Comfort Inn 2013 Annual Report Download - page 85
Download and view the complete annual report
Please find page 85 of the 2013 Comfort Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
 |
 |
Table of Contents
The components of property and equipment are:
Land and land improvements
$ 2,490
Facilities in progress and software under development
2,944
Computer equipment and software
83,937
Buildings and leasehold improvements
43,482
Furniture, fixtures and equipment
14,976
Capital lease
3,468
151,297
Less: Accumulated depreciation and amortization
(99,646)
Property and equipment, at cost, net
$51,651
As facilities in progress are completed and placed in service, they are transferred to appropriate property and equipment categories and depreciation
begins.
Depreciation has been computed for financial reporting purposes using the straight-line method. A summary of the ranges of estimated useful lives upon
which depreciation rates are based follows:
Computer equipment and software 3-5 years
Buildings and leasehold improvements 3-40 years
Furniture, fixtures and equipment 3-15 years
Capital lease (telephone equipment) 8 years
Depreciation expense, excluding amounts attributable to marketing and reservation activities, for the years ended December 31, 2013, 2012 and 2011
was $3.1 million, $2.4 million and $2.6 million, respectively. Accumulated amortization of capital leases, included in accumulated depreciation and
amortization above, at December 31, 2013 and 2012 totaled $1.4 million and $1.0 million, respectively.
Goodwill relates to (i) the purchase price of a minority interest in the Company for consideration in excess of the recorded minority interest and (ii) the
acquisition of 100% of the stock of Suburban Franchise Holding Company, Inc. and its wholly-owned subsidiary, Suburban Franchise Systems, Inc.
(“Suburban Transaction”).
The components of goodwill are as follows:
Minority interest
$60,620
Suburban transaction
5,193
Total
$65,813
The Company is not required to amortize goodwill. During the year ended December 31, 2012, the Company recognized an impairment loss totaling
$0.2 million on goodwill previously recorded in conjunction with its India acquisition. An assessment of the fair value of the Company's Indian subsidiary
was performed based on prices of comparable businesses and this assessment resulted in the recognition of an impairment loss equal to the gross amount of
the goodwill.
The components of franchise rights and other identifiable intangible assets at December 31, 2013 and 2012 are as follows:
Franchise rights, net of accumulated amortization
$9,767
Other identifiable intangible assets, net of accumulated