Dine Brands Global (DIN) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	DineEquity, Inc.
Entity Central Index Key	49,754
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		18,411,286

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 140,330	$ 144,785
Receivables, net	97,871	139,206
Restricted cash	36,927	32,528
Prepaid gift card costs	37,202	46,792
Prepaid income taxes	0	5,186
Other current assets	4,737	4,212
Total current assets	317,067	372,709
Long-term receivables, net	155,360	160,695
Property and equipment, net	214,206	219,580
Goodwill	697,470	697,470
Other intangible assets, net	770,447	772,949
Deferred rent receivable	89,438	90,030
Other non-current assets, net	18,204	18,417
Total assets	2,262,192	2,331,850
Current liabilities:
Accounts payable	34,438	55,019
Gift card liability	119,162	167,657
Accrued employee compensation and benefits	14,140	25,085
Dividends payable	17,011	17,082
Current maturities of capital lease and financing obligations	14,447	14,320
Income taxes payable	14,258	0
Accrued advertising	16,209	8,758
Accrued interest payable	4,287	4,257
Other accrued expenses	12,078	6,251
Total current liabilities	246,030	298,429
Long-term debt, net	1,280,264	1,279,473
Capital lease obligations, less current maturities	81,143	84,781
Financing obligations, less current maturities	42,360	42,395
Deferred income taxes, net	262,004	269,469
Deferred rent payable	68,817	69,397
Other non-current liabilities	21,269	20,683
Total liabilities	$ 2,001,887	$ 2,064,627
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, shares: 40,000,000 authorized; March 31, 2016 - 25,166,732 issued, 18,409,845 outstanding; December 31, 2015 - 25,186,048 issued, 18,535,027 outstanding	$ 252	$ 252
Additional paid-in-capital	287,601	286,952
Retained earnings	360,483	351,923
Accumulated other comprehensive loss	(106)	(107)
Treasury stock, at cost; shares: March 31, 2016 - 6,756,887; December 31, 2015 - 6,651,021	(387,925)	(371,797)
Total stockholders’ equity	260,305	267,223
Total liabilities and stockholders’ equity	$ 2,262,192	$ 2,331,850

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
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	25,166,732	25,186,048
Common stock, shares outstanding	18,409,845	18,535,027
Treasury stock, shares	6,756,887	6,651,021

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Franchise and restaurant revenues	$ 129,786	$ 141,818
Rental revenues	31,409	31,402
Financing revenues	2,329	2,594
Total revenues	163,524	175,814
Cost of revenues:
Franchise and restaurant expenses	40,869	52,026
Rental expenses	23,231	23,490
Financing expenses	0	12
Total cost of revenues	64,100	75,528
Gross profit	99,424	100,286
General and administrative expenses	39,424	34,230
Interest expense	15,366	15,646
Amortization of intangible assets	2,480	2,500
Closure and impairment charges, net	435	1,827
Loss (gain) on disposition of assets	614	(9)
Income before income tax provision	41,105	46,092
Income tax provision	(15,562)	(17,680)
Net income	25,543	28,412
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	1	(15)
Total comprehensive income	25,544	28,397
Net income available to common stockholders:
Net income	25,543	28,412
Less: Net income allocated to unvested participating restricted stock	(382)	(372)
Net income available to common stockholders	$ 25,161	$ 28,040
Net income available to common stockholders per share:
Basic (USD per share)	$ 1.38	$ 1.49
Diluted (USD per share)	$ 1.37	$ 1.47
Weighted average shares outstanding:
Basic (in shares)	18,260	18,870
Diluted (in shares)	18,373	19,019
Dividends declared per common share (USD per share)	$ 0.92	$ 0.875
Dividends paid per common share (USD per share)	$ 0.92	$ 0.875

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 25,543	$ 28,412
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	8,074	7,815
Non-cash interest expense	791	755
Deferred income taxes	(4,700)	(6,702)
Non-cash stock-based compensation expense	3,192	2,432
Tax benefit from stock-based compensation	2,537	4,696
Excess tax benefit from stock-based compensation	(862)	(4,526)
Closure and impairment charges	435	1,827
Loss (gain) on disposition of assets	614	(9)
Other	1,048	31
Changes in operating assets and liabilities:
Accounts receivable, net	116	(2,742)
Current income tax receivables and payables	16,918	18,665
Gift card receivables and payables	(12,820)	5,623
Other current assets	(520)	(1,638)
Accounts payable	(5,069)	1,034
Accrued employee compensation and benefits	(10,945)	(14,810)
Accrued interest payable	30	(10,229)
Other current liabilities	13,112	10,496
Cash flows provided by operating activities	37,494	41,130
Cash flows from investing activities:
Additions to property and equipment	(839)	(2,617)
Principal receipts from notes, equipment contracts and other long-term receivables	4,206	4,442
Other	(105)	(40)
Cash flows provided by investing activities	3,262	1,785
Cash flows from financing activities:
Principal payments on capital lease and financing obligations	(3,385)	(3,165)
Repurchase of common stock	(20,004)	(15,003)
Dividends paid on common stock	(17,049)	(16,598)
Tax payments for restricted stock upon vesting	(2,116)	(2,961)
Proceeds from stock options exercised	880	8,206
Excess tax benefit from stock-based compensation	862	4,526
Change in restricted cash	(4,399)	11,561
Other	0	(15)
Cash flows used in financing activities	(45,211)	(13,449)
Net change in cash and cash equivalents	(4,455)	29,466
Cash and cash equivalents at beginning of period	144,785	104,004
Cash and cash equivalents at end of period	140,330	133,470
Supplemental disclosures:
Interest paid in cash	17,423	28,387
Income taxes paid in cash	$ 1,018	$ 1,172

General

General	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General The accompanying unaudited consolidated financial statements of DineEquity, Inc. (the “Company” or “DineEquity”) 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, 2016 are not necessarily indicative of the results that may be expected for the twelve months ending December 31, 2016 . The consolidated balance sheet at December 31, 2015 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, 2015 .

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
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 calendar 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 2016 began on January 4, 2016 and ended on April 3, 2016 . The first quarter of fiscal 2015 began on December 29, 2014 and ended on March 29, 2015 . 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: impairment of tangible assets, goodwill and other intangible assets; income taxes; allowance for doubtful accounts and notes receivables; lease accounting estimates; contingencies; and stock-based compensation. 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, 2016
Accounting Changes and Error Corrections [Abstract]
Accounting Policies	Accounting Policies Accounting Standards Adopted in the Current Fiscal Year Various updates to accounting guidance became effective in the Company's first fiscal quarter of 2016. The majority of these updates either did not apply to the Company's operations or only will apply if the activity addressed in the guidance takes place in the future. Adoption of updates that did apply to the Company's operations did not have a material effect on the Company's financial statements. Newly Issued Accounting Standards Not Yet Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance with respect to accounting for certain aspects of share-based payments to employees. Among other changes, entities will be required to recognize the income tax effects in the income statement when awards vest or are settled. Guidance with respect to the accounting for forfeitures and cash flow presentation of certain share-based payment activity has been modified as well. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2017. Early adoption is permitted as long as all amendments addressed in the new guidance are adopted in the same period. The method of adoption varies based on each individual amendment. The Company is currently evaluating the impact of the new guidance on its financial statements. In February 2016, the FASB issued new guidance with respect to the accounting for leases. The new guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all leases, other than leases with a term of 12 months or less, and to provide additional disclosures about leasing arrangements. Accounting by lessors is largely unchanged from existing accounting guidance. The Company will be required to adopt the new guidance on a modified retrospective basis beginning with its first fiscal quarter of 2019. Early adoption is permitted. While the Company is still in the process of evaluating the impact of the new guidance on its financial statements and disclosures, the Company expects adoption of the new guidance will have a material impact on its Consolidated Balance Sheets due to recognition of the right-of-use asset and lease liability related to its operating leases. While the new guidance will impact the measurement and presentation of elements of expenses and cash flows related to leasing arrangements, the Company does not presently believe there will be a material impact on its Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. In May 2014, the FASB issued new accounting guidance on revenue recognition, which provides for a single, five-step model to be applied to all revenue contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. In August 2015, the FASB deferred the effective date of the new revenue guidance by one year such that the Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2018. This new guidance 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 the new guidance. Additionally, lease rental revenues are not within the scope of the new revenue guidance. The Company is currently evaluating the impact of the new guidance 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, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Dividends During the three months ended March 31, 2016 , the Company paid dividends on common stock of $17.0 million , representing the cash dividend of $0.92 per share declared in the fourth quarter of 2015. On February 23, 2016, the Company's Board of Directors declared a first quarter 2016 cash dividend of $0.92 per share of common stock. This dividend was paid on April 8, 2016 to the Company's stockholders of record at the close of business on March 18, 2016. The Company reported dividends payable of $17.0 million at March 31, 2016 . Stock Repurchase Program In October 2015, the Company's Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $150 million of DineEquity common stock (the “2015 Repurchase Program”) 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 2015 Repurchase Program, as approved by the Board of Directors, does not require the repurchase of a specific number of shares and can be terminated at any time. During the three months ended March 31, 2016 , the Company repurchased 214,545 shares of common stock at a cost of $20.0 million under the 2015 Repurchase Program. As of March 31, 2016 , the Company has repurchased a cumulative total of 419,032 shares of common stock under the 2015 Repurchase Program at a total cost of $37.5 million . As of March 31, 2016 , a total of $112.5 million remains available for additional repurchases under the 2015 Repurchase Program. 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, 2016 , the Company re-issued 108,679 treasury shares at a total FIFO cost of $3.9 million .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's effective tax rate was 37.9% for the three months ended March 31, 2016 as compared to 38.4% for the three months ended March 31, 2015 . T he effective tax rate in 2016 was lower than the prior year because of an addition to tax reserves recorded in the first quarter of 2015 that slightly increased the effective tax rate for that period. The total gross unrecognized tax benefit as of March 31, 2016 and December 31, 2015 was $4.2 million and $3.9 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 $1.5 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 as to when cash settlement with a taxing authority will occur. As of March 31, 2016 , accrued interest was $5.0 million and accrued penalties were less than $0.1 million , excluding any related income tax benefits. As of December 31, 2015 , accrued interest was $4.9 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 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 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. The Company anticipates the appeals process will conclude during 2016. The Company continues to believe that adequate reserves have been provided relating to all matters contained in the tax periods open to examination.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The following table summarizes the components of stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income: Three months ended March 31, 2016 2015 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 3.2 $ 2.4 Liability classified awards expense 0.8 0.3 Total pre-tax stock-based compensation expense 4.0 2.7 Book income tax benefit (1.5 ) (1.0 ) Total stock-based compensation expense, net of tax $ 2.5 $ 1.7 As of March 31, 2016 , total unrecognized compensation expense of $18.6 million related to restricted stock and restricted stock units and $6.1 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 1.81 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, 2016 was calculated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model: Risk-free interest rate 1.08 % Weighted average historical volatility 27.1 % Dividend yield 4.05 % Expected years until exercise 4.5 Weighted average fair value of options granted $13.55 Stock option balances as of March 31, 2016 and related activity for the three months ended March 31, 2016 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Millions) Outstanding at December 31, 2015 504,462 $ 69.99 Granted 255,825 90.90 Exercised (36,005 ) 24.43 Outstanding at March 31, 2016 724,282 79.64 7.9 $12.1 Vested at March 31, 2016 and Expected to Vest 659,693 78.24 7.7 $11.9 Exercisable at March 31, 2016 355,330 $ 64.44 6.1 $11.0 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 2016 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, 2016 . 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, 2016 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2016 were as follows: Restricted Stock Weighted Average Grant Date Fair Value Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 257,594 $ 89.99 35,116 $ 86.30 Granted 72,674 90.76 11,961 90.90 Released (53,847 ) 73.66 (14,027 ) 72.01 Forfeited (7,794 ) 89.93 — — Outstanding at March 31, 2016 268,627 $ 93.48 33,050 $ 93.97 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 stockholder return of DineEquity common stock compared to the total stockholder returns of a peer group of companies. Although LTIP awards are only paid in cash, since 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 classified as liabilities. For the three months ended March 31, 2016 and 2015 , expenses of $0.8 million and $0.3 million , respectively, were included in total stock-based compensation expense related to the LTIP awards. At March 31, 2016 and December 31, 2015 , liabilities of $2.4 million and $1.6 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, 2016
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 exceeded 10% of consolidated revenues, income before income tax provision or total assets. As of March 31, 2016 , the franchise operations segment consisted of (i) 2,029 restaurants operated by Applebee’s franchisees in the United States, two U.S. territories and 15 countries outside the United States and (ii) 1,673 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 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, 2016 , the company restaurant operations segment consisted of 11 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 is as follows: Three months ended March 31, 2016 2015 (In millions) Revenues from external customers: Franchise operations $ 125.0 $ 124.5 Rental operations 31.4 31.4 Company restaurants 4.8 17.3 Financing operations 2.3 2.6 Total $ 163.5 $ 175.8 Interest expense: Rental operations $ 3.1 $ 3.5 Company restaurants 0.1 0.1 Corporate 15.4 15.6 Total $ 18.6 $ 19.2 Depreciation and amortization: Franchise operations $ 2.6 $ 2.6 Rental operations 3.2 3.2 Company restaurants 0.1 0.2 Corporate 2.2 1.8 Total $ 8.1 $ 7.8 Income (loss) before income tax provision: Franchise operations $ 89.3 $ 89.0 Rental operations 8.2 7.9 Company restaurants (0.4 ) 0.8 Financing operations 2.3 2.6 Corporate (58.3 ) (54.2 ) Total $ 41.1 $ 46.1

Net Income per Share

Net Income per Share	3 Months Ended
	Mar. 31, 2016
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 is as follows: Three months ended March 31, 2016 2015 (In thousands, except per share data) Numerator for basic and dilutive income per common share: Net income $ 25,543 $ 28,412 Less: Net income allocated to unvested participating restricted stock (382 ) (372 ) Net income available to common stockholders - basic 25,161 28,040 Effect of unvested participating restricted stock in two-class calculation 1 2 Net income available to common stockholders - diluted $ 25,162 $ 28,042 Denominator: Weighted average outstanding shares of common stock - basic 18,260 18,870 Dilutive effect of stock options 113 149 Weighted average outstanding shares of common stock - diluted 18,373 19,019 Net income per common share: Basic $ 1.38 $ 1.49 Diluted $ 1.37 $ 1.47

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
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 the Company's Series 2014-1 Class A-2 Notes (the “Class A-2 Notes”) at March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt $ 1,280.3 $ 1,298.3 $ 1,279.5 $ 1,306.1 The fair values were determined based on Level 2 inputs, including information gathered from brokers who trade in the Company’s Class A-2 Notes and information on notes that are similar to those of the Company.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
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 $391.0 million as of March 31, 2016 . 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 2016 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 lease payment guarantee liabilities have been recorded as of March 31, 2016 .

Facility Consolidation

Facility Consolidation	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Facility Consolidation Costs	Facility Consolidation Costs In September 2015, the Company approved a plan to consolidate many core restaurant and franchisee support functions at its headquarters in Glendale, California and communicated the plan to employees. In conjunction with this action, the Company will exit a significant portion of the Applebee's restaurant support center in Kansas City, Missouri. The Company estimates it will incur a total of approximately $8 million in employee termination and other personnel-related costs associated with the consolidation. As of March 31, 2016, the Company has incurred a total of $5.7 million in employee termination costs and expects to incur the majority of the remaining estimated costs in the second and third fiscal quarters of 2016. The Company estimates it will incur up to an additional $8 million in costs related to the exit of the facility. The majority of the facility exit costs will be incurred as of the date the Company will stop using a significant portion of the facility it will be vacating, estimated to be in the second quarter of fiscal 2016. During the three months ended March 31, 2016 , the Company incurred $1.1 million of employee termination costs, primarily relocation and severance costs associated with the consolidation. These charges were included in general and administrative expenses in the Consolidated Statements of Comprehensive Income. Employee Termination Costs (In millions ) Accrued termination costs at December 31, 2014 $ — Charges 4.6 Payments (1.1 ) Accrued termination costs at December 31, 2015 3.5 Charges 1.1 Payments (2.3 ) Accrued termination costs at March 31, 2016 $ 2.3 The $2.3 million of accrued termination costs were included in accrued employee compensation and benefits in the Consolidated Balance Sheet at March 31, 2016 . Approximately $3.3 million and $0.2 million of accrued termination costs were included in accrued employee compensation and benefits and other accrued expenses, respectively, in the Consolidated Balance Sheet at December 31, 2015 .

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Fiscal Period, Policy	The Company’s fiscal quarters end on the Sunday closest to the last day of each calendar 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 2016 began on January 4, 2016 and ended on April 3, 2016 . The first quarter of fiscal 2015 began on December 29, 2014 and ended on March 29, 2015 .
Accounting Standards Adopted in the Current Fiscal Year	Accounting Standards Adopted in the Current Fiscal Year Various updates to accounting guidance became effective in the Company's first fiscal quarter of 2016. The majority of these updates either did not apply to the Company's operations or only will apply if the activity addressed in the guidance takes place in the future. Adoption of updates that did apply to the Company's operations did not have a material effect on the Company's financial statements.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
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 stock-based compensation expense included in general and administrative expenses in the Consolidated Statements of Comprehensive Income: Three months ended March 31, 2016 2015 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 3.2 $ 2.4 Liability classified awards expense 0.8 0.3 Total pre-tax stock-based compensation expense 4.0 2.7 Book income tax benefit (1.5 ) (1.0 ) Total stock-based compensation expense, net of tax $ 2.5 $ 1.7
Schedule of stock option valuation assumptions	The following summarizes the assumptions used in the Black-Scholes model: Risk-free interest rate 1.08 % Weighted average historical volatility 27.1 % Dividend yield 4.05 % Expected years until exercise 4.5 Weighted average fair value of options granted $13.55
Schedule of stock option activity	Stock option balances as of March 31, 2016 and related activity for the three months ended March 31, 2016 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Millions) Outstanding at December 31, 2015 504,462 $ 69.99 Granted 255,825 90.90 Exercised (36,005 ) 24.43 Outstanding at March 31, 2016 724,282 79.64 7.9 $12.1 Vested at March 31, 2016 and Expected to Vest 659,693 78.24 7.7 $11.9 Exercisable at March 31, 2016 355,330 $ 64.44 6.1 $11.0
Schedule of restricted stock unit activity	Outstanding balances as of March 31, 2016 and activity related to restricted stock and restricted stock units for the three months ended March 31, 2016 were as follows: Restricted Stock Weighted Average Grant Date Fair Value Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 257,594 $ 89.99 35,116 $ 86.30 Granted 72,674 90.76 11,961 90.90 Released (53,847 ) 73.66 (14,027 ) 72.01 Forfeited (7,794 ) 89.93 — — Outstanding at March 31, 2016 268,627 $ 93.48 33,050 $ 93.97

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of segment reporting information by segment	Information on segments is as follows: Three months ended March 31, 2016 2015 (In millions) Revenues from external customers: Franchise operations $ 125.0 $ 124.5 Rental operations 31.4 31.4 Company restaurants 4.8 17.3 Financing operations 2.3 2.6 Total $ 163.5 $ 175.8 Interest expense: Rental operations $ 3.1 $ 3.5 Company restaurants 0.1 0.1 Corporate 15.4 15.6 Total $ 18.6 $ 19.2 Depreciation and amortization: Franchise operations $ 2.6 $ 2.6 Rental operations 3.2 3.2 Company restaurants 0.1 0.2 Corporate 2.2 1.8 Total $ 8.1 $ 7.8 Income (loss) before income tax provision: Franchise operations $ 89.3 $ 89.0 Rental operations 8.2 7.9 Company restaurants (0.4 ) 0.8 Financing operations 2.3 2.6 Corporate (58.3 ) (54.2 ) Total $ 41.1 $ 46.1

Net Income per Share (Tables)

Net Income per Share (Tables)	3 Months Ended
	Mar. 31, 2016
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 is as follows: Three months ended March 31, 2016 2015 (In thousands, except per share data) Numerator for basic and dilutive income per common share: Net income $ 25,543 $ 28,412 Less: Net income allocated to unvested participating restricted stock (382 ) (372 ) Net income available to common stockholders - basic 25,161 28,040 Effect of unvested participating restricted stock in two-class calculation 1 2 Net income available to common stockholders - diluted $ 25,162 $ 28,042 Denominator: Weighted average outstanding shares of common stock - basic 18,260 18,870 Dilutive effect of stock options 113 149 Weighted average outstanding shares of common stock - diluted 18,373 19,019 Net income per common share: Basic $ 1.38 $ 1.49 Diluted $ 1.37 $ 1.47

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of non-current financial liabilities	The fair values of the Company's Series 2014-1 Class A-2 Notes (the “Class A-2 Notes”) at March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt $ 1,280.3 $ 1,298.3 $ 1,279.5 $ 1,306.1

Facility Consolidation (Tables)

Facility Consolidation (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	Employee Termination Costs (In millions ) Accrued termination costs at December 31, 2014 $ — Charges 4.6 Payments (1.1 ) Accrued termination costs at December 31, 2015 3.5 Charges 1.1 Payments (2.3 ) Accrued termination costs at March 31, 2016 $ 2.3

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	Feb. 23, 2016	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Oct. 31, 2014
Equity, Class of Treasury Stock [Line Items]
Payments of dividends		$ 17,049,000		$ 16,598,000
Dividends declared per common share (USD per share)	$ 0.92	$ 0.92	$ 0.92	$ 0.875
Dividends payable		$ 17,011,000	$ 17,082,000
Treasury stock reissued (shares)		108,679
Treasury stock reissued		$ 3,900,000
October 2014 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount					$ 150,000,000
Stock repurchased during period, shares		214,545
Stock repurchased during period, value		$ 20,000,000
Cumulative amount of shares repurchased		419,032
Cumulative payments for repurchase of common stock		$ 37,500,000
Remaining authorized stock repurchases		$ 112,500,000

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate (percent)	37.90%	38.40%
Gross unrecognized tax benefit	$ 4.2		$ 3.9
Expected change in unrecognized tax benefits	1.5
Accrued interest on income taxes	5		4.9
Accrued penalties on income taxes, less than	$ 0.1		$ 0.1

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 4,000	$ 2,700
Accrued employee compensation and benefits	14,140		$ 25,085
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized	$ 6,100
Total compensation cost not yet recognized, period for recognition (in years)	1 year 9 months 23 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized	$ 18,600
Total compensation cost not yet recognized, period for recognition (in years)	1 year 9 months 26 days
LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Share-based compensation expense	$ 800	$ 300
Accrued employee compensation and benefits	$ 2,400		$ 1,600
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%

Stock-Based Compensation (Compo

Stock-Based Compensation (Components of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation, equity classified awards	$ 3.2	$ 2.4
Stock-based compensation, liability classified awards	0.8	0.3
Total pre-tax stock-based compensation expense	4	2.7
Book income tax benefit	(1.5)	(1)
Total stock-based compensation expense, net of tax	$ 2.5	$ 1.7

Stock-Based Compensation (Optio

Stock-Based Compensation (Options Value Assumptions) (Details) - Stock Options	3 Months Ended
	Mar. 31, 2016$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (percent)	1.08%
Weighted average historical volatility (percent)	27.10%
Dividend yield (percent)	4.05%
Expected years until exercise (years)	4 years 6 months
Weighted average fair value of options granted (USD per share)	$ 13.55

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock Option Activity) (Details) - Stock Options $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, outstanding, beginning of period (in shares) | shares	504,462
Options, granted (in shares) | shares	255,825
Options, exercised (in shares) | shares	(36,005)
Options, outstanding, end of period (in shares) | shares	724,282
Options, vested and expected to vest (in shares) | shares	659,693
Options, exercisable (in shares) | shares	355,330
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) | $ / shares	$ 69.99
Weighted average exercise price, granted (per share) | $ / shares	90.90
Weighted average exercise price, exercised (per share) | $ / shares	24.43
Weighted average exercise price, end of period (per share) | $ / shares	79.64
Weighted average exercise price, vested and expected to vest (per share) | $ / shares	78.24
Weighted average exercise price, exercisable (per share) | $ / shares	$ 64.44
Weighted average remaining contractual term (in years)	7 years 10 months 10 days
Weighted average remaining contractual term, vested and expected to vest (in years)	7 years 8 months 7 days
Weighted average remaining contractual term, exercisable (in years)	6 years 1 month 18 days
Options, outstanding, intrinsic value | $	$ 12.1
Options, vested and expected to vest, intrinsic value | $	11.9
Options, vested and expected to vest, exercisable | $	$ 11

Stock-Based Compensation (Restr

Stock-Based Compensation (Restricted Stock) (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
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) | shares	257,594
Restricted stock, granted (in shares) | shares	72,674
Restricted stock, released (in shares) | shares	(53,847)
Restricted stock, forfeited (in shares) | shares	(7,794)
Restricted stock, end of period (in shares) | shares	268,627
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) | $ / shares	$ 89.99
Weighted average grant date fair value, granted (per share) | $ / shares	90.76
Weighted average grant date fair value, released (per share) | $ / shares	73.66
Weighted average grant date fair value, forfeited (per share) | $ / shares	89.93
Weighted average grant date fair value, ending balance (per share) | $ / shares	$ 93.48
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) | shares	35,116
Restricted stock, granted (in shares) | shares	11,961
Restricted stock, released (in shares) | shares	(14,027)
Restricted stock, forfeited (in shares) | shares	0
Restricted stock, end of period (in shares) | shares	33,050
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) | $ / shares	$ 86.30
Weighted average grant date fair value, granted (per share) | $ / shares	90.90
Weighted average grant date fair value, released (per share) | $ / shares	72.01
Weighted average grant date fair value, forfeited (per share) | $ / shares	0
Weighted average grant date fair value, ending balance (per share) | $ / shares	$ 93.97

Segments - Narrative (Details)

Segments - Narrative (Details)	3 Months Ended
	Mar. 31, 2016RestaurantCountrysegmentTerritory
Franchisor Disclosure [Line Items]
Number of segments (segment) | segment	2
Applebee's
Franchisor Disclosure [Line Items]
Number of territories in which entity operates (territory) | Territory	2
Number of countries in which entity operates (country) | Country	15
IHOP
Franchisor Disclosure [Line Items]
Number of territories in which entity operates (territory) | Territory	2
Number of countries in which entity operates (country) | Country	9
Franchised Units | Applebee's
Franchisor Disclosure [Line Items]
Number of restaurants (restaurant)	2,029
Franchised Units | IHOP
Franchisor Disclosure [Line Items]
Number of restaurants (restaurant)	1,673
Company Operated | IHOP
Franchisor Disclosure [Line Items]
Number of restaurants (restaurant)	11

Segments (Schedule of Segment R

Segments (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Rental revenues	$ 31,409	$ 31,402
Financing revenues	2,329	2,594
Total revenues	163,524	175,814
Interest expense	18,600	19,200
Depreciation and amortization	8,074	7,815
Income (loss) before income tax provision:	41,105	46,092
Operating Segments | Franchise Operations
Segment Reporting Information [Line Items]
Franchise revenues	125,000	124,500
Depreciation and amortization	2,600	2,600
Income (loss) before income tax provision:	89,300	89,000
Operating Segments | Rental Operations
Segment Reporting Information [Line Items]
Rental revenues	31,400	31,400
Interest expense	3,100	3,500
Depreciation and amortization	3,200	3,200
Income (loss) before income tax provision:	8,200	7,900
Operating Segments | Company Restaurants
Segment Reporting Information [Line Items]
Company restaurants	4,800	17,300
Interest expense	100	100
Depreciation and amortization	100	200
Income (loss) before income tax provision:	(400)	800
Operating Segments | Financing Operations
Segment Reporting Information [Line Items]
Financing revenues	2,300	2,600
Income (loss) before income tax provision:	2,300	2,600
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Interest expense	15,400	15,600
Depreciation and amortization	2,200	1,800
Income (loss) before income tax provision:	$ (58,300)	$ (54,200)

Net Income per Share - Computat

Net Income per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 25,543	$ 28,412
Less: Net income allocated to unvested participating restricted stock	(382)	(372)
Net income available to common stockholders	25,161	28,040
Effect of unvested participating restricted stock in two-class calculation	1	2
Net income available to common stockholders - diluted	$ 25,162	$ 28,042
Weighted average outstanding shares of common stock - basic (in shares)	18,260	18,870
Dilutive effect of stock options (in shares)	113	149
Weighted average outstanding shares of common stock - diluted (in shares)	18,373	19,019
Net income per common share - basic (USD per share)	$ 1.38	$ 1.49
Net income per common share -diluted (USD per share)	$ 1.37	$ 1.47

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Non-Current Financial Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net	$ 1,280,264	$ 1,279,473
Fair Value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, net	$ 1,298,300	$ 1,306,100

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	Mar. 31, 2016USD ($)
Loss Contingencies [Line Items]
Potential liability for guaranteed leases	$ 0
Applebee's | Property Lease Guarantee
Loss Contingencies [Line Items]
Potential liability for guaranteed leases	$ 391

Facility Consolidation Employee

Facility Consolidation Employee Termination Costs (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Sep. 30, 2015	Mar. 31, 2016	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Accrued termination costs, beginning		$ 3.5	$ 0
Charges	$ 8	1.1	4.6
Payments		(2.3)	$ (1.1)
Accrued termination costs, ending		2.3
Employee Severance
Restructuring Cost and Reserve [Line Items]
Charges		$ 5.7

Facility Consolidation Narrativ

Facility Consolidation Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Sep. 30, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Employee termination costs	$ 8	$ 1.1	$ 4.6
Accrued termination costs		2.3		$ 3.5	$ 0
Termination costs included in accrued employee compensation benefits				3.3
Termination costs included in other accrued expenses				$ 0.2
Employee Severance
Restructuring Cost and Reserve [Line Items]
Employee termination costs		5.7
Facility Closing
Restructuring Cost and Reserve [Line Items]
Exit costs		$ 8