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Company Information and Significant Accounting Policies Company Information and Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2014
Accounting Policies [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
The following tables present the effect of this and other immaterial errors for the financial statement line items impacted in the affected periods included within this interim financial report. In addition, these amounts have been adjusted to reflect the Company's discontinued operations reported in the first quarter of 2014.


Consolidated Statements of Income
 
 
Three Months Ended June 30, 2013
 
Six Months Ended June 30, 2013
 
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Restated
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Restated
 
 
(in thousands, except per share amounts)
Royalty fees
 
$
68,379

 
$
—

 
$
4,259

 
$
72,638

 
$
118,115

 
$
—

 
$
10,631

 
$
128,746

Marketing and reservation revenues
 
99,645

 
—

 
4,427

 
104,072

 
176,085

 
—

 
10,310

 
186,395

Hotel operations
 
1,334

 
(1,334
)
 
—

 
—

 
2,290

 
(2,290
)
 
—

 
—

Total revenues
 
183,578

 
(1,334
)
 
8,686

 
190,930

 
320,450

 
(2,290
)
 
20,941

 
339,101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
30,180

 
—

 
(449
)
 
29,731

 
57,096

 
—

 
(697
)
 
56,399

Depreciation and amortization
 
2,520

 
(132
)
 
—

 
2,388

 
4,695

 
(266
)
 
—

 
4,429

Marketing and reservation expenses
 
99,645

 
—

 
4,427

 
104,072

 
176,085

 
—

 
10,310

 
186,395

Hotel operations
 
911

 
(911
)
 
—

 
—

 
1,786

 
(1,786
)
 
—

 
—

Total operating expenses
 
133,256

 
(1,043
)
 
3,978

 
136,191

 
239,662

 
(2,052
)
 
9,613

 
247,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
50,322

 
(291
)
 
4,708

 
54,739

 
80,788

 
(238
)
 
11,328

 
91,878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
40,087

 
(291
)
 
4,708

 
44,504

 
60,996

 
(238
)
 
11,328

 
72,086

Income taxes
 
11,853

 
(108
)
 
1,135

 
12,880

 
17,239

 
(88
)
 
3,535

 
20,686

Income from continuing operations, net of income taxes
 
28,234

 
(183
)
 
3,573

 
31,624

 
43,757

 
(150
)
 
7,793

 
51,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share, continuing operations
 
$
0.48

 
$
—

 
$
0.06

 
$
0.54

 
$
0.75

 
$
—

 
$
0.13

 
$
0.88

Diluted earnings per share, continuing operations
 
$
0.48

 
$
—

 
$
0.06

 
$
0.54

 
$
0.74

 
$
—

 
$
0.14

 
$
0.88


 
 
Six Months Ended June 30, 2013
 
 
As Previously Reported
 
Adjustment
 
As Restated
Consolidated Statement of Cash Flows
 
(in thousands)
Net income
 
$
43,757

 
$
7,793

 
$
51,550

Provision for bad debts, net
 
1,420

 
333

 
1,753

Non-cash stock compensation and other charges
 
5,581

 
(15
)
 
5,566

Deferred income taxes
 
4,169

 
4,067

 
8,236

Change in assets and liabilities
 
 
 
 
 
 
Receivables
 
(21,156
)
 
(19,193
)
 
(40,349
)
Advances to/from marketing and reservation activities, net
 
(2,945
)
 
8,576

 
5,631

Income taxes payable/receivable
 
1,729

 
(531
)
 
1,198

Net cash provided by operating activities
 
28,957

 
1,030

 
29,987

Investment in property and equipment
 
(21,005
)
 
(1,030
)
 
(22,035
)
Net cash used in investing activities
 
(20,605
)
 
(1,030
)
 
(21,635
)
                        
 
As of December 31, 2013
 
As Previously Reported
 
Adjustment
 
As Revised
Consolidated Balance Sheet
(in thousands)
Receivables
$
53,521

 
$
28,864

 
$
82,385

Deferred income taxes
7,220

 
19,464

 
26,684

Total current assets
258,646

 
48,328

 
306,974

Property and equipment, at cost, net
66,092

 
1,760

 
67,852

Advances, marketing and reservation activities
19,127

 
(13,283
)
 
5,844

Deferred income taxes
20,282

 
(20,282
)
 
—

Total assets
539,899

 
16,523

 
556,422

Deferred income taxes
—

 
5,149

 
5,149

Total liabilities
1,004,144

 
5,149

 
1,009,293

Retained earnings
341,649

 
11,374

 
353,023

Total shareholders' deficit
(464,245
)
 
11,374

 
(452,871
)
The following tables present the effect of this and other immaterial errors for the financial statement line items impacted in the Company's quarterly reports on Form 10-Q which will be amended for the interim periods ended March 31, 2014 and September 30, 2013 and corresponding prior year periods. These amended reports will be filed with the SEC as soon as administratively possible. In addition, these amounts have been adjusted to reflect the Company's discontinued operations reported in the first quarter of 2014.
Consolidated Statements of Income        
 
 
Three Months Ended March 31, 2014
 
Three Months Ended March 31, 2013
 
 
As Previously Reported
 
Adjustment
 
As Restated
 
As Previously Reported
 
Adjustment
 
As Restated
 
 
(in thousands, except per share amounts)
Royalty fees
 
$
51,681

 
$
6,859

 
$
58,540

 
$
49,736

 
$
6,372

 
$
56,108

Marketing and reservation revenues
 
84,012

 
5,594

 
89,606

 
76,440

 
5,883

 
82,323

Total revenues
 
147,283

 
12,453

 
159,736

 
135,916

 
12,255

 
148,171


 

 

 

 

 

 

Selling, general and administrative
 
26,463

 
217

 
26,680

 
26,916

 
(248
)
 
26,668

Depreciation and amortization
 
2,122

 
156

 
2,278

 
2,041

 
—

 
2,041

Marketing and reservation expenses
 
84,012

 
5,594

 
89,606

 
76,440

 
5,883

 
82,323

Total operating expenses
 
112,597

 
5,967

 
118,564

 
105,397

 
5,635

 
111,032

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
34,686

 
6,486

 
41,172

 
30,519

 
6,620

 
37,139

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
25,042

 
6,486

 
31,528

 
20,962

 
6,620

 
27,582

Income taxes
 
7,711

 
2,348

 
10,059

 
5,406

 
2,400

 
7,806

Income from continuing operations, net of income taxes
 
17,331

 
4,138

 
21,469

 
15,556

 
4,220

 
19,776

 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share, continuing operations
 
$
0.30

 
$
0.07

 
$
0.37

 
$
0.27

 
$
0.07

 
$
0.34

Diluted earnings per share, continuing operations
 
$
0.29

 
$
0.07

 
$
0.36

 
$
0.26

 
$
0.08

 
$
0.34

 
 
Three Months Ended March 31, 2014
 
 Three Months Ended March 31, 2013
Consolidated Statements of Cash Flow
 
As Previously Reported
 
Adjustment
 
As Restated
 
As Previously Reported
 
Adjustment
 
As Restated
 
 
(in thousands)
Net cash provided by operating activities
 
$
5,264

 
$
—

 
$
5,264

 
$
145

 
$
450

 
$
595

Investment in property and equipment
 
(3,015
)
 
—

 
(3,015
)
 
(13,645
)
 
(450
)
 
(14,095
)
Net cash provided (used) by investing activities
 
1,027

 
—

 
1,027

 
(12,087
)
 
(450
)
 
(12,537
)
 
 
As of March 31, 2014
 
 
As Previously Reported
 
Adjustment
 
As Restated
Consolidated Balance Sheet
 
(in thousands)
Receivables
 
$
59,241

 
$
40,906

 
$
100,147

Deferred income taxes
 
7,220

 
21,202

 
28,422

Total current assets
 
277,714

 
62,108

 
339,822

Property and equipment, at cost, net
 
56,664

 
1,604

 
58,268

Advances, marketing and reservation activities
 
18,856

 
(18,696
)
 
