|
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
16. Comprehensive Income
The components of total accumulated other comprehensive income are as follows:
| |
|
December 31, |
|
 |
|
| |
2003 |
|
2002 |
|
2001 |
|
|
|
|
| |
|
(In thousands) |
|
| Unrealized gains (losses) on available-for-sale securities |
$ |
(18 |
) |
$ |
(80 |
) |
$ |
(202 |
) |
| Foreign currency translation adjustments |
|
866 |
|
|
(235 |
) |
|
(576 |
) |
| Deferred gain on hedging activity |
|
290 |
|
|
357 |
|
|
424 |
|
|
|
|
|
| Total accumulated other comprehensive income (loss) |
$ |
1,138 |
|
$ |
42 |
|
$ |
(354 |
) |
|
|
|
|
|
|
|
|
|
The components of total accumulated other comprehensive income are as follows:
|
| |
Amount Before |
Income Tax |
Amount Net |
| |
Taxes |
(Expense)/Benefit |
of Taxes |
|
|
|
|
| |
|
(In thousands) |
|
| 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 |
) |
|
|
|
|
| Total other comprehensive income |
$ |
426 |
|
$ |
(30 |
) |
$ |
396 |
|
|
|
|
|
|
|
|
|
|
| 2001 |
| Net unrealized losses |
$ |
(179 |
) |
$ |
(131 |
) |
$ |
(310 |
) |
| Foreign currency translation adjustment, net |
|
(414 |
) |
|
— |
|
|
(414 |
) |
|
|
|
|
| Total other comprehensive loss |
$ |
(593 |
) |
$ |
(131 |
) |
$ |
(724 |
) |
|
|
|
|
|
|
|
|
|
Below represents the detail of other comprehensive income:
|
| |
|
December 31, |
|
|
|
| |
2003 |
2002 |
2001 |
|
|
|
|
| Unrealized holding gains (losses) arising during the period, net |
$ |
62 |
|
$ |
122 |
|
$ |
(352 |
) |
| Less: reclassification adjustments for losses/gains included in net income |
|
— |
|
|
— |
|
|
42 |
|
|
|
|
|
| Net unrealized holding gains (losses) arising during the period |
$ |
62 |
|
$ |
122 |
|
$ |
(310 |
) |
|
|
|
|
| Foreign currency translation adjustments |
$ |
1,101 |
|
$ |
341 |
|
$ |
(414 |
) |
|
|
|
|
| Amortization of deferred gain on hedging activity |
$ |
(67 |
) |
$ |
(67 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
|
In December 1999, the Company entered into an interest rate swap agreement to fix certain of its variable rate debt in order to reduce the Company’s exposure to fluctuations in interest rates. On March 3, 2000, the interest rate swap agreement was settled resulting in a deferred gain. In accordance with SFAS 133, the unamortized gain was reclassified in 2001 to other comprehensive income and is being amortized over the remaining life of the related debt as a reduction of interest expense. In each of 2003 and 2002, the Company recorded approximately $67,000, net of taxes, of amortization related to this deferred gain.
|
