Comfort Inn 2005 Annual Report Download - page 42

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
As a result of the December 2003 repayment of the New Note by Sunburst, no interest income was
recognized related to the note in 2004 or 2005. The Company recognized interest income related to the New Note
of $4.5 million for the year ended December 31, 2003.
Total franchise fees, including royalty, marketing and reservation fees, paid by Sunburst to the Company,
net of royalty fee credits, included in the accompanying consolidated financial statements were $5.3 million for
each of the years ended December 31, 2005, 2004 and 2003. As of December 31, 2005 and 2004, accounts
receivable included $1.0 million and $0.9 million due from Sunburst, respectively.
8. Deferred Revenue
Deferred revenue consist of the following at:
December 31,
2005 2004
(In thousands)
Loyalty programs ................................................. $29,406 $20,316
Initial, relicensing and franchise fees .................................. 1,983 2,089
Partner services fees ............................................... 742 904
Total ........................................................... $32,131 $23,309
9. Accrued Expenses and Other
Accrued expenses and other consisted of the following at:
December 31,
2005 2004
(In thousands)
Accrued salaries and benefits ........................................ $25,044 $20,095
Dividendspayable ................................................. 8,439 7,271
Accrued interest ................................................... 1,302 1,261
Other liabilities and contingencies .................................... 16,171 8,266
Total ....................................................... $50,956 $36,893
Other liabilities and contingencies include accruals for tax contingencies. These accruals have been recorded
for potential exposures involving tax positions that could be challenged by taxing authorities.
10. Long-Term Debt
Debt consisted of the following at:
December 31,
2005 2004
(In thousands)
$350 million senior unsecured revolving credit facility with an effective rate of
5.24% and 3.42% at December 31, 2005 and December 31, 2004,
respectively .................................................... $173,700 $218,200
$100 million senior notes with an effective rate of 7.22% at December 31, 2005
and 2004 ...................................................... 99,849 99,785
$10 million line of credit with an effective rate of 3.50% at December 31,
2004 .......................................................... —10,000
Other notes with an average effective rate of 4.90% and 3.50% at December 31,
2005 and 2004, respectively ....................................... 569 718
Totaldebt.................................................... $274,118 $328,703
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