709 |
Condensed Consolidating Fina117
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | $ 29,203 | $ 41,419 | $ 35,813 | $ 21,594 | $ 25,285 | $ 39,365 | $ 35,400 | $ 23,110 | $ 128,029 | $ 123,160 | $ 113,709 |
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 862 | 861 | 862 | ||||||||
Foreign currency translation adjustment | (2,669) | (1,615) | (2,863) | ||||||||
Other comprehensive income (loss), net of tax | (1,807) | (754) | (2,001) | ||||||||
Comprehensive income | 126,222 | 122,406 | 111,708 | ||||||||
Parent [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 128,029 | 123,160 | 113,709 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 862 | 861 | 862 | ||||||||
Foreign currency translation adjustment | (2,669) | (1,615) | (2,863) | ||||||||
Other comprehensive income (loss), net of tax | (1,807) | (754) | (2,001) | ||||||||
Comprehensive income | 126,222 | 122,406 | 111,708 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 13,163 | 12,441 | 12,753 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 0 | 0 | 0 | ||||||||
Foreign currency translation adjustment | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income | 13,163 | 12,441 | 12,753 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 31,619 | 33,750 | 34,897 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 0 | 0 | 0 | ||||||||
Foreign currency translation adjustment | (2,669) | (1,615) | (2,863) | ||||||||
Other comprehensive income (loss), net of tax | (2,669) | (1,615) | (2,863) | ||||||||
Comprehensive income | 28,950 | 32,135 | 32,034 | ||||||||
Eliminations [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | (44,782) | (46,191) | (47,650) | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 0 | 0 | 0 | ||||||||
Foreign currency translation adjustment | 2,669 | 1,615 | 2,863 | ||||||||
Other comprehensive income (loss), net of tax | 2,669 | 1,615 | 2,863 | ||||||||
Comprehensive income | (42,113) | (44,576) | (44,787) | ||||||||
Consolidated [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 128,029 | 123,160 | 113,709 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Amortization of loss on cash flow hedge | 862 | 861 | 862 | ||||||||
Foreign currency translation adjustment | (2,669) | (1,615) | (2,863) | ||||||||
Other comprehensive income (loss), net of tax | (1,807) | (754) | (2,001) | ||||||||
Comprehensive income | $ 126,222 | $ 122,406 | $ 111,708 |
Condensed Consolidating Fina118
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and cash equivalents | $ 193,441 | $ 214,879 | $ 167,795 | $ 134,177 |
Receivables, net | 89,352 | 91,681 | ||
Total current assets | 310,953 | 325,429 | ||
Property and equipment, at cost, net | 88,158 | 77,309 | ||
Goodwill | 79,327 | 65,813 | 65,813 | |
Franchise rights and other identifiable intangibles, net | 11,948 | 8,912 | ||
Notes receivable, net of allowances | 82,572 | 40,441 | ||
Investments, employee benefit plans, at fair value | 17,674 | 17,539 | ||
Deferred income taxes | 42,434 | 44,406 | ||
Other assets | 16,907 | 7,463 | ||
Total assets | 717,010 | 637,917 | 540,099 | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||
Accounts payable | 64,431 | 57,124 | ||
Accrued expenses and other current liabilities | 70,648 | 64,158 | ||
Deferred revenue | 71,587 | 66,382 | ||
Current portion of long-term debt | 1,191 | 12,349 | ||
Total current liabilities | 208,016 | 200,098 | ||
Long-term debt | 812,945 | 772,729 | ||
Deferred compensation & retirement plan obligations | 22,859 | 23,987 | ||
Other liabilities | 68,583 | 69,904 | ||
Total liabilities | 1,112,909 | 1,066,718 | ||
Total shareholders’ (deficit) equity | (395,899) | (428,801) | (452,871) | (538,638) |
Total liabilities and shareholders’ deficit | 717,010 | 637,917 | ||
Parent [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 13,529 | 25,290 | 9,785 | 8,420 |
Receivables, net | 79,381 | 82,195 | ||
Other current assets | 19,029 | 21,035 | ||
Total current assets | 111,939 | 128,520 | ||
Property and equipment, at cost, net | 37,857 | 25,300 | ||
Goodwill | 60,620 | 60,620 | ||
Franchise rights and other identifiable intangibles, net | 2,965 | 4,380 | ||
Notes receivable, net of allowances | 18,866 | 11,847 | ||
Investments, employee benefit plans, at fair value | 0 | 0 | ||
Investments in affiliates | 473,448 | 424,600 | ||
Advances to affiliates | 17,144 | 15,670 | ||
Deferred income taxes | 10,664 | 11,410 | ||
Other assets | 319 | 0 | ||
Total assets | 733,822 | 682,347 | ||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||
Accounts payable | 12,359 | 15,588 | ||
Accrued expenses and other current liabilities | 29,099 | 28,719 | ||
Deferred revenue | 8,749 | 8,467 | ||
Current portion of long-term debt | 0 | 11,250 | ||
Total current liabilities | 50,207 | 64,024 | ||
Long-term debt | 799,212 | 758,407 | ||
Deferred compensation & retirement plan obligations | 0 | 0 | ||
Advances from affiliates | 235,629 | 237,973 | ||
Other liabilities | 44,673 | 50,744 | ||
Total liabilities | 1,129,721 | 1,111,148 | ||
