Comfort Inn 2013 Annual Report Download - page 121
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Table of Contents
The following tables present the financial information for the Company's segments:
Revenues
Operating income (loss)
Depreciation and amortization
Income (loss) before income taxes
Capital expenditures
Total assets
Revenues $686,936
$ —
$ 4,573
$ —
$691,509
Operating income (loss) 241,500
(3,370)
(44,988)
—
193,142
Depreciation and amortization 15,812
10
6,936
(14,532)
8,226
Income (loss) before income taxes 241,712
(3,370)
(69,174)
—
169,168
Capital expenditures 13,998
107
1,338
—
15,443
Total assets 307,417
101
203,254
—
510,772
Revenues $634,437
$ —
$4,356
$ —
$638,793
Operating income (loss) 220,084
—
(48,221)
—
171,863
Depreciation and amortization 14,489
—
6,854
(13,319)
8,024
Income (loss) before income taxes 218,586
—
(60,529)
—
158,057
Capital expenditures 9,553
—
1,371
—
10,924
Total assets 266,267
—
181,422
—
447,689
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, 2013, 2012 and 2011 were
$57.1 million, $55.4 million and $54.6 million respectively. Long-lived assets related to international operations were $5.7 million, $5.4 million and $6.5
million as of December 31, 2013, 2012 and 2011, 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, 2013, 2012 and 2011 was $32.3 million, $27.5 million, and $4.3 million, respectively.
These investments are included as a component of total assets for the Company’s franchising segment.
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
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