Comfort Inn 2007 Annual Report Download - page 71

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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, 2005
(In Thousands)
Choice Hotels
International, Inc.
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Eliminations
Consolidated
REVENUES:
Royalty fees............................................... $ 175,508 $ 84,449 $ 11,621 $ (84,238) $ 187,340
Initial franchise and relicensing fees ......... 25,388 — — — 25,388
Brand solutions.......................................... 13,382 — — — 13,382
Marketing and reservation......................... 198,542 218,720 7,655 (187,095) 237,822
Other items, net ......................................... 3,819 4,347 — — 8,166
Total revenues.................................. 416,639 307,516 19,276 (271,333) 472,098
OPERATING EXPENSES:
Selling, general and administrative ........... 75,318 75,889 11,372 (84,329) 78,250
Marketing and reservation......................... 207,211 210,969 6,646 (187,004) 237,822
Other items, net ......................................... 3,686 7,781 809 — 12,276
Total operating expenses.................. 286,215 294,639 18,827 (271,333) 328,348
Operating income.............................................. 130,424 12,877 449 — 143,750
OTHER INCOME AND EXPENSES:
Interest expense......................................... 16,380 (1,059) 4 — 15,325
Equity in earnings of consolidated
subsidiaries ........................................... (8,370) — — 8,370 —
Other items, net ......................................... (181) (877) (1,259) — (2,317)
Total other income and expenses,
net................................................ 7,829 (1,936) (1,255) 8,370 13,008
Income before income taxes ............................. 122,595 14,813 1,704 (8,370) 130,742
Income taxes ...................................................... 35,030 7,601 546 — 43,177
Net income ......................................................... $ 87,565 $ 7,212 $ 1,158 $ (8,370) $ 87,565
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