In accordance with the spin-off, the Company agreed to assume and pay certain liabilities of Sunburst, subject to the Company maintaining a minimum net worth of $40 million, at the date of the Sunburst Distribution. As of December 31, 1997, the Company reflected a $25 million receivable due from Sunburst on the consolidated balance sheet. In 1998, net payments of approximately $8 million were collected from Sunburst in cash. In December 1998, the Company and Sunburst amended the strategic alliance agreement entered into in connection with the Sunburst Distribution. As part of that amendment, the Company exchanged the remaining $17 million balance in return for, among other things, the exclusive rights to the MainStay Suites brand from Sunburst. The $17 million, net of income taxes of approximately $7 million, was recorded as an adjustment to additional paid-in-capital as it represents an adjustment to the accounting for the Sunburst Distribution.

8. Restructuring Program

During 2000, the Company recognized $5.6 million in restructuring charges. The restructuring charges include $4.7 million that relates to reorganizing the Company’s operations in order to improve service and support to the Company’s franchisees. Of this $4.7 million, $4.1 million relates to severance and termination benefits for 176 employees (consisting of property and yield management system installers, reservation agents and field service administrative support) and $0.6 million relates to the cancellation of pre-existing contracts for termination of international leases. The remaining $0.9 million of the $5.6 million is due to the termination of an in-room internet initiative launched in 1999.

As of December 31, 2000, $0.5 million has been paid related to severance and termination benefits. The Company expects the remaining $5.1 million restructuring liability to be paid in 2001.

9. Accrued Expenses

Accrued expenses consisted of the following as of December 31:

10. Long-Term Debt

As of December 31, debt consisted of the following:

Maturities of debt as of December 31, 2000 were as follows: