Comfort Inn 2007 Annual Report Download - page 70

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Choice Hotels International, Inc.
Condensed Consolidating Statement of Income
For the Year Ended December 31, 2006
(In Thousands)
Choice Hotels
International, Inc.
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Eliminations
Consolidated
REVENUES:
Royalty fees............................................... $ 194,673 $ 95,077 $ 17,095 $ (95,200) $ 211,645
Initial franchise and relicensing fees ......... 29,629 — — — 29,629
Brand solutions.......................................... 13,945 — — — 13,945
Marketing and reservation......................... 232,407 256,916 9,266 (225,322) 273,267
Other items, net ......................................... 6,912 4,505 — — 11,417
Total revenues.................................. 477,566 356,498 26,361 (320,522) 539,903
OPERATING EXPENSES:
Selling, general and administrative ........... 90,810 85,867 5,635 (95,200) 87,112
Marketing and reservation......................... 246,239 244,566 7,784 (225,322) 273,267
Other items, net ......................................... 3,197 8,879 823 — 12,899
Total operating expenses.................. 340,246 339,312 14,242 (320,522) 373,278
Operating income.............................................. 137,320 17,186 12,119 — 166,625
OTHER INCOME AND EXPENSES:
Interest expense ......................................... 14,810 (770) 58 — 14,098
Equity in earnings of consolidated
subsidiaries ........................................... (24,806) — — 24,806 —
Other items, net ......................................... 66 (1,407) (1,410) — (2,751)
Total other income and expenses,
net................................................ (9,930) (2,177) (1,352) 24,806 11,347
Income before income taxes ............................. 147,250 19,363 13,471 (24,806) 155,278
Income taxes ...................................................... 34,463 6,594 1,434 — 42,491
Net income ......................................................... $ 112,787 $ 12,769 $ 12,037 $ (24,806) $ 112,787
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