Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 25, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'DineEquity, Inc. | ' |
Entity Central Index Key | '0000049754 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 19,148,067 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $133,218 | $106,011 |
Receivables, net | 91,493 | 144,137 |
Prepaid gift cards | 39,559 | 49,223 |
Prepaid income taxes | 0 | 4,708 |
Deferred income taxes | 26,501 | 23,853 |
Other current assets | 8,092 | 3,650 |
Total current assets | 298,863 | 331,582 |
Long-term receivables | 194,066 | 197,153 |
Property and equipment, net | 264,855 | 274,295 |
Goodwill | 697,470 | 697,470 |
Other intangible assets, net | 791,033 | 794,057 |
Other assets, net | 108,960 | 110,085 |
Total assets | 2,355,247 | 2,404,642 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 4,720 | 4,720 |
Accounts payable | 39,857 | 40,050 |
Gift card liability | 111,020 | 171,955 |
Accrued employee compensation and benefits | 10,099 | 24,956 |
Accrued interest payable | 31,671 | 13,575 |
Income taxes payable | 12,890 | 0 |
Current maturities of capital lease and financing obligations | 12,577 | 12,247 |
Other accrued expenses | 22,940 | 16,770 |
Total current liabilities | 245,774 | 284,273 |
Long-term debt, less current maturities | 1,203,247 | 1,203,517 |
Capital lease obligations, less current maturities | 108,533 | 111,707 |
Financing obligations, less current maturities | 46,848 | 48,843 |
Deferred income taxes | 334,195 | 341,578 |
Other liabilities | 98,470 | 99,545 |
Total liabilities | 2,037,067 | 2,089,463 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock, $0.01 par value, shares: 40,000,000 authorized; March 31, 2014 - 25,284,475 issued, 19,155,078 outstanding; December 31, 2013 - 25,299,315 issued, 19,040,890 outstanding | 253 | 253 |
Additional paid-in-capital | 274,557 | 274,202 |
Retained earnings | 343,095 | 336,578 |
Accumulated other comprehensive loss | -170 | -164 |
Treasury stock, at cost; shares: March 31, 2014 - 6,129,397; December 31, 2013 - 6,258,425 | -299,555 | -295,690 |
Total stockholders’ equity | 318,180 | 315,179 |
Total liabilities and stockholders’ equity | $2,355,247 | $2,404,642 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 25,284,475 | 25,299,315 |
Common stock, shares outstanding | 19,155,078 | 19,040,890 |
Treasury stock, shares | 6,129,397 | 6,258,425 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Revenues: | ' | ' |
Franchise and restaurant revenues | $131,795 | $128,329 |
Rental revenues | 30,753 | 31,003 |
Financing revenues | 4,653 | 3,837 |
Total segment revenues | 167,201 | 163,169 |
Segment Expenses: | ' | ' |
Franchise and restaurant expenses | 45,678 | 44,476 |
Rental expenses | 23,866 | 24,269 |
Financing expenses | 585 | 0 |
Total segment expenses | 70,129 | 68,745 |
Gross segment profit | 97,072 | 94,424 |
General and administrative expenses | 34,185 | 34,032 |
Interest expense | 24,969 | 25,295 |
Amortization of intangible assets | 3,071 | 3,071 |
Closure and impairment charges | 200 | 838 |
Loss on extinguishment of debt | 6 | 20 |
Debt modification costs | 0 | 1,296 |
Loss (gain) on disposition of assets | 927 | -318 |
Income before income taxes | 33,714 | 30,190 |
Income tax provision | -12,890 | -11,951 |
Net income | 20,824 | 18,239 |
Other comprehensive loss, net of tax: | ' | ' |
Foreign currency translation adjustment | -6 | -4 |
Total comprehensive income | 20,818 | 18,235 |
Net income available to common stockholders: | ' | ' |
Net income | 20,824 | 18,239 |
Less: Net income allocated to unvested participating restricted stock | -343 | -329 |
Net income available to common stockholders | $20,481 | $17,910 |
Net income available to common stockholders per share: | ' | ' |
Basic (per share) | $1.09 | $0.95 |
Diluted (per share) | $1.08 | $0.93 |
Weighted average shares outstanding: | ' | ' |
Basic (in shares) | 18,794 | 18,911 |
Diluted (in shares) | 19,054 | 19,193 |
Dividends declared per common share | $0.75 | $0.75 |
Dividends paid per common share | $0.75 | $0.75 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $20,824 | $18,239 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ' | ' |
Depreciation and amortization | 8,783 | 8,836 |
Non-cash interest expense | 1,642 | 1,503 |
Deferred income taxes | -10,031 | -8,253 |
Non-cash stock-based compensation expense | 3,143 | 3,189 |
Tax benefit from stock-based compensation | 3,524 | 2,228 |
Excess tax benefit from share-based compensation | -4,455 | -966 |
Loss (gain) on disposition of assets | 927 | -318 |
Debt modification costs | 0 | 1,282 |
Other | -196 | 1,806 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 52,887 | 47,216 |
Current income tax receivables and payables | 18,020 | 16,528 |
Other current assets | 8,913 | 16,678 |
Accounts payable | 775 | 1,659 |
Accrued employee compensation and benefits | -14,857 | -11,482 |
Gift card liability | -60,936 | -54,332 |
Other accrued expenses | 23,877 | 27,413 |
Cash flows provided by operating activities | 52,840 | 71,226 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -2,039 | -1,495 |
Proceeds from sale of property and equipment | 681 | 0 |
Principal receipts from notes, equipment contracts and other long-term receivables | 3,415 | 3,810 |
Other | -55 | 68 |
Cash flows provided by investing activities | 2,002 | 2,383 |
Cash flows from financing activities: | ' | ' |
Repayment of long-term debt | -1,200 | -1,200 |
Payment of debt modification costs | 0 | -1,282 |
Principal payments on capital lease and financing obligations | -2,695 | -2,483 |
Repurchase of DineEquity common stock | -15,002 | 0 |
Dividends paid on common stock | -14,293 | -14,512 |
Repurchase of restricted stock | -1,831 | -2,590 |
Proceeds from stock options exercised | 6,623 | 3,018 |
Excess tax benefit from share-based compensation | 4,455 | 966 |
Change in restricted cash | -3,692 | -2,681 |
Cash flows used in financing activities | -27,635 | -20,764 |
Net change in cash and cash equivalents | 27,207 | 52,845 |
Cash and cash equivalents at beginning of period | 106,011 | 64,537 |
Cash and cash equivalents at end of period | 133,218 | 117,382 |
Supplemental disclosures: | ' | ' |
Interest paid in cash | 8,901 | 9,030 |
Income taxes paid in cash | $2,294 | $912 |
General
General | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
The accompanying unaudited consolidated financial statements of DineEquity, Inc. (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2014. | |
The consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. | |
These consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The Company’s fiscal quarters end on the Sunday closest to the last day of each quarter. For convenience, the fiscal quarters of each year are referred to as ending on March 31, June 30, September 30 and December 31. The first quarter of fiscal 2014 began December 30, 2013 and ended on March 30, 2014; the first quarter of fiscal 2013 began December 31, 2012 and ended on March 31, 2013. | |
The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated. | |
The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make assumptions and estimates that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to provisions for doubtful accounts, legal contingencies, income taxes, long-lived assets, and the valuation of goodwill and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Accounting Policies | ' |
Accounting Policies | |
Accounting Standards Adopted in the Current Fiscal Year | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). The amendments in ASU 2013-04 require an entity to measure obligations resulting from joint and several liability arrangements as the amount the entity agreed to pay on the basis of the arrangement among its co-obligors plus the amount an entity expects to pay on behalf of co-obligors. ASU 2013-04 also requires an entity to disclose the nature, amount and other information about each obligation or group of similar obligations. The adoption of ASU 2013-04 as of January 1, 2014 did not have an impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. The adoption of ASU 2013-11 as of January 1, 2014 did not have a material impact on the Company's consolidated financial statements. | |
Newly Issued Accounting Standards Not Yet Adopted | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). The amendments in ASU 2014-08 change the criteria for the reporting of discontinued operations. Under ASU 2014-08, only disposals resulting in a strategic shift that will have a major effect on an entity's operations and financial results will be reported as discontinued operations. ASU 2014-08 also removes the requirement under current U.S. GAAP that an entity not have any significant continuing involvement in the operations of the component after disposal to qualify for reporting of the disposal as a discontinued operation. The Company will be required to apply the provisions of ASU 2014-08 prospectively to all disposals of components beginning with its first fiscal quarter of 2015. Early adoption is permitted for any disposal transaction not previously reported. | |
The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable to the Company or are not expected to have a material effect on the Company's consolidated financial statements as a result of future adoption. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt consisted of the following components: | |||||||||
31-Mar-14 | December 31, 2013 | ||||||||
(In millions) | |||||||||
Senior Secured Credit Facility, due October 2017, at a variable interest rate of 3.75% as of March 31, 2014 and December 31, 2013 | $ | 466 | $ | 467.2 | |||||
Senior Notes due October 2018, at a fixed rate of 9.5% | 760.8 | 760.8 | |||||||
Discount | (18.9 | ) | (19.8 | ) | |||||
Total long-term debt | 1,207.90 | 1,208.20 | |||||||
Less: current maturities | (4.7 | ) | (4.7 | ) | |||||
Long-term debt, less current maturities | $ | 1,203.20 | $ | 1,203.50 | |||||
For a description of the respective instruments, refer to Note 7 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||
Debt Modification Costs | |||||||||
In February 2013, the Company entered into Amendment No. 2 (“Amendment No. 2”) to the Credit Agreement under the Senior Secured Credit Facility (the “Credit Agreement”). For a description of Amendment No. 2, refer to Note 7 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Fees of $1.3 million paid to third parties in connection with Amendment No. 2 were included as “Debt modification costs” in the Consolidated Statement of Comprehensive Income for the three months ended March 31, 2013. | |||||||||
Compliance with Covenants and Restrictions | |||||||||
The Credit Agreement contains provisions considered customary for similar types of facilities that limit certain permitted restricted payments, including those related to dividends on and repurchases of the Company's common stock. The limitation on restricted payments under the Credit Agreement is calculated quarterly. Such restricted payments are limited to a cumulative amount comprised of (i) a general restricted payments allowance of $35.0 million, plus (ii) 50% of Excess Cash Flow (as defined in the Credit Agreement) for each fiscal quarter in which the consolidated leverage ratio is greater than or equal to 5.75:1; (iii) 75% of Excess Cash Flow for each fiscal quarter in which the consolidated leverage ratio is less than 5.75:1 and greater than or equal to 5.25:1; (iv) 100% of Excess Cash Flow for each fiscal quarter in which the consolidated leverage ratio is less than 5.25:1; and (v) proceeds from the exercise of stock options, less any amounts paid as dividends or to repurchase the Company's common stock. As of March 31, 2014, our permitted amount of future restricted payments under the Credit Agreement was approximately $120 million. | |||||||||
The Indenture under which the Senior Notes due October 2018 (the “Senior Notes”) were issued (the “Indenture”) also contains a limitation on restricted payments that is calculated on an annual basis. Such restricted payments are limited to a cumulative amount comprised of (i) 50% of consolidated net income (as defined in the Indenture), plus (ii) proceeds from exercise of stock options, less any amounts paid as dividends or to repurchase the Company's common stock. The permitted amount of future restricted payments under the Indenture, calculated as of December 31, 2013, was approximately $112 million. | |||||||||
The Company was in compliance with all the covenants and restrictions related to its Senior Secured Credit Facility and Senior Notes as of March 31, 2014. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders' Equity | |
Dividends | |
In February 2014, the Company's Board of Directors approved payment of a first quarter 2014 cash dividend of $0.75 per share of common stock to the stockholders of record as of the close of business on March 14, 2014. The cash dividend totaling $14.3 million was paid on March 28, 2014. Payment of dividends is subject to limitations under both the Credit Agreement and the Indenture (see Note 4 - Long-Term Debt). | |
Stock Repurchase Program | |
In February 2013, the Company's Board of Directors approved a stock repurchase authorization of up to $100 million of DineEquity common stock. Under this program, the Company may repurchase shares on an opportunistic basis from time to time in open market transactions and in privately negotiated transactions based on business, market, applicable legal requirements, and other considerations. The repurchase program does not require the repurchase of a specific number of shares and may be terminated at any time. During the three months ended March 31, 2014, the Company repurchased 178,528 shares of common stock at a cost of $15.0 million. As of March 31, 2014, the Company has repurchased under the current authorization a cumulative total of 590,550 shares of common stock at a total cost of $44.7 million. The Company may repurchase up to an additional $55.3 million of common stock under the outstanding Board authorization. Repurchases of common stock are subject to limitations under both the Credit Agreement and the Indenture (see Note 4 - Long-Term Debt). | |
Treasury Stock | |
Repurchases of DineEquity common stock are included in treasury stock at the cost of shares repurchased plus any transaction costs. Treasury stock may be re-issued when stock options are exercised, when restricted stock awards are granted and when restricted stock units settle in stock upon vesting. The cost of treasury stock re-issued is determined using the first-in, first-out (“FIFO”) method. During the three months ended March 31, 2014, the Company re-issued 307,556 treasury shares at a total FIFO cost of $11.1 million. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company's effective tax rate was 38.2% for the three months ended March 31, 2014 as compared to 39.6% for the three months ended March 31, 2013. The effective tax rate in 2014 was lower compared to the same period of 2013 due to the tax provision in 2013 reflecting a higher amount of unrecognized tax benefits as a result of audits from taxing authorities. | |
The total gross unrecognized tax benefit as of March 31, 2014 and December 31, 2013 was $2.8 million and $2.7 million, respectively, excluding interest, penalties and related tax benefits. The Company estimates the unrecognized tax benefit may decrease over the upcoming 12 months by an amount up to $0.9 million related to settlements with taxing authorities and the lapse of statutes of limitations. For the remaining liability, due to the uncertainties related to these tax matters, the Company is unable to make a reasonably reliable estimate when cash settlement with a taxing authority will occur. | |
As of March 31, 2014, accrued interest was $3.1 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. As of December 31, 2013, accrued interest and penalties were $2.9 million and $0.1 million, respectively, excluding any related income tax benefits. The increase of $0.2 million of accrued interest is primarily related to an increase in unrecognized tax benefits as a result of recent audits by taxing authorities. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as a component of its income tax provision recognized in the Consolidated Statements of Comprehensive Income. | |
The Company files federal income tax returns and the Company or one of its subsidiaries files income tax returns in various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state or non-United States tax examinations by tax authorities for years before 2008. In the second quarter of 2013, the Internal Revenue Service (“IRS”) issued a Revenue Agent’s Report (“RAR”) related to its examination of the Company’s U.S federal income tax return for the tax years 2008 to 2010. The Company disagrees with a portion of the proposed assessments and has contested them through the IRS administrative appeals procedures. We anticipate the appeals process to continue into 2014. The Company believes that adequate reserves have been provided relating to all matters contained in the tax periods open to examination. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
From time to time, the Company has granted nonqualified stock options, restricted stock, cash-settled and stock-settled restricted stock units and performance units to officers, other employees and non-employee directors of the Company. Currently, the Company is authorized to grant nonqualified stock options, stock appreciation rights, restricted stock, cash-settled and stock-settled restricted stock units and performance units to officers, other employees and nonemployee directors under the DineEquity, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The 2011 Plan was approved by stockholders on May 17, 2011 and permits the issuance of up to 1,500,000 shares of the Company’s common stock. The 2011 Plan will expire in May 2021. | ||||||||||||||
The nonqualified stock options generally vest ratably over a three-year period in one-third increments and have a term of ten years from the grant date. Option exercise prices equal the closing price of the Company’s common stock on the New York Stock Exchange on the date of grant. Restricted stock and restricted stock units are issued at no cost to the holder and vest over terms determined by the Compensation Committee of the Company’s Board of Directors, generally three years from the grant date. | ||||||||||||||
The following table summarizes the components of the Company’s stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||
Total stock-based compensation expense: | ||||||||||||||
Equity classified awards expense | $ | 3.2 | $ | 3.2 | ||||||||||
Liability classified awards (credit) expense | (0.2 | ) | 0.5 | |||||||||||
Total pre-tax stock-based compensation expense | 3 | 3.7 | ||||||||||||
Tax benefit | (1.1 | ) | (1.4 | ) | ||||||||||
Total stock-based compensation expense, net of tax | $ | 1.9 | $ | 2.3 | ||||||||||
As of March 31, 2014, total unrecognized compensation costs of $13.4 million related to restricted stock and restricted stock units and $5.8 million related to stock options are expected to be recognized over a weighted average period of 1.8 years for restricted stock and restricted stock units and 1.7 years for stock options. | ||||||||||||||
Equity Classified Awards - Stock Options | ||||||||||||||
The estimated fair value of the stock options granted during the three months ended March 31, 2014 was calculated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model: | ||||||||||||||
Risk-free interest rate | 1.57 | % | ||||||||||||
Weighted average historical volatility | 51.4 | % | ||||||||||||
Dividend yield | 3.68 | % | ||||||||||||
Expected years until exercise | 4.6 | |||||||||||||
Forfeitures | 11 | % | ||||||||||||
Weighted average fair value of options granted | $27.02 | |||||||||||||
Stock option balances as of March 31, 2014 and activity related to stock options for the three months ended March 31, 2014 were as follows: | ||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | |||||||||||
Average | Remaining | Intrinsic | ||||||||||||
Exercise | Contractual Term | Value | ||||||||||||
Price | (in Years) | |||||||||||||
Outstanding at December 31, 2013 | 775,059 | $ | 42.09 | |||||||||||
Granted | 117,424 | 81.57 | ||||||||||||
Exercised | (221,725 | ) | 29.87 | |||||||||||
Forfeited | (1,889 | ) | 72.28 | |||||||||||
Outstanding at March 31, 2014 | 668,869 | 52.99 | 6.7 | $ | 17,200,000 | |||||||||
Vested at March 31, 2014 and Expected to Vest | 634,658 | 51.77 | 6.6 | $ | 17,000,000 | |||||||||
Exercisable at March 31, 2014 | 451,812 | $ | 44.17 | 5.6 | $ | 15,300,000 | ||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price of the Company’s common stock on the last trading day of the first quarter of 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2014. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock and the number of in-the-money options. | ||||||||||||||
Equity Classified Awards - Restricted Stock and Restricted Stock Units | ||||||||||||||
Outstanding balances as of March 31, 2014 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2014 were as follows: | ||||||||||||||
Restricted | Weighted | Restricted | Weighted | |||||||||||
Stock | Average | Stock Units | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 266,252 | $ | 58.87 | 47,230 | $ | 64.57 | ||||||||
Granted | 85,831 | 81.69 | 12,483 | 81.57 | ||||||||||
Released | (54,267 | ) | 56.35 | (14,784 | ) | 72.28 | ||||||||
Forfeited | (6,923 | ) | 65.11 | — | — | |||||||||
Outstanding at March 31, 2014 | 290,893 | $ | 65.92 | 44,929 | $ | 66.61 | ||||||||
Liability Classified Awards - Restricted Stock Units | ||||||||||||||
The Company previously had issued shares of cash-settled restricted stock units to members of the Board of Directors. Originally these instruments were expected to be settled in cash and were recorded as liabilities based on the closing price of the Company’s common stock as of each period end. In February 2013, it was determined that, pursuant to the terms of the Plan, these restricted stock units would be settled in shares of common stock and all outstanding restricted stock units were converted to equity classified awards. Prior to the conversion, for the three months ended March 31, 2013, $0.3 million was included in pre-tax stock-based compensation expense for the cash-settled restricted stock units. | ||||||||||||||
Liability Classified Awards - Long-Term Incentive Awards | ||||||||||||||
The Company has granted cash long-term incentive awards (“LTIP awards”) to certain employees. Annual LTIP awards vest over a three-year period and are determined using a multiplier from 0% to 200% of the target award based on the total shareholder return of DineEquity, Inc. common stock compared to the total shareholder returns of a peer group of companies. Although LTIP awards are both denominated and paid only in cash, because the multiplier is based on the price of the Company's common stock, the awards are considered stock-based compensation in accordance with U.S. GAAP and are liability classified awards. For the three months ended March 31, 2014 and 2013, a credit of $0.2 million and an expense of $0.2 million, respectively, were included in total stock-based compensation expense related to the LTIP awards. At March 31, 2014 and December 31, 2013, liabilities of $1.4 million and $2.8 million, respectively, related to LTIP awards were included as accrued employee compensation and benefits in the Consolidated Balance Sheets. |
Segments
Segments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segments | ' | ||||||||
Segments | |||||||||
The Company has four reporting segments: franchise operations, company restaurant operations, rental operations and financing operations. | |||||||||
As of March 31, 2014, the franchise operations segment consisted of (i) 1,988 restaurants operated by Applebee’s franchisees in the United States, one U.S. territory and 14 countries outside the United States; and (ii) 1,617 restaurants operated by IHOP franchisees and area licensees in the United States, two U.S. territories and nine countries outside the United States. Franchise operations revenue consists primarily of franchise royalty revenues, sales of proprietary products to franchisees (primarily pancake and waffle dry mixes for the IHOP restaurants), IHOP franchise advertising fees and the portion of the franchise fees allocated to IHOP and Applebee's intellectual property. Franchise operations expenses include IHOP advertising expenses, the cost of IHOP proprietary products, IHOP and Applebee's pre-opening training expenses and other franchise-related costs. | |||||||||
At March 31, 2014, the company restaurant operations segment consisted of 23 Applebee’s company-operated restaurants and 10 IHOP company-operated restaurants, all of which are located in the United States. Company restaurant sales are retail sales at company-operated restaurants. Company restaurant expenses are operating expenses at company-operated restaurants and include food, labor, utilities, rent and other restaurant operating costs. | |||||||||
Rental operations revenue includes revenue from operating leases and interest income from direct financing leases. Rental operations expenses are costs of operating leases and interest expense from capital leases on franchisee-operated restaurants. | |||||||||
Financing operations revenue primarily consists of interest income from the financing of franchise fees and equipment leases and sales of equipment associated with refranchised IHOP restaurants. Financing expenses are primarily the cost of restaurant equipment associated with refranchised IHOP restaurants. | |||||||||
Information on segments and a reconciliation to net income before income taxes for the three months ended March 31, 2014 and 2013 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Revenues (all from external customers) | |||||||||
Franchise operations | $ | 115.5 | $ | 111.9 | |||||
Company restaurants | 16.3 | 16.5 | |||||||
Rental operations | 30.7 | 31 | |||||||
Financing operations | 4.7 | 3.8 | |||||||
Total | $ | 167.2 | $ | 163.2 | |||||
Interest expense | |||||||||
Company restaurants | $ | 0.1 | $ | 0.1 | |||||
Rental operations | 3.9 | 4.1 | |||||||
Corporate | 25 | 25.3 | |||||||
Total | $ | 29 | $ | 29.5 | |||||
Depreciation and amortization | |||||||||
Franchise operations | $ | 2.6 | $ | 2.8 | |||||
Company restaurants | 0.5 | 0.5 | |||||||
Rental operations | 3.4 | 3.4 | |||||||
Corporate | 2.3 | 2.1 | |||||||
Total | $ | 8.8 | $ | 8.8 | |||||
Income before income taxes | |||||||||
Franchise operations | $ | 86.1 | $ | 83.7 | |||||
Company restaurants | (0.0 | ) | 0.2 | ||||||
Rental operations | 6.9 | 6.7 | |||||||
Financing operations | 4.1 | 3.8 | |||||||
Corporate | (63.4 | ) | (64.2 | ) | |||||
Total | $ | 33.7 | $ | 30.2 | |||||
Net_Income_per_Share
Net Income per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income per Share | ' | ||||||||
Net Income per Share | |||||||||
The computation of the Company's basic and diluted net income per share for the three months ended March 31, 2014 and 2013 was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands, except per share data) | |||||||||
Numerator for basic and dilutive income per common share: | |||||||||
Net income | $ | 20,824 | $ | 18,239 | |||||
Less: Net income allocated to unvested participating restricted stock | (343 | ) | (329 | ) | |||||
Net income available to common stockholders - basic | 20,481 | 17,910 | |||||||
Effect of unvested participating restricted stock in two-class calculation | 2 | 1 | |||||||
Net income available to common stockholders - diluted | $ | 20,483 | $ | 17,911 | |||||
Denominator: | |||||||||
Weighted average outstanding shares of common stock - basic | 18,794 | 18,911 | |||||||
Dilutive effect of stock options | 260 | 282 | |||||||
Weighted average outstanding shares of common stock - diluted | 19,054 | 19,193 | |||||||
Net income per common share: | |||||||||
Basic | $ | 1.09 | $ | 0.95 | |||||
Diluted | $ | 1.08 | $ | 0.93 | |||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured on a recurring basis at fair value. The Company is not a party to any derivative financial instruments. The Company does not have a material amount of non-financial assets or non-financial liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. The Company has not elected to use the fair value measurement option, as permitted under U.S. GAAP, for any assets or liabilities for which fair value measurement is not presently required. | |||||||||||||||||
The Company believes the fair values of cash equivalents, accounts receivable, accounts payable and the current portion of long-term debt approximate their carrying amounts due to their short duration. | |||||||||||||||||
The fair values of non-current financial liabilities at March 31, 2014 and December 31, 2013, determined based on Level 2 inputs, were as follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In millions) | |||||||||||||||||
Long-term debt, less current maturities | $ | 1,203.20 | $ | 1,294.40 | $ | 1,203.50 | $ | 1,306.20 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation, Claims and Disputes | |
The Company is subject to various lawsuits, administrative proceedings, audits, and claims arising in the ordinary course of business. Some of these lawsuits purport to be class actions and/or seek substantial damages. The Company is required under U.S. GAAP to record an accrual for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of the Company's litigation are expensed as such fees and expenses are incurred. Management regularly assesses the Company's insurance coverage, analyzes litigation information with the Company's attorneys and evaluates the Company's loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which it is currently a party will ultimately have a material adverse impact on the Company, there can be no assurance that the Company will prevail in all the proceedings the Company is party to, or that the Company will not incur material losses from them. | |
Lease Guarantees | |
In connection with the sale of Applebee’s restaurants or previous brands to franchisees and other parties, the Company has, in certain cases, guaranteed or has potential continuing liability for lease payments totaling $405.1 million as of March 31, 2014. This amount represents the maximum potential liability for future payments under these leases. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from 2014 through 2048. In the event of default, the indemnity and default clauses in the sale or assignment agreements govern the Company's ability to pursue and recover damages incurred. No material liabilities have been recorded as of March 31, 2014. | |
Contingencies | |
In February 2013, an IHOP franchisee and its affiliated entities which owned and operated 19 restaurants located in the states of Illinois, Wisconsin and Missouri filed for bankruptcy protection. As a result of an order issued by the bankruptcy court, two of the 19 restaurants were returned to the Company in the third quarter of 2013. A non-cash charge of $0.5 million was recorded in the Consolidated Statement of Comprehensive Income against deferred rental revenue associated with the leases for those two restaurants. During the third quarter of 2013, the Company received favorable rulings from the bankruptcy court which, if upheld, would allow the Company to transfer the remaining 17 restaurants to another franchisee. These rulings have been appealed by the current franchisee and are presently subject to a stay, pursuant to which the current franchisee is operating these restaurants only on a day-to-day basis and is continuing to make payments to the Company pursuant to the terms of the original franchise agreements. |
Consolidating_Financial_Inform
Consolidating Financial Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Consolidating Financial Information [Abstract] | ' | ||||||||||||||||||||
Consolidating Financial Information | ' | ||||||||||||||||||||
Consolidating Financial Information | |||||||||||||||||||||
Certain of the Company's subsidiaries have guaranteed the Company's obligations under the Senior Secured Credit Facility. The following presents the condensed consolidating financial information separately for: (i) the parent Company, the issuer of the guaranteed obligations; (ii) the guarantor subsidiaries, on a combined basis, as specified in the Credit Agreement; (iii) the non-guarantor subsidiaries, on a combined basis; (iv) consolidating eliminations and reclassifications; and (v) DineEquity, Inc. and Subsidiaries on a consolidated basis. | |||||||||||||||||||||
Each guarantor subsidiary is 100% owned by the Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. Each entity in the consolidating financial information follows the same accounting policies as described in Note 2 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 65.8 | $ | 66.8 | $ | 0.6 | $ | — | $ | 133.2 | |||||||||||
Receivables, net | 3.1 | 96.2 | 0.1 | (8.0 | ) | 91.5 | |||||||||||||||
Prepaid expenses and other current assets | 197.6 | 49.7 | — | (199.7 | ) | 47.7 | |||||||||||||||
Deferred income taxes | (3.7 | ) | 30.2 | — | — | 26.5 | |||||||||||||||
Intercompany | (425.8 | ) | 419.6 | 6.2 | — | — | |||||||||||||||
Total current assets | (163.0 | ) | 662.6 | 6.9 | (207.7 | ) | 298.9 | ||||||||||||||
Long-term receivables | — | 194.1 | — | — | 194.1 | ||||||||||||||||
Property and equipment, net | 22.7 | 241.1 | 1 | — | 264.9 | ||||||||||||||||
Goodwill | — | 697.5 | — | — | 697.5 | ||||||||||||||||
Other intangible assets, net | — | 791 | — | — | 791 | ||||||||||||||||
Other assets, net | 15.5 | 93.5 | — | — | 109 | ||||||||||||||||
Investment in subsidiaries | 1,697.60 | — | — | (1,697.6 | ) | — | |||||||||||||||
Total assets | $ | 1,572.80 | $ | 2,679.80 | $ | 8 | $ | (1,905.2 | ) | $ | 2,355.20 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 12.7 | $ | — | $ | — | $ | (8.0 | ) | $ | 4.7 | ||||||||||
Accounts payable | 1.3 | 38.6 | — | — | 39.9 | ||||||||||||||||
Accrued employee compensation and benefits | 5.5 | 4.6 | — | — | 10.1 | ||||||||||||||||
Gift card liability | — | 111 | — | — | 111 | ||||||||||||||||
Other accrued expenses | 28.5 | 251.3 | (0.1 | ) | (199.7 | ) | 80.1 | ||||||||||||||
Total current liabilities | 47.9 | 405.6 | — | (207.7 | ) | 245.8 | |||||||||||||||
Long-term debt | 1,203.20 | — | — | — | 1,203.20 | ||||||||||||||||
Financing obligations | — | 46.8 | — | — | 46.8 | ||||||||||||||||
Capital lease obligations | — | 108.5 | — | — | 108.5 | ||||||||||||||||
Deferred income taxes | (2.9 | ) | 337.3 | (0.3 | ) | — | 334.2 | ||||||||||||||
Other liabilities | 6.1 | 91.5 | 0.9 | — | 98.5 | ||||||||||||||||
Total liabilities | 1,254.40 | 989.8 | 0.6 | (207.7 | ) | 2,037.10 | |||||||||||||||
Total stockholders’ equity | 318.4 | 1,690.00 | 7.4 | (1,697.6 | ) | 318.2 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,572.80 | $ | 2,679.80 | $ | 8 | $ | (1,905.2 | ) | $ | 2,355.20 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 50.3 | $ | 54.7 | $ | 1 | $ | — | $ | 106 | |||||||||||
Receivables, net | 2 | 150 | 0.1 | (8.0 | ) | 144.1 | |||||||||||||||
Prepaid expenses and other current assets | 189.2 | 56.1 | — | (187.7 | ) | 57.6 | |||||||||||||||
Deferred income taxes | (4.1 | ) | 28 | — | — | 23.9 | |||||||||||||||
Intercompany | (435.2 | ) | 429.4 | 5.8 | — | — | |||||||||||||||
Total current assets | (197.8 | ) | 718.1 | 7 | (195.7 | ) | 331.6 | ||||||||||||||
Long-term receivables | — | 197.2 | — | — | 197.2 | ||||||||||||||||
Property and equipment, net | 23.5 | 249.7 | 1 | — | 274.3 | ||||||||||||||||
Goodwill | — | 697.5 | — | — | 697.5 | ||||||||||||||||
Other intangible assets, net | — | 794.1 | — | — | 794.1 | ||||||||||||||||
Other assets, net | 16.2 | 93.9 | — | — | 110.1 | ||||||||||||||||
Investment in subsidiaries | 1,697.60 | — | — | (1,697.6 | ) | — | |||||||||||||||
Total assets | $ | 1,539.50 | $ | 2,750.40 | $ | 8 | $ | (1,893.3 | ) | $ | 2,404.60 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 12.7 | $ | — | $ | — | $ | (8.0 | ) | $ | 4.7 | ||||||||||
Accounts payable | 1.4 | 38.6 | — | — | 40.1 | ||||||||||||||||
Accrued employee compensation and benefits | 14.5 | 10.4 | — | — | 25 | ||||||||||||||||
Gift card liability | — | 172 | — | — | 172 | ||||||||||||||||
Other accrued expenses | (13.7 | ) | 244.1 | — | (187.7 | ) | 42.6 | ||||||||||||||
Total current liabilities | 15 | 465 | — | (195.7 | ) | 284.3 | |||||||||||||||
Long-term debt | 1,203.50 | — | — | — | 1,203.50 | ||||||||||||||||
Financing obligations | — | 48.8 | — | — | 48.8 | ||||||||||||||||
Capital lease obligations | — | 111.7 | — | — | 111.7 | ||||||||||||||||
Deferred income taxes | (0.3 | ) | 342.1 | (0.3 | ) | — | 341.6 | ||||||||||||||
Other liabilities | 5.9 | 92.7 | 0.9 | — | 99.5 | ||||||||||||||||
Total liabilities | 1,224.20 | 1,060.40 | 0.6 | (195.7 | ) | 2,089.50 | |||||||||||||||
Total stockholders’ equity | 315.3 | 1,690.00 | 7.4 | (1,697.6 | ) | 315.2 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,539.50 | $ | 2,750.40 | $ | 8 | $ | (1,893.3 | ) | $ | 2,404.60 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Revenues | |||||||||||||||||||||
Franchise and restaurant revenues | $ | 0.7 | $ | 130.8 | $ | 0.3 | $ | — | $ | 131.8 | |||||||||||
Rental revenues | — | 30.8 | — | — | 30.7 | ||||||||||||||||
Financing revenues | — | 4.7 | — | — | 4.7 | ||||||||||||||||
Total revenue | 0.7 | 166.3 | 0.3 | — | 167.2 | ||||||||||||||||
Franchise and restaurant expenses | 0.7 | 45 | — | — | 45.7 | ||||||||||||||||
Rental expenses | — | 23.9 | — | — | 23.8 | ||||||||||||||||
Financing expenses | — | 0.6 | — | — | 0.6 | ||||||||||||||||
General and administrative expenses | 9.2 | 24.9 | 0.1 | — | 34.2 | ||||||||||||||||
Interest expense | 24.6 | 0.4 | — | — | 25 | ||||||||||||||||
Amortization of intangible assets | — | 3.1 | — | — | 3.1 | ||||||||||||||||
Closure and impairment charges | — | 0.1 | 0.1 | — | 0.2 | ||||||||||||||||
Loss on disposition of assets | — | 0.9 | — | — | 0.9 | ||||||||||||||||
Intercompany dividend | (46.8 | ) | — | — | 46.8 | — | |||||||||||||||
Income before income taxes | 12.9 | 67.5 | 0.1 | (46.8 | ) | 33.7 | |||||||||||||||
Benefit (provision) for income taxes | 7.9 | (20.8 | ) | — | — | (12.9 | ) | ||||||||||||||
Net income | $ | 20.8 | $ | 46.8 | $ | 0.1 | $ | (46.8 | ) | $ | 20.8 | ||||||||||
Total comprehensive income | $ | 20.8 | $ | 46.8 | $ | 0.1 | $ | (46.8 | ) | $ | 20.8 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Revenues | |||||||||||||||||||||
Franchise and restaurant revenues | $ | 0.7 | $ | 127.3 | $ | 0.3 | $ | — | $ | 128.3 | |||||||||||
Rental revenues | — | 31 | — | — | 31 | ||||||||||||||||
Financing revenues | — | 3.8 | — | — | 3.8 | ||||||||||||||||
Total revenue | 0.7 | 162.1 | 0.3 | — | 163.2 | ||||||||||||||||
Franchise and restaurant expenses | 0.8 | 43.6 | — | — | 44.5 | ||||||||||||||||
Rental expenses | — | 24.3 | — | — | 24.3 | ||||||||||||||||
General and administrative expenses | 9.2 | 24.5 | 0.3 | — | 34 | ||||||||||||||||
Interest expense | 25 | 0.3 | — | — | 25.3 | ||||||||||||||||
Amortization of intangible assets | — | 3.1 | — | — | 3.1 | ||||||||||||||||
Closure and impairment charges | — | 0.7 | 0.1 | — | 0.8 | ||||||||||||||||
Gain on disposition of assets | — | (0.1 | ) | (0.3 | ) | — | (0.3 | ) | |||||||||||||
Debt modification costs | 1.3 | — | — | — | 1.3 | ||||||||||||||||
Intercompany dividend | (39.8 | ) | — | — | 39.8 | — | |||||||||||||||
Income before income taxes | 4.2 | 65.7 | 0.1 | (39.8 | ) | 30.2 | |||||||||||||||
Benefit (provision) for income taxes | 14.1 | (26.0 | ) | — | — | (12.0 | ) | ||||||||||||||
Net income | $ | 18.2 | $ | 39.7 | $ | 0.1 | $ | (39.8 | ) | $ | 18.2 | ||||||||||
Total comprehensive income | $ | 18.2 | $ | 39.7 | $ | 0.1 | $ | (39.8 | ) | $ | 18.2 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (22.8 | ) | $ | 75.6 | $ | — | $ | — | $ | 52.8 | ||||||||||
Investing cash flows: | |||||||||||||||||||||
Additions to property and equipment | (1.3 | ) | (0.7 | ) | — | — | (2.0 | ) | |||||||||||||
Principal receipts from long-term receivables | — | 3.4 | — | — | 3.4 | ||||||||||||||||
Proceeds from sale of assets | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Other | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Cash flows provided by (used in) investing activities | (1.3 | ) | 3.3 | — | — | 2 | |||||||||||||||
Financing cash flows: | |||||||||||||||||||||
Payment of debt | (1.2 | ) | (2.7 | ) | — | — | (3.9 | ) | |||||||||||||
Repurchase of common stock | (15.0 | ) | — | — | — | (15.0 | ) | ||||||||||||||
Dividends paid on common stock | (14.3 | ) | — | — | — | (14.3 | ) | ||||||||||||||
Restricted cash | — | (3.7 | ) | — | — | (3.7 | ) | ||||||||||||||
Other | 9.2 | 0.1 | — | — | 9.2 | ||||||||||||||||
Intercompany transfers | 60.9 | (60.5 | ) | (0.4 | ) | — | — | ||||||||||||||
Cash flows provided by (used in) financing activities | 39.6 | (66.9 | ) | (0.4 | ) | — | (27.6 | ) | |||||||||||||
Net change | 15.5 | 12.1 | (0.4 | ) | — | 27.2 | |||||||||||||||
Beginning cash and equivalents | 50.3 | 54.7 | 1 | — | 106 | ||||||||||||||||
Ending cash and equivalents | $ | 65.8 | $ | 66.8 | $ | 0.6 | $ | — | $ | 133.2 | |||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (14.5 | ) | $ | 85.5 | $ | 0.2 | $ | — | $ | 71.2 | ||||||||||
Investing cash flows: | |||||||||||||||||||||
Additions to property and equipment | (0.9 | ) | (0.6 | ) | — | — | (1.5 | ) | |||||||||||||
Principal receipts from long-term receivables | — | 3.8 | — | — | 3.8 | ||||||||||||||||
Other | — | 0.1 | — | — | 0.1 | ||||||||||||||||
Cash flows provided by (used in) investing activities | (0.9 | ) | 3.3 | — | — | 2.4 | |||||||||||||||
Financing cash flows: | |||||||||||||||||||||
Payment of debt | (1.2 | ) | (2.5 | ) | — | — | (3.7 | ) | |||||||||||||
Payment of debt modification costs | (1.3 | ) | — | — | — | (1.3 | ) | ||||||||||||||
Dividends paid on common stock | (14.5 | ) | — | — | — | (14.5 | ) | ||||||||||||||
Restricted cash | — | (2.7 | ) | — | — | (2.7 | ) | ||||||||||||||
Other | 1.3 | 0.1 | — | — | 1.4 | ||||||||||||||||
Intercompany transfers | 74 | (74.0 | ) | — | — | — | |||||||||||||||
Cash flows provided by (used in) financing activities | 58.2 | (79.0 | ) | — | — | (20.8 | ) | ||||||||||||||
Net change | 42.9 | 9.7 | 0.2 | — | 52.8 | ||||||||||||||||
Beginning cash and equivalents | 9.9 | 54 | 0.6 | — | 64.5 | ||||||||||||||||
Ending cash and equivalents | $ | 52.8 | $ | 63.7 | $ | 0.9 | $ | — | $ | 117.4 | |||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Accounting Standards Adopted in the Current Fiscal Year | ' |
Accounting Standards Adopted in the Current Fiscal Year | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (“ASU 2013-04”). The amendments in ASU 2013-04 require an entity to measure obligations resulting from joint and several liability arrangements as the amount the entity agreed to pay on the basis of the arrangement among its co-obligors plus the amount an entity expects to pay on behalf of co-obligors. ASU 2013-04 also requires an entity to disclose the nature, amount and other information about each obligation or group of similar obligations. The adoption of ASU 2013-04 as of January 1, 2014 did not have an impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. The adoption of ASU 2013-11 as of January 1, 2014 did not have a material impact on the Company's consolidated financial statements. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of debt | ' | ||||||||
Long-term debt consisted of the following components: | |||||||||
31-Mar-14 | December 31, 2013 | ||||||||
(In millions) | |||||||||
Senior Secured Credit Facility, due October 2017, at a variable interest rate of 3.75% as of March 31, 2014 and December 31, 2013 | $ | 466 | $ | 467.2 | |||||
Senior Notes due October 2018, at a fixed rate of 9.5% | 760.8 | 760.8 | |||||||
Discount | (18.9 | ) | (19.8 | ) | |||||
Total long-term debt | 1,207.90 | 1,208.20 | |||||||
Less: current maturities | (4.7 | ) | (4.7 | ) | |||||
Long-term debt, less current maturities | $ | 1,203.20 | $ | 1,203.50 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Components of the Company’s stock-based compensation expense | ' | |||||||||||||