Total shareholders’ (deficit) equity | (395,899) | (428,801) | ||
Total liabilities and shareholders’ deficit | 733,822 | 682,347 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 19 | 25 | 19 | 20 |
Receivables, net | 1,132 | 1,194 | ||
Other current assets | 14,176 | 12,318 | ||
Total current assets | 15,327 | 13,537 | ||
Property and equipment, at cost, net | 33,575 | 37,675 | ||
Goodwill | 5,193 | 5,193 | ||
Franchise rights and other identifiable intangibles, net | 1,013 | 1,479 | ||
Notes receivable, net of allowances | 38,957 | 27,895 | ||
Investments, employee benefit plans, at fair value | 17,674 | 17,539 | ||
Investments in affiliates | 37,182 | 39,231 | ||
Advances to affiliates | 212,773 | 213,303 | ||
Deferred income taxes | 33,936 | 31,696 | ||
Other assets | 45,383 | 23,891 | ||
Total assets | 441,013 | 411,439 | ||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||
Accounts payable | 48,238 | 37,924 | ||
Accrued expenses and other current liabilities | 45,601 | 48,127 | ||
Deferred revenue | 61,890 | 57,339 | ||
Current portion of long-term debt | 430 | 718 | ||
Total current liabilities | 156,159 | 144,108 | ||
Long-term debt | 3,712 | 3,966 | ||
Deferred compensation & retirement plan obligations | 22,849 | 23,978 | ||
Advances from affiliates | 257 | 344 | ||
Other liabilities | 15,755 | 16,116 | ||
Total liabilities | 198,732 | 188,512 | ||
Total shareholders’ (deficit) equity | 242,281 | 222,927 | ||
Total liabilities and shareholders’ deficit | 441,013 | 411,439 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 179,893 | 189,564 | 157,991 | 125,737 |
Receivables, net | 8,992 | 8,292 | ||
Other current assets | 5,331 | 772 | ||
Total current assets | 194,216 | 198,628 | ||
Property and equipment, at cost, net | 16,726 | 14,334 | ||
Goodwill | 13,514 | 0 | ||
Franchise rights and other identifiable intangibles, net | 7,970 | 3,053 | ||
Notes receivable, net of allowances | 24,749 | 699 | ||
Investments, employee benefit plans, at fair value | 0 | 0 | ||
Investments in affiliates | 0 | 0 | ||
Advances to affiliates | 7,789 | 20,341 | ||
Deferred income taxes | 0 | 1,300 | ||
Other assets | 38,348 | 34,177 | ||
Total assets | 303,312 | 272,532 | ||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||
Accounts payable | 3,987 | 3,612 | ||
Accrued expenses and other current liabilities | 6,378 | 2,653 | ||
Deferred revenue | 1,053 | 576 | ||
Current portion of long-term debt | 761 | 381 | ||
Total current liabilities | 12,179 | 7,222 | ||
Long-term debt | 10,021 | 10,356 | ||
Deferred compensation & retirement plan obligations | 10 | 9 | ||
Advances from affiliates | 1,820 | 10,997 | ||
Other liabilities | 10,933 | 3,044 | ||
Total liabilities | 34,963 | 31,628 | ||
Total shareholders’ (deficit) equity | 268,349 | 240,904 | ||
Total liabilities and shareholders’ deficit | 303,312 | 272,532 | ||
Eliminations [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | (153) | 0 | ||
Other current assets | (10,376) | (15,256) | ||
Total current assets | (10,529) | (15,256) | ||
Property and equipment, at cost, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Franchise rights and other identifiable intangibles, net | 0 | 0 | ||
Notes receivable, net of allowances | 0 | 0 | ||
Investments, employee benefit plans, at fair value | 0 | 0 | ||
Investments in affiliates | (510,630) | (463,831) | ||
Advances to affiliates | (237,706) | (249,314) | ||
Deferred income taxes | (2,166) | 0 | ||
Other assets | (106) | 0 | ||
Total assets | (761,137) | (728,401) | ||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||
Accounts payable | (153) | 0 | ||
Accrued expenses and other current liabilities | (10,271) | (15,256) | ||
Deferred revenue | (105) | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | (10,529) | (15,256) | ||
Long-term debt | 0 | 0 | ||
Deferred compensation & retirement plan obligations | 0 | 0 | ||
Advances from affiliates | (237,706) | (249,314) | ||
Other liabilities | (2,272) | 0 | ||
Total liabilities | (250,507) | (264,570) | ||
Total shareholders’ (deficit) equity | (510,630) | (463,831) | ||
Total liabilities and shareholders’ deficit | (761,137) | (728,401) | ||
Consolidated [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 193,441 | 214,879 | $ 167,795 | $ 134,177 |
Receivables, net | 89,352 | 91,681 | ||
Other current assets | 28,160 | 18,869 | ||
Total current assets | 310,953 | 325,429 | ||
Property and equipment, at cost, net | 88,158 | 77,309 | ||
Goodwill | 79,327 | 65,813 | ||
Franchise rights and other identifiable intangibles, net | 11,948 | 8,912 | ||
Notes receivable, net of allowances | 82,572 | 40,441 | ||
Investments, employee benefit plans, at fair value | 17,674 | 17,539 | ||
Investments in affiliates | 0 | 0 | ||
Advances to affiliates | 0 | 0 | ||
Deferred income taxes | 42,434 | 44,406 | ||
Other assets | 83,944 | 58,068 | ||
Total assets | 717,010 | 637,917 | ||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||
Accounts payable | 64,431 | 57,124 | ||
Accrued expenses and other current liabilities | 70,807 | 64,243 | ||
Deferred revenue | 71,587 | 66,382 | ||
Current portion of long-term debt | 1,191 | 12,349 | ||
Total current liabilities | 208,016 | 200,098 | ||
Long-term debt | 812,945 | 772,729 | ||
Deferred compensation & retirement plan obligations | 22,859 | 23,987 | ||
Advances from affiliates | 0 | 0 | ||
Other liabilities | 69,089 | 69,904 | ||
Total liabilities | 1,112,909 | 1,066,718 | ||
Total shareholders’ (deficit) equity | (395,899) | (428,801) | ||
Total liabilities and shareholders’ deficit | $ 717,010 | $ 637,917 |
Condensed Consolidating Fina119
Condensed Consolidating Financial Statements - Condensed Consolidating Statement Of Cash Flows (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 159,872,000 | $ 183,891,000 | $ 153,913,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | (27,765,000) | (20,946,000) | (33,397,000) |
Acquisitions, net of cash acquired | (13,269,000) | 0 | 0 |
Proceeds from sale of assets | 6,347,000 | 15,612,000 | 243,000 |
Contributions to equity method investments | (23,737,000) | (17,789,000) | (5,685,000) |
Distributions from equity method investments | 518,000 | 0 | 0 |
Issuance of mezzanine and other notes receivable | (36,884,000) | (3,340,000) | (1,095,000) |
Collections of mezzanine and other notes receivable | 4,849,000 | 11,289,000 | 9,748,000 |
Purchases of investments, employee benefit plans | (3,220,000) | (2,794,000) | (2,676,000) |
Proceeds from sales of investments, employee benefit plans | 3,170,000 | 964,000 | 4,168,000 |
Other items, net | (9,819,000) | (642,000) | (728,000) |
Net cash provided from (used in) investing activities | (99,810,000) | (17,646,000) | (29,422,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) pursuant to revolving credit facilities | 158,867,000 | 0 | (57,000,000) |
Principal payments on long-term debt | (130,501,000) | (10,108,000) | (8,204,000) |
Proceeds from the issuance of long-term debt | 176,000 | 250,000 | 3,360,000 |
Purchase of treasury stock | (72,873,000) | (77,972,000) | (3,965,000) |
Excess tax benefits from stock-based compensation | 5,207,000 | 3,721,000 | 1,460,000 |
Proceeds from exercise of stock options | 7,056,000 | 10,098,000 | 8,864,000 |
Debt issuance costs | (2,169,000) | 0 | 0 |
Dividends paid | (45,214,000) | (43,529,000) | (32,799,000) |
Net cash provided from (used in) financing activities | (79,451,000) | (117,540,000) | (88,284,000) |
Net change in cash and cash equivalents | (19,389,000) | 48,705,000 | 36,207,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | (2,049,000) | (1,621,000) | (2,589,000) |
Cash and cash equivalents at beginning of period | 214,879,000 | 167,795,000 | 134,177,000 |
Cash and cash equivalents at end of period | 193,441,000 | 214,879,000 | 167,795,000 |
Parent [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 100,643,000 | 140,738,000 | 91,745,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | (20,242,000) | (11,234,000) | (5,167,000) |
Acquisitions, net of cash acquired | 0 | ||
Proceeds from sale of assets | 93,000 | 27,000 | |
Contributions to equity method investments | 0 | 0 | 0 |
Distributions from equity method investments | 0 | ||
Issuance of mezzanine and other notes receivable | (12,753,000) | (3,340,000) | (1,095,000) |
Collections of mezzanine and other notes receivable | 4,849,000 | 11,289,000 | 9,748,000 |
Purchases of investments, employee benefit plans | 0 | 0 | 0 |
Proceeds from sales of investments, employee benefit plans | 0 | 0 | 0 |
Advances to and investments in affiliates | 0 | (1,000,000) | (1,000,000) |
Divestment in affiliates | 0 | 0 | |
Other items, net | (889,000) | (496,000) | (485,000) |
Net cash provided from (used in) investing activities | (28,942,000) | (4,754,000) | 2,001,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) pursuant to revolving credit facilities | 159,000,000 | (57,000,000) | |
Principal payments on long-term debt | (129,374,000) | (9,375,000) | (7,500,000) |
Proceeds from the issuance of long-term debt | 0 | 0 | 0 |
Purchase of treasury stock | (72,873,000) | (77,972,000) | (3,965,000) |
Excess tax benefits from stock-based compensation | 112,000 | 299,000 | 19,000 |
Proceeds from exercise of stock options | 7,056,000 | 10,098,000 | 8,864,000 |
Debt issuance costs | (2,169,000) | ||
Proceeds from contributions from affiliates | 0 | 0 | 0 |
Distributions to affiliates | 0 | 0 | |
Dividends paid | (45,214,000) | (43,529,000) | (32,799,000) |
Net cash provided from (used in) financing activities | (83,462,000) | (120,479,000) | (92,381,000) |
Net change in cash and cash equivalents | (11,761,000) | 15,505,000 | 1,365,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 25,290,000 | 9,785,000 | 8,420,000 |
Cash and cash equivalents at end of period | 13,529,000 | 25,290,000 | 9,785,000 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 18,719,000 | 21,099,000 | 26,925,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | (6,952,000) | (9,134,000) | (27,863,000) |
Acquisitions, net of cash acquired | 0 | ||
