Comfort Inn 2003 Annual Report Download - page 43

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16. Comprehensive Income
The components of total accumulated other comprehensive income are as follows:
December 31,
2003 2002 2001
(In thousands)
Unrealized gains (losses) on available-for-sale securities ................. $ (18) $ (80) $(202)
Foreign currency translation adjustments ............................. 866 (235) (576)
Deferred gain on hedging activity ................................... 290 357 424
Total accumulated other comprehensive income (loss) .................. $1,138 $42 $(354)
The components of total accumulated other comprehensive income are as follows:
Amount Before
Taxes
Income Tax
(Expense)/Benefit
Amount Net
of Taxes
(In thousands)
2003
Net unrealized gains ............................. $99$(37) $ 62
Foreign currency translation adjustment, net .......... 1,101 — 1,101
Amortization of deferred gain on hedge .............. (110) 43 (67)
Total other comprehensive income .................. $1,090 $ 6 $1,096
2002
Net unrealized gains ............................. $ 195 $ (73) $ 122
Foreign currency translation adjustment, net .......... 341 — 341
Amortization of deferred gain on hedge .............. (110) 43 (67)
Total other comprehensive income .................. $ 426 $ (30) $ 396
2001
Net unrealized losses ............................. $ (179) $(131) $ (310)
Foreign currency translation adjustment, net .......... (414) — (414)
Total other comprehensive loss ..................... $ (593) $(131) $ (724)
Below represents the detail of other comprehensive income:
December 31,
2003 2002 2001
Unrealized holding gains (losses) arising during the period, net .................. $62 $122 $(352)
Less: reclassification adjustments for losses/gains included in net income .......... ——42
Net unrealized holding gains (losses) arising during the period ................... $62 $122 $(310)
Foreign currency translation adjustments .................................... $1,101 $341 $(414)
Amortization of deferred gain on hedging activity ............................. $ (67) $ (67) $ —
In December 1999, the Company entered into an interest rate swap agreement to fix certain of its variable
rate debt in order to reduce the Company’s exposure to fluctuations in interest rates. On March 3, 2000, the
interest rate swap agreement was settled resulting in a deferred gain. In accordance with SFAS 133, the
unamortized gain was reclassified in 2001 to other comprehensive income and is being amortized over the
remaining life of the related debt as a reduction of interest expense. In each of 2003 and 2002, the Company
recorded approximately $67,000, net of taxes, of amortization related to this deferred gain.
F-36