|
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Through December 31, 2004, the Company had repurchased 32.5 million shares of its common stock at a total cost of $663 million, including 3.2 million shares of common stock at a total cost of $148.3 million during the year ended December 31, 2004. Subsequent to December 31, 2004 through March 10, 2005, the Company had repurchased an additional 0.2 million shares of its common stock at a total cost of $13.5 million, including 0.1 million at a total cost of $6.0 million from one of the Company’s largest shareholders.
On February 19, 1998, the Board of Directors adopted a shareholder rights plan under which a dividend of one preferred stock purchase right was distributed for each outstanding share of the Company’s common stock to shareholders of record on April 3, 1998. Each right will entitle the holder to buy 1/100th of a share of a newly issued series of a junior participating preferred stock of the Company at an exercise price of $75 per share. The rights will be exercisable, subject to certain exceptions, 10 days after a person or a group acquires beneficial ownership of 10% or more of the Company’s common stock. Shares owned by a person or group on February 19, 1998, and held continuously thereafter are exempt for purposes of determining beneficial ownership under the rights plan. The rights will be non-voting and will expire on January 31, 2008, unless exercised or previously redeemed by the Company for $.001 each. If the Company is involved in a merger or certain other business combinations not approved by the Board of Directors, each right will entitle its holder, other than the acquiring person or group, to purchase common stock of either the Company or the acquirer having a value of twice the exercise price of the right. On February 14, 2005, the Company’s board of directors voted to terminate this rights agreement.
15. Comprehensive Income
The components of accumulated other comprehensive income are as follows:
| |
December 31, |
 |
|
| |
2004 |
|
2003 |
|
2002 |
|
|
|
|
| |
(In thousands) |
| Unrealized gains (losses) on available-for-sale securities |
$ |
123 |
|
$ |
(18 |
) |
$ |
(80 |
) |
| Foreign currency translation adjustments |
|
1,054 |
|
|
866 |
|
|
(235 |
) |
| Deferred gain on hedging activity |
|
223 |
|
|
290 |
|
|
357 |
|
|
|
|
|
| Total accumulated other comprehensive income |
$ |
1,400 |
|
$ |
1,138 |
|
$ |
42 |
|
|
|
|
|
|
|
|
|
|
The components of other comprehensive income are as follows:
| |
Amount Before |
|
Income Tax |
|
Amount Net |
| |
Taxes |
(Expense)/Benefit |
of Taxes |
|
|
|
|
| 2004 |
| Net unrealized gains |
$ |
225 |
|
$ |
(84 |
) |
$ |
141 |
|
| Foreign currency translation adjustment, net |
|
188 |
|
|
— |
|
|
188 |
|
| Amortization of deferred gain on hedge |
|
(110 |
) |
|
43 |
|
|
(67 |
) |
|
|
|
|
| Total other comprehensive income |
$ |
303 |
|
$ |
(41 |
) |
$ |
262 |
|
|
|
|
|
|
|
|
|
|
| 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 |
) |
|
|
|
|
| |
$ |
426 |
|
$ |
(30 |
) |
$ |
396 |
|
|
|
|
|
|
|
|
|
|
|