160

Deferred income taxes
 
20,321

 
(20,321
)
 
—

Total assets
 
554,900

 
24,695

 
579,595

Deferred income taxes
 
—

 
9,196

 
9,196

Total liabilities
 
1,009,533

 
9,196

 
1,018,729

Retained earnings
 
349,458

 
15,511

 
364,969

Total shareholders' deficit
 
(454,633
)
 
15,499

 
(439,134
)
Consolidated Statements of Income        
 
 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
 
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Restated
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Restated
 
 
(in thousands, except per share amounts)
Royalty fees
 
$
83,107

 
$
—

 
$
(3,647
)
 
$
79,460

 
$
201,222

 
$
—

 
$
6,984

 
$
208,206

Marketing and reservation revenues
 
126,296

 
—

 
(1,487
)
 
124,809

 
302,381

 
—

 
8,823

 
311,204

Hotel operations
 
1,310

 
(1,310
)
 
—

 
—

 
3,600

 
(3,600
)
 
—

 
—

Total revenues
 
223,162

 
(1,310
)
 
(5,134
)
 
216,718

 
543,612

 
(3,600
)
 
15,807

 
555,819

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
26,982

 
—

 
(573
)
 
26,409

 
84,078

 
—

 
(1,270
)
 
82,808

Depreciation and amortization
 
2,379

 
(127
)
 
20

 
2,272

 
7,074

 
(393
)
 
20

 
6,701

Marketing and reservation expenses
 
126,296

 
—

 
(1,487
)
 
124,809

 
302,381

 
—

 
8,823

 
311,204

Hotel operations
 
956

 
(956
)
 
—

 
—

 
2,742

 
(2,742
)
 
—

 
—

Total operating expenses
 
156,613

 
(1,083
)
 
(2,040
)
 
153,490

 
396,275

 
(3,135
)
 
7,573

 
400,713

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
66,549

 
(227
)
 
(3,094
)
 
63,228

 
147,337

 
(465
)
 
8,234

 
155,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
57,592

 
(227
)
 
(3,094
)
 
54,271

 
118,588

 
(465
)
 
8,234

 
126,357

Income taxes
 
16,080

 
(84
)
 
(298
)
 
15,698

 
33,319

 
(172
)
 
3,237

 
36,384

Income from continuing operations, net of income taxes
 
41,512

 
(143
)
 
(2,796
)
 
38,573

 
85,269

 
(293
)
 
4,997

 
89,973

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share, continuing operations
 
$
0.71

 
$
—

 
$
(0.05
)
 
$
0.66

 
$
1.46

 
$
—

 
$
0.08

 
$
1.54

Diluted earnings per share, continuing operations
 
$
0.70

 
(0.01
)
 
$
(0.04
)
 
$
0.65

 
$
1.45

 
$
—

 
$
0.08

 
$
1.53

 
 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
 
 
As Previously Filed
 
Discontinued Operations
 
Adjustment
 
As Restated
 
As Previously Filed
 
Discontinued Operations
 
Adjustment
 
As Restated
 
 
(in thousands, except per share amounts)
Royalty fees
 
$
80,845

 
$
—

 
$
(2,807
)
 
$
78,038

 
$
194,762

 
$
—

 
$
8,225

 
$
202,987

Marketing and reservation revenues
 
119,062

 
—

 
(1,097
)
 
117,965

 
284,624

 
—

 
9,721

 
294,345

Hotel operations
 
1,238

 
(1,238
)
 
—

 
—

 
3,440

 
(3,440
)
 
—

 
—

Total revenues
 
210,413

 
(1,238
)
 
(3,904
)
 
205,271

 
513,203

 
(3,440
)
 
17,946

 
527,709

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
23,170

 
—

 
(98
)
 
23,072

 
72,073

 
—

 
249

 
72,322

Depreciation and amortization
 
1,995

 
(135
)
 
—

 
1,860

 
5,989

 
(401
)
 
—

 
5,588

Marketing and reservation expenses
 
119,062

 
—

 
(1,097
)
 
117,965

 
284,624

 
—

 
9,721

 
294,345

Hotel operations
 
933

 
(933
)
 
—

 
—

 
2,609

 
(2,609
)
 
—

 
—

Total operating expenses
 
145,160

 
(1,068
)
 
(1,195
)
 
142,897

 
365,295

 
(3,010
)
 
9,970

 
372,255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
65,253

 
(170
)
 
(2,709
)
 
62,374

 
147,908

 
(430
)
 
7,976

 
155,454

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
 
55,668

 
(170
)
 
(2,709
)
 
52,789

 
133,840

 
(430
)
 
7,976

 
141,386

Income taxes
 
11,291

 
(63
)
 
(1,076
)
 
10,152

 
37,604

 
(160
)
 
3,303

 
40,747

Income from continuing operations, net of income taxes
 
44,377

 
(107
)
 
(1,633
)
 
42,637

 
96,236

 
(270
)
 
4,673

 
100,639

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share, continuing operations
 
$
0.77

 
$
—

 
$
(0.03
)
 
$
0.74

 
$
1.66

 
$
(0.01
)
 
$
0.08

 
$
1.73

Diluted earnings per share, continuing operations
 
$
0.76

 
$
—

 
$
(0.03
)
 
$
0.73

 
$
1.65

 
$
—

 
$
0.08

 
$
1.73

                        
 
 
Nine Months Ended September 30, 2013
Consolidated Statement of Cash Flows
 
As Previously Filed
 
Adjustment
 
As Restated
 
 
(in thousands)
Net cash provided by operating activities
 
$
105,009

 
$
1,480

 
$
106,489

Investment in property and equipment
 
(26,442
)
 
(1,480
)
 
(27,922
)
Net cash used in investing activities
 
(28,350
)
 
(1,480
)
 
(29,830
)
 
 
As of September 30, 2013
 
As of December 31, 2012
 
 
As Previously Reported
 
Adjustment
 
As Restated
 
As Previously Reported
 
Adjustment
 
As Revised
Consolidated Balance Sheets
 
(in thousands)
Receivables
 
$
62,605

 
$
40,282

 
$
102,887

 
$
52,270

 
$
27,729

 
$
79,999

Income taxes receivable
 
—

 
—

 
—

 
2,732

 
(531
)
 
2,201

Deferred income taxes
 
4,136

 
23,231

 
27,367

 
4,136

 
22,062

 
26,198

Total current assets
 
258,267

 
63,513

 
321,780

 
233,470

 
49,260

 
282,730

Property and equipment, at cost, net
 
65,540

 
1,460

 
67,000

 
51,651

 
—

 
51,651

Advances, marketing and reservation activities
 
32,564

 
(18,494
)
 
14,070

 
42,179

 
(12,712
)
 
29,467

Deferred income taxes
 
19,496

 
(19,496
)
 
—

 
15,418

 
(15,418
)
 
—

Total assets
 
555,709

 
26,983

 
582,692

 
510,772

 
21,130

 
531,902

Deferred income taxes
 
—

 
11,722

 
11,722

 
—

 
10,864

 
10,864

Total liabilities
 
1,040,433

 
11,722

 
1,052,155

 
1,059,676

 
10,864

 
1,070,540

Retained earnings
 
325,005

 
15,264

 
340,269

 
272,260

 
10,266

 
282,526

Total shareholders' deficit
 
(484,724
)
 
15,261

 
(469,463
)
 
(548,904
)
 
10,266

 
(538,638
)

The following tables present the effect of this and other immaterial errors for the financial statement line items impacted for the years ended December 31, 2011, 2012, and 2013 which will be revised prospectively in future annual filings. In addition, these amounts have been adjusted to reflect the Company's discontinued operations reported in the first quarter of 2014.
Consolidated Statements of Income
 
Year Ended December 31, 2013
 
Year Ended December 31, 2012
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Revised
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Revised
 