The following table summarizes the components of the Company’s stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||
Total stock-based compensation expense: | ||||||||||||||
Equity classified awards expense | $ | 3.2 | $ | 3.2 | ||||||||||
Liability classified awards (credit) expense | (0.2 | ) | 0.5 | |||||||||||
Total pre-tax stock-based compensation expense | 3 | 3.7 | ||||||||||||
Tax benefit | (1.1 | ) | (1.4 | ) | ||||||||||
Total stock-based compensation expense, net of tax | $ | 1.9 | $ | 2.3 | ||||||||||
Schedule of stock option valuation assumptions | ' | |||||||||||||
The following summarizes the assumptions used in the Black-Scholes model: | ||||||||||||||
Risk-free interest rate | 1.57 | % | ||||||||||||
Weighted average historical volatility | 51.4 | % | ||||||||||||
Dividend yield | 3.68 | % | ||||||||||||
Expected years until exercise | 4.6 | |||||||||||||
Forfeitures | 11 | % | ||||||||||||
Weighted average fair value of options granted | $27.02 | |||||||||||||
Schedule of stock option activity | ' | |||||||||||||
Stock option balances as of March 31, 2014 and activity related to stock options for the three months ended March 31, 2014 were as follows: | ||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | |||||||||||
Average | Remaining | Intrinsic | ||||||||||||
Exercise | Contractual Term | Value | ||||||||||||
Price | (in Years) | |||||||||||||
Outstanding at December 31, 2013 | 775,059 | $ | 42.09 | |||||||||||
Granted | 117,424 | 81.57 | ||||||||||||
Exercised | (221,725 | ) | 29.87 | |||||||||||
Forfeited | (1,889 | ) | 72.28 | |||||||||||
Outstanding at March 31, 2014 | 668,869 | 52.99 | 6.7 | $ | 17,200,000 | |||||||||
Vested at March 31, 2014 and Expected to Vest | 634,658 | 51.77 | 6.6 | $ | 17,000,000 | |||||||||
Exercisable at March 31, 2014 | 451,812 | $ | 44.17 | 5.6 | $ | 15,300,000 | ||||||||
Schedule of restricted stock unit activity | ' | |||||||||||||
Outstanding balances as of March 31, 2014 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2014 were as follows: | ||||||||||||||
Restricted | Weighted | Restricted | Weighted | |||||||||||
Stock | Average | Stock Units | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 266,252 | $ | 58.87 | 47,230 | $ | 64.57 | ||||||||
Granted | 85,831 | 81.69 | 12,483 | 81.57 | ||||||||||
Released | (54,267 | ) | 56.35 | (14,784 | ) | 72.28 | ||||||||
Forfeited | (6,923 | ) | 65.11 | — | — | |||||||||
Outstanding at March 31, 2014 | 290,893 | $ | 65.92 | 44,929 | $ | 66.61 | ||||||||
Segments_Tables
Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of segment reporting information by segment | ' | ||||||||
Information on segments and a reconciliation to net income before income taxes for the three months ended March 31, 2014 and 2013 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In millions) | |||||||||
Revenues (all from external customers) | |||||||||
Franchise operations | $ | 115.5 | $ | 111.9 | |||||
Company restaurants | 16.3 | 16.5 | |||||||
Rental operations | 30.7 | 31 | |||||||
Financing operations | 4.7 | 3.8 | |||||||
Total | $ | 167.2 | $ | 163.2 | |||||
Interest expense | |||||||||
Company restaurants | $ | 0.1 | $ | 0.1 | |||||
Rental operations | 3.9 | 4.1 | |||||||
Corporate | 25 | 25.3 | |||||||
Total | $ | 29 | $ | 29.5 | |||||
Depreciation and amortization | |||||||||
Franchise operations | $ | 2.6 | $ | 2.8 | |||||
Company restaurants | 0.5 | 0.5 | |||||||
Rental operations | 3.4 | 3.4 | |||||||
Corporate | 2.3 | 2.1 | |||||||
Total | $ | 8.8 | $ | 8.8 | |||||
Income before income taxes | |||||||||
Franchise operations | $ | 86.1 | $ | 83.7 | |||||
Company restaurants | (0.0 | ) | 0.2 | ||||||
Rental operations | 6.9 | 6.7 | |||||||
Financing operations | 4.1 | 3.8 | |||||||
Corporate | (63.4 | ) | (64.2 | ) | |||||
Total | $ | 33.7 | $ | 30.2 | |||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of the Company’s basic and diluted net income per share | ' | ||||||||
The computation of the Company's basic and diluted net income per share for the three months ended March 31, 2014 and 2013 was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands, except per share data) | |||||||||
Numerator for basic and dilutive income per common share: | |||||||||
Net income | $ | 20,824 | $ | 18,239 | |||||
Less: Net income allocated to unvested participating restricted stock | (343 | ) | (329 | ) | |||||
Net income available to common stockholders - basic | 20,481 | 17,910 | |||||||
Effect of unvested participating restricted stock in two-class calculation | 2 | 1 | |||||||
Net income available to common stockholders - diluted | $ | 20,483 | $ | 17,911 | |||||
Denominator: | |||||||||
Weighted average outstanding shares of common stock - basic | 18,794 | 18,911 | |||||||
Dilutive effect of stock options | 260 | 282 | |||||||
Weighted average outstanding shares of common stock - diluted | 19,054 | 19,193 | |||||||
Net income per common share: | |||||||||
Basic | $ | 1.09 | $ | 0.95 | |||||
Diluted | $ | 1.08 | $ | 0.93 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of non-current financial liabilities | ' | ||||||||||||||||
The fair values of non-current financial liabilities at March 31, 2014 and December 31, 2013, determined based on Level 2 inputs, were as follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In millions) | |||||||||||||||||
Long-term debt, less current maturities | $ | 1,203.20 | $ | 1,294.40 | $ | 1,203.50 | $ | 1,306.20 | |||||||||
Consolidating_Financial_Inform1
Consolidating Financial Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Consolidating Financial Information [Abstract] | ' | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 65.8 | $ | 66.8 | $ | 0.6 | $ | — | $ | 133.2 | |||||||||||
Receivables, net | 3.1 | 96.2 | 0.1 | (8.0 | ) | 91.5 | |||||||||||||||
Prepaid expenses and other current assets | 197.6 | 49.7 | — | (199.7 | ) | 47.7 | |||||||||||||||
Deferred income taxes | (3.7 | ) | 30.2 | — | — | 26.5 | |||||||||||||||
Intercompany | (425.8 | ) | 419.6 | 6.2 | — | — | |||||||||||||||
Total current assets | (163.0 | ) | 662.6 | 6.9 | (207.7 | ) | 298.9 | ||||||||||||||
Long-term receivables | — | 194.1 | — | — | 194.1 | ||||||||||||||||
Property and equipment, net | 22.7 | 241.1 | 1 | — | 264.9 | ||||||||||||||||
Goodwill | — | 697.5 | — | — | 697.5 | ||||||||||||||||
Other intangible assets, net | — | 791 | — | — | 791 | ||||||||||||||||
Other assets, net | 15.5 | 93.5 | — | — | 109 | ||||||||||||||||
Investment in subsidiaries | 1,697.60 | — | — | (1,697.6 | ) | — | |||||||||||||||
Total assets | $ | 1,572.80 | $ | 2,679.80 | $ | 8 | $ | (1,905.2 | ) | $ | 2,355.20 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 12.7 | $ | — | $ | — | $ | (8.0 | ) | $ | 4.7 | ||||||||||
Accounts payable | 1.3 | 38.6 | — | — | 39.9 | ||||||||||||||||
Accrued employee compensation and benefits | 5.5 | 4.6 | — | — | 10.1 | ||||||||||||||||
Gift card liability | — | 111 | — | — | 111 | ||||||||||||||||
Other accrued expenses | 28.5 | 251.3 | (0.1 | ) | (199.7 | ) | 80.1 | ||||||||||||||
Total current liabilities | 47.9 | 405.6 | — | (207.7 | ) | 245.8 | |||||||||||||||
Long-term debt | 1,203.20 | — | — | — | 1,203.20 | ||||||||||||||||
Financing obligations | — | 46.8 | — | — | 46.8 | ||||||||||||||||
Capital lease obligations | — | 108.5 | — | — | 108.5 | ||||||||||||||||
Deferred income taxes | (2.9 | ) | 337.3 | (0.3 | ) | — | 334.2 | ||||||||||||||
Other liabilities | 6.1 | 91.5 | 0.9 | — | 98.5 | ||||||||||||||||
Total liabilities | 1,254.40 | 989.8 | 0.6 | (207.7 | ) | 2,037.10 | |||||||||||||||
Total stockholders’ equity | 318.4 | 1,690.00 | 7.4 | (1,697.6 | ) | 318.2 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,572.80 | $ | 2,679.80 | $ | 8 | $ | (1,905.2 | ) | $ | 2,355.20 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 50.3 | $ | 54.7 | $ | 1 | $ | — | $ | 106 | |||||||||||
Receivables, net | 2 | 150 | 0.1 | (8.0 | ) | 144.1 | |||||||||||||||
Prepaid expenses and other current assets | 189.2 | 56.1 | — | (187.7 | ) | 57.6 | |||||||||||||||
Deferred income taxes | (4.1 | ) | 28 | — | — | 23.9 | |||||||||||||||
Intercompany | (435.2 | ) | 429.4 | 5.8 | — | — | |||||||||||||||
Total current assets | (197.8 | ) | 718.1 | 7 | (195.7 | ) | 331.6 | ||||||||||||||
Long-term receivables | — | 197.2 | — | — | 197.2 | ||||||||||||||||
Property and equipment, net | 23.5 | 249.7 | 1 | — | 274.3 | ||||||||||||||||
Goodwill | — | 697.5 | — | — | 697.5 | ||||||||||||||||
Other intangible assets, net | — | 794.1 | — | — | 794.1 | ||||||||||||||||
Other assets, net | 16.2 | 93.9 | — | — | 110.1 | ||||||||||||||||
Investment in subsidiaries | 1,697.60 | — | — | (1,697.6 | ) | — | |||||||||||||||
Total assets | $ | 1,539.50 | $ | 2,750.40 | $ | 8 | $ | (1,893.3 | ) | $ | 2,404.60 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 12.7 | $ | — | $ | — | $ | (8.0 | ) | $ | 4.7 | ||||||||||
Accounts payable | 1.4 | 38.6 | — | — | 40.1 | ||||||||||||||||
Accrued employee compensation and benefits | 14.5 | 10.4 | — | — | 25 | ||||||||||||||||
Gift card liability | — | 172 | — | — | 172 | ||||||||||||||||
Other accrued expenses | (13.7 | ) | 244.1 | — | (187.7 | ) | 42.6 | ||||||||||||||
Total current liabilities | 15 | 465 | — | (195.7 | ) | 284.3 | |||||||||||||||
Long-term debt | 1,203.50 | — | — | — | 1,203.50 | ||||||||||||||||
Financing obligations | — | 48.8 | — | — | 48.8 | ||||||||||||||||
Capital lease obligations | — | 111.7 | — | — | 111.7 | ||||||||||||||||
Deferred income taxes | (0.3 | ) | 342.1 | (0.3 | ) | — | 341.6 | ||||||||||||||
Other liabilities | 5.9 | 92.7 | 0.9 | — | 99.5 | ||||||||||||||||
Total liabilities | 1,224.20 | 1,060.40 | 0.6 | (195.7 | ) | 2,089.50 | |||||||||||||||
Total stockholders’ equity | 315.3 | 1,690.00 | 7.4 | (1,697.6 | ) | 315.2 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,539.50 | $ | 2,750.40 | $ | 8 | $ | (1,893.3 | ) | $ | 2,404.60 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Income and Comprehensive Income | ' | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Revenues | |||||||||||||||||||||
Franchise and restaurant revenues | $ | 0.7 | $ | 130.8 | $ | 0.3 | $ | — | $ | 131.8 | |||||||||||
Rental revenues | — | 30.8 | — | — | 30.7 | ||||||||||||||||
Financing revenues | — | 4.7 | — | — | 4.7 | ||||||||||||||||
Total revenue | 0.7 | 166.3 | 0.3 | — | 167.2 | ||||||||||||||||
Franchise and restaurant expenses | 0.7 | 45 | — | — | 45.7 | ||||||||||||||||
Rental expenses | — | 23.9 | — | — | 23.8 | ||||||||||||||||
Financing expenses | — | 0.6 | — | — | 0.6 | ||||||||||||||||
General and administrative expenses | 9.2 | 24.9 | 0.1 | — | 34.2 | ||||||||||||||||
Interest expense | 24.6 | 0.4 | — | — | 25 | ||||||||||||||||
Amortization of intangible assets | — | 3.1 | — | — | 3.1 | ||||||||||||||||
Closure and impairment charges | — | 0.1 | 0.1 | — | 0.2 | ||||||||||||||||
Loss on disposition of assets | — | 0.9 | — | — | 0.9 | ||||||||||||||||
Intercompany dividend | (46.8 | ) | — | — | 46.8 | — | |||||||||||||||