Proceeds from sale of assets | 4,661,000 | 516,000 | |
Contributions to equity method investments | (22,205,000) | (11,390,000) | (2,401,000) |
Distributions from equity method investments | 0 | ||
Issuance of mezzanine and other notes receivable | 0 | 0 | 0 |
Collections of mezzanine and other notes receivable | 0 | 0 | 0 |
Purchases of investments, employee benefit plans | (3,220,000) | (2,794,000) | (2,676,000) |
Proceeds from sales of investments, employee benefit plans | 3,170,000 | 964,000 | 4,168,000 |
Advances to and investments in affiliates | (9,418,000) | (5,578,000) | (2,284,000) |
Divestment in affiliates | 10,735,000 | 3,426,000 | |
Other items, net | (49,000) | 0 | 0 |
Net cash provided from (used in) investing activities | (23,278,000) | (23,990,000) | (31,056,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) pursuant to revolving credit facilities | 0 | 0 | |
Principal payments on long-term debt | (718,000) | (701,000) | (671,000) |
Proceeds from the issuance of long-term debt | 176,000 | 176,000 | 3,360,000 |
Purchase of treasury stock | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 5,095,000 | 3,422,000 | 1,441,000 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Debt issuance costs | 0 | ||
Proceeds from contributions from affiliates | 0 | 0 | 0 |
Distributions to affiliates | 0 | 0 | |
Dividends paid | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | 4,553,000 | 2,897,000 | 4,130,000 |
Net change in cash and cash equivalents | (6,000) | 6,000 | (1,000) |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 25,000 | 19,000 | 20,000 |
Cash and cash equivalents at end of period | 19,000 | 25,000 | 19,000 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 41,167,000 | 22,711,000 | 36,813,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | (571,000) | (578,000) | (367,000) |
Acquisitions, net of cash acquired | (13,269,000) | ||
Proceeds from sale of assets | 1,593,000 | 15,069,000 | |
Contributions to equity method investments | (1,532,000) | (6,399,000) | (3,284,000) |
Distributions from equity method investments | 518,000 | ||
Issuance of mezzanine and other notes receivable | (24,131,000) | 0 | 0 |
Collections of mezzanine and other notes receivable | 0 | 0 | 0 |
Purchases of investments, employee benefit plans | 0 | 0 | 0 |
Proceeds from sales of investments, employee benefit plans | 0 | 0 | 0 |
Advances to and investments in affiliates | 0 | 0 | 0 |
Divestment in affiliates | 0 | 0 | |
Other items, net | (8,881,000) | (146,000) | 0 |
Net cash provided from (used in) investing activities | (46,273,000) | 7,946,000 | (3,651,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) pursuant to revolving credit facilities | (133,000) | 0 | |
Principal payments on long-term debt | (409,000) | (32,000) | (33,000) |
Proceeds from the issuance of long-term debt | 0 | 74,000 | 0 |
Purchase of treasury stock | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 0 | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Debt issuance costs | 0 | ||
Proceeds from contributions from affiliates | 9,418,000 | 6,578,000 | 3,284,000 |
Distributions to affiliates | (10,735,000) | (3,426,000) | |
Dividends paid | (657,000) | (657,000) | (1,570,000) |
Net cash provided from (used in) financing activities | (2,516,000) | 2,537,000 | 1,681,000 |
Net change in cash and cash equivalents | (7,622,000) | 33,194,000 | 34,843,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | (2,049,000) | (1,621,000) | (2,589,000) |
Cash and cash equivalents at beginning of period | 189,564,000 | 157,991,000 | 125,737,000 |
Cash and cash equivalents at end of period | 179,893,000 | 189,564,000 | 157,991,000 |
Eliminations [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (657,000) | (657,000) | (1,570,000) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | ||
Proceeds from sale of assets | 0 | 0 | |
Contributions to equity method investments | 0 | 0 | 0 |
Distributions from equity method investments | 0 | ||
Issuance of mezzanine and other notes receivable | 0 | 0 | 0 |
Collections of mezzanine and other notes receivable | 0 | 0 | 0 |
Purchases of investments, employee benefit plans | 0 | 0 | 0 |
Proceeds from sales of investments, employee benefit plans | 0 | 0 | 0 |
Advances to and investments in affiliates | 9,418,000 | 6,578,000 | 3,284,000 |
Divestment in affiliates | (10,735,000) | (3,426,000) | |
Other items, net | 0 | 0 | 0 |
Net cash provided from (used in) investing activities | (1,317,000) | 3,152,000 | 3,284,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) pursuant to revolving credit facilities | 0 | 0 | |
Principal payments on long-term debt | 0 | 0 | 0 |
Proceeds from the issuance of long-term debt | 0 | 0 | 0 |
Purchase of treasury stock | 0 | 0 | 0 |
Excess tax benefits from stock-based compensation | 0 | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 | 0 |
Debt issuance costs | 0 | ||
Proceeds from contributions from affiliates | (9,418,000) | (6,578,000) | (3,284,000) |
Distributions to affiliates | 10,735,000 | 3,426,000 | |
