Comfort Inn 2004 Annual Report Download - page 47

CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Through December 31, 2004, the Company had repurchased 32.5 million shares of its common stock at a total
cost of $663 million, including 3.2 million shares of common stock at a total cost of $148.3 million during the
year ended December 31, 2004. Subsequent to December 31, 2004 through March 10, 2005, the Company had
repurchased an additional 0.2 million shares of its common stock at a total cost of $13.5 million, including 0.1
million at a total cost of $6.0 million from one of the Company’s largest shareholders.
On February 19, 1998, the Board of Directors adopted a shareholder rights plan under which a dividend of one
preferred stock purchase right was distributed for each outstanding share of the Company’s common stock to
shareholders of record on April 3, 1998. Each right will entitle the holder to buy 1/100th of a share of a newly
issued series of a junior participating preferred stock of the Company at an exercise price of $75 per share. The
rights will be exercisable, subject to certain exceptions, 10 days after a person or a group acquires beneficial
ownership of 10% or more of the Company’s common stock. Shares owned by a person or group on February 19,
1998, and held continuously thereafter are exempt for purposes of determining beneficial ownership under the rights
plan. The rights will be non-voting and will expire on January 31, 2008, unless exercised or previously redeemed by
the Company for $.001 each. If the Company is involved in a merger or certain other business combinations not
approved by the Board of Directors, each right will entitle its holder, other than the acquiring person or group, to
purchase common stock of either the Company or the acquirer having a value of twice the exercise price of the
right. On February 14, 2005, the Company’s board of directors voted to terminate this rights agreement.
15. Comprehensive Income
The components of accumulated other comprehensive income are as follows:
December 31,
2004 2003 2002
(In thousands)
Unrealized gains (losses) on available-for-sale securities ................ $ 123 $ (18) $ (80)
Foreign currency translation adjustments ............................ 1,054 866 (235)
Deferred gain on hedging activity .................................. 223 290 357
Total accumulated other comprehensive income ....................... $1,400 $1,138 $ 42
The components of other comprehensive income are as follows:
Amount Before
Taxes
Income Tax
(Expense)/Benefit
Amount Net
of Taxes
2004
Net unrealized gains ............................. $ 225 $ (84) $ 141
Foreign currency translation adjustment, net .......... 188 — 188
Amortization of deferred gain on hedge .............. (110) 43 (67)
Total other comprehensive income .................. $ 303 $ (41) $ 262
2003
Net unrealized gains ............................. $ 99 $(37) $ 62
Foreign currency translation adjustment, net .......... 1,101 — 1,101
Amortization of deferred gain on hedge .............. (110) 43 (67)
Total other comprehensive income .................. $1,090 $ 6 $1,096
2002
Net unrealized gains ............................. $ 195 $(73) $ 122
Foreign currency translation adjustment, net .......... 341 — 341
Amortization of deferred gain on hedge .............. (110) 43 (67)
$ 426 $ (30) $ 396
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