Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DineEquity, Inc. | |
Entity Central Index Key | 49754 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 19,049,811 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $133,470 | $104,004 |
Receivables, net | 93,532 | 153,498 |
Restricted cash | 40,701 | 52,262 |
Prepaid gift cards | 41,208 | 51,268 |
Prepaid income taxes | 0 | 11,753 |
Deferred income taxes | 34,743 | 30,860 |
Other current assets | 12,905 | 9,239 |
Total current assets | 356,559 | 412,884 |
Long-term receivables, net | 175,579 | 180,856 |
Property and equipment, net | 235,355 | 241,229 |
Goodwill | 697,470 | 697,470 |
Other intangible assets, net | 779,878 | 782,336 |
Deferred rent receivable | 90,920 | 91,117 |
Other non-current assets, net | 41,553 | 42,216 |
Total assets | 2,377,314 | 2,448,108 |
Current liabilities: | ||
Accounts payable | 34,781 | 41,771 |
Gift card liability | 119,072 | 179,760 |
Accrued advertising | 22,807 | 10,150 |
Accrued employee compensation and benefits | 10,913 | 25,722 |
Dividends payable | 16,704 | 16,635 |
Accrued interest payable | 3,897 | 14,126 |
Income taxes payable | 11,820 | 0 |
Current maturities of capital lease and financing obligations | 15,125 | 14,852 |
Other accrued expenses | 7,425 | 10,033 |
Total current liabilities | 242,544 | 313,049 |
Long-term debt | 1,300,000 | 1,300,000 |
Capital lease obligations, less current maturities | 94,584 | 98,119 |
Financing obligations, less current maturities | 42,493 | 42,524 |
Deferred income taxes | 311,827 | 319,111 |
Deferred rent payable | 75,096 | 75,375 |
Other non-current liabilities | 22,576 | 20,857 |
Total liabilities | 2,089,120 | 2,169,035 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, shares: 40,000,000 authorized; March 31, 2015 - 25,219,105 issued, 19,050,897 outstanding; December 31, 2014 - 25,240,055 issued, 18,953,567 outstanding | 252 | 252 |
Additional paid-in-capital | 283,000 | 279,946 |
Retained earnings | 325,374 | 313,644 |
Accumulated other comprehensive loss | -88 | -73 |
Treasury stock, at cost; shares: March 31, 2015 - 6,168,208; December 31, 2014 - 6,286,488 | -320,344 | -314,696 |
Total stockholders’ equity | 288,194 | 279,073 |
Total liabilities and stockholders’ equity | $2,377,314 | $2,448,108 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 25,219,105 | 25,240,055 |
Common stock, shares outstanding | 19,050,897 | 18,953,567 |
Treasury stock, shares | 6,168,208 | 6,286,488 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Franchise and restaurant revenues | $141,818 | $131,795 |
Rental revenues | 31,402 | 30,753 |
Financing revenues | 2,594 | 4,653 |
Total revenues | 175,814 | 167,201 |
Cost of revenues: | ||
Franchise and restaurant expenses | 52,026 | 45,678 |
Rental expenses | 23,490 | 23,866 |
Financing expenses | 12 | 585 |
Total cost of revenues | 75,528 | 70,129 |
Gross profit | 100,286 | 97,072 |
General and administrative expenses | 34,230 | 34,185 |
Interest expense | 15,646 | 24,969 |
Amortization of intangible assets | 2,500 | 3,071 |
Closure and impairment charges, net | 1,827 | 200 |
Loss on extinguishment of debt | 0 | 6 |
(Gain) loss on disposition of assets | -9 | 927 |
Income before income tax provision | 46,092 | 33,714 |
Income tax provision | -17,680 | -12,890 |
Net income | 28,412 | 20,824 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation adjustment | -15 | -6 |
Total comprehensive income | 28,397 | 20,818 |
Net income available to common stockholders: | ||
Net income | 28,412 | 20,824 |
Less: Net income allocated to unvested participating restricted stock | -372 | -343 |
Net income available to common stockholders | $28,040 | $20,481 |
Net income available to common stockholders per share: | ||
Basic (USD per share) | $1.49 | $1.09 |
Diluted (USD per share) | $1.47 | $1.08 |
Weighted average shares outstanding: | ||
Basic (in shares) | 18,870 | 18,794 |
Diluted (in shares) | 19,019 | 19,054 |
Dividends declared per common share (USD per share) | $0.88 | $0.75 |
Dividends paid per common share (USD per share) | $0.88 | $0.75 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $28,412 | $20,824 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 7,815 | 8,783 |
Non-cash interest expense | 755 | 1,642 |
Deferred income taxes | -10,378 | -10,031 |
Non-cash stock-based compensation expense | 2,432 | 3,143 |
Tax benefit from stock-based compensation | 4,696 | 3,524 |
Excess tax benefit from stock-based compensation | -4,526 | -4,455 |
Closure and impairment charges | 1,827 | 200 |
(Gain) loss on disposition of assets | -9 | 927 |
Other | 31 | -396 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | -2,742 | -9,767 |
Current income tax receivables and payables | 22,341 | 18,020 |
Gift card receivables and payables | 5,623 | 2,982 |
Prepaid expenses and other current assets | -1,638 | -751 |
Accounts payable | 1,034 | 9,175 |
Accrued employee compensation and benefits | -14,810 | -14,857 |
Other accrued expenses | 267 | 23,877 |
Cash flows provided by operating activities | 41,130 | 52,840 |
Cash flows from investing activities: | ||
Additions to property and equipment | -2,617 | -2,039 |
Proceeds from sale of property and equipment | 0 | 681 |
Principal receipts from notes, equipment contracts and other long-term receivables | 4,442 | 3,415 |
Other | -40 | -55 |
Cash flows provided by investing activities | 1,785 | 2,002 |
Cash flows from financing activities: | ||
Repayment of long-term debt | 0 | -1,200 |
Principal payments on capital lease and financing obligations | -3,165 | -2,695 |
Repurchase of DineEquity common stock | -15,003 | -15,002 |
Dividends paid on common stock | -16,598 | -14,293 |
Repurchase of restricted stock | -2,961 | -1,831 |
Proceeds from stock options exercised | 8,206 | 6,623 |
Excess tax benefit from stock-based compensation | 4,526 | 4,455 |
Change in restricted cash | 11,561 | -3,692 |
Other | -15 | 0 |
Cash flows used in financing activities | -13,449 | -27,635 |
Net change in cash and cash equivalents | 29,466 | 27,207 |
Cash and cash equivalents at beginning of period | 104,004 | 106,011 |
Cash and cash equivalents at end of period | 133,470 | 133,218 |
Supplemental disclosures: | ||
Interest paid in cash | 28,387 | 8,901 |
Income taxes paid in cash | $1,172 | $2,294 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
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, 2015 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2015. | |
The consolidated balance sheet at December 31, 2014 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, 2014. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 2015 began December 29, 2014 and ended on March 29, 2015. The first quarter of fiscal 2014 began December 30, 2013 and ended on March 30, 2014. | |
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, disclosures of contingent assets and liabilities, if any, at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made in the calculation and assessment of the following: (a) impairment of tangible and intangible assets, (b) income taxes, (c) allowance for doubtful accounts and notes receivables, (d) lease accounting estimates and (e) contingencies. On an ongoing basis, the Company evaluates its estimates based on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from those estimates. |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Policies | Accounting Policies |
Accounting Standards Adopted in the Current Fiscal Year | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 removed the requirement 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 adoption of ASU 2014-08 as of January 1, 2015 did not have an impact on the Company’s consolidated financial statements. | |
Newly Issued Accounting Standards Not Yet Adopted | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Presently, the Company will be required to apply the provisions of ASU 2014-09 beginning with its first fiscal quarter of 2017, either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. On April 1, 2015, the FASB proposed deferring the effective date by one year such that if deferral is approved, the Company would be required to adopt ASU 2014-09 beginning with its first fiscal quarter of 2018. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. | |
The guidance in ASU 2014-09 supersedes nearly all of the existing general revenue recognition guidance under U.S. GAAP as well as most industry-specific revenue recognition guidance, including guidance with respect to revenue recognition by franchisors. The Company believes the recognition of the majority of its revenues, including franchise royalty revenues, sales of IHOP pancake and waffle dry mix and retail sales at company-operated restaurants will not be affected by ASU 2014-09. Additionally, lease rental revenues are not within the scope of ASU 2014-09 guidance. The Company is currently evaluating the effect that ASU 2014-09 will have on its financial statements and related disclosures and which method of adoption will be used. | |
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. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity |
Dividends | |
During the three months ended March 31, 2015, the Company paid dividends on common stock of approximately $16.6 million, representing the dividend declared in the fourth quarter of 2014. On February 24, 2015, the Company's Board of Directors declared a first quarter 2015 cash dividend of $0.875 per share of common stock. This dividend was paid on April 10, 2015 to the Company's stockholders of record at the close of business on March 13, 2015. The Company had approximately $16.7 million accrued for this dividend payment at March 31, 2015. | |
Stock Repurchase Program | |
In October 2014, 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, 2015, the Company repurchased 140,096 shares of common stock at a cost of $15.0 million. As of March 31, 2015, the Company has repurchased a cumulative total of 160,431 shares of common stock under the current Board authorization at a total cost of $17.0 million. The Company may repurchase up to an additional $83.0 million of common stock under the current Board authorization. | |
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, 2015, the Company re-issued 258,376 treasury shares at a total FIFO cost of $9.4 million. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The Company's effective tax rate was 38.4% for the three months ended March 31, 2015 as compared to 38.2% for the three months ended March 31, 2014. | |
The total gross unrecognized tax benefit as of March 31, 2015 and December 31, 2014 was $3.2 million and $3.4 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 $0.1 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, 2015, accrued interest was $4.0 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. As of December 31, 2014, accrued interest was $3.9 million and accrued penalties were less than $0.1 million, excluding any related income tax benefits. 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 file 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 related to its examination of the Company’s U.S federal income tax return for each of 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. The appeals process is ongoing. The Company continues to believe 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, 2015 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||
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, 2015 and 2014: | |||||||||||||||
Three Months Ended | |||||||||||||||
March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
(In millions) | |||||||||||||||
Total stock-based compensation expense: | |||||||||||||||
Equity classified awards expense | $ | 2.4 | $ | 3.2 | |||||||||||
Liability classified awards expense (credit) | 0.3 | (0.2 | ) | ||||||||||||
Total pre-tax stock-based compensation expense | 2.7 | 3 | |||||||||||||
Tax benefit | (1.0 | ) | (1.1 | ) | |||||||||||
Total stock-based compensation expense, net of tax | $ | 1.7 | $ | 1.9 | |||||||||||
As of March 31, 2015, total unrecognized compensation costs of $15.0 million related to restricted stock and restricted stock units and $5.7 million related to stock options are expected to be recognized over a weighted average period of 1.82 years for restricted stock and restricted stock units and 1.80 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, 2015 was calculated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model: | |||||||||||||||
Risk-free interest rate | 1.56 | % | |||||||||||||
Weighted average historical volatility | 37.5 | % | |||||||||||||
Dividend yield | 3.1 | % | |||||||||||||
Expected years until exercise | 4.5 | ||||||||||||||
Forfeitures | 11 | % | |||||||||||||
Weighted average fair value of options granted | $28.37 | ||||||||||||||
Stock option balances as of March 31, 2015 and activity related to stock options for the three months ended March 31, 2015 were as follows: | |||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | ||||||||||||
Average | Remaining | Intrinsic | |||||||||||||
Exercise | Contractual Term | Value (in Millions) | |||||||||||||
Price | (in Years) | ||||||||||||||
Outstanding at December 31, 2014 | 618,115 | $ | 53.1 | ||||||||||||
Granted | 117,511 | 113.72 | |||||||||||||
Exercised | (194,648 | ) | 42.16 | ||||||||||||
Outstanding at March 31, 2015 | 540,978 | 70.21 | 7.5 | $20.70 | |||||||||||
Vested at March 31, 2015 and Expected to Vest | 499,627 | 67.67 | 7.4 | $20.30 | |||||||||||
Exercisable at March 31, 2015 | 327,100 | $ | 51.83 | 6.4 | $18.00 | ||||||||||
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 2015 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, 2015. 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, 2015 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2015 were as follows: | |||||||||||||||
Restricted | Weighted | Restricted | Weighted | ||||||||||||
Stock | Average | Stock Units | Average | ||||||||||||
Grant Date | Grant Date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||
Outstanding at December 31, 2014 | 233,818 | $ | 70.14 | 41,622 | $ | 66.92 | |||||||||
Granted | 63,728 | 113.62 | 9,695 | 113.72 | |||||||||||
Released | (61,974 | ) | 52.3 | (13,567 | ) | 52.19 | |||||||||
Forfeited | (5,413 | ) | 72.97 | — | — | ||||||||||
Outstanding at March 31, 2015 | 230,159 | $ | 86.91 | 37,750 | $ | 86.54 | |||||||||
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 stockholder 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 recorded as liabilities based on the closing price of the Company’s common stock as of each period end. For the three months ended March 31, 2015 and 2014, an expense of $0.3 million and a credit of $0.2 million, respectively, were included in total stock-based compensation expense related to the LTIP awards. At March 31, 2015 and December 31, 2014, liabilities of $2.3 million and $4.0 million, respectively, related to LTIP awards were included as part of accrued employee compensation and benefits in the Consolidated Balance Sheets. |
Segments
Segments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segments | Segments | ||||||||
The Company has two reportable segments: franchise operations (an aggregation of Applebee’s and IHOP franchise operations) and rental operations. The Company also has company-operated restaurant operations and financing operations, but neither of these operations exceeds 10% of consolidated revenues, income before income tax provision or total assets. | |||||||||
As of March 31, 2015, the franchise operations segment consisted of (i) 1,991 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 15 countries outside the United States; and (ii) 1,637 restaurants operated by IHOP franchisees and area licensees in the United States, two U.S. territories and eight 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 franchise fees. 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. | |||||||||
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. | |||||||||
At March 31, 2015, the company restaurant operations segment consisted of 23 Applebee’s company-operated restaurants and 13 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. | |||||||||
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 income before income tax provision for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Revenues from external customers: | |||||||||
Franchise operations | $ | 124.5 | $ | 115.5 | |||||
Rental operations | 31.4 | 30.7 | |||||||
Company restaurants | 17.3 | 16.3 | |||||||
Financing operations | 2.6 | 4.7 | |||||||
Total | $ | 175.8 | $ | 167.2 | |||||
Interest expense: | |||||||||
Rental operations | $ | 3.5 | $ | 3.9 | |||||
Company restaurants | 0.1 | 0.1 | |||||||
Corporate | 15.6 | 25 | |||||||
Total | $ | 19.2 | $ | 29 | |||||
Depreciation and amortization: | |||||||||
Franchise operations | $ | 2.6 | $ | 2.6 | |||||
Rental operations | 3.2 | 3.4 | |||||||
Company restaurants | 0.2 | 0.5 | |||||||
Corporate | 1.8 | 2.3 | |||||||
Total | $ | 7.8 | $ | 8.8 | |||||
Income before income tax provision: | |||||||||
Franchise operations | $ | 89 | $ | 86.1 | |||||
Rental operations | 7.9 | 6.9 | |||||||
Company restaurants | 0.8 | (0.0 | ) | ||||||
Financing operations | 2.6 | 4.1 | |||||||
Corporate | (54.2 | ) | (63.4 | ) | |||||
Total | $ | 46.1 | $ | 33.7 | |||||
Net_Income_per_Share
Net Income per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2015 and 2014 was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands, except per share data) | |||||||||
Numerator for basic and dilutive income per common share: | |||||||||
Net income | $ | 28,412 | $ | 20,824 | |||||
Less: Net income allocated to unvested participating restricted stock | (372 | ) | (343 | ) | |||||
Net income available to common stockholders - basic | 28,040 | 20,481 | |||||||
Effect of unvested participating restricted stock in two-class calculation | 2 | 2 | |||||||
Net income available to common stockholders - diluted | $ | 28,042 | $ | 20,483 | |||||
Denominator: | |||||||||
Weighted average outstanding shares of common stock - basic | 18,870 | 18,794 | |||||||
Dilutive effect of stock options | 149 | 260 | |||||||
Weighted average outstanding shares of common stock - diluted | 19,019 | 19,054 | |||||||
Net income per common share: | |||||||||
Basic | $ | 1.49 | $ | 1.09 | |||||
Diluted | $ | 1.47 | $ | 1.08 | |||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 and accounts payable approximate their carrying amounts due to their short duration. | |||||||||||||||||
The fair values of non-current financial liabilities at March 31, 2015 and December 31, 2014, determined based on Level 2 inputs, were as follows: | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In millions) | |||||||||||||||||
Long-term debt | $ | 1,300.00 | $ | 1,347.60 | $ | 1,300.00 | $ | 1,302.00 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 $373.1 million as of March 31, 2015. 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 2015 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, 2015. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On April 20, 2015, the Company entered into an asset purchase agreement for the refranchising and sale of related | |
restaurant assets of 23 Applebee’s company-operated restaurants located in a two-state market area geographically centered | |
around Kansas City, Missouri. This sale is expected to close in the fiscal third quarter of 2015. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Fiscal Period | 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 2015 began December 29, 2014 and ended on March 29, 2015. The first quarter of fiscal 2014 began December 30, 2013 and ended on March 30, 2014. |
Accounting Standards Adopted in the Current Fiscal Year | Accounting Standards Adopted in the Current Fiscal Year |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 removed the requirement 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 adoption of ASU 2014-08 as of January 1, 2015 did not have an impact on the Company’s consolidated financial statements. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
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, 2015 and 2014: | ||||||||||||||
Three Months Ended | |||||||||||||||
March 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
(In millions) | |||||||||||||||
Total stock-based compensation expense: | |||||||||||||||
Equity classified awards expense | $ | 2.4 | $ | 3.2 | |||||||||||
Liability classified awards expense (credit) | 0.3 | (0.2 | ) | ||||||||||||
Total pre-tax stock-based compensation expense | 2.7 | 3 | |||||||||||||
Tax benefit | (1.0 | ) | (1.1 | ) | |||||||||||
Total stock-based compensation expense, net of tax | $ | 1.7 | $ | 1.9 | |||||||||||
Schedule of stock option valuation assumptions | The following summarizes the assumptions used in the Black-Scholes model: | ||||||||||||||
Risk-free interest rate | 1.56 | % | |||||||||||||
Weighted average historical volatility | 37.5 | % | |||||||||||||
Dividend yield | 3.1 | % | |||||||||||||
Expected years until exercise | 4.5 | ||||||||||||||
Forfeitures | 11 | % | |||||||||||||
Weighted average fair value of options granted | $28.37 | ||||||||||||||
Schedule of stock option activity | Stock option balances as of March 31, 2015 and activity related to stock options for the three months ended March 31, 2015 were as follows: | ||||||||||||||
Shares | Weighted | Weighted Average | Aggregate | ||||||||||||
Average | Remaining | Intrinsic | |||||||||||||
Exercise | Contractual Term | Value (in Millions) | |||||||||||||
Price | (in Years) | ||||||||||||||
Outstanding at December 31, 2014 | 618,115 | $ | 53.1 | ||||||||||||
Granted | 117,511 | 113.72 | |||||||||||||
Exercised | (194,648 | ) | 42.16 | ||||||||||||
Outstanding at March 31, 2015 | 540,978 | 70.21 | 7.5 | $20.70 | |||||||||||
Vested at March 31, 2015 and Expected to Vest | 499,627 | 67.67 | 7.4 | $20.30 | |||||||||||
Exercisable at March 31, 2015 | 327,100 | $ | 51.83 | 6.4 | $18.00 | ||||||||||
Schedule of restricted stock unit activity | Outstanding balances as of March 31, 2015 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2015 were as follows: | ||||||||||||||
Restricted | Weighted | Restricted | Weighted | ||||||||||||
Stock | Average | Stock Units | Average | ||||||||||||
Grant Date | Grant Date | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||
Outstanding at December 31, 2014 | 233,818 | $ | 70.14 | 41,622 | $ | 66.92 | |||||||||
Granted | 63,728 | 113.62 | 9,695 | 113.72 | |||||||||||
Released | (61,974 | ) | 52.3 | (13,567 | ) | 52.19 | |||||||||
Forfeited | (5,413 | ) | 72.97 | — | — | ||||||||||
Outstanding at March 31, 2015 | 230,159 | $ | 86.91 | 37,750 | $ | 86.54 | |||||||||
Segments_Tables
Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of segment reporting information by segment | Information on segments and a reconciliation to income before income tax provision for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Revenues from external customers: | |||||||||
Franchise operations | $ | 124.5 | $ | 115.5 | |||||
Rental operations | 31.4 | 30.7 | |||||||
Company restaurants | 17.3 | 16.3 | |||||||
Financing operations | 2.6 | 4.7 | |||||||
Total | $ | 175.8 | $ | 167.2 | |||||
Interest expense: | |||||||||
Rental operations | $ | 3.5 | $ | 3.9 | |||||
Company restaurants | 0.1 | 0.1 | |||||||
Corporate | 15.6 | 25 | |||||||
Total | $ | 19.2 | $ | 29 | |||||
Depreciation and amortization: | |||||||||
Franchise operations | $ | 2.6 | $ | 2.6 | |||||
Rental operations | 3.2 | 3.4 | |||||||
Company restaurants | 0.2 | 0.5 | |||||||
Corporate | 1.8 | 2.3 | |||||||
Total | $ | 7.8 | $ | 8.8 | |||||
Income before income tax provision: | |||||||||
Franchise operations | $ | 89 | $ | 86.1 | |||||
Rental operations | 7.9 | 6.9 | |||||||
Company restaurants | 0.8 | (0.0 | ) | ||||||
Financing operations | 2.6 | 4.1 | |||||||
Corporate | (54.2 | ) | (63.4 | ) | |||||
Total | $ | 46.1 | $ | 33.7 | |||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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, 2015 and 2014 was as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(In thousands, except per share data) | |||||||||
Numerator for basic and dilutive income per common share: | |||||||||
Net income | $ | 28,412 | $ | 20,824 | |||||
Less: Net income allocated to unvested participating restricted stock | (372 | ) | (343 | ) | |||||
Net income available to common stockholders - basic | 28,040 | 20,481 | |||||||
Effect of unvested participating restricted stock in two-class calculation | 2 | 2 | |||||||
Net income available to common stockholders - diluted | $ | 28,042 | $ | 20,483 | |||||
Denominator: | |||||||||
Weighted average outstanding shares of common stock - basic | 18,870 | 18,794 | |||||||
Dilutive effect of stock options | 149 | 260 | |||||||
Weighted average outstanding shares of common stock - diluted | 19,019 | 19,054 | |||||||
Net income per common share: | |||||||||
Basic | $ | 1.49 | $ | 1.09 | |||||
Diluted | $ | 1.47 | $ | 1.08 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of non-current financial liabilities | The fair values of non-current financial liabilities at March 31, 2015 and December 31, 2014, determined based on Level 2 inputs, were as follows: | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In millions) | |||||||||||||||||
Long-term debt | $ | 1,300.00 | $ | 1,347.60 | $ | 1,300.00 | $ | 1,302.00 | |||||||||
Stockholders_Equity_Narrative_
Stockholders' Equity - Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
Feb. 24, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2014 | |
Equity [Abstract] | |||||
Dividends declared per common share (USD per share) | $0.88 | $0.88 | $0.75 | ||
Dividends payable | $16,704,000 | $16,635,000 | |||
Equity, Class of Treasury Stock [Line Items] | |||||
Payments of dividends | 16,598,000 | 14,293,000 | |||
Treasury stock reissued (shares) | 258,376 | ||||
Treasury stock reissued | 9,400,000 | ||||
October 2014 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | 100,000,000 | ||||
Stock repurchased during period, shares | 140,096 | ||||
Stock repurchased during period, value | 15,000,000 | ||||
Cumulative amount of shares repurchased | 160,431 | ||||
Cumulative payments for repurchase of common stock | 17,000,000 | ||||
Remaining authorized stock repurchases | $83,000,000 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (percent) | 38.40% | 38.20% | |
Gross unrecognized tax benefit | $3.20 | $3.40 | |
Expected change in unrecognized tax benefits | 0.1 | ||
Accrued interest on income taxes | 4 | 3.9 | |
Accrued penalties on income taxes | $0.10 | $0.10 |
StockBased_Compensation_Narrat
Stock-Based Compensation - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $2,700,000 | $3,000,000 | |
Accrued employee compensation and benefits | 10,913,000 | 25,722,000 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | 5,700,000 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 1 year 9 months 17 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost not yet recognized | 15,000,000 | ||
Total compensation cost not yet recognized, period for recognition (in years) | 1 year 9 months 24 days | ||
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Share-based compensation expense | 300,000 | -200,000 | |
Accrued employee compensation and benefits | $2,300,000 | $4,000,000 | |
LTIP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Multiplier for target award based on total shareholder return on common stock (percent) | 0.00% | ||
LTIP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Multiplier for target award based on total shareholder return on common stock (percent) | 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, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation, equity classified awards | $2.40 | $3.20 |
Stock-based compensation, liability classified awards | 0.3 | -0.2 |
Pre-tax compensation expense | 2.7 | 3 |
Tax provision | -1 | -1.1 |
Total stock-based compensation expense, net of tax | $1.70 | $1.90 |
StockBased_Compensation_Option
Stock-Based Compensation (Options Value Assumptions) (Details) (Stock Options, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (percent) | 1.56% |
Weighted average historical volatility (percent) | 37.50% |
Dividend yield (percent) | 3.10% |
Expected years until exercise (years) | 4 years 6 months |
Forfeitures (percent) | 11.00% |
Weighted average fair value of options granted (USD per share) | $28.37 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (Stock Options, USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, outstanding, beginning of period (in shares) | 618,115 |
Options, granted (in shares) | 117,511 |
Options, exercised (in shares) | -194,648 |
Options, outstanding, end of period (in shares) | 540,978 |
Options, vested and expected to vest (in shares) | 499,627 |
Options, exercisable (in shares) | 327,100 |
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) | $53.10 |
Weighted average exercise price, granted (per share) | $113.72 |
Weighted average exercise price, exercised (per share) | $42.16 |
Weighted average exercise price, end of period (per share) | $70.21 |
Weighted average exercise price, vested and expected to vest (per share) | $67.67 |
Weighted average exercise price, exercisable (per share) | $51.83 |
Weighted average remaining contractual term (in years) | 7 years 5 months 15 days |
Weighted average remaining contractual term, vested and expected to vest (in years) | 7 years 4 months 28 days |
Weighted average remaining contractual term, exercisable (in years) | 6 years 4 months 19 days |
Options, outstanding, intrinsic value | $20.70 |
Options, vested and expected to vest, intrinsic value | 20.3 |
Options, vested and expected to vest, exercisable | $18 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
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) | 233,818 |
Restricted stock, granted (in shares) | 63,728 |
Restricted stock, released (in shares) | -61,974 |
Restricted stock, forfeited (in shares) | -5,413 |
Restricted stock, end of period (in shares) | 230,159 |
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) | $70.14 |
Weighted average grant date fair value, granted (per share) | $113.62 |
Weighted average grant date fair value, released (per share) | $52.30 |
Weighted average grant date fair value, forfeited (per share) | $72.97 |
Weighted average grant date fair value, ending balance (per share) | $86.91 |
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) | 41,622 |
Restricted stock, granted (in shares) | 9,695 |
Restricted stock, released (in shares) | -13,567 |
Restricted stock, forfeited (in shares) | 0 |
Restricted stock, end of period (in shares) | 37,750 |
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) | $66.92 |
Weighted average grant date fair value, granted (per share) | $113.72 |
Weighted average grant date fair value, released (per share) | $52.19 |
Weighted average grant date fair value, forfeited (per share) | $0 |
Weighted average grant date fair value, ending balance (per share) | $86.54 |
Segments_Narrative_Details
Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Franchisor Disclosure [Line Items] | |
Number of segments (segment) | 2 |
Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of territories in which entity operates (territory) | 2 |
Number of countries in which entity operates (country) | 15 |
IHOP | |
Franchisor Disclosure [Line Items] | |
Number of territories in which entity operates (territory) | 2 |
Number of countries in which entity operates (country) | 8 |
Franchised Units | Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 1,991 |
Franchised Units | IHOP | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 1,637 |
Company Operated | Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 23 |
Company Operated | IHOP | |
Franchisor Disclosure [Line Items] | |
Number of restaurants (restaurant) | 13 |
Segments_Schedule_of_Segment_R
Segments (Schedule of Segment Reporting Information by Segment) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Rental revenues | $31,402,000 | $30,753,000 |
Financing revenues | 2,594,000 | 4,653,000 |
Total revenues | 175,814,000 | 167,201,000 |
Interest expense | 15,646,000 | 24,969,000 |
Depreciation and amortization | 7,815,000 | 8,783,000 |
Income before income tax provision: | 46,092,000 | 33,714,000 |
Franchise Operations | ||
Segment Reporting Information [Line Items] | ||
Franchise revenues | 124,500,000 | 115,500,000 |
Depreciation and amortization | 2,600,000 | 2,600,000 |
Income before income tax provision: | 89,000,000 | 86,100,000 |
Rental Operations | ||
Segment Reporting Information [Line Items] | ||
Rental revenues | 31,400,000 | 30,700,000 |
Interest expense | 3,500,000 | 3,900,000 |
Depreciation and amortization | 3,200,000 | 3,400,000 |
Income before income tax provision: | 7,900,000 | 6,900,000 |
Company Restaurants | ||
Segment Reporting Information [Line Items] | ||
Company restaurants | 17,300,000 | 16,300,000 |
Interest expense | 100,000 | 100,000 |
Depreciation and amortization | 200,000 | 500,000 |
Income before income tax provision: | 800,000 | 0 |
Financing Operations | ||
Segment Reporting Information [Line Items] | ||
Financing revenues | 2,600,000 | 4,700,000 |
Income before income tax provision: | 2,600,000 | 4,100,000 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 15,600,000 | 25,000,000 |
Depreciation and amortization | 1,800,000 | 2,300,000 |
Income before income tax provision: | -54,200,000 | -63,400,000 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Interest expense | $19,200,000 | $29,000,000 |
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, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $28,412 | $20,824 |
Less: Net income allocated to unvested participating restricted stock | -372 | -343 |
Net income available to common stockholders | 28,040 | 20,481 |
Effect of unvested participating restricted stock in two-class calculation | 2 | 2 |
Net income available to common stockholders - diluted | $28,042 | $20,483 |
Weighted average outstanding shares of common stock - basic (in shares) | 18,870 | 18,794 |
Dilutive effect of stock options (in shares) | 149 | 260 |
Weighted average outstanding shares of common stock - diluted (in shares) | 19,019 | 19,054 |
Net income per common share - basic (USD per share) | $1.49 | $1.09 |
Net income per common share -diluted (USD per share) | $1.47 | $1.08 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Non-Current Financial Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $1,300,000 | $1,300,000 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $1,347,600 | $1,302,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Narrative (Details) (Applebee's, Property Lease Guarantee, USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Applebee's | Property Lease Guarantee | |
Loss Contingencies [Line Items] | |
Potential liability for guaranteed leases | $373.10 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event) | Apr. 20, 2015 |
Restaurant | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Sales agreement, number of restaurants refranchised and sold | 23 |