Comfort Inn 2014 Annual Report Download - page 103
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Table of Contents
repurchases during the year ended December 31, 2013. During the year ended December 31, 2012, the Company purchased 0.5 million shares of its common
stock under the repurchase program at a total cost of $19.9 million. Through December 31, 2014, the Company repurchased 46.7 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 $1.2
billion.
During 2014, the Company redeemed 110,579 shares of common stock at a total cost of $5.3 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 2013 and 2012, the Company redeemed 103,880 and 75,105 shares of common stock at a total cost of $4.0 million and $2.7 million,
respectively. These redemptions were outside the share repurchase program initiated in June 1998.
Other
Effective January 1, 2014, the Company reduced its reported number of common shares outstanding by 0.3 million shares to address a reconciling item
with the Company's share transfer agent.
The components of accumulated other comprehensive loss is as follows:
Foreign currency translation adjustments
$ (472)
$ 2,391
Deferred loss on cash flow hedge
(5,745)
(6,607)
Total accumulated other comprehensive loss
$ (6,217)
$ (4,216)
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.
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