Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Feb. 17, 2020 | |
Cover page. | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-15283 | |
Entity Registrant Name | Dine Brands Global, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-3038279 | |
Entity Address, Address Line One | 450 North Brand Boulevard, | |
Entity Address, City or Town | Glendale, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91203-1903 | |
City Area Code | (818) | |
Local Phone Number | 240-6055 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DIN | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 1,560 | |
Entity Common Stock, Shares Outstanding | 16,487,372 | |
Documents Incorporated by Reference | Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on Tuesday, May 12, 2020 are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Except as expressly incorporated by reference, the registrant’s Proxy Statement shall not be deemed to be part of this report. | |
Entity Central Index Key | 0000049754 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 116,043 | $ 137,164 |
Receivables, net | 136,869 | 137,504 |
Restricted cash | 40,732 | 48,515 |
Prepaid gift card costs | 36,077 | 38,195 |
Prepaid income taxes | 13,290 | 17,402 |
Other current assets | 3,906 | 3,410 |
Total current assets | 346,917 | 382,190 |
Other intangible assets, net | 575,103 | 585,889 |
Operating lease right-of-use assets | 366,931 | |
Goodwill | 343,862 | 345,314 |
Property and equipment, net | 216,420 | 240,264 |
Long-term receivables, net | 85,999 | 103,102 |
Deferred rent receivable | 70,308 | 77,069 |
Non-current restricted cash | 15,700 | 14,700 |
Other non-current assets, net | 28,271 | 26,152 |
Total assets | 2,049,511 | 1,774,680 |
Current liabilities: | ||
Current maturities of long-term debt | 0 | 25,000 |
Accounts payable | 40,925 | 43,468 |
Gift card liability | 159,019 | 160,438 |
Current maturities of operating lease obligations | 72,815 | |
Accrued employee compensation and benefits | 23,904 | 27,479 |
Current maturities of finance lease and financing obligations | 13,669 | 14,031 |
Dividends payable | 11,702 | 11,389 |
Deferred franchise revenue, short-term | 10,086 | 10,138 |
Other accrued expenses | 25,792 | 24,243 |
Total current liabilities | 357,912 | 316,186 |
Long-term debt, net, less current maturities | 1,288,248 | 1,274,087 |
Operating lease obligations, less current maturities | 359,025 | |
Finance lease obligations, less current maturities | 77,393 | |
Finance lease obligations, less current maturities | 87,762 | |
Financing obligations, less current maturities | 37,682 | 38,482 |
Deferred income taxes, net | 98,499 | 105,816 |
Deferred franchise revenue, long-term | 56,944 | 64,557 |
Other non-current liabilities | 15,582 | 90,063 |
Total liabilities | 2,291,285 | 1,976,953 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common stock, $0.01 par value; shares: 40,000,000 authorized; 2019 - 24,925,447 issued, 16,521,921 outstanding; 2018 - 24,984,898 issued, 17,644,267 outstanding | 249 | 250 |
Additional paid-in-capital | 246,192 | 237,726 |
Retained earnings | 61,653 | 10,414 |
Accumulated other comprehensive loss | (58) | (60) |
Treasury stock, at cost; shares: 2019 - 8,403,526; 2018 - 7,340,631 | (549,810) | (450,603) |
Total stockholders' deficit | (241,774) | (202,273) |
Total liabilities and stockholders' deficit | $ 2,049,511 | $ 1,774,680 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 24,925,447 | 24,984,898 |
Common stock, shares outstanding (in shares) | 16,521,921 | 17,644,267 |
Treasury stock, shares outstanding (in shares) | 8,403,526 | 7,340,631 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Rental revenues | $ 120,666 | $ 121,934 | $ 121,437 |
Total revenues | 910,178 | 780,931 | 731,725 |
Cost of revenues: | |||
Total franchise expenses | 312,754 | 330,619 | 293,986 |
Company restaurant expenses | 123,272 | 5,872 | 7,838 |
Interest expense from finance leases | 5,602 | 6,894 | 8,153 |
Other rental expenses | 85,157 | 83,862 | 82,439 |
Total rental expenses | 90,759 | 90,756 | 90,592 |
Financing expenses | 579 | 597 | 598 |
Total cost of revenues | 527,364 | 427,844 | 393,014 |
Gross profit | 382,814 | 353,087 | 338,711 |
General and administrative expenses | 162,815 | 166,683 | 165,679 |
Interest expense | 60,393 | 61,686 | 61,979 |
Amortization of intangible assets | 11,702 | 10,105 | 10,009 |
Closure and other impairment charges | 1,487 | 2,107 | 3,968 |
Loss on extinguishment of debt | 8,276 | 0 | 0 |
Debt refinancing costs | 0 | 2,523 | 0 |
Gain on disposition of assets | (332) | (625) | (6,249) |
Impairment of goodwill and intangible assets | 0 | 0 | 531,634 |
Income (loss) before income tax (provision) benefit | 138,473 | 110,608 | (428,309) |
Income tax (provision) benefit | (34,127) | (30,254) | 85,559 |
Net income (loss) | 104,346 | 80,354 | (342,750) |
Other comprehensive income (loss), net of tax: | |||
Adjustment to unrealized loss on available-for-sale investments | 0 | 50 | 0 |
Foreign currency translation adjustment | 2 | (5) | 2 |
Total comprehensive income (loss) | 104,348 | 80,399 | (342,748) |
Net income (loss) available to common stockholders: | |||
Net income (loss) | 104,346 | 80,354 | (342,750) |
Less: Net (income) loss allocated to unvested participating restricted stock | (3,532) | (2,711) | 6,768 |
Net income (loss) available to common stockholders | $ 100,814 | $ 77,643 | $ (335,982) |
Net income (loss) available to common stockholders per share: | |||
Basic (in dollars per share) | $ 5.95 | $ 4.43 | $ (18.96) |
Diluted (in dollars per share) | $ 5.85 | $ 4.37 | $ (18.96) |
Weighted average shares outstanding: | |||
Basic (in shares) | 16,934 | 17,533 | 17,725 |
Diluted (in shares) | 17,245 | 17,789 | 17,740 |
Franchisor | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | $ 651,186 | $ 643,934 | $ 594,418 |
Franchisor - Royalties, franchise fees, and other | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 368,171 | 375,640 | 360,253 |
Franchisor - Advertising Revenue | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 283,015 | 268,294 | 234,165 |
Food and Beverage | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 131,214 | 7,084 | 7,518 |
Financial Service | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 7,112 | 7,979 | 8,352 |
Advertising | |||
Revenues: | |||
Revenue from contract with customer, excluding assessed tax | 283,015 | 268,294 | 234,165 |
Cost of revenues: | |||
Total franchise expenses | 281,781 | 269,590 | 243,096 |
Franchise | |||
Cost of revenues: | |||
Total franchise expenses | $ 30,973 | $ 61,029 | $ 50,890 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock |
Common stock, shares, outstanding, beginning (in shares) at Dec. 31, 2016 | 17,970,000 | |||||
Stockholders' equity, beginning of the period at Dec. 31, 2016 | $ 196,141 | $ 251 | $ 292,809 | $ 325,451 | $ (107) | $ (422,263) |
Treasury stock, shares, beginning (in shares) at Dec. 31, 2016 | 7,165,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (342,750) | (342,750) | ||||
Other comprehensive gain | 2 | 2 | ||||
Purchase of DineEquity common stock (in shares) | (146,000) | (146,000) | ||||
Purchase of Company common stock | $ (10,003) | $ (10,003) | ||||
Reissuance of treasury stock (in shares) | 281,185 | 281,000 | 281,000 | |||
Reissuance of treasury stock | $ 2,635 | (7,478) | $ 10,113 | |||
Net issuance of shares for stock plans (in shares) | (71,000) | |||||
Net use of shares for stock plans | 0 | $ (1) | 1 | |||
Repurchase of restricted shares (in shares) | (41,000) | |||||
Repurchase of restricted shares for taxes | (2,396) | (2,396) | ||||
Stock-based compensation | 10,783 | 10,783 | ||||
Dividends on common stock | (52,234) | 407 | (52,641) | |||
Dividends declared from additional paid-in capital | (17,718) | (17,718) | ||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2017 | 17,993,000 | |||||
Stockholders' equity, ending of the period at Dec. 31, 2017 | (215,540) | $ 250 | 276,408 | (69,940) | (105) | $ (422,153) |
Treasury stock, shares, ending (in shares) at Dec. 31, 2017 | 7,029,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 80,354 | 80,354 | ||||
Other comprehensive gain | 45 | 45 | ||||
Purchase of DineEquity common stock (in shares) | (479,000) | (479,000) | ||||
Purchase of Company common stock | $ (34,929) | $ (34,929) | ||||
Reissuance of treasury stock (in shares) | 167,396 | 167,000 | 167,000 | |||
Reissuance of treasury stock | $ 3,928 | (2,551) | $ 6,479 | |||
Net issuance of shares for stock plans (in shares) | (11,000) | |||||
Net use of shares for stock plans | 0 | $ 0 | 0 | |||
Repurchase of restricted shares (in shares) | (27,000) | |||||
Repurchase of restricted shares for taxes | (1,972) | (1,972) | ||||
Stock-based compensation | 10,546 | 10,546 | ||||
Dividends on common stock | 0 | |||||
Dividends declared from additional paid-in capital | $ (44,705) | (44,705) | ||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2018 | 17,644,267 | 17,644,000 | ||||
Stockholders' equity, ending of the period at Dec. 31, 2018 | $ (202,273) | $ 250 | 237,726 | 10,414 | (60) | $ (450,603) |
Treasury stock, shares, ending (in shares) at Dec. 31, 2018 | 7,340,631 | 7,341,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 104,346 | 104,346 | ||||
Other comprehensive gain | 2 | 2 | ||||
Purchase of DineEquity common stock (in shares) | (1,348,000) | (1,348,000) | ||||
Purchase of Company common stock | $ (111,697) | $ (111,697) | ||||
Reissuance of treasury stock (in shares) | 285,302 | 285,000 | 285,000 | |||
Reissuance of treasury stock | $ 11,969 | $ (1) | (520) | $ 12,490 | ||
Net issuance of shares for stock plans (in shares) | (30,000) | |||||
Net use of shares for stock plans | 0 | |||||
Repurchase of restricted shares (in shares) | (30,000) | |||||
Repurchase of restricted shares for taxes | (2,728) | (2,728) | ||||
Stock-based compensation | 10,808 | 10,808 | ||||
Dividends on common stock | (47,095) | 982 | (48,077) | |||
Dividends declared from additional paid-in capital | 0 | |||||
Other | $ (76) | (76) | ||||
Common stock, shares, outstanding, ending (in shares) at Dec. 31, 2019 | 16,521,921 | 16,522,000 | ||||
Stockholders' equity, ending of the period at Dec. 31, 2019 | $ (241,774) | $ 249 | $ 246,192 | $ 61,653 | $ (58) | $ (549,810) |
Treasury stock, shares, ending (in shares) at Dec. 31, 2019 | 8,403,526 | 8,404,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income (loss) | $ 104,346 | $ 80,354 | $ (342,750) |
Adjustments to reconcile net income (loss) to cash flows provided by operating activities: | |||
Impairment of goodwill and intangible assets | 0 | 0 | 531,634 |
Depreciation and amortization | 42,493 | 32,175 | 30,648 |
Non-cash stock-based compensation expense | 10,808 | 10,546 | 10,752 |
Non-cash interest expense | 3,369 | 3,792 | 3,364 |
Loss on extinguishment of debt | 8,276 | 0 | 0 |
Closure and impairment charges | 1,485 | 2,038 | 3,834 |
Deferred income taxes | (5,494) | (11,847) | (136,127) |
Deferred revenue | (7,695) | (5,577) | 0 |
Gain on disposition of assets | (332) | (623) | (6,285) |
Other | (5,374) | (949) | (10,980) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (396) | 3,149 | (8,430) |
Current income tax receivables and payables | 8,677 | 8,119 | (8,490) |
Gift card receivables and payables | (1,037) | (1,488) | (3,322) |
Other current assets | (498) | 10,425 | (8,247) |
Accounts payable | 583 | (9,940) | 7,208 |
Accrued employee compensation and benefits | (3,575) | 13,183 | (1,126) |
Other current liabilities | (456) | 6,989 | 4,050 |
Cash flows provided by operating activities | 155,180 | 140,346 | 65,733 |
Cash flows from investing activities | |||
Principal receipts from notes, equipment contracts and other long-term receivables | 24,075 | 25,771 | 20,486 |
Proceeds from sale of property and equipment | 2,540 | 655 | 1,100 |
Acquisition of business | 0 | (20,155) | 0 |
Additions to property and equipment | (19,424) | (14,279) | (13,370) |
Additions to long-term receivables | (6,955) | (6,500) | 0 |
Other | (389) | (293) | (541) |
Cash flows (used in) provided by investing activities | (153) | (14,801) | 7,675 |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 1,300,000 | 0 | 0 |
Repayment of long-term debt | (1,283,750) | (13,000) | (3,250) |
Borrowings from revolving credit facilities | 0 | 75,000 | 0 |
Repayments of revolving credit facilities | (25,000) | (50,000) | 0 |
Dividends paid on common stock | (46,859) | (51,125) | (69,790) |
Repurchase of Dine Brands common stock | (109,698) | (33,603) | (10,003) |
Principal payments of finance lease obligations | 13,639 | ||
Principal payments of finance lease obligations | (13,907) | (12,949) | |
Payment of debt issuance costs | (13,150) | (3,633) | 0 |
Proceeds from stock options exercised | 11,969 | 3,928 | 2,635 |
Tax payments for restricted stock upon vesting | (2,728) | (1,972) | (2,396) |
Other | (76) | 0 | 0 |
Cash flows used in financing activities | (182,931) | (88,312) | (95,753) |
Net change in cash, cash equivalents and restricted cash | (27,904) | 37,233 | (22,345) |
Cash, cash equivalents and restricted cash at beginning of year | 200,379 | 163,146 | 185,491 |
Cash, cash equivalents and restricted cash at end of year | 172,475 | 200,379 | 163,146 |
Supplemental disclosures | |||
Interest paid | 66,104 | 66,059 | 67,522 |
Income taxes paid | 44,748 | 34,246 | 59,528 |
Non-cash conversion of accounts receivable to notes receivable | $ 185 | $ 11,959 | $ 5,286 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company The first International House of Pancakes ® (“IHOP”) restaurant opened in 1958 in Toluca Lake, California. Shortly thereafter, the Company began developing and franchising additional restaurants. The Company was incorporated as IHOP Corp. under the laws of the State of Delaware in 1976. In November 2007, the Company acquired Applebee's International, Inc., which became a wholly-owned subsidiary of the Company. Effective June 2, 2008, the name of the Company was changed to DineEquity, Inc. and on February 20, 2018, the name of the Company was changed to Dine Brands Global, Inc. SM (“Dine Brands Global”). The Company owns, franchises and operates two restaurant concepts: Applebee's Neighborhood Grill + Bar ® (“Applebee's”), in the bar and grill segment within the casual dining category of the restaurant industry, and IHOP in the family dining category of the restaurant industry. As of December 31, 2019 , there were 1,841 IHOP ® restaurants, of which 1,680 were subject to franchise agreements and 161 were subject to area license agreements. These IHOP restaurants were located in all 50 states of the United States, the District of Columbia, three United States territories and 13 countries outside the United States. As of December 31, 2019 , there were 1,787 Applebee's ® restaurants, of which 1,718 were subject to franchise agreements and 69 were company-operated restaurants. These Applebee's restaurants were located in all 50 states of the United States, two United States territories and 12 countries outside the United States. References herein to Applebee's and IHOP restaurants are to these restaurant concepts, whether operated by franchisees, area licensees or the Company. Retail sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Dine Brands Global, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Fiscal Periods The Company has a 52/53 week fiscal year that ends on the Sunday nearest to December 31 of each year. In a 52-week fiscal year, each fiscal quarter contains 13 weeks, comprised of two, four-week fiscal months followed by a five-week fiscal month. In a 53-week fiscal year, the last month of the fourth fiscal quarter contains six weeks. For convenience, the Company refers to its fiscal years as ending on December 31 and its fiscal quarters as ending on March 31, June 30 and September 30. The 2019 fiscal year ended December 29, 2019 and contained 52 weeks. The 2018 fiscal year ended December 30, 2018 and contained 52 weeks. The 2017 fiscal year ended December 31, 2017 and contained 52 weeks. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires the Company's management to make estimates and assumptions 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 and intangible assets and goodwill; 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. Concentration of Credit Risk The Company's cash, cash equivalents, restricted cash and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are creditworthy. The Company does not believe that it is exposed to any significant credit risk on cash, cash equivalents and restricted cash. At times, cash, cash equivalents and restricted cash balances may be in excess of FDIC insurance limits. Accounts receivable are derived from revenues earned from franchisees and area licensees located primarily in the United States. Financing receivables arise from the financing of restaurant equipment, leases or franchise fees with the Company by IHOP franchisees. The Company is subject to a concentration of credit risk with respect to receivables from franchisees that own a large number of Applebee's or IHOP restaurants. As of December 31, 2019 , there were two franchisees that owned 400 or more restaurants each ( one Applebee's franchisee and one franchisee with cross-brand ownership). These franchisees operated 874 Applebee's and IHOP restaurants in the United States, which comprised 26.4% of the total Applebee's and IHOP franchise and area license restaurants in the United States. Revenues from these franchisees represented 17.4% , 19.8% , and 19.3% of total consolidated revenue for the years ended December 31, 2019 , 2018 and 2017 , respectively. One franchisee represented 10.6% and 11.9% of total consolidated revenue for the years ended December 31, 2019 and 2018 , respectively. No single franchisee represented more than 10% of total consolidated revenue for the year ended December 31, 2017. Receivables from these franchisees totaled $14.4 million and $17.5 million at December 31, 2019 and 2018 , respectively. Cash and Cash Equivalents The Company considers all highly liquid investment securities with remaining maturities at the date of purchase of three months or less to be cash equivalents. These cash equivalents are stated at cost which approximates market value. Cash held related to IHOP advertising funds and the Company's gift card programs is not considered to be restricted cash as there are no restrictions on the use of these funds. Total cash balances related to the IHOP advertising funds and the Company's gift card programs were $56.6 million and $52.2 million as of December 31, 2019 and 2018 , respectively. Restricted Cash Current Current restricted cash of $40.7 million at December 31, 2019 consisted of $38.4 million of funds required to be held in trust in connection with the Company's securitized debt and $2.3 million of funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. Current restricted cash of $48.5 million at December 31, 2018 primarily consisted of $42.3 million of funds required to be held in trust in connection with the Company's securitized debt and $6.2 million of funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. Non-current Non-current restricted cash of $15.7 million and $14.7 million at December 31, 2019 and 2018 , respectively, represents interest reserves required to be set aside for the duration of the securitized debt. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Properties under finance leases are stated at the present value of the minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or remaining useful lives. Leasehold improvements and properties under finance leases are amortized on a straight-line basis over their estimated useful lives or the lease term, if less. The Company has capitalized certain costs incurred in connection with the development of internal-use software which are included in equipment and fixtures in Note 5 - Property and Equipment, of the Notes to the Consolidated Financial Statements and are amortized over the expected useful life of the asset. The general ranges of depreciable and amortizable lives are as follows: Category Depreciable Life Buildings and improvements 25 to 40 years Leaseholds and improvements Shorter of primary lease term or between three to 40 years Equipment and fixtures Three to five years Internal-use software Three to 10 years Properties under finance leases Primary lease term or remaining primary lease term Long-Lived Assets On a regular basis, the Company assesses whether events or changes in circumstances have occurred that potentially indicate the carrying value of long-lived assets (primarily assets related to property and equipment leased or subleased to franchisees) may not be recoverable. The Company tests impairment using historical cash flows and other relevant facts and circumstances as the primary basis for estimates of future cash flows. The Company considers factors such as the number of years the franchisee's restaurant has been in operation, sales trends, cash flow trends, remaining lease life and other factors which apply on a case-by-case basis. The analysis is performed at the restaurant level for indicators of permanent impairment. Recoverability of the Company's assets is measured by comparing the assets' carrying value to the undiscounted future cash flows expected to be generated over the assets' remaining useful life or remaining lease term, whichever is less. Total expected undiscounted future cash flows that are less than the carrying amount of the assets is an indicator of impairment. If it is decided that there has been an impairment, the carrying amount of the asset is written down to the estimated fair value as determined in accordance with U.S. GAAP governing fair value measurements. The primary method of estimating fair value is based on a discounted cash flow analysis. Any loss resulting from impairment is recognized as a charge against operations. See Note 13 - Closure and Other Impairment Charges, of the Notes to the Consolidated Financial Statements for additional information. Goodwill and Intangible Assets Goodwill is recorded when the aggregate purchase price of an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Intangible assets resulting from an acquisition are accounted for using the purchase method of accounting and are estimated by management based on the fair value of the assets received. The Company's identifiable intangible assets are comprised primarily of the Applebee's tradename and Applebee's franchise agreements. Identifiable intangible assets with finite lives (franchise agreements) are amortized over the period of estimated benefit using the straight-line method and estimated useful lives. Goodwill and intangible assets considered to have an indefinite life (primarily the Applebee's tradename) are not subject to amortization. The determination of indefinite life is subject to reassessment if changes in facts and circumstances indicate the period of benefit has become finite. Goodwill has been allocated to three reporting units. The significant majority of the Company's goodwill resulted from the November 29, 2007 acquisition of Applebee's and was allocated to the Applebee's franchised restaurants unit (“Applebee's franchise unit”). Smaller amounts of goodwill arising from other business combinations have been allocated to the IHOP franchised restaurants unit (“IHOP franchise unit”) and the Applebee's company restaurants unit (“Applebee's company unit”). See Note 6 - Goodwill, of the Notes to the Consolidated Financial Statements for additional information. The Company evaluates the goodwill of the Applebee's franchise and company units and the indefinite-lived Applebee's tradename for impairment as of October 31 of each year. The Company evaluates the goodwill of the IHOP franchise unit for impairment as of December 31 of each year. In addition to the annual evaluation for impairment, goodwill and indefinite-lived intangible assets are evaluated more frequently if the Company believes indicators of impairment exist. When evaluating goodwill and indefinite-lived intangible assets for impairment, under U.S. GAAP, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit or the intangible asset is more-likely-than-not greater than the carrying amount. Such qualitative factors include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance and results of past impairment tests. If, based on a review of the qualitative factors, the Company determines it is more-likely-than-not that the fair value is greater than the carrying value, the Company may bypass a quantitative test for impairment. In performing the quantitative test for impairment of goodwill, the Company primarily uses the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method. Significant assumptions used to determine fair value under the discounted cash flow method include expected future trends in sales, operating expenses, overhead expenses, capital expenditures and changes in working capital, along with an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt. Significant assumptions used to determine fair value under the guideline public company method include the selection of guideline companies and the valuation multiples applied. The Company measures impairment as the excess of a reporting unit's carrying amount over its fair value as determined by the quantitative test described above. In the process of performing its quantitative impairment review of intangible assets considered to have an indefinite life, the Company primarily uses the relief of royalty method under the income approach method of valuation. Significant assumptions used to determine fair value under the relief of royalty method include future trends in sales, a royalty rate and an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt to be applied to the forecast revenue stream. Revenue Recognition The Company's revenues are recorded in four categories: franchise operations, rental operations, financing operations and company restaurant operations. Franchise revenue (which comprises most of the Company's revenues) and revenue from company-operated restaurants are recognized in accordance with Accounting Standards Codification 606 - Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods. The Company's rental and financing revenues are recognized in accordance with other U.S. GAAP accounting standards and are not subject to ASC 606. Franchise Revenue The Company owns and franchises the Applebee’s and IHOP restaurant concepts. The franchise arrangement for both brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. The transaction price in a standard franchise arrangement for both brands primarily consists of (a) initial franchise/development fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required. Additionally, all domestic IHOP franchise agreements require franchisees to purchase proprietary pancake and waffle dry mix from the Company. The Company recognizes the primary components of the transaction price as follows: • Franchise and development fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the restaurant opening date. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time; • The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenue are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either a contract asset (unbilled receivable) or, once billed, accounts receivable, on the balance sheet; • Revenue from the sales of proprietary pancake and waffle dry mix is recognized in the period in which distributors ship the franchisee's order; recognition of revenue results in accounts receivable on the balance sheet. In determining the amount and timing of revenue from contracts with customers, the Company exercises significant judgment with respect to collectibility of the amount; however, the timing of recognition does not require significant judgment as it is based on either the franchise term, the month of sale as reported by the franchisee or the date of product shipment, none of which require estimation. The Company does not incur a significant amount of contract acquisition costs in conducting its franchising activities. The Company believes its franchising arrangements do not contain a significant financing component. Any excess or deficiency of advertising fee revenue compared to advertising expenditures, is recognized in the fourth quarter of the Company's fiscal year. Any excess of revenue over expenditures is recognized only to the extent of previously recognized deficits. When advertising revenues exceed the related advertising expenses and there is no recovery of a previously recognized deficit of advertising revenues, advertising costs are accrued up to the amount of revenues. Company Restaurant Revenue Company restaurant revenue comprises retail sales at company-operated restaurants. Sales by company-operated restaurants are recognized when food and beverage items are sold. Company restaurant sales are reported net of sales taxes collected from guests that are remitted to the appropriate taxing authorities, with no significant judgments required. Rental operations revenue includes revenue from operating leases and interest income from direct financing leases. See Basis of Presentation and Summary of Significant Accounting Policies - Leases. Financing operations revenue consists primarily of interest income from the financing of franchise fees and equipment leases, other notes receivable from franchisees and sales of equipment associated with refranchised IHOP restaurants. The Company administers gift card programs for Applebee's and IHOP. The Company records a liability in the period in which a gift card is sold and recognizes costs associated with its administration of the gift card programs as prepaid assets when the costs are incurred. The liability and prepaid asset recorded on the Company's books are relieved when gift cards are redeemed. If redemption occurs at a franchisee-operated restaurant, the gift card revenue, net of costs, is remitted to the franchisee. The Company receives gift card breakage revenue only from gift cards redeemed at company-operated restaurants. Breakage revenue for gift cards redeemed at company-operated restaurants for the years ended December 31, 2019 , 2018 and 2017 was not material. Allowance for Credit Losses The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses incurred on existing receivables; however, changes in circumstances relating to receivables may result in changes to the allowance in the future. The Company determines the allowance based on historical experience, current payment patterns, future obligations and the Company's assessment of the franchisee's or area licensee's ability to pay outstanding balances. The primary indicator of credit quality is delinquency, which is considered to be a receivable balance greater than 90 days past due. The Company continually reviews the allowance for doubtful accounts. Past due balances and future obligations are reviewed individually for collectability. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. Credit losses historically have been within management's estimates. See Newly Issued Accounting Standards Not Yet Adopted. Leases The Company accounts for its leasing activities in accordance with accounting guidance for leases, as codified in Accounting Standards Topic 842 (“ASC 842”), adopted as of the beginning of its 2019 fiscal year. In adopting ASC 842, the Company utilized expedients that allowed it to retain the classification, as either an operating lease or a finance lease, that was previously determined under prior accounting guidance for leases. See Accounting Standards Adopted Effective January 1, 2019. The Company reassesses this classification upon renewal, extension or the modification of an existing lease agreement. The Company determines the appropriate classification upon entering into a new contract determined to contain a lease. Operating lease assets and liabilities are recognized at the lease commencement date, or were recognized upon adoption of ASC 842. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the Company's right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. The Company's lease agreements generally do not provide information to determine the implicit interest rate in the agreements. This requires the Company to make significant judgments in determining the incremental borrowing rate to be used in calculating operating lease liabilities as of the adoption or commencement date. The Company estimates the incremental borrowing rate primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption or commencement date; and (iii) adjustments for differences between these rates and the lease term. The cost of an operating lease is recognized over the lease term on a straight-line basis. The lease term commences on the date the Company has the right to control the use of the leased property. Certain leases may contain provisions for rent holidays and fixed-step escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and fixed-step escalations are reflected in rent expense on a straight-line basis over the expected lease term. Differences between amounts paid and amounts expensed are recorded as deferred rent. Certain leases may include rent escalations based on inflation indexes and fair market value adjustments. Certain leases may contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales. Subsequent escalations subject to such an index and contingent rental payments are recognized as variable lease expense. The rental payments or receipts on those property leases that meet the finance lease criteria result in the recognition of interest expense or interest income and a reduction of finance lease obligation or financing lease receivable, respectively. Finance lease obligations are amortized based on the Company's incremental borrowing rate and direct financing leases are amortized using the implicit interest rate. Pre-opening Expenses Expenditures related to the opening of new or relocated restaurants are charged to expense when incurred. Advertising Advertising fees included as franchise revenue for the years ended December 31, 2019 , 2018 and 2017 were $283.0 million , $268.3 million and $234.2 million , respectively. Advertising expense reflected in the Consolidated Statements of Comprehensive Income (Loss) includes local marketing advertising costs incurred by company-operated restaurants, contributions to the national advertising fund made by Applebee's and IHOP and certain advertising costs incurred by the Company to benefit future franchise operations. Costs of advertising are typically expensed either as incurred or the first time the advertising takes place. Advertising expense included in company restaurant operations for the years ended December 31, 2019 , 2018 and 2017 was $6.1 million , $0.3 million , and $0.3 million, respectively. Fair Value Measurements The Company determines the fair market values of its financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis, based on the fair value hierarchy established in U.S. GAAP. As necessary, the Company measures its financial assets and liabilities using inputs from the following three levels of the fair value hierarchy: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 inputs are unobservable and reflect the Company's own assumptions. The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. None of the Company's non-financial assets or non-financial liabilities is required to be measured at fair value on a recurring basis. Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include items such as property and equipment, operating lease assets, goodwill and other intangible assets, which are measured at fair value if determined to be impaired. The Company has not elected to use fair value measurement for any assets or liabilities for which fair value measurement is not presently required. The Company believes the fair values of cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. The fair values of non-current financial instruments, determined based on Level 2 inputs, are shown in the following table: December 31, 2019 December 31, 2018 (In millions) Face value of Long-term debt $ 1,300.0 $ 1,283.8 Fair value of Long-term debt $ 1,326.3 $ 1,280.9 Income Taxes The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records estimated tax liabilities to the extent the contingencies are probable and can be reasonably estimated. The Company recognizes interest accrued related to unrecognizable tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss). The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on its technical merits, including all appeals or litigation processes. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. For each reporting period, management applies a consistent methodology to measure and adjust all uncertain tax positions based on the available information. Stock-Based Compensation Members of the Board of Directors and certain employees are eligible to receive stock options, restricted stock, restricted stock units and performance units pursuant to the Dine Brands Global, Inc. 2019 Stock Incentive Plan. Shares of unvested restricted stock are subject to restrictions on transfer and forfeiture under certain circumstances. The holder of unvested restricted stock has the right to vote and receive regular cash dividends with respect to the shares of unvested restricted stock. The Company accounts for all stock-based payments to employees and non-employee directors, including grants of stock options, restricted stock, restricted stock units and performance units to be recognized in the financial statements, based on their respective grant date fair values. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods. The grant date fair value of restricted stock and stock-settled restricted stock units is determined based on the Company's stock price on the grant date. The Company estimates the grant date fair value of stock option awards using the Black-Scholes option pricing model, which considers, among other factors, a risk-free interest rate, the expected life of the award and the historical volatility of the Company's stock price. The Company estimates the grant date fair value of awards with performance-based market conditions using a Monte Carlo simulation method which considers, among other factors, the performance-based market condition, a risk-free interest rate, the expected life of the award and the historical volatility of the Company's stock price. Awards of cash-settled restricted stock units are classified as liabilities with the liability and compensation expense related to cash-settled awards adjusted to fair value at each balance sheet date. Net Income (Loss) Per Share Net income (loss) per share is calculated using the two-class method prescribed in U.S. GAAP. Basic net income (loss) per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares and potential shares of common stock outstanding during the period if their effect is dilutive. The Company uses the treasury stock method to calculate the weighted average shares used in the diluted earnings per share calculation. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock. Other Comprehensive Income (Loss) For the years ended December 31, 2019 , 2018 and 2017 , the income tax benefit or provision allocated to items of other comprehensive income (loss) was not significant. Treasury Stock The Company may from time to time utilize treasury stock when vested 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 method. Dividends Dividends declared on common stock are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends declared in excess of retained earnings are recorded as a reduction of additional paid-in capital. Reporting Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company has five operating segments: Applebee's franchise operations, IHOP franchise operations, rental operations, financing operations and company-operated restaurant operations. The Company has four reporting segments: franchise operations, (an aggregation of Applebee's and IHOP franchise operations), rental operations, financing operations and company-operated restaurant operations. The Company considers these to be its reportable segments, regardless of whether any segment exceeds 10% of consolidated revenues, income before income tax provision or total assets. Franchise Segment As of December 31, 2019 , the franchise operations reportable segment consisted of 1,718 restaurants operated by Applebee's franchisees in the United States, two United States territories and 12 countries outside the United States and 1,841 restaurants operated by IHOP franchisees and area licensees in the United States, three United States territories and 13 countries outside the United States. Franchise operations revenue consists primarily of royalties and advertising fees based on a percentage of the franchisee's gross sales, sales of proprietary products (primarily IHOP pancake and waffle dry mixes) and other franchise fees. Franchise operations expenses include advertising expense, the cost of proprietary products, pre-opening training expenses and other franchise-related costs. Rental Segment 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 of finance leases on franchisee-operated restau |
Revenue Disclosures
Revenue Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | Revenue Disclosures The following table disaggregates our franchise revenue by major type for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (In thousands) Franchise Revenue: Royalties $ 302,169 $ 311,568 $ 297,817 Advertising fees 283,015 268,294 234,165 Pancake and waffle dry mix sales and other 53,973 52,108 50,538 Franchise and development fees 12,029 11,964 11,898 Total franchise revenue $ 651,186 $ 643,934 $ 594,418 Accounts and other receivables from franchisees as of December 31, 2019 and 2018 were $63.5 million (net of allowance of $0.7 million ) and $62.6 million (net of allowance of $4.6 million ), respectively, and were included in receivables, net in the Consolidated Balance Sheets. Changes in the Company's contract liability for deferred franchise revenue during the year ended December 31, 2019 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2018 $ 74,695 Recognized as revenue during the year ended December 31, 2019 (11,350 ) Fees deferred during the year ended December 31, 2019 3,685 Balance at December 31, 2019 $ 67,030 The balance of deferred franchise revenue as of December 31, 2019 is expected to be recognized as follows: (In thousands) 2020 $ 10,086 2021 7,862 2022 7,337 2023 6,765 2024 6,074 Thereafter 28,906 Total $ 67,030 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Receivables | 4. Receivables 2019 2018 (In millions) Accounts receivable $ 60.8 $ 63.0 Gift card receivables 46.7 47.9 Notes receivable 28.9 28.9 Financing receivables: Equipment leases receivable 56.3 65.8 Direct financing leases receivable 34.0 44.9 Franchise fee notes receivable 0.2 0.2 Other 7.3 7.1 234.2 257.8 Less: allowance for doubtful accounts and notes receivable (11.3 ) (17.2 ) 222.9 240.6 Less: current portion (136.9 ) (137.5 ) Long-term receivables $ 86.0 $ 103.1 Accounts receivable primarily includes receivables due from franchisees and distributors. Gift card receivables consist primarily of amounts due from third-party vendors. Interest is not charged on gift card receivables. Notes receivable primarily relate to the conversion of certain franchisee accounts receivable to notes receivable, cash loans made to franchisees and a note receivable in connection with the sale of IHOP restaurants (See Note 20 - Refranchising of Company-operated Restaurants, of the Notes to Consolidated Financial Statements). The notes have a term from two to ten years , bear interest averaging 5.1% and 4.8% per annum at December 31, 2019 and 2018 , respectively, and are collateralized by the franchise. Financing receivables primarily relate to IHOP franchise development activity prior to 2003 when IHOP typically leased or purchased the restaurant site, built and equipped the restaurant then franchised the restaurant to a franchisee. IHOP provided the financing for the franchise fee, leasing of the equipment and the leasing or subleasing of the site. Equipment lease contracts are due in equal weekly installments, primarily bear interest averaging 9.9% and 9.9% per annum at December 31, 2019 and 2018 , respectively, and are collateralized by the equipment. The term of an equipment lease contract coincides with the term of the corresponding restaurant building lease. The IHOP franchise fee notes have a term of five to eight years and are due in equal weekly installments, primarily bear interest averaging 5.0% and 5.6% per annum at December 31, 2019 and 2018 , respectively, and are collateralized by the franchise. Where applicable, franchise fee notes, equipment contracts and building leases contain cross-default provisions wherein a default under one constitutes a default under all. There is not a disproportionate concentration of credit risk in any geographic area. The primary indicator of the credit quality of financing receivables is delinquency. As of December 31, 2019 and 2018 , approximately less than $0.1 million an d $0.1 million , respectively, of financing receivables were delinquent more than 90 days. The following table summarizes the activity in the allowance for doubtful accounts and notes receivable: Allowance for Doubtful Accounts (In millions) Balance at December 31, 2016 $ 3.1 Provision 20.3 Charge-offs (1.2 ) Balance at December 31, 2017 22.2 Provision 10.3 Charge-offs (15.3 ) Balance at December 31, 2018 17.2 Provision (0.4 ) Charge-offs (5.0 ) Recoveries (0.5 ) Balance at December 31, 2019 $ 11.3 As of December 31, 2019 and 2018 , approximately less than $0.1 million and $0.1 million , respectively, of the allowance for doubtful accounts related to financing receivables. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment by category is as follows: 2019 2018 (In millions) Leaseholds and improvements $ 235.4 $ 255.7 Equipment and fixtures 95.4 90.1 Properties under finance lease 100.5 100.3 Buildings and improvements 56.6 57.9 Land 55.9 56.4 Construction in progress 4.7 3.7 Property and equipment, gross 548.5 564.1 Less: accumulated depreciation and amortization (332.1 ) (323.8 ) Property and equipment, net $ 216.4 $ 240.3 The Company recorded depreciation expense on property and equipment of $30.8 million , $22.1 million and $20.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Accumulated depreciation and amortization includes accumulated amortization for properties under finance lease in the amount of $51.1 million and $46.2 million at December 31, 2019 and 2018 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The significant majority of the Company's goodwill arose from the November 29, 2007 acquisition of Applebee's. Changes in the carrying amount of goodwill for the years ended December 31, 2019 , 2018 and 2017 are as follows: Applebee's Franchise Unit Applebee's Company Unit IHOP Franchise Unit Total (In millions) Balance at December 31, 2016 $ 686.6 $ — $ 10.8 $ 697.4 Impairment (358.2 ) — — (358.2 ) Balance at December 31, 2017 328.4 — 10.8 339.2 Business acquisition — 6.1 — 6.1 Balance at December 31, 2018 328.4 6.1 10.8 345.3 Purchase price adjustment related to business acquisition — (1.5 ) — (1.5 ) Balance at December 31, 2019 $ 328.4 $ 4.6 $ 10.8 $ 343.9 Gross and net carrying amounts of goodwill at December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (In millions) Applebee's Franchise Unit $ 686.6 $ (358.2 ) $ 328.4 $ 686.6 $ (358.2 ) $ 328.4 Applebee's Company Unit 4.6 — 4.6 6.1 — 6.1 IHOP Franchise Unit 10.8 — 10.8 10.8 — 10.8 Total $ 702.1 $ (358.2 ) $ 343.9 $ 703.5 $ (358.2 ) $ 345.3 In December 2018, the Company acquired 69 Applebee's restaurants. The Company provisionally allocated $6.1 million of resulting goodwill to the Applebee's Company Unit as of December 31, 2018. Upon completion of the purchase price allocation during 2019, the Company revised the goodwill allocated to the Applebee's Company Unit downwards to $4.6 million, the balance at December 31, 2019. See Note 18 - Acquisition of Business, of the Notes to the Consolidated Financial Statements. The Company assesses goodwill for impairment in accordance with its policy described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies. In the fourth quarters of fiscal 2019 and 2018, the Company performed qualitative assessments of the goodwill of the Applebee's franchise unit and the IHOP franchise unit and concluded it was more-likely-than-not that the fair values exceeded the respective carrying amounts. In performing that analysis the Company considered, among other things, Applebee's key performance indicators during 2019 and 2018 and what, if any, impact that performance had on the long-term forecast of future trends in sales, operating expenses, overhead expenses, depreciation, capital expenditures and changes in working capital that had been used in performing a quantitative impairment test in the third quarter of 2017. The Company also considered the current market price of its common stock, the favorable impact of the Tax Cuts and Jobs Act (the “Tax Act”) on future cash flows and the impact these changes would have on an appropriate discount rate. As result of the qualitative test, the Company concluded it was not more likely than not that the fair value of the Applebee's franchise reporting unit is less than its carrying amount and therefore, a quantitative test of impairment was not necessary. In the third quarter of 2017, the Company noted that the decline in the market price of the Company's common stock since December 31, 2016, which the Company had believed to be temporary, persisted throughout the first eight months of 2017 and that the favorable trend in Applebee's domestic same-restaurant sales experienced in the second quarter of 2017 did not continue into the first two months of the third quarter of 2017. The Company also noted a continuing increase in Applebee's bad debt expense and in royalties not recognized in income until paid in cash. Additionally, the Company also determined an increasing shortfall in franchisee contributions to the Applebee's national advertising fund could require a larger amount of future subsidization in the form of additional franchisor contributions to the fund than previously estimated. Based on these unfavorable developments, the Company determined that indicators of impairment existed and that an interim quantitative test of goodwill for impairment should be performed in the third quarter of 2017. In performing the quantitative test of goodwill, the Company primarily used the income approach method of valuation that included the discounted cash flow method and the market approach that included the guideline public company method to determine the fair value of goodwill and intangible assets. Significant assumptions used to determine fair value under the discounted cash flow model included expected future trends in sales, operating expenses, overhead expenses, capital expenditures and changes in working capital, along with an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt. As a result of performing the quantitative test of impairment, the Company recognized an impairment of Applebee's goodwill of $358.2 million in 2017. The Company adopted the guidance in FASB Accounting Standards Update 2017-04 on January 1, 2017; accordingly, the amount of the goodwill impairment was determined as the amount by which the carrying amount of the goodwill exceeded the fair value of the Applebee's franchise reporting unit as estimated in the impairment test. The impairment of goodwill is not deductible for federal income tax purposes and therefore had no associated tax benefit. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Other Intangible Assets | Other Intangible Assets The significant majority of the Company's other intangible assets arose from the November 29, 2007 acquisition of Applebee's. Changes in the carrying amount of intangible assets for the years ended December 31, 2019 , 2018 and 2017 are as follows: Not Subject to Amortization Subject to Amortization Tradename Other Franchising Rights Reacquired Franchise Rights Leaseholds Total (In millions) Balance at December 31, 2016 $ 652.4 $ 2.0 $ 109.0 $ — $ — $ 763.4 Impairment (173.4 ) — — — — (173.4 ) Amortization expense — — (10.0 ) — — (10.0 ) Additions — 0.4 — — 2.4 2.8 Balance at December 31, 2017 479.0 2.4 99.0 — 2.4 582.8 Amortization expense — — (10.0 ) (0.1 ) (0.0 ) (10.1 ) Additions — 0.3 — 11.6 1.3 13.2 Balance at December 31, 2018 479.0 2.7 89.0 11.5 3.7 585.9 Amortization expense — — (10.0 ) (1.7 ) (0.1 ) (11.8 ) Additions — 0.5 — — 0.5 1.0 Balance at December 31, 2019 $ 479.0 $ 3.2 $ 79.0 $ 9.8 $ 4.1 $ 575.1 In December 2018, the Company acquired 69 Applebee's restaurants. The Company completed the purchase price allocation as described in Note 18 - Acquisition of Business, of Notes to the Consolidated Financial Statements and recorded $11.6 million of reacquired franchise rights as an intangible asset. In June 2017, the Company refranchised nine IHOP restaurants. As discussed in Note 20 - Refranchising of Company-operated Restaurants, of Notes to the Consolidated Financial Statements, the Company recorded a net intangible asset $2.4 million for below-market leases. Annual amortization expense for the next five fiscal years is estimated to be approximately $11.0 million per year. The weighted average life of the intangible assets subject to amortization was 18.5 years and 20 years at December 31, 2019 and 2018 , respectively. Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (In millions) Franchising rights $ 200.0 $ (121.0 ) $ 79.0 $ 200.0 $ (111.0 ) $ 89.0 Reacquired Franchise Rights 11.6 (1.8 ) 9.8 11.6 (0.1 ) 11.5 Leaseholds 4.2 (0.1 ) 4.1 $ 3.7 (0.0 ) 3.7 Total $ 215.8 $ (122.9 ) $ 92.9 $ 215.3 $ (111.1 ) $ 104.2 The Company assessed the Applebee's tradename for impairment in accordance with its policy described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies. In the fourth quarter of fiscal 2019 and 2018, the Company performed a qualitative assessment of the Applebee's tradename and concluded the fair value exceeded the carrying amount. As discussed in Note 6 - Goodwill, the Company determined that indicators of impairment existed prior to the annual test for impairment and performed an interim quantitative test for impairment of Applebee's tradename in the third quarter of 2017. In performing the impairment test of the tradename, the Company used the relief of royalty method under the income approach method of valuation. Significant assumptions used to determine fair value under the relief of royalty method include future trends in sales, a royalty rate and a discount rate applied to the forecast revenue stream. As a result of performing this quantitative test, the Company recognized an impairment of Applebee's tradename of $173.4 million in 2017. The Company recognized a tax benefit of $65.1 million |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following components: 2019 2018 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 700.0 $ — Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 600.0 — Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 — 1,283.8 Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 — 25.0 Class A-2-I and A-2-II (2019) and Class A-2 (2018) Note debt issuance costs (11.8 ) (9.7 ) Long-term debt, net of debt issuance costs 1,288.2 1,299.1 Current portion of long-term debt — (25.0 ) Long-term debt $ 1,288.2 $ 1,274.1 Long-Term Debt On June 5, 2019, Applebee’s Funding LLC and IHOP Funding LLC (the “Co-Issuers”), each a special purpose, wholly-owned indirect subsidiary of the Company, issued two tranches of fixed rate senior secured notes, the Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I (“Class A-2-I Notes”) in an initial aggregate principal amount of $700 million and the Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II (“Class A-2-II Notes”) in an initial aggregate principal amount of $600 million (the “Class A-2-II Notes” and, together with the Class A-2-I Notes, the “2019 Class A-2 Notes”). The 2019 Class A-2 Notes were issued pursuant to an offering exempt from registration under the Securities Act of 1933, as amended. The Co-Issuers also replaced their existing revolving financing facility, the 2018-1 Variable Funding Senior Notes, Class A-1 (“2018 Class A-1 Notes”), with a new revolving financing facility, the 2019-1 Variable Funding Senior Notes, Class A-1 (the “2019 Class A-1 Notes”), on substantially the same terms as the 2018 Class A-1 Notes in order to conform the term of the 2019 Class A-1 Notes to the anticipated repayment dates for the 2019 Class A-2 Notes. The 2019 Class A-1 Notes and the 2019 Class A-2 Notes are referred to collectively herein as the “New Notes.” The New Notes were issued in a securitization transaction pursuant to which substantially all of the domestic revenue-generating assets and domestic intellectual property, as further described below, held by the Co-Issuers and certain other special-purpose, wholly-owned indirect subsidiaries of the Company (the “Guarantors”) were pledged as collateral to secure the New Notes. The Company used the majority of the net proceeds of the offering to repay the entire outstanding balance of approximately $1.28 billion of the Series 2014-1 4.277% Fixed Rate Senior Notes, Class A-2 (the “2014 Class A-2 Notes”). The Company used the remaining proceeds of the offering to pay for transactions costs associated with the securitization refinancing transaction and for general corporate purposes. 