Dividends paid | 657,000 | 657,000 | 1,570,000 |
Net cash provided from (used in) financing activities | 1,974,000 | (2,495,000) | (1,714,000) |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Consolidated [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 159,872,000 | 183,891,000 | 153,913,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in property and equipment | (27,765,000) | (20,946,000) | (33,397,000) |
Acquisitions, net of cash acquired | (13,269,000) | ||
Proceeds from sale of assets | 6,347,000 | 15,612,000 | |
Contributions to equity method investments | (23,737,000) | (17,789,000) | (5,685,000) |
Distributions from equity method investments | 518,000 | ||
Issuance of mezzanine and other notes receivable | (36,884,000) | (3,340,000) | (1,095,000) |
Collections of mezzanine and other notes receivable | 4,849,000 | 11,289,000 | 9,748,000 |
Purchases of investments, employee benefit plans | (3,220,000) | (2,794,000) | (2,676,000) |
Proceeds from sales of investments, employee benefit plans | 3,170,000 | 964,000 | 4,168,000 |
Advances to and investments in affiliates | 0 | 0 | 0 |
Divestment in affiliates | 0 | 0 | |
Other items, net | (9,819,000) | (642,000) | (485,000) |
Net cash provided from (used in) investing activities | (99,810,000) | (17,646,000) | (29,422,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net borrowings (repayments) pursuant to revolving credit facilities | 158,867,000 | (57,000,000) | |
Principal payments on long-term debt | (130,501,000) | (10,108,000) | (8,204,000) |
Proceeds from the issuance of long-term debt | 176,000 | 250,000 | 3,360,000 |
Purchase of treasury stock | (72,873,000) | (77,972,000) | (3,965,000) |
Excess tax benefits from stock-based compensation | 5,207,000 | 3,721,000 | 1,460,000 |
Proceeds from exercise of stock options | 7,056,000 | 10,098,000 | 8,864,000 |
Debt issuance costs | (2,169,000) | ||
Proceeds from contributions from affiliates | 0 | 0 | 0 |
Distributions to affiliates | 0 | 0 | |
Dividends paid | (45,214,000) | (43,529,000) | (32,799,000) |
Net cash provided from (used in) financing activities | (79,451,000) | (117,540,000) | (88,284,000) |
Net change in cash and cash equivalents | (19,389,000) | 48,705,000 | 36,207,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | (2,049,000) | (1,621,000) | (2,589,000) |
Cash and cash equivalents at beginning of period | 214,879,000 | 167,795,000 | 134,177,000 |
Cash and cash equivalents at end of period | $ 193,441,000 | $ 214,879,000 | $ 167,795,000 |
Reportable Segment Informati120
Reportable Segment Information - Schedule Of Financial Information For Company's Franchising Segment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)brand | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)brand | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of brands | brand | 11 | 11 | |||||||||
Revenues | $ 210,951 | $ 241,526 | $ 232,156 | $ 175,245 | $ 185,402 | $ 215,168 | $ 197,664 | $ 159,736 | $ 859,878 | $ 757,970 | $ 724,650 |
Operating income (loss) | 47,195 | 73,803 | 62,917 | 41,404 | 46,257 | 66,986 | 60,153 | 41,172 | 225,319 | 214,568 | 196,248 |
Depreciation and amortization | 11,542 | 9,365 | 9,056 | ||||||||
Income (loss) from continuing operations before income taxes | 37,804 | $ 62,268 | $ 52,879 | $ 31,034 | 36,038 | $ 55,958 | $ 50,234 | $ 31,528 | 183,985 | 173,758 | 158,672 |
Capital expenditures | 34,660 | 36,574 | 33,397 | ||||||||
Total assets | 717,010 | 637,917 | 717,010 | 637,917 | 540,099 | ||||||
Investments in unconsolidated entities | 67,037 | 50,605 | 67,037 | 50,605 | |||||||
Foreign Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 51,700 | 57,600 | 57,300 | ||||||||
Long-lived assets | 49,300 | 4,500 | 49,300 | 4,500 | 8,600 | ||||||
Franchising [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 855,462 | 757,370 | 724,617 | ||||||||
Operating income (loss) | 285,752 | 273,177 | 248,253 | ||||||||
Depreciation and amortization | 6,762 | 6,125 | 6,280 | ||||||||
Income (loss) from continuing operations before income taxes | 284,851 | 272,520 | 248,887 | ||||||||
Capital expenditures | 28,662 | 19,958 | 12,079 | ||||||||
Total assets | 397,428 | 318,306 | 397,428 | 318,306 | 300,292 | ||||||
Franchising [Member] | Assets, Total [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Investments in unconsolidated entities | 67,000 | 50,600 | 67,000 | 50,600 | 32,300 | ||||||
SkyTouch Technology [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,186 | 600 | 33 | ||||||||
Operating income (loss) | (18,971) | (17,065) | (9,994) | ||||||||
Depreciation and amortization | 1,450 | 1,007 | 398 | ||||||||
Income (loss) from continuing operations before income taxes | (18,971) | (17,065) | (9,994) | ||||||||
Capital expenditures | 1,454 | 1,816 | 2,295 | ||||||||
Total assets | 4,073 | 4,197 | 4,073 | 4,197 | 2,303 | ||||||
Corporate & Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,230 | 0 | 0 | ||||||||
Operating income (loss) | (41,462) | (41,544) | (42,011) | ||||||||
