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Choice Hotels International, Inc. and Subsidiaries

The components of total accumulated other comprehensive income in the consolidated balance sheets are as follows:

The related income tax effect allocated to each component of other comprehensive income (loss) is as follows:

Below represents the detail of other comprehensive income:

Earnings Per Share

The Company adopted SFAS No. 128, “Earnings Per Share,” in 1997. The following table illustrates the reconciliation of the earnings and number of shares used in the basic and diluted earnings per share calculations.

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