2019 Class A-2 Notes The New Notes were issued under a Base Indenture, dated as of September 30, 2014, amended and restated as of June 5, 2019 (the “Base Indenture”), and the related Series 2019-1 Supplement to the Base Indenture, dated June 5, 2019 (the “Series 2019-1 Supplement”), among the Co-Issuers and Citibank, N.A., as the trustee (in such capacity, the “Trustee”) and securities intermediary. The Base Indenture and the Series 2019-1 Supplement (collectively, the “Indenture”) will allow the Co-Issuers to issue additional series of notes in the future subject to certain conditions set forth therein. While the 2019 Class A-2 Notes are outstanding, payment of principal and interest is required to be made on the Class A-2 Notes on a quarterly basis. The payment of principal on the 2019 Class A-2 Notes may be suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25 x. Exceeding the leverage ratio of 5.25 x does not violate any covenant related to the New Notes. The Company's leverage ratio did not exceed 5.25 x at any quarterly payment date during 2019; accordingly, the Company was not required to make a principal payment on either the 2019 Class A-2 Notes or the 2014 Class A-2 Notes during the year ended December 31, 2019. As of December 31, 2019, the Company's leverage ratio was 4.57 x. The Company may voluntarily repay the New Notes at any time; however, if the Company repays the New Notes prior to certain dates, it would be required to pay make-whole premiums. As of December 31, 2019, the make-whole premium associated with voluntary prepayment of the Class A-2-I Notes was approximately $35 million ; this amount declines progressively each quarter to zero in June 2022. As of December 31, 2019, the make-whole premium associated with voluntary prepayment of the Class A-2-II Notes was approximately $63 million ; this amount declines progressively each quarter to zero in June 2024. The Company would also be subject to a make-whole premium in the event of a mandatory prepayment required following a Rapid Amortization Event or certain asset dispositions. The mandatory make-whole premium requirements are considered derivatives embedded in the New Notes that must be bifurcated for separate valuation. The Company estimated the fair value of these derivatives to be immaterial as of December 31, 2019, based on the probability-weighted discounted cash flows associated with either event. The legal final maturity of the 2019 Class A-2 Notes is in June 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the Class A-2-I Notes will be repaid in June 2024 (the “Class A-2-I Anticipated Repayment Date”) and the Class A-2-II Notes will be repaid in June 2026 (the “Class A-2-II Anticipated Repayment Date”). If the Co-Issuers have not repaid or refinanced the Class A-2-I Notes by the Class A-2-I Anticipated Repayment Date or the Class A-2-II Notes by the Class A-2-II Anticipated Repayment Date, then additional interest will accrue on the Class A-2-I Notes and the Class A-2-II Notes, as applicable, at the greater of: (A) 5.0% and (B) the amount, if any, by which the sum of the following exceeds the applicable Class A-2 Note interest rate: (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on the applicable anticipated repayment date of the United States Treasury Security having a term closest to 10 years plus (y) 5.0% , plus (z) 2.15% for the Class A-2-I Notes and 2.64% for the Class A-2-II Notes. 2019 Class A-1 Notes The Co-Issuers also entered into a revolving financing facility, the 2019 Class A-1 Notes, that allows for drawings up to $225 million of variable funding notes and the issuance of letters of credit. The 2019 Class A-1 Notes were issued under the Indenture. Drawings and certain additional terms related to the 2019 Class A-1 Notes are governed by the 2019 Class A-1 Note Purchase Agreement, dated June 5, 2019, among the Co-Issuers, certain special-purpose, wholly-owned indirect subsidiaries of the Company, each as a Guarantor, the Company, as manager, certain conduit investors, financial institutions and funding agents, and Barclays Bank PLC, as provider of letters of credit, swingline lender and administrative agent (the “Purchase Agreement”). The 2019 Class A-1 Notes will be governed, in part, by the Purchase Agreement and by certain generally applicable terms contained in the Indenture. The applicable interest rate under the 2019 Class A-1 Notes depends on the type of borrowing by the Co-Issuers. The applicable interest rate for advances is generally calculated at a per annum rate equal to the commercial paper funding rate or one-, two-, three- or six-month Eurodollar Funding Rate, in either case, plus 2.15% . The applicable interest rate for swingline advances and unreimbursed draws on outstanding letters of credit is a per annum base rate equal to the sum of (a) 1.15% plus (b) the greatest of (i) the Prime Rate in effect from time to time, (ii) the Federal Funds Rate in effect from time to time plus 0.50% and (iii) the one-month Eurodollar Funding Rate plus 1.00% . There is no upfront fee for the 2019 Class A-1 Notes. There is a fee of 50 basis points on any unused portion of the 2019 Class A-1 Notes facility. Undrawn face amounts of outstanding letters of credit that are not cash collateralized accrue a fee of 2.15% per annum. It is anticipated that the principal and interest on the 2019 Class A-1 Notes will be repaid in full on or prior to the quarterly payment date in June 2024 (the “2019 Class A-1 Anticipated Repayment Date”), subject to two additional one-year extensions at the option of the Company upon the satisfaction of certain conditions. Guarantee and Collateral Agreement Under the Guarantee and Collateral Agreement, dated September 30, 2014, as amended and restated as of June 5, 2019, among the Guarantors in favor of the Trustee, the Guarantors guarantee the obligations of the Co-Issuers under the Indenture and related documents and secure the guarantee by granting a security interest in substantially all of their assets. The New Notes are secured by a security interest in substantially all of the assets of the Co-Issuers and the Guarantors (collectively, the “Securitization Entities”). On the Closing Date, these assets (the “Securitized Assets”) generally included substantially all of the domestic revenue-generating assets of the Company and its subsidiaries, which principally consist of franchise agreements, area license agreements, development agreements, franchisee fee notes, equipment leases, agreements related to the domestic production of and the sale of pancake and waffle dry-mixes, owned and leased real property and intellectual property. The New Notes are the obligations only of the Co-Issuers pursuant to the Indenture and are unconditionally and irrevocably guaranteed by the Guarantors pursuant to the Guarantee and Collateral Agreement. Except as described below, neither the Company nor any subsidiary of the Company, other than the Securitization Entities, will guarantee or in any way be liable for the obligations of the Co-Issuers under the Indenture or the New Notes. Management Agreement Under the terms of the Management Agreement, dated September 30, 2014, as amended and restated as of September 5, 2018, as further amended and restated as of June 5, 2019 and as amended by that certain Amendment No. 1 to Management Agreement dated November 21, 2019, among the Company, the Securitization Entities, Applebee’s Services, Inc., International House of Pancakes, LLC and the Trustee, the Company will act as the manager with respect to the Securitized Assets. The primary responsibilities of the manager will be to perform certain franchising, distribution, intellectual property and operational functions on behalf of the Securitization Entities with respect to the Securitized Assets pursuant to the Management Agreement. The manager will be entitled to the payment of the weekly management fee, as set forth in the Management Agreement and will be subject to the liabilities set forth in the Management Agreement. The manager will manage and administer the Securitized Assets in accordance with the terms of the Management Agreement and, except as otherwise provided in the Management Agreement, the management standards set forth in the Management Agreement. Subject to limited exceptions set forth in the Management Agreement, the Management Agreement does not require the manager to expend or risk its funds or otherwise incur any financial liability in the performance of any of its rights or powers under the Management Agreement if the manager has reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not compensated by payment of the weekly management fee or is otherwise not reasonably assured or provided to it. Subject to limited exceptions set forth in the Management Agreement, the manager will indemnify each Securitization Entity, the Trustee and certain other parties, and their respective officers, directors, employees and agents for all claims, penalties, fines, forfeitures, losses, liabilities, obligations, damages, actions, suits and related costs and judgments and other costs, fees and reasonable expenses that any of them may incur as a result of (a) failure of the manager to perform or observe its obligations under the Management Agreement, (b) the breach by the manager of any representation, warranty or covenant under the Management Agreement, or (c) the manager’s negligence, bad faith or willful misconduct in the performance of its duties under the Management Agreement. Covenants and Restrictions The New Notes are subject to a series of covenants and restrictions customary for transactions of this type, including: (i) that the Co-Issuers maintain specified reserve accounts to be used to make required payments in respect of the New Notes, (ii) provisions relating to optional and mandatory prepayments, and the related payment of specified amounts, including specified call redemption premiums in the case of Class A-2 Notes under certain circumstances; (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the New Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The New Notes are subject to customary rapid amortization events provided for in the Indenture, including events tied to failure of the Securitization Entities to maintain the stated debt service coverage ratio (“DSCR”), the sum of domestic retail sales for all restaurants being below certain levels on certain measurement dates, certain manager termination events, certain events of default and the failure to repay or refinance the Class A-2 Notes on the anticipated repayment dates. The New Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal or other amounts due on or with respect to the New Notes, failure of the Securitization Entities to maintain the stated DSCR, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties and certain judgments. Failure to maintain a prescribed DSCR can trigger a Cash Flow Sweeping Event, A Rapid Amortization Event, a Manager Termination Event or a Default Event as described below. In a Cash Flow Sweeping Event, the Trustee is required to retain 50% of excess Cash Flow (as defined in the New Notes) in a restricted account. In a Rapid Amortization Event, all excess Cash Flow is retained and used to retire principal amounts of debt. Key DSCRs are as follows: • DSCR less than 1.75 x - Cash Flow Sweeping Event • DSCR less than 1.20 x - Rapid Amortization Event • Interest-only DSCR less than 1.20 x - Manager Termination Event • Interest-only DSCR less than 1.10 x - Default Event The Company's DSCR for the reporting period ended December 31, 2019 was 4.27x. Use of Credit Facilities The Company has not drawn on the 2019 Class A-1 Notes subsequent to their June 5, 2019, issuance. At December 31, 2019, $2.8 million was pledged against the 2019 Class A-1 Notes for outstanding letters of credit, leaving $222.2 million of 2019 Class A-1 Notes available for borrowing. The letters of credit are used primarily to satisfy insurance-related collateral requirements. During the year ended December 31, 2019, the Company repaid $25.0 million of 2018 Class A-1 Notes, representing the amount outstanding at December 31, 2018; the Company did not draw on the 2018 Class A-1 Notes during 2019 prior to their replacement on June 5, 2019. The maximum amount of 2018 Class A-1 Notes outstanding during the period from January 1, 2019 to June 5, 2019 was $25.0 million and the weighted average interest rate on the 2018 Class A-1 Note for the period outstanding was 4.88% . Loss on Extinguishment of Debt In connection with the repayment of the 2014 Class A-2 Notes, the Company recognized a loss on extinguishment of debt of $8.3 million , representing the remaining unamortized costs related to the 2014 Class A-2 Notes. Prior to the extinguishment on June 5, 2019, amortization costs of $1.4 million , $3.4 million and $3.4 million associated with the 2014 Class A-2 Notes was included in interest expense for the years ended December 31, 2019 , 2018 and 2017 respectively. Debt Issuance Costs The Company incurred costs of approximately $12.9 million in connection with the issuance of the 2019 Class A-2 Notes. These debt issuance costs are being amortized using the effective interest method over estimated life of each tranche of the 2019 Class A-2 Notes. Amortization costs of $1.2 million were included in interest expense for the year ended December 31, 2019. Unamortized debt issuance costs of $11.8 million are reported as a direct reduction of the Class A-2 Notes in the Consolidated Balance Sheets. The Company incurred costs of approximately $0.2 million in connection with the replacement of the 2018-1 Class A-1 Notes with the 2019 Class A-1 Notes. These debt issuance costs have been added to the remaining unamortized costs of approximately $2.8 million related to the 2018 Class A-1 Notes, the total of which costs is now being amortized using the effective interest method over the estimated five-year life of the 2019 Class A-1 Notes. Amortization costs of $0.8 million were included in interest expense for the year ended December 31, 2019. Unamortized debt issuance costs of $2.7 million related to the 2019-1 Class A-1 Notes are reported as other long-term assets in the Consolidated Balance Sheets at December 31, 2019. Debt Refinancing Costs In connection with the termination of the 2014 Purchase Agreement, the Company recognized as expense $0.9 million of unamortized debt issuance costs associated with the 2014 Variable Funding Notes during the year ended December 31, 2018. In addition, the Company incurred costs of $1.6 million associated with the evaluation of various alternatives for refinancing our securitized indebtedness that were also charged to expense during the year ended December 31, 2018. These costs totaling $2.5 million are reported as “Debt refinancing costs” in the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2018. Maturities of Long-term Debt Face-value maturities of long-term debt for each of the next five years, assuming the Company's leverage ratio remains less than 5.25x, are as follows: (In millions) 2020 $ — 2021 — 2022 — 2023 — 2024 700.0 Thereafter 600.0 Total $ 1,300.0 |
Financing Obligations
Financing Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Financing Obligations | Financing Obligations On May 19, 2008, the Company entered into a Purchase and Sale Agreement relating to the sale and leaseback of 181 parcels of real property (the “Sale-Leaseback Transaction”), each of which is improved with a restaurant operating as an Applebee's Neighborhood Grill and Bar (the “Properties”). On June 13, 2008, the closing date of the Sale-Leaseback Transaction, the Company entered into a Master Land and Building Lease (“Master Lease”) for the Properties. The proceeds received from the transaction were $337.2 million . The Master Lease calls for an initial term of twenty years and four , five -year options to extend the term. The Sale-Leaseback Transaction does not qualify as a sale under current U.S. GAAP. Accordingly, the Sale-Leaseback Transaction continues to be recorded under the financing method. The value of the land and leasehold improvements will remain on the Company's books and the leasehold improvements will continue to be depreciated over their remaining useful lives. The net proceeds received were recorded as a financing obligation. A portion of the lease payments is recorded as a decrease to the financing obligation and a portion is recognized as interest expense. In the event the lease obligation of any individual property or group of properties is assumed by a qualified franchisee, the portion of the transaction related to that property or group of properties is recorded as a sale in accordance with U.S. GAAP and the net book value of those properties will be removed from the Company's books, along with a ratable portion of the remaining financing obligation. As of December 31, 2019 , the portion of the original Sale-Leaseback Transaction related to 155 of the 181 Properties has qualified as a sale by assignment of the lease obligation to a qualified franchisee or a release from the lessor. In accordance with the accounting described above, the property and equipment and financing obligations have each been cumulatively reduced by approximately $280.0 million . As of December 31, 2019 , future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows: Fiscal Years (In millions) 2020 (1) $ 5.6 2021 5.1 2022 5.1 2023 5.0 2024 (1) 5.7 Thereafter 44.8 Total minimum lease payments 71.3 Less: interest (32.8 ) Total financing obligations 38.5 Less: current portion (2) (0.8 ) Long-term financing obligations $ 37.7 ____________________________________________________________________________________ (1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in 2020 and 2024. (2) Included in current maturities of finance lease and financing obligations on the consolidated balance sheet. |
Lease Disclosures
Lease Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Disclosures | Lease Disclosures The Company engages in leasing activity as both a lessee and a lessor. The majority of the Company's lease portfolio originated when the Company was actively involved in the development and financing of IHOP restaurants prior to the franchising of the restaurant to the franchisee. This activity included the Company's purchase or leasing of the site on which the restaurant was located and subsequently leasing/subleasing the site to the franchisee. With a few exceptions, the Company ended this practice in 2003 and the Company's current lease activity is predominantly comprised of renewals of existing lease arrangements and exercises of options on existing lease arrangements. The Company currently leases from third parties the real property on which approximately 600 IHOP franchisee-operated restaurants and one Applebee's franchisee-operated restaurant are located; the Company (as lessor) subleases the property to the franchisees that operate those restaurants. The Company also leases property it owns to the franchisees that operate approximately 60 IHOP restaurants and one Applebee's restaurant. The Company leases from third parties the real property on which 69 Applebee's company-operated restaurants are located. The Company also leases office space for its principal corporate office in Glendale, California and restaurant support centers in Kansas City, Missouri and Raleigh, North Carolina. The Company does not have a significant amount of non-real estate leases. The Company's existing leases/subleases related to IHOP restaurants generally provide for an initial term of 20 to 25 years, with most having one or more five-year renewal options. Leases related to Applebee's restaurants generally have an initial term of 10 to 20 years, with renewal terms of five to 20 years. Option periods were not included in determining liabilities and right-of-use assets related to operating leases. Approximately 175 of the Company's leases contain provisions requiring additional rent payments to the Company (as lessor) based on a percentage of restaurant sales. Approximately 250 of the Company's leases contain provisions requiring additional rent payments by the Company (as lessee) based on a percentage of restaurant sales. The individual lease agreements do not provide information to determine the implicit interest rate in the agreements. The Company made significant judgments in determining the incremental borrowing rates that were used in calculating operating lease liabilities as of the adoption date. Due to the large number of leases, the Company applied a portfolio approach by grouping the leases based on the original lease term. The Company estimated the interest rate for each grouping primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption date; and (iii) adjustments for differences in years to maturity. The Company's lease cost for the year ended December 31, 2019 was as follows: Year ended December 31, 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 5.3 Interest on lease liabilities 7.7 Operating lease cost 106.2 Variable lease cost 2.7 Short-term lease cost 0.0 Sublease income (110.9 ) Lease cost $ 11.0 Future minimum lease payments under noncancelable leases as lessee as of December 31, 2019 were as follows: Finance Leases Operating Leases (In millions) 2020 $ 19.8 $ 97.4 2021 16.4 81.1 2022 14.7 73.4 2023 11.6 60.6 2024 9.4 54.9 Thereafter 55.7 173.0 Total minimum lease payments 127.6 540.4 Less: interest/imputed interest (37.3 ) (108.6 ) Total obligations 90.3 431.8 Less: current portion (12.9 ) (72.8 ) Long-term lease obligations $ 77.4 $ 359.0 The weighted average remaining lease term as of December 31, 2019 was 8.6 years for finance leases and 7.7 years for operating leases. The weighted average discount rate as of December 31, 2019 was 10.4 % for finance leases and 5.7 % for operating leases. During the year ended December 31, 2019 , the Company made the following cash payments for leases: Year ended December 31, 2019 (In millions) Principal payments on finance lease obligations $ 13.6 Interest payments on finance lease obligations $ 7.7 Payments on operating leases $ 91.9 Variable lease payments $ 2.5 The Company's income from operating leases for the year ended December 31, 2019 was as follows: Year ended December 31, 2019 (In millions) Minimum lease payments $ 102.8 Variable lease income 11.5 Total operating lease income $ 114.3 Future minimum payments to be received as lessor under noncancelable operating leases as of December 31, 2019 were as follows: (In millions) 2020 $ 108.3 2021 102.6 2022 99.6 2023 95.2 2024 86.5 Thereafter 214.5 Total minimum rents receivable $ 706.7 The Company's income from direct financing leases at December 31, 2019 was as follows: Year ended December 31, 2019 (In millions) Interest income $ 5.0 Variable lease income 1.3 Total operating lease income $ 6.3 Future minimum payments to be received as lessor under noncancelable direct financing leases as of December 31, 2019 were as follows: (In millions) 2020 $ 14.6 2021 11.5 2022 8.2 2023 3.6 2024 1.3 Thereafter 2.5 Total minimum rents receivable 41.7 Less: unearned income (7.7 ) Total net investment in direct financing leases 34.0 Less: current portion (11.0 ) Long-term investment in direct financing leases $ 23.0 The following disclosures for the year ended December 31, 2018 were made in accordance with the accounting guidance for leases in effect at that time. The following is the Company's net investment in direct financing lease receivables: December 31, 2018 (In millions) Total minimum rents receivable $ 57.3 Less: unearned income (12.4 ) Net investment in direct financing leases receivable 44.9 Less: current portion (11.2 ) Long-term direct financing leases receivable $ 33.7 Contingent rental income, which is the amount above and beyond base rent, for the years ended December 31, 2018 and 2017 was $14.3 million and $14.0 million , respectively. The following is the Company's net investment in equipment leases receivable: December 31, 2018 (In millions) Total minimum leases receivable $ 89.9 Less: unearned income (24.1 ) Net investment in equipment leases receivable 65.8 Less: current portion (8.5 ) Long-term equipment leases receivable $ 57.3 The following are minimum future lease payments on noncancelable leases as lessee at December 31, 2018 : Capital Leases Operating Leases (In millions) 2019 $ 21.0 $ 91.2 2020 (1) 19.3 92.8 2021 16.2 75.7 2022 14.3 67.6 2023 11.6 55.2 Thereafter 63.4 210.6 Total minimum lease payments 145.8 $ 593.0 Less: interest (44.6 ) Capital lease obligations 101.2 Less: current portion (1) (13.4 ) Long-term capital lease obligations $ 87.8 ______________________________________________________ (1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in fiscal 2020. (2) Included in current maturities of capital lease and financing obligations on the consolidated balance sheet. The asset cost and carrying amount on company-owned property leased at December 31, 2018 was $89.0 million and $58.8 million , respectively. The asset cost and carrying amount on company-owned property leased at December 31, 2017 , was $89.0 million and $60.0 million , respectively. The asset cost and carrying amounts represent the land and building asset values and net book values on sites leased to franchisees. The minimum future lease payments shown above have not been reduced by the following future minimum rents to be received on noncancelable subleases and leases of owned property at December 31, 2018 : Direct Financing Leases Operating Leases (In millions) 2019 $ 16.2 $ 105.9 2020 (1) 14.8 106.3 2021 11.7 100.2 2022 8.2 96.2 2023 3.5 91.8 Thereafter 2.9 271.8 Total minimum rents receivable $ 57.3 $ 772.2 ______________________________________________________ (1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in fiscal 2020. The Company has noncancelable leases, expiring at various dates through 2057, which require payment of contingent rents based upon a percentage of sales of the related restaurant as well as property taxes, insurance and other charges. Subleases to franchisees of properties under such leases are generally for the full term of the lease obligation at rents that include the Company's obligations for property taxes, insurance, contingent rents and other charges. Generally, the noncancelable leases include renewal options. Contingent rent expense for all noncancelable leases for the years ended December 31, 2018 and 2017 was $2.7 million and $2.6 million , respectively. Minimum rent expense for all noncancelable operating leases for the years ended December 31, 2018 and 2017 was $80.8 million and $73.0 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments In some instances, the Company enters into commitments to purchase advertising and other items. Most of these agreements are fixed price purchase commitments. At December 31, 2019 , the outstanding purchase commitments were $115.9 million , the majority of which related to advertising. Lease Guarantees In connection with the sale of Applebee's restaurants to franchisees and other parties, the Company has, in certain cases, guaranteed or had potential continuing liability for lease payments. The Company had outstanding lease guarantees or was contingently liable for approximately $257.2 million and $284.3 million as of December 31, 2019 and 2018 respectively. These amounts represent the maximum potential liability of future payments under these leases. Excluding unexercised option periods, the Company's potential liability for future payments under these leases as of December 31, 2019 was $40.4 million . These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from 2020 through 2048. In the event of default, the indemnity and default clauses in our sale or assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities for these guarantees have been recorded as of December 31, 2019 . Litigation, Claims and Disputes The Company is subject to various lawsuits, governmental inspections, 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 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. In the opinion of management, these matters are adequately covered by insurance or, if not so covered, are without merit or are of such a nature or involve amounts that would not have a material adverse impact on the Company's business or consolidated financial statements. Management regularly assesses the Company's insurance deductibles, analyzes litigation information with the Company's attorneys and evaluates its loss experience in connection with pending legal proceedings. While the Company does not presently believe that any of the legal proceedings to which the Company 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. Letters of Credit The Company provides letters of credit, primarily to various insurance carriers to collateralize obligations for outstanding claims. As of December 31, 2019 , the Company had approximately $2.8 million of unused letters of credit outstanding that reduce the Company's available borrowing under its 2019 Class A-1 Notes. These letters of credit expire on various dates in 2020 and are automatically renewed for an additional year if no cancellation notice is submitted. |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders' Deficit Stock Repurchase Programs In February 2019, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $200 million of the Company’s common stock (the “2019 Repurchase Program”) on an opportunistic basis from time to time in the open market or in privately negotiated transactions based on business, market, applicable legal requirements and other considerations. The 2019 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. In connection with the approval of the 2019 Repurchase Program, the Board of Directors terminated the prior repurchase program approved in October 2015 (the “2015 Repurchase Program”) which had authorized the Company to repurchase up to $150 million of the Company’s common stock. A summary of shares repurchased under the 2019 Repurchase Program and the 2015 Repurchase Program, during the year ended December 31, 2019 and cumulatively for each program, is as follows: Shares Cost of shares (In millions) 2019 Repurchase Program: Repurchased during the year ended December 31, 2019 1,237,698 $ 103.3 Cumulative (life-of-program) repurchases 1,237,698 $ 103.3 Remaining dollar value of shares that may be repurchased n/a $ 96.7 2015 Repurchase Program: Repurchased during the year ended December 31, 2019 110,499 $ 8.4 Cumulative (life-of-program) repurchases 1,589,995 $ 126.2 Remaining dollar value of shares that may be repurchased n/a n/a Dividends During the fiscal years ended December 31, 2019 , 2018 and 2017 , the Company declared and paid dividends on common stock as follows: Year ended December 31, 2019 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) (In millions) Payment of prior year declaration (3) January 4, 2019 — $ 0.63 $ 11.4 First quarter February 20, 2019 April 5, 2019 $ 0.69 0.69 12.5 Second quarter May 13, 2019 July 12, 2019 0.69 0.69 12.2 Third quarter August 1, 2019 October 4, 2019 0.69 0.69 11.8 Fourth quarter October 8, 2019 (2) 0.69 — — Total $ 2.76 $ 2.70 $ 47.9 Year ended December 31, 2018 Payment of prior year declaration (4) January 5, 2018 — $ 0.97 $ 17.7 First quarter February 14, 2018 April 6, 2018 $ 0.63 0.63 11.5 Second quarter May 14, 2018 July 6, 2018 0.63 0.63 11.4 Third quarter August 2, 2018 October 5, 2018 0.63 0.63 11.4 Fourth quarter October 6, 2018 (3) 0.63 — — Total $ 2.52 $ 2.86 $ 52.0 Year ended December 31, 2017 Payment of prior year declaration (5) January 6, 2017 $ — $ 0.97 $ 17.5 First quarter February 22, 2017 April 7, 2017 $ 0.97 0.97 17.5 Second quarter May 15, 2017 July 7, 2017 0.97 0.97 17.5 Third quarter August 10, 2017 October 6, 2017 0.97 0.97 17.8 Fourth quarter October 6, 2017 (4) 0.97 — — Total $ 3.88 $ 3.88 $ 70.3 (1) Includes dividend equivalents paid on restricted stock units (2) The fourth quarter 2019 dividend of $11.7 million was paid on January 10, 2020. (3) The fourth quarter 2018 dividend of $11.4 million was paid on January 4, 2019. (4) The fourth quarter 2017 dividend of $17.7 million was paid on January 5, 2018. (5) The fourth quarter 2016 dividend of $17.5 million was paid on January 6, 2017. Dividends declared on common stock are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends in excess of retained earnings are recorded as a reduction of additional paid-in capital. Dividends recorded during the fiscal years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (In millions) Dividends declared from retained earnings $ (48.1 ) $ — $ (52.6 ) Dividends declared from additional paid-in capital $ — $ (44.7 ) $ (17.7 ) On February 20, 2020, our Board of Directors approved payment of a cash dividend of $0.76 per share of common stock, payable at the close of business on April 3, 2020 to the stockholders of record as of the close of business on March 20, 2020. Treasury Stock Repurchases of the Company's common stock are included in treasury stock at the cost of shares repurchased plus any transaction costs. Treasury stock may be re-issued when vested 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 on the first-in, first-out (“FIFO”) method. The Company re-issued 285,302 shares, 167,396 shares and 281,185 shares, respectively, during the years ended December 31, 2019 , 2018 and 2017 at a total FIFO cost of $12.5 million , $6.5 million and $10.1 million |
Closure and Other Impairment Ch
Closure and Other Impairment Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Closure and Other Impairment Charges | Closure and Other Impairment Charges Closure and other impairment charges for the years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (In millions) Closure charges $ 1.5 $ 2.0 $ 3.9 Long-lived tangible asset impairment — 0.1 0.1 Total closure and impairment charges $ 1.5 $ 2.1 $ 4.0 Closure Charges Approximately $0.5 million of closure charges for the year ended December 31, 2019 related to two IHOP restaurants and one Applebee's restaurant closed during 2019, with the remainder primarily related to adjustments to the reserve for IHOP and Applebee's restaurants closed prior to 2019. Approximately $1.8 million of closure charges for the year ended December 31, 2018 related to one IHOP franchise restaurant closed during 2018, with the remainder primarily related to adjustments to the reserve for IHOP and Applebee's restaurants closed prior to 2018. Approximately $2.2 million of closure charges for the year ended December 31, 2017 related to one IHOP company-operated restaurant closed during 2017, with the remainder primarily related to adjustments to the reserve for IHOP and Applebee's restaurants closed prior to 2017. Long-lived Tangible Asset Impairment There were no long-lived tangible asset impairment charges for the year ended December 31, 2019. Long-lived tangible asset impairment charges for the year ended December 31, 2018 and 2017 were insignificant. |
Stock-Based Incentive Plans
Stock-Based Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Incentive Plans | Stock-Based Incentive Plans General Description Currently, the Company is authorized to grant stock options, stock appreciation rights, restricted stock, cash-settled and stock-settled restricted stock units and performance units to officers, other employees and non-employee directors under the Dine Brands Global, Inc. 2019 Stock Incentive Plan (the “2019 Plan”). The 2019 Plan was approved by stockholders on May 14, 2019 to permit the issuance of up to 2,050,000 shares (subject to adjustment as defined in the 2019 Plan for shares that may become available from prior plans) of the Company’s common stock for incentive stock awards. The 2019 Plan will expire in May 2029. The Dine Brands Global, Inc. 2016 Stock Incentive Plan (the “2016 Plan”) was adopted in 2016 to permit the issuance of up to 3,750,000 shares of the Company’s common stock for incentive stock awards. The 2016 Plan was terminated upon adoption of the 2019 Plan, but there are stock options (vested and unvested) and unvested restricted stock and restricted stock units issued under the 2016 Plan that are outstanding as of December 31, 2019 . The DineEquity, Inc. 2011 Stock Incentive Plan (the “2011 Plan”) was adopted in 2011 to permit the issuance of up to 1,500,000 shares of the Company’s common stock for incentive stock awards. The 2011 Plan was terminated upon adoption of the 2016 Plan, but there are vested stock options issued under the 2011 Plan that are outstanding as of December 31, 2019 . The IHOP Corp. 2001 Stock Incentive Plan (the “2001 Plan”) was adopted in 2001 and amended and restated in 2005 and 2008 to authorize the issuance of up to 4,200,000 shares of common stock. The 2001 Plan has expired but there are vested stock options issued under the 2001 Plan outstanding as of December 31, 2019 . The 2019 Plan, 2016 Plan, the 2011 Plan and the 2001 Plan are collectively referred to as the “Plans.” Stock-Based Compensation Expense From time to time, the Company has granted nonqualified stock options, restricted stock, cash-settled and stock-settled restricted stock units and performance units to officers, other employees and non-employee directors of the Company under the Plans. The nonqualified stock options generally vest ratably over a three -year period in one-third increments and have a maturity of ten years from the grant date. Options vest immediately upon a change in control of the Company, as defined in the Plans. Option exercise prices equal the closing price of the Company's common stock on the New York Stock Exchange on the date of grant. Restricted stock and restricted stock units are issued at no cost to the holder and vest over terms determined by the Compensation Committee of the Company's Board of Directors, generally three years from the date of grant or immediately upon a change in control of the Company, as defined in the Plans. The Company either utilizes treasury stock or issues new shares from its authorized but unissued share pool when vested stock options are exercised, when restricted stock awards are granted and when restricted stock units settle in stock upon vesting. The following table summarizes the Company's stock-based compensation expense included as a component of general and administrative expenses in the consolidated financial statements: Year Ended December 31, 2019 2018 2017 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 10.9 $ 10.6 $ 10.9 Liability classified awards expense (credit) 3.2 3.1 (1.0 ) Total pretax stock-based compensation expense 14.1 13.7 9.9 Book income tax benefit (3.5 ) (3.5 ) (3.8 ) Total stock-based compensation expense, net of tax $ 10.6 $ 10.2 $ 6.1 As of December 31, 2019 , total unrecognized compensation cost related to restricted stock and restricted stock units of $15.9 million and $3.0 million related to stock options is expected to be recognized over a weighted average period of approximately 1.3 years for restricted stock and restricted stock units and 1.3 years for stock options. Equity Classified Awards - Stock Options The per share fair values of the stock options granted have been estimated as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes model considers, among other factors, the expected life of the option and the historical volatility of the Company's stock price. The Black-Scholes model meets the requirements of U.S. GAAP, but the fair values generated by the model may not be indicative of the actual fair values of the Company's stock-based awards. The Company granted 132,832 stock options during the year ended December 31, 2019 for which the fair value was estimated using a Black-Scholes option pricing model. The following table summarizes the assumptions used in the Black-Scholes model: 2019 2018 2017 Risk free interest rate 2.5 % 2.6 % 1.9 % Weighted average historical volatility 30.3 % 26.1 % 22.9 % Dividend yield 2.8 % 3.6 % 7.3 % Expected years until exercise 4.7 4.6 4.5 Weighted average fair value of options granted $ 21.93 $ 11.94 $ 4.31 The Company granted 25,330 performance-based stock options and 55,245 performance-based restricted stock units during the year ended December 31, 2018, with performance periods ranging from 36 to 40 months. As of December 31, 2019, all of the stock options and 26,670 of the restricted stock units have been forfeited. During the year ended December 31, 2017, the Company granted 350,000 performance-based stock options and 175,000 performance-based restricted stock units with a performance period of approximately 42 months. These performance-based awards can vest from 0% to 100% of the award granted depending on the Company's stock price over certain measurement periods. Fair value of these grants was estimated using a Monte Carlo simulation method. The following summarizes the assumptions used in estimating the fair values: 2018 2017 Risk free interest rate 2.5 % 1.6 % Weighted average historical volatility 34.4 % 30.0 % Dividend yield 3.4 % 9.6 % Expected years until exercise 3.0 3.4 Weighted average fair value of options granted $ 9.79 $ 3.07 Weighted average fair value of restricted stock units granted $ 53.72 $ 10.19 Stock option activity for the years ended December 31, 2019 , 2018 and 2017 is summarized as follows: Number of Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Millions) Outstanding at December 31, 2016 701,134 $ 80.04 Granted 887,030 48.35 Exercised (64,916 ) 40.59 Forfeited (171,847 ) 65.82 Expired (79,353 ) 87.02 Outstanding at December 31, 2017 1,272,048 61.44 Granted 248,899 69.12 Exercised (74,930 ) 52.43 Forfeited (6,309 ) 68.80 Outstanding at December 31, 2018 1,439,708 63.21 Granted 132,832 98.97 Exercised (211,352 ) 57.36 Forfeited (106,745 ) 72.19 Expired (37,005 ) 93.06 Outstanding at December 31, 2019 1,217,438 $ 66.43 5.7 $ 24.1 Vested and Expected to Vest at December 31, 2019 1,146,329 $ 67.06 5.6 $ 22.0 Exercisable at December 31, 2019 561,872 $ 77.80 3.1 $ 5.9 The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $6.9 million , $2.4 million and $1.4 million , respectively. Cash received from options exercised under all stock-based payment arrangements for the years ended December 31, 2019 , 2018 and 2017 was $12.0 million , $3.9 million and $2.6 million , respectively. The actual tax benefit realized for the tax deduction from option exercises under the stock-based payment arrangements totaled $1.8 million , $0.6 million and $0.5 million , respectively, for the years ended December 31, 2019 , 2018 and 2017 . Equity Classified Awards - Restricted Stock and Restricted Stock Units Activity in equity classified awards of restricted stock and restricted stock units for the years ended December 31, 2019 , 2018 and 2017 is as follows: Shares of Restricted Stock Weighted Average Grant-Date Per Share Fair Value Restricted Stock Units Weighted Average Grant-Date Per Share Fair Value Outstanding at December 31, 2016 235,472 $ 92.91 34,058 $ 93.95 Granted 216,269 51.89 281,973 22.37 Released (92,968 ) 88.62 (12,683 ) 81.63 Forfeited (83,582 ) 79.52 — — Outstanding at December 31, 2017 275,191 65.97 303,348 28.39 Granted 92,466 69.20 86,990 57.21 Released (74,253 ) 81.07 (15,737 ) 98.54 Forfeited (26,162 ) 61.27 (72 ) 53.49 Outstanding at December 31, 2018 267,242 64.21 374,529 31.05 Granted 75,556 96.86 23,427 95.77 Released (76,962 ) 76.25 (12,347 ) 90.34 Forfeited (41,321 ) 67.20 (27,802 ) 34.53 Outstanding at December 31, 2019 224,515 $ 70.52 357,807 $ 30.35 Liability Classified Awards - Cash-settled Restricted Stock Units The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end. Cash-Settled Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 53,766 $ 79.07 Granted 20,989 83.58 Released (462 ) 83.18 Forfeited (10,441 ) 88.70 Outstanding at December 31, 2019 63,852 $ 85.63 For the years ended December 31, 2019 and 2018 , $1.6 million and $0.8 million, respectively, was included as stock-based compensation expense related to cash-settled restricted stock units. Liability Classified Awards - Long-Term Incentive Awards The Company has granted cash long-term incentive awards to certain employees (“LTIP awards”). 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 (i) the total stockholder return of the Company's common stock compared to the total stockholder returns of a peer group of companies and (ii) the percentage increase in the Company's adjusted earnings per share (as defined in the applicable award agreement). Though LTIP awards are only paid in cash, since the multiplier is primarily 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 years ended December 31, 2019 and 2018, expense of $1.7 million and $2.3 million , respectively, was included in stock-based compensation expense related to the LTIP awards. For the year ended December 31, 2017 , a credit $1.0 million was included in stock-based compensation expense related to the LTIP awards. At December 31, 2019 and 2018 , liabilities of $2.9 million and $2.4 million |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Savings and Investment Plan Effective January 1, 2013, the Company amended the Dine Brands Global, Inc. 401(k) Plan to (i) modify the Company matching formula and (ii) eliminate the one-year completed service requirement that previously had to be met to become eligible for Company matching contributions. As amended, the Company matches 100% of the first four percent of the employee's eligible compensation deferral and 50% of the next two percent of the employee's eligible compensation deferral. All contributions under this plan vest immediately. Company common stock is not an investment option for employees in the 401(k) Plan, other than shares transferred from a prior employee stock ownership plan. Substantially all of the administrative cost of the 401(k) plan is borne by the Company. The Company's matching contribution expense was $3.0 million , $2.4 million and $2.3 million for the years ended December 31, 2019 , 2018 and 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision (benefit) for income taxes for the years ended December 31, 2019 , 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Provision (benefit) for income taxes: (In millions) Current Federal $ 31.2 $ 33.6 $ 42.6 State 6.5 6.4 5.1 Foreign 1.9 2.1 2.9 39.6 42.1 50.6 Deferred Federal (3.8 ) (7.8 ) (131.0 ) State (1.7 ) (4.0 ) (5.1 ) (5.5 ) (11.8 ) (136.1 ) Provision (benefit) for income taxes $ 34.1 $ 30.3 $ (85.6 ) The provision (benefit) for income taxes differs from the expected federal income tax rates as follows: Year Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % Non-deductibility of goodwill impairment — — (29.3 ) Change in federal tax rate — — 15.5 State and other taxes, net of federal tax benefit 2.8 3.6 0.4 Change in unrecognized tax benefits 1.8 3.3 (0.7 ) Change in valuation allowance 0.5 0.4 0.3 Domestic production activity deduction — — 0.3 Changes in tax rates and state tax laws (0.5 ) (1.6 ) (0.3 ) Change in accounting for excess tax deficiencies/benefits (0.6 ) 0.1 (0.5 ) General business credits (1.3 ) (0.2 ) 0.0 Other 0.9 0.8 (0.7 ) Effective tax rate 24.6 % 27.4 % 20.0 % The difference in the 2019 overall effective tax rate from the U.S. statutory rate was primarily attributed to state taxes and unrecognized tax benefits offset by benefits associated with an increase in general business credits. The Company applied a lower state tax rate to the deferred tax balances during fourth quarter of 2018, a result of the state legislative changes and the acquisition of 69 Applebee’s restaurants in December 2018. The change in the state tax rate applied to the deferred tax balances lowered the 2018 effective tax rate by 1.6% . The Company recognized a $358.2 million impairment of goodwill during the third quarter of 2017 that was not deductible for federal income tax purposes and therefore had no associated tax benefit. The impairment of goodwill lowered the 2017 effective tax rate by 29.3% . Additionally, the Company was required to revalue its deferred taxes at the federal tax rate of 21% in accordance with the Tax Act. The change in the federal tax rate applied to the deferred tax balances increased the 2017 effective tax rate by 15.5% . The Company files federal income tax returns and the Company or one of its subsidiaries file income tax returns in various state and international jurisdictions. The IRS Examination of tax years 2011 to 2013 concluded during the second quarter of 2019, and the Company received a refund of $13.3 million , inclusive of interest income of $0.9 million . With few exceptions, the Company is no longer subject to federal tax examinations by tax authorities for years before 2014 and state or non-United States tax examinations by tax authorities for years before 2011. The Company believes that adequate reserves have been recorded relating to all matters contained in the tax periods open to examination. Net deferred tax assets (liabilities) consisted of the following components: 2019 2018 (In millions) Employee compensation $ 9.2 $ 9.0 Revenue recognition 32.8 34.3 Other 5.9 16.8 Deferred tax assets 47.9 60.1 Valuation allowance (1.5 ) (0.4 ) Total deferred tax assets after valuation allowance 46.4 59.7 Recognition of franchise and equipment sales (13.7 ) (16.8 ) Capitalization and depreciation (1) (130.8 ) (139.2 ) Acquisition financing costs — (0.6 ) Basis of property and equipment — (8.1 ) Other (0.4 ) (0.8 ) Deferred tax liabilities (144.9 ) (165.5 ) Net deferred tax liabilities $ (98.5 ) $ (105.8 ) ____________________________ (1) Primarily related to the 2007 Applebee's acquisition. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regards to future realization of deferred tax assets. As of December 31, 2019 , management determined it is more likely than not that the benefit from foreign tax credit carryforward will not be realized. In recognition of this risk, the Company provided a valuation allowance of $1.5 million on the deferred tax assets related to the foreign tax credit carryforward. The Company had gross operating loss carryforwards for state tax purposes of $0.5 million and $0.4 million as of December 31, 2019 and 2018 , respectively. The net operating loss carryforwards begin to expire in 2031 if not utilized. The total gross unrecognized tax benefit as of December 31, 2019 and 2018 was $7.6 million and $5.2 million , respectively, excluding interest, penalties and related income tax benefits. If recognized, these amounts would affect the Company's effective income tax rates. The Company estimates the unrecognized tax benefits may decrease over the upcoming 12 months by an amount up to $1.5 million related to settlements with taxing authorities, statutes of limitations expirations and method changes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2019 2018 2017 Unrecognized tax benefit as of January 1 $ 5.2 $ 5.9 $ 3.9 Changes for tax positions of prior years 2.1 3.8 2.8 Increases for tax positions related to the current year 0.5 0.4 0.6 Decreases relating to settlements and lapsing of statutes of limitations (0.2 ) (4.9 ) (1.4 ) Unrecognized tax benefit as of December 31 $ 7.6 $ 5.2 $ 5.9 As of December 31, 2019 , the accrued interest was $2.5 million and accrued penalties were less than $0.1 million , excluding any related income tax benefits. As of December 31, 2018 , the accrued interest and penalties were $1.1 million and less than $0.1 million |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net Income (Loss) Per Share The computation of the Company's basic and diluted net income (loss) per share is as follows: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Numerator for basic and diluted income (loss) per common share: Net income (loss) $ 104,346 $ 80,354 $ (342,750 ) Less: Net (income) loss allocated to unvested participating restricted stock (3,532 ) (2,711 ) 6,768 Net income (loss) available to common stockholders - basic 100,814 77,643 (335,982 ) Effect of unvested participating restricted stock 33 16 — Numerator - net income (loss) available to common shareholders - diluted $ 100,847 $ 77,659 $ (335,982 ) Denominator: Weighted average outstanding shares of common stock - basic 16,934 17,533 17,725 Effect of dilutive securities: Stock options (1) 311 256 15 Weighted average outstanding shares of common stock - diluted 17,245 17,789 17,740 Net income (loss) per common share: Basic $ 5.95 $ 4.43 $ (18.96 ) Diluted $ 5.85 $ 4.37 $ (18.96 ) (1) Stock options were not included in the calculation for the year ended December 31, 2017 as they were antidilutive. |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Business | Acquisition of Business In December 2018, the Company acquired 69 Applebee's restaurants in North Carolina and South Carolina from an Applebee's franchisee for a total purchase price of $21.6 million . The Company entered into the transaction to resolve certain franchisee health issues in what the Company believes was the most expedient and favorable manner for the Company. Indirect costs of $1.1 million related to the transaction were charged as general and administrative expenses. A preliminary purchase price allocation was made as of December 31, 2018. During 2019, the Company completed the calculation of deferred income taxes related to the transaction and adjusted the preliminary purchase price allocation as follows: Preliminary Allocation Adjustments Final Allocation (In millions) Reacquired franchise rights $ 11.6 $ — $ 11.6 Equipment and fixtures 10.0 — 10.0 Inventory 1.4 — 1.4 Deferred income taxes — 1.5 1.5 Total identifiable assets acquired 23.0 1.5 24.5 Above-market leaseholds, net (6.5 ) — (6.5 ) Other liabilities (1.0 ) — (1.0 ) Net identifiable assets acquired 15.5 1.5 17.0 Goodwill 6.1 (1.5 ) 4.6 Consideration transferred $ 21.6 $ — $ 21.6 In conjunction with the acquisition, the Company assumed finance lease obligations and related property under finance leases of $9.1 million . The Company also entered into new finance leases totaling $28.1 million of property under finance leases and finance lease obligations. The net liability for above-market leaseholds in included in other non-current liabilities in the Consolidated Balance Sheet and is being amortized over a weighted average life of 11 years . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Information on segments and a reconciliation of gross profit to income before income tax provision is as follows: Year Ended December 31, 2019 2018 2017 Revenues (In millions) Franchise operations $ 651.2 $ 643.9 $ 594.4 Rental operations 120.7 121.9 121.4 Company restaurants 131.2 7.1 7.5 Financing operations 7.1 8.0 8.4 Total $ 910.2 $ 780.9 $ 731.7 Gross profit (loss), by segment Franchise operations $ 338.4 $ 313.3 $ 300.4 Rental operations 29.9 31.2 30.8 Company restaurants 8.0 1.2 (0.3 ) Financing operations 6.5 7.4 7.8 Total gross profit 382.8 353.1 338.7 Corporate and unallocated expenses, net (244.3 ) (242.5 ) (767.0 ) Income (loss) before income taxes $ 138.5 $ 110.6 $ (428.3 ) Interest expense Rental operations $ 7.7 $ 9.2 $ 10.5 Company restaurants 2.1 0.1 0.2 Corporate 60.4 61.7 62.0 Total $ 70.2 $ 71.0 $ 72.7 Depreciation and amortization Franchise operations $ 10.3 $ 10.5 $ 10.8 Rental operations 13.4 11.7 12.0 Company restaurants 6.4 0.4 0.1 Corporate 12.4 9.6 7.7 Total $ 42.5 $ 32.2 $ 30.6 Impairment of goodwill and intangible assets, closure and other impairment charges Franchise operations $ — $ — $ 531.6 Company restaurants 1.5 2.1 4.0 Total $ 1.5 $ 2.1 $ 535.6 Capital expenditures Franchise operations $ 0.6 $ — $ — Company restaurants $ 3.2 $ — $ 0.1 Corporate 15.6 14.3 13.3 Total $ 19.4 $ 14.3 $ 13.4 Goodwill (franchise segment) $ 343.9 $ 345.3 $ 339.2 Total assets Franchise operations $ 1,116.2 $ 1,152.1 $ 1,188.0 Rental operations 503.8 255.6 278.8 Company restaurants 134.3 66.5 — Financing operations 72.0 73.7 87.5 Corporate 223.2 226.8 181.3 Total $ 2,049.5 $ 1,774.7 $ 1,735.6 |
Refranchising of Company-operat
Refranchising of Company-operated Restaurants (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Refranchising of Company-operated Restaurants | Refranchising of Company-operated Restaurants In June 2017, the Company completed the refranchising and sale of related restaurant assets of nine company-operated IHOP restaurants in the Cincinnati, Ohio market area. As part of the transaction, the Company entered into an asset purchase agreement, nine franchise agreements and nine sublease agreements for land and buildings. The Company compared the stated rent under the sublease agreements with comparable market rents and recorded net favorable lease assets of $2.3 million in connection with the transaction. The Company also received cash of $1.1 million and a note receivable for $4.8 million . After allocating a portion of the consideration to franchise fees and derecognizing the assets sold, the Company recognized a gain of $6.2 million |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Revenues Gross Profit Net Income (Loss) Net Income Per Share— Basic (1) Net Income Per Share— Diluted (1) (In thousands, except per share amounts) 2019 1 st Quarter $ 237,182 $ 102,571 $ 31,643 $ 1.76 $ 1.73 2 nd Quarter 228,080 94,855 21,390 1.20 1.18 3 rd Quarter 217,405 89,720 23,917 1.38 1.36 4 th Quarter 227,511 95,668 27,396 1.61 1.59 2018 1 st Quarter $ 188,163 $ 83,500 $ 17,073 $ 0.93 $ 0.92 2 nd Quarter 184,471 78,590 12,713 0.70 0.69 3 rd Quarter 194,099 92,626 23,587 1.31 1.29 4 th Quarter 214,198 98,371 26,981 1.49 1.47 ______________________________________________________________________________________________________ (1) The quarterly amounts of earnings per share may not add to the full year amount as each quarterly calculation is discrete from the full-year calculation. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Dine Brands Global, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Periods | Fiscal Periods |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires the Company's management to make estimates and assumptions 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 and intangible assets and goodwill; 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. |
Concentration of Credit Risk | Concentration of Credit Risk The Company's cash, cash equivalents, restricted cash and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are creditworthy. The Company does not believe that it is exposed to any significant credit risk on cash, cash equivalents and restricted cash. At times, cash, cash equivalents and restricted cash balances may be in excess of FDIC insurance limits. Accounts receivable are derived from revenues earned from franchisees and area licensees located primarily in the United States. Financing receivables arise from the financing of restaurant equipment, leases or franchise fees with the Company by IHOP franchisees. The Company is subject to a concentration of credit risk with respect to receivables from franchisees that |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash Current Current restricted cash of $40.7 million at December 31, 2019 consisted of $38.4 million of funds required to be held in trust in connection with the Company's securitized debt and $2.3 million of funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. Current restricted cash of $48.5 million at December 31, 2018 primarily consisted of $42.3 million of funds required to be held in trust in connection with the Company's securitized debt and $6.2 million of funds from Applebee's franchisees pursuant to franchise agreements, usage of which was restricted to advertising activities. Non-current Non-current restricted cash of $15.7 million and $14.7 million at December 31, 2019 and 2018 , respectively, represents interest reserves required to be set aside for the duration of the securitized debt. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Properties under finance leases are stated at the present value of the minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or remaining useful lives. Leasehold improvements and properties under finance leases are amortized on a straight-line basis over their estimated useful lives or the lease term, if less. The Company has capitalized certain costs incurred in connection with the development of internal-use software which are included in equipment and fixtures in Note 5 - Property and Equipment, of the Notes to the Consolidated Financial Statements and are amortized over the expected useful life of the asset. The general ranges of depreciable and amortizable lives are as follows: Category Depreciable Life Buildings and improvements 25 to 40 years Leaseholds and improvements Shorter of primary lease term or between three to 40 years Equipment and fixtures Three to five years Internal-use software Three to 10 years Properties under finance leases Primary lease term or remaining primary lease term |
Long-Lived Assets | Long-Lived Assets On a regular basis, the Company assesses whether events or changes in circumstances have occurred that potentially indicate the carrying value of long-lived assets (primarily assets related to property and equipment leased or subleased to franchisees) may not be recoverable. The Company tests impairment using historical cash flows and other relevant facts and circumstances as the primary basis for estimates of future cash flows. The Company considers factors such as the number of years the franchisee's restaurant has been in operation, sales trends, cash flow trends, remaining lease life and other factors which apply on a case-by-case basis. The analysis is performed at the restaurant level for indicators of permanent impairment. Recoverability of the Company's assets is measured by comparing the assets' carrying value to the undiscounted future cash flows expected to be generated over the assets' remaining useful life or remaining lease term, whichever is less. Total expected undiscounted future cash flows that are less than the carrying amount of the assets is an indicator of impairment. If it is decided that there has been an impairment, the carrying amount of the asset is written down to the estimated fair value as determined in accordance with U.S. GAAP governing fair value measurements. The primary method of estimating fair value is based on a discounted cash flow analysis. Any loss resulting from impairment is recognized as a charge against operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is recorded when the aggregate purchase price of an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Intangible assets resulting from an acquisition are accounted for using the purchase method of accounting and are estimated by management based on the fair value of the assets received. The Company's identifiable intangible assets are comprised primarily of the Applebee's tradename and Applebee's franchise agreements. Identifiable intangible assets with finite lives (franchise agreements) are amortized over the period of estimated benefit using the straight-line method and estimated useful lives. Goodwill and intangible assets considered to have an indefinite life (primarily the Applebee's tradename) are not subject to amortization. The determination of indefinite life is subject to reassessment if changes in facts and circumstances indicate the period of benefit has become finite. Goodwill has been allocated to three reporting units. The significant majority of the Company's goodwill resulted from the November 29, 2007 acquisition of Applebee's and was allocated to the Applebee's franchised restaurants unit (“Applebee's franchise unit”). Smaller amounts of goodwill arising from other business combinations have been allocated to the IHOP franchised restaurants unit (“IHOP franchise unit”) and the Applebee's company restaurants unit (“Applebee's company unit”). See Note 6 - Goodwill, of the Notes to the Consolidated Financial Statements for additional information. The Company evaluates the goodwill of the Applebee's franchise and company units and the indefinite-lived Applebee's tradename for impairment as of October 31 of each year. The Company evaluates the goodwill of the IHOP franchise unit for impairment as of December 31 of each year. In addition to the annual evaluation for impairment, goodwill and indefinite-lived intangible assets are evaluated more frequently if the Company believes indicators of impairment exist. When evaluating goodwill and indefinite-lived intangible assets for impairment, under U.S. GAAP, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit or the intangible asset is more-likely-than-not greater than the carrying amount. Such qualitative factors include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance and results of past impairment tests. If, based on a review of the qualitative factors, the Company determines it is more-likely-than-not that the fair value is greater than the carrying value, the Company may bypass a quantitative test for impairment. In performing the quantitative test for impairment of goodwill, the Company primarily uses the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method. Significant assumptions used to determine fair value under the discounted cash flow method include expected future trends in sales, operating expenses, overhead expenses, capital expenditures and changes in working capital, along with an appropriate discount rate based on the Company's estimated cost of equity capital and after-tax cost of debt. Significant assumptions used to determine fair value under the guideline public company method include the selection of guideline companies and the valuation multiples applied. The Company measures impairment as the excess of a reporting unit's carrying amount over its fair value as determined by the quantitative test described above. |
Revenue Recognition | Revenue Recognition The Company's revenues are recorded in four categories: franchise operations, rental operations, financing operations and company restaurant operations. Franchise revenue (which comprises most of the Company's revenues) and revenue from company-operated restaurants are recognized in accordance with Accounting Standards Codification 606 - Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive for those services or goods. The Company's rental and financing revenues are recognized in accordance with other U.S. GAAP accounting standards and are not subject to ASC 606. Franchise Revenue The Company owns and franchises the Applebee’s and IHOP restaurant concepts. The franchise arrangement for both brands is documented in the form of a franchise agreement and, in most cases, a development agreement. The franchise arrangement between the Company as the franchisor and the franchisee as the customer requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. The transaction price in a standard franchise arrangement for both brands primarily consists of (a) initial franchise/development fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required. Additionally, all domestic IHOP franchise agreements require franchisees to purchase proprietary pancake and waffle dry mix from the Company. The Company recognizes the primary components of the transaction price as follows: • Franchise and development fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the restaurant opening date. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time; • The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenue are recognized when the franchisee's reported sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either a contract asset (unbilled receivable) or, once billed, accounts receivable, on the balance sheet; • Revenue from the sales of proprietary pancake and waffle dry mix is recognized in the period in which distributors ship the franchisee's order; recognition of revenue results in accounts receivable on the balance sheet. In determining the amount and timing of revenue from contracts with customers, the Company exercises significant judgment with respect to collectibility of the amount; however, the timing of recognition does not require significant judgment as it is based on either the franchise term, the month of sale as reported by the franchisee or the date of product shipment, none of which require estimation. The Company does not incur a significant amount of contract acquisition costs in conducting its franchising activities. The Company believes its franchising arrangements do not contain a significant financing component. Any excess or deficiency of advertising fee revenue compared to advertising expenditures, is recognized in the fourth quarter of the Company's fiscal year. Any excess of revenue over expenditures is recognized only to the extent of previously recognized deficits. When advertising revenues exceed the related advertising expenses and there is no recovery of a previously recognized deficit of advertising revenues, advertising costs are accrued up to the amount of revenues. Company Restaurant Revenue Company restaurant revenue comprises retail sales at company-operated restaurants. Sales by company-operated restaurants are recognized when food and beverage items are sold. Company restaurant sales are reported net of sales taxes collected from guests that are remitted to the appropriate taxing authorities, with no significant judgments required. Rental operations revenue includes revenue from operating leases and interest income from direct financing leases. See Basis of Presentation and Summary of Significant Accounting Policies - Leases. Financing operations revenue consists primarily of interest income from the financing of franchise fees and equipment leases, other notes receivable from franchisees and sales of equipment associated with refranchised IHOP restaurants. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses incurred on existing receivables; however, changes in circumstances relating to receivables may result in changes to the allowance in the future. The Company determines the allowance based on historical experience, current payment patterns, future obligations and the Company's assessment of the franchisee's or area licensee's ability to pay outstanding balances. The primary indicator of credit quality is delinquency, which is considered to be a receivable balance greater than 90 days past due. The Company continually reviews the allowance for doubtful accounts. Past due balances and future obligations are reviewed individually for collectability. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. Credit losses historically have been within management's estimates. See Newly Issued Accounting Standards Not Yet Adopted. |
Leases | Leases The Company accounts for its leasing activities in accordance with accounting guidance for leases, as codified in Accounting Standards Topic 842 (“ASC 842”), adopted as of the beginning of its 2019 fiscal year. In adopting ASC 842, the Company utilized expedients that allowed it to retain the classification, as either an operating lease or a finance lease, that was previously determined under prior accounting guidance for leases. See Accounting Standards Adopted Effective January 1, 2019. The Company reassesses this classification upon renewal, extension or the modification of an existing lease agreement. The Company determines the appropriate classification upon entering into a new contract determined to contain a lease. Operating lease assets and liabilities are recognized at the lease commencement date, or were recognized upon adoption of ASC 842. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the Company's right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. The Company's lease agreements generally do not provide information to determine the implicit interest rate in the agreements. This requires the Company to make significant judgments in determining the incremental borrowing rate to be used in calculating operating lease liabilities as of the adoption or commencement date. The Company estimates the incremental borrowing rate primarily by reference to (i) yield rates on debt issuances by companies of a similar credit rating as the Company; (ii) U.S. Treasury rates as of the adoption or commencement date; and (iii) adjustments for differences between these rates and the lease term. The cost of an operating lease is recognized over the lease term on a straight-line basis. The lease term commences on the date the Company has the right to control the use of the leased property. Certain leases may contain provisions for rent holidays and fixed-step escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and fixed-step escalations are reflected in rent expense on a straight-line basis over the expected lease term. Differences between amounts paid and amounts expensed are recorded as deferred rent. Certain leases may include rent escalations based on inflation indexes and fair market value adjustments. Certain leases may contain contingent rental provisions that include a fixed base rent plus an additional percentage of the restaurant’s sales. Subsequent escalations subject to such an index and contingent rental payments are recognized as variable lease expense. The rental payments or receipts on those property leases that meet the finance lease criteria result in the recognition of interest expense or interest income and a reduction of finance lease obligation or financing lease receivable, respectively. Finance lease obligations are amortized based on the Company's incremental borrowing rate and direct financing leases are amortized using the implicit interest rate. |
Pre-opening Expenses | Pre-opening Expenses Expenditures related to the opening of new or relocated restaurants are charged to expense when incurred. |
Advertising | Advertising Advertising fees included as franchise revenue for the years ended December 31, 2019 , 2018 and 2017 were $283.0 million , $268.3 million and $234.2 million , respectively. |
Fair Value Measurements | Fair Value Measurements The Company determines the fair market values of its financial assets and liabilities, as well as non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis, based on the fair value hierarchy established in U.S. GAAP. As necessary, the Company measures its financial assets and liabilities using inputs from the following three levels of the fair value hierarchy: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities. • Level 3 inputs are unobservable and reflect the Company's own assumptions. The Company does not have a material amount of financial assets or liabilities that are required under U.S. GAAP to be measured at fair value on a recurring basis. None of the Company's non-financial assets or non-financial liabilities is required to be measured at fair value on a recurring basis. Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include items such as property and equipment, operating lease assets, goodwill and other intangible assets, which are measured at fair value if determined to be impaired. The Company has not elected to use fair value measurement for any assets or liabilities for which fair value measurement is not presently required. The Company believes the fair values of cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying amounts due to their short duration. |
Income Taxes | Income Taxes The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records estimated tax liabilities to the extent the contingencies are probable and can be reasonably estimated. The Company recognizes interest accrued related to unrecognizable tax benefits and penalties as a component of the income tax provision recognized in the Consolidated Statements of Comprehensive Income (Loss). |
Stock-Based Compensation | Stock-Based Compensation Members of the Board of Directors and certain employees are eligible to receive stock options, restricted stock, restricted stock units and performance units pursuant to the Dine Brands Global, Inc. 2019 Stock Incentive Plan. Shares of unvested restricted stock are subject to restrictions on transfer and forfeiture under certain circumstances. The holder of unvested restricted stock has the right to vote and receive regular cash dividends with respect to the shares of unvested restricted stock. The Company accounts for all stock-based payments to employees and non-employee directors, including grants of stock options, restricted stock, restricted stock units and performance units to be recognized in the financial statements, based on their respective grant date fair values. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods. |
Net Income Per Share | Net Income (Loss) Per Share Net income (loss) per share is calculated using the two-class method prescribed in U.S. GAAP. Basic net income (loss) per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income available to common stockholders for the period by the weighted average number of common shares and potential shares of common stock outstanding during the period if their effect is dilutive. The Company uses the treasury stock method to calculate the weighted average shares used in the diluted earnings per share calculation. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock. |
Treasury Stock | Treasury Stock The Company may from time to time utilize treasury stock when vested 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 method. |
Dividends | Dividends Dividends declared on common stock are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends declared in excess of retained earnings are recorded as a reduction of additional paid-in capital. |
Reporting Segments | Reporting Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. The Company has five operating segments: Applebee's franchise operations, IHOP franchise operations, rental operations, financing operations and company-operated restaurant operations. The Company has four reporting segments: franchise operations, (an aggregation of Applebee's and IHOP franchise operations), rental operations, financing operations and company-operated restaurant operations. The Company considers these to be its reportable segments, regardless of whether any segment exceeds 10% of consolidated revenues, income before income tax provision or total assets. Franchise Segment As of December 31, 2019 , the franchise operations reportable segment consisted of 1,718 restaurants operated by Applebee's franchisees in the United States, two United States territories and 12 countries outside the United States and 1,841 restaurants operated by IHOP franchisees and area licensees in the United States, three United States territories and 13 countries outside the United States. Franchise operations revenue consists primarily of royalties and advertising fees based on a percentage of the franchisee's gross sales, sales of proprietary products (primarily IHOP pancake and waffle dry mixes) and other franchise fees. Franchise operations expenses include advertising expense, the cost of proprietary products, pre-opening training expenses and other franchise-related costs. Rental Segment 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 of finance leases on franchisee-operated restaurants. The rental operations revenue and expenses are primarily generated by IHOP. Applebee's has an insignificant amount of rental activity. Financing Segment Financing operations revenue primarily consists of interest income from the financing of IHOP franchise fees and equipment leases, notes receivable from Applebee's franchisees and sales of equipment associated with refranchised IHOP restaurants. Financing expenses are the cost of restaurant equipment. Company Segment As of December 31, 2019 , the Company operated 69 Applebee's restaurants that were acquired from a former franchisee in December 2018. See Note 18 - Acquisition of Business, of the Notes to the Consolidated Financial Statements for additional information. The company segment presented in these financial statements consists of these 69 Applebee's restaurants in 2019 and three weeks of 2018 as well as 10 IHOP restaurants operated by the Company for the first six months of 2017. All company-operated restaurants were 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, beverage, labor, benefits, utilities, rent and other operating costs. |
Accounting Standards Adopted in the Current Fiscal Year and Newly Issued Accounting Standards Not Yet Adopted | Accounting Standards Adopted Effective January 1, 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance with respect to the accounting for leases, as codified in Accounting Standards Topic 842 (“ASC 842”). The guidance is intended to improve financial reporting of leasing transactions by requiring entities that lease assets to recognize assets and liabilities for the rights and obligations created by leases, as well as by requiring additional disclosures related to an entity's leasing activities. The Company adopted this change in accounting principle as of the first day of the first fiscal quarter of 2019 using the modified retrospective method. Accordingly, financial information for periods prior to the date of initial application has not been adjusted. The Company has elected the package of practical expedients for adoption that permitted the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company also elected a short-term lease exception policy and an accounting policy not to separate non-lease components from lease components. The Company did not elect to use an allowable expedient that permitted the use of hindsight in performing evaluations of its leases. Upon adoption of ASC 842, the Company recognized operating lease obligations of $453.0 million , which represented the present value of the remaining minimum lease payments, discounted using the Company's incremental borrowing rate. The Company recognized operating lease right-of-use assets of $395.6 million . The Company recognized an adjustment to retained earnings upon adoption of $5.0 million , net of tax of $1.7 million , primarily related to an impairment resulting from an unfavorable differential between lease payments to be made and sublease rentals to be received on certain leases. The remaining difference of $50.7 million between the recognized operating lease obligation and the right-of-use assets related to the derecognition of certain assets and liabilities recorded in accordance with U.S. GAAP that had been applied prior to the adoption of ASC 842, primarily $43.3 million of accrued rent payments. Lease-related reserves for lease incentives, closed restaurants and unfavorable leaseholds were also derecognized. The accounting for the Company's existing finance leases upon adoption of ASC 842 remained substantially unchanged. Adoption of ASC 842 had no significant impact on the Company's cash flows from operations or its results of operations and did not impact any covenant related to the Company's long-term debt. The Company implemented internal controls necessary to ensure compliance with the accounting and disclosure requirements of ASC 842. See Note 5 for the required disclosures related to the Company's leasing activities. Additional new accounting guidance became effective for the Company as of the beginning of fiscal 2019 that the Company reviewed and concluded was either not applicable to its operations or had no material effect on its consolidated financial statements in the current or future fiscal years. Newly Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued new guidance on the measurement of credit losses on financial instruments. The new guidance will replace the incurred loss methodology of recognizing credit losses on financial instruments that is currently required with a methodology that estimates the expected credit loss on financial instruments and reflects the net amount expected to be collected on the financial instrument. Application of the new guidance may result in the earlier recognition of credit losses as the new methodology will require entities to consider forward-looking information in addition to historical and current information used in assessing incurred losses. The Company will adopt the new guidance on a modified retrospective basis beginning with its first fiscal quarter of 2020. In preparation for the adoption, the Company has established the methodology it will use to estimate expected credit losses. Based on that methodology, the Company estimates that upon adoption, it will record an increase to its allowance for credit losses of less than $1 million, with an offsetting decrease to retained earnings, net of tax impact. In August 2018, the FASB issued guidance designed to improve the effectiveness of disclosures by removing, modifying and adding disclosures related to fair value measurements. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2020; early adoption in any interim period after issuance of the new guidance is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In August 2018, the FASB issued new guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance for capitalizing implementation cost incurred to develop or obtain internal-use software. The guidance also provides presentation and disclosure requirements for such capitalized costs. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2020. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In December 2019, the FASB issued new guidance intended to simplify the accounting for income taxes, change the accounting for certain income tax transactions, and make other minor changes. The Company will be required to adopt the new guidance beginning with its first fiscal quarter of 2021; early adoption in any interim period after issuance of the new guidance is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements, but does not expect this standard to have a material effect on its financial statements. The Company does not intend to adopt the standard early. The Company reviewed all other newly issued accounting pronouncements and concluded that they either are not applicable to the Company's operations or that no material effect is expected on the Company's financial statements as a result of future adoption. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Property and Equipment Depreciable Lives | The general ranges of depreciable and amortizable lives are as follows: Category Depreciable Life Buildings and improvements 25 to 40 years Leaseholds and improvements Shorter of primary lease term or between three to 40 years Equipment and fixtures Three to five years Internal-use software Three to 10 years Properties under finance leases Primary lease term or remaining primary lease term |
Fair Value of Financial Instruments | The fair values of non-current financial instruments, determined based on Level 2 inputs, are shown in the following table: December 31, 2019 December 31, 2018 (In millions) Face value of Long-term debt $ 1,300.0 $ 1,283.8 Fair value of Long-term debt $ 1,326.3 $ 1,280.9 |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our franchise revenue by major type for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (In thousands) Franchise Revenue: Royalties $ 302,169 $ 311,568 $ 297,817 Advertising fees 283,015 268,294 234,165 Pancake and waffle dry mix sales and other 53,973 52,108 50,538 Franchise and development fees 12,029 11,964 11,898 Total franchise revenue $ 651,186 $ 643,934 $ 594,418 |
Schedule of Changes in Deferred Revenue | Changes in the Company's contract liability for deferred franchise revenue during the year ended December 31, 2019 were as follows: Deferred Franchise Revenue (short- and long-term) (In thousands) Balance at December 31, 2018 $ 74,695 Recognized as revenue during the year ended December 31, 2019 (11,350 ) Fees deferred during the year ended December 31, 2019 3,685 Balance at December 31, 2019 $ 67,030 |
Schedule of Remaining Performance Obligations | The balance of deferred franchise revenue as of December 31, 2019 is expected to be recognized as follows: (In thousands) 2020 $ 10,086 2021 7,862 2022 7,337 2023 6,765 2024 6,074 Thereafter 28,906 Total $ 67,030 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Receivables and Allowance for Doubtful Accounts | The following table summarizes the activity in the allowance for doubtful accounts and notes receivable: Allowance for Doubtful Accounts (In millions) Balance at December 31, 2016 $ 3.1 Provision 20.3 Charge-offs (1.2 ) Balance at December 31, 2017 22.2 Provision 10.3 Charge-offs (15.3 ) Balance at December 31, 2018 17.2 Provision (0.4 ) Charge-offs (5.0 ) Recoveries (0.5 ) Balance at December 31, 2019 $ 11.3 4. Receivables 2019 2018 (In millions) Accounts receivable $ 60.8 $ 63.0 Gift card receivables 46.7 47.9 Notes receivable 28.9 28.9 Financing receivables: Equipment leases receivable 56.3 65.8 Direct financing leases receivable 34.0 44.9 Franchise fee notes receivable 0.2 0.2 Other 7.3 7.1 234.2 257.8 Less: allowance for doubtful accounts and notes receivable (11.3 ) (17.2 ) 222.9 240.6 Less: current portion (136.9 ) (137.5 ) Long-term receivables $ 86.0 $ 103.1 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment by category is as follows: 2019 2018 (In millions) Leaseholds and improvements $ 235.4 $ 255.7 Equipment and fixtures 95.4 90.1 Properties under finance lease 100.5 100.3 Buildings and improvements 56.6 57.9 Land 55.9 56.4 Construction in progress 4.7 3.7 Property and equipment, gross 548.5 564.1 Less: accumulated depreciation and amortization (332.1 ) (323.8 ) Property and equipment, net $ 216.4 $ 240.3 |
Goodwill - (Tables)
Goodwill - (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The significant majority of the Company's goodwill arose from the November 29, 2007 acquisition of Applebee's. Changes in the carrying amount of goodwill for the years ended December 31, 2019 , 2018 and 2017 are as follows: Applebee's Franchise Unit Applebee's Company Unit IHOP Franchise Unit Total (In millions) Balance at December 31, 2016 $ 686.6 $ — $ 10.8 $ 697.4 Impairment (358.2 ) — — (358.2 ) Balance at December 31, 2017 328.4 — 10.8 339.2 Business acquisition — 6.1 — 6.1 Balance at December 31, 2018 328.4 6.1 10.8 345.3 Purchase price adjustment related to business acquisition — (1.5 ) — (1.5 ) Balance at December 31, 2019 $ 328.4 $ 4.6 $ 10.8 $ 343.9 Gross and net carrying amounts of goodwill at December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (In millions) Applebee's Franchise Unit $ 686.6 $ (358.2 ) $ 328.4 $ 686.6 $ (358.2 ) $ 328.4 Applebee's Company Unit 4.6 — 4.6 6.1 — 6.1 IHOP Franchise Unit 10.8 — 10.8 10.8 — 10.8 Total $ 702.1 $ (358.2 ) $ 343.9 $ 703.5 $ (358.2 ) $ 345.3 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Other Intangible Assets Roll Forward | Changes in the carrying amount of intangible assets for the years ended December 31, 2019 , 2018 and 2017 are as follows: Not Subject to Amortization Subject to Amortization Tradename Other Franchising Rights Reacquired Franchise Rights Leaseholds Total (In millions) Balance at December 31, 2016 $ 652.4 $ 2.0 $ 109.0 $ — $ — $ 763.4 Impairment (173.4 ) — — — — (173.4 ) Amortization expense — — (10.0 ) — — (10.0 ) Additions — 0.4 — — 2.4 2.8 Balance at December 31, 2017 479.0 2.4 99.0 — 2.4 582.8 Amortization expense — — (10.0 ) (0.1 ) (0.0 ) (10.1 ) Additions — 0.3 — 11.6 1.3 13.2 Balance at December 31, 2018 479.0 2.7 89.0 11.5 3.7 585.9 Amortization expense — — (10.0 ) (1.7 ) (0.1 ) (11.8 ) Additions — 0.5 — — 0.5 1.0 Balance at December 31, 2019 $ 479.0 $ 3.2 $ 79.0 $ 9.8 $ 4.1 $ 575.1 |
Schedule of Finite-Lived Intangible Assets by Major Class | Gross and net carrying amounts of intangible assets subject to amortization at December 31, 2019 and 2018 are as follows: December 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (In millions) Franchising rights $ 200.0 $ (121.0 ) $ 79.0 $ 200.0 $ (111.0 ) $ 89.0 Reacquired Franchise Rights 11.6 (1.8 ) 9.8 11.6 (0.1 ) 11.5 Leaseholds 4.2 (0.1 ) 4.1 $ 3.7 (0.0 ) 3.7 Total $ 215.8 $ (122.9 ) $ 92.9 $ 215.3 $ (111.1 ) $ 104.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Face-value maturities of long-term debt for each of the next five years, assuming the Company's leverage ratio remains less than 5.25x, are as follows: (In millions) 2020 $ — 2021 — 2022 — 2023 — 2024 700.0 Thereafter 600.0 Total $ 1,300.0 |
Schedule of Long-Term Debt Components | Long-term debt consists of the following components: 2019 2018 (In millions) Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I $ 700.0 $ — Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II 600.0 — Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 — 1,283.8 Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 — 25.0 Class A-2-I and A-2-II (2019) and Class A-2 (2018) Note debt issuance costs (11.8 ) (9.7 ) Long-term debt, net of debt issuance costs 1,288.2 1,299.1 Current portion of long-term debt — (25.0 ) Long-term debt $ 1,288.2 $ 1,274.1 |
Financing Obligations (Tables)
Financing Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Sale Leaseback Transactions | As of December 31, 2019 , future minimum lease payments under financing obligations during the initial terms of the leases related to the sale-leaseback transactions are as follows: Fiscal Years (In millions) 2020 (1) $ 5.6 2021 5.1 2022 5.1 2023 5.0 2024 (1) 5.7 Thereafter 44.8 Total minimum lease payments 71.3 Less: interest (32.8 ) Total financing obligations 38.5 Less: current portion (2) (0.8 ) Long-term financing obligations $ 37.7 ____________________________________________________________________________________ (1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in 2020 and 2024. (2) Included in current maturities of finance lease and financing obligations on the consolidated balance sheet. |
Lease Disclosures (Tables)
Lease Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | |
Schedule of Lease Cost | The Company's lease cost for the year ended December 31, 2019 was as follows: Year ended December 31, 2019 Finance lease cost: (In millions) Amortization of right-of-use assets $ 5.3 Interest on lease liabilities 7.7 Operating lease cost 106.2 Variable lease cost 2.7 Short-term lease cost 0.0 Sublease income (110.9 ) Lease cost $ 11.0 |
Schedule of Operating Lease Liability Future Maturity | Future minimum lease payments under noncancelable leases as lessee as of December 31, 2019 were as follows: Finance Leases Operating Leases (In millions) 2020 $ 19.8 $ 97.4 2021 16.4 81.1 2022 14.7 73.4 2023 11.6 60.6 2024 9.4 54.9 Thereafter 55.7 173.0 Total minimum lease payments 127.6 540.4 Less: interest/imputed interest (37.3 ) (108.6 ) Total obligations 90.3 431.8 Less: current portion (12.9 ) (72.8 ) Long-term lease obligations $ 77.4 $ 359.0 |
Schedule of Lease Payments | , the Company made the following cash payments for leases: Year ended December 31, 2019 (In millions) Principal payments on finance lease obligations $ 13.6 Interest payments on finance lease obligations $ 7.7 Payments on operating leases $ 91.9 Variable lease payments $ 2.5 |
Schedule of Operating Lease Income | The Company's income from operating leases for the year ended December 31, 2019 was as follows: Year ended December 31, 2019 (In millions) Minimum lease payments $ 102.8 Variable lease income 11.5 Total operating lease income $ 114.3 |
Schedule of Future Minimum Payments as a Lessor Under Operating Leases | Future minimum payments to be received as lessor under noncancelable operating leases as of December 31, 2019 were as follows: (In millions) 2020 $ 108.3 2021 102.6 2022 99.6 2023 95.2 2024 86.5 Thereafter 214.5 Total minimum rents receivable $ 706.7 |
Schedule of Direct Finance Lease Income | The Company's income from direct financing leases at December 31, 2019 was as follows: Year ended December 31, 2019 (In millions) Interest income $ 5.0 Variable lease income 1.3 Total operating lease income $ 6.3 |
Schedule of Future Minimum Payments as a Lessor Under Direct Financing Leases | Future minimum payments to be received as lessor under noncancelable direct financing leases as of December 31, 2019 were as follows: (In millions) 2020 $ 14.6 2021 11.5 2022 8.2 2023 3.6 2024 1.3 Thereafter 2.5 Total minimum rents receivable 41.7 Less: unearned income (7.7 ) Total net investment in direct financing leases 34.0 Less: current portion (11.0 ) Long-term investment in direct financing leases $ 23.0 |
Schedule of Future Minimum Payments for Capital and Operating Leases | The following are minimum future lease payments on noncancelable leases as lessee at December 31, 2018 : Capital Leases Operating Leases (In millions) 2019 $ 21.0 $ 91.2 2020 (1) 19.3 92.8 2021 16.2 75.7 2022 14.3 67.6 2023 11.6 55.2 Thereafter 63.4 210.6 Total minimum lease payments 145.8 $ 593.0 Less: interest (44.6 ) Capital lease obligations 101.2 Less: current portion (1) (13.4 ) Long-term capital lease obligations $ 87.8 ______________________________________________________ (1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in fiscal 2020. (2) Included in current maturities of capital lease and financing obligations on the consolidated balance sheet. |
Schedule of Future Minimum Rents to Be Received on Capital and Operating Leases | The minimum future lease payments shown above have not been reduced by the following future minimum rents to be received on noncancelable subleases and leases of owned property at December 31, 2018 : Direct Financing Leases Operating Leases (In millions) 2019 $ 16.2 $ 105.9 2020 (1) 14.8 106.3 2021 11.7 100.2 2022 8.2 96.2 2023 3.5 91.8 Thereafter 2.9 271.8 Total minimum rents receivable $ 57.3 $ 772.2 ______________________________________________________ (1) Due to the varying closing date of the Company's fiscal year, 13 monthly payments will be made in fiscal 2020. |
Direct financing leases receivable | |
Operating Leased Assets [Line Items] | |
Leases Receivable | The following is the Company's net investment in direct financing lease receivables: December 31, 2018 (In millions) Total minimum rents receivable $ 57.3 Less: unearned income (12.4 ) Net investment in direct financing leases receivable 44.9 Less: current portion (11.2 ) Long-term direct financing leases receivable $ 33.7 |
Net investment equipment lease | |
Operating Leased Assets [Line Items] | |
Leases Receivable | The following is the Company's net investment in equipment leases receivable: December 31, 2018 (In millions) Total minimum leases receivable $ 89.9 Less: unearned income (24.1 ) Net investment in equipment leases receivable 65.8 Less: current portion (8.5 ) Long-term equipment leases receivable $ 57.3 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared | Dividends recorded during the fiscal years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (In millions) Dividends declared from retained earnings $ (48.1 ) $ — $ (52.6 ) Dividends declared from additional paid-in capital $ — $ (44.7 ) $ (17.7 ) During the fiscal years ended December 31, 2019 , 2018 and 2017 , the Company declared and paid dividends on common stock as follows: Year ended December 31, 2019 Declaration Date Payment Date Dividends declared per share Dividends paid per share Total dividends paid (1) (In millions) Payment of prior year declaration (3) January 4, 2019 — $ 0.63 $ 11.4 First quarter February 20, 2019 April 5, 2019 $ 0.69 0.69 12.5 Second quarter May 13, 2019 July 12, 2019 0.69 0.69 12.2 Third quarter August 1, 2019 October 4, 2019 0.69 0.69 11.8 Fourth quarter October 8, 2019 (2) 0.69 — — Total $ 2.76 $ 2.70 $ 47.9 Year ended December 31, 2018 Payment of prior year declaration (4) January 5, 2018 — $ 0.97 $ 17.7 First quarter February 14, 2018 April 6, 2018 $ 0.63 0.63 11.5 Second quarter May 14, 2018 July 6, 2018 0.63 0.63 11.4 Third quarter August 2, 2018 October 5, 2018 0.63 0.63 11.4 Fourth quarter October 6, 2018 (3) 0.63 — — Total $ 2.52 $ 2.86 $ 52.0 Year ended December 31, 2017 Payment of prior year declaration (5) January 6, 2017 $ — $ 0.97 $ 17.5 First quarter February 22, 2017 April 7, 2017 $ 0.97 0.97 17.5 Second quarter May 15, 2017 July 7, 2017 0.97 0.97 17.5 Third quarter August 10, 2017 October 6, 2017 0.97 0.97 17.8 Fourth quarter October 6, 2017 (4) 0.97 — — Total $ 3.88 $ 3.88 $ 70.3 (1) Includes dividend equivalents paid on restricted stock units (2) The fourth quarter 2019 dividend of $11.7 million was paid on January 10, 2020. (3) The fourth quarter 2018 dividend of $11.4 million was paid on January 4, 2019. (4) The fourth quarter 2017 dividend of $17.7 million was paid on January 5, 2018. (5) The fourth quarter 2016 dividend of $17.5 million was paid on January 6, 2017. |
Schedule of Repurchase Agreements | A summary of shares repurchased under the 2019 Repurchase Program and the 2015 Repurchase Program, during the year ended December 31, 2019 and cumulatively for each program, is as follows: Shares Cost of shares (In millions) 2019 Repurchase Program: Repurchased during the year ended December 31, 2019 1,237,698 $ 103.3 Cumulative (life-of-program) repurchases 1,237,698 $ 103.3 Remaining dollar value of shares that may be repurchased n/a $ 96.7 2015 Repurchase Program: Repurchased during the year ended December 31, 2019 110,499 $ 8.4 Cumulative (life-of-program) repurchases 1,589,995 $ 126.2 Remaining dollar value of shares that may be repurchased n/a n/a |
Closure and Other Impairment _2
Closure and Other Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Schedule of Impairment and Closure Charges | Closure and other impairment charges for the years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (In millions) Closure charges $ 1.5 $ 2.0 $ 3.9 Long-lived tangible asset impairment — 0.1 0.1 Total closure and impairment charges $ 1.5 $ 2.1 $ 4.0 |
Stock-Based Incentive Plans (Ta
Stock-Based Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes the Company's stock-based compensation expense included as a component of general and administrative expenses in the consolidated financial statements: Year Ended December 31, 2019 2018 2017 (In millions) Total stock-based compensation expense: Equity classified awards expense $ 10.9 $ 10.6 $ 10.9 Liability classified awards expense (credit) 3.2 3.1 (1.0 ) Total pretax stock-based compensation expense 14.1 13.7 9.9 Book income tax benefit (3.5 ) (3.5 ) (3.8 ) Total stock-based compensation expense, net of tax $ 10.6 $ 10.2 $ 6.1 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following summarizes the assumptions used in estimating the fair values: 2018 2017 Risk free interest rate 2.5 % 1.6 % Weighted average historical volatility 34.4 % 30.0 % Dividend yield 3.4 % 9.6 % Expected years until exercise 3.0 3.4 Weighted average fair value of options granted $ 9.79 $ 3.07 Weighted average fair value of restricted stock units granted $ 53.72 $ 10.19 The Company granted 132,832 stock options during the year ended December 31, 2019 for which the fair value was estimated using a Black-Scholes option pricing model. The following table summarizes the assumptions used in the Black-Scholes model: 2019 2018 2017 Risk free interest rate 2.5 % 2.6 % 1.9 % Weighted average historical volatility 30.3 % 26.1 % 22.9 % Dividend yield 2.8 % 3.6 % 7.3 % Expected years until exercise 4.7 4.6 4.5 Weighted average fair value of options granted $ 21.93 $ 11.94 $ 4.31 |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity for the years ended December 31, 2019 , 2018 and 2017 is summarized as follows: Number of Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Millions) Outstanding at December 31, 2016 701,134 $ 80.04 Granted 887,030 48.35 Exercised (64,916 ) 40.59 Forfeited (171,847 ) 65.82 Expired (79,353 ) 87.02 Outstanding at December 31, 2017 1,272,048 61.44 Granted 248,899 69.12 Exercised (74,930 ) 52.43 Forfeited (6,309 ) 68.80 Outstanding at December 31, 2018 1,439,708 63.21 Granted 132,832 98.97 Exercised (211,352 ) 57.36 Forfeited (106,745 ) 72.19 Expired (37,005 ) 93.06 Outstanding at December 31, 2019 1,217,438 $ 66.43 5.7 $ 24.1 Vested and Expected to Vest at December 31, 2019 1,146,329 $ 67.06 5.6 $ 22.0 Exercisable at December 31, 2019 561,872 $ 77.80 3.1 $ 5.9 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Activity in equity classified awards of restricted stock and restricted stock units for the years ended December 31, 2019 , 2018 and 2017 is as follows: Shares of Restricted Stock Weighted Average Grant-Date Per Share Fair Value Restricted Stock Units Weighted Average Grant-Date Per Share Fair Value Outstanding at December 31, 2016 235,472 $ 92.91 34,058 $ 93.95 Granted 216,269 51.89 281,973 22.37 Released (92,968 ) 88.62 (12,683 ) 81.63 Forfeited (83,582 ) 79.52 — — Outstanding at December 31, 2017 275,191 65.97 303,348 28.39 Granted 92,466 69.20 86,990 57.21 Released (74,253 ) 81.07 (15,737 ) 98.54 Forfeited (26,162 ) 61.27 (72 ) 53.49 Outstanding at December 31, 2018 267,242 64.21 374,529 31.05 Granted 75,556 96.86 23,427 95.77 Released (76,962 ) 76.25 (12,347 ) 90.34 Forfeited (41,321 ) 67.20 (27,802 ) 34.53 Outstanding at December 31, 2019 224,515 $ 70.52 357,807 $ 30.35 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The Company has granted cash-settled restricted stock units to certain employees. These instruments are recorded as liabilities at fair value as of the respective period end. Cash-Settled Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 53,766 $ 79.07 Granted 20,989 83.58 Released (462 ) 83.18 Forfeited (10,441 ) 88.70 Outstanding at December 31, 2019 63,852 $ 85.63 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the years ended December 31, 2019 , 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Provision (benefit) for income taxes: (In millions) Current Federal $ 31.2 $ 33.6 $ 42.6 State 6.5 6.4 5.1 Foreign 1.9 2.1 2.9 39.6 42.1 50.6 Deferred Federal (3.8 ) (7.8 ) (131.0 ) State (1.7 ) (4.0 ) (5.1 ) (5.5 ) (11.8 ) (136.1 ) Provision (benefit) for income taxes $ 34.1 $ 30.3 $ (85.6 ) |
Schedule of Effective Income Tax Rate Reconciliation | The provision (benefit) for income taxes differs from the expected federal income tax rates as follows: Year Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % Non-deductibility of goodwill impairment — — (29.3 ) Change in federal tax rate — — 15.5 State and other taxes, net of federal tax benefit 2.8 3.6 0.4 Change in unrecognized tax benefits 1.8 3.3 (0.7 ) Change in valuation allowance 0.5 0.4 0.3 Domestic production activity deduction — — 0.3 Changes in tax rates and state tax laws (0.5 ) (1.6 ) (0.3 ) Change in accounting for excess tax deficiencies/benefits (0.6 ) 0.1 (0.5 ) General business credits (1.3 ) (0.2 ) 0.0 Other 0.9 0.8 (0.7 ) Effective tax rate 24.6 % 27.4 % 20.0 % |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets (liabilities) consisted of the following components: 2019 2018 (In millions) Employee compensation $ 9.2 $ 9.0 Revenue recognition 32.8 34.3 Other 5.9 16.8 Deferred tax assets 47.9 60.1 Valuation allowance (1.5 ) (0.4 ) Total deferred tax assets after valuation allowance 46.4 59.7 Recognition of franchise and equipment sales (13.7 ) (16.8 ) Capitalization and depreciation (1) (130.8 ) (139.2 ) Acquisition financing costs — (0.6 ) Basis of property and equipment — (8.1 ) Other (0.4 ) (0.8 ) Deferred tax liabilities (144.9 ) (165.5 ) Net deferred tax liabilities $ (98.5 ) $ (105.8 ) ____________________________ (1) Primarily related to the 2007 Applebee's acquisition. |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2019 2018 2017 Unrecognized tax benefit as of January 1 $ 5.2 $ 5.9 $ 3.9 Changes for tax positions of prior years 2.1 3.8 2.8 Increases for tax positions related to the current year 0.5 0.4 0.6 Decreases relating to settlements and lapsing of statutes of limitations (0.2 ) (4.9 ) (1.4 ) Unrecognized tax benefit as of December 31 $ 7.6 $ 5.2 $ 5.9 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of the Company's basic and diluted net income (loss) per share is as follows: Year Ended December 31, 2019 2018 2017 (In thousands, except per share data) Numerator for basic and diluted income (loss) per common share: Net income (loss) $ 104,346 $ 80,354 $ (342,750 ) Less: Net (income) loss allocated to unvested participating restricted stock (3,532 ) (2,711 ) 6,768 Net income (loss) available to common stockholders - basic 100,814 77,643 (335,982 ) Effect of unvested participating restricted stock 33 16 — Numerator - net income (loss) available to common shareholders - diluted $ 100,847 $ 77,659 $ (335,982 ) Denominator: Weighted average outstanding shares of common stock - basic 16,934 17,533 17,725 Effect of dilutive securities: Stock options (1) 311 256 15 Weighted average outstanding shares of common stock - diluted 17,245 17,789 17,740 Net income (loss) per common share: Basic $ 5.95 $ 4.43 $ (18.96 ) Diluted $ 5.85 $ 4.37 $ (18.96 ) |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | Preliminary Allocation Adjustments Final Allocation (In millions) Reacquired franchise rights $ 11.6 $ — $ 11.6 Equipment and fixtures 10.0 — 10.0 Inventory 1.4 — 1.4 Deferred income taxes — 1.5 1.5 Total identifiable assets acquired 23.0 1.5 24.5 Above-market leaseholds, net (6.5 ) — (6.5 ) Other liabilities (1.0 ) — (1.0 ) Net identifiable assets acquired 15.5 1.5 17.0 Goodwill 6.1 (1.5 ) 4.6 Consideration transferred $ 21.6 $ — $ 21.6 In conjunction with the acquisition, the Company assumed finance lease obligations and related property under finance leases of $9.1 million . The Company also entered into new finance leases totaling $28.1 million |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information on segments and a reconciliation of gross profit to income before income tax provision is as follows: Year Ended December 31, 2019 2018 2017 Revenues (In millions) Franchise operations $ 651.2 $ 643.9 $ 594.4 Rental operations 120.7 121.9 121.4 Company restaurants 131.2 7.1 7.5 Financing operations 7.1 8.0 8.4 Total $ 910.2 $ 780.9 $ 731.7 Gross profit (loss), by segment Franchise operations $ 338.4 $ 313.3 $ 300.4 Rental operations 29.9 31.2 30.8 Company restaurants 8.0 1.2 (0.3 ) Financing operations 6.5 7.4 7.8 Total gross profit 382.8 353.1 338.7 Corporate and unallocated expenses, net (244.3 ) (242.5 ) (767.0 ) Income (loss) before income taxes $ 138.5 $ 110.6 $ (428.3 ) Interest expense Rental operations $ 7.7 $ 9.2 $ 10.5 Company restaurants 2.1 0.1 0.2 Corporate 60.4 61.7 62.0 Total $ 70.2 $ 71.0 $ 72.7 Depreciation and amortization Franchise operations $ 10.3 $ 10.5 $ 10.8 Rental operations 13.4 11.7 12.0 Company restaurants 6.4 0.4 0.1 Corporate 12.4 9.6 7.7 Total $ 42.5 $ 32.2 $ 30.6 Impairment of goodwill and intangible assets, closure and other impairment charges Franchise operations $ — $ — $ 531.6 Company restaurants 1.5 2.1 4.0 Total $ 1.5 $ 2.1 $ 535.6 Capital expenditures Franchise operations $ 0.6 $ — $ — Company restaurants $ 3.2 $ — $ 0.1 Corporate 15.6 14.3 13.3 Total $ 19.4 $ 14.3 $ 13.4 Goodwill (franchise segment) $ 343.9 $ 345.3 $ 339.2 Total assets Franchise operations $ 1,116.2 $ 1,152.1 $ 1,188.0 Rental operations 503.8 255.6 278.8 Company restaurants 134.3 66.5 — Financing operations 72.0 73.7 87.5 Corporate 223.2 226.8 181.3 Total $ 2,049.5 $ 1,774.7 $ 1,735.6 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Revenues Gross Profit Net Income (Loss) Net Income Per Share— Basic (1) Net Income Per Share— Diluted (1) (In thousands, except per share amounts) 2019 1 st Quarter $ 237,182 $ 102,571 $ 31,643 $ 1.76 $ 1.73 2 nd Quarter 228,080 94,855 21,390 1.20 1.18 3 rd Quarter 217,405 89,720 23,917 1.38 1.36 4 th Quarter 227,511 95,668 27,396 1.61 1.59 2018 1 st Quarter $ 188,163 $ 83,500 $ 17,073 $ 0.93 $ 0.92 2 nd Quarter 184,471 78,590 12,713 0.70 0.69 3 rd Quarter 194,099 92,626 23,587 1.31 1.29 4 th Quarter 214,198 98,371 26,981 1.49 1.47 ______________________________________________________________________________________________________ (1) The quarterly amounts of earnings per share may not add to the full year amount as each quarterly calculation is discrete from the full-year calculation. |
The Company (Details)
The Company (Details) | Dec. 31, 2019RestaurantCountryrestaurant_conceptstateTerritory |
Franchisor Disclosure [Line Items] | |
Number of restaurant concepts | restaurant_concept | 2 |
IHOP | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,841 |
Number of states in which entity operates | state | 50 |
Number of territories in which entity operates | Territory | 3 |
Number of countries in which entity operates | Country | 13 |
IHOP | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,680 |
IHOP | Licensing Agreements | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 161 |
Applebee's | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,787 |
Number of states in which entity operates | state | 50 |
Number of territories in which entity operates | Territory | 2 |
Number of countries in which entity operates | Country | 12 |
Applebee's | Franchised | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,718 |
Applebee's | Licensing Agreements | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 69 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)RestaurantFranchiseeCountrysegmentrevenue_categoryTerritory | Dec. 31, 2018USD ($)RestaurantFranchisee | Dec. 31, 2017USD ($)RestaurantFranchisee |
Concentration Risk [Line Items] | ||||
Number of weeks in fiscal year | 364 days | 364 days | 364 days | |
Cash and cash equivalents | $ 116,043 | $ 137,164 | ||
Restricted cash included in other current assets | 40,732 | 48,515 | ||
Non-current restricted cash | $ 15,700 | 14,700 | ||
Number of reporting units | segment | 3 | |||
Category of revenue categories | revenue_category | 4 | |||
Advertising expense | $ 6,100 | 300 | $ 300 | |
Number of operating segments | segment | 5 | |||
Number of reporting segments | segment | 4 | |||
Operating lease obligations | $ 431,800 | |||
Operating lease right-of-use assets | 366,931 | |||
Adoption of ASC 842 | $ 5,030 | |||
Income tax provision | $ 34,127 | 30,254 | $ (85,559) | |
Building improvements | Minimum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 25 years | |||
Building improvements | Maximum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 40 years | |||
Leaseholds and improvements | Minimum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 3 years | |||
Leaseholds and improvements | Maximum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 40 years | |||
Equipment and fixtures | Minimum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 3 years | |||
Equipment and fixtures | Maximum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 5 years | |||
Internal Use Software | Minimum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 3 years | |||
Internal Use Software | Maximum | ||||
Concentration Risk [Line Items] | ||||
Useful life of property and equipment | 10 years | |||
Prepaid Advertising and Gift Cards | ||||
Concentration Risk [Line Items] | ||||
Cash and cash equivalents | $ 56,600 | 52,200 | ||
Held in Trust Deposits | ||||
Concentration Risk [Line Items] | ||||
Restricted cash included in other current assets | 38,400 | 42,300 | ||
Held for Advertising Activity Deposits | ||||
Concentration Risk [Line Items] | ||||
Cash and cash equivalents | $ 2,300 | |||
Restricted cash included in other current assets | $ 6,200 | |||
Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 1,787 | |||
Number of territories in which entity operates | Territory | 2 | |||
Number of countries in which entity operates | Country | 12 | |||
Applebee's | Minimum | ||||
Concentration Risk [Line Items] | ||||
Operating lease, term of contract | 10 years | |||
Operating lease, renewal term | 5 years | |||
Applebee's | Maximum | ||||
Concentration Risk [Line Items] | ||||
Operating lease, term of contract | 20 years | |||
Operating lease, renewal term | 20 years | |||
IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 1,841 | |||
Operating lease, renewal term | 5 years | |||
Number of territories in which entity operates | Territory | 3 | |||
Number of countries in which entity operates | Country | 13 | |||
IHOP | Minimum | ||||
Concentration Risk [Line Items] | ||||
Operating lease, term of contract | 20 years | |||
IHOP | Maximum | ||||
Concentration Risk [Line Items] | ||||
Operating lease, term of contract | 25 years | |||
Franchised | Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 1,718 | |||
Franchised | IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 1,680 | |||
Company Operated Excluding Restaurants Reacquired to be Refranchised | Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 23 | |||
Company Operated Excluding Restaurants Reacquired to be Refranchised | IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 10 | |||
Franchised Units or Licensing Agreements | IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 1,841 | |||
Entity Operated Units | Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants | Restaurant | 69 | 69 | ||
Revenue from Rights Concentration Risk | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Concentration risk by percentage | 26.40% | |||
Revenue from Rights Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | Franchisee | 0 | 0 | 0 | |
Concentration risk by percentage | 10.60% | 11.90% | ||
Revenue from Rights Concentration Risk | Sales Revenue, Net | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Concentration risk by percentage | 17.40% | 19.80% | 19.30% | |
Revenue from Rights Concentration Risk | Accounts Receivable | Largest Franchisees | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | Franchisee | 2 | |||
Number of restaurants | Restaurant | 874 | |||
Net accounts receivable | $ 14,400 | $ 17,500 | ||
Revenue from Rights Concentration Risk | Accounts Receivable | Largest Franchisees | Minimum | ||||
Concentration Risk [Line Items] | ||||
Number of restaurants per franchisee | Restaurant | 400 | |||
Revenue from Rights Concentration Risk | Accounts Receivable | Largest Franchisees | Applebee's | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | Franchisee | 1 | |||
Revenue from Rights Concentration Risk | Accounts Receivable | Largest Franchisees | IHOP | ||||
Concentration Risk [Line Items] | ||||
Number of franchisees | Franchisee | 1 | |||
Franchisor - Advertising Revenue | ||||
Concentration Risk [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 283,015 | $ 268,294 | $ 234,165 | |
Retained Earnings | ||||
Concentration Risk [Line Items] | ||||
Adoption of ASC 842 | 5,030 | |||
Accounting Standards Update 2016-02 | ||||
Concentration Risk [Line Items] | ||||
Operating lease obligations | 453,000 | |||
Operating lease right-of-use assets | 395,600 | |||
Income tax provision | 1,700 | |||
Derecognition of certain liabilities and assets | 50,700 | |||
Accrued rent | (43,300) | |||
Accounting Standards Update 2016-02 | Retained Earnings | ||||
Concentration Risk [Line Items] | ||||
Adoption of ASC 842 | $ 5,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 1,300 | $ 1,283.8 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 1,326.3 | $ 1,280.9 |
Revenue Disclosures - Disaggreg
Revenue Disclosures - Disaggregation of Franchise Revenue by Major Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Franchisor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | $ 651,186 | $ 643,934 | $ 594,418 |
Royalties | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 302,169 | 311,568 | 297,817 |
Advertising fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 283,015 | 268,294 | 234,165 |
Pancake and waffle dry mix sales and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | 53,973 | 52,108 | 50,538 |
Franchise and development fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer, excluding assessed tax | $ 12,029 | $ 11,964 | $ 11,898 |
Revenue Disclosures - (Details)
Revenue Disclosures - (Details) - Receivables From Franchise Revenue Transactions [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and unbilled receivables | $ 63.5 | $ 62.6 |
Billed and unbilled receivables, accumulated allowance for credit loss | $ 0.7 | $ 4.6 |
Revenue Disclosures - Changes i
Revenue Disclosures - Changes in the Company's contract liability for deferred franchise and development fees (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2018 | $ 74,695 |
Recognized as revenue during the year ended December 31, 2019 | (11,350) |
Fees deferred during the year ended December 31, 2019 | 3,685 |
Balance at December 31, 2019 | $ 67,030 |
Revenue Disclosures - Deferred
Revenue Disclosures - Deferred revenue expected to be recognized (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 67,030 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 10,086 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,862 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 7,337 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 6,074 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied | $ 28,906 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, expected timing |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | |||||
Accounts receivable | $ 60,800 | $ 63,000 | |||
Gift card receivables | 46,700 | 47,900 | |||
Notes receivable | 28,900 | 28,900 | |||
Other | 7,300 | 7,100 | |||
Receivables | 234,200 | 257,800 | |||
Less: allowance for doubtful accounts and notes receivable | $ (17,200) | $ (22,200) | $ (22,200) | (11,300) | (17,200) |
Receivables, net | 222,900 | 240,600 | |||
Less: current portion | (136,869) | (137,504) | |||
Long-term receivables, net | 85,999 | 103,102 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning of Period | (17,200) | (22,200) | (3,100) | ||
Provision | (400) | 10,300 | 20,300 | ||
Charge-offs | (5,000) | (15,300) | (1,200) | ||
Recoveries | (500) | ||||
Ending of Period | $ (11,300) | $ (17,200) | $ (22,200) | ||
Receivables interest rate, percentage | 5.10% | 4.80% | |||
Delinquent financing receivables | 100 | 100 | |||
Financing receivables, allowance for doubtful accounts | $ 100 | $ 100 | |||
Minimum | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Notes receivable, term | 2 years | ||||
Franchise fee note lease term | 5 years | ||||
Maximum | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Notes receivable, term | 10 years | ||||
Franchise fee note lease term | 8 years | ||||
IHOP | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Average interest rate | 9.90% | 9.90% | |||
Franchise fee note average interest rate | 5.00% | 5.60% | |||
Equipment leases receivable | |||||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | |||||
Financing receivable | $ 56,300 | $ 65,800 | |||
Direct financing leases receivable | |||||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | |||||
Financing receivable | 34,000 | 44,900 | |||
Franchise fee notes receivable | |||||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current and Noncurrent [Abstract] | |||||
Financing receivable | $ 200 | $ 200 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 548,500 | $ 564,100 | |
Less: accumulated depreciation and amortization | (332,100) | (323,800) | |
Property and equipment, net | 216,420 | 240,264 | |
Depreciation expense on property equipment | 30,800 | 22,100 | $ 20,600 |
Leaseholds and improvements | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 235,400 | 255,700 | |
Equipment and fixtures | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 95,400 | 90,100 | |
Properties under finance lease | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 100,500 | ||
Properties under finance lease | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 100,300 | ||
Less: accumulated depreciation and amortization | (51,100) | (46,200) | |
Buildings and improvements | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 56,600 | 57,900 | |
Land | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 55,900 | 56,400 | |
Construction in progress | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,700 | $ 3,700 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)Restaurant | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Restaurant | Dec. 31, 2016USD ($) | |
Goodwill [Line Items] | |||||
Goodwill | $ 343,862 | $ 339,200 | $ 345,314 | $ 697,400 | |
Gross | $ 702,100 | $ 703,500 | |||
Goodwill, impairment loss | $ 358,200 | 358,200 | |||
Applebee's | |||||
Goodwill [Line Items] | |||||
Number of restaurants | Restaurant | 1,787 | ||||
Goodwill, impairment loss | $ 358,200 | ||||
Entity Operated Units | Applebee's | |||||
Goodwill [Line Items] | |||||
Number of restaurants | Restaurant | 69 | 69 | |||
Goodwill | $ 4,600 | 0 | $ 6,100 | $ 0 | |
Gross | $ 4,600 | $ 6,100 | |||
Goodwill, impairment loss | $ 0 |
Goodwill Carrying Amount of Goo
Goodwill Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 345,314 | $ 339,200 | $ 697,400 | |
Impairment | $ (358,200) | (358,200) | ||
Business acquisition | 6,100 | |||
Purchase price adjustment related to business acquisition | (1,500) | |||
Goodwill, ending balance | 343,862 | 345,314 | 339,200 | |
Applebee's | ||||
Goodwill [Roll Forward] | ||||
Impairment | (358,200) | |||
Applebee's | Franchised | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 328,400 | 328,400 | 686,600 | |
Impairment | (358,200) | |||
Business acquisition | 0 | |||
Purchase price adjustment related to business acquisition | 0 | |||
Goodwill, ending balance | 328,400 | 328,400 | 328,400 | |
Applebee's | Entity Operated Units | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 6,100 | 0 | 0 | |
Impairment | 0 | |||
Business acquisition | 6,100 | |||
Purchase price adjustment related to business acquisition | (1,500) | |||
Goodwill, ending balance | 4,600 | 6,100 | 0 | |
IHOP | Franchised | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 10,800 | 10,800 | 10,800 | |
Impairment | 0 | |||
Business acquisition | 0 | |||
Purchase price adjustment related to business acquisition | 0 | |||
Goodwill, ending balance | $ 10,800 | $ 10,800 | $ 10,800 |
Goodwill - Gross and net carryi
Goodwill - Gross and net carrying amounts of goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||||
Gross | $ 702,100 | $ 703,500 | ||
Accumulated Amortization | (358,200) | (358,200) | ||
Net | 343,862 | 345,314 | $ 339,200 | $ 697,400 |
Franchised | Applebee's | ||||
Goodwill [Line Items] | ||||
Gross | 686,600 | 686,600 | ||
Accumulated Amortization | (358,200) | (358,200) | ||
Net | 328,400 | 328,400 | 328,400 | 686,600 |
Franchised | IHOP | ||||
Goodwill [Line Items] | ||||
Gross | 10,800 | 10,800 | ||
Accumulated Amortization | 0 | 0 | ||
Net | 10,800 | 10,800 | 10,800 | 10,800 |
Entity Operated Units | Applebee's | ||||
Goodwill [Line Items] | ||||
Gross | 4,600 | 6,100 | ||
Accumulated Amortization | 0 | 0 | ||
Net | $ 4,600 | $ 6,100 | $ 0 | $ 0 |
Other Intangible Assets - (Deta
Other Intangible Assets - (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Restaurant | Dec. 31, 2018USD ($)Restaurant | Dec. 31, 2017USD ($)Restaurant | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 92,900 | $ 104,200 | $ 2,400 | ||
Amortization expense 2019 | 11,000 | ||||
Amortization expense 2020 | 10,500 | ||||
Amortization expense 2021 | 10,500 | ||||
Amortization expense 2022 | 10,500 | ||||
Amortization expense 2023 | $ 10,500 | ||||
Weighted average life of intangible assets subject to amortization | 18 years 6 months | 20 years | |||
Impairment | $ 173,400 | ||||
Income tax benefit | $ (34,127) | $ (30,254) | $ 85,559 | ||
Applebee's | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of restaurants | Restaurant | 1,787 | ||||
IHOP | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of restaurants | Restaurant | 1,841 | ||||
Entity Operated Units | Applebee's | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of restaurants | Restaurant | 69 | 69 | |||
Franchised | Applebee's | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of restaurants | Restaurant | 1,718 | ||||
Franchised | IHOP | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of restaurants | Restaurant | 1,680 | ||||
Number of restaurants refranchised | Restaurant | 9 | ||||
Reacquired Franchise Rights | Subject to Amortization | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Additions | $ 11,600 | ||||
Intangible assets, net | $ 9,800 | $ 11,500 | $ 0 | $ 0 | |
Tradename | Not Subject to Amortization | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment | $ 173,400 | ||||
Income tax benefit | $ 65,100 |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Finite lived, beginning of period | $ 104,200 | ||
Total other intangible assets, beginning of period | 585,889 | $ 582,800 | $ 763,400 |
Impairment | (173,400) | ||
Amortization expense | (11,800) | (10,100) | (10,000) |
Additions | 1,000 | 13,200 | 2,800 |
Finite lived, end of period | 92,900 | 104,200 | |
Total other intangible assets, end of period | 575,103 | 585,889 | 582,800 |
Tradename | Not Subject to Amortization | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Indefinite lived, beginning of period | 479,000 | 479,000 | 652,400 |
Impairment | (173,400) | ||
Indefinite lived, end of period | 479,000 | 479,000 | 479,000 |
Other | Not Subject to Amortization | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Indefinite lived, beginning of period | 2,700 | 2,400 | 2,000 |
Additions | 500 | 300 | 400 |
Indefinite lived, end of period | 3,200 | 2,700 | 2,400 |
Franchising Rights | Subject to Amortization | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Finite lived, beginning of period | 89,000 | 99,000 | 109,000 |
Amortization expense | (10,000) | (10,000) | (10,000) |
Finite lived, end of period | 79,000 | 89,000 | 99,000 |
Reacquired Franchise Rights | Subject to Amortization | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Finite lived, beginning of period | 11,500 | 0 | 0 |
Amortization expense | (1,700) | (100) | |
Additions | 11,600 | ||
Finite lived, end of period | 9,800 | 11,500 | 0 |
Leaseholds | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Additions | 1,300 | ||
Leaseholds | Subject to Amortization | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Finite lived, beginning of period | 3,700 | 2,400 | 0 |
Amortization expense | (100) | 0 | |
Additions | 500 | ||
Finite lived, end of period | $ 4,100 | $ 3,700 | $ 2,400 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 215.8 | $ 215.3 | |
Accumulated Amortization | (122.9) | (111.1) | |
Net | 92.9 | 104.2 | $ 2.4 |
Franchising rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 200 | 200 | |
Accumulated Amortization | (121) | (111) | |
Net | 79 | 89 | |
Reacquired Franchise Rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 11.6 | 11.6 | |
Accumulated Amortization | (1.8) | (0.1) | |
Net | 9.8 | 11.5 | |
Leaseholds | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 4.2 | 3.7 | |
Accumulated Amortization | (0.1) | 0 | |
Net | $ 4.1 | $ 3.7 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt Components (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Class A-2-I and A-2-II (2019) and Class A-2 (2018) Note debt issuance costs | $ (11,800) | $ (9,700) |
Long-term Debt | 1,288,200 | 1,299,100 |
Current portion of long-term debt | 0 | (25,000) |
Long-term debt, net, less current maturities | 1,288,248 | 1,274,087 |
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 700,000 | 0 |
Senior note interest rate | 4.194% | |
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 600,000 | 0 |
Senior note interest rate | 4.723% | |
Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 0 | 1,283,800 |
Senior note interest rate | 4.277% | |
Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 0 | $ 25,000 |
Class A-2-I and A-2-II (2019) and Class A-2 (2018) Note debt issuance costs | $ (2,800) | |
Senior note interest rate | 4.93% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2026 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 05, 2019 | |
Debt Instrument [Line Items] | |||||
Rapid amortization event | 120.00% | ||||
Manager termination event | 120.00% | ||||
Interest-only debt service coverage ratio, default event | 110.00% | ||||
Gain (loss) on extinguishment of debt | $ (8,276,000) | $ 0 | $ 0 | ||
Amortization of financing costs | 1,200,000 | ||||
Debt issuance costs, gross | 12,900,000 | ||||
Debt issuance costs | 11,800,000 | 9,700,000 | |||
Incurred costs | $ 200,000 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Cash sweeping event | 175.00% | ||||
Letter of Credit | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Letter of Credit | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.15% | ||||
Letter of Credit | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | |||||
Debt Instrument [Line Items] | |||||
Senior note interest rate | 4.194% | ||||
Debt instrument, face amount | $ 700,000,000 | ||||
Ratio of indebtedness to net capital | 457.00% | ||||
Debt instrument, make-whole premium | $ 35,000,000 | ||||
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | Forecast | |||||
Debt Instrument [Line Items] | |||||
Additional interest on fixed rate | 5.00% | ||||
Debt instrument, term | 10 years | ||||
Series 2019-1 4.194% Fixed Rate Senior Secured Notes, Class A-2-I | Forecast | Ten Year United States Treasury Bill Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.15% | ||||
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | |||||
Debt Instrument [Line Items] | |||||
Senior note interest rate | 4.723% | ||||
Debt instrument, face amount | $ 600,000,000 | ||||
Debt instrument, make-whole premium | $ 63,000,000 | ||||
Series 2019-1 4.723% Fixed Rate Senior Secured Notes, Class A-2-II | Forecast | Ten Year United States Treasury Bill Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.64% | ||||
Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 | |||||
Debt Instrument [Line Items] | |||||
Senior note interest rate | 4.277% | ||||
Repayments of debt | $ 1,280,000,000 | ||||
Gain (loss) on extinguishment of debt | (8,300,000) | ||||
Amortization of financing costs | $ 1,400,000 | $ 3,400,000 | $ 3,400,000 | ||
Series 2014-1 4.277% Fixed Rate Senior Secured Notes, Class A-2 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Ratio of indebtedness to net capital | 525.00% | ||||
Series 2019-1 Variable Funding Senior Notes Class A-1 | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 2,700,000 | ||||
Series 2019-1 Variable Funding Senior Notes Class A-1 | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 225,000,000 | ||||
Series 2019-1 Variable Funding Senior Notes Class A-1 | Revolving Credit Facility | Eurodollar | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.15% | ||||
Series 2019-1 Variable Funding Senior Notes Class A-1 | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.15% | ||||
Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 | |||||
Debt Instrument [Line Items] | |||||
Senior note interest rate | 4.93% | ||||
Line of credit facility, current borrowing capacity | $ 222,200,000 | ||||
Repayments of notes payable | 25,000,000 | ||||
Line of credit facility, amount outstanding | $ 25,000,000 | ||||
Debt, weighted average interest rate | 4.88% | ||||
Amortization of financing costs | $ 800,000 | ||||
Debt issuance costs | 2,800,000 | ||||
Series 2018-1 Variable Funding Senior Notes Class A-1, variable interest rate of 4.93% at December 31, 2018 | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, collateral amount | $ 2,800,000 | ||||
Series 2014-1 Variable Funding Senior Notes Class A-1 | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.50% | ||||
Unamortized debt issuance costs | $ 900,000 | ||||
Costs incurred | 1,600,000 | ||||
Deferred finance costs | $ 2,500,000 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 700 |
Thereafter | 600 |
Long-term Debt | $ 1,300 |
Financing Obligations (Details)
Financing Obligations (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2008term_extension_option | Dec. 31, 2020monthly_payment | Dec. 31, 2019USD ($)real_property | May 19, 2008real_property | |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | ||||
2020 | $ 19,800 | |||
2021 | 16,400 | |||
2022 | 14,700 | |||
2023 | 11,600 | |||
2024 | 9,400 | |||
Thereafter | 55,700 | |||
Total minimum lease payments | 127,600 | |||
Less: interest/imputed interest | (37,300) | |||
Total obligations | 90,300 | |||
Less: current portion | (12,900) | |||
Finance lease obligations, less current maturities | $ 77,393 | |||
Sale Leaseback Transaction Agreement for Properties | ||||
Sale Leaseback Transaction [Line Items] | ||||
Parcels of real property under sale leaseback transaction | real_property | 181 | |||
Master Lease Agreement | ||||
Sale Leaseback Transaction [Line Items] | ||||
Parcels of real property under sale leaseback transaction | real_property | 181 | |||
Gross proceeds of sale leaseback transaction | $ 337,200 | |||
Sale leaseback initial term | 20 years | |||
Number of options to extend initial leaseback term | term_extension_option | 4 | |||
Extension period for options to extend sale leaseback initial term (in years) | 5 years | |||
Properties assigned to franchisee or released from lessor | real_property | 155 | |||
Reduction in property and equipment and financing obligations as a result of sales transactions | $ 280,000 | |||
Sale-Leaseback Transactions | ||||
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | ||||
2020 | 5,600 | |||
2021 | 5,100 | |||
2022 | 5,100 | |||
2023 | 5,000 | |||
2024 | 5,700 | |||
Thereafter | 44,800 | |||
Total minimum lease payments | 71,300 | |||
Less: interest/imputed interest | (32,800) | |||
Total obligations | 38,500 | |||
Less: current portion | (800) | |||
Finance lease obligations, less current maturities | $ 37,700 | |||
Forecast | ||||
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | ||||
Number of monthly obligation payments in fiscal year | monthly_payment | 13 |
Lease Disclosures - Narrative (
Lease Disclosures - Narrative (Details) | Dec. 31, 2019restaurant_conceptpropertiesreal_property |
Lessee, Lease, Description [Line Items] | |
Number of company-operated restaurants located on leased real estate properties | properties | 69 |
Lessor, number of leases requiring additional rent payments based on a percentage of restaurant sales | real_property | 175 |
Lessee, number of leases requiring additional rent payments based on a percentage of restaurant sales | real_property | 250 |
Finance lease, weighted average remaining lease term | 8 years 7 months 6 days |
Operating lease, weighted average remaining lease term | 7 years 8 months 12 days |
Finance lease, weighted average discount rate, percent | 10.40% |
Operating lease, weighted average discount rate, percent | 5.70% |
Applebee's | |
Lessee, Lease, Description [Line Items] | |
Number of franchisee-operated restaurants | 1 |
Number of properties leased | 1 |
IHOP | |
Lessee, Lease, Description [Line Items] | |
Number of properties leased | 60 |
Minimum | Applebee's | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Lessee, operating lease, renewal term | 5 years |
Minimum | IHOP | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 1 year |
Maximum | Applebee's | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Lessee, operating lease, renewal term | 20 years |
Maximum | IHOP | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 25 years |
Lessee, operating lease, renewal term | 5 years |
Lease Disclosures - Components
Lease Disclosures - Components of Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of right-of-use assets | $ 5.3 |
Interest on lease liabilities | 7.7 |
Operating lease cost | 106.2 |
Variable lease cost | 2.7 |
Short-term lease cost | 0 |
Sublease income | (110.9) |
Lease cost | $ 11 |
Lease Disclosures - Future Mini
Lease Disclosures - Future Minimum Lease Payments Under Noncancelable Leases as Lessee (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Leases | |
2020 | $ 19,800 |
2021 | 16,400 |
2022 | 14,700 |
2023 | 11,600 |
2024 | 9,400 |
Thereafter | 55,700 |
Total minimum lease payments | 127,600 |
Less: interest/imputed interest | (37,300) |
Total obligations | 90,300 |
Less: current portion | 12,900 |
Long-term lease obligations | 77,393 |
Operating Leases | |
2020 | 97,400 |
2021 | 81,100 |
2022 | 73,400 |
2023 | 60,600 |
2024 | 54,900 |
Thereafter | 173,000 |
Total minimum lease payments | 540,400 |
Less: interest/imputed interest | (108,600) |
Total obligations | 431,800 |
Less: current portion | 72,815 |
Long-term lease obligations | $ 359,025 |
Lease Disclosures - Payment for
Lease Disclosures - Payment for Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Principal payments on finance lease obligations | $ 13.6 |
Interest payments on finance lease obligations | 7.7 |
Payments on operating leases | 91.9 |
Variable lease payments | $ 2.5 |
Lease Disclosures - Component_2
Lease Disclosures - Components of Lease Income (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Minimum lease payments | $ 102.8 |
Variable lease income | 11.5 |
Total operating lease income | $ 114.3 |
Lease Disclosures - Future Mi_2
Lease Disclosures - Future Minimum Payments to be Received as Lessor Under Noncancelable Operating Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 108.3 |
2021 | 102.6 |
2022 | 99.6 |
2023 | 95.2 |
2024 | 86.5 |
Thereafter | 214.5 |
Total minimum rents receivable | $ 706.7 |
Lease Disclosures - Schedule of
Lease Disclosures - Schedule of Income From Direct Financing Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Interest income | $ 5 |
Variable lease income | 1.3 |
Total operating lease income | $ 6.3 |
Lease Disclosures - Future Mi_3
Lease Disclosures - Future Minimum Payments to be Received as Lessor Under Noncancelable Direct Financing Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 14.6 |
2021 | 11.5 |
2022 | 8.2 |
2023 | 3.6 |
2024 | 1.3 |
Thereafter | 2.5 |
Total minimum rents receivable | 41.7 |
Less: unearned income | 7.7 |
Total net investment in direct financing leases | 34 |
Less: current portion | 11 |
Long-term investment in direct financing leases | $ 23 |
Lease Disclosures - Lease Rece
Lease Disclosures - Lease Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Direct financing leases receivable | ||
Operating Leased Assets [Line Items] | ||
Total minimum rents receivable | $ 57.3 | |
Less: unearned income | (12.4) | |
Net investment in direct financing leases receivable | 44.9 | |
Less: current portion | (11.2) | |
Long-term direct financing lease receivable | 33.7 | |
Contingent rental income | 14.3 | $ 14 |
Net investment equipment lease | ||
Operating Leased Assets [Line Items] | ||
Less: current portion | 8.5 | |
Long-term direct financing lease receivable | 57.3 | |
Total minimum leases receivable | 89.9 | |
Less: unearned income | (24.1) | |
Net investment in equipment leases receivables | $ 65.8 |
Lease Disclosures - Future Min
Lease Disclosures - Future Minimum Lease Payments (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020monthly_payment | Dec. 31, 2019USD ($) | |
Capital Leases | ||
2019 | $ 21 | |
2020 | 19.3 | |
2021 | 16.2 | |
2022 | 14.3 | |
2023 | 11.6 | |
Thereafter | 63.4 | |
Total minimum lease payments | 145.8 | |
Less: interest | (44.6) | |
Capital lease obligations | 101.2 | |
Less: current portion | (13.4) | |
Long-term capital lease obligations | 87.8 | |
Operating Leases | ||
2019 | 91.2 | |
2020 | 92.8 | |
2021 | 75.7 | |
2022 | 67.6 | |
2023 | 55.2 | |
Thereafter | 210.6 | |
Total minimum lease payments | $ 593 | |
Forecast | ||
Operating Leases | ||
Number of monthly obligation payments in fiscal year | monthly_payment | 13 |
Lease Disclosures - Future M_2
Lease Disclosures - Future Minimum Lease Rents (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Future Minimum Lease Rents Due [Abstract] | ||||
Asset cost of leased property | $ 89 | $ 89 | ||
Carrying amount on leased property | 58.8 | $ 60 | ||
Contingent rent expense on leases | $ 2.6 | 2.7 | ||
Minimum rent expense on leases | $ 73 | $ 80.8 | ||
Direct Financing Lease, 2019 | $ 16.2 | |||
Direct Financing Lease, 2020 | 14.8 | |||
Direct Financing Lease, 2021 | 11.7 | |||
Direct Financing Lease, 2022 | 8.2 | |||
Direct Financing Lease, 2023 | 3.5 | |||
Thereafter | 2.9 | |||
Total minimum rents receivable | 57.3 | |||
Operating Lease, 2019 | 105.9 | |||
Operating Lease, 2020 | 106.3 | |||
Operating Lease, 2021 | 100.2 | |||
Operating Lease, 2022 | 96.2 | |||
Operating Lease, 2023 | 91.8 | |||
Thereafter | 271.8 | |||
Total minimum rents receivable | $ 772.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Outstanding purchase commitments | $ 115.9 | |
Lease guarantees, future minimum payments due | 40.4 | |
Series 2014-1 Variable Funding Senior Notes Class A-1 | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 2.8 | |
Applebee's | Property Lease Guarantee | ||
Loss Contingencies [Line Items] | ||
Outstanding lease guarantees | $ 257.2 | $ 284.3 |
Stockholders' Deficit - Narrati
Stockholders' Deficit - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 19, 2020 | Oct. 04, 2019 | Jul. 12, 2019 | Apr. 05, 2019 | Jan. 04, 2019 | Oct. 05, 2018 | Jul. 06, 2018 | Apr. 06, 2018 | Jan. 05, 2018 | Oct. 06, 2017 | Jul. 07, 2017 | Apr. 07, 2017 | Jan. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 20, 2019 | Oct. 01, 2015 |
Class of Stock [Line Items] | ||||||||||||||||||
Authorized amount | $ 200,000 | |||||||||||||||||
Dividends paid per common share (in dollars per share) | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.97 | $ 0.97 | $ 0.97 | $ 0.97 | $ 0.97 | $ 2.70 | $ 2.86 | $ 3.88 | |||
Reissuance of treasury stock (in shares) | (285,302) | (167,396) | (281,185) | |||||||||||||||
Reissuance of treasury stock | $ 11,969 | $ 3,928 | $ 2,635 | |||||||||||||||
Treasury Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Reissuance of treasury stock (in shares) | (285,000) | (167,000) | (281,000) | |||||||||||||||
Reissuance of treasury stock | $ 12,490 | $ 6,479 | $ 10,113 | |||||||||||||||
Subsequent Event | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Dividends paid per common share (in dollars per share) | $ 0.76 | |||||||||||||||||
2015 Authorization | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Authorized amount | $ 150,000 |
Stockholders' Deficit - Share R
Stockholders' Deficit - Share Repurchases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Stock repurchased during period, value | $ 111,697 | $ 34,929 | $ 10,003 |
2019 Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (in shares) | 1,237,698 | ||
Stock repurchased during period, value | $ 103,300 | ||
Remaining dollar value of shares that may be repurchased | $ 96,700 | ||
October 2015 Share Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (in shares) | 110,499 | ||
Stock repurchased during period, value | $ 8,400 | ||
Cumulative amount of shares repurchased (in shares) | 1,589,995 | ||
Cumulative payments for repurchase of common stock | $ 126,200 |
Stockholders' Deficit - Schedul
Stockholders' Deficit - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 19, 2020 | Jan. 10, 2020 | Oct. 08, 2019 | Oct. 04, 2019 | Aug. 01, 2019 | Jul. 12, 2019 | May 13, 2019 | Apr. 05, 2019 | Feb. 20, 2019 | Jan. 04, 2019 | Oct. 06, 2018 | Oct. 05, 2018 | Aug. 02, 2018 | Jul. 06, 2018 | May 14, 2018 | Apr. 06, 2018 | Feb. 14, 2018 | Jan. 05, 2018 | Oct. 06, 2017 | Aug. 10, 2017 | Jul. 07, 2017 | May 15, 2017 | Apr. 07, 2017 | Feb. 22, 2017 | Jan. 06, 2017 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Dividends Payable [Line Items] | |||||||||||||||||||||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.97 | $ 0.97 | $ 0.97 | $ 0.97 | $ 2.76 | $ 2.52 | $ 3.88 | ||||||||||||||||||||||
Dividends paid per common share (in dollars per share) | $ 0.69 | $ 0.69 | $ 0.69 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.97 | $ 0.97 | $ 0.97 | $ 0.97 | $ 0.97 | $ 2.70 | $ 2.86 | $ 3.88 | ||||||||||||||||||||||
Payments of dividends | $ 11.4 | $ 17.7 | $ 17.5 | $ 11.8 | $ 12.2 | $ 12.5 | $ 11.4 | $ 11.4 | $ 11.5 | $ 17.5 | $ 17.5 | $ 17.8 | $ 47.9 | $ 52 | $ 70.3 | ||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||||||||||||||||||||||
Dividends paid per common share (in dollars per share) | $ 0.76 | ||||||||||||||||||||||||||||||||||||
Payments of dividends | $ 11.7 |
Stockholders' Deficit Dividends
Stockholders' Deficit Dividends Declared on Common Stock or In Excess (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends Payable [Line Items] | |||
Dividends declared from retained earnings | $ (47,095) | $ (52,234) | |
Dividends declared from additional paid-in capital | $ (44,705) | (17,718) | |
Retained Earnings (Accumulated Deficit) | |||
Dividends Payable [Line Items] | |||
Dividends declared from retained earnings | (48,077) | 0 | (52,641) |
Additional Paid-in Capital | |||
Dividends Payable [Line Items] | |||
Dividends declared from retained earnings | 982 | 407 | |
Dividends declared from additional paid-in capital | $ 0 | $ (44,705) | $ (17,718) |
Closure and Other Impairment _3
Closure and Other Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 1,500 | $ 2,000 | $ 3,900 |
Long-lived tangible asset impairment | 0 | 100 | 100 |
Total closure and impairment charges | 1,487 | 2,107 | $ 3,968 |
IHOP and Applebee's | |||
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | 500 | ||
IHOP | |||
Restructuring Cost and Reserve [Line Items] | |||
Closure charges | $ 1,800 | $ 2,200 |
Stock-Based Incentive Plans Nar
Stock-Based Incentive Plans Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 14, 2019 | May 17, 2016 | May 17, 2011 | Dec. 31, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 14,100 | $ 13,700 | $ 9,900 | ||||
Share-based payment award, options, exercises in period, intrinsic value | $ 6,900 | $ 2,400 | $ 1,400 | ||||
Granted (in shares) | 132,832 | 248,899 | 887,030 | ||||
Restricted stock, granted (in shares) | 20,989 | ||||||
Forfeited (in shares) | 106,745 | 6,309 | 171,847 | ||||
Proceeds from stock options exercised | $ 11,969 | $ 3,928 | $ 2,635 | ||||
Tax benefit realized for tax deduction from option exercises | 1,800 | 600 | 500 | ||||
Liability classified awards (credit) | 3,200 | 3,100 | $ (1,000) | ||||
Employee-related liabilities, current | 23,904 | $ 27,479 | |||||
2019 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Company’s common stock for incentive stock awards | 2,050,000 | ||||||
DineEquity, Inc. 2016 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Company’s common stock for incentive stock awards | 3,750,000 | ||||||
DineEquity, Inc. 2011 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Company’s common stock for incentive stock awards | 1,500,000 | ||||||
IHOP Corp. 2001 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Company’s common stock for incentive stock awards | 4,200,000 | ||||||
Employee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 3,000 | ||||||
Unrecognized compensation cost, recognition period | 1 year 3 months 18 days | ||||||
Employee Stock Option | Officers, Directors, and Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment award, expiration period | 10 years | ||||||
Award vesting period | 3 years | ||||||
Restricted Stock and Restricted Stock Units | Officers, Directors, and Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 15,900 | ||||||
Unrecognized compensation cost, recognition period | 1 year 3 months 18 days | ||||||
Restricted stock, granted (in shares) | 23,427 | 86,990 | 281,973 | ||||
Forfeited (in shares) | 26,670 | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based grants in Period | 25,330 | 350,000 | |||||
Restricted stock, granted (in shares) | 55,245 | 175,000 | |||||
Cash-settled Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 1,600 | $ 800 | |||||
LTIP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Share-based payment arrangement, expense | $ 1,700 | 2,300 | |||||
Employee-related liabilities, current | $ 2,900 | $ 2,400 | |||||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Multiplier for target award | 0.00% | ||||||
Minimum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting share-based awards percentage | 0.00% | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Multiplier for target award | 200.00% | ||||||
Maximum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting share-based awards percentage | 100.00% |
Stock-Based Incentive Plans St
Stock-Based Incentive Plans Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Equity classified awards expense | $ 10.9 | $ 10.6 | $ 10.9 |
Liability classified awards (credit) | 3.2 | 3.1 | (1) |
Total pretax stock-based compensation expense | 14.1 | 13.7 | 9.9 |
Book income tax benefit | (3.5) | (3.5) | (3.8) |
Total stock-based compensation expense, net of tax | $ 10.6 | $ 10.2 | $ 6.1 |
Stock-Based Incentive Plans Equ
Stock-Based Incentive Plans Equity Classified Awards Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk free interest rate | 2.50% | 2.60% | 1.90% |
Weighted average historical volatility | 30.30% | 26.10% | 22.90% |
Dividend yield | 2.80% | 3.60% | 7.30% |
Expected years until exercise | 4 years 8 months 12 days | 4 years 7 months 6 days | 4 years 6 months |
Weighted average fair value of options granted | $ 21.93 | $ 11.94 | $ 4.31 |
Stock-Based Incentive Plans Per
Stock-Based Incentive Plans Performance Based Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.50% | 2.60% | 1.90% |
Weighted average historical volatility | 30.30% | 26.10% | 22.90% |
Dividend yield | 2.80% | 3.60% | 7.30% |
Expected years until exercise | 4 years 8 months 12 days | 4 years 7 months 6 days | 4 years 6 months |
Weighted average fair value of options granted | $ 21.93 | $ 11.94 | $ 4.31 |
Weighted average fair value of restricted stock units granted | $ 83.58 | $ 53.72 | $ 10.19 |
Performance Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.50% | 1.60% | |
Weighted average historical volatility | 34.40% | 30.00% | |
Dividend yield | 3.40% | 9.60% | |
Expected years until exercise | 3 years | 3 years 4 months 24 days | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of options granted | $ 9.79 | $ 3.07 |
Stock-Based Incentive Plans Sto
Stock-Based Incentive Plans Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning (in shares) | 1,439,708 | 1,272,048 | 701,134 |
Granted (in shares) | 132,832 | 248,899 | 887,030 |
Exercised (in shares) | 211,352 | 74,930 | 64,916 |
Forfeited (in shares) | 106,745 | 6,309 | 171,847 |
Expired (in shares) | 37,005 | 79,353 | |
Outstanding, ending (in shares) | 1,217,438 | 1,439,708 | 1,272,048 |
Vested and expected to vest (in shares) | 1,146,329 | ||
Exercisable (in shares) | 561,872 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average share price, beginning (in dollars per share) | $ 63.21 | $ 61.44 | $ 80.04 |
Weighted average share price, granted (in dollars per share) | 98.97 | 69.12 | 48.35 |
Weighted average share price, exercised (in dollars per share) | 57.36 | 52.43 | 40.59 |
Weighted average share price, forfeited (in dollars per share) | 72.19 | 68.80 | 65.82 |
Weighted average share price, expired (in dollars per share) | 93.06 | 87.02 | |
Weighted average share price, ending (in dollars per share) | 66.43 | $ 63.21 | $ 61.44 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | 67.06 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 77.80 | ||
Options, outstanding, weighted average remaining contractual term | 5 years 8 months 12 days | ||
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, exercisable, weighted average remaining contractual term | 5 years 7 months 6 days | ||
Excercisable weighted average remaining contractual term | 3 years 1 month 6 days | ||
Options, outstanding, intrinsic value | $ 24.1 | ||
Options, vested and expected to vest, outstanding, aggregate intrinsic value | 22 | ||
Options, exercisable, intrinsic value | $ 5.9 |
Stock-Based Incentive Plans Di
Stock-Based Incentive Plans Disclosure of Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Beginning of period (shares) | 53,766 | ||
Granted (shares) | 20,989 | ||
Forfeited (shares) | (10,441) | ||
End of period (shares) | 63,852 | 53,766 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 79.07 | ||
Granted, weighted average grant date fair value | 83.58 | $ 53.72 | $ 10.19 |
Released, weighted average grant date fair value | 83.18 | ||
Forfeited, weighted average grant date fair value | 88.70 | ||
Weighted average grant date fair value, ending balance (in dollars per share) | $ 85.63 | $ 79.07 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Beginning of period (shares) | 267,242 | 275,191 | 235,472 |
Granted (shares) | 75,556 | 92,466 | 216,269 |
Released (shares) | (76,962) | (74,253) | (92,968) |
Forfeited (shares) | (41,321) | (26,162) | (83,582) |
End of period (shares) | 224,515 | 267,242 | 275,191 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 64.21 | $ 65.97 | $ 92.91 |
Granted, weighted average grant date fair value | 96.86 | 69.20 | 51.89 |
Released, weighted average grant date fair value | 76.25 | 81.07 | 88.62 |
Forfeited, weighted average grant date fair value | 67.20 | 61.27 | 79.52 |
Weighted average grant date fair value, ending balance (in dollars per share) | $ 70.52 | $ 64.21 | $ 65.97 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Beginning of period (shares) | 374,529 | 303,348 | 34,058 |
Granted (shares) | 23,427 | 86,990 | 281,973 |
Released (shares) | (12,347) | (15,737) | (12,683) |
Forfeited (shares) | (27,802) | (72) | 0 |
End of period (shares) | 357,807 | 374,529 | 303,348 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 31.05 | $ 28.39 | $ 93.95 |
Granted, weighted average grant date fair value | 95.77 | 57.21 | 22.37 |
Released, weighted average grant date fair value | 90.34 | 98.54 | 81.63 |
Forfeited, weighted average grant date fair value | 34.53 | 53.49 | 0 |
Weighted average grant date fair value, ending balance (in dollars per share) | $ 30.35 | $ 31.05 | $ 28.39 |
Stock-Based Incentive Plans Lia
Stock-Based Incentive Plans Liability Classified Awards - Cash-settled Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning of period (shares) | 53,766 | ||
Restricted stock, granted (in shares) | 20,989 | ||
Restricted stock, released (in shares) | (462) | ||
Forfeited (shares) | (10,441) | ||
End of period (shares) | 63,852 | 53,766 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in dollars per share) | $ 79.07 | ||
Weighted average fair value of restricted stock units granted (in dollars per share) | 83.58 | $ 53.72 | $ 10.19 |
Weighted average fair value of restricted stock units released (in dollars per share) | 83.18 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | 88.70 | ||
Weighted average grant date fair value, ending balance (in dollars per share) | $ 85.63 | $ 79.07 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | Jan. 01, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions made to 401(k) | $ 3 | $ 2.4 | $ 2.3 | |
First Tier of Deferral | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of gross pay | 100.00% | |||
Percent of eligible deferral | 4.00% | |||
Second Tier of Deferral | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of gross pay | 50.00% | |||
Percent of eligible deferral | 2.00% |
Income Taxes - Provision (bene
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 31,200 | $ 33,600 | $ 42,600 |
State | 6,500 | 6,400 | 5,100 |
Foreign | 1,900 | 2,100 | 2,900 |
Current Income Tax Expense | 39,600 | 42,100 | 50,600 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | (3,800) | (7,800) | (131,000) |
State | (1,700) | (4,000) | (5,100) |
Deferred income tax expense (benefit) | (5,494) | (11,847) | (136,127) |
Provision (benefit) for income taxes | $ 34,127 | $ 30,254 | $ (85,559) |
Income Taxes - Income tax rate
Income Taxes - Income tax rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Non-deductibility of goodwill impairment | 0.00% | 0.00% | (29.30%) |
Change in federal tax rate | 0.00% | 0.00% | 15.50% |
State and other taxes, net of federal tax benefit | 2.80% | 3.60% | 0.40% |
Change in unrecognized tax benefits | 1.80% | 3.30% | (0.70%) |
Change in valuation allowance | 0.50% | 0.40% | 0.30% |
Domestic production activity deduction | 0.00% | 0.00% | 0.30% |
Changes in tax rates and state tax laws | (0.50%) | (1.60%) | (0.30%) |
Change in accounting for excess tax deficiencies/benefits | (0.60%) | 0.10% | (0.50%) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (1.30%) | (0.20%) | (0.00%) |
Other | 0.90% | 0.80% | (0.70%) |
Effective tax rate | 24.60% | 27.40% | 20.00% |
Income Taxes - Net deferred ta
Income Taxes - Net deferred tax assets (liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Employee compensation | $ 9.2 | $ 9 |
Revenue recognition | 32.8 | 34.3 |
Other | 5.9 | 16.8 |
Deferred tax assets | 47.9 | 60.1 |
Valuation allowance | (1.5) | (0.4) |
Total deferred tax assets after valuation allowance | 46.4 | 59.7 |
Recognition of franchise and equipment sales | (13.7) | (16.8) |
Capitalization and depreciation (1) | (130.8) | (139.2) |
Acquisition financing costs | 0 | (0.6) |
Basis of property and equipment | 0 | (8.1) |
Other | (0.4) | (0.8) |
Deferred tax liabilities | (144.9) | (165.5) |
Net deferred tax liabilities | $ (98.5) | $ (105.8) |
Income Taxes - Reconciliation
Income Taxes - Reconciliation of unrecognized tax benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 5.2 | $ 5.9 | $ 3.9 |
Changes for tax positions of prior years | 2.1 | 3.8 | 2.8 |
Increases for tax positions related to the current year | 0.5 | 0.4 | 0.6 |
Decreases relating to settlements and lapsing of statutes of limitations | (0.2) | (4.9) | (1.4) |
Unrecognized tax benefit as of December 31 | $ 7.6 | $ 5.2 | $ 5.9 |
Income Taxes - Income Taxes (N
Income Taxes - Income Taxes (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)Restaurant | Dec. 31, 2018USD ($)Restaurant | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income Tax Examination [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 1.30% | 0.20% | 0.00% | |||
Changes in tax rates and state tax laws | 0.50% | 1.60% | 0.30% | |||
Goodwill, impairment loss | $ 358.2 | $ 358.2 | ||||
Non-deductibility of goodwill impairment | 0.00% | 0.00% | 29.30% | |||
Deferred tax assets, foreign tax credit carryforward | $ 1.5 | |||||
Valuation allowance, noncurrent | 1.5 | $ 0.4 | ||||
Operating loss carryforwards | 0.5 | 0.4 | ||||
Unrecognized tax benefits | 7.6 | 5.2 | $ 5.9 | $ 3.9 | ||
Unrecognized tax benefit changes in next 12 months | 1.5 | |||||
Unrecognized tax benefits, interest on income taxes accrued | 2.5 | 1.1 | ||||
Unrecognized tax benefits, income tax penalties accrued | $ 0.1 | $ 0.1 | ||||
Change in federal tax rate | 0.00% | 0.00% | 15.50% | |||
Applebee's | ||||||
Income Tax Examination [Line Items] | ||||||
Number of restaurants | Restaurant | 1,787 | |||||
Goodwill, impairment loss | $ 358.2 | |||||
Applebee's | Entity Operated Units | ||||||
Income Tax Examination [Line Items] | ||||||
Number of restaurants | Restaurant | 69 | 69 | ||||
Goodwill, impairment loss | $ 0 | |||||
Internal Revenue Service (IRS) [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Proceeds from Income Tax Refunds | $ 13.3 | |||||
Interest Income, Other | $ 0.9 |
Net (Loss) Income Per Share (De
Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 27,396 | $ 23,917 | $ 21,390 | $ 31,643 | $ 26,981 | $ 23,587 | $ 12,713 | $ 17,073 | $ 104,346 | $ 80,354 | $ (342,750) |
Less: Net (income) loss allocated to unvested participating restricted stock | (3,532) | (2,711) | 6,768 | ||||||||
Net income (loss) available to common stockholders | 100,814 | 77,643 | (335,982) | ||||||||
Effect of unvested participating restricted stock | 33 | 16 | 0 | ||||||||
Numerator - net income (loss) available to common shareholders - diluted | $ 100,847 | $ 77,659 | $ (335,982) | ||||||||
Weighted average outstanding shares of common stock - basic (in shares) | 16,934 | 17,533 | 17,725 | ||||||||
Stock options (in shares) | 311 | 256 | 15 | ||||||||
Weighted average outstanding shares of common stock - diluted (in shares) | 17,245 | 17,789 | 17,740 | ||||||||
Basic (in dollars per share) | $ 1.61 | $ 1.38 | $ 1.20 | $ 1.76 | $ 1.49 | $ 1.31 | $ 0.70 | $ 0.93 | $ 5.95 | $ 4.43 | $ (18.96) |
Diluted (in dollars per share) | $ 1.59 | $ 1.36 | $ 1.18 | $ 1.73 | $ 1.47 | $ 1.29 | $ 0.69 | $ 0.92 | $ 5.85 | $ 4.37 | $ (18.96) |
Acquisition of Business (Detail
Acquisition of Business (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Restaurant | Dec. 31, 2018USD ($)Restaurant | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |||
Acquisition of business | $ 0 | $ 20,155 | $ 0 |
Finance Lease, Liability | 90,300 | ||
Applebee's r3estaurants In North and South Carolina | |||
Business Acquisition [Line Items] | |||
Acquisition of business | 21,600 | ||
Indirect transition costs | $ 1,100 | ||
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Finance Lease Obligation | $ 9,100 | ||
Applebee's | |||
Business Acquisition [Line Items] | |||
Number of restaurants | Restaurant | 1,787 | ||
Applebee's | Entity Operated Units | |||
Business Acquisition [Line Items] | |||
Number of restaurants | Restaurant | 69 | 69 | |
Other Noncurrent Liabilities | |||
Business Acquisition [Line Items] | |||
Weighted average useful life (in years) | 11 years | ||
Properties under finance lease | |||
Business Acquisition [Line Items] | |||
Finance Lease, Liability | $ 28,100 |
Acquisition of Business - Preli
Acquisition of Business - Preliminary estimated fair values of the assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 343,862 | $ 345,314 | $ 339,200 | $ 697,400 |
Applebee's r3estaurants In North and South Carolina | ||||
Business Acquisition [Line Items] | ||||
Reacquired franchise rights | 11,600 | 11,600 | ||
Measurement Period Adjustment, Reacquired Franchise Rights | 0 | |||
Equipment and fixtures | 10,000 | 10,000 | ||
Measurement Period Adjustment, Equipment and fixtures | 0 | |||
Inventory | 1,400 | 1,400 | ||
Measurement Period Adjustment, Inventory | 0 | |||
Deferred income taxes | 1,500 | 0 | ||
BMeasurement Period Adjustment, Deferred income tax | 1,500 | |||
Total identifiable assets acquired | 24,500 | 23,000 | ||
Measurement Period Adjustment, Total identifiable assets acquired | 1,500 | |||
Above-market leaseholds, net | (6,500) | (6,500) | ||
Measurement Period Adjustment, Above-market leaseholds, net | 0 | |||
Other liabilities | (1,000) | (1,000) | ||
Measurement Period Adjustment, Other liabilities | 0 | |||
Net identifiable assets acquired | 17,000 | 15,500 | ||
Measurement Period Adjustment, Net identifiable assets acquired | 1,500 | |||
Goodwill | 4,600 | 6,100 | ||
Measurement Period Adjustment, Goodwill | (1,500) | |||
Consideration transferred | 21,600 | $ 21,600 | ||
Measurement Period Adjustment, Consideration transferred | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||
Rental revenues | $ 120,666 | $ 121,934 | $ 121,437 | |||||||||
Revenues | $ 227,511 | $ 217,405 | $ 228,080 | $ 237,182 | $ 214,198 | $ 194,099 | $ 184,471 | $ 188,163 | 910,178 | 780,931 | 731,725 | |
Gross profit (loss), by segment | 138,473 | 110,608 | (428,309) | |||||||||
Total interest expense | 70,200 | 71,000 | 72,700 | |||||||||
Depreciation and amortization | 42,493 | 32,175 | 30,648 | |||||||||
Impairment of goodwill and intangible assets | 0 | 0 | 531,634 | |||||||||
Closure and other impairment charges | 1,487 | 2,107 | 3,968 | |||||||||
Impairment of goodwill and intangible assets and closure and other impairment charges | 1,500 | 2,100 | 535,600 | |||||||||
Capital expenditures | 19,424 | 14,279 | 13,370 | |||||||||
Goodwill (franchise segment) | 343,862 | 345,314 | 343,862 | 345,314 | 339,200 | $ 697,400 | ||||||
Total assets | 2,049,511 | 1,774,680 | 2,049,511 | 1,774,680 | 1,735,600 | |||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense | 60,400 | 61,700 | 62,000 | |||||||||
Depreciation and amortization | 12,400 | 9,600 | 7,700 | |||||||||
Capital expenditures | 15,600 | 14,300 | 13,300 | |||||||||
Total assets | 223,200 | 226,800 | 223,200 | 226,800 | 181,300 | |||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross profit (loss), by segment | 382,800 | 353,100 | 338,700 | |||||||||
Operating Segments | Franchise operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross profit (loss), by segment | 338,400 | 313,300 | 300,400 | |||||||||
Depreciation and amortization | 10,300 | 10,500 | 10,800 | |||||||||
Impairment of goodwill and intangible assets | 0 | 0 | ||||||||||
Capital expenditures | 600 | 0 | 0 | |||||||||
Total assets | 1,116,200 | 1,152,100 | 1,116,200 | 1,152,100 | 1,188,000 | |||||||
Operating Segments | Rental operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Rental revenues | 120,700 | 121,900 | 121,400 | |||||||||
Gross profit (loss), by segment | 29,900 | 31,200 | 30,800 | |||||||||
Interest expense | 7,700 | 9,200 | 10,500 | |||||||||
Depreciation and amortization | 13,400 | 11,700 | 12,000 | |||||||||
Total assets | 503,800 | 255,600 | 503,800 | 255,600 | 278,800 | |||||||
Operating Segments | Company restaurants | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross profit (loss), by segment | 8,000 | 1,200 | (300) | |||||||||
Interest expense | 2,100 | 100 | 200 | |||||||||
Depreciation and amortization | 6,400 | 400 | 100 | |||||||||
Closure and other impairment charges | 1,500 | 2,100 | 4,000 | |||||||||
Capital expenditures | 3,200 | 0 | 100 | |||||||||
Total assets | 134,300 | 66,500 | 134,300 | 66,500 | 0 | |||||||
Operating Segments | Financing operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross profit (loss), by segment | 6,500 | 7,400 | 7,800 | |||||||||
Total assets | $ 72,000 | $ 73,700 | 72,000 | 73,700 | 87,500 | |||||||
Corporate, Non-Segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gross profit (loss), by segment | (244,300) | (242,500) | (767,000) | |||||||||
Financial Service | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 7,112 | 7,979 | 8,352 | |||||||||
Financial Service | Operating Segments | Financing operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 7,100 | 8,000 | 8,400 | |||||||||
Franchisor | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 651,186 | 643,934 | 594,418 | |||||||||
Franchisor | Operating Segments | Franchise operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 651,200 | 643,900 | 594,400 | |||||||||
Food and Beverage | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from contract with customer, excluding assessed tax | 131,214 | $ 7,084 | 7,518 | |||||||||
Food and Beverage | Operating Segments | Company restaurants | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue from contract with customer, excluding assessed tax | $ 131,200 | $ 7,500 |
Refranchising of Company-oper_2
Refranchising of Company-operated Restaurants (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)Restaurantagreement | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Franchisor Disclosure [Line Items] | ||||
Proceeds from sale of property and equipment | $ 2,540 | $ 655 | $ 1,100 | |
Franchised | IHOP | Cincinnati, Ohio Market Area Restaurants [Member] | ||||
Franchisor Disclosure [Line Items] | ||||
Company operated restaurants taken back to be refranchised | Restaurant | 9 | |||
Number of franchise agreements | agreement | 9 | |||
Number of sublease agreements | agreement | 9 | |||
Favorable lease assets, net | $ 2,300 | |||
Proceeds from sale of property and equipment | 1,100 | |||
Amount of consideration received | $ 4,800 | |||
Gain (loss) on sale of properties | $ 6,200 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 227,511 | $ 217,405 | $ 228,080 | $ 237,182 | $ 214,198 | $ 194,099 | $ 184,471 | $ 188,163 | $ 910,178 | $ 780,931 | $ 731,725 |
Gross Profit | 95,668 | 89,720 | 94,855 | 102,571 | 98,371 | 92,626 | 78,590 | 83,500 | 382,814 | 353,087 | 338,711 |
Net income (loss) | $ 27,396 | $ 23,917 | $ 21,390 | $ 31,643 | $ 26,981 | $ 23,587 | $ 12,713 | $ 17,073 | $ 104,346 | $ 80,354 | $ (342,750) |
Basic (in dollars per share) | $ 1.61 | $ 1.38 | $ 1.20 | $ 1.76 | $ 1.49 | $ 1.31 | $ 0.70 | $ 0.93 | $ 5.95 | $ 4.43 | $ (18.96) |
Diluted (in dollars per share) | $ 1.59 | $ 1.36 | $ 1.18 | $ 1.73 | $ 1.47 | $ 1.29 | $ 0.69 | $ 0.92 | $ 5.85 | $ 4.37 | $ (18.96) |
Impairment of goodwill and intangible assets | $ 0 | $ 0 | $ 531,634 |