Depreciation and amortization | 3,330 | 2,233 | 2,378 | ||||||||
Income (loss) from continuing operations before income taxes | (81,895) | (81,697) | (80,221) | ||||||||
Capital expenditures | 4,544 | 14,800 | 19,023 | ||||||||
Total assets | 315,509 | 315,414 | 315,509 | 315,414 | 237,504 | ||||||
Elimination Adjustments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Total assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) | Sep. 30, 2014USD ($) | Dec. 31, 2013USD ($)ft² | Aug. 31, 2012ft² | Dec. 31, 2008 | Dec. 31, 2015USD ($)ft²hotel | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 15, 1997company |
Related Party Transaction [Line Items] | ||||||||
Number of companies following spin-off | company | 2 | |||||||
Sunburst [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of hotels operated by related party | hotel | 9 | |||||||
Due from related party | $ 200,000 | $ 200,000 | ||||||
Sunburst [Member] | Franchise Fees [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments received from related party | 2,500,000 | 2,400,000 | $ 2,600,000 | |||||
LPC [Member] | Operating Lease [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expenses from transactions, related party | 300,000 | |||||||
Affiliated Entity [Member] | Contribution to non-profit entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expenses from transactions, related party | 100,000 | |||||||
Family Member(s) of Largest Shareholder [Member] | Aircraft sublease rental income [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments received from related party | $ 27,000 | 100,000 | 0 | |||||
Family Member(s) of Largest Shareholder [Member] | Leased space provided free of charge [Member] | Lease Agreements [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Area under lease, related party (in square feet) | ft² | 1,950 | |||||||
Operating lease term, related party | 5 years | |||||||
Operating lease, expiration date, related party | 2,013 | |||||||
Annual lease payments, related party | $ 72,000 | |||||||
Family Member(s) of Largest Shareholder [Member] | Leased space provided free of charge [Member] | Lease Agreement Amendment [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expenses from transactions, related party | 27,000 | 50,000 | ||||||
Area under lease, related party (in square feet) | ft² | 2,154 | |||||||
Operating lease, expiration date, related party | 2,016 | |||||||
Annual lease payments, amendment, related party | 84,000 | |||||||
Operating lease, termination payment | $ 103,000 | |||||||
Family Member(s) of Largest Shareholder [Member] | Designated Employee's Services [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments received from related party | $ 37,000 | |||||||
Related party service agreement, utilization threshold of designated employee's services | 50.00% | |||||||
Related party service agreement, reimbursement percentage for designated employee's services rendered | 50.00% | |||||||
Family Member(s) of Largest Shareholder [Member] | Leased office space [Member] | Lease Agreements [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Area under lease, related party (in square feet) | ft² | 2,200 | |||||||
Annual lease payments, related party | $ 90,000 | |||||||
Related Party Transaction Sublease Notice Period | 90 days | |||||||
Family Member(s) of Largest Shareholder [Member] | Sublease rental income [Member] | Lease Agreements [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments received from related party | $ 90,000 | $ 90,000 |
Transactions with Unconsolid122
Transactions with Unconsolidated Joint Ventures (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2014USD ($) | Dec. 31, 2012USD ($)tranche | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 31, 2015USD ($) | |
Related Party Transaction [Line Items] | ||||||
Gain (loss) on disposition of assets | $ 1,521,000 | $ 2,809,000 | $ 151,000 | |||
Promissory note extended to related part | 6,100,000 | |||||
Receivables, net | 89,352,000 | 91,681,000 | ||||
Member of Unconsolidated Joint Venture [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, number of tranches | tranche | 2 | |||||
Due from related party | $ 19,500,000 | |||||
Proceeds from related party promissory note | $ 9,500,000 | |||||
Promissory note extended to related part | 23,800,000 | |||||
Related Party Transaction, Additional Loan Amount | 600,000 | |||||
Note due in 2013 [Member] | Member of Unconsolidated Joint Venture [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related party | 9,500,000 | |||||
Note due on fifth anniversary of promissory note [Member] | Member of Unconsolidated Joint Venture [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related party | $ 10,000,000 | |||||
Pre hotel construction completion [Member] | Member of Unconsolidated Joint Venture [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument stated interest rate | 6.00% | |||||
Debt instrument, term | 5 years | |||||
Promissory note, frequency of interest payments | quarterly | |||||
