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The company operates certain hotels under long-term
agreements (up to 75 years including renewal options)
with rentals and management fees based primarily on
hotel profits.
Rent expense consists of:
1983 1982 1981
(in thousands)
inimum rentals on
operating leases
$ 50,428
$ 47,907
$19,470
dditional rentals based on
sales
operating leases
28,950
20,477
11,818
capital leases
2,505
3,358
1,698
$ 81,883
$ 71,742
$32,986
lyments to owners of leased
and managed hotels
$182,656
$135,233
$97,124
CAPITAL STOCK
Sixty million shares of common stock, with a par
value of $1 per share, are authorized, of which 29,421,574
and 29,423,664 were issued at December 30,1983 and
December 31,1982, respectively, including treasury stock
of 2,545,230 and 2,868,972, respectively. One million
shares of preferred stock, without par value, are authorized. As of December 30,1983, no preferred shares have
been issued.
Total common stock shares reserved at December 30,
1983 are:
Employee stock option plan 1,781,581
Deferred stock compensation program
(516,875 shares fully vested) 931,686
Employee qualified stock purchase plan 531,444
Restricted stock plan for key employees 25,000
Conversions of convertible subordinated debt 1,952
Total shares reserved 3,271,663
Under the employee stock option plan, options to purchase shares of common stock may be granted to key
employees at not less than 100% of the fair market value
on the date of grant. All options expire 10 years after the
date of grant and are exercisable in cumulative installments of one-fourth at the end of each of the first four
years. Activity under the plan is summarized below:
Shares Under Option
Number of
Shares
Option Price
Per Share
Balance, January 2,1981
Granted
Exercised
Canceled
1,178,018
291,160
(85,954)
(44,592)
$ 9.31-34.50
33.13-41.56
9.69-28.69
9.69-33.44
Balance, January 1,1982
Granted
Exercised
Canceled
1,338,632
355,290
(247,639)
(62,728)
9.31-41.56
36.25-60.94
9.31-33.44
9.69-49.56
Balance, December 31,1982
Granted
Exercised
Canceled
1,383,555
341,565
(199,929)
(50,332)
9.69-60.94
51.38-76.13
9.69-49.56
10.74-73.25
Balance, December 30,1983
1,474,859
9.69-76.13
At December 30,1983 options for 688,230 shares
were exercisable, and 306,722 shares were available for
granting of additional options. No accounting is made for
options until they are exercised.
Shares of deferred stock may be granted to key employees and generally vest in annual pro rata installments
commencing one year after grant and continuing until
retirement. However, upon termination all non-vested
shares are forfeited. The company accrues compensation
expense for the fair market value of the shares on the date
of grant, less estimated forfeitures.
The purchase price for the shares reserved under the
employee qualified stock purchase plan is the lower of
market value at the beginning or end of the plan year.
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