CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

For purposes of the pro forma disclosure, compensation cost for the Company’s stock option plan was determined based on the fair value at the grant dates for awards under those plans consistent with the method of SFAS No. 123. The fair value of each option grant has been estimated on the date of grant using an optionpricing model with the following weighted average assumptions used for grants in 2001, 2000 and 1999:

If options had been reported as compensation expense based on their fair value, pro forma net income would have been $13.4 million, $41.8 million and $56.4 million for the years ended December 31, 2001, 2000 and 1999, respectively, and pro forma earnings per share would have been $0.47, $0.79 and $1.01, respectively.

Through December 31, 2001, the Company had repurchased 21.1 million shares of its common stock at a total cost of $314.0 million, including 12.0 million shares at a cost of $185.7 million during the year ended December 31, 2001. The Company has received authorization from its board of directors to repurchase up to an additional 5.3 million shares under the terms of the repurchase plan.

15. Comprehensive Income

The components of total accumulated other comprehensive income are as follows: