Comfort Inn 2003 Annual Report Download - page 45

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
operations. The Company does not allocate interest and dividend income, interest expense or income taxes to its
franchising segment.
The following table presents the financial information for the Company’s franchising segment.
Year Ended December 31, 2003
Franchising Corporate & Other
Elimination
Adjustments Consolidated
(In thousands)
Revenues .................................... $382,539 $ 3,565 — $386,104
Operating income (loss) ........................ 142,701 (28,718) — 113,983
Depreciation and amortization ................... 13,350 9,952 (12,077) 11,225
Capital expenditures ........................... 6,539 1,941 — 8,480
Total assets .................................. 193,494 73,778 — 267,272
Year Ended December 31, 2002
Franchising Corporate & Other
Elimination
Adjustments Consolidated
(In thousands)
Revenues .................................... $362,231 $ 3,331 — $365,562
Operating income (loss) ........................ 136,182 (31,482) — 104,700
Depreciation and amortization ................... 13,817 10,460 (13,026) 11,251
Capital expenditures ........................... 4,925 7,308 — 12,233
Total assets .................................. 213,665 103,108 — 316,773
Year Ended December 31, 2001
Franchising Corporate & Other
Elimination
Adjustments Consolidated
(In thousands)
Revenues .................................... $338,213 $ 3,215 — $341,428
Operating income (loss) ........................ 138,988 (65,411) — 73,577
Equity loss on Friendly investment ............... — (16,436) — (16,436)
Depreciation and amortization ................... 12,485 11,769 (11,802) 12,452
Capital expenditures ........................... 6,997 6,535 — 13,532
Total assets .................................. 212,877 108,301 — 321,178
Long-lived assets related to international operations were $9.9 million, $8.1 million and $7.1 million as of
December 31, 2003, 2002 and 2001, respectively. All other long-lived assets of the Company are associated with
domestic activities.
20. Commitments and Contingencies
The Company is a defendant in a number of lawsuits arising in the ordinary course of business. In the
opinion of management and general counsel to the Company, the ultimate outcome of such litigation will not
have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.
The Company has a $3.0 million letter of credit issued as support for construction and permanent financing
of a Sleep Inn and a MainStay Suites located in Atlanta, Georgia. The letter of credit expires in March 2005.
In the ordinary course of business, the Company enters into numerous agreements that contain standard
guarantees and indemnities whereby the Company indemnifies another party for breaches of representations and
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