EX-13.02 5 dex1302.txt SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS EXHIBIT 13.02 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Choice Hotels International, Inc. and subsidiaries: We have audited in accordance with auditing standards generally accepted in the United States, the consolidated financial statements included in Choice Hotels International, Inc.'s and subsidiaries (the "Company") annual report to shareholders incorporated by reference in this Form 10-K, and have issued our opinion thereon dated March 20, 2002. Our audit was made for the purpose of forming an opinion on those consolidated financial statements taken as a whole. The schedule listed in the index under Item 14(a)2 is the responsibility of the Company's management and is presented for purposes of complying with the Securities and Exchange Commission's rules and is not part of the basic consolidated financial statements. This schedule has been subjected to the auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion, fairly states in all material respects the financial data required to be set forth therein in relation to the basic consolidated financial statements taken as a whole. /s/ Arthur Andersen LLP Vienna, Virginia March 20, 2002 CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS (In thousands of dollars)
Charges Balance at (Credits) to Balance at Beginning of Profit Write-Offs/ End Description Period and Loss Deductions of Period ----------- ------ -------- ---------- ---------- Accounts Receivable: Year ended December 31, 2001 Allowance for doubtful accounts $5,754 $1,388 $(1,750) $5,392 ====== ====== ======== ====== Year ended December 31, 2000 Allowance for doubtful accounts $6,691 $(585) $ (352) $5,754 ====== ====== ======== ====== Year ended December 31, 1999 Allowance for doubtful accounts $8,082 $ 588 $(1,979) $6,691 ====== ===== ======== ====== Balance at Charges to Balance at Beginning of Profit Write-Offs/ End Period and Loss Deductions of Period ------ -------- ---------- ---------- Restructuring Liability: Year ended December 31, 2001 Restructuring allowance $5,100 $5,940 $(6,156) $4,884 ====== ====== ======== ====== Year ended December 31, 2000 Restructuring allowance $ - $5,637 $ (537) $5,100 ====== ====== ======== ======