Finance statement questions

CHH 2017 10‐K Report CHH 2016 10‐K Report MAR 2017 10‐K Report MAR 2016 10‐K Report

Choice Hotels 2017 2016 (2017/2016)‐1 Marriott International 2017 2016 (2017/2016)‐1

CASH FLOWS FROM OPERATING ACTIVITIES 2017 10‐K 2016 10‐K

Percent change from  2016 to 2017

CASH FLOWS FROM OPERATING ACTIVITIES 2017 10‐K 2016 10‐K

Percent  change from  2016 to 2017

Net income 114,893$                           139,371$                           ‐18% Net income 1,372$                                  780$                                     76%

Adjustments to reconcile net income to net cash provided by operating activities Adjustments to reconcile to cash provided  by operating activities:

Depreciation and amortization 12,431$                             11,705$                             6% Depreciation, amortization, and other 290$                                   168$                                   73% Loss (gain) on disposal of assets 52$                                    (346)$                                 ‐115% Share‐based compensation 181$                                   212$                                   ‐15% Provision for bad debts, net 3,440$                               2,151$                               60% Income taxes 828$                                   76$                                     989% Non‐cash stock compensation and other charges 23,340$                             15,458$                             51% Liability for guest loyalty program 378$                                   343$                                   10% Non‐cash interest and other (income) loss (772)$                                 1,059$                               ‐173% Merger‐related charges (124)$                                  113$                                   ‐210% Deferred income taxes 39,320$                             (10,542)$                           ‐473% Working capital changes 81$                                     (77)$                                    ‐205% Equity in net losses from unconsolidated joint ventures, less distributions received 6,579$                               1,025$                               542% (Gain) loss on asset dispositions (687)$                                  1$                                       ‐68800% Changes in assets and liabilities, net of acquisition Other 117$                                   66$                                     77% Receivables (23,126)$                           (21,919)$                           6% Net cash provided by operating activities 2,436$                                1,682$                                45% Advances to/from marketing and reservation system activities, net 51,722$                             (21,449)$                           ‐341% Forgivable notes receivable, net (30,638)$                           (17,410)$                           76% INVESTING ACTIVITIES

Accounts payable 12,455$                               (13,689)$                             ‐191% Acquisition of a business, net of cash acquired

‐$                                      (2,412)$                                ‐100% Accrued expenses and other current liabilities 7,176$                               5,225$                               37% Capital expenditures (240)$                                  (199)$                                  21% Income taxes payable/receivable 31,383$                             5,775$                               443% Dispositions 1,418$                                218$                                   550% Deferred revenue 7,797$                               61,646$                             ‐87% Loan advances (93)$                                    (32)$                                    191% Other assets 1,521$                               (8,703)$                              ‐117% Loan collections 187$                                   67$                                     179% Other liabilities (199)$                                 2,678$                               ‐107% Contract acquisition costs (189)$                                  (80)$                                    136% Net cash provided by operating activities 257,374$                           152,035$                           69% Redemption of debt security ‐$                                    ‐$                                   

Other (63)$                                    29$                                     ‐317%

CASH FLOWS FROM INVESTING ACTIVITIES Net cash provided by (used in) investing  activities 1,020$                                  (2,409)$                                ‐142%

Investment in property and equipment (23,437)$                           (25,191)$                           ‐7% Investment in intangible assets (2,517)$                              (2,580)$                              ‐2% FINANCING ACTIVITIES Proceeds from sales of assets 1,000$                               11,462$                             ‐91% Commercial paper/Credit Facility, net 25$                                     1,365$                                ‐98% Acquisitions of real estate ‐$                                   (28,583)$                           ‐100% Issuance of long‐term debt ‐$                                    1,482$                                ‐100% Business acquisition, net of cash acquired ‐$                                   (1,341)$                              ‐100% Repayment of long‐term debt (310)$                                  (326)$                                  ‐5% Contributions to equity method investments (50,554)$                           (34,661)$                           46% Issuance of Class A Common Stock 6$                                       34$                                     ‐82% Distributions from equity method investments 4,569$                               3,700$                               23% Dividends paid (482)$                                  (374)$                                  29% Purchases of investments, employee benefit plans (2,447)$                              (1,661)$                              47% Purchase of treasury stock (3,013)$                              (568)$                                  430%

Proceeds from sales of investments, employee benefit plans 2,245$                                 1,911$                                 17% Share‐based compensation withholding taxes

(157)$                                    (100)$                                    57% Issuance of mezzanine and other notes receivable (19,738)$                           (32,604)$                           ‐39% Other ‐$                                    (24)$                                    ‐100%

Collections of mezzanine and other notes receivable 655$                                    11,070$                               ‐94%

Net cash (used in) provided by financing  activities (3,931)$                                1,489$                                  ‐364%

Other items, net 109$                                    11$                                      891%

(DECREASE) INCREASE IN CASH AND  EQUIVALENTS (475)$                                    762$                                     ‐162%

Net cash used by investing activities (90,115)$                             (98,467)$                             ‐8%

CASH AND EQUIVALENTS, beginning of  period 858$                                     96$                                       794% CASH AND EQUIVALENTS, end of period 383$                                   858$                                   ‐55%

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long‐term debt ‐$                                   ‐$                                   Net (repayments) borrowings pursuant to revolving credit facilities (115,003)$                         25,795$                             ‐546% Principal payments on long‐term debt (660)$                                 (988)$                                 ‐33% Proceeds from other debt agreements ‐$                                   550$                                  ‐100% Debt issuance costs ‐$                                   (284)$                                 ‐100% Purchases of treasury stock (9,807)$                              (35,926)$                           ‐73% Dividends paid (48,651)$                           (46,182)$                           5% Proceeds from transfer of interest in notes receivable 24,237$                             ‐$                                   Proceeds from exercise of stock options 14,107$                             12,951$                             9% Net cash used by financing activities (135,777)$                         (44,084)$                           208% Net change in cash and cash equivalents 31,482$                             9,484$                               232% Effect of foreign exchange rate changes on cash and cash equivalents 1,391$                               (462)$                                 ‐401% Cash and cash equivalents at beginning of period 202,463$                           193,441$                           5% Cash and cash equivalents at end of period 235,336$                           202,463$                           16%

10‐K 10‐K