|
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
9. Accrued Expenses and Other
Accrued expenses and other consisted of the following at:
| |
|
December 31, |
 |
|
| |
2003 |
|
2002 |
|
|
|
| |
(In thousands) |
| Accrued salaries and benefits |
$ |
17,219 |
|
$ |
15,175 |
|
| Deferred loyalty program revenue |
|
11,770 |
|
|
6,569 |
|
| Dividends payable |
|
6,899 |
|
|
— |
|
| Deferred revenue |
|
3,114 |
|
|
2,349 |
|
| Accrued interest |
|
1,392 |
|
|
2,343 |
|
| Accrued restructuring |
|
— |
|
|
1,518 |
|
| Other |
|
4,310 |
|
|
2,235 |
|
|
|
|
| Total |
$ |
44,704 |
|
$ |
30,189 |
|
|
|
|
|
|
|
|
Deferred loyalty program revenue relates to the Company’s Choice Privileges program. Choice Privileges is a frequent guest incentive program that enables members to earn points based on their spending levels at participating brands. The points may be redeemed for free accommodations or other benefits. Points cannot be redeemed for cash.
The Company collects 5% of program member’s room revenue from participating franchises. Revenues are deferred equal to the fair value of the future redemption obligation. Actuarial methods are used to estimate the eventual redemption rates and point values. Upon redemption of points, the Company recognizes the previously deferred revenue as well as the corresponding expense relating to the cost of the awards redeemed.
10. Long-Term Debt
Debt consisted of the following at:
| |
|
December 31, |
|
|
|
| |
|
2003 |
|
2002 |
|
|
|
|
| |
|
(In thousands) |
| $ |
265 million competitive advance and multi-currency revolving credit facility with an |
| |
effective rate of 2.29% and 3.05% at December 31, 2003 and 2002, respectively |
|
$ |
143,458 |
|
$ |
200,708 |
|
| $ |
100 million senior notes with an effective rate of 7.22% at December 31, 2003 and 2002 |
|
|
99,720 |
|
|
99,655 |
|
| $ |
20 million lines of credit with an effective rate of 2.25% and 2.50% at December 31, |
| |
2003 and 2002, respectively |
|
|
2,600 |
|
|
6,400 |
|
| Other notes with an average effective rate of 2.89% and 3.30% at December 31, 2003 and |
| |
2002, respectively |
|
|
874 |
|
|
1,028 |
|
|
|
|
|
| |
Total debt |
|
$ |
246,652 |
|
$ |
307,791 |
|
|
|
|
|
|
|
|
|
|
|
