Comfort Inn 2003 Annual Report Download - page 35

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
9. Accrued Expenses and Other
Accrued expenses and other consisted of the following at:
December 31,
2003 2002
(In thousands)
Accrued salaries and benefits .......................................... $17,219 $15,175
Deferred loyalty program revenue ...................................... 11,770 6,569
Dividends payable ................................................... 6,899 —
Deferred revenue .................................................... 3,114 2,349
Accrued interest ..................................................... 1,392 2,343
Accrued restructuring ................................................ —1,518
Other ............................................................. 4,310 2,235
Total ......................................................... $44,704 $30,189
Deferred loyalty program revenue relates to the Company’s Choice Privileges program. Choice Privileges is
a frequent guest incentive program that enables members to earn points based on their spending levels at
participating brands. The points may be redeemed for free accommodations or other benefits. Points cannot be
redeemed for cash.
The Company collects 5% of program member’s room revenue from participating franchises. Revenues are
deferred equal to the fair value of the future redemption obligation. Actuarial methods are used to estimate the
eventual redemption rates and point values. Upon redemption of points, the Company recognizes the previously
deferred revenue as well as the corresponding expense relating to the cost of the awards redeemed.
10. Long-Term Debt
Debt consisted of the following at:
December 31,
2003 2002
(In thousands)
$265 million competitive advance and multi-currency revolving credit facility with an
effective rate of 2.29% and 3.05% at December 31, 2003 and 2002, respectively ...... $143,458 $200,708
$100 million senior notes with an effective rate of 7.22% at December 31, 2003 and 2002 99,720 99,655
$20 million lines of credit with an effective rate of 2.25% and 2.50% at December 31,
2003 and 2002, respectively ............................................... 2,600 6,400
Other notes with an average effective rate of 2.89% and 3.30% at December 31, 2003 and
2002, respectively ....................................................... 874 1,028
Total debt ............................................................ $246,652 $307,791
F-28