please read footnote 13 and answer Question #4

Total shareholders's deficit 4. What does the "Long-term debt" item represent? 5. What is the most significant trend based on your horizontal While the total amount of assets increased by 14.39% on a year year basis from 2017 to 2018 we can see that the company's tot current assets declined by 39.12% During the same period total c liabilities increased by 11.87% and this means that the company's current ratio declined. This is an indication of the company's Horizontal Analysis Consolidated Balance Sheets - USD ($) $ in Thousands 12 Months Ended Dec. 31, 2018 Dec 31, 2017 $ Change 2017 to 2018 % Change 2017 to 2018 $235,336 $208,694.00 -88.68% $125,870 Current assets Cash and cash equivalents $26,642 Receivables (net of allowance for doubtful accounts of $15,905 and $12,221, respectively) $138,018 Income taxes receivable $10,122 Notes receivable, net of allowances $36,759 Other current assets $32,243 Total current assets $243,784 Property and equipment, at cost, net $127,535 Goodwill $168,996 Intangible assets, net $271,188 Notes receivable, net of allowances $83,440 Investments, employee benefit plans, at fair value $19,398 Investments in unconsolidated entities $109,016 Deferred income taxes $30,613 Other assets $84,400 Total assets $1,138,370 Current liabilities Accounts payable $73,511 Accrued expenses and other current liabilities $92,651 Deferred Revenue $67,614 Liability for guest loyalty program $83,566 Current portion of long-term debt $1,097 Total current liabilities $318,439 Long-term debt $753,514 Instructions 10-K Document Questions Balance Sheet income Statement $13,256 $25,967 $400,429 $83,374 $80,757 $100,492 $80,136 $20,838 $134,226 $27,224 $67,715 $995,191 $12,148.00 $10,122.00 $23,503.00 $6,276.00 -$156,645.00 $44,161.00 $88,239.00 $170,696.00 $3,304.00 -$1,440.00 $25,210.00 S3,389.00 $16,685.00 $143,179.00 9.65%6 0.00% 177.30% 24.17% 39.12% 52.97% 109.26% 169.86% 4.12% -6.91% -18.78% 12.45% 24.64% 14.39% $67,839 $84,315 $52,142 $79,123 $1,232 $284,651 $725,292 Statement of Cash Flows $5,672.00 $8,336.00 $15,472.00 $4,443.00 $135.00 $33,788.00 $28,222.00 Ratio Analysis 8.36% 9.89% 29.6796 5.62% 10.96% 11.87% $110,278 $24,212 $26,276 D $98,459 $25,566 $29,041 $39 $48,701 $42,043 $1,253,792 So $11,819.00 -$1,354.00 -$2,765.00 $39.00 $3,626.00 -$4,947.00 $68,350.00 12.00% -5.30% -9.52% -100.00% 7.45% -1177.00% 5.45% $52,327 $37,096 $1,322,142 B Long-term portion Deferred compensation and retirement plan obligations Income taxes payable Deferred income taxes Liability for guest loyalty program Other liabilities Total liabilities Commitments and Contingencies Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2018 and December 31, 2017; 55,679,207 and 56,679,968 shares outstanding at December 31, 2018 and December 31, 2017, respectively Additional paid-in-capital Accumulated other comprehensive loss Treasury stock, at cost; 39,386,431 and 38,385,670 shares at December 31, 2018 and December 31, 2017, respectively Retained earnings Total shareholders' deficit Total liabilities and shareholders' deficit $951 $213,170 $5,446 $951 $182,448 $4,699 $0.00 $30,722.00 -$747.00 0.00% 16.84% 15.909 $1,187,625 $795,178 -$183,772 $1,138,370 $1,064,573 $627,272 -$258,601 $995,191 -$123,052.00 $167,906.00 $74,829.00 $143,179.00 11.56% 26.77% -28.94% 14.39% Questions: 1. Choice Hotels works with franchisees who operate hotels under one of the Choice Hotels brands such as Cambria Hotels, Sleep Inn, and Econo Lodge. The Bale called Property and equipment, at cost, net. What is Property and equipment, at cost, net and why was there a significant difference from 2017 to 2018? Property, plant and equipment, at cost, net refers to the sum of tangible fixed assets held/owned by the company which are valued at historical cost of the asset and less depreciation till date. From 2017- Cash equivalents (29 ) - and cash equivalents at beginning of period Cash and cash equivalents at end of period 14.696 Table of Contents 13. Reportable Segment Information under Hotel Franchising: Hotel franchising includes the Company's hotel franchising opentions consisting of its twelve brands. The twee brands are sported within this segment in calderation of their regulatory business environments Revenues from the hotel franchising business include royalty fees initial re comme un d ndre mai drewn its hotel franchise agreements to provide marketing and reservation services appropriate for the operation of its systems. These services do not represent separate portable moments as their operation are directly related to the Company hatel trascing e procuremen t and other fructe de The C o The received from franchisees that are used to pay for part of the Company's ongoing operations are included in hotel franchising revenues and are offset by the related expenses and for marketing and event s to make hotel recept The financial results for the three and six months ended June 10, 2017 have been updated to reflect the Company'adoption of Topic006 as died in Note 1 In addition the financial related to SkyTouch reported an come tes of dance ment without allocate corporate manly on the results of the The Company evaluates its hotel franchisine segment based and r strepen, wuch we w ent the Cape & Other Ou one which provide cloedsed property ma n t ra revenues include rental income related to an office building owned by the Company is well as revenues related to the Company's Vacation rental cities and its Santechnology solutions d es t e com a nda related joint ventures is located to the Company Botel tranchissement The Company does it allocate hoteliers and Vacation rental management companies Equity in earnings or losses from hotel france income taxes to its segments The following table presents the financial information for the Company's hotel tranchising sement TF1 The the se Corpora i er Franc ta thousands O Type here to search