Income before income taxes | 12.9 | 67.5 | 0.1 | (46.8 | ) | 33.7 | |||||||||||||||
Benefit (provision) for income taxes | 7.9 | (20.8 | ) | — | — | (12.9 | ) | ||||||||||||||
Net income | $ | 20.8 | $ | 46.8 | $ | 0.1 | $ | (46.8 | ) | $ | 20.8 | ||||||||||
Total comprehensive income | $ | 20.8 | $ | 46.8 | $ | 0.1 | $ | (46.8 | ) | $ | 20.8 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Revenues | |||||||||||||||||||||
Franchise and restaurant revenues | $ | 0.7 | $ | 127.3 | $ | 0.3 | $ | — | $ | 128.3 | |||||||||||
Rental revenues | — | 31 | — | — | 31 | ||||||||||||||||
Financing revenues | — | 3.8 | — | — | 3.8 | ||||||||||||||||
Total revenue | 0.7 | 162.1 | 0.3 | — | 163.2 | ||||||||||||||||
Franchise and restaurant expenses | 0.8 | 43.6 | — | — | 44.5 | ||||||||||||||||
Rental expenses | — | 24.3 | — | — | 24.3 | ||||||||||||||||
General and administrative expenses | 9.2 | 24.5 | 0.3 | — | 34 | ||||||||||||||||
Interest expense | 25 | 0.3 | — | — | 25.3 | ||||||||||||||||
Amortization of intangible assets | — | 3.1 | — | — | 3.1 | ||||||||||||||||
Closure and impairment charges | — | 0.7 | 0.1 | — | 0.8 | ||||||||||||||||
Gain on disposition of assets | — | (0.1 | ) | (0.3 | ) | — | (0.3 | ) | |||||||||||||
Debt modification costs | 1.3 | — | — | — | 1.3 | ||||||||||||||||
Intercompany dividend | (39.8 | ) | — | — | 39.8 | — | |||||||||||||||
Income before income taxes | 4.2 | 65.7 | 0.1 | (39.8 | ) | 30.2 | |||||||||||||||
Benefit (provision) for income taxes | 14.1 | (26.0 | ) | — | — | (12.0 | ) | ||||||||||||||
Net income | $ | 18.2 | $ | 39.7 | $ | 0.1 | $ | (39.8 | ) | $ | 18.2 | ||||||||||
Total comprehensive income | $ | 18.2 | $ | 39.7 | $ | 0.1 | $ | (39.8 | ) | $ | 18.2 | ||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (22.8 | ) | $ | 75.6 | $ | — | $ | — | $ | 52.8 | ||||||||||
Investing cash flows: | |||||||||||||||||||||
Additions to property and equipment | (1.3 | ) | (0.7 | ) | — | — | (2.0 | ) | |||||||||||||
Principal receipts from long-term receivables | — | 3.4 | — | — | 3.4 | ||||||||||||||||
Proceeds from sale of assets | — | 0.7 | — | — | 0.7 | ||||||||||||||||
Other | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Cash flows provided by (used in) investing activities | (1.3 | ) | 3.3 | — | — | 2 | |||||||||||||||
Financing cash flows: | |||||||||||||||||||||
Payment of debt | (1.2 | ) | (2.7 | ) | — | — | (3.9 | ) | |||||||||||||
Repurchase of common stock | (15.0 | ) | — | — | — | (15.0 | ) | ||||||||||||||
Dividends paid on common stock | (14.3 | ) | — | — | — | (14.3 | ) | ||||||||||||||
Restricted cash | — | (3.7 | ) | — | — | (3.7 | ) | ||||||||||||||
Other | 9.2 | 0.1 | — | — | 9.2 | ||||||||||||||||
Intercompany transfers | 60.9 | (60.5 | ) | (0.4 | ) | — | — | ||||||||||||||
Cash flows provided by (used in) financing activities | 39.6 | (66.9 | ) | (0.4 | ) | — | (27.6 | ) | |||||||||||||
Net change | 15.5 | 12.1 | (0.4 | ) | — | 27.2 | |||||||||||||||
Beginning cash and equivalents | 50.3 | 54.7 | 1 | — | 106 | ||||||||||||||||
Ending cash and equivalents | $ | 65.8 | $ | 66.8 | $ | 0.6 | $ | — | $ | 133.2 | |||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. | |||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||
(In millions(1)) | |||||||||||||||||||||
Parent | Combined | Combined | Eliminations and | Consolidated | |||||||||||||||||
Guarantor | Non-guarantor | Reclassification | |||||||||||||||||||
Subsidiaries | Subsidiaries | ||||||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (14.5 | ) | $ | 85.5 | $ | 0.2 | $ | — | $ | 71.2 | ||||||||||
Investing cash flows: | |||||||||||||||||||||
Additions to property and equipment | (0.9 | ) | (0.6 | ) | — | — | (1.5 | ) | |||||||||||||
Principal receipts from long-term receivables | — | 3.8 | — | — | 3.8 | ||||||||||||||||
Other | — | 0.1 | — | — | 0.1 | ||||||||||||||||
Cash flows provided by (used in) investing activities | (0.9 | ) | 3.3 | — | — | 2.4 | |||||||||||||||
Financing cash flows: | |||||||||||||||||||||
Payment of debt | (1.2 | ) | (2.5 | ) | — | — | (3.7 | ) | |||||||||||||
Payment of debt modification costs | (1.3 | ) | — | — | — | (1.3 | ) | ||||||||||||||
Dividends paid on common stock | (14.5 | ) | — | — | — | (14.5 | ) | ||||||||||||||
Restricted cash | — | (2.7 | ) | — | — | (2.7 | ) | ||||||||||||||
Other | 1.3 | 0.1 | — | — | 1.4 | ||||||||||||||||
Intercompany transfers | 74 | (74.0 | ) | — | — | — | |||||||||||||||
Cash flows provided by (used in) financing activities | 58.2 | (79.0 | ) | — | — | (20.8 | ) | ||||||||||||||
Net change | 42.9 | 9.7 | 0.2 | — | 52.8 | ||||||||||||||||
Beginning cash and equivalents | 9.9 | 54 | 0.6 | — | 64.5 | ||||||||||||||||
Ending cash and equivalents | $ | 52.8 | $ | 63.7 | $ | 0.9 | $ | — | $ | 117.4 | |||||||||||
(1) Supplemental condensed statements presented in millions may not foot/crossfoot due to rounding from Consolidated Statements presented in thousands. |
LongTerm_Debt_Schedule_of_Debt
Long-Term Debt (Schedule of Debt) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Discount | ($18,783) | ($19,713) |
Total Long-term Debt | 1,207,967 | 1,208,237 |
Less current maturities | -4,720 | -4,720 |
Long-term debt, less current maturities | 1,203,247 | 1,203,517 |
Senior Secured Credit Facility, due Oct 2017, variable rate 3.75% | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt interest rate (percent) | 3.75% | 3.75% |
Senior secured credit facility due | 466,000 | 467,200 |
Senior Notes due Oct 2018, at a fixed rate 9.5% | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt interest rate (percent) | 9.50% | 9.50% |
Senior Notes due October 2018, at a fixed rate of 9.5% | $760,750 | $760,750 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt - Narrative (Details) (USD $) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Revolving Credit Facility | Senior Notes due Oct 2018, at a fixed rate 9.5% | Senior Notes due Oct 2018, at a fixed rate 9.5% | Maximum | First Step Down [Member] | First Step Down [Member] | First Step Down [Member] | Second Step Down [Member] | Second Step Down [Member] | |||
Revolving Credit Facility | Revolving Credit Facility | Maximum | Minimum | Revolving Credit Facility | Minimum | ||||||
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Debt Issuance Costs | $0 | $1,282,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Restrictive Covenant, General Restricted Payment Allowance | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Excess Cash Flow Required For Mandatory Prepayment, Annual Mininum | ' | ' | 50.00% | ' | ' | ' | 75.00% | ' | ' | 100.00% | ' |
Ratio of Indebtedness to Net Capital | ' | ' | ' | ' | ' | 5.75 | ' | 5.75 | 5.25 | ' | 5.25 |
Debt Instrument, Restrictive Covenants, Restricted Future Payments | ' | ' | $120,000,000 | ' | $112,000,000 | ' | ' | ' | ' | ' | ' |
Percent of Consolidated Net Income Used to Calculated Restricted Payments, Annual Mininum | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Narrative_
Stockholders' Equity - Narrative (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Equity [Abstract] | ' | ' | ' | ' |
Dividends declared per common share | $0.75 | ' | $0.75 | $0.75 |
Payments of Dividends | ' | ' | $14,293,000 | $14,512,000 |
Stock Repurchase Program, Authorized Amount | ' | 100,000,000 | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | 178,528 | ' |
Stock Repurchased During Period, Value | ' | ' | 15,000,000 | ' |
Cumulative Amount of Shares Repurchased | ' | ' | 590,550 | ' |
Cumulative Payments for Repurchase of Common Stock | ' | ' | 44,700,000 | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | 55,300,000 | ' |
Treasury Stock Reissued (shares) | ' | ' | 307,556 | ' |
Treasury Stock Reissued | ' | ' | $11,100,000 | ' |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective income tax rate (percent) | 38.20% | 39.60% | ' |
Gross unrecognized tax benefit | $2.80 | ' | $2.70 |
Change in Unrecognized Tax Benefits Estimated in the Next Twelve Months | 0.9 | ' | ' |
Accrued interest on income taxes | 3.1 | ' | 2.9 |
Accrued penalties on income taxes | 0.1 | ' | 0.1 |
Change in Unrecognized Tax Benefits | $0.20 | ' | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation - Narrative (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | 17-May-11 | |
Stock Options | Restricted Stock Units (RSUs) | LTIP | LTIP | LTIP | LTIP | LTIP | Board of Directors | 2011 Plan | ||||
Minimum | Maximum | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, number of shares authorized (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 |
Total compensation cost not yet recognized | ' | ' | ' | $5,800,000 | $13,400,000 | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition (in years) | ' | ' | ' | '1 year 8 months 6 days | '1 year 9 months 6 days | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 3,000,000 | 3,700,000 | ' | ' | ' | -200,000 | 200,000 | ' | ' | ' | 300,000 | ' |
Accrued employee compensation and benefits | $10,099,000 | ' | $24,956,000 | ' | ' | $1,400,000 | ' | $2,800,000 | ' | ' | ' | ' |
Award vesting period (in years) | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Multiplier for target award based on total shareholder return on common stock (percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 200.00% | ' | ' |
StockBased_Compensation_Compon
Stock-Based Compensation (Components of Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Stock-based compensation, equity classified awards | $3.20 | $3.20 |
Stock-based compensation, liability classified awards | -0.2 | 0.5 |
Pre-tax compensation expense | 3 | 3.7 |
Tax provision | -1.1 | -1.4 |
Total stock-based compensation expense, net of tax | $1.90 | $2.30 |
StockBased_Compensation_Option
Stock-Based Compensation (Options Value Assumptions) (Details) (Stock Options, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Risk-free interest rate (percent) | 1.57% |
Weighted average historical volatility (percent) | 51.40% |
Dividend yield (percent) | 3.68% |
Expected years until exercise (years) | '4 years 7 months 7 days |
Forfeitures (percent) | 11.00% |
Weighted average fair value of options granted (per share) | $27.02 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (Stock Options, USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Options, outstanding, beginning of period (in shares) | 775,059 |
Options, granted (in shares) | 117,424 |
Options, exercised (in shares) | -221,725 |
Options, forfeited (in shares) | -1,889 |
Options, outstanding, end of period (in shares) | 668,869 |
Options, vested and expected to vest (in shares) | 634,658 |
Options, exercisable (in shares) | 451,812 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Weighted average exercise price, beginning of period (per share) | $42.09 |
Weighted average exercise price, granted (per share) | $81.57 |
Weighted average exercise price, exercised (per share) | $29.87 |
Weighted average exercise price, forfeited (per share) | $72.28 |
Weighted average exercise price, end of period (per share) | $52.99 |
Weighted average exercise price, vested and expected to vest (per share) | $51.77 |
