Comfort Inn 2004 Annual Report Download - page 45

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
13. Other Non-Current Liabilities
Other non-current liabilities consist of the following at:
December 31,
2004 2003
(In thousands)
Deferred compensation and retirement plan obligations ..................... $21,387 $15,058
Deferred revenue .................................................... 1,614 2,645
Other liabilities and contingencies ...................................... 15,818 21,160
Total ..................................................... $38,819 $38,863
Other liabilities and contingencies include long-term deposits and accruals for tax contingencies. These
accruals have been recorded to address potential exposures involving tax positions that could be challenged by
taxing authorities.
14. Capital Stock
The Company has stock compensation plans pursuant to which it is authorized to grant restricted stock and
options to purchase stock for up to 9.5 million shares of the Company’s common stock, of which 0.7 million
shares remain available for grant as of December 31, 2004. Restricted stock and stock options may be granted to
officers, key employees and non-employee directors.
Restricted Stock.
The following table is a summary of activity related to restricted stock grants to non-employee directors and
key employees for the year ended December 31,
2004 2003 2002
Restricted Shares Granted ......................................... 204,460 7,428 109,894
Weighted Average Grant Date Fair Value per share ..................... $ 39.00 $ 24.23 $ 20.94
Aggregate Grant Date Fair Value ($000) ............................. $ 7,973 $ 180 $ 2,301
Restricted Shares Forfeited ........................................ 2,055 ——
Vesting Period of Shares Granted ................................... 3-5 years 3 years 5 years
The Company incurred compensation expense totaling $2.5 million, $0.9 million and $1.7 million related to
the vesting of restricted stock during the years ended December 31, 2004, 2003 and 2002, respectively.
F-37