Post hotel construction completion [Member] | Member of Unconsolidated Joint Venture [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument stated interest rate | 8.00% | |||||
Promissory note, frequency of interest payments | monthly | |||||
Member of Unconsolidated Joint Venture [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration received on disposition of a parcel of land | $ 6,500,000 | |||||
Gain (loss) on disposition of assets | $ 0 | |||||
Royalty and marketing and reservation system fees | 15,500,000 | 15,400,000 | $ 15,200,000 | |||
Receivables, net | 1,100,000 | 1,000,000 | ||||
Commissions paid to travel agent | 400,000 | $ 500,000 | $ 700,000 | |||
Member of Unconsolidated Joint Venture [Member] | Loans Payable | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 4,000,000 | |||||
Promissory note outstanding | $ 3,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Nov. 30, 2015 | Sep. 04, 2015 | Aug. 31, 2015 | Nov. 15, 2013 | Oct. 09, 2012 | |
Loss Contingencies [Line Items] | ||||||
Bank loan issued to VIE, partially guaranteed by parent | $ 13.3 | $ 46.2 | $ 18 | |||
Bank loan issued to VIE, percentage guaranteed by parent (percent) | 25.00% | 25.00% | ||||
Parent's guarantor obligation, maximum exposure | $ 1.8 | $ 11.6 | $ 4.5 | |||
Reimbursement and guaranty agreement, reimbursed to parent (percent) | 75.00% | |||||
Other commitment | $ 49.1 | |||||
Payments to Fund Long-term Loans to Related Parties | $ 6.1 | |||||
Forgivable Notes Receivable [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Other commitment | 115 | |||||
Commitment due in next twelve months | 23.3 | |||||
Additional capital contributions [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitment due in next twelve months | 2.1 | |||||
Member of Unconsolidated Joint Venture [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Other commitment | $ 24.4 | |||||
Payments to Fund Long-term Loans to Related Parties | 23.8 | |||||
Related Party Transaction, Additional Loan Amount | $ 0.6 |
Acquisition Narrative (Details)
Acquisition Narrative (Details) - USD ($) $ in Thousands | Aug. 11, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Cash paid, net of cash acquired | $ 13,269 | $ 0 | $ 0 | |
Maxxton Holding B.V. (“MHB”) [Member] | ||||
Business Acquisition [Line Items] | ||||
Voting equity interest acquired (percent) | 100.00% | |||
Total consideration for acquisition | $ 23,600 | |||
Cash paid, net of cash acquired | 13,269 | |||
Deferred purchase price payable | 6,813 | |||
Liabilities assumed | $ 3,528 | |||
Deferred purchase price payment period | 5 years | |||
Variable compensation arrangement term | 5 years | |||
Total expected compensation under variable compensation arrangement | $ 13,600 |
Acquisition Preliminary Fair Va
Acquisition Preliminary Fair Value Allocation of Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 11, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Cash paid, net of cash acquired | $ 13,269 | $ 0 | $ 0 | |
Maxxton Holding B.V. (“MHB”) [Member] | ||||
Business Acquisition [Line Items] | ||||
Tangible assets | $ 2,674 | |||
Intangible assets | 20,936 | |||
Total assets acquired | 23,610 | |||
Deferred purchase price | (6,813) | |||
Liabilities assumed | (3,528) | |||
Cash paid, net of cash acquired | $ 13,269 |
Acquisition Fair Value of Acqui
Acquisition Fair Value of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 11, 2015 | Dec. 31, 2015 |
Maxxton Holding B.V. (“MHB”) [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of intangible assets | $ 20,936 | |
Maxxton Holding B.V. (“MHB”) [Member] | Customer Contracts [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of intangible assets | 5,165 | |
Maxxton Holding B.V. (“MHB”) [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of intangible assets | $ 440 | |
Estimated useful lives of acquired intangible assets | 8 years | |
Maxxton Holding B.V. (“MHB”) [Member] | Developed Technology Rights [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of intangible assets | $ 1,649 | |
Estimated useful lives of acquired intangible assets | 6 years | |
Goodwill [Member] | Maxxton Holding B.V. (“MHB”) [Member] | ||
Business Acquisition [Line Items] | ||
Estimated fair value of intangible assets | $ 13,682 | |
Minimum [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of acquired intangible assets | 8 years | |
Minimum [Member] | Maxxton Holding B.V. (“MHB”) [Member] | Customer Contracts [Member] | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of acquired intangible assets | 5 years | |
Maximum [Member] | Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of acquired intangible assets | 40 years | |
Maximum [Member] | Maxxton Holding B.V. (“MHB”) [Member] | Customer Contracts [Member] | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of acquired intangible assets | 12 years |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($)hotel | Dec. 31, 2015USD ($)hotel | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Company-owned hotels, approved to be sold | hotel | 3 | ||||||||||