Weighted average exercise price, exercisable (per share) | $44.17 |
Weighted average remaining contractual term (in years) | '6 years 8 months 26 days |
Weighted average remaining contractual term, vested and expected to vest (in years) | '6 years 7 months 2 days |
Weighted average remaining contractual term, exercisable (in years) | '5 years 6 months 27 days |
Options, outstanding, intrinsic value | $17,200 |
Options, vested and expected to vest, intrinsic value | 17,000 |
Options, vested and expected to vest, exercisable | $15,300 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Restricted stock, beginning of period (in shares) | 266,252 |
Restricted stock, granted (in shares) | 85,831 |
Restricted stock, released (in shares) | -54,267 |
Restricted stock, forfeited (in shares) | -6,923 |
Restricted stock, end of period (in shares) | 290,893 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted Average Grant Date Fair Value, Beginning balance (per share) | $58.87 |
Weighted Average Grant Date Fair Value, Granted (per share) | $81.69 |
Weighted Average Grant Date Fair Value, Released (per share) | $56.35 |
Weighted Average Grant Date Fair Value, Forfeited (per share) | $65.11 |
Weighted Average Grant Date Fair Value, Ending balance (per share) | $65.92 |
Restricted Stock Units (RSUs) | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Restricted stock, beginning of period (in shares) | 47,230 |
Restricted stock, granted (in shares) | 12,483 |
Restricted stock, released (in shares) | -14,784 |
Restricted stock, forfeited (in shares) | 0 |
Restricted stock, end of period (in shares) | 44,929 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted Average Grant Date Fair Value, Beginning balance (per share) | $64.57 |
Weighted Average Grant Date Fair Value, Granted (per share) | $81.57 |
Weighted Average Grant Date Fair Value, Released (per share) | $72.28 |
Weighted Average Grant Date Fair Value, Forfeited (per share) | $0 |
Weighted Average Grant Date Fair Value, Ending balance (per share) | $66.61 |
Segments_Narrative_Details
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2014 | |
segment | |
Franchisor Disclosure [Line Items] | ' |
Number of segments (segment) | 4 |
Applebee's | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Territories in which entity operates (territory) | 1 |
Number of Countries in which entity operates (country) | 14 |
IHOP | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Territories in which entity operates (territory) | 2 |
Number of Countries in which entity operates (country) | 9 |
Franchised Units | Applebee's | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Restaurants (restaurant) | 1,988 |
Franchised Units | IHOP | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Restaurants (restaurant) | 1,617 |
Company Operated | Applebee's | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Restaurants (restaurant) | 23 |
Company Operated | IHOP | ' |
Franchisor Disclosure [Line Items] | ' |
Number of Restaurants (restaurant) | 10 |
Segments_Schedule_of_Segment_R
Segments (Schedule of Segment Reporting Information by Segment) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Rental revenues | $30,753,000 | $31,003,000 |
Financing revenues | 4,653,000 | 3,837,000 |
Total segment revenues | 167,201,000 | 163,169,000 |
Interest expense | 24,969,000 | 25,295,000 |
Depreciation and amortization | 8,783,000 | 8,836,000 |
Income before income taxes | 33,714,000 | 30,190,000 |
Corporate and Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Interest expense | 29,000,000 | 29,500,000 |
Franchise Operations | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Franchise revenues | 115,500,000 | 111,900,000 |
Depreciation and amortization | 2,600,000 | 2,800,000 |
Income before income taxes | 86,100,000 | 83,700,000 |
Company Restaurants | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Company restaurant sale revenue | 16,300,000 | 16,500,000 |
Interest expense | 100,000 | 100,000 |
Depreciation and amortization | 500,000 | 500,000 |
Income before income taxes | 0 | 200,000 |
Rental Operations | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Rental revenues | 30,700,000 | 31,000,000 |
Interest expense | 3,900,000 | 4,100,000 |
Depreciation and amortization | 3,400,000 | 3,400,000 |
Income before income taxes | 6,900,000 | 6,700,000 |
Financing Operations | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Financing revenues | 4,700,000 | 3,800,000 |
Income before income taxes | 4,100,000 | 3,800,000 |
Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Interest expense | 25,000,000 | 25,300,000 |
Depreciation and amortization | 2,300,000 | 2,100,000 |
Income before income taxes | ($63,400,000) | ($64,200,000) |
Net_Income_per_Share_Computati
Net Income per Share - Computation of Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income | $20,824 | $18,239 |
Less: Net income allocated to unvested participating restricted stock | -343 | -329 |
Net income available to common stockholders | 20,481 | 17,910 |
Effect of unvested participating restricted stock in two-class calculation | 2 | 1 |
Net income available to common stockholders - diluted | $20,483 | $17,911 |
Weighted average outstanding shares of common stock - basic (in shares) | 18,794 | 18,911 |
Dilutive effect of stock options (in shares) | 260 | 282 |
Weighted average outstanding shares of common stock - diluted (in shares) | 19,054 | 19,193 |
Net income per common share - basic (per share) | $1.09 | $0.95 |
Net income per common share -diluted (per share) | $1.08 | $0.93 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Non-Current Financial Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, less current maturities | $1,203,247 | $1,203,517 |
Fair Value | Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, less current maturities | $1,294,400 | $1,306,200 |
Commitments_and_Contingencies_
Commitments and Contingencies - Narrative (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2013 | Mar. 31, 2014 | Sep. 30, 2013 |
Restaurant | Restaurant | ||
IHOP | Illinois, Wisconsin, Missouri | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Number of franchised restaurants, filed for bankruptcy protection (restraurant) | 19 | ' | ' |
Number of restaurants filed for bankruptcy protection likely returned to the company (restraurant) | ' | 2 | ' |
Noncash charge to deferred rental revenue | ' | ' | $0.50 |
Number of Franchised Restaurants Filed For Bankruptcy Protection Still Operated by Franchisee Under Franchise Agreement | 17 | ' | ' |
Applebee's | Property Lease Guarantee | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Potential liability for guaranteed leases | ' | 405.1 | ' |
Consolidating_Financial_Inform2
Consolidating Financial Information (Supplemental Condensed Consolidating Balance Sheet) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Guarantor subsidiary ownership interest (percent) | 100.00% | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $133,218 | $106,011 | $117,382 | $64,537 |
Receivables, net | 91,493 | 144,137 | ' | ' |
Prepaid expenses and other current assets | 47,651 | 57,581 | ' | ' |
Deferred income taxes | 26,501 | 23,853 | ' | ' |
Intercompany | 0 | 0 | ' | ' |
Total current assets | 298,863 | 331,582 | ' | ' |
Long-term receivables | 194,066 | 197,153 | ' | ' |
Property and equipment, net | 264,855 | 274,295 | ' | ' |
Goodwill | 697,470 | 697,470 | ' | ' |
Other intangible assets, net | 791,033 | 794,057 | ' | ' |
Other assets, net | 108,960 | 110,085 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Total assets | 2,355,247 | 2,404,642 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 4,720 | 4,720 | ' | ' |
Accounts payable | 39,857 | 40,050 | ' | ' |
Accrued employee compensation and benefits | 10,099 | 24,956 | ' | ' |
Gift card liability | 111,020 | 171,955 | ' | ' |
Other accrued expenses | 80,078 | 42,592 | ' | ' |
Total current liabilities | 245,774 | 284,273 | ' | ' |
Long-term debt | 1,203,247 | 1,203,517 | ' | ' |
Financing obligations | 46,848 | 48,843 | ' | ' |
Capital lease obligations | 108,533 | 111,707 | ' | ' |
Deferred income taxes | 334,195 | 341,578 | ' | ' |
Other liabilities | 98,470 | 99,545 | ' | ' |
Total liabilities | 2,037,067 | 2,089,463 | ' | ' |
Total stockholders' equity | 318,180 | 315,179 | ' | ' |
Total liabilities and stockholders’ equity | 2,355,247 | 2,404,642 | ' | ' |
Parent | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 65,800 | 50,300 | 52,800 | 9,900 |
Receivables, net | 3,100 | 2,000 | ' | ' |
Prepaid expenses and other current assets | 197,600 | 189,200 | ' | ' |
Deferred income taxes | -3,700 | -4,100 | ' | ' |
Intercompany | -425,800 | -435,200 | ' | ' |
Total current assets | -163,000 | -197,800 | ' | ' |
Long-term receivables | 0 | 0 | ' | ' |
Property and equipment, net | 22,700 | 23,500 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Other assets, net | 15,500 | 16,200 | ' | ' |
Investment in subsidiaries | 1,697,600 | 1,697,600 | ' | ' |
Total assets | 1,572,800 | 1,539,500 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 12,700 | 12,700 | ' | ' |
Accounts payable | 1,300 | 1,400 | ' | ' |
Accrued employee compensation and benefits | 5,500 | 14,500 | ' | ' |
Gift card liability | 0 | 0 | ' | ' |
Other accrued expenses | 28,500 | -13,700 | ' | ' |
Total current liabilities | 47,900 | 15,000 | ' | ' |
Long-term debt | 1,203,200 | 1,203,500 | ' | ' |
Financing obligations | 0 | 0 | ' | ' |
Capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | -2,900 | -300 | ' | ' |
Other liabilities | 6,100 | 5,900 | ' | ' |
Total liabilities | 1,254,400 | 1,224,200 | ' | ' |
Total stockholders' equity | 318,400 | 315,300 | ' | ' |
Total liabilities and stockholders’ equity | 1,572,800 | 1,539,500 | ' | ' |
Combined Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 66,800 | 54,700 | 63,700 | 54,000 |
Receivables, net | 96,200 | 150,000 | ' | ' |
Prepaid expenses and other current assets | 49,700 | 56,100 | ' | ' |
Deferred income taxes | 30,200 | 28,000 | ' | ' |
Intercompany | 419,600 | 429,400 | ' | ' |
Total current assets | 662,600 | 718,100 | ' | ' |
Long-term receivables | 194,100 | 197,200 | ' | ' |
Property and equipment, net | 241,100 | 249,700 | ' | ' |
Goodwill | 697,500 | 697,500 | ' | ' |
Other intangible assets, net | 791,000 | 794,100 | ' | ' |
Other assets, net | 93,500 | 93,900 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Total assets | 2,679,800 | 2,750,400 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 38,600 | 38,600 | ' | ' |
Accrued employee compensation and benefits | 4,600 | 10,400 | ' | ' |
Gift card liability | 111,000 | 172,000 | ' | ' |
Other accrued expenses | 251,300 | 244,100 | ' | ' |
Total current liabilities | 405,600 | 465,000 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Financing obligations | 46,800 | 48,800 | ' | ' |
Capital lease obligations | 108,500 | 111,700 | ' | ' |
Deferred income taxes | 337,300 | 342,100 | ' | ' |
Other liabilities | 91,500 | 92,700 | ' | ' |
Total liabilities | 989,800 | 1,060,400 | ' | ' |
Total stockholders' equity | 1,690,000 | 1,690,000 | ' | ' |
