Comfort Inn 2013 Annual Report Download - page 125
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Table of Contents
Revenues $129,169
$173,621
$210,413
$ 178,306
$691,509
Operating income $31,065
$51,590
$65,253
$45,234
$ 193,142
Income before income taxes $30,233
$47,939
$55,668
$ 35,328
$169,168
Net income $19,997
$31,862
$44,377
$ 24,451
$120,687
Per basic share:
Net income $0.34
$0.55
$0.77
$0.42
$2.08
Per diluted share:
Net income $0.34
$0.55
$ 0.76
$0.42
$2.07
The matters which affect the comparability of the quarterly results include the following:
•Seasonality: The Company’s revenues and operating income reflect the industry’s seasonality and as a result are lower in the first quarter and
higher in the third quarter.
•Investment income and losses: The Company’s net income reflects gains and losses related to the Company’s investments held in non-qualified
retirement plans and are subject to market conditions.
•Year Ended December 31, 2012 results:
•Loss on Settlement of a Pension Plan: During the fourth quarter of 2012, the Company recorded a $1.8 million loss on the settlement
of a pension plan consisting primarily of the recognition of previously unrecognized actuarial losses which had been recorded as a
component of the Company's accumulated other comprehensive loss on the Company's consolidated balance sheets.
•Income taxes: The Company's third quarter 2012 income taxes reflect a $4.5 million benefit related to a change in estimate of the
benefit from foreign operations.
In February 2013, the FASB issued ASU No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total
Amount of the Obligation Is Fixed at the Reporting Date" ("ASU 2013-04"). The ASU requires entities to measure obligations resulting from joint and several
liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following:
(a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity
expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of
the obligation for all joint parties. The ASU permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several
obligation). ASU 2013-04 is effective for all interim and annual periods beginning after December 15, 2013. The ASU should be applied retrospectively to
obligations with joint-and-several liabilities existing at the beginning of an entity's fiscal year of adoption. Early adoption is permitted. The Company does not
currently believe that the adoption of this update will have a material impact on its financial statements and will adopt the provisions of this ASU on January
1, 2014.
In March 2013, the FASB issued ASU No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain
Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity" ("ASU 2013-05"). ASU 2013-05 clarifies that when a
reporting entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity,
the parent is required to apply the guidance in ASC 830 "Foreign Currency Matters" Subtopic 830-30 to release any related cumulative translation adjustment
into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or
substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The provisions of ASU 2013-05 are effective
prospectively for reporting periods beginning after December 15, 2013. The Company does not currently believe that the adoption of this update will have a
material impact on its financial statements and will adopt the provisions of this ASU on January 1, 2014.