Discontinued Operation, Consolidated Statements of Income Disclosures [Abstract] | |||||||||||
Income from discontinued operations, net of income taxes | $ 0 | $ 0 | $ 0 | $ 0 | $ (24) | $ (51) | $ 121 | $ 1,641 | $ 0 | $ 1,687 | $ 359 |
Discontinued operations [Member] | |||||||||||
Discontinued Operation, Consolidated Statements of Income Disclosures [Abstract] | |||||||||||
Hotel operations | 0 | 801 | 4,774 | ||||||||
Total revenues | 0 | 801 | 4,774 | ||||||||
Hotel operations | 0 | 927 | 3,678 | ||||||||
Depreciation and amortization | 0 | 0 | 526 | ||||||||
Total operating expenses | 0 | 927 | 4,204 | ||||||||
Operating income (loss) | 0 | (126) | 570 | ||||||||
Gain on disposal of discontinued operations | 0 | 2,807 | 0 | ||||||||
Income from discontinued operations before income taxes | 0 | 2,681 | 570 | ||||||||
Income taxes | 0 | 994 | 211 | ||||||||
Income from discontinued operations, net of income taxes | 0 | 1,687 | $ 359 | ||||||||
Discontinued Operation, Balance Sheets Disclosures [Abstract] | |||||||||||
Total assets | 0 | 0 | 0 | 0 | |||||||
Accounts payable | 0 | 45 | 0 | 45 | |||||||
Income taxes payable | 0 | 994 | 0 | 994 | |||||||
Total liabilities | 0 | 1,039 | 0 | 1,039 | |||||||
Net assets of discontinued operations | $ 0 | $ (1,039) | $ 0 | $ (1,039) | |||||||
MainStay Suites [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Company-owned hotels, approved to be sold | hotel | 3 | ||||||||||
Company-owned hotels | hotel | 3 |
Selected Quarterly Financial128
Selected Quarterly Financial Data - (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Total revenues | $ 210,951 | $ 241,526 | $ 232,156 | $ 175,245 | $ 185,402 | $ 215,168 | $ 197,664 | $ 159,736 | $ 859,878 | $ 757,970 | $ 724,650 | ||
Operating income | 47,195 | 73,803 | 62,917 | 41,404 | 46,257 | 66,986 | 60,153 | 41,172 | 225,319 | 214,568 | 196,248 | ||
Income from continuing operations before income taxes | 37,804 | 62,268 | 52,879 | 31,034 | 36,038 | 55,958 | 50,234 | 31,528 | 183,985 | 173,758 | 158,672 | ||
Income from continuing operations, net of income taxes | 29,203 | 41,419 | 35,813 | 21,594 | 25,309 | 39,416 | 35,279 | 21,469 | 128,029 | 121,473 | 113,350 | ||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | (24) | (51) | 121 | 1,641 | 0 | 1,687 | 359 | ||
Net income | $ 29,203 | $ 41,419 | $ 35,813 | $ 21,594 | $ 25,285 | $ 39,365 | $ 35,400 | $ 23,110 | $ 128,029 | $ 123,160 | $ 113,709 | ||
Per basic share: | |||||||||||||
Basic earnings per share, Continuing operations (in dollars per share) | $ 0.52 | $ 0.72 | $ 0.62 | $ 0.38 | $ 0.44 | $ 0.67 | $ 0.61 | $ 0.37 | $ 2.24 | [1] | $ 2.08 | [1] | $ 1.94 |
Basic earnings per share, Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | [1] | 0.03 | [1] | 0 |
Per diluted share: | |||||||||||||
Diluted earnings per share, Continuing operations (in dollars per share) | 0.51 | 0.72 | 0.62 | 0.37 | 0.43 | 0.67 | 0.60 | 0.36 | 2.22 | [1] | 2.07 | [1] | 1.92 |
Diluted earnings per share, Discontinued operations (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.03 | $ 0 | [1] | $ 0.03 | [1] | $ 0.01 |
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 27, 2016 | Feb. 16, 2016 | Feb. 01, 2016 | Jan. 11, 2016 | Dec. 31, 2015 |
Minimum [Member] | |||||
Subsequent Events [Line Items] | |||||
Loyalty program, expiration period | 24 months | ||||
Maximum [Member] | |||||
Subsequent Events [Line Items] | |||||
Loyalty program, expiration period | 36 months | ||||
Subsequent event [Member] | |||||
Subsequent Events [Line Items] | |||||
Loyalty program, rolling expiration period | 18 months | ||||
Common stock, dividends declared (in dollars per share) | $ 0.205 | ||||
Subsequent event [Member] | Minimum [Member] | Change in Loyalty Program Rules and Regulations [Member] | |||||
Subsequent Events [Line Items] | |||||
Estimated increase in customer loyalty program liability | $ 21 | ||||
Subsequent event [Member] | Maximum [Member] | Change in Loyalty Program Rules and Regulations [Member] | |||||
Subsequent Events [Line Items] | |||||
Estimated increase in customer loyalty program liability | $ 26 | ||||
Subsequent event [Member] | INDIANA | |||||
Subsequent Events [Line Items] | |||||
Payments to acquire commercial real estate | $ 6.5 | ||||
Subsequent event [Member] | TEXAS | |||||
Subsequent Events [Line Items] | |||||
Payments to acquire commercial real estate | $ 16 |
Schedule II-Valuation And Qu130
Schedule II-Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Trade Receivables [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 10,084 | $ 12,187 | $ 11,658 |
Additions/Charges to Profit & Loss | 4,382 | 4,090 | 4,708 |
Recoveries/Write offs | (5,748) | (6,193) | (4,179) |
Balance at End of Period | 8,718 | 10,084 | 12,187 |
Allowance for Notes Receivable [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 5,987 | 11,546 | 10,550 |
Additions/Charges to Profit & Loss | 1,742 | 2,630 | 1,668 |
Recoveries/Write offs | (964) | (8,189) | (672) |
Balance at End of Period | $ 6,765 | $ 5,987 | $ 11,546 |