Exhibit 13.02
Report of Independent Accountants on
Financial Statement Schedule
To the Board of Directors
of Choice Hotels International, Inc. and subsidiaries:
Our audits of the consolidated financial statements referred to in our report
dated February 7, 2003 appearing in the 2002 Annual Report to Shareholders of
Choice Hotels International, Inc. and subsidiaries (which report and
consolidated financial statements are incorporated by reference in this Annual
Report on Form 10-K) also included an audit of the financial statement schedule
listed in Item 15(a)(2) of this Form 10-K. In our opinion, this financial
statement schedule presents fairly, in all material respects, the information
set forth therein when read in conjunction with the related consolidated
financial statements.
PricewaterhouseCoopers LLP
Washington, DC
February 7, 2003
WE ARE INCLUDING IN THIS REPORT, PURSUANT TO RULE 2-02(E) OF REGULATION S-X, A
COPY OF THE LATEST SIGNED AND DATED REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
FROM OUR PRIOR INDEPENDENT PUBLIC ACCOUNTANTS, ARTHUR ANDERSEN LLP. THIS REPORT
OF INDEPENDENT PUBLIC ACCOUNTANTS WAS PREVIOUSLY ISSUED BY ARTHUR ANDERSEN, FOR
FILING WITH OUR ANNUAL REPORT ON FORM 10-K FILED BY CHOICE HOTELS INTERNATIONAL,
INC. WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 25, 2002, AND HAS NOT
BEEN REISSUED BY ARTHUR ANDERSEN LLP.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Choice Hotels International, Inc. and subsidiaries:
We have audited in accordance with auditing standards generally accepted in the
United States, the consolidated financial statements included in Choice Hotels
International, Inc.'s and subsidiaries (the "Company") annual report to
shareholders incorporated by reference in this Form 10-K, and have issued our
opinion thereon dated March 20, 2002. Our audit was made for the purpose of
forming an opinion on those consolidated financial statements taken as a whole.
The schedule listed in the index under Item 14(a) is the responsibility of the
Company's management and is presented for purposes of complying with the
Securities and Exchange Commission's rules and is not part of the basic
consolidated financial statements. This schedule has been subjected to the
auditing procedures applied in the audit of the basic consolidated financial
statements and, in our opinion, fairly states in all material respects the
financial data required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.
/s/ Arthur Andersen LLP
Vienna, Virginia
March 20, 2002
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS
(In thousands of dollars)
Charges
Balance at (Credits) to Balance at
Beginning of Profit Write-Offs/ End
Description Period and Loss Deductions of Period
----------- ------- -------- ---------- ---------
Accounts Receivable:
Year ended December 31, 2002 $ 5,392 $ 1,843 $ (1,200) $ 6,035
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Allowance for doubtful accounts
Year ended December 31, 2001
Allowance for doubtful accounts $ 5,754 $ 1,388 $ (1,750) $ 5,392
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Year ended December 31, 2000
Allowance for doubtful accounts $ 6,691 $ (585) $ (352) $ 5,754
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Balance at Charges to Balance at
Beginning of Profit Write-Offs/ End
Period And Loss Deductions of Period
------ -------- ---------- ---------
Deferred Tax Asset Valuation
Allowance:
Year ended December 31, 2002 $12,737 $ - $ - $12,737
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Deferred
Year ended December 31, 2001 $ - $12,737 $ - $12,737
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