Comfort Inn 2013 Annual Report Download - page 105
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Table of Contents
2013, the Company repurchased 45.3 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 $1.1 billion.
During 2013, the Company redeemed 103,880 shares of common stock at a total cost of $4.0 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 2012, the Company redeemed 75,105 shares of common stock at a total cost of $2.7 million from employees to satisfy option costs and statutory
minimum tax-withholding requirements from the exercising of options and the vesting of restricted stock grants. These redemptions were outside the share
repurchase program initiated in June 1998.
The components of accumulated other comprehensive loss is as follows:
Foreign currency translation adjustments
$2,391
$2,155
Deferred loss on cash flow hedge
(6,607)
(7,469)
Changes in pension benefit obligation recognized in other comprehensive income (loss)
—
(1,487)
Total accumulated other comprehensive loss
$ (4,216)
$ (6,801)
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 year ended December 31, 2013:
Other comprehensive income (loss)
before reclassification —
(2,863)
(2,863)
Amounts reclassified from
accumulated other comprehensive
income (loss) 862
—
862
Net current period other comprehensive
income (loss) 862
(2,863)
(2,001)
101