(in thousands, except per share amounts)
Royalty fees
$
267,229

 
$
—

 
$
583

 
$
267,812

 
$
260,782

 
$
—

 
$
898

 
$
261,680

Marketing and reservation revenues
403,099

 
—

 
4,534

 
407,633

 
384,784

 
—

 
4,894

 
389,678

Hotel operations
4,774

 
(4,774
)
 
—

 
—

 
4,573

 
(4,573
)
 
—

 
—

Total revenues
724,307

 
(4,774
)
 
5,117

 
724,650

 
691,509

 
(4,573
)
 
5,792

 
692,728

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
113,567

 
—

 
(1,854
)
 
111,713

 
101,852

 
—

 
27

 
101,879

Depreciation and amortization
9,469

 
(526
)
 
113

 
9,056

 
8,226

 
(535
)
 
—

 
7,691

Marketing and reservation expenses
403,099

 
—

 
4,534

 
407,633

 
384,784

 
—

 
4,894

 
389,678

Hotel operations
3,678

 
(3,678
)
 
—

 
—

 
3,505

 
(3,505
)
 
—

 
—

Total operating expenses
529,813

 
(4,204
)
 
2,793

 
528,402

 
498,367

 
(4,040
)
 
4,921

 
499,248

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income
194,494

 
(570
)
 
2,324

 
196,248

 
193,142

 
(533
)
 
871

 
193,480

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
156,918

 
(570
)
 
2,324

 
158,672

 
169,168

 
(533
)
 
871

 
169,506

Income taxes
44,317

 
(211
)
 
1,216

 
45,322

 
48,481

 
(198
)
 
(55
)
 
48,228

Income from continuing operations, net of income taxes
112,601

 
(359
)
 
1,108

 
113,350

 
120,687

 
(335
)
 
926

 
121,278

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share, continuing operations
$
1.92

 
$
—

 
$
0.02

 
$
1.94

 
$
2.08

 
$
—

 
$
0.01

 
$
2.09

Diluted earnings per share, continuing operations
$
1.91

 
$
(0.01
)
 
$
0.02

 
$
1.92

 
$
2.07

 
$
(0.01
)
 
$
0.02

 
$
2.08

 
Year Ended December 31, 2011
 
As Previously Reported
 
Discontinued Operations
 
Adjustment
 
As Revised
 
(in thousands, except per share amounts)
Royalty fees
$
245,426

 
$
—

 
$
1,049

 
$
246,475

Marketing and reservation revenues
349,036

 
—

 
5,116

 
354,152

Hotel operations
4,356

 
(4,356
)
 
—

 
—

Total revenues
638,793

 
(4,356
)
 
6,165

 
640,602

 
 
 
 
 
 
 
 
Selling, general and administrative
106,404

 
—

 
32

 
106,436

Depreciation and amortization
8,024

 
(527
)
 
—

 
7,497

Marketing and reservation expenses
349,036

 
—

 
5,116

 
354,152

Hotel operations
3,466

 
(3,466
)
 
—

 
—

Total operating expenses
466,930

 
(3,993
)
 
5,148

 
468,085

 
 
 
 
 
 
 
 
Operating income
171,863

 
(363
)
 
1,017

 
172,517

 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
158,057

 
(363
)
 
1,017

 
158,711

Income taxes
47,661

 
(135
)
 
352

 
47,878

Income from continuing operations, net of income taxes
110,396

 
(228
)
 
665

 
110,833

 
 
 
 
 
 
 
 
Basic earnings per share, continuing operations
$
1.86

 
$
(0.01
)
 
$
0.01

 
$
1.86

Diluted earnings per share, continuing operations
$
1.85

 
$
(0.01
)
 
$
0.02

 
$
1.86

 
Year Ended Ended December 31, 2013
 
As Previously Reported
 
Adjustment
 
As Revised
Consolidated Statement of Cash Flows
(in thousands)
Net cash provided by operating activities
$
152,040

 
$
1,873

 
$
153,913

Investment in property and equipment
(31,524
)
 
(1,873
)
 
(33,397
)
Net cash used in investing activities
(27,549
)
 
(1,873
)
 
(29,422
)