Total liabilities and stockholders’ equity | 2,679,800 | 2,750,400 | ' | ' |
Combined Non-guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 600 | 1,000 | 900 | 600 |
Receivables, net | 100 | 100 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany | 6,200 | 5,800 | ' | ' |
Total current assets | 6,900 | 7,000 | ' | ' |
Long-term receivables | 0 | 0 | ' | ' |
Property and equipment, net | 1,000 | 1,000 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Total assets | 8,000 | 8,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued employee compensation and benefits | 0 | 0 | ' | ' |
Gift card liability | 0 | 0 | ' | ' |
Other accrued expenses | -100 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Financing obligations | 0 | 0 | ' | ' |
Capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | -300 | -300 | ' | ' |
Other liabilities | 900 | 900 | ' | ' |
Total liabilities | 600 | 600 | ' | ' |
Total stockholders' equity | 7,400 | 7,400 | ' | ' |
Total liabilities and stockholders’ equity | 8,000 | 8,000 | ' | ' |
Eliminations and Reclassification | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | -8,000 | -8,000 | ' | ' |
Prepaid expenses and other current assets | -199,700 | -187,700 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany | 0 | 0 | ' | ' |
Total current assets | -207,700 | -195,700 | ' | ' |
Long-term receivables | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangible assets, net | 0 | 0 | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
Investment in subsidiaries | -1,697,600 | -1,697,600 | ' | ' |
Total assets | -1,905,200 | -1,893,300 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | -8,000 | -8,000 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued employee compensation and benefits | 0 | 0 | ' | ' |
Gift card liability | 0 | 0 | ' | ' |
Other accrued expenses | -199,700 | -187,700 | ' | ' |
Total current liabilities | -207,700 | -195,700 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Financing obligations | 0 | 0 | ' | ' |
Capital lease obligations | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other liabilities | 0 | 0 | ' | ' |
Total liabilities | -207,700 | -195,700 | ' | ' |
Total stockholders' equity | -1,697,600 | -1,697,600 | ' | ' |
Total liabilities and stockholders’ equity | ($1,905,200) | ($1,893,300) | ' | ' |
Consolidating_Financial_Inform3
Consolidating Financial Information (Supplemental Condensed Consolidating Statement of Operations) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Franchise and restaurant revenues | $131,795 | $128,329 |
Rental revenues | 30,753 | 31,003 |
Financing revenues | 4,653 | 3,837 |
Total segment revenues | 167,201 | 163,169 |
Franchise and restaurant expenses | 45,678 | 44,476 |
Rental expenses | 23,866 | 24,269 |
Financing expenses | 585 | 0 |
General and administrative expenses | 34,185 | 34,032 |
Interest expense | 24,969 | 25,295 |
Amortization of intangible assets | 3,071 | 3,071 |
Closure and impairment charges | 200 | 838 |
Loss (gain) on disposition of assets | 927 | -318 |
Loss on extinguishment of debt | 6 | 20 |
Debt modification costs | 0 | 1,296 |
Intercompany dividend | 0 | 0 |
Income before income taxes | 33,714 | 30,190 |
Benefit (provision) for income taxes | -12,890 | -11,951 |
Net income | 20,824 | 18,239 |
Total comprehensive income | 20,818 | 18,235 |
Parent | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Franchise and restaurant revenues | 700 | 700 |
Rental revenues | 0 | 0 |
Financing revenues | 0 | 0 |
Total segment revenues | 700 | 700 |
Franchise and restaurant expenses | 700 | 800 |
Rental expenses | 0 | 0 |
Financing expenses | 0 | ' |
General and administrative expenses | 9,200 | 9,200 |
Interest expense | 24,600 | 25,000 |
Amortization of intangible assets | 0 | 0 |
Closure and impairment charges | 0 | 0 |
Loss (gain) on disposition of assets | 0 | 0 |
Debt modification costs | ' | 1,300 |
Intercompany dividend | -46,800 | -39,800 |
Income before income taxes | 12,900 | 4,200 |
Benefit (provision) for income taxes | 7,900 | -14,100 |
Net income | 20,800 | 18,200 |
Total comprehensive income | 20,800 | 18,200 |
Combined Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Franchise and restaurant revenues | 130,800 | 127,300 |
Rental revenues | 30,800 | 31,000 |
Financing revenues | 4,700 | 3,800 |
Total segment revenues | 166,300 | 162,100 |
Franchise and restaurant expenses | 45,000 | 43,600 |
Rental expenses | 23,900 | 24,300 |
Financing expenses | 600 | ' |
General and administrative expenses | 24,900 | 24,500 |
Interest expense | 400 | 300 |
Amortization of intangible assets | 3,100 | 3,100 |
Closure and impairment charges | 100 | 700 |
Loss (gain) on disposition of assets | 900 | -100 |
Debt modification costs | ' | 0 |
Intercompany dividend | 0 | 0 |
Income before income taxes | 67,500 | 65,700 |
Benefit (provision) for income taxes | -20,800 | 26,000 |
Net income | 46,800 | 39,700 |
Total comprehensive income | 46,800 | 39,700 |
Combined Non-guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Franchise and restaurant revenues | 300 | 300 |
Rental revenues | 0 | 0 |
Financing revenues | 0 | 0 |
Total segment revenues | 300 | 300 |
Franchise and restaurant expenses | 0 | 0 |
Rental expenses | 0 | 0 |
Financing expenses | 0 | ' |
General and administrative expenses | 100 | 300 |
Interest expense | 0 | 0 |
Amortization of intangible assets | 0 | 0 |
Closure and impairment charges | 100 | 100 |
Loss (gain) on disposition of assets | 0 | -300 |
Debt modification costs | ' | 0 |
Intercompany dividend | 0 | 0 |
Income before income taxes | 100 | 100 |
Benefit (provision) for income taxes | 0 | 0 |
Net income | 100 | 100 |
Total comprehensive income | 100 | 100 |
Eliminations and Reclassification | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Franchise and restaurant revenues | 0 | 0 |
Rental revenues | 0 | 0 |
Financing revenues | 0 | 0 |
Total segment revenues | 0 | 0 |
Franchise and restaurant expenses | 0 | 0 |
Rental expenses | 0 | 0 |
Financing expenses | 0 | ' |
General and administrative expenses | 0 | 0 |
Interest expense | 0 | 0 |
Amortization of intangible assets | 0 | 0 |
Closure and impairment charges | 0 | 0 |
Loss (gain) on disposition of assets | 0 | 0 |
Debt modification costs | ' | 0 |
Intercompany dividend | 46,800 | 39,800 |
Income before income taxes | -46,800 | -39,800 |
Benefit (provision) for income taxes | 0 | 0 |
Net income | -46,800 | -39,800 |
Total comprehensive income | ($46,800) | ($39,800) |
Consolidating_Financial_Inform4
Consolidating Financial Information (Supplemental Condensed Consolidating Statement of Cash Flows) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Cash flows provided by (used in) operating activities | $52,840 | $71,226 |
Investing cash flows | ' | ' |
Additions to property and equipment | -2,039 | -1,495 |
Principal receipts from long-term receivables | 3,415 | 3,810 |
Proceeds from sale of assets | 681 | 0 |
Other | -55 | 68 |
Cash flows provided by investing activities | 2,002 | 2,383 |
Fnancing cash flows | ' | ' |
Payment of debt | -3,895 | -3,683 |
Payment of debt modification costs | 0 | -1,282 |
Repurchase of common stock | -15,002 | 0 |
Dividends paid on common stock | -14,293 | -14,512 |
Restricted cash | -3,692 | -2,681 |
Other | 9,247 | 1,394 |
Intercompany transfers | 0 | 0 |
Cash flows used in financing activities | -27,635 | -20,764 |
Net change in cash and cash equivalents | 27,207 | 52,845 |
Cash and cash equivalents at beginning of period | 106,011 | 64,537 |
Cash and cash equivalents at end of period | 133,218 | 117,382 |
Parent | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Cash flows provided by (used in) operating activities | -22,800 | -14,500 |
Investing cash flows | ' | ' |
Additions to property and equipment | -1,300 | -900 |
Principal receipts from long-term receivables | 0 | 0 |
Proceeds from sale of assets | 0 | ' |
Other | 0 | 0 |
Cash flows provided by investing activities | -1,300 | -900 |
Fnancing cash flows | ' | ' |
Payment of debt | -1,200 | -1,200 |
Payment of debt modification costs | ' | -1,300 |
Repurchase of common stock | -15,000 | ' |
Dividends paid on common stock | -14,300 | -14,500 |
Restricted cash | 0 | 0 |
Other | 9,200 | 1,300 |
Intercompany transfers | 60,900 | 74,000 |
Cash flows used in financing activities | 39,600 | 58,200 |
Net change in cash and cash equivalents | 15,500 | 42,900 |
Cash and cash equivalents at beginning of period | 50,300 | 9,900 |
Cash and cash equivalents at end of period | 65,800 | 52,800 |
Combined Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Cash flows provided by (used in) operating activities | 75,600 | 85,500 |
Investing cash flows | ' | ' |
Additions to property and equipment | -700 | -600 |
Principal receipts from long-term receivables | 3,400 | 3,800 |
Proceeds from sale of assets | 700 | ' |
Other | -100 | 100 |
Cash flows provided by investing activities | 3,300 | 3,300 |
Fnancing cash flows | ' | ' |
Payment of debt | -2,700 | -2,500 |
Payment of debt modification costs | ' | 0 |
Repurchase of common stock | 0 | ' |
Dividends paid on common stock | 0 | 0 |
Restricted cash | -3,700 | -2,700 |
Other | 100 | 100 |
Intercompany transfers | -60,500 | -74,000 |
Cash flows used in financing activities | -66,900 | -79,000 |
Net change in cash and cash equivalents | 12,100 | 9,700 |
Cash and cash equivalents at beginning of period | 54,700 | 54,000 |
Cash and cash equivalents at end of period | 66,800 | 63,700 |
Combined Non-guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Cash flows provided by (used in) operating activities | 0 | 200 |
Investing cash flows | ' | ' |
Additions to property and equipment | 0 | 0 |
Principal receipts from long-term receivables | 0 | 0 |
Proceeds from sale of assets | 0 | ' |
Other | 0 | 0 |
Cash flows provided by investing activities | 0 | 0 |
Fnancing cash flows | ' | ' |
Payment of debt | 0 | 0 |
Payment of debt modification costs | ' | 0 |
Repurchase of common stock | 0 | ' |
Dividends paid on common stock | 0 | 0 |
Restricted cash | 0 | 0 |
Other | 0 | 0 |
Intercompany transfers | -400 | 0 |
Cash flows used in financing activities | -400 | 0 |
Net change in cash and cash equivalents | -400 | 200 |
Cash and cash equivalents at beginning of period | 1,000 | 600 |
Cash and cash equivalents at end of period | 600 | 900 |
Eliminations and Reclassification | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Cash flows provided by (used in) operating activities | 0 | 0 |
Investing cash flows | ' | ' |
Additions to property and equipment | 0 | 0 |
Principal receipts from long-term receivables | 0 | 0 |
Proceeds from sale of assets | 0 | ' |
Other | 0 | 0 |
Cash flows provided by investing activities | 0 | 0 |
Fnancing cash flows | ' | ' |
Payment of debt | 0 | 0 |
Payment of debt modification costs | ' | 0 |
Repurchase of common stock | 0 | ' |
Dividends paid on common stock | 0 | 0 |
Restricted cash | 0 | 0 |
Other | 0 | 0 |
Intercompany transfers | 0 | 0 |
Cash flows used in financing activities | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |